BUSINESS EXPENSE REPORTING and REIMBURSEMENT WORKSHOP. Elsa Liauwapau Manager Accounts Payable & Disbursements (305) 284-2287 Voice (305) 284-5835 Fax email@example.com. Objective. At the end of this workshop, each participant will be able to complete each of the following forms:
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BUSINESS EXPENSE REPORTING and REIMBURSEMENT WORKSHOP Elsa Liauwapau Manager Accounts Payable & Disbursements (305) 284-2287 Voice (305) 284-5835 Fax firstname.lastname@example.org
Objective • At the end of this workshop, each participant will be able to complete each of the following forms: • Business Expense Reimbursement Form (BERF) • Check Requisition Form • Travel Advance Form
Topics for Discussion • UM Travel and Business Exp. Policy D-015 • Direct Expenditure Requisition Pol. D-010 • BERF • Check Requisition Form • Travel Advance Form
FINDING POLICY ON THE WEB: Go to www.miami.edu/policies_procedures • Click on Finance • Click on Non-Payroll Expenditures • D010 DIRECT EXPENDITURE REQUISITION for check requisitions • D015 TRAVEL AND BUSINESS EXPENSE for BERFs
Check Requisition Policy • Check Requisition Form may be used to pay University business expenses when other payment methods are not more appropriate. • Payments for services to University Employees must be made thru Payroll. • Payment for services by individuals, partnerships, and corporations must be made using a Purchase Order and invoices submitted to Accounts Payable.
Check Req. continued.. Services provided often involve contact with students, patients and University computer systems and can expose the University to potential liability claims. Prospective vendors must be approved (Purchasing). Check Requisitions must be accompanied by original supporting documentation, business purpose explanation, and authorized signatures.
IRS Tax Information • All requests for payment for services performed by individuals, sole proprietors, and partnerships must include the SS no. or Tax ID no. and permanent address on the check requisition and be accompanied by a W-9 form. Services include: - payment to hotels for room rental, - honorarium (copy of SS card and address) - conference registration fees • This information is also required for payment to corporations for medical, health care ( clinics, labs, hospital) or legal services (law firms). • Payment for Services to Non-resident Alien must include a completed Form W-8BEN
Disposition of Check • All check requisitions must have a postal address • Interoffice Distribution (interoffice mail, Medical School Messenger, Hold for Pickup) is not allowed without valid reason and a Vice President signature. • Exception: Travel Advances and Petty Cash replenishments do not require a VP approval for for interoffice distribution.
Completing the Check Requisition Form • 1. Check information • A. Indicate resident alien status • B. Payee Tax ID or Social Security # • C. Check amount • D. Payee Name
Check Requisition Form Cont’d • 2. Disposition of check • A. Postal Service Address - the street, city and zip code must be provided • B. Check box if enclosure is to be mailed • C. Internal Distribution – Must provide reason and VP signature and check one box • 3. Payment Type • Check box that most closely describes the type of payment.
Check Requisition Form Cont’d • 4. Account Information • A. FRS Bank account no. and Check no. - Leave blank; completed by the Disbursements Office • B. Account number - valid FRS account number • C. Sub-object code - four digit code that describes the expense • D. Amount - the sum of all amounts listed here must be equal to the amount on line (1d)
Check Requisition Form Cont’d • 5. Explanation & Contact • A. Provide an explanation of the payment request. • B. Contact name and number required to answer any questions that may arise in processing the request
Check Requisition Form Cont’d • C. Sponsored Programs approval - required if an account beginning with 6XXXXX is listed in section 4B • 6. Approvals • A. Authorized signature and Print Name - signature must be on file in the Disbursements Office • B. Dept. Chair/Dean/VP - as required (see policy D-10)
Official University Travel: Official University Travel is defined as travel by University personnel,non-University personnel, and University students when the authorizing individual considers such travel to be in the professional and/or business interest of both the traveler and the University. Definitions
Definitions Cont’d • Authorized Travel Agency: A travel agency that has contracted with the University to provide business travel services. • Electronic Ticket/Ticketless Airline Travel: air travel that is reserved with an airline for which no paper ticket is issued. The reservation and seat assignment is secured within the airline's computer reservation system only. The traveler must request a receipt from the airline at the time of the booking or check-in at the airport
Definitions Cont’d • Domestic travel: federal regulations define domestic travel as travel within the United States, its possessions and territories. US possessions and territories include Guam, American Samoa, Puerto Rico, and the Virgin islands. • Local travel: travel within Miami-Dade and Broward counties.
