UTDBP3097
Use of Funds

Policy Statement

Purpose

It is the policy of the University of Texas at Dallas that all expenditures are consistent with the University's mission, applicable federal and state laws, University and UT System policies, and ethical practices. Expenditure decisions should be evaluated and approved based on guiding principles of reasonable cost and best value for the University. These guiding principles shall be continually reviewed and approved through the organizational approval processes within the University. The purpose of this policy is to provide guidance regarding how University funds may be spent.

General Guidelines for the Expenditure of Funds

Generally, limitations on use of funds is often based on funding source. Comon funding sources include:

• State appropriations: Funds allocated from the state, statutory tuition, lab fees. These are funds beginning with 20xx and 22xx.
• Designated Funds: Funds designated for a specific use. These are funds beginning with 3xxx.
• Designated Tuition: Tuition authorized to be charged in addition to the statutory tuition as designated by the governing board. This is fund 3000.
• Faculty Startup: Funds allocated to new tenure-track faculty to establish their research program. These funds can include funds 3004, 3740, and 3962.

Common limitations include transfer of funds, travel, business meals, purchase of alcohol, or gifts.

This policy makes no attempt to codify all expenditure scenarios. Rather, this policy shall serve as a broad guideline of expectations. Specific guidance and processing procedures for the expenditure of funds can be found in the Use of Funds Guide on the Office of Budget and Finance website.

Additionally, there may be specific requirements for the method used to purchase some items. For example, some software cannot be purchased on a One Card, but may be purchased via a Purchase Order. For details, please see:

UTDBP3057: Purchasing Policies
UTDBP3104: Travel Expenses

Goods and Services for Personal Use

University funds must be used for University academic, research, or business purposes and may not be spent on goods or services for personal use. "Personal use" is defined as use of funds:

1. for a purpose unrelated to the individual's University employment activities; and
2. that primarily furthers a personal interest of the employee or the employee's family, friend or associate.

Expenditures that are determined to be personal use will require reimbursement. Repeat violations may result in disciplinary action, up to and including termination.

Awards and Gifts

The University allows the reasonable use of University funds to provide modest gifts for a valid business reason consistent with the University's mission of instruction, research, and public service. These may include awards for employee service and achievement, expressions of sympathy, or acknowledgement of distinguished visitors in furtherance of the University's mission.

Awards and gifts provided to employees are not an entitlement and may be awarded on an infrequent, ad hoc basis to recognize significant events or accomplishments.

• Employee Awards and Gifts: In accordance with IRS regulations on de minimis fringe benefits, all employee cash awards and gifts are taxable and will be reported on the employee's W-2. Non-cash employee awards and gifts of tangible personal property with value greater than $100 will be reported on the employee's W-2 as taxable income. Departments must notify the payroll office of the amount of the gift/award for appropriate processing.
• Employee Awards: Includes cash or noncash items given for meritorious performance, productivity, or service milestones. Award recipients must be determined through an objective, documented evaluation process (i.e., the University's annual service award program) and award amounts must be predefined in the guidelines for administering the award. Award programs must be approved by the President or a designee. Cash award payments to employees must be processed through the UTD payroll office.
• Employee Gifts: Includes noncash items of nominal value given in conjunction with a significant event, such as an employee's retirement, to express appreciation or gratitude. Gifts are not related to job performance or the result of negotiation.
• Expression of Sympathy: In the case of serious illness or death, University funds may be used to send cards and modest gift baskets or floral arrangements of nominal value to students, employees, and friends of the University or their immediate family members. Gifts should be consistent with the type of recognition being given.
• Staff/Personal Celebrations: University funds may not be used for gifts for employee birthday celebrations, weddings, baby showers, anniversaries, holiday celebrations, or other similar events.
• Student or Prospective Students Awards: Includes tangible personal property given to students for academic achievement, recognition or a competition. It also includes tangible property given to prospective students during a student recruitment event. The value of awards of this nature may be taxable to the recipient and reportable by the University to the recipient and to the IRS to the extent they exceed IRS thresholds.

Gift or award payments to students or prospective students must be approved by the School Dean or Division Head and the Vice President for Budget and Finance or a designee. These payments must be properly substantiated with appropriate documentation. Gift or award payments to students must always be coordinated with the Office of Financial Aid and may impact the student's financial aid package.

