Accounts Payable Policies and Procedures

Accounts Payable Policies and Procedures As of May 27 th, 2016

Table of Contents General Information... 1 1.0 Policies for Allowable Business Expenses... 2 1.1 Business Travel Expense... 2 1.2 Meals... 4 1.3 Alcohol Policy... 4 1.4 Memberships and Subscriptions... 5 1.5 Employee Recognition Gifts... 6 1.6 Independent Contractors... 7 1.7 Moving Expenses... 7 1.8 Printing and Copying Expenses... 8 2.0 University Purchasing and Payment Processes... 9 2.1 Authorizing payments... 9 2.2 Purchase Orders... 10 2.3 Invoice Processing... 12 2.4 Reimbursements... 13 2.5 Travel Expense Reports... 14 2.6 Travel Advances... 15 2.7 Moving Expense Reimbursement Form... 17 2.8 University Procurement Card... 17 2.9 Wire Transfers... 17 2.10 Preferred Vendors... 18 3.0 Frequently Asked Questions... 18

General Information There are regulatory and business reasons regarding University disbursements that require policies and procedures. The purpose of this information is to provide guidelines and processes for all University employees to conduct business operations regarding items such as vendor payments, employee reimbursements and various Accounts Payable related services. The Internal Revenue Service (IRS) has established strict rules governing business and entertainment expenses. The University will reimburse employees for legitimate, reasonable and appropriate business and entertainment expenses in accordance with the IRS requirements and the procedures set forth in this policy. Generally Acceptable Accounting Principles (GAAP) is a framework of guidelines and standards for accounting for financial transactions. Our policies and procedures must adhere to these guidelines to account for University transactions for financial reporting purposes. The University recognizes the necessity and proper role of reasonable and appropriate expenses incurred for business meals, business meetings and business related travel to conduct University operations. The University believes and expects that faculty and staff will exercise prudence and good judgment when incurring expenses on the University s behalf for business activities. Divisions within the university may have additional policies so long as they do not conflict with the policies within. Purchasing using grant funds must also be in compliance with federal regulations as well as the grant agreement which are not considered within this document. This policies and procedures manual is under the responsibility and authority of the Vice President of Finance and Business Affairs who must approve any significant changes or revisions. Any questions, revisions, errors, or changes may also be directed to the Controller s Office. All forms and templates mentioned in this booklet can be found on the Controller s Office website. 1

1.0 Policies for Allowable Business Expenses An allowable business expense is an expense or a transaction that the University or an employee incurs on behalf of the University in exchange for goods or services. Payment of an allowable business expense is ultimately the responsibility of the University. The following is a list of categories of allowable business expenses. Each has unique policies and processing that are detailed within this document: Business travel expenses; Meals; Alcohol policy; Memberships and subscriptions; Employee recognition gifts; Independent contractors; Moving Expenses; Printing and Copying Expenses. 1.1 Business Travel Expense Definition of a business travel expense Business travel expenses are expenses incurred by an individual while on University related business travel such as a conference or event. These types of expenses typically consist of airfare, hotel, meals, taxis and conference fees. For more information regarding how an employee may pay for business travel expenses see sections 2.4 Travel Expense Reimbursement, 2.5 Travel Advances and 2.7 University Procurement Card. Requirements of a business travel expense The University will reimburse individuals for reasonable, necessary, appropriate and approved travel and business expenses incurred in the performance of University business. A purchase order is not required for travel expenses. 1.1.1 Airfare The University will reimburse for the most economical airfare that is generally a coach class ticket aboard a regularly scheduled commercial carrier. An itinerary or e-ticket is the required documentation for reimbursement of airfare. Both are commonly issued from online travel booking sites. The itinerary or e-ticket must include the travelers names, flight dates, price, ticket class, destination and proof of payment. Upgraded seats, travel insurance and other nonessential expenses are not reimbursable. The University will not reimburse the equivalent cost of the ticket when personal airline miles are used. 1.1.2 Hotel The University will reimburse lodging for business travel to non-local destinations. Lodging reimbursements are only allowed when traveling more than 50 miles away from Seattle University. Only expenses for standard room accommodations will be reimbursed. The paid 2

