Brandeis University Financial Affairs and Treasury Services

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Brandeis UniversityFinancial Affairs and
Treasury Services

• Travel and Business Expense Policies
• Training Seminar
• July 2006

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Introduction

• Welcome!
• Presenters
• Loretta Bemis
• Sr. Director of Financial Services
• lbemis_at_brandeis.edu
• 6-8686
• Ofer Ben-Gai
• Director of Disbursements
• obengai_at_brandeis.edu
• 6-4471
• Liz Fenick
• Accounts Payable Manager
• efenick_at_brandeis.edu
• 6-4483
• Housekeeping
• Policy Advisory Committees
• Agenda

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Agenda

• Why did we develop and update policies and forms?
• What has changed?
• When is it effective?
• Who is impacted?
• What is a business expense?
• Substantiation and approval
• What is/is not allowed?
• Business Expense Policy
• Travel Policy
• Process Overview
• Procurement Methods (please refer to handout)
• Pre and post departure
• Acceptable receipts (please refer to handout)
• Questions
• 5 minute break
• Forms (please refer to handouts)
• Questions

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Why are we doing this?

• External Factors
• I.R.S Accountable Plan rules
• Reduce number and amount of travel advances
• Enforce time limits for reconciliation of
  advances
• Identify business connection
• Safeguard university assets
• Satisfactory audits
• No cost disallowances
• NIH Grants Policy Statement
• Defines domestic and foreign travel
• Emphasis on organizations established travel
  policy
• Lowest commercial airfare US flag carrier
  required for international travel
• Alcohol not allowed

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Why are we doing this?

• Internal factors
• Existing travel policy needed to be updated
• Define appropriate business expense
• What is allowed?
• Who approves?
• Keep costs within budgetary limitations
• Clarity on various procurement methods for travel
  and business expenses
• Clarity on record keeping requirements

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Whats changed?

• Business Expense Policy (New Policy)
• Provides guidance on appropriate charges to
  university funds
• Consistency and equity across departments.
• Travel Policy (Updated Policy)
• Reduce number and amount of travel advances
• Accounts Payable has primary responsibility for
  policy enforcement.
• Meals
• Per diem or actual with receipts
• Guidance on maximum daily amount when not using
  per diem

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Whats changed (cont.)

• Travel Policy
• Department Pcard added as procurement method for
  transportation costs (e.g. airfare, conference
  registration)
• Clarifies receipts
• Encourages use of University Corporate Card for
  faculty and staff if take one or more trips per
  year
• New Forms
• Captures business connection/purpose
• Captures entire trip on one form
• Approvals minimum requirement is immediate
  supervisor
• Policy compliance university or departmental

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When is it effective?

• July 1, 2006

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Who is impacted?

• Faculty
• Staff
• Students
• Invited guests
• Funding source not a consideration!

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What is a proper business expense?

• Includes direct payments to vendors for goods and
  services, and reimbursements for travel, meals
  and expenses related to university activities
  Best interest of university and for official
  business only
• Complies with all existing regulations
• Does not provide or appear to provide any
  personal benefit to the individual without there
  being a valid business benefit to the university
• Within approved budgets
• Necessary to the accomplishment of university
  business
• Reasonable sufficient to meet but not exceed the
  identified need
• Approved by the appropriate individuals

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Substantiation

• Departments/schools may have more restrictive
  policies
• Substantiation (see handout Acceptable Receipts)
• Provides evidence that an expense was actually
  incurred
• Documents that it is business related

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Approvals Subordinate may not approve
supervisors expense reimbursement

• Required
• Individual
• Request is for official university business and
  not personal
• Immediate supervisor
• Approves propriety and business connection
• Confirms adherence to the policy
• Approves missing original receipts
• Budget Manager
• Approves budget availability for university funds
• P.I. for a grant
• Approves compliance with sponsor requirements
• Confirms expense is reasonable, allowable and
  allocable to the project
• Other approvals
• Dean or V.P.
• Approves exceptions to the university policies
• Financial Affairs (Accounts Payable, SPA)
• Enforce policies
• Compliance with external requirements and
  regulations

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What is/is not allowed?

• Business Expense Policy
• Matrix of Common Types of Business Expenses
  begins on page 3
• Personal and Unallowable Expenses begins on page
  8
• Meals and Gifts (see page 9)
• In general, not an appropriate use of university
  funds
• Non-work related events require approval of
  department head
• Serious illness or death- allowed if
• 75 or less
• Coordinate with Human Resources
• IRS governs taxability (what is de minimis ?)
• Meals must be for the convenience of employer
• Gifts employees or students
• Cash, gift certificates, savings bonds etc. of
  any amount are taxable and should be added to the
  individuals W-2
• Gifts or awards of tangible personal property
  with a value greater that 75 are taxable
• Length of service (5 years or more and less than
  400) awards are not taxable when coordinated
  with Human Resources

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What is/is not allowed?

• Travel Policy (see handout Travel Policy at a
  Glance)
• Advances
• Reduce need for and the amount of travel advances
  (New Form)
• Considered and exception requiring additional
  approvals
• Capped at 50/per day
• Must be substantiated with 45 days of return from
  trip or are taxable
• Long Term Activity Advance (New Form)
• Useful when standard procurement methods not
  practical or accepted
• If use personal credit card or university
  corporate credit card, will be reimbursed after
  the trip has taken place
• Meals
• Federal per diem for meals and incidental
  expenses prorate per IRS OR
• Actual costs requiring receipts if meal cost 25
  or more
• Expenses of a personal nature not allowed. For
  example
• Laundry charges if less than 5 days
• Movies
• Massages
• Personal toiletries

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Process Overview

• Procurement Methods (see handout)
• Pre-departure
• Department pays for
• Transportation costs
• Registration fee
• Hotel guarantee
• Recommend traveler use Travel and Business
  Expense Report to record expenses during trip
• After the trip
• Traveler prepares and submits Travel and Business
  Expense Report with 45 days after trip has
  occurred
• Acceptable receipts (see handout)

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Questions?

• Break for 5 minutes

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Forms

• Payment Request Form
• Travel Advance Request
• Long Term Activity Advance
• Petty Cash
• Travel and Business Expense Report

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Questions?

• Loretta Bemis Sr. Director of Financial Services
• lbemis_at_brandeis.edu
• 6-8686
• Ofer Ben-Gai Director of Disbursements
• obengai_at_brandeis.edu
• 6-4471
• Liz Fenick Accounts Payable Manager
• efenick_at_brandeis.edu
• 6-4483
• Link to policies and forms
• http//www.brandeis.edu/financialaffairs/policies/