CLEMSON UNIVERSITYFOUNDATION

Disbursement Guidelines

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TABLE OF CONTENTS

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The Clemson University Foundation, chartered in 1933, is an independent, not-for-profit 501(c)(3) organization that promotes the welfare and future development of Clemson University.

MISSIONThe mission of the Clemson University Foundation is to support Clemson University by promoting growth and stewardship of resources entrusted to us which fulfill our covenants with donors.

VISIONThe vision of the Clemson University Foundation will be long-term, stable, and a significant provider of resources in supporting Clemson University's goals.

VALUESIn all we do, the Clemson University Foundation will conduct itself with the strictest adherence to the following core values: Integrity, Transparency, Accountability, and Donor Focus

The Foundation is committed to lawful and ethical behavior in all of its activities and requires that its directors, employees, and consultants conduct themselves in a manner that complies with all applicable laws and policies.

The Foundation has a fiduciary responsibility to protect its resources and to ensure that expenditures comply with donor-imposed restrictions, do not jeopardize the financial status of the Foundation, and are prudent uses of the resources of the Foundation. Any spending policy or procedure not specifically addressed herein shall follow the spending policy of the University.

The Foundation operates primarily on a reimbursement basis after expenses have been incurred. However, the Foundation may pay a vendor directly and must do so when the payment would be taxable to the payee. All requests shall be properly completed and signed before payment is considered. Requests for employee reimbursement should be made in a timely manner, not to exceed 90 days from the date of the expense. Any invoice/reimbursement request past the 90 days will need documentation for the lateness of the payment and approved by the areas supervisor or department chair. Vendor invoices for goods and services received through the current fiscal year must be charged to that fiscal year and approved prior to the fiscal year end closing schedule set by Procurement.

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Original statements, invoices, and receipts are required for reimbursement. Handwritten receipts/invoices must contain the vendor’s name, address, and signature. E-mail, scanned and faxed copies (with a fax bar containing the business name or fax number as it appears on the invoice) of statements and/or invoices are acceptable.

PROCESSING TIME Check Requests will be processed in 1-2 weeks.* Please note that requests requiring additional approval may take longer to process.

*Holidays or technical difficulties may alter this schedule.

CAUTION Expenses that may be reasonable and necessary business expenses per this Policy may be unallowable for Federal, state or other private reimbursement, either directly or indirectly. Individuals incurring expenses or requesting reimbursement from agency or other private funds should consult guidelines and/or the relevant contracts to ensure that all procedures and restrictions are followed. Any questions about the interpretation of state or private procedures or restrictions should be directed to the designated departmental finance representative and/or the Procurement Office.

GENERAL POLICIES 1. Awards

a. Cash awards paid directly to employees from the Foundation are prohibited unless specified as an endowed award from the University.

i. Example: Awards such as cash or gift cards should not be given to an employee for reaching their goal quota for the month or year.

2. Coffee/Water Services a. At the discretion of the fund administrator, Foundation funds

may be used for coffee services provided the services are reasonable. It is appropriate to have coffee available for University guests and departmental meetings.

b. Foundation funds are not be to be spent for bottled water or rental of water jugs, [with the exception of bottled water purchased specifically for visitors of the University, such as the case of the President’s Office and Visitors Center.]

3. Flowers a. Flowers for employee recognition (i.e., birthday, promotion, new

hires, goodwill) are prohibited with Foundation funds.

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b. The reimbursement levels for flowers, or food baskets in lieu of flowers, are as follows:

i. Hospitalizations and Funerals (Employees) 1. The Foundation will reimburse up to $90.00,

including tax and delivery, for flowers sent to employees of the University and their immediate family members for hospitalizations and funerals. Immediate family is defined as the parent, spouse, parent of spouse, child, spouse of child, brother, spouse of brother, sister, spouse of sister, grandparent, great-grandparent, grandchild, great-grandchild, or legal guardian of either the employee or employee’s spouse.

ii. Donor Recognition/Appreciation/Hospitalization and Funerals

1. The Foundation will reimburse up to $90.00, including tax and delivery, for flowers sent to a donor.

iii. Event Flowers 1. Flowers for events such as banquets, ceremonies,

and graduation may exceed $90.00, but must still be reasonable in cost for the event.

