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Travel and Other Expense Policies
TABLE OF CONTENTS
I.
GENERAL OVERVIEW
A.
Purpose
The purpose
of these Travel and Other Expense Policies is to provide employees with specific
guidelines covering University travel and other business expenses as well as the
documentation required to substantiate requests for reimbursement of those
expenses.
Because the
revenue the University receives from students and from donors is intended to
support the University’s mission of educating students, we cannot spend
University funds on items that it would be hard to describe as directly related
to that mission. The IRS is increasingly scrutinizing the expenditure policies
and practices of non-profit organizations, particularly higher education.
Items that a corporation may routinely pay for out of its profits are often
inappropriate for a non-profit entity. In the environment of rising tuition
rates, we are conscious that the external public is looking at higher
education’s management of resources.
All funds
received by the University, regardless of source, are University funds and must
be managed in accordance with University policy. The uses of grant funds are
further restricted by applicable laws, the rules and regulations of the granting
entity, and the terms and conditions of the grant.
The Internal
Revenue Service has issued
Publication 463,
Travel, Entertainment, Gift and Car Expenses. In the
regulations, the IRS states that reimbursements for ordinary and necessary
business related expenses are not considered taxable compensation when made
under an accountable plan policy. Ordinary is defined as "common in your field
of trade, business or profession"; and necessary as "helpful and appropriate for
your business".
These
regulations require that the University maintain a policy under which employees
must account for all advances, allowances, and other reimbursements of
expenses. This accounting must include:
§
Sufficient
information to establish the business purpose of the travel, entertainment, or
other expenditure
§
An adequate
record of each expenditure including the amount, date, and place
§
Substantiation of expenditures with original receipts
§
The return of
any unused monies from cash advances
The IRS
states that meals, hotels and entertainment expenses cannot be "lavish or
extravagant". Employees should bear in mind that government agencies and other
observers such as parents and students may perceive certain expenditures as
being either excessive or inappropriate in the context of a regulatory audit, an
IRS audit, or other similar review of University activities. Thus, moderation
and discretion should guide travelers’ decisions to incur expenses on the
University’s behalf.
Employees
must keep track of their expenses and substantiate the expenses by submitting
adequate supporting documentation to the Finance office within a reasonable
period of time. Any amounts paid to an employee that are not accounted for and
substantiated in this way must be included in the employee’s income and are
subject to payroll tax withholding. In addition, if federal grant funding is
used, employees must adhere to all regulations as outlined in the grant.
As a general
guideline, it is expected that travelers and individuals approving travel
vouchers will interpret these policies in a manner that keeps expenses to a
minimum and fairly assigns the costs of business-related activities to the
University. Accordingly, the primary responsibility for adherence to these
policies rests with the departments and supervisors who are authorizing travel
and approving expense reimbursements.
B.
General Policies
§
These
guidelines apply to all University employees traveling on University business.
Faculty travel funded by federal grants must also comply with federal travel
regulations as outlined in their individual grant proposal and in OMB Circular
A-21.
§
The
University will only reimburse expenses incurred in connection with University
business that are appropriately documented by the employee and submitted in a
timely manner. The basic policy governing travel expenses is that an individual
should neither gain nor lose funds in the course of conducting University
business.
§
The intent of
the travel policy is to reimburse employees for out-of-pocket expenses incurred
while on University business that would not otherwise be incurred. Expenses that
are of a personal nature, or expenses that would be incurred whether or not the
employee was on University business, are not eligible for reimbursement.
§
Reimbursement will be on the basis of actual and reasonable
expenses incurred for transportation, meals, lodging and other necessary
business expenses. A per diem travel reimbursement allowance is not
available.
§
Employees are
expected to adhere to the laws in effect for the state or country to which they
are traveling. Fees or fines incurred due to legal infractions (such as parking
fines, speeding tickets, etc.) are the responsibility of the employee. The
University will not reimburse such fees or fines.
§
The
University is not responsible for the loss of personal property while on a
business trip. Any personal property brought on a business trip that is lost or
stolen may be covered by the employee’s homeowners or renters insurance subject
to the limitations of the policy.
§
Discounts are
often available through AAA, AARP, and other personal and professional
organizations. The University cannot pay for personal memberships, but if these
discounts are available to the employee the University encourages the employee
to utilize them and appreciates the effort to minimize travel costs.
