• Section 1 - Purpose and Context
• Section 2 - Definitions
• Section 3 - Policy Statement
• Section 4 - Procedures
• Fringe Benefits Tax Requirements
• Fringe Benefits Tax Application Examples
• Section 5 - Guidelines
• Part A - Introduction — Policy Context
• Part B - Personal and Discretionary Expenditure Guidelines
• Tea, Coffee, Milk, Sugar
• Biscuits, Sweets or Similar Snacks
• Drinking Water
• Common Area Appliances
• Flowers, Fruit Baskets, Gift Baskets, Teddy Bears and Other Recognition Gifts
• Funerals
• Staff Farewells
• Lunches/Dinners at External Venues
• Lunches/Dinners at Internal Venues
• Christmas (End of Year) Thank You
• Morning and Afternoon Teas
• Personal Items (Toiletries, clothing and the like)
• Newspapers and Magazines
• Car Cleaning (Personal and/or Salary Sacrificed Vehicles)
• Membership of Professional Associations and Professional Journals
• Professional Books and Journals
• Travel Expenditures
• Taxis and Hire Cars
• Domestic Internet/Telephone Accounts
• Fines (including Traffic and Parking Infringements)
• Toll Charges
• First Aid Items
• Visitor Exchange Gifts
• Donations
• Networking Activities
• Tuition Fees

Section 1 - Purpose and Context

(1) The purpose of this policy is to provide direction and guidance for staff in dealing with expenditures of a personal or discretionary kind, bearing in mind that the University is the steward of public funds provided to it for research and educational purposes. The kinds of expenditures envisaged are detailed in, but not limited to, Part B of this policy. Typically purchases such as flowers for consolatory or celebratory events or the discretionary provision of meals and refreshments will fall into this category.

(2) The policy aims to inform and protect staff by providing a framework within which they can consider and assess expenditure of University funds that may be considered to have a personal benefit for themselves or some other person or where there is some discretion about the nature and quantum of the purchase being considered.

(3) The policy should be read in concert with the Delegations (Administrative) Policy, the Procurement Policy, the Purchase and Tender Board Policy, the Corporate Credit Card Policy, and the Travel Policy. Expenditure of University funds is subject to public accountability by a variety of means and the University and its staff must maintain documented decisions that can stand the test of open scrutiny.

Section 2 - Definitions

(4) Nil.

Section 3 - Policy Statement

(5) The University is a public statutory body and all funds, irrespective of the source, are deemed to be public monies, only to be spent for the purposes of the University. The University is publicly accountable for the use of its funds and all staff exercising financial authority under delegation have the responsibility for ensuring that approvals accord with University policies.

(6) Individuals are also entitled to reasonable reimbursement of expenses incurred on behalf of the University.

(7) However, no policy can cover every possible contingency and managers must always consider the appropriateness of expenditure, especially if there is no policy statement or guidance, and exercise good judgement.

(8) Expenditure that appears to be personal or non-business related (of the kind detailed in the Part B of this policy) must be able to be justified on the basis that:

1. it does not breach any policy of the University;
2. it is appropriate in the circumstances and consistent with the purposes of the University;
3. the expenditure is reasonable and the amount involved would reflect the actions of a prudent and responsible person;
4. there is no conflict of interest involved;
5. there is consistency in application of standards; and
6. the decisions are made by delegated officers within their delegation and are appropriately documented.

(9) Managers at all levels in the University should lead by example and foster a culture of saving and thrift in the expenditure of the funds of the University. Expenditure of a personal or non-business nature must be given particular scrutiny. Managers must be comfortable in disclosing the expense, identifying the benefit to the University and establishing that the payment is reasonable. Matters for consideration here include the quantum of the amount (is it more than is necessary or appropriate?) and whether the payment is accepted practice or appropriate by public accountability standards. Managers should not place subordinate staff in a position of approving or incurring expenditure of a personal or non-business kind in place of themselves. Such expenditure must be charged to the credit card of the officer requesting or approving the expenditure, thereby subjecting it to approval by the manager's supervisor.

