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Slide 1 FastFacts Feature Presentation December 17, 2013 To dial in, use this phone number and participant code… Phone number: 888-651-5908 Participant.

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Presentation on theme: "Slide 1 FastFacts Feature Presentation December 17, 2013 To dial in, use this phone number and participant code… Phone number: 888-651-5908 Participant."— Presentation transcript:

1 Slide 1 FastFacts Feature Presentation December 17, 2013 To dial in, use this phone number and participant code… Phone number: 888-651-5908 Participant code: 182500 To participate via VoIP… You must have a sound card You must have headphones or computer speakers © 2013 The Johns Hopkins University. All rights reserved.

2 Slide 2 Today’s Topic We’ll be taking a look at… Travel and Business Expense Policies and Procedures Revision Highlights

3 Slide 3 Today’s Presenters Debbie Hawkes, supervisor for the Travel Unit Accounts Payable Shared Services Eileen Karczmarek, Specialist Accounts Payable Shared Services Dee Church, Senior Accountant JHU Tax Office

4 Slide 4 Session Segments Presentation Debbie, Eileen and Dee will discuss travel and business expense policy changes and highlight accountable plan rules. During their presentation, your phone will be muted. Q&A After the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Debbie, Eileen and Dee will answer as many of your questions as time allows.

5 Slide 5 Contact Us If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: You can also send us an instant message! GoogleTalk – AOL Instant Messenger – HopkinsFastFacts MSN –

6 Slide 6 Survey At the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

7 Slide 7 Travel and Business Expense Policies and Procedures Revision Highlights

8 Slide 8 Agenda Today we will… Highlight improvements – index, etc. Discuss the accountable plan rules Review IRS documentation requirements Discover what the receipt requirements are for business and travel expense reimbursements List unallowable travel and business expenses

9 Slide 9 General University Travel Policies Minimum cost for achieving success Transportation – lowest convenient fares First class air travel not permitted in accordance with federal regulations Other funds – require prior approval (use First Class and Business Class Air Travel Justification and Approval Form – Form B-37

10 Slide 10 Accounts Payable Objectives of Revisions Federal Travel Regulation Requirements IRS documentation requirements for travel and business expense reimbursements IRS Accountable Plan Rules OMB Circular A-21

11 Slide 11 Improvements Index by topic Definitions clarify allowable & reimbursable Clarification regarding Discretionary funds Per Diems Gifts to employees Local Travel Alcoholic Beverages Updated list of non- reimbursable expenses Links to other policy and procedures guides Fly America Rules are covered under Air Travel

12 Slide 12 Overview of Expense Reimbursement Rules The university reimburses employees for business related expenses under an “Accountable Plan” Expenses are accounted for in a reasonable time Expenses are properly documented

13 Slide 13 Overview of Expense Reimbursement Rules Continued It is the employee’s responsibility to provide adequate documentation of the business purpose and submit on time. Both employers and employees benefit when an employee’s business expenses are reimbursed in conformity with an accountable plan.

14 Slide 14 Employee business expenses reimbursed under an accountable plan can be excluded from an employee’s adjusted gross income. This results in a tax-free reimbursement. The reimbursement is exempt from federal, state, and FICA taxes. 14 Overview of Expense Reimbursement Rules Continued

15 Slide 15 Travel & Business Expense Accounting SAP TRIP is the official record for all travel expenses; it’s features support the Accountable Plan Rules requirements. All business expenses for the trip must be included in SAP TRIP, even prepaid expenses.

16 Slide 16 IRS Accountable Plan Rules Expenses must be accounted for in a reasonable period – travel expenses must be entered in SAP TRIP within 90 days from the end date of the trip. For non-travel business expenses – within 90 days from the date the expense was incurred. Proper documentation for reimbursement – all requests for reimbursement must have a business purpose regardless of the amount.

17 Slide 17 IRS Accountable Plan Rules Continued Original receipts for expense items $75 and over. The receipts must be scanned & attached to the expense report.

18 Slide 18 Business Expense Documentation Requirements Documentation of each expense must include: Date and amount Business purpose Location of the activity Names of those who attended – if applicable Business relationship of each person named

19 Slide 19 Business Expense Documentation Requirements Continued Local travel, such as mileage and parking, should be submitted at least monthly, but must be submitted (entered into SAP) within 90 days from the ending date of the trip for the month. Mileage must be broken down by each day of travel and include the origin and destination.

20 Slide 20 Receipt Requirements Hotel – itemized hotel bill with payment method. Car rental – rental agreement receipt showing payment. Gas receipts are allowed for car rentals only. Local personal car usage – mileage as shown in paper or electronic standard highway mileage guides (e.g. map quest)

21 Slide 21 Meals/entertainment – credit card receipt or detailed cash register receipt of $75.00 or greater. Online-transactions – payment method must be indicated. Missing Receipt Affidavit (MRA) – accepted with two authorized signatures and detailed explanation. It is not to be used in place of a receipt. Copies of cancelled checks Receipt Requirements

22 Slide 22 Prepaid Expenses in SAP TRIP Include: Business expenses reimbursed in advance Business expenses paid directly to a vendor ( agency bills the university for airfare) Business expenses paid using the executive card After 90 days from the end of the trip, any business expenses for the trip not submitted would be reported as prepaid – the reimbursement cannot be paid through Accounts Payable.

