Transcript Harvard University Travel & Reimbursement Policy Briefing

Harvard University
Travel & Reimbursement
Policy Briefing
Faculty of Arts & Sciences
2007
Reasons for this Briefing
• To clarify travel and reimbursement policies in
accordance with:
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IRS and other Federal regulations
University policies
Office of Sponsored Programs policies
FAS spending guidelines
• To improve reimbursement processing
– Provide a practical, yet compliant, approach to policies
– Pinpoint problem areas
– Create better overall efficiency
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Sound Practices in Light of Current
Federal & Non-Federal Audit Trends
 Know the rules and adhere to them
 Follow University Policy
 Do not submit or sign off on transactions if you
feel uncomfortable about information provided
 Ask Questions and Raise Concerns
 Participate in Training
 Know resources available to you
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TRAVEL POLICIES
AND
FAS Spending Guidelines
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Air Travel – Domestic & International
Domestic travel is defined as “within and between
any of the continental United States and its
territories and possessions (Puerto Rico, US Virgin Islands,
Guam and American Samoa), with the exception of Alaska
and Hawaii. Also includes flights to Canada and
Mexico under six (6) hours.”
International travel is defined as “to Alaska, Hawaii
and destinations outside North America as well
as flights to Canada and Mexico that exceed six
(6) hours (use non-stop flights as benchmark).”
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Air Travel – Class of Service
Book lowest available economy airfare using:
• Desired travel time (morning/afternoon/evening)
• Airport of choice
• Non-stop flight if desired by traveler
Additional criteria for air travel on federal funds:
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Required use of Preferred Travel Agencies
May use other agents or websites when departure & arrival points are
completely outside US
Domestic flights – must use US-flag carriers only
International flights – Fly on US-flag carriers when departing US & where
available abroad, even if more costly
Use foreign-flag carriers when no US carriers provide service in area or when
use of foreign carriers is a necessity
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Air Travel – Other Classes of Service
• Business Class is allowed when traveling to Alaska,
Hawaii and destinations outside North America as well
as travel to Canada or Mexico that exceeds six (6) hours
(including travel on federal funds).
• First Class is not allowed unless exception is granted
by the FAS Financial Office based on documented
medical or other extenuating circumstances.
Note: Excess airfare may not be charged to federal
funds. If more costly fare is authorized (1st Class for
International travel or 1st Class & Business Class for
Domestic travel), must split code fare using 8450 with
excess to a non-sponsored funding source.
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Air Travel – Preferred Travel Agency
Acceptable reasons for not using preferred agency when traveling on
federal funding:
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Needing to make last minute arrangements that preclude ability to access PTA’s
Non-Harvard visitors booking their own flights
Foreign travel to and from destinations not supported by PTA’s
Group excursions (same individuals to same location for same purpose)
Government airfare rates
International only, if traveler is able to demonstrate savings of 25% or more
using non-preferred vendor as compared to a PTA (for the same itinerary)
AND obtains prior approval to book the trip from the Travel Office. [Traveler
must obtain supporting documentation to get approval – copies of airfare
itineraries from both the non-preferred vendor and PTA for same itinerary &
class of service is required.]
Note: Harvard students and post-docs traveling on federal grants are subject to
the same air travel rules/regulations as faculty & must use a PTA
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Air Travel – Preferred Travel Agency
When processing travel booked through a non-preferred vendor, write
an explanation of the exception in the “Note to Approver”
field on the Travel Expense Report/Web Voucher form.
If 25% savings exception applies, also include copies of the two
itineraries and the prior approval from the Travel Office with the
Travel Expense Report.
If an acceptable rationale is not provided or prior approval is not
obtained (25% savings), the expense report will be returned and
the entire amount must be charged to a non-sponsored account.
For more information concerning air travel on federal funds, refer to
the Sponsored Travel Cost Guidelines on the OSP website.
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Car Rental
May rent up to and including a full-size vehicle.
TO a destination when:
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Driving is demonstrated to be more convenient than air/rail travel
Driving is necessary to transport bulky material required for business
AT a destination when:
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Renting is less expensive than other modes of transportation such as taxis,
airport van services and shuttles, and train service.
FAS Travelers should:
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Use Preferred Car Rental Agencies with negotiated rates
Refer to Car Rental Insurance Guidelines located in Travel Policy Manual on
Travel Office website – most insurance should be declined for Domestic travel.
Travel Office will not reimburse for this expense if insurance is purchased.
NOTE: Student drivers of rental cars have special restrictions.
Refer to Travel Policy Manual for details.