hotel bill is required documentation for reimbursement of a hotel stay. If the hotel room is booked through an online travel reservation website, the traveler may print the itinerary rather than providing the hotel bill. The bill or itinerary must show the names of the people staying, travel dates and proof of payment. Room service charges on the hotel bill require an original itemized receipt. Movies or other entertainment expenses are not reimbursable. 1.1.3 Meals The University will reimburse employees for meals while traveling under the following options: Per Diem: The per diem reimbursement rate is $50 a day. The following breakdown applies if traveling for part of the day: $10 for breakfast, $15 for lunch, and $25 for dinner. No proof of payment is required for per diem reimbursement. Per Diem is only allowed for travel more than 50 miles away from Seattle University. Actual Meal Expenses: Original itemized receipts are necessary when choosing not to be reimbursed through the per diem option. The receipt must document what was purchased to ensure it falls within the University s meal and alcohol policy. A list of attendees and the business purpose are required when purchasing for someone other than the person receiving the reimbursement. Tips must not exceed 20%. For further information refer to sections 1.2 Meal Policy and 1.3 Alcohol Policy. In either option, travelers should not seek reimbursement for a meal that is included in some aspect of the travel such as a conference registration. The traveler may not claim partial per diem and an actual meal expense on the same day. For example, reimbursing breakfast at a restaurant and then claiming per diem for lunch and dinner is not allowed. When attending a conference that provides meals per diem cannot be claimed. 1.1.4 Ground Travel Ground travel for University business may be reimbursed as follows: Personal car: A Google Map printout is required for documentation purposes to show the miles driven. The University follows the IRS recommended mileage reimbursement rate (54 cents per mile in 2016). This rate may change on January 1 st of each year. Please refer to the Controller s Office website or the yearly email Accounts Payable sends regarding the rate change. Bus or Subway: Original receipts are preferred but Accounts Payable realizes that may not always be possible for these types of tickets and thus will reimburse without receipts. Bus and subway transportation are recommended cost-effective forms of travel. Taxis: Original receipts are required for documentation purposes. Parking: Original receipts are required for documentation purposes. Rental Cars: Rental cars are only allowed if they are required to do University related business. The size of the car should be appropriate for the number of passengers. Expenses incurred for gas will be reimbursed when original receipts are provided. An employee renting a car for business purposes must decline insurance offered by the car rental agency and if insurance is bought, it will not be reimbursed because an employee s use of a rental 3

car for University business is covered by the University s insurance. Except in emergency circumstances, only University employees may drive cars rented for University business. 1.1.5 Incidental Expenses Incidental expenses are miscellaneous expenses incurred while traveling. Examples of incidental expenses include laundry, internet access fees, and reasonable tips for housekeeping. The University will reimburse the employee for the actual reasonable expenses if original receipts are provided or will reimburse the employee $3.00 per day without receipts. 1.1.6 Conference Fees The University requires a receipt showing what fees were paid and the dates of the conference. Most conference fees can be paid directly by the University through an invoice or by the employee using a University Procurement Card. 1.2 Meals The University will reimburse a business meal expense when it is deemed to be necessary, reasonable and appropriate by a dean, director, department head or designee. Reimbursement of meals will occur when they are an integral part of the business meeting or activity, not as a matter of personal convenience. The receipts must be original and itemized and include the provider s name and date, the name(s) of any other person included on the bill and the purpose of the meeting. The receipt must indicate that the bill was paid. Credit card receipts alone are not acceptable. To determine whether a business meal expense is appropriate, the individual seeking reimbursement should first consult with his or her supervisor. The supervisor should exercise professional judgment in determining whether: The topic of discussion (meeting) or activity of the meeting warrants the use of University funds for the meal expense. The benefit derived from incurring the expense is the most effective, efficient and productive way to use University resources. The funds are available. Meals and catering do not require purchase orders. Bon Appetit is the only authorized catering service for on-campus events. 1.3 Alcohol Policy Alcohol consumed during a business meal The University will reimburse reasonable costs of alcoholic beverages consumed during a business dinner. Reasonable costs of alcohol are defined as two alcoholic beverages per person. Dinner hours are between 4pm 11pm. See the table below for information on how each type of drink counts towards a person total. 4

Type Unit Amount of Drinks Beer Glass, Bottle, Can 1 Beer Pitcher 4 Wine Glass 1 Wine Bottle 5 Spirits/Mixed Drinks Shot 1 If an employee wishes to be reimbursed for alcohol consumed in exception to the policy above, they must have either their department s Vice President or Dean provide written approval prior to any reimbursement. Alcoholic beverages may not be reimbursed from federal grants or contracts. Alcohol consumed during an event Alcohol may be purchased for University business events and must adhere to the following requirements: 1. The employee must indicate on the invoice or reimbursement the location of the event where the alcohol was consumed. 2. To be reimbursed for alcohol expenses for on-campus events, the employee must obtain an alcohol permit from Conference and Event Services prior to the event. A copy of the permit must accompany the invoice or reimbursement in order for Accounts Payable to process the request. If a permit was not obtained before the event, Accounts Payable will not reimburse the expense. If the copy of the permit is not sent with the invoice or reimbursement, the request will be returned to the person responsible. 3. Any unconsumed alcohol from an event must be stored under lock and key and used for a future event. A new alcohol permit will be needed for that future event. 4. For off-campus events, it is the responsibility of the individual to obtain any necessary permits. The University does not need a copy of these permits. 1.4 Memberships and Subscriptions The University encourages faculty and staff membership in organizations that will promote the advancement of instruction, research and public service and will enhance the professional standing and development of its faculty and staff. Annual dues and fees for memberships and subscriptions are only reimbursable for a period of up to 12 months. Lifetime memberships will not be reimbursed. Membership or subscription invoices submitted for payment must include the start and end dates or the length of period. If a subscription or membership period crosses more than one fiscal year, the expense 5

