Standards and Governance

Purpose

The purpose of this standard is to provide guidance on the requirements for the use of University funds to pay for gifts, awards and other payments using University funds for a valid University business purpose.

Scope

This standard applies to all situations where University funds are used.

Contacts

Direct any general questions about this standard to your department’s business officer or fund administrator. If you have specific questions, please refer to the contacts for fund use guidance listed in Appendix 1 of the University’s Financial Management Guidelines.

Standard

1. Awards and Gifts: Institutional Trust Funds, Special Funds, and Discretionary Funds may be used to purchase awards and gifts in accordance with University Policy 602.11, Gifts, Awards and Prizes as long as the spending restrictions of the fund are met. The General Fund may only be used if the awards and gifts are made through a Chancellor-approved program, University-sanctioned program, or under the North Carolina Employee Suggestion System (administered by the North Carolina Office of State Human Resources). Examples of University-sanctioned awards are the Teaching Excellence Award, state service awards, awards during the staff appreciation celebration, or award programs that have been approved by an office with University scope (such as Academic Affairs or Human Resources). Chancellor-approved award programs must have an appropriate fund source identified. In addition, State funds may be expended, not to exceed $100 per employee, for the purchase of a plaque or for the printing and framing of the certificate.
2. Convenience Items for Employees: Discretionary funds are the only funds that may be used to purchase convenience items for employees. These are items that are used and reside in the workplace for the convenience of the employee. Examples of such items include televisions, refrigerators, microwaves, and coffeemakers. All equipment, including convenience items, must be accounted for as described in University Policy 601.15, Control and Management of University Equipment and Other Property.
3. Gross-Up Payment: Discretionary funds are the only types of funds that may be used for this purpose. If a payment or reimbursement is not in compliance with the University’s accountable plan^[1] or fringe benefit exclusions, then the amount of the payment or reimbursement will be treated as taxable income to the recipient, regardless of the type of funds used for payment. Payments to an employee’s spouse, guest, and/or children will be treated as having been made to the employee. In this situation, the department can choose to gross up the payment so that the employee’s tax liability is paid for by the department. Discretionary funds are the only types of funds that may be used for this purpose.^[2]
4. Transportation-Related Expenditures: Any funds may be used for non-employee business-related parking (e.g., validated tickets for job candidates). Only Discretionary funds may be used for the incremental cost for a reserved parking space for an employee. No funds may be used for employee commuting expenses, including to purchase parking permits for employees. For procedures related to CATS all-access transit passes, visit the Parking and Transportation Services website.
5. Relocation and Moving Costs: Relocation and moving costs are expenses incurred by an employee for the relocation of their personal residence due to a work-related event. Discretionary funds may be used for relocation and moving costs for new employees. The General Fund, Institutional Trust Funds, and Special Funds may not be expended for this purpose unless the conditions and limitations of the North Carolina Budget Manual are met^[3].
6. Retirements and Faculty Receptions: Discretionary funds are the only types of funds that may be used for retirement and faculty receptions. A reception is a form of celebration to honor an employee. Documentation must include a copy of the reception announcement.
7. Membership Dues, Professional Certifications, Other Payments: Per the State Budget Manual, membership dues paid from state funds should be kept to a minimum. Discretionary funds may be used to pay for an employee’s business-related membership dues or professional certification costs. If using the General Fund, Institutional Trust Funds, or Special Funds for such costs, the following additional requirements apply:
   1. The General Fund, Institutional Trust Funds, and Special Funds may only be used for business-related membership dues if the benefit of the membership is for the State and the position for which the individual is employed. The department head or their designee must review and approve all memberships to determine that the benefits accruing to the State from such memberships will exceed the costs. If a membership is in the name of an employee, the membership must terminate or be transferred to another employee when the former employee leaves the position^[4].
   2. The General Fund, Institutional Trust Funds, and Special Funds may only be used to reimburse an employee for the cost of maintaining a professional license or certification if the license/certification is a condition of employment. Any fees directly associated with initially obtaining that license or certification are not reimbursable^[5].
8. Contributions to external non-profit organizations: University Policy 602.5, “Contributions to Non-Affiliated Agencies”, prohibits the use of state appropriated funds to contribute to external nonprofit organizations, and other University funds should generally not be used to make contributions to external organizations. However, discretionary funds may be considered on a case-by-case basis for contributions to non-profit organizations if all of the following criteria are met (must be approved in advance by Treasury Services):
   1. A substantiated business purpose consistent with the mission/purpose of the related University department can be demonstrated that will provide a benefit to the University as a result of the contribution;
   2. No conflict of interest (or perceived conflict) is created as a result of the contribution; and
   3. The recipient organization must be a bona fide nonprofit organization recognized by the IRS, and such a contribution does not threaten the tax exempt status of the University or its affiliated entities.

