Policy: Board of Trustees Business Expense

I. Purpose

The purpose of this policy is to (1) ensure that expenses incurred in support of the functions of the Board of Trustees are lawful, reasonable, prudent, and consistent with good governance practices for a public university and (2) implement the provisions of Appendix E, Section A, of the Board of Trustee Manual.[1]

[1] “There shall be no salary or monetary compensation for members of the Board. The Trustees may, however, be reimbursed as provided by state law for per diem and for expenses incident to attending meetings of the Board or its committees and all other official duties incurring personal expense.”  Clemson University Board of Trustees Manual, Appendix E, Section A.

II. Policy Statement

(A) Allowable expenses incurred on behalf of the Clemson University Board of Trustees must comply with all of the following requirements: 

(1) The expenses must be incurred in furtherance of the purposes of the University.
(2) The expenses must be reasonable and good business judgement must be exercised with respect to all expenses.
(3) The incurrence of expenses must be consistent with the policies of the funding entity (e.g. the University, the Clemson University Foundation, IPTAY, etc.)
(4) The use of state funds shall comply with all laws and regulations applicable to the use of such funds.  The use of funds from an affiliated foundation shall comply with all laws and regulations applicable to the use of such funds (e.g. IRS rules for 501c3 entities.)
(5) Appropriate documentation for the expense must be provided.

(B) Any expense which does not meet the above requirements shall not be allowed.  Expenses which primarily serve a personal interest and not the business interest of the University shall not be allowed.

(C) For any expense paid which is determined to be a taxable benefit to a Trustee, the funding entity shall report such benefit as required by the Internal Revenue Service and the South Carolina Department of Revenue.

(D) The Trustees shall approve from time to time guidance documentation which sets forth guidelines to assist with determining the allowability of expenses as well as an approval process for those expenses.

(E) Board expenses shall be reviewed by Internal Audit on a periodic basis. 

III. Scope

This policy shall apply to all expenses incurred in support of the functions of the Board of Trustees, including expenses paid directly by the funding entity and expenses incurred in support of Board operations and events paid as reimbursements to employees or members of the Board.

IV. Guidelines and Operating Procedures

The EVP of Finance and Operations shall recommend to the Board for approval guidelines and practices for the implementation of this policy.

V. Responsible Office

Office of the Executive Secretary to the Board of Trustees

VI. Versions

Date of Initial Board Approval: July 13, 2017.