Transcript Brandeis University Financial Affairs and Treasury Services

Brandeis University
Financial Affairs and
Treasury Services
Travel and Business Expense
Policies
Training Seminar
July 2006
Introduction
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Welcome!
Presenters
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Loretta Bemis
Sr. Director of Financial Services
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[email protected]
6-8686
Ofer Ben-Gai
Director of Disbursements
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[email protected]
6-4471
Liz Fenick
Accounts Payable Manager
• [email protected]
• 6-4483
Housekeeping
Policy Advisory Committees
Agenda
Agenda
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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?
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Business Expense Policy
Travel Policy
Process Overview
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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
Why are we doing this?
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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
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NIH Grants Policy Statement
• Defines domestic and foreign travel
• Emphasis on organization’s established travel policy
• Lowest commercial airfare; US flag carrier required for
international travel
• Alcohol not allowed
Why are we doing this?
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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
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travel and business expenses
Clarity on record keeping requirements
What’s changed?
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Business Expense Policy (New Policy)
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Provides guidance on appropriate charges to
university funds
Consistency and equity across departments.
Travel Policy (Updated Policy)
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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
What’s changed (cont.)
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Travel Policy
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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
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Captures business connection/purpose
Captures entire trip on one form
Approvals; minimum requirement is immediate supervisor
Policy compliance; university or departmental
When is it effective?
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July 1, 2006
Who is impacted?
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Faculty
Staff
Students
Invited guests
Funding source not a consideration!
What is a proper business
expense?
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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
Substantiation
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Departments/schools may have more
restrictive policies
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Substantiation (see handout Acceptable
Receipts)
• Provides evidence that an expense was
actually incurred
• Documents that it is business related
Approvals
Subordinate may not approve supervisors expense
reimbursement
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Required
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Individual
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Request is for official university business and not personal
Immediate supervisor
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Approves propriety and business connection
Confirms adherence to the policy
Approves missing original receipts
Budget Manager
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Approves budget availability for university funds
P.I. for a grant
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Approves compliance with sponsor requirements
Confirms expense is reasonable, allowable and allocable to the project
Other approvals
• Dean or V.P.
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Approves exceptions to the university policies
Financial Affairs (Accounts Payable, SPA)
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Enforce policies
Compliance with external requirements and regulations
What is/is not allowed?
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Business Expense Policy
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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)
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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 individual’s 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
What is/is not allowed?
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Travel Policy (see handout Travel Policy at a Glance)
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Advances
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Reduce need for and the amount of travel advances (New Form)
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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)
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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
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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:
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Laundry charges if less than 5 days
Movies
Massages
Personal toiletries
Process Overview
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Procurement Methods (see handout)
Pre-departure
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Department pays for:
• Transportation costs
• Registration fee
• Hotel guarantee
• Recommend traveler use Travel and Business Expense
Report to record expenses during trip
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After the trip
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Traveler prepares and submits Travel and Business
Expense Report with 45 days after trip has occurred
Acceptable receipts (see handout)
Questions?
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Break for 5 minutes
Forms
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Payment Request Form
Travel Advance Request
Long Term Activity Advance
Petty Cash
Travel and Business Expense Report
Questions?
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Loretta Bemis: Sr. Director of Financial Services
• [email protected]
• 6-8686
Ofer Ben-Gai: Director of Disbursements
• [email protected]
• 6-4471
Liz Fenick: Accounts Payable Manager
• [email protected]
• 6-4483
Link to policies and forms
• http://www.brandeis.edu/financialaffairs/policies/