Agenda

1. Financial Policies Training:The First EightEffective: February 1, 2008 Revised: May 1, 2009, March 1 and May 17, 2010

2. Agenda • Context and Background • General Policy Information • The First Eight Policies • Travel Expenses • Meal Expenses • Purchasing Card Violations • Alcohol Purchases • Employee Recruiting Expenses • Entertainment Expenses • Professional Memberships, Certification, Dues and Subscriptions • Employee Reward, Recognition and Acknowledgement • Questions and Follow-up

3. Context and Background • Audits • Policy Task Force Financial Policy Development Committee • Charge: Address audits, review existing policies and procedures, establish standard business practices • Goals: Cost containment, efficiency and accountability, compliance with government regulations • Internal Audit Findings • Ambiguous policies • Inappropriate and excessive expenditures • Lack of receipts and documentation

4. General Policy Information • Objectives • Consistent format and language • Accessibility to • Policies, hot links, forms • University-wide • Organizational units may institute policies more, but not less, restrictive • Training and Resources

5. General Policy Information • Policy Format

6. Policies Resources • Web site:www.uc.edu/af/policies • Policy questions e-mail:policyquestions@uc.edu • Frequently Asked Questions:www.uc.edu/af/policies/FAQ.html

7. General Policy Information These PowerPoint slides are intended for training purposes. In the event of any discrepancy or interpretation difference between the policy and the slides, the policy dictates.

8. Policy 2.1.6Travel Expenses

9. Policy 2.1.6Travel Expenses • General • Traveler’s and supervisor’s responsibility to understand policy • University may pay for/reimburse reasonable, authorized, and appropriately documented travel expenditures • Limits – strictly enforced • Travel Expense Report – completed, approved and submitted w/in 30 calendar days of trip’s conclusion • Late submission may result in delay/denial of reimbursement, P-Card violation, disciplinary action • Late submission requires justification statement and approval by senior vice president, vice president or dean (Policy Exceptions Form)

10. Policy 2.1.6Travel Expenses • Authorization • Overnight travel • Pre-approval using Travel Authorization Form • If employee or group travel – supervisor’s approval • If non-employee (e.g., job candidate) – head of org unit approval • Same day travel (or within Cincinnati) • No pre-approval but • Subject to same reimbursement and documentation requirements • Travel Expense Report – completed and submitted within 30 calendar days of trip’s conclusion • Must be submitted and approved before payment/reimbursement

11. Policy 2.1.6Travel Expenses • Types of travel • Incidental • Same day • Overnight travel (i.e., requires lodging for overnight stay) • Domestic • In-state • Out-of-state • International • Group (e.g., team travel, study abroad, field trips) • Recruiting/speakers/visitors (i.e., non-university individuals) • Spouse/family (related to employment recruitment)

12. Policy 2.1.6Travel Expenses • International travel • General • Umbrella policy under development; meanwhile use this one • Where there is a U. S. State Department Travel Warning, university recommends against but doesn’t prohibit • SEEK GUIDANCE from UC International (556-4402) • Pre-approval using Travel Authorization Form • Travel Expense Report – completed, approved and submitted within 30 calendar days of trip’s conclusion

13. Policy 2.1.6Travel Expenses • International travel (cont.) • Carriers • Lowest available coach/economy consistent with scheduling • First or business class only if the following three conditions are met • Medical condition (indicated by physician) • Documented & approved by University Health Services • Pre-approved by traveler’s supervisor (Policy Pre-Approval Form) • (new) Frequent flier miles can be used to upgrade overseas flights • Contact grants administrator for guidelines and restrictions for travel on sponsored projects • For certain grants – must use U.S. Flag air carrier; check with the grant administrator • Lodging – reasonable and documented

14. Policy 2.1.6Travel Expenses • International travel (cont.) • Meals • Current federal per diem rate for the foreign city • Need not be pro-rated • Car rental • Purchase all local, statutory, and optional insurance coverages • Documentation required for reimbursement • Ground Transportation • Examples: shuttle (airport/hotel), bus, taxi, tram, train, parking • Use care to obtain lowest cost • Obtain original receipts if possible • Currency • UC employees • Use rate of exchange at the time of departure from foreign country for non-credit card expenditures • Indicate exchange rate on Travel Expense Report • International residents may be paid in the currency of their origin country

15. Policy 2.1.6Travel Expenses • Domestic travel • General • Transportation mode – safe, cost-effective, efficient • Make arrangements early (ideally 30 days in advance) • Modes of transportation • Common carrier • Privately-owned aircraft • Charter flight • Personally-owned vehicle • University vehicle • Rental vehicle • Ground transportation

