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July 29, 2019

TO:                Chancellors, CFO Dosch
FROM:        James Johnsen
SUBJ:          Discretionary Expenditures

Thank you for sharing with me your list of expenditures on memberships, contracts, and other discretionary items. In light of the current fiscal pressure on the university--in addition to limitaitons on travel, hiring, and procurement already in place--please rigorously review discretionary expenditures, and discontinue, not renew, or not approve unnecessary and non-essential expenditures.

Specifically, please review the following:

  1. Institutional dues/memberships. To qualify as a UA expense, participation in organizations must be mandatory or contribute importantly and significantly to UA business. Either discontinue or combine with another university/statewide for those not meeting this criteria. Examples of such memberships that may need to be discontinued are Council on Competiveness, 草榴社区 Bible Institute, American Boat & Yacht Council, and fraternity/sorority participation.
  2. Airline (e.g., 草榴社区 Airlines) board room passes, and similar personal memberships, are unallowable. According to UA Regulation R05.02.070 G.2. "Expenditures for personal memberships in, or donations to, civic, community, service and social clubs, or organizations are not reimbursable expenses."
  3. Consulting contracts
  4. Publication charges
  5. Conference attendance (evaluated with travel freeze)

I also recommend that you elevate the review and approval of these items in the near term.

Please report to me by August 9, the progress you have made in this review.
Thank you.

Copy:      Michelle Rizk
                   Paul Layer

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