§
Employees who
travel frequently should request a University Commercial Card. Requests are
available on the Finance office web page and must be approved by the
department’s Cabinet member.
§
Travel
Expense Reimbursement Forms, Commercial Credit Card statements, and Accounts
Payable Vouchers paid to individuals must be signed by the traveler (if a
University employee) and approved by the traveler’s immediate supervisor.
Fiscal Managers may sign an expense reimbursement in the capacity of the
supervisor if it is not a reimbursement to themselves or a superior.
§
The
University will not provide travel advances, nor make reimbursements for the
travel expenses of spouses who accompany faculty or other employees on
University business.
§
Employees who
choose to incorporate personal travel with business travel must prorate the
costs and provide documentation proving the business portion.
§
Exceptions to
this policy can only be granted when they relate to issues that are not dictated
by IRS regulations. Exceptions must be approved by the supervisor (or their
appropriate designee), the applicable Cabinet member and the Finance office.
II.
SPECIFIC EXPENSE POLICIES
1.
Travel
arrangements
Employees
are free to choose the travel agent they wish to work with or deal directly with
the airlines/hotels or purchase transportation/lodging online. However, the
University recommends the use of Sanditz Travel (Wesleyan x 2187 or see the
Purchasing website for additional information) when booking travel reservations
for air, hotel and car rental for those travelers who do not have a University
Commercial Card and prefer not to use a personal credit card. Sanditz Travel
will bill airfare directly to the department based on the account number
provided and deliver itinerary and tickets directly to the traveler.
It is now
common practice for travel agencies to charge a fee for their service. Employees
should be aware of this fee, as it can be quite high. Employees should weigh the
fee against the expense of doing the travel research on their own and other
benefits provided by the travel agent.
When
attending a conference or professional meeting, employees should check the group
airfare rate negotiated by the event sponsor. Often, these group rates are quite
a bit lower than fares that can be obtained directly from the airlines or
through a local agent.
Discounts
are often available through AAA, AARP, and other personal and professional
organizations. The University cannot pay for personal memberships, but, if these
discounts are available the University encourages the employee to use them and
appreciates the effort to minimize travel costs.
2.
Air Transportation
The
University will reimburse the cost of airplane tickets in
coach class only, unless scheduling or a
medical condition necessitates other arrangements. All efforts should be made
to obtain the “lowest logical airfare”. This is defined as the lowest coach
fare available for flights within three hours before or after the requested
departure or arrival time that does not:
§
Exceed a
2-hour layover time.
§
Increase the
one way elapsed trip time by more than 2 hours.
§
Include more
than one connection in the traveler’s one way route.
In the event
a non-refundable ticket has to be canceled, the airlines will charge a fee and
issue a credit that has to be used by that employee within the year. Penalties
can be quite high. The benefit of locking into a fare should be weighed against
the risk of having to make changes in travel plans before purchasing a ticket.
If there is a health or business reason for a cancellation that incurs a
penalty, the penalty is eligible for reimbursement only once it is documented
and approved by both a Cabinet member and the Finance office.
Most
airlines have instituted and strictly enforce new rules regarding the number,
size and weight of bags allowed for each passenger. Employees should be aware of
these rules and make sure they are in compliance with the rules. Extra baggage
charges and charges for personal items (i.e. golf clubs) will not be reimbursed
by the University.
a.
Business
Travel Insurance
The
University corporate card provides lost luggage insurance up to $3,000.
Additional information on this program can be found in the Visa Lost Luggage
Reimbursement Program.
b. Frequent
Flyer Miles
Employees may
retain frequent flyer miles earned while on University business, however,
employees must always travel on the least expensive airline, not the airline
with which they have a frequent flyer relationship. Excess cost due to the use
of an employee's preferred airline will not be reimbursed. It is inappropriate
for the University to "pay for" or "buy" employee frequent flyer tickets. If an
employee uses a frequent flyer ticket for business travel they cannot be
reimbursed for it in any way.
3.
Saturday Night Stay
When the savings
generated by traveling and staying over a Saturday night exceed the cost of
lodging and meals for a pre- or post-business period, the University encourages
the employee to make the Saturday night stay. Entertainment and other
personal expenses (including health club fees) incurred by the employee during
this period, or at any other time, will not be covered by the University.
