Revised December 2002
1.0 STATEMENT OF PURPOSE AND RESPONSIBILITIES:
1.1 This document establishes policies governing the reimbursement of travel, entertainment and other business expenses ("business expenses") incurred during the conduct of College business, as well as the issuance and use of credit cards. It is College policy to reimburse employees for ordinary, necessary and reasonable expenses when directly related to the transaction of College business.
1.2 Directly related means:
- there is the expectation of deriving some current or future benefit for the College
- the employee is actively engaged in a business meeting or activity necessary to the performance of the employee's job duties
- there is a clear business purpose for entertainment
1.3 Employees are expected to exercise prudent business judgment regarding expenses covered by this policy.
1.4 Reimbursement for expenses that are not in compliance with this policy requires the prior written approval of the functional Vice President and the Vice President for Finance or the President.
1.5 College employees are responsible for complying with this policy. Employees submitting expenses that are not in compliance with this policy risk delayed, partial or forfeited reimbursement.
2.0 DOCUMENTATION
2.1 Requests for reimbursement of business expenses and requests for payment of credit card bills, must be submitted on the "Employee Business and Petty Cash Advance Expense Report and Credit Card Reconciliation Form", an example of which is included as Exhibit I.
2.2 While original receipts are recommended for all expenses submitted for reimbursement, they are required for all expenses greater than $25.00. Requests for exceptions to this policy should document extenuating circumstances and be approved by the functional Vice President and the Vice President for Finance or the President.
2.3 Saint Michael's College complies with IRS regulations, which require that all business expenses be substantiated with adequate records. This substantiation must include information relating to:
(1) the amount of the expenditure
(2) the time and place of the expenditure
(3) the business purpose of the expenditure
(4) the names and the business relationships of individuals other than yourself for whom the expenditures were made.
2.5 Requests for reimbursement lacking this information will not be processed and will be returned to the originator.
3.0 APPROVALS
3.1 Expense reimbursement forms, together with required documentation, must be submitted to the employee's immediate supervisor for review and signature approval.
3.2 In the absence of the immediate supervisor, approval from the next higher level of supervision is required.
3.3 The President or Vice President for Finance may approve expense reimbursement if the above mentioned supervisory approvals cannot be obtained due to the supervisors' absences.
3.4 Supervisors approving expense reports are responsible to ensure the following:
(1) Expenses reported are proper and reimbursable under this policy
(2) The expense report has been filled out accurately and has the required documentation
(3) The expenses are reasonable and necessary
4.0 REIMBURSABLE EXPENSES
4.1 The following are reimbursable expenses assuming they are in compliance with section 1.0 of this policy:
4.2 The following expenses are not reimbursable under this policy:
4.3 No policy can anticipate every situation that might give rise to legitimate business expenses. Reasonable and necessary expenses, which are not listed in section 4.1, may be incurred. Each employee and supervisor must use his/her best professional judgment in determining if an unlisted expense is reimbursable under section 1.0 of this policy.
4.4 Personal vehicle: Employees who utilize personal cars for business travel will be reimbursed at the per mile rate established annually by the College. Miles submitted for reimbursement should be net of any normal commuting miles. The Controller will make the current rate known to the College community. The expenses related to gasoline consumed by personal vehicles are the responsibility of the employee.
5.0 CREDIT CARDS
5.1 Credit cards issued in the name of Saint Michael's College, which include but are not limited to VISA, MasterCard, gasoline and telephone cards, will be provided to those employees whose jobs require a sufficient amount of travel and/or entertainment. Employees in need of a credit card must submit a properly completed and approved "Request for Credit Card" form to the Vice President for Finance and must sign the "Employee Statement of Responsibility" (attached as Exhibit II). Credit cards represent an extension of credit to the College and, accordingly, may only be issued with the approval of the Vice President for Finance. Cards issued in the name of the College are a privilege for convenience and must not be used for personal expenses.
5.2 Employees are expected to process credit card bills and present them to Accounts Payable for payment not later than eight (8) business days before the payment due date so as to avoid late fees and interest charges. Late fees and/or interest charges resulting from late submission to Accounts Payable will be paid by the employee.
5.3 For employees who have a temporary need for a credit card, loaner cards are available through the Purchasing Department. As with all credit cards issued in the name of the College, loaner cards will not be used for personal expenses.
6.0 SALES TAX
6.1 As a not-for-profit organization, Saint Michael's College is exempt from certain sales taxes and it is the employee's responsibility to be familiar with this exemption. It is the employee's responsibility to indicate to the vendor that Saint Michael's is a tax- exempt organization.
6.2 A Tax Exempt Certificate (attached as Exhibit III) will be issued to each employee to whom a credit card is issued, and will be made available to employees utilizing loaner credit cards. Use of the certificate to avoid sales tax on personal transactions is strictly forbidden.
6.3 Sales tax, from which the college is exempt, is not reimbursable under this policy, and if paid by the employee, remains the obligation of that employee.
