T

1
T E Training

• Survey of UC Policies Procedures
• Practical Applications at UCSB
• FALL 2006

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SCOPE

• This presentation outlines
• UCs Business and Finance Bulletins
• G-28, Policy and Regulations Governing Travel
• G-28, Travel Policy Summary
• G-13 - Policy Regulations Governing Moving
  Relocation
• BUS-79, Expenditures for Entertainment, Business
  Meetings, and Other Occasions
• Click on hyperlinked text to see relevant
  sections of policy and procedure, tables, forms,
  etc.

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AUDIT FINDINGS

• Inability to Track Travel Cost and advances by
  Individual Trip
• Exceptional Travel Expense not adequately
  justified
• Frequency of UC Employee Only Meals
• Incomplete or Missing Documentation
• Delegation of Authority for Exceptions unclear
• Inadequate Documentation of Business Purpose
• Use of Per Diem in Lieu of Actual Meal Expenses
• Failure to Use Entertainment Form for Recharge
  Activities
• Lavish Entertainment Expense under the
  Circumstances
• Alcoholic Beverages Charge to Inappropriate Fund
  Source
• Incomplete Guest List
• Inappropriate Assignment of Official Host
• Self or Subordinate Approval of Expenses
• Expense with the Appearance of a Personal Nature

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I. REFERENCES Travel

• ACADEMIC PERSONNEL MANUAL
• Scholarly Meetings
• Field Research
• Appointees to Visiting Titles
• Recruitment
• Leaves of Absence/Sabbatical

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I. REFERENCES Travel

• ACCOUNTING MANUAL
• Transient Occupancy Taxes
• Federal Taxation of Aliens
• Taxation of Scholarship and Fellowship Grants and
  Education Assistance
• BUSINESS FINANCE BULLETINS (BFB)
• Entertainment
• Policy Regs on Moving and Relocation

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REFERENCES Travel

• U.S. DEPARTMENT OF STATE
• Per Diem Rates and Maximum Allowances
• The University uses the Federal rates
• See link to Federal tables at link
• INTERNAL REVENUE SERVICE
• Documentation, Substantiation Standards
• Electronic records and retention rules
• Itemized, original receipts

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II. DEFINITIONS Travel

• Business Purpose activities that contribute to
  any of the Universitys major functions of
  teaching, research or public service
• MIE Reimbursement Cap the maximum for daily
  meal and incidental expenses for CONUS
  (continental U.S.) travel of less than 30 days
  not a per diem as only actual expenses are
  reimbursable

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II. DEFINITIONS Travel

• Per Diem the daily subsistence allowance
  authorized by Federal CONUS, OCONUS Foreign
  location tables
• Requires no receipts
• Authorized for
• foreign travel,
• OCONUS (Alaska, Hawaii, U.S. possessions) travel,
• domestic travel assignments of 30 days or more,
• domestic travel assignments exceeding one year
• Consists of lodging and MIE
• MIE includes fees, tips, local transportation,
  mailing costs
• Taxes on lodging not included, reimbursed
  separately
• Per Diem also a reimbursement CAP for actual
  MI (cap is highest domestic CONUS (continental
  U.S.) per diem rate)
• Less then 30 days up to 100 of cap for actual
  MIE, excluding lodging
• 30 days or more up to 55 of cap for actual MIE
  and actual lodging

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II. DEFINITIONS Travel

• Reporting Period the 21 day period within which
  a Travel Expense Voucher must be submitted
• Travel Expense those that are ordinary and
  necessary to accomplish business purpose
• Travel Status period during which traveler is
  on official University business is outside
  vicinity of headquarters or residence

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III. UNIVERSITY TRAVEL POLICY

• SCOPE
• applies to all official University travel even
  if Federally funded
• extramural terms govern only if more
  restrictive than UC policy
• campuses may adopt more restrictive procedures
• AUTHORITIES
• this Bulletin is issued under a Presidential
  delegation to Senior Vice PresidentBusiness and
  Finance
• implementing regulations delegated to
  Vice-PresidentFinancial Management

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III. UNIVERSITY TRAVEL POLICY

• POLICY all official UC travel
• shall be properly authorized, reported and
  reimbursed in accordance with this Bulletin (BFB
  G-28)
• shall not include personal expenses, even if only
  temporarily funded
• shall conform to normally accepted standards of
  propriety
• shall be reported in a responsible and ethical
  manner

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III. UNIVERSITY TRAVEL POLICY

