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Administrative Guidelines for
Implementing President's Directive Number 11

Guidelines

These guidelines implement Presidential Directive 11, which addresses hospitality expenditures, regardless of amount, related to food and beverage; event attendance; get-well gestures; guest travel; gifts, awards and promotional items; and memorial donations.

Expenditures must:

  • be in accordance with IRS guidelines, State regulations, and CSU policies;
  • be directly related to, or associated with, the active conduct of official university business;
  • comply with restrictions imposed by the funding source(s);
  • be cost effective and in accordance with the best use of public funds; and
  • serve a clear university business purpose, with no personal benefit derived by the official host or other university employees.

Authority

These guidelines are based on authority and direction derived from:

  • Presidential Directive 11;
  • Education Code on the authorities of the Trustees (Sections 66600, 89030, and 89035);
  • Education Code and Title 5 regarding campus community relations funds (Section 89044 and Sections 41600 and 41601, respectively);
  • Title 5 regarding the authority of the campus President to require auxiliary organizations to operate in conformance with campus policies (Section 42402);
  • Executive Orders on Delegation of Fiscal Authority and Responsibility and Hospitality,Payment or Reimbursement of Expenses; and
  • IRS Code sections on fringe benefit income and business expenses.

I. Scope

Presidential Directive 11 applies to all university administrators, faculty, staff and organizations, including student organizations and auxiliaries, and may be modified as necessary by the University President. Unless stated otherwise, the University President has delegated approval authority for expenditures covered in these guidelines, to Division Head, who may, unless stated otherwise, delegate this authority in writing to others up to a specified dollar amount.

II. Definitions

Awards Presidential Directive 11 applies to all university administrators, faculty, staff and organizations, including student organizations and auxiliaries, and may be modified as necessary by the University President. Unless stated otherwise, the University President has delegated approval authority for expenditures covered in these guidelines, to Division Head, who may, unless stated otherwise, delegate this authority in writing to others up to a specified dollar amount.

Cash awards may be given to Faculty, Staff, and Students for recognition of accomplishments (i.e., Outstanding Faculty Member of the College, Outstanding Staff Member from Titan Excellence, Outstanding Student, Outstanding Research Publications, etc.). Cash awards are never given for services and must be processed through CSUF Philanthropic Foundation. Gift cards and gift certificates do not meet the definition of a cash award.

The university acknowledges noteworthy work-related or academic accomplishments through the following programs:

  • Outstanding faculty member awards (both for the university and in individual colleges)
  • Outstanding staff member awards
  • Titan Excellence awards

A division head may acknowledge the noteworthy work-related or academic accomplishments of a faculty member, staff member, student, donor/volunteer, or individuals external to the university outside the above programs through the presentation of an item of tangible personal property. Generally, the value of an award may not exceed $75 in value. A Division Head must approve awards valued in excess of $75. In no instance may the value of an award exceed $125.

Faculty/staff length of service awards may generally only be awarded as part of the university’s annual faculty and staff recognition events and generally should be valued up to $400. The university also may present an item of tangible personal property generally up to $400 to an employee upon retirement. When warranted by the length of service, position and achievements of the individual retiring the value of the item may be greater. In no instance may the value of the item exceed $2,000.

Division Heads are, for the purposes of this Directive, the President, Vice Presidents for Academic Affairs, Administration and Finance, Information Technology, Student Affairs, and University Advancement.

Event Attendance pertains to a university-sponsored event (for example, Front & Center, Vision and Visionaries, Broadway and Barbeque) or community event when an individual’s attendance is necessary for the success of the event or it directly relates to the individual’s responsibilities and role at the university. Event attendance also includes spouses/partners of university employees when it is customary or socially acceptable for spouses/partners to attend. D11 approval by the Division Head or designee confirms event attendance by an employee and, as appropriate, by the employee’s spouse/partner satisfies these requirements. Permissible expenses may include, for example, the rental of formal wear, if required, or the rental of caps and gowns for faculty and staff members at commencement.

Event attendance D11 requirements do not apply to attendance at professional meetings or conferences covered by an approved travel authorization.

Food and Beverage include but are not limited to meals (catered or restaurant) and light refreshments (for example, beverages, hors d’oeuvres, pastries, and/or cookies).

Gifts are items of value given or bestowed upon an individual, group, or entity with the expectation of a benefit accruing to the university including donor or volunteer recognition. Gifts also include get well or memorial floral or other arrangements made on behalf of the university in the event of a serious illness, injury or death of a university employee; an individual external to the university who had a close educational, community, business, or philanthropic relationship with the university; a student; or death of a member of an employee’s immediate family. Memorial donations may be provided subject to funding source restrictions. Gifts, floral or other arrangements generally may not exceed $75. A Division Head must approve gifts, floral or other arrangements of more than $75. In no instance may the gift, floral or other arrangement exceed $125.

