Travel and Business Expense Reimbursements

1
Travel and Business Expense Reimbursements

• ACCOUNTS PAYABLE
• GENERAL POLICIES and PROCEDURES

2
The Role Responsibilities of the
Traveler/Employee

• Familiar with Departmental, University and
  funding agency policies and regulations
• Familiar with location of policy guidance
• and tools
• Documents business purpose and justification for
  each expense and trip
• Provides all original receipts, flight itinerary
  and/or all supporting documentation
• Requests reimbursement no later than 120 days (or
  end of fiscal year, whichever is sooner) after
  expenses were incurred

3
The Role Responsibilities of the Processor

• Understands the nature of each expenditure
• Checks the completeness and accuracy of
  accounting
• Inputs expense reports into AP/CAR and selects
  appropriate approvers
• Segregates unallowable expenses to an 8500
  sub-code
• Ensures that all supporting documentation is
  provided

4
The Role Responsibilities of the Designated
Approver (DAF)

• Understands nature of the expense
• Completeness of documentation and accuracy of
  accounting
• Segregation of unallowable" expenses
• Compliance with University policy and funding
  agency regulations
• Absence of a conflict of interest (employees
  duty and responsibility to conduct business
  matters solely for the benefit of the University)
• Appropriateness of expense and availability of
  funding

5
Role Responsibility of a Supplemental Approver

• When approving transactions, Individuals with
  Supplemental Approval authority are in all cases
  responsible to verify
• the business need for the exception
• the propriety of the exception in compliance with
  the Supplemental Approver and Travel Business
  expense policies.
• Individuals with Supplemental Approval authority
  are in all instances ultimately responsible for
  the approval decision.

6
Under no circumstances may an individual approve
his or her own Expense Report or that of a person
to whom he or she reports
DAF/Supplemental Approval Reminder

7
Role Responsibilities of AP

• Process DAF approved expense reports and prepare
  and issue timely payment to the employee.
• Image and archive all original documentation
  related to the reimbursement request.
• Perform audits of these expense reports to
  verify
• Compliance with University reimbursement policy
• Completeness of documentation and accuracy of
  accounting
• Segregation of allowable expenses
• Assist with policy procedure guidance and
  approval of exceptions

8
Compliance

• Compliance is everyones responsibility
• The importance of compliance cannot be overstated
  and remains of the highest importance to the
  University. Consequences of non-compliance
• Decrease in federal funding, donations
• Fines penalties
• Loss of tax-exempt status
• Damage to reputation

9
Compliance Why it is important

• EXAMPLES
• IRS brings end to Oscar swag In settlement,
  stars owe for 2006 but are off the hook for prior
  years Academy says no more gifts.
• Stanford University - In the early 1990s, federal
  investigators looked at Stanfords overhead costs
  for U.S. research and found thousands spent on
  sheets, an Italian wooden commode, and an
  enlarged bed
• U. Tennessee - An audit showed thathad routinely
  failed to turn in receipts, overspent lodging
  allowances, received exemptions to university
  policies
• IRS Recent Revocations of 501(C)3 determinations

10
Compliance

• Foundation of policy
• IRS Regulations
• Reimbursement submission time limit
• Receipts/Proof of payment
• Business purpose
• Federal Regulations
• Segregation of unallowable expenses
• Fly America Act (travel on grants)
• Expectations of a 501(c)3 organization

11
Reimbursement Submission Time Limit

• Employees should submit within 10 days of a trip
  (for travel) or bi-monthly/monthly (for business
  expenses)
• Employees must submit requests for reimbursement
  to their department within 120 days from the date
  the expenses were incurred, or the end of the
  Universitys fiscal year on June 30th, depending
  on which comes first.

12
Reimbursement Submission Time Limit

• Failure to submit within 120 days or at the
  fiscal year-end requires Supplemental Approval.
  Facts and circumstances of the late
• submission must be documented to determine if
  it is taxable.
• Legitimate circumstances (not taxable)
• Prolonged travel with no mechanism to submit
  expenses
• Medical issues or leaves
• Circumstances that are not legitimate (taxable
  beyond 120 days)
• Being busy
• Not having administrative support to prepare TBER
• Not knowing the policy
• If the expenses are not submitted
• within one year, they are always taxable.