Please provide a worksheet showing the airfare with and without the Saturay
night stay and the hotel/meal costs for the additional days to document the
savings.
4.
International Travel
The
University will reimburse for the cost of coach transportation. In the
rare circumstance where there is a health or business reason why an employee
must upgrade to business class, such an upgrade must be documented and approved
by their Cabinet member and must be documented.
Travelers
who are using federal funds from Grants must be aware that there is a statutory
requirement for use of U.S. Flag carriers, whether or not the U.S. carrier is
more expensive than a foreign carrier.
5.
Currency Exchange and ATM fees
The
University will reimburse employees for currency exchange fees. Employees are
encouraged to pay for meals, hotels and purchases on their corporate credit card
as the cards often offer the safest and most economical exchange conversion. The
University discourages employees from carrying large amounts of cash while
traveling. In most cases, using an ATM will provide an excellent exchange rate
and will reduce the amount of cash the employee has on his/her person. ATM fees
for cash withdrawals will be reimbursed. Traveler's checks are a good, safe
method of bringing money on a trip although the fees involved with obtaining
traveler's checks can be high.
6.
Automobile Transportation
The
University has various types of vehicles that may be used by employees for
business travel. Employees should contact Transportation Services to determine
how their business transportation needs can best be met. Depending on the
circumstances employees may either:
·
rent a
University fleet vehicle
·
be driven in
a University vehicle by a driver
·
use a local
limo service
·
rent a
vehicle through a local commercial agency
·
use their own
vehicle
Please see
the
Transportation Services website for details.
The
University will reimburse transportation costs to the extent such costs exceed
the normal daily cost to commute to their office. The University will reimburse
for business miles driven in a personal vehicle at a rate of $0.555 cents per mile
effective July 1, 2011. This rate is updated on a fiscal year basis every July.
a.
Personal
Vehicle
If an
employee uses their personal vehicle for business travel, they can request
mileage reimbursement for the mileage traveled above their normal daily
commute. To obtain mileage reimbursement, a travel expense reimbursement form
must be completed stating the destination and actual mileage traveled. Mileage
reimbursement may never exceed the cost of available alternate transportation,
i.e. the reimbursement for mileage cannot exceed the lowest train or airfare
available. In cases where the employee elects to drive rather than travel by
plane or train, the lower of the available alternatives will be reimbursed to
the employee. Employees cannot request reimbursement
for gas in personal vehicles... the mileage rate includes compensation for gas and depreciation.
It is
important for employees to be aware that the University's commercial automobile
insurance policy provides liability coverage on a secondary basis only when the
employee uses a personal vehicle while traveling on University business. Since
the vehicle owner's insurance policy always will provide the primary liability
coverage, the University's policy will provide coverage only after the limits of
the primary insurance policy are exhausted. The University will not provide
reimbursement for the deductibles associated with the primary insurance under
these circumstances.
The
University's commercial automobile policy cannot provide collision or
comprehensive coverage when an employee's vehicle is used for business
travel. The vehicle owner's policy will provide the only coverage for
these types of claims. The University will not reimburse for these losses.
Any employee
involved in an accident while on University business should contact the
Associate Vice President for Finance,
x2833, as soon as possible.
b.
Rental
Car
Employees
should rent a car only when it is required for daily use at the business
destination or there is no other less expensive means of transportation from the
airport/train station to the business destination. If an employee rents a car
for one week and uses the car partially for business and partially for personal
use, the weekly cost of the car must be prorated. Employees should rent the most
economical vehicle consistent with business needs and travel circumstances. You
are advised to investigate the fuel policy of the rental agency to avoid
excessive refueling charges upon return of the automobile. Employees will be
reimbursed for actual gas charges only and cannot request mileage reimbursement
when traveling in a rental car.
For
out-of-town trips, the University recommends Sanditz Travel for your
reservations to ensure best available rates. For in-town and local trips of
short duration within driving distance of the campus, the University recommends
Enterprise Rent-a-Car (1-800-243-3722). Enterprise has extended preferred rates
to the University for all Connecticut locations.
