Touro College Out of Town Employee Travel and Entertainment (T&E) Expense Policy Senior Vice President of Operations

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1 TITLE: ISSUED BY: Touro College Out of Town Employee Travel and Entertainment (T&E) Expense Policy Senior Vice President of Operations EFFECTIVE DATE: October 1, 2008 INTRODUCTION This document establishes the basis for College reimbursement of out of town travel and entertainment expenses for employees. Out of town travel is defined as travel requiring an overnight stay. The purpose of the Travel and Entertainment (T&E) policy is to provide the College community with broad guidelines to ensure only reasonable and necessary expenditures for authorized business travel and entertainment are incurred, documented, and paid for by the College in conformity with applicable laws, acceptable practices, and general business practice. In some cases, departments may impose more restrictive guidelines than those set forth in this policy. This policy and all its documentation requirements apply to all employees regardless of the particular source of funding. The Internal Revenue Service imposes the following requirements on reimbursement of business expenses: 1) there must be a business reason for the expenses; 2) the individual must substantiate the expenses; and 3) the individual must return to the employer or organization any amount advanced in excess of the substantiated expenses. All travel outside of the immediate geographic area of an employee s primary job location requires prior approval. The Travel and Conference Requisition Form (T & C Requisition Form) is used for this purpose (Appendix A). It must be submitted to the Office of the Senior Vice President of Operations or his designee prior to undertaking such travel along with any supporting documentation for conference/seminar and presentations. For travel and entertainment expenses to be paid or reimbursed, they must be properly accounted for, with the business purpose stated and proper supervisory approvals obtained before and after the trip. The Travel & Entertainment Reimbursement Form (T & E Reimbursement Form) is used to obtain reimbursement. (A copy is contained in Appendix B). Approved requests for payments, reimbursements, and settlement of travel advances must be submitted to the Accounts Payable department within a reasonable period of time, normally within 30 days of the completion of the travel. Expense reimbursement requests received more than 90 days of the occurrences will not be paid. (A copy of the approved Travel and Conference Requisition Form must be attached to the pertinent expense report(s)). Exceptions to this policy (not otherwise covered by laws, grants, or contractual commitments) may be made on an individual basis, but require the traveler to obtain written pre-approval from the Senior Vice President of Operations or the Senior Vice President of Finance. 1

2 RESPONSIBILITIES OF TRAVELERS Travel and entertainment expenses will be paid or reimbursed by the College if they are reasonable, appropriately documented, properly authorized, and within the standards of this policy. A specific list of reasonable and unreasonable expenditures is contained in Appendix C at the end of this manual. RESPONSIBILITIES OF SUPERVISORS The Supervisor of the employee who is traveling is responsible to review and approve all College travel and entertainment expenses and to ensure sufficient funds are available in the relevant budget lines. That supervisor may delegate authority to review and approve expenditures (except for their own - see note below) providing such delegation is communicated in writing to Accounts Payable. It is the responsibility of the approving party to be familiar with the need for the travel prior to approving it. Note: Travelers may not authorize reimbursement of their own travel and entertainment expenses. Also, employees may not approve T&E expenses for an individual to whom they report. RESPONSIBILITIES OF THE OFFICE OF THE SENIOR VICE PRESIDENT OF OPERATIONS Reviewing and approving all requests for trips prior to their being undertaken; Reviewing reimbursement forms and attachments for completeness, accuracy, reasonableness, and compliance with government regulations and College policies; Verifying that business units and accounts are correct; Returning forms to employees when items appear unreasonable, incomplete, personal in nature, or not in accordance with government regulations or College policies. Note: The above does not relieve the traveler or supervisor from their obligations under this policy. RESPONSIBILITIES OF THE CONTROLLER/ACCOUNTS PAYABLE Maintaining auditable records of travel expenses; Monitoring to ensure that advances are cleared in a timely manner; Verifying required approval signatures; Ensuring proper tax treatment of taxable income items and compliance with IRS regulations. TRAVEL & EXPENSE REIMBURSEMENT FORM (OUT OF TOWN TRAVEL) Requests for payments, reimbursements and settlement of travel advances should be submitted on a completed, signed and approved Travel & Expense Reimbursement Form, accompanied by the required receipts, within a reasonable period of time, normally within 30 days of the completion of the travel, but not to exceed 90 days. Traveler must submit original receipts (copies will not be accepted) and organized on a daily basis and attached an 8 ½ x 11 page. The reimbursement form must contain all pertinent information: travel dates, purpose, destinations, business unit and object accounts, and appropriate authorization signatures. Travelers must sign the forms to certify to the best of their knowledge that the information contained on the Travel and Expense Reimbursement Form is accurate 2

