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Red Italicized Revisions were made on 01/25/2005
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Princeton University

TO:	Members of the University Community
DATE:	November 1, 2004
FROM:	Christopher McCrudden
SUBJECT:	University Guidelines for Non-Compensation Expenses

In meeting its mission as a residential academic institution, the University incurs a wide variety of expenses. Clear guidelines exist for the compensation of faculty, staff, and students and for casual workers for services performed and for student aid in the form of scholarships and fellowships. Should you have questions in these areas you should consult directly with the Dean of the Faculty, the Office of Human Resources, the Dean of the College, or the Dean of the Graduate School. Salary payments to such individuals must be paid following the appropriate appointment procedures and may not simply be treated as an expense or reimbursement.

The following sections of this package are designed to give guidance for non-compensation expenses, including reimbursement to members of the University community. These policies and procedures are needed for a number of reasons. Among them are: the protection of the University’s tax exempt status as both a recipient of gifts and a borrower of funds; the protection of our exemption from sales tax; the ability to meet restrictions imposed by sponsors (particularly the federal government); and the preservation of our ability to reimburse faculty, staff, and students on a tax-exempt basis for expenses incurred in pursuit of University business. In order to achieve the last of these objectives, we have followed IRS regulations wherever applicable. Repetitive expenses for an individual’s routine food, lodging, and commuting to the Princeton Campus are considered taxable by the IRS and cannot be paid by other than authorized salary disbursements.

Guidelines and policies cannot anticipate every possible expense or circumstance surrounding those expenses. The basic litmus test for the allowability of a charge (excluding compensation and student aid) to any institutional account is that the primary purpose for the expenditure is to further the fulfillment of the University’s responsibilities. Many of the specific items cited in what follows help to clarify the appropriateness of expenses that reimburse or otherwise involve an individual member of the University community. While our policies attempt to insure that individuals neither gain nor lose when acting or traveling on the University’s behalf, there will be instances when an individual may gain an incidental or perceived benefit from an expenditure whose primary purpose is furtherance of the University’s mission. Charges in such situations are allowable and non-taxable so long as the benefit to the individual is de minimis and the preponderance of the benefit accrues to the University.

 Requests for reimbursements must be accompanied by detailed original receipts and the departmental or University purpose must be clearly stated. If original receipts are not available, there must be a signed statement of explanation by the requesting individual explaining the circumstances preventing the submittal of the original receipts.

 The primary test for the reasonableness of a permitted expenditure is whether the expenditure is the minimum necessary to achieve an acceptable institutional result. Where possible, we have tried to include more specific guidance.

The Purchasing Department is responsible for buying on behalf of the institution, and departments should use the Purchasing System (PeopleSoft), or an approved alternative method, such as a departmental credit card. The documentation for each of these methods is designed to help provide clarity on the vast majority of expenditures that departments typically make. However, if there is any doubt about whether an expense will be reimbursable, prior guidance should be requested from the Treasurer’s Office (via jwyuncza@princeton.edu or ext. 3067).

In no cases will the availability of funds in a departmental account be considered a sufficient reason to incur what would otherwise be a prohibited charge.

This package contains the following sections:

I. Guidelines for All University Project/Grants

A. PERMITTED DEPARTMENTAL EXPENSES

The list below is not intended to identify every allowable University transaction. It focuses on those expenses that are more “personal” than most University activities and that historically have raised questions. If there is any doubt about whether an expense is reimbursable, prior approval should be requested from the Treasurer. When incurring expenses, care should be taken to avoid purchases that are in conflict with institutional core values or that would cause embarrassment to the University.

Because of IRS regulations, cash or cash equivalents (such as gift certificates or points on a University card) are not appropriate as gifts or awards. Cash or cash equivalent awards made as part of official University programs are treated as taxable compensation and paid through payroll.

Advertisements: Recruiting employees, acquiring goods and services, and disposing of surplus equipment are examples of ads that are appropriate for advancing the interests and visibility of the University.

Awards to Employee Groups : It is occasionally permitted to provide modest awards (e.g., shirts, cups, caps) to members of a working group to recognize membership in a team effort and to encourage camaraderie among team members.