Guest Travel pertains to travel-related expenditures incurred by official university guests but does not apply to campus interviews or travel expenses covered by an approved travel authorization or travel related to paid speakers/facilitators.

Hospitality includes the provision of meals (catered or restaurant) or light refreshments (beverages, hors d'oeuvres, pastries, cookies, etc.), promotional materials, gifts, and travel expenses of official guests of the university. Hospitality includes expenses for activities that promote the university to the public, usually with the expectation of benefits accruing directly or indirectly to the university and may include the provision of gifts, awards, and promotional materials.

Official University Guests are individuals invited to attend a university-sponsored meeting, conference, reception, or event who are not employed by the university. Examples of official university guests include but are not limited to employees from another work location such as another CSU campus or the Chancellor’s Office, members of the community, university volunteers, prospective and currently enrolled students, parents and family members of prospective or currently enrolled students, current and prospective donors, and media representatives. Employees, including student employees are not considered an “Official University Guest”. If it is unclear if a potential university guest does or does not meet the criterion as defined in this Directive, the Division Head has been delegated by the President to make the final determination.

Promotional Materials are items of nominal value and bear the university logo or other university symbol distributed to promote the name or image of the university, provide information, or enhance university productivity.

Retirement/Separation includes faculty and staff either retiring or separating from university employment when the event has been designated by the Division Head, or their written designee, as a university-sponsored event.

University includes all recognized CSUF auxiliaries.

University Employee for this purpose is defined as any individual employed by the university or an auxiliary regardless of how they are paid.

University Fundraising for this purpose is defined as efforts undertaken with the goal of securing gifts and other contributions to the Cal State Fullerton Philanthropic Foundation, which ultimately benefit the university.

University-Sponsored means a Division Head or their written designee has recognized the event as a university-sponsored event.

Written Designee for the purpose of this Directive is an individual designated in writing by the President or a Division Head to authorize D11 expenditures on their behalf. The designee must be an individual of appropriate administrative capacity and responsibility to authorize said expenditures. A Division Head may elect to designate more than one individual to authorize D11 expenditures on their behalf up to $500. Approval of all designees must be on file with Financial Services and university auxiliary organizations: Associated Student Incorporated, Auxiliary Services Corporation and the Philanthropic Foundation.

III. Implementation

An approved D11 Form is required for all purchases defined by the President’s Directive Number 11, regardless of dollar value, approval level, and acquisition method (e.g. P-Card, Purchase Order, Direct Expense, Check Request, Travel Expense Claim, Petty Cash, Expenditure Transfer, Budget Transfer etc.).

Regardless of the funding source, expenditures for the following in excess of $500 require approval by the appropriate Division Head or their written designee. Division Heads may establish an internal approval process for these expenditures up to $500 or specific type of expenditures. It is the responsibility of the approver to verify all expenses are valid, appropriate documentation is attached, and to ensure all funding source restrictions are observed.

IV. Fundraising

University fundraising efforts are coordinated through the Cal State Fullerton Philanthropic Foundation. When university resources are used in fundraising efforts with the goal of securing gifts and other contributions to the auxiliary organization, those efforts are recognized as providing either tangible or intangible value that ultimately inures to the overall benefit of the university and its educational mission even though the activity might reside in an auxiliary organization or enterprise program/activity/fund. The exchange of value resulting from the beneficial investment opportunities afforded to the auxiliary organization, which is ultimately to the university’s benefit, mitigates the need for direct or indirect cost recovery for such services. Use of university resources in fundraising efforts must be fully documented, including the execution of a D11 Form and required supporting documentation.

V. Funding Source

There are three types of funds available for the payment of university expenditures: Operating Fund (Fund 485), Fund 948 (other than Fund 485) and Auxiliary Organization Funds.

  1. The Operating Fund (Fund 485) includes revenues, expenses, and net assets related to state-supported instruction and related programs and operations. The following restrictions apply to the use of the Operating Fund:

    1. The Operating Fund may not be used to pay for food and beverages for business meetings attended only by employees of the university or its auxiliaries.
    2. The Operating Fund may not be used for hospitality or other expenditures for personal, non- university-sponsored celebrations, such as birthdays, weddings, showers, anniversaries, Administrative Professionals Day, or other similar non-university-sponsored events.
    3. The Operating Fund may not be used for gifts or awards for non-students, get-well floral arrangements, or memorial donations/flower arrangements.
    4. The Operating Fund may not be used to pay for alcoholic beverages, or tobacco products.

