Rule 20205: Expenditures for Travel and Entertainment by Chief Administrators and for the Maintenance of University Residences
Sec. 1 Purpose.
The University of Texas System Administration and U. T. System institutions are governed by State law and rules and regulations promulgated under those laws, as well as Systemwide and institutional policies and procedures concerning expenses incurred by officials for travel, entertainment, and housing. While recognizing the unique role of the Chancellor and presidents in representing the U. T. System and the institutions, the Board of Regents also recognizes the importance of oversight and accountability, transparency, and fiscal responsibility. The purpose of this Rule is to prescribe, clarify, and provide uniformity in the approval, review, and audit process for travel and entertainment expenses incurred by the Chancellor and presidents and for expenses for the maintenance of University residences.
Sec. 2 Prudent Use of Funds.
In the performance of their unique roles, the chief administrators are frequently called upon to travel on behalf of the U. T. System and the institutions, to extend official hospitality to important visitors, and to entertain guests in conjunction with alumni and development activities, campus events, and other official functions. As a public institution, the U. T. System must make the most efficient and effective use of funds entrusted to it by various constituencies when making expenditures for those purposes and must be able to demonstrate compliance with applicable laws and rules. Additionally, individuals seeking reimbursement must certify that expenditures support the mission and purpose of the U. T. System and that the expenditures are not made for a private purpose.
Sec. 3 Travel Expenditures.
All expenditures for travel by a chief administrator or his or her spouse must be for a business purpose of the U. T. System or the institution and must comply with all laws and policies of the institution and the U. T. System. All foreign travel must be approved in advance by the Chairman of the Board of Regents for the Chancellor and spouse and by the appropriate Executive Vice Chancellor for the presidents and spouses. Requests for approval of foreign travel must include a specific business purpose and an estimate of funds to be expended by U. T. System or by the institution.
Sec. 4 Maintenance of University Residences.
All expenditures that exceed $10,000 for the furnishing, maintenance, or repair of a residence or its grounds owned by the U. T. System must be approved in advance by a committee composed of the Executive Vice Chancellor for Business Affairs, the Vice Chancellor and General Counsel, and the General Counsel to the Board of Regents. Prior approval by the committee is not required for expenditures made on an emergency basis to prevent damage to property.
Sec. 5 Documentation and Review.
Each chief administrator shall comply with all documentation requirements imposed by law and U. T. System Administration and institutional policies for travel and entertainment expenses and for expenses for the maintenance of University residences, including providing appropriate receipts and documentation on the purpose of the expense and the individuals or groups attending the event.
Each chief administrator shall take all necessary and reasonable steps to ensure that all employees follow applicable procedures for expense reimbursement.
Reimbursements made directly to the Chancellor for travel and entertainment expenses must be reviewed and approved by the General Counsel to the Board of Regents before payment to assure compliance with applicable laws, rules, and policies. Payments made on the Chancellor’s behalf in excess of $100 must be reviewed and approved by the General Counsel to the Board but may be reviewed after payment.
Reimbursements made directly to a president of a U. T. System institution for travel and entertainment expenses and for expenses for the maintenance of a University residence must be reviewed and approved by the institution’s chief business officer before payment to assure compliance with applicable laws, rules, and policies. Payments made on the president’s behalf in excess of $100 must be reviewed and approved by the institution’s chief business officer but may be reviewed after payment.
Evidence of review, in all cases, must be documented.
Sec. 6 Timeliness of Requests for Reimbursements.
A chief administrator must request any reimbursement for travel and entertainment expenses or expenses for the maintenance of University residences within 60 days of the date on which the expense was incurred.
Sec. 7 Reporting.
Each chief administrator shall prepare annual reports, based on fiscal year, of travel and entertainment expenses and expenses for the maintenance of University residences in a standard format. The Chancellor shall file the report with the General Counsel to the Board of Regents for review by the Chairman of the Board of Regents. Each president shall file the report with the institution’s chief business officer. The reports are due not later than the 30th day of October and are to be reviewed by the institution’s chief business officer for compliance.
7.1 Annual Reporting on Travel and Entertainment Expenses and the Maintenance of University Residences.
The annual reports must include each expense that exceeds $1,000 and that is reimbursed to the chief administrator during the year or directly paid to a vendor on the chief administrator’s behalf. (This does not apply to events hosted by a chief administrator for development activities or to honor faculty, staff, or other guests, at which more than 10 individuals are present.) The report must include the payee, the date and amount of the expense, the type, and if applicable, the location of the event/expense, the participants if any, the business purpose of the expense, and the account charged for the expense.
7.2 Reporting on Reimbursable Spousal Expenses.
The annual reports must include each expense that exceeds $1,000 and that is reimbursed to a chief administrator’s spouse during the year or directly paid to a vendor on the spouse’s behalf. The report must include the information specified by Section 7.1 above.
7.3 Annual Certification.
The institution’s chief business officer will provide an annual certification to the Executive Vice Chancellor for Academic Affairs or Health Affairs who will forward to the General Counsel to the Board documenting review of the president’s annual expense reports. The General Counsel to the Board will acknowledge to the Board the receipt of all certifications.
Sec. 8 Audits.
The System Audit Office shall audit the travel, entertainment, and University residence maintenance expenses reimbursed to and directly paid to a vendor on behalf of the chief administrators and their spouses at a minimum of the first full fiscal year after assuming office and every two years thereafter. However, the annual risk assessment performed by System Audit may determine that more frequent audits are required.
The System Audit Office shall submit the results of the audit of the Chancellor and the Chancellor’s spouse’s expenses to the Chairman of the Board, the Chancellor, and to the General Counsel to the Board of Regents. The System Audit Office shall submit the results of the audit of the president and the president’s spouse’s expenses to the president and the appropriate Executive Vice Chancellor.
A summary of the results from the audits shall be submitted to the Audit, Compliance, and Risk Management Committee.
Chief Administrator – means the Chancellor or the president at each U. T. System institution.
Entertainment Expenses – includes all expenses associated with meals and events involving others.
Expenses for the Maintenance of University Residences – includes expenses related to any State-owned residence, but does not include the salary supplement described by the Regents’ Rules and Regulations, Rule 20202.
Foreign Travel – travel to, in, or from a destination that is neither in the United States nor a possession of the United States.
Travel Expenses – includes transportation, lodging, meals, and other expenses incurred in connection with travel, but does not include entertainment expenses or meals for others.
Editorial amendment made May 25, 2017, per Board action on May 9, 2017
August 25, 2016
Editorial amendments to Section 5.2 made April 26, 2016
Editorial amendments to Section 5.2 made February 15, 2016
Editorial amendment to Number 6 made July 13, 2015
August 22, 2013
Editorial amendments made October 24, 2012
Editorial amendments to Number 1, Sections 1, 4, 5, 6, 7, 8, and Number 3 made on December 8, 2010
Editorial amendment to Section 5.2 made September 9, 2010
Editorial amendment to Number 5 made January 8, 2010
Editorial amendment to Section 8 made March 17, 2008
May 11, 2006