Travel and Entertainment Training.ppt by zhaonedx

VIEWS: 3 PAGES: 75

									  T & E Training
Survey of UC Policies & Procedures

  Practical Applications at UCSB
             FALL 2006
                             SCOPE
                  This presentation outlines
             UC’s Business and Finance Bulletins
        G-28, Policy and Regulations Governing Travel
                 G-28, Travel Policy Summary
      G-13 - Policy & Regulations Governing Moving &
                          Relocation
     BUS-79, Expenditures for Entertainment, Business
           Meetings, and Other Occasions

   Click on hyperlinked text to see relevant sections of policy and
                     procedure, tables, forms, etc.

FALL 2006                 T & E Policies & Regulations                2
                AUDIT FINDINGS
   Inability to Track Travel Cost [and advances] by Individual Trip
   Exceptional Travel Expense [not adequately justified]
   Frequency of UC Employee Only Meals
   Incomplete or Missing Documentation
   Delegation of Authority for Exceptions [unclear]
   Inadequate Documentation of Business Purpose
   Use of Per Diem in Lieu of Actual Meal Expenses
   Failure to Use Entertainment Form for Recharge Activities
   Lavish Entertainment Expense under the Circumstances
   Alcoholic Beverages Charge to Inappropriate Fund Source
   Incomplete Guest List
   Inappropriate Assignment of Official Host
   Self or Subordinate Approval of Expenses
   Expense with the Appearance of a Personal Nature

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I. REFERENCES                     Travel


   ACADEMIC PERSONNEL MANUAL
       Scholarly Meetings
       Field Research
       Appointees to Visiting Titles
       Recruitment
       Leaves of Absence/Sabbatical



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I. REFERENCES                     Travel


   ACCOUNTING MANUAL
       Transient Occupancy Taxes
       Federal Taxation of Aliens
       Taxation of Scholarship and Fellowship Grants
        and Education Assistance
   BUSINESS & FINANCE BULLETINS (BFB)
       Entertainment
       Policy & Regs on Moving and Relocation

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I. REFERENCES Travel

   U.S. DEPARTMENT OF STATE
       Per Diem Rates and Maximum Allowances
             The University uses the Federal rates
             See link to Federal tables at [link]

   INTERNAL REVENUE SERVICE
       Documentation, Substantiation Standards
             Electronic records and retention rules
             Itemized, original receipts



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II. DEFINITIONS                      Travel


   Business Purpose – activities that contribute
    to any of the University’s major functions of
    teaching, research or public service

   M&IE Reimbursement Cap – the maximum
    for daily meal and incidental expenses for
    CONUS (continental U.S.) travel of less than 30
    days – not a per diem as only actual expenses
    are reimbursable
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II. DEFINITIONS                                      Travel

   Per Diem – the daily subsistence allowance authorized by Federal
    CONUS, OCONUS & Foreign location tables
        Requires no receipts
        Authorized for
               foreign travel,
               OCONUS (Alaska, Hawaii, U.S. possessions) travel,
               domestic travel assignments of 30 days or more,
               domestic travel assignments exceeding one year
        Consists of lodging and M&IE
               M&IE includes fees, tips, local transportation, mailing costs
               Taxes on lodging not included, reimbursed separately
Per Diem – also a reimbursement CAP for actual M&I (cap is highest
    domestic CONUS (continental U.S.) per diem rate)
      Less then 30 days: up to 100% of cap for actual M&IE, excluding
       lodging
      30 days or more: up to 55% of cap for actual M&IE and actual lodging




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II. DEFINITIONS                       Travel


   Reporting Period – the 21 day period within
    which a Travel Expense Voucher must be
    submitted

   Travel Expense – those that are ordinary and
    necessary to accomplish business purpose

   Travel Status – period during which traveler is
    on official University business is outside vicinity
    of headquarters or residence

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III. UNIVERSITY TRAVEL POLICY

A.    SCOPE
     – applies to all official University travel even if Federally funded
     – extramural terms govern only if more restrictive than UC policy
     – campuses may adopt more restrictive procedures

B.    AUTHORITIES
     – this Bulletin is issued under a Presidential delegation to Senior
          Vice President—Business and Finance
     – implementing regulations delegated to Vice-President—Financial
          Management




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III. UNIVERSITY TRAVEL POLICY

C.       POLICY– all official UC travel
           shall be properly authorized, reported and
            reimbursed in accordance with this Bulletin (BFB G-
            28)
           shall not include personal expenses, even if only
            temporarily funded
           shall conform to normally accepted standards of
            propriety
           shall be reported in a responsible and ethical
            manner

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III. UNIVERSITY TRAVEL POLICY

