Business & Travel Expense Policy: An Overview

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AgendaGeneral InformationRoles and ResponsibilitiesBusiness and Travel Expense Policy

OverviewPurpose and Justification ReviewBusiness and Travel Expense ReportingExpense Report Preparation

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Accountable Plan Requirements

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Reimbursable/Allowable/Unallowable

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Expenses & Sponsored Grants/Contracts

Questions related to Federal or Sponsor restrictions should be directed to H&SS Department Business

Managers

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ROLES AND RESPONSIBILITIES

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Who does this policy apply to?

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Business and Travel Expense Policy Exceptions

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Defined Roles in Policy

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Individual Incurring Expense

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Business Expense Preparer

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Business Expense Approver

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BUSINESS AND TRAVEL EXPENSE POLICY OVERVIEW

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Process Changes

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Sales Tax

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Paying Sales Tax with Personal Funds

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Meals – Self/Others/Non-Travel

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Expenses associated with social events (visitor receptions, alumni reunions, etc.)

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H&SS Guidelines for Business Meals

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Examples of Prohibited PCard Expenses

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Service & Software Purchases <=$1000

Contracts Office Contact Information:

8-2528 or University-

contracts@andrew.cmu.edu

To use PCard when purchasing services and software <=$1,000:

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Internet Purchases: Service & Software <=$1000

Many internet purchased services and software require the purchaser to enter into a contract and accept the suppliers terms and conditions. When presented with these terms and conditions:

Note: University Contracts Office approval only extends to the

specific transaction and is not a blanket approval for future

transactions.

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Miscellaneous types of expenses

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PURPOSE AND JUSTIFICATIONS

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Purpose & Justification

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Example - Today’s Meeting

Who H&SS Pcard verifiers and expense report preparers WhatRefreshments for 45 attendeesWhy (How) To provide training on appropriate PCard receipts and purchasing justificationsWhen February 25, 2011 Where Baker Hall A53

Answer The Five Questions For Today’s Meeting:

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Refreshments provided at 2/25/11 training session in BH A53 to H&SS College PCard verifiers and expense report preparers on appropriate receipts and purchasing justifications (45 attendees).

Example – Today’s Meeting

See handout for additional examples

Enter justification into Oracle

Select “Refreshments” as Expense Type

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Who Who was the purchase for? Who are the affected individuals?WhatWhat was purchased? What does the

purchase represent?Why (How) Why was the item purchased?

Why did the event take place? How does it relate to business?When When did the activity/charge occur?Where Where is the event held? Where does the item reside?

Justification Guidelines

Answer These Five Questions:

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Justification Tips

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Justification Tips (continued)

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Justification Tips (continued)

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Refreshments

Unallowable

Snacks (cookies and milk) for presentation to students in Prof Claus’s Organizational Behavior class by guest speaker from North Pole Univ, Dr. R.R. Reindeer, on Dec 24, 2010 in HbH; 30 attendees.

Lunch (pizza, cookies and milk) provided to students in Prof Claus’s Organizational Behavior class as an end-of-year celebration on Dec 24, 2010 in A51; 30 attendees.

Lunch (pizza, cookies and milk) for presentation to students in Prof Claus’s Organizational Behavior class by guest speaker from North Pole Univ, Dr. R.R. Reindeer, on Dec 24, 2010 in A51; 30 attendees.

Non-Travel Business Meals

(not allowed for use in calculating University’s research overhead rate)

Justification examples for food expense types:

Clarification of Expense Types & Justifications

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Clarification of Expense Types & Justifications

Refreshments

Unallowable

When light snacks, cookies, non-alcoholic beverages, coffee, and/or pastries are being served in a meeting with a business objective.

When expenses relate to alcohol, personal goods and services, and special activities. For example, holiday parties, celebrations, and other social functions with *no* business objective (ie: coffee/water for general use). Note: Alcohol must always be broken out separately.

When more food is involved such as an entrée in a meeting with a business objective (ie: lunch meeting food – pizza, boxed lunches, Mad Max, etc.).

Non-Travel Business Meals

(not allowed for use in calculating University’s research overhead rate)

When purchasing food, what expense type should be used?