(10) The Code of Conduct contains an ethical reference test that should be referred to for guidance on making determinations in situations of discretion.

Section 4 - Procedures

(11) The schedule of guiding standards, contained in Part B of this document, will be updated periodically. To support this practice individuals are asked to notify the Finance Office of any issues that arise that they feel could benefit from coverage within the schedule.

Fringe Benefits Tax Requirements

(12) Expenditures of the kind identified in the Part B may attract Fringe Benefits Tax (FBT) liabilities. In Part B, in a table under each type of expenditure, advice is provided on expenditures where FBT is applicable. Detailed information about FBT, particularly with regard to entertainment expenses can be found on the Finance Office FBT web site. Fringe benefits tax (FBT) will apply where:

1. a benefit is provided in respect of the employment of an employee;
2. a benefit is provided by the University or a third party under an arrangement;
3. a benefit is provided to an employee (present, former and future) or his/her associate. The Income Tax Act defines "associate" as a spouse, partner, child or relative of that employee.

(13) A fringe benefit can arise where:

1. goods or services are provided by the University or third party to an employee or their associate,
2. an employee, or their associate's, expense is paid by the University;
3. an employee is reimbursed by the University for an expense.

Fringe Benefits Tax Application Examples

(14) FBT is payable on the fringe benefits taxable amount. That is, the taxable value of fringe benefits "grossed up" in accordance with the Act. There are two types of gross-up taxable values of fringe benefit:

1. Where the University is entitled to claim GST paid on goods or services acquired to provide fringe benefits, a gross-up rate of 2.0647 will apply. Therefore, the FBT liability will be calculated as (total cost including GST * 2.0647 * 46.5%). The effect is that the amount of FBT will be equal to 96.0% of the original purchase cost. For example, if the goods and services amount to $100 (including GST), the total cost, including the FBT component, will be $196.01.
2. Where there is no entitlement to claim GST, the gross-up rate of 1.8691 will apply. Therefore, the FBT liability will be calculated as (total cost including GST * 1.8691 * 46.5%). The effect is that the amount of FBT will be equal to 86.91% of the original purchase cost. For example, if the goods and services amount to $100, the total cost will be $186.91.

(15) FBT is payable by the University and will be charged to the cost centre and project code incurring the benefit expense. Therefore, the delegated officer will be authorising the expense and FBT.

(16) The Otherwise Deductible Rule determines that the taxable value of a fringe benefit may be reduced to the extent that an employee would have been entitled to an income tax deduction had they paid for the benefit themselves. Where an employee is reimbursed an expense for something that would have entitled them to a 100% income tax deduction, then the taxable value is reduced to nil. For example, in accordance with University policy, an employee is reimbursed their professional membership fees. While a fringe benefit has been provided, the otherwise deductible rule would apply to reduce the taxable value of that benefit to nil.

(17) In all instances where a fringe benefit has been provided, an FBT Expense Payment Declaration is to be completed. The signed declaration is to be attached to the payment documentation. Where a declaration states that the expense is anything less than 100% income tax deductible, a copy of the declaration and payment documentation is to be sent to the Accountant, Tax and Insurance for inclusion in the relevant FBT calculation and return.

(18) While FBT is payable by the University, where the total benefits provided to an employee during the FBT year exceeds $1,000 ($2,000 from 1 April 2007), the University is required to include the grossed-up taxable value of fringe benefits provided to employees and/or their associate on the employee's payment summary (referred to as Reportable Benefits). All reportable fringe benefits must be grossed-up at the rate of 1.8691 once the $1,000 ($2,000 from 1 April 2007) threshold has been exceeded.

Section 5 - Guidelines

Part A - Introduction — Policy Context

(19) It is important for all managers and staff to understand the policy context in which purchasing occurs. There are the following general policies that regulate purchasing:

1. Procurement Policy
2. Purchase and Tender Board Policy
3. Corporate Credit Card Policy
4. Delegations(Administrative) Policy
5. Code of Conduct

(20) These policies stipulate requirements that apply across any purchases. For example, the Rules for Exercising Delegations which appear in the Delegations (Administrative) Policy and cover matters such as not approving one's own expenditure, apply across all purchases made on behalf of the University.