C.       POLICY– IRS conformity
           Reimbursement procedures designed to
            conform to IRS substantiation rules
           Travel expenses considered by the IRS to be
            taxable income to the traveler are not
            reimbursable except for the following:
               Expenses for travel in excess of one year
               Certain travel expenses under BFB G-13,Policy
                and Regulations Governing Moving and
                Relocations

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III. UNIVERSITY TRAVEL POLICY

D.       EXCEPTIONS to this policy

           May be authorized by the Chancellor or his
            designee

           May be granted under extenuating
            circumstances which must be documented
            and deemed ordinary and necessary under
            the circumstances

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IV. APPROVAL OF TRAVEL

   Must be impartial
   Traveler cannot approve own
    reimbursement
   Employee shall not approve travel
    expenses of individual
       To whom he/she reports direct or indirectly
       Near relative

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V. PAYMENT OF TRAVEL
   PREPAID EXPENSES AND DIRECT CHARGES –
    billed directly to University
       Transportation tickets, conference fees
   Lodging, meals, other subsistence expenses
    (M&IE) CANNOT be billed directly – traveler
    must pay and submit claim for reimbursement
       Exceptions: group subsistence expenses, students,
        prospective employees (once hired, lodging and M&IE
        cannot be prepaid for 2nd interview, relocation, house
        hunting)

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V. PAYMENT OF TRAVEL
   CORPORATE TRAVEL CARDS – UCSB’s program
    with US Bank – participation encouraged but not
    required by all units
       Use for all expenses related to official travel
       Cardholders responsible for charges, payments
       Late fee charges not reimbursed
       Delinquencies may result in cancellation
       Cardholders must use it for advances, if eligible
       Must be relinquished to department upon termination

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V. PAYMENT OF TRAVEL
   CASH/NON-CASH ADVANCES – Eligibility
       If traveler not eligible for corporate card or
        not yet obtained one
       Corporate card expenses due before
        completion of trip
       Special handling – foreign travel, group
        athletics, student groups, etc.
       Advance fees are reimbursable if obtained on
        corporate card for official University travel

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V. PAYMENT OF TRAVEL
   CASH/NON-CASH ADVANCES – Issuance
       Must be issued within 30 days of incurring expense
       Should not be authorized if
               Traveler is 30 days delinquent in substantiating prior trip
               Traveler’s Corporate Card is delinquent
               Traveler’s Corporate Card is lost (report immediately)
       Should have only one cash advance at a time per trip
       Documentation requirement: must submit Travel Expense
        Voucher even if due no additional amount
               zero-out voucher has same documentation requirements as regular
                voucher – must also list advance – must attach check if $$ due UC
       Cancelled or Postponed Trips
       Un-recovered Advances – taxable after 120 days


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V. PAYMENT OF TRAVEL
   PAYMENT OF EXPENSES ON BEHALF OF OTHERS –
    normally not acceptable except for
       Co-travelers sharing a room
       Pre-approved group travel
   CANCELLATION OF RESERVATIONS – traveler’s
    responsibility
       To return refundable deposits to the University
       Losses due to failure to cancel could be borne by traveler
Section XII REPORTING EXPENSES discusses completion of
   the Travel Expense Voucher (TEV) and the UC and IRS
       substantiation and documentation requirements

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VI. INSURANCE FOR TRAVELERS

   EMPLOYEES
       Covered 24 hours a day, worldwide while on official
        University business
               Begins when traveler leaves residence or campus, whichever
                occurs last
               Ends when traveler returns to residence or campus,
                whichever occurs first
   VEHICLES – see these references for details
       Section VII. TRANSPORTATION EXPENSES – various
        discussions under AUTOMOBILE
       Link to [dead]

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VII. TRANSPORTATION EXPENSES

        Shall be reimbursed based on the most economical
                       mode of transportation
                                 &
      the most commonly traveled route consistent with the
                    authorized purpose of the trip
            Exception must be approved by the chancellor

      Employees from same organizational unit planning on
       traveling together should consider the risk and impact
                             of accident

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VII. TRANSPORTATION EXPENSES

A.    GENERAL – refer to text for details about these
      covered topics
     1.     Definition
     2.     Transportation Tickets
     3.     Lost Tickets
     4.     Allowable Mileage Expense
     5.     Surface Transportation Used in Lieu of Air Travel
     6.     Indirect or Interrupted Itineraries
     7.     Travel Extended to Save Cost

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VII. TRANSPORTATION EXPENSES
B.    AIR TRAVEL – refer to text for details about these
      covered topics
     1.     Commercial Airlines – Coach class, Business or First Class, U.S.
            Flag Air Carriers for travel reimbursed from federal grants and
            contracts
     2.     Private Aircraft
     3.     Chartered Aircraft
>>UCSB has arrangement with UCLA Travel Office for both
    YCAL and regular air travel reservations
– billing is via inter-campus recharge
– do not expense on voucher
– disclose in comment boxes on voucher


