807.1 Payment or Expense Reimbursement for University Employees by Affiliated Organizations
Section 800: Financial Affairs
Effective: April 1, 2014
Review Date: April 1, 2018
Responsible Party: Vice Chancellor for Finance & Administration
Introduction and Purpose:
This policy implements Policy [ITEM 124-110-R0904] of the Montana Board of Regents of Higher Education and will govern the payment or expense reimbursement to or on behalf of MSU-Northern employees or departments by "affiliated foundations and organizations." The purpose of this policy is to establish consistent guidelines for the use of affiliated organizations funds and to establish the approval process for requesting direct payment or reimbursement from the affiliated organization.
For the purpose of this policy, the following definitions apply:
"Affiliated Organization" means any organization which has been determined to be a component unit under the criteria established by GASB 39. Montana State University-Northern Foundation is an affiliated organization.
Any affiliated organization must enter into an agreement with Montana State University-Northern regarding the terms and conditions of its affiliation with the university.
Acceptable Uses of Funds:
University departments and employees may seek reimbursement from any affiliated organization in accordance with the organization's approved spending policy and this policy. In general, reasonable expenses for travel, meals, lodging, entertainment/hosting or other reasonable expenses directly related to entertaining donors, prospective donors, prospective employees, or other guests of the University and/or affiliated organization may be reimbursed if directly related to or ` associated with the active conduct of the affiliated organization or University business.
Prohibited Use of Funds:
University departments and employees may not receive payments or seek reimbursement for the stated purposes listed in this section from any affiliated organization.
Salaries/Wage Payments to Employees of University:
No direct payment of salaries or wages will be made to faculty, staff, students, and/or other full or part-time employees of the University. Any salary support for an employee of the University may not be paid unless approved and processed through the University payroll system.
Loans to any employee or department will not be allowed.
Fines for Parking or Traffic Violations:
Fines for parking or traffic violations or for any other illegal actions are not allowable.
Any employee or department that seeks payment or reimbursement from an affiliated organization may request payment on the forms developed by the affiliated organization. Any request for payment or reimbursement must be accompanied by appropriated documentation and approved in writing by the department head or director of the department. A director or department head may not approve his or her own requests for payment or reimbursement. Such requests will be approved by the department head's or director's immediate supervisor.
Internal Control Considerations:
Each department head or director will be responsible to review all requests for payment or reimbursement and related documentation to assure that it meets the requirements of this policy before approval. Upon approval, documentation may be forwarded to the affiliated organization to be retained by it.