Transcript FastFacts Feature Presentation

Slide 1
FastFacts
Feature Presentation
December 17, 2013
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© 2013 The Johns Hopkins University. All rights reserved.
Slide 2
Today’s Topic
We’ll be taking a look at…
Travel and Business Expense
Policies and Procedures Revision
Highlights
Slide 3
Today’s Presenters
Debbie Hawkes, supervisor for the Travel Unit Accounts
Payable Shared Services
Eileen Karczmarek, Specialist Accounts Payable Shared
Services
Dee Church, Senior Accountant JHU Tax Office
Slide 4
Session Segments
Presentation
Debbie, Eileen and Dee will discuss travel and business expense
policy changes and highlight accountable plan rules.
During their presentation, your phone will be muted.
Q&A
After the presentation, we’ll hold a Q&A session.
We’ll open up the phone lines, and you’ll be able to ask
questions.
Debbie, Eileen and Dee will answer as many of your questions
as time allows.
Slide 5
Contact Us
If you would like to submit a question during the presentation or if
you’re having technical difficulties, you can email us at:
[email protected]
You can also send us an instant message!
GoogleTalk – [email protected]
AOL Instant Messenger – HopkinsFastFacts
MSN – [email protected]
Slide 6
Survey
Survey
At the end of this FastFacts session, we’ll ask you to complete a
short survey.
Your honest comments will help us to enhance and improve
future FastFacts sessions.
Slide 7
Travel and Business Expense
Policies and Procedures Revision
Highlights
Slide 8
Agenda
Today we will…
Highlight improvements – index, etc.
Discuss the accountable plan rules
Review IRS documentation requirements
Discover what the receipt requirements are for business and travel
expense reimbursements
List unallowable travel and business expenses
Slide 9
General University Travel Policies
Minimum cost for achieving success
Transportation – lowest convenient fares
First class air travel
not permitted in accordance with federal regulations
Other funds – require prior approval (use First Class
and Business Class Air Travel Justification and
Approval Form – Form B-37
Slide 10
Accounts Payable Objectives of Revisions
Federal Travel Regulation Requirements
IRS documentation requirements for travel and
business expense reimbursements
IRS Accountable Plan Rules
OMB Circular A-21
Slide 11
Improvements
Index by topic
Definitions clarify
allowable & reimbursable
Clarification regarding
Discretionary funds
Per Diems
Gifts to employees
Local Travel
Alcoholic Beverages
Updated list of nonreimbursable expenses
Links to other policy and
procedures guides
Fly America Rules are
covered under Air Travel
Slide 12
Overview of Expense Reimbursement Rules
The university reimburses employees for business
related expenses under an “Accountable Plan”
Expenses are accounted for in a reasonable time
Expenses are properly documented
Slide 13
Overview of Expense Reimbursement Rules
Continued
It is the employee’s responsibility to provide adequate
documentation of the business purpose and submit on
time.
Both employers and employees benefit when an
employee’s business expenses are reimbursed in
conformity with an accountable plan.
Slide 14
Overview of Expense Reimbursement Rules
Continued
• Employee business expenses reimbursed under an
accountable plan can be excluded from an employee’s
adjusted gross income.
• This results in a tax-free reimbursement.
• The reimbursement is exempt from federal, state, and
FICA taxes.
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Slide 15
Travel & Business Expense Accounting
SAP TRIP is the official record for all travel expenses;
it’s features support the Accountable Plan Rules
requirements.
All business expenses for the trip must be included in
SAP TRIP, even prepaid expenses.
Slide 16
IRS Accountable Plan Rules
• Expenses must be accounted for in a reasonable period
– travel expenses must be entered in SAP TRIP within
90 days from the end date of the trip.
• For non-travel business expenses – within 90 days from
the date the expense was incurred.
• Proper documentation for reimbursement – all requests
for reimbursement must have a business purpose
regardless of the amount.
Slide 17
IRS Accountable Plan Rules Continued
Original receipts for expense items $75 and over.
