Content | Navigation |

Accounting Office

 


Accounts Payable

Banquets and Meetings

NDSU Policy 170, outlines the rules for paying for meals of staff and guests.    These expenses are typically paid via an Accounts Payable Voucher.  To help provide the proper documentation for these expenses, a Banquet & Meeting Documentation form must be completed and attached to the Accounts Payable Voucher.

Donations

According to Article X, Section 18, of the State of North Dakota Constitution, it is unlawful for the state to “make donations to or in aid of any individual, association or corporation except for reasonable support of the poor, nor subscribe to or become the owner of capital stock in any association or corporation.

  • NDSU cannot donate money to a charity or other individual or association, regardless of funding source.  Payments made to an individual or association should be for the fair value of goods received or services rendered.
  •  Some activities and expenses involving donations are more appropriately sponsored and paid for by the NDSU Development Foundation.

Dues and Memberships

Per NDSU Policy 152.2, part 2:

 

Normally, dues and membership fees are the employee's own personal responsibility. The University may pay organization or institutional fees in professional and service organizations when the membership is regarded, either by the organization or the University, as an institutional membership or is otherwise considered directly beneficial to the University. In such cases, all benefits of membership, such as resource materials, belong to the University. All such funded memberships must be approved by the employee's supervisor who has budgetary responsibility for the unit or division. For the colleges of the University, this shall mean the Dean.

           

            Per NDSU Policy 152.2, part 4:

 

No other funded memberships are authorized unless specifically approved by a Vice President or the President.

Employee Awards and Prizes

According to the Internal Revenue Service, awards to employees are considered taxable wages.  Any such payments must be processed through the NDSU Payroll Office.

Employee Purchases

Periodically, an employee will pay for some incidental supplies or materials and will need to be reimbursed.  This practice should be discouraged, as NDSU will lose the sales tax exemption savings and there is potentially a loss of time away from work. 

 

 

Moving Expenses (Reimbursement)

NDSU Policy 171, outlines the rules for reimbursing employee moving expenses.  A Moving Expense Documentation form must be completed and attached to the Accounts Payable Voucher authorizing employee reimbursement.

Prepaid Expenses

As a sound business practice, goods and services should be received and accepted before payment is made to the supplier.  Prepayments are allowed but should be avoided, if possible. 

 

Certain transactions are more applicable to prepayments, such as subscriptions, rents and leases.

 

If a particular vendor only does business by receiving prepayments, we should make a strong effort to find another vendor.   The department will be responsible for their loss if payment is made and the goods/services are not received or acceptable.

Promotional Expenses

Promotional expenses must withstand the test of public scrutiny.  Payments that are made for promotional purposes to external customers, and properly documented, are allowable university expenses.   Examples include: cards, flowers, candy, and other small gifts (mugs, clothing, blankets), sponsorship or an event or activity. 

  • The recipient of the promotional item must be an external party to NDSU who is a past, current, or prospective customer.  External parties include students (including student employees), businesses, and other outside organizations.
  • Current NDSU employees (including terminating or retiring employees) or departments must be considered internal parties.  Promotional expenses directed to benefit internal parties are not allowable, regardless of funding source.
    • Personal gifts to employees, or the employee’s immediate family, must not be charged to university funds. A gift in lieu of additional compensation is not allowable, regardless of funding source.  Examples include:  candy, flowers, clothes (not including required uniforms), mugs, tickets, gift certificates, cash or checks. 
    • Payment of an employee’s required university fees is not allowable, regardless of funding source.  Example: parking permit.
    • Promotional items received by employees that are clearly intended for the benefit of external parties, are allowable.  For example: there may be rare cases where an employee, in a promotional role, purchases items to later be disbursed as small gifts for promotional purposes.  The employee may be reimbursed in such cases.
    • An exception to this guideline is made in cases of the employee length of service award and retirement awards. (See web site at:  http://www.legis.nd.gov/information/acdata/pdf/4-07-18.pdf .)
    • Another exception to this guideline is the “Campus Kudos” program sponsored by NDSU Staff Senate where a certificate of appreciation, along with a $10 Bookstore gift card, is given to students, staff and faculty.  These gift cards must be charged to a local fund.
  • The promotional expense must support the mission and purpose of the University.   This is a key point that distinguishes a promotional expense from a donation. A donation does not further the mission or purpose of the university.
  • University officials must exercise prudent judgment, common sense, and restraint when determining whether an expense is appropriate.
  • The reason for purchasing promotional items must be well documented.  The explanation must include a description of what is being purchased (if that is not apparent from the invoice), the intended recipient, and reason for the purchase.