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Use of Personal Car
Employees and visitors may use personal car if:
• It is less expensive than renting a car, taking a taxi, or using
alternate transportation such as train and plane.
• It saves time.
• For long distance travel, Travel Office requires documentation
comparing mileage to flight costs. If mileage is higher, an
approved Exception Request is required.
Mileage calculations:
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From home or office, whichever is less, to the business destination.
Normal commuting miles cannot be included.
From home to airport is allowed if traveler works from home for all or part of a
work week or cost of other means of transportation greatly exceeds mileage,
tolls and parking combined.
Must provide to and from locations on Expense Report (MapQuest is great!)
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Other Ground Transportation
• Train Travel – Domestic and International
– Standard or economy class travel is allowed for travel less than six hours
– Business class travel is allowed for:
• Trips between Boston – New York (or return)
• Trips between Boston – Washington, DC (or return)
• Travel over six hours
– First class travel is allowed only outside of the U.S. where a reserved seat is
required and cannot be guaranteed by booking in another class of travel
• Sedan Service
– Should be used only when valid business reasons preclude use of taxi
service or airport van/shuttle service. Acceptable reasons are:
• Travel with the President, Provost or Deans of FAS
• Travel with major donors or publicly-recognized celebrities.
– Should use Harvard’s Preferred Vendors with negotiated rates
Use of limousines is strictly prohibited by the University!
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Lodging
FAS Travelers should purchase a standard room using the
following guidelines:
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Harvard’s Negotiates Rates at Partner Hotels (primarily Cambridge)
Average Corporate Rate (Select Cities)
Federal Per Diem Rate (All Other Cities)
(Found on Travel Office Website – the first two categories are found under “Exclusive Travel Discounts”. Average
Corporate Rates are also available on the FAS Financial Office website – www.fas.harvard.edu/~finance)
Travelers must obtain an exception approval if rates
exceed guidelines by more than 40%.
Hotel rates above the guidelines are allowed when part of a
conference package (must provide proof to Travel Office if 5-Star)
Travelers may claim actual hotel expenses or lodging per
diem but may not mix claim types on same trip.
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Use of Private Residence
Travelers who stay in a private residence may not
claim lodging per diem for their stay.
Travelers will be reimbursed for actual expenses
incurred to extend appreciation to host.
Per stay, such expenses are limited to:
– One gift under $75 or
– One meal of appreciation
(subject to FAS meal guidelines)
Note: All gifts and meals of appreciation should be coded
to 8450 and may never be charged to Federal funds.
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Travel & Business Meals
• FAS Meal Guidelines
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Dinner - $75 per person
Lunch - $35 per person
Breakfast - $25 per person
Receptions - $35 per person for food and drink
Guidelines do not include taxes and tips (up to 20%)
• Travelers on business trips may claim either
actual meal expenses or meal per diems for same
trip up to the guideline maximums. They may not
mix claim types on same trip.
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Travel & Business Meals
Business meals are defined as “with business
acquaintances, students, colleagues and donors
during which specific documented business
discussions take place.”
Business meals with other employees are defined
as “meals between staff conducted off campus
for confidentiality reasons or for reward or other
appropriate business purpose.”
Note: Meals and receptions which are social in nature (reward,
recognition, holiday celebration, etc.) should be coded to 8450
and may not be charged to federal funds. Any costs associated
with alcohol must be charged to object code 8450 and may never
be charged to federal funds.
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Telephone Usage while Traveling
• FAS Travelers can be reimbursed for business
telephone calls that are reasonable and necessary for
conducting business
– Itemized hotel folio or an original telephone bill showing the calls must be
included on Travel Expense Report.
• FAS Departments can choose to reimburse travelers for
personal telephone calls while traveling
– Calls should be reasonable in cost and number (1-2 per day) in order to
stay in touch with family
• Use of AirPhones is not allowed except in emergencies
or in cases of extenuating circumstances
– Emergency or extenuating circumstances must be noted on the
reimbursement request
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Federal Unallowable Expenses
Certain types of items within the general board direct-cost categories must
not be charged to federal awards:
Basic Administrative and Operational Costs
Office supplies, pens, paper, basic software, etc.
Local telephone and fax; telephone line and equipment charges
General clerical and secretarial assistance (some exceptions)
Laptops and desktop personal computers (considered multi-use)
Postage, express mail (except freight to ship component parts)
Hazardous waste disposal
Proposal preparation costs
Research-related Expenses
Personal Use Goods/Services
Books and periodicals
Sales Tax
Dues and memberships
Alcohol
Photocopying
Flowers
Conference fees (except project paper) Catering
Miscellaneous Unallowable Expenses
Gifts
Student Activities
Space Rental/Furniture
Fines and penalties
Construction/Housing/Living Expense
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Harvard University
REIMBURSEMENT POLICY
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Who Does Policy Cover?
