306 Travel Expenses

CENTRE COLLEGE REIMBURSEMENT POLICY

Overview
The purpose of these guidelines is to establish standards and procedures in order to reimburse reasonable travel and entertainment costs while complying with Federal regulations regarding reimbursement for business expenses. The guidelines are designed to ensure consistency and fair treatment for members of the Centre community whose travel will be reimbursed or paid for by the College and for visitors (i.e., speakers, candidates) whose travel is at the College’s expense. This policy applies to all travel and entertainment regardless of the funding source.

Employees at Centre College have a fiduciary responsibility to use tuition, gifts to the College, and other sources of revenue, wisely and carefully in furtherance of Centre’s educational mission. Moreover, we are subject to the scrutiny of outside agencies and organizations such as auditors, the Internal Revenue Service (IRS), and other Federal and state government agencies, and private foundations from which we receive funds. Travel and entertainment expenditures must be well documented, “ordinary, necessary and reasonable,” and have a legitimate business purpose. College approved travelers who incur such expenses should neither lose nor gain personal benefits as a result.   

Whenever possible, employees should use their College-issued procurement card or work with departmental Administrative Assistants to utilize their College-issued procurement card for all travel related or other approved expenses.

This policy is not intended to cover every situation. Questions about expenses and requests for exceptions should be brought to an appropriate member of the President’s staff.  Written documentation for exceptions (Business Exceptions Form), including signed approval by a member of the president’s staff, must be provided to the Finance Office within two weeks of return from travel. In addition, some grants and gifts are subject to rules that are more stringent than these guidelines and must be adhered to and some departments may have more restrictive policies and procedures due to budget constraints and/or other reasons.

Examples of expenses that are NOT reimbursable:  *KY sales tax, flight insurance, in-room movies, mini-bar purchases, personal phone calls, unnecessary valet service, traveler’s checks, newspapers, etc.

It is not possible to anticipate all situations that may occur while traveling for or entertaining on behalf of Centre. As a result, these policies are meant to serve as guidelines to follow when incurring work related expenses. It is expected that employees will interpret these policies to keep expenses to a minimum and ensure that such expenses are directly related to an employee’s job responsibilities and the mission of the College. The primary responsibility for adherence to these guidelines rests with the individual and their respective department head/supervisor.
 
Note:  Individuals choosing to use their own personal credit card should be aware that reimbursement will take place after the trip is completed.

Transportation

Air Travel  
 
When employees and guests travel for College business, travel should be by the least expensive means available, which means air travel in coach class.  Requests to fly other than coach class may be granted by an appropriate member of the Senior Staff under the following exceptions: 1) medical necessity, 2) extreme emergency or 3) international travel.  For these exceptions, an upgrade to economy plus or similar status is allowed with prior approval.   
 
Rental Car Use  
 
Employees should rent a car only when it is required for daily use at the business destination, if their trip exceeds 125 miles (one way) and/or if there is no other reasonable means of transportation.  Enterprise Rent-A-Car is Centre College’s preferred vendor.  Centre’s insurance policy will cover rental vehicles, so the rental agency’s insurance does not need to be purchased.

Personal Car Use  
 
When an employee’s business travel necessitates the use of the traveler’s personal vehicle, the traveler will be reimbursed at the Centre College approved mileage rate as communicated by the Finance Office.  Mileage reimbursement should never exceed the cost of alternative transportation.
 
It is important for employees to be aware that the vehicle owner’s insurance policy will always provide the primary liability coverage and the College will not provide reimbursement for any deductibles.  All incidents should be reported to the Assistant Controller for review by the College’s commercial automobile liability insurance carrier to determine whether there is secondary liability coverage available to respond relative to any amounts exceeding the employee’s primary liability coverage.
 
Employees who use their personal vehicle for business-related travel and who travel less than 125 miles (one way), should use Google Maps to substantiate any mileage expense claimed.   
 
When trips exceed 125 miles (one way), travelers must use a rental vehicle.  In situations where inclement weather is expected and an all-wheel drive (AWD) vehicle is desired, a personal vehicle may be used if an AWD rental is not available. If an employee prefers to use their own transportation, they will only be reimbursed up to the equivalent amount of a rental vehicle.

Lodging

The College will reimburse employees the actual cost of moderately priced accommodations.
 
Sales tax exemption certificates are available in the Finance Office and should be presented at the hotel when checking in. Please note that the Centre College sales tax exemption number is located in the lower left portion of the Centre College procurement card, which may be honored by the vendor to eliminate the sales tax. Please contact the Finance Office for further information.
 