will be split between both years based on the month it starts and ends. An example of the process is as follows: A membership runs from January 1st until December 31st and costs $100; half of the membership will occur in the current fiscal year (January 1st to June 30th) and half in the next fiscal year (July 1st to December 31st). The vendor will receive $100 but Accounts Payable will charge the given budget number $50 in the current fiscal year and $50 in the next fiscal year. The next fiscal year charge will show up on SUDDS in August as a journal entry. After Accounts Payable allocates expenses between fiscal years, it is recommended the department recalculate when the cost center is charged to ensure the accuracy of the charges. 1.5 Employee Recognition Gifts Gift cards, gift certificates and other monetary awards Gift cards, gift certificates and other monetary awards over $50 will be considered taxable income to the recipient. A reimbursement for a gift requires the name of the person receiving the gift, the purpose of the gift and the amount of the gift received. Additionally, if the monetary award is in excess of $50, reimbursement requires the recipient s SU ID number or a completed W-9. Non-monetary awards Plaques, trophies, certificates, etc., are examples of non-monetary awards. Reimbursement for a nonmonetary award requires the name of the person receiving the gift, the purpose of the gift and the value of the gift received. If the non-monetary award is in excess of $75, it will be considered taxable income to the recipient and the Controller s Office requires the recipient s SU ID number or a completed W-9. Retirement gifts The University will pay or reimburse the cost of non-monetary awards to a retiree within the following limitations: Length of Service Maximum Amount 10 to 20 years of service $300 Over 20 years of service $400 To be eligible for a retirement gift, the retiree must have been employed at least 10 years at the date of retirement and the gift must be given at a meaningful presentation. Farewell gifts The University will pay or reimburse the cost of non-monetary awards within the following limitations: Length of Service Maximum Amount 5 to 10 years of service $100 11 to 20 years of service $150 Over 20 years of service $300 6

Retirement and farewell gifts qualify as length-of-service awards under IRS regulations. Therefore, the gifts are not reportable as taxable income to the recipient. To qualify as a non-taxable award, the award must not be in the form of cash or a gift certificate and must be given at a meaningful presentation. 1.6 Independent Contractors An independent contractor is an individual who provides a service to the University under specified terms in a contract and the University pays them directly for their service. Examples include speakers, interpreters, photographers and performers. Certain professional services such as accountants, architects and attorneys are also required to be reported with an independent contractor form. To request payment for services performed, complete the Independent Contractor/Honorarium form. Additionally, the invoice, contract, W-9 and any other supporting documentation are required to be attached to the back of the Independent Contractor/Honorarium form. Payments to the contractor will not be processed until the service has been completed and all required information has been compiled. 1.7 Moving Expenses Payment of moving or relocation expenses of new faculty and administrators is at the discretion of the appropriate dean, director or department head. Moving expenses are defined as the reasonable costs of moving household goods and personal effects to a new residence. These costs also include the cost of travel to the new location for the employee and his or her immediate family. Qualified moving expenses reimbursed by Seattle University are excludable from an employee's gross income as a qualified fringe benefit to the extent that they meet the reporting requirements for a qualified moving expense reimbursement. Qualified moving expense reimbursements include any amount received, directly or indirectly, by an employee from Seattle University as a payment for, or a reimbursement of, expenses that would be deductible as moving expenses if directly paid or incurred by the employee. Reimbursements for moving expenses that are not qualified moving expense reimbursements are included in the employee's gross income as compensation for services. To qualify for a non-taxable moving expense reimbursement, the IRS has established the following guidelines: The position is full time for at least 39 weeks during the first 12 months after arriving in the new area. It is at least 50 miles farther from the former residence than the old main job was from the former residence. For example, if the old main job was 3 miles from the former residence, then the new workplace must be at least 53 miles from the former residence. Also, the distance from the new residence to the new job location is not more than the distance from the former residence to the new job location. The reimbursements are reasonable expenses for: 7

