BUSINESS AND TRAVEL EXPENSE POLICY

Transcription

1 BUSINESS AND TRAVEL EXPENSE POLICY This Plicy replaces previusly separate Plicies entitled Travel Expense and Business Expense 1

2 STEVENS INSTITUTE OF TECHNOLOGY BUSINESS AND TRAVEL EXPENSE POLICY TABLE OF CONTENTS Business and Travel Expense Plicy TABLE OF CONTENTS...2 I. WHO SHOULD READ THIS POLICY?...3 II. DEFINITIONS...4 III. INTRODUCTION...6 IV. OVERVIEW...8 A. PURPOSE...8 B. GENERAL PROVISIONS...8 C. TRAVEL AUTHORIZATION D. REPORTING REQUIREMENTS E. ORGANIZATIONAL RESPONSIBILITY F. SHARING EXPENSES WITH EXTERNAL ORGANIZATIONS G. PURCHASING CARD H. SALES TAX INFORMATION V. SPECIFIC EXPENSE POLICIES A. INSURANCE, TRANSPORTATION, AND PARKING B. LODGING C. Travel per diem Optins Fr Emplyees Only D. ALCOHOL, MEALS, AND ENTERTAINMENT E. BUSINESS ENTERTAINMENT F. OTHER BUSINESS AND TRAVEL EXPENSES G. RELOCATION OF NEW EMPLOYEES VI. PAYMENT OF BUSINESS EXPENSES A. TRAVEL ADVANCES B. EXPENSE DOCUMENTATION Appendix A Cntact List and Useful Web Sites Appendix B - Cmmn Expense and Travel Object Cdes Appendix C Eurp Assistance Appendix D - Laws Applicable t Freign Travel

3 I. WHO SHOULD READ THIS POLICY? Business and Travel Expense Plicy Emplyees wh incur expenses n Stevens behalf, including thrugh use f the university purchasing card and ther direct payment mechanisms Emplyees wh travel n university business Emplyees wh supervise emplyees incurring university business expenses Emplyees wh make travel and ther arrangements r prepare expense transactins fr: University emplyees Prspective university emplyees University visitrs Students wh travel n apprved university business; r University spnsred cnventins, cnferences, r seminars Nn-emplyees such as independent cntractrs and cnsultants wh travel fr universityrelated business r incur expenses fr which the University has agreed t pay. Students travelling n university spnsred activities 3

4 II. DEFINITIONS These definitins apply t these terms as they are used in this Plicy Accuntable Plan An Internal Revenue Service (IRS) term fr a plan under which an emplyer reimburses an emplyee fr expenses and is nt required t reprt the reimbursement as taxable incme t the emplyee. The emplyee must dcument business purpse, substantiate expenses, and return any amunt in excess f substantiated expenses t the emplyer. Away frm Hme Generally, fr purpses f business expenses, hme is defined as the persn s regular place f business, nt his/her persnal residence. Travel expenses qualify as business expenses nly if the traveler is away frm hme at a temprary wrk site. Capital Assets A permanent item with an acquisitin cst f $5000 r mre and a life span f mre than ne year that is held fr purpses f furthering the Institute s missin and nt fr investment r resale Cde Sharing Mechanism by which a U.S.-certified carrier leases space n an aircraft f a freign air carrier. Dmestic Travel Travel amng any f the fifty United States, its pssessins and territries 1. In the case f spnsred prjects, dmestic travel may be defined in the award dcuments. Freign Travel Freign travel is any travel t, between, r within cuntries utside the fifty United States and the U.S. pssessins and territries. Incidentals An Internal Revenue Service (IRS) term fr minr expenses included in the per diem rate fr meals and incidentals (M&I). Minr expenses include tips, mailing expenses, etc. Official Travel Travel n apprved university business between hme (i.e., regular place f business) and anther destinatin. Travel between ne s persnal residence and ne s regular place f business is cmmuting, nt fficial travel. Ordinary, Necessary, and An expense is rdinary if it is nrmal and custmary. An expense is necessary if it is Reasnable Expense apprpriate and helpful t the business. An expense is reasnable if a prudent persn wuld incur the expense in similar circumstances. per diem Dmestic A specific daily rate t reimburse the living expenses f an individual when traveling fr business. The reginal rates are established by the federal gvernment fr travel within any f the cntinental United States. See freign per diems fr Hawaii and Alaska per diem Freign A specific daily rate t reimburse the living expenses f an individual when traveling fr business. The reginal rates are established by the federal gvernment fr travel utside the cntinental United States. Freign per diem rates are used fr Hawaii and Alaska. Persnal Expense An expense fr persnal items such as clthing, luggage, tiletries, newspapers, magazines, mvies, persnal insurance and ther items. Items cnsidered as persnal expense are described thrughut this Plicy; hwever, a listing f items included in this definitin is fund at IV.B. - General Prvisins. Prf f Payment Dcumentatin that reflects date, amunt, and that a payment was made (cash register receipt, credit card receipt, a bank r credit card statement, a cpy f a check, r a cancelled check). Receipt A written acknwledgement that smething has been received; sme receipts d 1 U.S. territries and pssessins include: The Cmmnwealth f Puert Ric, Guam, The U.S. Virgin Islands, American Sama, The Cmmnwealth f the Nrthern Mariana Islands, The Midway Islands, Wake Island, Kingman Reef, Navassa Island, Jhnstn Atll, Palmyra Atll, Baker, Hwland and Jarvis Islands 4