Awards to Student Athletes: Allowability is defined by Athletic Department policy and authorized by the NCAA as, “awards, benefits, and expenses for enrolled student athletes.”

Business Meeting Meals: If schedules require that meetings be held over a meal time, the cost of the meal is an allowable expense. Often such meetings will most logically take place on campus. However, whether occurring on campus or off campus, the normal guideline for allowability would be the average cost of a comparable meal at a University facility, such as Frist or Prospect, or from catering. A list of people with their functional titles or affiliation (individual or group) attending should accompany the reimbursement request. In those cases where a meeting involves a group of individuals who are defined by their membership in the group; and whose names may be easily identified because of their membership it is not necessary to list each name. The total number of attendees should be included. The University's policy on business meeting's reflect minimum requirements. If individual departments wish to apply additional restrictions or reporting requirements they may do so.

Cash Payments (or cash equivalents) to study or survey participants: These are allowable only if approved by the Human Subjects Committee.

Car Service: Public transportation or use of private auto is often the most convenient and cost-effective means of transportation to airports and similar destinations of intermediate distance. However, other logistical considerations can make use of basic car service an acceptable alternative.

Cell Phones and Pagers: For individuals with extensive travel or emergency response assignments, these may be authorized at the departmental chair or office head level. However, care should be taken that any excess costs caused by extensive personal use are not incurred by the University.

Coffee Service, Soft Drinks, and Bottled Water: When made available to all members of a department and to visitors, these are expenses that may be incurred at the discretion of the department.

Conferences and Meetings: Expenses for food and beverages during such events are allowable when associated with business activities. The cost should be reasonable, based on the number of people attending. Request for payment for such meetings should include the names of participants and their functional titles or affiliation (individual or group).

Connection to Home Offices: If there is a significant departmental or University need, connecting costs may be authorized by the department chair or office head at the lowest cost to satisfy the institutional requirements.

Contributions to Outside Organizations: These are allowable only if they further the mission of the University or are in lieu of a sympathy gift. Questions should be directed to the Provost’s Office.

Employee Achievement Awards: The items awarded must be of nominal value and consistent with the contribution that the award is intended to recognize. Such programs must be approved in advance by the Office of the Dean of the Faculty or the Office of Human Resources depending on the staff involved.

Gifts for Departing Employees: These may be given to terminating, transferring, or retiring employees. The amount should be reasonable and commensurate with length of service and the nature of the position. Normally, an amount of $25 per year of service would be reasonable. This amount can be increased gradually to $50 per year of service for thirty or more years.

Gifts to Employees Associated with Professional and Personal Events: A modest memento is appropriate to recognize a significant professional accomplishment such as a promotion, transfer or professional award. Gifts such as flowers or fruit baskets are appropriate to recognize a personal event such as the birth of an employee’s child, an extended illness, or the death of a family member (as defined by Human Resources Leave Policy). In the latter case, a donation of equal value may be made to a charitable organization in lieu of flowers or a fruit basket. This includes gifts to educational accounts established for the benefit of children of a deceased employee.

Gifts to Non-Employees: Gifts of modest value may be given to individuals not employed by the University in recognition of events. These would most typically be to students, alumni, and friends who have provided volunteer service and leadership to the University. It would also include gifts to hosts when traveling. Shows of appreciation should be consistent with Univesity guidelines.

PDA’s: If necessary to carry out departmental responsibilities, these are allowable. However, they remain the property of the University.

Licenses: All licensing fees required to perform the duties of one’s position at the University are covered expenses. These may be paid at the discretion of individual departments.

Memberships - Individuals: Memberships in professional associations related to one’s position at the University are covered expenses. These may be paid at the discretion of the individual departments.

Memberships -University: These are allowable but require the approval of the Provost’s Office.

Moving Expenses: These are allowable to the extent they comply with the detailed Moving Policy (Section XI-Moving Expense Policy). A recent change to this policy for faculty now permits payment for the shipping cost of one automobile if the new faculty member lives more than 500 miles from Princeton.

Payment to Other Institutions: Expenses incurred by another institution involved in collaborative activity may be reimbursed based on an invoice or formal request for payment which specifies the purpose and nature of the expenditures. Such payments must be approved by the Office of Research and Project Administration (ORPA) if charged to a sponsored research account.