Costs of storing and insuring household goods and personal effects only within any period of 30 consecutive days; Costs of moving possessions from another location may qualify, but only to the extent of what it would cost to ship directly from the principal residence to the new residence; Costs of traveling from the old residence to the new residence are also deductible, reimbursed based on actual expenses, or 23 cents/mile (effective January 1, 2015); Lodging reimbursements can include staying in a hotel at the location of the old residence within one day of the furniture being moved out. Taxable moving expense reimbursements include: Meals consumed in route; Costs of house-hunting trips; Cost of maintaining a temporary residence; Cost of storage in excess of 30 days; Cost of moving furniture bought on the way to the new residence. If taxable moving expenses are reimbursed to the employee from the University, federal income tax, Social Security and Medicare taxes will be deducted from the employee's paycheck. The employee will be notified by Payroll when this event occurs. For questions related to these payroll deductions or other questions related to the W-2, contact Rita Lin, Payroll Manager, ext. 5887. For more information regarding how to be reimbursed see section 2.7 Moving Expense Reimbursement Form. 1.8 Printing and Copying Expenses The University has centralized printing and copying through Managed Print Services. Purchases related to printing and copying outside of Managed Print Services will not be reimbursed by Accounts Payable. The disallowed items include the purchase of printers, copiers, fax machines, scanners, ink, and toner. Maintenance by outside vendors on disallowed items will not be reimbursed by the University. Any exceptions to this policy must be approved by the Chief Information Officer and Accounts Payable will need proof of the approval attached to the submitted invoice. 8

2.0 University Purchasing and Payment Processes The University may pay an allowable business expense through the following processes and procedures that are detailed in the sections below: Authorizing payments Purchase orders; Invoice processing; Reimbursements; Travel expense reports; Travel advances; Moving expense reimbursement; University Procurement Card; Wire transfers. 2.1 Authorizing payments Definition of an authorized signer To be an authorized signer, the employee must be on the Expenditure Authorization list for the given budget. The Cost Center Manager or a person in a higher position such as the Associate Vice President or Dean may approve payments when on the Expenditure Authorization list for the budget being charged. Contact the divisional budget manager of your department to inquire on how to be added to the Expenditure Authorization list. Below is a breakdown on who is allowed to approve invoices, reimbursements, wire transfers, purchase orders, and advances. Expenditure Authority Cost Center Manager Under $5,000 AVP/Assoc. Provost/Dean/Head of $5,001-$50,000 Athletics/Librarian VP/CIO $50,001-$100,000 CFO/EVP/Provost $100,001-$1,000,000 President Over $1,000,000 Responsibilities of the authorized signer The signer certifies the payment had a valid business purpose. The signer will also be responsible for following University policies listed in this document. If chosen for audit by external agencies and 9

discrepancies are found, the person signing the transaction will be held responsible. The authorized signer has the following requirements for each approval: 1. They may not approve the invoices or reimbursements of their direct supervisor (at any level). 2. They may not approve the reimbursement for a meal or event that they attended. When a purchase order is involved, the signer is no longer approving payment but rather approving the items or service has been received in good order and the amounts listed on the invoice or reimbursement match the purchase order. If there is a question regarding whether an employee may approve a payment, please contact Accounts Payable before submitting for reimbursement. 2.2 Purchase Orders Definition of purchase orders Purchase orders are an agreement between a buyer and seller indicating items, quantities and prices for products that the seller will later provide to the buyer. After receiving the goods, the buyer will provide payment to the seller, most often through invoice processing (see section 2.3 Invoice Processing). For a full explanation about purchase orders, review the Procurement Policy found on the Procurement website. A purchase order is required before a purchase or commitment has been made for the following: Orders totaling over $500 (including shipping and handling, delivery and tax) Any Technical/IT or furniture purchase (regardless of dollar amount) to allow the University to maintain the established standards To obtain a blanket purchase order for the Campus Store When a vendor requires a purchase order regardless of the dollar amount For service agreements or contracts with a predetermined monthly a blanket purchase order can be issued for the annualized amount Note that purchase orders are not required for travel expenses, meals, utilities, and conference fees. Procedures to generate a purchase order To begin the purchase order process, an employee must download a Purchase Order Requisition from the Procurement website. The purchase requisition must be completed and submitted to Procurement electronically. Purchase orders may only be approved up to a certain amount and must be approved by the respective authority prior to entering into an agreement. Below is a breakdown on who is allowed to approve purchase orders and each level must give approval. For example, a purchase order requisition is submitted for $90,000. It would require approval from the VP, AVP, and Cost Center Manger in order to be accepted. 10