5 Spnsred Prject Substantiated Expenses Sufficient Dcumentary Evidence Temprary Wrk Site Travel Advance Travel Expenses Travel Status U.S. Flag Carrier nt include key infrmatin required by accuntable plan rules such as date, amunt, descriptin f gd r service, etc. A signed award (grant, cntract, r cperative agreement) under which the university agrees t perfrm a certain scpe f wrk fr an external spnsr. An IRS term under the accuntable plan rules that requires dcumentatin as t amunt, time and place and business purpse and evidence that the expenses were incurred r paid. Infrmatin and dcumentatin that, when taken as a whle, substantiates the expense and business purpse under the accuntable plan rules. Sufficient dcumentatin shuld include wh, what, when, where, why, and hw much. An IRS term fr a wrk lcatin away frm an individual s regular wrk site. Travel expenses qualify as business expenses nly if the traveler is away frm hme at a temprary wrk site. Payment made t r n behalf f a traveler prir t travel, and recrded in a receivable accunt in the university s accunting system. Fr tax purpses, the rdinary, necessary, and reasnable expenses f traveling away frm hme t a temprary wrk site. A Stevens emplyee is cnsidered n Travel Status while traveling directly t and returning frm business travel destinatins and while staying in thse destinatins fr business purpses. An emplyee is nt n travel status while engaged in persnal travel in cnjunctin with business travel, whether that persnal travel is befre, during, r after the business travel. An air carrier that hlds a certificate under 49 U.S.C and whse service is authrized either by the carrier s certificate r by exemptin r regulatin. 5

6 III. INTRODUCTION Business and Travel Expense Plicy This dcument is meant t prvide a clear and cnsistent statement f the Stevens Business and Travel Expense Plicy. The Plicy applies t all faculty, staff, students and thers wh incur expenses while engaged in university business r related travel. The Plicy establishes respnsibilities and guidelines fr ensuring that travel and business expenses are valid, necessary, and in cmpliance with IRS, ther gvernment agency regulatins and the plicies f Stevens. It pertains t travel and business expenses supprted by any surce f university funds including, but nt limited t, central apprpriatins, designated funds, restricted gifts and endwment incme, spnsred agreements, student rganizatins and plant funds. Where spnsr, agency, r ther regulatins are mre restrictive than prescribed by this Plicy, the spnsr, agency, r ther regulatins will apply. Stevens management expects its persnnel t exercise gd judgment in cmmitting university funds. The University s principal revenue surces are frm students (tuitin, bard, and rm), frm dnrs (individuals, fundatins, industry, etc.) and frm research spnsrs (federal, state, lcal gvernment agencies, crpratins, and fundatins). Stevens is a nn-prfit institutin and a charitable tax-exempt rganizatin under Sectin 501(c)(3) f the Internal Revenue Cde. Because f this special tax-exempt status, Stevens must ensure that its funds are used t further its charitable purpses and that all expenses are reasnable bth in nature and amunt. Students and their parents, dnrs, gvernmental parties and the public are increasingly sensitive abut apprpriate activity and expenditures n behalf f tax-exempt rganizatins and it is very imprtant that we at Stevens manage ur resurces in an apprpriate manner. It is Stevens plicy t reimburse individuals and pay utside vendrs fr all necessary and apprpriate transprtatin and travel related csts incurred by faculty, staff, students, and thers in cnnectin with apprved university activities. Nn-cmpliance with this Plicy may result in disciplinary actin up t and including terminatin f emplyment. Actins that may be taken include, but are nt limited t, the fllwing: Reductin f purchasing card limits Terminatin f purchasing card privileges temprarily r permanently Remval f travel privileges temprarily r permanently, and/r Terminatin f emplyment While traveling n university business, travelers shuld expect t receive service and accmmdatins that are bth safe and cmfrtable, but nt lavish r extravagant. Individuals shuld nt gain r lse persnal funds as a result f fficial travel. In additin, travel arrangements shuld be well planned as far in advance as pssible s that csts will nt be excessive and will nt exceed budgetary limitatins. Travel arrangement made fr anyne ther than university emplyees, such as guest speakers, cnsultants and prspective emplyees shuld fllw the same plicy that pertains t university emplyees. Cntrl f travel and expense budgets is the respnsibility f each Vice President, Dean and Department Directr, r anyne charged with respnsibility and versight f a university accunt (currently within the Kuali Financial System). Apprval f expense reprts is mre than a frmality; it indicates that expenses submitted have been reviewed and have been fund t cmply with the elements f this Plicy. 6

7 This Plicy will be reviewed peridically t ensure all infrmatin is current and reflects any changes in business prcess r ther changes required by university management, spnsrs, r evlving practice. Please see Appendix A fr a list f university cntacts and helpful websites 7

8 A. PURPOSE IV. OVERVIEW The purpse f this Business and Travel Expense Plicy (Plicy) is t prvide departments, supervisrs, emplyees and nn-emplyees with specific plicies and prcedures regarding Stevens Institute f Technlgy (University) business and travel expenses. Business expenses include thse that are directly paid (e.g., purchasing card) as well as expenses reimbursed t individuals wh incur them n behalf f the University. Business and travel expenses (including amunts allwable as per diems) that are reimbursed fllwing IRS accuntable plan rules are nt subject t incme r emplyment taxes (e.g., federal incme tax withhlding, Scial Security taxes r Medicare taxes). Failure t bserve essential elements f this Plicy culd result in the traveler having reimbursement requests denied r be taxable t the emplyee. Cmmnly, the fllwing are the IRS requirements fr tax-free reimbursements f expenses under an apprpriate accuntable plan: 1. There must be a business cnnectin fr the expense and the expense must be reasnable and necessary. 2. There must be a reasnable accunting fr the expense. 3. All excess reimbursements must be repaid within a reasnable amunt f time. The IRS has issued a number f regulatins which further define these requirements and this Plicy is designed t meet them. B. GENERAL PROVISIONS The basic premise gverning business and travel expenses is that an individual shuld nt gain r lse funds in the curse f cnducting university business. The University pays fr business and travel expenses incurred in cnnectin with university business that are apprpriately dcumented and are in accrdance with IRS accuntable plan rules and Stevens plicies. (See Reprting Requirements) In instances where expenses d nt satisfy the requirements f the IRS accuntable plan rules, the individual may, amng ther remedial actins, be taxed n thse expenses. It is nt pssible t anticipate all f the circumstances that individuals may encunter in cnducting university business; thus the Plicy is nt exhaustive in its cntent. It is expected that thse requesting reimbursement, incurring business r travel expenses and preparing and apprving expenses fr payment will fllw this Plicy in a manner that keeps expenses t a minimum and fairly assigns the csts f business-related activities t the University. Assuming a reasnable level f safety and cnvenience fr the individual, every effrt shuld be made t keep university business and travel expenses t a minimum. All expenses must have a valid business purpse. Generally, the University will nt reimburse r pay fr expenses that are inherently persnal in nature. The fllwing list f persnal expenses serves as a guide and is nt t be cnsidered all-inclusive: Persnal grming services, such as barbers, hairdressers, tiletries, and she shines Child care csts, babysitting, and huse-sitting csts 8

