Financial Support - University of Illinois (2024)

Financial Support

A financial support award is a payment to an outside organization in support of joint, or mutually beneficial initiatives, activities, or events.

The Purchasing Officewill provide assistance in initiating a financial support award agreement. When contactingthe Purchasing Office, please includeany documentation you have received from the other party and answers to the following:

1. University Department Name and Organization Code
2. University Department contact person’s name, address, phone, and email
3. Full Name of Recipient Organization
4. Recipient Organization contact person’s name, address, phone, and email
5. Type of Organization (e.g., not-for-profit, artistic consortium, etc.)
6. Recipient Organization’s Mission Statement
7. Why is the financial support needed?
8. How long does department need to issue payment to recipient organization?
9. The Amount Awarded to Recipient Organization
10. How long Recipient Organization has to spend the funds (e.g., if funds are to help offset conference costs, 30 days after end of conference)?
11. Documentation to attach to Agreement to verify expenditure (e.g., conference agenda, support form, etc.)

Allowability

Financial support payments must be made to an organization, not to an individual. Prior approval is required from the university OBFS chief business officer in the rare circ*mstance where a unit is requesting a financial support or sponsorship payment to an individual. If approval is granted for a financial support or sponsorship payment to an individual and the individual is a student, the payment should be processed following the steps forPayments to University of Illinois Students. Please note that if the activity for which funds are being requested has already taken place, financial support payment cannot be made and the request should be processed as an after the fact requisition in iBuy.

Financial support payments to a Recipient cannot be used to:

• carry on propaganda or otherwise attempt to influence legislation;
• influence the outcome of any public election;
• carry on, directly or indirectly, any voter registration drive; or,
• conduct illegal activity.

A unit cannot use a financial support payment if the unit is making a purchase, as defined in the Illinois Procurement Code (30 ILCS 500/). Examples of what would be considered a purchase include payment of funds to: obtain supplies that will be owned by the University of Illinois System; obtain supplies which the University of Illinois System in turn donates to the Recipient; obtain supplies using a University of Illinois System license, hazardous material certification, or other similar authorization; or, to obtain a service which is completed on behalf of or under the direction of the University of Illinois System.

Financial support payments cannot be artificially divided to circumvent the dollar thresholds established in this policy.

Employees are not allowed to provide the System’s tax exemption certificate to a Recipient because the Recipient is not allowed to utilize the University of Illinois System’s tax exempt status for any purchases the Recipient makes with the financial support/sponsorship payment.

Financial Support Payment for a Recipient to Purchase Supplies or Services

When providing financial support payment for a Recipient to purchase a supply or a service, unit may identify the intent of the financial support payment to the Recipient.

To maintain the autonomy of the Recipient and mitigate risk to the University of Illinois System, the unit should not direct how, when and where the financial support payment must be used by the Recipient.

Funding

Financial support payments may only be funded from institutional funds (such as ICR), gift or endowment income funds (as long as the financial support payment is in compliance with the donor intent restrictions assigned to the fund), or self-supporting funds (when directly related to generation of the fund’s revenue).

State funds cannot be used for financial support payments. Units must use account code 186550 for all financial support payments.

Funds will be paid via a check sent through U.S. Mail or direct deposit, based on how the Recipient elected to receive payment when completing the vendor setup process.

Examples of Allowable and Unallowable Financial Support/Sponsorship Payments

Allowable Example (with consideration): A financial support payment may be made to a Recipient to sponsor the Recipient’s annual conference if the Recipient’s annual conference promotes or advances one or more of the University of Illinois System’s missions. It is acceptable to obtain consideration:

• such as advertising in the annual conference’s brochure as a sponsor; or,
• in the form of conference registrations.

However, consideration received for financial support payment cannot be thesole reasonfor the sponsorship payment.

Unallowable Example: A financial support payment cannot be made tosolely:purchase conference registrations; obtain access to a vendor booth at the Recipient’s conference; or pay for an individual’s dues to an organization. These activities would be considered a purchase regardless whether or not the conference promotes or advances one or more of the University of Illinois System’s missions.

