With the publishing of the Discretionary Expenditure Policy, we will be utilizing this site to make clarifications and relate the answers to frequently asked questions regarding discretionary expenditures and all other policies.
Per section §177 of Kentucky's Constitution below, university funds cannot be used to make charitable donations.
Kentucky Constitution §177:
The credit of the Commonwealth shall not be given, pledged or loaned to any individual, company, corporation or association, municipality, or political subdivision of the State; nor shall the Commonwealth become an owner or stockholder in, nor make donation to, any company, association or corporation;
Please contact the NKU Foundation for clarification as to whether or not your Foundation funds may be used for the purpose of a donation.
At the suggestion of the auditors in order to more effectively manage cash operations, the Petty Cash reimbursement policy has been modified as outlined below. Employees can still be reimbursed for necessary petty cash purchases but the process has changed for amounts exceeding $10.00. Please note, since NKU is a tax-exempt institution, sales tax will not be reimbursed by the university.
For reimbursements less than $10.00
- An original invoice and completed Petty Cash Form should be taken to the Student Account Services Office (AC 235)
- For food items/meals a completed Meals and Entertainment Form must also accompany the original invoice
- Reimbursements for food or other non office/business related products require Procurement Services approval
For reimbursements greater than $10.00 but not exceeding $50.00
- Original invoice and completion of requisition (or a parked document if using Foundation funds) in SAP
- For food items/meals a completed Meals and Entertainment Form must also accompany the original invoice and be sent to Accounts Payable (AC 611)
- Funds will be reimbursed to you in the same manner you currently receive any other payments from the university (payroll, travel, etc.)
All cash and cash equivalent prizes and awards are taxable to the employee. When an employee wins a non-cash prize at a University sponsored event, per IRS regulations, the value of that prize may be taxable to the employee. A Prize and Award Form is to be completed by the department forwarded to HR/Payroll and Tax, AC 613.
When a prize is won by a non employee at a University sponsored event the Prize and Award Form must also be completed by the prize recipient. The recipient will receive a 1099 Miscellaneous form with the value of the prize which is taxable income to the individual.
Please note the $600 limit is our reporting requirement. From the IRS’ point of view all gifts should be self reported regardless of dollar amount, but we are required to report gifts/payments that exceed $600 or multiple gifts/payments where the combined total to an individual is $600 or more in a year.
All exceptions to the Food Service Policy must be attained from the Director of Business Operations and Auxiliary Services, regardless of funding source. All food served on campus, even those purchased with Foundation funds, are subject to this policy.
House Bill 387 has now amended Kentucky Revised Statute 45A.695(10)(A) with the following language, “No payment shall be made on any personal service contract unless the individual, firm, partnership, or corporation awarded the personal service contract submits its invoice for payment on a form established by the committee”. The Personal Service Contract Invoice Form shall be used for this purpose and for you convenience we have added fields so that it can be filled in online and printed.
This form will be made available to your vendor(s) so that they can fill out the form, sign it, and send it to the university administrator with their invoice(s). The university administrator of this contract will also need to sign this form and forward it to Procurement Services with the invoice(s). Procurement Services will be reviewing all of these forms and are happy to assist and fill in any information you or the vendor may not have.
