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  3. TRAVEL • Employee Responsibility Travel policies and procedures at NCA&TSU require compliance with state policy, state law, and federal law. An employee traveling on official state business is expected to exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business and expending personal funds. Penalties, cancellation fees, costs relating to flight changes, excess costs, circuitous routes, delays, or luxury accommodations and services unnecessary, unjustified or for the convenience or personal preference of the employee in the performance of official state business are prohibited.

  4. TRAVEL contd. • Authorizations must be completed and approved prior to the first day of travel. The travel workbook is posted on the University’s website and contains forms and instructions to help in completing the forms. • There is a travel authorization form/travel advance request form that should be completed prior to traveling, and an expense reimbursement form to be filled out after travel is complete. Always attach the authorization form to the expense reimbursement form. • Use original signatures. Self approval is unacceptable. • Requests for reimbursement shall be filed within 30 days after the travel period ends for which the reimbursement is being requested. (See Accountable Plan) • Cash advances and prepayments are generally not the policy of the University. Exceptions may be made under conditions identified in the OSBM and University policies if a promissory note is signed with the request for the prepayment/advance. If a cash advance is granted to faculty/staff for the benefit of a student then they must accompany the student during travel.

  5. Travel contd. Accountable Plan NCA&TSU policies regarding reimbursement/allowances for travel expenses incurred during the course of business meet the IRS accountable plan requirements. To be an accountable plan, the reimbursement or allowance arrangement must include all of the following rules. • Your expenses must have a business connection — that is, you must have paid or incurred deductible expenses while performing services as an employee. • You must adequately account to your employer for these expenses within a reasonable period of time. • You must return any excess reimbursement or allowance within a reasonable period of time. (An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. ) Employee meets accountable plan rules.   If you meet the three rules for accountable plans, your employer should not include any reimbursements in your income in box 1 of your Form W-2. See IRS Pub. 463

  6. Travel contd. • Accountable Plan Travel Expenses Paid for Honorarium Recipients Honorarium - A one time gratuitous payment (less than $600) given to a (professional) person outside the University community for recognition or services provided in a usual academic activity for which fees are not required and do not require contract agreements to be negotiated or formalized. It is an expression of thanks from NC A&T State University and is not negotiated with the recipient. Travel Expenses - If travel expenses are paid, they must be paid directly to the hotel and airline/common carrier on behalf of the guest provided they are in accordance with University Travel policy which is governed by the State Travel policy. University prepaid travel expenses for hotel and common carrier requires the completed form TVL-1(Travel Authorization Request) attached to the “Authorization for Honoraria Service Payment” request form HSRQ. (Reminder: Original receipts/boarding passes are required at the end of travel.)

  7. Travel contd. • Accountable Plan Reimbursed lodging, meals, and transportation costs associated with employee educational expenses does not necessarily meet the criterior for business travel and may be reported as taxable income. IRS Publication 15-B

  8. TRAVEL contd. • A cash advance (when necessary) is available for justified costs above $100. • Advances/prepayments should be related to business travel only. Amounts given to students for academic requirements are considered awards. More information is available under the “Student Payments” policy and “Study Abroad” process. • Registration fees prepaid with a departmental procurement card is strongly recommended. If you choose to pay at the conference, you will be reimbursed from the official registration receipt submitted with the travel expense report after the trip is complete. • Written explanation of valid business purpose must be documented. Please attach a copy of the agenda for the conference or seminar attended. Business purpose must be specific: “Travel to Atlanta to speak at the Center for Disease Control Conference” is an appropriately described business purpose. “Atlanta Conference” is not. (Business purpose may be obvious to traveler but not to a third party.)

  9. TRAVEL contd. Mileage • Mileage for business travel may be reimbursed for costs associated with travel to an out of town destination. Local mileage (and distances within 35 miles) including distances traveled within the destination city will not be reimbursed except mileage to the airport/depot to board a commercial carrier. The business standard mileage rate set by the Internal Revenue Service (50 cents per mile effective January 1, 2010) will be paid. • All mileage reimbursements request must be supported by Mapquest or a navigational software document denoting the number of miles.

