/Institutions/Cumberland-University/json/2019-2020/University-Policy-local.json

/Institutions/Cumberland-University/json/2019-2020/University-Policy.json

Policy > Business and Finance > Travel, Meal, and Business Expense Policy

Travel, Meal, and Business Expense Policy

Document Number: BUSF--103
Revision #: 3.0
Document Owner: Vice President for Finance 
Date Last Updated: 02/10/2020

Date Originally Created: 06/15/2012
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General Description

This policy is intended to provide faculty and staff direction in the manner and extent funds may be expended for the purposes of travel, entertainment, hospitality and non-travel business expenses. Business-related entertainment expenses are defined as reasonable food, beverage, and incidental costs associated with the conduct of Cumberland University business. The University must ensure that funds are used judiciously and appropriately in support of its activities. The policy is also designed so that these expenses are in compliance with Internal Revenue regulations, federal cost regulations under the Office of Management and Budget’s (OMB) Uniform Guidance rules, and applicable donor guidelines.

This policy applies to Faculty, students supervised by faculty, and Staff of the University traveling, entertaining or incurring non-travel business expenses on behalf of the University: The policy applies to all faculty and staff whether using a University Purchase Card or submitting reimbursement requests. This document outlines policies and procedures in general terms to allow reasonable discretion for faculty and staff and administrators and should not be expected to cover every possible situation. This policy applies regardless of the funding source. In cases of sponsored programs or restricted discretionary funds, the terms of the grant, contract or donor’s limitations may be more restrictive than the University’s policy. In cases where these limitations are less restrictive, the University’s policy will apply. Exceptions to this policy may be approved by the Vice President for Finance and must be clearly justified as beneficial to the University. The University has no obligation to reimburse faculty and staff, students or non-employees for expenses that are not in compliance with this policy.

Sales tax exemption for all types of travel, meal, and business expenses - Within the State of Tennessee and other states allowable (Florida, Idaho, Indiana, Kentucky, and Mississippi), all Sales & Use Taxes should be avoided. Cumberland University is Tax Exempt in the State of Tennessee. A copy of the Sales Tax Exemption form is available on the P Drive, under Sales Tax Exemption Forms.  It is the employee’s responsibility to provide the merchant with the sales tax exemption form. Taxes paid will not be reimbursed unless the vendor refuses to honor the Cumberland’s Tax Exempt status. This refusal should be well documented on the itemized receipt. In essence, if sales tax is avoidable but still paid, Cumberland will not reimburse the employee (or will deduct from payroll if paid with CU credit card).  If a local vendor refuses to honor Cumberland’s tax exempt status the employee will only be reimbursed for sales tax for the first occurrence. Employees are urged to only do business at establishments that will honor the tax exemption.


Policy Provisions
1.             Pre-Authorization

1.1          All purchases for travel and non-travel business expenses to be reimbursed to employee must be pre-authorized with a purchase order. An exception to this will be allowed if the area Vice President approves prior to the expense being incurred.

 

1.2          Any employee intending to travel overnight for Cumberland University business should complete the electronic version of the “Travel Authorization and Advance Form” which outlines all anticipated costs associated with the travel as well as times of departure and arrival.  This form should be approved by the employee’s supervisor and submitted to the business office for budget check. The business office will verify that there are available budgeted funds in the identified budget. If there are not funds available, the supervisor will have to submit a budget transfer request on the intranet. The business office will maintain the form and match it against the actual charges that are submitted for payment.

Conference registration fees are usually paid in advance by check or University purchase card (P-Card). Conference brochures which detail the registration fees, dates of conference, and all meals provided should be submitted with the travel requests.

2.             Lodging and Transportation

2.1          Lodging

Faculty and staff should use standard accommodations at reasonably priced hotels and motels when making reservations. The University will not reimburse for lodging at Airbnbs. Reimbursement for lodging may not exceed the normal rate for a standard single room. While traveling on University business, travelers should expect to receive service and accommodations that are both safe and comfortable, but not lavish or extravagant. In addition, travel arrangements should be well planned so that costs will not exceed budgetary limitations. In room movies and mini-bar expenses will not be reimbursed. When traveling to a conference, it is appropriate to stay at the hotel hosting the conference.

