According to the Internal Revenue Code, money received by an employee for claims filed under the Flexible Spending Account Program must be used for the purposes authorized.

If money is requested for the purchase of a product that is subsequently returned, or the order for the product is canceled, then the funds received by the employee must be returned to the university to be credited to the employee’s Flexible Spending Account. The funds may be used for other appropriate purposes for that year.

Failure to return funds to the University in these situations violates university policies and IRS regulations. Abuse of the Flexible Spending Account program will result in disciplinary action against the employee including possible termination, reporting of taxable income to the IRS, and/or criminal theft charges.