  10. TRAVEL contd. • No reimbursement will be made for rental insurance purchased because state employees are covered under the State’s auto insurance program. However, reimbursement for automobile rental insurance will be permitted for individuals engaged in state business during travel to international destinations. • Insurance for rental cars secured by state employees are covered under an umbrella policy by Traveler's Insurance Company. The policy is secured by the Department of Administration. The State has a contract with Enterprise and Triangle companies and every effort should be made to use those rental companies. • In the event of an accident, call: Traveler's Insurance Company 800-238-6225 Policy number is TRJCAP 104T6800 University's Department Location Code is 6070. More information is available at:

  11. TRAVEL contd. • A state employee shall be reimbursed the business standard mileage rate set by the Internal Revenue Service when using their personal vehicles for state business when the round trip does not exceed 100 miles or when a state-owned vehicle is not available. However, if a state employee chooses to use a personal vehicle when a state-owned vehicle is available, all departments and agencies will reimburse the employee at the motor fleet rate for mileage of 30 cents per mile. • Lodging Lodging arrangements and any required deposits are the responsibility of the traveler. Expenses will be reimbursed after the trip. Many hotels will accommodate University employees at the “state employee/government rate.” Always ask.

  12. TRAVEL contd • Frequent Flyer Miles Frequent flyer miles earned by a state employee while traveling on state business at state expense are the property of the state. Frequent flyer miles accumulated by an individual state employee during previous state business trips should, to the extent possible, be used by the state employee accumulating the frequent flyer miles while traveling on future state business trips.

  13. TRAVEL contd. • Transportation by Common Carrier Reimbursement for air, rail, or bus fare is limited to actual coach fare, substantiated by receipt. • Authorization for Lodging The travel must involve a destination located at least 35 miles from the employee's regularly assigned duty station or home, whichever is less, to receive approved reimbursement. "Duty station" is defined as the location where the employee is assigned. The designation of an employee's home as the duty station requires the approval of the department head.

  14. TRAVEL contd. • Reimbursement for lodging in an establishment that is being rented out by a third party or an establishment treated as an apartment building by state or local law or regulation is not allowed unless approved in advance by OSBM and the budget officer. Such requests must provide evidence of savings to the state. All details regarding the arrangement including the amount to be charged, length of stay, contact information and the signed rental agreement must be presented to the budget officer and OSBM to receive reimbursement.

  15. TRAVEL contd. • State rules and guidelines shall take precedence over federal guidelines governing the use of federal grant funds, unless specifically exempted by OSBM in advance.

  16. TRAVEL contd. Penalties and Charges Resulting from Cancellations • Penalties and charges resulting from the cancellation of travel reservations (including airline, hotel, or other travel reservations and conference registration) shall be the department's obligation if the employee's travel has been approved in advance and the cancellation or change is made at the direction of and/or for the convenience of the department. • If the cancellation or change is made for the personal benefit of the employee, it shall be the employee's obligation to pay the penalties and charges. • However, in the event of accidents, serious illness, or death within the employee's immediate family or other critical circumstances beyond the control of the employee, the department may pay the penalties and charges.

  17. TRAVEL contd. • Prospective Professional Employees Requests for travel reimbursements to interview candidates must include the (approved) invitation for interview letter identifying all reimbursable items to the interviewee. Refer to Section 5.7.2 NC OSBM. • Travel Expenses Relating to Contractual Services Business expenses associated with contract services are a part of the total cost of the service. Travel and other related expenses of the contractor must be included in the budgeted amount of the personal/professional service paid from a 71990 or 73900 family account.

  18. TRAVEL contd. Travel Reimbursements • Approved travel authorizations must accompany all travel expense/reimbursement requests. • Read all instructions and forms contained in the travel workbook located on the Business and Finance website, under forms. • Travelers may receive reimbursements by direct deposit if authorization for direct deposit form is completed and submitted to the University Accounting Office.

