E-1-2 Requests for Exceptions to Business Procedures

I. Purpose

To provide a mechanism for University of Kentucky employees to request exceptions to internal policy and procedures when necessary to achieve institutional objectives in cases where management of exceptions is not addressed elsewhere within specific University policies or regulations.

II. Policy

1. The University’s regulations, policies, procedures, and established practices are based on sound business principles, regulatory requirements, or law and are intended to ensure the integrity of all transactions and the appropriate use of University funds regardless of source.
2. Business Procedure E-1-3 Roles and Responsibilities holds individual administrators responsible for being fully knowledgeable of all University requirements governing transactions and business activities for their respective areas. 
3. When uncertain about the interpretation of a policy or unable to find an applicable policy, such knowledge must be obtained before executing a transaction.
4. Exceptions cannot be granted to federal laws and regulations (including Internal Revenue Service), state laws, contract provisions, or restrictions imposed by external donors and sponsors.
5. Requests for exceptions must be rare and only approved in extenuating circumstances.
6. Requests for exceptions must be requested sufficiently in advance to allow them to be reviewed and approved prior to the purchase, event, or travel taking place.

III. Procedures

1. All requests for exception must be made using the Request for Exception to Business Procedures form and include
   1. The policy reference for which an exception is being requested, documenting a clear understanding of the institutional policy for which the exception is proposed
   2. The traveler’s name, if the exception is related to travel as described in E-5-1 Reimbursement of Travel Expenses
   3. A complete justification for the request, explaining how the University will be impacted by the decision to grant or deny the request
   4. The contact information requested on the form in legible format
   5. Approval of the college business officer or equivalent position and Dean, Director, Provost or Executive Vice President if required by University Financial Services (UFS) 
   6. The procard holder and/or traveler signature in addition to the business officer’s signature if the exception request is related to a procard purchase or travel
2. Send the form and related documentation to UFS@uky.edu.  
3. Department procedures put into place to prevent a recurrence  must be included with the exception request in the following situations
   1. If requested after a violation of policy has already occurred
   2. If the unit failed to process a transaction in a timely manner so that it could be handled through normal processing
   3. Travel
      1. If the exception involves a traveler failing to comply with policy, the traveler must initiate and sign the exception form and indicate an understanding that no further exceptions to travel policy will be granted
      2. The business officer must attach departmental procedures describing how employees, including new university employees, are informed of existing and updated policies and 
      3. Include the Concur travel expense report and all related documents with the request
   4. Any other preventable situation
4. Blanket exceptions
   1. Rare situations may arise in certain units that necessitate a "blanket approval" for specific types of transactions.  
   2. A full explanation and justification for the requested exception must be submitted as part of the request. 
   3. Documented internal procedures and controls must be put in place to support the exception.
   4. Blanket exceptions expire at the end of the fiscal year in which they are granted.
5. Process
   1. Exceptions will be reviewed and the disposition (approved/not approved) will be determined by UFS.
   2. As deemed necessary by UFS, certain exceptions may be forwarded to the Provost, Executive Vice President for Finance and Administration or the Executive Vice President for Health Affairs for their input and concurrence. 
   3. Incomplete requests and those not supported by a bona fide institutional purpose or objective will not be approved. 
   4. UFS will notify the employee in the unit who submitted the exception form regarding the final decision.
   5. Original documentation must be retained in the department. If the exception is approved, the unit must attach the approved copy of the exception request to original document and forward to the appropriate processing department (e.g., Concur expense reports, journal vouchers, and payment request documents).