Business Purpose Guidelines

This website provides guidance to help properly document a Business Purpose to ensure compliance and avoid delays in processing financial transactions.

General Guidelines

The Business Purpose provides the justification for the expense and should be written so that someone reading it at a future time would have sufficient information about the activity (for example, provide context, spell out any acronyms, include full titles and department names) and why it was a permissible UCCS expense.

Basic Elements

The Business Purpose should include five basic elements:

  1. Who is involved in the activity related to the expense?
  2. What activity does the expense represent?
  3. When did the activity occur?
  4. Where did the activity take place?
  5. Why or how does the expense relate to university business?

Below are some questions that should be answered when describing who was involved:

  • Is it an individual?  If so, name the person.
  • Is it a department?  If so, provide the department name.
  • Is it a group (Faculty, Staff, Students, Alumni, and Others)? If so, identify the group.

Below are some examples of questions to be answered when describing what the expense represents:

  • Is it a conference or training? If so, write the full title of the conference/training.
  • Is it a software package?  If so, list the software's name and its use.

When documenting a business purpose, list when and where the activity took place.

Below are some questions that should be thought about when providing how the expense is related to university business:

  • How does UCCS benefit from your attendance at the conference or training?
  • How does UCCS benefit from this activity or purchase?
  • What disciplines use the software in their curriculum?
Example 1

Type of Expense: Business Meal for Job Candidate

Insufficient Business Purpose: Faculty candidate visiting on July 30

Appropriate Business Purpose: Interview dinner on July 30, 20XX, at the Cactus Grill with faculty candidate Mary Smith for job posting #12345A. Attended by candidate Mary Smith, guest of candidate Andy Smith, university hiring committee chair Professor Roses, and department faculty member Dr. Sam Jones. See attached receipt.

Example 2

Type of Expense: Research Supplies

Insufficient Business Purpose: Supplies needed for analysis

Appropriate Business Purpose: Focus 3ml 60mh cartridge purchased for GROUP NAME for analysis on PROJECT NAME occurring 20XX-20XX at SPECIFIC LOCATION. 

Example 3

Type of Expense: Membership Fees

Insufficient Business Purpose: 20XX NACADA membership for EMPLOYEE NAME

Appropriate Business Purpose: 20XX National Academic Advising Association membership for EMPLOYEE NAME to increase his/her/their ability to assist students as an academic advisor.  

Example 4

Type of Expense: Conference

Insufficient Business Purpose: AMA Conference

Appropriate Business Purpose: EMPLOYEE NAME to attend the 20XX American Marketing Association Conference in San Francisco, CA, August 4-6, 20XX, for professional development. Travel Authorization NUMBER.

Additional Resources

CU APS #4015 Propriety of Expenses

View the CU Administrative Policy Statement: Propriety of Expenses.

CU APS #4014 Fiscal Roles and Responsibilities

View the CU Administrative Policy Statement: Fiscal Roles and Responsibilities.

University Fiscal Procedures

View the CU University Fiscal Procedures.

Finance Procedural Statements

Locate links for specific finance procedural statements.

Finance Procedural Statement: Sensitive Expenses

Review the matrix that outlines the allowability of certain sensitive expenses.

Finance System Learning Resources: Journals

Access several resources for journal entries.