Summary of significant changes

Transcription

1 Summary of significant changes Although original invoices are preferred, the policy now allows for legible copies of invoices when documenting expenses. (Section II) Clarify IRS terms and implications of complying with Accountable Plan Rules: o Advances/Reimbursements: Deadline is 60 Days from the actual expense for submitting documentation and forms. The IRS requires treatment as taxable income if past this deadline. (See Sections III & V) o DTS corporate credit/purchase card: Deadline is 120 Days from date of statement for submitting documentation of charges posted to DTS Credit Cards. The IRS requires treatment as taxable income if past deadline. (See Sections III & V) Clarify that the IRS meaning of Infrequent is no more than four times a year. Normally, meals are not reimbursable where only DTS employees are attending. Under certain circumstances, these meals are reimbursable when the employee can show that the meal was necessary and that it was impractical to conduct these meetings in a normal work setting and is infrequent. The policy now clarifies that the IRS De Minimis fringe benefit rules require that infrequent means no more than four times a year. (see Section XVI) Clarify process for the one time set up to receive reimbursements as direct deposits. (Section IV) Clarify that drivers who intend to rent vehicles should complete the Information Form for Automobile Coverage for Employees. Employees only need to complete this form once. (see Section XI) Clarify that reimbursement on the mileage rate basis is: o Limited to the most direct route o The maximum allowable reimbursement, including en route expenses, may not exceed the published coach class airfare to and from the destination plus estimated airport parking and rental car costs. (Section XIII) Added the limited exception to the IRS rule that disallows reimbursement of travel expects from home to place of business. (see Section XIII) Clarify that eligible expenses may be limited based on the department s available budget. (Section I)

2 DALLAS THEOLOGICAL SEMINARY Expense Reimbursement Policy RESPONSIBLE OFFICE: Vice President for Business and Finance REVISED: 04/06/2017 TABLE OF CONTENTS Purpose 1 Scope 1 Who Should Know This Policy 1 Related Documents/Forms 2 Procedures General Criteria 2 Reimbursement of Goods and Services 2 Cash Advances 3 Reimbursement Direct Deposit 3 Applying for Expense Reimbursement 3 Forms and Required Information 3 Receipt and Documentation Requirements 4 Approvals 4 Allowable and Unallowable Expenses 5 Miscellaneous Items 7 PURPOSE To provide guidelines for expense reimbursement requests of Dallas Theological Seminary ( DTS ). SCOPE This policy applies to all DTS expenditure and cash disbursement transactions. Except as noted below, the policies provided herein shall apply to all Dallas Theological Seminary organizations, faculty, staff, students and all other organizations and individuals that provide payments for goods and services and intend to travel at Seminary expense. This administrative policy applies to all DTS locations. SPECIAL SCOPE CONSIDERATIONS: Some Seminary policies may be more restrictive as they relate to specific groups or areas. For example, the Vice Presidents may establish specific, supplemental policies for specific academic programs and student events, etc. WHO SHOULD KNOW THIS POLICY President Department heads and budget managers Vice Presidents Other Finance/Accounting Personnel 1 P a g e

3 RELATED DOCUMENTS AND FORMS Purchase Requisition Form Check Request Form Reimbursement Form Travel Expense Report Lost/Missing Receipt Form Business Office Website Includes form: I. General Criteria Disbursements for goods and services to vendors and contractors are limited to expenses that benefit DTS. The total amount available to spend is also limited by the amount included in the budget. To be reimbursable, DTS requires that the travel be performed in the most economical manner consistent with mission requirements; that all expenses are incurred while in a travel status; that the expenses are reasonable, necessary and actual; and that they not exceed the limitations imposed by DTS. Individuals must exercise prudent judgment in performing travel. Reimbursement of non-travel related expenses are allowed under the condition that they are ordinary and necessary in fulfilling the Seminary s mission. Expenses eligible for reimbursement may be limited based on the department s available budget. Unreimbursed expenses may be deductible on the employee s personal tax return. Forms can be found on the DTS CampusNet website or the Business Office Website. Refer to Campus Forms and Information. II. Reimbursement of Goods and Services Employees are encouraged to utilize the services of the Purchasing Office for the purchase of equipment and furniture over $500. A Purchase Order will be initiated after receipt of an approved Purchase Requisition Form. Contact Lisa Reeves, Purchasing Coordinator, at or lreeves@dts.edu for more information. 2 P a g e If a purchase order is not used, then payment requests to vendors and contractors for goods and services are to be documented with original invoice(s) or legible copies and required processing information i.e. general ledger account number to be charged and proper approvals. In order to indicate proof of delivery, bills of lading or packing slips should be attached to each invoice which must be approved by the Department budget manager or designee. All expenses to be reimbursed directly to DTS staff, faculty and students are to be documented on the Seminary s Cash Advance/Reimbursement Form or Travel Expense Report. Invoices, Check Request Forms, Reimbursement Forms and Travel Expense Reports may be forwarded to Accounts Payable for payment by campus mail or scanned copies ed to accountspayable@dts.edu. Approvals may be signatures on the invoice/invoice copy or digital signatures on PDF documents. The initiator of the request must have budget manager and/or VP approval (see approval hierarchy under Section: VII. Approvals). Documents should be submitted to Accounts Payable with proper backup and approvals to insure timely payment. The deadline for

