Morningside College
Travel Reimbursement and Other Expense Policies
Table of Contents
Page
Purpose 2
General Policies 2
Reporting Requirements 3
Transportation and Insurance 4
Lodging 8
Meals andEntertainment 9
Miscellaneous Travel Costs10
Personal and Non-CollegeTravel Expenses11
Professional Development13
Memberships, Dues and Subscriptions13
Relocation of New Employees13
Independent Contractors15
Credit Cards – Purchasing Card16
Cash Advance17
Travel Settlements and Reporting of Expenses19
Exhibits:
AVehicle Policy22
BIndependent Contractor Agreement26
CCash Advance Voucher Form27
DCash Advance Receipt Form28
EExpense Report Form(can download into Excel, fill out, & save with your name)
PURPOSE
The purpose of the Morningside College Travel Reimbursement and Other Expense Policies is to provide faculty and staff with specific guidelines covering College travel, entertainment and other business expenses as well as the documentation required to substantiate requests for reimbursement of those expenses.
It is not possible to anticipate all the situations that individual travelers may encounter in conducting College business and, therefore, these policies have been designed to provide some flexibility in addressing unique circumstances that may require occasional exceptions. As a general guideline, it is expected that travelers will interpret these policies in a manner that keeps expenses to a minimum and fairly assigns the costs of business-related activities to the College. Accordingly, the primary responsibility for adherence to these policies rests with the individual and their supervising department.
Travelers should also bear in mind that government agencies and other interested parties may view certain expenditures as being either excessive or inappropriate in the context of a regulatory audit, an IRS audit or other similar review of College activities. Thus, moderation and discretion should guide travelers’ decisions to incur expenses on the College’s behalf.
GENERAL POLICIES
The College will only reimburse expenses incurred in connection with College business that are properly documented by the employee or other visitor (e.g. lecturer)
The College will not reimburse expenses that are inherently personal in nature such as child care, clothing, personal recreation or entertainment, etc. Reimbursable expenses must have a business purpose and that business purpose must be stated.
Assuming a reasonable level of safety, comfort and convenience for the traveler, every effort should be made to keep College expenses to a minimum. Departmental policies will govern how authorization to travel is granted and individual departments may elect to impose additional controls over travel expenditures beyond those required by this policy.
In general, reimbursements will be made on the basis of actual and reasonable expenses incurred for transportation, meals, lodging and other necessary business expenses. Per diem allowances are not permitted except in cases where this is an existing policy.
The College will not make reimbursements for the travel expenses of spouses (or others such as children) who accompany faculty or staff on College business, except in unusual circumstances which require the spouse’s (or other’s) presence (i.e. there is a clear business purpose). All exceptions must be approved, in advance, by the President or the appropriate Vice President. Reimbursement of expenses for other individuals or dependents that accompany a traveler will be considered personal expenses and will be included on the employees Form W-2.
Prior to processing a Morningside College Expense Report for payment, the Accounts Payable office will routinely review the submitted documents for accuracy and completeness. If the information submitted is not in adherence with these policies, the payment will not be made until all required documentation has been received. Any incomplete or inadequately supported vouchers will be returned to the employee with an explanation of the deficiency.
The College’s Purchasing Card, for those who have one, should be used first whenever possible.
REPORTING REQUIREMENTS
Regulations issued by the Internal Revenue Service and various other governmental agencies require that the College maintain a policy under which employees must account for all advances, allowances and other reimbursement of expenses. This accounting must include:
Sufficient information to establish the business purpose of the travel, entertainment or other expenditure;
An adequate record of each expenditure including the amount, date and place;
Substantiation of the expenditure with original receipts. This must include receipts for all lodging expenses (regardless of amount) and for all other expenses of $25 or more to comply with IRS regulations. Departments may elect to require receipts below the $25 threshold; (it is recommended that all receipts be attached)
The return of any unused cash advances within 10 days of completing the trip.
Employees must keep record and substantiate their travel and entertainment expenses by submitting a completed Morningside College Expense Report (along with all required documentation) to the Accounts Payable office within 30 days of completing their travel. Any amounts paid to employees that are not accounted for and substantiated in this way must, under IRS regulations, be included in the employee’s income (on Form W-2) and will be subject to payroll tax withholding.
SPECIFIC EXPENSE POLICIES
TRANSPORTATION AND INSURANCE
GENERAL
A critical review of a proposed trip should be made to ascertain whether (1) the trip is necessary, (2) there are other alternatives, such as a letter, phone call, or conference call, or (3) if it can be completed with another business trip.
