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Employee reimbursements are processed through the Concur Travel and Expense System which excludes the use of 1099-applicable account ChartField values for employee reimbursements.

As you classify your transactions with account ChartField values, consider:

When should you use a 1099-applicable account?
When you buy a service directly from the service provider. (Not when you reimburse an individual/employee who personally incurred an expense that the university ultimately wishes to cover. Note: as a general rule, we do not reimburse individuals or employees who personally paid for services.)

How do you know it is a 1099-applicable account?
Look in the Finance System, under General Ledger, ChartFields, Account. Select the 2nd tab (GL Account CU). The 1099 Applicable box will be checked, if appropriate.

Where do you go for help to determine the best account ChartField value to use for a transaction?
Call your area accountant or grant accountant.

A list of .

(7/14)

The controllers consider these user option accounts and user option accounts are not included on the Quick Reference Card (QRC). The QRC includes only those accounts that departmental administrators are required to use at a minimum to classify assets, liabilities, revenues, expenses and cash transfers in coding departmental business transactions. The QRC does not include accounts that are:

• System maintained and not available for use on departmental transactions,
• Used primarily by staff in central administrative offices such as the Finance Office, Accounting Office, Bursar, System Controller, Treasurer, Contracts & Grants, etc.,
• User option accounts as requested by departments and approved by the OUC. (9/12)

Yes, these should go under the 550200-Conferences account code.

The difference is the actual 6-digit number. In Concur, an event is entered with expense type “official function” or “large official function” then event type “student functions” will land in account code 550100. An event entered with expense type “student function” will land in account code 550300.

This is an issue when alcohol is served. In this case, the report must be approved by the campus alcohol approver (the controller or delegate.) The student function account code will not route the report correctly for that approval. Any time you have alcohol at an official function, you must choose the expense type “official function with alcohol” or “large official function with alcohol” for Concur to route your report correctly.

No, do not write off the account receivable. Submitting an account receivable to a collection agency does not mean that we no longer consider this an account receivable. We are merely using the collection agency to assist us in the collection of this receivable. Write-offs must be approved by the campus controller. Please refer to the Accounts Receivable chapter in The Guide.

Obtain the approval of the head of your unit – dean, director, department chair, etc. Then, send the write-off request to the campus controller. The controller will review the request and follow up with any questions. If the request is approved, the controller will sign it and forward it to Central Collection Services for processing. The controller has requested that Central Collection Services return to the requesting department any account receivable write-off requests that do not include controller approval. (8/02)

No. The campus merchant will receive a “copy request” for documentation about a transaction. The campus merchant has 12 calendar days from the receipt of the request to provide the requested documentation. If the campus merchant fails to do so, regardless of the reason, the disputed purchase is “charged back” against the campus merchant’s account. The campus merchant is thereafter forever precluded from attempting to collect that payment—period. Thus, we cannot send these items to Central Collection Services. If the campus merchant missed the deadline, they must write off the chargeback as a reduction of revenues. Therefore, campus merchants must use good business practices to ensure they can comply with this requirement and avoid writing off chargebacks.

There are two accounts and it depends on who is providing the collection service. 553400–Admin & Collection Costs is used when paying an outside collection firm. This usually occurs only through the Bursar’s Office and with loan funds. 553412–Admin/Collection Costs–State is used when paying the State of Colorado Central Collection Services. (2/03)

NACUBO defines an auxiliary enterprise as an entity that exits to furnish goods or services to students, faculty, or staff, and that charges a fee directly related to, although not necessarily equal to, the cost of the goods or services. The general public may be served incidentally by some auxiliary enterprises. The distinguishing characteristic of auxiliary enterprises is that they are managed as essentially self-supporting activities. Examples are residence halls, food services, intercollegiate athletics (only if essentially self-supporting), college stores, faculty clubs, faculty and staff parking, and faculty housing. Student health services, when operated as an auxiliary enterprise, also should be included. Every Finance System program and project is assigned an Expense Purpose Code (EPC) attribute. This is used to define the functional classification of all expenses of that FOPPS for our financial statements as follows. 

• 1100 - Instruction 
• 1200 - Research 
• 1300 - Public Service 
• 1400 - Academic Support 
• 1500 - Student Services 
• 1600 - Institutional Support 
• 1700 - Operation of Plant 
• 1800 - Scholarships and Fellowships 
• 1900 - Hospitals and Clinics 
• 2000 - Auxiliary Enterprises 
• 2100 - Internal Service Units 
• 2200 - Other 

The importance of knowing if a FOPPS is defined as an "auxiliary enterprise" is so that you know what revenue accounts to use for that FOPPS. Auxiliary Operating Revenue is one of the revenue lines reported in our financial statements. The NACUBO definition of "auxiliary enterprise revenue" is all revenue generated through operations of an auxiliary enterprise. Therefore, if a FOPPS is defined as an "auxiliary enterprise" (EPC 2000), then the only revenue accounts that can be used for that FOPPS are 280000 - 289999, Auxiliary Enterprise Revenue. A word of caution: all of our 2x funds include the word "auxiliary" in their title. 

• 20 - Auxiliary-TABOR Enterprises 
• 26 - Auxiliary-Other Exempt 
• 28 - Auxiliary-ISU 
• 29 - Auxiliary-Non-enterprises 

That does not mean that all 2x fund FOPPS are auxiliary enterprises. Only those programs with EPC 2000 are auxiliary enterprises. You can see in the Finance System the expense purpose code of the program in your FOPPS by navigating to: General Ledger > CharFields > Program. Enter the program number and press the Search button. Select the Program CU Attributes tab and then locate the Exp Purpose Code. (3/15)

In simple terms, it’s like a tax that the university levies on those fund groups that benefit from University services and support but would otherwise not pay for them. The General Administrative and Infrastructure Recharge (GAIR) is a combination of the General Administrative Recharge (GAR) and the General Infrastructure Recharge (GIR). Although the two have their own rates and are calculated separately in the Finance System, they are often referred to together as GAIR. GAIR is only applied against expenses, not cash transfers. Current GAIR rates are posted on the our website.

General Administrative Recharge (GAR): A percentage rate charged to auxiliary and self-funded funds (20, 26, 28, 29) and their renewal and replacement plant fund (78) and to agency funds (80). GAR is calculated monthly on expenditures and paid to the general fund in recognition of the general fund administrative expenses incurred in support of the auxiliary and self-funded activities. This is a cost allocation methodology to recognize that the general fund incurs general administrative costs such as accounting, payroll, employment, purchasing, accounts payable, etc. in support of the auxiliary and self-funded activities. The general fund credit is to institutional support.

General Infrastructure Recharge (GIR): A percentage rate charged to auxiliary and self-funded funds (20, 26, 28, 29) and their renewal and replacement plant fund (78). GIR is calculated monthly on expenditures and paid to the general fund in recognition of the general fund administrative expenses incurred in support of the auxiliary and self-funded activities. This is a cost allocation methodology to recognize that the general fund incurs infrastructure expenses such as grounds maintenance, roads, sidewalks, etc. in support of the auxiliary and self-funded activities. The general fund credit is to operations and maintenance of plant. (3/15)

ISCs are established to provide goods and services to other university units, resulting in these units being charged an expense within their FOPPS. These are usually set up because of the efficiency or convenience of providing the services on campus rather than having to always use an outside vendor. Examples of ISCs are Copying and Printing, Mailing Services, Transportation Services, Chemistry Stores, and Telecommunication Services. ISCs will record all costs incurred to provide the goods/services such as cost of goods sold (inventory sold), salaries, wages, benefits, operating expenses, travel, depreciation on equipment, etc. Interdepartmental revenue is recorded upon providing the goods/services to campus customers, including sales via the procurement card. Miscellaneous revenue is recorded for sales to private individuals and outside businesses including all agency fund (fund 80) sales.

ISC expense and IN revenue is not recorded only when the ISC is facilitating for a departmental customer the purchase of goods/services the ISC does not offer. A good example of this is in the Transportation Center (TC). There are some repairs that are beyond the scope of the TC. However, to provide good service to a campus customer, the TC will offer to facilitate procurement of the service from an outside repair shop. In this situation the TC can choose to record the expense and IN revenue as activity of the TC in the usual manner, or it can choose to record the expense as a pass through of the TC and have it recorded only as an expense of the customer department. If the TC chooses to show this as a pass through expense, the ideal situation would be to record the expense directly in the departmental customer FOPPS, and not show it going through the TC records. If the TC were doing this for an outside customer, then the TC would always show an expense of the TC and miscellaneous revenue. It is improper accounting to credit the payment from the outside vendor as a credit to the TC expense. (3/15)

For all commercial card transactions (e.g., procurement card, travel card, and airfare card), the employee (cardholder, traveler, or travel arranger), any delegates, the AO assigned to the PCard holder, and the HR supervisor, will all receive automatic reminders from Concur 30, 60, and 75 days from the transaction date (or a trip’s end date if related to travel) if the substantiation requirements in the revised  have not been completed. These automatic Concur reminders will include an attachment listing the specific transactions that must be substantiated. 

If the expenses are not substantiated within 90 days, they will be automatically reported as taxable income on the pay advice and W-2 of the relevant employee. 

After an expense has been fully approved and paid, if it did not meet the required substantiation requirements, the employee will receive an automatic email notification from Concur alerting them to the tax implications of the expense.

In some circumstances, you may receive Concur notifications for transactions related to a trip that has not yet occurred. In those situations, please create a Travel Reconciliation expense report, and assign the trip-related transactions to that report. Please include the future dates of travel in the report header.

As noted by the OUC in the , simply providing documentation to a delegate for the creation of a report does not constitute substantiation and submission under the procedure.

Please ensure the expenses are substantiated in Concur and submitted into the system workflow before the 90-day deadline.

Delegates do not have the ability to submit expense reports on behalf of employees.

If you are a travel coordinator for non-employees, like students in a university club, please use the non-employee report for all expenses (including travel card transactions) relating to the non-employee travel.

For any expenses made on the travel card that are not related to an official business trip, the transactions must be assigned to an Employee Non-Travel Expenses report and submitted within 90 days of the transaction date of the expense. Notifications for unassigned/unsubmitted pre-paid expenses paid by travel card and/or airfare card will continue to be sent until the transactions are either assigned to a report with future trip dates as appropriate, or a report for a trip that has already completed is fully submitted in Concur.

In very rare cases, CCO may escalate requests for an exception to this procedure to the Office of University Controller’s Director of Tax. We may escalate requests when an employee has made a demonstrable and good faith effort to complete their valid expense report in Concur within the required 90-day period, but exceptional circumstances outside of the employee’s influence or control prevented the expense report from being processed as non-taxable.  

CCO may reject exception requests when the expense report was submitted in Concur by an employee more than 90 days after the cost was incurred, and when:

• The employee claimed to be unaware of the PSC’s substantiation requirements; or
• The employee claimed to be unaware that the cost had been incurred; or
• The employee claimed the department was at fault for a delay in completing the report in Concur, and the delay could have been prevented by the employee with reasonable care and diligence.  

If your exception request is approved by the OUC’s Director of Tax, the approval will be forwarded to the PSC by the CCO immediately after receipt. The CCO will include you in emails sent to the PSC on your behalf for notice.

The PSC sends data relating to taxable business expense reimbursements to Payroll for processing on the 15 of every month. If your exception request is granted on or after the 15 of the current month, the approved exception will be processed by Payroll in the following month/pay period.

We encourage our campus partners to communicate the expense substantiation requirements to employees early and often; and ask for help early, if you have any questions or concerns.

If you are unable to complete your expense report on a timely basis because of delays by delegates or colleagues, please be diligent in contacting your department for assistance.

If you are unable to complete a timely expense report for system-related reasons, please reach out to the  for guidance.

For questions surrounding the procedural requirements and how they might affect your unique circumstances, please reach out to the  or CCO for additional guidance.

The cash transfer table for CU Boulder shows the allowable fund combinations for transferring cash. This was approved by the senior vice chancellor and chief financial officer and the director of budget and finance on April 18, 2002, and updated December 2003. How to use this chart:

• On the left side of the chart find the fund you want to transfer the cash “From”
• Then look across the top of the chart for the fund you want to transfer the cash “To"
• If the intersection of these two rows says “Yes” then the cash transfer is allowed and can be processed using the Cash Transfer panels (Fund 34 use the Gift Fund Journal Entry page)
• If the intersection of these two rows is empty, then the cash transfer is not allowed. 

Contact your area accountant if you feel you have a valid reason to make a cash transfer that the table indicates is not allowed. (3/15)

See the Petty Cash, Change Funds and Gift Cards page.

No. Using a personal vehicle to drive on university business constitutes travel, and travel is an unallowable item for using petty cash funds. Anyone who is paid for using their personal vehicle needs to file an expense report in the Concur Travel and Expense System for employees or complete a non-employee reimbursement form for non-employees. They will be paid the current rate per mile to cover the cost of using the personal vehicle. It is also possible to reimburse at a lower rate if this is agreeable with the individual driving the personal vehicle. (3/15)

Bank wires are handled by the Bursar's Office of Cash Management. You need to do two things. (Note: Bank wires in support of sponsored projects do not go through the Bursar. Contact Revenue Management for assistance.)

1. Complete a cash receipt form indicating the amount to be received, the SpeedType where it should be deposited, and the account code. Include a brief description of the sender and the purpose of the transaction. Deliver this form to the Office of Cash Management in Regent Hall room 150 (41 UCB).
2. Provide the university wire transfer information to the sender which you can obtain from the Bursar's Office of Cash Management. 