Paying Research Study Participants

  • Participants may be given cash, a check, a gift card, or other item (e.g. t-shirt). All guidelines below assume total compensation for a participant will not exceed $600 in a calendar year. If compensation will exceed $600, then the researcher is required to collect a social security number regardless of the form of payment.
  • If cash is to be given, the researcher can request cash in specific denominations. A “Request for Travel Advance” form is used to request the cash advance. The voucher is made payable to North Dakota State University with Customer Account Services on line 2. The check is cashed at Customer Account Services. An explanation of what the cash is for and the denominations required need to be in the description area of the voucher. Every time the researcher gives cash to a participant, the researcher must record the participant’s name, signature, the date, and the amount of cash given. If not enough participants are recruited to use up all the cash, unused cash must be returned.
  • If a gift card is to be given, the researcher should use the same procedures as for cash, except that a check is requested to be made payable to the business where the gift cards are to be purchased. Then, the researcher records each recipient’s name, signature, the date, and the gift card amount. Note that some places of business will not accept returns of unused gift cards. Thus, if a researcher is not sure how many participants will need to be compensated, it may be difficult to use this option. The researcher may have to wait until all participants have completed the study in order to know the exact number of gift cards to purchase. The cards would then have to be delivered or mailed to the participants.
  • If an item is given, the same procedures are followed as for gift cards. Note that no extra items can be left over unless they can be returned for a refund.
  • If a check is to be given, the procedures to use depend on whether the payment is for one time only and on whether the individual to be paid is an NDSU student.
    •  If the participant is a student, the researcher must submit the student’s EMPLID number and name to the accounting office with a request for payment.
    • If the participant is not a student, and the payment is for one time only, the researcher must submit the participant’s name and address to the accounting office, which will mail a check. No social security number is needed.
    • If the participant is not a student, and more than one payment will eventually be made (even if the next payment is in a different year), the researcher must submit the participant’s name, address, and social security number to the Accounting Office, which will mail a check. For all subsequent payments to the same participant, only the name and address need to be submitted, not the social security number.
  • Any compensation, including cash, check, gift card or other items that the NDSU department paid for, and is received by a current NDSU employee, is taxable and must be included in the recipient’s paycheck.

Work Environment Expenses

Expenses incurred that create a positive physical work environment for university employees are allowable.   University officials must exercise prudent judgment, common sense, and restraint with these purchases. However, expenses that benefit employees individually are considered personal expenses and are unallowable.

 

Allowable:

  • Small appliances that are available to all of a department’s employees   are allowable, such as: coffee pots, toasters, ice machines, water coolers, microwaves, and refrigerators.
  • Seasonal or holiday office decorations, wall hangings are allowable.
  • First aid kit that is available to all of a department’s employees is allowable.
  • Required uniforms.

Unallowable:

  • Pictures or office decorations for an individual’s office or workstation are considered an employee’s personal expense and are unallowable, regardless of funding source.
  • Food or supplies for regular daily coffee or lunch breaks are unallowable, regardless of funding source.  Examples include: coffee, filters, snacks, and donuts.
  • Personal hygiene and medical items made available to individual employees are unallowable, regardless of funding source.

Student Focused. Land Grant. Research University.

Follow NDSU
  • Facebook
  • Twitter
  • RSS
  • Google Maps

North Dakota State University
Phone: +1 (701) 231-7432 / Fax: (701) 231-6194
Campus address: Old Main 11
Physical/delivery address: 1340 Administration Ave., Fargo, ND 58102
Mailing address: NDSU Dept. 3100 / PO Box 6050 / Fargo, ND 58108-6050
Page manager: Accounting

Last Updated: Wednesday, March 26, 2014 10:42:34 AM