• POLICY IRS conformity
• Reimbursement procedures designed to conform to
  IRS substantiation rules
• Travel expenses considered by the IRS to be
  taxable income to the traveler are not
  reimbursable except for the following
• Expenses for travel in excess of one year
• Certain travel expenses under BFB G-13,Policy and
  Regulations Governing Moving and Relocations

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III. UNIVERSITY TRAVEL POLICY

• EXCEPTIONS to this policy
• May be authorized by the Chancellor or his
  designee
• May be granted under extenuating circumstances
  which must be documented and deemed ordinary and
  necessary under the circumstances

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IV. APPROVAL OF TRAVEL

• Must be impartial
• Traveler cannot approve own reimbursement
• Employee shall not approve travel expenses of
  individual
• To whom he/she reports direct or indirectly
• Near relative

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V. PAYMENT OF TRAVEL

• PREPAID EXPENSES AND DIRECT CHARGES billed
  directly to University
• Transportation tickets, conference fees
• Lodging, meals, other subsistence expenses (MIE)
  CANNOT be billed directly traveler must pay and
  submit claim for reimbursement
• Exceptions group subsistence expenses, students,
  prospective employees (once hired, lodging and
  MIE cannot be prepaid for 2nd interview,
  relocation, house hunting)

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V. PAYMENT OF TRAVEL

• CORPORATE TRAVEL CARDS UCSBs program with US
  Bank participation encouraged but not required
  by all units
• Use for all expenses related to official travel
• Cardholders responsible for charges, payments
• Late fee charges not reimbursed
• Delinquencies may result in cancellation
• Cardholders must use it for advances, if eligible
• Must be relinquished to department upon
  termination

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V. PAYMENT OF TRAVEL

• CASH/NON-CASH ADVANCES Eligibility
• If traveler not eligible for corporate card or
  not yet obtained one
• Corporate card expenses due before completion of
  trip
• Special handling foreign travel, group
  athletics, student groups, etc.
• Advance fees are reimbursable if obtained on
  corporate card for official University travel

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V. PAYMENT OF TRAVEL

• CASH/NON-CASH ADVANCES Issuance
• Must be issued within 30 days of incurring
  expense
• Should not be authorized if
• Traveler is 30 days delinquent in substantiating
  prior trip
• Travelers Corporate Card is delinquent
• Travelers Corporate Card is lost (report
  immediately)
• Should have only one cash advance at a time per
  trip
• Documentation requirement must submit Travel
  Expense Voucher even if due no additional amount
• zero-out voucher has same documentation
  requirements as regular voucher must also list
  advance must attach check if due UC
• Cancelled or Postponed Trips
• Un-recovered Advances taxable after 120 days

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V. PAYMENT OF TRAVEL

• PAYMENT OF EXPENSES ON BEHALF OF OTHERS
  normally not acceptable except for
• Co-travelers sharing a room
• Pre-approved group travel
• CANCELLATION OF RESERVATIONS travelers
  responsibility
• To return refundable deposits to the University
• Losses due to failure to cancel could be borne by
  traveler
• Section XII REPORTING EXPENSES discusses
  completion of the Travel Expense Voucher (TEV)
  and the UC and IRS substantiation and
  documentation requirements

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VI. INSURANCE FOR TRAVELERS

• EMPLOYEES
• Covered 24 hours a day, worldwide while on
  official University business
• Begins when traveler leaves residence or campus,
  whichever occurs last
• Ends when traveler returns to residence or
  campus, whichever occurs first
• VEHICLES see these references for details
• Section VII. TRANSPORTATION EXPENSES various
  discussions under AUTOMOBILE
• Link to dead

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VII. TRANSPORTATION EXPENSES

• Shall be reimbursed based on the most economical
  mode of transportation
• the most commonly traveled route consistent with
  the authorized purpose of the trip
• Exception must be approved by the chancellor
• Employees from same organizational unit planning
  on traveling together should consider the risk
  and impact of accident

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VII. TRANSPORTATION EXPENSES

• GENERAL refer to text for details about these
  covered topics
• Definition
• Transportation Tickets
• Lost Tickets
• Allowable Mileage Expense
• Surface Transportation Used in Lieu of Air Travel
• Indirect or Interrupted Itineraries
• Travel Extended to Save Cost

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VII. TRANSPORTATION EXPENSES