Expenditure Authority Cost Center Manager Under $5,000 AVP/Assoc. Provost/Dean/Head of $5,001-$50,000 Athletics/Librarian VP/CIO $50,001-$100,000 CFO/EVP/Provost $100,001-$1,000,000 President Over $1,000,000 Procurement will review the order and, if satisfactory, a purchase order will be generated and emailed to the company. The billing contact listed on the purchase order requisition will be copied on the email to vendor and will receive an electronic purchase order. When a purchase order is created, an encumbrance is automatically placed on the budget number listed on the purchase order requisition form, which reduces the available budget. This is a reminder that an order has been placed and a future expense will occur. Procedures to pay an invoice that has a purchase order Once the items have been received by the department and an invoice is obtained, the invoice should be checked to see if the vendor included the purchase order number on the invoice. When the purchase order number is missing, write the number next to the approver s signature. The invoice should be paid following the same procedure as a regular invoice found in section 2.3 Invoice Processing. When Accounts Payable receives the invoice and purchase order, the price and quantity will be compared to ensure the documents are matching. Accounts Payable will pay the invoice and the encumbrance will be closed. Partially paid purchase orders will have encumbrances that will remain open until the entire order has been paid. Sometimes an encumbrance will remain on a cost center; however the department does not have an outstanding order. For orders that have been completed because they were modified or canceled, or for orders that have been paid but remain open, the department should email the purchase order number and the reason why it should be closed to payables@seattleu.edu so the purchase order can be closed and the encumbrance removed. Once a month, an email is sent out to the billing contact for all purchase orders that have been open for more than three months. After one year the purchase order will be closed. If an invoice or reimbursement requiring a purchase order is submitted for payment but failed to receive a purchase order before placing the order, the invoice or reimbursement will be sent back to the person responsible. They will need to go through the process of obtaining a purchase order before a payment can be made. By skipping the purchase order process, there is no guarantee that a purchase order will later be obtained or a payment made. 11

2.3 Invoice Processing Definition of an invoice An invoice is a record of goods or services provided from an outside company to the University. The invoice should contain a breakdown of the cost of each item, tax and shipping as well as a total price. The University receives invoices for everything from utilities to a membership fee. Procedures to submit an invoice for payment Prior to submitting the invoice for payment it is the responsibility of the department to verify the quantity and condition of the goods received and the dollar amount stated on the face of the invoice. If there is a discrepancy the department will need to negotiate with the vendor. The following must be provided to the Controller s Office to process the payment of the invoice: Original invoice: The original invoice that details the allowable expense must include the vendor s name and address, a breakdown of what was purchased, a total, whether or not tax was included in the total and a date of when the items were shipped. Statements and order confirmations are not the same as an invoice and will not be processed. Purchase order number: The University requires a purchase order to be completed on all orders for goods and services costing $500 or more, including taxes and shipping. If the purchase order number does not appear on the invoice, write it next to the received approval. Budget number: The invoice must include the 13 digit budget number from which the invoice is to be paid. This is not required when the invoice has a purchase order as the budget number given on the purchase order will be used. If the budget number has changed from when the purchase order was created, contact Procurement to change it before paying the invoice or complete a journal entry after the invoice has been paid. Received approval: The received approval allows Accounts Payable to know the items were received in good order, the price and quantity match the purchase order, and the invoice is ready to be paid. The approver must appear on the Expenditure Authorization list for the budget being charged. The approver s printed name and signature needs to be on the invoice. Digital signatures and stamps are not allowed. Tax Form W-9: If this is the first time the department has used the vendor, a W-9 should be requested from the vendor and either attach it to the invoice when submitting it for payment or email it to payables@seattleu.edu. Wire transfer form: To pay an invoice using a wire transfer, complete the wire transfer form and attach it to the invoice. All of this information should be written on or attached to the invoice from the vendor. If any of the items above are not provided when the invoice is submitted for payment Accounts Payable will require them to be submitted before processing which will likely result in delays in payment. *Note The University has centralized printing and copying through Managed Print Services. Purchases related to printing and copying outside of Managed Print Services will not be reimbursed by Accounts Payable. The disallowed items include the purchase of printers, copiers, fax machines, scanners, ink, and 12

toner. Maintenance by outside vendors on disallowed items will not be reimbursed by the University. Any exceptions to this policy must be approved by the Chief Information Officer and Accounts Payable will need proof of the approval attached to the submitted invoice. 2.4 Reimbursements Definition of a reimbursement Reimbursements are payments for business related expenses that have been purchased using personal funds. These expenses typically include teaching supplies, books, memberships, subscriptions, business meals and office supplies. Procedures to submit a reimbursement To submit a reimbursement, an employee should complete the Reimbursement Requisition Form. This form has the following requirements: General information: All information fields must be completed such as the SU ID number of the person who is being reimbursed, legal name, address (if not direct deposited), amount due, the accounting distribution (fund, cost center, and account) and handling instructions. Reason for reimbursement requisition: This section requires a statement regarding why the expense is an allowable business expense. This section may also be used to provide a list of attendees to an event or the names of the people receiving gift cards. Supporting documentation: All reimbursement requests must have required documentation to support the expenditure as an allowable business expense. See sections 1.0 through 1.7 for required documentation for each type of allowable business expense. Purchase Order number: A purchase order is required for orders of goods and services over $500. Include the purchase order number in the comment section of the reimbursement requisition. Authorized Signature: The approver must appear on the Expenditure Authorization list for the budget being charged. Both the printed name and signature must appear on the requisition form. After completing the form, the employee requesting reimbursement should staple the itemized receipts, bills and other relevant documentation to the back of the Reimbursement Requisition Form. Paper clips are not a secure way to bind paperwork as they tend to come loose in the mail. If there are several receipts, it is recommended to put them in an envelope and staple the envelope to the reimbursement form. For reimbursements with a large quantity of receipts, it is recommended to provide an Excel spreadsheet detailing each expense. This is encouraged as it will expedite the reimbursement process. Submitting an incomplete request will cause the reimbursement to be delayed while Accounts Payable contacts the responsible person. Reimbursement expenses must be submitted to the Controller s Office within 60 days of incurring the expense. If turned in after 60 days, the University reserves the right to not reimburse the expense. The exception to the 60 day rule is when an expense occurs between May 13