Note: If this is a payment for a student, include the student's full name and student ID number. (3/15)

Please refer to . (3/15)

No. Do not endorse the check over to the student. Work with the Office of Financial Aid and the Bursar’s Office to deposit the check into the Finance System and apply it directly to the student’s bill. If this check exceeds the amount of charges on the student’s bill, then a refund will be issued to the student. The Bursar’s Office and Financial Aid will handle this check as a 3rd party payment of a student’s bill since the sponsor has designated the student to receive these funds. Financial Aid must always be involved with scholarship payments received on behalf of students to ensure that all applicable regulations are followed. (3/15)

Yes, you can record the driver license number on the check. For students, the student number definitely should be recorded. What you cannot record is a credit card number or a social security number on the check. However, you can request a purchaser to display a credit card as indication of creditworthiness or identification. It is permissible to record the type of credit card and the issuer of the credit card on a check (but not the number). (3/15)

Yes, but certain procedures must be followed. These procedures are not new—they have been in place for about 20 years. When hand-drawn express warrants are requested by Payroll and Personnel Liaisons (PPL), the PPLs typically receive an email from the payroll administrator at Payroll & Benefits Services (PBS) when the check has been sent to be printed in the Office of Cash Management (OCM). When designating others to pick up warrants on behalf of the payee or PPL, the person picking up must have a printed copy of the email from PBS to the PPL along with the written authorization from the PPL approving the individual to pick up the warrant. OCM will verify the identification of the individual listed on the authorization with a Buff One card or government-issued photo ID before releasing the warrant(s). (3/15)

No, there is not a template per se. However, the bulleted points in the section B.1 (Employees) or C (Non-employees) can serve as an outline for your written program. You can format it as you choose. (3/15)

This falls under the Participation category of the Recognition and Training PPS. The PPS states that, “Cash-like refers to an item, such as a gift certificate or a gift card, which can be used in place of cash to purchase goods or services.” Gift cards, certificates, or coupons that are redeemable for products or services are considered cash-like by default (https://www.cu.edu/psc/psc-procedural-statement-gift-cards-gc). Exceptions may be granted on a case-by-case basis depending on the circumstances. Any exceptions must be approved by the Associate Vice President and University Controller who renders a decision based upon a written request that describes the coupon/card it is handing out along with an example. (3/15)

This falls under the Merit category of the Recognition and Training PPS. It is non-cash because the massages were given at the residence hall, as opposed to a certificate that could be redeemed elsewhere. For employees, non-cash awards valued at $100 or more require the Revenue Recognition form and an approved formal recognition program. But because this $100 was effectively split among five employees, the value to each employee was less than $100. Thus neither a recognition program nor a revenue recognition form is required, assuming that other recognition events are not planned that could push the calendar year amount to $100 or more for each employee. (3/15)

Advertising: A company that makes a contribution to a specific event is paying a fee to advertise and, therefore, can include promotional material that involves a “call to action” with respect to their company’s product or service. The company doing the advertising has no intention of receiving either a tax deduction or a gift tax receipt from the university. Company representatives do not attend the event, nor does the company receive anything other than the advertising itself for the fee. The org unit is subject to Unrelated Business Income Tax (UBIT) with this advertising activity.

Sponsorships: Sponsors pay a fee to display their company logo or name, but do not include any “call to action” wording relative to their product or service in their display (e.g., to call an 800 number). Generally, sponsors for official functions and conferences do not receive any other good or service in exchange for their contribution (i.e. 100% of the sponsor fee goes towards displaying the name or logo). If there is any intent for the sponsor to receive a tax deduction or a gift tax receipt from the university, then the event the sponsor is supporting becomes a fundraising event. Similarly, if the sponsor receives anything as a result of the sponsorship (such as having company representatives attend the event, or receiving goods or services from the event), then the event is considered to be a fundraising event. (3/15)

The OUC will authorize a special SpeedType for each event you host. You will deposit the revenues and pay expenses for the event using that one SpeedType. After the event—and the accounting—is completed, then OUC will inactivate that SpeedType until the next time you host that same event (e.g., golf tournament, dinner, tour, race, trip). (3/15)

The net proceeds from the event will move into one or more accumulation “pots” (e.g., scholarships, lab equipment, general support) in Fund 34 from which you may “spend” as desired for the purpose it was accumulated. The OUC will set up both SpeedTypes: one for the event and another for the net proceeds. It’s as if the special event uses one SpeedType like a “checkbook” for all revenues and expenses; the net proceeds move into a SpeedType “savings” account for future spending restricted to the specific purpose. (3/15)

Budget journal entries for fundraising events are created by staff from the Office of University Controller (OUC) and approved by the fundraising event compliance coordinator. The OUC will use the budget submitted as part of the event set-up process to record the budget in the Finance System. Budgets for fundraising events will be recorded at a high level. Only three budget entries will be recorded: one for revenue, one for expenses, and one for the transfer out of event net proceeds from the event SpeedType to the Fund 34 SpeedType receiving the proceeds from the event. Visit the website for additional information. (3/15)

Yes, you should still use the appropriate official function account code (550100–552499) to enter the expense. Although the official function form is only required if the total cost exceeds $500 or the per-person cost exceeds $85, the official function account codes should be used for all qualifying events. The on the PSC website includes examples of some of the most common types of official functions. (3/15)

Yes. This type of event qualifies as an official function. The lists common types of official functions. One of these types is goodwill functions which can include an event to express condolence or sympathy. The general provisions of the on the PSC website apply as usual which includes abiding by the Propriety of Expenses APS and Sensitive Expenses PPS. (3/15)

Single unit meetings are allowable; however, you need to get written (emailed) pre-approval for the meeting from your vice chancellor. For a multi-campus or multi-unit event you would need at least one individual from each unit and if the meeting(s) is more frequent than once per month, vice chancellor approval is also required.

No, the only difference is what 6-digit account number the charge will land in.

This is fine. You could also call it an official function, event type student function. It depends on what account you want the charge to hit.

The paper Official Function form is required unless the expense will be reconciled in the Concur expense system (paid with the procurement card, travel card or with a personal card for reimbursement). Concur will automatically route these expenses to the campus alcohol approver, therefore, advance approval is not required.

Student functions are official functions. Per policy, student functions are those that are hosted for students, and directly related to student/educational development (e.g., student recognition, student recruitment, and student program development). This type of lunch would fall under the umbrella of official functions. Concur is admittedly a little unclear in relation to student functions and official functions and which one to pick, which we are discussing with folks at Systems. 

This is not managed by the Campus Controllers Office. Please contact Events Planning and Catering for more information.

There are two answers to this question and it depends on how the credit card fee is administered. If you receive payment for the credit card charges net of the credit card fee then you record your day’s receipts in total (gross) and the bank card fee as a debit to revenue. If you receive payment for the credit card charges for the full amount of the sales and you are subsequently billed for the credit card fee then you record the day’s receipts in total (gross) and you record the credit card fee as an expense in either account 552602–Other Operating Services or account 552607–Credit Card Fees when it is paid. This treatment is prescribed by the Office of State Controller Procedures Manual, section 3.8 Credit Cards. (3/15)

This payment has to be recorded as revenue. The total cost of operations is a university expense, even though it was abnormally high and should be shown as an expense. The money from the outside organization is effectively a gift or grant to help us pay for these costs. No goods/services were provided to the outside organization in exchange for their payment to us (a non-exchange transaction) so this constitutes a gift. The gift does not reduce our cost but provides funds to help pay the cost. The outside organization payment should be recorded as gift revenue in a gift FOPPS. Part of the operating costs should then be moved to the gift FOPPS. Payments from outside organizations may only reduce our expenses under the circumstances described in the . CCO monitors cash receipts that credit expense accounts to ensure compliance with these requirements.

When you receive a “reimbursement” check for expenses, it can be tempting to credit the expense because it seems like the expense was reduced by the reimbursement. That isn’t true. The expense was not reduced. You received additional funds to help pay for it, and that is revenue. Crediting an expense is allowable only in very limited circumstances. (3/15)

You can deposit the $200 but do not credit the expense. It must be booked as revenue. The professor’s $200 contribution to his travel expenses is an additional source of funds to help pay for travel costs that are entirely official university business. It can be booked as miscellaneous revenue into an auxiliary 2x FOPPS and $200 of travel expense can be moved to the same 2x FOPPS. The money does not qualify as gift revenue or a donation for tax reporting purposes because the IRS prohibits individuals from making gifts to their employer to be used to fund the employee's business activities.

On the other hand, in the rare case that a university employee needed to add another flight leg to a business trip for personal reasons and needs to reimburse the university for these personal expenses (i.e., the entire trip is not official university business), then the expense should be credited. (3/15)

For example, instructors in the college can receive $400 from the college to use for travel if they are presenting their work at a conference. If the cost of their travel exceeds the $400 (say the airfare cost $500) and the faculty member writes a personal check to reimburse the additional cost of the airfare, can we deposit that check into the general fund FOPPS using the account where the procurement card airfare expense was recorded (the 700000 account series)? 

Depositing cash to the general fund is not allowed unless it is to reimburse an inadvertent personal expense, in which case the expense should be credited. Fund 10 is limited primarily to revenues generated from State appropriations, tuition, instructional fees, administrative student fees, and some student activity fees. The campus keeps these revenues separate and clean from all other sources of the campus. If the travel scenario described in the question above is entirely for university business, it would be handled the same as the proceeding question. Always feel free to contact your area accountant if you aren’t sure about a specific situation. (3/15)

The FOPPS is funded by a private foundation. Also purchased at the same time were tickets for some of the foundation members who wanted to meet the students and show their support by attending the event. These members reimbursed the university for their tickets. Should their check be credited against the expense or deposited as revenue?

In this case, the expense should be credited. The check represents a reimbursement of a personal expense, not official university business. Normally, personal expense items should not be purchased using university funds. However, the purchase of a block of tickets for all the attendees made administrative sense to ensure that there were enough available tickets for the event rather than having two separate entities make separate purchases and take the chance that there wouldn’t be enough tickets. In addition, it can be considered a basic act of courtesy and thanks, not to mention mutual convenience, to purchase the tickets for members of the foundation that supports a university program. (3/15)

Should we deposit the professor’s check as a credit against the computer expense? 

No. Deposit the check as miscellaneous revenue to a Fund 29 FOPPS, not as a credit to expense. Crediting expense is only appropriate under very limited circumstances, and this does not qualify. No matter how it is paid, the computer is entirely for official university business and it is owned 100% by the university. Therefore, a credit to expense is not appropriate.

As you note, the FCPP contributes up to a set amount toward a computer purchase, but it does not limit the purchase price to that amount. If a more expensive machine is purchased, the difference must be paid by either the department, the faculty member, or a combination of both. Departments may want to exhaust other sources of funding before asking a faculty member to pay the excess. Start-up funds or discretionary gift funds are possible options to consider.

Record the entire computer expense using account code 501800-UCB Faculty Computer Program. After OIT approves and processes the Request for FCPP Reimbursement, OIT then credits your account 501800 for the purchase price up to the program dollar limit. If there is a remaining balance and your department pays it from the same SpeedType, you’re done. If the faculty member pays all or part of the balance, record it as revenue in a Fund 29 (note that this payment cannot be considered a gift). It is preferable to record the associated computer expense in the same SpeedType for proper matching of revenues and expenses. As always, feel free to contact your area accountant if you have questions about how to do the accounting for computer purchases made under the FCPP program. (3/15)

Should this be treated as revenue or as a credit to expense?

If the charge has been itemized to an expense account, then the same expense should be credited because the expense was not for official university business. Crediting the expense effectively cancels it out as if it didn’t happen—which it shouldn’t have. If the vendor was willing to credit the procurement card, the transaction would also have resulted in a credit which would then be applied to the expense through the Concur Travel & Expense System allocation process. In this instance, the employee reimbursed the university for the charge with a personal check which should be deposited with a cash receipt that credits the expense.

If the charge will be processed in Concur, itemize it to account code 013109 (Company Card Personal Charges), and then deposit the personal check to the same SpeedType and account code 013109 to zero out the charge.

In addition to reimbursement, the employee must immediately report the occurrence to the approving official. A copy of the check and cash receipt should be kept with the transaction documentation. (3/15)

After receipts and any support documentation are scanned or faxed into the Concur Travel and Expense System and their legibility is confirmed, technically you can discard the receipt because it can be retrieved electronically. However, CCO recommends that departments keep physical receipts until the expense report is paid and reconciled to the Finance System. (3/15)

Expense system reports approved by 5 p.m. on the last business day of the calendar month will be reflected in the financial statements for that month. This is not the same deadline as the last day to post journal entries in the Finance System for a given month which is the 2nd business day of the following month. Both dates appear in the online calendar. (3/15)

Use account code 501800-UCB Faculty Computer Program. Eligible computers ordered through the faculty computer purchase program receive a credit from OIT into account code 501800. If the original computer expense was recorded in a different account code, that results in an abnormal balance in 501800 (i.e. a credit balance instead of a normal debit balance). If your 501800 shows a credit balance, prepare a JE to move the entire purchase cost to account code 501800. If you have questions about moving or recording costs for the faculty computer program feel free to contact your Area Accountant. For information about the faculty computer program go to the OIT website. (3/15)

The identifies rebates as one of the few allowable instances that reduce (credit) an expense. Obviously, a rebate check would be simpler because it could be deposited to the SpeedType as a credit to the original expense. Although not as direct, the debit card can also be used to credit the original expense by journal entry. Use the debit card the next time you make a purchase in which you would normally use the procurement card. Then create a JE to debit the expense account code for the purchase just made, and offset that with a credit to the original expense for which you received the debit card. If both purchases are similar and use the same account code and SpeedType, record the JE anyway, in order to document the transaction for the record. A clear & complete journal description is especially important in this type of transaction. (Please note that rebates received or used in a fiscal year other than the original expense are recorded differently—call your Area Accountant.) If the debit card is not enough to cover the purchase, make up the difference with the procurement card, and process that piece of the transaction in the Concur Travel and Expense System, as usual. This is a roundabout solution, but it is the best that we can do given the circumstances. (3/15)

You can always follow non-employee procedures when processing student travel authorizations and reimbursements. This means: 
  
If a student needs a Travel Authorization (TA) number, you can follow the expense system’s non-employee process (and the TA # will be last name and date of trip, for example, SMITHZ03112010).
  
If a student needs to be reimbursed, you can do this with a paper form. (Note: the reimbursement form must identify the payee as a student.)

Or, if the student is also an employee of your department, you can follow employee procedures. This means:

• If a student-worker needs a Travel Authorization (TA) number, you can follow the expense system’s employee process (and the TA # will be employee ID and date of trip, for example,12345603112010).
• If a student-worker needs to be reimbursed, you can do this with an expense report in the expense system.

So you can choose the approach – paper, or expense system.

One caution: for travel reimbursements that require a TA, you can’t change horses (or systems) in mid-stream. Whichever type of TA (non-employee or employee) you create for the trip, you’ll need to continue with the reimbursement according to that process (paper or expense system). (From the PSC 2/26/10 newsletter.) (3/15)

The requires cardholders to inform each merchant of the university’s status as a tax-exempt organization, which you did. If the vendor insists on charging sales tax even after being given documentation of our tax-exempt status, in the expense system comments field explain that the vendor was notified of CU’s tax-exempt status but still refused to remove the sales tax from the purchase. Include any other additional documentation (e.g. email exchange, phone call details, etc.) to support this occurrence. For future purchases, consider using a different vendor that honors our tax-exempt status.

