Policies for Selected Discretionary Expenditures

RIT departments and employees incur a variety of business-related expenditures that contribute to and support the mission of the University. All business-related expenditures are expected to comply with the following guidelines. They must be:

• Reasonable and necessary
• Authorized by appropriate individuals with budget authority
• Consistent with RIT’s mission
• When applicable, in compliance with restrictions and other conditions specified by external funding sources

RIT's discretionary policies provide specific guidelines for use in identifying the circumstances for, as well as the appropriateness of, incurring costs for selected expenditures.

Note: The absence of a specific policy does not mean the expenditure is allowable. Contact the Controller’s Office for guidance before incurring a discretionary expense not specified here.

Several of the selected business-related expenditure guidelines below reference upper limits for spending. Actual approval and reimbursement of authorized/allowable expenditures is at the discretion of the department head or appropriate dean/vice president based on the availability of funding. Department heads or deans/vice presidents may impose more restrictive guidelines within their division than those outlined here.

All University funds including operating accounts, gifts, endowment earnings, discretionary funds and grants/contracts, are expected to be expended in a reasonable and prudent manner and only for business related activities that support RIT’s mission. Under no circumstance may University funds be expended for goods and services that do not have a clear business purpose and/or are personal in nature. In addition,

• Expenditures must be compliant with University policies and procedures.
• Funds must be available to support the expenditure (i.e. deficit spending is not permitted).
• When paid from restricted funds (e.g. gifts and endowment earnings), the expenditure must comply with the restricted purpose stipulated by the donor.
• When paid with sponsor funds (e.g. grants and contracts), the expenditure must be allowable and comply with the sponsor’s guidelines.
• Requests for reimbursement must be accompanied by appropriate documentation (i.e. original receipts with an explanation of the business purpose including who, what, where, when and why). Refer to Employee Reimbursements under an Accountable Plan for more information.
• Requests for payment and/or reimbursement are subject to review and approval by an individual one level of management above the requestor. Approvers are expected to be prudent and exercise sound judgment, ensuring that each expense is reasonable, allowable, and in full compliance with the policies outlined in this document.

Alcohol-related expenditures are unallowable except for the following circumstances:

• In situations where business related activities occur which are related to the mission of the University and involve individuals external to the RIT community, expenditures for alcoholic beverages are generally allowable.
• Alcoholic beverages may be allowable at University sponsored events when approved by the division vice president. When an event is held on campus, a qualified vendor licensed by Monroe County must be engaged (either RIT Catering or a third-party caterer). The vendor must provide a certificate of general liability insurance as well as a valid NYS liquor license and appropriate liquor liability coverage for the purpose of providing and serving these beverages. See the Institute Policies and Procedures Manual Policy C15.2 for the University’s alcohol policy and Policy C20.0 for the University’s vending policy.
• Regardless of the funding source or business purpose, when allowable, expenditures for alcoholic beverages must be charged to object code 79050 (government unallowable charges) or 90290 (government unallowable chargeback).
• While expenditures for meals are allowable when traveling out of town on University business, reimbursement for alcoholic beverages consumed as part of the meal or otherwise is not allowable.  
• Under no circumstances may alcoholic beverages be charged to federally funded grants or contracts, either directly or indirectly.

All RIT Apple Computers, iPad's, Apple TV's and Apple Watch's must be purchased through the RIT Campus Store, to enable Apple Device Enrollment.

Entertainment expenses are generally unallowable except for the following circumstances:

• Community Functions – It is important and appropriate for RIT to be represented at various community functions and events sponsored by other organizations with which the University may have a relationship or have other reasons to participate and support such events. Purchase of tables at community functions must be approved by the appropriate dean or vice president and coordinated through the Office of Government and Community Relations. Direct all requests for sponsorship funding from RIT and/or invitations to purchase tickets and/or tables for such events to Government and Community Relations. This process enables the University to ensure that RIT is appropriately represented and avoids unnecessary duplication.
• Official Guests of the University – Those business entertainment expenditures that are allowable involve official guests of the University including prospective donors, employees, and students; dignitaries; distinguished alumni; and, other individuals involved in contributing to and furthering the mission of the University. When planning entertainment for guests of the University, costs should be reasonable in relation to the nature of the event. Departments are encouraged to arrange on-campus events through RIT Catering. 
• Recruitment – Entertainment expenses for recruitment of prospective students, faculty and staff and official guests of the University such as donors and potential donors, visiting lecturers and scientists, visitors from foreign countries, representatives of research organizations, visitors from other universities, individuals interested in RIT programs and initiatives, and guests invited to assist in the development of new programs or to evaluate existing programs, alumni, business and community leaders, will be reimbursed if approved as reasonable and necessary by an authorized individual. Departments may elect to set internal limits for such expenditures. The appropriate dean or vice president must approve expenditures over $50 per person.