(21) The Delegations (Administrative) Policy under Delegation A1 provides the financial limits that apply to individual and group positions. These limits apply to all purchases except as provided for elsewhere in the Delegations (Administrative) Policy or in other policies which are cross-referenced in the Delegations (Administrative) Policy.

(22) So to take a practical example there are specific delegations and policies related to travel. The basic principles that derive from the Rules of Exercising Delegations are that:

1. a staff member cannot approve their own travel irrespective of the source of funding or delegation held;
2. the travel must be approved by the relevant functional supervisor;
3. the travel must be approved by someone who has a financial delegation over the account being debited and for the total cost of the travel; and
4. the cost must be debited against the cost centre that covers the purpose of the travel.

(23) Note that in most cases, but not all, the approval noted in the previous clause under b. and c. will be given by the same person.

(24) In all cases expenditure needs to be referenced to the global policies of the University, and in particular the Delegations (Administrative) Policy, as well as to the specific policy or delegation that regulates the particular activity.

(25) The Guidelines provide advice in relation to expenditure in the following circumstances:

1. Tea, Coffee, Milk, Sugar
2. Biscuits, Sweets or Similar Snacks
3. Drinking Water
4. Common Area Appliances
5. Flowers, Fruit Baskets, Gift Baskets, Teddy Bears and Other Recognition Gifts
6. Funerals, Farewells, Birthdays, Engagements, Marriages
7. Lunches/Dinners at External Venues
8. Lunches/Dinners at Internal Venues
9. Christmas (End of Year) Thank You
10. Morning and Afternoon Teas
11. Personal Items (Toiletries, clothing and the like)
12. Newspapers and Magazines
13. Car Cleaning (Personal and/or Salary Sacrificed Vehicles)
14. Membership of Professional Associations
15. Professional Books and Journals
16. Travel Expenditures
17. Taxis and Hire Cars
18. Domestic Internet/Telephone Accounts
19. Fines (including Traffic and Parking Infringements)
20. Toll Charges
21. First Aid Items
22. Visitor Exchange Gifts
23. Donations
24. Networking Activities
25. Tuition Fees

Part B - Personal and Discretionary Expenditure Guidelines

(26) For each of the expenditures listed in this schedule of guiding principles, you will find a table. This table indicates whether FBT and Reportable Benefits provisions apply. It also contains a reference to related University policies. It should be noted that these references are provided as an indicator only. They may change from time to time and individuals must ensure that comply with all relevant University policies and procedures when authorising expenditure of University funds.

Tea, Coffee, Milk, Sugar

(27) As the University allows the purchase and supply of limited refreshments for staff and guests, it is important to establish some basic standards that can be applied. These standards are as follows:

1. Units are able to provide, at University expense, supplies of coffee and tea; milk/skim milk and sugar/sweetener for general use by staff. Units can also purchase items for making of coffee and tea, such as teapots, plungers, and coffee machines.
2. Units should limit themselves to purchasing basic products for use by staff, e.g. products regularly available in supermarkets but not gourmet or specialist varieties of a high cost; or high cost/top end or specialised coffee/tea making equipment.
3. Various campus outlets and mobile coffee services exist to supplement self provision. More expensive forms of refreshment should be paid for by staff themselves.
4. Tea and coffee can be purchased by units to cater for visitors and formal meetings, training sessions, seminars and conferences. Such supplies should be limited to items of reasonable quality and cost. Generally, these supplies are not to be available for general use by staff on a day to day basis.
5. While catering is accepted where circumstances warrant it, units should be aware that it comes at a substantially higher cost and limit its use accordingly.

Biscuits, Sweets or Similar Snacks

(28) Biscuits and sweets of a reasonable quality and cost may be provided for meetings to cater for visitors and formal meetings, training sessions, seminars and conferences. This would not include the luxury items at the high cost end of the market. Biscuits for general consumption of University staff should be purchased at the expense of the individuals or by way of a voluntary collection and not from University funds.