23 Slide 23 PD by in the expense type description indicates the expense has been prepaid.

24 Slide 24 Non-Reimbursable Expenses Airline club membership dues Airfare purchases with points. Cell phones, smart phones, or similar devices and any accessories Commuting expenses (to and from work) Health insurance Home internet access Personal items purchased while traveling including toiletries, magazines, books, newspapers, etc.

25 Slide 25 Reimbursement for Purchases Purchases should be made under the university’s purchasing policies and procedures so the purchases are paid directly by the university and not reimbursed. For purchases of goods made on behalf of the university, the amount cannot exceed $2,500.00 and the reimbursement will not include any sales tax paid since the university is exempt from sales tax on purchases.

26 Slide 26 Reimbursement of Purchases Faculty, staff and students cannot make purchases of services on behalf of the university. For example, if a person pays for catering, lecture fees, honorarium or other services, these expenses cannot be submitted for reimbursement.

27 Slide 27 Federal Travel Regulations Prior approval No expenses for alcohol Fly America Act Federal Travel Regulations require that U.S. carriers be used for travel that is to be reimbursed through federal grants and contracts. *The Fly America Act Waiver Checklist is required for all travel outside the US on a non-American flag carrier airline regardless of the funding source.

28 Slide 28 Foreign Travel & Domestic Travel Foreign - travel expenses are reimbursed based on either actual expenses or per diem unless the sponsored funding sources requires use of per diem rates. Domestic expenses are reimbursed based on actual expenses incurred unless the sponsored funding source requires the use of per diems. For lodging, only actual lodging (hotel) expenses are reimbursed.

29 Slide 29 Per Diem When meals and incidental per diem is used, the first and last calendar day of travel is calculated at 75%. The US General Services Admin. website M&IE breakdown page has a row showing the calculated amount for the first and last day of travel. M&IE rates include gratuities/tips Per diem rates must be used for the entire trip, not selected days. Refer to OMB Circular A-21 Per diem cannot be used for travel that is less than 12 hours in duration.

30 Slide 30 Key Topics to Review Definitions IRS Accountable Plan Rules Use of Per Diems for Travel Expenses Reimbursement for Purchases Local Travel Taxable Payments Non-reimbursable Expenses Discretionary Funds


32 Slide 32 Summary Timely substantiation of the business purpose with adequate documentation of expense – entered into SAP within 90 days Full reporting of all travel expenses in SAP TRIP including all “prepaid” expenses

33 Slide 33 Federal Regulations A-21 OMB Circular A-21: Cost Principles for Educational Institutions

34 Slide 34 Government Resources Federal Travel Regulations U.S. Department of State Foreign per diem rates Travel warnings 34

35 Slide 35 General University Travel Policies Personal expenses not reimbursable Receipts must be scanned & submitted for expenses greater than $75.00 Proof of payment required

36 Slide 36 Alcohol Unallowable under Federal regulations Reimbursable with appropriate documentation G/L 642001 must be used for alcohol expense

37 Slide 37 Types of Travel Local travel (no overnight stay) Domestic travel Foreign travel Non-employee travel expense 37

38 Slide 38 Local Travel (no overnight stay) Use petty cash or travel expense reimbursement Mileage rate (University Finance Website)University Finance Website Amount is set by IRS Covers all automobile expenses Gas/oil Maintenance Car insurance

39 Slide 39 Foreign Travel Resources Travel registry Export controls Per diem rates D=78 Exchange rates JHU International Travel Clinic

40 Slide 40 Payment Methods 1.JP Morgan travel corporate card 2.Advance payments 40 Objective: Minimize the amount of out- of-pocket expenses incurred by traveler.

41 Slide 41 Advance Payments ExpensePayment Method HotelOnline Payment Request Registration FeesOnline Payment Request or Procurement Card TransportationOnline Payment Request or Trip Reimbursement

42 Slide 42 When will I get my reimbursement? Requests are processed within 10 business days of receipt. Accounts Payable cannot give information on when the check will arrive at its destination. If an employee has direct deposit, it takes three to four business days after the transaction date for the funds to appear in the employee’s account.

43 Slide 43 University Policies JHU Business Travel and Expense Guide edures.html

44 Slide 44 General University Travel Policies May use any travel agency Other JHU Agreements See Purchasing Hot News l

45 Slide 45 Resources Currency conversion rates: Per diem rates: Federal regulations/travel advisories:

46 Slide 46 We’re going to open the phone lines now! There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line. We’ll be answering questions in the order that we receive them. We’ll also be answering the questions that were emailed to us during the presentation. If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants. Q&A

47 Slide 47 Thank You! Thank you for participating! We would love to hear from you. Are there certain topics that you would like us to cover in future FastFacts sessions? Would you like to be a FastFacts presenter? Please email us at:

48 Slide 48 Survey Before we close, please take the time to complete a short survey. Your feedback will help us as we plan future FastFacts sessions. Click this link to access the survey… Thanks again!

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