DEPAUW UNIVERSITY

BUSINESS EXPENSE POLICY

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SCOPE

This policy describes travel expenses which will be reimbursed by the University.  The policies detailed here apply to all funds under University control and are superseded only in those instances where funding agencies apply specific and more restrictive rules and rates.

POLICY

It is the intent of the University to reimburse travelers for necessary and reasonable expenses incurred for properly authorized University travel within budgetary constraints.  Reimbursement of travel expenses will be fair and equitable to both the traveler and the University, and will be consistent with the policies of the other funding agencies whose funds are used for travel.  It is the policy of the University that all business expense reports be reviewed and approved by the department’s governing Vice President.

1.         Fiscal Responsibility.  University business travelers are expected to use the most economical and direct mode of transportation available, consistent with the authorized purpose of the travel.

2.         Report of Business Expenses.          Reports of business expenses are required for all University travel.  Business expenses are reported using the Commercial Card reconciliation and/or Employee Reimbursement form accessed thru e-services.  A University-related business purpose for the travel and the University purpose for any included entertainment should be clearly documented on all reports (i.e., a statement must be made on the report, or attached to it, detailing the University related purpose, person(s) attending, and dates).  Receipts and other documentation required to be submitted with the report are explained in the following sections.  Reviewing business expense reports for compliance with this policy and approval of all expenditures made are the responsibility of the Vice President.

3.         Receipts and Documentation.  When completing a Commercial Card reconciliation and/or Employee Reimbursement report, the individual should attach the original receipts. Credit card receipts may not be submitted in lieu of these original receipts.  Itemized receipts are required for airfare, hotel, rental car, gas, and meals as well as miscellaneous expenses, if practical (e.g., taxi, toll, parking).  If the employee fails to request documentation at the time of charges, it is the responsibility of the employee to contact the rental car agency, hotel, restaurants or other vendors to request duplicate documentation.  Original receipts are required by both the University independent auditors and the Internal Revenue Service.  If the Internal Revenue Service auditors are not satisfied with documentation provided, the University could be assessed penalties, and the individual would be liable for federal, state, and county income taxes for the improperly documented expenditures.

4.         Travel Advances.  A Travel Advance Request (3 part form) must be completed in addition to an on line requisition in e-services.  The Travel Advance Request form is available from the Accounting department.  All travel advances must be settled promptly upon completion of the trip.  If not cleared within a reasonable period from completion of the trip, the balance on the employee accounts receivable will be deducted from the individual’s payroll check except when justified by special circumstances.  The Director of the Business Office should be notified of any such special circumstances at the time the travel advance is requested. 

5.         Combined Business/Personal Travel.  Whenever a traveler, for his or her convenience, travels by an indirect route or interrupts University travel for personal travel, the additional expenses are the responsibility of the traveler.

Transportation

6.         Air Fare:  University members, and their guests, are expected to secure the lowest available airfare offered.  To do this, it is permissible to make reservations as far in advance of the departure date as possible to secure these lower rates.  The University provides reimbursement at the economy fare rate for domestic travel; at the business class rate for international travel.

7.         Automobile Mileage:  Reimbursement for travel by personal automobile is at the University approved rate of 42 cents per mile.  This covers all expenses, except toll charges and parking fees, relating to the operation of the car.  If a personal automobile is used for local travel, documentation submitted for reimbursement should include dates traveled, mileage, destination and purpose of travel.  Gasoline for your personal vehicle will not be reimbursed.  Allowed mileage to Indianapolis Airport is 42 miles each way on a week day and actual mileage from home to the airport if you leave/return on the weekend or holiday.   

8.         Automobile Usage:  For trips that would normally be undertaken by air transportation, reimbursement for travel by personal automobile will be limited to the lesser of mileage or economy class airfare.  Reimbursement for use of a personal automobile may exceed economy airfares under special circumstances.  Examples of such circumstances are:  the need to haul equipment for University purposes or travel together by two or more DePauw employees.  In the latter case, the names of all University employees or faculty members traveling as passengers should be listed on the report, with a notation made for cross-reference if the passengers incurred other transportation expenses (for which they should submit separate reports).

9.         Automobile Rental:   Economy to mid-size automobile rental allowed; luxury car rental not reimbursable unless approved by the Vice President prior to rental.  The employee is responsible for fuel fill-up before the return to the rental agency.  If fill-up charges or other extraordinary charges are assessed by the rental agency, the employee will not be reimbursed by the University.

10.       Local Vehicle Lease Reservation: DePauw University currently has a special vehicle leasing program with Enterprise Car Rental.  Contact the Purchasing Office at ext. 4184 for more information.

11.       Insurance:  Collision Damage Waiver (CDW) or Personal Accident Insurance (PAI) are not covered expenditures for rental vehicles.  DePauw University’s automobile insurance policies cover CDW and PAI.