13
Documentation Receipts

• Original receipts, invoices, web confirmations,
  payment documentation should be submitted to the
  department for all expenses
• Lost receipts must be documented and require
  Supplemental Approval for
• Expenses over 75
• Meals costing over 25
• Lodging costing any amount

14
Documentation Receipts

• Receipts may take many forms
• Cash register receipt
• Order form
• Web receipt/confirmation
• Detailed receipts must identify
• Date of purchase
• Vendor name
• Itemized list and unit price of the purchased
  items
• Total amount

15
Documentation Proof of Payment

• Proof of payment is required to demonstrate that
  payment was tendered and is often part of the
  receipt
• Proof of payment may be documented by
• Cash Tendered
• Paid
• A zero balance due
• Evidence of debit/credit charge
• Debit or credit card statement

16
Business Purpose

• Written explanation of valid business purpose
  must be documented
• Where appropriate, conference agenda, flyer,
  registration form, or schedule of events should
  be provided.
• Business purpose must be specific Travel to
  Boston to Accounts Payable Network conference to
  speak about CU Accounts Payable Department is an
  appropriately documented business purpose.
  Boston conference is not.
• What did you do where did you do it why is it
  CU business

Business purpose may be obvious to traveler but
not to a third-party!!
17
Compliance with IRS Regulations

• Business vs. Personal Benefit (personal
  inurement)
• This concept may be applied in evaluating
  approval of exceptions to policy
• Reimbursements made by the University must have a
  clear business purpose related to mission and
  substantial business benefit
• If the expense has primarily personal benefit, it
  should not be reimbursed (and would be taxable to
  the employee)
• Personal benefit additional compensation, so
  the IRS gets their share
• Penalties include possible loss of tax-exempt
  status tax penalties against the individual
• This is why many expenses are non-reimbursable
  (suntan lotion, late fees, toothpaste)

18
Compliance with Federal Regulations

• Unallowables or Segregated expenses
• NO government funds are to be used to pay for
  Unallowablesor Segregated expenses, that is,
  expenses characterized by the Federal Government
  as frivolous
• Costs not clearly related to University business
  (e.g. alcohol, flowers, chocolate, entertainment)
• Excess expenses over policy thresholds

19
Compliance with Federal Regulations

• Fly America Act
• Travelers on federal grants must comply with US
  Flag Carrier Rule
• With limited exceptions, travel must occur on US
  air carriers
• Be careful of code sharing, rules are
  restrictive and require issuance through US
  Carrier
• http//www.columbia.edu/cu/opg/policies/usflag.pdf
  

20
Expectations of a 501(c)3 Organization

• The University is supported by
• IRS taxpaying public (tax exemption)
• Donors
• Students
• Granting Agencies
• We must be careful stewards of these funds!
• (Remember the front-page test)

21
Compliance Reminder

• Be mindful of departmental budgetary constraints
  and restrictions on federal funds
• More restrictive policies mandated by
• Specific programs or grants
• Departments or schools
• will take precedence over University policies.

22
Exception Requests to AP

• All policy exceptions not listed as eligible for
  Supplemental Approval, or any requests for
  exception of amounts that exceed the thresholds
  allowable for Supplemental Approval, still
  require a formal written exception request
  approved by a Senior Departmental Officer for
  documentation and evaluation of approval by AP.
• Travelers should understand this is a request,
  not a guarantee
• For guidance, contact Accounts Payable prior to
  expenditure (where possible) or prior to
  submission or reimbursement request
• For example
• Meals in excess of 50 of policy guideline.
• Helicopter service

23
Travel Expense Policy
24
Planning Travel

• Consult the University preferred travel agency
  when possible. Also inform them of any special
  discounts available for conference.
• Use a University preferred vendor.
• http//tp194.purch.columbia.edu/purchasing/contrac
  ts/travelServices.asp
• Check the internet for low fares.
• When in doubt about whether an expense may be
  allowable, contact the AP Service Center with
  questions and/or obtain prior approval from your
  DAF.

