This program supports the University of St. Thomas’ compliance with the Internal Revenue Service’s (IRS) Code and Regulations.  This program provides the guidelines for determining the taxability of employee reimbursements.  This process applies only to employees of the University of St. Thomas.  It does not apply to reimbursements made to non-employees.

 

 

 

This policy has been established to provide guidelines on university reimbursement for those expenses incurred by university employees on business. It is university policy to reimburse employees for all expenses that are reasonable, necessary, and actually incurred for authorized university business.

 

Employees are expected to:

 

·         Exercise good judgment with respect to expenses, determining the most economical means of obtaining lodging, meals, transportation, supplies, etc.

·         Spend university money carefully and judiciously.

·         Claim reimbursement only for necessary and reasonable expenses (i.e., employees are expected neither to lose nor gain financially).

 

Supervisor / Person Authorizing the Expenses – the supervisor or other authorized person is more familiar with expenses incurred on behalf of their departments.  This individual is responsible for approving the expense reimbursements.  Therefore, these signers have a primary responsibility for ensuring compliance with this policy.  This responsible person must verify that expenses and expense reports meet the following criteria:

 

·         The expense was incurred while conducting university business;

·         The information contained on the expense report and in the attached documentation is accurate and in accordance with this policy;

·         The expenditure is charged to the proper index and account; and

·         Budget is available for the reimbursement.

 

Travel – Business travel expenses will be paid by the university if they are reasonable, appropriately documented, properly authorized, and within the guidelines of this policy.  Travel should be used to accomplish university business objectives in a cost-efficient manner.  Activities that justify the reimbursement of travel expenses include attendance at or conducting business meetings, conventions, conferences and seminars, or other functions related to the employee’s position. An employee must obtain prior approval for travel from his or her department head.  (See Sections 4 and 5 of this program for more guidance.)

 

Per Diems – The university does not permit the use or distributions of daily per diems while on travel.  Only actual expenses incurred that are reasonable and necessary, as well as appropriately substantiated, will be reimbursed to an employee.

 

Cash Advances - Advances are available only with respect to Foreign Travel, Group or Team Travel, or Student Travel.  In addition, an employee may be reimbursed for prepaid travel expenses prior to taking the trip.  These reimbursements are treated as advances.  (See Section 4 of this program for more guidance.)

 

Direct-Bill Arrangements - Individual employees or departments are not authorized to enter into verbal or written, direct-bill arrangements or contracts on behalf of the university. This includes but is not limited to restaurants, transportation services, hotels, catering, printing and copying.

 

Materials - Employees may purchase materials for business purposes and be reimbursed by the department.  Reimbursements for office supplies are limited to $50.  Reimbursements for other business materials are limited to $250.  Sales tax on such purchases will not be reimbursed.  Purchases in excess of these limits must be made through the purchasing process and may not be reimbursed to an employee.  (See Section 6.1 of this program for more guidance.)

 

Non-Reimbursable Expenses – The following items are listed to illustrate those types of expenses that the university would not reimburse to an employee through this program.  This listing is not intended to be all-inclusive.

 

·         Portion of air travel, train travel, auto rental, mileage, hotel costs, or meals for personal use (See Section 4.7)

·         Baby-sitter fees, kennel costs, pet or house-sitting fees

·         Home phone lines, DSL services, cable or internet access without prior Human Resources approval

·         Bus costs or mileage between their home and the University of St. Thomas (See Section 5.1)

·         Mileage between the Minneapolis and St. Paul campus (See Section 5.1)

·         Purchase of car rental insurance (See Section 5.1)

·         Parking tickets, traffic violations, or personal automobile repairs (See Section 5.1)

·         Upgrades (air, hotel, car, etc.) (See Sections 5.1 and 5.2)

·         Purchase of flight insurance (See Section 5.2)

·         Frequent Flyer Tickets (See Section 5.2)

·         Airline Club Memberships (See Section 5.2)

·         Costs incurred by failure to cancel reservations  (See Sections 5.1, 5.2 and 5.3)

·         Personal entertainment, in-room movies, video rentals (See Section 5.3)

·         Personal expenses including haircuts, shoe shines, saunas, massages and health club/recreational club fees (See Section 5.3)

·         Sales tax paid on purchases of office supplies and other business materials (See Section 6.1)

·         Furniture, fixtures, and equipment (See Section 6.1)

·         Carpet, paint, wallpaper, or other building or remodeling goods and services (See Section.6.1)

·         Memberships and subscriptions for the university (See Section 6.5)

·         Flowers for employees, except from the President’s Office and Human Resources (See Section 6.6)

·         Gifts to employees, departing employees, Christmas parties and gifts, and retirement gifts (other than those purchased through University Relations)  (See Section 6.7)

·         Charitable contributions  (See Section 6.10)

·         Payment of job candidate expenses  (See Section 6.11)

·         Payment to a third party for services rendered or reimbursement of expenses (See Section 6.12)

·         Payments to foreign individuals (See Section 6.13)

·         Credit card delinquency fees or finance charges (See Section 7 of this program)

·         Other non-business items

 

Substantiation - If the expenses of an employee are not substantiated with original detailed receipts and descriptions of business purpose, the amount reimbursed will be included in his or her Form W-2.  To be excluded from income, adequate substantiation is required for any expenditure, regardless of the reimbursement payment method.  Original documentary evidence such as receipts or paid bills is sufficient to support an expenditure.  Documentary evidence will be considered adequate to support an expenditure if it includes sufficient information to establish the amount, date, place and business purpose of the expenditure.  The substantiation must show both proof of purchase and proof of payment.