• Student Employees: Gifts or awards to student employees should follow the above guidelines for employee gifts and awards if the gifts or awards are given to the student employees in their role as employees. Gifts or awards to student employees should follow the above guidelines for student gifts and awards if the gifts or awards are given to the student employees in their role as students.
• Distinguished Visitors: UT Dallas frequently invites visitors to provide guest lectures, speak at conferences, or assist the University in other ways. In cases where the visitor is not otherwise compensated, it is appropriate to provide a non-cash gift of recognition of nominal value for their contributions. Gifts of tangible personal property should be consistent with the type of recognition being given.

The following restrictions apply to all types of gifts and awards.

• Purchase of Gift Cards Not Allowed: The purchase of gift cards for distribution as recognition or awards is prohibited. (For information about use of gift cards to reward participation in research studies, please see UTDBP3036, Policy on Payment of Research Subjects.)
• Payment from State Appropriations, Tuition, and Mandatory Fees Not Allowed: Employee awards and gifts may not be processed using State Appropriations, tuition, or mandatory fees. Departments may use other unrestricted funds, including designated funds not derived from tuition and fees, gift funds, endowed funds, and restricted funds if allowed by the sponsor/donor. For more information, please see the Use of Funds Guide on the Office of Budget and Finance website.
• Nominal Value: Gifts and awards of tangible personal property should be consistent with the type of recognition being given and must be of nominal value. The University has established its nominal value to be $100 or less. The total value of any tangible personal property gift in excess of $100 may be taxable income to the employee recipient.

Cellular Communications Equipment

As of September 2019, the University discontinued the practice of providing a cellular communications allowance or device reimbursement to individuals. Similarly, the University does not provide cellular communications equipment to individuals for routine use. In unusual situations where there is a legitimate business or research need that exceeds routine use, departments may opt to purchase cellular communications equipment and an associated service plan. These purchases must be coordinated through the Office of Information Technology (OIT) and are subject to the rules outlined in this policy.

Cellular Communications Equipment includes cellular telephones, laptops or tablets with mobile data plans, mobile hotspots, and any supporting equipment such as peripherals, chargers, and cases. The University does not provide cellular communications equipment or service plans for an individual's routine use. Departments who choose to purchase cellular communications equipment must be able to demonstrate a legitimate business or research need, beyond routine use. For example, mobile devices used to conduct telephony research are acceptable. This and any other unusual circumstances must be pre-approved by the user's department. Providing an individual with a mobile device to facilitate contacting the individual when travelling would not be acceptable.

When a department purchases cellular communications equipment, the devices are University property and must be used solely for University purposes. Under IRS regulations, personal use of a University-owned device may be considered a taxable benefit to the employee. Employees must retain records related to the business use of the device. Employees with University-owned equipment may request copies of their service plan records as needed from the Office of Information Technology.

Employees with University-owned devices are responsible for the following:

• Ensuring that the device is used for University business only.
• Maintaining records as evidence of the sole business use of the device.
• Ensuring that the device is returned to the University when it is no longer needed or employment in a role requiring the device ends.

Entertainment and Official Occasions

Entertainment expenditures for reasonable and appropriate business purposes, including meals and catering, must be paid from institutional funds. Institutional funds shall include designated, auxiliary and gift, unless prohibited by the donor, as well as research awards having the express approval of the grantor. Funds appropriated by the State of Texas shall not be used to pay for entertainment expenditures.

Expenses are reasonable when they are appropriate for the nature of a particular business event, e.g., a dinner associated with gift development or a lunch with a faculty or staff member being recruited, and readily justified as having an appropriate business purpose. "Appropriate" means neither meager nor extravagant.

University employees may be reimbursed for expenses incurred for the purchase of alcoholic beverages when dispensed in conjunction with University-related business and approved by the appropriate Vice President or Dean. Such reimbursements must be made from non-appropriated funds (derived from sources other than student tuition and fees), including gift and endowment funds (unless prohibited by the donor). When alcoholic beverages are purchased in conjunction with meals, the maximum reimbursement rate for that meal will apply.

All expenditures related to entertainment shall be processed by the University in accordance with Federal and State laws, and evaluated and approved in accordance with the best value for the University and at a reasonable cost. These two guiding principles shall be continually reviewed and approved through the organizational approval processes within the University.

Lobbying and Political Activities

Expenditures related to lobbying and political activities must comply with Texas Government Code, Section 556. Generally, this statute prohibits the use of Institutional funds in order to influence the outcome of an election, the outcome of a legislative measure, agency rules, ordinances, or other government policies, including contributing institutional funds to candidates, parties, or political action committees, or reimbursing faculty or staff for contributions to political campaigns. Funds from state appropriations may not be used to employ a lobbyist or other person required to register with the Texas Ethics Commission per Texas Government Code § 305.003.

