1. Expenditures of Public Funds Guidelines, Standards, and Limits

2. Overview Intended to be comprehensive Applies to all expenditures, whether purchased directly by the University or reimbursed to an employee Must directly advance the University’s and/or PASSHE’s mission Even when delegated, the University President is accountable and responsible for all University expenditures

3. Public Funds – All monies received by a PASSHE University or the Office of the Chancellor State appropriation Tuition Room Board Other student fees Restricted & Unrestricted gifts Restricted & Unrestricted grants Ticket sales from athletic, cultural, or other events Corporate sponsorships Investment income

4. Documentation All receipts must be itemized, clearly indicating the items purchased. Must be original receipts. No copies. Credit card receipts showing only the total are not acceptable. Reimbursement for the actual cost of meals must state: Business purpose Names of attendees

5. Documentation – contd. Receipts for meals at business meetings must show: Number of diners Meals that were purchased Business purpose Date, time, Location (e.g., city/state) Whether or not alcohol was purchased Payment or reimbursement cannot be made without an itemized receipt Under no circumstances will reimbursement be made for alcohol

6. Transfer of Funds to Affiliates & Other Entities University funds may not be transferred to any outside organization, including affiliates except under fiduciary arrangements for certain restricted funds: When a service is provided (through bid process) University event managed by the affiliate (athletic camp), liabilities assumed by affiliate, expenses paid by affiliate Services provided related to a grant which the University subcontracts with the affiliate Gifts received directly by the University may not be deposited by or transferred to a foundation or affiliate

7. Restricted & Unrestricted Funds These guidelines apply to both restricted and Unrestricted gifts and grants unless: The donor’s or grantor’s specifically stated provisions may override applicable policy restrictions University funds are restricted only when restricted by the provider of the funds BOG, COT, University Presidents, Office of the Chancellor employees, nor any other employee can cause university funds to be restricted in an effort to circumvent the guidelines, standards, and limits of the guidelines If grantor or donor specifies expenditures of a grant or gift are to be purchased from a particular vendor, legality and appropriateness of such a procurement must be approved by University Legal Counsel and an appropriate contract must be used to procure the goods or services

8. Designated, Self-Supporting Revenue Streams Revenue which is specifically designated for some purpose (travel abroad programs, athletic camps & conferences) Fees paid by the individual participants fully cover the associated costs and are specifically intended to purchase food, clothing, equipment, or any other item on behalf of the participant – such items may be purchased with the exception of alcohol. Revenue from self-supporting activity may not be used on behalf of employees to make purchases that are otherwise prohibited in the guidelines unless clearly & directly a necessary part of the activity and directly related to the participants.

9. Volunteers BOG Policy 1991-04-A, Volunteerism BOG Policy 1984-14-A, Terms and Conditions of Employment of Senior Policy Executives Request for Reimbursement of Expenses Incurred by Volunteers (including spouses or partners of Presidents) Must be verified by the volunteer Must clearly state the business purpose Must be in accordance with BOG Policy 1986-07-A Travel Expense Regulations

10. Alcohol The purchase or reimbursement of alcohol, under all circumstances, is prohibited. One exception: Alcohol may be purchased when it is a necessary and integral part of the curriculum of an established academic program.

11. Expenditures for Foods A Modest Expenditure is Allowed for the Following when specific criteria are met as per the guidelines: Official University Functions Business Meetings with External Parties Evening Receptions Staff Retreats, Workshops, and Training Overtime and Extraordinary Circumstances Meetings & Other Events with Students Holiday Receptions & Employee Picnics Employee recognition events Internal Business meetings & staff meetings Food & kitchen supplies in the office Kitchen appliances

12. Gifts & Awards The following can only be purchased by the President: Floral tributes Greeting cards and invitations to official university events Employee awards Employee gifts – Gifts of a personal nature are not allowed Gifts and awards to students and others – Allowed with guidelines

13. Promotional Items & University Clothing Small-value promotional items (lapel pins, pens, candy, key rings, t-shirts) imprinted with the University logo can be purchased in conjunction with the University’s marketing plan. Clothing with the University logo and/or event designation for employees, students and volunteers serving as official University representatives for various University events may be purchased. Purchase of larger-value promotional items such as clothing, engraved vases, watches, etc. to be given away as a marketing tool is prohibited.

14. Entertainment Allowed: Purchase of theater tickets and cultural events for students and the sponsoring University employees or volunteers only when the events are a necessary & integral part of the curriculum Not Allowed: Payments for employees to attend the theater or other amusements and social outings or to participate in events such as golf outings unless: The event is an official University event The event serves clearly to advance the strategic goal of the University The employee is attending as an official representative of the University Payments for entertainment services in conjunction with a business meeting Payments for entertainment services as part of a recognition event solely for an employee

15. Political Organizations, Charitable Organizations, &Community Relations Payments for political contribution or sponsorship of any kind is prohibited. Redirection of public funds to other organizations in the form of charitable contributions is prohibited. Expenditures to charitable organizations in exchange for service of equal value are allowed as follows: Payments to local non-governmental emergency response organizations when part of a written agreement that includes services (the amount of the payment must be commensurate with the services received). Payments for a University advertisement in a printed program for a charitable event when the cost of the advertisement is determined by the University to provide reasonable value. Universities cannot use public funds to sponsor all or part of a sporting (golf tournament) or cultural event designed to support a charity.

16. Professional Dues & Memberships Payments for employee professional memberships are allowed (subject to supervisory & budgetary approval) when the professional organization bears a direct relationship & benefit to the employee’s current position duties and/or the membership offsets the cost of a professional conference that the employee is attending.

17. Cell Phones, Laptops, and Other Individualized Equipment Equipment such as cell phones, smart phone, Personalized Digital Devices (PDAs), laptops, etc. usually are issued to individual employees for their specific use. Such devices are University property and employees’ use must be in accordance with BOG Policy 2009-01, Acceptable Use of Technology, and ESU’s written policy(ies) governing the devices.

18. Floral & Other Decorations Purchases of decorative floral arrangements are only allowed when part of a formal, official, University ceremony or public event such as commencement, groundbreakings, etc.

19. Expenditures on Behalf of Student Associations Universities may not use public funds to augment student government associations (student government field trips) unless the activity is part of an official University academic or student support program. Universities may not use public funds to purchase personal items for students in conjunction with their participation in activities such as homecoming.

20. Personal Expenses Public funds may not be used to: Clean nonpublic areas of presidential residence Provide chauffeur, cooking, or other services to Presidents or members of their family Purchase bedroom and bath linens and supplies, personal furnishings, decorations, artwork, and other items that are used in the nonpublic areas of the residence Purchase food, table linens, and kitchen supplies used personally by the President and his/her family Install personally owned fixtures such as lighting, artwork, etc. Install fencing or other accommodations for pets. Purchase excessive expenditures for holiday decorations in the public areas of the residence. Incur any other personal expense of the President, except as provided in the President’s employment contract

21. Exceptions Must be recommended in writing to the President by the applicable Vice President or Dean and subsequently approved

22. TOP TEN MISUSE OF USE OF PUBLIC FUNDS MEALS & REFRESMENTS AT INTERNAL & STAFF MEETINGS ITEMIZED MEAL RECEIPTS PER DIEM vs ACTUAL COST OF MEALS COFFEE FOR OFFICES GIFT CARDS GIFTS PURCHASED BY EMPLOYEES FOR FELLOW EMPLOYEES PROMOTIONAL CLOTHING ITEMS NOTE CARDS FLOWERS SPONSORSHIPS and MEMBERSHIPS