lonemountain     
Overview of the campus
People walking on Lone Mountain
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Negoesco soccer field at the University of San Francisco     
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Golden Gate Bridge at noon  

Membership Procedures


PROCEDURES


AUTHORIZATION

Expenditures for memberships require prior approval by the Business Manager, which may include the President, Vice President, Vice Provost, Dean, Director, or supervisor. These individuals are responsible for determining that budgeted funds are available for the membership expenses and that the expenses are in compliance with this Policy and are appropriate for the University.

Expenditures for membership in a social club require prior written approval by the President, or his designee.


METHOD OF PAYMENT

Purchasing Card

The preferred method of payment for membership expenses is the University Purchasing Card. This card is issued to certain employees for making business-related purchases on behalf of the University. Departments are responsible for reconciling all Purchasing Card charges made in the Concur Reporting System. See Purchasing Card Policy.

Payment Request

If a Purchasing Card is not an acceptable form of payment, the department should submit a Payment Request to Business Services via the Concur Reporting System. A payment will be issued within 10 business days after Business Services receives the properly approved Payment Request.

MEMBERSHIP IN A SOCIAL CLUB

Annual Reporting

An employee who has been provided with a membership in a social club will be required to report his or her business and non-business (i.e., personal) use of the membership on an annual basis. The Annual Report of Club Membership Usage is used for this purpose. See Appendix A.

The employee must report the nature of the business discussion or entertainment activity that took place on each day the club was used for business purposes and the names and occupations of the individuals entertained to establish their business relationship with the University. With respect to an airline membership, the employee must also report the nature of the University business conducted while using the club such as holding a meeting or making confidential phone calls to the employee’s department, a potential donor, a prospective employee, or other individuals with a University business relationship.

The Annual Report must be submitted to the Director of Internal Audit and Tax Compliance by the first business day of November (see below).

Personal Use of a Club Membership

Internal Audit and Tax Compliance will calculate the taxable amount associated with an employee’s membership in a social club based on any days of personal use of the club reported by the employee. Under Internal Revenue Service (IRS) regulations, employee membership dues applicable to the personal use of a club represent additional wages subject to withholding for income, social security, and Medicare taxes.

In order to withhold applicable taxes, the University has elected to use an IRS special accounting rule that allows an employer to treat a taxable benefit provided to an employee in November and December to be reported in the following calendar year. Under this rule, the annual period for reporting the use of a membership is November 1 of the prior year through October 31 of the current year.

Applicable income, social security, and Medicare taxes related to any personal use of a club membership will be withheld from the employee’s December paycheck. In such cases, Internal Audit and Tax Compliance will send the employee a notice detailing the calculation of the taxable amount related to his or her personal use of the membership. See Appendix B.

If the reported use of the membership is not primarily for University business purposes, the membership should be cancelled.

Entertainment Expenses

Business entertainment expenses incurred in connection with the use of a social club are reimbursable in accordance with the procedures contained in the Travel and Entertainment Policy.

Sponsored Projects and Other Restricted Funds

Sponsored project funds and other restricted funds may not be used to pay for monthly club dues or initiation fees unless specifically authorized in the contract or grant agreement or other document governing the use of the funds.

VIOLATIONS

A violation of any portion of this Policy may result in disciplinary action, up to an including termination of employment and/or legal action. In addition, an employee may be personally liable for any amount expended in violation of this Policy.