9 Pet care, including fees fr barding pets and ther animal care Any persnal clthing and accessries Prescriptins, ver-the-cunter medicatin, and ther medical expenses Persnal reading material, such as nn-schlarly magazines, bks and newspapers Persnal recreatin r entertainment such as greens fees, sightseeing fares, theater tickets, entry fees, lift tickets, etc. Credit card delinquency fees and finance charges Dues in private clubs Gym and recreatinal fees, including massages, manicures/pedicures and saunas Amenities such as mvies, in-rm bars, saunas, massages, etc. Persnal csts such as life, medical, persnal autmbile lss f persnal effects and baggage insurance Business travel accident insurance beynd the University s plicies Lst baggage Lss r theft f travel advance mney, airline tickets, persnal funds and/r ther persnal prperty Parking tickets, traffic vilatins, aut repairs, r the cst f vehicle twing Membership fees t jin frequent flyer clubs and dues fr memberships in airline clubs Memberships in: athletic clubs, faculty clubs, scial clubs, shpping clubs, business membership, fraternal rders, r ther similar rganizatins Gift cards and gift certificates (regardless f value) Any type f gift with a value in excess f fifty dllars ($50) Unallwable expenses n a Stevens Purchasing Card: EZ Pass charges fr a persnal car Fuel, il r maintenance expenses fr a persnal car Cell phne charges fr a nn-stevens (persnal) cell phne Cmputers Capital assets If an item is nt included in the list shwn abve, that des nt mean it is autmatically allwable. Questins shuld be directed t the Divisin f Finance fr clarificatin. Generally, withut preauthrizatin, Duck Bills debit cards shuld nt be used t pay fr business r travel expense. The University will nt pay fr r reimburse business r travel expenses that have been r will be reimbursed frm any utside surce (ther than expenses fr which the University will be reimbursed under agreements such as grants r spnsred prject agreements). Since departments gvern hw authrizatin fr business and travel expenses is granted, departments may elect t impse additinal restrictins ver expenses beynd thse required by this Plicy fr varius business reasns, including budget availability. A per diem travel allwance fr meals and/r incidentals is available fr travel by university faculty, staff and student emplyees, but is nt permitted fr nn-emplyees. The purpse f this limitatin is t ensure nnemplyees are reimbursed fr all f their apprpriate travel expenses. Perdiem reimbursement is als available fr students traveling fr academic purpses. Generally, the University will nt prvide travel advances, pay directly r make reimbursements fr the travel 9

10 expenses f cmpanins/spuses r nn-emplyees wh accmpany faculty r ther emplyees n university business ( see Cmpanin/Spusal Travel and Business Expenses). CAUTION: Expenses that may be reasnable and necessary business expenses per this Plicy may be unallwable fr Federal, state r ther spnsred reimbursement, either directly r indirectly. Individuals incurring expenses r requesting reimbursement frm agency r ther spnsred funds shuld cnsult agency guidelines and/r the relevant cntract t ensure that all agency r spnsr prcedures and restrictins are fllwed. Any questins abut the interpretatin f agency r spnsr prcedures r restrictins shuld be directed t the Office f Spnsred Research. C. TRAVEL AUTHORIZATION Prir t requesting authrizatin fr a trip, it is imprtant t determine if the ptential benefits f the trip justify its time and expense after cnsidering cst-effective alternatives, such as vide r telecnferencing. Travelers are required t btain authrizatin frm their supervisr prir t making an vernight trip. Use f the travel authrizatin frm r develpment f a department-specific prcess fr authrizing travel is required. Apprval shuld be secured in advance f bking, with exceptins permitted in unusual circumstances. When traveling internatinally, it is the traveler s respnsibility t learn if travel advisries have been issued fr the lcatins f the trip. As part f the trip authrizatin prcess, the traveler will ntify their apprver as t whether travel advisries have been issued. It is the apprver s respnsibility t weigh the benefits and risks f travel t a cuntry under an advisry befre authrizing a trip. If the traveler and apprver wish t prceed with the trip (t a cuntry fr which the State Department has issued a travel advisry), they must cnsult with the Vice President f their area, the Chief Risk Officer and the General Cunsel prir t the cmmencement f the trip. Incurring travel expenses withut prir authrizatin is cnsidered a vilatin f this Plicy and expenses may nt be reimbursed. D. REPORTING REQUIREMENTS IRS accuntable plan rules require the University t maintain a plicy under which emplyees and nnemplyees accunt fr all business and travel expenses, advances, and allwances. The accunting must include: Sufficient infrmatin t establish a valid business purpse f the travel, entertainment, r ther business expense Substantiatin f the business and/r travel expense with required receipts and an adequate recrd f each expense indicating the amunt, date and place fr all expenses f $50 r mre. If alchl is included in the receipt ttal, it must be identified and reprted separately regardless f the amunt. All nn per-diem expenditures charged t federal spnsred prjects (regardless f amunt) must be accmpanied by receipts. (Nte: Departments may request detail fr expenses belw $50 fr additinal departmental internal cntrl purpses.); and The prmpt return f any unused mnies frm travel advances, i.e., within 30 days (See Travel Advances). In rder t avid having the reimbursement be taxable t the individual, expenses shuld be submitted within 30 days f cmpleting the travel r incurring the expense. Generally, expenses submitted fr reimbursement lnger than 90 days after cmpleting the travel r incurring the expense will nt be accepted. Exceptins are cnsidered n a case-by-case basis and require justificatin and apprval frm the signatry/signatries apprpriate fr the traveler. 10

