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Business Office

Use of University Funds

  • University expenditures must comply with IRS Accountable Plan guidelines. The guidelines of an IRS Accountable Plan are:
    • An accountable plan is a process of reimbursing employees for their work-related expenses.
    • Accountable plans are not subject to taxation, as they are not considered a form of compensation.
    • Costs can only be considered part of an accountable plan if they are business-related, accurately reported, and if excess reimbursements are returned.
    • If a reimbursed cost is considered non-accountable, it is subject to taxation and must be returned within 120 days.
    • Expenses must be submitted within a reasonable amount of time.
  • University funds are to be used for necessary business expenses only. Funds are not to be used for personal reasons, including purchasing gifts for employees or other individuals. Questions about the appropriate use of University funds should be directed to a budget officer or to the Business Office.
  • No Lavish or Extravagant Expenses - As a tax-exempt organization, the university is responsible for determining whether to reimburse, not to pay, or to reduce payments for expenses that appear unreasonable and unjustified. Paying or reimbursing for "lavish" or "extravagant" expenses is unacceptable. These Internal Revenue Service terms are used in Internal Revenue Code Sec. 162 and repeatedly utilized in other IRS documents to describe expenses that are deemed nondeductible because a reasonable person would consider the expense to be much higher than expected.
  • All items purchased directly by the university or indirectly by reimbursement to university
    staff, become the property of Illinois Wesleyan University
  • Alcohol
    • Prior approval is required for alcohol to be served at IWU sponsored events. Approval must be granted prior to any deposit being paid for an event where IWU pays for alcohol
    • The following departments may authorize alcohol purchases
      • President’s office (all departments)
      • Provost’s Office (all academic departments)
      • Alumni Engagement (their budget only)
      • Advancement (their budget only)
    • Alcohol may be purchased in small group meals honoring distinguished guests or alumni. All reimbursements or transaction envelopes including alcohol should be approved by one of the above mentioned parties.
  • Awards/Giveaways/Prizes
    • Awards, giveaways, and prizes can have stringent tax reporting requirements. A receipt for the item awarded, along with the social security number of a recipient must be submitted immediately, or as soon as possible after an award being issued. De Minimus Gifts are not taxable. These include non-cash items up to a fair market value of $100. Cash or cash equivalents, such as gift cards or gift
      certificates, are never considered de minimis and must be taxed. Contact the Business Office with any questions
    • Achievement awards of tangible personal property may be given under certain conditions for length of service or safety achievement. Please see the Business Office for guidance.
  • Electronics
    • In general, technology for offices and classrooms should be acquired through IT
    • Low-value uncatalogued equipment (e.g. computer mouse, usb headsets) may be purchased with departmental funds
    • Items not acquired through IT will not be serviced or inventoried by IT
  • Meals & Entertainment
    • Purchasing of food by departments should be limited to specific university business functions
    • Sodexo has a right of first refusal for on-campus catered events. Do not obtain catering from outside vendors without first consulting Sodexo.
    • The reasonable cost of gratuity to service personnel will be reimbursed
    • Reasonable entertainment expenses with a documented business purpose are acceptable. The Business Office reserves the right to deny payment of entertainment expenses that appear lavish or lack proper documentation.
  • Software
    • Consult IT prior to any software purchase or subscription
    • Software licenses must not be purchased for personal use
    • An IWU email address must be used when purchasing software subscriptions
    • Software or applications which are duplicative in nature with a program provided by the university should not be purchased. (e.g. IWU has an institutional license with Adobe, Adobe software licenses should not be purchased by individual departments, nor should an application which performs a task that can be completed with Adobe products be purchased)
  • Gifts
    • Departmental funds should not be used to purchase gifts of any kind, including sympathy gifts. Requests for flowers for a bereaved individual should be forwarded to Human Resources for an employee, or Student Involvement for a student. Please use discretion in what constitutes a gift as opposed to a reward or prize. A reward or prize should be issued in the event of a specific
      achievement or service to the university. Examples of gifts: birthday cards, retirement gifts, get well soon cards. Examples of prizes/awards: Honoraria paid for a speaking engagement, an annual award for academic excellence, a prize for a random drawing at a club event.
  • Student Stipends, Scholarships, and Fellowships
    • Payments received by students are considered tax-free if they are enrolled and the amounts received are used to pay for tuition, fees, books, supplies or other expenses required for enrollment. Amounts used for room, board, and other incidental expenses are excluded.
    • Please contact the Business Office for further guidance on these types of payments.