FALL 2006                    T & E Policies & Regulations                 23
VII. TRANSPORTATION EXPENSES

C. AUTOMOBILE
  Private vehicle is permitted if less expensive
      than renting a car or alternative modes,
      or if it saves time
  300 mile-per-day rule: IF traveler is authorized
      (automobile the most economical) actual
      M&IE up to the daily M&IE limit can be
      reimbursed for each 300 miles of travel

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VII. TRANSPORTATION EXPENSES

C.    AUTOMOBILE – refer to text for details about
      these covered topics
     1.     Private Vehicles
            a.   Mileage Reimbursement
            b.   Private Vehicle Used in Lieu of Air Travel
            c.   Fuel, Routine Repairs, and Associated Costs
            d.   Insurance
     2.     Rental Cars
            a.   Authorization to Rent
            b.   Insurance Coverage
            c.   Direct Billing
            d.   Damage to a Rental Vehicle


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VII. TRANSPORTATION EXPENSES

C. AUTOMOBILE – refer to text for details
      about these covered topics
    3. Official Vehicles
       a. University Vehicles
       b. State of California Pool Cars
    4. Miscellaneous Automobile-related Expenses
        Ferries, bridges, tunnels or toll roads
        Parking (there are limits on valet parking)


FALL 2006             T & E Policies & Regulations     26
VII. TRANSPORTATION EXPENSES

D. RAIL OR BUS
E. SHIP
F. OTHER FORMS OF TRANSPORTATION
   1. Local Public Transportation, Shuttle Service,
      and Taxis
   2. Motorcycles
   3. Special Conveyances


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VIII. SUBSISTENCE EXPENSES

A. GENERAL
  1. Lodging and meals and incidental expenses
     (M&IE) – ordinary and necessary to
     accomplish University business purpose –
     expenses incurred within vicinity of
     workplace or residence not reimbursable
  2. Entertainment Meals are reimbursed in
     accordance with BFB BUS-79, Entertainment

FALL 2006       T & E Policies & Regulations   28
VIII. SUBSISTENCE EXPENSES
B.    TRAVEL IN EXCESS OF 24 HOURS –                         (leave last:
      home or office, return first: office or home)
     1.     Domestic Travel – Travel Within the United States
            and Its Possessions
            a)   Travel – Assignment of Less then 30 Days
            •    CONUS (Continental US) Travel: only allowed actual
                 amounts incurred for lodging and M&IE – lodging expenses
                 require original receipts regardless of amounts incurred
            •    Daily M&IE cap (Appendix B) shall not be treated as a per
                 diem even though based on the highest per diem rate
            •    OCONUS (Outside Continental US) Travel: Alaska, Hawaii
                 and US possessions – allowed non-foreign per diem rates
                 published by Department of Defense (Appendix B)


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VIII. SUBSISTENCE EXPENSES
B.    TRAVEL IN EXCESS OF 24 HOURS
     1.     Domestic Travel
            b)   Long Term Travel – Assignment of 30 Days or More
            •    Daily rate (= monthly lodging + M&IE / days) assumes
                 expenses in one location for 30 days or more arising from
                 use of establishments catering to long-term travelers
            •    CONUS Travel: per diem of up to 55% based on an
                 estimate of actual daily expenses incurred for lodging (=
                 rental + utilities + phone / days) and M&IE – the daily
                 55% M&IE is a cap (Appendix B) for the actual daily
                 estimate, not a flat per diem rate – actual lodging taxes
                 can be separately reimbursed as a miscellaneous expense
            •    OCONUS Travel: Alaska, Hawaii and US possessions –
                 allowed up to 55% of non-foreign per diem rates published
                 by Department of Defense (Appendix B)


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VIII. SUBSISTENCE EXPENSES
B.    TRAVEL IN EXCESS OF 24 HOURS
     1.     Domestic Travel
            c)   Indefinite Travel – Assignments that Exceed One Year
            •    IRS one-year applies – travel away from home lasting
                 more than one year in a single location: reimbursements
                 must be treated as income subject to withholding taxes.
                 Therefore subsistence rate may be increased up to 150%
            •    Such assignments are limited to 2 years unless Chancellor
                 grants an exception
            •    See text for details about these covered topics: indefinite
                 assignment ends prematurely, temporary assignment
                 extended, indefinite assignment interrupted by trips to
                 former residence or to headquarters