11 Stevens external auditrs, the Department f Internal Audit and the Divisin f Finance perfrm regular audits f travel expenditures t ensure that departments cmply with university plicies and prcedures. 11

12 E. ORGANIZATIONAL RESPONSIBILITY Business and Travel Expense Plicy The primary respnsibility fr cmpliance with this Plicy rests with the individuals requesting reimbursement r incurring the expense and the departments and supervisrs wh are authrizing and apprving these business and travel expenses. Authrized persns apprving business r travel expenses are respnsible fr enfrcing this Plicy and, in s ding, must be satisfied that the expenses are apprpriate, reasnable, and sufficiently described and dcumented in a manner cnsistent with the Plicy. Exceptins t this Plicy may be granted nly by the Vice President fr Finance. The respnsibilities are defined as fllws: Individual Requesting Reimbursement r Incurring the Business Expense The individual requesting reimbursement r incurring the business expense may delegate respnsibility fr preparatin f the expense reprt but the individual retains accuntability. Individuals requesting reimbursement r incurring the business expense are respnsible fr ensuring the fllwing: The expense has a valid business purpse Prper business justificatin and supprting dcumentatin (e.g., receipts) have been btained and/r prvided t the business expense reprt preparer Prper dcumentatin justifying any upgrades has been btained and has been prvided t the business expense preparer A valid university accunt number(s) has been prvided t allcate the expenses T the best f the individual s knwledge, the expense is in cmpliance with this Plicy and if the expense is t be charged t a spnsred award, that the expense is in cmpliance with all spnsr requirements/federal regulatins Business Expense Reprt Preparer This individual is respnsible fr preparing the expense reprt and, by submitting the reprt, is cnfirming the fllwing: Prper business justificatin and supprting dcumentatin (e.g., receipts) have been received frm the individual requesting reimbursement r incurring the business expense Mileage and per diem calculatins are accurate Prper dcumentatin justifying any upgrades has been btained and submitted by the individual requesting reimbursement r incurring the business expense The expense has been prperly allcated t the university accunt number(s) Business Expense Reprt Apprver This individual is respnsible fr apprving the expense transactin and, by apprving, is verifying the fllwing: The expense has a valid business purpse There is prper supprting dcumentatin (e.g., receipts) fr the business expense Mileage and per diem calculatins are accurate There is dcumentatin justifying any upgrades The expense has been prperly allcated t the crrect university accunt number(s) T the best f the apprver s knwledge, the expense cmplies with the Plicy and if the expense is t be charged t a spnsred award, that the expense is in cmpliance with all spnsr requirements/federal regulatins F. SHARING EXPENSES WITH EXTERNAL ORGANIZATIONS Individuals are respnsible fr seeking reimbursement fr expenses payable by external rganizatins. If an individual is taking a trip that will be paid by an external rganizatin, the University will pay nly the agreed 12

13 upn share f the actual expenses necessary fr university business. When an external rganizatin pays fr actual expenses incurred fr ldging r meals, the individual may nt claim meal per diem frm the University. The reimbursement received by the individual frm all surces can never exceed the ttal expenses incurred by the individual. When expenses are being shared with external rganizatins and the expense reprt justificatin field cntains a detailed explanatin f which rganizatin is paying the balance f the expenses, a duplicate cpy f the receipts will suffice fr reimbursement. G. PURCHASING CARD This Plicy applies t all business expenses incurred utilizing the University Purchasing Card. Expenses such as EZ Pass fr a persnal vehicle; fuel, il r maintenance expenses fr a persnal car; and cell phne plans fr a persnal (nn-stevens ) cell phne shuld nt be charged t a Stevens Purchasing Card. Als, the Purchasing Card is nt used t purchase cmputers r capital assets. Cardhlders shuld refer t the Purchasing Card Guidelines included in the Purchasing Manual t familiarize themselves with what is and is nt allwable t be purchased using the Purchasing Card. H. SALES TAX INFORMATION Based n its charitable tax-exempt status, Stevens has been granted an exemptin frm payment f state sales tax n the gds and services it purchases. Payments made thrugh Purchasing r ther Stevens ffices will, as a general matter, be entitled t the sales tax exemptin. At the time f purchase, Stevens may be required t shw its sales tax exemptin certificate. When purchasing gds r services n behalf f Stevens, whether thrugh Purchasing r ther means, check t see yu are nt charged sales tax. If yu have questins abut the applicability f the sales tax exemptin, cntact the Purchasing Department. As a general matter, expenses incurred fr transprtatin (plane, rail, etc.) and htel expenses are nt exempt frm sales tax. Travel expenses incurred by Stevens emplyees fr meals while travelling are als subject t sales tax. Sales tax incurred with persnal funds fr university business travel and fr business meals will be reimbursed. Sales tax incurred with persnal funds fr ther business purchases shuld include a descriptin supprting the business purpse as t why the sales tax was paid and may be reimbursed when the amunt f the sales tax is less than $20. If yu are planning a trip n behalf f a grup, please cntact Purchasing t find ut if the sales tax exemptin may apply t any f yur expenses. In many cuntries utside the U.S., a tax ften referred t as VAT (r value added tax) will be added t purchases, which may be refundable t nn-residents. Yu shuld investigate the pprtunities fr VAT recapture. T btain a cpy f the relevant University s sales tax exemptin certificate r fr additinal infrmatin r questins regarding sales tax, please cntact the Purchasing Department. 13

