I. GENERAL INFORMATION

A Request for Disbursement Form must be completed for all payments. Forms should be submitted within 30 days of the requested date of expenditure. Reimbursements should be submitted within 30 days of the expense.

Each request for disbursement must be accompanied by original documentation including the nature and description of the expenditure, its purpose and justification. Such documentation should fully spell out the "ordinary, necessary and reasonable" nature of the expenditure to achieve an appropriate institutional purpose.  If the request appears vague, ambiguous or not clearly related to an institutional purpose, it will be returned for additional justification.

The Foundation is exempt from and will not pay New York sales tax. The Foundation will provide tax exempt certificates in advance of expenditures normally requiring sales tax.

A separate disbursement request for each of multiple payments to a single payee is not required.  Rather, such payments may be grouped on a single request for disbursement form.  This also applies to those situations in which more than one account is to be charged. 

Requests for disbursement will not be processed if the fund is in deficit nor will requests for reimbursement under $5.00 be processed.  Receipts may be accumulated until the request exceeds the $5.00 minimum.

If an order form or invoice is to be sent with the payment, please include a photocopy to be retained with the disbursement request.

Checks are disbursed weekly on Fridays after 2:00 p.m.  Requests for disbursements must be received by the Foundation, UAB 226, by 12:00 noon on Monday in order to be included in Friday's checks.  Requests received after this deadline will be processed the following Friday.

II. EXPENDITURES

Policies and Guidelines

The Foundation has a fiduciary responsibility to donors to use gifts for the purpose for which they were given.  Expenditures must be “ordinary, necessary, and reasonable” in relation to the educational mission of the University and in accordance with the Foundation’s mission; that is, to strengthen the educational programs, research activities, and public service initiatives of the University.  Expenditures should be supportive of these objectives and should not be of personal benefit.

The Foundation encourages Fund Managers and those seeking disbursements to make the fullest use of state or other resources whenever possible prior to requesting disbursement of Foundation funds.

Listed below are the general conditions required for disbursements. Expenditures must be:

It is the policy of the Foundation to pay all bills in a timely manner to avoid finance and late charges. In the event that finance and/or late charges occur, payment requires approval by the CFO of the Foundation.

Expenditures Requiring Advance Approval

Certain proposed expenditures require prior approval by the appropriate supervising administrative officer.
For academic units within schools or colleges, approval of the Dean of the school/college is required.

Deans require approval of the Vice President for Academic Affairs

• Other campus administrative units require the approval of their respective Vice President.
• Vice Presidents require the prior approval of the President.

The Fund Manager or other requesting officer should set forth how the proposed expenditure satisfies the "ordinary, necessary and reasonable" business purpose in relation to the educational mission of the institution.

The Foundation must receive the approved request at least five business days prior to the proposed event and will provide final review.  Prior approval forms may be obtained through the Foundation.

Among the expenditures that require advance approval before financial commitments or arrangements are concluded are:

1. Costs for events to be held in one's home that are University-related.  (Please note that, upon prior approval, the Foundation limits its 
   expenditures or reimbursements to the actual cost of the event [i.e. refreshments] and accepts no liability for damage or injury relating to  the event. Hosts are encouraged to assure that they maintain 
   appropriate insurance for potential risk.)
2. Meals and receptions where the only attendees are University employees.

Expenditures Not Allowed
The Foundation and the Foundation’s Funds are provided through the generous support of donors who are interested in supporting the mission of the University at Albany. As part of the Foundation’s careful stewardship of these contributions, it will not allow any of the following expenditures except as noted:

1. Expenditures deemed to be extravagant, excessive or which provide significant personal benefit.
2. Reimbursements for clothing to attend special events, i.e. formal wear.
3. Parking fines, towing charges, traffic violations, or other payments due to illegal actions.
4. Personal memberships to social clubs, airline clubs, etc. except for the President of the University, the Vice President for Athletics, and the 
   Vice President for University Development and for other positions with approval by the Foundation Board Executive Committee.
5. Contributions to charitable and other organizations unless there is a programmatic relationship to the University as approved by the xecutive Director of the Foundation.
6. Other expenditures not directly related to one's duties.
7. Holiday or celebratory events where there is no business purpose for the event.
8. Generally, costs for family members and friends to travel with staff on University business or attend University-sponsored events, such as dinners or receptions for visiting speakers or events noted above, will  not be paid by the Foundation. In the rare occasion when an exception is needed, the requester must go through the prior approval process.
9. Flowers for the employees of the University or Foundation.

