Financial Administration

Segregated Fee Expenditures (F20)

Revised: February 9, 2001

  1. Background

    A portion of the total fees assessed each student of the University of Wisconsin System is designated for the operation of various student services and organizations. Those designated fees are called Segregated University Fees (SUF). The Board of Regents of the University of Wisconsin System is granted authority to assess and regulate the use of SUF by Sections 36.09(3), 36.09(5) and 36.27(1) Wisconsin Statutes. The Board of Regents annually approves the SUF expenditure budgets proposed by the Institution Segregated University Fee Allocations Committees (SUFAC), the Chancellors and the President of the System. The total SUF budget of each Institution is divided into a portion allocable to student program operations and a non-allocable portion for retirement of debt service, capital projects, building maintenance, the minimum health care module, and other costs in accordance with the provisions of FAP - Segregated Fee Determination and Distribution (F37). SUF revenues are deposited to and expended from the Auxiliary Enterprises appropriation (UW Fund 128) in accordance with Section 20.285(1)(h) Wisconsin Statutes.

    Section 36.09(3) Wisconsin Statutes outlines the responsibility of the Chancellor with respect to allocated funds "...administering associated auxiliary services; and administering all funds, from whatever source, allocated, generated or intended for use of their institutions." Section 36.09(5} Wisconsin Statutes provides "Students in consultation with the chancellor and subject to the final confirmation of the board shall have the responsibility for the disposition of those student fees which constitute substantial support for campus student activities."

     

  2. Policy

    It is the policy of the University of Wisconsin System to ensure that SUF is collected, allocated and expended in a manner consistent with the requirements of the United States Constitution, the Wisconsin Constitution and applicable state statutes, regulations and policy directives.

    Only student organizations which meet the institutional qualifications for official recognition and are so recognized and University departments may receive SUF support. All student organizations receiving SUF support along with any student organization using University facilities, must agree as a condition of such support or use, to provide financial records, if requested, indicating specific revenues and expenditures for the particular event for which they received SUF support or the particular event they utilized a University facility. If SUF is received for ongoing operations of an organization, the organization must provide financial records of their entire operation, if requested by the SUFAC or the Institution. An organization's failure to comply with a request for financial information may result in the denial of SUF support and/or use of University facilities.

    All SUF money must be deposited and maintained in the State Treasury. For all SUF funded events, organizations must initially use revenues to reimburse the SUF account. Any other revenues are available to the organization for their own use; the organization is not required to keep these excess revenues in the State Treasury. An organization using University facilities for an event for which no SUF support was received is not required to deposit those receipts in the State Treasury. Organizations may use Institution agency accounts, if available, for the deposit of their activity receipts. These are the minimum deposit guidelines for segregated fees, SUF-related receipts, and receipts generated using University facilities. Institutions may set more strict guidelines for such receipts where appropriate.

    SUF money may only be expended for those items and activities which are related to the mission of the Institution and to the purpose of the organization. Expenditures of SUF must conform with constitutional requirements, including the decision of the United States Supreme Court in Board of Regents v. Southworth, 529 U.S. 217, 120 S. Ct. 1346 (2000), existing Wisconsin Statutes, Attorney General's opinions, Board of Regents' regulations, UW System Policy Papers, and State Department of Administration and Department of Employment Relations regulations. To that end, each student government, in consultation with the chancellor, must develop policies and procedures that, at a minimum:

    1. Describe any written criteria, in addition to those elsewhere established by law, for the allocation of SUF;
    2. Require the creation of a detailed record, which may be a tape recording, of all student fee funding allocation deliberations;
    3. Require that student organizations denied funding be provided, upon request, with a written statement of reasons for the denial;
    4. Provide a mechanism for avoiding conflicts of interest by students participating in the process for allocation of student fee funding, which mechanism may include requiring that participants disclose lobbying contacts; and
    5. Establish an appeal process within student government for the review of student fee funding decisions, where it is alleged that the decision was based on a student organization's extracurricular speech or expressive activities, resulting in a violation of the requirement that allocable student fees be distributed in a viewpoint-neutral manner.

    As appropriate, all students must have the opportunity to join any SUF funded organization. Membership must be open to all eligible or qualified students. Exceptions must be approved in advance by the SUFAC and the Chancellor or his/her designee.

    The allocable portion of the SUF budget must be approved by the SUFAC and Chancellor or his/her designee.

    Institutions must provide for an appeal to the Chancellor of a student fee funding decision where it is alleged that the decision was based on a student organization's extracurricular speech or expressive activities, resulting in a violation of the requirement that allocable student fees be allocated in a viewpoint-neutral manner, and where the appealing party has exhausted the process for review of student fee funding decisions established by the student government for such cases. The Chancellor's decision shall be final, unless the matter is brought to the Board of Regents in accordance with Regent Policy Documents 30-3 and 30-5.

    Student Organizations requesting SUF support must make their financial records available to the SUFAC (meaning the process adopted by students at the Institution for determining segregated fee allocations). Student referenda may not be used, directly or indirectly, to allocate SUF funds to student organizations for extracurricular speech or expressive activities. Any funds so allocated shall not be approved for inclusion in the budget by the Chancellor or his or her designee.

     

  3. Guidelines

    These guidelines are intended to assist students and administrators in evaluating the propriety of expenditures from SUF funds. The following division of expenditures indicate those considered appropriate and those considered inappropriate.