Parking

As of September 1, 2023, the University of Texas at Dallas discontinued the practice of allowing University departments to pay for parking permits for individual University employees using University funds.

Departments may purchase a parking permit that is owned by the department and used by multiple individuals as needed. The purpose of a departmental permit is not to replace the need for employees to purchase their own parking permit, but to facilitate ease of parking when employees are performing their job duties on campus. It is the responsibility of the department head or their designee to ensure departmental passes are used appropriately. Departmental permits must be purchased via IDT or journal transfer - not on a University One Card. Any University funds may be used to purchase departmental parking passes.

Departments may also purchase permits for guests, suppliers, or contractors, when appropriate. These permits must be purchased via IDT or journal transfers - not on a University One Card. Also, the cost must be included on an independent contractor's 1099-NEC tax form as a taxable benefit.

Payments to Research Participants

Please see UTDBP3036: Policy on Payment of Research Subjects.

Relocation Expenses

The University of Texas at Dallas may elect to pay new employees who are relocating to the Dallas / Fort Worth area a flat relocation payment. The employee may use the relocation payment at their discretion. The appropriate Dean or Vice President must approve the payment of relocation expenses and the amount approved must be documented in the written offer of employment. It is strongly recommended that the Letter of Offer require at least a year of service for retention of the relocation payment, and note clearly that the entire amount will appear as taxable income in the employee's W-2, as no taxes are withheld at time of payment. All payments must comply with Internal Revenue Service guidelines.

Relocation expenses must be paid from institutional funds administered by the department. Institutional funds include designated, auxiliary, unrestricted gifts, restricted gifts and contracts with express approval of the donor or grantor. Funds appropriated by the State of Texas shall not be used to pay for relocation expenditures.

Sponsorships and Donations

Sponsorships may be permitted if UT Dallas receives commensurate recognition or other benefit.

Transactions where there is not commensurate benefit to the University, such as gifts and donations, are prohibited.

Scholarships serve a public purpose and thus are not considered a sponsorship, donation, or gift for the purposes of this policy.

When in doubt whether an expenditure is a sponsorship or donation, please contact reporting@utdallas.edu in advance.

Travel Expenses

All travel reimbursements must be for actual, reasonable and necessary expenses, incurred for official University business, and authorized by the appropriate supervisor. Travel must be authorized in writing prior to incurring any travel related expenses. Airfare arrangements must be booked through one of the contracted travel agencies. Information on travel agencies as well as The University of Texas at Dallas travel reimbursement policy, procedures and guidelines, including the current travel agents and car rental agents can be found on the Arranging Travel pages on the Office of Budget and Finance website. Some sources of institutional funds (such as gifts or grants) may impose additional restrictions and approvals on travelers.

Employee travel must be planned and conducted to achieve economy and efficiency considering all relevant circumstances while complying with this policy and related guidelines or procedures. Travel expenses must be reasonable, appropriately documented and properly authorized.

Lodging: Conference Hotel expenses will be paid or reimbursed at the standard conference rate. Non-conference hotel expenses should be reasonable but may not exceed the GSA lodging allowance without approval from the traveler's Fiscal Officer, Dean or Vice President.

Meals: Employees in travel status overnight will be reimbursed the lesser of the actual cost of meals or the GSA meals allowance. Travelers who do not incur an overnight stay are not eligible for meal reimbursement.

Transportation:

• Rental vehicles will be reimbursed or paid via direct bill for university business. The university's contracted car rental company's rental cost includes insurance coverage. If a rental vehicle is used for both personal and University business, only the portion attributable to University business will be reimbursed.
• Mileage reimbursement shall be based on the shortest, most cost effective and reasonably safe route.

University faculty or staff may only be reimbursed for actual expenses incurred. Travelers may be required to submit a supplemental explanation or other documentation to substantiate charges that exceed established guidelines.

Applicable Laws & Regulations

UTDBP3036 - Policy on Payment of Research Subjects
UTDBP3057 - Purchasing Policies
UTDBP3104 - Travel Expenses
UTS159 - Purchasing
Rule 20901 - Procurement of Certain Goods and Services; Contract Management Handbook
Texas Government Code 305.003
Texas Government Code Section 556