Automobiles
should be rented using a University Commercial Credit Card. If you expect to be
renting a car either in Middletown or out of town and do not have a corporate
credit card please contact
Tami
Sabo to discuss obtaining a card.
If you rent a
car using a University corporate card you should:
·
Decline the
physical damage waiver (also known as collision damage waiver).
·
Decline the
waiver of liability for damage.
·
Adhere to
ALL conditions of the rental agreement for operating the vehicle.
NOTE: The
vehicle rented needs to be driven either by the cardholder or an "additional
driver" identified/listed on the rental agreement. If this does not happen then
the physical damage coverage by the credit card will be voided.
Additional
corporate card benefits can be found in the Visa Auto Rental Collision Damage
Waiver Program.
If you are
not using a University credit card:
·
Accept the
physical damage waiver only. The University's commercial automobile policy will
provide liability coverage.
The maximum
length of coverage for daily and/or weekly rates and the maximum coverage per
claim should be discussed with each rental agency. All claims must be reported
within 30 days of the accident.
Employees
should be aware that only listed drivers are covered by insurance and there are
additional charges for additional drivers to be eligible to drive rental cars.
Employees must make sure that all potential drivers are listed and be aware that
if those additional drivers are not employees the additional cost is not
reimbursable.
c.
Driver
In some cases
it is most economical to hire a driver to transport an employee to the airport
or train station. The cost of the driver should be weighed against the
mileage/parking costs or the length of time a University vehicle would be tied
up at the airport/station. There are many categories of drivers available.
However, please check with
Transportation Services prior to hiring a driver to see if they can
meet the transportation needs.
If a "limo"
or taxi services is used the University will pay for business purposes only.
Each service has a set fee for transportation to various cities (Albany, Boston,
and NYC). The employee is asked to sign an invoice at the conclusion of the
trip. Employees who choose to leave the driver a tip should so indicate that on
the invoice. Tips should be reasonable (15% - 20%). The transportation
service will bill the employee and an accounts payable voucher must be submitted
to the Finance office.
In many cases
the cost of an individual taking the airport shuttle to their hotel is often far
less than the cost of that individual riding in a cab. When time permits,
individuals should explore utilizing airport/hotel shuttles.
When
airport/hotel shuttles are not available the cost of a taxi will be reimbursed.
Limos and other luxury vehicles will not be covered.
d.
Local
(in-town) Travel
Employees
should limit the business travel related to in-town “errands” as much as
possible. The University will not reimburse for local travel if it is taken in
conjunction with morning or evening commutes or during lunch. If local travel
becomes necessary as determined by the supervisor, the employee can request
reimbursement if the per trip mileage exceeds five miles per day.
B.
Lodging
1.
General
The
University will reimburse the actual cost for average accommodations up to the
single occupancy rate. The IRS states that expenditures for lodging cannot be
lavish or extravagant.
Movies and
other entertainment charged to the room will not be reimbursed and should not be
charged to the University corporate card. Health Club charges, golf and other
personal services will not be reimbursed. Use of the hotel mini-bar is strongly
discouraged due to the high mark up of the items. When traveling with a
companion the employee is responsible for any additional charges above single
occupancy.
The detailed
itemized bill from the hotel must be submitted as supporting documentation. In
addition, the detailed bill for any restaurant expenses charged to the room must
be submitted.
2.
Gratuities for Hosts
When it is
convenient and preferred by the employee, staying with friends can save the
University money. When approved by the Department Head prior to the trip, the
reasonable cost of a gift or a meal in return for such hospitality is
reimbursable. The cost of such gift or meal must be supported by a receipt and
clearly explained on the travel report. The cost of the meal or gift plus any
additional transportation costs must never exceed the cost of standard
accommodations at the business destination, nor can a "cash payment" be made to
the host.
C.
Alcohol, Meals and Entertainment
1.
General
The purpose
of this section is to define: (1) which alcohol, meals, and entertainment
expenses are reimbursable, and (2) which reimbursable expenses may be allowable
as either a direct or indirect expense of federally sponsored projects.
2.
Alcohol
The federal
government has mandated that no alcohol may be charged as either a direct or
indirect expense of federally sponsored projects. This mandate means that under
no circumstances should alcohol be charged directly to a federal grant or
contract account. Furthermore, any alcohol charged to other University accounts
must be clearly segregated in the accounting records so that the charges can be
identified and excluded from the computation of indirect costs. If alcohol
charges conform to the guidelines outlined in the following policy sections, it
may be reimbursable; however, it must always be charged separately to account
code 84535.
