Section 800: Financial Affairs

Effective: April 1, 2014
Revised: August 2023
Last Review: August  2023
Next Review: August 2025
Responsible Party: Controller

Introduction and Purpose:

This policy implements Policy 901.14 of the Montana Board of Regents of Higher Education and will govern the payment or expense reimbursement to, or on behalf of, MSU-Northern employees or departments by "affiliated foundations and organizations." The purpose of this policy is to establish consistent guidelines for the use of affiliated organizations’ funds and to establish the approval process for requesting direct payment or reimbursement from the affiliated organization.

Definitions:

For the purpose of this policy, the following definitions apply:

"Affiliated Foundation” and “Affiliated Organization" means any organization which has been recognized by the University to provide assistance in fundraising, public outreach and other support for the University's mission. Affiliated organizations include the MSUN Alumni Foundation or any other organization approved under the university policy governing affiliated organizations.

Agreement:

Any affiliated organization must enter into an agreement with Montana State University-Northern regarding the terms and conditions of its affiliation with the University.

Acceptable Uses of Funds:

University departments and employees may seek reimbursement from any affiliated organization in accordance with the organization's approved spending policy and this policy. In general, reasonable expenses for travel, meals, lodging, entertainment/hosting or other reasonable expenses directly related to entertaining donors, prospective donors, prospective employees, or other guests of the University and/or affiliated organization may be reimbursed if directly related to or associated with the active conduct of the affiliated organization or University business.

Prohibited Use of Funds:

University departments and employees may not receive payments or seek reimbursement for the stated purposes listed in this section from any affiliated organization.

Salaries/Wage Payments to Employees of the University:
No direct payment of salaries, wages or any other payment of monetary value will be made to faculty, staff, students, and/or other full or part-time employees of the University. Any salary support for an employee of the University may not be paid unless approved and processed through the University payroll system.

Loans:
Loans to any employee or department will not be allowed.

Fines for Parking or Traffic Violations:
Fines for parking or traffic violations or for any other illegal actions are not allowable.

No duplicate payments: 
No payment or reimbursement will be made for expenses that have been paid by the university and no payment or reimbursement may be sought from the University for Payments made by the Affiliated Organization.

Personal Expenses:
No payment or reimbursement will be made for personal expenses that are not business expenses related to the performance of activities of the university or the Affiliated Organization.

Procedures:

Any employee or department that seeks payment or reimbursement from an affiliated organization may request payment on the forms developed by the affiliated organization. Any request for payment or reimbursement must be accompanied by appropriate documentation and approved in writing by the department head or director of the department. A director or department head may not approve his or her own requests for payment or reimbursement. Such requests will be approved by the department head's or director's immediate supervisor.

Internal Control Considerations:

Each department head or director will be responsible to review all requests for payment or reimbursement and related documentation to assure that it meets the requirements of this policy before approval. Upon approval, documentation may be forwarded to the affiliated organization to be retained by it.