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VIII. SUBSISTENCE EXPENSES
B.    TRAVEL IN EXCESS OF 24 HOURS
     2.     Foreign Travel
            a)   Travel – Travel Assignments of Less Than 30 Days
            •    Reimbursed in accordance with the Federal Maximum
                 Travel Per Diem Allowances for Foreign Areas published by
                 the Department of State
            •    Begins upon arrival at foreign destination and ends upon
                 departure
            •    If actual expenses are claimed the circumstances must be
                 documented in writing. Amount reimbursed may not
                 exceed 300% of location’s established federal rate.
            •    See text for details about above covered topics

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VIII. SUBSISTENCE EXPENSES
B.    TRAVEL IN EXCESS OF 24 HOURS
     2.     Foreign Travel
            b)   Long-Term Travel – Assignments of 30 Days or More
            •    Per diem allowance authorized is up to 55% of applicable
                 federal per diem rate (Appendix B) as traveler is expected
                 to seek long-term accommodations. See domestic for
                 estimating and calculating daily rate
            c)   Indefinite Travel – Assignments that Exceed One Year
            •    Domestic rules apply, subsistence rate may be increased
                 up to 150%, must take any annual foreign earned income
                 exclusion into account
            •    See text for details about above covered topics

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VIII. SUBSISTENCE EXPENSES
B. TRAVEL IN EXCESS OF 24 HOURS – See
   text for details about these additional covered
   topics
  3. Adjustment of Per Diem Rates
             Adjustment for multiple locations
             Adjustment for partial days
             Adjustment for subsistence or lodging provided
               without charge
    4. Use of Non-Commercial Facilities
    5. Lodging With a Friend or Relative

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VIII. SUBSISTENCE EXPENSES
C.    TRAVEL OF LESS THAN 24 HOURS
     When trip is 12 hours or less
               Incidental expenses shall not be reimbursed except if meal
                is an integral part of a business meeting
     When trip lasts more than 12 hours but less than 24
        hours
               Domestic (CONUS) Travel – Actual cost of lodging and/or
                M&IE subject to daily maximum in Appendix B for M&IE
               Foreign and OCONUS Travel – Actual cost not to exceed
                federal per diem rate (Appendix B). For continuous travel
                of 21 hours or more, pay one full per diem


FALL 2006                    T & E Policies & Regulations                   35
VIII. SUBSISTENCE EXPENSES
D.    PAYMENT OF GROUP SUBSISTENCE EXPENSES
     When the University negotiates group lodging and meal rates,
         vendor may be paid either by group leader or by billing the
         University
     Group travelers may claim reimbursement as follows:
        Group leader who pays part or all of groups expenses must
         provide invoice/receipt showing payment in full
        Group members may claim reimbursement for part of
         expenses not paid by group leader
E.    TRANSIENT OCCUPANCY TAX EXEMPTIONS
           See Accounting Manual chapter T-182-75 for details and a list
            of cities and counties in California that grant the exemption to
            University employees


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IX. MISCELLANEOUS TRAVEL
EXPENSES
       Reimbursable when ordinary and necessary to
        accomplish the official business purpose of the trip,
        including
           Business office expenses
           Special fees for foreign travel
           Registration fees
           Actual costs for lodging taxes (not included in CONUS per
            diem rates)
           Charges for checking and storing baggage, excess baggage
            fees, all with justification
           Other ordinary and necessary expenses not included in the
            above categories


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X. INTERCAMPUS TRAVEL
     EXPENSES
     Procedures for administration of intercampus
      travel for both employees and visitors – see
      actual Policy text for details on the following
      topics
    A.      FUNDING CAMPUS RESPONSIBILITIES
               Travel Funded by a Single Campus
               Travel Funded by Two or More Campuses
               Missing Original Receipts
               Outstanding Cash Advances
    B.      HOME CAMPUS RESPONSIBILITIES


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XI. SPECIAL TRAVEL SITUATIONS

   UNIVERSITY TRAVELERS – see policy text
    for detailed discussion of topics listed
    below
       Visiting Academic Appointees covering topics
        such as Authorized Advances and Return
        Travel
       Faculty Members on Sabbatical Leave
       Students
       Post-Docs and Other Non-degree Candidates

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XI. SPECIAL TRAVEL SITUATIONS

   NON-UNIVERSITY TRAVELERS– see policy text
    for detailed discussion of topics listed below
       General Regulations
       Prospective employees
       Independent Contractors and Consultants
       Inbound Travel - Temporary Assignments
       Foreign Visitors and Scholars
       Spousal Travel
       Athletic Travel - Spouse and Other Family Members

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XII. REPORTING TRAVEL
     EXPENSES
  Except for direct billing arrangements that
      have been approved in advance, a
    Voucher must be processed even if no
      reimbursement is due the traveler
UCSB’s official travel reimbursement form is
  the web-based Travel Expense Voucher
                   (Web TEV)
https://apps.accounting.ucsb.edu/travel/Secure/Login.aspx