• AIR TRAVEL refer to text for details about
  these covered topics
• Commercial Airlines Coach class, Business or
  First Class, U.S. Flag Air Carriers for travel
  reimbursed from federal grants and contracts
• Private Aircraft
• Chartered Aircraft
• gtgtUCSB has arrangement with UCLA Travel Office
  for both YCAL and regular air travel reservations
• billing is via inter-campus recharge
• do not expense on voucher
• disclose in comment boxes on voucher

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VII. TRANSPORTATION EXPENSES

• AUTOMOBILE
• Private vehicle is permitted if less expensive
  than renting a car or alternative modes,
  or if it saves time
• 300 mile-per-day rule IF traveler is authorized
  (automobile the most economical) actual MIE up
  to the daily MIE limit can be reimbursed for
  each 300 miles of travel

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VII. TRANSPORTATION EXPENSES

• AUTOMOBILE refer to text for details about
  these covered topics
• Private Vehicles
• Mileage Reimbursement
• Private Vehicle Used in Lieu of Air Travel
• Fuel, Routine Repairs, and Associated Costs
• Insurance
• Rental Cars
• Authorization to Rent
• Insurance Coverage
• Direct Billing
• Damage to a Rental Vehicle

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VII. TRANSPORTATION EXPENSES

• AUTOMOBILE refer to text for details about
  these covered topics
• Official Vehicles
• University Vehicles
• State of California Pool Cars
• Miscellaneous Automobile-related Expenses
• Ferries, bridges, tunnels or toll roads
• Parking (there are limits on valet parking)

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VII. TRANSPORTATION EXPENSES

• RAIL OR BUS
• SHIP
• OTHER FORMS OF TRANSPORTATION
• Local Public Transportation, Shuttle Service, and
  Taxis
• Motorcycles
• Special Conveyances

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VIII. SUBSISTENCE EXPENSES

• GENERAL
• Lodging and meals and incidental expenses (MIE)
  ordinary and necessary to accomplish University
  business purpose expenses incurred within
  vicinity of workplace or residence not
  reimbursable
• Entertainment Meals are reimbursed in accordance
  with BFB BUS-79, Entertainment

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VIII. SUBSISTENCE EXPENSES

• TRAVEL IN EXCESS OF 24 HOURS (leave last home
  or office, return first office or home)
• Domestic Travel Travel Within the United States
  and Its Possessions
• Travel Assignment of Less then 30 Days
• CONUS (Continental US) Travel only allowed
  actual amounts incurred for lodging and MIE
  lodging expenses require original receipts
  regardless of amounts incurred
• Daily MIE cap (Appendix B) shall not be treated
  as a per diem even though based on the highest
  per diem rate
• OCONUS (Outside Continental US) Travel Alaska,
  Hawaii and US possessions allowed non-foreign
  per diem rates published by Department of Defense
  (Appendix B)

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VIII. SUBSISTENCE EXPENSES

• TRAVEL IN EXCESS OF 24 HOURS
• Domestic Travel
• Long Term Travel Assignment of 30 Days or More
• Daily rate ( monthly lodging MIE / days)
  assumes expenses in one location for 30 days or
  more arising from use of establishments catering
  to long-term travelers
• CONUS Travel per diem of up to 55 based on an
  estimate of actual daily expenses incurred for
  lodging ( rental utilities phone / days) and
  MIE the daily 55 MIE is a cap (Appendix B)
  for the actual daily estimate, not a flat per
  diem rate actual lodging taxes can be
  separately reimbursed as a miscellaneous expense
• OCONUS Travel Alaska, Hawaii and US possessions
  allowed up to 55 of non-foreign per diem rates
  published by Department of Defense (Appendix B)

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VIII. SUBSISTENCE EXPENSES

• TRAVEL IN EXCESS OF 24 HOURS
• Domestic Travel
• Indefinite Travel Assignments that Exceed One
  Year
• IRS one-year applies travel away from home
  lasting more than one year in a single location
  reimbursements must be treated as income subject
  to withholding taxes. Therefore subsistence rate
  may be increased up to 150
• Such assignments are limited to 2 years unless
  Chancellor grants an exception
• See text for details about these covered topics
  indefinite assignment ends prematurely, temporary
  assignment extended, indefinite assignment
  interrupted by trips to former residence or to
  headquarters

