Shenandoah University

Travel & Entertainment Expense Policy

 

 

 

 

Replacement of Policy:    Travel Reimbursement Policy amended May 21, 1998

 

Proposed by:                     Comptroller

 

Approved by:                    President and the Vice-President for Administration & Finance

 

Effective date:                    July 1, 2001           

 

Amendment date(s):

 

 

 

 

Part I.   Purpose

 

To establish guidelines for expenses incurred in the course of University business and procedures for reimbursement of those expenses.

 

Part II.  Scope

 

This policy applies to all employees and other persons seeking reimbursement from Shenandoah University for travel and entertainment expenditures, including independent contractors, guest lecturers, and prospective employees.

 

Part III.  General

 

It is the policy of Shenandoah University to reimburse employees and non-employees for approved, necessary, and reasonable travel expenses incurred while conducting business for the University including, but not limited to, meals, lodging, transportation, telephone service, tolls, parking, gratuities, and registration fees.  An individual’s expenses while traveling on official business are expected to be reasonable with respect to the area traveled.  Travel costs are to be allocated and expended within established budgetary limitations. Travelers are not to make commitments to travel or to incur travel expenses without first obtaining the appropriate departmental approvals.

 

Entertainment expenses must be expenditures essential to the transaction of University business to be reimbursable.  The Internal Revenue Code requires that specific details for entertainment expenses be documented.  These requirements are outlined in Part V, Section G of this policy.

 

Actual amounts expended are not justification for reimbursement; expenses must meet the test for reasonableness.  The Office of the Comptroller may compare any reimbursement to a reasonable allowance and excessive charges may not be reimbursed. 

 

The travel and business expense reimbursement policy and coordination thereof is the responsibility of the Comptroller.  The President and Vice-President for Administration & Finance must approve any amendments to this policy.

 

Part IV.  Approvals and Responsibilities

 

Individuals have the responsibility to perform their travel and entertainment duties in conformity with the provisions of this policy, and to present receipts and/or documentation that are legitimate and complete to support their business expense reimbursement claims.  Part V, Reimbursable Expenses, of this policy outlines the supporting documentation that is required for the types of business expenses incurred.  A Travel & Entertainment Expense Form or a Business Mileage Log Form must be completed to request reimbursement for business expenses. 

 

The approving officials, Budget Officers, Deans, and/or Vice-Presidents, have the responsibility to review and monitor all travel and entertainment expenses that they approve.  Such approval will certify that the travel was necessary and the expenses were incurred while on official business for the University.  The routing procedures for approvals are as follows:

 

1.      Reimbursement requests originated by faculty members or staff personnel in the academic area need approvals from the Budget Officer and the Dean of the respective school unless the Dean has filed a statement with the Comptroller that his/her signature is not required.

2.      Reimbursement requests submitted by staff personnel in the administrative area need approvals from the Budget Officer and the Vice-President of the respective area unless the Vice-President has filed a statement with the Comptroller that his/her signature is not required.

 

The Office of the Comptroller has the responsibility to administer and oversee the provisions of this policy, and to provide guidance to travelers.  The completed and approved Travel & Entertainment Expense Form with the receipts and/or other supporting documentation or the Business Mileage Log Form must be forwarded to the Accounts Payable Office to obtain the final approval for the reimbursement request from the Office of the Comptroller.

 

Approved reimbursements will be made on the next scheduled check disbursement date.  The Accounts Payable Office will publish a calendar annually for the University that outlines the check request cutoff dates for departments and the check disbursement dates.  The calendar will be available on the Business Office web site in addition to being sent to all departments via email.  All checks will be mailed to the address on the completed form unless the individual has requested on the form that he/she will pick up the check from the Business Office on the next check disbursement date.

 

Part V.  Reimbursable Expenses

 

A.  General

 

All claims from an individual for reimbursement of travel or entertainment expenses incurred on official business of the University must be made on the Travel & Entertainment Expense Form unless the reimbursement request is for personal automobile mileage only.  Personal automobile mileage reimbursement may be requested on the Business Mileage Log Form.  Original itemized receipts, unless otherwise noted in the sections below, must accompany the Travel & Entertainment Expense Form along with the applicable detailed information for each allowable expense.  Cancelled checks, credit card receipts except for meals, credit card statements, facsimiles, photocopies, or carbon copies are not acceptable receipts.  An exception will be made in accepting cancelled checks or credit card receipts/statements as proof of payment if a bill from the payee is provided showing the details of the expenditure.