3.
Traveler’s meals
The
University will reimburse travelers for the reasonable costs of their own meals
incurred during the time they are away from home that are not otherwise paid for
or provided (as distinguished from entertainment expenses or local business
meals described in sections 4 and 5). The University expects that travelers
will spend no more than $75 for domestic meals and incidentals per day ($100 for
international), including tips, regardless of locations. This is the amount
considered adequate to cover the daily costs of meals and incidentals; it is not
a flat amount for per diem reimbursement.
Only actual
costs for meals are reimbursed; therefore, if the total spent for a day is less
than $75 domestic ($100 international), only the lower, actual costs will be
reimbursed. Note: Receipts are required for any meal expense greater than $20
unless specific department policy is more restrictive. See
Part III
for additional information regarding supporting documentation.
While it is
not encouraged, it is understood that a limited amount of alcohol in connection
with a traveler’s dinner is reimbursable within the allowed daily amount for meals
of $75. Alcoholic beverages consumed by travelers between or after mealtimes
are not considered meals and are not reimbursable, except if they qualify as
necessary entertainment expenses described in
Section
5.
The
University discourages use of the hotel mini-bar due to the high mark up of the
items.
When a meal
is included in the cost of a conference, the University will not reimburse the
employee for the cost of a meal taken during that period (i.e. if employee
chooses not to attend the provided lunch, the University will not pay for an
alternative lunch taken).
When the
traveler is claiming reimbursement for meals purchased for non-Wesleyan
personnel, these meals should be considered “Business meals” rather than “Travel
meals,” and detail must be provided concerning the names of the other diners and
the business purpose for hosting the meal as outlined in the guidelines on
business meals in section 4. If an employee is traveling with other University
employees they are still subject to $75 per day domestic ($100 international)
per individual. If one employee chooses to pay for the group, the reimbursement
request or commercial card documentation must clearly indicate the names of the
employees at the meal.
4.
Business
Meals and Meetings
Unless
otherwise noted, if a business meal or meeting qualifies as an allowable
expenses according to the following sections, Wesleyan will pay up to the following amounts, per person.
Amounts include tax and gratuities:
Dinner:
$50, including alcohol. Lunch: $25.
Breakfast: $20. Note that alcohol is not covered for
breakfast or lunch.
a)
Employee
only business meals
In cases
where University employees meet over a meal when they are not traveling, the
cost of the meal is considered a non-reimbursable personal expense unless: 1)
the primary purpose of the meeting is to conduct business, and 2) there is a
clear and compelling reason to meet outside the office over a meal. Generally,
these requirements are met when it is not possible for one or more employees to
meet during other working hours, and the purpose of the meeting is to conduct
business in accordance with a formal agenda. IRS regulations do not allow for
the reimbursement of meal charges incurred by employees who are not traveling
away from home unless the above criteria are met and there is a clear benefit to
the University. The employee must adequately document these criteria on the
expense reimbursement request or commercial credit card statement (i.e. persons
in attendance, formal agenda, benefit to the University).
It is
permissible to incur expenses chargeable to the University for meals provided as
part of a local conference, seminar, workshop, presentation or other similar
group meeting involving employees when it extends through the usual
mealtime(s). Such meals must be reasonable in relation to the nature and
purpose of the meeting.
b)
Occasional Employee Banquets and Functions
Occasional –
generally, annual or semi-annual – functions for employees are considered
reimbursable business expenses when the expenditure is not lavish or excessive
and is intended to serve as a token of appreciation that primarily promotes
employee relations, or that recognizes individual or group achievements, such as
employee banquets, retirement parties, etc. Such parties must be
pre-approved by a Cabinet Officer and are not to exceed $10 per Wesleyan
employee. Occasions such as
holiday parties or those that celebrate births, marriages, etc. or small in-office functions with
purchased food or beverages are generally paid for by the employees involved.
