UCI: University Advancement: Agency Accounts

AGENCY ACCOUNTS

The University shall establish Agency Accounts for expenditure of Foundation funds allocated for support of Foundation development, fundraising, or support group activities.

University accounting shall administer these funds in accordance with the campus' Foundation Policy for Agency Accounts. Where there is no specific Foundation policy, University policies and procedures shall apply. The Foundation in approving expenditures from these funds, authorizes the University to act as its agent.

The Foundation Agency Account is a non-reportable area within the University account structure; therefore it is not to be used as a way of bypassing University policies. If an expense is processed on a Foundation account, it can only be transferred to a University account if it meets the University policies, and vice versa.

A check to the UC Regents will be issued monthly by the Foundation. The amount shall be the total disbursements for the prior month based on the University's general ledger plus the University's administrative fee.

The following are policies and procedures for campus foundations for use in the operation of agency accounts. As campus foundations conduct fund-raising activities for the University, the terms Foundation business and University business may be interchanged. Where the policies specify authorization of the Vice Chancellor, Associate Vice Chancellor and Assistant Vice Chancellor, this refers to the Vice Chancellor, Associate and Assistants of University Advancement, Exhibit A.

RECORDS

FUND CUSTODIALS: Custodial Forms with original authorized signatures are kept on file in the UCI Foundation Accounting office. Any redelegation of authority implemented by the University will automatically be adopted by the UCI Foundation.

OFFICE OF RECORD: The University will be the Office of Record for all Foundation expenses processed by the University in acting as its agent. UCI Foundation Accounting will be the office of Record for all other approved transactions.

AGENCY ACCOUNT POLICY
TABLE OF CONTENTS

I.	Approvals
II.	Automobiles
III.	Travel
IV.	Moving Expenses
V.	Corporate Cards
VI.	Entertainment
VII.	Tickets
VIII.	Recognition
IX.	Purchasing
X.	PALCards
XI.	Petty Cash Fund
XII.	Independent Consultants
XIII.	Cellular Phones
XIV.	Exhibit

I APPROVALS

EXPENSES REQUIRING CERTIFICATION SIGNATURES:
In accordance to the University policy the Certification signature is required for:

Direct reimbursement for all types of expenses
Payment made direct to vendors for attendee's travel, entertainment and event tickets

Signatures:

CERTIFICATION - person being reimbursed OR attendee, is certifying the expense was incurred for official University/Foundation business in accordance with University/Foundation policies
SUPERVISOR/ AUTHORIZING Authority approves the expense is appropriate and authorized
ACCOUNT/ FUND CUSTODIAN approves that expense belongs on that account/fund. If either the Certification signer or the Authorizing signer is also the Account / Fund Custodian signer, then the 3rd signature is not required.

UCI FOUNDATION APPROVING AUTHORITY - final approval will be obtained from the Foundation approving authority - see Exhibit A

EXCEPTION TO SIGNATURES FOR SPONSORED EVENTS
If the entertainment expense is part of a University/Foundation sponsored event, the expense is being paid directly to a vendor, and the Certification signer is a Dean, Vice Chancellor, Associate Vice Chancellor, or Assistant Vice Chancellor that also attended the event then their signature shall serve for both the Certification and the Supervisor/Approval, as long as it does not create a conflict of interest.

This is for payments direct to vendors for event expenses, such as the caterer, lighting, or decorations. Examples of sponsored events are dedication, groundbreaking, retirement or recognition ceremonies. Payment for tickets to attend events/retreats are NOT covered by this exception.

SIGNATURES FOR EXPENSES NOT REQUIRING CERTIFICATION
All other expenses not covered above will only require the Fund Custodian and the Foundation Approving Authority signatures for payments made direct to vendors. Examples of these items are payment for books, office supplies, subscriptions, and printing.

EXCEPTION TO POLICIES
Some policies allow an exception to be considered. A justification statement must be submitted, and approval is by a Vice Chancellor, Associate Vice Chancellor, or Assistant Vice Chancellor. Please refer to each policy for details.

TIME LIMITS FOR SUBMITTING RECEIPTS FOR APPROVAL
All receipts for reimbursement of expenses incurred for University/Foundation business should be submitted to Foundation Accounting within 60 days of the date of the receipt. Receipts more than 60 days old require a justification statement, exceptional approval by a Vice Chancellor, Associate Vice Chancellor, or Assistant Vice Chancellor, and may not be allowed.

Fiscal Year End - It is important that all expense reimbursements be made within the same fiscal year as incurred. Reimbursements for expenses incurred prior to July 1 must be turned into Foundation Accounting by August 15th. After this date, reimbursements may not be made for prior fiscal year expenses. Exceptions to this will be reviewed on a case by case basis and will require a justification statement, and exceptional approval by a Vice Chancellor, Associate Vice Chancellor, or Assistant Vice Chancellor.