As a public institution of higher education of the State of Colorado, the University of Colorado (CU) is exempt from all federal excise taxes and from all Colorado State and local government sales and use taxes. In addition, CU is exempt from sales and use taxes levied by select other states – namely, New Jersey, New York, Tennessee, and Texas. Vendors who need verification of CU’s tax-exempt status can view the Tax-Exempt Status page. In many cases, printing out and supplying a one-page Tax-Exempt Status sheet for your vendor will suffice.

If your vendor asks about a specialized tax-exempt certificate form, direct them first to the related links (grey box) located at the bottom portion of the above Tax-Exempt Status page. Currently, there is a link to the Multi-jurisdiction Sales Tax Exemption Certificate (Texas & Colorado). Additional links to other specialized certificates will continue to be added.

Vendors who cannot use any of the certificates already published on the web should fax or email their own forms to the Finance and Procurement Help Desk: fax 303-837-2160 or FinProHelp@cu.edu. The Help Desk will work with the associate vice president and university controller to determine the appropriate form and obtain signatures, and then return the form to the vendor. (Note that many of these alternative certificates are specific to the situation and therefore require additional information about the purchase – the organizational unit or the vendor should provide this. Contact FinProHelp if you have additional questions: 303-837-2161. (3/15)

No, the university is not subject to sales tax on giveaway items. The Colorado Department of Revenue publishes a series of publications called FYI – For Your Information on several revenue areas, one of them focuses on sales tax. Publication #32 titled Gifts, Premiums and Prizes states, “Purchases of tangible personal property for use as gifts, premiums or prizes, for which no valuable consideration is received from the recipient, are subject to tax on the total purchase price; the purchaser is deemed to be the user-consumer of such property.” Since the University is considered the end user-consumer, it is treated the same as other purchases used for University business and is not subject to sales tax. You must use regular procurement methods for these items, not reimbursed personal purchases. (3/15)

Once the decision is made to inactivate a SpeedType, it must be prepared for inactivation and meet the following requirements:

• All assets, liabilities, and encumbrances must have a zero balance.
• If there is expenditure activity in the current month, inactivation must wait until after month-end close in order for allocations to run/post and for Fund 10 cash rollups to occur. If month-end processes result in unallowable balances, these will need further clean-up.
• If the SpeedType is a Fund 10, the available/deficit balance does not have to be zero but it must be less than a dollar (debit or credit) because BJEs cannot be entered for amounts under $1.
• If you plan to inactivate many SpeedTypes (more than 10), it is more efficient to request inactivation as each is ready rather than waiting to send a single request to close them all at once.

Once the SpeedType is cleaned up and ready to inactivate, you may send an email request to accounting@colorado.EDU (no form is required). Please include both the 8-digit SpeedType number and its description to help us verify that the correct ST is inactivated. If you have questions about the inactivation process, feel free to contact your area accountant. (3/15)

The Edit Check verifies that you have used a valid combination of data such as fund/organization/program or fund/organization/project and fund/account combinations. Edit check also checks to make sure all values used are active. The Budget Check checks to make sure that no account (asset, liability, revenue, expense, transfer) used on the transaction is a “System Maintained” account. System maintained accounts are not allowed to be used on journal entries, except that the cash transfer accounts 990000-994999 can be used on the cash transfer journal entry panels. (3/15)

The describes the various fiscal roles used in the Finance System. (3/15)

The following are encumbered:

1. Payroll salary (not hourly).
2. Benefits administered through HRMS (taxes, insurance and retirement) on salaried employees are encumbered. Benefits administered through the Finance Allocation process (workers’ compensation, unemployment compensation, and annuitant’s insurance) are not encumbered.
3. Purchase Orders (POs) and Standing Purchase Orders (SPOs).
4. Facilities and administrative budget on sponsored projects. (3/15)

Yes. You can process journal entries between campuses. These journal entries have to comply with all the rules for doing journal entries and the entry must be acceptable to both departments. This includes actual journal entries, cash transfer journal entries and payroll expense transfer journal entries. This does not include budget journals. (3/15)

Each month has a campus close deadline date when no more journal entries can be made by the campus for the closing month. The campus close is generally on the 2nd working day of the following month. You can find this date on the CCO calendar or the OUC GL calendar. These identify the time and day that the General Ledger closes to campus journals for that month. On the working day following the campus close, the System Office briefly opens the period periodically throughout the day to post allocation journals. This is known as the system close day. This month-end close process occurs each month following the day identified as the close for the campus.

After 6 p.m. on the campus close day, anything that gets “Approved to Post” for the just-closed period is acknowledged by the Finance System (so you may think everything is fine), but in fact, the journal remains unposted in limbo and the System Office has to apply additional processes to get rid of these. CCO also advises the journal creator and approver to copy or recreate the journal in the following month’s business; otherwise, the journal creator assumes that their journals posted. The disposition of these problem journals takes a lot of effort by System, CCO, and the department.

Do not create, validate, approve, or post journals for the closing month after 6 p.m. on the campus close day. If you do so inadvertently, the journal will be deleted and will not post, even if the journal status is "approved to post." What you should do instead is copy or recreate the journal in the following month's business. To see this information presented in a more visual format, see a generic monthly close calendar.

The first email sent was regarding a fund 30 sponsored project JE. Fund 30 (and also fund 31 & 34) always have an earlier cutoff than non-3x funds in order to give CCO time to perform their secondary approval of the JE. Both dates appear in the CCO calendar. (3/15)

In order to reverse a journal entry, you have to create another journal entry to the same FOPPS, account numbers and dollar amounts but with opposite dollar signs. The dollar amounts of the original and reversing JE’s then net to zero effectively reversing the original JE. There are two ways to accomplish this. The first is to just create a new journal from scratch.

However, the recommended way is to use the Copy Journal process to copy the original journal entry you want to reverse. Give the new journal entry a journal ID of REVxxxxxxx (where xxxxxxx = the original JE number) and click the Reverse Signs box. You should also modify the journal header description box to explain the reason for reversing the original JE. The step-by-step under the Journal Entries topic header can assist you in the process. The Copy Journal process cannot be used to reverse a Payroll Expense Transfer or a Cash Transfer. Those have to be reversed by creating a new JE from scratch. For Cash Transfer reversals, it is acceptable and preferred to debit 995100 (Cash Transfer In) and credit 997100 (Cash Transfer Out) as this zeros out the two cash transfer account codes which is the primary goal of the reversal correction. (3/15)

No. We cannot set up an auxiliary FOPPS for this, i.e., accounting for private, external entities' financial business. By doing so we would be reporting this activity as university business and it is not.

However, we do have what we call agency fund FOPPS set up in fund 80. This fund group is used for private money and CU is essentially acting as the banker. Examples of who uses agency funds are independent student organizations, and many private businesses or entities that have a working relationship with CU. Agency fund FOPPS represent business activities of organizations external to the university and are not allowed access to certain CU business processes such as HR, purchasing, legal counsel, etc. Agency fund FOPPS pay one-half the GAR rate on their expenses. All requests to create an agency fund FOPPS are reviewed and approved by the vice chancellor for administration. (3/15)

A SpeedType can be renamed to improve its description for the same activity but it cannot be used for a different purpose. Always request a new SpeedType for a new activity.

When a program is created in the Finance System, attributes are assigned based on its activity. The most important attribute is the expense purpose code (EPC) which classifies all the expenses as instruction, research, public service, etc. The EPCs ensure that our financial statements are properly classified. If you change how an existing SpeedType is used, then that new activity may be misclassified on our financial statements. In addition, changing the purpose would alter the integrity and continuity of the financial history of a SpeedType because transactions of the old activity would be attributed to the new activity when running reports for prior periods. (3/15)

You should leave the old SpeedTypes assigned to the old FOPPS and get new SpeedTypes for the new FOPPS. HRMS is driven entirely by SpeedTypes. When you change the FOPP value of a SpeedType then you distort HRMS history for that old SpeedType. Therefore, you should get new SpeedTypes for new FOPPS, even if you are using existing programs and fund but with a new organization code. The only exception is if the old FOPPS was set up under the wrong organization. Please use the following process if you are contemplating a change of this nature.

1. Review your desired change with your vice chancellor finance officer and get her/his approval.
2. Work with your area accountant to manage the change.
3. Once you have the new FOPPS set up you will need to do the following.
   1. Change SpeedTypes on the payroll funding distributions for all employees paid from the old SpeedType.
   2. Change SpeedTypes on any open standing purchase orders.
   3. Contact any on-campus service provider who may be using the old SpeedType for recurring charges.
   4. If this involves auxiliary funds, process journal entries to move any balance sheet items, except Accounts Payable, to the new FOPPS.
   5. Contact the Bursar’s Office to make any changes on Student Financials if this system is used on the old SpeedType.

CCO can set up a process whereby any activity hitting the old SpeedType can be automatically moved to the new SpeedType. (3/15)

The Subclass ChartField is an optional field available to departments to provide an additional value for classifying revenue and expense transactions for an existing program or project. This is a five-character (maximum), alpha-numeric field and values must be established in the Finance System before they can be used. A SpeedType must also be created to represent the new subclass FOPP combination. Values subclasses and SpeedTypes can be requested via the .

The advantage of subclass use is the ability to review financial transactions by subclass over multiple programs or projects, and also the ability to further break down financial transactions within a single program or project.

For example, PHAS1 could be a subclass value associated with many programs. For each program that you would like to use the PHAS1 subclass, you would need to create a unique SpeedType. If you want to look at the activity for PHAS1 across all of the programs in your org (department), simply run a report for PHAS1. If you want to look at the activity for PHAS1 for only one program, then run a report for that PHAS1 SpeedType specifically. If you want to look at all the financial transactions for a program, including non-subclass activity, run a report on the program value (not SpeedType). (3/15)

Allocations are automated journals that contain pre-defined criteria that tells the Finance System how they should run each month. These criteria instruct what “activity” in what FOPPS the system will look at to calculate an Allocation Journal (prefix of ALO). They will run the same way each month unless modified or inactivated. Allocations run at the end of the month after the General Ledger has closed and all possible current activity for the month has posted.

For example, fringe benefits are applied against salaries paid from each SpeedType. GAIR is another example which is applied against auxiliary and agency SpeedType expenses. If you have allocation questions, contact your area accountant. (3/15)

All vendors must have a fair and equal opportunity to compete, and to be treated equitably by the award decision.

Conflicts of interest may arise in the context of gifts, travel, or entertainment provided by current or potential vendors. Thus, university employees should not solicit or accept any gifts, entertainment, favors, services, or other economic benefits from current or potential vendors if it would give rise to the appearance of impropriety.

Employees may accept some unsolicited items of trivial value from current or potential vendors, as described below, provided that their acceptance would not create an appearance of impropriety. 

An appearance of impropriety can arise if the gift suggests an employee is using their university role for personal benefit, giving preferential treatment to a current or potential vendor, losing their independence or impartiality, or accepting gifts or favors for performing official university duties.

Coffee, tea, juice, snacks, and similar items of trivial value can be accepted at a meeting to discuss university business. 

Meals provided during the meeting may also be accepted if the meal is of trivial value. 

An employee may not accept meals or entertainment with an aggregate value or cost of $75* or more, from a current or potential vendor, in a full calendar year. 

An employee may not accept meals or entertainment of any value from a current or potential vendor, if acceptance would create an appearance of impropriety. 

*This amount is regularly adjusted for inflation. For the most recent amount, please consult the .

If the meals are included in the conference program, then yes. 

During a conference, all meals provided by the hosting organization are included in the attendance fee, so they are not considered a personal gift or economic benefit to the employee

Pens, calendars, notepads, books, and similar items of trivial value may be accepted at a conference.  

An employee may not accept promotional items with an aggregate value or cost of $75* or more, from a current or potential vendor, in a full calendar year.

An employee may not accept promotional items of any value from a current or potential vendor if acceptance would create an appearance of impropriety.

An employee may not use promotional items from potential vendors in a way that could give the appearance of preferentiality during a purchasing decision. 

*This amount is regularly adjusted for inflation. For the most recent amount, please consult the .

Employees should never indirectly solicit or accept gifts or substantial economic benefits that would be inappropriate under state law if they were solicited or accepted directly. 

For example, it would be inappropriate for an employee to personally benefit from a gift or substantial economic benefit given to the employee’s spouse or dependent child

Yes. The CU Foundation may accept gifts that are charitable in nature, and which benefit the university (rather than a specific person). To determine whether a vendor gift to the university is appropriate, please consult with The Foundation.

Yes. Employees for the University of Colorado are considered government employees under Colorado Law and are therefore subject to gift limits under Amendment 41

Additional information on Amendment 41 can be found here.

Cash or cash-like (e.g., gift cards) awards to employees are taxable no matter what the amount. All cash awards must be paid via the payroll system so that taxes are appropriately withheld and reported.

Non-cash awards depend on the type and value. Engraved plaques, trophies, or medals made of non-precious metal are not subject to tax reporting. Other types of non-cash awards, rewards, or prizes valued at $100 or more (individually or in the aggregate) during the calendar year are tax reportable. If less than $100, they are not.

The  explains the requirements and procedures in detail. (3/15)

As a general rule, no. State employees cannot accept gifts from vendors. Heading the list of laws governing gifts to state employees is Article XXIX of the Colorado Constitution which had its start as Amendment 41. Its overarching purpose is well-stated by the Independent Ethics Commission (IEC) established by the amendment to give advice and guidance on ethics issues arising under the law: “…voters of Colorado approved Amendment 41 in order to improve and promote honesty and integrity in government and to assure the public that those in government are held to standards that place the public interest above their private interests.” Article XXIX prohibits the solicitation, acceptance or receipt of any gift or other thing of value worth more than $50 in any calendar year from a person, without that person receiving lawful consideration of equal or greater value in return. There are eight exceptions written into the law that are further explained by the IEC’s . providing guidance on how to apply the law to a variety of real world situations. One such exception is “an unsolicited item of trivial value less than fifty dollars ($50), such as a pen, calendar, plant, book, note pad or other similar item.” Note, however, that a gift of money in any amount is prohibited.

