Policy Statement. It is the policy of Texas Christian University to reimburse faculty and staff for properly authorized, necessary and reasonable expenses incurred in the conduct of University business or authorized in a budgeted grant or contract. The intent of this policy is to ensurethe reimbursement is fair and equitable to both the individual and the University.
Faculty or staff traveling on business are responsible for complying with the University’s reimbursement policy and should exercise the same care in incurring expenses as they would in personal travel. This policy applies to all expenses fully or partially reimbursed by the University regardless of the source of funds. When expenditures are to be charged to a sponsored project, the terms of the applicable award will take precedence if they are more restrictive than University policy.
While these guidelines are intended to be comprehensive, it is impossible to anticipate every situation that may be encountered. Thus, the individual is expected to apply these guidelines on a conservative basis, consistent with normal living standards, and where the policy is silent, to exercise good business judgment.
All expenses incurred in the conduct of University business will be reported on a reimbursement form. This form will be filed in the Financial Services Office, with all supporting documentation and receipts, within 30 days of the incurred expense. The reimbursement form must be personally signed by the individual incurring the expense. Reimbursement forms, like all financial documents and records, are subject to review by the Financial Services Office.
Air Travel. If a faculty or staff member elects to travel by commercial airline, reimbursement will be no greater than the most economical unrestricted coach fare available from a major carrier. When the schedule permits, the traveler should explore the availability of discount air fares, measuring potential savings against the cost of additional meals and lodging and the risk of possible forfeiture in the event the trip is unexpectedly cancelled or delayed. The University does not reimburse for meal expenses incurred by the traveler between the traveler’s home and airports in the DFW metroplex.
Airport Parking. Airport parking will be reimbursed. The traveler should exercise judgment by weighing cost against other factors when considering the duration, type and location of alternate types of parking. Mileage reimbursement for use of a personal vehicle for transportation will be allowed from/to the individual’s home to/from the airportfor travel on weekends. For travel during the week, mileage reimbursement will be allowed from/to the individual’s TCU worksite to/from the airport.
Approval of Reimbursement Form. The budget stamp of the department, grant, or contract being charged, along with the signature of the budget manager approving the expenditure, is required on all reimbursement forms. Faculty or staff may not authorize travel or approve expense reimbursements for themselves or for persons to whom they report. Budget managers must review and, if they approve the stated expenditures, personally sign the reimbursement form. Reimbursement forms submitted by executive officers of the University other than the chief financial officermust be approved by eitherthe Chancellor or the chief financial officer. Reimbursement requests submitted by the chief financial officer must be approved by the Chancellor or Provost.While not requiring an additional approval signature, reimbursement requests submitted by the Chancellor may be reviewed by the chief financial officer or controller and will be routinely reviewed as a part ofthe annual year-end audit of the University’s accounts.
Automobile Travel.
A. RENTAL - A faculty or staff member may rent an automobile if a public carrier is not available, if rental is more economical, or if the rental will materially increase the efficient use of the traveler’s time. The use of a rental car must be for University business and not for the convenience of the individual. A rental contract or detailed receipt must be attached to the reimbursement form. The cost of rental should be limited to that of a compact or medium-sized car.
The University’s fleet liability carrier offers physical damage coverage on rental cars used for University business and rented in TCU’s name. An explanation of insurance coverage options is available on the Risk Management Web site at www.saf.tcu.edu.
B. PERSONAL - Reimbursement for the expense of using a personal vehicle for University travel will be limited to the authorized mileage rate in effect on the date of travel. Mileage reimbursement for use of a personal vehicle will be allowed from/to the individual’s home to/from the business travel destination for travel on weekends. For travel during the week, mileage reimbursement will be allowed from/to the individual’s TCU worksite to/from the business travel destination.
The vehicle owner must have public liability insurance in force with at least the minimum coverage required by Texas law. Any damage or loss to a personal vehicle used on University business is the responsibility of the owner. Private insurance coverage serves as primary policy for third party liability and physical damage to the vehicle. Vehicle owners are responsible for any deductible under the private auto policy. When commercial air transportation is available but the individual elects to drive a personal vehicle, the total reimbursement may not exceed the cost of the most economical unrestricted coach fare available.
C. COMBINED BUSINESS AND PERSONAL TRAVEL - When an individual combines business and personal travel, the University will reimburse the necessary expenses required to accomplish the business portion of the trip. A detailed explanation of expenses and allocations is required.
Contributions or Donations. Due to its nonprofit tax status, TCU does not make contributions or donations to other universities or other nonprofit or charitable organizations. Such contributions generally do not meet the purpose of TCU’s tax-exempt status under IRS guidelines. Any such contributions or donations submitted on a reimbursement form will not be eligible for reimbursement.
