Presentation on theme: "Business & Travel Expense Policy: An Overview. 2 Agenda General Information Roles and Responsibilities Business and Travel Expense Policy Overview Purpose."— Presentation transcript:
Business & Travel Expense Policy: An Overview
2 Agenda General Information Roles and Responsibilities Business and Travel Expense Policy Overview Purpose and Justification Review Business and Travel Expense Reporting Expense Report Preparation
3 Accountable Plan Requirements There must be a business connection and the expense must be reasonable There must be reasonable accounting for the expenses All excess reimbursements must be repaid in a reasonable time
4 Reimbursable/Allowable/Unallowable Business and Travel Expenses Not reimbursable per university policy Reimbursable per university policy Allowable by Federal Government/Sponsor – direct charge or F&A Unallowable by Federal Gov/Sponsor – direct charge or F&A
5 Expenses & Sponsored Grants/Contracts Not all costs that are reimbursable by the university are allowable by the Sponsor May have requirements or restrictions above and beyond the universitys policy Need to consult guidelines and/or contract to ensure compliance Expenses funded by a Sponsored grant or contract Questions related to Federal or Sponsor restrictions should be directed to H&SS Department Business Managers
6 ROLES AND RESPONSIBILITIES
7 Who does this policy apply to? Policy FacultyStaffStudents Visiting Faculty Outside Contractors Recruits Non-Employees (ex. Consultants) Courtesy Appointments
8 Business and Travel Expense Policy Exceptions Designated Departmental Finance Representative – H&SS Department Head A Vice President Provost President Approvers of Exceptions In H&SS, the Department Head is responsible for approving policy exceptions Designated Departmental Finance Representative
9 Defined Roles in Policy Individual incurring expense Accountable for ensuring that business and travel expenses follow University policy Business Expense Preparer Accountable for confirming that individuals business and travel expenses follow University policy Business Expense Approver Accountable for approving and verifying that individuals business and travel expenses follow University policy
10 Individual Incurring Expense Responsible for ensuring that : Expense has a valid business purpose; Proper Oracle account allocation, business justification and supporting documentation (e.g. receipt) has been provided to the business expense preparer; Proper approval for upgrades, exceptions have been obtained and have been provided to the business expense preparer; To the best of their knowledge, the expense is in compliance with the policy and sponsor requirements/federal regulations (if applicable).
11 Business Expense Preparer Responsible for ensuring that : Proper business justification and supporting documentation (e.g. receipt) has been received from the individual requesting reimbursement or incurring the expense; Mileage and per diem calculations are accurate; Proper approval for upgrades, exceptions has been received from the individual requesting reimbursement; There is proper allocation to the Oracle account string.
12 Business Expense Approver Responsible for ensuring that : Expense has a valid business purpose; There is proper supporting documentation (e.g. receipt) for the expense; Mileage and per diem calculations are accurate; There is proper department approval for upgrades, exceptions; There is proper allocation of the Oracle string; To the best of their knowledge, the expense is in compliance with the policy and sponsor requirements/federal regulations (if applicable).
13 BUSINESS AND TRAVEL EXPENSE POLICY OVERVIEW
14 Process Changes Receipt Requirements at H&SS All receipts are required regardless of amount All paper receipts must be submitted to approver Only receipts $75 and greater should be scanned and submitted with PRC report or ER report Approval/Audits Payables will no longer approve employee expense reports prior to payment Final approval of expense reports will be made by report approver (similar to PCard process) Auditing of expenses will be after reimbursement Expense Submission Expenses should be submitted for reimbursement within 30 days of incurring expense Expenses submitted past 90 days of expense date become taxable income to reimbursee
15 Most CMU goods and services expenses are exempt from sales tax as long as: Purchases are made via Purchase Orders or PCard AND Sales tax exemption certificate/number is provided to vendor Standard Exceptions to Sales Tax Exemption: Hotel occupancy, Allegheny County alcohol tax, non-US locations, some states Sales Tax
16 Reimbursable Sales Tax incurred and paid for using personal funds during business travel and meals? In H&SS, sales tax will be reimbursed, but the employee is strongly encouraged to avoid paying sales tax by making purchases through departmental buyers Sales tax on other types of business purchases paid for using personal funds? Paying Sales Tax with Personal Funds
17 Meals between colleagues Primary purpose must be to conduct University business in accordance with an agenda Functions for special events Intent must be to show appreciation, promote morale, recognize achievements Recruiting /Other Business Meals Primary purpose to conduct business May involve prospective employees, visitors, vendors, organizations, groups, etc. Meals – Self/Others/Non-Travel
18 Expenses associated with social events (visitor receptions, alumni reunions, etc.) Considered to be business entertainment, partially social in nature. Necessary to further University interests Expenses should be reasonable Business purpose of entertainment must be clearly documented Requires description of who attended (ex. individual names, name of group) and total number in attendance Unallowable as direct or indirect costs to the university – must be allocated correctly to unallowable expense types or appropriate function
19 H&SS Guidelines for Business Meals The cost of business meals for 2 – 5 people should not exceed $75 per person, including alcohol, tax and tip. For groups over 5 people, the total cost of the meals should not exceed $375. All exceptions should be approved by the department head. When faculty act as the departments representative to recruit new faculty or entertain outside speakers: Dollar limits and number of attendees for graduate student recruiting or entertaining will be determined by the department.
20 Examples of Prohibited PCard Expenses Personal Purchases Purchases for travel or entertainment that occur while traveling more than 60 miles from the Cardholders designated home campus. Cellular devices, voice and data services and home internet charges. Purchases of: gas cylinders hazardous materials live animals warehouse club memberships
21 Contract executed through the University Contracts Office is required and must be completed prior to the purchase. The fully executed contract must be attached to your PRC Verification along with the receipt. Service & Software Purchases <=$1000 Contracts Office Contact Information: or To use PCard when purchasing services and software <=$1,000:
22 Forward terms and conditions to the University Contracts Office for review and approval before making the purchase. The Contracts Office will their response to the terms and conditions. The Contracts Office approval must be attached to your PRC Verification along with the receipt. Internet Purchases: Service & Software <=$1000 Many internet purchased services and software require the purchaser to enter into a contract and accept the suppliers terms and conditions. When presented with these terms and conditions: Note: University Contracts Office approval only extends to the specific transaction and is not a blanket approval for future transactions.
23 Miscellaneous types of expenses Professional Development Expenses are reimbursable if approved by supervisor and content relates to job responsibilities Expenses associated with maintaining a professional certification not directly related to job responsibilities are not reimbursable Memberships, Dues, Subscriptions Individual memberships in business associations are reimbursable if approved by supervisor Fees for magazines, newspapers, newsletters – reimbursable if approved by supervisor Postage, office supplies, copying charges Reimbursable if purchased for business use, but we recommend purchasing these items through the department whenever possible
24 PURPOSE AND JUSTIFICATIONS
25 Purpose and Justification Who was involved in the expense? What does the expense represent? When did the expense occur (if other than the date on the receipt)? Where did the expense occur? Why or How does the expense relate to university business? Purpose & Justification
26 Example - Todays Meeting WhoH&SS Pcard verifiers and expense report preparers WhatRefreshments for 45 attendees Why (How) To provide training on appropriate PCard receipts and purchasing justifications WhenFebruary 25, 2011 WhereBaker Hall A53 Answer The Five Questions For Todays Meeting:
27 Refreshments provided at 2/25/11 training session in BH A53 to H&SS College PCard verifiers and expense report preparers on appropriate receipts and purchasing justifications (45 attendees). Example – Todays Meeting See handout for additional examples Enter justification into Oracle Select Refreshments as Expense Type
28 Who Who was the purchase for? Who are the affected individuals? WhatWhat was purchased? What does the purchase represent? Why (How) Why was the item purchased? Why did the event take place? How does it relate to business? When When did the activity/charge occur? Where Where is the event held? Where does the item reside? Justification Guidelines Answer These Five Questions:
29 Justification Tips Include Quantity for items such as: Food (Meals, Refreshments or Unallowable) 5 or fewer – list names of attendees More than 5 – provide total number of attendees Gifts List number of items purchased Gift forms required if amount exceeds $75 per person or for gift cards of any value Tickets or other items where appropriate ex., 100 Kennywood tickets for resale to students
30 Justification Tips (continued) Breakout alcohol on a separate line and charge to alcohol. If alcohol is not available, use unallowable Include the year when entering a date ex., Jan 3, 2010, 1/3/2010, 1/3/10 For subscriptions/memberships, include the timeframe ex., 6 mo subscription (Jul-Dec 2010) ex., Jan 2010-Dec 2010
31 Justification Tips (continued) 240 characters available to provide detail Read the justification as if you were an outsider to make sure it is clear If exception, note pre-approval in justification and attach/scan confirmation with receipt Include titles of individuals external to CMU or note if the individual is a student
32 Refreshments Unallowable Snacks (cookies and milk) for presentation to students in Prof Clauss Organizational Behavior class by guest speaker from North Pole Univ, Dr. R.R. Reindeer, on Dec 24, 2010 in HbH; 30 attendees. Lunch (pizza, cookies and milk) provided to students in Prof Clauss Organizational Behavior class as an end-of- year celebration on Dec 24, 2010 in A51; 30 attendees. Lunch (pizza, cookies and milk) for presentation to students in Prof Clauss Organizational Behavior class by guest speaker from North Pole Univ, Dr. R.R. Reindeer, on Dec 24, 2010 in A51; 30 attendees. Non-Travel Business Meals ( not allowed for use in calculating Universitys research overhead rate) Justification examples for food expense types: Clarification of Expense Types & Justifications
33 Clarification of Expense Types & Justifications Refreshments Unallowable When light snacks, cookies, non-alcoholic beverages, coffee, and/or pastries are being served in a meeting with a business objective. When expenses relate to alcohol, personal goods and services, and special activities. For example, holiday parties, celebrations, and other social functions with *no* business objective (ie: coffee/water for general use). Note: Alcohol must always be broken out separately. When more food is involved such as an entrée in a meeting with a business objective (ie: lunch meeting food – pizza, boxed lunches, Mad Max, etc.). Non-Travel Business Meals ( not allowed for use in calculating Universitys research overhead rate) When purchasing food, what expense type should be used?
34 Office Supplies Paper Supplies General office supplies excluding paper and computing supplies. Paper supplies used in printers, copiers, fax machines, etc. Computing supplies used in computers and printers including diskettes, tapes, toner, etc. Computing Supplies Other Supplies Supplies that do not meet one of the other defined supply categories. Instructional Supplies Supplies used in classroom instruction, purchased from external suppliers. Technical Supplies Supplies used in lab and research facilities purchased from external suppliers. When purchasing supplies, what expense type should be used? Clarification of Expense Types & Justifications
35 Office Supplies Office supplies (notepads, pens, staples, etc.) for general office use in the Philosophy department. USB-512 Pen Drives for Paul Fischbeck to load course materials and distribute to students in Policy III class in Fall 2009 (in lieu of paper handouts). Computing Supplies Justification examples for supply expense types: Plates, napkins and forks for 1/5/2010 lunch in BPH 223D to plan website revisions for the Psychology department. Other Supplies Instructional Supplies Easel and flip chart to be used for brainstorming activities in Steven Kleppers Economics classes for fall Clarification of Expense Types & Justifications
36 Technical SuppliesCheese purchased to use as stimuli in behavioral decision making study conducted by Carey Morewedge Stopwatches used as incentives for exercise study conducted by Erte Xiao Paper SuppliesPaper for general use in printers at English department offices in Baker Hall. Justification examples for supply expense types (cont.): Clarification of Expense Types & Justifications
37 Justifications - Examples One box of red pens, 3 rolls of bubble wrap, 1 pack of box- sealing tape. One box of red pens, 3 rolls of bubble wrap, 1 pack of box- sealing tape for general use by History department. BAD GOOD Tip: For Office Supplies indicate if for general use or a specific purpose Name tags and permanent marker pens for orientation week. Name tags and markers for identifying students, faculty, and staff during student orientation information sessions held in August 2010.
38 Justifications - Examples Conference registration for Terrance Hayes. Conference registration for Terrance Hayes to attend the Society for Technical Communication annual meeting in Philadelphia, PA from Nov 4-7, 2009 for professional development. BAD GOOD Tip: For Conference Registration be sure to include why the individual is attending the conference (ex. presenting, professional development, networking).
39 Justifications - Examples BAD GOOD Tip: For Unallowable, like all other expense types, be sure to cover the 5 Ws Holiday party for the SDS at the Schenley Park Visitor Center. Holiday party for SDS faculty, staff, and guests at Schenley Park Visitor Center on Dec 5, 2010; 300 attendees.
40 H&SS policy requires that receipts for all transactions be collected. When the new Business & Travel Expense Policy goes into effect, only those $75 and greater must be scanned and attached to the PRCs and ERs. Receipt Requirements
41 Required Documentation Merchant Name Date of Purchase Reference to the method of payment (ex. credit card number) Amount of the purchase Items purchased - itemized What information must be included on a receipt ?
42 Example #1: Receipt-Acceptable or Not? Not Acceptable Missing: What was purchased
43 Ex ample #2: Receipt-Acceptable or Not? Not Acceptable Missing: Merchant, Date, Credit Card Proof
44 Example #3: Receipt-Acceptable or Not? Yes- Acceptable Credit card receipt plus detail receipt with all required information.
45 Example #4: Receipt-Acceptable or Not? Yes-Acceptable All necessary detail on receipt.
46 What if receipt is missing or not legible? Cardholder/ Preparer should contact vendor in an attempt to obtain an appropriate receipt Cardholder/ Preparer should complete the Missing Receipt Form (Finance- Forms page) Preparer should attach/scan completed form to report Note: Frequent use of the Missing Receipt form and/or submitting inadequate receipts will be considered an audit violation and will be reported to the designated departmental finance representative.
47 Missing Receipt/Packing Slip Form Example for a tangible goodExample for a meal
48 PCard Guidelines (Issued January 10, 2011) entservices/policies- procedures/files/psp1001.pdfhttp://www.cmu.edu/finance/procurem entservices/policies- procedures/files/psp1001.pdf All PCard holders and approvers must review Link to new guidelines: or The PCard/Oracle Help Desk pcard/pcard/newsletter.htmlhttp://www.cmu.edu/finance/ap-er- pcard/pcard/newsletter.html PCard Newsletters
49 BUSINESS AND TRAVEL EXPENSE REPORTING
50 If charging to federal funds, must use a US flag carrier to the extent possible (Fly America Act) Who is paying for the airfare and related charges? Class of airfare chosen should be the lowest price coach What kind of airfare can be purchased – coach/business/first class? Yes if the department head approval is documented Is first class and/or business class reimbursable? Considerations when the traveler is flying
51 Considerations when the traveler is flying Related ChargesReimbursable – Yes/No/Departmental Approval Standard Baggage ChargesYes Excess Baggage ChargesDependent on business purpose and departmental approval Upgrade ChargesDependent on business purpose & prior departmental approval Airport ParkingYes – low cost alternatives are recommended Change Fees (earlier/later flights) Dependent on cost/benefit justification and departmental approval
52 Use of a personal auto is reimbursable based on the IRS mileage rate, actual driving distance, and most direct route. IRS mileage rate includes the cost of gas, repairs, and personal auto insurance. Tolls and parking fees are reimbursable while parking tickets, fines, etc. are not. Considerations if travelers drive their own vehicles...
53 Use one of CMUs preferred suppliers when arranging for vehicle rental Standard vehicles are recommended How should the traveler go about renting a vehicle? Yes - if the department head approval is documented Are upgrades reimbursable? No – Traveler should decline rental vehicle insurance Should the traveler purchase rental vehicle insurance when renting in the U.S.? Encouraged to purchase any auto insurance related to liability and physical damage that is required by the specific country Personal effects coverage and personal accident insurance will not be reimbursed Should rental vehicle insurance be purchased when renting outside of the U.S. (U.S. territories/ Puerto Rico/Canada)? Rental Vehicles and Rental Insurance
54 Taxis/Shuttles Taxi and shuttle fares plus tip are reimbursable if expense is incurred due to business purposes Rail The class of rail travel chosen is expected to be the lowest-price coach rail ticket available; premium fares are subject to budget availability and prior approval If traveling via Ground and/or Rail
55 Same general policies apply to foreign travel Countries where travel advisories have been issued can be found on the US State Dept website Check with your business manager on questions/interpretations of restrictions Foreign travel funded by sponsored grant/contract may require approval prior to travel What about Foreign Travel?
56 A fixed amount of daily reimbursement that can be given for lodging, meals and incidental expenses when traveling on business What is a per diem? U.S. locations - General Services Administration (GSA); Intl locations - U.S. State Department Depts. may set per diems at less than the GSA rate, but never greater Where does the per diem amount come from? Only CMU employees In H&SS, only faculty and staff may use per diem; graduate students must submit actual receipts Who can be reimbursed using per diems? Per Diem: What it is, Where it comes from, and Who can use it
57 GSA Per Diem Meal & Incidentals Helpful Tip: Print the information from the GSA site that supports the per diem and scan and attach to the report to assist the approver.
58 Meals for self included as part of the fee of a conference/workshop/hotel reservation, etc.? Expenses for any meal already included in fee should not be submitted for reimbursement Meal per diem must be reduced for the included meals Paying for meals for others while traveling? Requires a valid business justification Names of the meal attendees (if 5 or fewer) must be provided in justification; Travelers name and just the number of attendees if 6 or more If buying meals while traveling...
59 Reimbursable with a valid business purpose: Meals between colleagues Functions for special events/business entertainment Meals associated with recruiting Unallowable Not allowed to be charged to or paid for by Federal funds Alcohol – Reimbursable & Unallowable AND NOTE: Alcohol, and tobacco as well, is neither reimbursable or allowable when charged to a Qatar entity.
60 EXPENSE REPORT PREPARATION
61 Non-Employee Expense Reports Expense reports for non- employees (anyone who does not have a paid appointment in HREM) cannot be submitted via Oracle Expense Reports Non-Employee Expense Report (paper) form must be completed and sent to Travel and Expense Reporting (UTDC) along with the original receipts (>= $75) for processing – regardless of reports dollar amount
62 Form for Non-Employee Expense Reports
63 Example: Error message resulting from attempting to begin an expense report for a non-active employee: courtesy, directory, retired, terminated. Non-Employees NOTE: Questions about an individuals non-active status should be directed to H&SS department business manager.
64 Non-Employee Expense Report What are the requirements of the non-employee ER? contains detailed explanation of the relationship of the individual to the university clearly describes the business purpose of the expenses includes proper supporting documentation is approved by an individual in the department who has appropriate financial oversight Travel and Expense Reporting will audit the expense report (prior to payment) for: valid business purpose accuracy proper supporting documentation including original receipts; additional information may be requested.
65 Non-Employee Expense Report Per diem rates cannot be used for non- employees and graduate students Photocopy all receipts $75 and over and attach the original receipts to the paper report Copies of the receipts will be kept in the department
66 CMU Employee Expense Reports Need only full name to identify Note: If the person is not in your drop down list, please ask your Business Manager Individual must be on preparers list for access Itemized original receipts for all reimbursements including those under $75 must be submitted to the department preparers
69 Purpose Describes the business purpose for the travel undertaken and for which associated expenses reimbursement is being requested Where (destination) When (dates of travel) Why (e.g., conference attendance)
70 Purpose - Examples Purpose: Chicago, IL; Jun 5-6, 2010; To attend National Association of College and University Business Officers (NCUBO) conference on Valuation of Financial Information for professional development. Purpose: Los Angeles, CA: January 4-7, 2011; to collaborate on research with Dr. Daffy Duck of Univ. of CA LA (UCLA)
71 Expense Lines Travelers H&SS form will identify general categories of expense reimbursement (e.g., hotel, airfare) Preparer must align traveler provided information with CMU object codes and/or pick list values (e.g., hotel = lodging) Describe the following: What (a general identification of the type of expense) Justification (details/description)
72 Expense Lines – Justification (details/description) H&SS Travel Expense Reimbursement Request form and – particularly - provided receipts will identify this information. This is an explanation of what the cost is, of why it is appropriate for payment. The following pages contain acceptable receipts and justifications.
73 Lodging – Example: Receipt
74 Lodging – Examples: Justification Justification: Accommodations on 5/1/10 for guest speaker, Stacy Monk, Prof of UCLA, who presented her research on How Public Policy Regulations Affect Violence in the U.S. at the Heinz Speakers Convocation Series held on 5/2/10 in HBH. Justification: Lodging from Oct 11-14, 2009 for Uni of Calif prof Martin Smith to meet with Lowell Taylor at CMU to discuss and Collaborate on research. Justification: Marriot Hotel expenses from June 7-9, 2009, for guest lecturer Aaron Hidges of Intrepidus Group, for the MISM course Hacking Exposed taught in summer 2009.
75 Conference Reg – Example: Receipt
76 Conference Reg – Examples: Justification Justification: Conference Registration for Patty Page (PhD Student) to attend the Institute of Education Sciences (IES) Research Conference annual meeting in Nashville, TN from Sept 3-6, 2010 to present a research paper. Justification: Registration for Samuel Adams to attend the annual conference on Recharge Centers in New York, NY on April 1, 2010 for professional development and networking. Justification: Fee for Susan Timko to attend the annual National Association of College and Employers conference in Orlando, FL, June 1-4, 2009, to establish relationships with potential employers for Heinz College Graduates.
77 Airfare – Southwest - Example: Receipt #1
78 Airfare – Example: Receipt #2
79 Airfare – Examples: Justification Justification: Airfare for Patty Page (PhD Student) to attend the American Psychological Association annual meeting in Las Vegas, NV from January 6-9, 2010 to present a research paper. Justification: Airfare for Samuel Adams to attend the annual conference on Recharge Centers in New York, NY on April 1, 2010 for professional development and networking. Justification: Airfare for Susan Timko to attend the annual National Association of College and Employers conference in Orlando, FL, June 1-4, 2009, to establish relation ships with potential employers for Heinz College Graduates.
80 Meals – Examples: Receipts
81 Meals – Example: Justification Date Restaurant Name Meal (breakfast, lunch, dinner) Justification to include at least the following: Note: Alcohol must be broken out, charged to non-research funds, and charged to the unallowable object code 85916
82 Parking – Examples: Justification Date Parking facility name Justification to include at least the following: Example: Parking at Pittsburgh International Airport while attending the American Psychological Association annual meeting on May 1-3, 2010.
83 Taxi/Shuttle – Example: Justification Example: Taxi from airport to Hotel name in Nashville, TN, for Kevin Jones while attending the American Psychological Association annual meeting on March 1-2, Date Type of receipt (taxi or shuttle) Destination (conference to airport, etc.) Justification should include the following:
84 Prepaid Travel Expenses Conference registration and airfare can be reimbursed before travel occurs. All other expenses must wait until the completion of the travel. Prepaid expenses will be tracked by the department to verify that the travel was completed. If the travel is canceled or postponed, the business manager will discuss the next steps with the traveler. If purchases cannot be applied to a future business purpose, the traveler may be asked to return the reimbursement or accept income tax liability.
85 Standard Approval Path in H&SS When the Reimbursee is: Faculty, Staff, or Graduate Student Department Head Receipts are given to: Preparer in the department Approver is:Business ManagerBusiness Manager who forwards to: Final Approver:ALG Representative (Assistant Dean)
86 Preparers and Approvers Checklist Signed reimbursement form (H&SS Business Expense Reimbursement Request or H&SS Travel Expense Reimbursement Request) is received. Proper documentation and/or signatures for any exceptions is received. All receipts have been submitted by the person requesting reimbursement. The 5 Ws (Who, What, Where, When, Why) have been answered.
87 Checklist (contd.) Correct account strings and PTAs have been charged. For grants, check that the expense is allowable. Scanned receipts include only those that are $75 and over. Receipts are scanned in portrait format if possible and scanned in the order that is on the screen.
88 H&SS Implementation Differences When faculty act as the departments representative to recruit new faculty or entertain outside speakers: The cost for business meals with guests should not exceed $75 per person, including the alcohol, tax and tip. The total cost of the meal for groups larger than 5 is limited to $375, including the alcohol, tax and tip. All exceptions require approval from the Department Head. Dollar limits and number of attendees for graduate student recruiting or entertaining will be determined by the department. Business Meals
89 H&SS Implementation Differences Graduate students must submit receipts to be reimbursed for all expenses. No per diem reimbursements will be made. Graduate Students Itemized original receipts for all reimbursements including those under $75 must be submitted to the department preparers. Receipts
90 Websites for Reference CMU Business and Travel Expense Policy htmlhttp://www.cmu.edu/finance/controller/bte/policy. html New Policy for all Travel and Expense Reimbursements /index.htmlhttp://www.hss.cmu.edu/deans_office/faculty_staff /index.html H&SS Business and Travel Expense Policy U. S. General Services Administration (GSA) for U.S. travel: Foreign Per Diem Rates Per Diem Rates US Dept of State: Travel Warnings & Alerts