Business meals are allowable under the following circumstances:

• Meals taken with business associates and professional colleagues outside of the University, job applicants, prospective students or donors/prospective donors, and/or guests of the University, during which University business-related discussions take place.
• When authorized by the department head, business meals may also be reimbursable when the purpose is Employee Reward, Recognition or Achievement (more on that below).
• Meals at on-campus dining establishments: Reasonable expenditures for business meals between two or more University employees scheduled during the lunch or dinner hour (when no other time is available to meet) during which University business is discussed.
• Meals while traveling: Faculty, staff and students may be reimbursed for approved, necessary and reasonable meal expenditures related to RIT business. For trips that do not include an overnight stay, the employee must submit itemized meal receipts for reimbursement. For trips that do include an overnight stay, either the per diem method or receipt method may be used when requesting reimbursement. For additional details on per diem, refer to the RIT Travel & Expense policy page. 

Unallowable:

• Off-campus meals with two or more University employees, which could have been conducted during regular business hours.  
• Meals considered to be personal in nature. These include but are not limited to parties or meals for employee birthdays, weddings, births, showers, boss’s day or parties and events not sponsored by the University.  
• Alcohol consumed as part of the meal or otherwise is not allowable.  

Expenditures to reward and recognize employees for achievements including length of service are allowable provided they are reasonable and given infrequently.

• Note: Gifts given to employees, including raffle prizes, may be taxable and added to the employee’s W-2 wages.
• Occasional small-dollar gifts (given no more than once per year to a single recipient valued at $50 or less) of cash, gift certificates, and gift cards, and tangible personal property (including clothing with an RIT logo) intended to reward and recognize employees are allowable. Cash and cash equivalents awarded to employees are taxable to the recipient, regardless of the dollar amount. Refer to the RIT Gifts Given Form on the Controller’s web site for more information.
• Length of Service – Employee length of service awards are provided through RIT's official recognition programs administered by the Human Resources Department. Refer to the Human Resources web site for more information.
• Retirements – Gifts made to employees upon retirement from the University are allowable. A general guideline is $10 for each year of service, to a maximum of $400. Such gifts are not taxable provided they are tangible personal property. Gifts of cash and cash equivalent are taxable to the recipient regardless of the dollar amount. 
• Unallowable: Gifts to employees in lieu of compensation.

University departments may incur an expense, in the form of a gift, on behalf of an employee or an employee's immediate family under the following circumstances:

• Death of an Employee or an Employee's Immediate Family Member (as defined by Human Resources). Memorial gifts such as flowers or a donation to a charitable organization are allowable up to $100*. RIT should be acknowledged as the sender (i.e., from your friends and colleagues at RIT department XXXX).
• Donors, Potential Donors, or Friends of the University – Gifts of this nature are allowable with proper review and approval by the divisional Development/Alumni Relations representative.
• Gifts to Government Officials – Under current Federal and State laws, there are strict limitations with respect to gifts of any kind to Government Officials, whether elected or appointed, including staff of any legislative office or agency. Members of the RIT community are directed to consult with the Office of Government & Community Relations on any matters related to recognition gifts of any kind to government officials.
• Extended Illness of an Employee or Student – Gifts of flowers, fruit baskets, etc. are allowable up to $50. *
• Length of Service – See Employee Reward, Recognition or Achievement
• Retirements – See Employee Reward, Recognition or Achievement

Unallowable:

• Gifts to employees, in lieu of compensation.
• Holiday gifts and/or gifts to honor an individual for personal reasons are not allowable or reimbursable from any University funding source; employees must bear the costs of such gifts. Gifts considered to be personal in nature include but are not limited to those related to birthdays, weddings, births/adoptions, showers, administrative professional’s day or boss’s day.

*The maximum allowable expenditure amount includes the cost of the gift and all applicable charges including but not limited to delivery, shipping and handling, etc.

Refreshments provided at University or departmental business functions such as staff meetings, committee meetings, business presentations, or in honor of University guests are allowable. Such expenses should be reasonable and may be incurred periodically.

• Annual Holiday Parties and Summer Picnics – such expenses are allowable provided they are reasonable in scope and include all employees within the department. While such events play an important role in the University community, it is also important to be fiscally responsible regarding the use of University funds. The upper spending limit for such events is $40 per person per fiscal year. Activities must be authorized by the appropriate dean or vice president. While exceptions to the upper limit are discouraged, they may be approved by the appropriate division vice president when complete and proper justification is provided.
• Employee Events – Expenses associated with employee business events, (e.g., receptions, open houses, retreats, awards ceremonies, etc.) that complement the University’s and/or department's mission and goals and foster a sense of community among faculty, staff and students are allowable. Expenses of this nature typically include light refreshments, facility rental costs and catering services. Alcoholic beverages may be allowable when the event is sponsored by the University and approved by the division vice president (see Alcoholic Beverage section). Alcoholic beverages are generally not an allowable expense when the activity is not sponsored by the University; however they may be provided through personal provisions.
• Retirements – Expenses associated with hosting an on-campus reception to honor employees who retire or leave RIT are allowable but limited to light refreshments. Alcoholic beverages are not an allowable expense but may be provided through personal provisions.
• Government Officials – Current Federal and State laws include restrictions on hosting elected and appointment government officials for meals. In general, all RIT employees are prohibited from providing meals for government officials even if the meal is provided while conducting university business. There are limited exceptions, such as participation in "widely attended events", a general university reception or if the food provided is limited to appetizers or "finger food". To ensure compliance with Federal and State laws, members of the RIT community are directed to contact the Office of Government & Community Relations before inviting any government official to an RIT sponsored event that involves hospitality services.