4 inclusion in the current week s payment process is Wednesday at 10:00 a.m. Holidays may result in temporary changes to the deadline. III. Cash Advances If circumstances require that an employee receive a cash advance for travel, the following policy will apply: Advances cannot be drawn in excess of 30 days prior to travel, unless special circumstances exist. Each cash advance should be treated separately and settled before another is requested. Cash advances up to $200 are to be obtained from the Business Office Cashier after completion of a Cash Advance Request Form, which also requires approval by their budget manager. Advances in excess of $200 are to be issued by check or direct deposit through Accounts Payable. All advances are to be cleared within 30 days of completing a business trip. Any cash advance that is not substantiated on a Reimbursement Form or Travel Expense Report within 60 days of the date issued will be added to the employee s income and taxed at the appropriate withholding tax rate. Refer: IRS Publication 463, section 5 Record Keeping. IV. Reimbursement Direct Deposit Employees should do a one-time setup to provide your bank account information on the DTS s secured web page. This will allow reimbursement of expenses to be sent automatically to your checking account. It reduces the risk of lost checks, lowers DTS processing costs, and is the quickest way to receive your funds. You can change your bank account destination as often as you need. To sign up and register your banking information go to CampusNet Forms or the following link: 3 P a g e APPLYING FOR EXPENSE REIMBURSEMENT V. Forms and required information Reimbursement for travel expenses must be generally submitted on a DTS Reimbursement Form or Travel Expense Report. The form must be filed immediately upon return showing the dates of the trip, destination, purpose, and attach receipts and other documentation to substantiate items listed. The voucher must contain the signature of the traveler and the traveler s supervisor. The DTS Reimbursement Form or Travel Expense Report is to be submitted to the Business Office within 10 days from the return date of the trip. If an advance was issued, any unspent cash must be returned to the Business Office. Send a check for the unused amount with the completed DTS Reimbursement Form. Scanned copies of properly completed and approved expense reports are acceptable. Approvals may be signatures on the report/report copy or digital signatures on PDF documents. Reimbursements submitted 60-days or more after the expenses were paid or incurred may NOT be reimbursed by the Seminary. The 60-day requirement is what the IRS considers a reasonable period of time to adequately account to your employer under the Accountable Plan. Reimbursements paid after the 60-day period can result in it being treated as taxable income included on the employee s W-2. Note: This policy relates to reimbursements made directly to the employee. Procedures for payments made via the DTS Purchasing Card are covered under a separate policy Purchasing