Colorado Revised Statutes Standards of Conduct (24-18-104) reiterates in broader language that state employees shall not “accept a gift of substantial value…Which would tend improperly to influence a reasonable person in his position to depart from the faithful and impartial discharge of his public duties.”

The university’s states “procurement of materials, and other administrative tasks at the University must be free of the undue influence of outside interests.” The Fiscal Code of Ethics linked to the is more specific: “Employees who purchase goods or services, or are otherwise involved in the University purchasing process, shall…Not solicit or accept money, loans, credits, or prejudicial discounts, and avoid the acceptance of gifts, entertainment, favors, or services from present or potential suppliers which might influence or appear to influence purchasing decisions.” These words are echoed in the .

How about gift cards or items worth less than $50?

Amendment 41 prohibits gifts of money in any amount—and gift cards are cash-like. Therefore, gift cards from vendors are not allowed. How about non-cash items like a small flash drive or a mug or a free sandwich from a caterer trying to drum up business? Amendment 41 prohibits gifts valued over $50 but allows an exception for items of trivial value (<$50). This would seem to allow these three examples as long as they were unsolicited, but hold on. For employees who are involved in purchasing, university policy does not identify a $50 dollar threshold so theoretically there is no lower limit. Instead, its focus is on the gift’s influence (or appearance of influence) in purchasing decisions. This is a more stringent requirement and demands extra vigilance. Giveaway items used as a marketing tool are standard practice in industry and as a rule do not target a particular individual with the implicit understanding that a purchasing favor is to be returned. But nevertheless, that remains the underlying issue. With even the smallest gift, you must be confident that it will not improperly influence a buying decision. If you are not certain, or simply want to avoid any potential issue from arising, decline the gift. (3/15)

No. Do not deposit the check at OCM. Checks made payable to CUF and all supporting documentation should be sent to the CU Foundation for proper recording (4740 Walnut St, Boulder, CO 80301 or Campus Box 57). Only checks made payable to the University of Colorado, the �鶹��Ժ, a campus, a CU department, or a CU program can be deposited directly to the university through OCM as long as other conditions are met. See the details on how to deposit gift checks in either a list format or a flowchart format. (3/15)

No. Essentially, we are taking CU funds and providing additional remuneration to selected faculty for outstanding service. This should not be accomplished by routing the funds through an external entity. It is permissible for the external entity to select the outstanding faculty to receive the award. But the award should be paid through our payroll system following the proper procedures provided by the Recognition and Training PPS available at https://www.cu.edu/psc/procedures/. (3/15)

The says: University employees, associates, affiliates, or students may not use university funds for the sole purpose of making contributions or charitable gifts to any organization. This prohibition on using university funds to make a contribution includes cash and non-cash contributions as well as contributions to the University of Colorado Foundation, Inc. Examples of non-cash contributions include the use of labor, supplies, telephones, photocopy machines, computers, email, or other equipment.

This means that even though the university isn’t spending its cash on a charity, it is likely contributing non-cash through the collection effort. However, the same APS includes several waivers, one of them:
Non-cash support of University-wide campaigns may be authorized by the appropriate Vice President or Vice Chancellor when the campaign is deemed to be in the best interest of the University or campus. The Colorado Combined Campaign is an example of a permissible campaign. The University’s donation can be in the form of the use of labor, supplies, telephones, photocopy machines, computers (including email), or other equipment used to directly administer the campaign.

You must get the appropriate vice chancellor’s approval before you organize this sort of thing. The VC will need to know the benefiting organization and the level of departmental resources required (staff time, material needs, etc.). (3/15)

Yes, gift funds follow the same policies and procedures as all other funds unless the terms of the gift are more restrictive than university policies and procedures in which case we follow the gift restriction. We always follow the more restrictive of state/University policy or gift terms. Gifts are given to the University of Colorado in the name of the Regents. As such, they are a gift to a state agency and become state funds subject to applicable state and university policies and procedures.

Example 1: The donor may allow gift funds to be used for first-class travel however university policy does not allow first-class travel. Therefore, gift funds may not be spent on first-class travel.

Example 2: General funds may be used for any legal purpose for the university as decided by management. However, the donor said this gift may only be used to support the Chemistry Department or it may only be used for financial aid. We must, therefore, limit the use of the gift funds for the Chemistry Department or financial aid. We may not use the gift funds for any other university business. (3/15)

The following is taken from Gift Processing Procedures which has more information:

1. If you receive a check made payable to the CU Foundation, then forward the check, envelope, and all original documents, including all accompanying correspondence to the CU Foundation (4740 Walnut St, Boulder, CO 80301, 303-541-1200). 
2. If the check is made payable to the University of Colorado, the �鶹��Ժ, a campus, a CU Department, or a CU program and there is no accompanying information indicating that the donor is responding to a specific solicitation, the gift is donated directly to the university and shall be remitted to the Office of the University Treasurer for deposit.
3. Prepare a cash receipt and deposit the check at the cashier in Regent and use the following: SpeedType 13468785 (34-10612-38171, UCB Treasury Gift Clearing, use this for Boulder campus only—other campuses have their own) and account code 070504 (Treasury Gift Clearing Suspense)
4. In the Remarks section, note the SpeedType into which the funds should be transferred once cleared by the Office of the Treasurer.
5. Send copies of the check, cash receipt, donor letter and any other documentation to Shannon Matthews at the Treasurer's Office at 25 UCA.
6. Be sure to keep departmental copies as well. (3/15)

This is known as a Gift In Kind (GIK) transaction because it involves a non-cash donation. GIK transactions route through CU and not the Foundation. In brief, the policy states that any GIK

• valued at over $5000 or 
• attached to a written contract or agreement or  
• that is an addition to an existing collection valued at over $5000 

requires

• the completion of a GIK Acceptance Form and
• the approval of the campus controller prior to custody.

Donations of GIK valued at less than $5000 and not accompanied by a bilaterally executed written agreement are not recorded in the Finance System and do not require a GIK Acceptance Form (except a GIK of any value to Athletics is recognized, and GIK used for Recognition and Training awards is recorded). Contact the about a receipt to support a tax deduction.

A GIK valued at over $100,000 requires an appraisal paid for by the donor if the donor requests IRS Form 8283. If no Form 8283 is requested, the campus controller may approve payment for an appraisal. For donor tax benefits, CU must receive the gift directly from the donor (not via the Foundation); the gift must be in good condition, and the University must use the gift for at least three years.

If your department receives an offer of a gift in kind, consult the Accounting Handbook to be sure you are in compliance before accepting the gift or making any commitments. Direct any questions to the campus controller. Follow this link for the . (3/15)

The tee shirt is a gift in kind, i.e. a non-monetary gift. The Recognition and Training PPS requires that all GIK donated for use as an award or prize is recorded by debiting the applicable expense code:

• 550105 – Performance Support Awards Non-Cash/Non-Employee
• 550106 – Performance Support Awards Non-Cash/Employee
• 550108 – Participant Prizes

The credit side of the journal entry should use revenue account:

• 240606 – Noncapitalizable (3/15)

This is allowable. There is nothing in university policy that prevents this activity, although it may seem that one or more policies pertain. Let us examine each of these policies in turn. Gift In Kind– This requires that the university receive the gift from the donor, which does not apply here. In this case, the tickets are offered directly to the attendees by the vendor. Recognition and Training PPS – The Participation Award category in this PPS does not apply because the attendees do not automatically receive a ticket just for participating in the official function. They must obtain one from the vendor. In addition, since it is the vendor and not the university offering the tickets, the participation award element is removed. Finally, while a ticket may meet cash-like criteria, its value is less than $100 and therefore would not require the Recognition Reporting form even if it did qualify as a participation award. Complimentary Tickets PPS – This policy involves tickets to university events, and the free ticket is for a non-university event. Therefore, it does not apply.

This sort of activity is similar to other university events where vendors may be present and give away tokens such as pens, water bottles, or coupons. However, please consider the following. You must guard against appearing to offer any kind of vendor endorsement or promotion because that is inappropriate university support. In addition, take care not to form some sort of exclusive arrangement with a particular vendor. For example, if another theater wanted to make the same offer, you could not exclude one over the other. The goal is to support the students, not to give a business advantage to an outside vendor. (3/15)

Once money is received by CU those funds are subject to all restrictions within our existing policies and procedures. A donor cannot direct us to spend the donated money in ways that violate our policies and procedures. For example: a donor stipulated that their donation is to be used so that all faculty can fly first class to all conferences. First class travel is not allowable as per CU travel policy; therefore, we cannot use the donated funds for that purpose.

CIW stand for Central Information Warehouse. It's a database with data extracted from various CU administrative systems, including the Finance System (aka "GL" for General Ledger). See http://www.cu.edu/irm/CUonly/dwhse/. You can tell if your are using the CIW instead of PeopleSoft because most systems that retrieve financial data from the CIW require a User ID ending with "CIW" or an ID that is similar to your name, or use your Windows account. The Cognos Reporting System, for example, relies on the CIW for its data. 

To get access to the CIW, complete the on the UIS web. (3/15)

The DUNS number (Data Universal Numbering System) is a 9 digit identifier provided by Dun & Bradstreet. It is used in the business world primarily as a source of information to determine credit worthiness of an entity. Suppliers generally want ours for this reason. In addition, the Federal government requires that applicants for Federal grants and cooperative agreements have a DUNS number. This helps identify related organizations that receive funding and provides a consistent name and address data for electronic grant application systems.

Each University of Colorado campus has its own DUNS number and Boulder’s is 00-743-1505. Use this number exclusively whenever a DUNS number is required. Do not apply for another one! Other campus DUNS numbers are posted on the website. If you do encounter a funding agency that asks for a different and unique DUNS number, contact the , 303-837-2183, who will put an end to this nonsense. (3/15)

Yes, an electronic image is a suitable substitute for original paper university records in most cases. The states in section D.7, “The retention period is satisfied by retaining an electronic record of the information that accurately reflects the information set forth in the record and remains accessible for later reference.” 

“Accurately reflects” implies that the electronic image is readable, so before you toss the paper, be sure you can read the electronic version. “Accessible” means that you can locate the electronic files for later retrieval to use as needed and to dispose of when the retention period is met. You may want to keep these files on a networked drive and limit access. It is also a best practice to keep electronic backup copies on a different drive.

These electronic files are still university records and, therefore, should be stored on a medium owned or controlled by the university. Work with your IT staff on how to best manage these records for archival and security purposes.

While scanned images of receipts are acceptable as source documentation for records retention purposes as long as they are an accurate image of the original and are readable, please note that, in addition, federal contracts also require that the original be retained for a minimum of one year after imaging per . (3/15)

All legal notices should be forwarded to the Office of University Counsel to:

Managing Senior Associate University Counsel
Office of the University Counsel
1800 Grant Street, Suite 800
Campus Box 35 UCA
Denver, CO 80203
Telephone: 303-860-5686
Fax: 303-860-5690
https://www.cu.edu/universitycounsel

PIE is a charge caused by certain FOPPS being in cash deficit on a daily average for a quarter. The cash deficit reduces the total amount of cash available to the Treasurer to invest and reduces the interest earnings of the University. Therefore, FOPPS are charged PIE to replace the lost interest earnings.

All FOPPS in funds 2x, 7x and 80 are subject to PIE. The cash balances of all FOPPS of a single organization within the same fund (except fund 28) may be aggregated to calculate one average daily cash balance for that organization. This is accomplished by selecting one SpeedType of the organization and assigning that SpeedType as the PIE attribute to all the SpeedTypes of the organization in the fund. The daily cash balance of the FOPPS is averaged for the quarter. If the quarterly average is a deficit then the PIE SpeedType is charged PIE interest expense in transfer account 997102–Voluntary transfer out within campus-PIE. 

For fund 28 FOPPS, federal cost principles prohibit the use of a surplus in one Internal Service Center (ISC) to fund the deficits of other ISCs or other operations. They also require that any interest earned on the investment of ISC cash balances be returned to the ISC as an applicable credit, thereby reducing their rates. Therefore, we cannot combine an individual fund 28 ISC FOPPS cash balance with any other cash balances. If we did combine these cash balances, the ISC positive cash balances are reduced thereby reducing the interest income allocable to those ISCs. This results in an increase in their rates that are then charged to federally sponsored projects.

The only exception to this rule is where one ISC has a number of fund 28 FOPPS used for internal management of the single Service Center. For example, if Imaging Services had more than one fund 28 FOPPS to manage Imaging Services, those cash balances would be combined. The basis for this exception is that there is one ISC and the multiple FOPPS are all for same ISC. (3/15)

Generally speaking, personal property not in the care, custody or control of the university is excluded from insurance coverage. Therefore, the university is not liable to replace the sunglasses. The employee who broke the sunglasses or the department head may elect to make a reimbursement, but the university is not obligated. All insurance questions should be referred to the Office of Risk Management. (3/15)

This situation only applies to International Education which has been authorized to use foreign bank accounts to administer international programs. At the end of each year International Education must convert the foreign bank account balance into US dollars and this can result in a gain or loss due to a change in the rate of exchange since the last conversion. These gains and losses are reported in account 231102, Unrealized Currency Gain/Loss. These gains and losses are not realized at this point. They merely reflect a change in the balance sheet value due to a change in the rate of exchange. They would be realized gains/losses if we actually withdrew the funds and converted them to US dollars at the current rate of exchange. (3/15)

1. Is this a formal student organization?
2. If yes, is it an affiliated organization of the university or an independent organization? Refer to the Relationship Statement for the University of Colorado Student Organizations on the Student Organizations Finance Office.
3. If it is an independent student organization then follow the committee on Use of University Facilities policy. 
4. If it is an affiliated student organization then it is already administered through the Student Organization Finance Office, and we will follow their policies.
5. If this is not a formal student organization then you have to answer the following questions.
6. Is the department co-hosting the event or are the students working on their own?
7. If the students are working on their own, then they are private individuals and they should administer their activities outside of the University business and financial accounting/reporting processes except as required by the Committee on Use of University Facilities policy.
8. If the department is co-hosting the event then we are conducting university business and all university policies and procedures must be followed in accounting for the revenue and the expense. All departmental revenue and expenses, per the agreement with the students, will be recorded in a FOPPS.
9. The FOPPS to use depends on the department. If the department is an “auxiliary fund department” such as Housing, Athletics, etc. then the FOPPS used should be in their fund/organization structure. If the department is a “general fund” department such as an academic department, then the FOPPS should be in fund 29, Auxiliary – Non-enterprises. Do not record university business in an agency fund FOPPS, fund 80. (3/15)

The IRS recognizes the university as exempt from federal taxes under section 501(c)(3) of the Internal Revenue Code. A list of such organizations – including CU – can be found on the . To locate the university on this Excel table, click on the Colorado link and look or search for “�鶹��Ժ.”