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VIII. SUBSISTENCE EXPENSES

• TRAVEL IN EXCESS OF 24 HOURS
• Foreign Travel
• Travel Travel Assignments of Less Than 30 Days
• Reimbursed in accordance with the Federal Maximum
  Travel Per Diem Allowances for Foreign Areas
  published by the Department of State
• Begins upon arrival at foreign destination and
  ends upon departure
• If actual expenses are claimed the circumstances
  must be documented in writing. Amount reimbursed
  may not exceed 300 of locations established
  federal rate.
• See text for details about above covered topics

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VIII. SUBSISTENCE EXPENSES

• TRAVEL IN EXCESS OF 24 HOURS
• Foreign Travel
• Long-Term Travel Assignments of 30 Days or More
• Per diem allowance authorized is up to 55 of
  applicable federal per diem rate (Appendix B) as
  traveler is expected to seek long-term
  accommodations. See domestic for estimating and
  calculating daily rate
• Indefinite Travel Assignments that Exceed One
  Year
• Domestic rules apply, subsistence rate may be
  increased up to 150, must take any annual
  foreign earned income exclusion into account
• See text for details about above covered topics

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VIII. SUBSISTENCE EXPENSES

• TRAVEL IN EXCESS OF 24 HOURS See text for
  details about these additional covered topics
• Adjustment of Per Diem Rates
• Adjustment for multiple locations
• Adjustment for partial days
• Adjustment for subsistence or lodging provided
  without charge
• Use of Non-Commercial Facilities
• Lodging With a Friend or Relative

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VIII. SUBSISTENCE EXPENSES

• TRAVEL OF LESS THAN 24 HOURS
• When trip is 12 hours or less
• Incidental expenses shall not be reimbursed
  except if meal is an integral part of a business
  meeting
• When trip lasts more than 12 hours but less than
  24 hours
• Domestic (CONUS) Travel Actual cost of lodging
  and/or MIE subject to daily maximum in Appendix
  B for MIE
• Foreign and OCONUS Travel Actual cost not to
  exceed federal per diem rate (Appendix B). For
  continuous travel of 21 hours or more, pay one
  full per diem

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VIII. SUBSISTENCE EXPENSES

• PAYMENT OF GROUP SUBSISTENCE EXPENSES
• When the University negotiates group lodging and
  meal rates, vendor may be paid either by group
  leader or by billing the University
• Group travelers may claim reimbursement as
  follows
• Group leader who pays part or all of groups
  expenses must provide invoice/receipt showing
  payment in full
• Group members may claim reimbursement for part of
  expenses not paid by group leader
• TRANSIENT OCCUPANCY TAX EXEMPTIONS
• See Accounting Manual chapter T-182-75 for
  details and a list of cities and counties in
  California that grant the exemption to University
  employees

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IX. MISCELLANEOUS TRAVEL EXPENSES

• Reimbursable when ordinary and necessary to
  accomplish the official business purpose of the
  trip, including
• Business office expenses
• Special fees for foreign travel
• Registration fees
• Actual costs for lodging taxes (not included in
  CONUS per diem rates)
• Charges for checking and storing baggage, excess
  baggage fees, all with justification
• Other ordinary and necessary expenses not
  included in the above categories

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X. INTERCAMPUS TRAVEL EXPENSES

• Procedures for administration of intercampus
  travel for both employees and visitors see
  actual Policy text for details on the following
  topics
• FUNDING CAMPUS RESPONSIBILITIES
• Travel Funded by a Single Campus
• Travel Funded by Two or More Campuses
• Missing Original Receipts
• Outstanding Cash Advances
• HOME CAMPUS RESPONSIBILITIES

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XI. SPECIAL TRAVEL SITUATIONS

• UNIVERSITY TRAVELERS see policy text for
  detailed discussion of topics listed below
• Visiting Academic Appointees covering topics such
  as Authorized Advances and Return Travel
• Faculty Members on Sabbatical Leave
• Students
• Post-Docs and Other Non-degree Candidates

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XI. SPECIAL TRAVEL SITUATIONS

• NON-UNIVERSITY TRAVELERS see policy text for
  detailed discussion of topics listed below
• General Regulations
• Prospective employees
• Independent Contractors and Consultants
• Inbound Travel - Temporary Assignments
• Foreign Visitors and Scholars
• Spousal Travel
• Athletic Travel - Spouse and Other Family Members

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XII. REPORTING TRAVEL EXPENSES

• Except for direct billing arrangements that have
  been approved in advance, a Voucher must be
  processed even if no reimbursement is due the
  traveler
• UCSBs official travel reimbursement form is the
  web-based Travel Expense Voucher (Web TEV)
• https//apps.accounting.ucsb.edu/travel/Secure/Log
  in.aspx

