Accounts Payable
Delivery on a COD basis should be strongly discouraged. If this is a requirement from a vendor, then the company must supply Bradley with an invoice. The invoice must be approved by the department head.
Departments also have the option of placing orders themselves with companies who will accept a purchase order number and do not require a copy of the actual purchase order. This is referred to as a Confirming Purchase Order. Before the order is placed, the department needs to fax a completed requisition to 677-3610. Once the Purchasing Department verifies that the information and approvals are correct, and that there are sufficient funds available, the department will be notified with the purchase order number to reference when the order is placed. The department needs to notate the purchase order number on the original requisition before it is forwarded over to the Purchasing Department. Failure to notate the purchase order number may result in another purchase order being created. Different people within the Purchasing Department handle standard purchase orders and confirming purchase orders. The Purchasing Department will create a purchase order and hold it in a file until the original requisition marked CONFIRMATION with the purchase order number notated, is forwarded to the Purchasing Department and processed in the previously mentioned manner, except this purchase order will be noted CONFIRMATION ORDER DO NOT DUPLICATE. Purchasing will not mail or fax a confirming order.
All Bradley University personnel engaged in procurement and related activities must conduct business dealing with vendors in a manner above reproach in every respect. The conduct of Bradley personnel in addition to being in compliance with the Purchasing Department policies and regulations of Bradley University must be such that the individual would have no reticence about making full disclosure of his/her conduct.
The Bradley University Travel Card program has been established to provide a convenient means with which to make travel purchases and arrangements, and at the same time, reduce the costs associated with initiating and paying for these purchases. Employees traveling on a regular, recurring basis are encouraged to apply for a Bradley Travel card. Employees traveling out of the country MUST obtain a Bradley Travel card. Each cardholder must be pre-approved with determined monthly transaction limits. This card must be used for all pre-approved university related business travel, including conference registration, hotel, airline, rental car and gasoline. In most cases, meals should not be charged on the Bradley travel card. Meals are reimbursed to the employee after travel based on the meals and incidental per diem allowance. For all other travel, the University will reimburse a traveler for items paid personally after travel has taken place. Cardholders on University travel are subject to the travel policies and procedures as outlined in the Faculty Handbook and the Administrative Handbook. Additionally, many of the principles in the Bradley University Travel Expense Reimbursement and Procedures apply as well. Please contact the Purchasing department for an application to apply for a Bradley Travel card or to inquire on other options for payment of travel related expenses.
The Bradley University Procurement Card program has been established to provide a convenient means with which to make purchases, and at the same time, reduce the costs associated with initiating and paying for those purchases. The academic or administrative department is responsible for managing its cardholder’s accounts. Each cardholder must be pre-approved by the department chair, dean, or vice-president. The card is issued to a University employee for the purpose of making authorized purchases on the University’s behalf. The University will issue payment for charges made. The card can be used for subscriptions, web purchases, local purchases, and with companies who don’t take purchase orders. Please contact the Purchasing Department if you feel your department could benefit from having a Bradley Procurement card.
Materials, supplies, machinery, and component parts purchased by the University for use in the construction of a specific and predetermined piece of equipment will be purchased with funds from the department’s account. When the construction of such equipment is completed, and if the completed item is worth $1,000 or more, the user department is responsible for notifying the Property Accountant, at ext. 3116 in the Controller’s Office, of the name of the constructed piece of equipment, date of completion, total cost including the purchase price of any materials, supplies, machinery and fixtures used, any applied freight charges and all construction and installation costs, including labor and contractual services. This information is used to maintain an up-to-date capital inventory by department and building for capitalization and insurance purposes.
Bradley University is registered with the State of Illinois to purchase Federal Surplus materials and equipment through the office of the Federal Surplus Property Utilization Section, State of Illinois. For information concerning this service contact the Purchasing Department
Purchases of supplies, services or equipment that exceed $25,000 are subject to a formal bid request, defined as a written solicitation to at least three interested and qualified vendors and containing complete and unrestricted specifications to permit free and full competition. It must also include quantity, quality, delivery requirements and all other pertinent data, so all factors can be weighed in determining the successful bidder.
The only type of purchasing that will be excluded from formal bidding procedures are:
- Sole source of supply
- Blanket purchase arrangements
- Standardized equipment
- Emergency purchases
- Executive directive
- Geographical location
Departments that do their own product and vendor selection by the formal bidding process will retain all bid information in their department.
Purchase of equipment or services made with federal funds must also comply with the Procurement Guidelines for Purchases Made with Federal Funds.
An invoice is the itemized statement of merchandise and/or labor supplied by the vendor. The invoice is based upon the purchase order and should contain the comparable information. All invoices will be sent directly to the Purchasing Department. Upon their receipt, the invoice will be checked against the purchase order for accuracy, discount, and back orders. The Purchasing Department’s stamp is affixed and the purchase order number and department account is entered on the invoice. The invoice is then faxed, scanned and e-mailed to the department, or sent to the department with a form letter indicating that they are to approve the attached invoice and/or supply the correct account number. By approving the invoice, the department is verifying that the merchandise/service has been completed/received in good order. No invoices are to be held in the department. If there is a problem or payment is to be delayed, a note should be affixed to the invoice and returned to the Purchasing Department. The terms of the invoices are the guide to the date of payment so that any cash discounts can be taken.
Requisitions and invoices that are not related to a purchase order must be received before 5 p.m. on Monday in order to be processed in the following week’s check run, i.e. check requests received by 5 p.m. on Monday, August 7, will be available after 3 p.m. on Tuesday August 15. Lack of information or proper authorization could delay the processing. Business purpose should be obvious; otherwise it should be notated on the detail. Higher signature authority is required on memberships and dues; i.e. directors can not sign off on their own memberships, even though they have sign off authority on the account.
Requests for Honorariums and Awards need to be submitted on a timely basis in order to meet the time restraints of the check run. Manual checks are strongly discouraged. The department needs to allow enough time for the Honorarium or Award to go through the proper channels for authorization. Awards involving students need to be approved by the Financial Assistance Director, the Payroll Director, and possibly Grants and Restricted Funds or Endowment personnel. If the student is on the university payroll system, the award will be processed in a subsequent payroll and the appropriate taxes will be withheld. If the student is not on the university payroll system, the Accounts Payable department will mark the student as a “1099 vendor” and process a check. The appropriate tax forms will be completed at year end.
Departments paying honorariums or using the services of an independent contractor (non-Bradley employee) must complete the Determination of Independent Contractor Status document. The Independent Contractor form must be on file with Accounts Payable before any payment is made to an Independent Contractor. See Independent Contractors Form & IRS Form MISC 1099 for a form and instructions.
The Purchasing card (Pcard) program has been established to provide authorized faculty and staff with a convenient and efficient means of purchasing regularly consumed supplies and services needed for University business. The University P-Card is a credit card issued from Commerce Bank and should be accepted by any supplier that accepts VISA. When making a purchase with a P-Card, cardholders do not need to complete and forward a purchase requisition to the purchasing department. The purchase transaction is accomplished completely between the cardholder and the supplier.
The cardholder is responsible for maintaining itemized receipts, with complete supporting documentation for all purchases on the card. At the end of each month the cardholder is responsible for verifying each charge, assigning a valid general ledger account number and business purpose in the allocation process on the Commerce Bank Control Pay Advance (CPA) website. The cardholder electronically routes the statement for approval by the department chair/administrator and/or Dean/VP who have been designated the signature authority over the card/accounts. The cardholder is also responsible for printing his/her statement from the CPA website, attaching all supporting documentation, obtaining any approvals not otherwise secured electronically, and forwarding the completed statement to the Purchasing Office for review.
Purchasing Card Policy Guide
Receiving a Pcard
A complete Purchasing Card Application Form (link to Purchasing Card Application
Form) must be submitted for each prospective cardholder. This form must be signed by the cardholder, account manager/department heads, and be approved by the Dean or Vice-President. Completed forms are sent to the purchasing department of the Controller’s Office for approval. Students can not be cardholders. The Controller’s Office reserves the right to review and change (if necessary) any or all of the cardholder purchase limits. Once the application has been approved, the bank is notified to issue the card. Prior to receiving the card all cardholders must sign the Purchasing Card Agreement (link to Purchasing Card Agreement Form).
Replacement Card
University Pcards expire every three (3) years. Authorized cardholders shall be provided with a new card automatically. Upon receipt of a new card, it is the cardholder’s responsibility to destroy the expired card.
Lost or Stolen Cards
The card is University property and should be kept in a secured location. It is the cardholder’s responsibility to keep the card account number confidential. The cardholder is the only person authorized to use the card. If a card is lost or stolen, the cardholder should:
Notify the University Pcard Administrator immediately at 677-3229.
Notify Commerce Bank Cardholder Support immediately at 1-800-892-7104.
A bank representative is available 24 hours a day, 365 days a year. Upon verbal notification of a lost or stolen card, the bank will block any further use of the card. A replacement card with a new account number will be issued.
Changes or Revision to Limits
Any revision to a cardholder’s predetermined purchase limits should be requested in writing by the department chair/administrator, and sent to the University Pcard Administrator. The request should state the proposed limits and the specific university reason for the change.
If a cardholder or department chair/administrator requires an emergency temporary change in a card’s limit, they should contact the University Pcard Administrator at 677-3229.
Splitting a single order into multiple orders to evade the Cardholder’s transaction limit is contrary to the Pcard policy and should not be done
Cardholder Separation from the University
Prior to separation from the University, cardholders must surrender their Pcard and corresponding support documentation to the University Pcard Administrator.
Using the Purchasing Card
The Pcard is to be used solely for substantiated University business. Personal charges made on the Pcard could be considered fraudulent and are in direct violation of this policy. Use of the card must be consistent with good purchasing practices, and comply with University purchasing policies.
Acceptable Purchasing Card Purchases:
- Office supplies
- Subscriptions
- Dues
- Publications
- Books & periodicals
- Conference registrations (if a travel card is not available)
Unacceptable Purchasing Card Purchases:
- Alcoholic Beverages
- Cash advances
- Cell phones
- Consulting Services
- Contractual Obligations
- Furniture or Equipment over $1000.00
- Insurance
- Travel expenditures
- Personal items
- Personal services
- Leases
- Moving Expenses
- Independent contractors
A cardholder determined to have made unauthorized purchases using the University’s PCard will be held liable to the University for the total of the unauthorized purchases. Unauthorized use of a University PCard can result in revocation of the cardholder’s charging privileges.
Sales Tax
The University is exempt from sales tax when purchasing tangible personal property for organizational use. All suppliers should be notified of this exemption at the point of sale. For this purpose, a tax exempt card is given when the cardholder is issued their Pcard. Additional copies can be obtained from the purchasing office in the Controller’s Office. Some merchants may require a copy of the official tax exempt letter. Please contact the purchasing department of the Controller’s Office for a copy of this letter. Internet purchases may also require a phone call to the merchant with the University’s tax exempt information.
Purchases Using Restricted Funds
All purchases charged to a restricted account are subject to the grant/contract terms and conditions and must be in compliance with the approved grant/contract budget. Any purchase deemed to be unallowable or not in compliance with the grant/contract will need to be canceled/returned to the vendor, charged to another University account, or paid for by the cardholder.
Receipts and Supporting Documentation
Original detailed receipts are required for all purchases. Detailed receipts must include supplier name, transaction date, total cost, and an itemized list of the items purchased. Each detailed receipt must support the entire charge amount. A business purpose for the expenditure must be listed.
Allocating the Charges
At the end of the Commerce Bank monthly billing cycle, the cardholder will be notified by via email that the purchases within the billing cycle require allocation on the Commerce Bank CPA website. The allocation process is detailed in the Pcard CPA Manual (link to CPA Cardholder Training Document).
The allocation process consists of validating all charges within the billing cycle by changing the default general ledger account number assigned during the application process to the correct account number, and by providing a specific business purpose for each transaction
Routing the statement for approval
A workflow has been established that will route the statement electronically through the approval process. These workflows will be confirmed with the appropriate personnel at time of setup. The statement does not require a physically signed approval as this approval is done during the electronic routing. The exception is when a purchase is made out of a restricted account that is approved by someone other than or in addition to the chair/administrator or Dean/VP who is the established signature authority over the card. In this case, each receipt must be approved before it is attached to the printed statement, or the statement must be manually routed to the appropriate person(s) for approval, prior to being sent to the Controller’s Office.
All cardholders must attach the original purchase receipts to a complete printed copy of the statement of charges. Any signature of restricted accounts as discussed above must be secured. The completed statement is then forwarded to the purchasing department of the Controller’s Office by the deadline given in the monthly email. Outstanding statements can result in revocation of the card.
Once the statement is received by the Controller’s Office it is reviewed/audited for substantiation and compliance of the program policy guidelines, and IRS rules and regulations.
Disputed Charges
Each cardholder has the right to dispute any charge they cannot identify during the allocation process. The dispute process is the responsibility of the cardholder. The cardholder should contact the merchant involved to resolve the error, or file a formal dispute form with Commerce Bank. (Please contact the University Pcard Administrator if you cannot locate a merchant telephone number.) If a cardholder chooses to file a formal dispute, they should notify the University Pcard Administrator, and obtain a copy of the dispute form. The completed form is faxed to Commerce Bank at 402-691-7839. A copy of the form should also be attached to the cardholder’s statement to support the disputed charge. Commerce Bank will notify the merchant. If the merchant cannot supply sufficient proof that the purchase was valid, the merchant will issue a refund for the charge.
Violations of Policy
Violations of rules governing use of the Pcard are evaluated on an individual basis and any action taken is dependent upon the nature and frequency of the violation.
Violations include, but are not limited to:
- Purchase(s) in restricted categories without proper approval
- Failure to allocate charges in a timely manner
- Failure to provide proper documentation for purchases
- Willful intent to disregard University Pcard, Purchasing, or Travel policy
- Failure to follow Pcard procedures
These violations can result in cardholder reimbursement of the purchase(s) in question, or revocation of the card.
The Purchasing Department will not pay in advance of delivery unless the company provides a pro-forma invoice and the department head authorizes pre-payment. This practice should be discouraged and should be used sparingly, if at all.
These guidelines are in addition to the University’s standard procurement policy and must be followed for any purchase made with federal funds.