Related Resources

• University Policy 601.8, Appropriate Use of University Funds
• University Policy 602.11, Gifts, Awards, and Prizes
• University Policy 601.15, Control and Management of University Equipment and Other Property
• Allowable Fund Usage Table
• University Financial Management Guidelines
• North Carolina Budget Manual

Revision History

• Initially approved May 1, 2017
• Updated May 12, 2017
• Revised July 10, 2017
• Revised April 29, 2019
• Revised March 6, 2020
• Revised April 1, 2021
• Revised March 23, 2022

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^[1] UNC Charlotte’s accountable plan, as established per IRS Regulation Section 1.62-2 (c-g) & (i), requires employee requests for reimbursements to be made within 60 days after the expense is paid or incurred in order for the reimbursement to be excluded from the employee’s wages and not subject to withholding taxes. Requests for reimbursements such as those made on a Direct Pay Request (DPR) or travel reimbursement form made after the 60-day period will be included in the employee’s gross income and reported as wages or other compensation on the employee’s Form W-2.

^[2] The gross-up calculation can be found on the Financial Services website: https://finance.charlotte.edu/resources/tax-office/gross-calculation/.

^[3] The moving expense procedures can be found on the Financial Services website: https://finance.charlotte.edu/resources/controllers-office-payroll-department/unc-charlotte-moving-expense-procedures/.

^[4] Refer to OSBM Budget Manual, Section 6.4.5, “Membership Dues.”

^[5] Refer to OSBM Budget Manual, Section 6.4.6, “Academic Assistance – Tuition, License, and Certificate Fees.”

Last Updated: March 23, 2022

Purpose

The purpose of this standard is to provide guidance on the requirements for the use of University funds to pay for marketing and development expenses using University funds for a valid University business purpose.

Scope

This standard applies to all situations where University funds are used.

Contacts

Direct any general questions about this standard to your department’s business officer or fund administrator. If you have specific questions, please refer to the contacts for fund use guidance listed in Appendix 1 of the University’s Financial Management Guidelines.

Standard

1. Advertising, Marketing, and Promotional Items:
   1. For purposes of this standard on fund usage, “Advertising, Marketing, and Promotional Items” includes, but is not limited to, items such as advertising space, pens, pencils, erasers, water bottles, coffee mugs, ties, scarves, and key chains. It does not include informational documents and notices and signage for instructional activities, student support services, student activities, or faculty or staff recruitment; these expenses are not subject to the fund usage limitations described here.
   2. Discretionary funds may be used for advertising, marketing, and promotional expenses.
   3. General Funds, Institutional Trust Funds, and Special Funds can only be used for advertising, marketing, and promotional expenses if appropriated or received for this purpose (per OSBM Budget Manual, Section 4.10).
      1. Acceptable fund sources for advertising, marketing, and promotional items include graduate tuition increments, student fees, extension instruction fees, and sales and services revenues.
      2. These funds may be used to purchase articles of clothing only if they meet a security or safety need; prior approval from the University Budget Office is required for any purpose unrelated to safety/security.
2. Amenity: Discretionary funds may be used to purchase amenities. An amenity is a gift item that helps to build, strengthen and promote relationships with groups and individuals, on and off campus. These expenditures are appropriate for the Chancellor’s Office and University Advancement, and for officially sanctioned for University activities, such as commencement, convocation, or official staff recognition activities.

Discretionary funds are the only types of funds that may be used for cultivation of donors and potential donors and development of community and institutional relationships, which may include business meals, entertainment, and amenities (refer to the Standard on Meals and Entertainment for additional guidance).

Related Resources

• University Policy 601.8, Appropriate Use of University Funds
• Standard for Meals and Entertainment
• Allowable Fund Usage Table
• University Financial Management Guidelines
• North Carolina Budget Manual

Revision History

• Initially approved May 1, 2017
• Updated May 12, 2017
• Revised July 10, 2017
• Revised December 21, 2017

Last Updated: December 21, 2017

Purpose

The purpose of this standard is to provide guidance on the requirements for the use of University funds to pay for meals or entertainment, all of which must have a valid University business purpose.

Scope

This standard applies to all situations where University funds are used.

Contacts

Direct any general questions about this standard to your department’s business officer or fund administrator. If you have specific questions, please refer to the contacts for fund use guidance listed in Appendix 1 of the University’s Financial Management Guidelines.