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XII. REPORTING TRAVEL EXPENSES

• REPORTING PERIOD submit to Accounting within 21
  days of end of trip
• Or monthly if for recurrent local travel
• Or quarterly if trip lasts more than 90 days
• COMPLETION OF TRAVEL EXPENSE VOUCHER
• Substantiation of Expenses
• Date/time of departure/return and any personal
  leave taken while on official travel status
• Origin/destination and route taken. Travel within
  local area. Continuous travel between points,
  deviation from standard route
• Purpose of travel or nature of business benefit
• Amount of each expenditure, listed by date and
  location
• Group leaders expenses must include names of
  participants

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XII. REPORTING TRAVEL EXPENSES

• COMPLETION OF TRAVEL EXPENSE VOUCHER
• Documentation Requirements
• Receipts original of following must be
  submitted
• All airline expenses
• All lodging expenses, except where long-term per
  diem is authorized
• NOTE traveler shall not be reimbursed for
  lodging expenses unless the receipt presented by
  the traveler contains itemized charges for the
  room, e.g., taxes, telephone, etc.
• Rental car expenses
• Exceptional meal expenses of 75 or more
• Local transportation costing 75 or more
• Each miscellaneous expense of 75 or more
• Departments/control points may be more restrictive

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XII. REPORTING TRAVEL EXPENSES

• COMPLETION OF TRAVEL EXPENSE VOUCHER
• Documentation Requirements
• Receipts see policy text for documentation of
  expenses relating to private aircraft,
  extraordinary items, car damage, gifts for host,
  agendas documenting registration fees,
  electronic, emailed and faxed receipts
• Travel Packages Purchased from Internet Vendors
  cannot be used for business-related travel unless
  the traveler has confirmed that each aspect of
  the package will be separately itemized
• Missing Original Receipts explanation must be
  attached with certification that the traveler has
  not and will not seek reimbursement from any
  other source

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XII. REPORTING TRAVEL EXPENSES

• COMPLETION OF TRAVEL EXPENSE VOUCHER
• Certification of Travel Expense
• Traveler must sign the TEV certifying amounts
  claimed are a true statement of the expenses
  incurred on official University business and that
  the original of all required receipts has been
  submitted
• RETURN OF EXCESS ADVANCE AMOUNTS
• If advance exceeds expenses, payment due shall be
  submitted with the TEV. Make check payable to UC
  Regents

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XII. REPORTING TRAVEL EXPENSES

• APPROVAL OF TRAVEL EXPENSE VOUCHER (TEV) FOR
  PAYMENT
• Must be approved for payment by travelers
  department head or other officially
  delegated/re-delegated individual
• Must be impartial, traveler cannot approve own
  reimbursement
• Employee shall not approve travel expenses of
  individual
• To whom he/she reports direct or indirectly
• Who is a near relative
• Use UCSBs online Web TEV for travel less than 30
  days
• Use paper TEV for travel 30 days or longer,
  relocations, removals, 2nd interview, house
  hunting trips

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APPENDICES Travel

• MILEAGE REIMBURSEMENT RATES FOR PRIVATE VEHICLES
  AND AIRCRAFT
• LODGING AND MIE REIMBURSEMENT CAPS
• TRAVEL OF LESS THAN 24 HOURS MIE REIMBURSEMENTS
• REDUCTION IN MIE PER DIEM FOR MEALS FURNISHED
  WITHOUT CHARGE
• PRORATING PER DIEMS FOR TRAVEL INVOLVING MULTIPLE
  LOCATIONS
• INTERCAMPUS TRAVEL EXPENSE TRANSFER APPROVAL
• IRS TAX GROSS UP FORMULA

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I. REFERENCES Moving, Relocation

• Letters and delegations from the President and
  Senior Vice President
• Academic Personnel Manual, Sections 550, 560, 561
• Business and Finance Bulletin G-28, Policy and
  Regulations Governing Travel
• Related Accounting Manual Chapters
• Internal Revenue Code Sections and Service
  Announcements

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II. PURPOSE Moving, Relocation

• Sets forth the policy and procedures governing
  the payment of moving expenses and relocation
  allowances for non-exclusively represented staff
  employees at the nine campuses and the Office of
  the President

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III. SCOPE Moving, Relocation