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II AUTOMOBILES

PRIVATELY OWNED AUTOMOBILES
1. The basic reimbursement rate per mile shall be consistent with University policy and procedure section 715 11. Under the applicable income tax regulations, travelers who claim this basic rate are not obligated to maintain records substantiating their actual costs of vehicle operation.
2. University policy and procedure section 715 11 will be applicable for employees whose actual cost of vehicle operation exceeds the basic reimbursement rate. The difference between the basic rate and the optional rate is tax reportable.
3. Employees requesting reimbursement for automobile expenditures shall submit a Foundation automobile expense form, Exhibit C. The date of travel, the purpose of travel and names of the persons attending shall be stated. The University mileage reimbursement rates, Exhibit B and the University local mileage chart, Exhibit D, shall be used to reimburse mileage. Employees claiming reimbursements are responsible for maintaining a travel log.
4. If mileage reimbursement is allowed, charges for ferries, bridges, tunnels or toll roads may be claimed in addition to the mileage. Reimbursement for parking expenses may be claimed while on Foundation business with required documentation. A description of the special circumstances for parking expenses in excess of $15.00 per day shall be noted on the Automobile Reimbursement form.
  Charges for valet service and an allowance for minimal gratuity shall be reimbursed if other parking is not available or as specifically approved by the approving authority.
5. Mileage may be reimbursed while driving for University business related reasons that result in expenses being incurred above normal commute. Refer to the University Travel policies for clarification regarding mileage on campus, and to or from your residence.
6. Routine repairs, tires, gasoline, or other automobile expense items shall not be allowed for the use of the privately owned automobile unless the automobile is part of an executive compensation agreement, (See Campus Foundation policy section A 3).
7. When a privately owned automobile operated by a University employee in the course of conducting University business is damaged by collision or receives other accidental damage, reimbursement for repair expenses borne by the employee up to $250 may be allowed. Expenses recoverable under insurance coverage is not allowable. Payment will be based upon receipts submitted by the employee and approved by the approving authority indicated in Exhibit A.
8. When private cars are used on Foundation business, employees will conform to Foundation policy regarding financial responsibility as specified in Exhibit N of this policy.
  Persons who use private automobiles on University business are required to certify that the vehicle has the minimum liability coverage in force. Employees shall be required to provide certification of their insurance coverage to the Foundation accounting department.

RENTAL AUTOMOBILES
1. Rental automobiles may be used when such rental is considered more advantageous to the Foundation than the use of taxis or other means of transportation.
2. Expense for renting an automobile, shall be reimbursed following submission of a Foundation expense reimbursement form, Exhibit E, and check request, Exhibit H supported by original documentation of the transaction for automobile rental service.
3. Expenses incurred by the traveler because of property damage to a car rented while on Foundation business is reimbursable as a travel expense, as it is consistent with the Campus Foundation Automobile Policy Section 1 G.

EXECUTIVE AUTOMOBILES
1. Executives with compensation agreements including coverage of vehicle leases and car related expenditures will follow the University Policy concerning executive automobiles, Exhibit N. The office of the president will announce annually the reimbursement rates allowed. This policy allows for executive to choose one of the following options:
  
  Option I
  The Foundation will pay the monthly lease payment for a vehicle. A mileage report for personal travel shall be supplied for tax reporting by employee to University accounting at the end of each year. See Exhibit O for University Policy limits.
  
  Option II
  The Foundation will compensate the executive a monthly cash allowance which is the equivalent value of a lease vehicle. The total amount of the cash allowance is tax reportable.

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III TRAVEL

It is the policy of the UCI Foundation that all official travel shall be properly authorized, reported, reimbursed in accordance with Foundation travel regulations. Travel expenses for personal travel shall not be temporarily funded by the Foundation. When a Foundation/University employee travels under the sponsorship of a non Foundation entity, the travel expenses will not be charged to a Foundation account unless Foundation business will be combined with the business of the non-Foundation entity.

Authorization shall be obtained prior to undertaking official travel. Travelers who fail to obtain prior authorization may be liable for the expenses incurred.

In general, travel expenses will be reimbursed for actual expenses incurred. Claims for reimbursement of expenses paid for others must include the names of the persons, and itemization of the expenses and supporting documentation.

The Foundation will follow University travel expenditure guidelines for subsistence expenses, Exhibit F. Refer to University travel policy 715. These guidelines shall be used to determine the appropriate expenditure level for requests for travel reimbursement. Reimbursement requests above the guidelines require a request for exception to expenditure guidelines and shall be approved by the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.