The federal government imposes a set of standards for the acquisition of supplies, equipment and real property purchased with federal funds. Procurement procedures must comply with the standards imposed by OMB (Office of Management and Budget) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR-200).
Guidelines for Purchases
- All purchases must be in compliance with the University’s Conflict of Interest Policy. In addition, no employee, officer, or agent of the University shall participate in the procurement of goods and equipment supported by grant funds (whether federal or private) if a real or apparent conflict of interest would be involved. Such a conflict would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization that employs or is about to employ any of these parties, has a financial or other interest in the firm selected for an award or purchase. The officers, employees, and agents of the University shall neither solicit nor accept gratuities, favors, or anything of monetary value from vendors or contractors.
- The vendor or contractor that meets the required quality standards at the lowest cost should be selected. Regardless of the cost of acquisition, grant recipients are required to avoid purchasing unnecessary items. If the cost to purchase a larger quantity is cheaper than the quantity you need, federal guidelines require that only the quantity needed should be purchased.
- Equipment is defined by the OMB as “tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000”. Bradley University’s capitalization level is $5,000. The acquisition cost includes installation charges and freight.
- Debarment and Suspension: No purchases shall be made from parties who have been involved in fraud, waste or abuse. The General Service Administration’s (GSA) lists the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority, on www.sam.gov, the System for Award Management. If a grant requires expenditures totaling at least $10,000 in a fiscal year from one vendor, it is necessary to complete and document a Debarment and Suspension check on www.sam.gov before a purchase is made.
- Small, Minority-Owned, and Women’s Business Enterprise Utilization: Colleges and universities expending federal funds are required to make positive efforts to use small businesses, minority- owned firms, and women’s business enterprises whenever possible.
- The Davis-Bacon Act requires contractors and subcontractors on federally funded or assisted contracts to pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.
Purchasing Guidelines Based on Threshold
The threshold amounts refer to the total cost of the purchase. For example, purchasing three $1,200 laptops is considered to be a $3,600 purchase, not three separate items. A $85,000 equipment purchase with a $6,000 delivery/set-up fee and $12,000 in ancillary parts constitutes a purchase over $100,000.
- Purchases under $10,000 (“Micro-purchases”): Competitive quotations are not required if the prices are reasonable. Selection should be based on quality and cost. To the extent practicable, purchases must be distributed equitably among qualified suppliers.
- All Purchases (single or cumulative) over $10,000 from a single vender within a fiscal year: Written price or rate quotations must be obtained from an adequate number of qualified sources (see table below).
Specific Requirements Based on Purchase Amount
| Amount of Purchase | Specific Requirements |
|---|---|
| Under $9,999 | No competitive cost estimates required. |
| $10,000 to $24,999 | Two or more detailed cost estimates, printed from Internet search and/or in writing from vendor |
| $25,000 to $249,999 | Subject to a formal bid request, defined as a written solicitation to at least three interested and qualified vendors and containing complete and unrestricted specifications to permit free and full competition. It must also include quantity, quality, delivery requirements and all other pertinent data, so all factors can be weighed in determining the successful bidder. |
| $250,000 and more | Request for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposal must be considered to the maximum extent possible. Proposals must be solicited from an adequate number of qualified sources (at least three). Contracts must be awarded to the responsible entity whose proposal is most advantageous with price and other factor considered. Must be in compliance with 2 CFR 200.320. |
Documentation Requirements
Documentation must be maintained for single or cumulative purchases from a single vendor within a fiscal year that exceed $10,000. The documentation must be sufficient to detail procurement history. A quote is a written statement from a vendor regarding the price for a specific good or service. Quotes and bids should include specifications and qualifying characteristics considered by vendor/contractor including delivery and time frame, scope of work, references, and other relevant specifications.
Procurement and service contract documentation must contain the following:
- Basis for the vendor/contractor selection. Information showing how the University arrived at the decision to award the contract to that particular vendor/contractor.
- Basis for the award cost or price: the cost and price analysis should be documented to establish that the institution obtained a fair price.
Additional written documentation and approval(s) of the purchase is required in the following circumstances:
- A sole source purchase
- A minimum number of cost estimates and quotations are not obtained
- Lowest cost bid is not selected
Ownership of Items Purchased with Grant Funds
Grants are awarded to Bradley University, not to individual PIs. As such, items and equipment purchased with grant funds belong to Bradley University. All institutional policies regarding capital equipment, purchasing, and procurement apply.
Equipment
PIs are required to ensure the proper receipt of the equipment, track equipment, participate in inventories and notify the Controller’s Office with regard to condition, location, loss or damage to the equipment. The PIs establish maintenance procedures and records and are responsible for the operational condition of the equipment.
Please refer to Bradley University’s Property, Plant & Equipment Policy for more details on Asset Inventory, Asset Tagging, Asset Disposal, and Asset Transfer.
Debarment and Suspension Statement and Instructions to Check Status
Bradley University is subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The University must ensure “due diligence” with every major vendor to ensure that they are not suspended, debarred or otherwise excluded from conducting business with the federal government.
Prior to engaging with a vendor during your grant period, the PI must:
- check that this vendor is not excluded from receiving federal funding AND
- document that this check was conducted prior to purchasing any goods or services.
Method for checking and documenting the vendor debarment/suspension search
- Go to www.sam.gov
- Click on “Search Records”
- Use the “Quick Search” section and type in the vendor’s DUNS number
- With this Quick Search, a vendor record will note: Has Active Exclusion? Delinquent Federal Debt? (If “yes” is indicated to either question, the vendor cannot be used)
- A screen print of the search results with date stamp must be retained to document the vendor was checked prior to making any purchase.
Sole / Single Source Procurement Documentation Requirements
In accordance with University’s policy, competitive bids must be obtained for purchases of goods or services at designated dollar thresholds. If the purchaser/requestor believes circumstances justify an exemption from this requirement for one of the following reasons,
- Sole Source: There is only one vendor or person that can provide that particular or unique service / commodity and any attempt to obtain bids would only result in that person or vendor bidding on it.
- Emergency: the good or service is needed immediately to address an environmental, safety, or health emergency.
- Economic: goods or services from another vendor would result in incompatibility with existing goods or services; require substantial time of money to use due to training requirements, retrofitting, etc; and/or goods or services are offered at a substantial discount.
the purchaser/requestor must also provide additional written details and obtain the necessary University approvals, including the respective Vice President’s. The purchaser must, at a minimum, 1) Identify products/services to be approved for sole source treatment; 2) Provide the name of single source supplier/contractor, their mailing address, and their phone number; 3) Provide a list of the vendor names, contacts/contact information and date the solicitation was sent if the sole source is off of non- responsiveness; and 4) Describe the reason(s) for rejecting other products, services or suppliers. If approval is not granted, the purchaser/requestor must obtain competitive bids.
The purchase order is the vendor’s authorization to invoice and ship the material or perform a service as specified on the order. The purchase order is considered a legal document and contract between Bradley University and the vendor and under no circumstances should changes be made without the sanction of the Purchasing Department. This document is prepared from a properly authorized requisition.
The PO procedure is designed to expedite and control the purchasing of material and services for Bradley University, therefore, it is imperative that it be carefully worded and accurately prepared to minimize errors and misunderstandings. The distribution of the PO is as follows:
- Original—(white) Faxed to vendor (if not confirming) and retained in purchasing until invoiced.
- Copy #2—(yellow) Forward to central receiving department and held in an open file, alphabetically by company and number until the materials are received
- Copy #3—(green) Returned to department with the pink copy of the requisition
The following is a list of Purchasing Spending Guidelines:
- All purchases should be reasonable, practical and for valid business purposes. No purchase using University funds should benefit any individuals personally.
- All purchases for tangible items should be tax-exempt, unless the items being purchased are for resale or are being charged to an agency account. (9XXX, i.e.: student organization account, etc.)
- University credit cards are to be used for small expenditure purchases. They are NOT to be used for capital equipment purchases.
- Dean’s approval is required for all equipment purchases.
- Food and/or beverages for meetings on campus are allowed provided the expenses are reasonable and infrequent. Infrequent is defined as two or three times per year.
- For retirement gifts and receptions, the University will provide up to $15.00 per year of service towards the event/gift cost.
- Holiday gatherings, back to school picnics, etc. are not an allowed expense.
- The Pcard should not be used for the purchase of any computing, networking, or other technology equipment or software unless specifically authorized by appropriate IRT personnel via e-mail prior to purchase. (Please refer to the University Technology Purchasing Policy.)
- If your area or department requires the pre-approval travel authorization form for out-of-town conference travel please include the completed form and a print-out of the conference details; i.e.: date, location, topic, etc., with the conference registration charges.
- Flower purchases for illness, surgeries, congratulations and birthdays are not allowed. Flowers for funerals require the President’s Office approval via e-mail prior to the purchase.
- The IRS deems gift cards and gift certificates as cash, and is taxable to the recipient. Therefore, these purchases are discouraged. If gift cards or gift certificates are purchased, the recipient’s name and social security number is required. If the recipient is a student, the student ID number is also required.
- University credit cards (Pcard or travel card) are not to be used for purchases at any Bradley University credit card merchant location; i.e.: Bookstore, Team Store, Ticket Office, Continuing Ed, all Dining Service locations, etc.
- Tissues are considered a personal item and are not allowed unless used for public areas.
- Civic memberships, table sponsors, etc. require the President’s approval.
- All office supply purchases must be reasonable. Please consider using the following vendors for substantial savings: Office Depot, Office Max, and Staples. Please contact the Accounts Payable office to be set up to purchase using any of these websites.
- All items purchased that are shipped must be shipped to a university address.
(This list is not all-inclusive.)
The purchase requisition is used to inform the Purchasing Department of the needs of a department and to identify the material or service requested. The requisition is prepared and signed by a responsible authority or a designated representative who is registered with the Purchasing Department. The Purchasing Department maintains a list of authorized individuals in the various departments.
Whenusing the electronic version of the requisition, departments should develop a numbering system. It should include a reference to the department, and may include the fiscal year, the originator, etc. An example might be: SAO15- 001 for Student Activity Office, fiscal year 2015, requisition # 001. The requisition number will be used when entering purchase orders and paying vendors for services, awards, etc. Invoices do not need to include a requisition when submitted for payment. The requisition number will print under the Reference 3 column on the monthly transaction reports. The electronic requisitions must follow the approval process with the appropriate signatures being secured before the document is sent to Accounts Payable/Purchasing for processing. A duplicate copy of the requisition must be sent if the department wishes to receive back a copy after A/P has processed the request. Otherwise, except when ordering computer equipment (see note below), only 1 copy of the requisition is necessary.
The requisition form must contain legible and complete information and specifications. Size, color, catalog numbers, trade names, vendor name, address and zip code and other relevant information available should be specified. The phone number and fax number should also be included when available. If a fax number is provided, the completed purchase order will be faxed. Otherwise, unless the requisition is marked as “pickup”, the completed purchase order will be mailed to the vendor. The requisition must also provide an actual or estimated cost. It is the responsibility of the originator to assign the appropriate account numbers to the requisition and secure the proper signatures. Any purchase of capital equipment for over $1,000 must be authorized by the dean of the college.
PLEASE NOTE – Departments purchasing computer equipment or supplies through the Customer Support Services department must send 3 copies of the electronic version of the requisition. Customer Support will then forward a copy back to the department after the computer or equipment has been ordered, with the final costs notated.
Requests for on-campus service or material will be sent directly to the servicing department. Upon receipt of the white, blue and pink copies of the requisition, the service department will perform the necessary work and price all copies. If using the electronic version of the requisition, send a duplicate copy to the servicing department. In the case of a material request, the items will be priced and delivered to the requisitioning department by the campus delivery service. The service department will then forward the requisition to the Controller’s Office for the appropriate transfer of funds. The extra copy of the requisition will be returned to the department for their records.
Requisition Cut-off for Fiscal Year End Purchases
- Capital equipment requests will be honored no later than the last Friday in April.
- Computer hardware & software purchases will be honored no later than the last Friday in April.
- Requests for supplies will be honored no later than May 15.
Please Note
The delivery date determines when the items are usually charged to the account. Orders should be placed as soon as possible for supplies or equipment expected to have a long delivery period to ensure that delivery and invoicing occur prior to May 31.
Bradley University is a tax exempt organization and has a sales tax exemption in the State of Illinois. Reimbursement of sales tax on purchases is not permitted. This applies to employees and students. Sales tax on University purchases can be avoided by using a purchase order or other pre-approved University purchasing procedures. With a University procurement card purchases and/or cash purchases, please note the cardholder/purchaser is responsible for identifying the purchase as tax-exempt at the initiation of the sale. Removal of the sales tax is not automatically done by the vendor, you must request it.
Material or equipment that is not in use and for which no future departmental need is anticipated may be transferred to another department if there is a need or may be disposed. Before transferring or disposing of an asset, authorization must be granted by the Property Accountant at ext. 3116 in the Controller’s Office.
A stockless office supply process has been implemented. Elimination of the in-house inventory provides savings to the University as office supplies are purchased on an as-needed basis by the individual departments on campus. Departments have the choice of using a variety of vendors for their supply needs. Many of the vendors offer discounts and various options for payment. Bradley is currently set up with Staples and Office Depot for online ordering, desk-top next day delivery and direct bill. Bradley has hundreds of “contract” items established with Staples and Office Depot for which substantial discounts are given. Contact Shelly at ext. 3945 to get set up on Staples or Office Depot.
Bradley continues to carry the “stock items” listed below. For stock items send an email to Jayne Dant with item and account number. Allow a day or two for delivery. Current pricing includes:
- #113E 9 x 12 white envelope (opened) – $.21/each
- Laser BU mailing labels – $.39/sheet-6/sheet
- Laser BU name tags – $.36/sheet-8/sheet
- #101E generic BU envelopes – $
- #101L generic BU Letterhead – $
- #112N generic BU note cards with envelope – $43.20/100
- #101W generic BU window envelopes – $
- Time cards – $4.50/pk-100/pkg
- BU hexagon pencils – $.21/ea
- BU round pencils – $.15/ea
All prices are subject to change, especially the paper products.