14 V. SPECIFIC EXPENSE POLICIES Business and Travel Expense Plicy A. INSURANCE, TRANSPORTATION, AND PARKING Business Travel Accident Insurance The University prvides business travel accident prtectin (Eurp Assistance) fr all active full and parttime faculty and staff members n University-apprved and directed business travel. Prir authrizatin f travel is imprtant t supprt claims made under this plicy. Infrmatin abut Eurp Assistance is fund in Appendix C f this Plicy. Specific questins regarding the University s business travel accident insurance cverage shuld be directed t the Office f Human Resurces. Using Preferred Travel Agencies T assist university travelers, the University has entered int agreements with several preferred travel agencies that prvide the University with cmpetitive fares, high-quality service, and cnvenience fr university travelers. These travel agencies are set-up t direct-bill the University fr airfare rather than the individual paying the cst persnally and needing t be reimbursed. Infrmatin abut the travel agencies and the Campus Travel Prtal can be fund at this link: Like all ther business expenses, all travel is subject t institutinal and departmental budgetary availability. Air Transprtatin Federal law (the Fly America Act) states that Federal awardees and thers perfrming Federal gvernment air travel between the United States and a freign cuntry r between freign cuntries shuld generally use United States flag carriers t the maximum extent. The practices specified by the Fly America Act may differ amng Federal agencies. Accrdingly, individuals traveling abrad whse travel will be charged t a Federal grant r cntract shuld cnsult agency guidelines t ensure that all agency prcedures and restrictins are fllwed. Any questins r interpretatin f Federal regulatins shuld be directed t the Office f Spnsred Research. There is a checklist n the Office f Spnsred Research website that assists travelers in determining if the freign travel surced n a federal grant r cntract is exempt frm the Fly America Act. Stevens des nt reimburse business travel expenses using persnal aircraft. Due t the risks invlved and lack f insurance cverage, use f persnal aircraft fr business travel is strngly discuraged. When nt using the University s preferred travel agency, the mst efficient means fr purchasing airfare is t use the university purchasing card. Reimbursement fr airfare purchases made with a persnal credit card shuld be made nly after prf f payment has been submitted with the expense reprt. Specific elements t cnsider when making travel arrangements that invlve airfare: Class - The class f air travel chsen is expected t be the lwest-priced r mst efficient, i.e., nn-stp, cach airfare ticket available. In rare cases, premium (e.g., first class, business class) fares may be an apprpriate business expense using ther than grant r cntract (spnsred) funds and subject t budget availability. 14

15 Situatins in which premium fares may be apprpriate are: Flights exceeding eight (8) cntinuus hurs Flight by a traveler with a medical cnditin. Prper dcumentatin must be secured frm the Office f Human Resurces Fr airline tickets funded by a spnsred grant r cntract, the individual requesting reimbursement shuld cnsult agency guidelines and/r the relevant cntract t ensure that all agency r spnsr prcedures and restrictins are fllwed. Federal regulatins generally prhibit the charging f Business Class r First Class t federal spnsred research prjects unless it is specifically apprved by the spnsr and is dcumented in Ceus (the Office f Spnsred Research database). Any questins r interpretatin f Federal r spnsr restrictins shuld be directed t the Office f Spnsred Accunting. Flights paid fr r charged t spnsred prjects fllw the federal 14-hur rule and the traveler may use ther than cach-class in the fllwing circumstances: The rigin and/r destinatin are utside the cntinental U.S. (OCONUS), and The scheduled flight time, including nn-vernight stpvers and change f plans, is in excess f 14 hurs, and Yu are required t reprt t duty the fllwing day r sner. (FTR ) Frequent Flyer Plans - Travelers may persnally retain frequent flyer plan rewards r ther bnuses that may accrue frm business travel. Hwever, in n case may the traveler chse a reservatin at a higher cst in rder t accumulate additinal plan rewards. The University will nt purchase frequent flyer miles frm travelers r reimburse them fr tickets purchased with frequent flyer miles. Any membership fees t jin frequent flyer clubs are cnsidered persnal expenses and will nt be reimbursed by the University. Airprt Airline Club Memberships - Dues fr memberships in airline clubs are persnal expenses and are nt reimbursable. Baggage - Charges by airlines fr checked baggage when traveling n university business are a reimbursable business expense. Excess baggage expenses are reimbursable in any f the fllwing circumstances: Traveler is transprting university materials Department has apprved f the charge Upgrades - Prper dcumentatin justifying any upgrades must be btained and submitted by the individual requesting reimbursement r incurring the business expense. Additinal expense may nt be charged t a spnsred prject unless specifically apprved by the spnsr and dcumented in Ceus. Parking - Airprt r ther business parking will be reimbursed, but travelers shuld use lngterm, lwer-cst parking lts when available, unless there is a credible reasn fr nt ding s. If public transprtatin r a cab/car service taken t and frm the airprt r ther business lcatin wuld result in a lwer cst r a safer mde f transprtatin, the traveler is encuraged t take advantage f these savings/safety measures. Early Departure r Late Return - Additinal csts incurred when traveler departs earlier than required fr business r returns after required fr business are nt reimbursable unless the 15