25
Travel Expense Policy Airfare

• Should be purchased at the lowest available
  commercial/economy rate (typically 14 days before
  travel)
• Travel on U.S. air carrier is preferred, but not
  required for non-government grants only.
• Carrier selection should be influenced by price
  not by the travelers frequent flyer affiliation.
• Business or first class air travel for flights in
  excess of 5 hours (or if there is a documented
  medical need) requires Supplemental Approval.
• Air tickets, e-tickets, confirmations should show
  dates, price, to/from info and class.

26
Travel Expense Policy Rail/Bus

• Should be purchased at the lowest available
  commercial/economy rate
• For rail, when traveling by Amtraks Acela train,
  a traveler should obtain business class tickets.
• Business or first class for rail travel requires
  Supplemental Approval.
• Tickets should show dates, price, to/from info
  and class.

27
Travel Expense Policy Ground Transportation

• Taxis, private car services, shuttle services
  will be reimbursed
• Rental cars
• Compact or intermediate/mid-size car rate
• If using CU preferred vendor (Hertz) in the US,
  do not purchase the insurance
• Insurance will be reimbursed for all other
  vendors (when Hertz is not available), or using
  Hertz internationally
• Receipts should show dates, price, to/from info
  (and class for rentals).

28
Travel Expense Policy Mileage

• Set by the IRS currently
• .505 per mile and includes
• fuel,
• maintenance
• insurance costs
• In other words, DO NOT request reimbursement for
  gas when requesting reimbursement for mileage.
• Tolls and reasonable parking charges will be
  reimbursed in addition to mileage
• Tickets, fines, vehicle repairs are not
  reimbursable
• Traveler should keep record of miles traveled
  (odometer reading or map quest). This does not
  need to be submitted to AP

29
Travel Expense Policy Lodging

• Threshold for reimbursable lodging expense
• Up to 350 per night for domestic travel
• Up to 400 per night in international locations
• Over- limit expenditures for lodging (by no more
  than 50) require Supplemental Approval
• Anything over 50 requires a formal written
  exception request approved by a Senior
  Departmental Officer for evaluation of approval
  by AP
• If conference held at hotel where price exceeds
  threshold, provide conference flyer
• Detailed hotel bill is required for all lodging
  expenses
• Token gift for stay in private residence (should
  be 100 or less) and long-term rental
  accommodations requires Supplemental Approval

30
Travel Business Expense Policy Business Meals

• Thresholds for reimbursable meal expenses (not
  including tips or tax)
• Up to 25 for breakfast,
• Up to 35 for lunch,
• Up to 50 for dinner,
• Over-the-limit expenditures for meals (by no more
  than 50) requires Supplemental Approval.
• Anything over 50 requires a formal written
  exception request approved by a Senior
  Departmental Officer for evaluation of approval
  by AP
• Original cash register or credit card receipt
  required over 25
• For groups, document the business purpose, names
  of the attendees (if over 10 people, the number
  of attendees), and the relationship of the
  attendees
• This covers
• Individual meals during travel
• Meals involving only CU personnel
• Meals among peers for research collaboration or
  administrative meetings

31
Travel Business Expense Policy Business Meals
Involving External Parties

• Expenses for business meals involving external
  parties (hosted and paid by a University employee
  and attended by business colleagues, donors,
  students, or prospective employees, which result
  in a business benefit to the University) should
  not exceed 100 per person, not including tips or
  tax.
• Document the business purpose, names of the
  attendees (if over 10 people, the number of
  attendees), and the relationship of the attendees
• Over-limit expenditures for meals involving
  external parties (by no more than 50) requires
  Supplemental Approval
• Anything over 50 requires a formal written
  exception request approved by a Senior
  Departmental Officer for evaluation of approval
  by AP
• Original cash register or credit card receipt
  required over 25
• Examples include Fundraising, Recruitment,
  Speaking engagements

32
Travel Expense Policy Meals

• Thresholds are maximum spending limits, NOT per
  diems, and should not be charged as such
• Per Diems
• May be used if allowable in the terms of a grant
• May be used in destinations where local custom or
  culture (remote locations) makes it difficult to
  obtain receipts
• Requires Supplemental Approval
• Per diem rate must be in accordance with the
  governments published per diem rate for MIE
• (http//www.state.gov/m/a/als/prdrn/cl6476.)