When equipment is traded in on the purchase of new equipment, the departmental requisition for the new purchase must carry the Serial number and description of the item to be traded. If the existing items are to be transferred to another campus department, you must contact the Property Accountant at ext. 3116 in the Controller’s Office.
The credit cards, listed below are available in the Purchasing Department. The credit cards can be signed out between the hours of 8 a.m. – 5 p.m. After the purchase is made, the card should be promptly returned along with the original receipt. The receipt needs to be notated with the general ledger account to be charged, the business purpose, and an authorized signature. If a requisition is done and left in the Purchasing Department when the card is checked out, just return the card and receipt. The Purchasing Department already has the authorization and account number. If the supplies are being purchased under a restricted account number, prior approval must be received from the Grants & Restricted Funds’ department. Students are also allowed to sign out the credit cards. They must have their id with them to sign out the card. The following is a current list of available credit cards:
- Best Buy
- Gordon Food Service
- Hy-Vee
- Krogers
- Lowes
- Menards
- Office Depot
- Shell Gas
- Wal-mart
Bradley also has a membership at Sam’s Club. Create a requisition and send it over to Purchasing. A purchase order will be created and within a few days, Facilities will send someone out to pick up the order.
The purpose of this policy is to provide a framework for purchasing computing, networking, and other technology equipment and software with University funds. This policy applies to all University employees and the purchase of all servers, network equipment, desktop and laptop computers, and technology for classroom or business use, regardless of the source of University funds. Further, all equipment and software purchased is the property of the University.
It is the goal of Information Resources and Technology (IRT) to assure equipment and software in use by the University community can be supported. IRT has the primary responsibility for maintaining networks, desktop computers, servers, printers, peripherals, and classroom equipment, as well as to be certain that quality is maintained at reasonable costs.
All computers, software (excluding MSDN AA programs from Microsoft), and peripheral devices (listed at the end of the policy) which are attached to or used with a personal computer or laptop must be ordered only after consultation with the Computer Systems Consultant (Mike Behrll). All servers, network devices and related equipment must be ordered only after consultation with the Director of Systems Integration and Security (David Scuffham). Copiers, projection equipment, digital signage, audience response systems, cameras and the like, must be ordered only after consultation with the Executive Director of Instructional Technology, Engineering, and Media Services, (Nial Johnson).
The review procedure for purchasing technology equipment and software is intended to provide:
- a centralized point of information about technology items
- a campus-wide inventory of hardware
- pricing advantages
- license compliance for software purchases
- hardware and software that can be supported or determination of such support
In order to coordinate and standardize on technology equipment and software purchases in a uniform and planned way, the following purchase procedure is to be used:
- University credit cards (procurement and travel) are not to be used for these purchases unless specifically authorized by one of the above mentioned individuals.
- Requisition is prepared by and approved as appropriate by the department/dean/director/vice president. Justification (business purpose) for the purchase must be indicated on the requisition.
- Requisition must be submitted to the appropriate IRT staff member (see paragraph three above) based upon the item requisitioned.
- Requisition is initialed by the appropriate IRT staff and sent to the Controller’s office for review of availability of funds and adherence to any restricted account requirements for final processing (either through Campus Computer Sales or any other vendor as approved)
- Purchase orders are prepared and the item is ordered if within the departmental budget constraints.
Please note that all full-time tenure-track faculty are assigned a laptop for educational purposes and are placed on a 4-year replacement cycle. These purchases are the responsibility of IRT.
Contact information:
Computer Systems Consultant: Mike Behrll ext. 3044 Director of Systems Integration and Security: David Scuffham ext. 3041 Executive Director of Instructional Technology, Engineering, and Media Services: Nial Johnson ext. 2333
Effective date: January 29, 2010
Peripheral Devices subject to the policy but not limited to:
- Printers Monitors Keyboards Mice
- USB and Networking Cables Flash Drives
- Kindles
- iPads
- Any other small technical device
*Consumable Supplies
- DVDs
- Batteries
- Toner cartridges Ink cartridges
*Consumable supplies purchases are not subject to this policy; however, Campus Computer Sales may be more cost effective.
Business and Financial Administration
As a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, Bradley University cannot intervene in any political campaign on behalf of, or in opposition to, any candidate for public office. Violation of this prohibition could cause Bradley University to lose its tax-exempt status or incur excise taxes on political expenditures. To ensure that Bradley University does not jeopardize its tax-exempt status or incur excise taxes on political expenditures, Bradley University, including any individual acting on behalf of Bradley University, will not engage in any of the following on Bradley University’s property, during any Bradley University function, or otherwise using Bradley University’s resources or facilities:
- Endorsing any candidate for public office
- Donating or contributing to any candidate’s campaign
- Participating or engaging in political fundraising events such as golf outings, dinners, etc.
- Publishing or distributing statements for or against any candidate
- Engaging in any other activity that favors or opposes any candidate
While there may not be any intent for political gain or support when attending or participating in political candidates’ events, the Internal Revenue Code strictly prohibits Bradley University or individuals acting on behalf of Bradley University to even give the impression of endorsing, supporting, or opposing any candidate or candidate’s campaign. The Internal Revenue Service has released a fact sheet to provide further information as well as examples on Political Activities. See fact sheet titled
The Internal Revenue Service has released a fact sheet to provide further information as well as examples on Political Activities. See fact sheet titled Election Year Activities and the Prohibition on Political Campaign Intervention for Section 501©(3) Organizations for more information.
Policy Statement
Bradley University requires that different types of records be retained for specific periods of time to comply with state and federal laws. Bradley University requires consistent treatment of records. Maintenance, retention, and disposal procedures for university records must be followed systematically by staff in official repositories. This policy is intended to ensure that the university meets legal standards.
Purpose
The purpose of this policy is to ensure that necessary records and documents are adequately protected and maintained and to ensure that records that are no longer needed or of no value are discarded at the appropriate time. The purpose of this policy is also to preserve University history.
Records management and retention policies apply to all records, regardless of format. In today’s environment, employees create and maintain an increasing portion of their records using computers. Electronic records must be managed alongside traditional records to ensure compliance with state and federal regulations.
Individuals responsible for the retention of records are also responsible for the destruction of records following the retention period. Records must be destroyed by shredding or other means to ensure that all sensitive or confidential material can no longer be read or interpreted.
Definitions
For the purpose of this policy, “record” shall be interpreted to mean:
any papers, books, photographs, tapes, films, recordings, or other documentary materials, or any copies thereof, regardless of physical form or characteristics, made, produced, executed, or received by any department or office of the University or by any academic or administrative staff member in connection with the transaction of University business.
The term “electronic record” means any record that is created, received, maintained or stored on University local workstations or central servers. Examples include, but are not limited to:
- electronic mail (e-mail)
- word processing documents and spreadsheets
- databases – all data generated via automated information systems including but not limited to student records, academic records, financial accounting records, and payroll records.
“Official records” are the records maintained by the various university units. Examples include, but are not limited to:
- Controller’s Office – all financial records, bonds records, payroll records, student billing and loan records, etc.
- IRT (Information Resources & Technology) – electronic records, etc.
- Registrar’s Office – student academic records, etc.
- Provost Office / Colleges– faculty records, etc.
- Human Resources Office – Personnel records, insurance records, etc.
- President’s Office – Board minutes, etc
Procedures
Each department will retain a listing of major documents used and maintained by the department detailing retention and destruction timetables (schedules). These schedules should be in accordance with all state and federal requirements. In addition, each department will review annually its records and forms to determine whether retention of these records and forms is adequate and appropriate.
Records can have historical value, even when no longer of immediate administrative value. If an office has any doubt if a record should be maintained, the appropriate Vice President should be contacted.
In the event of a governmental audit, investigation, or pending litigation, record disposition may be suspended at the direction of a Vice President. When litigation against the University or its employees is filed or threatened, the law imposes a duty upon the University to preserve all documents and records that pertain to the issues. As soon as the University is made aware of pending or threatened litigation, the appropriate University Vice President will notify the appropriate University employees/departments. The litigation hold directive overrides any records retention schedule that may have otherwise called for disposal or destruction of the relevant documents. The appropriate Vice President will inform employees/departments when litigation holds are cleared. Any electronic documents such as e-mail and computer accounts will need to be immediately maintained by the appropriate departments as well as Information Resources and Technology until the hold is released. No employee or department who has been notified of a litigation hold may alter or delete any electronic records that falls within the scope of that hold. Violation of the hold may subject the individual to disciplinary action, up to and including dismissal, as well as personal liability for civil and/or criminal sanctions by the courts or law enforcement agencies.
Records retention
Record retention periods may be increased by government regulation, judicial or administrative consent order, private or governmental contract, pending litigation or audit requirements. Such modifications supersede the requirements listed in this policy.
No document list can be exhaustive. Questions regarding the retention period for any specific document or class of documents not included in these tables should be addressed to the appropriate Vice President.
Please see the attached tables for records retention.
Records Retention and Destruction Policy Tables
| Type of Record | Document | Retention Period | |
|---|---|---|---|
| Institutional and Legal Records | Articles of Incorporation | Permanent | |
| Charter | Permanent | ||
| By-Laws | Permanent | ||
| Minutes of Trustee Meetings | Permanent | ||
| Minutes of Trustee Committee Meetings | Permanent | ||
| Licenses | Active | ||
| Expired Licenses | 6 years after expiration | ||
| Deeds and Titles | Permanent | ||
| Attorney documents | Permanent | ||
| Leases | Active + 6 years | ||
| Policy statements | Permanent | ||
| Campus Crime Reports (annual) | Permanent | ||
| Campus Security Act/Student Right to Know Act Compliance Records | Active + 3 years | ||
| Federal Compliance Records | Active + 3 years | ||
| Data/Statistics on Criminal Offenses | 3 years | ||
| Contracts | Active + 4 years | ||
| Patents and Trademark Records | Permanent | ||
| Application Materials for Students who enter | Applications | 5 years after date of last attendance | |
| Correspondence | 5 years after date of last attendance | ||
| Entrance Exams and Placement Scores | 5 years after date of last attendance | ||
| Letters of Recommendation | Until admitted | ||
| Individual Student Records | Course Drop/Add Slips | 5 years from date of last attendance | |
| Disciplinary Files | Permanent Class Schedules | ||
| Registration records | 5 years from date of last attendance | ||
| FERPA Requests | 5 years from date of last attendance | ||
| Transcript Requests | 1 year from date of request | ||
| Academic records | Permanent | ||
| Date of Graduation and Degree Award | Permanent | ||
| Degree Audit Records | Permanent | ||
| Transfer Credit Evaluations | 5 years from date of last attendance | ||
| Personal Data Forms | 5 years from date of last attendance | ||
| Name Change Authorizations | 5 years from date of last attendance | ||
| Disciplinary Files | 5 years from date of last attendance | ||
| Tuition and Fee Charges | Permanent | ||
| General Student Records | Grade Statistics | Permanent | |
| Applicant Statistics | Permanent | ||
| Enrollment Statistics | Permanent | ||
| Racial/Ethnic Statistics | Permanent | ||
| Student Handbooks | Permanent | ||
| Tuition Deferment Forms | 5 years from date of last attendance | ||
| Loan Disbursement Forms | 5 years from date of last attendance | ||
| Degree Statistics | Permanent | ||
| Foreign Visitors | Foreign Student (I-20) (J and F) Immigration Document Forms | 5 years from date of last attendance | |
| Foreign Scholars (J,H,O,etc.) | 3 years after the last day of employment or immigration status | ||
| F-1 and M-1 Visas | 1 year following report to INS | ||
| J-1 Visas | Active + 3 years | ||
| Compliance Records | HIPPAA Compliance | 6 years | |
| Title IX Records | Active + 5 years | ||
| Title VI Records | Active + 5 years | ||
| SEVIS Registration Records | Permanent | ||
| Drug Free Schools and Communities Act Compliance Records | 4 years | ||
| Financial Assistance Records | Financial aid transcripts | 5 years | |
| FAFSA Profiles | 10 years | ||
| Financial aid awards | Active + 5 years | ||
| FISAP/Supporting Documentation | 3 years | ||
| Lender’s Name and Address | Term of entry + 10 years | ||
| Promissory Notes | Active + Until loan is paid in full | ||
| State/Outside Grant Scholarship Prog. | 5 years | ||
| Gift-fund Scholarships | Permanent | ||
| Employment Applications and Employment Listings | Job Announcements and Advertisements | 2 years | |
| Documentation on Individuals not hired | 2 years | ||
| Individuals who are hired | Active + 5 years | ||
| Individual employee files and wage history Wage Rate Tables | Active + 7 years | ||
| Payroll Records | Salary or current rate of pay | Active + 7 years | |
| Payroll Deductions | Active + 7 years | ||
| Timecards/sheets | Active + 7 years | ||
| W-2 Forms | Active + 7 years | ||
| W-4 Forms | Active + 7 years | ||
| Personnel Files | General files | Active + 7 years | |
| IPEDS Reports | Active + 7 years | ||
| Employee manuals/ Faculty Handbook | Permanent | ||
| Employee files/documentation | Permanent | ||
| I-9s | 3 years | ||
| Employment history | Life | ||
| Medical Records | Life | ||
| Faculty tenure/promotion | Life | ||
| Employee Medical and Health Records | Life | ||
| Education Assistance/Tuition Remission | Life | ||
| Federal Tax Records | Form 941 | Active + 7 years | |
| Form 990 | Permanent | ||
| Form 990-T | Permanent | ||
| IRS Determination Letter | Permanent | ||
| Form 1099s | Active + 7 years | ||
| Form W-9 | Active + 7 years | ||
| Form 1042s | Active + 7 years | ||
| State Tax Records | Sales and Us Tax Reports and Support | Permanent | |
| Accounts Receivable Records/ Purchasing | Student billing records | 7 years | |
| Collection records | 7 years | ||
| Requisitions and support | 7 years | ||
| Property records | Mortgages | Permanent | |
| Property documents | Permanent | ||
| Financial Records | Balance Sheet | Permanent | |
| General Ledgers | Permanent | ||
| Bond Compliance records | Permanent | ||
| Statement of Activities | Permanent | ||
| Endowment records | Permanent | ||
| Account Ledgers | Permanent | ||
| Auditor’s reports | Permanent | ||
| Institutional Publications | Course Catalogs | ||
| Statistical Profile | |||
| Directories | |||
| Facilities Records | Layouts/plans | Permanent | |
| Permits | Permanent | ||
| Maintenance | Permanent | ||
| Hazardous Records | Permanent | ||
| Litigation Records | All records | Permanent | |
| Internal Audit Workpapers | Workpapers | Permanent | |
| Audits | Financial Audits | Permanent | |
| A-133 Audits | Permanent | ||
| Sub-recipient Audits | Permanent | ||
| Personnel Benefits | 403 (b) retirement plan | Permanent | |
| Life insurance | Permanent | ||
| Disability insurance | Permanent | ||
| Health insurance | Permanent | ||
| Tuition Assistance Program | |||
| Development | Donor records | Permanent | |
| Personnel | Administrative employee files | As long as employed | |
| Faculty Records and Files | As long as employed | ||
| Support staff files | As long as employed |
NOTE: The adoption of this policy does not relieve or otherwise affect the pre-existing obligation of any department to maintain records relating to a matter under litigation, audit, or investigation. All such records should be preserved until the matter to which they relate has been finally resolved and University counsel has approved their disposition.