4. Athletic Events a. For those events that attendance is necessary for donor

cultivation, it is the policy of the Clemson University Foundation to reimburse staff members at the time the ticket is purchased, if requested.

b. The information noted below must be submitted in writing immediately following the event.

Date/Name of Event Name of person using each ticket Names of those persons hosted and their relationship

to Clemson/business association Business purpose for activity

c. This information submitted should then be attached to the original voucher submitted for reimbursement.

d. If for any reason the ticket purchased is not used for a business purpose, reimbursement must be made to the Clemson University Foundation for the face amount of the ticket immediately.

i. When a donor cancels or is unable to attend an athletic event, faculty and/or staff have the option of purchasing the unused ticket at face value. However, the department

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must maintain records of who purchased the tickets and which donor was unable to attend.

e. Use of tickets by CU employees is prohibited except when the employee is accompanying a prospective donor or invited University guest. A spouse or significant other may accompany the CU employee if the spouse of a prospective donor or University guest also attends. Use of tickets by children or friends of CU employees is strictly prohibited.

5. Gifts a. Gifts – Donors

i. The presentation of non-cash gifts for business purposes to individuals who are not employees of the University or to organizations on behalf of the University is an acceptable practice. Foundation funds may be used for the purchase of non-cash gifts of moderate expense to be given to non-University employees, typically donors or potential donors.

ii. All gifts are limited to $25.00 (tax included) as per IRS regulations, except as noted below

1. A gift to a donor in direct response to a donation made to the University is limited to the lesser of $104.00 (indexed annually by the IRS) or 2% of the gift. IRS policy dictates that a gift to an individual’s spouse is considered an indirect gift to the individual and therefore is not counted separately when applying these limits.

iii. Gift Cards1. Retail only, not redeemable for cash, (example: M.H.

Frank gift card) gift cards are not considered cash and are therefore permissible within the same guidelines as any other non‐cash gift. (VISA and MasterCard bank cards are not permitted.)

b. Gifts − Employees i. Foundation funds will not be used for gifts/flowers/gift

cards to CU employees (including students and volunteers) for events of a personal nature, such as birthdays, new hires, promotion, graduation, separation, goodwill or holiday celebrations.

1. Examples of holiday celebrations are but not limited to Administrative Professionals Day, Employee Appreciation Day, Boss’s Day and Christmas.

c. Gifts – Retirement i. An employee must be in active service on his/her

anniversary date to receive the length-of-service gift. The following length of service/retirement guidelines have

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been developed according to IRS regulations. Gifts which adhere to the following parameters and are given to eligible employees are not subject to taxes:

1. Timing - Gifts may not be made within the employee's first five years of service or more frequently than every five years. Gifts given more often than these requirements will be taxable in full.

2. Dollar limit - The value or cost of the gift should not exceed $250. It is also recommended that the value or cost of the gift commensurate with the number of years of service being recognized (e.g. the 15 year service gift is greater than the 10 year service gift).

3. Form of Gifts - In order to avoid taxable income, the gift must be in the form of tangible personal property. The IRS does not consider gift certificates to be tangible personal property, and accordingly, they are subject to tax. If the gift is in the form of cash, check, gift card or gift certificate, the value of such item is treated as additional wages and taxable regardless of the amount.

4. Meaningful Presentation - The gift must be presented as part of a special event or celebration that marks the occasion, such as a departmental meeting, party or luncheon/dinner.

5. Conditions and circumstances - The gift must be under conditions and circumstances that do not create a significant likelihood of disguised compensation.