The following definitions and policies shall apply to the reimbursement of travel expenses:

SUBSISTENCE EXPENSES

Consist of charges for meals, lodging, and their attendant expenses and all charges for necessary personal expenses incurred while on travel status. Subsistence expenses shall not be reimbursed if they were incurred within the vicinity of an employee's headquarters or residence, or for travel that occurs for less than 12 hours in a single day. An exception may be allowed for certain meals that are part of an event, and a copy of the agenda must be submitted with the expense. Refer to University travel policy 715-07.

TRANSPORTATION EXPENSES

Consists of charges for commercial carrier fares; rental car charges; private car mileage allowance; emergency repairs to University cars; overnight and day parking; bridge and road tolls; necessary taxi, bus, or streetcar fares; and all other charges essential to the purpose of official travel.

Travelers must utilize the most reasonable and economical mode of transportation and the most commonly traveled route. Expenses resulting from the extension of route for the convenience of the traveler will be borne by the traveler.
1. Coach class or a similar reduced fare rate shall be used if available. Commuter air connections are allowed.
2. As exceptions to the above general policy regarding class of travel, the use of first class or higher cost services may be authorized by the Chancellor or his/her designee under the following circumstances:
  1. When first class service is the only service offered between two points.
  2. When use of air coach would adversely affect economy; e.g., when traveling by air coach would, because of scheduling difficulties, require an otherwise unnecessary hotel expense, circuitous routing, or an unduly long layover awaiting connections.
  3. When an itinerary necessarily involves overnight travel without opportunity for normal rest before commencement of working hours.
3. The traveler may elect for personal reasons to use surface transportation. Reimbursement for surface transportation shall not exceed the air coach rate. Refer to University travel policies (Section 715 11) for reimbursement of railroad, bus or ship.

MISCELLANEOUS TRAVEL EXPENSE

The following expenses may be reimbursed as travel expenses:
1. Business expenses: When incidental to travel and approved in advance: stenographer, typing, office services, equipment, supplies, rental of office or meeting rooms, telephone, fax and telegraph.
2. Special fees for foreign travel: passport and visa fees, photographs, certificates, affidavits, inoculations, currency exchange, and check cashing fees, etc.
3. At times, while on travel status, an employee may have an occasion to meet with donors or other executives. The guidelines to be followed would be the same as stated in Foundation Entertainment Policy V.

NON EMPLOYEES TRAVEL
1. Travel expenses incurred by non employees shall not be reimbursed from Foundation fund sources unless the travel has been approved in advance by the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.
2. Travel expenses incurred by non employees, with appropriate approval, may be reimbursed if Foundation business benefit can be shown for the non employee's travel; the procedure for reimbursement will be the same as for employees.

INTERVIEWEES TRAVEL
1. Reimbursement of travel required from personal interview of prospective appointees to positions requiring specialized training or experience of a professional, technical, or administrative nature may be authorized. Approval of the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor shall be obtained before any commitment of reimbursement of travel expenses is made to the prospective appointee.
2. Interviewees for whom reimbursement of transportation expenses is authorized must follow Foundation travel reimbursement policy.
3. Reimbursement of pre employment interview expenses is not considered to be reportable for federal and state income tax purposes provided that a Foundation Expense Reimbursement Form, Exhibit E, is submitted in accordance with Foundation policy.

TRAVEL EXPENSE CLAIMS
1. A Foundation Expense Reimbursement Form, Exhibit E and check request, Exhibit H shall be submitted to Foundation accounting within the time limits outlined in APPROVALS section, TIME LIMITS FOR SUBMITTING RECEIPTS FOR APPROVAL.
2. b. The following original receipts must be attached to and itemized on the Foundation Expense Reimbursement Form: In cases where receipts cannot be obtained or have been lost, a statement explaining the reason for the unavailability or loss must be provided, with exceptional approval is required. Exceptions shall be authorized by the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.
  1. Car rental agreement(s)
  2. Airline ticket stub(s)
  3. Actual itinerary/invoice showing actual cost of airline ticket(s) (Exhibit G)
  4. Local transportation expense(s)
  5. Lodging receipt(s)
  6. Miscellaneous business expenses that are appropriate (meal receipts, etc).
  7. Meal limits of University policy 715 12 will be used (Exhibit F)

TRAVEL ADVANCES

Travel advances are not allowed except in the following cases:
1. Prepayment of conference registration fees.
2. Travelers who have incurred credit card expenses and are obligated to pay for these expenses before the end date of the trip. A copy of the credit card statement and the original receipt shall be submitted with a completed check request.