 

Review Process - A critical review of a business expense will be made to ascertain that the expense is necessary and reasonable to the functioning of the university.  Accounts Payable may ask for additional substantiation where more information is needed to establish a reasonable and necessary business purpose.

 

Employee Expense Report - The university requests that the Employee Expense Report be submitted promptly.  An expense report should be completed within 10 working days after the expenses are incurred or after completion of a trip.  Reimbursements of expenses submitted after 90 days from the date they were incurred will be treated as salary.

 

The Accounts Payable Manager must approve any exception to this policy upon proper showing of special circumstances warranting such exception.

 

 

 

2.1                 Employee Expense Report

 

The university complies with IRS standards and guidelines for an accountable reimbursable plan.  An Employee Expense Report must be completed in order for an employee to be reimbursed for any and all business expenses.  The instructions for completing the form are on the back of the form.  This form should be used for all expenses reimbursed to an employee.

 

At lease two distinct signatures are needed on the Employee Expense Report:  the employee’s and the person authorizing such expenses.  This generally is the employee’s supervisor.    For example:

 

Ø       Faculty and other academic department employees generally must obtain the Department Chair’s approval

Ø       Faculty Department Chairs must generally obtain their Dean’s approval. 

Ø       Deans must generally obtain their Vice President’s approval. 

Ø       Staff must generally obtain their direct supervisor’s approval.

Ø       Department Heads must generally obtain their Vice President’s approval.

 

If an employee is incurring expenses authorized by a different department from which he or she works, the employee must obtain the signature of the person authorizing such expenses.

 

Before signing the Employee Expense Report, the supervisor or other authorized person must verify that expenses and expense reports meet the following criteria:

 

·         The expense was incurred while conducting university business;

·         The information contained on the expense report and in the attached documentation is accurate and in accordance with this policy;

·         The expenditure is charged to the proper index and account; and

·         Budget is available for the reimbursement.

 

If a supervisor or authorized person is present when the expense is incurred (i.e., also is at the dinner), then that supervisor’s signature is not adequate and the approval must go up one level.  In other words, an employee cannot approve an expense for which he or she received a benefit. 

 

It is at the discretion of Accounts Payable to request Vice President approval on any employee reimbursement.

 

Documentation:  Itemize all expenditures by date and attach all original receipts.  Original detailed receipts must be submitted for all reimbursements.  Copies of receipts are not sufficient documentation.  In addition, the business purpose of each expense must be described on the reimbursement form.  Cash register receipts or detailed itemized receipts are required for multiple item charges. 

 

Information must be provided to establish the amount, date, place and essential purpose of the expense.  Substantiation must be provided to show both proof of purchase and proof of payment.  Many times, these both will be substantiated with a single original receipt.  However, sometimes an original receipt will not show the method of payment.  In those situations, the employee must also provide proof of payment.  The employee must provide a copy of a cancelled check or a copy of a credit card statement in addition to the original receipt.  Cancelled checks or credit card statements by themselves are not adequate substantiation, though they may need to be submitted to provide proof of payment.

 

Converting Foreign Currencies – Employee Expense Reports must be submitted in U.S. dollars with an explanation and translation of the foreign receipts and their conversions.  The currency conversion rate should be noted on the form.  Travelers must use the currency rates that were in effect when travel took place.  Therefore, currency exchange receipts should be saved and used for converting foreign currencies back to U.S. dollars on the expense report.  A spreadsheet is available through Accounts Payable to aid employees in detailing the conversion into U.S. dollars.  Please contact Accounts Payable at x2-6375 for more information.

 

2.2                 Examples of Documentation

 

The documentation needed for reimbursement of expenses, broken out in specific groups, is as follows: 

 

Reporting Ground Transportation Expense – (See Section 5.1 for more detailed information.)  When submitting Employee Expense Reports, the documentation required to substantiate ground transportation includes the following:

1)       For the use of personal cars, the number of miles to and from the destination.

2)       Original car rental agreement as well as the original payment receipt.

3)       For rental cars, original receipts of gas charges.

4)       For university vehicles, original receipts of gas charges.

5)       Separate taxi or shuttle receipts for each trip.

6)       Destination and business purpose of travel, including itinerary or agenda of trip.

 

Reporting Air Travel Expense – (See Section 5.2 for more detailed information.)  When submitting Employee Expense Reports, the documentation required to substantiate airfare includes the following:

1)       Airline tickets:  original invoice or airline itinerary showing charge and payment method.

2)       E-Tickets:  (a) airline receipt/itinerary showing proof of payment or (b) airline receipt/itinerary and charge card receipt.

3)       Foreign air travel:  daily agenda of trip.

4)       All air travel:  Destination and business purpose of travel.

 

Reporting Lodging Expenses – (See Section 5.3 for more detailed information.)  When submitting Employee Expense Reports, the documentation required to substantiate lodging includes the following:

1)       Original receipt from the hotel showing itemized breakout of expenses including room charge, applicable taxes, meals, movies, phone calls, etc.  (Only business-related expenses will be reimbursed.)

2)       Charge card receipt if the original receipt does not show a zero balance or “paid in full”.

3)       Business purpose of stay.

4)       Business purpose of non-room charges, including phone calls.