12.       Cellular Phones:   Monthly rental fees and usage fees as well as applicable taxes are not reimbursable to the employee.  These are considered personal expenses.

13.       Spouse Accompaniment:  As a general rule, the University does not reimburse for spousal accompaniment unless the spouse fulfills a necessary University business purpose which should be documented on the report.  If the traveler’s spouse accompanies the traveler for personal purposes, the spouse’s expenses should be excluded from the report of business expenses.

Lodging

14.       The University reimburses travelers for single occupancy accommodations.

            The University expects everyone to use moderately priced hotel accommodations.  An exception will be allowed if the hotel is the location of the conference or symposium attended.

Meals

15.       Overnight, Out-of-Town Travel:  The actual cost of meals, including taxes and tips (except where limited by contract or grant), while on University business is reimbursable.  Travelers should select restaurants which are reasonably priced for the locality.  Itemized receipts are required for all meal charges.  “Fast food” may be reimbursed without receipts if cost is reasonable and properly approved.  However, employees should always try to get an itemized receipt.

a.)  Breakfast will be allowed whenever the traveler is out of town the night before or when the incurred travel begins earlier than a normal breakfast and no meal was provided by the transportation company.

b.)  Lunch will be reimbursed provided that the trip begins before the lunch hour.

c.)  Dinner reimbursements will be made when the traveler is away from home for the evening meal or does not return home until after the normal dinner hour, and no meal was provided by the transportation company en route.

d.)  Purchases of snacks, beverages, etc. unless a substitute for a meal, are not reimbursable.  These are considered normal personal expenses encountered in an individual’s daily activities.

16.       One-day Trips (not involving overnight travel):

Business meals which fall within the guidelines of (15) above, and which the budgetary unit wishes to reimburse, but which do not involve overnight travel must be explained on the report as to the University purpose for incurring the expense.

17.       Non-allowable Meal Reimbursement:

DePauw does not reimburse expenses for employees who discuss University business over breakfast, lunch, drinks, or dinner with other University employees.

Office Supplies

18.       All office supply items should be purchased using the University’s contracted supplier, Office Max.  DePauw has negotiated reduced pricing with this company.  If an order is placed by 3:00 p.m., it should be delivered the next business day.  The University understands that not all office supply items are available at Office Max.  In that case, it is appropriate to purchase supplies from another vendor.  Large or higher priced office items (i.e. fax machine, office furniture, filing cabinets) should be acquired by contacting the Purchasing Office at ext. 4907.  The Purchasing Office seeks to find the best possible value using multiple vendors.

Per Diem

19.       A per diem, based on the U.S. Department of State published rate for the area, is allowed in lieu of usual documentation only on foreign travel.  Obtain the rates from the Accounting Department.  Per Diem claims in excess of this amount are not allowed unless a grant or contract specifies otherwise.

Tax Exempt Status

20.       All purchases should be tax exempt except meals that are consumed (i.e. restaurants) and hotel/lodging.  DePauw’s Indiana tax exempt number is imprinted on the front of the Commercial Card.  This number should be used at all locations within the state of Indiana with the exception of Wal-mart.  Purchases from Wal-mart require a different number.  Please write down this number (713374) and give it to the cashier before check out.

Non-Allowable Expenses

21.       The University’s policy is to reimburse its travelers for all reasonable and necessary expenses incurred while transacting the affairs of the University.  However there are specific types of expenses which are considered to be personal, and are therefore, not reimbursable.  The following list is illustrative, and does not necessarily include all items considered to be personal expenses.

· Accessories for laptops, PDAs and cell phones (unless there is advance approval from the Vice President)

· Airline insurance

· Automobile repair

· Baby-sitter fees

· Barber/manicurist/shoe shine

· Cellular phone charges

· Cleaning, pressing and laundry (except when on extended travel)

· Collision damage waiver

· Dry cleaning

· Flowers

· Gasoline charges for travel in personal vehicle (will be reimbursed thru mileage)

· Gasoline charged by the rental car agency after return of the car

· Gifts

· Hospitality baskets

· Hotel gym and health facilities charges

· Hotel room bar charges

· Loss/theft of personal property

· Luggage, briefcases, etc.

· Membership fees in airline clubs

· Movie rentals

· Newspapers, magazines, brochures or books not for University business

· Passport/visa application/other costs

· Permanent equipment purchases (not previously approved in the department budget) without prior approval from the supervising Vice President and the Vice President for Finance.

· Personal entertainment

· Personal medical costs

· Personal phone calls except to report changes in schedule, or to speak with family members once a day (for a reasonable period of time)

· Picnics/receptions for faculty/staff (including farewell receptions)

· Snacks/ vending machine purchases

· Traffic violations

· Traveler’s check fees

· Extravagant charges deemed unnecessary

· Any other items specified in the University Travel Policy