When hosting these types of events, please be conscious of the potential
external scrutiny of the University’s expenditures in support of its primary
mission of educating students.
c)
Recruiting
and other business meals
Expenses for
dining involving non-University personnel are reimbursable when the purpose of
the meeting is to conduct University business and when it is necessary or
desirable to have the meeting in conjunction with, or during, a meal. Expenses
for such meals should be kept at a reasonable level. The typical business meal
might involve interviews of prospective employees, discussions with vendors,
consultants, or other persons with whom the University does business, or
meetings of organizations and groups at which agenda items pertinent to
University business are covered. Inclusion of spouses or other individuals who
are not directly involved in conducting University business or consumption of
alcohol are general indications that the occasion is not a business meal, but an
entertainment function (see Section 5).
d)
Alcohol
in conjunction with business meals
While not
encouraged, alcohol is reimbursable as a business expense (as distinguished from
an entertainment expense described in Section 5) when served at University
functions primarily intended to promote employee relations. Such functions
would include faculty receptions, and the like. When alcohol
has been deemed a legitimate business expense, it must be separately charged to
object code 84535.
e)
Illustrative examples of business meals
§
The
University invites a renowned scientist to deliver a paper. The sponsoring
department provides coffee and pastries during a break before a related
question-and-answer session. The cost of the refreshments is an appropriate
reimbursable expense.
§
The senior officers organize a retreat to discuss the
University’s three-year financial plan. There is a continental breakfast
and lunch. The purpose of the meeting is to conduct business and food and
beverages are served throughout the day. The costs of this function are
appropriate reimbursable expenses as a business meal.
§
The President
holds a reception and dinner to welcome new faculty. The cost would be
considered a reimbursable business expense; however any alcohol must be
segregated and charged to account code 84535. The same would be true for retirement parties and award banquets. Segregation of
non-essential amenities is mandated by Federal Regulation for Indirect Cost
Reimbursement.
§
University
staff eat a meal with colleagues from peer institutions to exchange ideas and
collaborate on a consortia initiative. This is an appropriate business meal
expense provided that it is not social in nature and the primary purpose was to
conduct business according to a clearly defined agenda.
f)
Illustrative example of a meal which is not a business meal
§
Two
University employees decide to get together to discuss business over lunch at
the Inn at Middletown. The cost of lunch is a personal expense. The IRS
exception to this provides that only if it was necessary to meet to address
specific issues and they were not able to arrange a meeting in the office would
the expense be reimbursable.
5.
Business
Entertainment
a)
What is
business entertainment?
Meals and
functions are considered entertainment if they are intended to provide
hospitality to non-University employees which, although partially social in
nature, are deemed necessary and customary in furthering the University’s
business interests.
Examples of
business entertainment include:
§
Receptions
for University guests and visitors;
§
Alumni
reunions or similar alumni functions;
§
Entertaining
donors or prospective donors; and,
§
Welcoming
receptions for parents and students.
Entertainment
expenses should be reasonable in relation to the nature of the function and the
resulting business benefit expected to be derived from the expenditures. IRS
regulations require that these expenses not be lavish or excessive. Keep in
mind that this interpretation might be construed differently by the IRS and
other University constituents such as parents and donors than it would be for a
for profit corporation. A description (either a list of names or identification
of the hosted group) and the total number in attendance at an entertainment
function must be indicated on the reimbursement request along with the business
purpose of the entertainment.
b) Alcohol
in conjunction with entertainment
If it is
deemed appropriate to include alcohol at University entertainment functions, it
must be separately charged to account code 84535.
c)
Illustrative examples of business entertainment expenses
§
After a
business meeting, the department holds a reception for a visiting scientist
where beer, wine and hors d’oeuvres are served. This cost is considered
entertainment, and alcohol must be separately charged to account code 84535.
§
University
staff go out to dinner with a potential donor. The dinner would be considered a
reimbursable expense as long as there is a reasonable expectation that the
University will receive benefit from the expense and it is not considered lavish
or excessive by IRS standards.
d)
Illustrative example of an entertainment expense which is not a business
entertainment expense
§
After dinner
some members of the peer group go out to a local nightclub. The costs incurred
for cover charges and/or alcohol is the personal responsibility of the traveler.
6.