15 th and June 30 th. In this situation, the reimbursement must be submitted before July 15 th.this policy allows the University to recognize the expense in the appropriate fiscal year in accordance with generally accepted accounting principles. Procedures to support a reimbursement without receipt If an itemized receipt or packing slip is lost or destroyed, then proof of payment and an affidavit of lost receipt are required for reimbursement. An example of proof of payment is a non-itemized receipt, credit card statement, or copy of a cashed check. An affidavit of lost receipt is used in lieu of an itemized receipt and states the purchases are in accordance with University policy. The affidavit must be approved by an authorized user. If a person has submitted five affidavits during a fiscal year, their Area Vice President or Dean will be required to approve all subsequent affidavits during that fiscal year. The affidavit form can be found on the Controller s Office website. 2.5 Travel Expense Reports Definition of a Travel Expense Report A Travel Expense Report (TER) is a form used for the reimbursement process that is specific to expenses paid by the employee for business travel. Procedures to submit a TER Travel expense reimbursement may be requested by submitting an approved TER to the Controller s Office. The TER must be completed in the following manner: The first section of the TER includes the traveler s SU ID number, legal name, an address (if not direct deposited), the purpose of travel and the dates of travel. The traveler must complete the Detail of Travel Expenses table that includes individual dates of travel and the reimbursement amount per account on the specified day. The TER must include the calculated total for each account line as well as a final expense total. If there was an advance involved with the travel, the traveler must include the amount of the advance and subtract that amount from the total expense incurred on the TER. If the number is positive, the traveler should include the amount in the balance due employee box. If the number is negative, the traveler should include it in the balance due Seattle University box along with a check payable to Seattle University when submitting the TER. Do not send the money through the mail or drop it off in the basket at the front desk of the Controller s Office. If the traveler is paying the University, the completed TER should be provided directly to an employee of the Controller s Office such as the cashiers at the front desk or a member of Accounts Payable. The Controller s Office will count the money in front of the traveler and provide a receipt. The Controller s Office is not responsible for money lost in the mail or money that was dropped off in the front basket. To receive payment on a reimbursement, the traveler must complete the preferred handling instructions of the TER. 14

The TER must be signed by an authorized person. The approver must appear on the Expenditure Authorization list for the budget being charged. Both the printed name and signature must appear on the requisition form. The budget number on the TER represents the cost center that will be charged. This budget number must have available funds to cover the travel. Once the TER has been completed, staple the itemized receipts, bills and other relevant documentation to the back of the TER. Paper clips are not a secure way to bind paperwork as they tend to come loose in the mail. If there are several receipts, it is recommended to put them in an envelope and staple the envelope to the travel expense form. For reimbursements with a large quantity of receipts, it is recommended to provide an Excel spreadsheet detailing each expense. This is encouraged as it will expedite the reimbursement process. Incomplete reimbursements will be held until Accounts Payable receives the proper information or sent back to the person responsible to complete. Prepaid items such as airfare and hotel rooms can be reimbursed immediately once the items are paid by the employee. Travel expenses must be submitted within 60 days after the travel has ended. If the TER is received by the Controller s Office after 60 days, the University reserves the right to not reimburse the expense. The exception to the 60 day rule is when travel ends between May 15 th and June 30 th. In this situation, expenses must be submitted before July 15 th. This policy allows the University to recognize the expense in the appropriate fiscal year in accordance with generally accepted accounting principles. Additionally, timely reporting of expenses for travel ensures that the Accounts Payable department as well as the University budget managers operates efficiently. If an itemized receipt or packing slip is lost or destroyed, the traveler should submit proof of payment and complete an Affidavit of Lost Receipt form (see discussion under 2.4 Reimbursements). An example of proof of payment is a non-itemized receipt, credit card statement or copy of a cashed check. 2.6 Travel Advances Definition of a travel advance A travel advance is used to provide an employee with funds to pay for estimated future travel expenses that the traveler has not yet paid. Funds will be direct deposited into the employee s bank account before the travel occurs. Procedures to receive a travel advance To obtain a travel advance, the employee must complete the Travel Advance form and submit it at least seven business days prior to travel. This form should be completed as follows: 1. The employee should read over the policies listed on the form to ensure the travel conforms to the requirements and required deadlines. 15

