1

1
Travel and Business Expense Reimbursements

• ACCOUNTS PAYABLE
• GENERAL POLICIES and PROCEDURES

2
Issues with the Existing Policy

• Dated IRS information spending thresholds
• Lack of clarity around policy procedures
• Lack of knowledge of current policy
• Lack of customer friendly tools quick reference
  guides

3
Why We Have a New Policy(Effective beginning
October 1, 2006)

• Clearer, comprehensive, updated guidelines,
  communicated and easily accessible, intend to
• Inform decision making by travelers/employees and
  their departmental processors and approvers
• Reduce volume of exceptions
• Decrease processing time
• Reduce frustration with reimbursement
• process

4
Key Areas of Change

• Two companion policies that detail reimbursable
  expenses
• Travel Expense Policy
• Business Expense Policy (includes entertainment,
  gifts)
• Additional, descriptive guidance
• Entertainment, Celebrations, Gifts
• IRS federal compliance issues

5
Key Areas of Change

• Updated thresholds for meals, hotels, gifts to
  employees, missing receipt documentation, travel
  advances
• Introduction of new forms and worksheets
• Quick reference guides
• Supplemental Approval

6
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

7
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

8
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

9
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.

10
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.

11
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

12
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

13
Compliance

• Compliance is everyones responsibility
• The importance of compliance cannot be overstated
  and remains of the highest importance to the
  University

14
Compliance

• Any instance of noncompliance found in a sampling
  by auditors may translate into a proportionate
  decrease in federal funding
• Maintenance of tax-exempt status
• Reputational risk of non-compliance

15
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

16
Compliance with IRS Regulations

• Reimbursement Submission Time Limit
• Documentation
• Receipts
• Proof of Payment
• Business Purpose

The IRS considers reimbursement of late,
unsubstantiated expenses as taxable income to the
traveler!!
17
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.

18
Reimbursement Submission Time Limit

• Failure to submit within 120 days or at the
  fiscal year-end will require Supplemental
  Approval to document facts and circumstances of
  late submission to avoid taxation
• Prolonged travel with no mechanism to submit
  expenses
• Medical issues or leaves
• Being busy is not acceptable
• If the expenses are not submitted
• within one year, they are taxable.

19
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

20
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

21
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

22
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!!
23
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)

24
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

25
Compliance with Federal Regulations

• Although segregated expenditures may have a
  valid business purpose, they

• can only be charged to non-government accounts
• must be segregated and charged to an 8500
  subcode
• Segregation applies to all expenditures, not just
  those funded by a government grant!

26
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
  

27
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)

28
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.

29
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 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

30
Travel Expense Policy
31
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.

32
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.

33
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.

34
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).

35
Travel Expense Policy Mileage

• Set by the IRS currently
• .485 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

36
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

37
Travel 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

38
Travel 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

39
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.)

40
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

41
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)

42
Travel Expense Policy Non-Reimbursable Expenses

• Airline club membership dues or one-day admission
  fees
• Air-phone usage
• Baby-sitting
• Barbers hairdressers
• Clothing
• 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
  

43
Travel Expense Policy Non-Reimbursable Expenses

• Loss or theft of cash advance money or airline
  tickets
• Loss or theft of personal funds or property
• Lost baggage
• Luggage and briefcases
• Magazines, newspapers, personal reading materials
• Medical expenses while traveling
• Mini-bar alcoholic expenses
• Movies
• Personal entertainment
• Pet care
• Recreational expenses
• Saunas, massages, spas, gyms
• Shoe shines
• Souvenirs or personal gifts

44
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.

45
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.

46
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)

47
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

48
Business Expense Policy

49
Business Expenses General

• Business expenses are all necessary and
  reasonable expenses which an employee may incur
  in the ordinary course of business (non-travel
  related) and request reimbursement for.
• Major categories
• Meals
• Entertainment Employee Occasions
• Gifts

50
Business Expenses General

• Other types of business expenses
• Local transportation
• Local conferences seminars
• Moving Expenses
• Memberships Dues
• Contributions
• Human subject payments
• FRAP (Arts Sciences only)
• Faculty Practice Expenses (dept 527 only)

51
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

52
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

53
Entertainment Expenses

• Entertainment expenses must be purchased through
  an approved purchasing path (P-card, direct
  billing) where required.
• 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.

54
Entertainment Expenses

• These types of expenses cannot be charged to a
  research grant.
• Entertainment expenses over 1,000 reimbursed to
  an employee requires Supplemental Approval
• Expenses for business entertainment conducted in
  private homes will require Supplemental Approval

55
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.

56
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
• .

57
Employee Entertainment Expenses Business
Occasions

• Employee entertainment events celebrate a
  business occasion with employees of the
  University. Subject to budgetary constraints, a
  department should consider group celebrations for
  an occasion.
• Departmental funds may be expended for food,
  drinks, decorations, or other entertainment
  depending on the nature of the event.

58
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 (employee appreciation)

59
Employee Entertainment Expenses Employee
Appreciation

• 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?