 

The reimbursement request should be presented for payment within thirty (30) days after completion of the trip or expenditure unless extenuating circumstances exist that would make this an impracticable request.   Details of these circumstances must accompany the Travel & Entertainment Expense Form for review by the Office of the Comptroller.  In the case of continuous travel, the reimbursement request is due within thirty (30) days of the last day of travel for which reimbursement is requested, i.e. instructors supervising student teachers or teaching courses off-campus should request reimbursement within 30 days of the last day of each trimester unless it is the end of the fiscal year. Requests for reimbursement for expenses during the fiscal year may not be honored if submitted more than 15 days after the close of that fiscal year which ends on June 30th.

 

All claims for foreign travel expenses must be converted to U.S. dollars.  The conversion rate and computation, as well as the source used to verify the rate (e.g. Wall Street Journal or Credit Card Statement), must be attached to the Travel & Entertainment Expense Form.  The University will accept the exchange rate at the time and location that the person makes the exchange instead of the exchange rate at the time and location of the actual expenses.

 

Travel expenses are not allowed for a spouse, dependent, or other individual who accompanies the traveler on a business trip unless such person is an employee or business associate, the travel of such person serves a bona fide business purpose, and the expenses of such person are allowable per the provisions of this policy.  For a bona fide business purpose to exist, the traveler must prove a real business purpose for the individual’s presence.  Incidental services, such as typing notes or assisting in entertaining customers, are not enough to warrant the claim for reimbursable expenses. The traveler is responsible for allocating only his/her portion of the expenses on the Travel & Entertainment Expense Form and for identifying them on the hotel, restaurant, transportation and other receipts.

 

B.  Transportation

 

Air travel accommodations must be made at the lowest convenient fare.  Air carrier selection should not be based solely on a traveler’s frequent flyer affiliation.  Often significant savings on airfare will result from booking a flight with a Saturday stayover.  It is University policy to authorize Saturday stayovers to the extent that resulting savings in airfare are greater than the additional costs incurred for hotel, meals, etc.  The traveler may purchase tickets with his/her own funds and submit the airline ticket receipt with the approved Travel & Entertainment Expense Form for reimbursement or submit a Requisition for the University to issue a Purchase Order to the travel agency (see the Requisition and Purchasing Policy). In the event a purchased ticket by the University is not used, the ticket must be returned to the Accounts Payable Office as soon as possible so a refund can be requested from the vendor. 

 

The least expensive mode of ground transportation to reach the destination should be taken, considering time and availability.  Many hotels offer complimentary shuttle service, which should be used when available.  The cost of taxis to and from places of business, hotels, or airports in connection with University activities is reimbursable only when more economical modes of transportation are not available.   Automobile rentals should be limited to situations where other means of transportation are not practical, economical, or available, and to emergency situations.  The most economical car should be used as a general rule. The University carries both liability and collision insurance, so the renter should decline any insurance offered by the rental agency for domestic travel.  Travelers renting vehicles in foreign countries should purchase the appropriate insurance and will be reimbursed for all reasonable, necessary and actual insurance premiums.  All employees (faculty, staff and students) must be an approved driver of the University (see the Approved Driver Policy) to be reimbursed for automobile rental expenses.  Travelers may claim reimbursement by completing a Travel & Entertainment Expense Form and attaching all original itemized receipts for ground transportation expenses.  If original itemized receipts cannot be obtained for taxi service, the amount, date, and business purpose for the expenditure must be outlined on the Travel & Entertainment Expense Form with a notation that a receipt was not available. 

 

Reimbursement is provided for parking fees and toll charges incurred while on University business.   Original receipts for expenses greater than $10.00 are required to be attached to the approved Travel & Entertainment Expense Form.  In cases where receipts are not required, the amount, date, and business purpose for the expenditure must be given to substantiate the reimbursement claim.

 

Employees are encouraged to use University owned vehicles while on University business.  Employees utilizing their own vehicles must be insured as required by law.  Personally owned vehicles are only protected for liability to third parties for an employee’s negligent act(s) in the exercise of official University business.  Such liability coverage is secondary to the named insured’s personal auto policy. Property damage to an employee’s personal automobile is not covered for collision or other than collision by the University’s vehicle insurance coverage.  All employees must be an approved driver of the University (see the Approved Driver Policy) to be reimbursed for personal vehicle mileage or drive an University vehicle.  The use of a personal vehicle will be reimbursed for actual mileage at the current IRS deductible mileage rate.  The current IRS mileage rate will be published on the Business Office web site.   This rate is intended to cover all transportation and operating costs including gasoline expenses.  Fines for automobile violations or personal misconduct will not be reimbursed.  The reimbursement request must include “from” and “to” disclosures as well as the miles driven, travel date(s), travel purpose, mileage rate, and reimbursable amount.  Commuting to and from work for any reason is not reimbursable.  Non-commuting travel expenses may be reimbursed when individuals must travel on official business in the local area, i.e. trips between University campuses or to other locations in the vicinity to attend meetings, to deliver paperwork, etc. If an employee commutes to a temporary work location as defined by the IRS, mileage may be reimbursable.  When travelers depart from home or some other non-work location, the mileage reimbursement allowed is calculated using the mileage distance from the actual departure point to destination, or the distance from the normal work place to destination, whichever is less.

