Claremont McKenna College

REIMBURSEMENT POLICY

General Requirements
IRS regulations require that the College have an "accountable plan" for purposes of reimbursing staff, faculty, students, or volunteers, hereinafter referred to as individuals, for expenses incurred on behalf of the College. An accountable plan is a reimbursement arrangement that meets the following three requirements: The Physical Education and Athletics Department should refer to their specific policy for team travel.

Business Connection - Amounts paid by the individual must have a business purpose and be spent in connection with his or her position at Claremont McKenna College. It is expected that all faculty and staff will exercise appropriate care in incurring such expenses. It is the responsibility of each individual incurring such expenses as well as the individual approving such expenses to comply with the College's policies and procedures as set forth in this document. A business connection assumes one or more employees are present and an appropriate meeting cannot be held on campus. In circumstances where the business purpose of the expenditure is unclear or in the event of meals and entertainment expenses, if individuals and their business relationship to the College is not properly documented, the reimbursement will be delayed until proper substantiation is forwarded to the budget director.

Substantiation - An original receipt or invoice indicating that payment was made is required for all expenses, regardless of amount. If the receipt or invoice does not indicate the amount paid, a cancelled check, original credit card receipt, or other proof of payment is required. Exceptions: Some exceptions include mileage, tips, metered parking or coin telephone expense. Deviation from this policy may require Financial Services to include any reimbursements in the individual's taxable wages, subject to all applicable taxes and withholdings.

Request for Reimbursement - Any request for reimbursement must be submitted within ten (10) working days of purchase and or travel. If a travel advance is received, any funds in excess of substantiated, approved expenses must be returned to the College within ten (10) working days after travel is completed and upon return to campus. Any request for reimbursement made after ten (10) working days may be denied reimbursement. The Assistant Treasurer will determine if a late request is reimbursable.

Authorization

Individuals must obtain prior authorization for any expenditure that is not specifically excluded under this policy.
Travel approval should be obtained prior to undertaking any official college travel; otherwise, expenses are incurred at the traveler's risk. Approval must be obtained from the budget officer responsible for the account being charged. The President or her designee will approve all expenses for the Vice Presidents.
The supervisor responsible for the budget or the VP/Treasurer must approve all college bankcard payments.

Expense Reimbursement

The original receipt noting item purchased must accompany all expense reimbursement requests.
An expense report will be required for reimbursement of all expenditures incurred for overnight travel no matter what form of payment was used or to clear a travel advance. This report must be completed within 10 workdays of completion of travel and must be submitted regardless of the method of payment for said trip.
All reimbursements/payments must be approved as noted in the authorization section above.
A request for check (RFC) can be used for mileage reimbursements and supplies, in excess of $25.00, not involving overnight travel.
Reimbursements under $25.00 should be handled through petty cash.

Transportation
Workers Compensation Insurance provides coverage for faculty and staff traveling on College business. Transportation costs will be reimbursed using the following guidelines:

Airline - Air transportation costs will be reimbursed for a coach ticket to your destination. A business or first class ticket will not be reimbursed to the extent that the cost exceeds that of a coach ticket. Any frequent flier miles accrue to the individual, not the College, in recognition of the time spent by the individual traveling outside of normal business hours Air travel cannot be expensed or reimbursed without an invoice. Itineraries will not be accepted as proof of purchase or travel. Boarding passes, if available, should be attached to invoices.

Personal Automobile - Claremont McKenna College will reimburse individuals for mileage when their personal vehicle is used on official College business that is properly authorized, reasonable and appropriately documented. This does not include mileage for traveling between the individual's residence and the College. The College will reimburse Individuals at the current rate as approved by the Internal Revenue Service. In the event a private vehicle is used in lieu of commercial transportation (air, bus, rail), the lesser of the costs between a coach/economy class ticket combined with other related ground transportation and the mileage will be reimbursed. The College does not reimburse vehicle operating, maintenance and repair costs for personal vehicles. Your personal automobile liability insurance is your primary coverage when using your personal vehicle on college business. If your liability limits become exhausted following an accident occurring while on college business, the college's policy provides a second layer of coverage.

College-Owned Vehicle - The vehicles are subject to College rules pertaining to use. Gasoline purchase receipts will be reimbursed, not mileage.

Rental Vehicle -

Travelers may rent a car:

When driving is more convenient than airline or rail travel.

When driving is necessary to transport large or bulky materials.

When, due to multiple locations to visit in your destination city, driving is more economical than public transportation modes.

When other surface transportation is not practical.

Insurance:

Individuals traveling on College business should decline the collision damage, accidental death, and medical insurance.

Individuals who are authorized to drive college-owned vehicles will be covered by the College's liability policy so they do not need to purchase additional liability coverage.

