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

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

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
  • 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

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

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.

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