16. Policy 2.1.6Travel Expenses • Domestic travel - modes of transportation • Common carrier • Lowest available coach/economy consistent with scheduling • First or business class only if the following three conditions are met • Medical condition (indicated by physician) • Documented & approved by University Health Services • Pre-approved by traveler’s supervisor (Policy Pre-Approval Form) • Frequent flier miles can be used to upgrade overseas flights • Contact grants administrator for guidelines and restrictions for travel on sponsored projects • Vouchers/credits for unused tickets • Must be used for university business

17. Policy 2.1.6Travel Expenses • Domestic travel - modes of transportation • Privately-owned aircraft • Pre-approved by supervisor (Policy Pre-Approval Form) • Air travel is justified and commercial service not available • Between departure/destination points or • Can’t accommodate necessary time schedules • Must meet policy’s insurance requirements (see Travel Expensespolicy for specifics) • Reimbursed at commercial coach fare rate from an authorized source (e.g., University Authorized Travel Agency)

18. Policy 2.1.6Travel Expenses • Domestic travel - modes of transportation(cont.) • Charter flights • Pre-approved by president or appropriate senior vice president (Policy Pre-Approval Form) • Provide a list of all travelers • Air travel is justified and commercial service not available • Between departure/destination points or • Can’t accommodate necessary time schedules • Transportation of non-essential individuals • At no charge is prohibited • At a fair fee if extra seats

19. Policy 2.1.6Travel Expenses • Domestic travel - modes of transportation (cont.) • Personally-owned vehicle • Mileage is reimbursed(Variant Expense Rate Table) • Should not exceed cost of least expensive airfare or rental car • Consider additional costs when comparing • Signature on Travel Authorization Form certifies: • Valid US or Canadian driver’s license • Proper insurance coverage (see Travel Expenses policy for specifics) • University vehicles • No mileage reimbursement • Reimbursed for • Incurred service expenses necessary for safe/efficient operation • With original, itemized receipts

20. Policy 2.1.6Travel Expenses • Domestic travel - modes of transportation (cont.) • Rental vehicle • For individual: intermediate size or lowest rate • For groups: full size or van; all authorized drivers must be listed • Reimbursed • Rental charge and actual fuel expenses • Submit original itemized receipt with Travel Expense Report • Not reimbursed • Mileage • Insurance or additional coverage; print letter certifying university insurance policy and submit to rental agency • Use of rental vehicle to make (not rental while at a destination) the trip: may be used when the overall cost is less than the cost of other means of transportation

21. Policy 2.1.6Travel Expenses • Domestic travel - modes of transportation(cont.) • Ground Transportation • Examples: shuttle (airport/hotel), bus, taxi, tram, train, parking • Use care to obtain lowest cost • Obtain original receipts are required if possible

22. Policy 2.1.6Travel Expenses • Lodging • Reimbursed if pre-authorized overnight travel • Hotels • Reasonable, standard business room rate • If conference/convention – limited to that rate • Ask for discounts • Need itemized original receipts • Hotel gratuity may be reimbursed if reasonable and approved by supervisor • If paid by Purchasing Card • Itemize in Travel Expense Report (but indicate P-Card paid) • Not reimbursed • Keep original itemized receipt with P-Card log

23. Policy 2.1.6Travel Expenses • Lodging (cont.) • Private residence • Standard university per person per day rate (Variant Expense Rate Table) • Include a statement acknowledging stay in Travel Expense Report • Extended stays(i.e., weekend travel to get lower fares) • Reimbursed for living expenses on extra days only if end result reduces total travel costs of trip

24. Policy 2.1.6Travel Expenses • Meals • Reimbursed if pre-authorized overnight travel • Amount • Current federal per diem for that city • Gratuities are part of per diem; not > 20% • No need to pro-rate • If paid by Purchasing Card • Itemize in Travel Expense Report (but indicate P-Card paid) • Not reimbursed • Keep original itemized receipt with P-Card log • For alcohol or entertainment expenses – see those policies

25. Policy 2.1.6Travel Expenses • Pre-Payments on Travel • What and how? • Common carrier transportation AND/OR registration fees • Preferred method is of pre-payment is a P-card • Alternative method: when using personal funds, traveler can optionally be reimbursed prior to the trip on a Travel Expense Report (A113) if desired • Include Travel Authorization Form if overnight • Include original receipts • The reimbursement prior to the trip must be reflected as a prepayment on the Travel Expense Report submitted following the trip • Registration fees (only) • Direct payment to the vendor: submit completed registration materials and an A114 to Accounts Payables. Include Travel Authorization Form if overnight travel.

