|CMP 401-03: Prohibited Transactions|
To provide a listing of prohibited disbursement transactions
Certain disbursement transactions are prohibited. The listing below specifies prohibited transactions, although it is not necessarily fully inclusive. References to specific COM sections or policies are provided where applicable. Assistance to interpret specific situations is available from the Comptroller Office Staff. Please note that this policy applies to STUDENT ACTIVITIES as well as all other University activities. All funds that come into the university are considered public funds. This policy not only applies to state funds, but also to local funds.
Food, and Related Expenses (CMP 420 02)
Use of sponsored project funds unless specifically authorized by the grant or contract.
Use of state funds.
Use of university funds to pay for alcoholic expenditures, regardless of expenditure purpose.
Use of state funds unless the Manager of Facilities Services determines in writing that:
1. no drinking fountain is reasonably close
2. the cost of installing a drinking fountain is prohibitive.
A copy of the Manager of Facilities Service's assessment must be attached to all procurement documents for bottled water purchased.
Direct Vendor Billings
Payment of a vendor invoice of more than $5,000 billed directly to NAU when a purchase order should have been issued.
Charitable Contributions or Donations
Fines and Penalties (CMP 109)
Payments of fines and penalties are prohibited unless specifically authorized by the appropriate provost/vice president and forwarded directly to the comptroller for proper coding determination. Under no condition can parking, traffic, and library fines be paid with university funds.
All types, unless the items are needed in conjunction with an official university event. Authorized purchases for flowers must be paid from local funds.
All types except those that have been reviewed and authorized by university the President's Office.
Clothing that is not considered a uniform necessary to perform official University business. (Examples of business necessary clothing are NAU Police and other safety uniforms, facility service personnel, athletic uniforms, health professionals, and shirts for identification of NAU event staff.)
Loans and Advances to NAU Employees, Students, and Organizations
All types except loans awarded to students by the Student Financial Aid Office.
Gifts and Gift Certificates and Awards
Gifts of any type - including gift certificates - for occasions such as condolences, congratulations, birthdays, boss's day, secretary's day, tokens of appreciation, etc.
Items that are NOT considered gifts include:
· Items which promote greater participation by students in campus activities that are sponsored by Student Life and paid from non-state, non-sponsored funds.
· Items which promote greater participation by employees, faculty or students in University sponsored events (campus activities, seminars, training etc.), and paid from non-state, non-sponsored funds.
· Items that are used for compensation to participants in research projects.
· Items that are small awards or prizes for campus competitions and are paid from non-state, non-sponsored funds.
The value of a single item may not exceed $25 and only one item may be given to an individual for each occurrence or participation.
Items that are purchased for the above purposes must be closely controlled. If gift cards, etc are purchased, a log of those items must be maintained with the following information:
· Date purchased
· Gift card number / gift certificate number, etc if applicable
· Value of the card / certificate
· Date given away
· Name of the person to whom the card is given
· Name of the administrator / faculty who releases the card
· Signature of the recipient
Expenditures for holiday receptions, departmental decorations, etc., are permitted only if charged to a gift or other discretionary local Dept/Unit and approved by the appropriate provost/vice provost/vice president.
Nonresident Alien Work Permits
Use of state or local Dept/Units for payments of work permits that nonresident aliens must obtain in order to hold a job in the U.S., unless stated in an offer letter of employment or similar contractual obligation.
Parking Fees/Decals for NAU Employees and Students
All types, except those purchased for NAU vehicles.
Parking, Traffic, and Library Fines (CMP 109)
Use of state or local Dept/Units for payment.
|Note:||Library fines include charges for lost books (replacement fees).|
Petty Cash Funds (CMP 403-01)
1. The purchase cost of a particular item must not exceed $25.00.
2. The purchase cannot be for any of the following purchases:
A) Compensation to individuals for services.
B) Capital items.
C) Food or entertainment.
Purchase of prepaid phone cards. Exceptions can be made in certain circumstances - e.g. researcher who is out-of-state who must call in field results every day and alternate method phone costs are prohibitive.
Purchases From NAU Individuals (PUR 102)
Purchases that are not competitively bid and do not have the proper approval.
State Operating Dept/Units - Funded Purchases (CMP 111)
Summer Sessions - Funded Purchases (CMP 201)
Dues for memberships in community service Organizations
For example, Kiwanis, Rotary
Transfers (CMP 301 and 303)
Transfer of gifts to an off-campus bank account or to an organization financially related to NAU, such as the NAU Foundation.
Vendor Invoice Payments Older than Two Fiscal Years
Payment to external vendors where the invoice is more than two fiscal years old, unless approved by the Comptroller.
Child Care - Reimbursements to employees for child care while traveling on University business. Applies to new employees for costs incurred as part of moving expenses, including pre-moving house hunting trips (see CMP 420-03: Moving Expenses for allowable moving expenses)
Textbooks - In some cases, single copies of textbooks can be purchased for departmental reference and become property of Northern Arizona University. Textbooks for classroom coursework for use towards a degree etc are prohibited.
For more information on purchases, see the Purchasing Services Policies and Procedures Manual PUR 102, Conflict of Interest.
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