  19. TRAVEL contd. • Tips and Gratuity Reimbursable gratuity or tips must be considered reasonable for items that are not already covered under subsistence. Excessive tips will not be reimbursed. A reasonable tip would be one that a prudent person would give if traveling or conducting personal business and expending personal funds. • For further guidance, the following information is provided when calculating a tip: • Airports: Baggage Handling/Skycaps = no more than $2 per bag; • Shuttle Drivers = no more than $2 per bag. Parking/Auto Related Valets = $2 per car when collecting the car

  20. TRAVEL contd. For Additional Travel Information • North Carolina Budget Manual • NCA&TSU Business & Finance

  21. PROCUREMENT CARD • The procurement card should be used for making small dollar purchases. • The cardholder is responsible for obtaining original receipts and all supporting documentation to be forwarded to the University’s Accounting Office after each month's closing. • The cardholder must perform a monthly review and reconciliation of all purchases and allocate the charges in the Bank of America WORKS system. • Monthly statements close on the 24th of each month all allocations should be completed before this closing. • Our billing cycle runs from the 25th of the prior month through the 24th of the current month. Charges made during this period are reflected on the cardholder statement and should be included in the monthly reconciliation. The reconciliation log is due on the 5th of each month and late on the 10th. • PCard purchases follow the same budget guidelines and approvals and are required as in other procurement activities.

  22. PROCUREMENT CARD The following limits have been assigned to pcards: • 1. Single transaction limit of $2,500. (Funds must be available in budget) • 2. Number of transactions per day or per month is unlimited at this time. • 3. Monthly/daily card credit limit is $5,000. (Funds must be available) • 4. Fraudulent or willful misuse of the card, including willful use of the card to make personal purchases even if you intend to reimburse the University, may result in disciplinary action, up to and including termination of employment.

  23. PROCUREMENT CARD The procurement card SHALL NOT TO BE USED FOR the following: • Cellular phones/pagers and related monthly charges • Personal Memberships • Office or Lab furniture and equipment • Computers, laptops, netbooks nor PDA’s (electronic equipment) • Personal Convenience Items such as briefcases, coffee makers, etc. • Goods or services for Personal Use • The card may be used for Food/Refreshments/Catering Services with prior approval from the Procurement Card Administrator. Funding restrictions may apply. • The card may be used for Travel and Entertainment related expenses only with prior approval from the Procurement Card Administrator. Funding restrictions may apply. • The card may be used for Software and Printers with prior approval from the DoIT Office.

  24. PROCUREMENT CARD • PERSONAL RESPONSIBILITY: Purchases charged against University funds that are not made in accordance with policies will be the PERSONAL RESPONSIBILITY OF THE INDIVIDUAL PLACING THE ORDER, as the University will not assume any financial responsibility.

  25. PROCUREMENT CARD • A) Follow proper internal procedures specific to your department for determining that a purchase is required and authorized. (The same as for a purchase request) • B) Determine whether the procurement card is the most appropriate tool to use for the purchase. - Restricted item, over the $2,500 limit etc. - Do not split an order to circumvent the $2,500 limit. • C) Determine that the total amount of the purchase including shipping, handling, postage, freight, insurance, etc., does not exceed either the $2,500 limit. If the limit is exceeded, the transaction will automatically be refused by the bank and the purchase will not proceed. • D) Determine that the price quoted is the best you can obtain. • E) Obtain an original receipt at the time of purchase or pick-up. If an item is shipped, the packing slip must be kept. All original receipts and other paperwork must be forwarded each month to the procurement card program administrator as part of the reconciliation process. • F) Remember to give the supplier your name, department, phone number, and complete delivery instructions. All purchases must be shipped directly to the campus address or Central Receiving.