• The following employee classifications are
  covered by these guidelines
• 1) Senior Managers
• 2) Managers, Senior Professionals, and
  Professionals and
• 3) Support Staff.
• Included as an appendix are the policies related
  to moving expense payments for academic personnel

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IV. DEFINITIONS Moving, Relocation

• MOVING EXPENSES
• Reasonable costs incurred by new appointees or by
  current employees transferring
• Conventional mode, direct route, reasonable time
• Household goods, personal effects
• Cost of travel individual and immediate family
• RELOCATION ALLOWANCE
• NOT reimbursement of relocation costs
• Rather, an offset of higher living costs not to
  exceed 25 of annual salary
• First 4 years 40, 30, 20, 10
• NOT eligible UC employees, CA residents

52
V. AUTHORITIES Moving, Relocation

• MOVING EXPENSES
• New Appointees Delegated to Chancellors, Deans
• See Appendix C for eligible ranks and percentages
  
• Transferring Employees Chancellor approves
• Exceptions Chancellor when required due to
  extenuating circumstances
• Limited to actual cost if deemed ordinary and
  necessary
• Supported by original receipts
• RELOCATION ALLOWANCES
• Delegated to Chancellors

53
VI. POLICIES AND PROCEDURES MOVING EXPENSES

• SENIOR MANAGERS
• Eligibility for Reimbursement
• New hires/appointees or transferring employees
  whose new work location is outside reasonable
  commuting distance
• Reimbursable Expenses reasonable expenses for
• Transporting household goods, personal effect
• Appointee/employee and members of household one
  way travel not to exceed cost of airfare
• Meals and lodging while en route plus one day
  each at old and now locations in accordance with
  G-28
• See policy text for details on transporting
  autos, packing and crating, storage and
  insurance, house seeking and temporary living
  expenses, etc.

54
VI. POLICIES AND PROCEDURES MOVING EXPENSES

• MANAGERS, SENIORS PROFESSIONALS, AND
  PROFESSIONALS
• Eligibility for Reimbursement
• See policy text for variations on employee
  transfers
• Subject to 50 limitation for new appointees
• Reimbursable Expenses
• See policy text for further details
• SUPPORT STAFF
• Eligibility for Reimbursement
• University pays when employee is required to
  transfer
• Reimbursable expenses
• See policy text for details

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VII. TAX TREATMENT OF MOVING EXPENSES

• NONTAXABLE EXPENSES must meet these three tests
• Related to Start of Work move made in
  connection to work at new location and incurred
  within one year
• Time Test must be employed 39 weeks during 12
  months following move
• Distance Test new job location must be at least
  50 farther then former commuting distance
• Includes moving household goods, personal
• effects, lodging expenses but excluding meals

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VII. TAX TREATMENT OF MOVING EXPENSES

• TAXABLE EXPENSES must be included in gross
  income as taxable wages
• Travel expenses, meals, lodging for pre-move
  house-hunting trip
• Meals, lodging while in temporary quarter at new
  location
• Rental car costs while primary auto is being
  shipped
• Meal expenses while moving from old to new
  residence
• See policy text for real estate expenses (items 5
  through 8) and footnote on page 11
• See policy text for details on other taxable
  expenses including mileage in excess of current
  rate for removals

57
VIII. PAYMENT PROCEDURES Moving, Relocation

• ADVANCE PAYMENTS
• Should not exceed 75 of estimated reimbursements
• Approved by Chancellor or designee
• PAYMENTS MADE DIRECTLY BY THE UNIVERSITY
• Transportation of household goods, personal
  effects
• Must be requisitioned by purchase order
• Subject to 50 limitation for certain
  classifications
• REIMBURSEMENT PAYMENTS
• Nontaxable reimbursements must be on Travel
  Expense Voucher
• Any taxable amounts must be properly tax coded
• TAX REPORTING
• Required for both taxable and nontaxable amounts
• Taxable amounts are subject to withholding

58
IX. RESPONSIBILITIES Moving, Relocation

• Department Head approves the payment of moving
  expenses for nonacademic personnel
• See Appendix A for approving moving expense
  payments for academic personnel
• Accounting Office reviews all supporting
  documentation prior to payment for allowability,
  proper approvals. Responsible for appropriate tax
  coding.