These tables are not all inclusive and are subject to change. Departments may have retention schedules which are specific to their records. These schedules should be documented and followed accordingly. The university follows the Record Retention and Disposal A Manual for College Decision Makers by Kent M. Meeks and Patricia Kussman.
Department’s process scholarship or award requisitions. The requisitions should be sent to the Controller’s Office at least three weeks prior to the scholarship/award notification date. The requisitions are disseminated to the appropriate individuals in the Controller’s Office who are responsible for reviewing the charges, signing-off on the requisitions, and processing the transactions. Donor or funding source documentation determines whether the payment to the student is a scholarship or an award. The Controller’s Office individual handling the requisition will indicate, on the requisition, the status and method of the payment (i.e. P/R or A/P). The following is a brief explanation regarding the taxability of scholarships and awards and additional internal procedures for the processing of them.
- Scholarships are not taxable to the students. Scholarships are treated as financial assistance and must be included in the aid package of the student. The requisition is sent to the Financial Aid Director to be processed through the financial aid system. If there is a credit balance on the student’s account, a refund will be requested and processed through the Student Fees area.
- Awards are taxable to the students. The requisition is sent to the Financial Aid Director for the student’s resource and needs determination. The requisition is returned to the appropriate individual in the Controller’s Office. The Payroll Department is then contacted to determine the following:
- If the student is on the University payroll system, the requisition is forwarded to the Payroll Office. The student will be paid through student payroll on the next pay date and the appropriate taxes are withheld from that student’s award amount. The payroll general ledger sub-code charged is #5705.
- If the Department wants to present the award at a banquet and the student is being paid through student payroll, the Department should present the student with a certificate indicating the award amount and notifying them that the award amount will be included on their next paycheck.
- If the student is not on the University payroll system, the requisition is forwarded to Accounts Payable for processing. The Department should have the student complete an IRS Form W-9 and forward it with the requisition. Accounts Payable will mark the student as a “1099 Vendor” and at year end will complete the appropriate tax forms as necessary. The general ledger sub-code charged is #6170.
As a service to our student organizations, the university allows organizations to open agency accounts with the Controller’s Office as means to secure their cash. Some organizations find this to be a good alternative to opening a private bank account. All accounts are established using private funds with no university funding. The accounts are non-interest bearing and no service charge is applied.
After establishing an account, an organization can deposit funds at the cashiers’ windows in Swords Hall. Goods and services can then be purchased, with payment being made directly out of this account. For purchases made on campus, namely duplicating, postage and conference facilities, the account will be debited at the end of every month automatically for the amount of goods and services used that month. For purchases with vendors outside the university, an invoice must be sent to the organization’s faculty advisor for payment approval. Once the advisor has approved the invoice, it is sent to the Controller’s Office for payment. Provided there is enough money in the account, the university will issue a check on behalf of the organization to the vendor.
Some vendors may be reluctant to bill a student organization, preferring to be paid at the time of purchase. In such cases, it may be necessary for a member of the organization to pay and be reimbursed at a later date. For individual reimbursement, a campus requisition asking for reimbursement must be submitted. The requisition must be approved by the faculty advisor and sent or brought to the Controller’s Office with the original invoice showing that payment was made in full. If the amount is under $300 and the account has enough funds, the student will be reimbursed at the cashier’s window. Any amount over $300 will be reimbursed by check.
Cut-off dates for checks to be issued to vendors on behalf of the agency account are as follows:
- If received by 5 p.m. Monday, a check will be issued eight days later on Tuesday. If the Monday deadline is missed, payment will be issued a week later than if it had been received by the deadline.
Reimbursement checks follow the university schedule for reimbursement:
- Requests received by the 15th of the month will be paid by the 1st of the following month.
Please note that the accounts and their related organizations, while affiliated with the university, remain entirely separate entities. As such, these accounts and organizations are not afforded the tax-exemption status of Bradley University. Unless the organization has obtained a tax-exemption status of their own, all purchases and sales of goods must include their respective sales tax. The university files no taxes for these organizations and accounts. All related tax issues, including sales, income and payroll, must be handled by the organization itself.
Please contact Debra Henry at [email protected] or 309-677-2616 in the Controller’s Office with any questions or to establish an agency account.
Whistleblower Policy
Institutions of higher education are entrusted by society with great resources and commensurately great responsibilities for creation, dissemination, and preservation of knowledge. College and university personnel play a key role in upholding public trust and acting in the highest standards of ethical practice, integrity, openness, honesty, accountability, responsibility and fairness. Bradley University (University) encourages everyone associated with it to commit to acting in the best interest of the University.
In order to facilitate open and honest communication, the University has established a Code of Ethics for Trustees, Officers and Key Employees. This Code of Ethics reinforces other standards of ethics and responsibilities contained in employment agreements and policies at Bradley. The University is committed to maintaining a positive, ethical work environment for all members of the University community.
To this extent, if an individual suspects fraud, abuse or misuse of the University’s resources or assets; encounters dishonest actions or deeds; suspects a conflict of interest; or any other behavior that violates University policies, laws and regulations, then these types of violations or suspected violations should be reported to the University.
Policy Guidelines
A report of a violation should reflect a real or legitimate concern that is believed should be addressed. Anyone who reports a violation will not suffer harassment, retaliation or adverse employment consequences. Anyone who perpetuates harassment, retaliation or in any way affects the employment of a reporter will be subject to disciplinary action, up to and including termination of employment. The University encourages employees and other involved parties to bring forth serious issues and concerns utilizing established procedures and policy protocols.
Disclosures of violations or suspected violations should be reported to your immediate supervisor, department chair, dean, director, vice president, human resources, or internal audit department.
If an individual is uncomfortable making such a submission as indicated above, the University has contracted with a third party who provides confidential, anonymous reporting services. All reports involving a violation will be treated seriously and fully investigated to determine the facts and resolution appropriate under the circumstances. Instructions for anonymous submissions to this third party provider can be found on the University’s website.
Fiscal Year End Reminders
As we approach the University’s fiscal year end, May 31, the following are some reminders that may be applicable to you and your departments. These reminders pertain to all operating, restricted, endowment, and grant accounts.
Capital Equipment
- Capital equipment purchases should be made by Friday, April 12.
- All computer hardware and software purchases through Computing Services are subject to this date.
- Capital equipment records must be accurate and up to date for year-end audit work. If you have removed capital equipment from service please complete the Property Control Form located on the Financial Services website: https://bradley.edu/offices/business/financial-services/forms/ and return it to the Financial Services by Friday, May 3.
- Please keep in mind that the delivery date determines when items are actually charged to your account. Orders must be received on campus by May 31 and invoiced by June 4 to be reflected on the books for the fiscal year ending May 31. Please be cognizant that large expenditures may be pro-rated between fiscal years depending upon the nature of the expense. i.e: maintenance contracts, service agreements, etc.
Supply Purchases
Supply purchases should be made prior to Friday, May 10. This includes supplies purchased through Staples and Office Depot/Office Max and the use of the procurement card for any purchases. The designated individuals in your respective areas have access to reports which should be monitored closely.
Travel and Pre-paid Expenses
Any expense that has an effective date after May 31, 2024 will be recorded in FY25.
Travel that occurs June 1 or after which has been paid prior to or on May 31 will be treated as a pre-paid expense for FY24 and booked as an expense in FY25.
For example: Airline tickets paid in April for actual travel that is to occur in June will be posted to the respective account in June.
Deposits and Petty Cash Funds
- Checks received by departments for donations, expense reimbursements, etc. should be processed and deposited daily. Please do not hold checks and deposits in the department. This is extremely important for donor receipts, etc. that checks are processed immediately.
- Cash, checks, and credit card charges should be deposited at the Cashiers’ windows by 4:00 p.m. on Thursday, June 6. Checks dated May 31 or earlier must be posted for fiscal year ending May 31, 2024. For the time period of June 1 – 6, please separate your check deposits into those checks dated May 31 or earlier and those dated after May 31. All cash and credit card charges received during this time period are to be included with the post May 31 check deposit.
- For CyberSource processors, May reports and transactions, including May 31, are to be deposited at the Cashiers’ windows by Thursday, June 6.
- Petty Cash funds should be processed prior to May 31.
Reports
- Please carefully review March and subsequent monthly reports for accuracy and completeness. If an account does not have the necessary funds, please indicate an account that has the necessary funds for processing the transaction. If expenses need to be transferred to another account, please provide any transfer requests promptly.
- Individuals responsible for departmental account budgets, grants, etc., please review the budget/accounting reports as quickly as possible:
- Departmental reports which show expenses above 83% of Budget used on the March budget printouts should be reviewed and any problems resolved by April 19. Note as of April 1, five student payrolls remain for the fiscal year.
- Investigate all outstanding purchase orders (especially blankets orders). All encumbrances should be cleared by year-end.
- Please review and monitor your accounts and anticipate expenses accordingly.
If you have any questions regarding fiscal year end processes or procedures, please contact one of Centers of Expertise located within Financial Services. Contact information for the specific Centers or Expertize.
Please refer to the Financial Services website for additional details or information.
Thank you
Financial Services
[email protected]
Business Travel Policy
Persons traveling overseas are encouraged to obtain a University travel credit card to use for business purposes. Applications for new cards must be submitted to the Accounts Payable/Purchasing Department three weeks prior to travel.
The Bradley University Travel Expense Reimbursement Policy and Procedures apply to all foreign travel.
In addition to the substantiation and documentation requirements, an itinerary of the foreign travel should be provided for any travel card expenses. Cash conversions require documentation of the exchange rate at the time of conversion. Exchange rate conversion as provided on the Bradley Travel Card statement can be used. Additionally, most receipts for the conversion of cash will provide the conversion rate. When this is not possible, the exchange rates for the period of travel need to be determined and the reimbursement will be based on an average exchange rate for that period.
Any expense not subject to the per diem must be substantiated by actual receipts or written documentation detailing the recipient, name and number of attendees (if applicable), purpose, date and place.
An employee on foreign travel will need to use the Foreign per diem for the country in which they are traveling for a maximum reimbursement of $60 per-diem rate for meals and incidentals. For days of travel, the rate will be based on 75% of the per diem rate for a max of $45. Website http://www.gsa.gov. A cash advance may be secured for foreign travel if the travel exceeds 10 days. Meals and incidentals subject to the per diem rates cannot be charged to the university credit card.
Foreign Travel on Restricted Funds.
The traveler must comply with the travel requirements of the sponsoring agency, including all applicable OMB Circulars and state requirements. The following restrictions apply to sponsored project travel:
- Foreign travel on sponsored project funds is restricted to individuals who are directly associated with the scope and purpose of the project.
- Foreign travel costs are allowable only when specific funds for foreign travel are provided in the sponsored agreement. Such travel may also require specific sponsor approval.
- Foreign travel funded by the U.S. government is booked on a U.S. flag carrier if available. Deviations or exceptions are specifically approved in advance by the sponsoring agency.
Any employee traveling on University business to countries outside the United States must adhere to the United States Foreign Corrupt Practices Act (FCPA).
Basically, the anti-bribery provisions of the FCPA make it unlawful for a U.S. person to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person.
Explanation
With the implementation of the, Tax Cuts and Jobs Act that Congress passed in December 2017, there has been a significant change is how moving expenses are handled. For calendar years 2018 through 2025, Bradley University must include moving expenses in employees’ wages. The tax law suspends the exclusion for qualified moving expense reimbursements. Unreimbursed employee moving expenses can’t be deducted by the employee as miscellaneous expenses. All moving expenses are now taxable wages to the employee.
Prior to the Tax Cuts and Jobs Act, individuals moving for a job were allowed to claim moving expense deductions on their taxes. The IRS allowed these moving deductions only when the person was moving for job-related reasons. The requirements for classifying it as a job-related move included:
- The time requirement – The move had to be closely related to the start of work. This meant that taxpayers had to be working full-time at the new job for at least 39 weeks within the first year of moving.
- The distance requirement – In order to prove that you were moving for work, the commute from the old home to the new job location had to be at least 50 miles longer than the old commute.
If the individual met the above requirements, the individual could deduct certain moving expenses from your federal income taxes. However, these expenses must have been necessary for your move. Examples included:
- The cost of hiring professional movers and/or packers
- The cost of renting a moving truck
- The cost of moving supplies such as boxes
- The cost of insuring belongings during a move
- The cost of connecting and disconnecting utilities due to the move
- The cost of moving your car
- The cost of storing belongings for up to 30 consecutive days after the move
- The cost of temporary lodging, often needed when moving for work
- The cost of gasoline, oil, parking fees, tolls and other transportation expenses related to moving
Mileage is allowed at the IRS allowable moving rate from the starting location of the move to the Central Illinois destination location in lieu of the cost of fuel when a personal vehicle involved in the move.
Those moving expenses which are not allowed to deducted: the cost of buying or renting a new home; the cost of meals and food while on the road; the cost of house-hunting or pre-move visits; and any expenses that were already reimbursed by an employer.
