Read the first three top tips from our expenses policy template and top tips white paper, then download the rest. Expenses Policy Guide and Template 3 1. Define why you need a policy What are you seeking to achieve? Policies allow management to operate without. Expense management & online employee spend and software delivers Cost Reduction Strategies to help save company entertainment expenses. Business Expense Policy . While such allowable expenses may be eligible for payment by University funds, other funding sources may have more restrictions. The policy provides criteria for determining an allowable or unallowable expense, and provides lists of common expenses. TRAVEL AND OTHER EXPENSE REIMBURSEMENT POLICY 1. When incurring business expenses.This policy also lists substantiation and original receipt elements required to pay allowable business expenses. In general, this policy ensures appropriate use of University funds in support of its mission, follows Generally Accepted Accounting Principles (GAAP), and complies with federal, state, local rules, and regulations. II. Who is Affected by this Policy. BACK TO TOPThis policy affects all employees, students, and independent contractors purchasing goods or services for noncompensation business expenses. It also affects every employee or individual who reviews, approves, or records financial transactions on behalf of the University. III. Definitions. Appropriate. An expense that is suitable or fitting for a particular valid business purpose. Allowable expense. A necessary, reasonable, and appropriate expense incurred for the primary benefit of University business and therefore permitted to be reimbursed or directly charged based on the permission of the University or by the terms of federally or privately sponsored agreements.
Reasonable travel, accommodation, subsistence, entertaining and other expenses incurred by an individual in the execution of CDC business will be reimbursed by. About us policy and procedures for employee expenses general policy. The Financial Ombudsman Service will reimburse employees for reasonable expenses wholly. Generally Accepted Accounting Principles (GAAP)Fundamental principles of accounting that are used as guidance in the preparation of the University financial statements. Necessary. Minimum purchase or service required to achieve a particular business objective. Notation. Written or typed information that is required on the receipt, expense reimbursement form, or other document. Original Receipt. The original merchant receipt or invoice issued by the supplier or service provider to document and substantiate the business transaction. A digital image of the original receipt is allowable provided that it is legible and the paper receipt is destroyed. Reasonable Expense. An expense that is ordinary and reflects a prudent decision to incur the expense on behalf of University business. Not extreme or excessive. Substantiation. Documentation to support an incurred business expense that includes the original receipt. The primary benefit of a necessary business expense is the University, not the individual. A necessary expense is a minimum purchase or service required to achieve a valid business objective. Reasonable. Reasonable means the amount that normally would be spent in a specific situation. An expense is considered reasonable if it is not extreme or excessive and reflects a prudent decision and action to incur the expense. The Business Expense Policy does not define precise dollar amounts for what constitutes reasonable, because the reasonableness of an expense depends upon many relevant factors including the business purpose, the context, the source of funds, and the circumstances surrounding the expenditure. The federal government has given specific guidance on the definition of reasonable expenses, which must be applied when determining whether a cost is allowed to be charged to federal funds. This description should be used as guidance about reasonable expenses charged to University funds. The federal Office of Management and Budget Circular A- 2. Major considerations involved in the determination of the reasonableness of a cost are: (a) whether or not the cost is of a type generally recognized as necessary for the operation of the institution or the performance of the sponsored agreement; (b) the restraints or requirements imposed by such factors as arm. In order for a cost to be appropriate it is also presumed that there is a valid business purpose, which is normally the responsibility of the department or program to determine. The following questions should be considered when determining the appropriateness of costs: Could the cost be comfortably defended under public scrutiny? Would you be confident if the cost was selected for audit? Would you be comfortable reading about it in the newspaper? Would you be comfortable explaining to a donor that their donation was used this way? Has it been adequately documented? Allowable. If an expense is necessary, reasonable, and appropriate, the University considers it an allowable expense. Federal regulations use the same criteria, as a rule. In addition, federal regulations contain categories of expenses that are unallowable as either direct or F& A (indirect) costs. For example, while alcohol and entertainment costs may be allowable as University expenditures, these costs are expressly prohibited by regulation on federal