33
Travel Expense Policy Other Reimbursements
during Travel

• Meeting and conference fees
• An emergency purchase of supplies, equipment, or
  books under 500 while traveling
• Detail emergency circumstance in Description
  of Expenses
• Greater than 500 requires Supplemental Approval,
  greater than 2500 require approval from
  Purchasing

34
Travel Expense Policy Miscellaneous Reimbursable
Expenses

• Baggage handling
• Storage expenses
• Business office expenses
• Business-related calls and faxes
• Up to 3 personal calls per day of reasonable
  duration
• Currency conversion fees
• Gratuities to porters, bellhops and other service
  personnel
• Internet access
• Laundry or cleaning expenses on trips lasting
  over 5 days
• ATM fees and traveler check fees
• Ground transportation
• Parking and tolls
• Travel change/cancellation fees (if required for
  business needs)

35
Travel Expense Policy Non-Reimbursable Expenses

• Loss or theft of cash advance
• Loss of airline tickets
• Loss or theft of personal fund
• Lost baggage
• Luggage and briefcases
• Personal reading materials
• Medical expenses
• while traveling
• Mini-bar alcoholic expenses
• Movies
• Personal entertainment
• Pet care
• Recreational expenses
• Saunas, massages
• Shoe Shines
• Souvenirs, or personal gifts

• Airline club membership dues or one-day
  admission fees
• Air-phone usage
• Baby-sitting
• Barbers hairdressers
• Clothing (purchase or rental)
• Toiletry items
• More than 3 personal calls each day, unless
  emergency circumstances are documented
• Expenses related to vacation taken before,
  during, or after a business trip.
• Frequent flyer miles
• Helicopter services for local travel/entertainment
  
• Snacks

36
Travel Expense PolicyForeign Currency Conversion

• Expense Reports can only be submitted in U.S.
  dollars, and need an explanation translation of
  foreign receipts and their conversions.
• For conversion, traveler can choose the
  appropriate rate
• Using Oanda.coms Daily default Interbank Rate,
  either the daily rate or average rate during the
  trip
• Actual conversion rate based on cash exchange or
  credit card conversion
• New Currency Conversion Worksheet enables the
  traveler to perform conversions into U.S. dollars
  automatically.
• If the worksheet is not used, the traveler should
  write the conversion amount in U.S. dollars on
  each receipt and submit to the department.
• The traveler should remember to provide
  conversion rate sources to the department. These
  are not required to be submitted to AP.

37
Travel Reimbursements for Non-University
Employees

• University travel policies and procedures apply
  to everyone, even individuals who are not
  University faculty or staff. Visitors should be
  informed prior to visit.
• Expenses of guest lecturer, consultant, or
  prospective faculty member or officer must be
  pre-approved by proper DAF.

38
Travel Reimbursements for Non-University
Employees

• Request reimbursement for a non-University
  individuals travel expenses on a CHECK REQUEST
  with required back-up documentation
• Have individual complete a W-9 form and provide a
  home address
• If foreign person (non-US citizen), upon arrival,
  obtain copy of I-94 or passport with visa entry
  stamp to confirm the person may be reimbursed
  (http//www.columbia.edu/cu/isso/faculty/paymentch
  art.html)
• Attach flyer of event as back-up documentation
• To organize expenses, new non-employee worksheet
  may be used (similar to Expense report format)

39
Travel Advances

• Where required, advances are allowable up to
  500 to cover out of pocket expenses that cannot
  be reasonably charged to a corporate charge card
• Special circumstances may warrant an advance
  over 500

• International travel
• Travel by teams or large groups
• Travel for recruiting purposes
• Funds for program or research start-up or
  short-term operations
• Payments to conference/research participants
• Budget justification should be provided.
• Charge to 2380 sub-code

40
Business Expense Policy

41
Entertainment Expenses

• Business entertainment includes events such as
  (theatre, sporting events, recreational outings)
  that are taken with guests, business colleagues,
  donors, students, employees, prospective
  employees and are directly related to a
  University business purpose and conducted for the
  benefit of individuals outside the University.
• Appropriate University purchasing mechanism
  (direct billing) should be used when possible
• These types of expenses cannot be charged to a
  research grant.
• Entertainment expenses over 1,000 reimbursed on
  a TBER or expenses for business entertainment
  conducted in private homes require Supplemental
  Approval.