59
APPENDICESMoving, Relocation

• Academic Personnel Manual
• APM 550 RECRUITMENT, Moving Expenses for
  Intercampus Transfer
• APM 560 RECRUITMENT, Removal Expenses/General
• APM 561 RECRUITMENT, Removal Expenses/Assistants
  
• Policy on Relocation Allowance
• Moving Expense Payment Eligibility (Nonacademic
  Positions)

60
I. REFERENCES Entertainment, Business Meetings

• Letters and delegations from the President and
  Senior Vice President
• Other Business and Finance Bulletins
• G-28 Policy and Regulations Governing Travel
• G-32 Reimbursement for Overtime Meals
• G-41 Employee Non-Cash Awards
• G-42 Gifts Presented to Non-Employees on Behalf
  of the University
• G-43 Policy on University Membership in
  Organizations
• Related Accounting Manual Chapters
• A-235-27 Administrative Fund Payments
• D-224-17 Delegation of AuthoritySignature
  Authorization
• D-371-12.1 Disbursements Accounting for and Tax
  Reporting of Payments Made through the Vendor
  System
• D-371-16 Disbursements Approvals Required
• T-182-77 Taxation of Scholarship and Fellowship
  Grants and Educational Assistance
• Internal Revenue Code, Disallowance of Certain
  Entertainment Expenses

61
II. PURPOSE Entertainment, Business Meetings

• This Bulletin outlines University policy and
  procedures governing the manner and extent to
  which the University may provide hospitality as
  part of an entertainment event.
• The Bulletin also addresses meals provided in
  connection with business meetings, meals
  furnished to employees, meals provided to student
  athletes, and meals provided for other occasions.
• Each campus may establish more restrictive
  procedures.

62
III. SCOPE Entertainment, Business Meetings

• This Bulletin governs the appropriate use of
  University funds for entertainment functions,
  business meetings, and other occasions when meals
  and/or light refreshments are served.
• The Bulletin does not apply to the
  University-managed Department of Energy
  Laboratories.

63
IV. DEFINITIONS Entertainment, Business Meetings

• This section covers concepts such as
• Alcoholic beverages, allowability, approving
  authority, business meeting vs. entertainment
  expenditures, exceptional expenditures (see
  slide), guests, light refreshments, meal,
  official host, reimbursement, unallowed
  expenditures (see slide), work location

64
IV. DEFINITIONS Entertainment, Business Meetings

• Exceptional expenditures those exceeding the
  per-person maximum rates for meals and light
  refreshments specified in Appendix A
• Or certain types of hospitality, such as
• Entertainment of the spouse or partner of a host
  or a guest
• Tickets to a sporting, theatrical, or musical
  event and
• A cash contribution which includes the cost of a
  meal or registration fee made to a nonprofit
  organization in connection with an employees
  attendance at a fundraising event.

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IV. DEFINITIONS Entertainment, Business Meetings

• Un-allowed expenditures the following may not
  be reimbursed
• Expenses that are lavish or extravagant under the
  circumstances
• Expenses that represent additional taxable income
  to an employee or student
• Monetary contributions to a political campaign or
  candidate
• Expenses for employee birthdays, weddings,
  anniversaries, or farewell gatherings (excluding
  celebrations for retirement or for employees
  separating from University employment with at
  least 5 years of service).
• The purchase of property or services for personal
  use or for a non-business reason
• Expenditures using restricted funds that are not
  permitted under the terms governing those funds.

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V. UNIVERSITY POLICYEntertainment, Business
Meetings

• In providing hospitality to campus and/or
  community audiences, the event
• Must support mission of University
• Must be in accordance with prudent business
  judgment
• Must be based on reasonableness, allowability,
  benefit to the University, budget and
  availability of funds
• May not result in taxable income to employee or
  student

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V. UNIVERSITY POLICYEntertainment, Business
Meetings

• AUTHORITY issued by Senior Vice President,
  Business and Finance (UCOP)
• ALLOWABLE EXPENSES usually meals and light
  refreshments see text for details
• Entertainment-Related Expenditures
• University employee on travel status
• Prospective donors, employees, and student
  appointees
• Event tickets exception
• Visitors, guests, and volunteers
• Spouse/partner of a University guest or host
  exception
• Cash contributions included in fundraiser fee -
  exception

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V. UNIVERSITY POLICYEntertainment, Business
Meetings

• ALLOWABLE EXPENSES usually meals and light
  refreshments see text for details
• Business meeting hospitality must occur
  infrequently, benefit UC, be reasonable and
  appropriate to units function
• Employee morale-building activities exception
• On-the-job meals as condition of employment
• Meals provided to students athletic teams,
  recruitment, class, orientation, commencement,
  government, association, meeting between student
  and faculty/staff

