Business Purpose Guidelines
This page summarizes UNCW's business purpose guidelines for expenses, including what details to include, why documentation matters, who reviews transactions, and examples of acceptable descriptions.
Revised 05/27/2026 | University expenses must serve a clear business purpose that primarily benefits the University, comply with federal and state regulations, and clearly support UNCW's mission. Please apply these guidelines across all financial systems.
The 5 W's - What to Include
|
Prompt |
Include |
|---|---|
|
Who |
Names or roles of involved UNCW employees or individuals |
|
What |
The purchase or service being requested |
|
When |
When goods or services are needed or used |
|
Where |
Where they are used or consumed |
|
Why |
Most important - why the expense is necessary and how it supports UNCW's mission |
Why Clear Documentation Matters
-
Ensures compliance with institutional, legal, tax, and audit requirements
-
Reduces risk of penalties, fines, and reputational harm
-
Supports non-taxable reimbursements under IRS accountable plan rules
-
Creates consistent, defensible financial records
Avoid vague descriptions, acronyms, or jargon. Describe expenses in the context of research and education - UNCW's core mission.
Roles & Responsibilities
|
Preparer / Creator |
Budget Authority / Fund Approver |
Finance (AP, Purchasing, Travel) |
|---|---|---|
|
Collects the 5 W's, verifies allowability, attaches documentation, and submits the transaction correctly. |
Reviews business purpose, funding, compliance, and documentation - then approves or rejects. |
Reviews for policy compliance, allowability, documentation completeness, and provides final approval. |
Examples - Acceptable vs. Unacceptable
|
Unacceptable |
Acceptable - Detailed Business Purpose |
|---|---|
|
Presented at conference |
Dr. Sammy Seahawk traveled to Asheville, NC to present a paper at the Exotic Animal Symposium on 3/1/20XX to share research with colleagues. |
|
Meal with colleagues |
Dean Sammy Seahawk had a business meal on 4/15/20XX with John Q. Doe - guest speaker from ECU and Jane Q. Smith - Asst. Prof., NCSU to discuss [topic] at McAlister's Deli. |
|
External hard drive |
On 3/22/XX, a portable USB flash drive was purchased from Walmart for field research for Dr. Sammy Seahawk when working away from the office. |
|
Lunch with job candidate |
Hiring committee lunch on 3/22/XX with AVP candidate at Baja Grill as part of the search committee's two-day interview process. |
|
Research collaboration |
Dr. Sammy Seahawk traveled through Argentina from April 2nd through April 10th to research rural irrigation systems for the journal publication "Improving Rural Irrigation Systems." |
|
Conference |
Dean Sammy Seahawk attended the International Bio-medical Conference on 4/5/XX in New Orleans, LA to keep up on current trends and for professional development. |
|
Membership |
Membership for the period of 1/1/20XX - 12/31/XX provides certification required as part of Sammy Seahawk's job description. (Attach written supervisor verification.) |