16 savings in airfare is equal t r greater than the ttal csts fr ldging, meals, etc. incurred during the additinal days f travel. It is apprpriate t cnsider ther relevant csts and factrs against the savings in airfare, including the inherent cst f being ut f the ffice fr a lnger perid f time Lst Baggage/Items - The University des nt maintain any lst baggage/items insurance cverage fr any lss f persnal belngings f its emplyees while n university business travel. University emplyees are encuraged t make their wn arrangement fr this type f insurance cverage either thrugh their persnal hmewners/renters insurance cmpany r with their travel agent at the time f travel. Generally, the University will nt reimburse fr this type f insurance. Autmbile Travel When driving n university business, drivers must adhere t and fllw all laws and regulatins f the state r cuntry in which they are driving. Prir t the first time emplyees use their persnal car r rent a car t travel n University business, they must cmplete the Vehicle Use Acknwledgement and Agreement and return it t the Chief Risk and Cmpliance Officer. The agreement will apply t all subsequent trips and nly needs t be cmpleted nce. Persnal Autmbiles - When the use f a persnal autmbile is necessary fr university business, reimbursement fr its use will be made at the mileage rate published by IRS and GSA/FTRs, r in accrdance with ther federal regulatins. In cases where an emplyee als receives an aut allwance, the reimbursement rate will be the IRS rate fr fuel nly. When driving n university business and using a persnal vehicle, a traveler must carry a valid driver s license, vehicle registratin, and prf f insurance. If a traveler uses his/her wn vehicle, it is the traveler s respnsibility t carry adequate persnal insurance cverage fr themselves, the vehicle, any passengers and any ther csts assciated with an accident. Travelers shuld review their persnal insurance cverage befre making the decisin t use their persnal vehicle fr business purpses. Travelers shuld cnsult with his/her insurance agent t determine apprpriate cverage. If an accident des ccur, the traveler shuld immediately cntact the fllwing individuals r authrities: Persnal insurance agent r cmpany (because the university des nt have primary insurance cverage n liability claims) Lcal authrities, as required The traveler s supervisr Chief Risk and Cmpliance Officer (by the next business day) It is the traveler s respnsibility t ensure they have apprpriate cverage. The traveler s insurance is the primary insurance cverage when using a persnal vehicle fr university business. It is the respnsibility f the traveler t ensure that the prper mileage rate is being used and the distance is based upn actual driving distance using the mst direct rute. The mileage reimbursement rate includes reimbursement fr use f the vehicle as well as any repairs, gas charges, and the wner s persnal autmbile insurance cverage, which prvides the cverage in case f an accident. Tlls and parking fees are separately reimbursable. The University will nt 16

17 reimburse emplyees fr parking tickets, fines fr mving vilatins, vehicle twing charges, r aut repairs and maintenance. Use MapQuest, Ggle Maps r a similar website t cnfirm mileage and attach the printut t the expense reprt. Additinally, if mre than ne authrized traveler is transprted in a persnal vehicle, mileage is payable t nly ne persn. The wner f the persnal vehicle will nt be reimbursed fr transprting multiple authrized travelers. When claiming r authrizing reimbursements fr miles related t mving t Stevens r fr activities as a Stevens vlunteer, use the lwer IRS rates established fr thse purpses. Rental Cars- In all circumstances, the use f a rental car shuld be thughtfully cnsidered and the relevant csts and cnvenience assciated with the use f available grund transprtatin such as taxis, htel and airprt shuttles, shuld be weighed against the cst and need fr a rental car. Rental f vehicles fr university business use shuld be arranged thrugh the University s preferred suppliers. Due t the need fr a cmmercial driver s license, and the inherent instability f this type f vehicle, it is never permissible t rent a 15 passenger van. Ordinarily, apprval will be given fr nly ne car and use shuld be crdinated amng the attendees when multiple Stevens attendees are at the same cnference and a rental car is deemed necessary/apprpriate. Standard vehicles are the recmmended vehicle size fr rental purpses. Upgrades t full-size cars are permissible if the individual s supervisr prvides apprval, a detailed explanatin (e.g., number f persns, luggage accmmdatins) is included in the business justificatin and it is an allwable cst by the gvernmental spnsring agency (if applicable). In additin t the payment fr the cst f the rental car, the nly ther permissible expense fr rental cars in mst cases is the cst t purchase gasline. Vehicles rented fr university business purpses fr less than thirty (30) days are cnsidered shrt-term rentals by the University s current autmbile insurance carrier. Cverage f shrtterm rentals under the University s autmbile insurance plicy is subject t the fllwing cnditins: All drivers f rental vehicles must be ver the age f twenty-ne (21). Cverage under the University's autmbile insurance plicy is nly prvided fr vehicles rented in the United States, the territries and pssessins f the United States 2, and Canada. Rented vehicles shuld be leased as: Stevens Institute f Technlgy- (name f faculty, staff, r student). Individuals renting vehicles fr mre than thirty (30) days shuld cntact the Chief Risk 2 U.S. territries and pssessins include: The Cmmnwealth f Puert Ric, Guam, The U.S. Virgin Islands, American Sama, The Cmmnwealth f the Nrthern Mariana Islands, The Midway Islands, Wake Island, Kingman Reef, Navassa Island, Jhnstn Atll, Palmyra Atll, Baker, Hwland and Jarvis Islands 17

18 and Cmpliance Officer t cnfirm applicable insurance cverage. N Stevens emplyee will be reimbursed fr any purchase r lng-term lease f a vehicle withut written permissin frm the Chief Financial Officer. Any accident invlving a rental vehicle in either a dmestic r internatinal lcatin must be immediately reprted t bth the car rental agency and the Chief Risk and Cmpliance Officer fr handling f claims and crdinatin f cverage. Insurance cverage fr lss damage waiver/cllisin waiver, liability insurance supplement/additinal liability insurance, and persnal accident insurance shuld nt be purchased and shuld be declined by thse traveling in the United States, any territry r pssessin f the United States, Puert Ric r Canada. The University already maintains autmbile liability insurance within these cuntries and territries. Csts fr the fllwing categries f cverage will nt be reimbursed: Lss Damage Waiver/Cllisin Damage Waiver; Liability insurance supplement/additinal Liability insurance, and; Persnal accident insurance. The fllwing ptinal insurance cverage will nt be reimbursed: persnal effects cverage/effects prtectin, and persnal accident insurance. Internatinal Vehicle Rentals - University emplyees renting vehicles fr internatinal business travel utside the cverage territry f the United States, the territries and pssessins f the United States and Canada are advised t purchase any autmbile liability and physical damage insurance required by the specific cuntry. University emplyees will be reimbursed fr any required cverage and/r the fllwing cverage: Lss damage waiver/cllisin damage waiver Supplemental liability insurance, if any Grund Transprtatin - Grund transprtatin is an apprpriate business expense (including a tip) t the extent that such service is necessary fr business purpses. Public transprtatin, cab, r car services are acceptable mdes f transprtatin. The traveler must weigh the benefits f csts, availability, time saving and safety when chsing the mde fr business travel. Fr example, fr trips greater than 20 and less than 200 miles, a persnal vehicle r public transprtatin is likely mre ecnmical than a car service. Generally, it is nt allwable fr a car service t wait fr the traveler fr the duratin f an ffsite meeting. Rail Travel Generally, seating (r the class) n rail transprtatin is expected t be lwest-priced ticket fr the type f train taken. Standard Train - The class f rail travel chsen n standard train is expected t be Cach-class rail ticket. In sme cases, premium (e.g., business-class) fares may be an apprpriate business expense subject t budget availability and prir apprval by the signatry/signatries apprpriate fr the traveler. Extra-Fare Trains - Whenever practical, travelers shuld determine the apprpriateness f bking rail travel n an extra-fare train (Acela r ther trains that are described as faster speed r fewer stps). If scheduling cnstraints, a demnstrated need r the traveler s missin, requires travel n Acela, then seating shuld be at the basic accmmdatin n that train, which is Business-class. 18