grants and contracts, and therefore, are always unallowable. The policy provides criteria for determining an allowable or unallowable expense, and provides lists of common expenses. These lists are intended to be informative, but not all- inclusive: ALLOWABLE EXPENSESUNALLOWABLE EXPENSESUNALLOWABLE EXPENSES- FEDERAL FUNDSFUNDING SOURCESUniversity funds may be used for allowable business expenses that support the mission of the University. Such allowable expenses may be directly charged to University funds through acceptable buying and paying methods or may be reimbursed. Please see the lists below for common expenses that are allowable or unallowable by the University. Similarly, federally allowable expenses may be directly charged to or reimbursed from University funds. Federal sponsored awards are more restrictive regarding allowable expenses. Please see the lists below for common expenses that are allowable or unallowable for federal funds. This Business Expense Policy forms the foundation for determining allowable expenses. Please see these related policies and documents for more details: DIRECT COST VS. INDIRECT COSTAllowable expenses might be eligible to be charged directly to University or specific federal project awards, or they might be eligible to be charged only as an F& A or indirect cost. Such programs must be approved in advance by the Office of the Dean of the Faculty or the Office of Human Resources depending on the staff involved. Cash or cash equivalent awards made as part of official University programs are treated as taxable compensation and paid through payroll. Because of IRS regulations, cash or cash equivalents (such as gift cards, gift certificates, or points on a University card) are not appropriate as gifts or awards. The circumstances must be documented and be approved by the Department Chair. The cost should be reasonable, based on the number of people attending. Request for payment for such meetings should include the names of participants and their functional titles or affiliation (individual or group). Questions should be directed to the Provost. Whether meeting on or off campus, the normal guideline for allowability would be the average cost of a comparable meal at a University facility, such as Frist or Prospect, or from Dining Services catering. In all cases, a list of attendees including titles and affiliation, or identification of a discernable group, total number of attendees, and the business purpose of the meeting needs to be provided along with the original receipts in order to be reimbursed. Circumstances where a spouse. The cost of food should be reasonable. The catering rates established by Dining Services are the appropriate benchmark. Door prizes or favors to a maximum value of $1. A favor is defined as . The amount should be reasonable, equitable and commensurate with length of service and the nature of the position and conditions of the departure. An amount of $2. 5 per year of service would be reasonable. This amount can be increased gradually to $5. For service of thirty or more years, $1,5. In addition to a gift, it may be appropriate to have a celebratory recognition event (Please refer to the Social Events section above.) In the case of transferring employees, a special recognition event would be considered the appropriate form of recognition. In special situations, the appropriate Cabinet officer should be consulted. These gift limitations pertain to University funds only, and are not intended to limit the amount of voluntary co- worker participation. Gifts for departing employees should not be charged to government sponsored accounts or accounts subject to applicable restrictions. Because of IRS regulations, cash or cash equivalents (such as gift cards or certificates) must be treated as compensation and are not considered appropriate as retirement gifts. Gifts such as flowers or fruit baskets are appropriate to recognize a personal event such as the birth of an employee. In the latter case, a donation of equal value may be made to a charitable organization in lieu of flowers or a fruit basket. This includes gifts to educational accounts established for the benefit of children of a deceased employee. These would most typically be to students, alumni, and friends who have provided volunteer service and leadership to the University. It would also include gifts to hosts when traveling. Shows of appreciation should be consistent with University policy. A token gift to a host in lieu of lodging expenses is not an allowable expense. Such payments must be approved by the Office of Research and Project Administration (ORPA) if charged to a sponsored research account. The framed cost of each photo should not exceed $2. If the provider is not a member of a firm or otherwise incorporated as a business. For undergraduate or graduate degree programs, please refer to the Office of Human Resources: Staff Educational Assistance Plan. If an employee elects to stay overnight, hotel or room fees incurred are not reimbursable. Exceptions due to unusual work requirements, deadlines, or the like may be approved in advance by the department head. Gifts given on a holiday or other basis to employees, or others are prohibited. Gifts to vendors are prohibited. Gifts to employees from other departments for performance of routine support activities also are prohibited.
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