Prizes: Awards based on established criteria for academic achievement are allowable if approved by the Dean of the College or Dean of the Graduate School, as appropriate.

Service s Purchased and Consultant Costs: Payments may be made to outside individuals for services secured on a contract basis. If the provider is not a member of a firm or otherwise incorporated as a business, you must review the IRS guidelines (See Section VIII) in order to ensure it is appropriate to pay the individual as a consultant and not via payroll as an employee. This is especially important if this person has ever been an employee of Princeton. Questions should be referred to ORPA.

Social Events: Occasional office parties, picnics or other social gatherings for faculty, staff, and students are acceptable. The cost of food should be reasonable. The catering rates established by Dining Services are the appropriate benchmark. Door prizes or favors to a maximum value of $10.00 may be distributed. A favor is defined as "a small gift given to each attendee at a party".

Subscriptions: Appropriate publications and journals relative to the employee’s responsibilities and intended to increase business/ educational knowledge are appropriate.

Thesis or Study Grants for Students: These are permitted but must be submitted on the Princeton Student Voucher. Such grants may be taxable and do not require the submission of receipts.

Training: Training expenses on, off site, and utilizing online strategies are appropriate.

B. PROHIBITED DEPARTMENTAL EXPENSES

The listing of prohibited expenses is not intended to be all-inclusive but rather to reflect examples of invalid expenses that have been inquired about in the past.

Advertisements – Personal: Expenses for advertisements relating to individuals (e.g., congratulatory notices or notices that can be reasonably viewed as personal rather than departmentally oriented) should not be incurred.

Commuting: Employee travel to and from work. Airline club memberships are not permitted under any circumstance. Employee room fees if an employee stays overnight.

Credit Card Fees: Annual fees on personal credit cards are not reimbursable even if the card is used for business purposes.

Gifts to Employees and Non-Employees: Gifts for any reason except those previously identified as being permitted are prohibited. This includes gifts given on a holiday or other basis to employees, vendors, or others. Gifts to employees from other departments for performance of routine support activities are prohibited.

Goods for Personal Use: These would include such items as individual coffee makers or similar small appliances.

Late Payment Penalties or Interest Charges: Late charges or interest on credit cards provided under an authorized University program or a personal credit card that has been used to pay University related expenses are not a covered expense and are not reimbursable.

Memberships - Personal, Recreational, or Athletic: Absent an approved business justification made at the level of senior Dean or Vice President, these are not allowable.

Parking Tickets or Traffic Violations: These are not allowable even if incurred while conducting University business.

Personal Services for Employees and Non-Employees: These include child care, pet care, or similar activities.

Political Contributions of Any Type: Both cash and other forms of support are prohibited.

Sales Tax: The University reserves the right to not reimburse sales tax for a transaction that would have qualified for a sales tax exemption if it had been properly processed through the appropriate University channels.

Sponsorship of External Teams or Other External Groups: Both cash and other forms of support are prohibited.

Stolen, Lost, or Damaged Personal Property: These are not reimbursable even if incurred while on University business or property.

II. Personal Expense Reimbursement Requests

For each expense reimbursement being requested, the nature and purpose of the expense must be stated, and two signatures will be needed: the individual who has incurred the expense and is requesting the reimbursement and the Department or Office Head approving the expense.

A. When the individual requesting reimbursement is a Departmental Chairman or Program Head, the second signature will be that of the Dean of the Faculty (9 Nassau Hall).

B. When the individual requesting reimbursement is the head of an administrative office, the second signature will be that of the appropriate Vice President or Senior Dean.

C. When the individual requesting reimbursement is a Vice President or Senior Dean, the second signature will be that of the Executive Vice President (320 Nassau Hall) or Treasurer (4 New South Building).

D. The authorization for the second signature (approval) may be delegated in writing to an individual in a management position. Such delegations must be approved by the Treasurer on an annual basis. When the Department or Office Head, as well as the individual’s supervisor is not available, the second signature will be that of the appropriate Vice President or Senior Dean.

E. Individual personal reimbursements of $25 or less may either be forwarded for the required second signature as incurred or accumulated and reported on an annual basis to the responsible authorizing party (second signature). This includes both petty cash and reimbursements by check.