    1. Appropriate SUF Expenditures

      1. Travel expenses (including admission and registration fees) incurred by UW staff or students to participate in events such as:

        1. Attendance at educational, cultural, social, recreational, or University athletic events.

        2. Recruiting students for musical groups, theatrical groups, publication writers, etc.

        3. Representing the Institution or the student group in the operation and fulfillment of the mission of the student organizations, student service operations, and student government. (These activities are subject to approval by the Chancellor or his/her designee.)

        4. Recruiting athletes, as allowed by conference or membership affiliation.

        5. Busing students within the campus. Payment for bus services which extend beyond the campus boundaries must be approved by the Chancellor.

        All travel expenses must be in accordance with UW System Travel Regulations and guidelines established by the Department of Employment Relations.

      2. Expenses Related to Educational, Cultural, Social, and Recreational Activities For:

        1. Personal or professional services (e.g., concert performers, bands, officials, lecturers, and other performers). Reimbursement for services provided by UW faculty or staff may be made in accordance with the provisions of FAP - Personal Services Payments (F31) and Academic Planning Statement #4.

        2. Meals, receptions, and transportation incurred by UW faculty or staff or students while performing a host function for a guest speaker, performer, etc., brought to the campus for a SUF funded activity, if such expense was part of the budget approved for the activity.

        3. Production of the event (e.g., films, advertising, promotion, printing, facilities rental, ushers, and security guards). On-campus facilities (buildings and grounds) must be used whenever possible. Exceptions require the prior approval of the Chancellor or his/her designee.

        4. Trophies, medallions and other types of awards for student competitive functions, scholastic excellence, or outstanding school/community service, and funding of honor banquets or receptions subject to the following guidelines:

          1. If the organization holding the banquet or reception or presenting the awards receives any SUF support, the Institution SUFAC must specifically approve the expenditure as part of the SUF budget prior to the event.

          2. Cash or product awards in excess of $100 but less than $500 may be given only upon prior approval of the Chancellor. Those in excess of $500 must be approved by the Vice President for Business and Finance.

      3. Student Media Expenditures For:

        1. Publishing student newspapers, yearbooks, magazines, paid admission event programs, and other print media. (Student publications are exempt from the state printing regulations per Section 35.012 Wisconsin Statutes. However, they are not exempt from the regular purchasing regulations in Section 16.70.)

        2. Operating student radio and television facilities.

        3. Student film and videotape productions.

      4. Officially Recognized Athletic Program Expenditures For:

        1. Uniforms, athletic equipment, and personal services.

        2. Athlete's housing and meals prior to opening of a semester or during vacation periods.

        3. Grants-in-aid as allowed by conference or membership affiliation.

        4. Medical expenses for an athletic injury incurred while participating in an officially recognized athletic event. Injuries related to intramurals, open gym periods, club sports, and student sponsored athletic events are not covered. (Information on student health insurance is available from the Institution's Risk Management Office.)

        5. Athletic banquets or receptions and awards subject to the following provisions:

          1. If the organization holding the banquet or reception or presenting the awards receives SUF support, the Institution SUFAC must specifically approve the expenditure as part of the SUF budget prior to the event.

          2. Cash or product awards in excess of $100 but less than $500 may be given only upon prior approval of the Chancellor. Those in excess of $500 must be approved by the Vice President for Business and Finance.

      5. Expenditures Relating to the Operations and Activities of: Student Organizations, Student Health Services, Day Care Centers, Union Student Center, Textbook Rental, Parking Utility, Stadium-Arena, Intramurals, and other student services for:

        1. Salaries for students and other staff where related to the activity and in accordance with existing institutional and state wage rates and employment procedures. (Payments shall be made in accordance with the provisions of FAP - Personal Services Payments (F31).)

        2. Professional services.

        3. Facilities, equipment, personal services, and supplies.

        4. Organization membership fees in other related and nonprofit organizations.

        5. Debt service reduction.

      6. Promotional items such as matchbooks, key rings, pencils, etc., used to promote an organization's single event or services, provided they are approved through the SUF allocation process.

      7. Special and ceremonial campus activities in which students are primarily involved provided they are approved through the SUF allocation process.

    2. Inappropriate SUF Expenditures

      1. Direct financial aid to an enrolled student; such as, scholarships, tuition, room and board, etc. This does not apply to child care payments.

      2. Gifts, donations and contributions.

      3. Awards to UW faculty or staff. Non-monetary de minimis awards are allowable, e.g., certificates, plaques, etc.

      4. Costs of legal services. An attorney may be hired in connection with campus legal services, but the Governor's approval is required.

      5. Lump sum payments to student organizations (as opposed to payments for specific purposes supported by invoices).

    3. Appropriate Expenditures of SUF-Related Receipts

      1. Receipts generated by SUF activities become part of the budget of that activity and may be used for the purposes described in Section III.A. On occasions, such as the beginning of an academic year, where a ceremonial activity is merited but SUF-related receipt revenue has not yet been generated, it is permissible to pay the expenses of the activity from SUF and replenish the SUF account when the anticipated receipts are actually generated.

      2. Gate receipts from Intercollegiate Athletics may be used for athletic scholarships in accordance with Wisconsin Statutes, University Policies and the official conference rules applicable to the respective Institutions.

      3. Donations and scholarships if the activity generating the SUF-related receipts was conducted specifically for such purposes. Any SUF expenses for the activity must be returned to the organization's account from gross receipts. The remaining receipts may then be used for the purpose for which they were generated.