University Restrictions on Expenditures

All accounts have restrictions on how funds may be spent. For example, NSERC research accounts have a long list of expenditures that must not be charged to accounts funded by NSERC.

In addition to specific restrictions made by granting agency noted above, funds expended from any University account must be for a purpose that is related to the mission of the University. Since it is not always clear from information on supplier invoices what the purpose of expenditure is, further explanations of the purpose of the expenditure is required in some cases. In other cases, approval from a level higher in the organization than the originating organizational unit would be appropriate (i.e. Dean, Vice Principal or Principal) along with an explanation of the business purpose.

1. If the business purpose of the expense is not readily apparent on the invoice because of the nature of the good or service provided, a detailed description should be added to the cheque requisition. For example, a cheque requisition authorizing a payment to a taxi company or car rental agency should include the following information:

• person(s) traveling
• date of the trip
• reason for the trip

2. Expenditures for such items as coffee makers, televisions, kettles, toasters etc. should have their use and physical location indicated/detailed on the cheque requisition, procurement card reconciliation or purchase order that authorizes the payment.

Examples of the type of expenditures that require approval from a level higher in the organization than the originating organizational unit or individual (i.e. Dean, Vice Principal or Principal) follow:

• Travel and Entertainment
• Donations to other organizations
• Gifts *** or receptions for University employees.

3. Expenditures that should never be processed through a University account include the following:

• Any expenditure for personal purposes**. This would include (but is not limited to) office equipment and supplies, photocopying, long distance calls, courier services, and postal services.

The only exception to this general rule would be if a reliable system exists within a department that ensures that personal photocopying, long distance charges or courier costs are identified and recovered on a timely basis and that sales taxes (if any) are remitted to the appropriate level of government.

• Payments to staff members to compensate for the performance of duties that are considered to be within the general scope of the duties unless overtime hours or other payments have been pre-approved by a supervisor and/or department head.
• Decorations for non-public spaces such as framed art and plants.
• Parking and speeding tickets.

** Please note that personal long distance calls may be made by using a calling card. There is a post office and copy centre in John Deutsch University Centre. The Campus Book Store stocks a wide range of office supplies.

*** Gift certificates intended for employees may not be purchased from a university account due to Canada Customs and Revenue Agency guidelines.