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VI. TAX TREATMENT OF ENTERTAINMENT
EXPENDITURES

• IRS reimbursement is income to employee if
• Event not related to employees job
• Expense is lavish, extravagant under
  circumstances
• Official host (designated employee) not present
• No substantiating documentation
• Such expenses will not be paid by the University
• Deductible expenses must be directly related to
  or associated with the active conduct of official
  business
• General expectation of deriving benefit from
  event
• Actual engagement in business discussion occurred
  at event
• Principal nature of event was active conduct of
  business
• Expense incurred was for University host(s) and
  guest(s)

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VII. APPROVAL OF EXPENDITURESEntertainment,
Business Meetings

• GENERAL APPROVAL REQUIREMENTS FOR REIMBURSEMENT
  expenditure
• Serves clear and necessary business purpose
• Is reasonable, cost-effective use of funds
• Is allowable, does not create income to
  participant
• Funds are available and allowable under fund
  source
• Equally effective alternatives were considered
• Department head (or equivalent authority) is
  authorized to approve
• Employee shall not approve expenses of individual
  to whom he/she reports direct or indirectly, i.e.
  approving authority should be the supervisor or
  higher classification

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VII. APPROVAL OF EXPENDITURESEntertainment,
Business Meetings

• EXCEPTIONAL EXPENDITURES approval required
• Written justification as to why higher costs were
  unavoidable and necessary
• Exception approver must assure justification is
  adequate
• Limited to actual documented costs incurred
• AUTHORITY FOR EXCEPTION TO BULLETIN
• Delegated to Chancellor
• Re-delegations by Chancellor are in writing to a
  few high-level officials and may not be
  re-delegated further

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VIII. REIMBURSEMENT DOCUMENTATIONEntertainment,
Business Meetings

• gtgt Expenses of 75 or more per occasion must be
  supported by itemized receipts missing
  documentation must be explained
• REIMBURSEMENT OR PAYMENT REQUEST
• Use UCSBs Form-5E8 form specifies
  documentation requirements of this Bulletin
• See Appendix B for host signature requirements
• ADDITIONAL DOCUMENTATION REQUIRED FOR CASH
  CONTRIBUTIONS
• Business relationship with non-profit, copy of
  transmittal letter, statement from non-profit
  with detailed breakdown
• BUSINESS MEETING DOCUMENTATION
• Expense must be necessary, integral part of
  business meeting and not a matter of personal
  convenience
• AUTHORIZED RATES FOR MEALS AND LIGHT REFRESHMENTS
  Appendix A

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VIII. REIMBURSEMENT DOCUMENTATIONEntertainment,
Business Meetings

• FUNDING SOURCE RESTRICTIONS
• State Funds may not be charged an expense which
  is an exception, or used for alcohol
• Contract and Grant Funds can be used only if
  specifically authorized by the contract, budget
  or agency policy department responsibility
• Other Funds only if costs conform to
  restriction imposed by fund source and policy,
  the stricter of which governs
• FINANCIAL CONTROLS
• Payment to be made directly to the individual or
  vendor
• QUANTITY PURCHASES
• Inventory Record for Quantity Purchases (Appendix
  C) should be maintained and made available upon
  request

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IX. RESPONSIBILITIESEntertainment, Business
Meetings

• Vice President-Financial Management
• Adjusts per person rates (Appendix A)
• Issues appropriate processing procedures
• Department Head (equivalent authority)
• Ensures compliance with University policy, fund
  source restrictions, appropriate documentation
• Responsible for approval of payment request form
  and any inventory records of quantity purchases
• Accounting Office
• Ensures reimbursement requests are made in
  accordance with Bulletin allowable claims,
  proper approvals in place, performs post audit
  review, record retention

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• UCSB Entertainment forms
• Payment Request Expenditures for Entertainment,
  Business Meetings and Other Occasions
• Blanket Prior Approval Request Business Meeting
  Entertainment (Form U5-8EA)
• Prior Exceptional Approval Worksheet for
  Entertainment (Form U5-8EW)
• APPENDICES
• Entertainment, Business Meetings
• MAXIMUM RATES FOR MEALS AND LIGHT REFRESHMENTS
• APPROVAL OF EXPENDITURES
• INVENTORY RECORD FOR QUANTITY PURCHASES