Allowable Example (supply): A financial support payment can be made to a Recipient for the Recipient to purchase nametag-lanyards to be given out at their annual meeting if the Recipient’s annual meeting promotes or advances one or more of the University of Illinois System’s missions.

Allowable Example (service): A financial support payment can be made to a Recipient for the Recipient to pay for catering services at their annual meeting if the Recipient’s annual meeting promotes or advances one or more of the University of Illinois System’s missions.

Unallowable Example (supply): A financial support payment cannot be made to the Recipient if the University of Illinois System is directing that the financial support payment must be used to purchase 100 green, 100 red and 100 blue nametag-lanyards from [Specific Nametag-Lanyard supplier] to be provided to attendees of the Recipient’s annual meeting.

Unallowable Example (service): A financial support payment cannot be made to the Recipient if the University of Illinois System is directing that the financial support payment must be used to pay $500 to a specific catering company to cater the Recipient’s annual meeting.

Unallowable Example (service): The University of Illinois System cannot make a financial support payment directly to a catering company to cater a Recipient’s annual meeting.

Procedure

To process a financial support payment to Recipients follow the procedures below.

$5,000 or Less

1. Unit determines eligibility of the financial support payment pursuant to this policy.
2. Unit must obtain written assurances (e-mail is an acceptable form of a written assurance) from the Recipient that it will not use the funds to:
   • carry on propaganda or otherwise attempt to influence legislation;
   • influence the outcome of any public election;
   • carry on, directly or indirectly, any voter registration drive; or,
   • conduct illegal activity.
3. Unit completes theFinancial Support/Sponsorship Payment Form.
4. The Unit Head must approve the payment by signing and certifying to the statements included in theFinancial Support/Sponsorship Payment Form. Unit Head approval and signature cannot be delegated.
5. A contract is not required. Skip to Step 7 unless Recipient requires a contract.
6. If the Recipient requires a contract, the contract should be routed to the Purchasing Division for execution by entering a contract request in Contracts Plus and including the signedFinancial Support/Sponsorship Payment Form and any supporting documentation, for execution. If Recipient requires a contract, do not proceed to Step 7 until a contract has been fully executed by Purchasing.
7. Unit submits payment request in Chrome River, using account code 186550. The unit must attach the completedFinancial Support/Sponsorship Payment Form, including supporting documentation (as described on theFinancial Support/Sponsorship Payment Form). If applicable, the unit must reference the executed contract number; however, the contract should not be attached to the payment request.
8. University Payables (“UPAY”) reviews the payment request and theFinancial Support/Sponsorship Payment Form before processing payment.
9. All financial support or sponsorship payments are subject to post-audit review for compliance.

Contact University Payables with questions related to a financial support payment of $5,000 or less.

Over $5000.00

1. If the payment qualifies as financial support or sponsorship payment pursuant to this Section of the OBFS Policies and Procedures, the unit completes theFinancial Support/Sponsorship Payment Form.
2. The Unit Head must approve the payment by signing and certifying the statements in theFinancial Support/Sponsorship Payment Form. Unit Head approval and signature cannot be delegated.
3. A contract is required. The unit must route the completed and signed Financial Support/Sponsorship Payment Form to the Purchasing Division by entering a contract request in Contracts Plus.
4. Purchasing will review the Financial Support/Sponsorship Payment Form to confirm eligibility of the sponsorship payment pursuant to this Section of the OBFS Policies and Procedures.
5. Purchasing will work with the unit to obtain a Recipient-signed copy of a Financial Support/Sponsorship Agreement.
6. Purchasing will route the Financial Support/Sponsorship Agreement for review and approval before obtaining authorized signature. Purchasing will provide the unit and Recipient with a copy of the fully executed contract.
7. Unit submits payment request in Chrome River, using account code 186550. The unit must attach the completed Financial Support/Sponsorship Payment Form, including supporting documentation (as described on the Financial Support/Sponsorship Payment Form). Unit must reference the executed contract number; however, the contract should not be attached to the payment request.
8. UPAY reviews the payment request before processing payment.