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Office Supplies

Paper Supplies

General office supplies excluding paper and computing supplies.

Paper supplies used in printers, copiers, fax machines, etc.

Computing supplies used in computers and printers including diskettes, tapes, toner, etc.

Computing Supplies

Other Supplies Supplies that do not meet one of the other defined supply categories.

Instructional Supplies

Supplies used in classroom instruction, purchased from external suppliers.

Technical Supplies

Supplies used in lab and research facilities purchased from external suppliers.

When purchasing supplies, what expense type should be used?

Clarification of Expense Types & Justifications

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Office Supplies Office supplies (notepads, pens, staples, etc.) for general office use in the Philosophy department.

USB-512 Pen Drives for Paul Fischbeck to load course materials and distribute to students in Policy III class in Fall 2009 (in lieu of paper handouts).

Computing Supplies

Justification examples for supply expense types:

Plates, napkins and forks for 1/5/2010 lunch in BPH 223D to plan website revisions for the Psychology department.

Other Supplies

Instructional Supplies

Easel and flip chart to be used for brainstorming activities in Steven Klepper’s Economics classes for fall 2010.

Clarification of Expense Types & Justifications

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Technical Supplies

Cheese purchased to use as stimuli in behavioral decision making study conducted by Carey Morewedge

Stopwatches used as incentives for exercise study conducted by Erte Xiao

Paper Supplies Paper for general use in printers at English department offices in Baker Hall.

Justification examples for supply expense types (cont.):

Clarification of Expense Types & Justifications

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Justifications - Examples

One box of red pens, 3 rolls of bubble wrap, 1 pack of box-sealing tape.

One box of red pens, 3 rolls of bubble wrap, 1 pack of box-sealing tape for general use by History department.

BAD

GOOD

Tip: For “Office Supplies” indicate if for general use or a specific purpose

Name tags and permanent marker pens for orientation week.

Name tags and markers for identifying students, faculty, and staff during student orientation information sessions held in August 2010.

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Justifications - Examples

Conference registration for Terrance Hayes.

Conference registration for Terrance Hayes to attend the Society for Technical Communication annual meeting in Philadelphia, PA from Nov 4-7, 2009 for professional development.

BAD

GOOD

Tip: For “Conference Registration” be sure to include why the individual isattending the conference (ex. presenting, professional development, networking).

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Justifications - Examples

BAD

GOOD

Tip: For “Unallowable”, like all other expense types, be sure to cover the 5 W’s

Holiday party for the SDS at the Schenley Park Visitor Center.

Holiday party for SDS faculty, staff, and guests at Schenley Park Visitor Center on Dec 5, 2010; 300 attendees.

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Receipt Requirements

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Required Documentation

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Example #1: Receipt-Acceptable or Not?

Not Acceptable

Missing: What was purchased

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Example #2: Receipt-Acceptable or Not?

Not Acceptable

Missing: Merchant, Date, Credit Card Proof

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Example #3: Receipt-Acceptable or Not?

Yes-Acceptable

Credit card receipt plus detail receipt with all required information.

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Example #4: Receipt-Acceptable or Not?

Yes-Acceptable

All necessary detail on receipt.

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What if receipt is missing or not legible?

Note: Frequent use of the Missing Receipt form and/or submitting inadequate receipts will be considered an audit violation and will be reported to the designated departmental finance representative.

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Missing Receipt/Packing Slip Form

Example for a “tangible good” Example for a “meal”

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PCard Guidelines (Issued January 10, 2011)

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BUSINESS AND TRAVEL EXPENSE REPORTING

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Considerations when the traveler is flying

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Considerations when the traveler is flying Related Charges Reimbursable –

Yes/No/Departmental Approval

Standard Baggage Charges

Yes

Excess Baggage Charges

Dependent on business purpose and departmental approval

Upgrade Charges Dependent on business purpose & prior departmental approval

Airport Parking Yes – low cost alternatives are recommended

Change Fees (earlier/later flights)

Dependent on cost/benefit justification and departmental approval

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Considerations if travelers drive their own vehicles . . .

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Rental Vehicles and Rental Insurance

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If traveling via Ground and/or Rail

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What about Foreign Travel?