3 and that all claimed expenses were allowable and incurred in the conduct of official College business. If the traveler s signature cannot be obtained due to extraordinary circumstances, the form may be processed with the departmental authorizing signature, provided that an adequate explanation is attached. Expenses incurred in foreign currency must be converted to U.S. dollars basis rate at the time of travel by the spender/traveler. If expenses in foreign currency are paid by credit/charge card the rate used on the credit card is to be used for the conversion. If expenses are paid in local currency, the exchange rate that was applicable on the day of the transaction as shown at should be used. Please organize the expenditures by day. TRAVEL AGENCIES The College does not have an "official" travel agent. If an employee works with a travel agency, they simply need to be sure they are getting the best price. AIR TRAVEL The College will reimburse coach fare tickets unless prior approval from the Senior Vice President of Operations or the Senior Vice President and CFO has been obtained. All efforts should be made to obtain the lowest coach fare available. When attending a conference or meeting, employees should check the group airfare rate negotiated by the sponsor before booking through a travel agent. Often, these group rates are quite a bit lower than fares that can be obtained directly from the airlines or through a local agent. For electronic tickets, please submit the web page receipt or confirmation letter that is mailed to the employee. (This letter lists itinerary and amount charged to credit card). In addition, please attach the seat receipt to the expense report to confirm the flight was taken. The employee may retain frequent flier miles; however, an employee should always travel on the least expensive airline, not the airline with which they have a frequent flier account. If an employee uses frequent flier miles, personal credit vouchers, etc., to pay for business travel, they cannot be reimbursed for it. Saturday night stay: When the savings generated by traveling and staying over a Saturday night exceed the cost of lodging and meals for a pre-or post-business period, the College encourages the employee to make the Saturday night stay. Entertainment and other personal expenses (including health club fees) incurred by the employee during this period, or at any other time will not be covered by the College. TRAIN TRAVEL The College will only reimburse coach fare. 3

4 CAR RENTAL The following should be considered before renting a car: Availability of hotel shuttle services and taxi cabs; Airport transfers (included at some hotels); Proximity of hotel to destination; Number of travelers (car sharing); Length of stay; and No-cost upgrades. Justification for any car rental must be approved in advance on the Travel and Conference Requisition Form. Travelers will not be reimbursed for specialty rental vehicles (e.g., luxury, sports utility, and convertible). Unless a prepaid gas option is used, rental cars should be returned with a full tank of gas to avoid costly refueling charges and surcharges. It is important to inspect any rented vehicle before driving it. Make sure any dents, scratches or other damage to the vehicle are noted on the rental form. Otherwise, the College may have to pay for damages you did not cause. Travelers must comply with all applicable local, state, federal, or international laws and regulations pertaining to the operation of a motor vehicle. Tickets and resulting fines are the responsibility of the employee and will not be reimbursed by Touro. If you rent a vehicle while working on behalf of the College, you should rent the vehicle in the name of the College and your own name. This means that you should sign both your name and "Touro College" on the rental agreement. The College's auto policy will then respond as if the rented vehicle is an "owned" vehicle, so you should consider whether it is necessary to accept liability and collision insurance, unless your department has specifically decided to purchase the collision waiver in the U.S. or Canada OR you are renting outside the U.S and Canada. Never rent a vehicle valued in excess of $30,000. Any employee involved in an automobile accident while using a rental vehicle on College business must contact the Controller s Office as soon as reasonably possible. CAR RENTAL INSURANCE Collision Damage Waiver Insurance (Rental Car): In the U.S. and Canada, travelers should consider purchasing the Collision Damage Waiver (CDW) or Liability Damage Waiver (LDW) insurance offered by car rental agencies because the College's insurance carries a $500 deductible. All basic insurance, including collision damage MUST be purchased on all rentals in foreign countries other than Canada. Personal Accident Insurance (PAI): The College will not reimburse travelers for PAI or other liability insurance offered by domestic rental car agencies, because the College provides coverage. OTHER TRANSPORTATION Public transportation in metropolitan areas should be used whenever possible to realize greater savings 4