26. Policy 2.1.6Travel Expenses • Purchasing Card Payments (for travel) • Need travel P-Card authorization • Must adhere to • Limits of this policy • P-Card limits (For amounts over P-Card limits, use personal card and seek reimbursement on Travel Expense Report) • Indicate P-Card amounts on Travel Expense Report; note that P-Card paid (prepaid) • Keep original itemized P-Card receipts with P-Card log

27. Policy 2.1.6Travel Expenses • Cash Advances • Only for group/team travel; not for individual travel • Exceptions: case-by-case basis by Treasurer’s Office • Not to exceed 80% of projected cost • How? • Responsible UC employee completes and sends Funds Reservation A114 and signed Travel Authorization Form to Accounts Payable • Responsible person receives check • Any remaining cash advance balance – to be deposited with A-151 immediately upon trip conclusion • Within 30 calendar days, submit detailed and approved Travel Expense Report to Accounts Payable

28. Policy 2.1.6Travel Expenses • Other travel related points: • Overages • Personal funds • Know what’s allowable • Reimbursed after* trip and approved Travel Expense Report submitted • Do not use to pay for travel expenses of “prospective” employees, students, guests * airfare or registration fees may be reimbursed prior to trip with approved TER and Travel Authorization (if needed)

29. Policy 2.1.6Travel Expenses • Other travel related points: • Personal convenience expenses • Not reimbursed(e.g., haircuts, in-flight movies, hotel pay-per-view, spa services) • Laundry/dry cleaning may be reimbursed if reasonable and during a stay of 7 days or more • Not reimbursed: passports, immunizations, visas when not required as condition of travel

30. Policy 2.1.6Travel Expenses • Other travel related points: (cont.) • Airline club memberships – not paid/reimbursed • Cancellations – costs incurred by failure to cancel travel reservations in a timely manner will not be reimbursed • Extended stays (i.e., vacation time added to trip) • Cost variance must be clearly defined • Personal expenses will not be reimbursed • Cost cannot exceed what trip would otherwise have cost university • University will not prepay personal expenses with intention of being repaid

31. Policy 2.1.6Travel Expenses • Reporting and Documentation • Expenses must be fully documented • If per diem (or up to per diem) for overnight travel meals is claimed, no receipts required • Meals charged to a P-Card require original itemized receipts; (anything charged to a P-Card requires an original itemized receipt) • Supervisor must review Travel Expense Reports before approving

32. Policy 2.1.6Travel Expenses • Rules and Steps • One (Final)Travel Expense Report (TER) per trip • (may be additional TER if reimbursed for common carrier transportation or registration fees prior to trip) • If overnight, include Travel Authorization Form • Filed within 30 calendar days of trip’s conclusion • After 30 calendar days requires approval from dean, vice president or senior vice president (Policy Exceptions Form) • Personal vehicle mileage - same day/incidental travel • Submit approved Travel Expense Report with a Mileage Log; within 30 days of travel; can bundle • Calculate miles from point of departure to destination (new) • Mileage from home to primary work is not reimbursed

33. Q. How is mileage calculated for travel when using one's personal vehicle? A.  As part of policy revision effective 05/01/09, mileage for travel will be calculated from the point of departure to the destination point. The policy remains unchanged in the mileage between one's home and one's primary work site will not be reimbursed by the university. Notes: organizational units may have more restrictive policies. • An example of how the revision works: • Mileage from home to primary work site:12 miles • Mileage from home to the airport: 38 miles • Mileage from primary work site to airport:16 miles • When traveling for university business to the airport from my home, my reimbursable mileage, for this portion of the travel, is 38 miles (not 38 miles minus12 miles). • When traveling for university business to the airport from my primary work site, my reimbursable mileage, for this portion of the travel, is 16 miles.

34. Another example of how the revision works: • Mileage from home to primary work site: 9 miles • Mileage from home to Columbus: 100 miles • Mileage from primary work site to Columbus:112 miles • When traveling for university business to Columbus from my home, the reimbursable mileage, for this portion of the travel, is 100 miles (not 100 miles minus 9 miles). • When traveling for university business to Columbus from my primary work site, the reimbursable mileage, for this portion of the travel, is 112 miles.

35. A third example of how the revision works: • Mileage from home to primary work site (main campus): 4 miles • Mileage from main campus to RWC: 13 miles • Mileage from RWC to home: 8 miles • During the work day, I drive from my primary work site on main campus to RWC and back. Reimbursable mileage: 26 miles (13 miles each way). • During the work day, I drive from my primary work site on main campus to RWC, and then drive home for the day. Reimbursable mileage: 21 miles (13 miles + 8 miles). • I drive to RWC (not my primary work site) from home and remain there all day. I drive home from RWC. Reimbursable mileage: 16 miles (8 miles each way). • I drive to RWC (not my primary work site) from home, and then drive to my primary work site on main campus. Reimbursable mileage: 21 miles (8 miles + 13 miles).

