Each faculty member has an individual discretionary account. Discretionary funds awarded to a faculty member are intended to supplement existing and available funds and can be used to fund any qualified University expenditure, except as noted in #3 below. Such expenditures, while not integral to research and teaching activities, support the overall research and teaching activities of the individual faculty member and the University community at large. Each year, faculty members who are at or above 50% effort on July 1st will receive the school’s designated amount for the year deposited directly into their individual discretionary account.
Discretionary Funds operate under the following guidelines:
1. Purchases
a. Must be in accordance with all University procurement policies and procedures.
b. All items purchased with discretionary funds are the property of the University.
c. Any discretionary account recipient who leaves the University may purchase, for an agreed upon price, items previously acquired with discretionary funds.
2. Legitimate Business Purpose
The faculty member and/or the designated budget administrator to whom the discretionary funds are awarded must ensure expenses charged to discretionary accounts are for legitimate business purposes as defined under IRS regulations and University guidelines and policies.
Examples of eligible expenditures are:
a. Travel to meetings of professional associations or for research activities
b. Subscriptions to professional periodicals
c. Memberships in professional organizations
d. Reference books
e. Journal submission fees
f. Specialized software, other than software routinely provided by the University, for classroom use or research
g. Business-related long-distance charges
h. Business-related postal or shipping charges (FedEx, UPS, Airborne)
i. Computer peripherals: These must be compatible with existing equipment and systems, and purchasing, installment and maintenance must all go through Office of Information Technology. See also Computer Equipment addendum.
j. Specialized databases and data collection costs
k. Business-related meals or hosted professional functions
l. Professional license or certification fees
3. Expenses Not Eligible
Personal expenses of any kind are not eligible for reimbursement through discretionary accounts.
Examples of items not allowable include:
a. Home office costs such as furniture, computer equipment and accessories, maintenance expenses, and supplies.
b. Cell phone, internet and telephone line charges unless approved by the University administration as necessary for job performance (e.g., alternative work site) or for expenses exceeding monthly plan costs and supported by business-purpose documentation which is accompanied by an expense reimbursement form.
c. Charitable contributions made in the account-holder’s name
d Political contributions under any circumstances
e. Postage for personal correspondence
f. Office or laboratory phone sets, or ordinary line charges
g. Memberships in social clubs or airline travel clubs, unless approved by the University’s Administration (President, Executive Vice President, or Provost) as necessary for job performance
h. Wages paid to the faculty member during the academic year
3a. Exceptions to the Above
In unusual circumstances where a business need can be justified, the above-mentioned expenses might be deemed appropriate. The exception will only be applicable if a written justification with a prior approval from the Dean is submitted with the expense report.
4. Status and Control of Discretionary Funds
Since discretionary accounts are University funds, the funds remain the property of Washington University in St. Louis upon departure of the faculty member, as do all items of material value purchased with the funds, including all computers purchased even if special approval was granted to incur in the expense. It is incumbent on the Business Office at the Brown School to provide oversight.
Faculty members should not personally purchase supplies, computer software, computer hardware or any services and then seek reimbursement. These purchases must go through administrative staff and be purchased directly through IT using WU-preferred vendors. The purpose of this is to avoid paying taxes and to take advantage of University vendor agreements. Please see the “Computer Equipment Addendum” of this policy for further details.