60
Employee Entertainment Expenses Reimbursable
Employee Appreciation

• Departmental celebration of a holiday
• Collective celebrations of birthdays
• Congratulations on business related individual
  achievement

61
Employee Entertainment Expenses
Non-Reimbursable Employee Appreciation

• Showers for birth or adoption of baby
• Engagements, weddings, anniversaries
• Individual birthday celebrations
• Congratulations on personal related individual
  achievement

62
Employee Entertainment Expenses

• Entertainment expenses for employee events over
  500 reimbursed to an employee requires
  Supplemental Approval
• Expenses for employee entertainment conducted in
  private homes will require Supplemental Approval
  

63
Employee Entertainment Expenses

• The original receipts/invoices for events must
• include
• The date
• The items purchased
• The total amount of the event
• Proof of payment
• The detailed purpose of the event must also be
  documented. A list of attendees (or a , if
  there are more than 10 names), and their
  relationship to the University, must also be
  documented.

64
Gifts to Employees

• In general, gifts should not be given to
  employees. The proper procedures should be
  followed to provide additional compensation where
  applicable.

65
Gifts to Employees

• Reimbursable gifts to employees include
• Business Performance
• Years of Service
• de minimus gifts for occasions (i.e. gifts with
  small monetary value)
• Departments recipients should keep in mind
  that even when a gift given to an employee is
  allowed under University policy, it may be
  considered taxable income, and reported on the
  employees annual form W-2.

66
Gifts to Employees

• What to consider
• Fair and consistent application among employees
• Budgetary constraints
• Front-page test-will it seem appropriate to
  others ( e.g. donors, taxpayers ) that the
  University pay for this event?

67
Gifts to Employees Business Performance

• Gifts, prizes or awards up to 100 may be given
  to employees as recognition for exemplary
  business performance.
• Non-cash gifts of 100 or less are reimbursable
  and non-taxable (e.g. Yankee tickets). Non-cash
  gifts above 100 are considered taxable by the
  IRS, and reported on an employees annual form
  W-2
• Cash or cash equivalent (e.g., gift certificates)
  up to 100 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

68
Gifts to Employees Years of Service

• Gifts, prizes, and awards of up to 400 may be
  given when related to length of service and
  retirement.
• Non-cash gifts of 400 or less are reimbursable
  and non-taxable. Non-cash gifts above 400 will
  be considered taxable by the IRS, and reported on
  an employees annual form W-2. Non-cash gifts
  must also meet certain criteria
• 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.

69
Gifts to Employees Years of Service

• In order to be non-taxable to the employee, the
  non-cash years of service gift under 400 must
  meet the following criteria
• Must be awarded as part of a meaningful
  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
• Have a fair market value under 400 for the
  calendar year
• Departments may decide to give gifts that
  recognize years of service that do not meet these
  criteria. However, unless considered de
  minimus (under 100), the gift will be reported
  as income and the amount will be subject to
  taxation.

70
Gifts to Employees Non-cash De Minimus gifts

• The University strongly suggests that employees
  first consider funding these with their own
  contributions.
• Departments may at their own discretion choose
  to provide a small gift to an employee or another
  department to recognize a significant occasion.
• Common examples of small de minimus gifts
  include
• Flowers
• Fruit baskets

71
Gifts to EmployeesNon-cash De Minimus gifts

• The costs of these non-cash gifts should not
  exceed 100. Non-cash gifts with a fair market
  value of 100 or less are considered non-taxable.
  Any amount over 100 is considered taxable by
  the IRS.
• The threshold of 100 does not include any cash
  or cash equivalent (gift certificates) given as a
  gift to an employee. Cash gifts in any amount
  are always considered taxable by the IRS and
  reported on an employees W-2.
• Anything over the de minimus small gift
  threshold of 100 (by no more than 50) will
  require Supplemental Approval.

72
Gifts to Employees Reimbursable De Minimus
gifts

• The University will approve reimbursement of
  small gifts given in recognition of the following
  life events
• Birth or adoption of a child
• Funeral, illness or hospitalization
• Congratulations on a business related achievement

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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.

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Gifts to Employees Non-reimbursable De
Minimusgifts

• Engagements, weddings, anniversaries
• Holidays
• Individual birthdays
• Congratulations on other personal achievements

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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.

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Gifts to Non-Employees

• Gifts to non-employees (e.g. donors, alumni)
  must
• Include a valid business purpose, such as
  business development or recognition of an
  individuals effort in support of the University.
  
• Be appropriate to the individual circumstances
  and in keeping with the Universitys mission.

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Gifts to Non-Employees

• The fair market value of gifts of cash or
  non-cash items to non-employees should not exceed
  600 in a calendar year.
• In rare circumstances where gifts to
  non-employees exceed 600, it becomes taxable
  and you must contact Accounts Payable.
• Anything over the threshold of 600 (by no more
  than 50) for gifts to non-employees requires
  Supplemental Approval.

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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.
• Gifts to vendors are not reimbursable.

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Gifts to Non-Employees Documentation Required

• Original receipt/invoices for gifts to
  non-employees must include
• The date
• The items purchased
• The total amount of the purchase
• Proof of payment
• The recipients name, home address and Social
  Security number (if over 600) for form 1099
  reporting.
• The approved business purpose must be clearly
  documented.

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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

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New Tools and Forms
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Tips for Communications

• Resources are available to facilitate
  communications with faculty, staff, travelers
• Policy Highlights PowerPoint presentation
• What to know for travel
• Whats new (Oct 2006 policy release)
• Threshold chart for spending guidelines
  approvals
• Travel envelope

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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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