POLICY:
Graceland University will maintain an accountable plan status with the IRS regarding business related travel expenses. In order to qualify as an accountable plan, three conditions must be met:
1. Business Connection – expense must be business-related.
2. Substantiation – detailed expense records must be maintained, i.e. date, time, place, amount, and business purpose.
3. Return of Unspent Amounts – any advance payments in excess of the substantiated amount must be returned to the University.
PROCEDURE:
The immediate supervisor or a vice president must approve all requests for advances (travel purposes or other). Advance Request forms are available from Accounting Services (on-line as well as in the office). An advance should be for a specific trip or other specific expense. A reasonable attempt should be made to estimate anticipated expenses when requesting an advance so that advance amounts are not excessive. An advance should also be timed appropriately to provide the advance when needed. Planning must allow for check and cash deadlines. Cash advances may be received for $100 or less; checks for advances must be issued for amounts over $100.
Advances will be charged against the requesting individual’s account until an expense report with appropriate substantiation is submitted, and/or advanced monies are returned. Advances for one employee should not be handed to another employee for spending.
Within 10 working days following the completion of a trip or expense event, an itemized expense report must be completed, approved by the immediate supervisor and anyone with budget authority over the budget accounts being charged, and submitted to Accounting Services. Expense accounting for each occasion of travel is required whether an advance is taken or not. Expense Report forms are available from Accounting Services (on-line as well as in the office). Personnel on extended trips are required to submit an expense report at least once every 30 days.
Expenses must be substantiated by original receipts, which must be attached to the expense report. Receipts for all expenses are required; with the exception of transportation and parking where receipts are not readily available. Expenses must be itemized on the expense report indicating date, place, amount, business purposes, and category, i.e. transportation, lodging, meals, parking, etc. The University will not assume the expense for any alcohol or tobacco products.
Employee and supervisor signatures must be original and legible.
Receipts from university issued corporate credit card expenses should not be submitted for reimbursement on an expense report, but should instead be attached to the corporate credit card statement.
Personal vehicle use should be reimbursed via a per mile rate (see the Fees, Rates, & Charges Schedule for the active fiscal year). Gasoline and other personal vehicle expenses should not be submitted for reimbursement.
Accounting Services has the right to question expenses in relation to business purposes, and expense levels. See Policy B1, Travel Expense Guidelines.
If the employee received an advance and this amount is indicated on the expense report, his/her account will be credited for the amount of the advance or the amount of the substantiated expense, whichever is less. Accounting Services will process reimbursement for any approved expenditures in excess of an advance amount, or in cases of no advance, for the amount of the approved expenditures. Checks for amounts $50, or more, will be processed during the next general check run. For amounts under $50, the employee will be notified to come to InfoCentral to receive cash for the amount due the employee.
In the case of faculty requesting reimbursement from Professional Development Funds (travel and memberships), expenses should be itemized on an expense report, however, the amount reimbursed to the faculty member and therefore charged to the Professional Development line item, must not be greater than the faculty member’s allotment balance, as maintained by the Academic Affairs Office (see Professional Development Funds Policy). Net Due University/Employee will be in relation to the allotment being spent with consideration of any advance taken, even if the total funds spent exceed the allotment balance. The expense report must be signed by the Vice President for Academic Affairs, who holds budget authority over the budget line, and which insures that the Academic Affairs Office’s records are updated.
If an advance amount becomes 30 days delinquent from the time of advance, Accounting Services is required to notify the employee and supervisor to request an expense report or the return of funds. No additional advance will be issued to the employee until the delinquent advance amount is cleared. New advances will only be issued upon timely satisfaction of delinquent amounts in accordance with check or cash deadlines.
If an advance amount becomes 60 days delinquent from the time of advance, the Director of Accounting Services will notify the employee and supervisor to request an expense report or the return of funds, with a warning about a future potential payroll deduction.
If an advance amount becomes 90 days delinquent from the time of advance, the Director of Accounting Services may initiate a payroll deduction with Human Resources for the amount due to the University, to occur on the next available payroll, and also notify the employee and supervisor of this action. The Director of Accounting Services has the right to permanently deny future advances for employees who reach this severe stage.
