No. 16.000 Rev. 1 (11/09/00)

Discretionary Fund

2.0

Effective Date 1/1/99

3.0

Scope

This policy addresses the use of discretionary funds at the laboratory.

4.0

Applicability

All Fermilab employees.

5.0

Policy

Documentation Requirements

Use of all Discretionary Funds must be well documented, identifying at a minimum the following:

  1. Purpose
  2. A direct benefit to the Lab must be shown.
  3. Individuals present and their relationship to the Lab
  4. A list of names and the organizations they represent shall be well documented. For example: business lunches shall include a list of those in attendance. If the list is extensive, such as would be the case for an awards ceremony, a list of those invited and/or recognizable groups may be substituted.
  5. Time and Date of the Expenditure
  6. Time and date shall be tied to the occasion for which the expenditure is being made, as well as the date the expense was incurred.

Note: Proper documentation must accompany all reimbursement requests to URA Headquarters.

Limitations on Expenditures

Good Business Practices should be observed in order to maximize the effectiveness of the Discretionary Funds. Accordingly, the following limitations will be observed unless there are extenuating circumstances

Individuals attending the functions or benefiting from the expenditures shall be directly associated with the Lab either through an employment or business relationship.

As a general rule, unless the guests of honor are encouraged and are bringing their spouses, employee spouses will be excluded from official functions that rely on Discretionary Funds to cover the costs.

Certain exceptions will apply, i.e., spouses of employees who are being honored for outstanding service, on the occasion of their retirement, or upon their transfer to another position outside the Laboratory, or spouses who play a significant role in hosting an event, e.g., informal gatherings at private residences.

On those few occasions involving Laboratory-wide activities, this rule may be relaxed.

Alcoholic beverages, served where appropriate at business meetings, may be served in strict moderation.

Food and beverage costs, associated with various time periods of the day, shall observe the following average cost limitations:

Breakfast $15.00
Lunch $30.00
Dinner $55.00

Personal expenses are to be excluded from reimbursement.

Telephones in residences are by definition construed to be a personal expense, unless the line is a dedicated line for official business only. This does not preclude individual business calls from being reimbursed. Similarly, cellular telephones are not reimbursable, unless their installation and use can be identified as justifiable from a business standpoint (periodic reviews should demonstrate a minimum of 86% business use). Individual business calls from cellular telephones are reimbursable.

Cleaning personal residences, such as the Director's residence, will not be reimbursed unless it is done immediately prior to, or after, an official function being held at the residence.

Stocking personal liquor cabinets at private residences is prohibited from reimbursement unless the alcoholic beverages are stored in a locked cabinet that is separate from the personal stock. Use of the contents of a cabinet stocked for business purposes will be restricted to business use only. Given the potential negative public perception associated with this expense, these expenses will be discouraged. Rather, alcoholic beverages if any should be purchased and reimbursed for a specific business occasion

Donations to Private Charities.

Donations to private charities are not reimbursable unless done in lieu of flowers to honor a deceased employee or other person connected with the Laboratory. The donation in lieu of flowers should be at the request of the deceased's immediate family. Lab personnel authorized to approve these expenditures should be sensitive to the appearance of discriminating against other charities not selected.

Civic Participation.

Civic participation, using Discretionary Funds, shall be limited to Lab oriented outreach programs. As such, they should be reviewed for possible reimbursement via the contract itself, where appropriate. Additionally, personnel authorized to approve these expenditures must be sensitive to the potential for the Lab to appear to favor one group over another.

Gifts and Mementos

Gifts and mementos are to be limited to (a) rare occasions, e.g., the exchange of gifts with international visitors and (b) a dollar value not to exceed $100. The Laboratory Director or Associate Director for Administration must approve all expenditures of Discretionary Funds for gifts or mementos.

Honoraria

Honoraria will not be provided to any employee of a DOE Laboratory nor to any individual who is compensated directly, in whole or in part, from an URA Laboratory funded program.

Items Requiring Sensitivity

Frequency of Events:

Events that can be construed to be primarily social shall be reviewed for frequency as well as purpose. Discretionary Funds shall not be used to celebrate birthdays, promotions, change of position, etc. The intent of the Discretionary Funds is to benefit the Lab, not one or a few specific persons.

Commingling Personal with Business Expenditures:

Where available, a separate business club membership account shall be maintained when the frequency of use by Lab personnel dictates such an account would be appropriate and desirable in preserving a focused audit trail.

Authorization for Exceeding Guideline Limitations

Authorization for reimbursing expenditures that exceed the guideline limits shall be vested with the Laboratory's Director or Associate Director for Administration. Appeals regarding disagreements are to be channeled to the URA Vice President or Treasurer.

The extenuating circumstances dictating a need to exceed these guidelines should be well documented, identifying the circumstances, the rationale, and the need to do so.

Internal Controls

Proper internal controls will be implemented to ensure that all Discretionary Funds are expended in accordance with these guidelines.