The receipts must be scanned & attached to the expense
report.
Slide 18
Business Expense Documentation Requirements
Documentation of each expense must include:
•
•
•
•
•
Date and amount
Business purpose
Location of the activity
Names of those who attended – if applicable
Business relationship of each person named
Slide 19
Business Expense Documentation Requirements Continued
Local travel, such as mileage and parking, should be
submitted at least monthly, but must be submitted
(entered into SAP) within 90 days from the ending
date of the trip for the month.
Mileage must be broken down by each day of travel
and include the origin and destination.
Slide 20
Receipt Requirements
Hotel – itemized hotel bill with payment method.
Car rental – rental agreement receipt showing
payment.
Gas receipts are allowed for car rentals only.
Local personal car usage – mileage as shown in paper
or electronic standard highway mileage guides (e.g.
map quest)
Slide 21
Receipt Requirements
Meals/entertainment – credit card receipt or detailed
cash register receipt of $75.00 or greater.
Online-transactions – payment method must be
indicated.
Missing Receipt Affidavit (MRA) – accepted with two
authorized signatures and detailed explanation.
It is not to be used in place of a receipt.
Copies of cancelled checks
Slide 22
Prepaid Expenses in SAP TRIP Include:
• Business expenses reimbursed in advance
• Business expenses paid directly to a vendor (e.g.travel
agency bills the university for airfare)
• Business expenses paid using the executive card
• After 90 days from the end of the trip, any business
expenses for the trip not submitted would be reported as
prepaid – the reimbursement cannot be paid through
Accounts Payable.
Slide 23
PD by in the
expense type
description indicates
the expense has
been prepaid.
Slide 24
Non-Reimbursable Expenses
Airline club membership dues
Airfare purchases with points.
Cell phones, smart phones, or similar devices and any
accessories
Commuting expenses (to and from work)
Health insurance
Home internet access
Personal items purchased while traveling including
toiletries, magazines, books, newspapers, etc.
Slide 25
Reimbursement for Purchases
Purchases should be made under the university’s
purchasing policies and procedures so the purchases are
paid directly by the university and not reimbursed.
For purchases of goods made on behalf of the university,
the amount cannot exceed $2,500.00 and the
reimbursement will not include any sales tax paid since
the university is exempt from sales tax on purchases.
Slide 26
Reimbursement of Purchases
Faculty, staff and students cannot make purchases of
services on behalf of the university.
For example, if a person pays for catering, lecture fees,
honorarium or other services, these expenses cannot be
submitted for reimbursement.
Slide 27
Federal Travel Regulations
Prior approval
No expenses for alcohol
Fly America Act
Federal Travel Regulations require that U.S. carriers
be used for travel that is to be reimbursed through
federal grants and contracts.
*The Fly America Act Waiver Checklist is required
for all travel outside the US on a non-American
flag carrier airline regardless of the funding
source.
Slide 28
Foreign Travel & Domestic Travel
Foreign - travel expenses are reimbursed based on either
actual expenses or per diem unless the sponsored funding
sources requires use of per diem rates.
Domestic expenses are reimbursed based on actual
expenses incurred unless the sponsored funding source
requires the use of per diems.
For lodging, only actual lodging (hotel) expenses are
reimbursed.
Slide 29
Per Diem
When meals and incidental per diem is used, the first and
last calendar day of travel is calculated at 75%.
The US General Services Admin. website M&IE breakdown page
has a row showing the calculated amount for the first and last day
of travel.
M&IE rates include gratuities/tips
Per diem rates must be used for the entire trip, not
selected days. Refer to OMB Circular A-21
Per diem cannot be used for travel that is less than 12
hours in duration.