19 Include in yur travel expense reprt an explanatin as t why the extra fare train was chsen. Althugh the fllwing are nt exhaustive, cmmn reasns fr taking the extra fare train might be: 1. Chsing the standard train with the requirement f an early mrning meeting wuld have required the cmbined cst f a htel rm and standard rail the previus evening. These cmbined csts wuld have been mre than the extra fare fr the high speed train. 2. Previus scheduled cmmitments made standard rail an unacceptable ptin. 3. The time saved using the high speed train allwed mre time in the ffice t cmplete necessary tasks. Internatinal Travel All f Stevens plicies and prcedures pertaining t travel apply t freign travel. Actual csts are reimbursable, t the extent reasnable and necessary, prvided valid business purpses and apprpriate dcumentatin are submitted with the expense reprt. The U.S. State Department maintains a list f cuntries fr which travel advisries have been issued. Cuntries where avidance f travel is recmmended will have Travel Alerts (shrt term events) and Travel Warnings (lng term issues). When traveling internatinally, it is the traveler s respnsibility t learn if travel advisries have been issued fr the lcatins f the trip. As part f the trip authrizatin prcess, the traveler will ntify their apprver as t whether travel advisries have been issued. It is the apprver s respnsibility t weigh the benefits and risks f travel t a cuntry under an advisry befre authrizing a trip. If the traveler and apprver wish t prceed with the trip (t a cuntry fr which the State Department has issued a travel advisry), they must cnsult with the Vice President f their area, the Chief Risk Officer and the General Cunsel prir t the cmmencement f the trip. Please see the Business Travel Accident Insurance Sectin fr infrmatin regarding Business Travel Accident Insurance. Travelling t ther cuntries and/r cnducting wrk in ther cuntries raises a significant number f legal issues invlving bth U.S. and freign law and it is advisable that yu cnsult available resurces at the University n the purpse f yur travel. Fr example, U.S. exprt cntrl laws will restrict the cmputer devices and data yu may take ut f the cuntry; the immigratin laws f many cuntries will require a visa fr any visit fr purpses f cnducting wrk; and laws in many cuntries will restrict exprts f samples r materials frm the cuntry. Additinal infrmatin abut U.S. and ther laws applicable t freign travel can be fund in Appendix D. Please cnsult with the Office f General Cunsel in advance f yur planned travel fr infrmatin n U.S. and freign laws which may be applicable t yur travel r wrk utside f the U.S. Freign travel funded by spnsred grants r cntracts may require agency r spnsr apprval prir t travel. Individuals traveling abrad shuld cnsult agency guidelines and/r the relevant cntract t ensure that all agency r spnsr prcedures and restrictins are fllwed. Any questins r interpretatin f Federal r spnsr restrictins shuld be directed t the Office f Spnsred Prgrams. Mst Federal agencies require that all freign travel be n a U.S. carrier unless circumstances, such as lengthy hldvers, preclude using a United States airline (See Air Transprtatin). Many spnsring agencies r spnsrs must specifically apprve trips abrad well in advance f departure. This 19

20 requirement exists whether r nt travel is referenced in the grant r cntract award ntificatin. Arrangements fr freign travel supprted by spnsring agencies r spnsrs can be cmplex, requiring nt nly prir apprval but detailed justificatin fr each trip, as well as detailed trip reprts. Receipts in freign languages shuld be translated if the type f expense is nt clear, r if the detail f the expense has t be knwn in rder t determine apprpriateness f apprval, i.e., such as receipts fr fd in rder t cnfirm that alchl is nt included in the reimbursement. Nrmally, receipts fr expenses such as taxi r ther transprtatin need nt be translated, as lng as the cst is reasnable fr the activity. B. LODGING General Generally, trips f less than 50 miles ne way d nt qualify fr university supprt f an vernight stay. Reimbursement fr ldging fr a trip f less than 50 miles ne way must be justified and specifically apprved by the signatry/signatries apprpriate t the traveler. The University will directly pay r reimburse a traveler fr ldging expenses fr the single ccupancy cst f a standard rm incurred during university-related travel. The University will nt pay fr free accmmdatins awarded in cnnectin with htel frequent guest prgrams r any cmplimentary rm accmmdatins prvided by a htel r ther third party. Individuals traveling shuld cnsult agency guidelines and/r the relevant cntract t ensure that all agency r spnsr prcedures related t ldging are fllwed. Any questins r interpretatin f Federal r spnsr restrictins shuld be directed t the Office f Spnsred Research. Travelers are encuraged t ascertain prir t bking the travel whether the htel grants an educatinal discunt. Sme htels prvide a discunt based n presentatin f a university faculty r staff ID. Cancellatins The University will pay fr expenses incurred frm cancelling guaranteed rm reservatins nly with a detailed explanatin f the extenuating circumstances. The detailed explanatin must be apprved by the signatry/signatries apprpriate fr the traveler and this apprval shuld be dcumented and submitted as apprpriate. It is the traveler s respnsibility t request a refund frm the htel fr a n shw charge. C. Travel per diem Optins Fr Emplyees Only General Emplyees have the ptin t chse between reimbursement n a per diem basis r fr actual cst f meals, and incidental expenses (tips, etc.). Per diem may nt be used t substantiate expenses incurred n a purchasing card. Actual receipts are required t cnfirm all purchasing card charges. Departments may require reimbursement based n actual expenses with receipts in lieu f per diem based upn department-specific plicies and prcedures (including fr budgetary requirements). 20