F. Original receipts are required for all reimbursable expenses except for flat per diem meal rates and tips.

G. Under no circumstance may a person authorize reimbursement, or payment of any type, to a family member. Family should be interpreted in the broadest sense and includes blood, marital and other significant relationships.

III. Departmental Credit Card Procedures

Credit cards are issued to assist departmental employees in carrying out their purchasing responsibilities in a way that provides both adequate documentation and ease of use. The following procedures must be used for all University issued VISA departmental cards.

A. The request for the credit card must be signed by the Department Chair or Office Head.

B. There will be one responsible departmental individual assigned to each card.

C. For audit purposes, it is the responsibility of the departmental individual to keep a record of each purchase made using the card. These individual original records must be reconciled on a monthly basis to the VISA summary statement of charges on the card.

D. The preferred method for approving card purchases is for the supervisor of the individual responsible for the card to add a second electronic approval using the card management software “Works.”

E. An alternative approval method would be for the departmental individual responsible for each card to prepare a paper reconciliation each month and forward it to their supervisor for approval. The reconciliation (and all supporting documents), signed by both the individual and supervisor, must be forwarded to the Controller’s Office (6 th Floor, New South Building ) for review. In the case where a chair of a department or project or an office head is the card holder, the reconciliation would go to the Dean of the Faculty (9 Nassau Hall) for counter signature or the appropriate Cabinet level officer for non-academic departments.

F. A third method is a combination of the first two. It is intended to accommodate senior staff by allowing them to meet their control/authorization responsibilities without having to learn to use the computer application. In this case the reconciliation (and all supporting documents) are signed by both the individual card holder and supervisor and retained by the department. The supervisor may delegate authority to a designee to complete processing via the system by “authorizing” the approved transactions.

ALL PURCHASES MADE ON UNIVERSITY ISSUED CARDS MUST BE FOR ALLOWABLE UNIVERSITY EXPENSES. NO PERSONAL EXPENSES MAY BE INCURRED ON A UNIVERSITY ISSUED CREDIT CARD.

Detailed information on allowable expenditures can be found on the Treasurer’s Web site http://web.princeton.edu/pusites/TreasurersOffice
/Purchasing/PrincetonOnly/pncbankpolicies.html#purchaseallowlimits

Non-compliance with these procedures will result in the loss of credit card access.

IV. Special Considerations for Government Accounts and Administrative Charges

While Section I deals with expenses that are allowable for University purposes, federally funded contracts and grants carry a specific list of rules and prohibited costs which cannot be directly charged to a sponsored account nor indirectly included in the facilities and administrative (indirect costs) rate charged to such agreements.

A. GENERAL ALLOWABILITY GUIDELINES:

The types of costs cited in B, above, as unallowable as direct charges to federal contracts and grants are also unallowable for purposes of indirect cost recoveries. This means that for administrative accounts in academic departments and programs, and accounts for central general business functions, special segregation is necessary for cost items allowed under University policy but prohibited under federal guidelines. Such a distinction need not be made for any department whose sole purpose is student services alumni or public affairs, development related or associated with auxiliary activities such as athletics, real estate, dining, housing, conference or visitor services. All other units should charge such costs to the departmental project grant with the last four digits of 1038. These accounts are all entitled “Unallowable Cost: for our government indirect cost purposes.”

D. MATERIAL AND SUPPLY POLICIES:

V. Individual Faculty Research Accounts

I. General Guidelines

To assist faculty members with their research, the University will, on occasion, grant individual faculty members a research account to be used to reimburse qualifying research expenses. Funds in these research accounts are intended to pay for research related expenses such as the purchase of books and other research materials including data-bases and software, the employment of research assistants, payment of subventions, payment of translation expenses for research materials, research-related travel and other research-related expenditures.

Expenditures from these University-funded faculty research accounts are expected to directly tie to the faculty member’s research activities. These accounts should never be used as a catch-all to cover research-unrelated expenditures made by faculty members. For example, funds may not be used to purchase personal computers and similar devices that would remain in possession of the faculty member. Any personal computer or other durable equipment that is purchased from a research account remains the property of the University. Research-related books and computer software are considered to be nondurable. Funds may not be used to purchase home-office equipment such as desks, chairs, book cases, wastebaskets and so forth. These are considered personal expenditures and reimbursement will not be permitted.