Slide 30
Key Topics to Review
Definitions
IRS Accountable
Plan Rules
Use of Per Diems for
Travel Expenses
Reimbursement for
Purchases
Local Travel
Taxable Payments
Non-reimbursable
Expenses
Discretionary Funds
Slide 31
Foreign Travel Cross Reference
USE OF PER DIEM – AP-TRV-PL-03
CURRENCY CONVERSION – AP-TRV-PL-06
FLY AMERICA ACT – AP-TRV-PL-09
OTHER EXPENSES – AP-TRV-PL-14
Slide 32
Summary
Timely substantiation of the business purpose with
adequate documentation of expense – entered into
SAP within 90 days
Full reporting of all travel expenses in SAP TRIP
including all “prepaid” expenses
Slide 33
Federal Regulations
A-21
OMB Circular A-21: Cost
Principles for Educational
Institutions
http://www.whitehouse.gov/omb/circulars_default/
Slide 34
Government Resources
Federal Travel Regulations
http://www.gsa.gov/portal/content/104790
U.S. Department of State
Foreign per diem rates
Travel warnings
http://www.state.gov/
34
Slide 35
General University Travel Policies
Personal expenses not reimbursable
Receipts must be scanned & submitted for expenses greater
than $75.00
Proof of payment required
Slide 36
Alcohol
Unallowable under Federal regulations
Reimbursable with appropriate
documentation
G/L 642001 must be used for alcohol
expense
Slide 37
Types of Travel
Local travel (no overnight stay)
Domestic travel
Foreign travel
Non-employee travel expense
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Slide 38
Local Travel (no overnight stay)
Use petty cash or travel expense reimbursement
Mileage rate (University Finance Website)
Amount is set by IRS
Covers all automobile expenses
Gas/oil
Maintenance
Car insurance
Slide 39
Foreign Travel Resources
Travel registry
Export controls
Per diem rates
http://aoprals.state.gov/CONTENT.ASP?CONTENT_ID=184&MENU_I
D=78
Exchange rates
www.oanda.com
JHU International Travel Clinic
http://ssc.jhmi.edu/supplychain/travel/travel_international.html
Slide 40
Payment Methods
Objective: Minimize the amount of outof-pocket expenses incurred by traveler.
1. JP Morgan travel corporate card
2. Advance payments
40
Slide 41
Advance Payments
Expense
Hotel
Registration Fees
Transportation
Payment Method
Online Payment
Request
Online Payment
Request or
Procurement Card
Online Payment
Request or Trip
Reimbursement
Slide 42
When will I get my reimbursement?
Requests are processed within 10 business
days of receipt.
Accounts Payable cannot give information on
when the check will arrive at its destination.
If an employee has direct deposit, it takes
three to four business days after the
transaction date for the funds to appear in the
employee’s account.
Slide 43
University Policies
JHU Business Travel and Expense Guide
http://finance.jhu.edu/policy_procedures/dept_policy_proc
edures.html
Slide 44
General University Travel Policies
May use any travel agency
http://ssc.jhmi.edu/supplychain/travel/index.html
Other JHU Agreements
See Purchasing Hot News
http://www.jhu.edu/~purchasing/jhuonly/Hot_News.htm
l
Slide 45
Resources
Currency conversion rates:
http://www.oanda.com
Per diem rates:
http://aoprals.state.gov/content.asp?content_id=184&menu_id=78
Federal regulations/travel advisories:
http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html
Slide 46
Q&A
We’re going to open the phone lines now!
There will be a slight pause, and then a recorded voice will provide
instructions on how to ask questions over this conference call line.
We’ll be answering questions in the order that we receive them.
We’ll also be answering the questions that were emailed to us
during the presentation.
If there’s a question that we can’t answer, we’ll do some research
after this session, and then email the answer to all participants.
Slide 47
Thank You!
Thank you for participating!
We would love to hear from you.
Are there certain topics that you would like us to cover in future
FastFacts sessions?
Would you like to be a FastFacts presenter?
Please email us at: [email protected]
Slide 48
Survey
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Your feedback will help us as we plan future FastFacts sessions.
Click this link to access the survey…
http://connect.johnshopkins.edu/fastfactssurvey/
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