21 Emplyees traveling t internatinal lcatins and reimbursed n spnsred prjects may be required t adhere t cuntry specific per diem rates and shuld cnsult the Office f Spnsred Research with any questins. U.S. General Services Administratin (GSA) peridically revises the per diem rates based n the csts f meals and ldging. Emplyees must use the per diem rates in effect at the time f travel. The per diem rates used must cmply with thse listed n the GSA website. Per diems apply t the entire travel perid an emplyee cannt be reimbursed n a per diem basis fr nly a prtin f a trip. A per diem reimbursement will nt be prvided if there is reasn t believe that the emplyee will nt incur expenses fr meals r ther incidental expenses (e.g., if meals and ther incidental expenses are a part f registratin fees at a cnference, free transprtatin is prvided by the place f ldging, r these items are prvided and paid fr by the University). Fr the day f departure and day f return, the reimbursement rate is limited t 75% f the per diem rate based n the lcatin where the traveler is mst likely t incur the meal expense. If the travel day extends lnger than 16 hurs, then 100% per diem is allwable and apprpriate. Additinally, the University s meal and incidental expense per diem shuld be reduced t accunt fr meals furnished at n cst t the emplyee. Fr example, if meal csts are prvided in the cst f a cnference r htel, thse meals shuld be deducted frm the daily per diem rate as defined n the GSA website. The traveler shuld reduce the per diem fr any meal therwise paid fr r prvided (20% fr breakfast; 25% fr lunch; 55% percent fr dinner). Emplyees wh are eligible t receive per diem reimbursement need nt submit receipts fr the meals cvered by a per diem. Hwever, recipients f per diem must submit dcumentatin (e.g., airline and cnference itineraries) cnfirming the dates they have been in a travel status. In additin t per diem, emplyees may be reimbursed fr certain ther travel and business expenses. These expenses may include the csts f business transprtatin (including lcal transprtatin), business telephne calls, and ther miscellaneus business expenses; which must be reimbursed n an actual basis, with apprpriate receipts. Trips Over 30 Days Travel fr mre than 30 cnsecutive days in ne lcatin may be reimbursed either fr the actual and reasnable csts incurred r with a per-diem allwance equal t 60% f the standard rate fr the apprpriate gegraphic area. The reduced rate begins with the first day f travel. D. ALCOHOL, MEALS, AND ENTERTAINMENT General The University will reimburse travelers fr the reasnable cst f alchl, meals, entertainment and gifts that are reasnable business expenses and allwable in this Plicy. Depending n the particular circumstances fr which the expenses are incurred, expenses fr alchl, meals, entertainment and gifts will be: Entertainment expenses (see Business Entertainment) incurred in the curse f cnducting business, nne f which are allwable as either a direct r indirect expense f federallyspnsred prjects Business expenses, sme r all f which may be allwable as either a direct r indirect expense 21

22 f federally spnsred prjects, and sme f which may nt be (alchl and gifts are always unallwable fr federal purpses). Federal regulatins require that these expenses be recrded crrectly. Alchlic beverages shuld always be recrded using bject cde Other expenses, such as gifts r flwers in appreciatin f services shuld be recrded using bject cde 6182 Other Federal Unallwable Expenses. A list f cmmn Business and Travel related bject cdes is shwn in Appendix B Fr meals and entertainment funded by a spnsred grant r cntract, the individual incurring the business expense shuld cnsult agency guidelines and/r the relevant cntract t ensure that all agency r spnsr prcedures and restrictins are fllwed. Any questins r interpretatin f Federal r spnsr restrictins shuld be directed t the Office f Spnsred Research. Alchl, meals, entertainment and gifts that are nt reasnable business expenses will nt be reimbursed. Travelers Meals The University will reimburse travelers fr the reasnable cst f their wn meals incurred during the time they are away frm hme (as distinguished frm business entertainment expenses r lcal business meals cvered in the fllwing sectins). Emplyees can chse t be reimbursed via per diem r actual cst fr meals. Nn-emplyees can nly be reimbursed fr actual csts incurred fr meals. As a general rule, travelers are expected t incur n additinal cst fr meals which are prvided as part f a fee fr attendance at cnferences, wrkshps, htel cst, etc. When meals are prvided in this way, the daily meal per diem must be reduced accrdingly (see Travel per diem Optins Fr Emplyees Only). If there is a business justificatin prvided regarding dietary restrictins, the traveler may be reimbursed fr the meal. The traveler is respnsible fr ntifying the business expense reprt preparer regarding meals that were included as part f the cnference registratin fee, htel cst, etc. Travelers smetimes pay fr meals fr thers fr university business reasns. These business expenses must include the name(s) f the meal attendees and the business purpse f the meal. If the attendees are nt university emplyees, their affiliatin with the University shuld be prvided. Fr meals with six r mre individuals including the traveler, the traveler need nly identify the number f ther peple at the meal. These may be cnsidered legitimate university business expenses (if cnfrming t the specifics f this paragraph); hwever they may nt be apprpriate n federal grants r cntracts. Business Meals and Meetings When Nt Traveling Emplyee Only Business Meals - In cases where university emplyees meet ver a meal when they are nt traveling, the cst f the meal is cnsidered a persnal expense unless the primary purpse f the meeting is t cnduct university business and there is a need t meet ver the meal. Generally, these requirements are met when it is nt pssible fr ne r mre emplyees t meet during wrking hurs (e.g., when travel plans cnflict with ther meeting times), and the purpse f the meeting is t cnduct university business in accrdance with a frmal agenda. IRS regulatins d nt allw fr payment f meal expenses incurred by emplyees wh are nt traveling away frm hme (e.g., their travel des nt require an vernight stay) unless 22