Policy on Expense Reporting and Reimbursement

Transcription

1 I. PURPOSE FINANCIAL AND ADMINISTRATIVE POLICIES AND PROCEDURES Policy on Expense Reporting and Reimbursement The purpose of the Policy on Expense Reporting and Reimbursement of Franciscan University of Steubenville (the University ) is to be fair and equitable to employees and to comply with the Internal Revenue Service ( IRS ) substantiation requirements. An employee working for the University should neither gain nor lose personally by incurring reasonable and necessary travel and business expenses. Furthermore, employees throughout the University incurring similar business expenses are to be reimbursed, or not reimbursed, on a consistent basis II. GENERAL DOCUMENTATION/SUBSTANTIATION REQUIREMENT The University currently has an "Accountable Plan" for employee business expense reimbursement. In order to comply with IRS regulations for an Accountable Plan, the University will make reimbursements only for business expenses which meet the following three conditions; 1. The expenses must have a legitimate business connection; 2. The expenses must be adequately accounted for within 30 days of their occurrence; and 3. Any excess advanced funds must be returned to the University within 10 days of the expense occurrence. III. THE UNIVERSITY REIMBURSEMENT PROCESS A. Reimbursement of Expenses 1. All travel and business expenses incurred on official University business must be accounted for on the University s Expense and Reimbursement Report (see Appendix A). This Report, available at the Business Services Office, is used to obtain reimbursement of an employee s personal funds and to account for amounts expended from a travel or cash advance. Each day's expenses should be clearly identified and reported separately on the Report. 2. Original, itemized receipts must be submitted for all business expenses, including airline stubs, hotel bills, automobile rental bills, meals, etc. Monthly statements, travel agency invoices, or non-itemized credit card

2 receipts alone are not acceptable as backup documentation. An employee who requests reimbursement for an expense for which a receipt was either unobtainable or lost should include a written statement to this effect with the Reimbursement and Expense Report; this statement must also be signed by the employee s immediate supervisor. 3. When requesting reimbursement of foreign travel expenses, an employee must include the rates used in converting the foreign currency to U.S. funds. The rates should be those used by the corporate charge card company at the time of the transaction, rather than the rates in effect at the time the Expense and Reimbursement Report is submitted. When a cash advance is involved, employees should exchange foreign currency into U.S. dollars before returning home. B. Approval Process The Expense and Reimbursement Report is required to be signed by the employee, approved and signed by the employee s immediate supervisor, and forwarded to the Business Services Office for processing, along with a cash receipt for any funds remaining from an advance. A delay in reimbursement will occur if the Report is not complete or if the required documentation is not provided. C. Timely Reporting 1. Any excess advanced funds must be returned to the University within 10 days of the expense occurrence. 2. Each employee must prepare a complete, accurate and properly documented Expense and Reimbursement Report within thirty (30) days of incurring the expense. Items over sixty (60) days old will not be reimbursed. IV. EMPLOYEE TRAVEL All travel expenses must be submitted on an Expense and Reimbursement Report and must be in accordance with the University s Policy on Travel. V. TRAVEL BY NON-UNIVERSITY PERSONNEL Non-University personnel (including contractors, consultants, lecturers, and conference speakers) may occasionally travel on University business. Reimbursement requests for non-university personnel must be submitted on the Non-Employee Reimbursement Request Form (see Appendix B). 1. In the event the University reimburses these individuals for travel expenses (including transportation, lodging and meals), the individual is subject to the applicable substantiation provisions contained in this Policy, including

3 submission of original receipts. If properly substantiated, reimbursed travel expenses will not be reported as income to the individual. 2. For airline ticket purchases for business travel, the invoice received from the travel agency (if applicable), the airline ticket receipt, and the itinerary must be submitted with the reimbursement request. When ticketless airline travel is booked, the individual must request a receipt from the airline at the time of the booking or check-in at the airport and submit this receipt along with a copy of the itinerary and the boarding pass and the reimbursement request. 3. If the applicable substantiation provisions are not followed, the amount reimbursed by the University will be reported as income to the individual. VI. HOSPITALITY All hospitality expenses must be submitted on an Expense and Reimbursement Report and must be in accordance with the University s Policy on Hospitality. VII. OTHER BUSINESS EXPENSES A. Supplies and Equipment Supplies and equipment are not reimbursable expenses. Employees should use established purchasing procedures (purchase order, purchasing card, or credit card) for all supply and equipment purchases. Requests for exceptions to this rule must be submitted in writing to the Director of Business Services prior to the expense being incurred. B. Long-Distance 1. Long-distance calls that are business-related should normally be made using a University PIN# or a University calling card. 2. However, in limited situations the University will reimburse an employee for long-distance phone calls made on a personal phone or calling card. To substantiate long-distance phone expenses, an employee must submit monthly phone bills with the business calls highlighted. 3. The University will not reimburses expenditures for the purchase, installation, or activation of any personal phones.

4 C. Moving Expenses 1. In certain circumstances, a new employee may be reimbursed by the University for moving expenses. The amount, if any, of these expense will be determined by the Human Resources Office. Reimbursement may be made for both qualified and non-qualified moving expenses, however only qualified moving expenses are excluded from an employee s taxable income. 2. Qualified moving expenses include reasonable cost of the following: a) moving household goods and personal effects to the new residence; and b) traveling to the new residence, including lodging (but not including meals) during the travel. 3. In addition, in order for moving expenses to be considered qualified moving expenses, the following requirements must be satisfied: a) expenses must be substantiated with original, itemized receipts b) expenses must be incurred within one year of commencement of employment at the University; c) the distance from the employee s former residence to the University must be at least 50 miles farther than the distance from the employee s former residence to the employee s former place of employment; and d) the employee must be a full-time employee for at least 39 weeks during the 12-month period immediately following the move. 4. The following are examples of qualified moving expenses: a) pre-move packing and crating costs; b) professional mover fees; c) fees for disconnecting utilities; d) storage and insurance costs within any 30 consecutive-day period after the day the household goods and personal effects are moved from the former residence and before such items are delivered to the new residence; e) lodging costs incurring en route to the new residence; f) automobile expense of either: (1) actual expenses (gasoline, oil and auto maintenance); or (2) standard rate of 10 cents per mile (which may be adjusted for inflation); and g) post-move unpacking costs.

5 5. Reimbursement for moving expense that are not qualified moving expenses shall be considered taxable compensation to the employee. Examples of nonqualified expenses, include, but are not limited to, the following: a) pre-move house-hunting expenses; b) temporary living expenses (including lodging and meals) while waiting to occupy the new residence; and c) expenses of selling the former residence, including expenses of trips made to the former area to sell the property. VIII. NON-REIMBURSABLE BUSINESS EXPENSES An employee will not be reimbursed for the following business expenses: 1. Annual fee for any credit card; 2. Late charges on any credit card; 3. Any expense not in accordance with the University s Policy on Travel; 4. Any expense not in accordance with the University s Policy on Hospitality; 5. Any expense not accounted for within 30 days of its occurrence.