Credit Cards. Corporate personal credit cards are available to staff and faculty members who are required to travel extensively on University business. To acquire a credit card, the person must obtain approval from a vice chancellor or dean. Those authorized to have a University credit card must file an expense report and pay the credit card bill direct.
Documentation. Original supporting documentation (not copies) is required for all reimbursements. The actual type of documentation required is described on the reimbursement form. According to the Internal Revenue Code, reimbursements made without the proper supporting documentation must be reported as taxable income to the employee. (Also see Shared Expenses.)
In accordance with IRS rules, the business purpose of each expense on the reimbursement form must be clearly documented. This includes complete documentation on the back of the reimbursement form for all meals provided for others (see Meals and Lodging below) and other expenses. Reimbursement forms that do not contain complete documentation of the business purpose of the expense will be returned for further documentation before processing a reimbursement check. The IRS requires that the business purpose of reimbursable expenses be documented in a manner that is clearly apparent to an outside auditor.
Excess Baggage. Charges for excess baggage will be reimbursed only for transporting University materials or when there is extended travel on University business.
Expense Advance. A faculty or staff member may request an "expense advance" for University related expenses in lieu of using personal funds. This advance will be charged to the individual’s employee account receivable (EAR) and must be cleared by the submission of a properly completed reimbursement form. Any advance drawn in excess of the actual expenses incurred should be returned to the Financial Services Office within five (5) business days of the traveler’s return. The individual’s personal check or a copy of a TCU cashier’s receipt showing payment to the EAR must accompany the reimbursement form. An expense advance should not be requested for expenses that can be paid directly by the University (i.e., supplies and certain travel expenses). Expense advances not settled within 30 days after the expense is incurred may be deducted from the person’s paycheck. Unsettled expense advances for terminating employees may be deducted from the final paycheck.
Expense advances must be processed as follows:
* Requests for expense advances must be approved by the appropriate budget manager and submitted in writing to the Financial Services Office at least five business days before the date the funds are needed.
* After that time, expense advances will be available from the cashiers in the Financial Services Office. All expense advances will be issued in cash, unless the expense advance request specifies the need for a check.
* Expense advances are charged to the employee who signs for the cash.
Airline Ticket Reimbursements. It is often to TCU’s advantage for employees to purchase airline tickets or conference packages months in advance. In fact, it is often much more cost effective for employees to book flights directly via the Internet rather than through a travel agent. In those cases, employees can be reimbursed for such travel expenses before the travel actually occurs. After incurring such expenses, the employee can request approval for a travel advance in accordance with the procedures outlined in the preceding Expense Advance section. The employee will then receive an advance to cover the cost of the travel expenses that have already been incurred, even if the actual travel will not occur within the next 30 days. The advance will be charged to the employee’s EAR until the travel occurs. After the travel occurs, the employee must submit the expense documentation with the completed travel reimbursement form.
Foreign Travel. Receipts for foreign travel must be converted into U.S. dollars. The applicable conversion rate and amount should be documented on the receipt or on a separate list.
Gifts or Gift Certificates. If employees are to be reimbursed for gifts or gift certificates given to others, a detailed list of the names of the gift/gift certificate recipients, as well as a designation as to whether they are TCU employees, must be included as supporting documentation with the reimbursement form. If the gift/gift certificate is given to a TCU employee, the value of the gift/gift certificate is subject to inclusion on the employee’s W-2 form and to federal income taxation.
Grant or Contract Expenses. If expenses are to be reimbursed from a grant or contract, a prior examination of the terms of that grant or contract should be made to determine if the expense is allowable.
Gratuities. Reimbursements for gratuities generally should not exceed 15%-20% of the meal or service, depending on the circumstances (such as the size of the group for a meal reimbursement). Explanations should be provided for gratuities that exceed 25%.
Internal Revenue Compliance. The Financial Services Office will insure that TCU’s travel expenditure and reimbursement policies, procedures, and report forms are maintained in such a way as to qualify as an "Accountable Plan" as defined by the Internal Revenue Service. Periodic modifications to the reimbursement policy will be made, as necessary, to insure that favorable tax treatment is obtained in accordance with the IRS Code.
Meals and Lodging. Faculty and staff will be reimbursed for reasonable food and lodging expenses incurred in connection with University business when filed on a reimbursement form. The University will not reimburse excessive expenses if, for personal reasons, the individual elects to dine or stay at a premier establishment. When expenses for food and lodging appear excessive, the person may be requested by the Financial Services Office or reviewing party to justify the perceived excess. The detailed portion of a bill for lodging must be submitted with the reimbursement form. Meals provided for others, or group meals, must also be reported on the reimbursement form. When being reimbursed for meals for others, the specific business purpose of the meal and the names, titles, and business relationship of all people attending the meal must be documented on the reimbursement form. TCUreimburses meals and lodging "per receipt." However, budget managers may establish more restrictive limits for acceptable levels of expenditure reimbursement.