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Per Diem: What it is, Where it comes from, and Who can use it

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GSA Per Diem Meal & Incidentals

Helpful Tip: Print the information from the GSA site that supports the per diem and scan and attach to the report to assist the

approver.

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If buying meals while traveling . . .

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Alcohol – Reimbursable & Unallowable

AND

NOTE: Alcohol, and tobacco as well, is neither reimbursable or allowable when charged to a Qatar

entity.

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EXPENSE REPORT PREPARATION

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Non-Employee Expense Reports

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Form for Non-Employee Expense Reports

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Example: Error message resulting from attempting to begin an expense report for a non-active employee: courtesy, directory, retired, terminated.

Non-Employees

NOTE: Questions about an individual’s non-active status should be directed to H&SS department business manager.

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Non-Employee Expense Report

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Non-Employee Expense Report

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CMU Employee Expense Reports

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H&SS Travel Expense Reimbursement Request Form – Page 1

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Purpose

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Purpose - ExamplesPurpose: Chicago, IL; Jun 5-6, 2010; To

attend National Association of College and University Business Officers (NCUBO) conference on Valuation of Financial Information for professional development.

Purpose: Los Angeles, CA: January 4-7, 2011; to collaborate on research with Dr. Daffy Duck of Univ. of CA LA (UCLA)

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Expense Lines

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Expense Lines – Justification (details/description)

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Lodging – Example: Receipt

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Lodging – Examples: JustificationJustification: Accommodations on 5/1/10 for guest

speaker, Stacy Monk, Prof of UCLA, who presented her research on “How Public Policy Regulations Affect Violence in the U.S.” at the Heinz Speakers Convocation Series held on 5/2/10 in HBH.

Justification: Lodging from Oct 11-14, 2009 for Uni of Calif prof Martin Smith to meet with Lowell Taylor at CMU to discuss and Collaborate on research.

Justification: Marriot Hotel expenses from June 7-9, 2009, for guest lecturer Aaron Hidges of Intrepidus Group, for the MISM course 95-856 Hacking Exposed taught in summer 2009.

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Conference Reg – Example: Receipt

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Conference Reg – Examples: JustificationJustification: Conference Registration for Patty

Page (PhD Student) to attend the Institute of Education Sciences (IES) Research Conference annual meeting in Nashville, TN from Sept 3-6, 2010 to present a research paper.

Justification: Registration for Samuel Adams to attend the annual conference on Recharge Centers in New York, NY on April 1, 2010 for professional development and networking.

Justification: Fee for Susan Timko to attend the annual National Association of College and Employers conference in Orlando, FL, June 1-4, 2009, to establish relationships with potential employers for Heinz College Graduates.

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Airfare – Southwest - Example: Receipt #1

7878

Airfare – Example: Receipt #2

7979

Airfare – Examples: JustificationJustification: Airfare for Patty Page (PhD Student)

to attend the American Psychological Association annual meeting in Las Vegas, NV from January 6-9, 2010 to present a research paper.

Justification: Airfare for Samuel Adams to attend the annual conference on Recharge Centers in New York, NY on April 1, 2010 for professional development and networking.

Justification: Airfare for Susan Timko to attend the annual National Association of College and Employers conference in Orlando, FL, June 1-4, 2009, to establish relation ships with potential employers for Heinz College Graduates.

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Meals – Examples: Receipts

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Meals – Example: Justification

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Parking – Examples: Justification

Example: Parking at Pittsburgh International Airport while attending the American Psychological Association annual meeting on May 1-3, 2010.

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Taxi/Shuttle – Example: Justification

Example: Taxi from airport to Hotel name in Nashville, TN, for Kevin Jones while attending the American Psychological Association annual meeting on March 1-2, 2009.

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Prepaid Travel Expenses

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Standard Approval Path in H&SS

When the Reimbursee is:

Faculty, Staff, or Graduate Student

Department Head

Receipts are given to:

Preparer in the department

Preparer in the department

Approver is: Business Manager

Business Manager who forwards to:

Final Approver: ALG Representative (Assistant Dean)

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Preparers and Approvers Checklist

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Checklist (contd.)

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H&SS Implementation Differences

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H&SS Implementation Differences

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Websites for Reference