Standard

1. Business Meals: A business meal is defined as a meal that has substantive and bona fide business purpose deemed essential to the University’s mission. Business meals generally fall into the following categories:
   1. Meals while an individual is in travel status: Meals paid for by a traveler using their personal funds while in travel status are generally reimbursable at State subsistence rates. Refer to Section IV.3.4, “Subsistence – Meals” of the University’s Travel Manual for specific guidance.
      1. All types of operating funds may be used for meals while in travel status (unless specifically restricted). Discretionary funds may be used for the excess costs over the state subsistence amount, and may also be used if the event has valid University business purpose but does not meet all of the North Carolina Budget Manual requirements. Refer to Section IV.3.4 of the University Travel Manual for specific guidance on documentation requirements and the Allowable Fund Usage Table for additional guidance.
   2. Recruitment meals and other non-travel related meal expenses: Transportation and subsistence expenses incurred on behalf of an interview candidate are generally reimbursable. Refer to Section IV.3.8, “Job Candidate and Non-travel Meal Expenses” of the University’s Travel Manual for specific guidance.
      1. Recruitment meals must include the participation of the candidate being interviewed and may include more than one University employee. Guests of the candidate and the employee may attend for a valid University business purpose (e.g., attendance improves the chances for a successful recruitment outcome). The General Fund, Institutional Trust Funds, or Special Funds may be used to pay for the candidate; however, only Discretionary funds may be used to pay for the candidate’s guest, the employee and the employee’s guest. The General Fund, Institutional Trust Funds, or Special Funds may only be used to pay for the employee’s meal if the employee is in travel status per the North Carolina Budget Manual^[1]

Purpose

This standard serves as a supplement to Section II.C.3 of University Policy 602.12, Revenue Generating Activities. This standard provides guidance on managing revenues and expenditures resulting from department operations, including those related to activities that formerly were a recharge unit (RU) but no longer qualify as such.

Scope

This standard applies to all revenue-generating activities by campus departments where revenue is recorded in the 13XXXX fund range, including situations where a recharge unit operating with a 13XXXX University fund number is determined to no longer qualify as a recharge unit and must inactivate the fund number(s) associated with the activity. The existing fund number will be replaced with a fund number in the 150000-150020 range.

Contacts

Direct any general questions about this standard to your department’s business officer or fund administrator. If you have specific questions, please refer to the contacts for fund use guidance listed in Appendix 1 of the University’s Financial Management Guidelines.

Standard

1. Revenue generation: All revenue generating activities must support the University’s mission of teaching, research or outreach. These activities are not a source of discretionary funding.
2. Business plan: The revenue activity of a former RU may continue within an established business plan that addresses the following:
   1. An initial projected budget and business plan should be included with the request for a new 15XXXX fund and submitted to Financial Services and Legal Affairs for approval. Any subsequent changes to the business plan must be provided to Financial Services.
   2. A signed service agreement must be in place prior to the delivery of goods or services. A copy of the executed service agreement must be included with the business plan.
   3. Rates charged should approximate the cost of goods or services provided. The rate calculation should be adjusted periodically to reflect current costs.
   4. The business plan should provide sufficient detail about the nature and type of expenditures to be incurred as part of the planned activity.
   5. The plan should identify the business officer or fund administrator within the department responsible for managing the fund to be used for the planned activities (e.g., the individual responsible for processing the receipts generated by the activity and making the related expenditures).
   6. The goal is for these activities to operate close to break-even. If a minimal surplus occurs, the business plan should describe how any surplus will be applied for the purpose of delivering the goods or services in a future period. Surpluses may not be transferred to another fund without approval from Business Affairs.
   7. Any gifts received by the department must not be deposited into this fund. Gifts must be processed through The Foundation of the University of North Carolina at Charlotte, Inc., as described in University Policy 602.2, Solicitation and Acceptance of Gifts.
3. Expenditures: Expenditure guidelines are the same as those for other unrestricted trust funds. Any usual and customary business expense related to the delivery of the good or service is permissible, such as:
   1. Salaries, wages
   2. Supplies
   3. Equipment
   4. Scholarship assistance
   5. Other costs directly associated with providing the good or service
4. Non-permissible expenses:
   1. Donor solicitation expenses
   2. Alcohol and entertainment expenses
   3. Expenses that confer a personal benefit
5. Annual report: By September 30 each year, the department conducting the revenue-generating activity is required to provide an annual report to Financial Services summarizing the program activity for the most recent fiscal year ending June 30. As part of the report, the department should include any adjustments needed to the previously approved business plan or rate calculation. The department’s annual report should also include a statement that re-affirms the department’s adherence to the related University Policies and Standards governing the revenue generating activity.

Related Resources

• Appendix: Template for Business Plan (Coming soon)
• Appendix: Template for Service Agreement (Coming soon)
• University Policy 602.12, Revenue Generating Activities
• University Policy 602.2, Solicitation and Acceptance of Gifts
• Recharge Unit Procedures Manual
• University Financial Management Guidelines

Revision History

• Initially approved November 14, 2024

Purpose

The purpose of this standard is to provide guidance on the requirements for the use of University funds to pay for student-oriented activities using University funds for a valid University business purpose.

Scope

This standard applies to all situations where University funds are used.