 

Reporting Meals and Entertainment Expenses – (See Sections 5.4 and 6.2 for more detailed information.)  When submitting Employee Expense Reports, the receipts required to substantiate meals and entertainment include the following:

1)       An original receipt showing total expense, including tip, the date, place, detail of items ordered, number of people served.

2)       The business purpose of meal or entertainment, including the destination and the names of the people attending the business meal or entertainment.

 

Reporting of Other Expenses – (See Sections 5.5 and 6 for more detailed information.)  When submitting Employee Expense Reports, the documentation required to substantiate any other expenses (including supplies, registration fees, sundries, membership dues, subscriptions, etc.) are the following:

1)       Original itemized receipt showing the detail of items purchased, and/or the original invoice, the order form, or registration form.

2)       Original charge receipt or other original payment receipt.

3)       Business purpose of expense.

 

2.3                 Timeframe for Reimbursement

 

Employees are encouraged to submit an Employee Expense Report within 10 working days after the expenses are incurred or after completion of a trip.  Reimbursements of expenses submitted after 90 days from the date they were incurred will be treated as salary.

 

 

 

               

The completed Employee Expense Report must be submitted to Accounts Payable, Mail # AQU204.  Accounts Payable will only process the reimbursement payment after it has received all the appropriate information.  If the reimbursement request is not completely filled out, it may be returned to the employee for further information. 

 

After the reimbursement form has been reviewed and approved for payment, it will be paid by Accounts Payable in a timely fashion.  Employees set up for direct deposit will receive a digitally formatted direct deposit statement via encrypted email.  All other employees will receive a check routed to them via inter-campus mail.  As a general rule, checks are not mailed to employees at their home address.

 

4.1                 Preferred Agency

 

It is the policy of the university that all travel be undertaken in the most economical mode consistent with these policies.  Faculty and staff are encouraged to make university travel arrangements with the following agency: 

 

   

                                            Vanguard Travel

                                                        Domestic & International Reservations                                952-392-3100

                                                        Toll-free/24 hour emergency traveler assistance            1-800-783-6028

                                                        Online Reservations                                                                       www.mycliqbook.com

 

                                Please note: When using Vanguard Travel, you will be charged a service charge to book your travel

                                accommodations with their agency. 

                                More information is available on the Purchasing Services website: www.stthomas.edu/purchasingsvcs.

            

 

4.2                 Team Travel

 

Athletic team travel and travel by coaches and athletic staff are subject to NCAA rules and regulations.  Therefore, any athletic team-related travel must be authorized by the designated staff member and appropriate budget person in the Athletics Department.

 

 

4.3                 Grant Travel

Travel funded through grants is subject to applicable regulations and/or the terms and conditions of the agreement.

 

4.4                 Student Travel

 

Students and Student Clubs traveling on behalf of the university and incurring reimbursable expenses should adhere to the policies found in the Student Policies and Procedures.

 

4.5                 Cash Advance Information

 

Cash advances are given to employees involved with Foreign Travel, Group/Team Travel, and Student Travel.  Group travel for the university is defined as students traveling with one or more staff or faculty member on the same trip.  (Group travel is not defined as a group of employees traveling together.)  No cash advances will be issued to non-employee or non-student travelers.

 

Cash advances are available through the Accounts Payable by completing a Cash Advance Request.  Contact Accounts Payable at x2-6375 for more information.  For Group/Team Travel, one employee must be designated to be responsible for the advance and will need to complete the required paperwork before receiving the money. 

 

A cash advance is a personal liability to the employee until he or she has provided the appropriate documentation and returned any excess funds.  Therefore, the department account will not be charged with the expenses until they have been substantiated after the trip.  The Cash Advance Request should specify the traveler’s destination, estimated costs and dates of travel.

 

The Cash Advance Request should be submitted at least fourteen (14) working days before the anticipated trip.  The funds requested will be provided no earlier than 5 days before the trip begins. 

 

The employee must sign the Cash Advance Request.  The person authorizing such expenses to be incurred must also sign the request.  At their discretion, Accounts Payable can also ask for Vice President approval.

 

All cash advances are to be settled within thirty (30) days after return from the trip by completing an Employee Expense Report and submitting it to Accounts Payable with appropriate substantiation.  Original receipts must be submitted.  Amounts owed to the employee will be processed in the normal course of business.  Per IRS guidelines, employees are not to retain unused portions of advance funds for future trips.  The unused portion must be returned to Accounts Payable by attaching a check to the reimbursement form. 

 

An employee may only have one cash advance outstanding at any given time.

 

Taxation - If the unused portion of the cash advance is not returned or the expenses are not substantiated within forty-five (45) days from the return of travel, those amounts will be taxable income to the employee and included in his or her Form W-2.

 

Once an unsettled cash advance has been added to the employee’s W-2, it cannot be reversed even if settled.

 

Delinquency Issues - Any person with a cash advance account in poor standing will not be allowed additional cash advances or reimbursements until their account is made current.  A cash advance account is deemed to be in poor standing when the amount has not been substantiated and/or any excess has not been returned to Accounts Payable within 30 days of the employee’s return from travel. Cash advance issues will prohibit an employee from receiving future cash advances.  Issues with cash advances will be turned over to Human Resources as an employment concern.