42
Employee Entertainment Expenses

• The University strongly suggests that employees
  first consider funding these with their own
  contributions.
• However, Departments may choose to celebrate
  personal occasions as an expression of employee
  appreciation.
• What to consider
• Fair consistent application among employees
• Budgetary constraints
• The front page test- will it seem appropriate
  to others (e.g., donors, taxpayers) that the
  University pay for this event?
• Entertainment expenses for employee events
  reimbursed on a TBER over 500 require
  Supplemental Approval.

43
Employee Entertainment Expenses Reimbursable
Business Occasions

• Dissertation defense
• Promotion
• Welcoming a new hire to the University
• Leaving the University
• Years of Service/Retirement
• Graduation of an employee/student
• Awarding of tenure
• Publication
• Event or performance opening
• Sabbatical
• Recognition of achievement, departmental goal,
  honor, or thank you

44
Employee Entertainment Expenses Reimbursable
Non-Reimbursable Personal Occasions for Employee
Appreciation

• Reimbursable Employee entertainment
• Departmental celebration of a holiday
• Collective celebrations of birthdays
• Congratulations on business related individual
  achievement
• Non reimbursable Employee entertainment
• Showers for birth or adoption of baby
• Engagements, weddings, anniversaries,
• Individual birthday celebrations
• Congratulations on personal related individual
  achievement

45
Entertainment Expenses Documentation

• The original receipts/invoices for events must
  include
• The date and location
• The items purchased
• The total amount of the expense
• Proof of payment
• Focused purpose of business event (such as
  recruitment event at 21 Club for assistant
  professor of psychiatry, or football game with
  potential donor) must be documented.
• Vague, unfocused purposes (such as to foster
  collaboration) should be avoided.
• List of attendees (or a , if there are more than
  10 names), and the attendees relationship to the
  University.

46
Entertainment Expenses Clothing

• Rental of Clothing for an Event
• Event must require attire that is more formal
  than standard business attire.
• The employees attendance at the event is
  mandatory.
• We suggest the rental of clothing be approved in
  advance by the department, and will only be paid
  when Supplemental Approval is provided.
• .

47
Gifts to Employees

• Gifts should generally not be given to employees,
  additional compensation is the proper mechanism
• Token gifts may be given for
• Exemplary business performance
• Gifts, prizes, awards of 100 of less
• Non-cash gifts of 100 or less are reimbursable
  and non-taxable.
• Cash or cash equivalent (e.g., gift certificates)
  may be given, but is always considered taxable by
  the IRS, and reported on the employees annual
  form W-2.
• Anything over the threshold of 100 (by no more
  than 50) for business performance will require
  Supplemental Approval

48
Gifts to Employees

• Years of Service/Retirement
• Gifts, prizes, and awards of 400 or less
• Non-cash gifts of 400 or less are reimbursable
  and non-taxable.
• Must be awarded as part of a meaningful
  presentation (presentation, ceremony or
  celebration)
• Can not be given before the 5th year of service,
  and with at least 5 years in between each length
  of service award
• Cash or cash equivalent ( e.g., a gift
  certificate) may be given, but is always
  considered taxable by the IRS, and reported on an
  employees annual form W-2.
• A years of service gift to an employee with a
  value
• greater than 400 (by no more than 50) will
  require Supplemental Approval.

49
Gifts to Employees Reimbursable Non
Reimbursable De Minimus gifts

• de minimus gifts for occasions
• Token non-cash gift (flowers, fruit basket) of
  100 or less
• Cash or gift certificates are taxable
• Anything over the threshold of 100 (by no more
  than 50) for de minimus gifts will require
  Supplemental Approval
• Reimbursable occasions
• Birth or adoption of a child
• Funeral, illness or hospitalization
• Congratulations on a business related achievement
• Non-reimbursable occasions
• Engagements, weddings, anniversaries
• Holidays
• Individual Birthdays
• Congratulations on other personal achievements.

