Allowable Expenses

Determining whether an expense is allowable or unallowable starts with understanding the fund used to paid for the expense. Each fund has guidelines for expenditures that the university must follow.

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Fund + Description	See Details
110100, 120500 – Education and General, Research Development Funds appropriated by the legislature through the General Appropriations Act for the operation of an institution of higher education.	Allowables
Search Expense Allowable Advertisements (note restrictions) Auditing services approved by SAO Awards for employee (longevity and retirement; not to exceed $100) Awards for volunteer (not to exceed $50) Books and reference materials Chemicals and gases Consumables (office, instructional, research) Equipment Furniture IT hardware/software/services Legal services approved by AG License fees related to function and SHSU receives benefit Maintenance/repair of equipment Memberships (must be approved) Periodicals and subscriptions Postage and shipping charges Professional services Purchase from on-campus service center to fulfill statutory duties Registration fees (conference) Speaker fees Telephone equipment and services Temporary services Training/education related to current/prospective duties Travel (in accordance with State Travel Guidelines) Utilities Not Allowable Acquisition, construction, or operation of television transmitters stations Advance payment for goods/services not yet received Athletic scholarships Auxiliary enterprises or operations Donations and contributions Establishing additional museums Flowers, floral arrangements, or plants (live or artificial; except for education purposes) Food and entertainment, including bottled water Alcohol Gifts, gift cards, and gift certificates Good and services for personal use Intercollegiate athletics Lease of private facilities for meetings/conferences/exams if state facilities are adequate Lobbyist or political activist Membership in organizations that hire lobbyist Moving expenses for new employee Participant payments Penalties and fines, settlements and judgments Polygraph testing Promotional items Public relations agencies Publicizing/directing attention to officers or employees Support or maintenance of alumni organizations and activities Travel for non-employees (including students), international travel, or travel overages
120100, 120200 – LEMIT, CMIT Funds appropriated by the legislature through the General Appropriations Act with a special designation	Allowables
Search Expense Allowable Advertisements (note restrictions) Auditing services approved by SAO Awards for employee (longevity and retirement; not to exceed $100) Awards for volunteer (not to exceed $50) Books and reference materials Chemicals and gases Consumables (office, instructional, research) Equipment Food and entertainment for participants Furniture IT hardware/software/services Legal services approved by AG License fees related to function and SHSU receives benefit Maintenance/repair of equipment Memberships (must be approved) Periodicals and subscriptions Postage and shipping charges Professional services Purchase from on-campus service center to fulfill statutory duties Registration fees (conference) Speaker fees Telephone equipment and services Temporary services Training/education related to current/prospective duties Travel (in accordance with State Travel Guidelines) Utilities Not Allowable Acquisition, construction, or operation of television transmitters stations Advance payment for goods/services not yet received Athletic scholarships Auxiliary enterprises or operations Donations and contributions Establishing additional museums Flowers, floral arrangements, or plants (live or artificial; except for education purposes) Food and entertainment, including bottled water Alcohol Gifts, gift cards, and gift certificates Good and services for personal use Intercollegiate athletics Lease of private facilities for meetings/conferences/exams if state facilities are adequate Lobbyist or political activist Membership in organizations that hire lobbyist Moving expenses for new employee Participant payments Penalties and fines, settlements and judgments Polygraph testing Promotional items Public relations agencies Publicizing/directing attention to officers or employees Support or maintenance of alumni organizations and activities Travel for non-employees (including students), international travel, or travel overages
120400 – HEAF Funds provided under the Texas Construction Art. VII, §17 and the Texas Education Code §62.021 to assist institutions of higher education.	Allowables
Allowable Equipment that is defined as a capital asset Constructing and equipping buildings or other permanent improvements Land either with or without permanent improvements Library books and materials Major repair or rehabilitation of buildings or other permanent improvements Above allowable expenditures for only E&G portion when jointly used for E&G and auxiliary activities Not Allowable Constructing, equipping, repairing, or rehabilitating buildings or other permanent improvements used only for student housing, intercollegiate athletics, or auxiliary enterprises Library salaries All other expenditures not specifically defined in HEAF allowable expenditures Procurement card (P-Card) expenditures