Even though the Tax Cuts and Jobs Act no longer distinguishes between a qualified moving expense and a non-allowable moving expense, Bradley University still utilizes this distinction in determining whether the University will pay for a specific moving expense or not. Currently, the University will issue payment for qualified moving expenses as defined above if the move is to Central Illinois. The University will not issue payment for non-allowable moving expenses.
Therefore, moving expenses a) must be to relocate to Central Illinois; b) must meet the time requirement; c) must meet the distance requirement and d) must have been necessary for the move before Bradley University will issue payment for such an expense. The payment will be treated as taxable income to the individual moving as directed by the IRS.
One additional point which is not related to moving expenses but is a factor to consider in a relocation move, the University does not reimburse for normal work commute mileage. This is consistent with IRS rules and regulations.
Procedures for Payment
A University requisition must be completed. The appropriate Financial Edge account string (Fund Code-Account Code-0000-Project Id) is required on the requisition. If funding is from multiple project ids, all project ids must be listed on the requisition. Please do not submit multiple requisitions for the same move as this may cause confusion and delay the payment process. Approval of the requisition must be obtained from the Dean and the Provost or respective Vice-President for non-academic divisions.
The requisition must indicate the start and end dates of the actual move, the starting location of the move and the Central Illinois destination location of the move. Original, itemized receipts expenses must be submitted with the requisition. Receipts for temporary lodging, fuel, tolls, and other transportation expenses related to moving must be within the dates of the actual move. The moving expenditures must have already been paid by the employee. For instance, moving company invoices should either show a zero balance due or the employee has provided proof of payment (i.e. personal check, credit/debit card statement).
The approved requisition and accompanying receipts and documentation should be submitted to Financial Services, 103 Swords Hall, for processing within a reasonable period of time after the move has occurred.
A properly completed Travel Expense Report (Report) must be prepared by the employee, reviewed and approved by the appropriate supervisor and submitted to the Controller’s Office to obtain payment for domestic travel. International travel is governed by the Foreign Travel Policy.
To comply with documentation requirements and to allow for consistency in preparation, only the official Bradley University Travel Expense Report will be accepted. All sections of the form need to be completed including attachment of original receipts when required. The form must be signed by the traveling employee requesting payment and the appropriate supervisor. By signing the form, the supervisor affirms knowledge of the business purpose and approval of the funding account(s) for the expenditures.
Every University traveler is advised to review the Per Diem for Meals and Incidentals for University Employees. In addition, the following procedures are important:
- In General: The per diem is only for meals and incidentals. Receipts are not required. Mileage is calculated at the established University rate (not to exceed the federal rate). Lodging may be procured with the traveler’s University travel card. If the traveler has no University travel card, lodging, transportation and other expenditures may be reimbursed at actual cost through this Report. Original receipts must be attached in this case.
- Payment for per diems, mileage and other out-of-pocket expenditures will be made only after the travel has occurred. Due to IRS regulations, the Report must be submitted within 60 days of return from travel. . All requests for academic year travel must be submitted by the close of the fiscal year (May 31).
- Travel reimbursements for per diem, mileage, and other out-of-pocket expenditures submitted by the 1st of the month will be paid by the 15th of that month; requests submitted by the 15th of the month will be paid by the last day of the month. Checks will be sent by the Controller’s Office to the University employee through campus mail, unless indicated otherwise pending implementation of electronic deposits. If the request is for less than $300, cash may be given at the Cashier’s window in lieu of a check. Cash reimbursements will only be given to the traveler employee (i.e., student workers cannot be sent to pick up the payment.
- The Meals and Incidentals Per Diem rates used by the University are the rates established by the General Services Administration located at http://www.gsa.gov under the Per Diem search. The rates are listed by city/state or zip code and date. It is recommended that travelers use the zip code of their travel destination to identify the applicable per diem rates. If a city is not listed, then the per diem rate is the rate for the county of the destination city (use state map lookup). If the city and the county are not listed, then that area is considered to be a Standard CONUS location which is $46 for meals and incidental expenses. Be sure to pick up the Meals and Incidentals (M&IE) rate at the far right and not the Lodging rate. (While not required, it will be extremely helpful for documentation if the traveler prints the page reflecting the perdiem rate and attaches it to the Report.)
- Please note that days of travel should be calculated at 75% of the per diem rate for the destination city (first day) and the return city (last day) (e.g., Peoria).
- If travel includes multiple cities, use the city of destination for each particular day for determination of the rate.
- If the travel includes meals and entertainment of a guest, the traveler may use his University travel card for the purchase of the meal. In this case, the per diem for that particular meal cannot be submitted for reimbursement on the Report. The remaining meals of the day, however, may be submitted. The per diems for individual meals can be accessed on the General Services Administration website by clicking on the title “M&IE Exp” for the rate of the destination city.
- If the travel includes meals and entertainment of a guest and the employee does not have a University travel card, the expense can be itemized on the Travel Expense Report. The itemized original receipt must be attached to the form and the “Other Expenses and Business Substantiation” section of the form must be completed (name of guest and business purpose). The other meals of the day will be paid according to the rate for breakfast, lunch or dinner. Again, the per diems for these individual meals can be accessed on the General Services Administration website by clicking on the title “M&IE Exp” for the rate of the destination city.
- When meals are included in conference registration fees or hotel rates, a deduction must be made from the applicable per diem rate. The deduction is equal to the individual meal per diem for that locale. For example: A Bradley university traveler stayed in a hotel in Atlanta, Georgia. The cost of breakfast was included in the hotel rate. At the time of travel, the maximum daily per diem rate for meals and incidental expenses (M&IE) for Atlanta was $56 ($9 breakfast, $13 lunch, $29 dinner and $5 incidentals). Therefore the traveler would adjust the daily per diem rate to $47 ($56 – $9).
- Due to IRS guidelines, meals for one-day trips will not be paid unless the workday exceeds (12) hours. If the trip does exceed 12 hours, a per diem may be requested for the evening meal for Peoria (return city). In completing the Report, if several one-day trips are reported and they exceed the space provided on the Report, an additional listing by day of the Time of Departure and Time of Return must be attached to the Report.
- The Travel Expense Report may be used by those traveling employees who do not have a University travel card for reimbursement of all travel expenses including lodging, rental cars, fuel for rental cars, conference registration, etc. All original itemized receipts must be submitted with the form. Travelers are encouraged, however, to contact the Accounts Payable/Purchasing Department to find alternative methods of payment so that they do not have to use their own funds and wait for reimbursement after the travel has occurred.
- Per diem website: https://www.gsa.gov/
- IRS code section 274 and associated publications address entertainment-related meals and expenses. This section indicates that such meals and expenses are not reimbursable unless it is established that the expense is directly related to the active conduct of university business. Birthday lunches, birthday gifts, going away celebrations, going away gifts, student graduation gifts, etc. are all considered personal in nature and not business related, therefore not allowable. An unallowable expense is not reimbursable and if paid with a university travel card or procurement card, the expense must be repaid by the cardholder. There are a no exceptions to the rules, except flowers for funerals which require the approval of the President’s Office.
- Rental cars should be utilized when traveling long distances instead of driving a personal vehicle and requesting mileage reimbursement.
- Alcohol should be considered a personal expense unless a valid university business entertainment purpose is documented with external business constituents (i.e. donors).
- Reminder: IRS considers food/snacks for meetings as non-allowable whether it includes faculty, staff or students unless it is very infrequent.
- IRS Tax Topic 511 – Business Travel Expenses – considers facilities within the same city as an extension of the place of business therefore mileage reimbursement between these locations would be considered non allowable (i.e. Peoria Next, Civic Center, Shea Stadium, etc.).
- Mileage requests can be substantiated with an odometer reading or a map quest.
Policy and Guidelines
The basic rationale underlying all university travel regulations is that we should incur the lowest practical and reasonable expense while completing the travel in an efficient and timely manner. Persons traveling on University business have the duty to exercise care to avoid impropriety, or even the appearance of impropriety, in any travel expense. Reimbursement is allowed for ordinary and necessary traveling expenses incurred by an employee while away from home in the conduct of university business. “Home” is considered to be the locale of Bradley University. Individuals are not “away from home” unless their duties require them to be away from the University for a period substantially longer than an ordinary workday and it is reasonable for them to need to sleep or rest.
Bradley University’s policies for travel reimbursements are subject to the accountable plan rules as set forth by the Internal Revenue Service. The requirements for an accountable plan are:
- Expenses must be expenses that are incurred by the employee in connection with the performance of service for the employer.
- Expenses must be substantiated to the employer within a reasonable time period.; The elements to be substantiated are amount, time, place and purpose.
- Employees must return to the payer within a reasonable period of time any amount paid under the arrangement in excess of the substantiated expenses.
If a plan fails to meet the requirements of an accountable plan, the amounts paid under the plan are treated as if paid under a non-accountable plan and are treated as wages subject to employment taxes and income taxes.
General Information
In general, University employees are subject to the travel policies and procedures as outlined in the Faculty Handbook and the Administrative Handbook. Employees traveling on a regular, recurring basis may obtain a Bradley Travel card. This card may be used for pre-approved university related business travel. For all other travel, the University will reimburse a traveler for items paid personally after travel has taken place. Due to IRS accountable plan rules, requests for reimbursement must be made to Financial Services within sixty (60) days after the last day of travel. Reimbursement requests will need to be submitted prior to grant closing dates and the University’s year-end closing at May 31.
One reimbursement request per trip should be submitted with original receipt(s) of expenditures attached to the request for reimbursement. The Travel Expense Form should be used. Reimbursement is for actual expenditures. Check and cash reimbursement requests that have complied with all established policies and procedures submitted by the 1st of the month will be paid by the 15th of that month; requests submitted by the 15th of the month will be paid by the last day of the month. Checks will be sent by Financial Services to the University employee through campus mail, unless pick-up is specified. If the reimbursement is for less than $300, with proper approval and substantiation as required below, cash may be given at the Cashier’s window in lieu of a check In general, cash reimbursements will only be given to the individual requesting the reimbursement (i.e., student workers cannot be sent to pick up the reimbursement). However, with proper written authorization, an employee may pick up a supervisor’s cash reimbursement request.
In certain situations, trips are funded through a combined use of the Bradley Travel card, reimbursement request and/or cash advance. When this occurs, all forms must be submitted for clearing at the same time to Financial Services to avoid any confusion.
Receipts
Approval of any university business related expense must be obtained from the appropriate authorized individual (e.g., director, department head, dean, provost, vice-president, president). The individual authorizing the expense requisition will be accountable for any issues presented during audit.
The appropriate account string (Fund–Account Code– Four Zeros–Project ID) is required on reimbursement requests submitted for approval. If funding is from multiple sources, all account strings must be listed on the reimbursement form/requisition. Please do not send in multiple reimbursement requests as this causes confusion and possible missed or duplicated reimbursements.
Original, itemized receipts must be submitted with the request (for everything other than per diem for meals and incidentals). To meet IRS accountable plan rules, the receipts must indicate:
- Location of travel
- Dates of travel
- Business purpose of travel
- Attendees, if applicable
- Indication that the bill has already been paid by the employee. For instance, fordomestic travel, hotel bills should either show a zero balance due or the employeecan also submit his credit card statement.
Specifically, when requesting reimbursement for conference registrations, a copy of the personal check used to register or charge card documentation along with a copy of the registration form/conference itinerary can be submitted in lieu of the actual receipt. Meals included with conference registration are not eligible for reimbursement (conference meals should be deducted from the per diem for meals and incidentals). For airfare reimbursement, please submit either an original itinerary with form of payment indicated or the actual ticket that shows amount paid and form of payment. Coach or tourist fare is reimbursed for air travel. Requests for hotel reimbursements must include the hotel portfolio. Hotel reimbursement is only allowed for lodging when traveling on University business away from the University.Miscellaneous charges must be reasonable, itemized, and explained to justify business purpose. Receipts for ground transportation (e.g., taxis, buses) should be provided, where possible
Mileage is reimbursed at the IRS standard mileage rule in effect at the time of travel from the Bradley University base of employment to the travel destination.
Meal reimbursements – Travel (per diem)
Per Diem for Meals and Incidentals for University Employees
A Meal and Incidentals Per Diem allowance will be paid for overnight travel away from home in connection with the performance of services as a Bradley employee. This per diem is intended to cover the cost of meals, tips and incidentals and is intended to streamline processing and ease documentation requirements for certain activities. Receipts are not required to support this allowance. The per diem allowance for all domestic travel will follow the maximum established federal per diem per locale as provided in the Per Diem search at https://www.gsa.gov. Partial days of travel (i.e., day of departure and return) are reimbursed at a reduced rate of 75% of the per diem rate. For international travel, please see Foreign Travel Policy.
Per IRS rules, incidentals include fees and tips given to porters, baggage carriers, bellhops, hotel staff and others.
The per diem allowance will be processed after the travel period has been completed and cash advances are strongly discouraged.Even though the travel reimbursement is granted on a per diem basis, proper business substantiation is still required on the Travel Expense Report, such as business purpose and dates of travel. An example of appropriate business purpose documentation for conference travel would be to attach the conference itinerary. Meals considered a business meal with an outside party (see Business Meals below) may be charged on a Bradley credit card. Personal meals charged on the Bradley credit card must be paid back to the University when the credit card statement is submitted for processing. Repayment for personal meals (expenses) cannot be offset against any anticipated per diems.
Please refer to the Travel Per Diem and Mileage Request Procedures and Travel Expense Form for additional information.
One-Day Travel
Per IRS rules, meals for travel may be reimbursed if the business trip is overnight or long enough that one needs to stop for sleep or rest to properly perform one’s duties. Thus, one-day trips will not be reimbursed unless the workday exceeds 12 hours. Typically, the one day trip reimbursement request may include a per diem for the evening meal if the one day trip exceeds 12 hours. Breakfast and lunch per diems would not be paid in this situation.
Meals Provided at No Additional Cost
Whenever meals are provided at no additional cost to the traveler (e.g., complimentary hotel breakfasts, meals included in conference registration fees), the traveler shall not be entitled to any per diem for those particular meals. Travel under External Grant/Contract Funding
Travel under grants/contracts funding must follow sponsoring agency requirements which may mean that per diem cannot be used, instead source documentation may be required (original receipts, etc.) If the grant or contract provides specific per diem rates for domestic travel, these rates will be honored but must be supported by a copy of the relevant page of the grant or contract.