REGISTRATION FEES

Registration fees are those payments made for professional conferences or course work. These fees may be incurred within commuting distance from the campus or while on travel status. Registration fees may be paid in advance through submission of a University check request, Exhibit H. The check request must be accompanied by supporting documentation indicating the cost of the course. This documentation may be a brochure, letter, or admission material. Registration fees must follow proper Approval procedures. Refer to APPROVALS section.

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IV MOVING EXPENSES

Moving expenses are those expenses allowable under certain circumstances to new members of the University staff hired to conduct Foundation Business. The Vice Chancellor will approve all agreements in advance. These agreements will be made in writing to the new employee.
University policy #715 16, Moving and Removal expenses shall be followed for payment of moving expenses incurred by the new employee.
Approved Transportation and subsistence expenses for the employee and the employee's family moving to the Irvine Campus will be reimbursed in accordance with Foundation Travel policies.
IRS regulations require that moving expenses that are paid by the Foundation be included in the employee's Wage and Tax Statement, Form W 2. University accounting shall complete the appropriate tax forms.

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V CORPORATE CARDS

The UCI Corporate charge card is issued through University Travel Accounting, is valid only while a cardholder is employed with the University, and is subject to the University policies covering corporate cards. If a cardholder terminates for any reason, the card must be relinquished to their supervisor prior to the release of the employee's final paycheck.
Expenses charged on the UCI corporate cards shall be reimbursed to the cardholder by completion of a Foundation expense reimbursement form, Exhibit E, check request, Exhibit H, and submission of original receipts. Expenditure guidelines outlined in the Foundation policies shall apply to all card purchases.

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VI ENTERTAINMENT

TYPE OF EXPENDITURES
When the Foundation acts as host, the occasion must, in the best judgment of the approving authority, be significant in the affairs of the University and the Foundation and not the type that the responsible individual would normally undertake in a personal rather than an official capacity. As a guide in reaching this decision, the approving authority must evaluate the importance of the event in terms of the costs that will be incurred, the benefits that are anticipated from this expenditure, the availability of funds, and the alternatives that would be equally effective in accomplishing the desired objectives.

Examples of situations meeting these criteria are:
1. When the Foundation is host to donors or prospective donors, the cost of meals, refreshment, tickets to performances or other forms of entertainment may be defrayed by the Foundation . The entertainment expenses of the spouse (or equivalent) of a guest or the official host may be reimbursed, provided a written explanation of how the entertainment serves as a bona fide Foundation business purpose is submitted. A request (Exhibit S) must be approved in ADVANCE by a VC, Associate VC, Assistant VC, and the employee's supervisor.
2. When the Foundation is host to guests or to prospective appointees for positions requiring specialized training, and/or experience of a professional, technical, or administrative nature, the costs of meals, refreshment, tickets to performances or other forms of entertainment may be defrayed by the Foundation.
3. When meetings of an administrative nature are held which are directly concerned with the welfare of the University or the Foundation, the cost of meals or refreshment may be defrayed by the Foundation. The meeting should take place over an extended period of time and the agenda should include a working meal to satisfy the requirement that the meal is part of the business function. Reimbursement will not be allowed when two or more employees from the same work location choose to go to lunch together to continue their business as an incidental part of the meal, or when the meeting could have been scheduled during regular working hours, or as a matter of personal convenience. (refer to University Business and Finance Bulletin, BUS79).
4. Cost of meals or refreshments are allowable when receptions are held in connection with conferences, meetings of a learned society or organization, and fundraising events. Refreshments for employee recognition, length of service awards, or retirement presentations are allowed on an infrequent basis only. (refer to University policy BUS 79)
  Meals or refreshments for employee birthdays, weddings, anniversaries, farewell gatherings (other than retirement), Secretary's Day, etc. are NOT allowable under Foundation or University policies.
5. When events in the community where prospective donors or significant community members are in attendance, the cost of meals, tickets or other expenses may be defrayed by the Foundation. These events are considered public relations or donor cultivation activities. The expense of the spouse (or equivalent) may be approved with written explanation of how the expense serves a bona fide Foundation business purpose. A request (Exhibit S) must be approved in ADVANCE by a VC, Associate VC, Assistant VC, and the employee's supervisor.
6. Social Organizations:
  The Chancellor will approve any requests for employee memberships to social organizations. The authority to approve these memberships may not be redelegated.
  Membership in a social organization shall be approved only if it is determined that the primary use of the membership will be for the conduct of official Foundation business. Such memberships shall not be with organizations that maintain unlawful discriminatory membership policies or practices.
  