2. The employee must print their name and provide their signature to acknowledge the requirements. 3. The relevant information must be completed including the SU ID number, the destination, the purpose and the dates of travel. 4. The employee must complete an estimated break down of expenses and a budget number. 5. The final step before submitting it to the Controller s Office is to have an authorized person approve the travel advance. The approver must appear on the Expenditure Authorization list for the budget being charged. Both the printed name and signature must appear on the requisition form. The travel advance form should be submitted to the Controller s Office and incomplete requests will be held until Accounts Payable receives the proper information or sent back to the person responsible. After the travel advance has arrived to Accounts Payable, it will receive a final review and, if accepted, an email will be sent to the recipient detailing the travel, dates, the amount and the due date of the advance reconciliation. The minimum amount for an advance is $200. Travel advances are only issued to active University employees with no outstanding travel advances. Travel advances cannot be direct deposited any earlier than five business days prior to travel. Procedures to reconcile a travel advance Within 10 business days following the last day of travel, advances must be reconciled to actual expenses incurred on the trip. To begin the reconciliation, the Travel Expense Report (TER) must be completed and travel expenses must adhere to University Policy (see section 1.1 Business Travel Expense for further information). On the bottom of the TER, the employee must document the total amount of the travel advance in the advance field. The difference between the actual expenses paid and the advance will dictate whether money is owed to the University or the University owes money to the employee. If money is owed to the University, the employee should provide cash or a check directly to an employee in the Controller s Office. The Controller s Office will count the money in front of the employee and provide a receipt. The employee should not send the money through the mail or drop it off in the basket at the front desk of the Controller s Office. The Controller s Office is not responsible for money lost in the mail or money dropped off in the front basket. Any advance that is not properly reconciled to the actual expenditures on a timely basis will be included as income in the recipient s annual W-2 form. These funds would then be subject to income tax withholding, Social Security, Medicare and federal unemployment taxes. Advances for student activities There are situations where students may also receive an advance relating to student activities such as clubs and related travel. These student advances follow the same procedures and requirements discussed above for travel advances; however, they have the following differences: 1. The dollar range of the student advance will be issued between $200 and $500. 16

2. The student advance must be approved by an authorized person from Student Activities. 3. Student advances may only be issued to active students and will not be issued to a student who has an outstanding advance. 4. The student advance may only be issued from club funds (fund 82 and fund 84). 2.7 Moving Expense Reimbursement Form Submitting a Moving Expense Reimbursement form The employee must complete a Moving Expense Reimbursement Form to be reimbursed for qualified expenses (see section 1.7 Moving Expenses to see qualified expenses). All expenses will require proof of payment and original itemized receipts. The form must be approved by the department or college. The form and supporting documentation then is submitted to the Controller s Office where the expenses will be reviewed to ensure the expenses follow the University s policies. After submission of the completed documentation to the Controller s Office, please allow five business days for the payment to be processed. 2.8 University Procurement Card The University procurement card or procard is a credit card that University employees can apply for to make University purchases. After the purchases, the University directly pays the credit card bill. This is the preferred method by the University for most purchases as it very efficient for the Controller s Office and the user of the procard. More information the procard can be found on the procurment card website. 2.9 Wire Transfers Definition of a wire transfer A wire transfer is a way to transfer funds electronically to pay vendors. The University most frequently utilizes wire transfers for vendors outside the United States. Procedures to request a wire transfer There are two ways to request a wire transfer. The first is to submit an invoice with a note stating the payment needs to be wired as well as wire instructions from the company on where the money will be sent. The other way to request a wire transfer is by completing the wire transfer form that is available on the Controller s Office website. The required supporting documentation is an invoice that details the purchase. Refer to section 2.3 Invoice Processing of this manual or the Controller Office website to see what is required to process an invoice since the same procedures and requirements apply to wire transfers. If the invoice is not in English, a translation is required. Once the wire transfer is received by the Controller s Office, it takes approximately five business days for the vendor to receive the funds. 17

The bank charges a $35 fee for each processed wire transfer. This fee is charged to the department s budget that requested the wire. The exchange rate used on the wire will vary and as such, it is recommended that the department review the transaction in SUDDS for the final transaction amount. 2.10 Preferred Vendors The University has preferred accounts set up with certain vendors. The preferred vendor usually has better pricing and invoices can be billed directly to the school. The list of vendors and how to place orders are below: Amazon: See University Procurement website for ordering instructions. Almost all items available on their website can be ordered through Procurement and delivered to the office in two to four business days. Bon Appétit: This is the required vendor for all on-campus catering. The departmental budget managers are the appropriate contact to place an order. Costco: See University Procurement website for ordering instructions. Not all items available instore are on the website. Items will arrive at your office two business days after ordering. To see what is available, visit the Costco Business website. OfficeMax: The University has an account set up where users can buy items from their website and the purchase will be automatically charged to the department s budget. To be set up with an account, contact Procurement. Most items are delivered within two business days. Silver Cloud: Departments can setup an account with Silver Cloud through the University s Procurement department and receive preferred pricing for University guests. Once an account is setup, invoices for the booked hotel rooms will be mailed directly to the department which expedites the invoice paying process. 3.0 Frequently Asked Questions How long does it take to process payment requests for reimbursements, travel expenses or vendor invoices? Allow five business days from the time the reimbursement requisition, travel expense report or invoice arrives at the Controller s Office for processing. However, if there are errors or the documentation is not well organized, the payment may be delayed. Allow extra time for processing foreign travel as these are more complicated than other reimbursements. How often are checks printed and direct deposits processed? Checks are printed three times a week and direct deposits are run twice per week. The schedule is as follows: Day Monday Tuesday Wednesday Thursday Friday Type Checks Direct Deposits Checks Direct Deposits Checks 18