 

4.6                 Reimbursement of Prepaid Travel Expenses

 

If an employee incurs travel expense before the trip occurs, the employee has two options for reimbursement:

 

1.        After the employee takes the trip, he or she can be reimbursed by completing an Employee Expense Report.

·          

·         All original receipts for reimbursed expenses must be attached to the form.

 

2.        If the employee wishes to be reimbursed before taking the trip, he or she can complete the Prepaid Expense Request.

·         For tax purposes, the reimbursement is treated as an advance.

·         The employee is responsible for providing the appropriate substantiation and original receipts with the Prepaid Expense Request.

·         The expenses will be charged to the department at the time the Prepaid Expense Request is paid.

·         Within 30 days from the return of his or her trip, the employee must complete an Employee Expense Report and document that the expenses were in fact completely incurred (i.e., the trip was taken) as well as submit other appropriate original receipts.  If the appropriate substantiation is not made within this time period, the procedures laid out above in the “Taxation” and “Delinquency” parts of Section 4.5 will apply to such reimbursement.

 

For example, if an employee purchases airfare tickets in advance of the trip, or pays for lodging or registration fees in advance, he or she may be reimbursed by submitting a Prepaid Expense Request prior to the start of their trip.  In such cases, the reimbursement will be treated as an advance for tax purposes, though the expenses will be directly charged to the account at that time.  The employee will be responsible for completing an Employee Expense Report within 30 days from the return of their trip.  If the employee fails to complete the Employee Expense Report or otherwise fully substantiate the prepaid expenses within this timeframe, the expenses will be treated as taxable income to such employee.

 

The employee must sign the Prepaid Expense Request.  The person authorizing such expenses to be incurred must also sign the request.  At their discretion, Accounts Payable can also ask for Vice President approval.

 

4.7                 Personal Travel

 

Travelers may combine personal travel with university travel as long as the official trip serves a valid university purpose.  The employee must pay any and all additional costs of the personal portions of the trip.  The employee also has full responsibility and liability for any events that occur during personal portions of the trip.  (Saturday night stays for the benefit of the university are not considered personal travel.)

 

4.8                 Foreign Travel

 

The IRS has specific, complex rules pertaining to foreign travel when combined with personal travel.  There will be greater scrutiny and documentation required when submitting an Employee Expense Report requesting foreign travel expenses to be reimbursed.  Specifically, for trips in excess of 7 days, employees must attach an itinerary or agenda showing the daily details and business purpose of travel, including any dates for personal travel.  If personal travel is included with business travel, a portion of the reimbursed air travel expense may be taxable to the employee.  Prior to making travel arrangements, please contact Accounts Payable at x2-6375 for more information.

 

Obtaining appropriate documentation to substantiate expenses incurred can sometimes be difficult when traveling in foreign countries.  Accounts Payable has a spreadsheet employees can use to help keep track of their expenses on a daily basis.  Employees must keep all of their foreign currency conversion receipts so they will be able to identify the rates for reimbursement.    Employees are encouraged to contact Accounts Payable at x2-6375 with any questions.

 

4.9                 Spousal/Family Travel

 

No Significant Business Purpose:  In general, the expenses of a spouse, family or others accompanying the business traveler are not reimbursable.  The university will not reimburse a spouse’s expenses when she or he has no significant role or performs only incidental duties.  Such attendance does not constitute a valid university business purpose.  Reimbursed expenses where there is no valid business purpose will be included on the employee’s Form W-2 as taxable income and will only be reimbursed with proper Senior Vice President, Executive Vice President, or President approval.

 

Significant Business Purpose:  When a spouse or family member who attends a function has a significant role in the proceedings or is involved with fundraising activities, this constitutes a valid university business purpose.  Prior to travel, such expenses must be approved by the appropriate Senior Vice President, Executive Vice President, or the President.  Such VP or President must also put the business purpose of the spouse’s travel in writing and such detail must be attached to the employee’s reimbursement form.  The VP or President must also sign the employee’s reimbursement form for such expenses.  The spousal travel reimbursement rules are covered under IRS rules and regulations and are subject to high scrutiny.

 

Vice President approval is also required for other non-travel expenditures pertaining to spouses of university employees.

 

 

 

5.1                 Ground Transportation (Account Code 75102 or 75302)

 

Use of Ground Transportation – Employees are expected to exercise prudence in their selection of ground transportation at their destination.  For trips to and from the airport, the employee may use taxis, either from home or from the university.  The employee may also use personal transportation and be reimbursed mileage, either from home or from the university.  Taxi and shuttle receipts are needed for reimbursement.

 

Airport Parking – Employees may park at the airport or at an airport park-and-ride for a maximum of three days.  As another option, employees may leave their car at the university free-of-charge while traveling on university business, provided the car is registered with Public Safety & Parking Services at x 2-5100.  Please contact Public Safety & Parking Services for approval and information on appropriate parking locations.

 

University Vehicle - Employees may use a university fleet vehicle, if available. Fleet vehicles may be obtained through the Public Safety & Parking Services at x 2-5100.  When using a university vehicle for business travel, fuel and oil expenses will be reimbursed at the actual costs paid by the traveler, not the mileage rate. Public Safety & Parking Services has a vehicle use manual that states their restrictions.  Tolls and parking fees are also reimbursable with the appropriate documentation.

 

Personal Car - A personal car may be used when it is the most practical and economical method of transportation.  Normally, this involves trips within 300 miles (one-way) of the employee’s workplace. 