5 and convenience (e.g., New York, Boston, Washington, Chicago, etc.) rather than renting a car. If public transport is not available, taxis are generally less expensive for local travel than renting a car and paying for parking. Reasonable expenditures for local ground transportation to and from airports, railroad stations, hotels, meeting places, and business appointments are payable or reimbursable by the College. Parking fees and tolls are reimbursable. Commuting costs are not reimbursable. USE OF PERSONAL VEHICLE If a personal vehicle is used, the traveler is eligible for mileage reimbursement which recognizes the cost of gas, oil, normal wear and tear, and insurance. The College reimburses the traveler s actual mileage at the College s reimbursement rate, which will be $.55 per mile, effective October 1, The College will reimburse transportation costs only to the extent such costs exceed the normal daily commute to the office. Mileage reimbursement may not exceed the cost of available alternate transportation, i.e., the reimbursement for mileage should not exceed the lowest train or airfare available. In cases where the employee elects to drive rather than travel by plane or train, the lower of the available alternatives will be reimbursed to the employee. When you drive your own car on College business, your own insurance policy serves as a "primary" policy for third party liability and physical damage to your vehicle. This means that if a claim arising out of an accident exceeds your policy limits, then the College's policy will cover the accident in excess of your policy. If your vehicle is damaged as a result of an accident, whether it is your fault or not, your comprehensive/collision coverage would respond. You are responsible for any deductible amounts under your policy. If you do not carry any collision insurance, then the entire amount of the damage is your responsibility. Neither the College nor the College's insurance will pay for any physical damage to your vehicle. Any employee involved in an at-fault accident which results in bodily injury to third party while using a personal vehicle for College business travel should contact the Controller s Office as soon as reasonably possible. The reimbursement of parking or tolls in excess of $15 must be supported by receipts. LODGING Lodging costs should be kept to a minimum. The College normally will only reimburse for single room rates at moderately priced hotels. Many hotels offer conference, corporate, or educational rates, which should be utilized if savings result. Hotel costs vary around the country. Hotel rental rates vary substantially by city and time of year. In Manhattan the approved nightly rental rate should be less than $250 without taxes. Outside of New York City the approved rate is $200 without taxes. Note: If attending a conference, the College will generally reimburse the cost of staying at the conference hotel unless the rate is substantially in excess of reasonable hotels in the area. 5

