Financial Compliance/Allowability

Allowable and Unallowable Expenditures by Fund Source

In general, purchases made by any fund should benefit the University's mission, support
University programs and should not be made for an individual's personal gain. Matrix should be
used to identify what funds are allowed to purchase items. Even if the fund source is marked
with a “Yes”, all purchases must be compliant with existing purchasing policies (e.g., competitive
bidding requirements, use of mandatory sources, P-Card prohibition on certain types of
purchases). This list is not intended to be all inclusive but represents some common
expenditures and restrictions. Account codes are provided as guidance for each type of
expense, when possible, but other accounts may also be considered as appropriate.

Allowable Cost Matrix

When in doubt…

When in doubt, accounting and finance staff should always stop to think about whether an expense is appropriate for certain fund groups. To do this, the staff member may want to ask himself/herself the following questions:

• Is this an appropriate use of the particular resources or fund group (i.e., State, Sponsored, etc.)?
• Am I comfortable explaining this charge to an auditor?
• Am I comfortable explaining this charge to the public?
• Is this expense reasonable? Would a prudent person have purchased this item and paid this price?
• Is this expense "allocable"? Is the expense applicable to the project and fund group with a high degree of certainty?
• Is this expense allowable? Does this expense fall within the general parameters of this particular fund group?
• Is this consistent? Are other expenses for similar purposes treated in the same way?

A Food Documentation Form must be completed, signed, and submitted with all food purchases. The food documentation form must be signed by the department Business Manager and an Authorized Approver, who is an individual elected to take responsibility of the food purchases for their department and required to sign the KSU Guidelines for Food Purchases on
an annual basis. The Authorized Approver will have the responsibility to ensure all food purchases for their department meet the guidelines set by the University System of Georgia, the State Accounting Office, and Kennesaw State University as mentioned in the KSU Guidelines for Food Purchases.

All payment submissions must include the following:

• Receipts for all food purchases for the event or meeting.
• Information about the event such as an agenda and/or flyer.
• Full list of the attendees of the event.
• Registration Fee documentation (if applicable).

All employee group meals must be submitted to service.kennesaw.edu/ofs prior to the date of the event to obtain authorization from the President.

All purchases paid with an agency fund or grant must also seek written approval from the respective office prior to the food purchase.

Forms and Resources

• BPM 19.7 Employee Group Meals
• BPM 19.8 Purchase of Food Using Institutional Funds
• Food Documentation Form(currently updating)
• KSU Guideline for Food Purchases(currently updating)
• Food Purchases Reference Chart

In rare instances, the purchase of retail gift cards utilized as a tool to promote research
participation or to reward student achievements is allowable in accordance with the University System of Georgia.

The purchase of gift cards must be pre-approved by Financial Compliance PRIOR to the purchase of the gift cards. Please submit all requests to ServiceNow at service.kennesaw.edu/ofs.

 

• Gift Card Guidelines (currently updating) 

The Membership Form must be completed and signed by a supervisor prior to the purchase of an individual membership. The University System of Georgia prohibits the purchase of an individual memberships with civic organizations such as the Chamber of Commerce. Memberships must meet one or more of the following requirements:

• The membership is required for the employee’s position.
• The membership is a requirement for accreditation.
• The membership provides a direct benefit to the University and results in a cost savings.
• The membership is transferable to another KSU employee upon the change of employment.

Financial Compliance pre-approval is required for any individual membership that does not meet the above criteria. Please submit a ServiceNow request at service.kennesaw.edu/ofs for approval. A completed membership form and written explanation that provides the business purpose and the direct benefit to the University should be submitted along with the request. 

Payment for licenses, certification fees, specialized training, or other similar expenses may be authorized for an employee when the institution requires the license, certification, or training as a condition of employment. The following requirements must be met:

• Employee is on payroll during the period that the license or certification is active for or during the time of training.
• License, certification, or training is directly related to the employee's present position and is required by the University.
• The University will benefit from the specialized training received by the employee.
• Specialized training does not involve University course credit. Any course taken which can be applied as a credit towards a University degree now or in the future would fall in this category.

Financial Compliance pre-approval is required for any training related to professional licenses, certifications, specialization, or other similar expenses. The Professional License/Certification
Evaluation Form must be completed and submitted through the online Training Request Form.

All sponsorship requests must be submitted to service.kennesaw.edu/ofs for approval prior to purchase. In accordance with the University System of Georgia, the purchase of sponsorships with institutional funds are prohibited unless the agreement provides a substantial benefit to the university in the form of marketing and advertising that is equal or greater in value to the price of the agreement. Sponsorship requests must include an invoice or documentation from the vendor that includes the specific items and benefits the university will receive in return for the sponsorship commitment. Donations of any form are prohibited.