Definitions Cont’d • Foreign travel: travel outside of the United States, its possessions and territories. This includes travel within the United States while in route to or returning from foreign destinations.
Documentation Requirements • Under the IRS Accountable Plan Rules expenses are required to meet three conditions: • There must be a legitimate business purpose - explanation of the business conducted • Expenses must be substantiated: original receipt, with date, place and amount of the expense • Any cash advance not used must be returned
Requirements continued • Receipt must indicate payment; proof of payment must be apparent (canceled check). • A Conference Brochure must be provided for conference/seminar attendance. • Entertainment Expenses must have the names of the attendees and their relation to the University and the business discussed. • Airfare receipt/itinerary and boarding passes are required for airfare reimbursement. • Mileage reimbursement is limited to 600 miles.
Reimbursable Travel Expenses • Commercial transportation expense, including airline, bus, rail and steamship - cost of coach or other lower promotional fare • Mileage allowance for travel in a private automobile is 55 cent per mile starting January 1, 2009. • Meals – per diem meal allowance or actual cost. • Domestic travel per diem of $50 a day($25 for departure after 3pm and $25 for returns before 3pm). • Foreign Travel per diem: rate in effect as published by US Department of State at http://aoprals.state.govAttach page with city/country Max M&IE rate marked.
Reimbursable Travel Expenses Cont’d • Lodging - actual cost only • Entertainment - must include names of the attendees and their affiliation, date, place of entertainment, and business purpose • Incidental expenses - include business calls, gratuities, tolls, parking and taxi. No receipts required if the expense is less that $75.
Non-reimbursable Travel Expenses • Conference & convention meals, if already included in registration fees. • Personal entertainment such as hotel room movies, theater tickets, newspapers, magazines, prescriptions, over the counter drugs, health club facilities, barber/beautician services, etc. • Personal care items. • Clothing, and clothing rental.
Non-reimbursable TravelExpenses Cont’d • Corporate charge card delinquency assessments due to the action of the traveler. • Life or travel accident insurance premiums. • Parking tickets and traffic violations. • Personal portion of airfare, hotel or rental car. • Restaurant gratuities, if traveler is on per diem plan.
Non-reimbursable Travel Expenses Cont’d • Repairs or towing of personal vehicle. • Valet service and/or laundry charges, if travel is less than five days. • Gifts to friends or relatives, even in lieu of meals and lodging. • Commuting between home and campus. • Rental of convertible automobile or other non-standard vehicle.
Non-reimbursable Travel Expenses Cont’d • Airline clubs unless approved by President, Provost, or executive/senior Vice-President. • Airline tickets obtained using frequent flyer miles or travel vouchers. • Expenses submitted more than 12 months after expenses were incurred. • Other expenses not directly related to the travel assignment.
What if…. • An original receipt is lost: For an incidentally lost receipt, the traveler should write statement to this effect and the individual approving expense should sign the statement also. Submit this along with any additional support such as a fax copy (hotel bill), or credit card statement (meal).
Travel Object Codes Go to www.miami.edu/controller and select Accounting Information->Expense subcode xxx Or type below: • Expense Sub-code Summary http://www.miami.edu/UMH/CDA/UMH_Main/1,1770,2365-1;3331-3,00.html • Expense Sub-code Explanations http://www.miami.edu/UMH/CDA/UMH_Main/1,1770,2365-1;6162-3,00.html
Travel Object Codes • 3611 employee domestic travel • 3612 employee foreign travel • 3613 non-employee domestic travel • 3616 student travel
Travel Object Codes Cont'd • 3624 entertainment: food/beverage/reception • 3625 entertainment - other • 3631 recruiting - athletes • 3632 recruiting - students • 3633 recruiting - employees
Travel Object Codes Cont’d • 3641 moving expenses • 3801 registration -conferences, seminars, etc. • 3802 subscription fees (publications, magazines) • 3803 dues and memberships – other (professional) • 3804 dues and membership - civic/community
Travel Advance Requirements • Foreign travel • Extended trips of more than 14 consecutive days • Student travel • Travel outside the 48 contiguous states • Non-exempt staff travel • Travel by those who have applied for but not yet received the American Express Card
American Express Card Program • Replaces cash advances • All faculty, administrative/professional, research employees are eligible
Requirements continued • Travel Advances, Ghostcard Airfares, Advanced Reimbursed Airfare and Hotel must be accounted for on a BERF within 10 days from return of business trip.