To confirm that the university is eligible to receive tax-deductible charitable contributions, use the page. For a pinpoint search, include “�鶹��Ժ” in the search criteria and select the “All of the words” radio button. (3/15)

The following are the numbers provided by the PSC and the Treasurer's Office. These numbers should be used when requested. Departments should not set up new numbers without prior approval from the Treasurer's Office.

University Numbers:

• Federal Employer Identification Number (FEIN):  84-6000555
• Federal Excise Tax Exemption Register Number:  84-730123K

Boulder Campus Numbers:

• Certificate of Exemption for Colorado State Sales/Use Tax (CU): 98-02565-0000
• Certificate of Exemption for Colorado State Sales/Use Tax (Boulder campus): 98-02915-0000
• City of Boulder Tax Exempt Number: 0-03282
• DUNS Number: 00-743-1505 ()
• State and County Sales Tax License Number: 10-12726-0000
• City of Boulder Sales & Use Tax License Number: 0-03282-1

Certificate of Exemption for Colorado State Sales/Use Tax

(3/15)

Value Added Tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. It is most often used in the European Union. As a U.S. entity, the university does not have a VAT number. Some vendors request certification that the university is a U.S. entity. If requested by the vendor, the can provide a certificate to show that CU is indeed a U.S. entity. (3/15)

As per the : Officers are the president, chancellors, vice presidents, the university secretary, the university treasurer, associate and assistant vice presidents, vice chancellors, associate vice chancellors and deans. They are not chairs or directors of institutes.

You can find who the officer role is in your department by using PeopleSoft ChartField values. Choose the ‘Chartfield/SpeedType Setup’ tile, then choose ChartField Values>Organization, put in the organization number, click ‘search’, and then choose ‘CU Department’. This will give you information for the department and will tell you who the officer is.

Additional pay is used to pay wages that are not part of an employee’s regular appointment. However, they are still subject to regular fringe benefit rates which was one of the two unexpected charges that appeared. In addition, a recharge for the Eco Pass benefit is charged to auxiliaries which accounts for the small second charge. Both of these are allocations that run after the Finance System campus close at month-end. (3/15)

An honorarium is a payment for a one-time service made to an individual as a gesture of appreciation and is considered a token payment given the services rendered and/or stature of an individual rendering the services. An example of this is a guest lecture. Often, an honorarium is identified after a service has been provided although prior planning and an expectation of payment is allowable.

In contrast, payment for service is a transaction where the fee is always negotiated in advance at fair market rates and generally covers delivery of services over a period of time as opposed to a single instance.

Honoraria are discussed on the . An honorarium requires the Honorarium (HNR) form for amounts over $100, and the payment for service requires the Scope of Work (SOW) form in any amount. Both the HNR and the SOW forms require review and approval (signature) by your campus Human Resources office. SOW review must be conducted prior to any work being performed. See the . (3/15)

Employee Services and IRS policy is that the university can refund the current year plus two years of FICA and Medicare taxes. This is how far back we can correct W-2s— the process used to correct the refund with the IRS. Contact PBS for assistance on how to process any needed correction. (3/15)

In order to reverse a Payroll Expense Transfer (PET) you have to use the PET process to create another PET to offset the first PET. Do not use the Copy Journal process with the Reverse Signs box checked. This process does not work with PETs. (3/15)

After each payroll is run, the payroll and benefit journal entry is built and fed to the General Ledger. This interface process uses the following information to determine the salary expense account for each person and type of pay: Job Code - Earnings Code - Percent of time appointment - full-time or part-time - regular or temporary position. Contact for more detail. 

You need to work with Employee Services to recover the salary overpayment from the employee and to ensure the payroll expense is properly credited after receiving repayment from the employee. Whether the benefit expenses will be credited depends on when the overpayment is detected and reported to PBS. Taxes and retirement will always be credited. Insurances will only be credited if the overpayment is identified within the time allowed by insurance companies to recover errors. If we cannot recover the overpayment from the insurance company then CU must retain that expense. If the overpayment error was on a sponsored project, then the insurance cost must be moved to another non-sponsored project FOPPS of the department. Worker’s compensation, unemployment compensation and annuitant’s insurance are administered by a PeopleSoft allocation process and will be credited when the salary expense is credited.  

The above assumes a return of 100% of the salary. If the overpayment is only partial (the employee retains some payment for the pay period and returns only part) then only those expenses driven as a percentage of pay such as taxes, retirement, worker’s compensation, unemployment compensation and annuitant’s insurance will be reduced. Those expenses that are a flat amount for qualifying employees such as insurance, will not be affected if the employee still qualifies to receive those benefits. Refer to . (3/15)

These costs should be charged to a services or contractual services expense account. You can use the accounts in a particular expense sub-group such as 480102 Office Services or 480105 Office Contractual Services if these are office administration expenses for example. Or you can use the Other Operating Accounts 552602 Other Operating Services or 552605 Other Operating Contractual Services. You may not use any salary and wage account (400100 – 418399). The salary and wage categories must be used only for payments to our employees. The salary and wage category is used for a number of things such as calculating the worker’s compensation fringe benefit rate, calculating the unemployment insurance fringe benefit rate, prorating general fund fringe benefits in the Facilities & Administrative Rate study, reporting payments to employees separate from payments to vendors in our annual financial report and on the State of Colorado annual financial report, etc. Including payments to vendors for temporary services in the salary and wage accounts distorts these calculations and financial reporting. (3/15)

Payment on a worker’s compensation claim represents a reimbursement to the university for payroll costs paid by the University on behalf of the insurance company. These insurance proceeds cannot be used for other purposes. Therefore, record these reimbursements as a reduction of the injured employee’s payroll cost. However, because actual payroll accounts are system maintained and not available for use, you must use the appropriate Non-HRMS (NHRMS) account code for the budget pool where the original salary expense was recorded:

• 400169 - Fac FTP Sal NHRMS
• 400369 - RschFac FTP Sal NHRMS
• 400549 - PRAFac FTP Sal NHRMS
• 400669 - RsAsFac FTP Sal NHRMS
• 400769 - OthFac FTP Sal NHRMS
• 401049 - RschFac PTP Sal NHRMS
• 401069 - RschFac FTT Sal NHRMS
• 401099 - RschFac PTT Sal NHRMS
• 401349 - Fac PTP Sal NHRMS
• 401369 - Fac FTT Sal NHRMS
• 401449 - Fac PTT Sal NHRMS
• 401499 - PRAFac FTT Sal NHRMS
• 401599 - PRAFac PTT Sal NHRMS
• 401749 - PRAFac PTP Sal NHRMS
• 401769 - RsAsFac FTT Sal NHRMS
• 401789 - RsAsFac PTT Sal NHRMS
• 401849 - RsAsFac PTP Sal NHRMS
• 401899 - OthFac PTP Sal NHRMS
• 401989 - OthFac PTT Sal NHRMS
• 402049 - OthFac FTT Sal NHRMS
• 402249 - StdFac FTP Sal NHRMS
• 402299 - StdFac FTT Sal NHRMS
• 402349 - StdFac PTP Sal NHRMS
• 402399 - StdFac PTT Sal NHRMS
• 402649 - O/E FTP Sal NHRMS
• 402749 - O/E PTP Sal NHRMS
• 402949 - O/E T Sal NHRMS
• 405149 - Class FTP Sal NHRMS
• 405249 - Class PTP Sal NHRMS
• 405349 - Class FTT Sal NHRMS
• 405249 - Class PTP Sal NHRMS
• 405349 - Class FTT Sal NHRMS
• 405449 - Class PTT Sal NHRMS 
• 407699 - Std Hr Pay NHRMS
• 407799 - Std OnC WS Pay NHRMS
• 407899 - Std OffC WS Pay NHRMS

(3/15)

The departmental end-user cannot process payroll expense transfers involving work-study earnings. If you need to transfer funds that involve a work-study transaction, please complete the Hourly to Work-study Transfer Request Form. Send the completed form to the Student Employment Office (77 UCB). This form and the On-Campus Student Employment Procedures can be found on the . Transfers will be contingent upon student eligibility and availability of work-study funds. Additional questions should be directed to the Student Employment Office at 492-7349. (3/15)

On the face of it, saving money seems like a no-brainer. Price is definitely an important factor in any buying decision. The require that prices are fair and reasonable, but note that it does not say lowest. There is more to consider than the selling price alone.

While “great deals” are a hallmark of Internet shopping due to pricing fluidity and global competition, finding and locking them in when you need it can involve a great deal of time. Chances are, if you went back to Amazon today, the price would be quite different.

A major goal of CU Marketplace is to support a competitive shopping experience that is fast and convenient, and that offers consistently fair and reasonable (and in many cases, the lowest) prices. In addition, buying through the Marketplace does not require the procurement card, or its attendant expense report obligations—a real timesaver. Plus, CU Marketplace transactions upload to the Finance System automatically, thus eliminating posting delays and enhancing timely reporting accuracy. All of these Marketplace attributes result in increased accuracy and efficiency, which are not necessarily reflected in the price.

Consistent use of the Marketplace leverages CU’s business relationship with our preferred vendors and provides long-term benefits to the university, including prices. Except for a handful of mandatory pricing agreements, there is latitude in the vendors with whom we choose to do business. To answer the original question, the proper course of action is to be mindful of the complete picture. Certainly, saving money is a high priority, but unrecognized costs and total value—not solely price—must be taken into account. (3/15)

You don’t need an existing SPO if you have a true emergency. University procurement rules identify the steps to follow when an emergency condition arises and the need cannot be met through normal procurement methods. There are stringent requirements that must be met in order to qualify as an emergency procurement. One rather obvious one is that it must be for an emergency. We recommend that you read the section on emergency procurements in the and then discuss your department situation and concerns with the appropriate purchasing agent. (3/15)

No. Any goods purchased by an employee and reimbursed by the university become the property of the university. Other than the reimbursement for the use of a private vehicle and uniform allowances, the university does not reimburse employees for the use of their personal possessions for university work. (3/15)

Departments cannot spend money from their FOPPS to buy materials to be placed in the Library system. The department should transfer the money to a Library FOPPS and the funds spent from the Library FOPPS. All Library acquisitions are capitalized as part of the total cost of our library collection asset. Additionally, these costs are uniquely handled in our Facilities & Administrative rate calculation for sponsored projects. We obtain the Library acquisition costs from the Library FOPPS. Library acquisitions paid directly from departmental FOPPS would not be picked up, our Library collection value would be understated and we would have errors in our F&A rate calculation. Finally, Library materials bought from departmental FOPPS would be erroneously reported in our annual financial report under the expense purpose code of the departmental FOPPS (instruction or research for example) rather than the academic support expense purpose code designated for Library expenses. (3/15)

Personal reimbursement for office supplies, computers, or furniture is not allowable and will not be processed. This includes reimbursement requests made by employees and non-employees. Following is a summary list of office supplies. If you have questions about items not on the list, please contact the FinProHelp Desk by email or 303-837-2161 before a questionable purchase is made with personal funds with the expectation of reimbursement.

Summary List of Office Supplies:

• badge holders
• binders - all types
• calculators - all types
• calendars/inserts/day planners
• cartridges/toners - all types
• correction tape/fluid
• desktop organizers/accessories
• dry erase boards
• DVDs, CDs
• envelopes/mailers - all types
• erasers
• file storage
• finger grips
• folders
• glues & adhesives (tape)
• hole punches
• index dividers
• labels - all types
• markers - all types
• paper (white/color)
• paper clips
• pop up dispensers
• post-it notes
• push pins/thumbtacks
• rubber bands
• rubber stamps
• scissors
• scotch tape
• staple removers
• stickers
• tablets/pads/notebooks
• tape dispensers
• tapes - adhesives
• vinyl letters
• writing instruments & refills

Cardholders are expected to make purchases from vendors that have mandatory price agreements. The Procurement Card Handbook says, “Cardholders are not to use the Procurement Card to purchase items otherwise covered by a mandatory price agreement. For a list of goods/services covered by such agreements, see the .” (3/15)

Yes. Cardholders may “click-through” or otherwise indicate agreement with online terms and conditions in order to complete small-dollar purchases. As a matter of good business practice, cardholders should read the terms and conditions that apply to any transaction. As always, the purchase must satisfy all the other requirements in the Procurement Card Handbook and applicable PPSs such as and . (3/15)

Yes. You can use the procurement card to purchase postage. However, in allocating the postage cost to your FOPPS, you cannot allocate postage to a sponsored project FOPPS (fund 30/31) unless that project is approved by Sponsored Projects Accounting to pay for postage costs. If your sponsored project FOPPS is not authorized to pay postage costs using the campus mailing services, then you cannot charge procurement card purchased postage to the project either. To do so would be a violation of OMB Circular A-21 and the Federal Cost Accounting Standards (3/15)

Yes, all reallocations of card charges that have posted to the Finance System are done by JE.  (3/15)

 No, it is not allowable to use the Procurement Card Program to purchase any phone cards where there is no itemized billing of the long-distance charges showing the number the call was made to and from as well as the total time and total charges. The purchase of the phone cards where there is no itemized billing does not provide sufficient documentation as to whether calls were personal or business. There is not sufficient accountability to provide a reasonable balance of the risk with the control. OIT does not recommend the use of phone cards in place of the long-distance access codes based on 1) the cost to a department for the long-distance access includes the rollup and administrative time and effort to manage the billing while providing itemized information to the department and 2) auditing concerns, particularly with grant funds…again, where is the balance of risk and control to provide sufficient accountability? (3/15)

The has two types of W-9 forms. One is the CU-W9 for Vendors which is CU’s own W-9 and Vendor Authorization form in place of the standard IRS W-9 Request for Taxpayer Identification Number and Certification form. CU’s form allows us to collect the information we need for both federal reporting (vendor business classifications) and internal business processes (e.g., correct Remit To addresses, etc.). This is completed and signed by external vendors so that the university can purchase and pay for goods and services from that vendor. The other is the signed W-9 for CU – a standard W-9 form already completed and signed by the university and available to vendors when the vendor will be paying CU for something.

