505 - Travel and Expense Policy

Title:	Travel and Expense Policy
Owner:	Chief Financial Officer
Last Updated/Revised:	05/01/2024

Policy: University employees should exercise common sense and good business judgement when traveling or incurring business expenses. It is the responsibility of each individual approving a travel or personal expense to ensure the accuracy and appropriateness of the expense in accordance with the University policy.

This policy is designed to comply with external requirements including those of the Internal Revenue Services (IRS), federal and state governments.

Employees must ensure that funds are only expended for legitimate business purposes and that those expenses are:

not excessive,
properly documented,
approved by the department's budget manager, and
submitted within 90 days of the expenses being incurred.

Travel Arrangements

Travelers should make all travel reservations as early as possible to take advantage of "Advance Purchase" discounts.

Airfare

Traveling by air is limited to the lowest price economy class for all domestics travel. Employees are required to select the lowest logical non-refundable economy airfare. Business class travel will be permitted only for international flights if a single flight leg exceeds 10 (ten) hours and CFO approval has been obtained. Exceptions must be approved in writing by the President, COO or CFO.

Upgrades are allowed at the traveler's personal expense.

Baggage Fees

Employees will be reimbursed for baggage fees as follows:

One personal bag for trips less than 3 days
Two personal bags for trips of 4 days or more

Car Rental

The University will reimburse a mid-size automobile rental car. Travelers may book a class of service one level above the authorized mid-size level when:

three or more university employees are traveling together,
cars in the authorized category are not available, or
the traveler has pre-approval from Human Resources due to medical reasons.

The University does not reimburse for refueling charges by the rental car company, additional insurances, etc. Only the base rate and applicable taxes will be reimbursed, plus any gas station receipts for refueling.

Lodging

Employees will be reimbursed for reasonable lodging expenses incurred while on university business when it is necessary to be away from home overnight. Employees should use a moderately priced hotel in the city of destination (i.e., Courtyard Marriott, Hampton Inn, Garden Inn by Hilton, Best Western Plus, etc.). If the individual is attending a convention or conference, use of the convention or conference hotel is appropriate. Cost center managers can approve exceptions when there is a valid business reason for staying at a more expensive property.

Reimbursable Expenses

Reimbursement must be documented by an original itemized hotel bill and is limited to room and tax, internet access, gym access, business phone calls and one personal phone call per day. Gym fees are reimbursed up to $15 per day. The employee should review the hotel statement at the time of checkout to ensure that the correct room rate was charged and that only valid charges are included.

Cancellation

It is the responsibility of the employee to ensure any needed cancellation is made in accordance with the hotel's cancellation policy. Employees failing to cancel a reservation are held personally responsible for the charge. The employee should obtain a cancellation number or the name of the person taking the cancellation in case the employee's expense card is charged.

Spouse/Companion Travel

The university will not reimburse travel and entertainment expenses incurred by a spouse or other individual accompanying the employee on business unless:

there is a bona fide business purpose for taking the spouse or other individual, or
the expense incurred would otherwise be reimbursable.

A family member or other individual may not accompany an employee on any business trip unless approved in advance by the President or CFO.

Personal/Leisure Travel

Leisure travel may be combined with business travel provided there is no additional cost to the organization and with prior written approval from the President or CFO.

Meals

Under this policy, "travel meals" are distinguished from "business meals." Definitions and reimbursement treatment for each type of meals follow.

Travel Meals

A 'travel meal" is defined as a meal that:

takes place while the employee is traveling on USU business 30 or more miles from authorized USU locations.
takes place when the employee is required to stay overnight due to business travel.

Travelers will be reimbursed for actual meal expenses, subject to a maximum of the current federal travel allowance (https://www.gsa.gov/portal/content/104877). No meal allowance will be granted in instances in which meals are covered by conference or registration fees, or any other instance in which the employee dose not pay for the meal. The employee must attach copies of all itemized meal receipts to the electronic business expense report. The cost of alcohol beverages will not be reimbursed.

Business Meals

A "business meal" is defined as a meal meeting that includes two or more persons where USU business takes place. Business meals are taken with customers, prospects or employees during which a specific business discussion takes place.

Business meals between employees should be held to a minimum and take place only if there is no other meeting time available. USU reimburses for business meals only if there is an ordinary and necessary reason for the meeting. The business purpose for the meeting must be appropriately documented on the business expense report. Employees will also be required to list the name, title, and company of each attendee.

Business meals are subject to the following stipulations:

the senior USU employee present should pay the bill.
the itemized receipt is required for reimbursement.
the host of a business meal should choose a reasonable priced restaurant given the context of the meeting (constituents, subject matter, etc.).
frivolous, lavish, and extravagant expenditures for entertainment and meals will not be reimbursed. Judgement should be exercised when selecting an entertainment facility, restaurant, and menu. Excessive expenditures are subject to question by the cost center manager and may result in the denial of reimbursement, either partially or in its entirety. Justification of questioned expenses rest with the employee.
the cost of alcoholic beverages will not be reimbursed.

Incidental Travel Costs

Actual and reasonable tips paid for bellmen, cabs, skycaps, waiters, waitresses, etc., will be reimbursed. Other incidental travel costs are subject to a maximum of the current federal incidental travel allowance (http://www.gsa.gov/portal/content/104877).