A good rule of thumb for faculty members to follow in requesting reimbursement from their individual research account is that the same general guidelines cover reimbursement of expenditures from individual research accounts that cover expenditures from any University account.

THE BASIC TEST FOR THE ALLOWABILITY OF A CHARGE TO AN INDIVIDUAL FACULTY MEMBER’S RESEARCH ACCOUNT IS THAT THE PRIMARY BENEFICIARY OF THE EXPENDITURE MUST BE THE UNIVERSITY.

Requests for all reimbursements from individual research accounts must be accompanied with detailed original receipts and the purpose of the expenditures must be clearly stated on the invoices.

II. Travel Expenses

The same University policies apply to travel expenses charged to individual faculty research accounts that apply to travel expenses charged to any other University account. Individual research accounts cannot be used to fund first class-travel. Business class travel may be permitted with prior approval under very limited circumstances. If there are overriding health considerations or some other considerations for traveling other than coach class, the request must be endorsed by the faculty member’s chair and prior approval must be obtained from the Office of the Dean of the Faculty. These exceptions will be made on a case-by-case basis. Please contact Associate Dean Sandy Johnson concerning requests for exceptions at sandyj@princeton.edu , extension 8-5230.

III. Allowable research expenses

Faculty members undertake a wide variety of activities as they engage in their research. As with the criteria governing sponsored research, the underlying criteria for allowability of a cost charged to an individual faculty member’s research account is reasonableness and benefit to the University.

As a general rule, the guidelines for determining permitted University expenses also apply to those expenses from individual faculty research accounts. These guidelines are in Section 1.A. of the Treasurer’s guidelines.

1. Allowed research-related expenses:

When directly related to a faculty member’s research work, the following expenses are allowed:

Research-related books and periodicals (not personal books and periodicals)

Books authored by the faculty member purchased to give to others, limited to 10 copies when purchased with University-funded research funds

research materials such as data bases

xeroxing or copying of research materials

subventions to publishers to allow the publication of research books or monographs

creation of drawings, maps or other materials that will be included in a research publication

employment of research assistants

payments to research subjects (in all cases where the faculty member is engaged in such work, the University human subjects committee must approve the project beforehand) .

Research–related travel including travel to conferences, travel to research locations, cost of living while at research locations (supported by receipts)

Membership fees for professional societies

Conference registration fees

Software that will assist the faculty member in undertaking their research

University policies attempt to ensure that individuals neither gain nor lose when acting on behalf of the University. There will be instances when a faculty member may gain an incidental or perceived benefit from an expenditure whose primary purpose is the furtherance of the University’s mission. Charges in such circumstances are allowable and non-taxable so long as the benefit to the individual is de minimus and the preponderance of the benefit accrues to the university.

2. Allowed if approved by the Department Chair and/or Dean of the Faculty:
Some research related expenditures are allowed only when approved by the Department Chair or Dean of the Faculty:

a. Payment for a DSL Line to home office: These lines are as common as telephones today and as a rule should be considered a personal expense unless there are extenuating circumstances that clearly link these expenditures to a faculty member’s research. These expenditures must be approved by the Department Chair.

b. Purchase of cell phone and/or associated monthly charges. The purchase of cell phones and payment of the monthly charges should be considered a personal expenditure unless there are overriding business-related circumstances that have been approved by the Chair. The University reimburses business calls through a variety of mechanisms (phone card, direct reimbursement). The Telecommunications Office has a mobile phone loaner program to provide business-related cell phone coverage during both US and international travel.

c. Purchase of a “blackberry” or other remote device must be approved by the Dean of the Faculty. The portion of the monthly connection fee that relates to personal use must be paid by the individual. The “blackberry” remains the property of the University.

d. Gifts to host . In some circumstances a token gift to a host may be reimbursable as a recognition of an event. A token gift to a host in lieu of lodging expenses is acceptable if the cost is consistent with standard lodging costs.

e. Other questionable expenditures . Some expenditures associated with research are unique and resist easy classification. University research funds are intended to benefit Princeton University so in cases where faculty members are scheduled to terminate their employment at Princeton , special care should be taken to ensure that the primary beneficiary of all expenditures is Princeton and not the institution to which they will soon be taking up employment. Should you have any question concerning the reimbursability of a research expenditure, please contact Associate Dean Sandy Johnson, sandyj@princeton.edu , extension 8-5230.

f. Any expenditure not directly related to the faculty member’s research must be approved by the Dean of the Faculty before it can be charged to the University funded research account.