  Each year an employee granted membership in a social club will be required to report to the accounting office his or her official Foundation business use and non business use. Based on the information reported by the employee, the accounting office will calculate the value of his or her non business use and inform the employee. The portion of the dues paid that is allocable to non-business use shall be treated as additional income, subject to withholding for income and social security taxes. If the employee terminates his or her employment with the University or becomes ineligible to use the membership, any dues paid by the University related to non business use must be reported by the employee to the accounting office before the employee's termination or ineligibility status becomes final.
  
  It is required that the employee maintain adequate records showing the total number of days of business and non-business use. Records should include dates, purpose of use and those in attendance.
  
  Whenever possible, institutional rather than individual memberships shall be obtained, as the former often allow participation by several or alternate employees.
  
  Payments to organizations for purposes other than initiation fees and/or dues shall be paid for following UCI Foundation entertainment policies and guidelines.
7. Meeting Refreshments
  The UCI Foundation purchases miscellaneous refreshments for supplying the Office of University Advancement. The Office of University Advancement serves as the administrative and fundraising office for the Foundation. In performing this function, University Advancement provides refreshments for business meetings. These purchases include coffee, cups, sugar, cream, tea, soda, bottled water and similar items. As these items are used, names of individuals using these items is not required.

AMOUNTS AUTHORIZED
1. Guidelines for the maximum "per person" meal expenditures for the person(s) being entertained and for the participating University employee(s) as will be established by the Vice Chancellor for approval by the Chancellor, Exhibit F. The per person includes food, beverages, tax, and gratuity. These rates do not include service personnel, delivery, or the rental of meeting or conference facilities, which may be charged as an additional expense. Exceptions to these expenditure guidelines require approval by the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.
2. For signature requirements refer to APPROVALS section
3. When a meal is part of a program, the per person meal guideline does not apply and the actual cost of the program shall be paid in full. Such programs should be approved in advance by the approving authority.

ALCOHOL POLICY
Purchase of alcoholic beverages is allowed for entertainment activities. The University procedure for Permit to Serve Alcohol on Campus must be followed.
CATERERS
Meals provided must follow the University procedures for approved caterers. For catering procedure refer to PURCHASING section and Exhibit K.
PAYMENT PROCEDURE
Entertainment expenses are paid by submitting a properly completed and approved Foundation expense report, Exhibit E, and a University check request, Exhibit H. The expense report must state the date of the entertainment, the purpose of the entertainment, amount of expense, and type of event. University Policy (BUS 79) requires a guest list containing the name, title, occupation, or group be attached to completed check request. All expenses must be supported by original receipts. Refer to APPROVALS section.
ADVANCES
1. In the course of conducting Foundation Business and special events, advance payments are sometimes required by the vendor. Advances are allowed for planning and executing such events. These payments include, but are not limited to, deposits for caterers; equipment rentals; valet/parking services; facilities rentals and florists. Refer to Accounting Manual 3 71-11.
2. Proper documentation (catering contract, quote, invoice, etc) will be submitted with a check request at least 14 days prior to the date the vendor requires the deposit/payment. The check request will be stamped as an ADVANCE and submitted to Foundation Accounting for approval, and then sent to University Accounting for payment. Specific details regarding advances are be maintained on file in the Foundation Accounting office and will be maintained for the period specified in UC records retention policy (UCI P&PM Sec. 721).

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VII TICKETS

GENERAL POLICY
Tickets to cultural, community and other entertainment events may be purchased by the Foundation for donor cultivation and public relations activities. Tickets may be purchased in advance. Names of persons attending the events are not always available at the time of the purchase. The Foundation is responsible for maintaining supporting documentation of the names of individuals attending the events.

The expense of a ticket for a spouse (or equivalent) may be approved with written explanation of how the expense serves a bona fide Foundation business purpose. A request (Exhibit S) must be approved in ADVANCE by a VC, Associate VC, Assistant VC, and the employee's supervisor.
AMOUNTS AUTHORIZED
Guidelines for the maximum "per person" ticket expenditure for tickets for events will be established by the Vice Chancellor University Advancement for approval by the Chancellor, Exhibit F. Exceptions to these expenditure guidelines require approval by the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.
PAYMENT PROCEDURE
Ticket purchases are made by submitting a properly completed and approved University check request, Exhibit H. The check request must state the date and type of event, the location, and amount of the expense per person. All purchases must be supported by documentation such as invitation, invoice, or event announcement.

The Foundation is responsible for maintaining records of individuals attending the event after the event has occurred.