FALL 2006           T & E Policies & Regulations       41
XII. REPORTING TRAVEL
     EXPENSES
A.    REPORTING PERIOD – submit to Accounting within 21
      days of end of trip
               Or monthly if for recurrent local travel
               Or quarterly if trip lasts more than 90 days
B.    COMPLETION OF TRAVEL EXPENSE VOUCHER
     1.     Substantiation of Expenses
               Date/time of departure/return and any personal leave taken while
                on official travel status
               Origin/destination and route taken. Travel within local area.
                Continuous travel between points, deviation from standard route
               Purpose of travel or nature of business benefit
               Amount of each expenditure, listed by date and location
               Group leader’s expenses must include names of participants

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XII. REPORTING TRAVEL
     EXPENSES
B.    COMPLETION OF TRAVEL EXPENSE VOUCHER
     2.     Documentation Requirements
               Receipts – original of following must be submitted
                   All airline expenses
                   All lodging expenses, except where long-term per diem is
                    authorized
                    NOTE: traveler shall not be reimbursed for lodging expenses
                    unless the receipt presented by the traveler contains itemized
                    charges for the room, e.g., taxes, telephone, etc.
                   Rental car expenses
                   Exceptional meal expenses of $75 or more
                   Local transportation costing $75 or more
                   Each miscellaneous expense of $75 or more
     Departments/control points may be more restrictive

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XII. REPORTING TRAVEL
     EXPENSES
B.    COMPLETION OF TRAVEL EXPENSE VOUCHER
     2.     Documentation Requirements
            a)   Receipts – see policy text for documentation of expenses
               relating to private aircraft, extraordinary items, car
               damage, gifts for host, agenda’s documenting registration
               fees, electronic, emailed and faxed receipts
             Travel Packages Purchased from Internet Vendors cannot
               be used for business-related travel unless the traveler has
               confirmed that each aspect of the package will be
               separately itemized
            b) Missing Original Receipts – explanation must be attached
               with certification that the traveler has not and will not seek
               reimbursement from any other source

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XII. REPORTING TRAVEL
     EXPENSES
B.    COMPLETION OF TRAVEL EXPENSE VOUCHER
     3.     Certification of Travel Expense
            Traveler must sign the TEV certifying amounts claimed are a
                true statement of the expenses incurred on official
                University business and that the original of all required
                receipts has been submitted
C.    RETURN OF EXCESS ADVANCE AMOUNTS
           If advance exceeds expenses, payment due shall be
            submitted with the TEV. Make check payable to UC
            Regents

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XII. REPORTING TRAVEL
     EXPENSES
D.       APPROVAL OF TRAVEL EXPENSE VOUCHER (TEV) FOR
         PAYMENT
           Must be approved for payment by traveler’s department head
            or other officially delegated/re-delegated individual
           Must be impartial, traveler cannot approve own
            reimbursement
           Employee shall not approve travel expenses of individual
               To whom he/she reports direct or indirectly
               Who is a near relative
Use UCSB’s online Web TEV for travel less than 30 days
Use paper TEV for travel 30 days or longer, relocations,
    removals, 2nd interview, house hunting trips

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              APPENDICES Travel
A.    MILEAGE REIMBURSEMENT RATES FOR PRIVATE
      VEHICLES AND AIRCRAFT

B.    LODGING AND M&IE REIMBURSEMENT CAPS

C.    TRAVEL OF LESS THAN 24 HOURS M&IE
      REIMBURSEMENTS

D.    REDUCTION IN M&IE PER DIEM FOR MEALS FURNISHED
      WITHOUT CHARGE

E.    PRORATING PER DIEMS FOR TRAVEL INVOLVING
      MULTIPLE LOCATIONS

F.    INTERCAMPUS TRAVEL EXPENSE TRANSFER APPROVAL

G.    IRS TAX GROSS UP FORMULA

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I. REFERENCES                             Moving, Relocation



Letters and delegations from the President and Senior Vice President

Academic Personnel Manual, Sections 550, 560, 561

Business and Finance Bulletin G-28, Policy and Regulations
  Governing Travel

Related Accounting Manual Chapters

Internal Revenue Code Sections and Service Announcements



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II. PURPOSE                 Moving, Relocation


Sets forth the policy and procedures
 governing the payment of moving
 expenses and relocation allowances for
 non-exclusively represented staff
 employees at the nine campuses and the
 Office of the President



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III. SCOPE              Moving, Relocation

The following employee classifications are covered
  by these guidelines:
 1) Senior Managers;

 2) Managers, Senior Professionals, and
  Professionals; and
 3) Support Staff.