3. Food and Entertainment Costs:
The following criteria should apply to all food and entertainment expenses submitted for reimbursement on a University-funded research account:

a. The primary beneficiary of expenditures for food and entertainment should be the University. (If the food/entertainment is used as a reward or morale booster, these situations must be non-repetitive in nature.)

b. In all cases, a list of attendees or identification of a discernable group and the purpose of the meeting needs to be provided along with the original receipts in order to be reimbursed.

c. The concept of reasonableness should apply to all food costs.

d. If the schedule for a research-related business meeting requires that the meeting be held over meal-time, the cost of the meal is allowable.

e. As a rule, spouse/guest meals are not reimbursable. However, there are some circumstances where a spouse’s (or guest’s) meal would be reimbursable as a business expense in those rare circumstances where the University requires the presence of a spouse/partner to further an institutional purpose.

IV. Prohibited Research Expenses
Research accounts are not “expense accounts” to cover personal expenses. The below listed expenses are disallowed. Please note that any item that is prohibited by the University Expense Reimbursement Policy as a departmental expenditure (Section I.B.) is also prohibited from University-funded research accounts.

Personal expenses

Commuting: Employee travel to and from work.

Credit Card Fees: Annual fees on personal credit cards are not reimbursable even if the card is used for business purposes.

Gifts to Employees and Non-Employees: Gifts for any reason except those previously identified as being permitted are prohibited. This includes gifts given on a holiday or other basis to employees, vendors, or others.

Goods for Personal Use: This would include such items as individual coffee makers or similar small appliances.

Late Payment Penalties or Interest Charges: Late charges or interest on credit cards provided via an authorized University program or a personal credit card that has been used to pay University related expenses are not a covered expense and are not reimbursable.

Memberships - Personal, Recreational, or Athletic: Absent an approved business justification made at the level of Dean or Vice President, these are not allowable.

Membership in Airline Club

Moving and storage of personal goods while on leave

Moving of automobiles to leave locations

Parking tickets or traffic violations: These are not allowable even if incurred while conducting University business.

Personal Services for Employees and Non-Employees: These include child care, pet care, or similar activities.

Political Contributions of Any Type: Both cash and other forms of support are prohibited.

Sales Tax: The University reserves the right to not reimburse sales tax for a transaction that would have qualified for a sales tax exemption if it had been properly processed through the appropriate University channels.

Sponsorship of external teams or other external groups

Stolen, Lost, or Damaged Personal Property: These are not reimbursable even if incurred while on University business or property.

V. A word about Expenditures Charged to Federal Grants and Contracts:
A good general guideline in determining which expenditures are allowable charges to University-funded research accounts is that expenditures charged to these research account should be those which contribute to, and are generated by, that research program. The more direct the link between the expenditures and the research, the better. The guidelines for expenditures charged against government grants and contracts are very good guidelines for expenses charged against individual research accounts. The only exception I would note is that foreign travel can be charged against a faculty member’s individual research account as long as that travel serves to benefit the faculty member’s research program. Please refer to Section I.B. of the Treasurer’s policy for a listing of those charges which are prohibited from being charged to Government-sponsored research accounts.

VI. Examples to clarify policies :
1. Meal examples: When a meal is charged to an individual research account, the faculty member needs to think how this meal directly relates to her/his research activities. Non-repetitive meals purchased for staff to raise morale or celebratory in nature are allowable if tied with some event directly related to the research. If meals are repetitive in nature such as periodic research group meetings over a pizza lunch, to be reimbursable, it needs to be clear that these meals are research related and not social in nature. If a meeting must be scheduled over lunch or dinner because of scheduling or time constraints, the meal would be allowable.