6 When reservations are booked "guaranteed late arrival", travelers are responsible for all hotels "no show" charges unless mitigating circumstances prevail. HOST GIFTS If staying with a friend rather than in a hotel, a "payment in lieu of" actual expenses up to a maximum value of $100 is reimbursable if the gift is less than the expense normally incurred, and the expense bears a reasonable resemblance to the benefit provided. This "payment in lieu of" actual expense is defined as a host gift and travelers may be reimbursed for one host gift per trip subject to the foregoing limitations. The host gift is intended to express the College's gratitude to the host. Cash payment to the host is not permitted. Appropriate host gifts might include a meal at a restaurant or a tangible household item. Gifts must be purchased and presented to the host during the trip. Host gifts are not reimbursed if the expense is incurred after the completion of the trip. MEALS AND INCIDENTALS PER DIEM REIMBURSEMENT Touro College will reimburse a traveler for allowable meal and incidental expenses incurred during College-related travel. The College provides reimbursement for meals (and tips) on a per diem basis. The current per diem rate is $60. Per diem rates presented in this policy represent the maximum per diem reimbursable by the College and are inclusive of incidental expenses.under this method of reimbursement, there will be no reimbursement of meals charged to the lodging receipt. Incidental expenses include fees and tips for persons providing services, such as food servers, hotel housekeeping and luggage handlers. Incidental expenses do not include ground transportation, telephone calls or laundry. These expenses will be reimbursed based on actual costs. Receipts and detailed documentation are not required when being reimbursed for meals and incidentals using the per diem method. The following rules apply: Per Diem Meal Reductions: On the days of travel to or from the destination, per diems should be reduced for the individual's departure and return times, to exclude any meals not incurred during the time of travel using the reduction schedule below. In addition, the College's meal per diem will also be reduced to account for meals furnished at no cost to the traveler. For example, if meal costs are provided in the cost of a conference, those meals should be deducted from the per diem rate. The percentage rates for reductions are: Breakfast 20% Lunch 25% Dinner 55% ENTERTAINMENT Business entertainment expenses include meals, related tips, transportation, lodging, and other entertainment expenditures incurred by College employees, agents, et al. for the benefit of others, must be approved by the Senior Vice President of Operations or the Senior Vice President of Finance in advance. Entertainment expenses that only involve Touro employees will not be reimbursed. 6

7 A description (either a list of names or identification of the hosted group) and the total number in attendance at an entertainment function must be indicated on the reimbursement request along with the business purpose of the entertainment. It is critical that the Travel and Entertainment Expense Form clearly documents the business purpose of the entertainment. The per diem reimbursement must be reduced accordingly as described above. Illustrative example of a meal which is NOT a business meal: Two College employees decide to get together for lunch, and among other things, they discuss business. The cost of lunch is a personal expense even though business was discussed. The expense would be reimbursable only if it was necessary to meet to address specific issues and they were not able to arrange a meeting in the office. Entertainment may be claimed if: it is for the purpose of advancing the College s business interest; it is within the bounds of good taste, moderation, and legal requirements; and the cost is within reasonable limits and does not include lavish, excessive, or inappropriate entertainment. The cost of alcoholic beverages is not reimbursable. Examples of business entertainment include: Receptions for College guests and visitors; Alumni reunions or similar alumni functions; Entertaining donors or prospective donors; and, Welcoming receptions for parents and students. The receipts must specify the name of all participants, their relationship to Touro and the reason for entertaining. PAYMENT METHODS The following are the various methods of payment for official College business, travel and entertainment expenses. The payment types may have restrictions as to their use. Personal Charge Card or Cash: Business, travel and entertainment expenses may be paid with a personal charge card or cash. For reimbursement, please submit these expenses with receipts on the proper form as indicated in the Expense Reimbursement Report section. Travel Advances: Travelers are eligible for advances of $50 per day up to a maximum of $250 per week for reasonable out-of-pocket travel expenses. Travelers may receive advances in the form of an Accounts Payable check to be issued less than one week prior to travel. Recipient of travel advances will be required to sign a Cash Advance Agreement (See Appendix D). Allow at least five working days for check preparation. Travel advances must be accounted for on the Travel and Expense Reimbursement form, as detailed in the Expense Reporting section. Failure to account for travel advances within the required time frame may result in the following outcomes: No future travel advances being granted to the individual; and/or The College will deduct charges from salary. 7