Occasionally, vendors have developed their own modified W-9 form and they typically ask the organizational unit they are working with to sign that modified form instead of using the signed CU version on the web. Do not sign their modified W-9—only designated individuals are authorized to sign a W-9 form on behalf of the University of Colorado. The Instructions link next to the “W-9 Signed by CU” form directs the vendor who wishes CU to complete a modified W-9 form to fax that form to the Finance and Procurement Help Desk at 303-837-2160. The Help Desk will work with the associate vice president and university controller to obtain a properly completed and signed copy for the vendor. Please contact FinProHelp at 303-837-2161 if you have further questions. (3/15)

These are all acronyms created by the Concur Travel & Expense System. 

• ESE – Expense System Employee (reimbursement) 
• EST – Expense System Travel (card)
• ESA – Expense System Advance (cash advance)
• ESP – Expense System Procurement (card) (3/15)

This is a good practice to do periodically because accurate information is needed for several key University business processes including the expense system. For “Reports To” data, run the Department Org Report in HRMS. It lists all employees in an org with each employee’s “reports to” and appointing authority. Navigation: Home > Reports and Reviews > Job Information > Department Org Report.

To find the fiscal roles for your org’s SpeedTypes, use the SpeedType with Fiscal Roles Look Up report in the Cognos Reporting System: CU Reporting > Finance > Look Ups

Send any program fiscal role corrections to accounting@colorado.edu. (3/15)

Run a report by project and be sure to select break by project, and this will aggregate the data for all the SpeedTypes (subclasses) for that project. (3/15)

Yes, use Inter-Departmental (ID) accounts as long as the selling FOPPS is not an Auxiliary Enterprise or an Internal Sales Activity (ISA). Internal sales within the university are treated consistently whether the transaction takes place between departments on the same campus or between departments on different campuses. Auxiliary Enterprises (Expense Purpose Code of 2000) must use the revenue account range 280000–289999 in order to identify this TABOR-exempt revenue. Internal Service Centers (EPC 2100) must use revenue account range 380000–389999 for interdepartmental sales. For ISC sales to entities outside the University or to Fund 80 (Agency) FOPPS, use miscellaneous revenue accounts 325000–334999.

Non-auxiliary Enterprise FOPPS in Fund 10, 20, 26, or 29 that make occasional sales to other university departments—on the same campus or on another campus—must use ID Revenue account range 390000–395999 and the purchasing FOPPS must use an appropriate ID Expense account. ID Expense accounts appear in more than a single range in the chart of accounts, but all are preceded by the “ID” designation.

The reason behind using these specific accounts is so the university does not inflate total revenue and expense that results from internal sales. For more on this topic, see Chapter 4 of The Guide. (3/15)

Per the State of Colorado Higher Education Accounting Standard #2 issued by the state controller, instructional fees are defined as those mandatory fees charged to students where the fee is directly related to specific instructional programs. This includes fees related to whole academic programmatic areas as well as to specific course fees. Examples of this type of fee are a lab fee (e.g., chemistry, anatomy), a microscope fee (when the microscope is required for a particular program or course), music fee, physical education fee, and program fee, (i.e., school of business or college of engineering fee). These fees are recorded in the “Tuition and Fees” program code.

All instructional fees are accounted for in the general fund (fund 10) except for instructional fees charged by Continuing Education that are accounted for in their FOPPS in the Auxiliary TABOR Enterprises fund (fund 20). If the fee has been approved to be dedicated to a specific program, then an expense budget is set up for that program and the continuing expense budget is adjusted at various times during the year to equal the actual fee revenue collected. (3/15)

If your department receives an insurance check for a loss on equipment or other property damage, the check should be deposited to a Renewal & Replacement plant fund (72 or 78) into account code 325400, Insurance Recoveries. Always use account 325400 because these monies are considered non-operating revenue and account 325400 records it as such. Using another revenue account runs the risk of being improperly classified as operating revenue, for example, SSEA (250100) or Miscellaneous Revenue (325100), and would cause our financial statements to be misstated.

There are actually two economic events that occur here. The first is the loss of the property and subsequent insurance payment. The second is the decision on how to use the insurance proceeds. Receiving the insurance check does not require that it be used to replace or repair the asset. We could forgo the asset and use the funds for something else. If used for repair or replacement, do not mistakenly credit the insurance check against such cost. Proper accounting is to record these as two events. Contact your area accountant if you have questions.

Refer to the n of the Accounting Handbook.  (3/15)

Departmental self-generated revenue, sales of goods and/or services to parties external to the university, are accounted for in a 2x fund as appropriate for the type of revenue.

• Fund 20 – For all revenue of designated TABOR Enterprises
• Fund 26 – For royalty revenue and fixed price contract residuals
• Fund 28 – For designated Internal Service Centers
• Fund 29 – For all other departmental self-generated revenue

Do not record departmental self-generated revenue in the general fund (fund 10), grants and contracts (funds 30/31), gift fund (fund 34), or renewal and replacement plant funds (funds 72/78). (3/15)

The following are a series of questions that explain related issues that start with the concept of profit vs. revenue. 

Q: Our department sponsored an event that included the participation of an outside organization. The room rental cost $482 and the UMC charged that to our Fund 10. The outside organization then sent us a $482 check as payment for the room. Since we didn’t earn any revenue because we didn’t make a profit, should we just credit the expense? 

A: No, do not credit the expense. Revenues are inflows or increases in financial resources of the university from delivering or producing goods, rendering services, or other activities that constitute the University’s operations. It doesn’t matter if you sold at a profit, a loss, or in your case, broke even. Profit and revenue are not the same things, although there is a connection between them. Profit is the excess of revenues over outflows in a given period of time. If you sell something, you earn revenue. Therefore, this does not qualify as an expense credit. You earned revenue and must enter it as revenue. (3/15)

Q: Do I enter the revenue to my Fund 10 where the expense is?

A: No, don’t post self-generated revenue to Fund 10. Fund 10 is limited primarily to revenues generated from State appropriations, tuition, instructional fees, administrative student fees, and some student activity fees. The campus keeps these revenues separate and clean from all other sources of the campus. Departmental self-generated revenue, such as the room rental revenue, should be recorded in a 2x Fund. (3/15)

Q: But isn’t everything we do to earn revenue really self-generated? I mean, we have to do something to get money. What’s the difference?

A: If you look at the sources of revenue for Fund 10, they are the result of one of our core activities: the education of students. All of Fund 10 is essentially managed as one large operation. The money that the university receives for this is pooled at the campus level and then expense budgets equal to the revenue budgets are allocated internally to keep the whole operation going. This ends up as expense budget in your Fund 10. So yes, you do have to perform your normal departmental functions to receive this budget, but that’s because the University considers those as necessary functions to run the University business. But when your department gets paid for doing something outside of and in addition to this process, that’s considered departmentally self-generated revenue. (3/15)

Q: OK, we have to record the revenue in a Fund 2x. Can we leave the expense in Fund 10 to avoid GAIR? Otherwise it seems like we get penalized.

A: Preferably, expenses and revenues that result from the same business activity are posted to the same FOPPS. This matches costs with revenues. The $482 room rental cost is clearly identifiable and makes this relatively easy to do. If the expense is moved from Fund 10 to 2x, that frees up Fund 10 budget. If the expense stays in Fund 10 while the revenue is put in Fund 2x, eventually that revenue will be spent on something and you’ll pay GAIR at that time. Either way, you’ll pay GAIR.

The Fund 10 budgeting process funds the cost of the university administration and common services that support the generation of Fund 10 revenues. The Fund 2x group falls under auxiliary and self-funded activities. The term self-funded indicates those operations should cover not only the direct costs of the operation but also a share of the indirect costs that support those operations. GAIR is designed to allocate a portion of fund 10 University administration and common services to recognize the support provided to the self-funded operations of the campus. (3/15)

Royalty income is exempt from TABOR reporting and is accounted for in fund 26 – Auxiliary-Other Exempt for most departments. Departments that have been designated a TABOR Enterprise will account for their royalty income in fund 20. Fund 29 is not exempt from TABOR and cannot be used to account for royalty revenue. (3/15)

This depends on the arrangement you make with Athletics or any other department putting on the event. 

First scenario: You can return any unsold tickets to Athletics. You are basically taking the tickets on consignment. Deposit all ticket sales into a fund 29 FOPPS as revenue. Upon settling up with Athletics, move the revenue from your fund 29 FOPPS to the Athletics FOPPS they designate and return any unsold tickets.

Second scenario: You are buying a block of tickets from Athletics and any unsold tickets you have to keep. When you buy the tickets from Athletics, you should record an expense in a fund 29 FOPPS and Athletics will record ticket revenue. You need to use the ID Revenue and Expense accounts for this interdepartmental transaction. All proceeds from your ticket sales should be deposited as revenue to your fund 29 FOPPS. (3/15)

All events with alcohol must be scheduled and approved. For complete information, consult the . (3/15)

No. The biggest issue with using prepaid calling cards is that there is no record of who was called and how much each call cost. So, there is no valid documentation to support this as official university business. (3/15)

Yes, a department can provide articles of clothing—shirts for example—to employees with department logos. If the clothing is considered acceptable for street wear, then you have two options.

• If you allow the people to keep the shirts and the shirts are collectively valued at over $75, the total value is tax reportable on their W2.
• If you require the people to turn in the shirts when they leave, then there is no tax consequence to the employee. But you have to have a system to track who has shirts and ensure they are turned in when they leave. This would be part of your employee check-out process. If they are not turned in, then you would do the W2 tax reporting.

This does not apply to uniforms where University of Colorado Fiscal Procedure 2-8 allows for uniforms at no charge, at a reduced charge, or through a uniform allowance. However, the type of clothing discussed in this Q&A does not qualify as a uniform. A uniform is not an article of clothing commonly worn as street clothes. For example, our police officers would not wear their uniforms to be out in public in general. If an article of clothing is such that the logo would be acceptable to wear the clothing in general—to the store, PTA, Buff’s game, etc.—then it is not a uniform. Also, uniforms are usually required to be worn. These articles of clothing frequently are not required, meaning if you show up to work without it you won’t be sent home to put it on. See the  uniforms and work clothes topic for additional information. (3/15)

All financial aid payments must be managed through the Office of Financial Aid (OFA). OFA needs to be aware of all financial aid payments to students in order to make sure that departmentally awarded financial aid does not impact or alter the financial aid package awarded by OFA. for instructions on how to process departmentally awarded financial aid. (3/15)

Several questions about staff appreciation meals appear below.

Q: What is a staff appreciation meal? (3/15)

A: The  says that a staff appreciation meal is an infrequent, unique, official function that is hosted and attended by the head of an organizational unit for the purpose of showing appreciation to a continuing or departing staff member, or a group of staff members. Staff appreciation meals must adhere to the following:

1. Other than the meal itself, a staff appreciation meal includes no additional recognition awards, rewards, or prizes. (If it does involve any of these, it is considered to be an employee recognition event, and is subject to the guidelines stated in Section B of this PPS.
2. Approval procedures set forth in the Official Functions PPS and
3. If alcoholic beverages are served, then the Alcoholic Beverages Purchased for University Events APS and related procedures must be followed. (3/15)

Q: Can family be invited? 

A: No, this is not allowable.

Q: We held a summer staff appreciation picnic. Can we have another staff appreciation event in December?

A: Remember that staff appreciation meals are infrequent, but that term is not defined in the policy, so other considerations come to the fore. Can the additional recognition be justified in the business purpose? Ultimately the fiscal principal must apply judgment and take into account the variety of factors that make an organizational unit successful in carrying out its mission. Care must be used so that employees are recognized for identifiable reasons and that this is perceived as infrequent both inside and outside the university. (3/15)

Q: Can a staff appreciation meal be held in place of a “holiday party”?

A: “Holiday parties” per se are not allowed by the University of Colorado in response to a November 2005 State audit that stated the university should develop written descriptions for expenses to ensure that they are necessary and reasonable for university business. However, staff appreciation meals timed to coincide with a university holiday is allowable, but it cannot be called anything related to a holiday such as “holiday meal,” “Thanksgiving party,” “4th of July Picnic,” etc. (3/15)

Q: Since “holiday” parties labeled as such are not allowed, can we organize an informal employee gathering, which may or may not be held around the holidays, and that involves no direct expenditure of University funds? The most obvious example is the proverbial holiday potluck lunch. If we remove the “holiday,” can we still have the potluck?

A: Yes, you can have the potluck and you can even keep the “holiday” part. This is not an official function, uses no University cash, and conducts no university business. It is an informal meal among staff. The use of university resources (email to announce, space to prepare and serve, etc.) is not material. People have to eat. (3/15)

This issue was considered by the Office of University Controller who released the following policy on October 4, 2007 that becomes effective January 1, 2008: 

Home internet service is not an allowable expense. Exceptions can be requested from the appropriate Vice President or Vice Chancellor for Finance for reimbursement that is temporary in nature due to changes in job requirements or personal status (e.g., access from remote location home while on sabbatical). This authority can be delegated to one person (per campus) via a written memo to the University Controller. 

The reason for this is twofold. First, it ensures consistency among the campuses. Second, it recognizes that the IRS views this type of expense as personal in nature and therefore, if paid by the employer, it becomes reportable income to the employee. (3/15)

Yes. New Employee Orientation is a “training function” and the provision of food during training functions is allowable per the . (3/15)

If you can answer “Yes” to all of the questions in the  then it would be considered allowable. However, these items appear to be more of a personal nature which requires the employee to provide for his or her own needs. If similar items were included in an emergency first aid kit purchased by the department, then that would be more appropriate. (3/15)

A ski trip is normally not an allowable recruitment expense. The  item Recruiting Costs for Prospective Employees/�鶹��Ժ states that recruitment activities must be directly related to the work position or field of study. Social activities outside of meals that do not highlight the academic program or the work position do not meet the test. There must be a clear and direct connection between the activity and the area of study/work. Anything outside of this is a personal expense and is not reimbursable by the University. However, exceptions may be authorized by the appropriate officer and should be obtained in advance of the expenditure. (3/15)

This is considered allowable in the . These visiting colleagues were associates of CU, the meeting was an infrequent occurrence, and the meeting involved participants from more than one entity, operating unit, or campus. In general, meals with only employees or associates for the purposes of discussing work are not allowed for official functions. Note that official function expenditures are usually unallowable costs to sponsored projects. (3/15)

The Administrative Policy Statement on  states: “University funds should not be used for a license or certification that does not benefit the University and is solely for the professional development or advancement of an employee. Benefit to the University is measured through the receipt of support or information, as a result of having the license or certification, which is necessary to accomplish or foster the educational, research, or public service mission of the University.” It further states:

1. “The license or certification is required for university employment. Note: “Required for university employment” means that the license or certification is indicated as a mandatory criterion for employment, not as a preferred criterion or an absent one.
2. There must be an equitable provision of the licenses or certifications throughout the organizational unit.
3. There is a reasonable expectation that the license or certification will be used solely for the purpose of providing services to the University, and not for providing services to others for a fee or other compensation. Organizational units should inform employees that if a license or certification paid for by university funds is used for anything other than university business, then the additional compensation generated by the license or the certification, or the value of the license or certification fee (whichever is less) must be reimbursed to the University.”