2. Research material examples: The purchase of books and periodicals should tie directly to research programs. The concept of who benefits most, the individual or the University should be used for questionable cases. Therefore, the purchase of a Wall Street Journal subscription for individual use would in most cases be considered personal use and not reimbursable unless the research agenda of the faculty member directly related to the content of the Journal. While some article very rarely might relate to research, over the course of the subscription it is the individual who benefits most and hence the expenditure should be considered personal. This does not preclude the purchase of a department copy of newspapers such as the WSJ from a general (not research) University account.

3. Gift example: In some circumstances in the course of research travel, a gift to the host might be appropriate. If a host has provided free accommodation in their home or business facility, a modest gift in lieu of the lodging cost would be considered appropriate. In some foreign cultures, the giving and receiving of modest gifts in business related settings is customary and expected. In such cases, it may be appropriate to give a modest gift. These expenditures must be carefully documented and must be approved by the department chair. The expenses for these gifts must be modest and reasonable.

4. Travel to resort area for conference: In some cases, University employees might combine business travel with vacation travel. For example, if a research-related conference is held in a resort area, a faculty member might bring family and stay on for a few extra vacation days. Care must be taken to appropriately segregate expenses so that the University pays for only the employee’s business-related expenses. The travel, food and lodging expenses of family members are personal expenditures and cannot be charged to research accounts. The extra days spent at the resort location, beyond the conference dates are personal expenditures and cannot be paid by university funds.

5. Moving and storage of personal goods during leave: The moving and storage of personal goods while on a leave of absence is considered a personal expenditure and cannot be charged to individual faculty research accounts or departmental accounts. If a faculty member ships research-related books or other research materials that are intended to be used and referenced during the leave to the leave-location, these shipping expenses may be reimbursed from the research account. The University will not pay for automobile shipping from individual research accounts.

VI. PURCHASE OF COMPUTERS

Computers should be purchased using established University procedures. They should not be bought by individuals using personal or departmental credit cards. Because computer purchases outside University procedures have been a frequent problem in the past, it is appropriate to discuss in more detail why such procurements are prohibited.

A. The University has favorable contracts with Dell, Apple, and IBM. With Dell and Apple there are integrated Web applications to facilitate the actual purchase/delivery of computers and this methodology is consistent with the University’s objectives.

B. Purchases made directly by individuals outside University contracts often include sales tax and shipping costs, which add to the cost without adding value.

C. Purchases made directly by individuals bypass ORPA’s review, which can be an important consideration depending on the source of funds. While this may affect only a limited number of purchases, when it does, it can be significant.

D. Purchases that do not use the University’s purchasing applications are not integrated into the University’s system for managing capital equipment. While most computer purchases are now below the $5,000 capital threshold, there are transactions that exceed that level.

The most common explanations for direct purchase have been:

A. The buyer needed to see/operate the computer first.
B. The buyer was in a hurry.
C. Good pricing was available.

In addition to the established contracts with Dell, Apple, and IBM, the University has established contracts with CompUSA, Micro Warehouse, Computer Discount Warehouse, and Global Computer, which make it possible for one to be more directly involved in selecting a computer while still following the University’s buying policies.

Computers acquired under University standing contracts can generally be shipped the next day. Computers can also be picked up at the vendors identified earlier if speed is essential. With modest advance planning by the buyer, any of these approaches will guarantee delivery when the equipment is needed.

Prices from non-University vendors lower than that available through the University are almost always for older model computers or ones that have lower technological capability.

Dell

a. There is a pre-designed “image” specific to University applications.
b. The University Dell Systems are “Optiplex” meaning they have been certified and tested for compatibility with our systems. Their “Dimension” series of computers does not provide this consistency, e.g., they may use Toshiba floppy drives in one manufacturing run and TEAC’s in the next run.
c. We receive a three-year warranty plus inside and outside sales support.
d. Only Dell sells Dell computers. Any Dell sold by a distributor or other source is a reconditioned unit.

Apple

a. Princeton’s contract provides computers that are specifically bundled and priced below the Higher Education Pricing that is generally available.
b. These systems have been tested for compatibility against various platforms in use on campus.
c. A 3-year warranty is provided plus inside and outside sales support is available.

