Brandeis University Financial Affairs and Treasury Services

1. Brandeis UniversityFinancial Affairs and Treasury Services Travel and Business Expense Policies Training Seminar July 2006

2. Introduction • Welcome! • Presenters • Loretta Bemis • Sr. Director of Financial Services • lbemis@brandeis.edu • 6-8686 • Ofer Ben-Gai • Director of Disbursements • obengai@brandeis.edu • 6-4471 • Liz Fenick • Accounts Payable Manager • efenick@brandeis.edu • 6-4483 • Housekeeping • Policy Advisory Committees • Agenda

3. 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

4. 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

5. 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

6. 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

7. 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

8. When is it effective? • July 1, 2006

9. Who is impacted? • Faculty • Staff • Students • Invited guests • Funding source not a consideration!

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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)

16. Questions? • Break for 5 minutes

17. Forms • Payment Request Form • Travel Advance Request • Long Term Activity Advance • Petty Cash • Travel and Business Expense Report

18. Questions? • Loretta Bemis: Sr. Director of Financial Services • lbemis@brandeis.edu • 6-8686 • Ofer Ben-Gai: Director of Disbursements • obengai@brandeis.edu • 6-4471 • Liz Fenick: Accounts Payable Manager • efenick@brandeis.edu • 6-4483 • Link to policies and forms • http://www.brandeis.edu/financialaffairs/policies/