2-9-00
BRADLEY UNIVERSITY
TRAVEL EXPENSE REIMBURSEMENT
POLICY AND PROCEDURES
Policy:
The basic rationale underlying all university travel regulations is that we should incur the lowest practical and reasonable expense while completing the travel in an efficient and timely manner. Persons traveling on University business have the duty to exercise care to avoid impropriety, or even the appearance of impropriety, in any travel expense.
Bradley University’s policies for travel reimbursements are subject to the accountable plan rules as set forth by the Internal Revenue Service. The requirements for an accountable plan are:
1. Expenses must be expenses that are incurred by the employee in connection with the performance of service for the employer.
2. Expenses must be substantiated to the employer within a reasonable time period. The elements to be substantiated are amount, time, place and purpose.
3. Employees must return to the payer within a reasonable period of time any amount paid under the arrangement in excess of the substantiated expenses.
If a plan fails to meet the requirements of an accountable plan, the amounts paid under the plan are treated as if paid under a nonaccountable plan and are treated as wages subject to employment taxes and income taxes.
A. In general, University employees are subject to the travel policies and procedures as outlined in the Faculty Handbook and the Administrative Handbook. Employees traveling on a regular, recurring basis should obtain a Bradley VISA card. This card must be used for all pre-approved university related business travel (and only for Bradley University business). For all other travel, the University will reimburse a traveler for items paid personally after travel has taken place. Requests for reimbursement must be made within thirty (30)sixty (60) days after the last day of travel; requests submitted after the thirty (30) sixty (60) day period will not be honored. Reimbursement requests will need to be submitted prior to grant closing dates and the University’s year-end closing at May 31. Original, itemized receipts of all expenditures must be attached to the request for reimbursement. Reimbursement is for actual expenditures . Reimbursement requests submitted by the 1st of the month will be paid by the 15th of that month; requests submitted by the 15th of the month will be paid by the last day of the month. Checks will be sent by the Controller
=s Office to the University employee through campus mail, unless pick-up is specified. If the reimbursement is for less than $200, with proper approval and substantiation as required below, cash may be given at the Cashier=s window in lieu of a check. Cash reimbursements will only be given to the individual requesting the reimbursement (i.e., student workers cannot be sent to pick up the reimbursement).B. Receipts. Proper approval of any reimbursement request must be obtained from the immediate supervisor (e.g., director, department head chairs, dean, provost, vice-president, president). The appropriate account number and sub-code are required on reimbursement requests submitted for approval. Original, itemized receipts must be submitted with the request. To meet IRS accountable plan rules, please indicate on receipts the following : the receipts must indicate:
1. Location of travel
2. Dates of travel
3. Business purpose of travel
4. Attendees
5. Indication that the bill has already been paid by the employee. For instance, for
domestic travel, hotel bills must either show a zero balance due or the employee
must also submit his credit card statement.
Specifically, when requesting reimbursement for conference registrations, a copy of the personal check used to register or charge card documentation along with a copy of the registration form can be submitted in lieu of the actual receipt. Reimbursement for airfare requires either an original itinerary with form of payment indicated or the actual ticket that shows amount paid and form of payment. Coach or tourist fare is reimbursed for air travel. Requests for hotel reimbursements must include the hotel portfolio. Room service and meal charges on the portfolio should be accompanied with an itemized meal receipt, where possible. Adequate substantiation is still required. Hotel reimbursement is only allowed for lodging when traveling on University business away from the University. Miscellaneous charges must be reasonable, itemized, and explained to justify business purpose. Receipts for ground transportation (e.g., taxis, buses) are required, if possible. Coach or tourist fare is reimbursed for rail or bus travel. Regardless, substantiation is still required (as indicated in 1 through 4 above).
Meal reimbursements should be documented with original itemized receipts. Charge card receipts must include the original itemized receipt. Costs incurred for meals must be reasonable. Tips for meals in excess of 20% will not be reimbursed.
If an itemized receipt is not available, to receive reimbursement, all other substantiation requirements must be met. If a meal receipt is not submitted, the traveler can be reimbursed according to the following schedule as long as business purpose, location, date and attendees are indicated:
Breakfast $ 6.00 including tips
Lunch $ 9.00 including tips
Dinner $20.00 including tips
Costs incurred for meals must be reasonable. Tips for meals in excess of 20% will not be reimbursed.