Support is available from the Office of Information Technology’s Help Desk to configure and order computers within the Dell and Apple environments. The Purchasing Department will provide support for the purchase of other manufacturers and/or with other contract distributors.

VII. Leases of Residential Real Estate Property

It is a general expectation that individuals associated with the University are responsible for arranging their own residential living situations. This is certainly the simplest arrangement and the least time consuming from a departmental point of view. However, there may be certain instances where the academic structure of the instructional and research program is such that the housing of visitors becomes a responsibility that a department or program wishes to undertake. Since the authority to enter into leases and subleases of real estate is restricted by Trustee resolution to a limited number of corporate officers, departments wishing to lease or sublet residential units outside of the University system must follow the following procedures and conditions:

A. Proposed leases must be approved by the Director of Real Estate Finance. Such leases must be at market rates and meet all University criteria including the provision for adequate insurance and indemnity clauses acceptable to Office of Risk Management. A standard lease form is available from that office.

B. Because most departments and programs do not normally have management expertise in this area, an outside property manager, chosen from a list provided and approved by the Office of Real Estate Finance, must be engaged. Any exceptions must be authorized by the Office of Real Estate Finance.

C. The Departments must be able to demonstrate to the Director of Real Estate Finance that adequate financial resources exist in case rental income renewals do not cover the cost of the lease.

D. The rental or direct purchase of furnishings must be made through Purchasing, which has approved vendors for these purposes, or via a buying method authorization by Purchasing. For purchased items the department must maintain an inventory of items placed in the apartment. Furnishings no longer needed for an apartment must be disposed of through the University Surplus Program unless they fill a need in the departmental office.

E. The visitors must sign a standard University Use and Occupancy Agreement.

F. If the unit rental charge to any visitor is less than the full market value, then the differential constitutes imputed income and must be approved, in advance, by the Dean of the Faculty’s Office and reported to the Payroll Department.

G. Departments may not directly sublet University rental units from faculty staff or students.

H. Departmental residential units may not be rented to faculty and staff on regular appointments without prior written approval.

I. Departmental units may not be used without charge by faculty, staff , students, families or associates.

J. Special care should be taken to ensure that the visitor adequately reimburses the department for such items as long distance phone calls. This could be done by requiring cash deposits or by having access to the visitor’s personal credit card.

VIII. IRS Determination of Worker’s Status for the Purposes of Federal Employment Taxes and Income Tax Withholding

http://www.irs.gov/pub/irs-pdf/fss8.pdf - Form SS-8

http://www.irs.gov/pub/irs-pdf/p334.pdf - Definition of Small Business – Scroll to Page 3 - Introduction

http://www.irs.gov/pub/irs-pdf/p533.pdf - Are You Self-Employed? Scroll to page 4.

http://www.irs.gov/pub/irs-pdf/p1779.pdf - To determine whether a worker is an independent contractor or an employee

IX . Treatment of Advances

Each department will be assigned a project/grant against which all advances made to departmental personnel will be charged. The vast majority of such advances are made for travel expenses. These may take the form of travel tickets or hotel accommodations charged to a departmental travel credit card, an invoice issued to an outside vendor or a cash advance to the individual. When the trip or other event requiring an advance is completed, the Business Expense Report or event invoice should include the detail required to allow the advance to be liquidated from the program/grant suspense account.

The use of a personal credit card to purchase airline tickets or to register for a conference is not reimbursable until the trip is completed and all expenses incurred are submitted to Travel Accounting. Tickets bought in advance should be bought with a departmental credit card. If a traveler chooses to use a personal credit card, the traveler accepts/recognizes that payment may be due before reimbursement is made.

Each department will be required to verify the validity of each transaction constituting the account balance at the end of each quarter. Invalid transactions, such as tickets issued for a cancelled trip, should be corrected promptly upon discovery.

X. Status of Automobile Insurance Coverage

http://web.princeton.edu/sites/TreasurersOffice/RiskManagement/
insuranceguidelines.html#automobile

XI. Moving Policy

Refer to:
http://www.princeton.edu/hr/policies/employment/230.htm

XII. Travel Policies and Procedures

Refer to:
http://web.princeton.edu/pusites/TreasurersOffice/PayrollPayablesTax/
AccountsPayableTravel/Princetononly/travelpolicies.html