No member of the faculty, staff, or coaching staff should stay in a hotel room with a student during CU sponsored travel.  

2.2          Lodging Receipts

Original receipts for lodging are required. The receipts must be submitted with the expense report submitted via PayCom. Meals and incidentals on lodging receipts must be itemized separately (see Meals). Lodging receipts must include all of the following information:

•Name and location of the hotel
•Dates of stay
•Itemized listing of charges
•Proof of payment
•Business purpose of trip
•For group travel purchases, all names of lodgers are required.

2.3          Lodging Cancellations

Should travel plans change, it is the traveler’s responsibility to cancel his or her hotel reservation. The deadline for canceling reservations without penalty varies with each hotel. Please record the date; cancellation number; and the clerk’s name when canceling. Failure to cancel a guaranteed hotel reservation could result in a no-show billing for the reserved room.

A No Show cancellation is considered a non-reimbursable travel expense unless there are extenuating circumstances beyond the control of the traveler (for example, a canceled flight). Such circumstances must be documented on the expense report.

2.4          Transportation Receipts

Passenger copies of transportation tickets are required. For electronic tickets, print the receipt. Transportation receipts should include passenger name, dates, destinations and amounts. For a group travel purchase all names of passengers are required.

2.5          Valet Parking

The University will not reimburse University travelers for cost associated with valet parking fees and/or valet tip.  An exception to this policy will be allowed if valet parking is the only means of parking at the point of destination.


3.             Air Travel

Commercial air travel expense is reimbursed on the basis of the actual cost incurred by the traveler using normally traveled routes. All University approved travel will be at the most economical rates, not first class or business class. Coach or promotional fares are the only classes of travel allowed. The lowest cost air travel will take precedence over any frequent flyer programs. Exceptions may be allowed if the lowest-priced fare would:

•require circuitous routing;
•require travel during unreasonable hours;
•excessively prolong travel or greatly increase the duration of the flight;
•result in increased costs that would offset transportation savings.


3.1          Baggage Expense

Charges for excess baggage are reimbursable only when the traveler is transporting University materials or when the extended period of travel necessitates excess personal baggage. Necessary expenses associated with baggage handling, storage and tips is allowable.


3.2          Lost Baggage

Should your baggage be lost or damaged, you must notify airline personnel and file a claim with the airline before leaving the airport. Neither the University nor the University’s insurance will pay for loss or damage to your personal property.

3.3          Ground Transportation (Rental cars, taxis, Uber/Lyft, subways, etc.)

The use of rental cars (economy or compact models) may be authorized when other transportation is not available or when using a rental saves time or money. Car rental insurance should be waived. The University will not reimburse for insurance paid to car rental companies, as such liability is covered under the University umbrella policy. Cumberland does have corporate billing and discount programs with Enterprise and National Car Rental. Contact the Business Office for current information on these programs before reserving a rental car.

The University will reimburse cost associated with taxis, subways, etc. when the expenses are incurred as part of approved University travel.

Traffic and parking violations are not reimbursable. Ground transportation, especially to and from airports, should be by the least expensive mode of transportation. Public transportation should be used whenever practical.

3.4          Personal Car Usage Guidelines

Faculty and staff may use their personal car for business purposes if traveling under a total of 400 miles round trip. It is the responsibility of the owners of vehicles being used for business to carry adequate insurance coverage for their protection and for the protection of any passengers. Proof of current personal insurance will be required before reimbursement for mileage can be made.

