APS Glossary of Terms

a framework for evaluating whether or not it is appropriate to use university funds when incurring certain expenses. The list below contains a series of questions designed to test the propriety of expenses by forming a framework for evaulating each transaction. An expenditure of university funds will be considered proper only if it meets all tests of propriety. Is this transaction: 1. For official university business? 2. In the best interests of the university? 3. The most effective way to accomplish official university business? Meaning that, without the expense, would programmatic objectives be difficult or otherwise more costly to achieve? Or would the impact, level, or quality of the achievement be reduced? 4. In compliance with applicable policies, laws, regulations, and rules; and contracts, grants, and donor restrictions including having the required approvals and authorizations by the appropriate fiscal role? Consult with the campus Controller for questions about whether or not a transaction is in compliance and with the Administrative Policy Statement "Fiscal Roles and Responsibilities" for information on fiscal roles. 5. Within the available resources of the responsibility unit, taking into consideration all outstanding commitments and encumbrances? 6. Directly beneficial to the responsibility unit where it is being charged? 7. Reasonable? Meaning that the quantity and quality of goods or services being purchased is sufficient to meet the university's identified need without exceeding it. 8. In compliance with university conflict of interest provisions? Meaning that, if an employee derives private gain, or appears to derive private gain, as a result of the transaction, then the transaction violates the conflict of interest provisions stated in Regent Law, Regent Policy, and in the Administrative Policy Statement, "Conflict of Interest Policy." If any of these questions receives a "no" response, then the expense is not appropriate for university funds. Evaluating the propriety of university expenses requires the exercise of a high degree of judgment and discernment. Therefore, consider the following when deciding whether or not a particular transaction is a proper use of university funds. • "Would a university outsider such as your dentist, a teacher at the local elementary school, the clerk at your grocery store, or your neighbor – consider the expenditure to be a reasonable and necessary expense of public funds? • "Would you want others such as newspaper, radio, television, or other media outlets knowing and reporting about the expenditure?" Think about whether an outsider, such as the general public or an auditor, would consider the expenditure a reasonable expense for university business and an appropriate use of university funds.