ONLY EMPLOYEES – Faculty and Staff; Full or Part Time
NOTES:
• Students and non-employees are encouraged to submit
reimbursement requests in accordance with the policy time frame.
• Students – both undergraduate and graduate – are always
considered students for this reimbursement policy only.
• No exception approval is required to reimburse students and nonemployees not in compliance with the policy time frame.
• The requirement that reimbursements be documented and
substantiated business expenses holds for anyone seeking
reimbursement from University or sponsored funds.
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Time Frame for Submission
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To satisfy the IRS accountable plan rules governing non-taxable
reimbursements, travel expense reports must be submitted to the
Travel and Reimbursement Office within the following:
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Taxable Reimbursements
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60 Days from the end date of trip or date expense was incurred for nontravel related expenses;
61 to 90 Days from end date of trip or date expense was incurred for nontravel related expenses WITH approved Exception Request from FAS
Financial Office. (FAS Financial Office has no discretionary power after 90 days)
61 Days after end date of trip or date expense was incurred for non-travel
related expenses, where no exception exists or Exception Request is
denied
process through ASPerIN as Late Reimbursement (code = LRB)
183 Days after end date of trip or date expense was incurred, no
payment of any kind will be allowed.
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Requesting Exceptions
Exception Approval allows for processing of expenses as
non-taxable reimbursement through Travel Office.
To initiate request for University or FAS policy exception:
– Fill out Exception Request Form found on FAS Financial
Office website under “Recent Policies and Forms”
– Department Administrator or Financial Officer submits via email to [email protected]
Requests must fully document extenuating circumstances.
Lost or misplaced receipts are not considered extenuating
circumstances - no exception approval will be granted.
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Processing Late Reimbursements
Any reimbursement request that falls into the
Taxable Reimbursement category must be
processed through the ASPerIN payroll system:
– Use Gift/3rd Party option and earnings code LRB
– Must be approved locally by Department Administrator or
Financial Officer
– Print out the PS Form and attach copies of all receipts and
supporting/back-up documentation
– Sign and forward form and copies of receipts and back-up
documentation to your Payroll Service Coordinator
– Return original receipts to employee for inclusion with personal
income tax return
– Payment will be made on next available regular paycheck
Absolutely No Grossing Up for tax withholding
Allowed!
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Extended Business Trip Exemption
University policy allows automatic exemption from
60-day rule for extended business trips:
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Trip must be 30 consecutive days or longer
Traveler has 120 days from BEGINNING date of trip to submit
an initial reimbursement request
Traveler may include initial expenses, such as airfare, but 120day clock starts ticking from date of airfare purchase
Reimbursement requests must be submitted every 120 days
while traveling or “settled” within 60 days from end date of trip
Any expenses older than 183 days will not be paid
Leaves do not qualify for this exemption
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Non-Travel Allowance Exemption
University allows automatic exemption from 60-day
rule for expenses paid from an annual research
allowance or professional expense allocation.
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Every effort should be made to submit reimbursements in
same fiscal year in which expenses were incurred and in which
allocation was made.
Allowance reimbursements, however, must be submitted no
later than 12 months from date expenses were incurred.
Sponsored grants do not qualify for this exemption
Travel Expense Report or UEF must include the terminology
Allowance Reimbursement at the beginning of the Business
Purpose section.
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Prepayments
Reimbursement or Payment of Pre-travel expenses:
Allowed for GE Corporate Card payments of travel
expenses such as airfare, hotel deposits & conference
fees
Allowed for direct payment by Harvard to Preferred Travel
Agencies (through invoice or BCD’s direct billing)
NOT allowed for personal credit cards or out-of-pocket
expenses
WHY? University cannot track cancellations or refunds if
credits go to personal cards or checks go to individuals.
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TRAVEL AND REIMBURSEMENT
EXPENSE REPORTING
A BRIEF OVERVIEW
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Requirements
• All travel and purchases must be
– Business expenses
• Necessary and appropriate for the conduct of University
business
• Primarily benefit the University - not the traveler
– Documented
• Thorough business purpose is required on either the Travel
Expense Report (WV) or the UEF
• Proper substantiation of the amount by providing receipts or
a Missing Receipt Affidavit
• Signed by the reimbursee – not optional
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Business Purpose – The 5 W’s
Detailed Business purpose is required by the IRS. The
UEF should include all 5 components below:
– WHO
incurred expense (and/or who visited)
– WHAT
type of event, activity or purchase
– WHEN
event/activity/purchase took place
– WHERE
location of event or activity (travel only)
– WHY
the expense was incurred
The details should be sufficiently adequate for an auditor to
clearly understand what the expenses were about and why
they were charged to a specific fund.
