Washington State University
BUSINESS POLICIES AND PROCEDURES MANUAL

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Using Discretionary 17A Accounts

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Expenditures from discretionary accounts must benefit WSU, supporting one or more of the University's missions of research, education, and public service. The use must conform with the donor's intent for the gift. Additionally, such expenditures must meet the test of public scrutiny for appropriateness.

Vice presidents or deans (and designees) are responsible for administering discretionary accounts.

According to the following regulations, expenditures related to "official University-sponsored events" are often allowable. An official University-sponsored event supports one or more of the University's missions and is approved by a vice president, dean, or designee.

The following list of allowable expenditures is not all-inclusive.

Allowable expenditures include costs for:

• All purposes for which state of Washington public monies or federal monies are spent.


• Scholarships and fellowships. NOTE: Scholarship expenditures are processed through Financial Aid and are not subject to procedures in this section. See 30.90 to authorize and process a departmental scholarship.


• Retirement events for retiring employees. NOTE: Only one retirement event per employee may be supported by discretionary monies.


• Hosting official University-sponsored events.


• Employee and student excellence awards provided through approved University programs.


• Admission for employees to attend social or business events when attendance is required by the University.


• Travel to meet with potential donors, prospective employees, and prospective students. NOTE: An official should use discretion when approving such travel. He or she should send only the minimum number of employees required to accomplish objectives.


• Expenses relating to interviews with prospective employees or meetings with prospective donors. NOTE: An official should use discretion when approving travel related to interviews or donor cultivation. He or she should send only the minimum number of employees required to accomplish objectives.


• Meals for non-University employees included in official University-sponsored events.


• Banquet liquor permits and special occasion licenses for official University-sponsored events (see 70.29).


• Catering and beverage expenses for official University-sponsored events.


• Moving expenses including those expenses which exceed the amount payable from state funds when approved in advance by the responsible vice president, dean, or designee.


• Travel expenses which exceed the amount payable from state funds and are related to an employee's official duties. Such expenditures must be approved in advance by the responsible vice president, dean, or designee.


• Travel expenses for a prospective employee's spouse's travel when approved in advance by the responsible vice president, dean, or designee.


• Membership dues, a license, or a certification which enhances an employee's ability to perform position duties. The expenditure must be approved by the responsible vice president, dean, or designee. (See also dues, licenses, and certifications under nonallowable expenditures.)


• Financial assistance to a WSU-related organization in support of an official University mission. (NOTE: Such an expenditure may take the form of a direct purchase on behalf of the organization or a contribution to the organization's account. See below for contribution procedures.)

The following list of nonallowable expenditures is not all-inclusive.

Discretionary account monies may not be used to pay for:

• Expenses without supporting documentation, e.g., receipts.


• Expenses of a personal nature unless the personal benefit is clearly incidental to the primary purpose of benefiting the University.


• Meals for University employees or students unless other regulations permit meal payment. (See 70.31 and 95.06.)


• Flowers and other gifts for University employees, students, and family members unless specifically permitted by other University regulations.


• Payment of travel meals, lodging, and transportation expenses for an employee's spouse.

EXCEPTION: Such expenses may be allowable if the responsible vice president , dean, or designee has determined that a spouse's attendance is necessary for the conduct of official University business. The responsible official must approve such expenditures in advance of the travel.

• Purchase of liquor or other beverages to be stored for future use unless approved by the responsible vice president.


• Food, beverages, or decorations for an unofficial event, e.g., a party for a birthday, holiday, anniversary.


• Office decorations for a personal office space.


• Membership dues (e.g., membership in a sports club, social club, service club, discount store), a license, or a certification which does not enhance an employee's ability to perform the duties of her or his position.


• A contribution to any individual, organization, or institution which is unrelated to WSU.


• Gratuities not associated with meals, unless specifically permitted by other University regulations.


• Fines for illegal actions, e.g., parking or traffic infractions.


• Loans to University staff or faculty.

Departments are to use standard University procedures and forms when making expenditures from discretionary accounts. (See Chapter 70 for purchasing procedures and Chapter 95 for travel procedures.)

Allowable expenses must be approved for payment by a vice president or dean (or designee) who is responsible for the supporting discretionary account.