Business Meals While in Travel Status
When the primary purpose of a meal while in travel status is for conducting University business with individuals not employed by the University, the names and business affiliation of the participants, as well as the business purpose of the meeting, must be provided. An original itemized receipt must be submitted with the Travel Expense Report or the University credit card statement. The traveler will not be reimbursed at the per diem rate for that particular meal. All remaining meals for that day will be reimbursed according to the breakfast/lunch/dinner breakdown of the per diem for that locale (also provided at https://www.gsa.gov.) Non-University Employee Reimbursements
The per diem method for meals is only allowable for University employees. Reimbursements for non-employees and students should be supported by original, itemized receipts to receive reimbursement.
Meal Reimbursements – Entertainment Rules
Under the entertainment rules, meals must meet the business requirement test to be reimbursable. Otherwise the meal is deemed a personal expenditure. To meet the business requirement test, the main purpose of the meal must be the active conduct of business for the general expectation of getting some specific business benefit at some future date. Meals with outside parties can generally meet this requirement. It is much harder to substantiate a meal between associates as there is generally no real business reason for conducting the discussion during the meal. Thus, meals provided at departmental meetings are not generally reimbursed.
Food and beverages for faculty, staff and students furnished on business premises may be reimbursed to the extent that it is reasonable and infrequent with a business purpose. Infrequent would constitute two or three times a year
Bradley VISA Travel Card documentation
VISA charges must be substantiated with:
- Proper approval on the statement.
- All original itemized receipts.
- Business purpose on all receipts (including when, where, why, who and what).
The documentation must be timely submitted to ensure payment by the due date. Finance charges are the financial responsibility of the cardholder. The cardholder is responsible for submitting and resolving all disputes with the credit card company. If the credit card receipt is lost or otherwise not submitted, the cardholder is responsible for the expenditure and should submit a personal check made payable to the University along with other documentation. If receipts are found at a later date, the cardholder may request reimbursement at that time.
Travel on Restricted Funds
University travel expense reimbursement policy and procedures apply to all travel on sponsored project funds unless the sponsored agreement provides a different method of reimbursement. The traveler must comply with the travel requirements of the sponsoring agency, including all applicable OMB Circulars and state requirements. The following restrictions apply to sponsored project travel:
- Travel on sponsored project funds is restricted to individuals who are directly associated with the scope and purpose of the project.
- Foreign travel costs are allowable only when specific funds for foreign travel are provided in the sponsored agreement. Such travel may also require specific sponsor approval.
- Foreign travel funded by the U.S. government is booked on a U.S. flag carrier if available. Deviations or exceptions are specifically approved in advance by the sponsoring agency.
Foreign travel
Please see Bradley University Foreign Travel Policy.
Miscellaneous reimbursable travel expenses
The following items are generally reimbursable to the extent they are reasonable and necessary business expenditures:
- Business office expenses (fax, copy services, telegrams, etc.)
- Business phone calls
- Conference fees
- Currency conversion fees
- Fees for the purchase of traveler’s checks for foreign travel
- Gasoline for refueling a rented car
- Ground transportation (train, taxi, bus, subway, etc.)
- Laundry and dry cleaning charges for trips exceeding ten consecutive calendar days
- Parking and tolls
- Tips up to 20% of meal cost for business meals not subject to the per diem
- Visa fees for business travel
Non-reimbursable travel expenses
The following items are generally not reimbursable. Note: This list is not all-inclusive.
- Alcoholic beverages for students
- Movie rentals, theater tickets, newspapers, magazines, prescriptions, over-the-counter
- drugs, hotel mini-bar expenditures (which includes alcohol, snacks, bottled water or any other non-meal related food and drink items)
- Insurance on rental automobiles
- Trip/flight insurance
- Parking tickets and fines for traffic violations
- Personal expenses
- Personal portion of airfare while on university business
- Personal-use portion of a car rented for university business
- Repairs or towing of personal vehicles used for university business. These costsare included in the mileage reimbursement rate.
- Expenses incurred by spouses, partners and families or rate increases occasionedby presence of spouses, partners and families.
- Laundry service for trips of less than ten consecutive calendar days
- Personal aircraft usage
- Childcare or pet care costs
- Passports
- Loss or theft of cash advance money, airline tickets, traveler’s checks, etc.
- Locksmith charges
- Lost baggage, luggage, and briefcases
- Souvenirs and personal gifts
- Health club fees
- Commuting expenses between home and work
Reimbursement of University Related Business Expenses
Original, itemized receipts must be submitted with the approved requisition for any university business related expensed paid individually by a university employee. The receipt(s) must indicate:
- Purchase location
- Date of the purchase
- Business purpose for the purchase
- Proof of payment for the purchase
Additionally, a brief explanation should be provided as to why the purchase was not made directly through university purchasing procedures.
The University will reimburse employees for costs related to a personal cell phone if such costs are (a) incurred by the employee within the employee’s scope of employment; (b) directly related to services performed for the University; and (c) authorized or required by the University. Any such reimbursement must be authorized by the appropriate Vice President or Dean and must be submitted within the reimbursement limits and receipt requirements established by this policy. Examples include safety and emergency response personnel who must be able to be reached in the event of an emergency and employees who travel frequently and need to be accessible to the University while traveling.
All requests for the reimbursement of University business related expenses must be approved and submitted to Financial Services as soon as possible, but no later than 60 days after the expense is incurred. If the reimbursement request is not submitted within 60 days of the expenditure, the reimbursement is considered taxable income to the employee, unless there were unforeseen or extenuating circumstances beyond the individuals’ control that would have prevented them from complying with the 60 day submission requirement and a reasonable justification for an exception is provided.
See the Purchasing Spending Guidelines for additional information on expenditures.
Cash Handling
This procedure pertains to all advances made by check or cash for the purpose of travel. The procedure establishes maximum advance amounts and requires timely accounting by employees, subject to payroll withholding if necessary for collection.
- In general, employees traveling on official University-related business may receive a cash advance to cover reasonable business expenses to be incurred in the course of their travel that exceeds 10 days. Advances will not normally be granted for airline tickets, lodging, or conferences fees – items that should be secured through standard acquisition procedures (e.g., purchase orders, check requests, University designated travel agency, University travel credit cards.) If an employee does not have a University travel card, securing hotel reservations may be done through the Purchasing Department or with a personal credit card and then payment for the hotel stay can be made by University check or reimbursed to the employee after travel has occurred subject to the Bradley University Travel Expense Reimbursement Policy and Procedures.
For employees without a university credit card, advances are to be used for travel expenses that cannot be readily or most economically processed through normal purchasing/accounts payable procedures. Examples of these types of expenses include transportation from an airport to a conference, parking, or some meals. Special arrangements which follow the intent of these procedures may be required for athletic team travel, foreign travel, group activities or non-travel advances. - Request for Advance – Advances must be based on a reasonable estimate of the anticipated expenses, and must be drawn within a reasonable period of time before the expenses are likely to be incurred. Requests for advances must be approved by the responsible dean/department head using standard institutional forms. Cash advances available through the Cashiers Window are limited to $1000 and must be claimed by the employee (i.e., student workers cannot be sent to collect a cash advance for the traveling employee). Check advances, limited to $2500 per trip, are to be processed through the Accounts Payable Department of the Controller’s Office and are subject to the normal Accounts Payable cut-off rules (i.e., must be submitted by the Monday prior to the following week’s normal check run on Tuesday). Cash advances are not generally released earlier than two business days prior to the date needed (e.g., travel departure date). Advances are not intended to pay pre-departure expenses and will not be available for that purpose.
- Cash Advances for Foreign Travel – Persons traveling overseas are required to obtain a University travel credit card to use for business expenses and are subject to the policy and procedures of the University’s Foreign Travel Policy.
- Clearing the Advance – The employee must provide the University with detailed expense records substantiating the amount used of the advance. Dates, places, amounts, original itemized receipts, names of persons accompanying the employee, and business purpose must be documented. Proper signature approval is required. For specific substantiation requirements, please refer to the Travel Policy and Recommendations. This documentation plus all unspent or unsubstantiated advances must be returned to the Controller’s Office within 30 business days after completion of the trip or business event. Employees failing to return unused cash advances and /or proper substantiation within 30 business days will be subject to either payroll deduction or taxation of the amount unreturned/unsubstantiated after adequate reminders have been given to the employee. Employees with overdue outstanding advances are not eligible to receive additional advances for any other business purposes. The individual authorizing the clearance of the cash advance will be held accountable for any issues presented during audit.
- Advances to non-employees -Advances of University funds will not be made to persons who are not currently affiliated with the University. Students and consultants are not considered affiliated with the University. Alternatively, an employee may choose to sign for an advance on behalf of a student or non-employee; however, the employee in so doing is fully responsible for the full amount of the advance and subject to the substantiation and collection procedures discussed in D above. In addition, cash advances cannot be used to pay for any services performed by individuals whether they are University employees or not. Payments to individuals must follow the standard University procedures.
The procedures outlined below are meant to protect both the University and the employee(s) involved in accepting payments on behalf of the University.
Please consider the following as extremely important:
- Whenever possible, use the Business Office as the location for cash receipting functions; i.e. send the students or others over to the Cashiers at Swords Hall to make payments. They are equipped to handle this activity, and have excellent recordkeeping.
- When your department or program has to handle checks or cash, please do the following:
- Immediately stamp all checks with a restrictive endorsement stamp. These will be provided by the Business Office.
- Make deposits regularly – either when receipts exceed $50.00 or weekly.
- Be reminded that all checks paid for Bradley activities should be made payable to Bradley University.
- Receipts should be deposited intact – in other words – do not use cash received as petty cash.
- Bundle each deposit with a calculator tape listing each check and the total of the deposit. If the tape could show the number of checks, so much the better.
- Indicate the correct account number and subcode on either each check or on the calculator tape.
- Bring to the Cashier’s window in the Business Office.
- Discourage cash whenever possible. However, if cash is deposited, please sort the bills by denomination, and arrange all face up in the same order. This will reduce the work for our cashiers.
- Keep cash and checks in a locked and secure location while in your possession.
As cash activities and collection points are very important to University operations, we are giving additional attention to these matters through our policy review and internal audit operations. Our procedures have been generally well-adhered to with minimal problems. Your continued assistance with this important matter is greatly appreciated.
Should you have any questions regarding cash procedures or practices, please call Terry Kenny at (309) 677-3490.
- You must present your BU QuickCard to cash a check.
- Checks drawn on the employee’s personal bank account must be made payable to the employee and endorsed by the employee.
- A $250 limit is placed on check cashing per day for personal checks.
- A charge of $25 will be applied to all checks returned as non-sufficient funds.
- All non-sufficient fund checks not made good within 60 days will be submitted to a collection agency. Any collection fees are the responsibility of the individual who presented the check for cash.
Guidelines for Use & Maintenance of a Petty Cash Fund
Bradley University has established on campus a limited number of petty cash funds for use by departments and cash handling areas. Petty cash funds enable departments to pay cash for minor business expenditures that could not easily be paid through normal University procurement practices.
The University uses an imprest system for petty cash. An imprest system requires that the cash periodically issued by the Controller’s Office to replenish the fund agrees with the amount of disbursements from the fund. Consequently, an imprest petty cash fund remains at a fixed balance. At any point in time the balance of the fund consists of cash, coin and disbursement support (invoices/receipts). These items should always be equal to the predetermined amount to be maintained as the fund.
A petty cash fund should be small enough to require replenishment at least monthly, and large enough to require no more than three replenishments per month. Too large a petty cash fund encourages abuses such as unauthorized “borrowing” and payment for costly items that should be handled through issuance of checks. Too small a fund requires excessive work through frequent replenishment.
Establishing a Petty Cash Fund
A department which has a need for the following transactions may request a departmental petty cash fund: (1) frequent small cash purchases, (2) payment reimbursements, or (3) change funds for cash transactions. A petty cash fund can be established by submitting a purchase requisition to the Controller’s Office for approval. The requisition should include a justification for the fund, the name of the fund custodian, the location of the fund, and the amount of the fund. The Controller’s Office will, after review and approval of the request, authorize disbursement of the fund monies from the Cashiers’ Window. The initial petty cash disbursement will not appear as a charge to the department. The petty cash funds are recorded on the University books as a temporary loan to the department. Charges are not made to the department’s accounts until a purchase requisition is completed for replenishing the fund.
Custody & Control of the Petty Cash Fund
Departments receiving petty cash funds must designate one employee as custodian of the fund. The custodian is responsible for safekeeping and proper use of the fund. Custodial responsibilities include the following:
- Prohibiting access to the fund by anyone for any reason, under any circumstances.
- Keeping the fund intact, physically separate, and not comingled with any other fund.
- Proper usage of the petty cash funds.
- Exercising caution in the administration and protection of the fund.
- Notifying the Controller’s Office immediately upon being relieved of responsibility for the fund or upon discovering any discrepancies in the fund.
- Securing a receipt for each expenditure.
- Limiting individual transactions to under $25 each. (Simultaneous purchases to circumvent the $25 limitation are not allowed.) Any exceptions are to be approved by the Controller’s Office.
- Reimbursing only for funds actually expended.
- Reconciliation of the fund balance.
To prevent access by anyone except the custodian, petty cash should be kept in a locked box in a desk or cabinet that is locked whenever the custodian is absent. Only the custodian should have access to the keys. In case of theft or mysterious disappearance, University Police must be notified as soon as the loss is discovered. A copy of the police report should be included with the petty cash receipts when reimbursement is requested.
Accounting for Petty Cash Transactions
Proper accounting for petty cash requires that custodians make payments for authorized expenditures only, obtain receipts, and record expenditures. All receipts must be original receipts, indicating vendor name, items purchased and date. Each receipt should be documented with the following information:
- Date reimbursed or payment issued.
- Signature of recipient
- Description and business purpose of each transaction amount
- University account number to be charged
The Request for Reimbursement requires approval signature by custodian of petty cash fund except in the case where it is the custodian being reimbursed. In that situation, signature approval is required by the custodian’s supervisor.
In cases where revenues are received, these revenues should be periodically deposited, at least weekly.