Included as an appendix are the policies related to
  moving expense payments for academic
  personnel

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IV. DEFINITIONS                                       Moving, Relocation

A. MOVING EXPENSES
           Reasonable costs incurred by new appointees or by current
            employees transferring
             Conventional mode, direct route, reasonable time
           Household goods, personal effects
           Cost of travel: individual and immediate family
B. RELOCATION ALLOWANCE
           NOT reimbursement of relocation costs
           Rather, an offset of higher living costs not to exceed 25% of
            annual salary
             First 4 years: 40%, 30%, 20%, 10%
           NOT eligible: UC employees, CA residents


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V. AUTHORITIES                                             Moving, Relocation

A. MOVING EXPENSES
     New Appointees: Delegated to Chancellors, Deans
             See Appendix C for eligible ranks and percentages
     Transferring Employees: Chancellor approves
     Exceptions: Chancellor when required due to
      extenuating circumstances
             Limited to actual cost if deemed ordinary and necessary
             Supported by original receipts
B. RELOCATION ALLOWANCES
     Delegated to Chancellors

FALL 2006                   T & E Policies & Regulations                    52
VI. POLICIES AND PROCEDURES —
MOVING EXPENSES
A. SENIOR MANAGERS
           Eligibility for Reimbursement:
             New hires/appointees or transferring employees whose new
              work location is outside reasonable commuting distance
           Reimbursable Expenses – reasonable expenses for
             Transporting household goods, personal effect
             Appointee/employee and members of household – one way
              travel not to exceed cost of airfare
             Meals and lodging: while en route plus one day each at old and
              now locations in accordance with G-28
             See policy text for details on transporting autos, packing and
              crating, storage and insurance, house seeking and temporary
              living expenses, etc.



FALL 2006                     T & E Policies & Regulations                     53
VI. POLICIES AND PROCEDURES —
MOVING EXPENSES
B. MANAGERS, SENIORS PROFESSIONALS, AND
   PROFESSIONALS
           Eligibility for Reimbursement
             See policy text for variations on employee transfers
             Subject to 50% limitation for new appointees
           Reimbursable Expenses
             See policy text for further details
C. SUPPORT STAFF
           Eligibility for Reimbursement
             University pays when employee is required to transfer
           Reimbursable expenses
             See policy text for details


FALL 2006                      T & E Policies & Regulations           54
VII. TAX TREATMENT OF MOVING
EXPENSES
A. NONTAXABLE EXPENSES – must meet these
   three tests
     Related to Start of Work – move made in
      connection to work at new location and incurred
      within one year
     Time Test – must be employed 39 weeks during
      12 months following move
     Distance Test – new job location must be at least
      50% farther then former commuting distance

      Includes moving household goods, personal
     effects, lodging expenses but excluding meals
FALL 2006            T & E Policies & Regulations         55
VII. TAX TREATMENT OF MOVING
EXPENSES
B. TAXABLE EXPENSES – must be included in gross
   income as taxable wages
           Travel expenses, meals, lodging for pre-move house-hunting
            trip
           Meals, lodging while in temporary quarter at new location
           Rental car costs while primary auto is being shipped
           Meal expenses while moving from old to new residence
           See policy text for real estate expenses (items 5 through 8)
            and footnote on page 11
           See policy text for details on other taxable expenses
            including mileage in excess of current rate for removals



FALL 2006                    T & E Policies & Regulations                  56
VIII. PAYMENT PROCEDURES
Moving, Relocation
A. ADVANCE PAYMENTS
           Should not exceed 75% of estimated reimbursements
           Approved by Chancellor or designee
B. PAYMENTS MADE DIRECTLY BY THE UNIVERSITY
           Transportation of household goods, personal effects
           Must be requisitioned by purchase order
           Subject to 50% limitation for certain classifications
C. REIMBURSEMENT PAYMENTS
           Nontaxable reimbursements must be on Travel Expense
            Voucher
           Any taxable amounts must be properly tax coded
D. TAX REPORTING
           Required for both taxable and nontaxable amounts
           Taxable amounts are subject to withholding

FALL 2006                    T & E Policies & Regulations           57
IX. RESPONSIBILITIES Moving, Relocation

Department Head – approves the payment of moving
  expenses for nonacademic personnel

See Appendix A for approving moving expense payments
  for academic personnel

Accounting Office – reviews all supporting documentation
  prior to payment for allowability, proper approvals.
  Responsible for appropriate tax coding.