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VIII RECOGNITION

DONOR/VOLUNTEER RECOGNITION GIFTS
1. Definition
  When the Foundation receives a donation or in the best judgment of the approving authority, a donor or community member should be recognized, NON CASH gifts or recognition items may be given. The occasion must, in the best judgment of the approving authority, be significant in the affairs of the University and the Foundation. Refer to University Policy G 42.
2. Types of recognition
  1. Recognition of community service, honors or awards, birthdays, anniversaries, illness or death in the family.
  2. Recognition of donation to the University or Foundation.
  3. Recognition of volunteer service such as hosting an event or participating in a fund raising campaign.
3. Expenditure Levels
  The donor recognition item should not exceed the following:
  Recognition item - $250
  Item that bears the University Logo (such as T Shirts, mugs, pens) - $75
  Sympathy gifts - $75
  
  Requests to exceed this maximum shall be made in writing to the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor documenting the special circumstances for the exception. A donor may receive more than one recognition item during the year, depending on the nature of the activities for that year in which the donor was involved. The Federal government requires that any gift or accumulation of gifts of $600 in a calendar year is reported as income. No one donor should receive more than $600 in recognition gifts in a given calendar year. If the $600 limit is exceeded through special circumstances, the University employee who authorized the purchase of the gift will be responsible for obtaining the social security number of the donor. The donor will be issued a 1099MISC. after the end of the year.
ELECTED AND APPOINTED OFFICIALS GIFTS - Refer to University Policy
G 42 and Guidelines for Campus Foundations.
No substantial part of the activities of the Foundation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, or participating or intervening in any political campaign on behalf of any candidate for public office.

Non cash Gifts to express appreciation or to promote goodwill may be given to an elected or appointed official, a civic or cultural organization, or a member of the local community. These gifts require approval by a Vice Chancellor, Associate Vice Chancellor, or Assistant Vice Chancellor.

Gifts cannot be given to any elected official, candidate for public office, organization, or committee, when the gift is a contribution to a political campaign or referendum.
EMPLOYEE RECOGNITION - Refer to University Policy G-41
1. RECOGNITION - An item of tangible personal property of minimum value may be presented to employees for noteworthy accomplishment, recognition of performance, or promotion. Such awards shall be non cash, and not to exceed $75. Example awards are flowers, tickets, fruit, books, or plaques (including ones which bear the name of the recipient). Recognition awards that exceed these amounts require exceptional approval from the Vice, Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.
  Employee recognition awards are meant to be occasional and therefore must be presented to an employee on an infrequent basis. Awards presented on a regular or routine basis do not meet the IRS test for exemption and are not allowed. In order to meet these requirements, awards in this category should be provided within an established recognition program and based on objective criteria. In addition, awards must be presented to employees on a nondiscriminatory basis.
2. RETIREMENT - Non cash gifts of tangible property for retirement are allowed. University Finance Bulletin G 41 shall be followed.
  The item must be awarded as part of a meaningful ceremony and should not be determined based on an employee's classifications. Exceeding the limit in the policy is not allowed.
3. SYMPATHY - Non cash gifts of tangible person property such as flowers, may be presented as an expression of sympathy in the event of the death or major illness of an employee or a member of the employee's family or household. The cost of such gift is limited to $75, unless exceptional approval is obtained. Refer to Business and Finance Bulletin G 41.

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IX PURCHASING

$1 $4,999 Purchases do not require purchase orders.
$5,000 to $30,000 Purchase order is required for purchases using Exhibit I and must be approved by the Fund Custodian and a Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.

$30,001 and over University purchasing procedures will be used for single purchases over $30,000.00 in value. University PO Request must be approved by the fund custodian, and a Vice Chancellor, Associate Vice Chancellor, or Assistant Vice Chancellor.

BIDS: For purchases under $50,000.00 in value, it is recommended that competitive bids are acquired to obtain the best value for the cost. For purchases OVER $50,000 3 written competitive bids are required, or a Purchase Review and Award Justification form filled out. If a vendor other than the low bid is selected, a statement outlining the reason for the selection will be included.
1. Blanket orders may be established in amounts up to $30,000.00 without utilizing the University purchasing procedures or contacting three vendors.
2. Catering expenditures are contracted through use of a UCI Foundation Catering Contract, Exhibit K rather than a purchase order. A copy of the contract shall be submitted with the invoice and a University check request, Exhibit H, for payment. An actual vendor’s contract may be used in lieu of the UCI Foundation catering contract form if all pertinent information is included.
3. Expenditures for performers, honoraria or for other professional services other than a consultant are contracted through the use of the UCI Foundation Single Payment Service Agreement, Exhibit L. Payment for honoraria over $350.00 per day shall require the Vice Chancellor's approval.
4. Books, subscriptions, registration fees and memberships do not require the use of purchase orders.
5. Purchases of equipment, furniture or other substantial items shall not be purchased through the Foundation. These items are purchased and inventoried through the University.
1. Purchase orders must be approved by an authorized approving authority, Exhibit A. Check requests submitted for payment of an invoice must be signed by the appropriate fund custodian and approved by a duly authorized approving authority.
1. The Finance and Administration office of University Advancement should be contacted when an employee is asked to enter into a contract for goods and services. The contract must be approved and signed in advance by the Vice Chancellor, Associate Vice Chancellor, Assistant Vice Chancellor or an officer of the UCI Foundation.
2. A Mutual Indemnification clause should be referenced in every contract submitted for approval. Acceptable wording is shown in Exhibit J and should be used as an addendum to a contract when it is deficient.