IRS rules allow for nontaxable reimbursement of meals only in conjunction with overnight business trips. Reimbursements for meals incurred in conjunction with non-overnight business trips are subject to inclusion on the employee’s W-2 form and federal income taxation if the business purpose of the meal is not appropriately documented on the reimbursement form.
Reimbursement for alcoholic beverages will be limited to reasonable charges (1-2 drinks per person) incurred as part of a business meal.
Mileage Reimbursements. Reimbursement for the expense of using a personal vehicle for University travel will be limited to the authorized mileage rate in effect on the date of travel. Mileage reimbursement is not allowed for commuting between the individual’s home and normal worksite on scheduled workdays. Mileage reimbursement for use of a personal vehicle will be allowed from/to the individual’s home to/from the airport or other business travel destination for travel on unscheduled workdays (such as weekends). For travel during scheduled workdays, mileage reimbursement will be allowed from/to the individual’s TCU worksite to/from the airport or other business travel destination.
Individuals must document the business purpose of the travel to support mileage reimbursements. The to/from destinations, as well as the date and number of miles traveled, must be documented for each individual mileage reimbursement claim.
Non-Reimbursable Travel Expenses. Expenses that are not directly related to or required for official University travel but incurred for the personal use or convenience of the traveler will not be reimbursed (e.g., personal entertainment such as pay TV movies or magazines and newspapers; first class passage instead of coach or economy; excessive personal phone calls; etc.)
Payments for Services. Employees should not pay other individuals for services performed on behalf of TCU. Payments for services must be made directly by the TCU Accounts Payable Department in the Financial Services Office. If it is absolutely necessary for an employee to pay an individual for services performed on behalf of TCU, the employee must provide the name and social security number of the person receiving payment for the services as supporting documentation with the employee’s reimbursement form. The payment for services will be subject to Form 1099 reporting by the Accounts Payable Department.
Sales and Occupancy Tax. The University is exempt from Texas sales tax. Faculty and staff should review expenses as they are incurred to verify that sales tax has not been assessed. In the case of hotel taxes, the University is exempt from Texas hotel occupancy tax. The University is not exempt from the city portion of the hotel occupancy tax. Although not required to do so, some other states also may honor the University’s exemptions. Copies of the University’s Texas Sales Tax Exemption and Texas Hotel Occupancy Tax Exemption forms are available in the Financial Services Office. These forms should be submitted to the hotel at the time of registration/check-in.
Shared Expenses. When expenses of an individual or activity are shared by TCU and any other entity, detailed explanations of expenses and allocations are required. In a shared expense situation, copies of support documentation are acceptable if the original documents are not available. It must be stated which entity received the originals. The total reimbursement from TCU and all other sources should not exceed the cost of the activity.
Travel Expenses as Income. Any travel advance not cleared in a timely manner as required by the IRS must be reported by TCU as additional compensation on the employee’s W-2 form.
Traveling with Companions. In general, the expenses of a spouse, family member or others accompanying the business traveler are not reimbursable unless such travel is for a specific, pre-approved business purpose on behalf of TCU.
TCU will not reimburse spouse’s travel expenses when a spouse or other person attends a meeting or conference and has no significant role or performs only incidental duties. Such attendance does not constitute a valid University business purpose.
When a spouse who attends a function has a significant role in the proceedings such as direct responsibility for planning, production and oversight of official events or activities, this constitutes a bona fide University business purpose. In addition attendance as a business representative of University at a professional conference or function, or significant involvement in fundraising activities are also considered bona fide University business purposes but must be properly documented and approved in advance of the travel for reimbursement by the University. Reimbursable spousal travel must be pre-approved by the appropriate Vice Chancellor or Chancellor prior to incurring expenses. Upon approval, TCU will reimburse the business traveler for the spouse’s non-personal expenses directly resulting from travel on University business. Travel for spouses should not be charged to TCU accounts with travel agencies unless pre-approval for the business purpose of the spousal travel has been documented. Such written pre-approval must be attached to any travel agency invoices or employee expenses reimbursement forms.
Travel by a spouse of an employee that does not serve a bona fide business purpose should be paid for by the employee or spouse individually. Travel that is inadvertently incurred by the University and is not determined to be a bona fide business purpose must be reimbursed to the University by the employee or spouse individually. Payroll and the Controller’s office will evaluate any spousal travel that is paid for by TCU to determine whether the payment is taxable for federal income tax purposes. If deemed taxable for federal income purposes, these amounts will be included the employee’s W-2 in accordance with Internal Revenue Service procedures.
When being reimbursed for meals for others, the specific business purpose of the meal and the names, titles, and business relationship of all people attending the meal must be documented on the reimbursement form.