When do reimbursement expenses and travel expenses need to be turned in? Reimbursement expenses and travel expenses must be submitted to the Controller s Office within 60 days of when the expense was incurred or within 60 days after the travel ended. If turned in after 60 days, Accounts Payable reserves the right not to reimburse the expenses. The exception to the 60 day rule is when an expense occurs between May 15 th and June 30 th. In this situation, expenses must be submitted before July 15 th. To further illustrate this timeline, see the following expenses: Example 1 - A business dinner is held on August 1 st. The receipt must be turned into AP for reimbursement on or before September 30 th. Example 2 - A business trip is taken from July 20 th until August 1 st. All expenses incurred on the trip must be turned into AP on or before September 30 th. Example 3 - A business dinner is held on June 29 th. The receipt must be turned into AP for reimbursement on or before July 15 th. This policy allows the University to recognize the expense in the appropriate fiscal year in accordance with generally accepted accounting principles. Additionally, timely reporting of expenses for reimbursements provides efficiencies for the Accounts Payable department as well as the University budget managers. How is a travel advance different from the travel expense? A travel advance is used to provide an employee with funds to pay for estimated future travel expenses that the traveler has not paid. A travel advance must also be reconciled to the actual expense incurred on the trip within 10 business days of returning. On the other hand, travel expenses are expenses the individual has already paid for and now needs to be reimbursed. Do all payment requests require approvals and who must approve the requests? All payment requests require an approval. The approver certifies that the request had a valid business purpose. The approver will also be responsible for discrepancies if picked for audit by external agencies. The approver must appear on the Expenditure Authorization list for the budget being charged. Both the printed name and signature must appear on the requisition form. If my business trip takes place between two fiscal years (i.e. traveling over 6/30), which fiscal year will be charged for this trip? For travel that takes place over two fiscal years, Accounts Payable will charge the entire amount where the majority of the travel takes place. If the trip is a perfect 50/50 split between fiscal years, the total cost will be split evenly in each fiscal year. How is international travel handled? Employees should follow the same guidance as for domestic travel. When converting between a foreign currency and US dollars, there are a couple ways that are acceptable. For short travel, it is best to 19

convert expenses to US dollars on a daily basis. For longer travel, it is acceptable to take the exchange rate at the start of travel and at the end of travel and take the average of the two rates. Will I be reimbursed for tipping at a restaurant? A gratuity is reimbursable; however, the maximum allowable tip is 20%. Anything more will be subtracted from the submitted reimbursement. Gratuity and service fees added by a restaurant are counted toward the tip. When I am on a business trip, will I be reimbursed for incidental expenses? Incidental expenses are miscellaneous expenses incurred while traveling for University business. Examples of incidental expenses include laundry, metered parking, local bus fare and reasonable tips for housekeeping. The University will reimburse the employee for the actual reasonable incidental expenses if receipts are provided or will reimburse the individual $3.00 per day without receipts. How can I make purchases from the University s OfficeMax account? The University has an account with OfficeMax and each department can order anything they can find on its website. Shipping usually takes one to two business days and arrives directly at your office. To order, contact your area s budget manager or the person who approves your reimbursement requisitions. They should be able to order the items for you or they will know the person who can. More information can be found on the Procurement Office website. Are cell phone and tablet expenses reimbursable? Some cell phone and tablet expenses may be reimbursable. Information about cell phones and tablets can be found on the Controller s Office website. What is the University procurement card and how can I apply for it? The University procurement card or procard is a credit card that University employees can apply for to make University purchases. After the purchases, the University directly pays the credit card bill. For information on procurement cards, visit the procard website. How do I submit a request for payment of a donation? The backup requirement for a donation is a letter explaining the reason for the donation, which should be written by the person most familiar with it. An extra copy of this letter should be included when it is submitted for payment so Accounts Payable may send it with the check. How do I request that a copy of an invoice be sent with payment to the vendor? If a copy of the invoice is required to accompany the check, make a copy of the invoice and paper clip it to the original invoice. This is Accounts Payable s way of understanding a copy of the invoice is required when mailing the payment. Do not staple the extra copy or it may be missed when the checks are assembled. 20