 

Employees using their personal automobile for business travel will be reimbursed at the standard IRS mileage reimbursement rate rather than for actual expenses.  This rate was set at $.36 for 2003 and $.375 for 2004. Parking and tolls are also reimbursable with appropriate documentation.

 

Employees may not be reimbursed for bus costs or mileage between their home and the University of St. Thomas.  These costs are personal commuting expenses.   In addition, employees may not be reimbursed for mileage between the Minneapolis and St. Paul campus.  The shuttle bus should be used for such travel.

 

Employees may be reimbursed for mileage in the following situations:

 

·            Traveling from one campus to another (other than between the Minneapolis and St. Paul campuses) for business meetings or instructing courses (the shuttle bus should be used between the Minneapolis and St. Paul campuses);

·            Traveling to business meeting away from your regular office;

·            Adjunct faculty teaching at a location other than the Minneapolis or St. Paul campuses may be reimbursed for mileage from their main (non-UST) job to the appropriate university campus for instructing courses.  If adjunct faculty do not go directly from their main job to the campus, they will not be reimbursed more than the amount it would have cost them to go directly from their main job to the campus.  If adjunct faculty have no other outside job, they may be reimbursed for the lesser of the mileage calculated (a) from home to the campus or (b) from the program’s campus (either the Minneapolis or St. Paul campus) to the other campus.

 

Please use the following table to calculate mileage between campuses.  The mileage listed is one-way.

 

	St. Paul	Minneapolis	Chaska	Gainey	Airport / Mall of America
St. Paul	X	8	30	73	7
Minneapolis	8	X	25	70	11
Chaska	30	25	X	55	25
Gainey	73	70	55	X	60
Airport / Mall Of America	7	11	25	60	X

 

Employees using their own cars for university business are obligated for damages to their car and liability for injuries/damages sustained by third parties.  In addition, traffic violations are the personal responsibility of the employee.  The employee must have a valid driver’s license and insurance that satisfies the state’s minimum requirements.

 

If the employee elects to drive instead of fly and the distance is more than 300 miles one-way, the university will reimburse the lower of

 

·         the lowest equivalent airfare, as determined by Accounts Payable, that is available at the time of travel, or

·         the equivalent mileage. 

 

Travelers who choose to use their personal vehicles instead of available commercial air service will not be reimbursed for food or lodging expenses that would have been avoided by using commercial air service. 

 

Car Rental – Arrangements for rental cars may be made through a UST contracted agency for additional discounts.  Please contact Accounts Payable at x2-6375 for a list of current preferred agencies.  All rental cars should be standard or compact size cars.  Full-size cars may be used when traveling in groups.  A car may not be rented through the university for personal travel.

 

Automobiles may be rented using the following guidelines:

 

·         Do not accept the Collision Damage Waiver (CDW) and Personal Accident Insurance (PAI), unless renting a car in a foreign country.  The university provides insurance coverage.  Generally, the request to sign the CDW is optional and not mandatory for car rental.

·         Return the rental car to the agency with a full tank of gas.  This provides significant savings because most car rental companies calculate the refueling charge by how many miles the car has been driven, and not how much gas it takes to actually fill up the tank. The university will not reimburse gas charges resulting from tanks refilled by the rental agency.

·         The university will not reimburse any fuel purchased in advance.  Do not accept this provision when renting a car.

·         Attach the rental agreement as well as the receipt to your reimbursement form.

·         Attach any original gas charge receipts relating to the car rental travel.

·         Mileage is not reimbursed in addition to the car rental charge and gasoline charges.

·         Charges for unused reservations or those not cancelled in a timely manner are the employee’s personal responsibility and are not reimbursable.

·         Cancellation fees are not reimbursable unless the employee can establish and document the business purpose for such cancellation.

 

There are certain restrictions for travelers under the age of 25.  Travelers under age 25 should inform the reservation agent of their age when making car rental reservations.

 

Rail – The university will reimburse the cost of first class railroad fare plus the lowest priced available Pullman facilities not to exceed the cost of coach airfare.

 

Travelers who choose to use rail instead of available commercial air service will not be reimbursed for food or lodging expenses that would have been avoided by using commercial air service. 

 

Charges for unused reservations or those not cancelled in a timely manner are the employee’s personal responsibility and are not reimbursable.  Cancellation fees are not reimbursable unless the employee can establish and document the business purpose for such cancellation.

 

5.2                 Air Transportation (Account Code 75101 or 75301)

 

Employees are encouraged to purchase airline tickets through the UST preferred agency. (See Section 4.1)  The purchase of airline tickets should be made as far in advance as possible to take advantage of maximum discounts available.

 

The employee has two options for reimbursement:

 

1.        After the employee takes the trip, he or she can be reimbursed by completing an Employee Expense Report.

·         All original receipts for reimbursed expenses must be attached to the form. 

 

2.        If the employee wishes to be reimbursed before taking the trip, he or she can complete the Prepaid Expense Request.

·         For tax purposes, the reimbursement is treated as an advance.

·         The employee is responsible for providing the appropriate substantiation and original receipts with the Prepaid Expense Request.

·         The expenses will be charged to the department at the time the Prepaid Expense Request is paid.

·         Within 30 days from the return of his or her trip, the employee must complete an Employee Expense Report and document that the expenses were in fact completely incurred (i.e., the trip was taken) as well as submit other appropriate original receipts.  If the appropriate substantiation is not made within this time period, the procedures laid out above in the “Taxation” and “Delinquency” parts of Section 4.5 will apply to such reimbursement.