Gifts
a)
Meals for Student Workers
While we
understand the desire to show appreciation for student workers,
University funds cannot be used to take work-study or office workers out
for meals or to purchase thank you gifts. It is recommended that
your department take up a collection to take your students(s) out to
lunch or to purchase a gift of appreciation or congratulations.
b)
Department Majors
Gifts for
departmental majors (including those awarded honors or prizes) are
allowable up to $25 and should be educational in nature (e.g., books).
c)
Gifts: Flowers
In the event
of death of a faculty or staff member's immediate family member, the
University allows an amount of $75 for flowers/gift baskets/memorials to
be sent to the employee. Anything above $75 should be covered in
advance by faculty/staff contributions.
d).
Gift Cards
Gift
certificates and gift cards are considered cash equivalents for IRS
purposes: their value constitutes taxable income. We
discourage purchasing gift cards for this reason, but if a gift
certificate is given to an employee (including students) the supervisor
should advise Payroll (payroll@wesleyan.edu)
so that the person's next paycheck will have the income tax for the
value of the gift card deducted from his/her salary.
e)
Charitable and Political Contributions
Charitable
and Political contributions are not allowable expenses. Do not use
university funds for these purposes.
7.
Telephone
a)
General
All business
calls made while away from the office will be reimbursed. Reasonable calls to
the home will also be reimbursed (i.e. one call per day of reasonable length).
Direct long distance calls from the hotel room are extremely expensive and
should be avoided. Employees are encouraged to use a calling card, phone credit
card or cell phone. When an employee uses his/her personal phone calling card an
accounts payable voucher should be submitted with a copy of the bill when
received.
b)
Cell
phones
The Wesleyan University cell phone policy can be found at
8.
Non-reimbursable expenses
The following
items will NOT be reimbursed by the University:
·
Fines for
parking or moving violations
·
Personal
vehicle repairs/routine maintenance or locksmith charges
·
Movies,
health club fees, golf, other personal entertainment
·
Laundry
services (if trip is less than five days)
·
Lost or
stolen personal property (including cash)
·
Costs
incurred at home, such as childcare, pet care or lawn/home maintenance
·
Personal
expenses such as haircut, toiletries, clothing, etc.
·
Costs
incurred due to unreasonable failures to cancel transportation or hotel
reservations
·
Companion
expenses (including travel, meals and additional driver costs on rental cars)
·
Life, flight
or baggage insurance
·
Excess
baggage charges for personal items (i.e. golf clubs, skis)
·
Unnecessarily
excessive costs (i.e. very expensive restaurants or exclusive hotels) not
warranted by the circumstances. The IRS states that expenditures for
meals/lodging cannot be lavish or extravagant.
·
Charitable or
political contributions
This list is
not meant to be all-inclusive. Other items may be deemed non-reimbursable upon
review.
III. PAYMENT AND REIMBURSEMENT OF EXPENSES
In general,
the University discourages employees from carrying large amounts of cash. The
University participates in a commercial credit card program to provide a means
of charging business expenses. In the case where cash is required, employees can
either use personal funds and be reimbursed, use petty cash, or request a cash
advance. Please see separate policies related to
Travel
Advances and
University Commercial Cards.
If the travel
destination does not accept credit cards or the employee will not have access to
an ATM, the University encourages employees to purchase traveler's checks. The
fees to purchase traveler's checks are reimbursable. Discounts may also be
available through AAA, credit union, or other personal or professional
organizations.
If another
organization pays for the expenses and invoices the University for payment, it
is requested using an accounts payable voucher and is subject to University
policy. All payments to individuals related to travel, even if the individual
is not a University employee (i.e. recruitment), must be requested on a travel
expense form.
The following
are examples of payments and the required form:
A.
CORPORATE CREDIT CARD PROGRAM (Related to Travel and Entertainment)
The entire
Corporate Card policy can be found at
www.wesleyan.edu/finance/financeDept/pcard/pcardpolandproc. The IRS requires
all travel and business expenses, including those charged to JP Morgan
Credit Cards, to be documented and supported in accordance with an accountable
plan similar to all other travel and business expense reimbursements. Therefore,
all travel and entertainment expenses paid for with the credit card are
subject to the same standards described in this policy for reimbursement. JP
Morgan
corporate cardholders are required to submit their statements to Finance each
month with original receipts. Refer to the JP Morgan PCard policy for
specific timelines and procedures related to the card.