14 – Designated Tuition Tuition received from students.	Allowables
Allowable All state appropriated allowable expenses Awards and gifts Food, beverages, and related expenses Flowers, flower arrangements, and plants Holiday cards (mail or purchase) Lease facilities for meetings, conferences, and group exams Memberships Student travel Travel (In accordance with Institutional Travel Guidelines) Not Allowable Alcohol Donations and contributions
15 – Designated Other Fees received from students (Technology fee, Student Service fee, etc.).	Allowables
Allowable All state appropriated allowable expenses Awards and gifts Food, beverages, and related expenses Flowers, flower arrangements, and plants Holiday cards (mail or purchase) Lease facilities for meetings, conferences, and group exams Memberships Student travel Travel (In accordance with Institutional Travel Guidelines) Not Allowable Alcohol Donations and contributions
16 – Designated Research Funds established under the Texas Education Code §141.001 to encourage and provide research conducted by faculty members.	Allowables
Allowable Engaging in research programs of critical interest to the general welfare of the citizens of this state Pre-grant feasibility studies Preparing competitive proposals for sponsored programs Providing carry-over funding for research teams to provide continuity between externally funded projects Purchasing capital equipment directly related to expanding the research capability of the institution Research or project administrative costs Supporting new researchers pending external funding Not Allowable Renovation costs Visa/immigration application or filing fees
17 – Auxiliary Fees Fixed fees received from students that are designated for campus auxiliaries (Medical Service fee, Athletic fee, etc.).	Allowables
Allowable All state appropriated allowable expenses Awards and gifts Food, beverages, and related expenses Flowers, flower arrangements, and plants Holiday cards (mail or purchase) Lease facilities for meetings, conferences, and group exams Memberships Student travel Travel (In accordance with Institutional Travel Guidelines) Not Allowable Alcohol Donations and contributions
18/19 – Auxiliary Service Departments Funds collected as allowed under the Texas Education Code §51.001 to directly support the area that collected the fee.	Allowables
Allowable All state appropriated allowable expenses Alcohol Awards and gifts Food, beverages, and related expenses Flowers, flower arrangements, and plants Holiday cards (mail or purchase) Lease facilities for meetings, conferences, and group exams Memberships Student travel Travel (In accordance with Institutional Travel Guidelines) Not Allowable Donations and contributions
21 – Current Restricted Gifts from private donors	Allowables
Allowable Alcohol All state appropriated allowable expenses Awards, including employee cash awards Food, beverages, and related expenses Flowers, flower arrangements, and plants Holiday cards (mail or purchase) Lease facilities for meetings, conferences, and group exams Memberships Student travel Travel (In accordance with Institutional Travel Guidelines) Not Allowable Expenses not consistent with the intent of the gift (e.g., Friends of Athletics cannot be used for any other area than Athletics)
22 – Federal Awards Contracts and grants from a federal sponsor.	Allowables
Allowable Below are examples of allowable costs, but specific details for each award are found in the budget and the budget justification. Contractual costs Participant costs Salary and fringe Supplies Travel Not Allowable Below unallowable costs are examples and others may be included in final grant contract or other specific funding guidelines. Alcohol, unless specifically allowed by the agreement Audit services Contributions and donations Entertainment Food Fund raising costs Promotional items Public relations costs
25 – State Awards Contracts and grants from a state sponsor.	Allowables
Allowable Below are examples of allowable costs, but specific details for each award are found in the budget and the budget justification. Contractual costs Participant costs Salary and fringe Supplies Travel Not Allowable Below unallowable costs are examples and others may be included in final grant contract or other specific funding guidelines. Alcohol Audit services Contributions and donations Entertainment Food Fund raising costs Promotional items Public relations costs
26 – Private Industry Awards Contracts and grants from a private industry sponsor.	Allowables
Allowable Below are examples of allowable costs, but specific details for each award are found in the budget and the budget justification. Contractual costs Participant costs Salary and fringe Supplies Travel Not Allowable Below unallowable costs are examples and others may be included in final grant contract or other specific funding guidelines. Alcohol, unless specifically allowed by the agreement Audit services Contributions and donations Entertainment Food Fund raising costs Promotional items Public relations costs
27 – Other Awards Contracts and grants from a sponsor not categorized.	Allowables