  26. PROCUREMENT CARD PURCHASES BY PHONE, FAX, OR MAIL • A) When you place the call, state that you are calling from North Carolina A&T State University and that you will be making your purchase on a procurement card. • B) Emphasize that the University is a Tax Exempt Institution (NC A&T Tax Exempt number 400045). Also record the name and address of the company, item(s) ordered, and cost. • C) Give the supplier your name, delivery address, phone number, and complete delivery instructions. • D) Request that a receipt and/or packing slip that shows DOLLAR AMOUNTS be included with goods. Retain this with your purchase log. • FAX - Follow any applicable steps from the above instructions. Retain a copy of the fax, and also fax confirmation for your records. Do not mail a copy of the order to the vendor because this increases the chance that the order will be duplicated. If the company requires the original be sure to clearly mark it "CONFIRMATION OF FAX ORDER, DO NOT DUPLICATE.” • MAIL - Follow any applicable steps from the above instructions. Retain a copy of the order for your records, and request that a receipt be sent to you for your records.

  27. PROCUREMENT CARD • The pcard is to be used for small dollar purchases under $2,500. • There is a $2,500 single transaction limit and the order should not be split to circumvent this limit. • Reconciliation Packets are due on the 5th of every month and are late on the 10th. • All packets must be in the following order: • Transaction log (included for original signatures) • Report reconciliation (downloaded from WORKS) • Statement (mailed or downloaded copy) • All receipts – whether charge or credit • Food or other approval letters • Stapled or affixed in the upper right hand corner

  28. PROCUREMENT CARD DISPUTE OF STATEMENT ITEMS • Purchases appearing on the monthly statement from the bank may be disputed up to thirty days from the date of the statement. • If a charge is not recognized by the cardholder or some other problem arises, the cardholder should contact the procurement card program administrator at 334-7555. You should also contact the bank to discuss the details. • If you have a dispute and are not satisfied with the outcome, please contact the procurement card program administrator.

  29. PROCUREMENT CARD • Copy small receipts on 8 1/2 x 11 paper. Attach original receipts by taping the top and bottom. Do not tape over any writing on the receipt as the ink will fade. • Do not use your card to pay off balances on statements. We need original bills for each item. • Do not use pcard to pay for scholarships. • Sign off often (in WORKS) • There is a pcard training available monthly on policies, procedures and WORKS. We also offer one-on-one training on Wednesdays. Please contact Jeanne Reyes to sign up (

  30. PROCUREMENT CARD • If someone in your area is going on vacation or medical leave, please inform PCard Administrator Wendelin Douglas ( or PCard Coordinator Jeanne Reyes ( • Your card remains the property of the bank and must be surrendered immediately upon transfer of assignment, leave, termination of employment or upon the request of either your supervisor or the procurement card administrator/coordinator. • Note: Supervisors are required to report any cardholder that has a transfer of assignment, leave in excess of one month or termination of employment to the procurement card program administrator/coordinator immediately. • If someone in your office is doing the majority of the purchases, then the card should be in their name, otherwise we are exposed to liability.

  31. PROCUREMENT CARD • Purchases from Contracts and Grants accounts must strictly adhere to all A-21, A-110 and other agency guidelines. These guidelines may restrict the purchase of specific items. • Individual grant agencies may also be more restrictive and may not allow certain purchases. It is the cardholder's responsibility to be aware of the rules and guidelines applicable to each account. Funds must be available before charges are made (if allowed). • Contracts and Grants accounts cannot be used after the grant ending date as with other purchases. The same rules apply as for normal requisitions. The cardholder will be held liable if funds are not available. Failure to follow these guidelines are grounds for revocation of the card.

  32. PROCUREMENT CARD Delinquent Reconciliation Logs: • Approved reconciliation logs with all documentation are to be submitted to the PCard Coordinator in the Accounting Department by the 5th of each month following the close of the billing cycle and are late on the 10th. Any reconciliation not received by the due date, will prompt an email to the cardholder and supervisor via email. Reconciliation logs not received by the 10th of the month will result in card suspension with the cardholder and Supervisor/Chairperson/Department Head notification. • First Offense- Immediate reinstatement after receipt of delinquent Reconciliation Log and documentation. • Second Offense- Reinstatement after receipt of delinquent reconciliation packet AND a written memo from the department head explaining the reason for the discrepancy which caused the delay/suspension and steps to prevent it from happening in the future. • Third Offense – Card privileges will be suspended and subject to cancellation.