5 Card Guidelines. For charges made to a DTS corporate/purchase credit card the deadline for submitting documentation is 120 days. Failure to provide adequate documentation within 120 days of the credit card statement date will result in the amount being added to the employee s income and taxed at the appropriate withholding tax rate. Refer: IRS Publication 463, Section 5 Record Keeping. Deadlines will be set earlier for June statements due to the fiscal year-end close. VI. Original receipts or legible copies are required for all expenses over $25. Internal Revenue Service (IRS) Code 953 Sec. 274 requires that all expenses must be substantiated as to: Amount Time and Place Name(s) of Person(s) Business Purpose, e.g., donor cultivation, faculty development, etc. For entertainment and gift expenses, the business relationship to DTS of the person being entertained or receiving any gift must be substantiated. Receipts should be detailed vendor receipts that would indicate the item(s) purchased. It is recommended that you use the restaurant receipts that include the detailed meal receipt (not just the top copy listing the total). IRS Publication 17 indicates adequate evidence exists when restaurant receipts prove the following: The name and location of the restaurant The number of people served The date and amount of the expense Related to Adequate Records, the IRS requires that: All lodging expense, regardless of the amount, must be documented with a receipt. All other expenses must be adequately explained as to amount, time, place, and explanation of business purpose Any expenses (except for lodging) under $25.00 need not have a receipt, but per IRS regulations must be explained in detail on your expense report with at least the following information: Amounts, Time, Place, Name(s) of Person(s), and Business Purpose. The Lost Missing Receipt Form can be used for this purpose. For airline travel involving electronic tickets, proof of purchase by either fax, , or documentation from the agent or carrier s website is required. For purchases made with personal credit cards over the phone or online, the vendor should provide fax, , or website confirmation of the purchase. If that is not possible, indicate no receipt available on the expense report. Complete the Lost Missing Receipt Form. Submit foreign country reimbursement of expenses in U.S. dollars using the exchange rate in effect during the dates of travel. VII. Approvals Employees must obtain approvals prior to submitting payment requests to the Business Office. Requests received without proper approvals will be sent back to the initiator. All expenditures require two signatures, one of which must be the budget manager responsible for the area where the expense will be charged. Employees cannot approve a payment request payable to themselves. The immediate supervisor s approval must be 4 P a g e

6 obtained. These approvals may be on copies submitted to Accounts Payable or they may also be digital signatures on PDF documents. $1,000 10,000 Both the budget manager and the responsible vice president over the area must sign. Over $10,000 a. A corporate officer must sign the request in addition to the approvals listed above. This signature must be an original signature. b. Currently the officers are Secretary: Robert Riggs, Treasurer: Dale Larson, and/or President: Mark Bailey. Two corporate officers must manually sign the check. ALLOWABLE/UNALLOWABLE EXPENSES VIII.Travel These travel procedures are intended to promote the safety and comfort of the traveler, while ensuring that DTS receives maximum value for the money spent. When the most efficient means of transportation is air travel, reimbursement will be limited to coach fare unless limited seating availability or other considerations require seating other than coach. An employee may upgrade his or her travel class at any time by personally paying the incremental cost. The area s vice president must approve exceptions. IX. Prepayment of Travel When payments are required in advance of the travel date, the Reimbursement Form or Check Request Form should include all pertinent documentation, a list of travelers, and business purpose. DTS can remit directly to an organization or reimburse the employee. X. Transportation to and from Hotels and Terminals Whenever practical, the most economical mode of transportation should be used to and from hotels, terminals (air and rail), and appointments. These expenses (including gratuities) are reimbursable. Many hotels provide complimentary shuttle service to and from airports. The traveler should inquire about this service when making hotel reservations. XI. Automobile Rentals Automobile rentals should be limited to situations where other means of transportation are not available, practical, economical, or emergencies. As a rule, the most economical vehicle should be used. 5 P a g e All drivers who intend to rent vehicles should complete the Information Form for Automobile Coverage for Employees. Employees only need to complete this form once. The Seminary files this form with its auto insurance carrier. The form can be found on CampusNet or by contacting Dee Littlejohn in Campus Operations ( ). Within the US, a traveler who rents a car, light truck or passenger van, should decline the Collision Damage Waiver (CDW) or Loss/Damage Waiver (LDW) insurance offered by the rental company. If renting a large truck and/or any vehicle requiring a commercial or chauffeur license to operate, or if the rented vehicle's value is over $35,000, the traveler should purchase CDW or LDW. However, when renting vehicles outside the US, a traveler should accept the insurance