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Business Purpose – The 5 W’s
The Who
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Name of individual who incurred the expense
Names of others if more than one individual involved
• 2-5 People, List full names of each
• 5+ People, List readily identifiable Groups
(e.g. Prof. X’s 10 graduate students)
For Non-Harvard, title and affiliation are also required
Auditor should be able to readily determine expense is business
related and not personal (lunch with Uncle Sam).
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Business Purpose – The 5 W’s
The What
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Clear description of event, activity or purchase:
“chemical supplies for Barter Lab” vs. “supplies”
“trip to Purple Haze Conference” vs. “trip to Conference”
Absolutely No Acronyms!
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Similar expense types can be grouped on the UEF
Ground transportation (tolls, parking, taxis)
Multiple meals
For trips with multiple under-$75 meal expenses with and without
receipts (trips over 5 days), list “meals – see attached” on UEF and
attach log with details - $$ amount/dates of daily breakfast, lunch and
dinner expenses (broken down by B/L/D).
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Business Purpose – The 5 W’s
The When
• Beginning and ending dates of a trip
• Date(s) item(s) were purchased
The Where (for travel only)
• Exact location of trip – if city is not easily recognizable, must
include state and/or country
• For trips with multiple locations – must list them all
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Business Purpose – The 5 W’s
The Why
Why the expense was incurred and how it relates to the
fund being charged.
This is the most difficult of the 5 W’s and particularly
important when charging to sponsored funds.
Using the Purple Haze Conference example, an acceptable why would be “to
present a paper on blue/red combinations related to NSF project on color hues.”
An unacceptable why would be “to present a paper” or “to present a paper on
chocolate chip cookie mix” – cookie mix has nothing to do with color hues!
If you have a conference brochure that gives the subject matter of the paper,
you can write “to present paper - see attached” rather than fill in this information
on a UEF. Only the PI will be able to give you the information needed in terms
of how the expense or trip related to his/her grant unless it’s blatantly obvious.
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Receipt Requirements
Reimbursement requests must be accompanied by receipts
which substantiate the expense per IRS Regulations:
• Original receipts for all expenses $75 or more
– Some departments require receipts for all $ amounts (or a
MRA); check with local business or finance office
– Any receipts not required by the Travel Office (under $75)
should be filed locally
• All hotel receipts – a.k.a. hotel folios
– Regardless of amount
– Any personal charges must be:
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Crossed out on the folio - No movies! No mini-bars!
Subtracted from the total reimbursement request
Paid directly by the traveler
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Missing Receipt Affidavit
• If an original receipt is lost or
misplaced, use a MRA
• For air travel, hotel stays or
car rentals additional
documentation is required
(see MRA form for details)
• One MRA can support multiple
expenses
• Both the reimbursee and the
approver must sign the MRA
• In a pinch, Travel Office will
accept a faxed MRA
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Per diem Reimbursements
Per diem is a daily rate assigned by the federal
government to a location for reimbursement of
lodging and meal & incidental expenses (M&IE).
• Reimbursement for travel may be based on per diems
– Paid in lieu of actual expenses
– Receipts not required – but proof of travel is required
• Per diems provided in advance are not allowed
• Rates are located on Travel Office website
– Be sure effective date for per diem agrees with dates of travel
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Per diem Reimbursements
Remember to be consistent in reimbursement
method for the two claim types - lodging and meals.
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Travelers must choose to file either actual meal receipts or
claim a meal per diem for entire trip – cannot mix.
Travelers must choose to file either actual hotel receipts or
claim a lodging per diem for entire trip – cannot mix.
[However, travelers may claim actual meals and per diems
for lodging or actual lodging and per diems for meals.]
Note: Both actual and meal per diem amounts are subject to the
maximums set in the FAS meal guidelines
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Per diem Reimbursements
IRS regulations require prorating of meal per
diems under certain circumstances:
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For trips more than 12 hours but less than 24 hours, use 75%
of M&IE per diem rate
For trips over 24 hours, use 75% of M&IE rate for the first day
and last day of the trip
When conference fees include meals*
*Consult US General Service Administration website for $ amount to
reduce per diem based on M&IE rate for conference city.
For multiple city trip, base meal per diems on flight times &
lodging where traveler slept. Use best judgment!
