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Brandeis University Financial Affairs and Treasury Services Travel and Business Expense Policies Training Seminar July 2006.

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Presentation on theme: "Brandeis University Financial Affairs and Treasury Services Travel and Business Expense Policies Training Seminar July 2006."— Presentation transcript:

1 Brandeis University Financial Affairs and Treasury Services Travel and Business Expense Policies Training Seminar July 2006

2 Introduction Welcome! Presenters Loretta Bemis Sr. Director of Financial Services Ofer Ben-Gai Director of Disbursements Liz Fenick Accounts Payable Manager Housekeeping Policy Advisory Committees Agenda

3 Why did we develop and update policies and forms? What has changed? When is it effective? Who is impacted? What is a business expense? Substantiation and approval What is/is not allowed? Business Expense Policy Travel Policy Process Overview Procurement Methods (please refer to handout) Pre and post departure Acceptable receipts (please refer to handout) Questions 5 minute break Forms (please refer to handouts) Questions

4 Why are we doing this? External Factors I.R.S Accountable Plan rules Reduce number and amount of travel advances Enforce time limits for reconciliation of advances Identify business connection Safeguard university assets Satisfactory audits No cost disallowances NIH Grants Policy Statement Defines domestic and foreign travel Emphasis on organization’s established travel policy Lowest commercial airfare; US flag carrier required for international travel Alcohol not allowed

5 Why are we doing this? Internal factors Existing travel policy needed to be updated Define appropriate business expense What is allowed? Who approves? Keep costs within budgetary limitations Clarity on various procurement methods for travel and business expenses Clarity on record keeping requirements

6 What’s changed? Business Expense Policy (New Policy) Provides guidance on appropriate charges to university funds Consistency and equity across departments. Travel Policy (Updated Policy) Reduce number and amount of travel advances Accounts Payable has primary responsibility for policy enforcement. Meals Per diem or actual with receipts Guidance on maximum daily amount when not using per diem

7 What’s changed (cont.) Travel Policy Department Pcard added as procurement method for transportation costs (e.g. airfare, conference registration) Clarifies receipts Encourages use of University Corporate Card for faculty and staff if take one or more trips per year New Forms Captures business connection/purpose Captures entire trip on one form Approvals; minimum requirement is immediate supervisor Policy compliance; university or departmental

8 When is it effective? July 1, 2006

9 Who is impacted? Faculty Staff Students Invited guests Funding source not a consideration!

10 What is a proper business expense? Includes direct payments to vendors for goods and services, and reimbursements for travel, meals and expenses related to university activities Best interest of university and for official business only Complies with all existing regulations Does not provide or appear to provide any personal benefit to the individual without there being a valid business benefit to the university Within approved budgets Necessary to the accomplishment of university business Reasonable; sufficient to meet but not exceed the identified need Approved by the appropriate individuals

11 Substantiation Departments/schools may have more restrictive policies Substantiation (see handout Acceptable Receipts) Provides evidence that an expense was actually incurred Documents that it is business related

12 Approvals Subordinate may not approve supervisors expense reimbursement Required Individual Request is for official university business and not personal Immediate supervisor Approves propriety and business connection Confirms adherence to the policy Approves missing original receipts Budget Manager Approves budget availability for university funds P.I. for a grant Approves compliance with sponsor requirements Confirms expense is reasonable, allowable and allocable to the project Other approvals Dean or V.P. Approves exceptions to the university policies Financial Affairs (Accounts Payable, SPA) Enforce policies Compliance with external requirements and regulations

13 What is/is not allowed? Business Expense Policy Matrix of Common Types of Business Expenses begins on page 3 Personal and Unallowable Expenses begins on page 8 Meals and Gifts (see page 9) In general, not an appropriate use of university funds Non-work related events require approval of department head Serious illness or death- allowed if: $75 or less Coordinate with Human Resources IRS governs taxability (what is “de minimis” ?) Meals must be for the “convenience of employer” Gifts employees or students Cash, gift certificates, savings bonds etc. of any amount are taxable and should be added to the individual’s W-2 Gifts or awards of tangible personal property with a value greater that $75 are taxable Length of service (5 years or more and less than $400) awards are not taxable when coordinated with Human Resources

14 What is/is not allowed? Travel Policy (see handout Travel Policy at a Glance) Advances Reduce need for and the amount of travel advances (New Form) Considered and exception requiring additional approvals Capped at $50/per day Must be substantiated with 45 days of return from trip or are taxable Long Term Activity Advance (New Form) Useful when standard procurement methods not practical or accepted If use personal credit card or university corporate credit card, will be reimbursed after the trip has taken place Meals Federal per diem for meals and incidental expenses; prorate per IRS OR Actual costs requiring receipts if meal cost $25 or more Expenses of a personal nature not allowed. For example: Laundry charges if less than 5 days Movies Massages Personal toiletries

15 Process Overview Procurement Methods (see handout) Pre-departure Department pays for: Transportation costs Registration fee Hotel guarantee Recommend traveler use Travel and Business Expense Report to record expenses during trip After the trip Traveler prepares and submits Travel and Business Expense Report with 45 days after trip has occurred Acceptable receipts (see handout)

16 Questions? Break for 5 minutes

17 Forms Payment Request Form Travel Advance Request Long Term Activity Advance Petty Cash Travel and Business Expense Report

18 Questions? Loretta Bemis: Sr. Director of Financial Services Ofer Ben-Gai: Director of Disbursements Liz Fenick: Accounts Payable Manager Link to policies and forms

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