Expenditure Policy - 5.1 General Requirements

5.1 General Requirements

Business expenses can be approved or reimbursed in accordance with this policy when it is determined that the costs are:

  • necessary,
  • appropriate to the occasion,
  • reasonablein amount, and
  • serve a bona fide business purpose.

A. Documentation:

Employees are required to submit the proper forms along with original documentary evidence. Original invoices or receipts are required for all payments or reimbursements. Expenses without receipts will not be reimbursed to the employee or paid with College funds. The receipt must separately itemize meals, gratuities, and any charges for room use. A "tear tag" showing only the total charge is inadequate for reimbursement. Every effort should be made to obtain an invoice or provide an itemized receipt needed for reimbursement; however, if this is not possible, a non-itemized receipt will be accepted upon submission of the Missing Receipt Form which specifies the expense details and is signed by the employee and the employee’s supervisor. Likewise, where a vendor has not provided an invoice, the Expense Reporting Form is required to be completed before payment is made.

Per IRS regulations, a payment request must include:

  • Who - names of the individuals attending
  • What - what is being paid
  • When - date(s)
  • Where - location of the event
  • Why - purpose of the event

The above information is required whether paying a vendor directly, requesting a personal reimbursement, or processing an internal transaction from the College’s catering or dining food services. An announcement or agenda may be substituted for individual names when paying expenses of a large group gathering.

B. Methods of Payment:

The following methods should be used by employees when incurring business expenses.

  1. Purchasing Card-The College encourages the use of the purchasing card for most expenses under $1,000. The use of the purchasing card eliminates the need for reimbursement, but the expense must be properly documented as explained in this policy. Refer to the Purchasing Card Policy & Procedures for more information.
  2. Direct Invoice - In order to establish a direct invoice payment method, vendors must be pre-approved by the Procurement Office.
  3. Reimbursement- The following forms should be submitted with all documentary evidence attached within 30 days after the expense was incurred, or within 30 days of returning from a business trip. Because the IRS requires proper documentation of travel receipts, employee reimbursements related to travel expenses will be made after the employee has taken the trip and proper documentation shows proof of travel.

a. The Travel Expense Report Form should be used when employees who do not have a purchasing card are requesting reimbursement related to approved travel, lodging, meals, incidentals, mileage, and supplies (not requiring a Purchase Requisition).

b. The Employee Reimbursement Form should be used when employees who do not have a Purchasing Card are requesting reimbursement related to the miscellaneous purchases that do not require a PO.

c. The Mileage Reimbursement Form should be used to by employees to request reimbursement of Personal Vehicle Use. Please note that this is for mileage only.

      4. Purchase Order - The Procurement Office has established guidelines for purchase orders which
          can be found on the Procurement channel. To summarize, a purchase order should be used for:

a. Approved capital purchases

b. Goods and Services in excess of $1,000

c. Goods and Services under $1,000 when the vendor does not accept a purchasing card

d. Vendors that require purchase orders

5. Internal Charge - Departments will be direct billed when they use the College’s Dining, Conference,Press, Campus Store, and Fleet services. Even though this is an internal charge, all rules and regulation outlined in this policy apply and require proper documentation.
6. Petty Cash - In order to establish a petty cash system, departments must be pre-approved by the Controller’s Office. These systems are audited at least once annually by the Controller’s Office and must follow proper cash handling procedures.

C. Approval:

  • All expenses are required to be approved according to the “Contract Authorization Policy”.
  • Expense Reimbursements need to be approved by the employee’s supervisor before submitting the forms to Procurement for processing.

D. Policy Variations:

Schools and departments may implement more stringent expenditure policies, as long as those policies do not contradict the policies herein.

E. Payment Schedule:

The Procurement Office will process employee reimbursements within 15 days of receiving a properly completed Expense Report Form and corresponding receipts. The Procurement Office processes payments every Thursday. All employee reimbursements are completed via Direct Deposit.