  2. Funds within Fund 948 (other than Fund 485) are generated by fees and revenues and may be used to support activities supplemental to the university’s primary mission, including but not limited to Continuing Education Revenue Fund (CERF), Parking, Lottery, Trust, and Special Project funds. These funds may be used to pay hospitality or other expenses only to the extent permitted by the statute under which the funds are established and maintained and only if such expenses are specifically authorized by the trust agreement or special project agreement, if applicable.

    The following restrictions apply to the use of funds held in Fund 948 (other than Fund 485) for officially approved activities/functions:

    • Fund 948 (other than Fund 485) may be used to pay for food and beverages for business meetings attended only by university employees.
    • Fund 948 (other than Fund 485) may not be used for hospitality or other expenditures for personal celebrations such as birthdays, weddings, showers, anniversaries, Administrative Professionals Day, or other similar non-university-sponsored events.
    • Fund 948 (other than Fund 485) may be used for gifts or awards for students and non-students, get-well floral arrangements, or memorial flower arrangements. Fund 948 (other than Fund 485) may not be used for memorial donations.
    • Federal or local government contract and grant or agency policy authorizes such expenses. In the event an agency policy and a university policy conflict, the more restrictive policy applies.
    • Fund 948 (other than Fund 485) may be used to pay for alcoholic beverages, or tobacco products, to the extent applicable laws, regulations or agreements do not restrict these purchases.

  3. Auxiliary Organization Funds represent appropriate deposits in a recognized university auxiliary, including but not limited to Associated Students of CSUF, Inc., the Cal State Fullerton Philanthropic Foundation, and the Cal State Fullerton Auxiliary Services Corporation.

    The following restrictions apply to the use of Auxiliary Organization Funds:

    • Auxiliary Organization Funds may be used only within restrictions established by the auxiliary organization, or at the time of payment or deposit, by the payer/donor.
    • Auxiliary Organization Funds may be used for gifts or awards for student and non-students, get-well floral arrangements, or memorial donations/flower arrangements.
    • Auxiliary Organization Funds may not be used for hospitality or other expenditures for personal celebrations such as birthdays, weddings, showers, anniversaries, Administrative Professionals Day, or other similar non-university-sponsored events.
    • Expenses for alcoholic beverages, tobacco products, gifts, memorial donations, awards, and employee retirements/separations may be charged to Auxiliary Organization Funds subject to the policies and restrictions established by this directive and/or the auxiliary organization.

Funding Sources for Payment of Approved Hospitality Expenses

D11 Expenses Operating Fund (Fund 485) All Other Campus Funds held in Fund 948 Other Than Fund 485 Auxiliary Organization Funds
Awards--Non Students, including faculty/staff retirement, length of service or faculty/staff/donor/volunteer or community member recognition awards of tangible property No Yes*1 Yes
Awards--Students recognition awards of tangible personal property Yes Yes Yes
Awards--Cash recognition awards for Faculty, Staff and Students No No Yes*2
Event Attendance Yes Yes Yes
Gifts, including get-well gestures, memorial floral arrangements or memorial donations No Yes*1 Yes
Guest Travel Yes Yes Yes
Food and Beverages (other than Alcoholic Beverages) for Meetings, Conferences, Receptions, or Events Attended by Official Guests Yes Yes Yes
Food and Beverages (other than Alcoholic Beverages) for Meetings, Conferences, Receptions, or Events Attended Only by University Employees No Yes Yes
Food and Beverages or other expenses for personal, non-university-sponsored celebrations, birthdays, weddings, showers, anniversaries, Administrative Professionals Day, or other similar non-university-sponsored event No No No
Promotional Materials Yes Yes Yes
University Fundraising Yes Yes Yes
Alcoholic Beverages and Tobacco Products No Yes Yes

FOOTNOTES:

*1   Subject to fund source restrictions. Memorial donations are only permissible through auxiliary organization funds.

*2  Cash awards must be processed through CSUF Philanthropic Foundation in accordance with restrictions imposed by the donor and/or the governing board.

VI. Accountability

Under no circumstances may an individual be delegated authority to approve a hospitality expense he/she incurs, nor may a subordinate approve a hospitality expense incurred by his/her supervisor.

Unapproved/disallowed expenditures will be the personal obligation of the employee.

University employees are responsible for complying with Directive 11 and these guidelines and applicable implementation procedures. Failure to comply may result in disciplinary action pursuant to the applicable collective bargaining agreement or, for non-represented employees, applicable administrative policies or procedures.

The Vice President for Administration and Finance/CFO may modify these guidelines as needed.

Questions related to these Administrative Guidelines may be directed to Contracts and Procurement at extension 3758, or email at Directive11@fullerton.edu.