Personal Automobile Expenses

Employees will be reimbursed for the use of their personal vehicles while conducting USU business at a rate per mile as periodically established by the IRS and communicated by Accounting.

Miles travelled for the USU business purpose should not include personal commuting miles between an employee's home and USU. If an employee is driving from home to a client and that distance is shorter than their normal commute from home to the office then none of those miles are reimbursable unless they are during the weekend.

The University reimburses employees for the cost of airport parking for the deration of the employee's business trip. If it is more economical for the university, the employee may choose reimbursement of mileage to a friend or family member for two round trips (drop-off and pick-up) to the airport to avoid paying the cost of airport parking. When practical, employees are encouraged to use the least expensive airport-parking alternative.

All reimbursements for mileage should have supporting documentation such as a copy of MapQuest or Google Map directions.

Lost or Stolen Property

Reimbursement for personal property owned by an employee lost or stolen while on business travel is frequently available under a homeowner's or renter's insurance policy. If such a loss occurs for a university employee, after such reimbursement has been pursued and is documented to be unavailable, such losses will be considered for reimbursement by executive management based on the circumstances surrounding the loss. The initiate this process, the employee should contact Human Resources.

Non-Reimbursable Expenses

The University does not reimburse personal expenses, even if incurred while traveling on university business. Non-reimbursable expenses include, but are not limited to:

Mileage for in-town errands
Events for employees. (i.e., birthday parties, baby or bridal showers, Boss' Day, Secretary's Day, farewell or retirement receptions, office luncheons or picnics, etc.). When applicable, these authorized events are coordinated through the Office of the President. Please note: Any other department/division Employ Appreciation/Hospitality events are reimbursable only if these events have been given prior approval and listed as an approved event in the budget of the relevant Senior Vice-President.
Traffic or parking tickets
Rental vehicle insurance or travel insurance
Purchase of luggage
Purchase of clothing
Shoe shines
Laundry or dry cleaning (unless out of town travel for five or more days)
Valet service for clothing
Expenses for an employee's spouse, children, other relatives, or quests
Child care
In-room movies
Other personal entertainment
Beauty care
Health spas
Medications
Personal effects and toiletries
Cell Phone

Travel Advancement

The university does not provide employees with travel advances.

Receipt Requirement

All required receipts must accompany the business expense form along with the additional information described below in the section entitled Required Documentation. The absence of required documentation will result in (1) a delay in the processing of the expense report, or (2) not having that item reimbursed. Receipts may be submitted via scanned image or photo.

Procedure:

Approval for travel is obtained by the department's budget manager.
Travel arrangements are made per policy.
Upon completion of travel and expense report is completed with required documentation attached to the report. In general, all required fields will be indicated in the expense report. Required fields that are left blank will result in delays. The following information must be attached to the expense report.
1. A concise and descriptive statement of the business purpose for the travel
2. The dates of departure and return for each trip away from home overnight
3. The destination and/or locality of travel
4. The date and amount of each separate expenditure
5. The appropriate account coding (category, department and group)
6. A receipt or confirmation of payment for: (a) each expenditure of $10.00 or more
  1. A boarding pass or itinerary for an airplane, bus or train does not qualify as a receipt for payment. The e-mail confirmation of such travel can be used as the receipt provided it shows the total cost and method of payment.
  2. A credit card statement will be allowed as proof for some, but not all, missing receipts. Other charges appearing on the statement should be marked out along with the 16-digit credit card number. The statement should then be submitted along with the expense reimbursement form.
  3. If receipts or account statement is lost, employee must submit an explanation of the expense, date of expense, and amount to employee's manager for approval.
7. For business meals and/or entertainment with other persons:
  1. the name of the restaurant or facility, address, and type of facility (if not apparent from the receipt); and,
  2. identification of the person(s) in attendance, including name and nature of the business relationship to the university. If more than five people attended, give a general description of the group and the number attending, i.e., 15 trustees, along with all other information listed above.
The expense report is electronically approved by the department's budget manager who send the report to AP@usuniversity.edu.
The controller reviews the report.
1. If approved, the report is sent to an accounts payable clerk.
2. Unapproved reports are returned to the department's budget manager.
Reimbursement is issued for approved reports.
1. Travelers are encouraged to set up direct ACH reimbursement through Accounts Payable. All users who have not set up ACH reimbursement will be paid via check.
2. In general, expense reports received by the 7th day of the month will be reimbursed to employee on 15th day of the month; and expense reports submitted between 7th and 22nd days of each month will be reimbursed to employees on the last day of the current month. Processing of expense reimbursements normally takes from 3-5 business days once it has been electronically received by Accounts Payable.

Purpose: This policy provides guidelines and procedures for employees incurring business travel and entertainment expenses as well as other business related expenses on behalf of the University. This policy will promote delivery of a consistently high level of services, in a cost-effective manner, when reimbursing employees for business expenses incurred.

Scope: This policy applies to all USU employees who incur travel and/or entertainment expenses.

Documents and Forms:

Expense Reimbursement Form (available on the University Intranet site)