Drinking Water

(29) The provision of drinking water is acceptable. In supplying water individual units should ensure that they choose the method of supply carefully to limit associated costs. Where water is provided, it should be available to staff generally.

Common Area Appliances

(30) It is reasonable to provide basic items (e.g. microwave, toaster, kettle, tea pot, jugs, cutlery and crockery) providing that they are located in a designated common kitchen area and accessible to all staff. Luxury and top of the range items such as fine china and espresso machines would not be deemed an acceptable use of University funds. Fridges and dishwashers are supplied at the fit out stage.

Flowers, Fruit Baskets, Gift Baskets, Teddy Bears and Other Recognition Gifts

(31) The basic standard is that where individuals wish to express support, sympathy or congratulations, this should be done by and paid for by the individual themselves. The University would only meet these expenses in situations where the University, a Division or School as a whole formally recognised the event and where this level of recognition was confirmed by the Vice-Chancellor and President, relevant Deputy Vice-Chancellor, Vice-President, Finance and Resources or Dean (e.g. a major award to a staff member).

Funerals

(32) As a general guideline it is reasonable, where sent on behalf of the University and not individuals, to purchase a wreath or other floral arrangement for the funeral of a student or staff member or to contribute an equivalent amount to a nominated charity. Expenditure in relation to such purchases should be limited to $100.00 (to be revised periodically) and clearly denoted as coming from the University and not from individuals.

(33) In addition it may be appropriate to provide a small gift (approximate value $100) to the family of a deceased staff member or student. This could be in the form of a corporate gift as a memento of the association with the University.

(34) In special circumstances it may prove reasonable for the University to send a similar gift of recognition in relation to the funeral of a person who has had a close and beneficial association with the University. Such gifts should be approved by a Dean, Deputy Vice-Chancellor, or the Vice-President, Finance and Resources or Vice-Chancellor and President, be of reasonable cost and be clearly denoted as coming from the University.

(35) Where individuals wish to personally recognise the passing of a student or staff member or a friend or family member of a student or staff member, the cost should be met by the individual or by way of a voluntary collection and identifying the gift as coming from those who contributed to its purchase.

Staff Farewells

(36) The University will meet the cost of a morning or afternoon tea for a departing staff member. In addition where the staff member has been employed with the University for 5 years or more it is appropriate to purchase at University expense, a small gift, such as the corporate merchandise, to a value of $10 per year of service. Otherwise any gifts, flowers etc. to departing staff should be paid for by way of voluntary contributions.

(37) The cost of lunches and dinners for departing staff is to be met by those attending except that a supervisor may, if no morning or afternoon tea is being provided, contribute from University funds $10 per head for staff attending a farewell lunch or dinner. The remainder of the cost is to be borne by the individuals attending.

(38) Expenditure on formal University farewells funded by the University is approved by the Vice-Chancellor and President on advice from the relevant senior officer.

Lunches/Dinners at External Venues

(41) It is reasonable to provide lunch or dinner at an appropriate venue and at an appropriate cost by way of hospitality for official visitors/guests and/or those who serve the University on a voluntary basis.

(42) University staff attending should be confined to those who need to be involved and care should be taken in planning with regard to the choice of venue to ensure that expenditure is reasonable and that the amount of alcohol provided is limited. The account should normally be settled by the most senior officer in attendance. If that is not possible subsequent approval to the payment (usually via credit card reconciliation) should not be made by the senior officers who attended the lunch/dinner.

(43) The principle here is to avoid approving expenditure where one partakes of the benefit. Where practicable such events should be approved in advance by a more senior staff member with responsibility for the area who is not attending.

(44) Partners of staff members attending such functions are not to be paid for by the University except in exceptional circumstances where it is necessary and appropriate for them to attend. Such attendance also needs to be specifically identified, with reasons given, in the approval process.