8 A new Travel Advance will not be authorized until all previous advances are closed out. Prepaid Travel Expenses: These are paid directly to outside vendors from the departmental budget and are paid in advance by the College on behalf of the traveler. To prepay expenses, send a completed Accounts Payable Check Request along with a copy of the approved travel request form to Accounts Payable. Include a copy of pertinent conference registration form, hotel bill, or other appropriate documentation DOCUMENTATION Individuals incurring business, travel and entertainment expenses are required to substantiate all payments generally by submitting dated original receipts with the proper form and explanations. Expense Item Air or Rail Hotel Car Rental Meals/Entertainment All Other Examples of Required Documentation (with adequate details) Original passenger coupon or E-ticket receipt Original itemized bill including final settlement Original agreement including final settlement Original credit card or cash register receipt sharing details of the meal for expenditures plus business purpose, discussion topic, and guests denoted regardless of amount Original credit card, cash register receipt, or signed statement by spender/traveler regardless of the dollar amount. If an expense is partially covered by an organization other than the College, duplicate copies of the receipts may be submitted by attaching a copy of the request for reimbursement submitted to the other organization. An individual incurring expenses who loses a required receipt should seek a duplicate or faxed copy from the originator. When an acceptable duplicate cannot be obtained, the employee should submit substantiation in other ways, such as an expense diary, etc. An explanation of why a receipt was not obtained at the time of the transaction and the efforts afterward to obtain the missing documentation would be helpful. The Controller's Office may request further explanation, documentation, and has the final decision on the acceptance/rejection of any such expenses. If the above information is not supplied, the IRS may require that the expenses be added to the traveler's taxable income regardless of amount. SPOUSE/FAMILY ACCOMPANIMENT The College will not reimburse for business, travel or entertainment expenses for spouses or family members who accompany College employees or students on College business except in those unusual circumstances which require their presence. Such exception must be approved in advance by the Senior Vice President of Operations or the Senior Vice President of Finance. Should a spouse or dependent be approved to accompany an employee on College business, reporting of expenses must follow this policy. 8

9 When a spouse or family member(s) for personal reasons accompanies a traveler, the College will only reimburse the traveler for the cost of a single room. TRAVEL INSURANCE Business Travel Insurance: All College employees are covered in case of accidental death or dismemberment while traveling on College business. Workers Compensation Insurance: If you are injured while working on a business trip, you are covered for medical expenses and lost wages by Workers Compensation Insurance. Contact Human Resources as soon as possible to file an accident report, and obtain further instruction. Failure to promptly report an injury may compromise your claim. Injuries sustained while not working, though you may be away from home on business travel, are not covered by Workers Compensation Insurance. If there is a question on this, as respects a specific incident, contact Human Resources for clarification. Flight Insurance: Flight insurance purchased by individuals is not a reimbursable expense. Personal Automobiles: College employees using personal automobiles to travel on official College business must maintain adequate liability insurance for their protection and for the protection of any passengers. Other Personal Property: The College will not be responsible for loss or damage to personal property while an employee is traveling on official College business. 9