Authorization for travel must be approved by the President or appropriate Vice President. No one is authorized to approve her/his own travel request and related expenses. All authorizations to travel must be covered by budget appropriations.
EMERGENCY TRAVEL
If am employee is away on business and must return home due to a family emergency the College will reimburse the employee for any related costs associated with the return trip home.
ADMINISTRATORS TRAVELING TOGETHER
Key administrators should schedule their travel arrangements on a “split” basis to the extent that available travel arrangements permit. As a general guideline, the following employees of the College should avoid traveling together in the same vehicle:
a. Chair of Board, President, and Academic Dean
b.More than two Vice Presidents
c. More than six titled (officer or non-officer) administrators of the College.
These guidelines are subject to modification as suggested by circumstances. Attention to business necessity, working relationships, as well as overlap in authority and responsibility between individuals may require modification of strict adherence to the above guidelines.
TRAVEL ARRANGEMENTS
All travel arrangements should be made well in advance of the trip to obtain the lowest rates. Before committing to a deeply discounted ticket carrying a substantial penalty for cancellation or change, individuals should be certain that they can adhere to the planned itinerary.
The cost of airfare or other transportation purchased for business travel will be charged to the College’s account. Please specify what department is to be charged.
Direct payment of travel costs to hotels, airlines etc. may be made by the College in special situations where advance deposits are required for transportation or lodging obtained at group rates.
AIR TRANSPORTATION
Class
The class of air travel chosen is expected to be the least costly consistent with a reasonable level of comfort and convenience for the traveler. In most cases, this dictates that coach class should be used.
Airline
Air transportation is restricted to regularly scheduled commercial airlines. Air charter or air taxi services licensed by the U.S. Government, or corporate aircraft of major recognized corporations may not be used except in unusual circumstances. This requires the approval of the President or appropriate Vice President and in no case for an aircraft with seating capacity in excess of 15. All charters must be reported to the Business Office at least 15 days in advance of departure to permit compliance with reporting requirements of the College’s insurance policy. All contracts for chartered air service must be reviewed and approved by the Vice President for Business and Finance. No more than four (4) key employees or Directors should be on any one airline flight.
Frequent Flyer Plans and Other Incentives
It is College policy that travelers may personally retain the rewards for frequent flyer plans or other bonuses that may accrue from business travel. In no case, however, may the traveler choose a reservation at a higher cost in order to accumulate additional plan credits. The College will not purchase frequent flyer miles from travelers or reimburse them for tickets purchased with frequent flyer miles. Any membership fees to join frequent flyer clubs are generally considered personal expenses and will not be reimbursed by the College unless it is clear that all accumulated miles will be used for College business purposes. This requires advance approval of the President or appropriate Vice President.
Ground Transportation and Parking
If traveling by car from home to an airport at the start or end of a trip, the traveler will be reimbursed for miles in excess of the traveler’s normal commute to the office. If travel to an airport from home is necessary on a non-workday, reimbursement will be made for the entire distance. Parking at the airport will be reimbursed, but travelers are urged to use long-term, lower cost parking lots when available. If public transportation or a cab taken to and from the airport would result in a lower cost (due to the high cost of parking in most cities and airports), the traveler is strongly encouraged to take advantage of these savings.
Once at the destination, travelers are reminded that hotel shuttles may be available free of charge or for a nominal fee.
Early Departure or Late Return
Additional costs incurred for early departure or late return (e.g. Saturday night stay-over) are not reimbursable unless the savings in airfare is equal or greater than the total costs for lodging, meals, parking fees, etc. incurred during the additional days of travel. All additional costs must be weighed against the savings in airfare, including the inherent cost of being away from the College for a longer period of time.
Accident Insurance
Flight insurance individually purchased by employees is not a reimbursable expense.
Lost Items
Most airlines will refund the full amount of the ticket less a processing fee. The airline will, in most cases, require that a replacement ticket be purchased. After a specified time period (up to 90 days), they will issue a refund for the cost of the replacement ticket less the processing fee (usually $75).
The Travel Agency can issue electronic tickets for most domestic travel. Currently, electronic tickets for international travel are not generally available. If an electronic ticket is preferred, please specify this at the time of booking.If special equipment is accompanying the traveler or other special circumstances warrant, travelers may wish to obtain additional insurance coverage from the airlines for lost baggage. Reimbursement of this additional coverage is subject to departmental approval. Lost luggage, clothing, or other personal items beyond what is described above are the responsibility of the traveler. Recovery for such personal losses may be available through the individual’s homeowner policy.
