Financial Policies Training: The First Eight Merianne Cardas Administration and Finance

1. Financial Policies Training:The First EightMerianne Cardas Administration and Finance

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 • The policy • 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. 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.

7. Policy 2.1.6Travel Expenses

8. 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 and submitted within 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)

9. 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

10. 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)

11. 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 and submitted within 30 calendar days of trip’s conclusion

12. 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) • 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

13. 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

14. 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

15. 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) • Contact grants administrator for guidelines and restrictions for travel on sponsored projects • Vouchers/credits for unused tickets • Must be used for university business

16. 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 Expenses policy for specifics) • Reimbursed at commercial coach fare rate from an authorized source (e.g. University Authorized Travel Agency)

17. 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

18. 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 receipts

19. 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

20. 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 • Original receipts are required

21. 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 receipt with P-Card log

22. 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

23. 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 receipt with P-Card log • For alcohol or entertainment expenses – see those policies

24. Policy 2.1.6Travel Expenses • Pre-Payments / Payments / Reimbursement • With proper documentation and for allowable expenses • Pre-Payments • When possible? • Airline tickets through a university travel agency • Registration fee is $50 or more • One night’s lodging if credit card cannot be used to guarantee room • How? • Send Funds Reservation with completed, approved Travel Authorization Form and supporting documents to Accounts Payable • If cost-sensitive, airline tickets through contracted travel agency, Funds Reservation and Travel Authorization Form can be faxed to Accounts Payable

25. Policy 2.1.6Travel Expenses • Purchasing Card Payments (for travel) • Must have travel P-Card authorization • Must adhere to all limits of this policy • Must adhere to your 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 but note that P-Card paid • Keep original P-Card receipts with P-Card log

26. Policy 2.1.6Travel Expenses • Cash Advances • Only for group/team travel; not for individual travel • Not to exceed 80% of projected cost • How? • Responsible UC employee must complete and send Funds Reservation 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 • Exceptions: case-by-case basis by Treasurer’s Office

27. Policy 2.1.6Travel Expenses • Other travel related points: • Overages - if reimbursement is overpaid, excess must be returned immediately • Personal funds • Review guidelines for allowable reimbursements before using personal funds • Do not use to pay for travel expenses of “prospective” employees, students, guests • Only reimbursed after trip and after approved Travel Expense Report submitted

28. 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 and 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

29. Policy 2.1.6Travel Expenses • Other travel related points: (cont.) • Airline club memberships – not paid/reimbursed by university • 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 • University will not prepay personal expenses with intention of being repaid • Personal expenses will not be reimbursed • Cost cannot exceed what trip would otherwise have cost university

30. Policy 2.1.6Travel Expenses • Reporting and Documentation • Expenses must be fully documented • If per diem for meals, itemized receipts for meals not required • Meals charged to a P-Card require original receipts • Supervisor must review Travel Expense Reports before approving

31. Policy 2.1.6Travel Expenses • Rules and Steps • One Travel Expense Report per trip • If overnight, include Travel Authorization Form with Travel Expense Report • Filed within 30 calendar days of trip’s conclusion • Exceptions require approval from dean, vice president or senior vice president (Policy Exceptions Form) • Personal vehicle mileage for same day/incidental travel • Within 30 calendar days, submit mileage expenses on a Travel Expense Report along with a Mileage Log approved by the traveler’s supervisor

32. Policy 2.1.6Travel Expenses • Rules and Steps (cont.) • Receipts • If not P-Card, must show traveler’s name • If lost, traveler’s responsibility to obtain duplicate from vendor • 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 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 • 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

33. 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

34. 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

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

36. Policy 2.1.4Meal Expenses

37. 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

38. 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 • Time, date, place (whether on or off campus), business purpose, attendees (IRS Rules) • Must include clear business purpose • Covers only those individuals necessary

39. 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

40. 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

41. 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)

42. 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)

43. Policy 2.1.4Meal Expenses • Procedure • Include any required documentation and original receipts for overnight travel meals with approved Travel Expense Report or P-Card log • Include any required documentation and original 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

44. Policy 2.8.1Purchasing Card Violations

45. 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

46. Policy 2.8.1 Purchasing Card Violations • Four Roles • Independent Reviewer • Person within department to sample/test transactions for adequate documentation and appropriateness • Cardholder cannot be own Independent Reviewer • Independent Reviewer should NOT be a subordinate to cardholder whenever possible • Card Verifier • Person who verifies validity of cardholder’s purchases and signs cardholder’s bank statement attesting to such

47. Policy 2.8.1 Purchasing Card Violations • Four Roles (cont.) • 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

48. Policy 2.8.1 Purchasing Card Violations • Types of Violations • Abuse, misuse, negligence • No personal gain • Fraudulent use • Deliberate deception for unfair or unlawful gain

49. Policy 2.8.1 Purchasing Card Violations • Abuse, Misuse, Negligent Violations • Examples • Buying from a non-university contracted supplier • Pyramiding - intentionally splitting a purchase to circumvent delegated authority or transaction limits • Failing to maintain original receipts/documentation or obtain approvals • Other breaches of P-Card policies and procedures

50. Policy 2.8.1 Purchasing Card Violations • Abuse, Misuse, Negligent Violations: Administrative Actions • First violation: • Warning letter sent to cardholder and their organizational unit head • Second violation: • Warning letter sent to cardholder, their organizational unit head; copy to Internal Audit • Account suspended for one billing cycle • Third violation: • Letter indicating cardholder can no longer participate in P-Card program sent to cardholder, their organizational unit head; copies to Internal Audit, Purchasing, and the appropriate senior administrator (i.e. vice president, dean or higher) • Card is terminated • Reinstatement of a level-three violator may be authorized following a review and approval of appropriate senior vice president or vice president