36. Policy 2.1.6Travel Expenses • Rules and Steps (cont.) • Original Itemized Receipts • If not P-Card, must show proof of payment • If lost, traveler’s responsibility to obtain duplicate from vendor and if not available by vendor, traveler to contact their card-issuing bank to provide one • Non P-Card receipts substantiate amount due to traveler • Purchasing Card • Keep original itemized P-Card receipts with P-Card log • Itemize on Travel Expense Report but indicate that P-Card paid • If no amount is due traveler because ALL expenses are P-Card or prepaid • Completed Travel Expense Report should remain with traveler’s P-Card log, should contain Travel Authorization Form and be approved by the traveler’s supervisor

37. Policy 2.1.6Travel Expenses • Reward Programs • University travelers may accrue frequent flyer miles for university-related travel • Per Ohio Ethics Commission • Accrued miles must be used for university-related business travel • Must be tracked separately

38. Policy 2.1.6Travel Expenses • Suggested GL Accounts • 530500 Employee Travel & Training • 530501 Employee Training Registration & Fees • 530503 Employee In-State Travel • 530504 Employee Out-of-State Travel • 530505 Employee Foreign Travel • 530701 Non-Employee Travel • 530702 Team Travel

39. Policy 2.1.6Travel Expenses • Tools to help: • The Traveler’s Checklist provides a one-page summary of things to remember when traveling overnight.

40. Policy 2.1.4Meal Expenses

41. Policy 2.1.4Meal Expenses • Four categories • Overnight Travel Meals • Business Meals • University Functions • Non-university Functions • Overnight Travel Meals • Meal expenses during a trip that involves lodging for an overnight stay • See Travel Expenses Policy

42. Policy 2.1.4Meal Expenses • Business Meals • Primary purpose: business discussion • Must include at least one non-university person whose presence is necessary • Properly documented (IRS Rules) • Time, date, place (whether on or off campus), attendees, business purpose • Must include clear business purpose • Covers only those individuals necessary

43. Policy 2.1.4Meal Expenses • Business Meals (cont.) • Amounts • Current federal per diem rate for that city • Gratuities are part of per diem; not > 20% • No need to pro-rate • If fundraising, see Entertainment Expenses Policy • Sponsored Projects – Contact your grant administrator for guidelines and restrictions

44. Policy 2.1.4Meal Expenses • University Functions • Food at seminars, retreats, workshops, orientations, other university functions • Properly documented • Include description of business purpose • If feasible, include list of attendees • Other functions where food/beverages may be provided • Board meetings • Meetings with external stakeholders or speakers • Activities with volunteers or where a majority of participants are students

45. Policy 2.1.4Meal Expenses • University Functions (cont.) • Are NOT food at gatherings of university employees on a daily or similar ongoing basis • May cover food for gatherings of university employees • On an occasional basis (i.e., no more than 4 times during a fiscal year per organizational unit) • Where the primary purpose of the gathering is a formal business discussion (e.g. a “working” breakfast/lunch/dinner particularly if personal time is used to conduct university business)

46. Policy 2.1.4Meal Expenses • Non-University Functions • Covers lunch/refreshments included in the registration fee for a conference, seminar or other meeting • Does not cover NON-overnight program where “lunch is on your own” • Policy exceptions • Approval by senior vice president, vice president, dean or their designee (Policy Exceptions Form)

47. Policy 2.1.4Meal Expenses • Procedure • Include any required documentation for overnight travel meals with approved Travel Expense Report or P-Card log; no receipts needed if claiming the per diem (or up to it); original itemized receipts required for meals charged to the P-card • Include any required documentation and original itemized receipts for non-travel meals with an A-114 or P-Card log • Suggested GL accounts: • 5305xx range for overnight travel meals • 5304xx range for other meals

48. Policy 2.8.1Purchasing Card Violations

49. Policy 2.8.1Purchasing Card Violations • Cardholder Responsibility • Use card responsibly • Use in manner consistent with university’s mission, ethical practices, laws, and policies • Keep current with Purchasing Card Policies and Procedures Manual

50. Policy 2.8.1 Purchasing Card Violations • Four Roles • Cardholder • University employee whose name is on the card • Reviews and signs own statement • Accountable for all charges with that card • May be an Account Allocator for own account but can’t be a Card Verifier or Independent Reviewer for own account • Account Allocator • Person who can allocate charges to a non-default account in UC Flex • May be used in conjunction with the other roles