A vice president or dean may delegate 17A expenditure authority to subordinates, e.g., associate dean, director, department chair, area finance officer. An official receiving 17A expenditure authority may not delegate that authority further; all such delegations must come directly from the vice president or dean.

To delegate expenditure authority for discretionary accounts complete and route an Expenditure Authority Delegation form. Send the completed and approved delegation form to the Controller's Office. See 70.02.

A vice president or dean may approve exceptions to the 17A expenditure guidelines provided above. Exception approval authority may not be delegated.

When the vice president or dean approves an exception, he or she must retain an exception justification. The exception justification becomes part of the official public record for the purchase and must be retained by the approving officer for six years after the end of the current fiscal year.

Individuals who seek repayment for personally-incurred expenses may not authorize their own reimbursements. A request to reimburse a personally-incurred expense must be authorized by the claimant's supervisor.

Include a brief justification statement with each request for a 17A expenditure or reimbursement.

Regardless of the method used to pay for the entertainment, the department is to submit the following information with the request for reimbursement or payment:

• Names and titles/relationships to WSU of individuals who entertained or were entertained.

When seeking approval for refreshments, this list may include the names of the participating organizations or groups when the number of participants is large or when the names of participants are unknown.

• A statement detailing the purpose of the entertainment.


• A statement describing how the expenditure relates to at least one official University mission.

A department may reimburse an employee or directly pay the vendor for entertainment costs.

A University faculty or staff member may pay for entertainment, e.g., meals, beverages, admission costs, and claim reimbursement from a discretionary account. The claimant's department requests reimbursement for the employee as follows:

• Complete a State of Washington Invoice Voucher to obtain reimbursement for most entertainment expenses. Obtain supplies of the State of Washington Invoice Voucher by completing and/or printing the form master on 30.45.2.

For reimbursement for travel-related entertainment expenses, use a Travel Expense Voucher.

The Invoice Voucher or Travel Expense Voucher is approved for payment by a vice president, dean or designee who is responsible for the account and supervises the claimant.

• Submit vendors' receipts and the justification statement with the voucher.


• Route the approved voucher, the justification statement, the description of the entertainment, and receipts to the Travel Services section of the Controller's Office.

The Controller's Office mails the reimbursement check directly to the claimant's home address.

The department may pay a vendor directly by using one of the following procedures. Submit a description of the entertainment and a justification statement with the documentation.

Complete a Department Order. Follow procedures in 70.07.

Complete a Departmental Requisition prior to the entertainment event. (Purchasing Services generates a Purchase Order which is given to the vendor at the time the entertainment is obtained.) Follow procedures in 70.10.

Complete an Interdepartmental Requisition and Invoice if the vendor is a University organization, e.g., Dining Service, CUB. Follow procedures in 70.05.

Obtain an invoice from the vendor.

A University purchasing form is not required for this procedure.

Submit the vendor's invoice to Travel Services. Add the coding of the supporting account.

NOTE: The total cost may not exceed the current purchasing bid limit. See 70.13.

Discretionary account funds may be contributed to an agency account if the recipient organization's activities support a University mission.

To make such a contribution, route a memorandum to the Controller's Office. The memorandum is to include the recipient and donor account codes and be signed by an administrator with expenditure authority for the donor account.

NOTE: Agency accounts include faculty, student, and alumni accounts. See also 30.05 and 70.18. Contact the Controller's Office for more information.

Expenditure transfers to a discretionary account must be approved by a vice president, dean, or designee who is responsible for the account assuming the expenditure. See 30.25 for expenditure transfer procedures. Transfers must include a brief statement justifying the expenditure.

To monitor expendable accounts, departmental personnel compare copies of expenditure documents with the appropriate Budget Statements (see 30.07) or the online Account Balances/Detail Application (see 85.33).

Overdraft accounts are not permitted and must be corrected immediately by revenue or expenditure transfer. See 30.21.

Controller's Office and Purchasing Services personnel review expenditures to ensure compliance with University policies and procedures.

The accounting system checks all expenditures from discretionary accounts to assure that each expenditure is in an allowable object category (see 70.09) as defined by the Establishment of Fund form.

Departments are responsible for retaining documents relating to expenditures in accordance with the current records retention schedule. See 90.01.

Discretionary account records may be subject to public review and are subject to audit by the University's Internal Audit Office and state of Washington auditors.