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X PALCARDS

The PALCard is a MasterCard credit card that is administered by University Purchasing. Individuals designated to purchase are selected, take a test, and are given authority to purchase items up to $2,500 per transaction on the PALCard.

It is the policy of the UCI Foundation to allow University PALCard holders the use of the card for the following purposes, in addition to the University Commodities Permitted List
- Non cash Donor/volunteer recognition gifts
- Noncash Employee recognition gifts including sympathy and retirement
- Decorations, linens, lighting, centerpieces for allowable events
- Flowers as gifts, bereavement or event decorations
- Tickets to events for donor cultivation
- Registrations even if travel is involved
PALCard holders are required to obtain authorization from the fund custodian, and follow the Foundation policies.
Final approval will be obtained from the Foundation Approving Authority see Exhibit A.
The basic policies and procedures shall be consistent with the University PALCard program. Food and travel are NOT allowed on the PALCard and are covered by the UCI Corporate Card policy. For detail information please refer to:
http://apps.adcom.uci.edu/expresso/econtent/Content.do?resource=88

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XI PETTY CASH

GENERAL PETTY CASH FUND
Petty Cash Funds within the Foundation may be established for departments conducting Foundation business. A memo specifying the names of the individuals who will act as the fund custodian and the alternate will be forwarded to the University accounting Office by the Foundation Accounting Office.

GENERAL CONDITIONS
1. Reimbursement for expenditures from Petty Cash Funds is limited to the policies established by the Foundation. Examples of expenditures include food, supplies, postage stamps and other miscellaneous expenses.
2. Petty cash purchases should not exceed $ 100 including tax per vendor per day.
3. All vouchers must be approved by the appointed authority or a duly appointed Foundation officer before reimbursements will be made.
4. A completed and approved petty cash voucher, Exhibit M, must accompany all sales slips or other evidence of purchase.
5. Original receipts are required for purchases. In cases where receipts cannot be obtained or have been lost, a statement explaining the reason for the unavailability or loss must be provided, exceptional approval shall be authorized by the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.
6. The person incurring the expense must submit their approved voucher for reimbursement to the petty cash custodian within the Time Limit stated in APPROVALS section.

USE AND OPERATION BY PETTY CASH CUSTODIAN
The following fiscal procedures govern the operation of the fund:

Petty cash custodians should submit their check request and vouchers to replenish petty cash when the balance is at 50%. At Fiscal Year end a final check request and accounting of actual cash on hand must be submitted to the Foundation Accounting office by August 15th.
1. Receipts showing clearly the vendor's name and adequate description of the items purchased, must be obtained in support of expenditures made from the fund.
2. When the fund approaches depletion, accumulated bills should be marked with the proper account to be charged, and forwarded to the University Accounting Office along with a University check request. The Accounting office will prepare a check made payable to the fund custodian in the total amount of the bills presented to reimburse the petty cash fund.
3. The custodian is accountable for the fund and is responsible for the physical security of the fund by keeping it in suitable locked storage, the accessibility to which is limited to the custodian.
4. When closing out petty cash, all receipts must be submitted for reimbursement, then the entire petty cash amount returned to the Foundation Accounting office.

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XII INDEPENDENT CONSULTANTS

DEFINITIONS
1. Employee
  Includes any individual who is presently employed by the University or whose separation from the University occurred within two years of the date of the proposed transaction.
2. Employer Employee Relationship
  An employer employee relationship exists when the university has the right (whether or not it exercises the right) to supervise and control the manner of performance as well as the result of the service.
3. Independent Contractor Relationship
  An independent contractor relationship exists when the University has the right to control only the result of the service, not the manner of performance.
4. Independent Consultant
  An independent consultant is an individual or organization outside the University of approved professional or technical competence that provides primarily professional or technical advice to the University in an independent contractor relationship.
POLICY
1. Arrangements to secure the services of an independent consultant may be entered into when a determination has been made that the services are special, temporary, or highly technical and they cannot be performed economically or satisfactorily by existing University staff during the course of their normal duties.
2. University Policy and Procedure Section 712 10, D 14 will be applicable for solicitation of proposals from qualified independent consultants. See Exhibit Q. In the event that it is not possible to obtain proposals, a sole source justification will be submitted for approval by the Vice Chancellor.
3. An independent consultant shall not hire any employee of the University to perform any service covered by the agreement.