FALL 2006           T & E Policies & Regulations           58
                     APPENDICES
                       Moving, Relocation

A.       Academic Personnel Manual
           APM – 550 RECRUITMENT, Moving Expenses for
            Intercampus Transfer
           APM – 560 RECRUITMENT, Removal
            Expenses/General
           APM – 561 RECRUITMENT, Removal
            Expenses/Assistants
B.       Policy on Relocation Allowance
C.       Moving Expense Payment Eligibility
         (Nonacademic Positions)

FALL 2006               T & E Policies & Regulations     59
I. REFERENCES                                         Entertainment, Business Meetings

Letters and delegations from the President and Senior Vice President

Other Business and Finance Bulletins
   G-28 Policy and Regulations Governing Travel
   G-32 Reimbursement for Overtime Meals
   G-41 Employee Non-Cash Awards
   G-42 Gifts Presented to Non-Employees on Behalf of the University
   G-43 Policy on University Membership in Organizations

Related Accounting Manual Chapters
   A-235-27 Administrative Fund Payments
   D-224-17 Delegation of Authority—Signature Authorization
   D-371-12.1 Disbursements: Accounting for and Tax Reporting of Payments Made through the
    Vendor System
   D-371-16 Disbursements: Approvals Required
   T-182-77 Taxation of Scholarship and Fellowship Grants and Educational Assistance

Internal Revenue Code, Disallowance of Certain Entertainment Expenses




FALL 2006                           T & E Policies & Regulations                              60
II. PURPOSE                  Entertainment, Business Meetings


This Bulletin outlines University policy and procedures
  governing the manner and extent to which the
  University may provide hospitality as part of an
  entertainment event.

The Bulletin also addresses meals provided in connection
  with business meetings, meals furnished to
  employees, meals provided to student athletes, and
  meals provided for other occasions.

Each campus may establish more restrictive procedures.


FALL 2006            T & E Policies & Regulations               61
III. SCOPE          Entertainment, Business Meetings


This Bulletin governs the appropriate use of
  University funds for entertainment functions,
  business meetings, and other occasions when
  meals and/or light refreshments are served.

The Bulletin does not apply to the University-
  managed Department of Energy Laboratories.




FALL 2006         T & E Policies & Regulations         62
IV. DEFINITIONS
Entertainment, Business Meetings

This section covers concepts such as:
 Alcoholic beverages, allowability, approving
  authority, business meeting vs. entertainment
  expenditures, exceptional expenditures (see
  slide), guests, light refreshments, meal, official
  host, reimbursement, unallowed expenditures
  (see slide), work location




FALL 2006                 T & E Policies & Regulations   63
IV. DEFINITIONS
Entertainment, Business Meetings

   Exceptional expenditures – those exceeding the
    per-person maximum rates for meals and light
    refreshments specified in Appendix A
    Or certain types of hospitality, such as:
       Entertainment of the spouse or partner of a host or a guest;
       Tickets to a sporting, theatrical, or musical event; and
       A cash contribution which includes the cost of a meal or
        registration fee made to a nonprofit organization in
        connection with an employee’s attendance at a fundraising
        event.




FALL 2006                  T & E Policies & Regulations                64
IV. DEFINITIONS
Entertainment, Business Meetings


   Un-allowed expenditures – the following may not be
    reimbursed:
       Expenses that are lavish or extravagant under the circumstances
       Expenses that represent additional taxable income to an employee or
        student
       Monetary contributions to a political campaign or candidate;
       Expenses for employee birthdays, weddings, anniversaries, or
        farewell gatherings (excluding celebrations for retirement or for
        employees separating from University employment with at least 5
        years of service).
       The purchase of property or services for personal use or for a non-
        business reason
       Expenditures using restricted funds that are not permitted under the
        terms governing those funds.


FALL 2006                   T & E Policies & Regulations                       65
V. UNIVERSITY POLICY
Entertainment, Business Meetings

   In providing hospitality to campus and/or
    community audiences, the event…
       Must support mission of University
       Must be in accordance with prudent business
        judgment
       Must be based on reasonableness, allowability,
        benefit to the University, budget and availability of
        funds
       May not result in taxable income to employee or
        student


FALL 2006                 T & E Policies & Regulations          66
V. UNIVERSITY POLICY
Entertainment, Business Meetings

A. AUTHORITY – issued by Senior Vice
   President, Business and Finance (UCOP)
B. ALLOWABLE EXPENSES – usually meals and
   light refreshments – see text for details
    1. Entertainment-Related Expenditures
             University employee on travel status
             Prospective donors, employees, and student appointees
                 Event tickets –exception
             Visitors, guests, and volunteers
             Spouse/partner of a University guest or host – exception
             Cash contributions included in fundraiser fee - exception

FALL 2006                     T & E Policies & Regulations                67
V. UNIVERSITY POLICY
Entertainment, Business Meetings

B. ALLOWABLE EXPENSES – usually meals and
   light refreshments – see text for details
    2. Business meeting hospitality – must occur
       infrequently, benefit UC, be reasonable and
       appropriate to unit’s function
             Employee morale-building activities – exception
             On-the-job meals as condition of employment
             Meals provided to students – athletic teams, recruitment,
              class, orientation, commencement, government,
              association, meeting between student and faculty/staff