7 offered by the rental company. A DTS auto ID card that explains our auto policy coverage is available if needed. Contact Dee Littlejohn in Campus Operations ( ). If an accident occurs, please exchange insurance information and contact Dee Littlejohn immediately at during business hours. If other than business hours, contact Dee Littlejohn at XII. XIII. Seminary Owned Vehicles Use of DTS-owned vehicles is to be coordinated with the Office of Facilities Operations and Plant. A schedule log of vehicle usage must be maintained including person using vehicle, date, business purpose, and mileage used. Personal use of DTS-owned vehicles is not allowed since this would create taxable income to the user. Personal Automobile Travel Reimbursement for use of personal automobiles by employees traveling on DTS business will be at the current DTS-approved mileage rate and by the most direct route. Typically, this is the IRS approved mileage rate. Contact the Business Office to obtain the current rate. The traveler is to keep a record of all mileage driven to justify mileage claimed. A screen print from a directions website (e.g. Google Maps) can be used to support the miles driven. The maximum allowable reimbursement, including en route expenses, may not exceed the published coach class airfare to and from the destination plus estimated airport parking and rental car costs. The traveler is required to have insurance for a personal vehicle used in conjunction with DTS business. Uninsured vehicles are not to be used for Seminary business. Gas, oil, insurance premiums, repairs, or other costs are included in the mileage rate and will not be reimbursed. Fines for automobile violations or personal misconduct will not be reimbursed. In most circumstances, daily transportation expenses incurred traveling from home to an employee s place of employment and back home are considered personal travel, and are not reimbursable. However, there is an exception for DTS employees who work primarily from home and who fit the following two criteria 1) the employee uses his/her home exclusively and regularly for administrative or management activities of DTS and 2) has no other fixed location where the employee conducts substantial administrative or management activities for DTS. If an employee meets those two criteria, then mileage from home to/from a DTS campus or other work site, such as an extension site location, to conduct DTS business is reimbursable travel. XIV. Conference Registration Fees Payment of conference or meeting registration fees may be paid directly to the conference organizer by submitting a Check Request Form including the conference registration form and budget manager s approval to Accounts Payable. You may also pay online using a purchasing card or personal credit card to be reimbursed. XV. Lodging Hotel reservations may be made by contacting hotels directly and arranging for the best rate available. The traveler can stay at the hotel where a meeting, convention, or conference is being held, or at a nearby, moderately priced hotel. The actual hotel bill is required for reimbursement. Hotels should be guaranteed for late arrival with the traveler's personal credit card or a DTS 6 P a g e

8 purchasing card. Employees of the Seminary may claim exemption from the State hotel occupancy tax when traveling on official business within the State of Texas. Employees must claim this exemption by providing the Texas Hotel Occupancy Tax Exemption Certificate to the lodging establishment upon registration. To obtain the hotel occupancy tax exemption form click on the following link: The lodging establishment may require business identification before accepting the certificate. If a lodging establishment does not accept the certificate, please contact the Business Office. XVI. Meals Reasonable expenses incurred for meals while attending to DTS business will be reimbursed. To be reimbursed, these meals must be essential to DTS s mission and must be a business necessity. Itemized receipts, topic of discussion, and identities of participants, e.g., names and titles, must be contained in the documentation supporting the DTS Reimbursement Form. The reimbursement form is to be submitted by the senior staff member in attendance and approved by their supervisor. See Item VI above for receipt requirements. Reimbursements are not permitted for meals provided at regularly scheduled meetings, or as a perquisite ( perk ). Reimbursements for meal expenses involving only DTS employees will be allowed, only if it is shown to be necessary, that it was impractical to conduct these meetings in a normal work setting, and infrequent. They must also involve substantive, bona fide business discussions. IRS De Minimis Fringe Benefit rules require that these are infrequent, i.e., no more than 4 times per year. Reasonable expenses for staff appreciation lunches will be allowed. Reimbursements are NOT allowed for birthday, showers, and similar celebrations of a personal nature. XVII. XVIII. XIX. Gratuities The reasonable costs of gratuities to porters, bellhops, and other service personnel will be reimbursed. Dry Cleaning or Laundry Service When travel extends longer than a week, DTS will reimburse a traveler for the service of dry cleaning and/or laundry. Exceptions will be allowed for international travel where the schedule requires minimal free time. Entertainment Reimbursement will not be made for entertainment expenses unrelated to DTS business, such as, but not limited to, in-room movies and theater. MISCELLANEOUS ITEMS XX. Travel Bonus Awards DTS employees who earn discounts or bonuses with airlines, hotels, car rental companies, and 7 P a g e

