Payments with Component Unit Moneys – Foundation, Academic Enrichment Fund, and FCPA (Florida Clinical Practice Association)

Directive Statement

Departments must ensure the legitimate use of DSO funds.  All expenditures must:

1. Be reasonable and benefit the University
2. Fall within the donor’s intent for the gift
3. Not jeopardize the DSO’s tax-exempt status
4. Comply with all applicable statutes and regulations

No DSO funds may be used for:

1. First class travel
2. Private club memberships
3. Lavish or extravagant entertainment
4. Political or charitable contributions
5. Personal benefit to an individual (other than an incidental benefit)

Reason for Directive

Foundation Funds – In accordance with Florida Statutes Section 1004.28, the University of Florida will serve as a processing agent for Direct Support Organization (DSO) expenditures.  Expenditures of DSO moneys for and on behalf of UF will be made within the myUFL system.

Faculty Practice Plan Funds (FPP) – It is policy that Faculty Practice Plan funds be expended for purposes consistent with and supportive of the objectives of the respective College, the Health Science Center, and the University of Florida, in accordance with approved faculty practice plans for the Colleges of Medicine, Dentistry, Public Health and Health Professions, Nursing, Pharmacy, and Veterinary Medicine.

Who must comply?

UF campus departments when expending DSO or FPP funds.

Requirements for DSO Funds

Campus departments must follow all UF business processes when expending DSO moneys including:

1. Competitive procurement thresholds and processes (including bid/quote limits) apply to any items procured for UF using DSO moneys
2. Contract and requisition business rules
3. Limitations on which types of expenses will be allowed to be paid unencumbered
4. UF directives on travel reimbursements (actual lodging and the State of Florida rates for meals and mileage), including pre-approval and reimbursement of travel in myUFL
5. UF faculty and staff who are entertaining prospective candidates, speakers, consultants, etc., should charge those costs to entertainment expense account in myUFL.  The actual amounts of reasonable and appropriate entertainment expenses may be reimbursed (See the Directive on Entertainment)
6. Travel and entertainment expenses for fund raising and development purposes, or otherwise for the purpose of accomplishing the express mission of the DSO, will continue to be processed directly by the DSO in accordance with its policies

Gifts to Employees

In accordance with IRS regulations, generally gifts to employees must have a value of $75 or less to avoid being taxable income to the employee.  Cash and gift certificates are always considered taxable income and therefore may NOT be given.

Exception to these regulations: Gifts for significant occasions (e.g. retirement)

Please contact the DSO Accounting Department.  Such a gift could have tax implications to the individual receiving the gift.

Documentation

All disbursements and expenditures must have written documentation suitable for auditing purposes.

If the DSO discovers a problem with an expenditure (including violation of donor restrictions), then the DSO will notify the University of Florida Controller, who will be responsible for ensuring the campus department reimburses the money that was inappropriately or improperly disbursed.

The UF Foundation may have additional requirements and guidelines for making disbursements utilizing UFF Source of Funds.  These policies can be found on the UF Foundation Disbursement form.

Faculty Practice Plans (FPP)

Items that can be paid from FPP funds include:

1. Enrichment of the academic activities of a department
2. Provision of appropriate salary and certain fringe benefits to designated faculty of the respective College
3. Reimbursement of costs incurred in meeting professional responsibilities subject to the University’s limits on travel reimbursements
4. Support of research and educational programs
5. Procurement of research or medical equipment subject to the University’s procurement policies
6. Defrayal of departmental operational expenses

Items that can NOT be paid from FPP funds include:

1. Personal or other expenses not having a direct business purpose associated with the mission of the College

Exceptions to this policy for food and beverage can be included if:

1. Made for meeting purposes and are supported by a statement of business purpose
2. Made for entertaining or recruitment purposes and are supported by a statement of business purpose
3. They are coffee and water services for departments

Gifts from FPP Funds

Permitted gifts must be:

1. Nonmonetary
2. Infrequent
3. De minimis having a value of $75.00 or less, except for employee length of service awards, such as retirement gifts, may have a value of up to $400.00
   • Subject to IRS requirements

The following gifts are not permitted:

1. Gift certificates or monetary gifts for any purpose or any amount
2. Costs of holiday, retirement, or miscellaneous parties which are frequent, or for which the value of the benefits to participants is unreasonable, lavish, or extravagant
3. Tobacco products
4. Parking decals for personal automobiles
5. Consultant fees to any state employee
6. Petty cash funds unless approved by the Controller of the University of Florida
7. First class or business class air travel, except that business class travel on flights lasting longer than nine hours is acceptable; air flight life/accident insurance
8. Contributions to political organizations
9. Fines and penalties resulting from violation of the law or local government ordinances

Exceptions are permitted, but only with the express written authorization of the Senior Vice President of Health Affairs.  Colleges may enact a policy which is more, but not less, restrictive than this Health Science Center-wide policy.

Faculty Compensation Plan Assessment (FCPA) Funds

Fund 171, Source of HSCFCPA, will be utilizing the policies developed by the FCPA.

These policies can be found on the FCPA Portal. The Portal uses GatorLink authentication.  Once in, you can navigate to the FCPA -> AP -> APDocuments -> Public -> FCPA_AP_Policies to reach the document.

Last Reviewed

Last reviewed on 06/28/2024

Resources

UF Foundation Disbursement form

Contacts

Disbursements: (352) 392-1241

UF Foundation Accounting Department: (352) 392-9503

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