Years of Service

Retirement Gift AmountLimits

1-5 years $ 50.006-10 years $ 100.00

11-15 years $ 150.0016-20 years $ 200.0020+ years $ 250.00

6. Retirements a. Retirement functions, and/or departure from the University

functions for individuals with significant years of service (i.e. 10 years), do not count towards the limit on parties/receptions to promote faculty/staff social interaction and morale. However, they have their own limit of one event per semester, per college (limit of two retirement functions per fiscal year). Multiple staff

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retirements may be combined to one reception. Exceptions to the number of events per semester will only be considered for retiring Deans and Executive Administrators.

b. Note: The Foundation will not pay for individual departure meals.

i. The term “departure” refers to when an individual leaves Clemson University to take a job somewhere else, not to be confused with retirement.

7. Interview (Candidate) Expenses a. Meals

ii. Foundation funds can be used for reimbursement of meal costs provided they are reasonable and appropriate to time and place of the meal. All meals and refreshments should be modest in value and should not take precedence over the educational or business event. Business meals with non-University individuals should have a ratio of no more than four University employees to one non-University individual.

iii. Requests for reimbursement of meals/business cultivation expenses must include the time, date, and location of the event, the business purpose of the event, and the name and title (or other designation sufficient to establish the business relationship) of the attendee(s).

b. Candidate Travel i. Actual travel expenses with appropriate receipts for both

the candidate and spouse can be paid for with Foundation funds.

ii. The Foundation can reimburse a candidate for University employment for interview-related expenses. The reimbursement can include the cost of accompanying immediate family members (spouse and/or children). Reimbursement cannot exceed actual expenses incurred.

iii. These payments are generally not taxable.iv. Examples of interview expenses: Airfare, hotel (limit to 1

room), car rental, mileage, food, etc.8. Relocation/Moving Expenses

a. Relocation expenses of new employees are eligible for reimbursement if included in the terms of the initial employment as documented by the employment budget document with approvals from their supervisor and the Division’s Budget Officer.

b. Reimbursements of relocation expenses are reported to University payroll. These payments may be taxable as income depending on the type of expense that is reimbursed. The two

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types of moving expenses as defined by the IRS are deductible or nondeductible.

c. Deductible Moving Expense i. The IRS defines deductible moving expenses as the

reasonable expenses of moving household goods and personal effects (including in-transit storage expenses not to exceed 30 days) and travel expenses to the new home (including lodging and mileage but not meals).

ii. Reimbursements of deductible moving expenses are not included as taxable income on the employee’s W-2 Form.

d. Nondeductible Moving Expense i. Nondeductible expenses include, but are not limited to:

meals, security deposits, pre-move house hunting expenses, and temporary living expenses Reimbursements of nondeductible moving expenses are reported as taxable income on the employee’s W-2 Form.

9. Staff Functions – Holiday Parties, Luncheons, Staff Receptions, [Retirement]

a. Foundation funds may be used for employee appreciation and/or recognition events. Events are limited to no more than 2 per year [per area] and costs should be reasonable and appropriate. Supporting documentation should include the approximate number of attendees.

10. Meals (Employee) a. Providing meals or refreshments for gatherings of University

employees on a recurring basis is not considered an appropriate use of Foundation funds (i.e. unscheduled daily, weekly or monthly work related meals). Business meals between employees should be infrequent and planned, formal business discussion must be the primary purpose for the gathering (i.e., annual, strategic planning session). [“Working lunches” between employees are discouraged.]

i. Working documentation of what was discussed during the meal must be submitted for reimbursement.

b. Food purchases for employee recognition (i.e. birthday, promotion, goodwill, etc.) will not be reimbursed.

11. Activities and Entertainment a. The Foundation will not pay or reimburse for activities for which

the purpose is strictly to entertain. Examples of such would be ceramics/art/painting, athletic or other venue admission tickets, hiring of contracted entertainers, etc.

b. Entertainment expenses which are appropriate for donor cultivation or student events, such as music performances, may be reimbursed.