(45) With the exception of meals provided for by way of the Staff Conferences and Planning Days Policy, no other lunches/dinners should be provided for staff members/staff meetings at external venues unless costs are met personally by the supervisor, by individuals or by way of a voluntary collection.

Lunches/Dinners at Internal Venues

(48) It is reasonable to provide lunch for participants and presenters involved in all day meetings, training sessions and seminars or as otherwise provided within the provisions of the University's Travel and/or Staff Conference and Planning Days policies.

(49) Lunches are not generally provided for half day meetings and staff should provide their own meal. To avoid any possible inconvenience associated with such arrangements, meeting organisers should avoid booking meetings during normal lunch hours wherever possible.

(50) Lunches may be provided in special circumstances, where approved, having regard to the nature and purpose of the meeting, the numbers of participants and the amount of travel involved by those attending.

(51) The provision of alcohol at non-food and/or staff only meetings is not considered a reasonable expense. Alcohol should not be served for any internal meetings, and only offered when significant guests or community members are in attendance for major events or hosted dinner meetings.

(52) Dinners may be provided in accordance with the University's Travel and/or Staff Conferences and Planning Days policies or in relation to other formal occasions subject to approval by the Vice-Chancellor and President or a Deputy Vice-Chancellor.

Christmas (End of Year) Thank You

(53) Heads of Units may hold a 'Christmas Party/End of Year Thank You for staff within their functional unit. The University will contribute a maximum of $20 per staff member per annum to such events. Units need to ensure that the contribution is only paid once and not for multiple functions. The level of contribution may be reviewed annually by the Vice-Chancellor and President.

(54) Heads of Unit, Supervisors and individual staff may supplement the $20 contribution at their own expense.

(55) Where they intend to hold such an event the Unit Head should submit a report to their immediate supervisor detailing the cost of the event and the total contribution being made by the University for approval prior to the event.

(56) The only exemption from the above would apply to campus functions hosted by a Campus Provost.

Morning and Afternoon Teas

(57) Refer to the guidelines provided for:

1. Tea, Coffee, Milk, Sugar;
2. Biscuits, Sweets or Similar Snacks;
3. Flowers, Fruit Baskets, Gift Baskets, Teddy Bears and Other Recognition Gifts; and
4. Lunches/Dinners at Internal Venues

Personal Items (Toiletries, clothing and the like)

(58) With the exception of uniforms and protective clothing that the University provides in accordance with the provisions of relevant employment agreements, items of this nature are a personal expense that should be met by the individual.

Newspapers and Magazines

(59) The University Library maintains extensive electronic journal and newspaper collections (local and international) that are accessible via the Library web-site E-Resources. These are more complete than the services provided via the internet by the commercial media outlets.

(60) There should be no need for additional university expenditure on such items, and where they are purchased there must be a clear and documented business case provided. Newspapers, magazines and other publications must not be purchased for general interest reading.

Car Cleaning (Personal and/or Salary Sacrificed Vehicles)

(61) It is not appropriate, other than at the time of sale, to meet the cost of cleaning or washing staff private vehicles or salary sacrifice vehicles. Such costs are not factored into the costing formula for the packages and so are not able to be charged to the University and should be met by the individual.

Membership of Professional Associations and Professional Journals

(62) Refer to the Policy. The University will only meet such costs where there is a legal or University requirement to maintain a professional membership.

Professional Books and Journals

(63) Books and journals purchased using any University funds remain the property of the University, and are not to be considered as belonging to staff or to their personal libraries. The only exception to this is where the book or journal has been given to a staff member as an approved gift from the University.

(64) Other than in exceptional circumstances, all books and journals acquired utilising University operating funds, internal or external research funds and/or donations are to be purchased through the Library and not on corporate credit cards. Library negotiated discounts will be applied to all associated internal budgetary transfers. All books and journals are to be recorded in the Library system for tracking and audit purposes. This includes books and journals that are located in the Library and its electronic resources and all books and journals located in functional areas. Refer to the Library Collection Development and Access Policy.

(65) Where a journal is not subscribed to by the Library but is required for a functional office of the University to undertake its activities, a request for journal selection should be made in accordance with the Library Collection Development and Access Policy.