Original
receipts must be submitted with the credit card statement for all expenditures
related to travel that are greater than $20 (unless specific department policy
is more restrictive). Original receipts must explicitly identify the following:
·
Vendor
·
Date
·
Location
·
Amount and
tender of payment
·
Description
of materials, service, meal, entertainment etc.
Credit card slips, statements, photocopies, and faxes are not valid receipts.
If a vendor is unable to provide a valid receipt upon purchase, please have them
complete the
receipt statement
and
attach it to the credit card statement. If a purchase is made online,
acceptable forms of documentation should include an itemization of the charges
and proof of payment.
The IRS
requires that business purpose of all travel and entertainment expenditures be
documented in addition to the submission of receipts. This documentation can be
either on the face of the statement, on each receipt, or using the
sample
form. If the traveler is attending a conference, please provide the
conference itinerary.
When dining
or entertaining, the following documentation is required:
·
List of
attendees (self if alone)
·
Description
of business purpose, topics discussed
·
Description
of meal (i.e. lunch, dinner)
·
Description
of entertainment (i.e. theatre)
When absolutely necessary, advances for the estimated cost of a
business trip are available. Requests should be made between14 and 30 days prior
to the trip and the advance must be cleared within 30 days after returning from
the trip. No new advance will be given until the previous advance is cleared.
The IRS requires that advances must be cleared within a reasonable timeframe or
they are subject to taxation. Please refer to the following website for
additional information on obtaining a University Advance
www.wesleyan.edu/finance/financeDept/advances
To obtain
reimbursement for out of pocket travel expenses (those NOT charged to a
University credit card or directly billed to the University) complete the Travel
Expense Reimbursement Form obtained from the Accounts Payable office. If a
travel advance was used for the travel the form must first go to Tami Sabo in
the Finance office. Travel using grant or other individual research funds must
be forwarded to the Grants office for additional approval.
All travel expense reimbursements must be requested within thirty days from the
date of travel return. Failure to adhere to this timeline could result in
denial of the reimbursement request or taxation of the payment. The University
will not reimburse individuals for any interest charges resulting from failure
to submit expense reports on a timely basis.
In order for the payment to be considered a non-taxable reimbursement, the IRS
requires that all requests for reimbursement of travel and entertainment
expenses be supported by the documentation described below.
Business
purpose of the expense must be provided for each transaction or group of related
transactions. Business purpose can be either written on the travel expense
form, each individual receipt or using the
sample
form. Sufficient evidence of business purpose should include:
·
List of
attendees (self if alone)
·
Description
of business purpose, topics discussed
·
Description
of meal (i.e. lunch, dinner)
·
Description
of entertainment (i.e. theatre)
If
the traveler is attending a conference, the conference itinerary should be
attached.
Original itemized receipts are required for all travel expenses greater than
$20. Important:
This does not apply to reimbursements to non-resident aliens. All
reimbursements to a non-resident alien require a receipt. A valid receipt is
one that indicates at least the following:
·
Vendor
·
Date
·
Location
·
Amount and
tender of payment
·
Description
of materials, service, meal, entertainment etc.
Credit card slips, statements, photocopies, and faxes are not valid receipts.
If a vendor is unable to provide a valid receipt upon purchase, please have them
complete the
receipt statement and attach
it to the travel expense report. If a purchase is made online, acceptable forms
of documentation must include an itemization of the charges and proof of
payment.
Please convert expenditures in a foreign currency, supported by a receipt, at
the exchange rate of the date of the expense report, within ten working days of
return. Use the following web site
www.x-rates.com/calculator.html
exchange rate for that date.
Authorization for missing receipts should be an exception, not a general
practice. If a receipt is missing, alternative documentation will be considered
(i.e. proof of payment, detailed explanation). If the traveler is no longer on
campus, emailed descriptions are acceptable. Employees who frequently fail to
submit receipts are subject to denial of reimbursement for undocumented
expenses.
The University's policy requires supervisor approval for travel and business
expenses, including signature approval on travel expense reports and JP Morgan PCard reconciliations. The traveler and direct supervisor or
department head must sign the travel expense reports. Fiscal Managers may
sign a travel expense reimbursement in the capacity of the supervisor if it is
not a reimbursement to themselves or a superior. |
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