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12. Travel Guidelines a. Employee travel expenditures must be paid by the traveler from

personal funds and reimbursed using a Travel Voucher upon return. Travel vouchers are the documents used to account for reimbursable faculty and staff travel costs. Travelers are expected to exercise discretion when making travel arrangements and expenditures. As an agent of State and Federal funds and private grant funds, each employee should use the following guidance when traveling:

i. Avoid excess costs, circuitous routes, delays or luxury accommodations unnecessary or unjustified in the performance of an assignment.

ii. Travel by commercial airlines must be in coach or economy class.

iii. Automobile transportation may be used when air and ground transportation cannot be arranged satisfactorily, or to reduce expenses when two or more University employees are traveling together.

iv. Transportation to or from points of arrival and departure should be by the most economical method.

13. Alcohol − (Business Meals) a. Alcohol is an allowable CUF expense but during a business meal

employees should consume alcohol responsibly at any such event and consumption of alcohol must not interfere with the performance of duties and responsibilities related to employment.

b. If serving alcohol on campus for an event within a Clemson University owned, rented or leased property (that does not have an alcohol permit) the Facility Use Policy must be followed and forms completed.

i. https://www.clemson.edu/administration/student- affairs/cae/documents/facility-use-policy.pdf

14. Gratuity − Business Meals a. Gratuity for a business meal should never be more than 20% of

the cost of the meal. Any excess over 20% will not be reimbursed to the employee.

15. Meals − Employee Travel a. Over-night Travel

i. In addition to the allowable CU reimbursement, CUF funds can incrementally be used to cover meal and incidental expenses for out-of-state and in-state travel.

b. Non-Overnight Travel Meals i. If an employee on non-overnight travel receives

reimbursements for meals, this amount could be considered income and be reported on their W-2 tax form.

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For instance, meals on day trips are subject to tax withholding except when a business purpose for the meal can be documented. If you are claiming reimbursement for such business meals, documentation should include the name and affiliation of the person sharing the meal and the general nature of the business discussed. Use the Travel Log Form for non-overnight meal reimbursements.

ii. An employee must be in travel status as defined by State regulations (more than 10 miles from their official headquarters) to be eligible for reimbursement of meals. Meals reimbursed while in travel status should not be confused with business meal reimbursements.

16. Spouse Expenses a. Travel expenses – Foundation funds may be used to pay travel

expenses for an employee’s spouse in the following instances:i. The President’s Office has designated an individual to

attend a particular event or official function as the representative of the University.

ii. Vice-Presidents or their designees have been asked to represent the President.

iii. Documentation supporting the reimbursement should include prior, written authorization of the President or VP.

iv. Rule of thumb for spousal reimbursements- “Could the event or function still continue with their absence?” and in most cases the answer would be yes.

b. Meals – Meal expenses for the spouse of a University employee may be reimbursed only if the spouse attends the official function or event.

17. Mileage Reimbursement a. Rental Cars

i. Charges for automobile rental are allowed when it is more economical than alternative methods of transportation or is the only practical means of transportation. While traveling on University business originating from South Carolina, employees are required to use the University contract vendor for vehicle rentals unless the contract vendor is not available at the location where the employee desires to rent a vehicle. Documentation stating that neither of the contract vendors was available should be attached as supporting documentation to justify the use of another vendor.

ii. Employees always have the option of using a rental car over his/her personal vehicle. However, a rental car should be used any time the cost of doing so is less than the cost of the corresponding mileage reimbursement in

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their personal vehicle. Failure to do so will result in a maximum reimbursement of the cost that would have been incurred, had the employee used a rental car.

1. Exceptions to this are day trips within the state of South Carolina and must be approved in advance from the employees’ supervisor.

b. Airport parking and mileage expense for privately owned cars/vehicles is permitted if the cost is less than taxi fare to and from the airport from home or work place, whichever is applicable, and reimbursable without a receipt if $50 or less.

c. The Clemson University Foundation will not reimburse employees for the following expenses:

i. Parking tickets ii. Traffic violations and court costs

iii. Vehicle towing charges iv. Vehicle repair costs regardless of whether it results from

the traveler's actions or the actions of othersd. This link provides a Mileage Calculator, Online Reservation

Help, Enterprise FAQ, and our Direct Billing Program: http://www.clemson.edu/finance/procurement/buy/CarRental.html

18. Memorials Charitable Contributions a. In general, a 501 (c) 3 organization cannot make contributions

to other charities. A contribution, made as a memorial gift, may be sent on behalf of employees of the University and their immediate family members. The memorial amount is limited to $50.