7.0 PROCEDURES
7.1 Cash advances: Since College credit cards can be made available to virtually any employee, it is unusual for a cash advance to be necessary. The College recognizes that some incidental expenses cannot be paid by credit card (i.e. tolls, tips, and taxis). Requests for cash advances ($250 limit) must be submitted to the Cashier's Office on the proper Cash Advance form, attached as Exhibit IV. The Cash Advance form must be approved in a manner consistent with section 3.0 of this policy. Generally, no subsequent advance will be made available if the accounting for a previous cash advance has not been completed.
7.2 Parking tickets and moving violations: The owner/driver of the vehicle is responsible for all parking fines and moving violation tickets. The College, if billed, will pass the bill onto the driver to be paid. If the driver is unverifiable, the person to whom the vehicle has been rented or signed out will be held responsible.
7.3 Instructions for making travel arrangements: College employees should purchase all airline and rail tickets through Child Travel. The College will not reimburse individuals or pay other travel agents for airline or rail tickets unless there is written confirmation from Child Travel that they cannot match a quote from another agency/internet provided for the same itinerary.
Child Travel bills airline and rail tickets to the College on a monthly summarized bill unless you have an SMC credit card of your own, have access to a departmental credit card or wish to use your personal credit card in which case you may use that for payment.
If not paid for with a credit card, once you have booked your flight or other arrangements, you must forward a signed Request to Order Form (attached as Exhibit V), complete with the account number, specific arrangements and expected cost, to the Purchasing Office. The Purchasing Office will check the account balance for available funds and then confirm the arrangements with Child Travel. Child Travel cannot ticket any arrangements without confirmation from the Purchasing Office. It is very important that the requisition be forwarded to Purchasing as soon as possible to avoid delayed or missed travel confirmation.
AIR TRAVEL:
All employees are expected to travel coach class. Personal frequent flyer credits may be used to upgrade travel class, however, no reimbursement will be made and no contribution recorded on behalf of the employee for the business use of frequent flyer credits.
Unused tickets/cancellations: All unused airline ticket coupons are to be returned to the College Purchasing Office within three days of original departure for processing to the travel agency.
Delays/Layovers: If you are unable to make a connecting flight because the first flight has been delayed for any number of reasons including mechanical failure, weather, etc., the burden of responsibility in this case rests on the carrier whose flight has been delayed. Most carriers will book you on to your final destination on the next available flight even if it is not their airline, however, this is not a written regulation. If a mealtime and/or overnight is involved, they will provide vouchers for dinner and hotel room as compensation. This action is not a written regulation. Employees should seek to obtain as many services as possible through the carrier and are urged to inquire about these services should an event such as this occur. The College will cover those expenses not covered by the airline, if ordinary, necessary and reasonable.
LODGING:
It is highly recommended that all lodging be booked through Child Travel. Prudent judgment should be used when selecting a hotel. A single room with a private bath in a moderately priced business class hotel or motel is the College standard. Reimbursement for suites or luxury accommodations requires the written permission from the functional Vice President and President or Vice President for Finance prior to booking the lodging.
If two persons, one of who is not on College business (spouse, friend), occupy a double room only the single rate may be charged to the College. Always ask for corporate, conference, or educational discount.
If booked by Child Travel, all rooms will be guaranteed for late arrival. Employees must cancel the room reservation by 6:00 p.m. the day of arrival (4:00 p.m. at many resorts) to avoid a "no-show" charge. Employees are advised to request and retain a "cancellation number" as documentation of the transaction. "No-show" charges will be the responsibility of the employee.
CAR RENTALS:
All ground transportation should be booked through either Child Travel or Enterprise Rent-A-Car (802.863.2111). The College’s corporate account number is 24H1065.
It is expected that reservations will be made for a compact vehicle, depending on the type of travel. Occasionally a mid-size vehicle may be appropriate when more than one employee will be using the vehicle and in a small number of other circumstances. The cost of premium, luxury or four-wheel vehicles will be charged to the individual renting the vehicle and reimbursement will be made at the compact or mid-sized rates as appropriate.
While it is not necessary to purchase additional coverage for domestic travel because the College's insurance will apply, it is recommended that additional coverage be purchased when traveling internationally. An insurance package, including proof of insurance, accident reporting kit, etc., is available in the Vice President for Finance's office. This package should be taken on trips requiring automobile rental.
Employees are expected to refuel rental cars prior to returning them to the rental agency in order to avoid their excessive price for gasoline. Do not use the prepaid gas option.
7.4 Other transportation: If you are booking travel arrangements for a group, you are expected to take advantage of services provided by Child Travel. The Travel Agent is aware of many opportunities for group discounts. Even if you are not sure of your group's final size, you may realize considerable savings on behalf of the College.
7.5 Method of reimbursement: All reimbursements in excess of $50.00 will be made by check issued by the Accounts Payable Department with the exception of cash advance settlements. Reimbursement of expenses of $50.00 or less may be made in cash in the Cashier's Office upon presentation of a properly completed and approved Employee Business and Petty Cash Advance Expense Report and Credit Card Reconciliation Form.
8.0 POLICY EXCEPTIONS
Generally, any exception to this policy must have the prior written approval of the applicable functional Vice President and the President or Vice President for Finance. Requests for exceptions should document extenuating circumstances or proposed overall savings to the College. At certain times, under unusual circumstances, exception may be made after the fact, however, payment by the College will not be made without the approval of the President or Vice President for Finance.