50
Gifts to Employees Reimbursable De Minimus
gifts

• Sympathy gifts
• If a contribution is requested in lieu of
  flowers, only a Dean, Associate Dean, VP or
  Senior Financial Officer can approve.
• Considerations include fairness to competing
  interests, careful consideration of the mission
  of the organization to which CU donates to
• A copy of the 501C3 exemption should be
  requested.

51
Gifts to Employees Documentation Required

• The original receipts/invoices for gifts must
  include
• The date
• The items purchased
• The total amount of the purchase
• Proof of payment
• The employees name, home address and Social
  Security number for reporting to Payroll (for
  gifts with a value in excess of 100 or that do
  not meet the IRS exemption for years of service
  gifts).
• The approved purpose of the gift must be clearly
  documented.

52
Gifts to Non-Employees

• The fair market value of gifts of cash or
  non-cash items given to non-employees (e.g.
  donors, alumni) should not exceed 600 in a
  calendar year.
• In rare circumstances where gifts to
  non-employees exceed 600, it becomes taxable
  income to the non-employee and is reported on a
  Form 1099.
• Anything over the threshold of 600 (by no more
  than 50) for gifts to non-employees requires
  Supplemental Approval.
• Gifts to vendors are not reimbursable.

53
Gifts to Non-Employees

• Gifts of cash to non-employees (e.g., honorarium)
  should be processed on a Check Request, and not
  reimbursed on a Business Expense Report. These
  gifts to foreign persons (non-resident aliens)
  must be processed through HRPC to comply with IRS
  and Dept. of Homeland Security regulations.

54
Requesting Reimbursement Reminders

• Remember to segregate expenses Unsegregated
  Expenses in Column A, Segregated Expenses in
  Column B
• Verify payees correct home address is in system
• Check may not be received if sent to incorrect
  location
• We recommend DIRECT DEPOSIT
• When submitting report, with attached
  documentation
• NO STAPLES
• Do not TAPE invoices together (please tape small
  receipts to one side of a piece of paper)
• Use paper clips (as few as possible)
• List in chronological order

55
Supplemental Approver Launching February 1, 2007

• The Travel Business expenses policies apply to
  employees, students and non-employees in all
  Schools and Departments around the University,
  and should be complied with.
• However, from time to time, certain business
  needs and special situations (i.e. nature of
  business, location of purchase) may necessitate
  departure from the guidelines provided by policy.
• Whats New
• Certain common exceptions to policy no longer
  require an exception request to AP for approval.
  
• AP will rely on approval from the Supplemental
  Approver in the department.

56
Supplemental Approver

• How does this work?
• Individuals submitting a reimbursement request
  must still request approval of the exception and
  should document circumstances surrounding the
  exception to policy.
• Supplemental Approver would evaluate the
  situation either approve or deny.
• AP will rely on this approval when reviewing the
  voucher.

57
Who are Supplemental Approvers

• Supplemental Approvers may be a
• Dean
• VP
• Associate Dean
• Senior Financial Officer
• A Supplemental Approver is someone who is
• responsible for the administrative and financial
  leadership of their academic or administrative
  unit
• can determine the appropriateness of expenses and
  exceptions in compliance with policy.
• This will vary by School or Department, depending
  the size and organizational structure.

58
Role Responsibility of a Supplemental Approver

• When approving transactions, Individuals with
  Supplemental Approval authority are in all cases
  responsible to verify
• the business need for the exception
• the propriety of the exception in compliance with
  the Supplemental Approver and Travel Business
  expense policies.
• Individuals with Supplemental Approval authority
  are in all instances ultimately responsible for
  the approval decision.

59
Circumstances that require Supplemental Approval

• Transportation/Travel
• First or business class travel by air (flights in
  excess of 5 hours or medical need).
• First or business class travel by rail/bus (not
  including Amtraks Acela train).
• Lodging exceeding the thresholds (350 per night
  domestic and 400 (US dollars) per night
  international) by no more than 50. (525
  domestic, 600 international)
• Appreciation given for lodging in a private
  residence.
• Short-term rental accommodations.
• Reimbursed travel extended beyond the minimum
  days required for business purposes.
• Required travel by an employees spouse,
  significant other and/or dependent (Note May be
  taxable)

60
Circumstances that require Supplemental Approval

• Meals
• Meals exceeding the per meal thresholds (25
  breakfast, 35 lunch, 50 dinner) by no more than
  50. (37.50 B, 52.50 L, 75 D)
• Meals (fundraising, recruitment, speaking
  engagements) involving external parties exceeding
  the per person threshold of 100 (excluding tips
  and taxes) by no more than 50. (150 per person)
• Use of per diems on non-grant accounts.
• Meals that require attendance by an employees
  spouse, significant other, and/or dependent.
• Expenses for meals or entertainment conducted in
  private homes.