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11 APPENDIX B TOURO TRAVEL & EXPENSE REIMBURSEMENT FORM OUT OF TOWN TRAVEL Please complete the following information on the expense report. All sections must be completed in order for the reimbursement to be processed. I. EMPLOYEE INFORMATION 1. Enter your full legal name as it appears on your paycheck. 2. Enter a telephone number where you can be reached during normal business hours. 3. Enter the Date of submission. 4. Enter your mailing address. This address will be the same as your payroll address. 5. Enter your City, State and Zip Code 6. Enter where you traveled to and the purpose of the trip (i.e. conference, recruitment). 7. Enter the business unit and account number to be charged for this trip. You may find this information on the right hand corner of your Purchase Order listed under Internal Code. 8. Enter the purchase order number previously issued for the trip. II. EXPENSES PAID BY EMPLOYEE 9. Enter the complete dates in each box showing the actual days of travel, designating one day per box. (i.e. 12/12/08.) 10. a) Enter the specific destination for each day (if traveling on that day). b) Enter the city your trip originated from for each day (if traveling on that day). 11. Enter in each category, amounts paid by you for each day. The subtotals for each day and each category will be calculated automatically. If you are driving your own car, enter the actual number of miles driven under Actual Mileage. The dollar amount will be calculated automatically. If Touro pre paid any of these expenses, list them under Expenses Paid in Advance by Touro section III. If you enter any amounts under Entertainment or Miscellaneous you must detail these amounts in section IV. III. EXPENSES PAID IN ADVANCE BY TOURO Enter any expense pre paid by Touro along with a brief description of the expense. IV. MISCELLANEOUS AND ENTERTAINMENT EXPLANATIONS The miscellaneous section is for items not listed in any of the above categories. You must provide an appropriate explanation for reimbursement that is in accordance with the Touro College Out of Town Travel and Entertainment Expense Policy. Please add additional pages if necessary. After completing the expense report please sign your name indicating that the above listed items are accurate to the best of your knowledge. Have your immediate supervisor sign and approve your request for payment. 11

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13 APPENDIX C TOURO COLLEGE West 23 rd Street New York, NY Tel (212) CASH ADVANCE FOR TRAVEL EXPENSES AGREEMENT I, received a cash advance of $ on (insert date) for my trip to. The expected travel dates are:. I understand that this cash advance must be settled by completing a Travel Reimbursement Request and submitting appropriate travel receipts within 90 days after the expenses have been incurred (the completion of the trip.) If I do not account for my cash advance within 90 days of the end of the trip, I authorize the Touro College Payroll Department to deduct the full outstanding amount of the cash advance from my next available paycheck(s). EMPLOYEE SIGNATURE: DATE: 13

14 APPENDIX D A. REIMBURSABLE EXPENSES If reasonable and necessary, the following are examples of payable/reimbursable expenses as defined in this Policy: Air and rail travel; Car rental; Change or cancellation penalties imposed by the airlines if due to unavoidable circumstances (supporting documentation must be supplied with the T&E form); Gasoline for rental vehicles; Ground transportation including taxi and metro fares, mileage for personal vehicles, parking fees and tolls; Laundry/dry cleaning during trips longer that five calendar days; Lodging; Meals (per diem rates apply) and entertainment while on official College business; Miscellaneous (room service, luggage storage and valet); Registration and fees for attendance at approved conferences and seminars; Taxes associated with transportation, lodging and meals; Telephone, personal or rented cell phone, faxes and internet access where required for business purposes. Cost of telecommunications is generally limited to $20 a day; Tips associated with lodging, meals and transportation if customary; and Travel to and from an airport calculated and reimbursed at the Touro approved rate. Excessive costs, circuitous routes, excess delays, or luxury accommodations and services unnecessary or unjustified in the performance of College business are not acceptable and will not be reimbursed. Travelers are responsible for excessive costs and any additional expenses incurred for personal preference or convenience. All expenditures are subject to audit and review. 14

15 APPENDIX D B. NON-REIMBURSABLE EXPENSES The following are examples of generally non-reimbursable expenses and should be considered a partial listing: Airline club membership fees; Alcoholic Beverages; Annual membership for charge cards; Baggage insurance; Car wash; Clothing; Commuting costs to/from home and normal place of business; Costs incurred by unreasonable failure to cancel reservations; Dependent care; Entertainment under federal grants and contracts; Excessive tipping; Fees, interest, and/or late charges associated with personal credit cards; Fines or tickets resulting from traffic, parking, or other violations; Golf or tennis court fees, membership in country, tennis, or golf clubs, or any sporting equipment, except when part of a preauthorized group event; Haircuts; In-flight headsets; Life, accident, or flight insurance premiums; Lost, broken, or stolen property; Luggage or briefcases; Movies or games (hotel, theater, or rentals); Newspaper and magazines; Pet care; Expenses that have been or will be paid or reimbursed by an outside source. 15