Travel and Entertainment Expense Policy

1. General Overview
2. Cash Advances for Travel
3. College Credit Cards
4. Transportation
5. Lodging
6. Meals for Overnight Travel
7. Day Trips not Involving Overnight Travel and Entertaining on Campus
8. Tipping
9. Telephone Charges

Section 1 - General Overview

The College's policy is to reimburse its travelers for all reasonable and necessary expenses incurred while transacting the affairs of the College. Only the Board of Trustees may approve exceptions to the policy. In addition, the College believes that reimbursements made to "disqualified persons" in accordance with the travel and entertainment reimbursement policy do not constitute "excess benefits" as defined by the Internal Revenue Service. However, there are specific types of expenses which are considered to be personal, and are therefore not reimbursable. The following list is illustrative, and does not necessarily include all items considered to be personal expenses.

a. Cleaning, pressing and laundry.

b. Airline and other trip insurance.

c. Barber, manicurist and shoe shine.

d. Traveler's check fees.

e. Repairs on personal automobiles damaged while on College business.

f. Traffic violations and court costs.

g. Loss or theft of personal property.

From time to time family members may accompany employees on business trips. The College generally encourages employees to take advantage of business travel for family members. However, the additional expense incurred as a result of family members is strictly the responsibility of the employee. Whenever possible, separate receipts should be obtained for the employee's expenses.

Section 2 - Cash Advances for Travel

A. Travel advances can be obtained by (1) getting approval from the person responsible for the operating budget or account to which expenses will ultimately be charged, and (2) getting approval from your Senior Staff member. The proper form for an advance is the College's Payment Order. A travel advance must be reasonable in both the amount and the length of time to which the advance applies. The College will not advance cash for an entire semester, season or year.

The approved payment order should be forwarded to Accounting well in advance of the travel. If a payment order is received two weeks in advance of travel that will ensure that a check is available when it is needed. The cut off for processing checks each week is Wednesday noon; requests received by Wednesday noon will generate checks the following Wednesday.

Travel advances should be accounted for as soon as possible after expenses are incurred. Unless overwhelming circumstances can be demonstrated, the College will not issue a travel advance unless all previous advances have been accounted for in a satisfactory manner.

B. Accounting for Advances and Expense Reimbursement -- IRS regulations require our procedures to be "accountable." In circumstances in which they are not, reimbursed amounts must be treated as taxable income to the employee. An "accountable" plan requires that expenses have a legitimate business purpose and be substantiated with sufficient records (like those which would support a personal tax deduction) and the return of advances in excess of substantiated business expenses.

The law provides that timeliness is a must in this process. Accordingly, the College has adopted the following safe harbor method: (1) an advance will be made no more than 30 days before expenses are incurred; (2) the employee must substantiate expenses no more than 60 days after the expense is incurred; and (3) the employee must return all unsubstantiated amounts no more than 120 days after expenses are incurred. Within this time frame the following guidelines apply:

1. All travel advances and requests for reimbursement must be submitted on the College's Travel and Entertainment Expense Statement.

2. The statement must include the following:

a. The destination and purpose of the trip.

b. The business relationship of persons entertained, if applicable.

c. Original receipts supporting all lodging expense.

d. Original receipts supporting all non-lodging expenditures of $25 or more. Exceptions to this are a standard mileage reimbursement and other expenses where receipts might not be readily available.

3. The request must be approved by a Senior Staff member. Senior Staff requests for reimbursement require the approval of another member of the Senior Staff.

4. Whenever possible a receipt supporting an expense should be obtained. This is usually possible and, in fact, is a Kenyon College requirement for expenses in excess of $25 and for all lodging expenses.. The College expects original receipts for normal expenses such as meals. However, when a receipt cannot be obtained, a description of the expense should be included on the statement, or classified in the appropriate space provided on the form.

When receipts for meals are not obtained, the College will reimburse the lesserof actual meal expenses or the IRS per diem allowance for meals.

Section 3 - College Credit Cards

If an employee is routinely expected to travel in the normal course of business that employee may request a College credit card. Requests should be made to the employee's Senior Staff member. If the Senior Staff member concurs, he or she will contact the Comptroller with the request and a recommended dollar limit for the card.

General rules for the use of College credit cards:

A. Personal items should never be charged on College credit cards. Using a College credit card for the purchase of personal items will result in revocation of the card.

B. Credit card bills are sent directly to the cardholder. All receipts, both the credit card receipt and the original hotel/meal receipt, must be saved. The receipts are to be attached to the credit card bill. The business purpose of the charges and persons entertained, if any, should be written on the receipts or on the face of the credit card bill.

C. The purchase order system should not be circumvented with a College credit card. The cards are intended to make travel easier; they are not to be used to buy office supplies, etc.-- this prohibition includes purchases made at the College Bookstore.

D. Do not use College credit cards for cash advances. There is a bank service charge for this and cash advances may be arranged through the College Accounting Office (see section 2).