·         See Section 4.6 for more information.

 

University travelers are prohibited from traveling in their own or rented personal aircraft when on university business.

 

Airline Reservations - All employees are expected to travel coach.  When traveling internationally, employees may travel business class.  (International travel is defined as travel outside of North America, not including Canada, Bahamas, Cuba, Mexico or the Caribbean.)  Reimbursements of first class air travel will be discounted.  In addition, upgrades and flight insurance are not reimbursable.

 

Saturday Night Stays - Saturday night stays are encouraged when it results in significant airline fare reductions.  The university will reimburse the lodging and meals relating to the early arrival or late return.  Travelers must fully document the cost benefit of staying over a Saturday night.

 

Multiple Reservations - Do not make duplicate or multiple reservations (i.e., back-to-backs).  Any penalties or costs incurred as a result of duplicate or multiple reservations are not reimbursable.

 

Frequent Flyer Miles – Frequent Flyer miles earned while traveling on university business belong to the employee.  However, preference of airlines by employees to attain mileage incentives should in no way influence the employee to accept a higher fare.  Frequent flyer vouchers used for university business trips are not reimbursable.

 

Canceled Travel – When reservations are made through the UST preferred agency and subsequently canceled, alert Northwestern Business Travel at (952) 831-8373 and Accounts Payable at x2-6375 as soon as possible.  You may also need to return the complete unused ticket to the agency.

 

In the event a trip is canceled for which the employee used a different agency and has received reimbursement from the university through a Prepaid Expense Request, please notify Accounts Payable at x2-6375 as soon as possible.  Such reimbursement will need to be returned to the university in order for the prepaid reimbursement to be cleared from the employee’s name.

 

Cancellation fees are not reimbursable unless the employee can establish and document the business purpose for such cancellation.

 

Ticket Delivery – It is the employee’s responsibility to request the specific delivery method and location when making reservations.

 

Airline Club Memberships – The university does not pay for airline club memberships.  An employee wishing to belong to one of these clubs must make a personal, non-reimbursable payment to the club.

 

5.3                 Lodging (Account Code 75103 or 75303)

 

Reservations for business trips may be made through a UST preferred agency.  Corporate and consortium rates for major hotel chains are available.  Original detailed receipts for all lodging must be submitted for reimbursements.  Charges for unused reservations or those not cancelled in a timely manner are the employee’s personal responsibility and are not reimbursable.

 

Reimbursable lodging expenses include the room charges and tax when the business activity requires an overnight hotel stay.  If an employee’s spouse or family accompanies an employee, only the single rate will be reimbursed.  Laundry bills on business trips extending beyond seven (7) business days may be reimbursed if the original receipts are provided.

 

 

 

The following lodging expenses are not reimbursable:

·         In-room movies

·         In-room bars

·         Alcohol

·         Other non-business expenses

 

5.4                 Meals and Entertainment (Account Code 75104 or 75304)

 

Meal Charges - The university will reimburse employees traveling on business for meals (defined as breakfast, lunch and dinner) actually incurred provided such expenses are reasonable and appropriate.  The cost of meals includes taxes and tips.   Employees are expected to keep meal costs reasonable.  Suggested spending for meals should not exceed $50 per day. The university suggests a gratuity rate of 15% for meals.  Original receipts should document the date, place, attendees, business purpose, meal, and cost, including tip.

 

Entertainment Charges – Expenditures associated with meals or entertainment of one or more guests are allowable if the meal entertainment is related to a legitimate university business purpose.  Appropriate documentation must be made stating who attended, the business connection, business purpose, and place.

 

5.5                 Other Travel Expenses

 

Communications Charges (Account Code 75105 or 75306) – All business-related telephone, fax, computer and postage costs incurred during the business travel are reimbursable.  Employees should use the most economical means of communication.  Original documentation, including business purpose, of each charge must be submitted for reimbursement. 

 

The university understands the need for employees to communicate with their home while away on business.  Personal calls are expected to be brief and should be limited to one personal phone call per travel day unless there is reasonable cause.

 

Currency Conversion Fees (Account Code 75105 or 75306) – Any conversion fees incurred by employees while on business travel in a foreign country are reimbursable with the appropriate documentation.

 

Registration Fees (Account Code 75305) – Employees may be reimbursed for registration fees for conferences and seminars.  Original documentation, including business purpose of the conference, must be submitted with the reimbursement form.

 

Generally, all registrations for conferences must be paid directly by the employee and reimbursed.  On an exception base only, registration for a conference may be paid directly by the University of St. Thomas.  In order to qualify for this exception, several criteria must be met:

 

Exception A

·         The registration must be for a group of employees attending the same conference.

·         One Prepaid Expense Request must be completed.  This form must list each employee registering for the conference. 

·         In the “Business Purpose” section of the form, it must be indicated that the registration should be paid directly by UST. 

·         Copies of the registration forms for each employee must be attached for mailing with the check. 

·         A copy of the Prepaid Expense Request should be made for each employee.   

·         After the conference, each employee must settle his/her portion of the Prepaid Expense Request.  If the employee has incurred additional expenses, he/she must complete an Employee Expense Report and attach the copy of the Prepaid Expense Request in accordance with the policies and procedures of the Employee Expense Program.  If the employee has not incurred additional expenses, he/she must send in the copy of the Prepaid Expense Request stating that fact. 