If receipts are not available (i.e., receipts are not typically given), a handwritten note describing the item paid for will suffice. However, all of the above information needs to be included.
Replenishing Petty Cash Funds
A purchase requisition can be used to request reimbursement or replenishment of the fund. This reimbursement should occur at least monthly. Receipts must be attached, grouped and totaled to the form. These receipts must be reviewed and approved by the person who has signature authorization for the departmental accounts. Departmental accounts and subcodes must be assigned to all groupings of expenditures. These petty cash expenditures are reported to departments on their monthly account reports by account number and expense classification. The requisition requesting replenishment of the fund is then reviewed and approved by the appropriate person in the Controller’s Office. Once authorized for payment, the custodian can receive the funds at the Cashiers’ Window.
Balancing Petty Cash Funds
When reimbursements by the custodian deplete the amount of cash, receipts are added to account for the expenditures and keep the petty cash fund in balance. At any time, the total cash on hand plus the total receipts and reimbursement requests in process should equal the original amount of the petty cash fund. If the fund does not balance, the Controller’s Office should be contacted for assistance. A petty cash fund should always be balanced before a request is made for replenishment. Balancing and replenishment must be done for year-end, May 31.
Overages and Shortages. Money lost because the custodian has failed to safeguard the fund or allowed it to be improperly used is the custodian’s liability and must be repaid by the custodian. Money lost due to circumstances beyond the control of the custodian is repaid from the department’s budget or other available operating funds. Overages in the fund must be deposited with the Cashiers into a departmental account.
Change of Custodian
One custodian may not transfer a fund to a new custodian. The department head, however, may transfer the petty cash fund after serving notice to the Controller’s Office. The fund must be counted and reconciled prior to transfer. The fund must be in balance before the new custodian accepts it. If a custodian leaves employ prior to the designation of a new custodian, he/she needs to close the fund with the Controller’s Office.
Closing a Petty Cash Fund
If a petty cash fund is no longer needed, the custodian must close the fund by taking the cash to the Cashiers’ Window. The Cashiers’ Window will prepare a cash receipt with a credit to the Petty Cash Account, 11-00000-1101, give the custodian a copy and forward a copy to the Controller’s Office. In cases where a custodian leaves without closing the fund and there are no receipts or records, any cash shortage may be charged to the operating budget of the custodian’s department, reported to the IRS as income to the custodian, and reported to Internal Audit or the police for investigation.
Confirmation of Petty Cash Funds
Surprise periodic audits of the petty cash funds will be performed by the Controller’s Office to ensure compliance. Additionally, several funds are selected each year for audit by the Internal Auditor’s Office. The Controller’s Office reserves the right to reduce or eliminate a petty cash fund based on the fund inactivity or violation of petty cash handling procedures.
Allowable Petty Cash Expenditures
- Purchase of nominal cost items not to exceed $25 per item.
- Use as a change funds for sales type transactions (theatre).
- Miscellaneous office supplies not readily available through regular University purchasing channels
- Emergency repairs
- Art supplies
- Hardware (Facilities)
Expenses Not Allowed Through the Petty Cash Fund
- Employee check cashing or borrowing from the fund
- Single purchases which exceed $25
- Items for personal use of staff (e.g., beverages, parking permits)
- Payment for services performed by employees or nonemployees
- Traffic citations
- Simultaneous purchases (stringing) made to circumvent the $25 limitation.
- Travel expenses, meals.
- Dues, memberships, subscriptions
- Conference fees
- Entertainment items
- Office decorations
- Alcoholic drinks
- Electrical appliances (space heaters/fans/coffee pots)
- Mileage, gasoline, per-diem payments
- Personal phone bills
- Postage stamps
- Gifts, flowers
- Utility bills
- Vehicle maintenance
- Catering services
- Use of fund to absorb cash overages and shortages of other cash receipting activities
- Items that should be requisitioned through Purchasing such as coffee supplies
When a check that has been received and deposited by the University is returned by the bank because the issuer has insufficient funds in their account or their account has been closed, specific steps must be taken to ensure that the “bounced” check is properly accounted for and that follow-up collection efforts are made with the original check issuer.
Processing Steps
By arrangement with the banks, insufficient funds (NSF) checks are typically returned by the bank to the attention of the Controller. The Controller’s Office will then contact the department originally depositing the check to obtain account numbers to be charged for the returned check. A $25 processing fee will be charged to that same account.
After the appropriate entries has been made by the Controller’s Office, the NSF check will be returned to the department who has the primary responsibility for following up and collecting the monies due the University.
If the check was a student’s check, the student’s billing account will be charged for the NSF check and the associated fee. Notice will be provided to the student of the NSF status. Payment is expected immediately after notification of the returned check. In addition, a hold will be placed on the student’s account in Student Billing.
Only three NSF check will be allowed before the check writer will be placed on the No More Checks List, indicating that the privilege to cash checks at the Cashier’s Window has been revoked.
- You must present your BU QuickCard to cash a check.
- Cashier will cash a check from the student’s parent(s) and checks drawn on the student’s personal bank account. Such checks must contain the student’s name, BU ID number, local address, and phone number.
- Checks drawn on the student’s personal bank account must be made payable to the student and endorsed by the student.
- The following limits are placed on check cashing per day for students:
- $150 maximum on one personal check.
- $200 maximum on one non-BU payroll check
- $400 maximum on BU payroll checks.
- No two party checks between students will be cashed.
- A charge of $25 will be applied to all checks returned as non-sufficient funds.
- All non-sufficient fund checks not made good within 60 days will be submitted to a collection agency. Any collection fees are the responsibility of the individual who presented the check for cash.
Business Systems Access & Security
Restricted Funds
| Budget Justification Category | Description | Tips |
|---|---|---|
| Personnel | Only Bradley University employees should be listed under Personnel. | |
| A. Senior Personnel | PI: Dr. X (a 9-month academic year employee) will provide scientific direction and supervision for the project [including…]. # summer months are requested for each of the three project years. The monthly rate is calculated as 1/9th of PI’s annual salary of $$. A ___% increase is budged in project years 2 and 3. Co-PI: As Co-PI, Dr. Y (a 9-month academic year employee) will be responsible for […]. One summer month is requested for project year 1; one half-summer month is requested in each of project years 2 and 3. The monthly rate is calculated as 1/9th of the Co-PI’s annual academic year salary of $$. A ___% increase is budged in project years 2 and 3. | Senior Personnel includes PI(s), Co-PI(s). List his or her name, title, the amount of time he or she will spend working on the project, and what he or she will be trying to accomplish. Avoid saying anything like “Person X will work Y amount of time at no cost to the sponsor”, because that is considered cost sharing. Bradley University doesn’t allow cost sharing unless the sponsor requires it in writing. |
| B. Other Personnel | Other Personnel includes post-docs, research assistants, lab techs, graduate students, undergraduate students, etc. | |
| 1. Other Professionals | Research Associate: Dr. Z will serve as the Research Associate responsible for […]. One month (8.3% effort) is requested for each of the three project years. The monthly rate is calculated as 1/12th of the Research Associate’s annual calendar year salary of $$. A ___% increase is budged in project years 2 and 3. Post-Doc: To be hired. 12 months (100% effort) are requested for each of the three project years. The Post-Doc will be responsible for […]. The monthly rate is calculated as 1/12th of the Post-Doc’s annual calendar year salary of $$. A ___% increase is budged in project years 2 and 3. | For Other Professionals: List name, title, the amount of time he or she will spend working on the project, and what he or she will be trying to accomplish. |
| 2. Graduate Students | Funds are requested in the amount of $$/month for # months for # graduate students during each of the three project years. These (masters/PhD-level) students will be responsible for […]. | For students, identify their level (PhD, masters, or undergrad) and rate of pay. Rates of pay vary depending on discipline, skill level, etc. |
| 3. Undergraduate Students | Funds are requested for an undergraduate student to aid the graduate students in […]. The undergraduate student will work # of hours/week for # of weeks during each of the three project years. | For students, identify their level (PhD, masters, or undergrad) and rate of pay. Rates of pay vary depending on discipline, skill level, etc. |
| Fringe Benefits | Fringe benefits are not charged on student salaries. | Fringe benefits are calculated at a rate of 25% of salaries for all full-time senior personnel, research associates, and post-docs. A 10% fringe Benefit rate is used for part-time employees and extra compensation/summer and winter interims for full-time employees. |
| Permanent Equipment | Equipment is defined as a single item, a multiple-purchase “system” or a “fabrication” with a useful life of more than one year and a unit cost of at least $5,000 unless. Bradley University capitalization threshold is $5,000. A “system” can be made up of many items that must interact with each other and, when added up, total $1,000 or more. A fabrication is just like a system except it cannot provide useful results right away. Please attach a quote or catalog description with pricing included (for internal purposes only). | We plan to purchase [equipment name/detail] in year 1 in order to […]. The cost is $$, which includes shipping and setup. |
| Travel | Domestic Travel: The PI, Research Associate, and one graduate student will attend the National Association Conference in project years 2 and 3 to present results. Meeting cities are not yet set. Airfare is estimated at $$ per person per trip. Lodging and meals are estimated at $$ a day per person for # of days. Registration fees for the graduate student are $$. Domestic Travel: The graduate students will travel across the state to collect data. Mileage is $$/mile. The students will travel approximately # miles per year for three years. International Travel: In project year 1, the PI and Co-PI will travel to COUNTRY to […]. Airfare is estimated at $$ per person. Lodging and per diem are $$ a day per person for # of days. | List “who, what, where, when, and why”. All Bradley University regulations must be followed. Please refer to the University Travel and Expense Reimbursement Policy. |
| Participant Support Costs | Ten high school teachers will be trained by the PI for a total of ten days over the project period (one Saturday per month for 10 months). They will be trained on […]. Each teacher will receive a $$ stipend. Travel is estimated at $$ per teacher. | Participant Support Costs refers to the costs of stipends, transportation, per diem, and any other costs associated with participants or trainees attending proposed conferences, meetings, workshops, or trainings. These costs are not for employees of Bradley University. |
| Subawards/Subcontracts | State University will carry out the ABC test and design. $$ is budgeted each year for [cost elements]. (A separate budget and justification is included.) City College will design and build the system starting in year two, and is expected to need $$ per year for [cost elements]. (A separate budget and justification is included.) | List subaward institution and a short description of the aspect of the project they will perform. Bradley University also requires a separate statement of work, budget, budget justification, negotiated fringe and overhead rate agreement, and an authorized signature of approval from the subaward institution. |
| Other Direct Costs | ||
| 1. Materials and Supplies | Computer Software: The Necessary Software Package will be purchased in order to […]. The packages will be purchased at $$ each. Laboratory Supplies: Glassware and plastic ware, as well as chemicals, will be purchased in order to […]. Estimated costs of each item are: $$. | Remember—costs can only be charged directly to a grant if they can be readily and specifically identified with that particular project. So, always be as specific as possible. List types of purchases, estimated costs per year and, especially, why purchases are essential to and dedicated to the research on this project. |
| 2. Publications Costs/Documentation/Dissemination | Funds are requested for page charges. These costs are estimated based on the publication rate of the PI over the past year and are budgeted for years 2 and 3 only. | |
| 3. Consultant Services | Mr. B. Business of Business Company will consult with project personnel throughout the project period. In each year of the project, he will travel to the university # times per year to […]. Travel costs include $$ for lodging, per diem, and air fare. Mr. Business’s compensation rate is $$/day for a total of # days/year. | Consultants are any non-Bradley University professionals who do not contribute to the overall programmatic effort of the project. The description must include who they are (if known), rate of pay (and how this was determined), work to be done, and timeframe of hire. |
| Tuition | Tuition is requested for # semesters for # of graduate students for each project year. Current tuition fees are $$/semester*. An estimated 5% increase is budgeted in years 2 and 3. | For current tuition rates, please visit the Student Financial website. |
| Other | Use the “Other” category for any other cost element that does not fall into an established cost category. | |
| Indirect Costs | The indirect costs are calculated as 53% of direct labor (excluding fringe benefits). Bradley University’s indirect cost rate is federally-negotiated with DHHS. | Indirect Cost rates are also called Facilities and Administrative rates (F&A) or overhead rates. These rates are negotiated with the federal government on a periodic basis. Indirect cost rates are meant to recover all of the “hidden” costs of doing research like building, utility and maintenance costs, and administrative costs (e.g. the costs of purchasing and research offices). Unless sponsor has a published limit, use the indirect rate established in Bradley University’s current indirect cost agreement. If rate is limited by sponsor, be sure to provide the rate and the base (for example, 25% salaries, wages, and fringe; or 8% total direct costs). Documentation of the sponsor’s restricted indirect cost limitation is required. |
Sponsored project funds awarded to and administered by the University are to conform to University policies and guidelines and those of the sponsor. Projects where the University is a subawardee are subject to applicable policies of the sponsor providing the funding, as well as whatever other terms and conditions are specified by the prime awardee.
Federal
When the sponsor provides federal funding for the project, either directly or indirectly as pass-through funds, there are specific compliance requirements.
Statutory Requirements are created when laws are enacted, and these requirements take precedent over all other policies and regulations related to sponsored projects.
Office of Management and Budget Circulars for government-wide sponsored project management are as follows:
The Office of Management and Budget (OMB) issued 2 CFR Part 200 (referred to as the Uniform Guidance) to streamline the Government-wide guidance on Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards. Uniform Guidance consolidated and eliminated the duplicative guidance found in eight OMB circulars which includes OMB A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations and A-133, Audits of States, Local Governments, and Non-Profit Organizations. The administrative requirements and cost principles apply to new awards authorized on or after the effective date of the Uniform Guidance unless an OMB approved deviation exists.
Federal Demonstration Partnership Terms and Conditions
Bradley University is a member of the Federal Demonstration Partnership (FDP). Therefore, certain research awards from the major federal agencies are subject to FDP General Terms and Conditions and FDP Agency Specific Requirements, rather than the agency grant regulations. Awards received from an FDP agency as a subaward are subject to FDP terms and conditions only if the pass-through entity is an FDP institution. Policy manuals, handbooks, and general grant conditions documents(for grants and cooperative agreements not covered by FDP terms and conditions.) Federal agency grant policy documents apply.
