Question 1

Can a faculty endowment holder use expendable funds to purchase equipment, supplies, or other tangible items to be housed in common/shared lab or classroom facilities, or to be used by other faculty or students?

Karthik Poobalasubramanian · Accepted Answer

Yes. The faculty holder may purchase anything that meets the purpose(s) of the original endowment, contributes to his/her professional work, and does not violate Regents’ policies regarding supplantation and/or general discretionary use of an academic department or unit.

Question 2

Can an academic administrator (department chair, dean, provost) direct the expenditure of endowment income either in lieu of the faculty holder or when the endowment is vacant?

Karthik Poobalasubramanian · Accepted Answer

No, unless the administrator is also the endowment holder. While academic administrators may discuss or make recommendations of appropriate or strategic uses of endowment income available for expenditure, it is expected that the faculty holder has discretion to make most decisions regarding use of funds. The letter of appointment between the campus and faculty holder should specify any conditions on the expendable income, including the portion to be allocated for salary and any conditions on use of discretionary funds (e.g., share for graduate student support). When an endowment is vacant, funds cannot be expended except for specific, defined purposes in support of the original intent of the endowment and with permission of the original donor and the BoR.

Question 3

Can a faculty endowment holder use expendable funds to purchase equipment, supplies, or other tangible items to be housed in common lab or classroom facilities, or to be used by other faculty or students?

Karthik Poobalasubramanian · Accepted Answer

Yes. The faculty holder may purchase anything that meets the purpose(s) of the original endowment, contributes to his/her professional work, and does not violate Regents’ policies regarding supplantation and/or general discretionary use of an academic department or unit.

Question 4

Can a faculty endowment holder use expendable funds to purchase personal property?

Karthik Poobalasubramanian · Accepted Answer

No. All equipment, supplies, software, and other tangibles must be retained as property of the campus and cannot be considered or used as personal property by the endowment holder. A faculty holder may receive a salary supplement and use that to purchase items for personal use.

Question 5

Can a faculty endowment holder with a nine-month academic appointment use expendable funds for summer salary?

Karthik Poobalasubramanian · Accepted Answer

Salary support through the endowment can only be provided for work performed. An appropriate amount of summer support, not to exceed a 2/9^th share of the nine-month salary, may be provided if the faculty holder is conducting research or other professional activities related to the purpose of the endowment.

Question 6

Can a faculty endowment holder use funds to support professional work not within the scope of the endowment as defined by a donor agreement and/or BoR policies?

Karthik Poobalasubramanian · Accepted Answer

In limited circumstances, with substantial justification, and with donor and BoR permission, a faculty holder may use funds for professional work outside the endowment scope provided such expenditures are allowable (i.e., not supplantation, not for general discretionary use of the department). Such expenditures must be approved by all parties before any action is taken by the endowment holder or academic administration.