 

Exception B

·         The registration must be for an employee attending a conference that does not accept credit cards.

·         A Prepaid Expense Request must be completed.   

·         In the “Business Purpose” section of the form, it must be indicated that the registration should be paid directly by UST, noting that the conference does not accept credit cards. 

·         A copy of the registration form for each employee must be attached for mailing with the check.

·         The employee should retain the Employee Expense Report and Employee copies.   

·         After the conference, the employee must settle his/her Prepaid Expense Request.  If the employee has incurred additional expenses, he/she must complete an Employee Expense Report and attach the pink copy of the Prepaid Expense Request in accordance with the policies and procedures of the Employee Expense Program.  If the employee has not incurred additional expenses, he/she must send in the pink copy of the Prepaid Expense Request stating that fact. 

 

 

 

6.1                 Materials

 

Office Supplies –  The university has a contracted vendor for office supplies, Corporate Express http://www.eway.com.  Departments must use this vendor for purchases of office supplies in excess of $50.  Use your index number to order.

 

Employees may purchase office supplies for business purposes and be reimbursed by completing an Employee Expense Report.  Such reimbursements are limited to $50 and sales tax will not be reimbursed.  Purchases in excess of $50 must use the university contract, Corporate Express http://www.eway.com.  The $50 level is a total purchase level, not a per item level.  An employee may not break out purchases in order to circumvent this cap.

 

Other Materials – Employees may be reimbursed for purchases of other university materials.  Such reimbursements are limited to $250 and sales tax will not be reimbursed.    Purchases of materials in excess of $250 must be made through the purchasing process.  The $250 level is a total purchase level, not a per item level.  An employee may not break out purchases in order to circumvent this cap.

 

Returns – If employees need to return an item for which they have already been reimbursed, they should contact Accounts Payable at x2-6375 to obtain the original receipt.  Employees must return the original receipt and the pink cash deposit form showing the funds were deposited into the appropriate account.  If the item is exchanged for another item, the original receipt must be returned with the new exchange receipt.  This must be within thirty (30) days from when they obtained the original receipt.  If the receipt and pink form are not returned within 45 days, the previous reimbursement made to the employee will be treated as taxable income.  The taxation and delinquency rules under Section 9.4.5 will apply.  It is the supervisor’s obligation to ensure that the funds are redeposited into the appropriate account.

 

Office and Building Material Purchases – Facility Planning & Design at Physical Plant is responsible for managing all furniture, fixture and equipment requests.  The university has contracted vendors for furnishings. 

 

Physical Plant also handles carpet, paint, wallpaper, and other building or remodeling goods and services, including appliances, fans, humidifiers, and space heaters.  This assures that departments obtain products appropriate for their needs while meeting university standards. 

 

The university will not reimburse an employee for purchases that fall into any of these categories, which may include equipment such as TVs, VCRs, CD Players and radios.

 

6.2                 Local Meals and Entertainment (Account Code 75401)

 

Local Meals and Entertainment Charges - The university will reimburse employees for local meals and entertainment of one or more guests provided such expenses are reasonable, appropriate and related to a legitimate university business purpose.  The cost of meals and entertainment includes taxes and tips.   The university suggests a gratuity rate of 15% for meals.  Appropriate documentation must be made stating who attended, the business connection, business purpose and place.

 

6.3                 Alcohol (Account Code 75401)

 

For alcohol to be served at a university function or university event, on campus or off campus, an employee must obtain approval by completing a “Request to Serve/Use Alcoholic Beverages” form through Facilities Scheduling.  The approval must be obtained prior to the function or event.  Such expenses will be reimbursed provided that an approved copy of the request and appropriate substantiation is attached to the Employee Expense Report.  The employee must have the Executive Vice President’s approval on such form. 

 

The “Request to Serve/Use Alcoholic Beverages” form is not needed when an employee is seeking reimbursement for alcohol consumed during a business meal.  It is only needed for university events or university sponsored functions.  Generally, business meals will not be considered university events or functions.

 

It is at the discretion of Accounts Payable to request Vice President approval on any employee reimbursement.

 

6.4                 Registration Fees (Account Code 75305)

 

Employees may be reimbursed for registration fees for conferences and seminars.  Original documentation, including business purpose of the conference, must be noted on the reimbursement form.

 

 

 

6.5                 Memberships and Subscriptions

 

Country Club Memberships – Reimbursement of country club memberships must be approved by the Executive Vice President or President.  The IRS has specific rules on the taxation of club memberships paid on behalf of employees.  If the university reimburses club dues and other membership costs to a UST employee, the personal use percentage of such costs must be included in the employee’s taxable income.  The employee must complete the Allocation of Personal and Business Expenses – Club Memberships form.  This form must be submitted annually to the Controller’s Office by March 31^st reporting the breakdown between personal and business use of the club.

 

Personal Memberships and Subscriptions - Employees may be reimbursed for personal memberships and subscriptions where there is an appropriate business purpose.  This includes memberships in professional organizations or subscriptions to professional magazines that are in the employee’s name, not the university’s name.  Such memberships or subscriptions must be a requirement of the employee’s job and approved by their department.  Original documentation, including the business purpose of the expense, must be noted on the reimbursement form. 

 

University Memberships and Subscriptions - Employees may not be reimbursed for university memberships and subscriptions.  Such payments must be made through the purchasing process and the memberships or subscriptions should only be to the university address.