Allowable Below are examples of allowable costs, but specific details for each award are found in the budget and the budget justification. Contractual costs Participant costs Salary and fringe Supplies Travel Not Allowable Below unallowable costs are examples and others may be included in final grant contract or other specific funding guidelines. Alcohol, unless specifically allowed by the agreement Audit services Contributions and donations Entertainment Food Fund raising costs Promotional items Public relations costs
28 – Non-Profit Awards Contracts and grants from a non-profit organization.	Allowables
Allowable Below are examples of allowable costs, but specific details for each award are found in the budget and the budget justification. Contractual costs Participant costs Salary and fringe Supplies Travel Not Allowable Below unallowable costs are examples and others may be included in final grant contract or other specific funding guidelines. Alcohol, unless specifically allowed by the agreement Audit services Contributions and donations Entertainment Food Fund raising costs Promotional items Public relations costs
29 – Internal Awards Contracts and grants awarded from SHSU to SHSU participants.	Allowables
Allowable Below are examples of allowable costs, but specific details for each award are found in the budget and the budget justification. Contractual costs Participant costs Salary and fringe Supplies Travel Not Allowable Below unallowable costs are examples and others may be included in final grant contract or other specific funding guidelines. Alcohol Audit services Contributions and donations Entertainment Food Fund raising costs Promotional items Public relations costs
31 – Endowment Scholarship Scholarship funds supported by an endowment.	Allowables
Allowable expenses are defined in the endowment agreement –typically scholarships. Agreements can be obtained through University Advancement.
32 – Private Scholarship Scholarship funds that receive regular contributions from a donor to the actual scholarship.	Allowables
Allowable expenses are defined in the scholarship agreement. Agreements can be obtained through University Advancement.
33 – Other Scholarships/Gifts Gift funds that are not related to a scholarship or other defined restricted fund.	Allowables
Allowable expenses are defined in the scholarship agreement. Agreements can be obtained through University Advancement.
34, 38, 39, & 41 – Financial Aid Activity related to the receipt and disbursement of funds related to student financial aid.	Allowables
Refer to the Financial Aid Office for allowable expenses.
51 – Quasi Endowment Funds functioning as endowments which are used to report resources that the governing board has determined are to be maintained and managed like an endowment.	Allowables
Allowable expenses are defined in the endowment agreement. Agreements can be obtained through University Advancement.
59 – Life Income Donated funds functioning like an annuity.	Allowables
Allowable Payments to donors Not Allowable No other expenses allowed
61 – Endowment Funds to which a donor has stipulated, as a condition of the gift, that the gift is to be maintained inviolate and in perpetuity.	Allowables
No expenses allowed.
71 – Charter School Funds received from the Texas Education Agency to be used to support the operations of an open-enrollment, public charter school.	Allowables
Search Expense Allowable Accounting services Ancillary services Architecture Audio-visual aids Audit services Awards Band instruments and uniforms Bid notices Consulting services Contracted maintenance and repair services Contracted services Counseling services Data processing services Education service center services Employee allowances Field trips Food and beverages Food service supplies Fund raising activities Furniture Gasoline and other fuels for vehicles General supplies (office, classroom, etc.) Graduation expenses Health services Instructional materials Insurance and bonding costs Interest expense and other debt fees Land surveying Landscape architecture Legal services Library materials Lobbying Marketing Medical supplies and medicine Mental health screenings Optometry Physical exams for athletic purposes Professional development Professional engineering Professional nursing Psychologists, psychiatrists, and diagnosticians Reading materials Real estate appraising Rentals and operating leases Salary and fringe Security and monitoring services Site licenses and software Social work services Special education instructional services and materials Stipends Supplies and materials for maintenance and operations Technology and associated equipment Testing materials Textbooks Transportation costs Travel Tuition and transfer payments Utilities Vehicles Not Allowable For information on non-allowable expenses, refer to the Financial Accountability System Resource Guide provided by the Texas Education Agency (TEA) and resources related to the specific funds granted by TEA.
81 – Agency Funds that belong to a third party and SHSU is acting as the custodian.	Allowables
Items are determined by the third party who controls the funds. Agency funds are not required to follow SHSU procurement policies. The Direct Pay form in BearKatBuy should be utilized for all expenses.

References