Definition
A trade
out is the exchange of something of value by an individual or
merchant in exchange for something of value provided by the
University. A trade out results in a direct reduction of expenses
or a measurable enhancement in the quality or quantity of the
University program or service. Benefits of the trade out should
never accrue to the sole personal benefit of any individual.
Documentation
Something
of value received by the University should be reported by the
department and recorded as a transaction on the University's
accounting records. The monetary value assigned to these transactions
will be recorded at the lower of the fair market value of the
good or service received by the University or the good or service
provided by the University. These transactions should be recorded
on the University's accounts on a monthly basis. The tax implications
of a trade out will be determined by the Controllers Office.
All trade out agreements should be formalized with signed documents.
Trade out agreements in excess of $1,000 value should be processed
as a procurement transaction through Purchasing Services. Forms
to report these transactions are available in the Controllers
Office.
Trade Out Journal
Entry Form
