brandeis university financial affairs and treasury services
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Brandeis University Financial Affairs and Treasury Services. Travel and Business Expense Policies Training Seminar July 2006. Introduction. Welcome! Presenters Loretta Bemis Sr. Director of Financial Services [email protected] 6-8686 Ofer Ben-Gai Director of Disbursements - PowerPoint PPT PresentationTRANSCRIPT
Brandeis UniversityFinancial Affairs and
Treasury Services
Travel and Business Expense Policies
Training SeminarJuly 2006
Introduction Welcome! Presenters
• 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
Housekeeping Policy Advisory Committees Agenda
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
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 organization’s established travel policy• Lowest commercial airfare; US flag carrier required for
international travel • Alcohol not allowed
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
What’s 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
What’s 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
When is it effective?
July 1, 2006
Who is impacted?
Faculty Staff Students Invited guests Funding source not a consideration!
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
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
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
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 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? 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
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)
Questions?
Break for 5 minutes
Forms
Payment Request Form Travel Advance Request Long Term Activity Advance Petty Cash Travel and Business Expense Report
Questions?
• 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/