Reimbursement of Business Expenses

9/18/91 Policy # 2.30.020

I. POLICY

The basic policy of the University requires that office supplies, materials and equipment be obtained through central purchasing by Purchase Orders and established supply contracts. For small items, petty cash or Small Dollar Value Purchase Orders should be used to provide for the requisite control over University funds. In the event that these methods are not practical, then personal expenditures directly benefiting the University can be reimbursed. Such reimbursements, however, are to be considered an exception to normal purchasing procedures.

A. Reimbursable expenses are costs incurred by individuals for University purposes which should be paid from University Funds.

1. Expenses which may be incurred by individuals include minor retail purchases and certain business-related expenses.

2. This reimbursement policy shall not apply to expenditures for salaries, wages, fees for services, most purchases over $50.00, or interdepartmental services.

B. Both the person who incurs expenses and the person who approves reimbursement of expenses are responsible for achieving maximum economy in the expenditure of funds.

C. The following are allowable expenses:

1. Retail purchases of supplies, books and other low-cost items less than $50.00

2. Expenses incurred in connection with attending or arranging professional meetings, conferences and seminars. (These expenses might include costs of registration, travel, food and refreshments, rental of facilities, cost of presentations, printing, audiovisual equipment, and published proceedings.)

3. Travel expenses authorized within the policies and limitations established by the University and by specific grants, contracts agency regulations. (Travel expense policies are covered in another section.)

D. The following are unallowable expenses:

1. Unless specifically approved by the appropriate Vice Chancellor for Business and Financial Affairs, costs incurred for amusement; social activities or entertainment; social dues, club memberships or dues relating to various credit card companies, (e.g. American Express, Diners Club); airlines, (e.g. Red Carpet Club, Ambassador Club); etc.

2. Cost of parking permits or traffic citations.

3. Personal services or purchases such as newspapers, magazines, etc.

4. Luncheons and dinners involving only University employees unless for necessary business which, as a matter of convenience, requires attention at mealtime. In such case, identification of the exact purpose of expenditure and the parties involved must be made on expense documents.

5. Expenses being charged as a direct cost of a grant or contract which are unallowable by the terms of the grant or contract.

6. Expenses incurred for employees' spouses.

II. GENERAL PROCEDURES

A. A payment request must be submitted for reimbursement.

1. Any reimbursement request must be signed by the person who incurred the expenses.

2. The purpose of expenses must be fully disclosed and must have a direct relationship to University business or performance of a grant or contract.

3. Expenses must be documented with original receipts and the payment request approved by the department head and budgetary head or a person delegated to sign for them, or, when required, by the Vice Chancellor before payment or reimbursement will be authorized.

B. A department or budgetary head cannot approve reimbursement to himself/herself, nor can a person approve expenditures for the individual to whom they report within an organization. Such reimbursements must be approved by the next higher authority.

C. Any questions regarding this subject should be directed to the Controller's Office.