East Tennessee State University
Financial Procedures 

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FP - 22

ETSU FOUNDATION EXPENDITURE POLICY

Contents:
I. GENERAL
II. PURCHASING
III. EXPENDITURES
IV. EXCEPTIONS
LINKS TO EXHIBITS

I. GENERAL

The following policies and procedures will be applicable to all expenditures made from funds that have been deposited in the East Tennessee State University Foundation, Inc. It is the requirement of East Tennessee State University that the University Foundation follow and be governed by the University’s policies and procedures that are not in conflict with the foundation corporate charter or by-laws which will prevail. Any exception to the above must be approved in writing by the Executive Director of the Foundation or designee.

II. PURCHASING

In accordance with Section VII of FP-4 of the ETSU Financial Procedures Manual, purchases from Foundation funds shall follow all applicable University policies and procedures. Approval signatures are required in accordance with FP-20 of the Financial Procedures Manual.

III. EXPENDITURES

Expenditures from Foundation funds must be requested using a properly completed ETSU Foundation Expenditures Request (Exhibit A) including account name, account number, payee, and payee address. A brief description is REQUIRED in the "FUNDS WILL BE USED FOR" section. "Payment of attached" or "See attached" is not acceptable. All expenditure requests must be in conformity with requirements of FP-5 of the Financial Procedures Manual. Contractual services must be supported by a properly completed Contractual Services form (Exhibit B) or an executed contract in conformity with FP-14 of the Financial Procedures Manual.

Foundation checks are processed weekly. All check requests received in the Foundation Office prior to noon on Tuesday will be available by noon on Friday.

The following rules and regulations apply to the expenditure of Foundation funds:

1. Salaries - Only salaries which are within requirements of the ETSU Human Resources Salary Compensation schedule may be paid from Foundation funds. Approval requirements must follow standard ETSU policy and procedures. Amounts that are supplements to the employee's regular salary will not be allowed unless approved by the President and Chancellor. Salaries for instructional purposes will not be allowed.

2. Equipment - It is expected that needed equipment will be prioritized and purchased from the ETSU operating budget. Any equipment to be purchased from Foundation funds will require approval by the President's designee.

3. Flowers - Account managers may purchase flowers to be charged to their Foundation account for any individual with a legitimate relationship to the department if allowed by the fund agreement.

4. Entertainment - Entertainment expenditures will only be paid when directly related to the educational mission of the University. Expenditures which are strictly for the benefit of the department (e.g. coffee, memorial donations, departmental refreshments, etc.) will not be allowed.


5. Business Meals – Meals must be documented in accordance with the requirements of Financial Procedure FP-21.

IV. EXCEPTIONS

Exceptions to this procedure must be approved by the Executive Vice President of the Foundation.

 

LINKS TO EXHIBITS

The following forms may be found on the University Comptroller's Office web page http://www.etsu.edu/fa/fs/forms.aspx

Exhibit 22.A - ETSU Foundation Expenditures Request
     Excel Format

Exhibit 22.B - Contractual Services Form
     Word Format


Original effective date: February 1, 1994
Revised: September 21, 2001, December 19, 2003
Last review: December 19, 2003


Web page last updated 06/22/09

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