Lodging with friends or relatives: When it is convenient for the employee to stay with friends or relatives, the reasonable cost of a gift or meal is reimbursable. A receipt for the gift or meal must be included in the traveler’s expense report. For single overnight stays, the maximum amount that can be expensed is $50; for multiple nights, the maximum is $150, regardless of the number of overnight stays. Only one gift or meal per trip to a host is permitted and cash payments for lodging, if given, will not be reimbursed. In situations where the stay exceeds five consecutive nights, exceptions to the maximum can be approved by an appropriate member of the President’s staff and, if necessary, after consultation with the Vice President, Chief Financial Officer and Treasurer.  

Meals and Entertainment

Meals and entertainment expenses are allowable expenditures if they are reasonable and necessary expenses directly related to the business or functions of the College and consistent with Centre’s not-for-profit status. Departments may choose to be more restrictive than this policy due to budget constraints and/or other reasons; however, the maximum amounts set forth in this policy may not be exceeded unless extraordinary circumstances dictate otherwise.  It is expected that detailed receipts are provided for all meals.   
 
*While it is not encouraged, a limited amount (1-2 drinks) of alcohol in connection with a traveler’s meal or related work function is reimbursable. Please note, however, that reimbursement for alcohol purchases is prohibited under government (Federal and state) grants.  Discretion of departments may need to be submitted with a Business Exceptions Form.   

Meals While Traveling - Domestic  
 
Employees have the option of choosing one of two meal management options while traveling domestically: (a) per diem allowance or (b) actual expense reimbursement. Meals included in registration fees must be deducted from meal reimbursement requests.  Reimbursement for meals requires the traveler to be in a travel status for the entirety of the time frame established below.

a. Per Diem Allowance

When detailed receipts are not provided the General Services Administration (GSA) per diem rates can be used only for the employee traveling.  Please refer to the GSA website to find rates based on your time of travel and geographic area.  

b. Actual Expenses

The maximum daily meal allowance for domestic travel is $85. All expenses must be itemized and included in the employee’s Travel Expense Report. When requesting meal reimbursement for additional people, names must be included on the itemized receipt.  Standard practice allows for tipping ranges from 15% to 22% of the bill.  

Meals While Traveling - Foreign  

Due to fluctuation in exchange rates, foreign travel reimbursement will be made based on (a) the standard per diem rate of $85 or (b) actual receipted expenses to a daily maximum of $100.  Standard practice allows for tipping ranges from 15% to 22% of the bill.  

Non-Travel Business Related Meals

Individuals conducting fund raising are limited to a maximum of $100.00 per day for each person entertained. Entertainment expenses greater than $100.00 per day/per person must be approved by the Vice President for Finance or the President (Business Exceptions Form).
 
Personal entertainment expense (other than meals) is not normally reimbursable. If an employee is entertaining College guests for business purposes, names of those being entertained should be provided along with the purpose of the entertainment. Failure to provide that information may result in the IRS treating the reimbursement as taxable income to the employee.

 Other Expenses  

a. Companions:  Expenses for a companion are not reimbursable unless the companion’s attendance is necessary for business purposes.

b. Miscellaneous:  Any necessary expense over $10, not previously described, must be receipted and described.

c. Non-reimbursable Expenses:  The following will not be reimbursed by the College:  

•  Fines for parking or moving violations;

•  KENTUCKY SALES TAX  (*beginning 7/1/2018, HB 487 does take into account various fees that are now subject to Kentucky sales tax)
•  Movies or other personal entertainment;

•  Laundry services (for stays of four consecutive nights or less); 
•  Lost or stolen personal property (including cash); 

•  Costs incurred at home, such as childcare; pet-sitting; etc. 

•  Life, flight or baggage insurance (except as noted previously);  

Travel Advances

Employees who travel regularly as part of their work responsibilities should use the Centre College PNC Visa procurement card to cover expenses associated with their business trip. For trips involving students who need a cash advance, requests will need to be processed through the Finance Office with an approved Check Request Form.  In these instances, the cash advance will be made by direct deposit to the employee’s bank account. Employees cannot request advances through the cashier’s window.  

All receipts must be retained to be included with final travel expense report.  Employees may be held responsible for any discrepancy in amount reported and amount of funds advanced.

Reporting Requirements

The College must implement and adhere to regulations issued by the IRS and other governmental agencies. All travel expense reports must include the following:  

• Information to establish the business purpose of the travel, entertainment, or other expenditure; 

• The amount, date, and place for each expenditure;

• Substantiation of the expenditure with original detailed receipts (except for per diem meal expenses); and

• If necessary, the return of any unused cash advances (due within 30 days of completing the trip). 

Adopted 12/2018