Federal Acquisition Regulations (FAR) are the primary regulations used by federal sponsors to govern contracts for supplies and services, including research services. FAR incorporates OMB Circular A-21 for the purpose of defining allowable costs. FAR is not applied to grants and cooperative agreements that are governed by OMB Circular A-110, agency grant regulations, or FDP terms and conditions. Federal contracts typically incorporate all of the FAR clauses applicable to a given project.
State/Private
Projects sponsored by State of Illinois and other non-federal sponsors must comply with applicable sponsor policies and the terms of individual sponsored agreements.
All Sponsors
Deviations from either University or sponsor policy must be explicitly negotiated and approved by authorized officials of the University and the sponsor.
As a recipient of sponsored funds, Bradley University must assure Federal and other sponsors that the assignment of salary and fringe benefit costs to the projects they sponsor is reasonable in relationship to the work performed and that commitments to sponsors have been met. To do so, the University must maintain an accurate system for documenting and certifying time and effort. The system must specifically track the time or the percentage of effort dedicated to sponsored projects. Time and effort reporting serves as a way to reconcile that salaries and wages charged or cost shared to sponsored projects are consistent with the effort committed and contributed to sponsored programs. Inadequate time & effort reporting or failure to comply with established policies and requirements can lead to financial penalties, expenditure disallowances, repayments, and loss of funding.
Federal regulations provide a basic regulatory framework for salary & effort reporting. According to the Office of Management and Budget (OMB) Circular A-21 (Cost Principles for Educational Institutions), Section J.10. …
The payroll distribution system will (i) be incorporated into the official records of the institution, (ii) reasonably reflect the activity for which the employee is compensated by the institution, and (iii) encompass both sponsored and all other activities on an integrated basis, but may include the use of subsidiary records
To be in compliance with Federal regulations, Bradley University requires individuals to complete a Time and Effort Report/Extra Compensation form or a Time & Effort Personnel Activity Report.
Time and Effort Report/Extra Compensation Form
Those individuals eligible for and receiving extra compensation as detailed in the Faculty Handbook (II. Faculty B. Faculty Appointment Status 3. Compensation b. Extra Compensation Policy) should complete the ‘Time and Effort Report/Extra Compensation’ form to document actual hours worked. The form should be submitted to the Controller’s Office at the end of each month (when work has been performed during that month). A requisition should also accompany the time and effort form when it is submitted to the Controller’s Office. The requisition should denote the individual to receive the extra compensation, the total hours worked, the rate of pay, and the total amount of extra compensation.
Time & Effort Personnel Activity Report
Those individuals eligible for and receiving released time should complete the Time & Effort Personnel Activity Report. The form should be submitted to the Controller’s Office monthly or at the end of each semester as requested. Back-up and supporting documentation for the percentages reported on this form will need to be retained by the individual employee working on the grant. The employee is responsible for substantiating the percentages reported (via a log, diary, or other method).
Effort refers to the time spent on all university activities (e.g., instruction, organized and departmental research, public service, administration, patient services, internal consulting, student services, auxiliaries and other institutional activities). It excludes external consulting, non-institutional professional activities, or volunteer/unfunded activities such as community service.
Individuals are expected to devote 100% of their workload to fulfilling their total professional commitment to the University. Effort reporting is the process of monitoring and validating 100% of an individual’s total professional effort. It includes the time spent working on sponsored projects in which salary is directly charged or cost-shared.
Insurance
Situations exist where confusion or uncertainty may occur regarding automobile (vehicle) insurance. For University sponsored activities involving a vehicle, the following examples might assist in clarifying insurance coverage:
- Travel where student or staff drive their own vehicle
The student’s or staff member’s coverage is primary and the University’s is secondary (i.e. the individual’s policy would be used to settle claims before Bradley’s policy would respond). - Travel utilizing University-owned vehicles (i.e. to a meeting/convention/event)
Provided the driver is a University-approved driver*, anyone so authorized is covered by Bradley’s insurance. University auto insurance covers the vehicle, however, it does not cover the driver for negligent acts.
*Individuals wishing to become authorized to drive the University’s passenger vans or rent a vehicle other than a car must go to the Work Control Office in Macmillan Hall, Room 105 to complete an application and will be required to pass both written and behind-the-wheel tests. Work Control is open 24 hours a day, seven days a week. - Travel in rental vehicles or bus (should the rental agency insurance be purchased?)
University coverage applies to rental vehicles. Rental agency insurance is unnecessary. If rental insurance is purchased, it becomes a personal expense, and will be paid by the individual. Should you have an accident, please notify and submit a police report to the Office of the Vice President for Business Affairs (Cindy LaHood or Gary Anna). - Travel with students riding in a University employee-owned vehicle
Vehicle owner’s insurance is primary; University’s is secondary - Does insurance agency need advance notice with names and dates where University travel is involved?
No - A traveling faculty/staff member or student has personal property stolen while on University business. Will the University’s insurance cover its replacement?
No. The University does not have an insurable interest in faculty/staff or student personal property - Can students rent vehicles on behalf of the University?
No. Students are not allowed to rent on behalf of the University—only Faculty/Staff.
Property Accounting
Per University specifications, the Property Accountant capitalizes any equipment in general that has a value of $5,000 or over. This value can be determined from the purchase price at the time the equipment is bought or the fair market value of assets acquired through donations to the university. All costs reasonable and necessary to obtain the asset, including component parts and shipping, are included when determining the cost of the asset and its capitalization value. Other information necessary to capitalize an asset includes, but is not limited to:
- Item description
- Serial number
- Physical location
For most equipment purchases, the Property Accountant is notified through Accounts Payable at the time of payment. If a piece of equipment has various component parts purchased at different times or from different vendors, the department should notify the Property Accountant to ensure proper capitalization.
With respect to the capitalization of computers, if an invoice for a computer system is itemized such that all the component parts of the system are easily identifiable, only those individual parts over the capitalization limit will be individually capitalized, generally the CPU and possibly the monitor. For those systems on which a component part breakdown is not readily available, efforts will be made to capitalize only the computer, not the software or licensing. Software is generally expensed unless it is a large systems purchase.
All donations of equipment to the university are to be processed through the university’s Development Office. The Development Office will then notify the Property Accountant and the asset will be capitalized appropriately.
Asset Tagging
All capital assets should be tagged with a Bradley University property tag by the Financial Services when they are placed in service. The only exception would be items purchased through Computing Services, which are tagged when they are installed. If your department has an item which needs tagging, please contact the Property Accountant to arrange a convenient time for tagging.
Asset Disposal
Throughout the year, departments may find themselves with equipment that is not used, is broken or has outlived its useful life. In these instances, the Property Accountant must be notified and approve the disposal as there are different methods of disposal, depending upon the equipment type. If the Property Accountant approves the disposal, a Property Control Form must be completed by the department and submitted to the Property Accountant prior to the disposal.
Asset Transfer
Certain equipment might not be useful to one department, but may be needed in other areas. In these instances, the asset may be transferred to another department. A Property Control Form must be submitted to the Property Accountant when this occurs.
For any other questions regarding capital equipment, please contact Financial Services.
Capital Equipment Procedures
Per University specifications, the Property Accountant capitalizes any equipment that has a value of $5,000 or over. This value can be determined from the purchase price at the time the equipment is bought or the fair market value of assets acquired through donations to the university. All costs reasonable and necessary to obtain the asset, including component parts and shipping, are included when determining the cost of the asset and its capitalization value. View the complete procedures
Annual Physical Inventory Checklist
To assist in proper control of physical inventory, each department is required to complete the following physical inventory checklist. The checklist is to be completed, certified and submitted by the chairperson of the department )or a proper designee) no later than March 1st of each calendar year. Procedure
- Request the Physical Inventory Report from the Financial Services and sort as desired (location code, custodian, BU Tag, etc.). Print to use as a verification list.
- Take a physical inventory of equipment that is contained in all the buildings and rooms assigned to your unit and/or used by your unit faculty/staff/students.
- Use a distinctive mark on the Physical Inventory Report to indicate every item located.
- Make notes for any data that needs to be added or corrected in the spreadsheet record.
- Items that cannot be found after a diligent search should be noted as pending resolution. The information on the missing asset(s) is to be conveyed to the Financial Assistant/Property Accountant or Research and Sponsored Programs accounting staff.
- For items found that are not on your Physical Inventory Report, record all of the required information at the bottom of the report for update.
- Review your Physical Inventory Report notations for legibility, reasonableness, consistency and completeness.
- Enter the updates into the spreadsheet and submit it along with the Property Control Form (for disposals and transfers) to the Property Accountant.
- Sign and have the unit Head sign the Certification Letter and submit no later than March 1 of each calendar year to the Property Accountant.
- Follow up and resolve pending items (not located).
- Continue to search for items checking with the responsible person inquiring about disposal, trade-in, loaned to another university faculty/staff/student and record updates to your list.
- If possible obtain a written statement from anyone who has knowledge of unauthorized disposal of an item.
- After substantial search and follow-up efforts fail to locate the item, request it be written off.
- Beginning April 1st of each calendar year the Property Accountant will send a listing of all your pending items that must be resolved no later than May 1st of each calendar year.
- Anytime that you have questions about the Physical Inventory process, data entry, forms, and/or policy, you may contact Financial Services.
Consultants, Independent Contractors & Honoraria
The University department or unit using the services of the independent contractor (non-Bradley employee) must complete the Determination of Independent Contractor Status document before the independent contractor provides any services to the University. Form 1 of Determination of Independent Contractor Status document should be completed by the appropriate University personnel and approved by the University department or unit head. The responses to the questions contained on Form 1 should affirm the independent contractor status. The independent contractor is then responsible for completing Form 2 of the Determination of Independent Contractor Status document and providing the university with the requested information and certification. A current Determination of Independent Contractor Status document must be on file with Accounts Payable, Controller’s Office, before any payment is made to an independent contractor.
Bradley University will issue a form 1099 MISC (subject to IRS regulations) to independent contractors for amounts paid to them by the University. The amounts paid to the independent contractor may represent consulting fees, travel and lodging fees, or miscellaneous expenses incurred by the independent contractor. The entire amount of the agreed upon compensation and related travel expenses will be reported on the independent contractor’s Form 1099 MISC unless the recipient specifically requests that the travel expense be reported separately and provide the appropriate original itemized receipts. In that instance, the expense will not be added to the 1099. However, if there are only copies and no specific request was made, then AP must include all payments on the 1099. The IRS requires these documents to ensure that individuals that are reimbursed for expenses also do not include them as a business deduction for their tax returns. The independent contractor should be responsible for paying all expenses related to the performance of their service.
Taxation
The University is responsible for assessing and collecting state and local (city) taxes for food sales. These taxes then must be remitted to the appropriate taxing authority.
Types of taxes:
- State sales tax at 8.25%
- Local (city) sales tax at 2%
Non-taxable food sales:
- Student Board plans (student meal plans) are exempt from taxation
- Student related academic programs that require students to reside in dorms are exempt from taxation. Examples: summer orientation, forensics camp.
Internal University department catering/food sales:
- Internal university department catering is taxable at the local (city) tax rate of 2%.
- SABRC funded student organizations (account numbers 11-26xxx) are taxed at the 2% rate.
- Departments should provide a university account number beginning with 11xx to 29xx.
External University events:
- External events are taxed for both state and local (city) taxes, a total of 10.25%
- Examples: Athletic camps, student clubs (9xxx accounts), other camps, wedding receptions, other banquets, other student center or alumni center events
- Exception: If the external event is a non-profit with a state exemption certification, then the food will be subject to the 2% tax
Other forms of payment:
- Quick cash sales are taxable at the 10.25% rate
- Cash sales are taxable at the 10.25% rate
- Credit card sales are taxable at the 10.25% rate
- Faculty/Staff BU Bucks deposits at the cashiers’ windows are taxed at the 10.25% rate
Forms
- Blackboard Card Reader Loan
- Budget Change Request Form
- Cash Advance Request
- Change Order Requisition
- Consideration for Use on Consulting/Contractual Services Form
- Deposit Form
- Determination of Independent Contractor Status
- Independent Contractor Form
- Individual Independent Contractor Agreement
- Organizational Account Establishment Request Form
- Property Control Form
- Requisition Form
- Salary Schedule Update/Change Form
- Signature Authorization Form
- Time Effort Activity
- Time Effort Extra Compensation
- Travel Card Application and Agreement Form
- Travel Expense Form
- Vacation Record Accrual Worksheet
- Virtual Terminal Agreement
View a specifc policy or form
- COD Procedures
- Confirming Orders
- Conflict of Interest
- Department Credit Cards
- Equipment Constructed by the University
- Federal Surplus Property
- Formal Bids
- Invoices
- Payment Processing
- Pcard Policy
- Prepaid Procedures
- Procurement Guidelines for Purchases Made with Federal Funds
- Purchase Order Procedures
- Purchasing Spending Guidelines
- Requisitioning Procedures
- Sale Tax Reimbursement
- Surplus and Scrap Property
- Supplier Diversity Report
- Supply Inventory
- Trade-ins
- University Credit Cards
- University Technology Purchasing Policy
- Identity Theft Prevention (Red Flag)
- Mobile Device Policy (Cell Phone)
- Political Activities Policy
- Records Retention and Destruction Policy
- Scholarship & Award Requisitions
- Student Organizational Accounts (Agency)
- Whistleblower Policy
- Year End Policies and Procedures
- Bradley VISA Documentation
- Foreign Travel Policy
- Motor Vehicle Policy
- Moving Expenses
- Travel Per Diem and Mileage Request Procedures
- Travel Policy and Expense Reimburesment Guidelines
- Check Cash Advance Policy
- Check Cash Receipting and Processing
- Employee Check Cashing Policy
- Petty Cash Fund
- Returned Checks
- Student Check Cashing Policy
- Credit Card Security & Incident Response Plan
- Budget Justification Template
- Budget Presentation Handout
- Monthly Financial Report
- Sponsored Projects Expenses
- Time & Effort Report
- Certificate of Coverage for Bradley Employees and Students Traveling Abroad
- Vehicle Insurance
- Capital Equipment
- Property, Plant and Equipment
- Independent Contractors
- Taxation of food sales
- Forms
Additional Links