Mileage is reimbursed at the allowable rate as established by the Internal Revenue Service based on actual miles from the Bradley University base of employment to the travel destination.
C. Bradley VISA documentation. VISA charges must be substantiated with:
1. Proper approval on the statement.
2. All original itemized receipts (see discussion on specific items in B above).
3. Business purpose on all receipts (including when, where, why, who and what).
The documentation must be submitted in a timely manner timely submitted to ensure payment by the due date. Finance charges are the financial responsibility of the cardholder. The cardholder is responsible for submitting and resolving all disputes with the credit card company. If receipts are lost or otherwise not submitted, the cardholder is responsible for the expenditure and must submit a personal check made payable to the University along with other documentation. If receipts are found at a later date, the cardholder may request reimbursement at that time.
D. Travel on Restricted Funds. University travel expense reimbursement policy and procedures apply to all travel on sponsored project funds unless the sponsored agreement provides a different method of reimbursement. The traveler must comply with the travel requirements of the sponsoring agency, including all applicable OMB Circulars and state requirements. The following restrictions apply to sponsored project travel:
1. Travel on sponsored project funds is restricted to individuals who are directly associated with
the scope and purpose of the project.
2. Foreign travel costs are allowable only when specific funds for foreign travel are provided in
the sponsored agreement. Such travel may also require specific sponsor approval.
3. Foreign travel funded by the U.S. government is booked on a U.S. flag carrier if available.
Deviations or exceptions are specifically approved in advance by the sponsoring agency.
E. Foreign travel. University travel expense reimbursement policy and procedures apply to all foreign travel. In addition, a log of expenses during foreign travel should be maintained and submitted with reimbursement request. Further, cash conversions require documentation of the exchange rate at the time of conversion. Most conversion receipts will provide this. When this is not possible, the Controller
=s Office researches the exchange rates for the period of travel and bases reimbursement on an average exchange rate for that period. If expenses have been made by personal credit card, the traveler must submit a copy of his credit card statement which will show the actual conversion rate used by the credit card company when charging the account. Non-meal tips must be substantiated by actual receipts or written documentation detailing the recipient, name and number of attendees (if applicable), purpose, date, and place.An employee on foreign travel may elect to use a $45 per-diem rate for meals and incidentals. However, the per-diem option must be used for the entire travel period per IRS rules.
F. Miscellaneous reimbursable travel expenses. The following are examples of items that are generally reimbursable to the extent they are reasonable and necessary business expenditures:
1. Business office expenses (fax, copy services, telegrams, etc.)
2. Business phone calls
3. Conference fees
4. Currency conversion fees
5. Fees for the purchase of traveler
=s checks for foreign travel6. Gasoline for refueling a rented car
7. Ground transportation (train, taxi, bus, subway, etc.)
8. Laundry and dry cleaning charges for trips exceeding ten consecutive calendar days
9. Parking and tolls
10. Reasonable personal phone calls that allow the traveler to stay in touch with
family as pre-approved by immediate supervisor.
11. Tips up to 20% of meal cost
12. Visa fees and costs of obtaining passport for business travel
G. Nonreimbursable travel expenses. The following items are generally not reimbursable. Note: This list is not all-inclusive.
1. Movie rentals, theater tickets, newspapers, magazines, prescriptions, over-the-counter
drugs, hotel mini-bar expenditures, etc.
2. Alcoholic beverages for students
3. Insurance on rental automobiles
4. Trip/flight insurance
5. Parking tickets and fines for traffic violations
6. Personal expenses
7. Personal portion of airfare while on university business
8. Personal-use portion of a car rented for university business
9. Repairs or towing of personal vehicles used for university business. These costs
are included in the mileage reimbursement rate.
10. Expenses incurred by spouses, partners and families or rate increases occasioned
by presence of spouses, partners and families.
11. Laundry service for trips of less than ten consecutive calendar days
12. Personal aircraft usage
13. Extra baggage charges for personal items, such as golf clubs, skis, etc.
14. Childcare or pet care costs
15. Loss or theft of cash advance money, airline tickets, traveler
=s checks, etc.16. Locksmith charges
17. Lost baggage, luggage, and briefcases
18. Souvenirs and personal gifts
19. Health club fees
20. Commuting expenses between home and work