 

C. Lodging

 

Travelers should use standard accommodations at reasonably priced commercial class hotels and motels when making reservations.  Seminars and conferences often offer favorable rates at particular hotels for attendees, and employees attending conferences at specific hotels should request a room at the minimum rate offered.  The University will pay only the single rate at hotels unless a larger room is shared with another employee on University business or special circumstances warrant a larger room or a suite of rooms.

Documentation of such situations should be stated on the hotel receipt.  Expanded accommodations for family members and/or guests are the responsibility of the employee and are non-reimbursable.

 

Lodging reservations can be made in one of three ways:

1.      The traveler may make the reservations and pay the lodging bill with his/her own funds and submit the original itemized receipt with the approved Travel & Entertainment Expense Form for reimbursement.

2.      The traveler may submit a Requisition for the University to issue a Purchase Order to the lodging facility (see the Requisition and Purchasing Policy) if the vendor will accept Purchase Orders.  The University will pay the vendor after the trip upon receipt of the invoice from the vendor and the receiving copy of the Purchase Order and/or lodging receipt from the traveler. 

3.      The traveler may submit a Requisition for the University to issue a check to the lodging facility when Purchase Orders are not accepted.  An invoice from the vendor must be attached to the Requisition to substantiate the amount of the disbursement.  After the trip, the traveler must submit the lodging receipt of the actual charges to the Accounts Payable Office.

 

D.  Meals

          

Reasonable expenses incurred for business meals while on a University business trip will be reimbursed.  Reimbursement will be made for actual costs including gratuities.  Original receipts are requested for all expenditures, but are required for any meal expenditure over $25.00.  A restaurant receipt indicating the name and location of the restaurant, date, amount of expenditure, number of people served, and separate charges for items other than meal & beverages (such as tips) is sufficient to support expenditures for a business meal.  Original credit card receipts may be used to claim reimbursement for meals.  In cases where receipts are not required, the amount of the expenditure, date, number of people served, and the nature of the business trip must be given to substantiate the reimbursement claim. To claim a reimbursement for meals, the required receipts and substantiation information must be attached to an approved Travel & Entertainment Expense Form.

 

Federal regulations prohibit the University from reimbursing any expenditure for alcoholic beverages with federal funds.  Reimbursement for alcoholic beverages from nonfederal funds will be reimbursed as part of a meal as long as the charge and amount consumed is reasonable. 

 

Employees may request a temporary cash advance for meals for athletic team members or student groups who are traveling.  When the employee advances the cash to the students to pay for their own meals, individual receipts will not be required. The employee is required to submit a Student Meal Allotment Form denoting the names and amounts disbursed per student.  Each student must sign the Student Meal Allotment Form as documentation for such a cash disbursement.  The date(s) and nature of the trip along with the # of meals provided to the students is also required on the Student Meal Allotment Form.

 

E.  Registration Fees

 

Payment of conference, meeting or college fair registration fees may be handled in one of the following ways:

1.      The traveler may complete the registration form and send it with his/her own funds and submit a paid receipt and a copy of the registration form with the approved Travel & Entertainment Expense Form for reimbursement.

2.        The traveler may submit a Requisition for the University to issue a Purchase Order to the vendor (see the Requisition and Purchasing Policy) if the vendor will accept Purchase Orders and the registration needs to be confirmed before the next check disbursement date.  The original completed registration form needs to be attached to the Requisition so that it can be mailed with the Purchase Order. The University will pay the vendor after the conference upon receipt of the invoice from the vendor and the receiving copy of the Purchase Order from the traveler.

3.      The traveler may submit a Requisition for the University to issue a check to the vendor.  The original completed registration form stating the applicable fee(s) must be attached to the Requisition to substantiate the check disbursement.  The registration form will be mailed to the vendor with the check on the next scheduled check disbursement date.  If the conference is cancelled or the employee cannot attend after payment has been made, the traveler must notify the Accounts Payable Office as soon as possible so a refund can be requested from the vendor.  

 

F.  Other Incidental Travel Expenses

  

Miscellaneous business expenses associated with travel are reimbursable.  Examples of allowable miscellaneous expenses include:  needed work supplies purchased on an emergency basis, business telephone calls, data transmission charges, passport and visa expenses, reasonable gratuities.  One personal phone call is allowable for reimbursement at any time during an overnight travel period.  Original itemized receipts are required to be attached to the approved Travel & Entertainment Expense Form for all miscellaneous expenses except for gratuities.  A reimbursement claim for gratuities must indicate the date, amount, and description of the expenditure, i.e. porter, bellhop. 