FALL 2006                    T & E Policies & Regulations                 68
VI. TAX TREATMENT OF ENTERTAINMENT
      EXPENDITURES
   IRS: reimbursement is income to employee if
       Event not related to employees job
       Expense is lavish, extravagant under circumstances
       Official host (designated employee) not present
       No substantiating documentation
    Such expenses will not be paid by the University
   Deductible expenses must be directly related to or
    associated with the active conduct of official business
       General expectation of deriving benefit from event
       Actual engagement in business discussion occurred at event
       Principal nature of event was active conduct of business
       Expense incurred was for University host(s) and guest(s)


FALL 2006                 T & E Policies & Regulations               69
VII. APPROVAL OF EXPENDITURES
Entertainment, Business Meetings

A. GENERAL APPROVAL REQUIREMENTS FOR
   REIMBURSEMENT – expenditure
           Serves clear and necessary business purpose
           Is reasonable, cost-effective use of funds
           Is allowable, does not create income to participant
           Funds are available and allowable under fund source
           Equally effective alternatives were considered
     Department head (or equivalent authority) is
     authorized to approve
           Employee shall not approve expenses of individual to whom
            he/she reports direct or indirectly, i.e. approving authority
            should be the supervisor or higher classification

FALL 2006                    T & E Policies & Regulations                   70
VII. APPROVAL OF EXPENDITURES
Entertainment, Business Meetings

B. EXCEPTIONAL EXPENDITURES – approval required
           Written justification as to why higher costs were
            unavoidable and necessary
           Exception approver must assure justification is adequate
           Limited to actual documented costs incurred


C. AUTHORITY FOR EXCEPTION TO BULLETIN
           Delegated to Chancellor
           Re-delegations by Chancellor are in writing to a few high-
            level officials and may not be re-delegated further




FALL 2006                    T & E Policies & Regulations                71
VIII. REIMBURSEMENT DOCUMENTATION
Entertainment, Business Meetings

>> Expenses of $75 or more per occasion must be supported by
    itemized receipts – missing documentation must be explained
A. REIMBURSEMENT OR PAYMENT REQUEST
           Use UCSB’s Form-5E8 – form specifies documentation
            requirements of this Bulletin
           See Appendix B for host signature requirements
B.   ADDITIONAL DOCUMENTATION REQUIRED FOR CASH
     CONTRIBUTIONS
           Business relationship with non-profit, copy of transmittal letter,
            statement from non-profit with detailed breakdown
C.   BUSINESS MEETING DOCUMENTATION
           Expense must be necessary, integral part of business meeting and
            not a matter of personal convenience
D.   AUTHORIZED RATES FOR MEALS AND LIGHT REFRESHMENTS
     – Appendix A

FALL 2006                       T & E Policies & Regulations                     72
VIII. REIMBURSEMENT DOCUMENTATION
Entertainment, Business Meetings

E. FUNDING SOURCE RESTRICTIONS
           State Funds – may not be charged an expense which is an
            exception, or used for alcohol
           Contract and Grant Funds – can be used only if specifically
            authorized by the contract, budget or agency policy –
            department responsibility
           Other Funds – only if costs conform to restriction imposed
            by fund source and policy, the stricter of which governs
F. FINANCIAL CONTROLS
           Payment to be made directly to the individual or vendor
G. QUANTITY PURCHASES
           Inventory Record for Quantity Purchases (Appendix C)
            should be maintained and made available upon request


FALL 2006                    T & E Policies & Regulations                 73
IX. RESPONSIBILITIES
Entertainment, Business Meetings


    Vice President-Financial Management
           Adjusts per person rates (Appendix A)
           Issues appropriate processing procedures
    Department Head (equivalent authority)
           Ensures compliance with University policy, fund source
            restrictions, appropriate documentation
           Responsible for approval of payment request form and any
            inventory records of quantity purchases
    Accounting Office
           Ensures reimbursement requests are made in accordance
            with Bulletin – allowable claims, proper approvals in place,
            performs post audit review, record retention

FALL 2006                     T & E Policies & Regulations                 74
UCSB Entertainment forms:

    Payment Request: Expenditures for Entertainment,
     Business Meetings and Other Occasions

    Blanket Prior Approval Request: Business Meeting &
     Entertainment (Form U5-8EA)

    Prior & Exceptional Approval Worksheet for
     Entertainment (Form U5-8EW)

                         APPENDICES
                    Entertainment, Business Meetings


    MAXIMUM RATES FOR MEALS AND LIGHT REFRESHMENTS

    APPROVAL OF EXPENDITURES

    INVENTORY RECORD FOR QUANTITY PURCHASES



FALL 2006              T & E Policies & Regulations       75

								
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