19. Sponsorships a. A sponsorship for an event external to the University may be

paid from Foundation funds if it is related to the employee’s official University responsibilities. The representative/employee is permitted to bring a spouse or guest.

b. Sponsorships for major events and that support “One Clemson” should be determined at the Administrative Council level. The use of Foundation funds to sponsor an internal/Clemson University sponsored program is not permitted, even if there are no benefits provided. This is considered to be “re-directing” funds from one purpose to another and therefore, is not permissible. (i.e., Dept. X cannot sponsor a hole for a golf tournament put on by Dept. Y)

i. Note: Departments or areas can collaborate and share costs paid from multiple CUF accounts but no transfer of funds is permissible.

20. Uniforms

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a. Clothing with a University related logo (such as Department Name or CU project/initiative) may be purchased with Foundation funds if the clothing is directly related to the employees’ official job function as representatives at various University events, either internal or external. (i.e., employees of HR for employee orientation, benefits fair events)

21. Inappropriate Expenses a. Foundation Funds may not be used for:

Fines – Moving or non-moving violations; First Class Business Class Airfare; Airfare upgrades such as but not limited to choice seating,

priority boarding, club pass, direct ticketing and baggage liability insurance;

Late Fees, Finance Charges; Parking Decals for CU employees; Contributions to political parties or to other political

activities, and contributions and/or subscriptions for publications or other materials designed to promote political appointments or similar objectives are prohibited;

Personal grooming services, such as barbers, hairdressers, toiletries, and shoe shines;

Child care costs, babysitting, and house-sitting costs;

Pet care, including fees for boarding pets and other animal care;

Any personal clothing and accessories (Does not include CU Branded Uniforms);

Prescriptions, over-the-counter medication, and other medical expenses;

Personal reading material, such as non-scholarly magazines, books and newspapers;

Personal recreation or entertainment such as greens fees, sightseeing fares, theater tickets, entry fees, lift tickets, etc.;

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Credit card delinquency fees and finance charges;

Dues in private clubs;

Gym and recreational fees, including massages, manicures/pedicures and saunas;

Amenities such as movies, in-room bars, saunas, massages, etc.;

Personal insurance costs such as life insurance, business travel accident insurance, personal automobile insurance and baggage insurance;

Lost baggage;

Loss or theft of travel advance money, airline upgrades, personal funds and other personal property.

Mileage Reimbursement vs. Car Rental Policy

PURPOSE:The purpose of this document is to define the methodology for renting vehicles for official Clemson University Foundation business.

DEFINITIONS:A personal vehicle can be defined as a vehicle that is owned by a University employee. A rental vehicle can be defined as a vehicle rented from a car rental agency under a State of South Carolina contract.

PROCEDURE:It is always in the traveler’s best interest to use one of Clemson University’s preferred vehicle rental agreements, with Enterprise, when traveling on University business.

Employees always have the option of using a rental car over his/her personal vehicle. However, a rental car must be used any time the cost of

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Appendix A

doing so is less than the cost of the corresponding mileage reimbursement in their personal vehicle. Failure to do so will result in a maximum reimbursement of the cost that would have been incurred, had the employee used a rental car. Exceptions to this are day trips within the state of South Carolina and must be approved in advance from the employees’ supervisor.