Completing the Travel Advance Form 1. General - provide all information listed A. Name of traveler B. UM ID No. For non-employee, enter an explanation (speaker, patient, etc.) C. Department D. Dept. phone no. E. Date F. Dept. Address G. Locator Code H. Enter dept. account no. I. Enter travel object code
Travel Advance Form Cont’d 1J. Destination of trip 1K. Dates of trip 1L. Business purpose of trip 2 Estimated Expenses - list estimates for transportation, lodging, meals and other miscellaneous expenses
Travel Advance Form Cont’d • 3. Authorization - must be signed by an authorized signer on the account, Dean or Division head (see policy D10) • 4. Disbursements office/Sponsored approval • 5. Travel Acknowledgement & Authorization - must be signed by the traveler
Completing the BERF • All BERFS must have the business purpose clearly explained • Use appropriate object codes to differentiate between travel (3611), entertainment (3624), and registration fees (3801), moving exp. (3641), etc. • The BERF must be signed by the payee, payee’s supervisor, account signer, and appropriate business office as required
Completing BERF Continued • Report travel expenses by day • Report hotel expenses by day under the appropriate columns (separate room rental, meal and other). • Authorized signer signature card must be on file with Disbursements/Sponsored
BERF • 1. Name/Status • A. Indicate employment status • B. Payee’s name • C. Payee’s UM ID No.
BERF Cont’d • 2. Disposition: • A. Direct Deposit – UM employee reimbursement will be via direct deposit to the employee’s primary bank account on file in Payroll. • B. US mail- For non-employees. If checked, the street, city, and zip code must be provided • C. Check one box for pickup of check: -Hold for Pick Up at Ashe Bldg, Gables -Medical School Messenger for pick up at Medical Finance Office at Medical -RSMAS Messenger for Rosenstiel campus.
BERF Cont’d • 3. Date - date(s) of the expenditure • 4. Trip itinerary/Expense explanation - summary description of the event giving rise to the expense • 5. Automobile - mileage allowance for the use of a private automobile. Include the total miles driven and the allowance (number of miles x rate)
BERF Cont'd • 6. Airline - cost of airline ticket • 7. Ground transportation - cost of car rental, rail ticket • 8. Lodging - actual cost of hotel room including room tax • 9. Per diem/Meals - actual cost of all meals must have receipts or per diem cost of $50.00 per day (US Dept of State rate for foreign travel).
Berf Cont’d • 10. Other - miscellaneous expenses including tools, parking and tips • 11. Total dollars - sum of all expenses on each line • 12. Taxable amount - leave blank; for Disbursements Office use • 13. Explanations
BERF Cont’d • 14. Itemize ‘Other’ expenses • 15. Name and phone number of preparer • 16. Sponsored Programs - approval required if expenses are charged to an account with 6xxxxx in (19) • 17. Payee’s signature and address
BERF Cont’d • 18. Authorization • A. Supervisor Signature: Supervisor signature is required. • B. Authorizing Account Signature - signature of person authorized to sign for account to be charged. A signature card must be on file in the Disbursements Office. • C. Dept. Chair/Dean/VP - as required
BERF Cont’d • 19. Account no. /object code/ amount - • indicate the account(s) and the appropriate object code for the expense • 20. Total Expenses - • sum of all the amounts charged • 21. Deduct Advance – • deduct any amount previously issued as a travel advance • 22. Balance due Employee – • amount for which a check should be issued
Berf Cont’d • 23. Balance due University – • amount which the employee owes to UM as a result of having expenditures that are less than the travel advance previously issued. A receipt from the Cashier’s in the Ashe lobby must be attached.
COMMON MISTAKES ON BERFS • Incorrect or missing UM ID (C) No. • Missing or invalid account and/or object code. • Business purpose is missing or not clear. • Missing signature of payee and/or authorized signer. • No original receipts. • Wrong totals.
Disbursements Office Staff • Elsa Liauwapau - Manager 8-2287 • email@example.com • Coral Gables Documents: • BERFS - Akemi Witkowsky 8-3564 • Check Reqs - Sonia Falloon 8-3564 • Petty Cash - Cathy Ralls 8-3564 • Medical School Documents: • BERFS - Frank Betancourt 8-3564 • Check Reqs - Susan Kay 8-3564