An allowable business expense is an expense or a transaction that the University, a faculty, or staff incurs on behalf of the University in exchange for goods or services.
Payment of an allowable business expense is ultimately the responsibility of the University.
Criteria for Determining an Allowable Expense
In order to be paid directly by the University or reimbursed to an individual, a business expense must be:
Necessary to perform a valid business purpose fulfilling the mission of the University; and
Reasonable in that the expense is not extreme or excessive, and reflects a prudent decision to incur the expense; and
Appropriate in that the expense is suitable and fitting in the context of the valid business purpose; and
Allowable according to the terms of any federal regulation, sponsored contract, or University policy.
Pre-Approval of Allowable Expenses
Prior to incurring expenses, expenditures need to be discussed with a department supervisor. All expenditures must be considered with reference to budget availability and your department will have internal policies on when it is necessary to discuss a proposed purchase with your budget manager (or similar position) and when written authorization is required prior to a purchase.
Purchase Orders
Finding a Vendor
Quotes and Bids
A quote is a statement from a vendor regarding the price for a specific good or service. Written quotes are preferable but a quote may be given verbally.
A minimum of three quotes are required when purchasing goods and/or services with a value between $10,000 - $25,000.
It is the initiating department's responsibility to obtain these quotes from various vendors for the goods or services being obtained. The Accounts Payable department is available to assist departments in identifying comparable vendors, but it is up to the department to follow through to obtain the required quotes. Once the quote documentation is received, the Department can determine which vendor to proceed with.
If it is not possible to obtain three quotes, the Department must document why this is the case and include this information with its Purchase Requisition or Request for Payment request.
A bid is a vendor's formal statement in response to a formal document outlining, in exact specifications, that they will supply the specified good or service at a specified rate. This is a commitment in writing from a vendor.
Vendor type
Sodexo - do we have to use them for internal catering? What does that really mean?
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