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GE Corporate Cards
Use ONLY for business-related purchases
• Do not share your card with anyone
• Why? Cardholders personal credit history is at risk
• If personal charges do occur, cardholder must pay GE
directly & cross charges off statement
Credits for business-related purchases
• Use GE Credit in Web Voucher
• Use the same account coding as the original charge
• Credit Memo will be submitted directly to GE via Travel
Office & proper account will be credited through G/L –
extremely important if credits relate to charges on grants.
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Time Needed to Process GE Card
Purchase date of item – January 15th
Charge appears on GE statement – February 15th
Cardholder receives statement – February 20th
Statement reviewed by cardholder – February 25th
Administrator or assistant receives statement from cardholder –
March 1st
UEF & statement received by local financial office – March 8th
Average # of days to process or resolve issues – 8 Days
GE reimbursement request submitted to Central – March 16th
One Day beyond University’s 60-Day Policy!
Highly recommend that cardholders give assistants online access to
their GE statements – process is more streamlined compared to
paper statements due to snail mail.
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Why are reimbursement requests
returned?
Most reimbursement requests are returned by the
Travel Office due to basic policy violations:
• Lack of proper documentation
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Business purpose was missing or incomplete
Receipts were missing and no MRA was included
Required FAS or Travel Office approval was missing
Signature of the reimbursee or approver was missing
• Expenses were unallowable under University policy
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Use of non-preferred Agency for federal airfare
Use of wrong class of service
• Expenses exceeded the time to be submitted (60
Days) and did not have approval from the FAS
Financial Office (60 to 90 Days)
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Would you be Prepared if Auditors
Come Knocking?
• Guiding principal is that the University wants to
provide auditors/inspectors with the information
they need
• External agents may show up unannounced
– Ask for identification
– Request documentation which allows them access to
facilities – Warrant???
– Contact FAS SPA, RMAS and OSP immediately
– Understand Scope and Timing of Work
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MORE INFORMATION
AND RESOURCES
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Preferred Travel Providers
• Domestic Air Travel
– USAirways – Boston/New
York/Washington DC shuttles
• Travel Agencies
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Expedia Corporate Travel
BCD/Harvard Travel
The Travel Collaborative
Oriental Tours and Travel
HT&T Travel
Great International Travel
• Domestic Train Travel
– Amtrak – Boston/New
York/Washington DC shuttles
• Car Rental Agencies
– Hertz
– Avis
– Enterprise
• Car/Sedan Services
– PlanetTran
– Boston Coach
– Custom Transportation
• Preferred Hotels
– See http://vpfweb.harvard.edu/ofs/travel/secur
ity/exc_hot.shtml
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FAS Resources
• The FAS Financial Office website has many
resources – www.fas.harvard.edu/~finance
– FAS Spending Guidelines
– University’s Partner Hotels
– Average Corporate Lodging Rates for top 100
domestic and international cities
– FAS Exception Request Form & Procedures
– Exception approval guidelines
– FAQ’s on spending guidelines and exception
approvals
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Travel & Reimbursement Office
Resources
• The Travel and Reimbursement Office website has
many resources – www.travel.harvard.edu
– Exclusive Harvard negotiated rates
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Airlines
Hotels
Car Rentals
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Travel Policy Manual (be careful: still being updated)
GE Corporate Card Application
Per diem, mileage reimbursement and exchange rates
Information on Harvard’s travel agencies, including the
Harvard-Expedia corporate travel website
– Reimbursement policy information
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Government Resources
US General Service Administration Website shows
$$ amount to reduce per diem based on M&IE rate
for conference city. Go to:
http://www.gsa.gov/Portal/gsa/ep/home.do?tabld=0
Travel>Resources>Per Diem Rates>M&IE Breakdown
Rule of thumb:
Breakfast – 18%
Lunch – 28%
Dinner – 48%
Incidentals – 6%
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More Resources
• The FAS Administrative Systems Assistance Program (ASAP) can
provide training, staff refreshers, and backup transaction
processing
– E-mail: [email protected]
– Phone: 6-7136
• University policy documents can be found at http://vpfweb.harvard.edu/documents
• Check the Office of Sponsored Programs for the OSP Travel
Guidelines
http://vpf-web.harvard.edu/osr/managing/man_pos_entertainment.shtml
• Feel free to contact Michael Jackson: 5-1526 or
[email protected] & Carolyn MacLeod: 6-3053 or
[email protected] with questions/concerns
• Feel free to contact the Travel and Reimbursement Office – 57760 – with questions or concerns
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