9 etc. for official DTS travel are not required to account for such credit, or to use such for only official Seminary travel. However, options that would entail a higher expense in order to attain personal travel awards (e.g., frequent flyer miles) may not be used. Any cost the employee incurs to obtain the awards, i.e., program memberships, will not be reimbursed by DTS. XXI. XXII. Conferences, Conventions, and Seminar Travel Discount Often the organizers of conferences, conventions, and seminars will announce discounted fares for transportation and lodging that may be obtained by arranging travel through their organizations. It is suggested that the traveler first compare the conference rate information to their normal travel arrangement process to insure that the least expensive arrangements are being provided. Travel with a Companion/Spouse DTS will not reimburse personal, spouse, companion travel, and other travel-related expenses. The employee is responsible for allocating only his or her portion of expenses on the travel expense report and for identifying them on the hotel, restaurant, transportation, and other receipts. DTS will pay only the single-rate at hotels. An exception to this policy is possible by completing the Request for Spouse Travel form prior to travel. This form requires the approval of the Vice President over the employee as well as the President. Reimbursement for spousal travel to a non-seminary employee is nontaxable for federal income tax purposes only if the spousal travel is for a bona fide DTS business purpose. The reimbursement form must include documentation of the bona fide business purpose for the spouse s travel in order to qualify for exclusion as a working condition fringe benefits under Treas. Reg (s) and (t). Spousal travel may be taxable if the spouse travel has not documented the bona fide DTS business reason. The Request for Spouse Travel form is located on CampusNet. XXIII. XXIV. Authorized Travel by Non-DTS Employees When travel is approved for an individual who is not an employee of DTS, reimbursement will be provided in accordance with DTS s general travel policies. Cell Phone Reimbursement Cell phone monthly charges can be reimbursed under certain circumstances. Completion and proper approval of the Cell Phone Request & Justification of Business Usage form is required. available on Campus.Net. The amount of maximum reimbursement monthly is $70 for Tier I (Voice Only) and $150 for Tier II (Voice and Data). The amount reimbursed will be the actual cost of employee s specific cell phone number, excluding equipment charges, not to exceed the Tier maximum. Employees are responsible to notify the Business Office if their cell phone monthly bill becomes less than the amount reimbursed and any excess must be returned. The Business Office requests a current cell phone bill from each employee on a yearly basis. XXV. Summary of expenses that may not be included Child care expenditures, in-room movies, and pet-related expenditures. Gasoline cost when the mileage rate reimbursement is used. Gasoline cost is reimbursed ONLY when filling up rental cars or DTS-owned vehicles as required. Cost of mileage beyond the amount that would be required to travel by coach-class 8 P a g e

10 air. Costs for meals, travel, or lodging for spouses or other personal guests without proper completion and approval of the Request for Spouse Travel Form. See Section XXII. Travel between an employee s place of employment and home is considered personal travel, unless you meet the criteria listed above as an employee who works exclusively from home. See Section XIII. Alcoholic beverages are not reimbursable expenses. 9 P a g e

11 DALLAS THEOLOGICAL SEMINARY Purchasing Card Policy RESPONSIBLE OFFICE: Vice President for Business and Finance REVISED: 04/06/2017 TABLE OF CONTENTS Purpose 1 Scope 1 Who Should Know This Policy 1 Related Documents/Forms 1 Procedures Use of Purchasing Cards 2 To Obtain Purchasing Cards 2 Payment of Cards and Deadlines 2 Documentation Required 2 Other Purchasing Card Issues 3 PURPOSE To provide guidelines for use of Dallas Theological Seminary ( DTS ) Purchasing Cards. SCOPE This policy applies to all DTS Purchasing Card transactions. The policies provided herein shall apply to all Dallas Theological Seminary organizations, faculty, and staff that use the DTS Purchasing Card for Seminary expenditures and travel. This administrative policy applies to all DTS locations. SPECIAL SCOPE CONSIDERATIONS Some Seminary policies may be more restrictive as they relate to specific groups or areas. For example, the Vice Presidents may establish specific, supplemental policies for specific academic programs and student events, etc. WHO SHOULD KNOW THIS POLICY All faculty and staff RELATED DOCUMENTS AND FORMS Purchasing Card Request Form Purchasing Card Reconciliation Form Lost/Missing Receipt Form