 

G.  Professional Entertainment Expenses

   

Expenses for entertainment of donors, guests, employees, customers, prospective customers and employees, suppliers, and other business associates must be ordinary and necessary. In addition, the entertainment expenses must be either directly related to or associated with the active conduct of business. To be directly related, the entertainment cost must involve an active discussion aimed at the expectation of obtaining a specific business benefit.  The discussion must occur in a clear business setting or during the entertainment.  If the activity directly precedes or follows a substantial bona fide business discussion and the employee can show a clear business purpose for incurring the cost, the expense can be classified as associated with the active conduct of business.  To claim reimbursement for entertainment expenses, original itemized receipts (see the exception for meals in Part V, Section D above) must be attached to the approved Travel & Entertainment Expense Form with the following information documented:

1.      Time, place and nature of the entertainment

2.      Amount of each expense

3.      A description of the business purpose involved

4.      Business relationship of the persons entertained along with their names

 

H.  Moving Expenses 

  

The University may reimburse newly appointed faculty and staff members for a portion of the costs in moving.  Reimbursement is intended to help such new employees with the cost of physical removal of family and personal effects from their residence at the time of appointment, to their new residence. Arrangements with respect to moving expenses will be detailed in the appointment letter, which will serve as authority for payment of moving expenses.  An employee must meet the IRS distance test, length of employment test, commencement-of-work test and incur the expenses within one year from the time he/she first reports to work to be eligible for a moving expense reimbursement.  Moving expenses are limited to the cost of (1) transportation of household goods and personal effects and (2) travel (including lodging but not meals) to the new residence. Where an automobile is used to make the move, an employee may get reimbursed for either (1) actual out-of-pocket expenses incurred (gasoline and oil, but not repairs, depreciation, etc.) or (2) IRS standard mileage allowance for moving expenses.  To claim reimbursement all original itemized receipts must be attached to the approved Travel & Entertainment Expense Form.  A Purchase Order may be issued to the moving company for the cost of transporting the employee’s household goods and personal effects once a Requisition has been approved (see the Requisition and Purchasing Policy).  In addition to the approvals as outlined in Part IV, the Director of Personnel’s signature is required on the Requisition or the Travel & Entertainment Expense Form.   

 

Part VI.  Non-reimbursable Expenses includes but not limited to:

 

1.      Business expenses not substantiated by original receipts/documentation as required by the University

2.      Excessive transportation, meal and lodging charges

3.      Personal telephone calls except for one call for an overnight stay

4.      Insurance on rental cars for domestic travel

5.      Gasoline costs for personal vehicles

6.      Dry cleaning or laundry service unless approved for required extended stays

7.      Lost or stolen articles

8.      Excessive alcohol charges

9.      Damage to personal vehicles, clothing or other items

10.  Services to gain entry to locked vehicles

11.  Towing charges

12.  Personal entertainment including movies charged to lodging bills

13.  Expenses for spouses, dependents, and other non-business companions unless conditions exist as outlined in Part V, Section A

14.  Commuting expenses

15.  Traffic and parking violations

 

Part VII.  Temporary Travel Advances

 

The University will make, when necessary, temporary travel advances to employees traveling on official business for out-of-pocket cash requirements.  Travel advances should not be requested for expenses that can be handled through the purchase order system, i.e. airfare, lodging, registration fees.

 

A completed and approved Requisition must be submitted to the Accounts Payable Office to request a travel advance.  The Requisition must detail the date and nature of the trip and a listing of the anticipated expenses.  Travel advances will not be released until the check disbursement date before the travel is to begin.  After each trip, a Travel & Entertainment Expense Form must be completed within one week to substantiate the expenses incurred unless extenuating circumstances exist that would make this an impracticable request. Details of these circumstances must accompany the Travel & Entertainment Expense Form for review by the Office of the Comptroller. If a trip is cancelled after an advance is received, the advance should be repaid in full to the Business Office as soon as possible after the cancellation.

 

All previous travel advances must be settled before a new travel advance will be approved. The Office of the Comptroller reserves the right to deny anyone a travel advance that has not followed the designated time schedules for reconciling prior travel advances.  If the travel advance is not reconciled in a reasonable time period, the University may withhold the advance loan amount from the employee’s payroll check. 

 

 

Exhibits:

 

Requisition

Travel & Entertainment Expense Form

Business Mileage Log Form

Student Meal Allotment Form