61
Circumstances that require Supplemental Approval

• Entertainment
• Expenses for meals or entertainment conducted in
  private homes.
• Entertainment expenses to be reimbursed in excess
  of 1,000.
• Rental of clothing for an event.
• Entertainment expenses for employee events in
  excess of 500.

62
Circumstances that require Supplemental Approval

• Gifts
• A business performance or de minimus gift to an
  employee exceeding the threshold of 100 by no
  more than 50. (150) Note Item is taxable
• A years of service/retirement gift to an employee
  exceeding the threshold of 400 by no more than
  50. (600) Note Item is taxable
• A gift to a non-employee exceeding the threshold
  of 600 by no more than 50. (900) Note Item is
  taxable

63
Circumstances that require Supplemental Approval

• Other
• Purchases of emergency supplies, books, equipment
  in excess of 500.
• Issuance of a second travel advance before the
  first one has been reconciled.
• Reimbursements submitted more than 120 days after
  the date of the expense or after the end of the
  fiscal year (whichever is sooner). Please note
  that supporting documentation must include
  legitimate circumstances contributing to late
  submission in order to evaluate whether this is a
  taxable event.
• Missing receipt for expenses of 75 or more (25
  for meals), all lodging. Please note that
  supporting documentation must include missing
  receipt documentation to comply with IRS
  standards for reimbursement.

64
Supplemental Approval Reminder

• As a reminder
• All individuals requesting reimbursement should
  be in compliance with the Universitys Travel
  Business expense policies, effective October 1,
  2006. Items eligible for Supplemental Approval
  are still exceptions however, they are being
  approved by a departmental officer closer to the
  situation, rather than AP.
• Supplemental Approval in no way raises the
  thresholds of what is allowable or changes the
  segregation.

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Processing a voucher requiring Supplemental
Approval

• Role Responsibilities of Processors of Travel
  Business Expense transactions
• Reviews voucher to identify common policy
  departures that require Supplemental Approval
• Identifies this in AP/CAR for review by the
  Supplemental Approval
• Resources
• List maintained in AP/CAR
• List on AP website
• Policy documents
• Training manual

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Processing the voucher in AP/CAR

• Upon selecting Designate Approver, a pop up box
  will appear asking whether the voucher requires
  Supplemental Approval.

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Processing the voucher in AP/CAR

• To select one or more reasons, double click on
  the small box on the left hand side, which will
  then place a check mark in the box (later will
  change to an asterisk as you select more than
  one). Once you have selected all reasons, click
  Close.

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Processing the voucher in AP/CAR Selecting an
Electronic SA

• Select the individual who is the appropriate
  Supplemental Approver from your department.
  Click Continue to assign the DAF approver of
  the voucher.

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Processing the voucher in AP/CAR

• Select the individual who is the appropriate DAF
  Approver from your department. Depending on the
  departmental structure, the DAF approver may be
  the same individual selected for Supplemental
  Approval or may be different. Click Continue.

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Audit Review Approving an Invoice Requiring
Supplemental Approval

• If upon audit of the voucher, our Audit Review
  specialists identify that Supplemental Approval
  was not appropriately selected (i.e. either was
  not identified at all, a reason is missing, or
  one is incorrectly included), they will put the
  voucher on hold to coordinate with the
  department.
• Obtain the approval from the appropriate
  Supplemental Approver and image this as part of
  the voucher.
• A further enhancement will be made to AP/CAR to
  allow the Audit Review specialist to edit and
  select the supplemental approval reasons so this
  is tagged and included in any reporting.

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For more information

• AP website http//www.finance.columbia.edu
• AP Service Center
• [phone]
• apservice_at_columbia.edu

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