III. COMPLETION OF REQUESTS FOR DISBURSEMENTS

Meals & Receptions
Use of Foundation funds for meals and receptions is permitted when such expenditures are clearly related to advancing the interests of the University, e.g., entertaining potential donors, candidates for employment, or guests to the University; food or refreshments for meetings of University committees, boards, councils, or department meetings with a business purpose. In accordance with IRS regulations, a substantial business purpose must be demonstrated.

Expenses for meals and receptions are expected to stand up to a reasonableness test.  Part of the test of reasonableness is to determine whether the expense is extravagant by current and local standards.  In those instances where reasonableness of expense appears to be violated, only partial reimbursement will be made.

Reimbursement of personal meals is generally considered taxable income to the recipient when not away from home on business.  However, under code section 274, the IRS allows an exception when an employee's expense is directly offset by the employer's reimbursement, and neither is reported on the employee's tax return. The IRS requires:

1. An employee must substantiate the expenses to the employer, returning amounts in excess of substantiated expenses;
2. There must be a business connection for the expenses;
3. The expense must be reasonable and appropriate; and
4. A primary business purpose must be evident, with personal consumption secondary.

The Foundation policy for meal reimbursement follows IRS guidelines.  When away from home on business, reimbursement of breakfast and dinner expenses will be allowed up to the Federal per diem guidelines.  Lunch expenses will only be allowed if a substantial business purpose is met. In the absence of documentation for actual expenses, the standard per diem allowances prescribed by the IRS will be acceptable.

When not away from home on business, reimbursement will be made only under the terms described above.  For reimbursement to occur, actual receipts must be submitted.

Travel
Requests for reimbursement for travel expenses follow the same general guidelines applied to state or Research Foundation accounts.  Specifically, the travel must be for an activity related to the employee's role at the University. The destination and purpose of the trip should be clearly identified.

Expense reimbursement should be aligned as closely as possible with the federal rate which both the State and Research Foundation adhere to.  Again, the reasonableness test shall rule.  If requesting mileage reimbursement, include the number of miles traveled, destination and purpose of the trip.  Mileage will be reimbursed at IRS approved rates.

When an individual is being reimbursed for travel expenses in part by the State or Research Foundation funds, the difference between the maximum permitted from either funding source and the individual's actual expenses for all travel-related expenses except individual meals may be paid from a Foundation account.  Since original receipts are required with the State or Research Foundation voucher, copies of the receipts, including a copy of the State or Research Foundation Travel Reimbursement voucher, (with the supervisor's signature) will be required as supporting documentation for the Foundation's portion of the reimbursement.

For all travel reimbursements made from Foundation funds, both the traveler and his/her supervisor must sign the Request for Disbursement form.

Miscellaneous Reimbursements
Receipts, cancelled checks or charge slips totaling the amount requested and the signature of the person seeking reimbursement, attesting to the fact that they have incurred the expenses, are required.  Explain any differences between amount requested and total receipts, e.g., individual is to be reimbursed for 50% of expenses, etc.  When seeking reimbursement for multiple receipts, please itemize by expense type.  Reimbursement made from Foundation funds should include the signature of both the person being reimbursed and his/her supervisor on the Request for Disbursement form.

IV. REQUIRED DOCUMENTATION FOR DISBURSEMENTS

Approval Process
Every disbursement requires the signature of the Fund Manager and approval by the Fund Manager’s reporting supervisor as set forth:

Approval  of:	Signature Required:
Dean	Provost or designee of the Academic Affairs Office
Faculty	Reporting Dean or designee
Staff	Reporting Supervisor or designee
VP	President or designee
President	Executive Director or CFO of the Foundation

Vendor Payments
To pay a vendor, please remember to attach the following documentation to the Request for Disbursements: