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Financial Policies Training: The First Eight Effective: February 1, 2008 Revised: May 1, 2009, March 1 and May 17, 2010.

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Presentation on theme: "Financial Policies Training: The First Eight Effective: February 1, 2008 Revised: May 1, 2009, March 1 and May 17, 2010."— Presentation transcript:

1 Financial Policies Training: The First Eight Effective: February 1, 2008 Revised: May 1, 2009, March 1 and May 17, 2010

2 Context and Background General Policy Information The First Eight Policies Travel Expenses Meal Expenses Purchasing Card Violations Alcohol Purchases Employee Recruiting Expenses Entertainment Expenses Professional Memberships, Certification, Dues and Subscriptions Employee Reward, Recognition and Acknowledgement Questions and Follow-up Agenda

3 Context and Background Audits Policy Task Force Financial Policy Development Committee Charge: Address audits, review existing policies and procedures, establish standard business practices Goals: Cost containment, efficiency and accountability, compliance with government regulations Internal Audit Findings Ambiguous policies Inappropriate and excessive expenditures Lack of receipts and documentation

4 Objectives Consistent format and language Accessibility to Policies, hot links, forms University-wide Organizational units may institute policies more, but not less, restrictive Training and Resources General Policy Information

5 Policy Format General Policy Information

6 Policies Resources Web site: www.uc.edu/af/policies www.uc.edu/af/policies Policy questions e-mail: policyquestions@uc.edu policyquestions@uc.edu Frequently Asked Questions: www.uc.edu/af/policies/FAQ.html www.uc.edu/af/policies/FAQ.html

7 General Policy Information These PowerPoint slides are intended for training purposes. In the event of any discrepancy or interpretation difference between the policy and the slides, the policy dictates.

8 Policy 2.1.6 Travel Expenses

9 General Travelers and supervisors responsibility to understand policy University may pay for/reimburse reasonable, authorized, and appropriately documented travel expenditures Limits – strictly enforced Travel Expense Report – completed, approved and submitted w/in 30 calendar days of trips conclusion Late submission may result in delay/denial of reimbursement, P-Card violation, disciplinary action Late submission requires justification statement and approval by senior vice president, vice president or dean (Policy Exceptions Form)Policy Exceptions Form

10 Policy 2.1.6 Travel Expenses Authorization Overnight travel Pre- approval using Travel Authorization FormTravel Authorization Form If employee or group travel – supervisors approval If non-employee (e.g., job candidate) – head of org unit approval Same day travel (or within Cincinnati) No pre-approval but Subject to same reimbursement and documentation requirements Travel Expense Report – completed and submitted within 30 calendar days of trips conclusion Must be submitted and approved before payment/reimbursement

11 Policy 2.1.6 Travel Expenses Types of travel Incidental Same day Overnight travel (i.e., requires lodging for overnight stay) Domestic In-state Out-of-state International Group (e.g., team travel, study abroad, field trips) Recruiting/speakers/visitors (i.e., non-university individuals) Spouse/family (related to employment recruitment)

12 Policy 2.1.6 Travel Expenses International travel General Umbrella policy under development; meanwhile use this one Where there is a U. S. State Department Travel Warning, university recommends against but doesnt prohibitU. S. State Department Travel Warning SEEK GUIDANCE from UC International (556-4402) Pre-approval using Travel Authorization FormTravel Authorization Form Travel Expense Report – completed, approved and submitted within 30 calendar days of trips conclusion

13 Policy 2.1.6 Travel Expenses International travel (cont.) Carriers Lowest available coach/economy consistent with scheduling First or business class only if the following three conditions are met Medical condition (indicated by physician) Documented & approved by University Health Services Pre-approved by travelers supervisor (Policy Pre-Approval Form)Policy Pre-Approval Form (new) Frequent flier miles can be used to upgrade overseas flights Contact grants administrator for guidelines and restrictions for travel on sponsored projects For certain grants – must use U.S. Flag air carrier; check with the grant administrator Lodging – reasonable and documented

14 Policy 2.1.6 Travel Expenses International travel (cont.) Meals Current federal per diem rate for the foreign cityfederal per diem rate for the foreign city Need not be pro-rated Car rental Purchase all local, statutory, and optional insurance coverages Documentation required for reimbursement Ground Transportation Examples: shuttle (airport/hotel), bus, taxi, tram, train, parking Use care to obtain lowest cost Obtain original receipts if possible Currency UC employees Use rate of exchange at the time of departure from foreign country for non- credit card expendituresrate of exchange Indicate exchange rate on Travel Expense Report International residents may be paid in the currency of their origin country

15 Policy 2.1.6 Travel Expenses Domestic travel General Transportation mode – safe, cost-effective, efficient Make arrangements early (ideally 30 days in advance) Modes of transportation Common carrier Privately-owned aircraft Charter flight Personally-owned vehicle University vehicle Rental vehicle Ground transportation

16 Policy 2.1.6 Travel Expenses Domestic travel - modes of transportation Common carrier Lowest available coach/economy consistent with scheduling First or business class only if the following three conditions are met Medical condition (indicated by physician) Documented & approved by University Health Services Pre-approved by travelers supervisor (Policy Pre-Approval Form)Policy Pre-Approval Form) Frequent flier miles can be used to upgrade overseas flights Contact grants administrator for guidelines and restrictions for travel on sponsored projects Vouchers/credits for unused tickets Must be used for university business

17 Policy 2.1.6 Travel Expenses Domestic travel - modes of transportation Privately-owned aircraft Pre- approved by supervisor (Policy Pre-Approval Form)Policy Pre-Approval Form Air travel is justified and commercial service not available Between departure/destination points or Cant accommodate necessary time schedules Must meet policys insurance requirements (see Travel Expenses policy for specifics) Reimbursed at commercial coach fare rate from an authorized source (e.g., University Authorized Travel Agency)University Authorized Travel Agency

18 Policy 2.1.6 Travel Expenses Domestic travel - modes of transportation (cont.) Charter flights Pre- approved by president or appropriate senior vice president (Policy Pre-Approval Form)Policy Pre-Approval Form) Provide a list of all travelers Air travel is justified and commercial service not available Between departure/destination points or Cant accommodate necessary time schedules Transportation of non-essential individuals At no charge is prohibited At a fair fee if extra seats

19 Policy 2.1.6 Travel Expenses Domestic travel - modes of transportation (cont.) Personally-owned vehicle Mileage is reimbursed (Variant Expense Rate Table) (Variant Expense Rate Table) Should not exceed cost of least expensive airfare or rental car Consider additional costs when comparing Signature on Travel Authorization Form certifies:Travel Authorization Form Valid US or Canadian drivers license Proper insurance coverage (see Travel Expenses policy for specifics) University vehicles No mileage reimbursement Reimbursed for Incurred service expenses necessary for safe/efficient operation With original, itemized receipts

20 Policy 2.1.6 Travel Expenses Domestic travel - modes of transportation (cont.) Rental vehicle For individual: intermediate size or lowest rate For groups: full size or van; all authorized drivers must be listed Reimbursed Rental charge and actual fuel expenses Submit original itemized receipt with Travel Expense Report Not reimbursed Mileage Insurance or additional coverage; print letter certifying university insurance policy and submit to rental agencyletter certifying university insurance policy Use of rental vehicle to make (not rental while at a destination) the trip: may be used when the overall cost is less than the cost of other means of transportation

21 Policy 2.1.6 Travel Expenses Domestic travel - modes of transportation (cont.) Ground Transportation Examples: shuttle (airport/hotel), bus, taxi, tram, train, parking Use care to obtain lowest cost Obtain original receipts are required if possible

22 Policy 2.1.6 Travel Expenses Lodging Reimbursed if pre-authorized overnight travel Hotels Reasonable, standard business room rate If conference/convention – limited to that rate Ask for discounts Need itemized original receipts Hotel gratuity may be reimbursed if reasonable and approved by supervisor If paid by Purchasing Card Itemize in Travel Expense Report (but indicate P-Card paid) Not reimbursed Keep original itemized receipt with P-Card log

23 Policy 2.1.6 Travel Expenses Lodging (cont.) Private residence Standard university per person per day rate (Variant Expense Rate Table) (Variant Expense Rate Table) Include a statement acknowledging stay in Travel Expense Report Extended stays (i.e., weekend travel to get lower fares) Reimbursed for living expenses on extra days only if end result reduces total travel costs of trip

24 Policy 2.1.6 Travel Expenses Meals Reimbursed if pre-authorized overnight travel Amount Current federal per diem for that cityfederal per diem Gratuities are part of per diem; not > 20% No need to pro-rate If paid by Purchasing Card Itemize in Travel Expense Report (but indicate P-Card paid) Not reimbursed Keep original itemized receipt with P-Card log For alcohol or entertainment expenses – see those policies

25 Policy 2.1.6 Travel Expenses Pre-Payments on Travel What and how? Common carrier transportation AND/OR registration fees Preferred method is of pre-payment is a P-card Alternative method: when using personal funds, traveler can optionally be reimbursed prior to the trip on a Travel Expense Report (A113) if desired Include Travel Authorization Form if overnight Include original receipts The reimbursement prior to the trip must be reflected as a prepayment on the Travel Expense Report submitted following the trip Registration fees (only) Direct payment to the vendor: submit completed registration materials and an A114 to Accounts Payables. Include Travel Authorization Form if overnight travel.

26 Policy 2.1.6 Travel Expenses Purchasing Card Payments (for travel) Need travel P-Card authorization Must adhere to Limits of this policy P-Card limits (For amounts over P-Card limits, use personal card and seek reimbursement on Travel Expense Report) Indicate P-Card amounts on Travel Expense Report; note that P-Card paid (prepaid) Keep original itemized P-Card receipts with P-Card log

27 Policy 2.1.6 Travel Expenses Cash Advances Only for group/team travel; not for individual travel Exceptions: case-by-case basis by Treasurers Office Not to exceed 80% of projected cost How? Responsible UC employee completes and sends Funds Reservation A114 and signed Travel Authorization Form to Accounts PayableTravel Authorization Form Responsible person receives check Any remaining cash advance balance – to be deposited with A-151 immediately upon trip conclusion Within 30 calendar days, submit detailed and approved Travel Expense Report to Accounts Payable

28 Policy 2.1.6 Travel Expenses Other travel related points: Overages Personal funds Know whats allowable Reimbursed after * trip and approved Travel Expense Report submitted Do not use to pay for travel expenses of prospective employees, students, guests * airfare or registration fees may be reimbursed prior to trip with approved TER and Travel Authorization (if needed)

29 Policy 2.1.6 Travel Expenses Other travel related points: Personal convenience expenses Not reimbursed (e.g., haircuts, in-flight movies, hotel pay-per-view, spa services) Laundry/dry cleaning may be reimbursed if reasonable and during a stay of 7 days or more Not reimbursed: passports, immunizations, visas when not required as condition of travel

30 Policy 2.1.6 Travel Expenses Other travel related points: (cont.) Airline club memberships – not paid/reimbursed Cancellations – costs incurred by failure to cancel travel reservations in a timely manner will not be reimbursed Extended stays (i.e., vacation time added to trip) Cost variance must be clearly defined Personal expenses will not be reimbursed Cost cannot exceed what trip would otherwise have cost university University will not prepay personal expenses with intention of being repaid

31 Policy 2.1.6 Travel Expenses Reporting and Documentation Expenses must be fully documented If per diem (or up to per diem) for overnight travel meals is claimed, no receipts required Meals charged to a P-Card require original itemized receipts; (anything charged to a P- Card requires an original itemized receipt) Supervisor must review Travel Expense Reports before approving

32 Policy 2.1.6 Travel Expenses Rules and Steps One (Final)Travel Expense Report (TER) per trip ( m ay be additional TER if reimbursed for common carrier transportation or registration fees prior to trip) If overnight, include Travel Authorization FormTravel Authorization Form Filed within 30 calendar days of trips conclusion After 30 calendar days requires approval from dean, vice president or senior vice president (Policy Exceptions Form)Policy Exceptions Form Personal vehicle mileage - same day/incidental travel Submit approved Travel Expense Report with a Mileage Log; within 30 days of travel; can bundleMileage Log Calculate miles from point of departure to destination (new) Mileage from home to primary work is not reimbursed

33 Q. How is mileage calculated for travel when using one's personal vehicle? A. As part of policy revision effective 05/01/09, mileage for travel will be calculated from the point of departure to the destination point. The policy remains unchanged in the mileage between one's home and one's primary work site will not be reimbursed by the university. Notes: organizational units may have more restrictive policies. An example of how the revision works: Mileage from home to primary work site:12 miles Mileage from home to the airport: 38 miles Mileage from primary work site to airport:16 miles When traveling for university business to the airport from my home, my reimbursable mileage, for this portion of the travel, is 38 miles (not 38 miles minus12 miles). When traveling for university business to the airport from my primary work site, my reimbursable mileage, for this portion of the travel, is 16 miles.

34 Another example of how the revision works: Mileage from home to primary work site: 9 miles Mileage from home to Columbus: 100 miles Mileage from primary work site to Columbus:112 miles When traveling for university business to Columbus from my home, the reimbursable mileage, for this portion of the travel, is 100 miles (not 100 miles minus 9 miles). When traveling for university business to Columbus from my primary work site, the reimbursable mileage, for this portion of the travel, is 112 miles.

35 A third example of how the revision works: Mileage from home to primary work site (main campus): 4 miles Mileage from main campus to RWC: 13 miles Mileage from RWC to home: 8 miles During the work day, I drive from my primary work site on main campus to RWC and back. Reimbursable mileage: 26 miles (13 miles each way). During the work day, I drive from my primary work site on main campus to RWC, and then drive home for the day. Reimbursable mileage: 21 miles (13 miles + 8 miles). I drive to RWC (not my primary work site) from home and remain there all day. I drive home from RWC. Reimbursable mileage: 16 miles (8 miles each way). I drive to RWC (not my primary work site) from home, and then drive to my primary work site on main campus. Reimbursable mileage: 21 miles (8 miles + 13 miles).

36 Policy 2.1.6 Travel Expenses Rules and Steps (cont.) Original Itemized Receipts If not P-Card, must show proof of payment If lost, travelers responsibility to obtain duplicate from vendor and if not available by vendor, traveler to contact their card- issuing bank to provide one Non P-Card receipts substantiate amount due to traveler Purchasing Card Keep original itemized P-Card receipts with P-Card log Itemize on Travel Expense Report but indicate that P-Card paid If no amount is due traveler because ALL expenses are P-Card or prepaid Completed Travel Expense Report should remain with travelers P-Card log, should contain Travel Authorization Form and be approved by the travelers supervisorTravel Authorization Form

37 Policy 2.1.6 Travel Expenses Reward Programs University travelers may accrue frequent flyer miles for university-related travel Per Ohio Ethics Commission Accrued miles must be used for university- related business travel Must be tracked separately

38 Policy 2.1.6 Travel Expenses Suggested GL Accounts 530500 Employee Travel & Training 530501 Employee Training Registration & Fees 530503 Employee In-State Travel 530504 Employee Out-of-State Travel 530505 Employee Foreign Travel 530701 Non-Employee Travel 530702 Team Travel

39 Policy 2.1.6 Travel Expenses Tools to help: The Travelers Checklist provides a one- page summary of things to remember when traveling overnight.Travelers Checklist

40 Policy 2.1.4 Meal Expenses

41 Four categories Overnight Travel Meals Business Meals University Functions Non-university Functions Overnight Travel Meals Meal expenses during a trip that involves lodging for an overnight stay See Travel Expenses PolicyTravel Expenses Policy

42 Policy 2.1.4 Meal Expenses Business Meals Primary purpose: business discussion Must include at least one non-university person whose presence is necessary Properly documented (IRS Rules) Time, date, place (whether on or off campus), attendees, business purpose Must include clear business purpose Covers only those individuals necessary

43 Policy 2.1.4 Meal Expenses Business Meals (cont.) Amounts Current federal per diem rate for that cityfederal per diem rate Gratuities are part of per diem; not > 20% No need to pro-rate If fundraising, see Entertainment Expenses PolicyEntertainment Expenses Policy Sponsored Projects – Contact your grant administrator for guidelines and restrictions

44 Policy 2.1.4 Meal Expenses University Functions Food at seminars, retreats, workshops, orientations, other university functions Properly documented Include description of business purpose If feasible, include list of attendees Other functions where food/beverages may be provided Board meetings Meetings with external stakeholders or speakers Activities with volunteers or where a majority of participants are students

45 Policy 2.1.4 Meal Expenses University Functions (cont.) Are NOT food at gatherings of university employees on a daily or similar ongoing basis May cover food for gatherings of university employees On an occasional basis (i.e., no more than 4 times during a fiscal year per organizational unit) Where the primary purpose of the gathering is a formal business discussion (e.g. a working breakfast/lunch/dinner particularly if personal time is used to conduct university business)

46 Policy 2.1.4 Meal Expenses Non-University Functions Covers lunch/refreshments included in the registration fee for a conference, seminar or other meeting Does not cover NON-overnight program where lunch is on your own Policy exceptions Approval by senior vice president, vice president, dean or their designee (Policy Exceptions Form) (Policy Exceptions Form)

47 Policy 2.1.4 Meal Expenses Procedure Include any required documentation for overnight travel meals with approved Travel Expense Report or P-Card log; no receipts needed if claiming the per diem (or up to it); original itemized receipts required for meals charged to the P-card Include any required documentation and original itemized receipts for non-travel meals with an A- 114 or P-Card log Suggested GL accounts: 5305xx range for overnight travel meals 5304xx range for other meals

48 Policy 2.8.1 Purchasing Card Violations

49 Cardholder Responsibility Use card responsibly Use in manner consistent with universitys mission, ethical practices, laws, and policies Keep current with Purchasing Card Policies and Procedures ManualPurchasing Card Policies and Procedures Manual

50 Policy 2.8.1 Purchasing Card Violations Four Roles Cardholder University employee whose name is on the card Reviews and signs own statement Accountable for all charges with that card May be an Account Allocator for own account but cant be a Card Verifier or Independent Reviewer for own account Account Allocator Person who can allocate charges to a non-default account in UC Flex May be used in conjunction with the other roles

51 Policy 2.8.1 Purchasing Card Violations Four Roles (cont.) Card Verifier Person who verifies validity of cardholders purchases and signs cardholders bank statement attesting to such Independent Reviewer Person within department to sample/test transactions for adequate documentation and appropriateness Cardholder cannot be own Independent Reviewer Independent Reviewer should NOT be a subordinate to cardholder whenever possible

52 Policy 2.8.1 Purchasing Card Violations Types of Violations Abuse, misuse, negligence No personal gain Fraudulent use Deliberate deception for unfair or unlawful gain

53 Policy 2.8.1 Purchasing Card Violations Abuse, Misuse, Negligent Violations Examples Buying from a non-university contracted suppliercontracted supplier Pyramiding - intentionally splitting a purchase to circumvent delegated authority or transaction limits Failing to maintain original receipts/documentation or obtain approvals Other breaches of P-Card policies and procedures (see page 33 of Manual) (see page 33 of Manual)

54 Policy 2.8.1 Purchasing Card Violations Abuse, Misuse, Negligent Violations: Administrative Actions First violation: Warning letter sent By Independent Reviewer (cc: P-Card Administrator) or P- Card Administrator To cardholder and their org unit head Second violation: Warning letter sent By Independent Reviewer (cc: P-Card Administrator) or P- Card Administrator To cardholder and org unit head; copy to Internal Audit Account suspended for 30 days

55 Policy 2.8.1 Purchasing Card Violations Abuse, Misuse, Negligent Violations: Administrative Actions Third violation: Letter sent From Independent Reviewer or P-Card Administrator To cardholder and their organization unit head Copies to Internal Audit, Purchasing, and the appropriate senior administrator (i.e., vice president, dean or higher) Indicating cardholder can no longer participate in P-Card program Card is terminated Reinstatement of a level-three violator may be authorized following a review and approval of appropriate senior vice president or vice president

56 Policy 2.8.1 Purchasing Card Violations Fraudulent Violations Using the card for personal or non-university purchases Administrative and/or Disciplinary Actions Card termination Potential disciplinary action up to and including Employment termination Criminal prosecution Referred to Internal Audit to determine circumstances that warrant discussion with HR, Public Safety, General Counsel

57 Policy 2.1.1 Alcohol Purchases

58 (Note: this policy applies to alcohol purchases; Board Rule 10-17-07 addresses possession, sale and consumption of alcohol on campuses.)Board Rule 10-17-07 Guidelines May be justified for university-related purposes (e.g., business meals or university events) Managed with common sense, due care Org units or college policies may be more restrictive Approval Prior documented approval (signature or direct email) by senior vice president, vice president, dean or their designee (Policy Pre-Approval Form)Policy Pre-Approval Form Amount - reasonable

59 Policy 2.1.1 Alcohol Purchases Funding Charge to discretionary gift funds or expendable endowment funds (that have a broad restriction to be used for the benefit of that area) Do not charge to general, designated or auxiliary funds See Academic Health Center PolicyAcademic Health Center Policy Payment - not allowed on a P-Card Sponsored Projects Not allowed unless specifically part of grant/contract

60 Policy 2.1.1 Alcohol Purchases Exemptions Clinical or research use Culinary (or similar) academic programs Resale by auxiliaries Procedure Submit pre-approval document and original itemized receipts with approved reimbursement/payment paperwork Suggested GL accounts: 530407 (Alcohol (Approved Purchases)) or 531901 (Lab Supplies) Fund must be discretionary fund

61 Policy 2.1.2 Employee Recruiting Expenses

62 Allowable expenses Meals and entertainment Reasonable, prudent, commensurate with position Original itemized receipts required Meal expenses Documentation: time, date, place, business purpose and attendees (IRS Rules) Amount: Current federal per diem rate for that cityfederal per diem rate Gratuities are part of per diem; not > 20% No need to pro-rate

63 Policy 2.1.2 Employee Recruiting Expenses Other related expenses Entertainment (Entertainment Policy)Entertainment Policy Travel related to recruiting (Travel Expenses Policy)Travel Expenses Policy Alcohol (Alcohol Purchases Policy)Alcohol Purchases Policy Recruit accepts offer and moves (Relocation Expenses Policy – coming soon) Payment methods Reimburse university employee Reimburse recruit Direct payment to vendor (including P-Card payments)

64 Policy 2.1.2 Employee Recruiting Expenses High Level Position Recruiting Examples: department chairs, eminent scholars, deans, vice presidents Amount for meals and entertainment Greater than federal per diem IF documented pre-approval by president, senior vice president, vice president, dean (Policy Pre-Approval Form)Policy Pre-Approval Form Not in excess of $200 per person per day

65 Policy 2.1.2 Employee Recruiting Expenses Exceptions to policy: senior vice president, vice president or dean approval (Policy Exceptions Form)Policy Exceptions Form Procedure Include any required documentation and original itemized receipts with approved reimbursement/payment paperwork or P-Card log Suggested GL accounts: 530401 (Refreshments & Meals), 530405 (Entertainment), 535603 (Meal Allowance)

66 Policy 2.1.3 Entertainment Expenses

67 What is entertainment? Purpose of activity, event or meal is Fundraising Promotion of the university Entertainment of university guests by designated university officials (i.e., deans, vice presidents, development officers, senior administrators, other employees asked to serve in a host capacity) Entertainment expenses Reasonable, fiscally prudent, appropriate to the occasion Consistent with the universitys mission Examples: performances, shows, hospitality, food and beverages, flowers, mementos Approval by senior vice president, vice president, dean or their designee

68 Policy 2.1.3 Entertainment Expenses Amounts requiring pre- approval Meal and entertainment expenses in excess of $75 per person per event or with an estimated overall cost exceeding $5,000; pre-approval by senior vice president, vice president, dean or their designee (Policy Pre-Approval Form)Policy Pre-Approval Form (Note: Meal and entertainment expenses in excess of $200 per person per day for employee recruiting are not reimbursed. [Employee Recruiting Policy]) [Employee Recruiting Policy] Sponsored Projects Not allowed unless specifically part of grant/contract

69 Policy 2.1.3 Entertainment Expenses Procedure Include any required documentation and original receipts with approved reimbursement/payment paperwork or P-Card log Suggested GL accounts: 530401 (Refreshments & Meals), 530405 (Entertainment), 530407 (Alcohol (Approved Purchases)) Note: Entertainment expenses while on travel status are not reimbursed through the Travel Expense Report.

70 Policy 2.1.5 Professional Memberships, Certification, Dues, and Subscriptions

71 Allowable expenditures Subscriptions to professional journals/newspapers; (org units are encouraged to share) Certification and licensing fees Membership dues to external professional organizations Not union dues Not university organizations (e.g. UCAAMP, AAPW, UCATS, WIN, CRC) Do NOT include Airline Clubs Must Be appropriate for individuals position/duties Benefit the university Be approved by organizational unit head

72 Policy 2.1.5 Professional Memberships, Certification, Dues, and Subscriptions Private Club Memberships/Dues May be appropriate for key university personnel to advance the institution Require pre- approval by senior vice president, vice president or dean (Policy Pre-Approval Form)Policy Pre-Approval Form Considered taxable income (IRS Rules) Paid directly by individual; reimbursed through payroll Sponsored Projects Generally not allowable (however may be under certain unusual circumstances) Contact your sponsored program officer

73 Policy 2.1.5 Professional Memberships, Certification, Dues, and Subscriptions Procedure Include original itemized receipts with approved reimbursement/payment paperwork or P-Card log Suggested GL accounts: 531100 (Memberships & Dues) or 531101 (Professional Memberships & Dues) 532603 (Licensing/Certification Fees) 531201(Journals/Print Subscriptions) or 531202 (Database Subscriptions)

74 Policy 3.3.1 Employee Reward, Recognition and Acknowledgement

75 Policy addresses Reward or bonus programs Service recognition programs Acknowledgement for special life events Includes Related allowable expenditures IRS implications Recognition of excellent performance/achievement Rewards/bonuses are an important part of total compensation program; they are NOT Supplemental compensation Adjustments to base salary Variable pay (such as commission)

76 Policy 3.3.1 Employee Reward, Recognition and Acknowledgement Definitions Reward/Bonus – cash or non-cash award for significant outstanding performance Defined Reward/Bonus Program – documented program developed, communicated, and implemented in consultation with HR and the president, senior vice president or vice president Units may Develop a Defined Reward/Bonus Program OR Give rewards/bonuses in immediate response to a specific accomplishment Acknowledge employee contributions through service appreciation programs Acknowledge certain employee life events

77 Policy 3.3.1 Employee Reward, Recognition and Acknowledgement Guiding Principles Given for significant outstanding performance that advances unit goals; tied to a specific accomplishment Meaningful to the individual Careful communication and distribution so not viewed as an entitlement Not a substitute for a competitive salary

78 Policy 3.3.1 Employee Reward, Recognition and Acknowledgement

79 Taxable income All cash or cash-equivalents in any amount Non-cash over $100 Applies to all non-cash during a calendar year Examples: spirit wear, fruit basket, flowers Must be reported to Payroll for income reporting and withholding

80 Policy 3.3.1 Employee Reward, Recognition and Acknowledgement Procedure Cash (any amount) Process a one-time UC Flex HR PCR (use BONUS for reason code) Cash equivalent Quarterly report to Payroll Non-cash (up to $100) Non-cash over $100 Quarterly report to Payroll

81 Policy 3.3.1 Employee Reward, Recognition and Acknowledgement Appreciation of Service May occasionally be appropriate Individual or group for extraordinary performance related to current position Thank you when departing the university (e.g., retirement) Work related; not personal events At discretion of senior vice president, vice president or dean Reasonable Same IRS rules on taxable income apply

82 Policy 3.3.1 Employee Reward, Recognition and Acknowledgement Employee Acknowledgements May be appropriate to acknowledge certain life events Examples: birth/adoption of child, death of immediate family member as defined by HR Family and Medical Leave Policy, get-well wishes to an employee Encouraged to collect among colleagues first but org unit may offer support Initiate at the org unit level to avoid duplication Types of acknowledgement Flowers, fruit basket, similar items Contribution to a charitable organization if Requested by family Made to the named, not-for-profit 501 (c) (3) charity with a public service mission Must not exceed $100; not taxable

83 Policy 3.3.1 Employee Reward, Recognition and Acknowledgement Suggested GL Accounts for Other Costs Associated with Employee Recognition and Appreciation 530205 (Plaques/Trophies/Awards) 530207 (Flowers & Cards) 530400 (Meetings/Seminars/Events)

84 Questions?


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