E. Hasten the payment process by verifying the charges, signing the bill, including the appropriate account number and submitting the bill to your supervisor (who, in turn, will submit it to your Senior Staff member for his or her approval) in a timely fashion. The College does not want to incur late payment penalties and employees do not want to be stranded with declined cards because of non-payment!

F. If a card is ever lost or stolen, or when a cardholder leaves the employ of the College, the credit card in question should be reported immediately to the Secretary to the Vice President for Finance at PBX 5172 so that the card can be canceled.

Section 4 - Transportation

College business travelers are expected to use the most economical and direct mode of transportation available, consistent with the authorized purpose of the travel.

A. Personal Vehicles

Reimbursement for business travel by personal automobile is at the per diem rate per mile as published by the Internal Revenue Service. This per mile rate covers all expenses, except toll charges and parking fees, relating to the operation of the car. Requests for mileage reimbursement should be submitted on a Travel and Entertainment Expense Statement and should include dates traveled, mileage, destination and business purpose of travel.

B. College Owned Vehicles

Business travel using a College vehicle may be arranged on a first-come, first served basis by contacting the Assistant Director for Security & Safety and Director of Community Relations at extension 5109. The current per mile charge-out-rates are:

Cars and mini vans $0.33

Large passenger vans $0.43

C. Air Travel

1. An employee may use the travel agent of his or her choice to book the best available coach class of service. However, employees are encouraged to periodically check with more than one agent to ensure the best rates. Upgrades from coach class are permitted provided the upgrade is at no additional cost to the College. Agents may or may not be willing to bill the College directly. If not, the employee will need to pay the agent for the ticket and then request reimbursement from the College.

2. If an agent is going to bill the College directly the employee must know the account number to which the flight will be charged and give that number to the agent to be included on the invoice.

3. All tickets purchased must be non-refundable. If the trip is cancelled, the ticket must be used on the next available opportunity for travel on that airline.

4. Extending a trip for a day or two to include a Saturday often results in significant savings on airfares. Often this savings is greater than the additional cost of meals and lodging. When this is the case and work schedules permit, employees are encouraged to extend their stay.

D. If an employee chooses to drive rather than fly on a business trip, reimbursement for travel by personal automobile will be limited to the lesser of mileage or the most economical, direct airfare available.

E. Whenever a traveler, for his or her convenience, travels by an indirect route or interrupts College travel for personal travel, the additional expenses are the responsibility of the traveler.

Section 5 - Lodging

The College will pay for single occupancy hotel accommodations. The College expects everyone to use moderately priced hotel accommodations. An exception will be allowed if the hotel is the location of the conference or symposium attended.

Section 6 - Meals for Overnight Travel

The actual cost of meals, including taxes and tips (except where limited by contract or grant), while on College business is reimbursable. Travelers should select restaurants which are reasonably priced for the locality.

1. Breakfast will be allowed whenever the traveler is out of town the night before or when the incurred travel begins earlier than a normal breakfast and no meal was provided by the transportation company.

2. Lunch will be reimbursed provided that the trip begins before the lunch hour.

3. Dinner reimbursement will be made when the traveler is away from home for the evening meal or does not return home until after the normal dinner hour, and no meal was provided by the transportation company en route.

Section 7 - Day Trips not Involving Overnight Travel and Entertaining on Campus

A. Meals eaten during day trips which do not include overnight travel are reimbursed only if there is a business purpose directly related to the meal. Therefore, a meal eaten while traveling to or from a meeting is not reimbursable because the IRS views this as a personal expense.

B. On occasion it is necessary for an employee to entertain a campus visitor. For example, this could be someone who is interviewing for a position or a guest lecturer. When circumstances require that the employee accompany the visitor during a meal the College will pay for both the visitor's and the employee's meal since there is a business purpose directly related to the meal.

C. As in all other situations, the business purpose of the meal and original receipts must accompany the request for reimbursement on the Travel & Entertainment Expense Statement.

Section 8 - Tipping

A. Tipping is allowed for meal service. However, in no event should the tip exceed fifteen percent of the cost of meals. Tips in excess of fifteen percent will be reimbursed at the fifteen percent amount.

B. Reasonable tips, not to exceed 15%, for other services such as taxi cab drivers, are also allowable.

Section 9 - Telephone Charges

A. While on overnight travel the College will pay for business related calls made to the College. The College will also pay for calls to talk with family members once a day (for a reasonable period of time).

B. College phone cards are available for making College-related calls when away from campus. Requests for phone cards should come from the department head and should be directed to the Telecommunications Coordinator. Requests must include the name of the person to receive the card, the name of the department, and the account number to which calls on the card should be charged. Charges for calls made using phone cards appear on the monthly telephone chargebacks report for each department. If a card is ever lost or stolen, or when a cardholder leaves the employ of the College the phone card in question should be reported immediately to the Telecommunications Coordinator at PBX 5703 so that the card can be canceled.

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11/22/99