REQUEST FOR PROPOSALS
In requesting proposals from independent consultants, the Foundation will provide the following information:
1. A description of the problem.
2. A general statement of what is expected to be accomplished.
3. Scope of the work to be completed, including any desired approach to the problem, specific limitations, questions requiring answers, and the extent to which assistance from the University staff will be available.
4. Firm or estimated time schedule, including dates for commencement of performance, submissions of progress reports, and for completion.
5. Proposed payment schedule.
6. If the amount of payment to an independent consultant is expected to be $15,000 or more in any 12 month period, proposals from 3 or more qualified independent consultants shall be solicited whenever possible. When competitive proposals are not solicited, the reason for not seeking competition shall be documented as a Sole Vendor. See Exhibit Q

PROPOSALS FROM INDEPENDENT CONSULTANTS
Proposals from independent consultants shall include, but not necessarily be limited to the following:
1. A description of consultant's qualifications with a brief list of similar types of consulting contracts successfully concluded and a sample of such work when appropriate and a description of the lead personnel and supporting personnel to be employed on the study.
2. An overall description of how the consultant will approach the problem; the amount of time, personnel, equipment and facilities required, and if any subcontractors are to be used.
3. The total cost of the study, any additional costs not included in the estimate, and desired method of payment.
4. The name and University position of any officer, faculty member or other employee of the University who holds a position in the firm.

INDEPENDENT CONSULTANT AGREEMENT
After an independent consultant has been selected, three fully executed originals of the consultant agreement, Exhibit R will be prepared. One will be directed to the University Accounting office, one for Foundation Accounting, and one for the consultant. Additionally, the Certificate of Insurance is required (Exhibit P).
AMENDMENTS TO AGREEMENTS
Any amendments to the original agreement, such as extension of termination date, expansion of the scope or change in payment of fees, shall require a written approval of the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor.
INSURANCE
The minimum insurance coverage shall be consistent with University Policy and Procedure 712 10. The current coverage required is specified within the consulting agreement, (Exhibit R).
APPROVAL
The Vice Chancellor or his/her designee is responsible for the selection of an independent consultant, signing the standard agreement form on behalf of the Foundation governing board, signing for the board in the case of termination of an agreement by the Foundation or the amendment of an agreement by either party.
PAYMENT FOR SERVICES
1. A consultant shall submit an invoice setting forth the appropriate charges and indicating the agreement number and taxpayer reporting number.
2. Authorization for consultant payments shall be a copy of the properly executed standard agreement form.
3. Payment shall not be made for services prior to the completion of a written agreement.
4. Payment shall be made in accordance with the schedule set forth in Article Ell, Section B of the agreement. In case of termination prior to completion of the work to be performed under the agreement, a determination shall be made of an equitable compensation to be paid for the work completed based on its value to the University, provided that such compensation shall in no event exceed the total agreement price.

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XIII CELLULAR PHONES

It is policy of the UCI Foundation to allow employee's the use of cellular phones for business use. Employees are required to obtain authorization from the Vice Chancellor, Associate Vice Chancellor or Assistant Vice Chancellor prior to obtaining a phone.

PURCHASE OF PHONE AND INSTALLATION
UCI Owned Telephones: Actual expenses for the phone and initial set up costs may be defrayed by the Foundation. Phones should be purchased through the Electronic Communications Services on campus as the University receives a substantial discount through contracts with a particular vendor. Employees will also contract for their phone service through ECS or by PALCard.

Employee Owned Telephones: In some circumstances employees may purchase the phone with a Non UCI contracted vendor, if these services are competitive, and the employee receives prior approval. The equipment shall remain the property of the employee and the cost may not be reimbursed.
MONTHLY CHARGES
To submit expenses for reimbursement in the 2 situations below, a worksheet is filled out detailing business calls vs. personal calls.

UCI Owned Telephones: Monthly service charges and actual phone usage tolls may also be defrayed by the Foundation. Calls of a personal nature shall be reimbursed by a personal check to UC Regents, or UCI Foundation, depending where the vendor was originally paid.

Employee Owned Telephones: The Foundation will reimburse employees for UCI business related calls. To be reimbursed a Check Request (Exhibit H) must be submitted, accompanied by a copy of the Cellular Phone bill, detailing the purpose of the calls.

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XIV EXHIBIT

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