  33. PROCUREMENT CARD The following infractions will result in the suspension/termination of the card: • Willful misuse of the card, or inappropriate expenditures • Two contacts to request delinquent receipts, monthly reconciliations (purchase log) or signed statements. • Two instances of splitting transactions to circumvent transaction limits. • Two instances of noncompliance with state contract terms (Note: State contract terms legally bind the institution. State contract terms may be viewed at • In-activity of the procurement card in excess of one year.

  34. Common pcard issues • Not allocating in WORKS timely (on or before the 24th) • Incorrect account coding • Not signing off • Failure to add descriptive information in comments section • Missing receipts • Lack of original signatures (people signing on behalf of someone else). • Order of paperwork • Not providing written approval for certain items (for example – food)

  35. Some Unallowable Purchases • Food (except with written permission) • Flowers (on state funds) • Gas • Charges to Temporary Agencies • Recurring charges • Payment for personal services

  36. Student Payment and Reporting Purpose: To provide guidelines for classifying payments made to students as scholarships, salaries/wages, consultant fees and reimbursements, ensuring compliance with Internal Revenue Service (IRS) reporting and withholding requirements. • In addition to the proper classification of student payments, the appropriate procedures for processing these payments will be covered. • NOTE: There may be additional requirements when making payments to nonresident aliens.

  37. Student Payment and Reporting Many payments to students, graduate students, non A&T enrolled students and others are commonly referred to as stipends. The term stipend does not provide adequate information for specific guidance in determining the appropriate procedures for processing these payments and for determining appropriate IRS reporting and withholding requirements. Therefore, these payments must be more specifically classified as scholarships, salaries/wages, consulting fees or reimbursements.

  38. Student Payment and Reporting • Scholarships (also known as Fellowships): The IRS regulations regarding the definition of scholarships is contained in Section 117 which states: • Section 117(a) GENERAL RULE. - Gross income does not include any amount received as a qualified scholarship by an individual who is a candidate for a degree at an educational organization described in section 170(b)(1)(a)(ii). • Section 117(b) QUALIFIED SCHOLARSHIP. - For purposes of this section: • (1) IN GENERAL. - The term "qualified scholarship" means any amount received by an individual as a scholarship or fellowship grant to the extent the individual establishes that, in accordance with the conditions of the grant, such amount was used for qualified tuition and related expenses. • (2) QUALIFIED TUITION AND RELATED EXPENSES. - for the purposes of paragraph (1), the term "qualified tuition and related expenses" means -

  39. Student Payment and Reporting • (A) tuition and fees required for the enrollment or attendance of a student at an educational organization described in section 170(b)(1)(A)(ii), and • (B) fees, books, supplies, and equipment required for courses of instruction at such an educational organization. • Section 117(c) LIMITATION. - Subsections (a) and (d) shall not apply to that portion of any amount received which represents payment for teaching, research, or other services by the student required as a condition for receiving the qualified scholarship or qualified tuition reduction.

  40. Student Payment and Reporting • The University interprets these IRS regulations as follows: • A scholarship must possess two characteristics: • The student (as opposed to the University) primarily benefits from the activity performed, AND • Teaching, research, or other services cannot be required as a condition to receive payment. The University classifies teaching and research in two ways: • Training related - any teaching or research associated with a training grant. • Service related - any teaching or research which is not involved in training is service oriented and Section 117(c) does apply. • If a payment is made to a student who primarily benefits from the teaching or research required for a training grant, then the payment should be treated as a scholarship. If a payment is made to a student who primarily benefits and is required to perform teaching or research services, then the payment should be treated as salaries/wages.