The Clemson University Foundation will not reimburse employees for the following expenses:

Parking tickets Traffic violations and court costs Vehicle towing charges Vehicle repair costs regardless of whether it results from the

traveler's actions or the actions of others This link provides a Mileage Calculator, Online Reservation Help,

Enterprise FAQ, and our Direct Billing Program: http://www.clemson.edu/finance/procurement/buy/CarRental.html

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2015 TRAVEL LINKS & FORMS In-State Travel & Out-of-State Travel Excel File

o http://www.clemson.edu/finance/procurement/travel/ forms.html

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Appendix B

Name:

Meals Lodging Mileage Registration AirfareRental

Car OtherEmployee ID Number: Acct: 6001 6003 6004 6009 6006 6005 6008

Fd:Departure DATE: TIME: Org:

Prog:Return DATE: TIME: Sub-Cls:

Project:Trip Destination:

TOTAL: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Project # for Payment: $0.00

Purpose of Trip:

Expenses Incurred: Date:Meals:

Depart Return Before: After: 6:30 am 11:00 am Breakfast $6 $0.00

11:00 am 1:30 pm Lunch $7 $0.00

5:15 pm 8:30 pm Dinner $12 $0.00

Lodging: $0.00

Registration Fee: $0.00

Air Travel: $0.00

Rental Car: $0.00

Auto Travel:Personal Car Mileage @ $.575 Miles $0.00

Rates as of 1/1/2015Airport Mileage @ $.575 Miles $0.00

Other (please list): Taxi $0.00Parking $0.00Baggage $0.00

Tolls $0.00$0.00$0.00$0.00

Total Due: $0.00

Date:Signature of Traveler

Date:Signature of Approver

Notes:

updated on 1/1/2015

Miscellaneous Expenses as allowed per policy.

In-State Travel ExpensesMeal and Mileage Rates as of 1/1/2015

ACCOUNT INFORMATION

TOTAL DUE:

I certify the expenses listed herein were incurred and paid in the performance of my official duties and that this claim is t rue and correct in every material matter and conforms to the requirements of the State laws, rules and regulations. I understand any reimbursements by Clemson University are subject to terms of payment maintained by CU Payroll office. It is the responsibility of the payee to verify with his/her financial institution when funds are available.

I hereby certify that the above items have been received or the services performed as stated and that the funds are available from the budgeted account(s) listed above. I also certify that these expenses are in compliance with established policies and procedures of Clemson University and that they ha ve not been (nor will not be) reimbursed in duplicate. I certify price is fair and reasonable.

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Appendix C

Name:

Meals Lodging Mileage Registration AirfareRental

Car OtherEmployee ID Number: Acct: 6010 6012 6013 6018 6015 6014 6017

Fd:Departure DATE: TIME: Org:

Prog:Return DATE: TIME: Sub-Cls:

Project:Trip Destination:

TOTAL: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Project # for Payment: $0.00

Purpose of Trip:

Expenses Incurred: Date:Meals:

Depart Return Before: After: 6:30 am 11:00 am Breakfast $7 $0.00

11:00 am 1:30 pm Lunch $9 $0.00

5:15 pm 8:30 pm Dinner $16 $0.00

Lodging: $0.00

Registration Fee: $0.00

Air Travel: $0.00

Rental Car: $0.00

Auto Travel:Personal Car Mileage @ $.575 Miles $0.00

Rates as of 1/1/2015Airport Mileage @ $.575 Miles $0.00

Other (please list): Taxi $0.00Parking $0.00Baggage $0.00

Tolls $0.00$0.00$0.00$0.00

Total Due: $0.00

Date:Signature of Traveler

Date:Signature of Approver

Notes:

updated on 1/1/2015

Miscellaneous Expenses as allowed per policy.

Out of State Travel ExpensesMeal and Mileage Rates as of 1/1/2015

ACCOUNT INFORMATION

TOTAL DUE:

I certify the expenses listed herein were incurred and paid in the performance of my official duties and that this claim is t rue and correct in every material matter and conforms to the requirements of the State laws, rules and regulations. I understand any reimbursements by Clemson University are subject to terms of payment maintained by CU Payroll office. It is the responsibility of the payee to verify with his/her financial institution when funds are available.

I hereby certify that the above items have been received or the services performed as stated and that the funds are available from the budgeted account(s) listed above. I also certify that these expenses are in compliance with established policies and procedures of Clemson University and that they ha ve not been (nor will not be) reimbursed in duplicate. I certify price is fair and reasonable.

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Appendix D