Contacts

Direct any general questions about this standard to your department’s business officer or fund administrator. If you have specific questions, please refer to the contacts for fund use guidance listed in Appendix 1 of the University’s Financial Management Guidelines.

Standard

Discretionary funds and Student Auxiliary and Student Fee Funds may be used for student-oriented activities (instructional and non-instructional). Student-oriented activities are academic and student-life related events such as new student receptions, scholarship presentations, and student government activities. The purchase of food or beverage for employees is not allowable from Student Auxiliary and Student Fee Funds unless the employee is in travel status per the North Carolina Budget Manual (refer to the Standard on Meals and Entertainment for additional guidance on food and beverage expenses for employees).

The General Fund may be used for certain instructional student-oriented activities if approved by the University Budget Office. The purchase of food or beverage for students is not allowable from the General Fund unless the student is in travel status per the North Carolina Budget Manual^[1] (refer to the Standard on Meals and Entertainment for additional guidance on food and beverage expenses for employees).

Related Resources

• University Policy 601.8, Appropriate Use of University Funds
• Standard for Meals and Entertainment
• Allowable Fund Usage Table
• University Financial Management Guidelines
• North Carolina Budget Manual

Revision History

• Initially approved May 1, 2017
• Updated May 12, 2017
• Revised July 10, 2017​

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^[1] Refer to OSBM Budget Manual, Section 5.7.3, “Post-secondary Students.”

Last Updated: July 10, 2017

State Purchase and Contract

Contains information on purchase and contracts, vendor resources, commodity codes, statewide term contracts, weekly fuel prices, staff contacts, agency contacts, bid opportunities, procurement rules/manuals as well as the procurement information portal.

Last Updated: January 7, 2022

State Surplus Property

Site contains information on state surplus property for sale including auctions, and retail store hours and locations.

Last Updated: January 7, 2022

State Term Contracts (NC Department of Administration)

The Division of Purchase & Contract is dedicated to providing quality products and services at the best available price.

Last Updated: January 7, 2022

PURPOSE/SCOPE

This policy, in accordance with University Policy 602.7, Travel Authorization and Reimbursement, and in consideration of Internal Revenue Service (IRS), Office of State Budget and Management (OSBM), and other applicable regulations and guidance, establishes when the University will provide payment for third party lodging expenses incurred to support University business purposes, along with related administrative requirements.

These requirements apply to all UNC Charlotte faculty, staff, students, and any other individuals and members of organizations that travel at University expense (after this, “Travelers”).

DEFINITIONS

Third Party Lodging: An establishment that is rented out by a third party or treated as an apartment building by state or local law or regulation. This includes most non-hotel facilities and those rented out via sites like Airbnb and VRBO.

Rental Agreement: A signed agreement between the University Traveler and the Third Party Lodging establishment.

REQUIREMENTS FOR AUTHORIZATION

Per the North Carolina Budget Manual, authorization for third party lodging arrangements must be approved prior to travel. Submit the following documents to Disbursements no less than two weeks before the travel dates:

• Third Party Lodging Authorization Request, which demonstrates:

  • Evidence of cost savings to the State OR

  • If there is no evidence of savings to the State, please justify why a policy exception is necessary by providing an explanation and sufficient documentation. Justification may include, and should not be limited to, reasons such as safety and security issues, limited choices of hotels in remote areas, etc.

• Quote for third-party lodging location

  • Copy of planned rental agreement or other applicable unsigned document (i.e., a screenshot of the desired location from the web page, which shows all costs and fees itemized)

Note: third party lodging agreements are not allowed among family members

• Three hotel quotes for cost comparison.

  • When obtaining comparison quotes, please use the following criteria:

    • Three- and four‐star hotels from a travel/hotel booking website (e.g., Hotels.com, Expedia).

  • Search for hotels close to the conference or business site.

After a review of required documentation listed above, Disbursements will notify the traveler and departmental contact via email if approved or denied.

PROCEDURES FOR REIMBURSEMENT

To be reimbursed for third party lodging, submit the following:

• Approved Third Party Lodging Authorization Request with the Travel Reimbursement & Expense Report.

• A copy of the signed rental agreement or other applicable documents (e.g., Airbnb agreement).

• Paid itemized receipt, if separate from the rental or other signed agreement.

All employees must comply with the procedures supplemental to these requirements.

Rev. 4/18/18, 9/8/18, 7/29/21

Last Updated: July 29, 2021

How does Concur handle expenses incurred in a foreign currency?

Purpose: Effective August 8, 2024, international travel will be managed in Concur, which automatically converts expenses incurred in a foreign currency to U.S. dollars using the appropriate exchange rate.

Last Updated: September 12, 2024

eCFR :: 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

Purpose: To provide requirements for financial management, monitoring and reporting for Federal funding.

Last Updated: January 12, 2023