12 USE OF PURCHASING CARDS The Purchasing Card is to be used for employee travel and for incidental departmental purchases where it is not practical to use the Purchase Requisition/Purchase Order processes. An example would be on-line purchases that require payment by credit card. Typically, you would only use the purchasing card to make on-line purchases for $500 or less. Use of the Purchase Requisition/Purchase Order processes provides more timely recording of transactions, better internal control and is the preferred method of purchasing and paying for items. For assistance contact the Purchasing Coordinator, Lisa Reeves, at ext or TO OBTAIN PURCHASING CARDS 1. To request a card, the employee should fill out the Purchasing Card Request Form, located on CampusNet under the Purchasing section. The form must be signed by the appropriate Vice President who will also indicate the spending or credit card limit. The Program Administrator can provide guidance as to credit limits. 2. The credit/purchasing card provider will initially send the new card to the Program Administrator who will then contact the employee to pick up the card and sign an agreement which specifies card use limitations and their responsibilities. 3. The Purchasing Coordinator, Lisa Reeves at ext. 5025, (and Controller in her absence, Patricia Mayabb, ext. 5022) is the Program Administrator. The Program Administrator maintains a listing of cardholders, their credit limits, and the last four digits of the respective credit card number. Contact Lisa Reeves, if you need to request a change in your credit limit. PAYMENT OF CARDS AND DEADLINES 1. The Seminary pays the consolidated credit card statement each month. Individual credit card statements are mailed to each cardholder. 2. The cardholder is responsible for reviewing the monthly statement, making sure charges are valid, and then to complete the Purchasing Card Reconciliation Form. This form is used to reconcile your receipts to the transactions listed on the statement. The form is available on CampusNet under Staff Forms and Information: Purchasing. 3. After obtaining your supervisor s approval on the Purchasing Card Reconciliation Form, send this Form, Visa card statement, and the original receipts to the Accounts Payable Coordinator. These are due within 10 days after receipt of the Visa statement. 4. Failure to provide adequate documentation within 120 days of the credit card statement date will result in the amount being added to the employee s income and taxed at the appropriate withholding tax rate. Refer: IRS Publication 463, Section 5 Record Keeping. The deadline will be set earlier for June statements due to the fiscal year-end close.

13 DOCUMENTATION REQUIRED 1. The Seminary pays credit card charges for approved seminary business under accountable plan rules described in IRS Publication 463. The IRS requires that specific supporting documentation be provided for all expenditures or the Seminary must treat the payment (if it is made) as taxable compensation to the individual. 2. Internal Revenue Service (IRS) Code 953 Sec. 274 requires that all expenses must be substantiated as to: o A detailed receipt for each purchase or charge. A detailed receipt must show: a) The date(s), the business name (place), b) What was purchased (service or goods), c) Sales tax (if applicable and collected), d) Total amount paid. e) If a receipt is lost or missing for $75 or less, this detail information should be provided in writing on the Lost Missing Receipt Form on CampusNet Purchasing. If the lost or missing receipt exceeds $75, the employee should contact the vendor or company for a copy. o The business purpose must be indicated on the receipt or statement e.g. teaching, donor cultivation, student recruitment, etc. o For entertainment and meeting/meals expenses, the business relationship to the Seminary of the person being entertained must be substantiated i.e. name, title, business. For meals involving DTS employees only are limited to less than four a year and other limitations apply, see Section XVI of Expense Reimbursement Policy. o All lodging expenses, regardless of the amount, must be documented with a receipt. 3. For additional information and policies, please see Expense Reimbursement Policy on CampusNet under Staff Forms and Information: Business Office. These policies apply to purchasing card transactions as well as requests for reimbursement of expenses. OTHER PURCHASING CARD ISSUES 1. The Purchasing Card is not to be used for personal purchases or payments. 2. The Purchasing Card is issued to a specific person for use by that person and their department. However, the card should not be given to someone outside of the department for their use even if the purchase is being made for the department that owns the card. 3. Original receipts or legible copies are required. For purchase/credit card purchases over the phone or on-line, ask vendor to fax or confirmation of purchase. Otherwise, print purchase confirmation from screen that would include detailed receipt information. If that is not possible, indicate no receipt available on the Reconciliation Form and complete Lost Missing Receipt Form. 4. Cardholder must obtain prior approval from appropriate Vice President for purchases of $1,000 or more.

14 5. If a card is lost or stolen or you suspect fraud, contact the Program Administrator. If this occurs after business hours, call (if outside the U.S ). The cardholder will need their employee ID number.