 

6.6                 Floral Purchase and Tributes

 

Tributes – In situations involving death of a family member, only the President’s Office and Human Resources have the authority to make floral purchases for tributes or memorials on behalf of St. Thomas.  In lieu of flowers, a tribute of $75 can be sent to a charity of the university’s choice.  Please direct any question regarding tributes to Human Resources.  Individual or departmental tributes, other than those originating from the President’s Office or Human Resources, will not be reimbursed.

 

Floral Arrangements – Flowers may be sent to an employee within the same department in situations such as illness.  The university asks departments to use their best judgment when choosing to send flowers and suggests spending to remain around $40.

 

Should a specific department or individuals therein wish to send a separate floral arrangement or gift to an employee for births, marriages, illnesses, deaths, or other events, they are to be paid from personal funds of such individuals and are not reimbursable. 

 

Any exceptions to the above policies laid out in this section must be approved by the Vice President for Finance & Administration.

 

Non-Employees – Floral purchases to non-employee will be reimbursed provided that the appropriate documentation and substantiation is provided on the employee’s reimbursement form.  The substantiation must clearly state the necessary business purpose for such purchase.

 

6.7                 Gift Payments to Faculty, Staff and Non-Employees

 

Employee Recognition Events and Gifts - The university understands the need for employee recognition.  Reasonable and occasional employee recognition events will be reimbursable by the university.  Employee recognition gifts may be provided in special circumstances, only when approved by the appropriate Associate Vice President or Vice President.  Such gifts will also be reviewed by the Controller’s Office to determine any tax consequences to the employee recipient. 

 

Employee Gifts - Gifts to individual employees will not be reimbursed.  In addition, St. Thomas will not pay for employee gifts and lunches pertaining to specialty days such as birthdays, employment anniversary days, Secretary’s Day or Boss’s Day.

 

 

Christmas Parties and Gifts - Currently, the President of the university hosts an annual Christmas party that all employees are invited to attend.  As long as the university hosts an annual party, individual departmental holiday parties will not be paid for or reimbursed by St. Thomas.  The university will not reimburse employee holiday gifts.

 

Retirement Gifts - Only University Relations has the authority to purchase retirement gifts.  Please direct any questions pertaining to retirement gifts to University Relations.  Individual retirement gifts, other than those originating from University Relations, will not be reimbursed.

 

Departing Employees - The appropriate Associate Vice President or Vice President must approve the reimbursement of any expense incurred with respect to a departing employee.  This includes expenses incurred for departing gifts and parties.  Such expenses will be limited to the department for which the employee worked and must be reasonable.  Any gifts will also be reviewed by the Controller’s Office to determine any tax consequences to the employee recipient.

 

Any exceptions to the above policies laid out in this section must be approved by the Vice President for Finance & Administration.

 

6.8                 Fellowships, Scholarships and Grants

 

Fellowships, scholarships, or grants awarded to individuals should not be processed on the Employee Expense Report.  The recipients are not employees performing services and therefore cannot satisfy the “business purpose” requirement under an accountable plan as defined by the IRS.

 

6.9                 Moving Expenses

 

A new employee may be eligible for reimbursement of moving expenses.  Moving expenses are reimbursed under the Moving Expense Program.  An Employee Expense Report is not used when getting reimbursed for moving expenses.  Please contact the Controller’s Office at x2-6106 for more information. 

 

Moving expense advances are not available.

 

6.10              Charitable Contributions

 

Under no circumstances may an employee make a contribution to a charitable organization and later request to be reimbursed by the university.  Any request for contributions to be made to an outside charitable organization must be paid directly by the University of St. Thomas and approved by the Executive Vice President or the Vice President for Finance and Administration.

 

6.11               Job Candidate Reimbursements

 

The university reimburses job candidates for expenses.  The job candidate is responsible for payment of his or her travel arrangements and must later seek reimbursement.  The Check Request Form should be used for such reimbursements.

 

Expenses must be reimbursed directly to the job candidate.  An employee may not pay the expenses of a job candidate and later be reimbursed. 

 

6.12              Reimbursements for Payments to Independent Contractors

 

Payments made to independent contractors fall under the Independent Contractor Program.  The independent contractor candidate is responsible for payment of his or her travel arrangements and must later seek reimbursement. 

 

Any fees for services or reimbursements of expenses paid to an independent contractor must be paid directly to them.  An employee of the university cannot request to be reimbursed if they personally make payments to an independent contractor or on behalf of an independent contractor. 

 

6.13              Payments to Foreign Individuals

 

Under no circumstances may an employee make any payment to a foreign individual and later seek reimbursement from the university.  Specific paperwork, analysis, and determinations must be made when making payments to foreign individuals.  Please contact Kirsten Muller in the Controller’s Office at x2-6106 for more information.

 

 

 

All employees who engage in business travel on behalf of the university are encouraged to apply for a University Credit Card.  Employees may use this card for all business travel expenses.  If an employee chooses not to have a University Credit Card, he or she may use his or her own personal credit card.

 

Personal Credit Cards - To get reimbursed for the business charges to a personal credit card, the same procedures laid out above for other employee reimbursements must be followed.  Original detailed receipts must be attached to the reimbursement form.  The credit card statement alone will not satisfy the substantiation rules. 

 

The employee is responsible for paying his or her credit card statement.  The university does not directly pay the credit card bill.  All service charges incurred for late payments are the employee’s responsibility.