3.5          Mileage Calculation

In most circumstances, the appropriate way to calculate business mileage is from home or the office, whichever is less, to the business destination. At no time should normal commuting miles be included in the calculation. Faculty and staff will be reimbursed for business usage of personal cars at the current mileage reimbursement rate established annually by Cumberland University. All mileage reimbursements should include exact mileage reports from Mapquest, Google Maps, etc. for documentation. If there are extenuating circumstances, the employee should have the appropriate dean or vice president approve the request before the travel takes place. Faculty and staff will not be reimbursed for the following, even if these costs are incurred during business travel:

•Car repairs
•Rental car costs during repair of personal car
•Tickets, fines, or traffic violations


4.             Meals and Entertainment

4.1          Business-Related Meals

Only reasonable meal costs (based on your location) will be reimbursed. Faculty and staff should show prudence and fiscal responsibility in their choice of restaurant. High end establishments must be avoided unless circumstances dictate that it is an appropriate choice and it is pre-approved by a Dean or Vice President. Itemized receipts are required for all meals.  Meals charged to a hotel bill are subject to all policies and requirements and require itemized receipts in order to be reimbursed. A clearly substantiated business purpose should exist for any meal to be purchased with University funds. The names of all persons for which meals are paid must be written on the back of the itemized receipt.  As a general rule, costs for meals with other University staff or faculty to discuss business are not an appropriate use of University funds.

4.2          Personal Meal Expenses While Traveling

1.             General limitation – Personal meals are not eligible for reimbursement on single day travel without advance approval of the employee’s supervisor. A traveler, involved with overnight or multiple day travel, may not claim reimbursement for more than three meals in any single calendar day or in any period of 24 consecutive hours.

2.             Cost of meals included with other charges – The traveler is not entitled to a meal allowance for substantial meals provided free, on an airplane, included in conference registration fees or provided on a complimentary basis by the facility at which one is lodged. Employees must provide schedule/agenda for all conferences in order to substantiate daily meal allowance. The University will generally reimburse faculty and staff for three meals a day; however meals should not exceed Cumberland’s approved meal rate of $35 per day (including tips). Snacks and drinks (bottled water) during travel are not reimbursable unless they replace a meal and are part of an approved meal allowance. See above.

4.3          Alcoholic Beverages

The purchase of alcohol with University funds for any meal or entertainment purpose is prohibited. Any exception to this policy must be approved in advance by the appropriate Vice President.

4.4          Documentation and IRS Requirements

In order to comply with IRS rules, faculty and staff must substantiate the date, place, and business purpose of the meal. An original, itemized receipt must be submitted with the expense report for any business meal or entertainment expense. The documentation must include who, what, when, where, why, account #, and the amount of the expense. Receipt "stubs" will not be accepted as documentation. Attendees should always be listed on the back of the receipts and on the expense report. Business purposes such as “lunch meeting” are not adequate information to fulfill this requirement.

4.5          Tipping for Meals

Tips included on meal receipts will be reimbursed. As a general rule, faculty and staff should not tip more than 15% of the bill.


4.6          Departmental Functions

Certain departmental functions, such as holiday parties, retirement parties, and other significant departmental gatherings, serve an important business purpose for the University in supporting morale and encouraging networking among colleagues. All faculty and staff must obtain specific approval of their Dean or Vice President for the specific event prior to committing any University funds for a departmental function. All expenditures for such functions must be within the confines of the departmental budget. Documentation of appropriate approvals is required on the request for reimbursement or payment approval and must be attached before Accounting can process. Expenses paid with a Cumberland University credit card without the Dean or Vice President approval will be subject to payroll deduction.

4.7          Internet Usage

The University recognizes that internet usage while traveling for business purposes is sometimes necessary. Employees are encouraged to pursue hotels that provide “Free” internet access. However, where charges are incurred for internet usage this is an allowable reimbursable expense providing that it is itemized on the hotel invoice. Internet charges incurred at airport terminals are not allowable reimbursable expenses.


5.             Expense Reporting

5.1          Expense Reimbursement--Faculty and Staff

Cumberland maintains an "accountable plan” as defined by the Internal Revenue Service (IRS). Under this type of plan, reimbursements for travel, entertainment and non-travel business expenses are not required to be reported as income to the employee, as long as the advances and reimbursement of expenses meet all of the following three requirements:

1.             There must be a business connection to the expenditure. This means that the expense must be a deductible business expense incurred in connection with services performed as an employee. If not reimbursed by the employer, the expense would be deductible by the employee on his or her 1040 income tax return.