Unallowable: 

• Expenditures associated with birthdays, weddings, anniversaries, holidays, and employee promotions are not allowable. Participants are expected to bear costs associated with such events.
• Expenditures related to community or social events (e.g., concert tickets, sporting events, golf tournaments, cultural events, etc.) are not allowable unless a connection to the University’s mission can be clearly demonstrated and are approved by the appropriate dean or vice president.

The following memberships, dues, and professional certification or licensing fees may be paid by RIT only if there is a direct benefit to the University:

• Dues, professional licenses, and certification or testing fees that are related to an employee's job duties and memberships that name the University (or department) as the member.
• Individual (employee) memberships with work related benefits including memberships in professional organizations related to an individual's job specialty, whether academic or non-academic. The University must derive specific benefits such as access to useful information not otherwise available.
• Membership in community, civic, service or private organizations for the president or other senior administrators as approved by the president if their duties include significant responsibilities to represent the University in the community.
• University (or department) memberships in an organization with specified named members as authorized representatives. The job duties of named members must be related to the purpose of the membership.

Unallowable:  

• Memberships in community, civic, service or private organizations (except as noted above), fraternal organizations, political organizations and non job-related professional societies.

Refer to Gifts section (above).

• The University is classified by the IRS as a tax-exempt, charitable organization. As such, donations made by the University to other charitable organizations (with the exception of memorial gifts as outlined in Gifts section above) should be made under extraordinary circumstances only.

Payments to such organizations must include documentation explaining the nature of the donation, and the relationship to RIT. All payment requests of this nature must be approved by the appropriate dean or vice president.

• Purchase of temporary reserved parking permits for visitors through RIT Parking is allowable. However, payment or reimbursement of parking tickets, even when incurred during the course of University business, is unallowable except for donors or friends of the University (only if the sponsoring department is willing to pay for the ticket).
• Use of University funds to pay for reserved parking passes for RIT employees is unallowable.

• Expenditures for prizes and awards may be allowable provided they are for employee reward, recognition or retirement (refer to this section above).
• Expenditures for prizes and awards given to students to enhance student life are also allowable provided they are reasonable and only given occasionally. Refer to the RIT Gifts Given Form available on the Controller’s Office web site for more information.

Unallowable:

• Prizes and awards in lieu of compensation.

• Subscriptions for journals, magazines or newspapers for department use are generally allowable provided that a clear business connection is established.
• Unallowable: Expenses for subscriptions that benefit individual faculty and staff.

Travel for fundraising, professional development, recruitment and scholarship is allowable. Refer to RIT's Travel & Expense Policies for detailed information on travel-related expenditures. 

A Wireless Communication Device (WCD) includes any device such as a cell phone, tablet, or internet hotspot that enables employees to communicate for business purposes.

Allowances for personal cell phones and home internet plans are unallowable. Employees may request reimbursement for specific expenses such as an international data plan purchased due to foreign travel or internet access fees incurred while traveling on University business, consistent with other applicable University policies (e.g., the Travel Policy), provided the expenses are incurred specifically for University business and supported by appropriate documentation.

RIT maintains contracts with Verizon and AT&T. University-issued devices under these contracts will be limited and provided primarily for positions and employees who meet the following criteria, as documented in their position descriptions:

• Positions that require a WCD to perform essential duties (e.g., ITS Incident Manager on Call, Housing Mechanic).
• Employees who use the device primarily for University business, with only minimal personal use. In this context, “minimal personal use” is defined as so small, minor, or insignificant that tracking it would be unreasonable or impractical (similar to personal use of a University-issued laptop or desktop). Assignment of RIT-owned cell phones to employees who meet this criterion requires approval from the divisional Vice President or their designee.

To request a university-owned device, contact your group’s Verizon or AT&T rep (if applicable) or email Rick Roeser. More details regarding WCDs (including FAQs) can be found by clicking HERE.

In certain situations, it may be appropriate to deviate from policy - such as when doing so results in cost savings in another area. This should be justified in advance, and documented approval must be included with the expense report. Exceptions to Policy must be approved by the applicable dean or vice president.

• Approval for exceptions at the dean level must be granted by the provost; exceptions at the vice president’s level must be approved the president.
• When a vice president's approval is required, the request should be escalated by the dean or department head.