Travel Expenditures

(66) Expenditure while travelling must be in accordance with the procedures detailed in the Travel Policy and with the principles and guidelines outlined in this policy.

Taxis and Hire Cars

(67) The use of taxis and/or hire cars should be limited to situations where pool cars and/or public transport are not available or do not provide a practicable and safe substitute. Where circumstances justify the use of taxis and/or hire cars the relative cost of each should be considered in determining which type of transport to use.

Domestic Internet/Telephone Accounts

(68) It is not appropriate to pay private internet provider accounts for home computers and/or phones unless these are being established and/or used for business purposes in accordance with applicable University policies.

(69) All expenditure and usage relating to such services should comply with the provisions of all relevant University policies.

Fines (including Traffic and Parking Infringements)

(70) Fines are a personal expense and are not to be charged to the University under any circumstances.

Toll Charges

(71) It is reasonable to use University funds to cover the actual cost of toll charges that are incurred in relation to a business trip. Expenses related to travel between the University and home or any other private venue/event are considered personal expenditure and should be met by the individual.

(72) With respect to E-Tags the following conditions apply:

1. Pool Vehicles:
   1. All University pool vehicles are fitted with an E-Tag. The electronically calculated tolls will be charged to the same cost centre nominated for the cost of the vehicle hire.
2. Non salary sacrifice vehicles:
   1. University vehicles which are dedicated to the use of a specific budget unit may be fitted with a University E-Tag with the approval of the head of the budget unit. If such a tag is required, written application should be made to the Purchasing Unit in the Finance Office, quoting the vehicle registration and signed by the appropriately delegated budget Unit Head.
   2. All toll charges will be processed via the UWS Vehicle Fleet Management System.
   3. Budget units/centres are not to open E-Tag accounts directly with the toll companies.
3. Salary sacrifice vehicles:
   1. Salary sacrifice vehicles have a component of private usage factored in to the conditions of use and, therefore University E-Tags, to be used solely for official business purposes, will not be issued. If staff who salary sacrifice for a University vehicle wish to obtain access to an E-Tag, they should apply for one personally to the RTA or any alternate tag supplier. Any official use on an individual's E-Tag can be reimbursed by the University with the appropriate lodgement of an authorised claim via Accounts Payable (except as per Clause 68 d i below).
4. M4/M5 Rebate Scheme:
   1. With respect to business use, salary sacrifice vehicles are registered "General Private" and as such staff are able and should claim the rebate from the M4/M5 Cash Rebate Scheme. The Scheme does not however, rebate the GST component. The GST component is claimable from the University. Individuals should seek GST reimbursement with the lodgement of an authorised claim via Accounts Payable in the Finance Office. Refer RTA website.

First Aid Items

(73) First aid kits are to be kept stocked as required. However, additional items such as Panadol and other "over the counter" medications are not to be paid for with University funds.

Visitor Exchange Gifts

(74) The exchange of token gifts should be managed in accordance with the University's Gift and Benefit Acceptance and Management Policy, as well as the policies, procedures and laws applicable to the external party.

Donations

(75) Donations are only permitted to registered charities and then only in exceptional circumstances as approved by the Vice-Chancellor and President or a Deputy Vice-Chancellor or Vice-President, Finance and Resources as a formal donation by the University.

(76) This does not affect individual undertaking fundraising activities for charitable and other not for profit organisations so long as the activity is unobtrusive and entirely voluntary for staff.

Networking Activities

(77) First and foremost it is essential that such activities be avoided where participation could be perceived as inappropriate in terms of upcoming or future decisions in relation to business contracts and service agreements or the like. Individually targeted benefits should be avoided and referred to line managers.

(78) Where the above restriction does not apply it would be reasonable for the University to meet costs related to networking activities only if there are demonstrable benefits to the University in attending the activity and the cost is reasonable in respect of the benefit to be gained.

Tuition Fees

(79) Tuition fees may be paid using University funds to the extent and in the manner provided for in relevant University policies.