AUTOMOBILE TRAVEL
College owned Automobiles
No College vehicles may be acquired without the approval of the President.
The College authorizes certain individuals to have a College owned vehicle assigned to them to conduct College business. These vehicles are owned and titled in the name of Morningside College. Expenses as necessary are reimbursable which include, but are not limited to, maintenance, gas, oil and tolls.
Personal use of a College auto is permitted if authorized.
Traffic violations or other fines or penalties are the responsibility of the employee.
When a department receives a courtesy vehicle from any automobile dealer it must be approved by the Vice President for Business and Finance to ensure that the vehicle is properly registered and insured. The Vice President for Business and Finance will be responsible for negotiating with car dealer(s) Under no circumstance may, individual employees contact car dealer(s) for courtesy vehicles. When working with the appropriate dealer(s) no vehicle can be secured or used without the proper paperwork and documentation in place which will be handled by the Business Office. In all cases, the vehicle will be titled and licensed in the name of Morningside College.
The Internal Revenue Service requires taxation of personal use of a college owned vehicle. Morningside College’s vehicle policy, as approved by our accounting firm, is set forth in Exhibit A.
Personal Automobiles
Use of an employee’s personal automobile is permitted, upon prior authorization, for College business.
Travelers using their personal vehicles on College business must carry personal liability and property damage coverage. No reimbursement will be made for the cost of repairs to these vehicles, regardless of whether those costs result from business travel or whether they result from acts of the traveler. The College may decide to reimburse an individual’s deductible for such instances as the other party to the accident being at fault, or an accident caused by icy roads. Each situation will be evaluated and decided upon by the Collegeon a case by case basis. In all cases the individual’s personal insurance coverage is primary and the College’s coverage is secondary.
When the use of a personal vehicle is necessary, reimbursement for its use will be made at the college’s approved rate per mile. The mileage reimbursement is based on the number of miles driven on College business and does not include reimbursement for commuting from and to the employee’s home. Additional reimbursement may be requested for tolls and parking fees. The College will not reimburse employees for parking tickets, fines for moving violations, for vehicle towing charges, or auto repairs and maintenance.
Rental Cars
While on official College business, it may be necessary to rent an auto from a commercial car rental
agency. Permission to rent a vehicle must be obtained from the appropriate administrator prior to the actual travel. This is an allowable expense when an original receipt is provided to support it. It is recommended that the auto be rented through the College’s authorized travel agent when possible. The following criteria shall be applied when renting cars for College business:
- It is recommended that mid-size or smaller cars be utilized whenever possible. This choice however, will be left to the traveler to decide based upon criteria such as the purpose for which the car is to be used, the number of passengers, the availability of compact cars, etc.
b. The traveler should decline to purchase the loss damage collision waiver as this is
not an authorized travel expenditure. In those situations where the traveler is liable for collision or comprehensive damage to a rental car, the College’s policy will cover this situation providing all details of the accident are reported promptly to the Business Office and the traveler was operating he vehicle responsibly and in connection with official College business.
c. You must have a valid driver’s license in your possession.
d. The vehicle should be returned with a full tank of gas to avoid the unreasonable
gas expenses charged by the car rental agency.
e. The vehicle should be inspected for damage before and after the trip.
Any accident involving a rental vehicle must be reported to both the car rental agency and to the Business Office at 274-5142 for handling of claims and coordination of coverage.
FOREIGN TRAVEL
All general policies pertaining to domestic travel apply equally to foreign travel. Actual costs are reimbursable, to the extent reasonable and necessary, provided adequate documentation is submitted with the travel reimbursement request.
If an individual’s travel assignment is expected to last longer than 12 months or does in fact last longer than 12 months, expenses for meals, lodging and other living expenses can not be considered non-taxable business expenses. Instead, because of the long-term nature of the travel, the IRS assumes that the traveler has moved his/her tax home to a new place of employment and treats the meals, lodging and other living expenses as personal expenses. Reimbursements of personal expenses will be reported as additional compensation subject to tax withholding. This is true for all expenses incurred during the entire period, not just those incurred after the 12 month period. In these circumstances, the department should contact the Business Office well in advance of the trip for more specific information and instructions.
LODGING
It is the College’s practice to use “good” rather than “deluxe” lodging accommodations. However, the amount necessary for these purposes will vary based on the location and the situation. For example, attendance at a convention, seminar or College-sponsored function may make it appropriate for the traveler to stay at the hotel serving as the meeting site.
If the traveler occupies the room with a personal guest, the College will reimburse only the single rate. Documentation of the single rate from the hotel/motel must be submitted with the Expense Report form.