2.             There must be “adequate” accounting by the recipient within a reasonable period of time. All reimbursements must be submitted to the Business Office via PayCom within 60 days upon returning from the trip. This means that faculty and staff must verify the date, time, place, amount and the business purpose of the expenses. Itemized receipts are required.

3.             Excess cash advances must be returned within two business days upon return.

5.2          Expense Form

Employees seeking reimbursement for business expenses paid using personal funds should complete the expense form available through PayCom.

6.             Purchase Card Program

Cumberland provides a commercial purchase card (P-Card) program for its faculty and staff.  The Purchase Card is the preferred payment method for all significant travel expenses incurred by Cumberland travelers. The Purchase Card program provides faculty and staff with a variety of benefits and allows the University to gather travel data that is useful for management reporting. Any charges made with the University Purchase card without proper receipts and documented approved business purpose will be subject to payroll deduction from the next monthly payroll check for the employee. Any areas of this policy referring to “will not be reimbursed” will apply to the credit card purchase as “will be deducted from payroll” since credit card purchases are paid by the University. A credit card receipt without itemization is not considered a proper receipt.

6.1          Purchase Card Eligibility

All faculty and staff who travel as a part of their job requirements on a regular basis would qualify for the Purchase Card. Applications for the Purchase Card must be approved by the appropriate Dean or Vice President for the school or department with final approval from the Vice President for Finance.

6.2          Use of Purchase card

The Purchase Card should be used only for business travel and entertainment expenses including:

•Air Travel
•Lodging
•Car rental
•Meals and Entertainment
•Miscellaneous travel expenses

Faculty and staff using the P-Card should note: Within the State of Tennessee and other states allowable (Florida, Idaho, Indiana, Kentucky, and Mississippi), all Sales & Use Taxes should be avoided. Cumberland University is Tax Exempt in the State of Tennessee. A copy of the Sales Tax Exemption form is available on the P Drive, under Sales Tax Exemption Forms.  It is the employee’s responsibility to provide the merchant with the sales tax exemption form. Taxes paid will not be reimbursed unless the vendor refuses to honor the Cumberland’s Tax Exempt status. This refusal should be well documented on the itemized receipt. In essence, if sales tax is avoidable but still paid, Cumberland will not reimburse the employee (or will deduct from payroll if paid with CU credit card).  If a local vendor refuses to honor Cumberland’s tax exempt status the employee will only be reimbursed for sales tax for  the first occurrence. Employees are urged to only do business at establishments that will honor the tax exemption.

6.3          Purchase Card Policy

The Purchase Card program is covered in detail in a separate purchase card policy.


6.5          Self-Audit Expense Report

Faculty and staff should review their own Expense Form for completeness and propriety. Submitting your report through PayCom indicates your agreement with charges listed and your adherence with University policy.


6.6          Approver's Responsibility

The approver must insure that:

•the expense was incurred in the conduct of University business.
•the expense has been charged to the proper account(s)
•the expense report has been properly prepared and adequately documented and in accordance with University Policy.
•all receipts are itemized and receipts are uploaded into PayCom (by date/time and etc.). All check requests/reimbursement requests not compiled in accordance with this policy will be sent back to the department and not processed.
•policy exceptions must have a letter of authorization from the Vice President for Finance.

6.7          Reimbursement Payments

All reimbursement payments will be issued through payroll.


7.             Cash Advances for Travel

The University discourages the use of cash advances; however, they may be used in extenuating circumstances. The Vice President for Finance will approve all cash advances. Cash advances will be issued to University faculty and staff only. An employee may have only one cash advance outstanding at any given time. An exception to this policy may be granted for coaches with back to back athletic events that require separate advances for each event. Excess cash advances must be returned within two business days upon return. Further questions regarding cash advances should be discussed with the Vice President for Finance.