Proposed Lean Travel & Conference Policy Updates

1. Proposed Lean Travel & Conference Policy Updates Renamed: Business Expense and Travel Reimbursement Policy April 2019

2. Project Charter • Problems being addressed: UR Travel Policy is • Not clear enough to ensure compliance with IRS • Not aligned with peers • Outdated • Use Lean to (our Reason for Action): • Ensure compliance with current IRS Accountable Plan Rules • Benchmark/Align with peers • Address preferred purchasing methods • Enhance communications and training 2

3. Key Stakeholders Project Sponsor: Elizabeth A Milavec, AVP Financial Operations & Controller Project Manager: Marta Herman, Accounts Payable Manager • Caroline Burnicki, Sr Director for Tax Compliance • Gunta Liders, AVP for Research and Project Admin • Alan Ryon, Manager for International Travel and Security • Scott Lawlor, Audit Supervisor • Kathy King-Griswold, Associate Treasurer & Director of Treasury Operations & Compliance • Luis Perez, Sr Purchasing Manager • Erin Johnson, Travel Accountant Cheryl Bennett (10) Roger Smith (20, 21, 22) Brian Donovan (23) Tracy Korts (24) Michele Gibson/Jen Horn (30) Bill Passalacqua (40) Carrie Fuller-Spencer (50) Kelly Talarczyk (60) Sheryl Burgstrom (70) Kathy Strojny (90) Jill Hetterich (91) Ed Reif (92) 3

4. Core Team Overall attendance 80%! 4

5. IRS Compliance Keys • Timeliness of expense submissions • 60 days = IRS reasonable amount of time • Expense documentation details including business purpose explanations • Most room for improvement needed on the “why” = business connection for incurring the expense • Fly America Act: US air carrier for federally funded activities • Exceptions should be documented properly 5

6. BENCHMARKING • Cornell • Per diem • Documentation requirements • Brown University • Business Purpose Policy • Missing Receipt Form • NYU • Fly America • Per diem • Documentation requirements • Columbia • Supplemental approval • Documentation requirements • Stanford • Reasonableness • Per diem • Per Diem • Johns Hopkins • Northwestern • Missing Receipt Form • Harvard • Yale 6

7. SURVEY RESULTS • 700 responses • 25%: “I am not familiar…with UR’s travel policy…” • 57%: Not in favor of per diem • However, per diem: • Complies with IRS • Better and necessary for some specialty travel • Is Lean • Aligns with peers 7

8. SURVEY RESULTS • 80% would prefer to keep or lower the dollar threshold for receipts • However, raising the threshold to $50 is • lower than the IRS threshold • better for maintaining compliance • lean • aligns better with some peers • 82% in favor of 60 days or less for submitting expenses • 60 days aligns with the IRS and benchmarks: Brown, NYU, Vanderbilt • Is better than a lower # of days for maintaining compliance • 30 days: Cornell and Northwestern • 10 days: Yale, Stanford, Duke, Emory, Columbia • Training: In-person classroom preferred over MyPath 8

9. Project Timeline Key Stakeholder Updates Recommendations to Key Stakeholders Project kickoff Key Stakeholder Updates Implementation Phase 2019 2018 3Q2018 May 2018 2Q2019 4Q2018 1Q2019 Training Core Team Meetings New Policy Effective Publish Updated Policy Core Team Finalize Recommendations 9

10. BUDGET/SPEND TRENDS • Average reimbursement has only grown 1.4% over the last 4 years • However volume of reimbursements has grown 10% and reimbursement dollars 11.5% 10

11. Data Analysis – To be updated based on FY2019 results **Non-grant annual growth should be limited to the same percentage designated for overall budgetary changes **Grant annual growth should match funding %age changes • Year 1 net impact is an increase to expense due to UR and grant growth while policy and related initiatives are rolling out • Thereafter, direct impact from strategic sourcing and F2 usage drive savings 11

12. Key Updates • Divisions/Departments may chose to publish more strict/detailed policies and procedures • These policies are monitored for compliance within those areas, not by Accounts Payable • You must adhere to the more strict policy • Timeliness • F3 or F34 expense report must be submitted to the Department for review and approval within 60 days from the date of event, return from trip, or date of expenditure if no event or trip involved. 12

13. Key Updates • Overview • Buying & Paying Guide • No sales tax reimbursement for capital purchases on F3 • Responsibilities as an initiator or someone incurring expenses as well as approver • Reasonableness • Reimbursement via cash from cashiering window • Eliminated for employees • Capped at $50 for students 13

14. Key Updates • Documentation • Business Purpose emphasized and clarified • Original receipts: electronic/scanned are ok • Employees and departments should take necessary precautions and implement procedures to ensure the same expense is not submitted multiple times. • Receipt Threshold: $50 • If expense item is under $50, employee is still required to provide the name of the vendor, location, date, dollar amount of the expense, and a description • If expense item is $50+ and no receipt available, Missing Receipt Form is required 14

15. Key Updates • Documentation • International Travel • Faculty, Staff, and Students that are traveling abroad on UR sponsored or supported activity are required to register their trip with the Office for Global Engagement. • Fly America Act • Fly America Exception Form 15

16. Key Updates • Per Diem • Meals & Incidentals • Lodging: Only for international travel • Use of federal per diem rates and guidelines GSA.gov/Perdiem • Allowance for first/last day of trip • How to adjust per diem reimbursement when a meal was hosted 16

17. Key Updates • Travel arrangements • Benefits of travel agent/F2 process highlighted • Information/Clarifications provided for travel accident insurance and car rental insurance • Mileage • FAQ-type clarifications provided with examples including diagrams • New form: Mileage Log 17

18. Form Updates • Major Updates: • F3 Employee Business Expense Report • F34 Student Business Expense Report • Redesigned to start transitioning towards Workday entry of expense reports • Identify expense type then fill in details/explanations for each item • Space provided for each expense item to detail and explain • Minor Updates: • F2 Request for Advance Air Reservation • AMEX Corporate Card Application (fillable) 18

19. Ongoing Monitoring for success • Annual Policy review • Survey to get policy feedback • Track form usage • AMEX applications, F2 usage, etc. • Track per diem usage • Measure timeliness change (improvement) • Measure payment type volumes • Direct deposit vs check vs cashiering location • Cash advances OTHERS? 19

20. Communications 20

21. TRAINING • Annual updates will be incorporated into training materials • Track frequently asked questions • OUA observations • Results from monitoring activities/metrics • Results from survey responses 21

22. Spinoff Projects • Other policies in development or review: • Moving/Relocation Policy • Taxable Payments to Individuals • Sales Tax Policy • Card solutions being considered for alternative/preferred payment methods: • Research Subject Card solution(s) • Event Card solution • Travel card solution (students travelling with employees) • Cash advance/disbursement analysis • University-pay advance reservations for hotels (room charge and hotel taxes only) 22