So, if a department can make the above representations relative to the notary license, then using university funds for its set-up and maintenance is allowable. The important point is that the notary license is used only for university business. (3/15)

Yes, this is permissible. The PSC Procedural Statement (PPS) on  addresses recognition awards for employees and non-employees, which includes students.

If you will only be giving token gifts valued at less than $100, and if recipients will not receive more than $100 worth of these gifts within a calendar year, then you do not need to establish a formal recognition program.

If the gift is valued at $100 or more, your department will need to establish a formal recognition program authorized by the organization fiscal principal. Most departments attach the documentation about the recognition program to the Recognition Reporting (RR) form. (3/15)

No. The  excludes non-work related activities and their related costs, such as sporting league registrations/fees and team uniforms.

The Tests of Propriety PPS applies to all purchases using University resources. The answer to all eight of the following questions must be “Yes” in regards to including spouses or significant others to a university event where food is provided. 

1. For official university business?
2. In the best interests of the university?
3. The most effective way to accomplish official university business? Meaning that, without the expenses, would programmatic objectives be difficult or otherwise more costly to achieve? Or would the impact, level, or quality of the achievement be reduced?
4. In compliance with applicable policies, laws, regulations, and rules; and contracts, grants, and donor restrictions including having the required approvals and authorizations by the appropriate fiscal role?
5. Within the available resources of the responsibility unit, taking into consideration all outstanding commitments and encumbrances?
6. Directly beneficial to the responsibility unit where it is being charged?
7. Reasonable? Meaning that the quantity and quality of goods or services being purchased is sufficient to meet the University’s identified need without exceeding it.
8. In compliance with university conflict of interest provisions? Meaning that, if an employee derives private gain, or appears to derive private gain, as a result of the transaction, then the transaction violates the conflict of interest provisions stated in Regent Law, Regent Policy, and in the Administrative Policy Statement, “Conflicts of Interest and Commitment.”

The Propriety of Expenses APS () says this about the Tests of Propriety and Immediate Family Members:

“Generally, it is the policy of the University not to pay for the attendance of an employee’s immediate family member(s) to attend an event, function, or activity. However, there are limited instances, such as external community relations or fundraising functions, where it is deemed necessary for an immediate family member(s) to attend an event for the purpose of promoting the University. The attendance of immediate family members at such events must be limited to those individuals necessary to represent the University.”

In addition, the  states: “Attendance at employee recognition events should be limited to those that are necessary to recognize the individual(s) receiving the award, reward, or prize. Limiting attendance will ensure expenditures are kept to a minimum. In certain circumstances, however, it may be appropriate for an immediate family member(s) to attend the recognition event. One such example would be a retirement function.” Another example would be at a staff appreciation meal timed to coincide with a University holiday.

The following are questions and the responses to those questions. The references cited are to the matrix found within the PSC . Eight sample scenarios, involving official functions attended by spouses or significant others, follow. The  also applies.

1. Dinner for a student recruitment function that includes two faculty members, a graduate student, and their spouses. Answer: Allowable as a student function for faculty members and students. Meals provided for spouses are allowable only when the above eight tests of propriety are met.

2. Dinner for recruiting faculty members involving the recruits, the recruits’ spouses, faculty members, and faculty members’ spouses. Spouses invited for fostering a sense of community. Answer: Allowable as a recruitment function for faculty members, the recruits, and the recruits’ spouses. Meals provided for spouses are allowable only when the above eight tests of propriety are met.

3. A department chair hosted a reception to include faculty members from the department, faculty members from other campuses, a guest speaker, and the chair’s spouse. Answer: Allowable as an official function for faculty members, the speaker, and the chair’s spouse.

4. Dinner for a large number of departmental members, a guest speaker, and a few employees’ spouses. Answer: Allowable for the employees and the speaker as an official function. Meals provided for spouses are allowable if the above eight tests of propriety are met. The event invitation should be limited to those employees/individuals necessary to and directly involved with the event functions.

5. Food for a faculty and a non-CU employee colleague to conduct research for a book at the faculty member’s home during a two-week project time. The faculty member’s spouse occasionally joined their meals. Answer: Not allowable as an official function for all attending. However, meals for a non-CU employee in travel status can be allowed by complying with applicable Procurement Service Center Travel PPS.

6. Food for a welcome-back picnic held at the beginning of the fall semester to which faculty, staff, students, and their families are invited. Answer: Everyone but the employee's family can attend.

7. Food for a staff appreciation event timed to celebrate a University-recognized holiday. Answer: No, this is not allowable.

8. Dinner for a fundraising function including a guest speaker, the speaker’s spouse, some donors, board members of a Center, board members’ spouses, some faculty members, and faculty members’ spouses. Answer: Allowable as an official function for the speaker, the speaker’s spouse, donors, the Center’s board members, and faculty members. Meals provided for faculty members’ spouses and the Center’s board members’ spouses who meet the definition of  are allowed.

In general, official function expenditures are treated as unallowable costs to sponsored research projects and internal service center (ISC) programs according to the OMB Circular A-21. (3/15)

The Propriety of Expenses APS, the Official Functions PPS and Sensitive Expenses PPS have generated a number of questions from the departments. The following are examples of the questions received by CCO and our response to those questions. We hope this provides additional guidance to the departments in making these expenditure decisions. The Sensitive Expenses PPS matrix provides the basis for the CCO response. (3/10)

1. Food for meetings of student societies (usually pizza or box lunches). Answer: Allowable as a student function related to student or educational development. Official Functions PPS applies.

2. Food for student society banquets, initiation dinners (usually three per year). Answer: Allowable as a student function. Official Functions PPS applies.

3. Student welcome barbeques, picnics, ice cream socials for new members. Answer: Allowable as a student function. 

4. Dinners off-campus with student faculty advisors. Answer: If students are attending then this is allowable as a student function. If this is only departmental employees discussing departmental business, then it is unallowable because this is considered a normal workday-type function that could be held during regular business hours.

5. An event with food to name a seminar room after a deceased individual as an honor.Answer: Allowable as a goodwill function. Official Functions PPS applies.

6. Food for a department retreat. Answer: Allowable as an Employee Training event if this is truly an infrequent planning retreat. If this is a regular departmental business planning meeting, then it is unallowable. Official Functions PPS and Recognition and Training PPS apply.

7. A department recruits student volunteers to help move stuff (furniture, equipment, etc.). The department will compensate the students by buying them lunch/dinner (pizza, sandwiches). Answer: Allowable as an honoraria if the students are agreeing to help out for free and you elect to honor them (honorarium) for their contribution with a meal. See Honoraria APS. If it is a negotiated agreement then you have pay for service through a barter arrangement. Barter arrangements should be documented in a contract and you should get Legal Services approval of the contract. These should also be booked as revenue and expense and may have to be reported to the IRS. It is best to avoid barter arrangements.

8. Lunch for faculty and non-faculty members that come together over the weekend (8 hours) to judge films. Answer: Allowable as an official function as long as film judging qualifies as official University business. Official Functions PPS applies.

9. A once-a-year party at the end of the school year, or a beginning of the year picnic rather than on an officially observed holiday. Answer: Allowable as an employee recognition function. Recognition and Training PPS applies.

10. An NSF grant includes workshop luncheons for Chairs across the campus and token gifts (pens and mugs). Token gifts are going to University employees. The grant doesn’t specifically provide for these items, but the PI could request backup from NSF agreeing that these expenses are reasonable. Answer: First of all, make sure that you have documented approval from NSF that these are allowable expenditures of the grant. Luncheon is allowable as a multi-unit unit event. Gifts or tokens for employees valued at less than $100 (individually or in aggregate per person per calendar year) are allowed. Gifts or tokens for non-employees are also allowed. Recognition and Training PPS applies.

11. External companies visit the department to do recruiting events for graduate students. The department orders the food through CU and pays for it out of their gift FOPPS. The external companies reimburse the department for the costs. The department deposits the check back into the gift FOPPS crediting the expense. Answer: The purchase of the food is allowed as a student function assuming this activity is allowed by the donor restrictions of the gift FOPPS. However, incurring an expense (food) to be reimbursed by an outside entity is a violation of our Revenue Definition and Recognition practice. Payments from outside organizations may only reduce our expenses under very limited circumstances and this is not one of them. The department should either stop this practice or deposit the payment from the outside companies to a fund 29 FOPPS and use that to pay for the food—essentially, providing this service to the outside companies for a fee. Please refer to Revenue Q&As. 

12. Lunch with new faculty across the campus to orient them to a specific program.Answer: Allowable as official function. 

13. Graduate students lunching with colloquium speakers (non-university employees).Answer: Allowable as a student function. 

14. Food at colloquium or seminars with outside speakers (non-university employees).Answer: Allowable as an official function.

15. Faculty having dinner with outside speakers. Answer: Allowable as an official function.

16. Award ceremonies for students. Answer: Allowable as an official function for student educational development.

17. Award ceremonies for employees. Answer: Allowable as an employee recognition event. 

18. Dinner honoring an employee (faculty) for outstanding contribution. Answer: Allowable as an employee recognition event. 

19. Dinner for employees attending a lengthy working meeting after hours. Answer: Generally not allowable because this should normally be considered and scheduled as a regular workday-type function, not an Official Function. However, other factors may apply and can be taken into consideration such as meetings that: 1) involve multi-units; 2) cannot be effectively scheduled or completed during normal business hours; 3) are non-routine and infrequent; 4) involve urgent university business. Consult your Area Accountant if you are not sure.

20. Food provided at a conference hosted by CU. Answer: Allowable as long as the food is covered by the conference registration fee.

21. A non-cash token for a non-employee to recognize unpaid volunteer work done for the department. Answer: Allowable as a token to a non-employee.

22. Bottled water service for the office. Unallowable as food and related consumable items for the employee’s personal consumption. However, this is allowable under. if it is a beverage service available in the general public area or reception area of a Department hosted by a University employee at or above the Chair or Director. (3/15)

Employees should be reminded that university provided cell phones are for University business only and not to be used for personal use. The  PPS governs the use of university-supplied cell phones. That policy states, “The University generally will not require reimbursement for an occasional personal call that does not result in incremental costs to the University provided the call enabled the individual to meet personal needs while achieving more efficient, effective conduct of university duties. The fiscal principal of the organizational unit is responsible for addressing patterns of personal calls that would create university exposure under tax law and other governmental regulations.”

If any employee has a frequent rate of personal use of a university-provided cell phone, the department should consider canceling the University provided phone. The employee can then provide a personal phone and get reimbursed for any University business. This would be similar to reimbursing an employee for mileage for driving his/her personal car on University business. (3/15)

 2-8, Miscellaneous Compensation and Other Benefits (Perquisites) says that uniforms required to be worn by University employees and the necessary maintenance of these uniforms may be provided to the employee by the University at no charge, or at a reduced charge, or through a uniform allowance. Therefore, departments may incur the direct cost of providing the uniform and its maintenance or it may pay a uniform allowance to the employee. The following information has been provided by PBS Tax Services.

Issue: 

For tax purposes, should certain “allowances” paid to campus police and security guards be considered as reimbursements of business expenses, or additional compensation?

Example Facts of Current Process:

The department has two allowances involved. Administrative personnel in the department have been operating under the assumption that these allowances should be treated as reimbursements to the recipients. These payments are currently being processed through Accounts Payable. 

First, there is an initial allowance paid to campus employees when they are hired, to enable them to buy the uniforms and equipment required for the job. It consists of two parts: the first part of it is $1,000, but it is in the form of a standing purchase order with specific vendors (i.e., it is not given in cash). The recipient of the allowance can use the money only to buy specified gear from the specified vendor. The recipient cannot use any amount not spent as specified. The second part of the initial allowance is a flat cash amount, (equal to two quarterly allowances, explained below). The cash amount of the initial allowance is given to the recipients to help offset the considerable additional costs they will incur in getting themselves established as Boulder employees. The individuals are not required to substantiate their expenditures. They are, however, required to return at least some portion of these cash initial allowances if they do not work for the University for a certain period of time.

Second, a quarterly allowance is paid to the employees every quarter. The quarterly allowances are a flat dollar amount. The expectation is that the quarterly allowance will be used for cleaning, repairs, replacement etc. to the individual’s required service uniforms and equipment. The recipients of the quarterly allowances are not required to do any sort of substantiation of these expenses. There is no requirement to return excess amounts (if any) not spent for cleaning, repairs, replacement, etc. to the individual’s required service uniforms and equipment.

Analysis and Discussion:

Compensation for services is considered as gross income to the recipient (Internal Revenue Code section 61) unless specifically excluded pursuant to federal tax law. It follows that payments by an employer to an employee for services are considered as gross income to the employee. Normally those kinds of payments also meet the tax definition of “wages,” pursuant to Internal Revenue Code (“IRC”) section 3401, unless a specific exception applies. 

An exclusion from gross income, described in IRC 62, is provided for “certain trade or business deductions of employees.” Under certain circumstances, an exclusion is provided for employer reimbursements of ordinary and necessary business expenses that are paid by an employee who is working for that employer. In order for these payments to qualify for exclusion, the expenses must first meet the tax definition of trade or business expenses, (found in IRC section 162). IRC section 62 and the regulations thereunder state that in order for employee business expense reimbursements to be excludable, the expenses must: (1) have a business connection, (2) be properly substantiated, and (3) employees must be required to return any amounts in excess of expenses. Business expenses reimbursed according to these rules are said to be made under an “accountable plan.” Other business expense reimbursement arrangements are called “non-accountable plans.” 