  41. Student Payment and Reporting • NOTE: Whether a payment is made directly or in the form of a reimbursement for books, supplies, room, board or travel, it should be treated as a scholarship as long as it meets this definition. • Primary Beneficiary: A student is considered to be the primary beneficiary if the emphasis of the duties performed is to provide training rather than to render services in return for payment. Several factors must be considered when determining the primary beneficiary. For example, if the desired outcome of the project is the training of the individual student, rather than useful results, then the student would be the primary beneficiary. The rate of pay is another consideration. If the department would hire another individual at a higher rate than the student to perform the same tasks and not provide training, then the student could be the primary beneficiary.

  42. Student Payment and Reporting • Salaries/Wages: All remuneration for services performed by an employee for his employer, including the cash value of all remuneration (including benefits) paid in any medium other than cash. If salaries/wages are paid to an employee, applicable income and FICA taxes must be withheld. "Employer/employee relationship" as defined below should be used as a basis for determining whether an individual should be classified as an employee. Clarifications regarding this definition should be directed to Human Resources/Payroll for a ruling. • Consulting Fees: Payment for services made to independent contractors. An independent contractor is an individual who performs services for the University, but whose relationship with the entity is not an "employer/employee relationship" (defined below). Payments for fees made to independent contractors must be reported to the Internal Revenue Service on Form 1099 which are processed and recorded in the Banner Finance Module.

  43. Student Payment and Reporting • In general, if an individual is subject to the control or direction of another merely to accomplish a result, but not as to the details and means of accomplishing the result, he is an independent contractor. That is, the entity requesting the service has the right to tell an independent contractor what to do, but not how to do it. • Employer/Employee Relationship:An employer/employee relationship exists when a worker’s actions are subject to the direction and control of the University with regard to the results of the work, and the details of when, where and how the work is to be done. Some of the characteristics usually implied in an employer/employee relationship include permanency of employment, maintenance of specific work hours, compensation by the hour, week, month, or year (rather than by the "job"), the right of the employer or employee to terminate employment without incurring liability, and the furnishing of tools, equipment, materials and a place in which to work (none of these characteristics stand alone in determining the relationship). The IRS normally presumes that the worker is an employee and thus the University has the responsibility to prove otherwise.

  44. Student Payment and Reporting • Student (as defined for this policy only): An individual enrolled in course(s) for credit. Students will have all scholarship payments applied to their individual student account (in Banner Student System). • Non-University Student: Individuals who are participating in study or training at the University who do not have a (Banner) student account. • Postdoctoral Fellow: A person who has received a doctoral degree and is pursuing additional training in research. • Expense Reimbursement: Payment for expenses incurred on behalf of the University. Expense reimbursements are applicable for employees, consultants, and students. Students can be reimbursed either for business or school related activities (for example, text books). All school related reimbursements should be treated as scholarships and must be submitted to/approved by the Student Financial Aid Office. • Travel reimbursements can be either school related or business related, depending on the purpose of the event and the student’s participation in the event.

  45. Student Payment and Reporting • (a) If the students provide services that primarily benefit NCA&TSU, the expenses are business related. • Related services include submittal and/or presentation of a research paper, participation in round table discussions, or sharing knowledge or technology by other means. • Example: A student travels to attend an academic conference, and presents her research paper on behalf of the University. As her contribution to the conference is affiliated with the University, she is providing services that primarily benefit the University. Therefore, the expenses are business related. • (b) If the students do not provide any services, or provide services that primarily benefit the students themselves, then the travel expenses are school related.

  46. Student Payment and Reporting • Example 1: A student travels to attend a workshop for educational purposes related to his own study. The student does not provide any service or contribute to the workshop on behalf of the University. Therefore, his travel expenses are school related. • Example 2: A student travels to attend a training event/program, and she presents and participates in the group discussion on the subject matter. As her participation is primarily for her own training, therefore primarily benefits herself, her travel expenses are school related. • If the department considers the travel expense to be business related, documentation detailing the purpose of the event and the student’s involvement must be included with the travel documents to be submitted for reimbursement. If it is determined that the travel expenses do not qualify as business related, the reimbursement must be treated as school related and processed via the Student Financial Aid Office.