Employee business expense reimbursements paid under non-accountable plans do not qualify for exclusion from gross income, and are subject to payroll taxes and withholding. The regulations under IRC section 62 state that expenses attributable to amounts included in gross income under non-accountable plans may be deducted by the employee as a miscellaneous itemized deduction on his or her tax return, provided the employee can properly substantiate those expenses.

When we think about the tax rules for properly substantiating business expenses according to the accountable plan rules, in most cases we think about employees submitting receipts for the expenses. However, there are some exceptions to the requirement for receipts. One good example of such an exception is the use of “per diem” amounts in place of receipts for employee’s meals during times the employee is traveling on business for the employer.

Certain fringe benefits are excludable from gross income pursuant to IRC section 132. One of those fringe benefits is the “working condition fringe benefit” defined in IRC section 132(d) as “any property or services provided to an employee of the employer to the extent that, if the employee paid for such property or services, such payment would be allowable as a deduction under section 162…”

To qualify for exclusion as a working condition fringe benefit, the regulations under IRC section 132 state that the employee must meet three requirements. The employee must be required to (1) use the payment for expenses in connection with a specific or pre-arranged activity which would qualify as an ordinary and necessary trade or business expense, (2) verify that the payment was actually used for such expenses, and (3) return to the employer any portion of the payment that is not used as prescribed.

Conclusion:

The initial allowance amount of $1,000 that is not paid in cash would be considered as a working condition fringe benefit. The second part of the initial allowance, consisting of a cash amount equal to two quarterly allowances, would probably also be considered as a working condition fringe benefit. The employee will incur substantial uniform and equipment costs when he or she is first employed, which might fulfill the verification requirement. There is a requirement that the allowance be returned if the individual does not work for a certain period of time, which might be enough to satisfy the requirement that any excess be returned to the employer. In order to make sure that this initial cash allowance qualifies for exclusion as a working condition fringe benefit, there should be a written policy that: states how the money should be used, requires employees to verify the payment is actually used for such expenses, and requires employees to return any excess amounts to the employer.

The on-going quarterly allowance paid to the employees every quarter does not qualify for exclusion. Although the expectation is that the quarterly allowance will be used for cleaning, repairs, replacement etc. to the individual’s required service uniforms and equipment, there is no requirement that the money be used for that purpose. Additionally, the employees are not required to verify or substantiate how the money is used, and there is no requirement to return excess amounts.

If an allowance qualifies as a working condition fringe benefit, the allowance is excludable from the employee’s wages. If an allowance is not considered as paid under an accountable plan, or does not qualify as a working condition fringe benefit, the payment is considered wages to the employee. The payment should be made through the PeopleSoft HR system, and an earnings code of “ALW” should be used. Using that earnings code will make the payment subject to the appropriate payroll taxes and withholding, but the payment will not be considered as compensation for the employee’s retirement plan (PERA or the Optional Retirement Plan, as applicable).

Therefore, to ensure compliance with the letter of the regulations, if a cash allowance is provided to the employees without being based on documentation of actual expenses incurred, this should be paid through the PeopleSoft HR system as described above. If a reimbursement is paid to the employees based on documentation of actual expenses incurred, this should be paid through Accounts Payable using regular PSC reimbursement processes. (3/15)

Most likey, no. Most virtual meetings do not qualify as official functions. Providing gift cards, food vouchers, or delivering food via Grubhub (or similar) to virtual event attendees is not allowed in most cases. Contact fiscalcompliance@colorado.edu for more information.

Yes.

For retiring employees, a greeting card is considered as part of the retirement gift they receive from their department. For employees who are simply leaving the unit or the university, i.e. moving to another state, a greeting card is not allowable with university funds. This is a “pass-the-hat” situation.

New! Boulder inquired about this and Advancement OK’d it. You can now purchase with either Fund 36 or with Fund 34 that’s allowable for entertainment, donor cultivation, or personnel recruitment. In other words, Advancement says it’s OK to use Fund 34 with Gift Attribute Y as well as to use Fund 36. 

Gift cards are cash-like items and fall under the and the . Gift cards can be used as a form of employee appreciation. If you are purchasing more than one or two gift cards you will need an approved gift card program. The department must also have an approved employee recognition program in place prior to giving gift cards as employee appreciation. The four recognition categories are: length of service, merit, safety or participation. It is acceptable to use a Fund 10 or a gift fund.

No, this is a recruitment function. As per the , recruiting costs for prospective employees or students are allowable. Activities must be directly related to work position/field of study/reason for recruitment (exceptions may be authorized by the appropriate officer). For student-athletes, athletic policies also apply. Reimbursements for family member(s) of the recruit must be approved by the appropriate officer.

As per the , section G.1: Employee training must provide a benefit to the university and cannot be solely for the personal, professional development or advancement of the employee. In other words, the training must result in the enhancement or advancement of the employee in relation to her or his university job performance and career.

As per the CU Boulder Events Planning and Catering department FAQ’s, food and non-alcoholic beverages must be served at any event with alcohol.

The amount of the over-tip may need to be reimbursed to CU. The employee will be notified if this is the case.

Staff appreciation meals are described in the , section E.

For people who could be either students or employees, you evaluate the circumstance in relation to the role they are fulfilling. If you have students that graduate and want to take them out to lunch to celebrate their graduation, that isn’t employee appreciation because they weren’t acting as employees but as students. If there is mandatory training for everyone in the department, including TAs, you wouldn’t call that a student function because they are acting as employees.

Often, an end-of-semester meal is held for the purposes to go over what went well and what needs to be improved or vice versa at the beginning of the semester to go over what is expected for the semester (usually for labs). Would these meals be considered an appreciation meal since they’re not really training? Or is it not allowable at all?

These are not appreciation meals because they don’t fit the description. “A staff appreciation meal is an infrequent, unique, official function that is hosted and attended by the head of an organizational unit for the purpose of showing appreciation to a continuing or departing staff member or a group of staff members.” These are allowable as single-unit meetings if the appropriate vice chancellor has given approval.

Travel FAQs 

Yes, but they are the same limitations that apply to all funds. You have to be traveling on approved university business and you have to follow . These policies apply equally to general funds, auxiliary funds, sponsored projects funds, and gifts funds. Sponsored project funds may have other restrictions imposed by the sponsor and require OCG approval.

Strictly speaking, no. The travel card should be used by employees who travel on official university business out-of-state more than once a year. Given your limited anticipated travel, this can apply to you. However, there are numerous benefits to using the card as spelled out in the Travel Card Handbook and its use is strongly encouraged by the PSC Travel Office. It may still be in your (and the university’s) best interests to apply for the travel card. (3/15)

The sets the minimum advance at $500.

All travel advances are accounted for under a Procurement Services Center (PSC) FOPPS and you will not see it reflected in the departmental FOPPS. This facilitates the PSC's ability to keep all the advances reconciled for those issued, cleared, partially cleared, and outstanding. Departments should maintain internal records of all advances issued to faculty and staff and whether or not they have been cleared. (3/15)

The original policy and procedures were created specifically to control how University departments reported – and were reimbursed for – the costs of University activities when the University of Colorado Foundation (CUF) development staff had agreed to share in those costs. (Direct payment from CUF in such cases was prohibited as it circumvented university purchasing policies and fiscal rules.) However, during Fiscal Year 2014, the CUF development staff became university employees. Accordingly:

Development funds are now firmly established as university funds (Fund 36) and therefore subject to University policies, procedures, and rules.

Development and non-development departments can now share costs without needing to complete additional paperwork/procedures.

Review and approval can be conducted as for other university funds and the university’s financial reporting system can assist in this process.

Finally, the change in procedures eliminates unnecessary paperwork and allows the individual campuses to focus on activities and events of greatest importance to their unique needs.

Account code 552666, Foundation Requested Services, must be used in a Fund 10, 20, 26, or 29. Further, the reimbursement from the foundation must be deposited to the SpeedType where the expense was posted using account code 325111, Foundation Service Revenue, which falls under the miscellaneous income revenue classification on the account tree. However, the Boulder campus controller has determined that miscellaneous income shall not be deposited to a Fund 10. Therefore, that leaves Fund 20, 26, or 29 available for your use. And you may be gratified to hear that account 552666 is exempt from GAIR. (3/15)

You can only make guest arrangements if you are under your own profile. You cannot book for a guest if you are delegating on behalf of another employee. 

Yes that is correct.

The approval process happens prior to booking tickets to actual travel.

Once the SpeedType approver approves the funding source and they click approve; it will flip back to that employees ORG and it won't follow the SpeedType approval.

Once the SpeedType approver approves the funding source and they click approve; it will flip back to that employees ORG and it won't follow the SpeedType approval.

Those need to be looked up.  Follow the approval process within Concur Request, once the HR Manager/Speedtype approval is complete, you should see the appropriate officer within the approval workflow.  

You can send the request to psc@cu.edu.  They can take a look at that. You can talk to that group and they will help you work with who you need to contact.  Typically if there is an update that needs to happen within Concur you have to check your HCM setiing for that individual.

This option is available within the itinerary.  There is a link at top right of page that says change.  See this video for more information:

Its up to the agent in how they want to obtain prior approval.  They may not require that if they work with the department on a frequent basis.  At least for international travel there should be the question if the trip is for a nonemployee traveler.

For any  non employee travel (domestic and international); charge is sent to the employee who contacts Christopherson Business Travel.  CBT will ask for contact information including your email address and employee id to associate you with that non employee trip.  We are still collecting SpeedType numbers and  there are cases where it does not attach to the employee by the employee id number correctly so it may mismatch to someone else, or it may match to the employee who has the same name as the person traveling.  In those cases we are using those SpeedTypes to help make those connections to assign the airfare to the appropriate employee.

Contact Travel at PSCtravel@cu.edu with the traveler information and the employee name and ID that you would like the expenses assigned to.

Yes it does include international travel.  You can make changes to the travel dates prior to the trip.  If you are making changes prior to booking trip make sure that is included within an email string that you are sending to CBT when you are booking the trip .

Yes.  You should have a response for any request withing 24-48 hours.  As we are returning to travel, PSC Travel meets with CBT on a weekly basis.  There are some agent shortages so that has affected response time. But that is improving and should get back to regular response time.

When you create an expense report it should be asking you if you want to attach the cash adavance to that report if not you need to go in and select cash advance to be part of that expense report.  Fore more information visit: 

No.  For further information visit: 

It depends on your department.  There are some deparments that require pre approval to be attached to the expense report.  That would be a dpt. requirement.  On the Travel dpt. end there is nothing that has to be done after the trip is completed.  Once you receive pre approval that is all we need.

If the student travel is arranged through Christopherson or Concur than that should be assigned to the employee that made the travel arrangements.  If you are not seeing that please reach out to psctrave@cu.edu

No.  All travel should be reconciled once the trip is concluded. Concur is designed to provide reminders of aging transactions. To prevent you from receiving those notices you can move those transactions into an expense report and in that report put the future travel date in the name and title of report.  You do not need to reconcile these until after the travel is concluded.

Since it is through our card program, it only shows the basic information.  You would have to look at the full itinerary in travellers library, or ask the psc@cu.edu.  It will tell you the route but not the full itinerary.

As a travel arranger you should be able to go into the travelers dashboard and look up unused credits.  Travel can also run you an unused ticket report that will show you everybody that they have.  

To determine the value of your department’s canceled (unused) and refunded tickets – in other words, to determine the potential value toward future airfare purchases – you can request an Airline Ticket Report by emailing psctravel@cu.edu.

In your email, the Subject line should read “Ticket Report Request: (ORG number)”

If you need a report of multiple ORGs, please include the ORG list within the body of the email. Note: Reports cannot be pulled by the ORG Node, individual ORGs are required.

Typically one year from the booking. However, if it was pandemic related the airlines did push the expiration date out.  Varies by airline.

Typically the cancellations occur within the airline.  If they are traveling with the airlines app, that is the best way to see changes.  Tripit pro can also give you realtime changes to itinerary and cancellations.

Yes, if its an emergency the individual should be preregisterd by International SOS who facilitates risk mitigation abroad.  Must have trip registered and app on phone.  

Typically refundable tickets are not an approved expense.  However, we are seeing dpts. that want to get a ticket with more of a buffer on it.  It is considered an upgrade to airfare.   If you cancel airfare to a destination, regardless where you are going,  CU still secures those funds. so when you are purchasing a refundable ticket you are paying more money for funds that we are still being able to obtain if you have to cancel the event.  Second part; If you are using federal funds for a purchase; Funding requirements vary by the grant/funding source be sure to look at the funding requirements to see if it's allowable.

It is $20 per booking.  If you have someone that wants to fly with two separate airlines that would be separate charges.  Any time that record has to be changed by an agent, it will incur an agency fee.

If an agent has to make the change.  If they have to go in and change the record there is a charge.  

For anybody that is working hybrid, you still need to deduct commute for any travel-related mileage that occurs Monday - Friday. 

Yes.  For further information, please consult: 

If it’s a group of students that are nonemployees there can be one employee who can function as the group lead who is using their travel card for all expenses.  If it’s a group of individuals travelling together…each individual employee is responsible for their own expenses…only exception is that if you are travelling to a place that will not split receipts.  For more information please visit: 

No not for airfare.  You can use if for lodging and ground transportation.  For more information: 

Yes.  It has to be for your own registration.

If they are non employee travellers, then that is acceptable under group travel.  For more information: 

Yes if you are in travel status.  If you are going to a meeting then yes.  Not accepted if you are just driving from one part of campus to another and you want to pay for parking. 

That is currently being reviewed.  This is more of a risk management question.  Its really on the onus on the traveller if they still want to take the trip.  The onus is also on the traveler for isolation costs associated with this trip.  Treated much like any other illness now that we are reaching the endemic phase. This is under review and will have more to come on this. (July 2022)

Yes.  The covid test is treated like vaccanations.  It is covered, but if you go to the doctor for the test the copay is not covered.

Right now internet airfare is being finalized to how that will look like into the future.  Guidance should be coming this summer (July 2022)

Consult here for the latest information: 

Yes and No.  You can ask for it.  Whether or not the hotel will allow you to use your documentation for that government rate is up to the discretion of the hotel.