Individuals not on the authorized driver list may be exposing their personal liability insurance as primary insurance coverage with the College's insurance covering any excess costs.

The College's coverage is applicable only while the individual is on College business. Non-related pleasure trips are covered under the individual's personal policy.

Reimbursement:

The car rental agreement must be used for documentation for reimbursement or for back up to the credit card purchase.

Ground Transportation, Parking Fees, Toll Charges - Preferred choices for ground transportation are shuttle services, public limousine service, or other forms of public transportation. Public limousine or shuttle service from an individual's home to the airport should be used only when the round trip cost of such service is less than the parking cost and/or mileage reimbursement. Taxis are to be used only when public transportation is more costly, unavailable, or unsuitable. Individuals are asked to park in airport satellite parking lots whenever possible. Tolls and reasonable parking costs are reimbursable with a receipt.

Lodging

Hotel accommodations for individuals while on authorized travel status are allowable.
If two persons, one of whom is not on CMC business, occupy a double room only the single rate is reimbursable.
Individuals should always ask for the corporate or educational discount rate before renting a room.
The original copy of the hotel folio will be used as documentation for reimbursement. There will be no direct billing of charges to the College unless arranged, in advance, with the approval of the Treasurer.

Telephone
While traveling on College business, expenses incurred for telephone, fax, and teleconferencing for business communications are reimbursable. Good judgment should be used when deciding to use cellular phones where fees may be incurred. Personal calls home are reimbursable, though good judgment should be used when determining the number and length of the calls.

Meals and Entertainment
The College expects individuals to eat well, but not extravagantly, while traveling on College business.

Personal Meals - Personal meals are meal expenses incurred by an individual while dining alone while on travel status or by an individual who has paid the bill for other employees who are traveling with the individual on out-of-town business. Reasonable per diem expenses incurred for breakfast, lunch, and dinner, including tips, will be reimbursed when traveling on College business, not to exceed the federal per diem high-low rates.. [For 2003, these rates are $45 for high cost localities and $35 for low cost localities per day] In order to obtain reimbursement the original receipt, from the use of a credit card or a cash register receipt, must accompany these expenses. Tear-off stubs from the meal ticket are not acceptable. Reasonable meal rates may vary from city to city but the general guidelines (including tip), when not following per diem reimbursement, are:

Breakfast   $ 10.00

Lunch        $ 15.00

Dinner        $ 25.00

The College will not reimburse for any alcoholic beverages purchased with meals when not directly entertaining someone for an approved business purpose. Employees dining alone on a business trip will not be reimbursed for alcoholic beverages.

Business Meals and Entertainment Expenses - Business meals are meals taken with non-College individuals during which a specific College business discussion takes place. Documentation must show that a business discussion was held just prior to, during, or directly following a business meal. Receipts must note those in attendance and their business affiliation.

Non-Reimbursable Expenses
The following is a general list of non-reimbursable expenses incurred during travel or the normal course of business. This list is not all-inclusive.

Travel

expenses of a spouse or person accompanying a traveling individual or baby sitting fees
travel insurance
airline class upgrades
memberships, clubs, or organizations (e.g., vehicle, airline, fitness, discount retailers, etc.)
kennel costs for pets
lost or damaged personal items such as briefcase, calculator, computer, etc.
prescription or over-the-counter medications
car washes, except for College-owned vehicles
traffic and parking violations
sightseeing or other personal side trips
personal care items (e.g., toiletries or hair cuts/styling) or personal entertainment such as books, magazines, newspapers, hotel room movies, hotel room mini-bar charges, sporting events, etc.
valet and laundry services on trips less than four consecutive business days

Day-To-Day Expenses

car washes, except for College-owned vehicles
traffic and parking violations
library fines
repair of personally-owned equipment, except for expenditures under the Individual Faculty Accounts (IFA)
equipment purchase/repair, except for expenditures under the Individual Faculty Accounts (IFA) (payment should be made directly to the vendor by the College)

Entertainment and Alcohol

alcohol purchases, unless entertaining a non-CMC employee or trustee, or for an event that is intended, and explicitly justified in the request for reimbursement, as a social event (personal discretion must be used to limit costs);
alcohol purchases for students, regardless of their age (so that CMC can avoid serious liability exposure);
meals for spouses and significant others, unless:

the event is explicitly intended and justified as a social event, or

the presence of a spouse or significant other is intended, and justified in the request for reimbursement, as serving a CMC legitimate business purpose (e.g., a spouse at a faculty recruitment dinner to inform the candidate and/or candidates spouse about the community, housing, employment).

Gifts To Staff Faculty and/or Students

any gifts for faculty or staff members or a member of the family of a faculty or staff member or students (except by Human Resources)
expenses associated with birthdays, holidays, promotions, retirements, or other comparable occasions (except by Human Resources)

Addendum to the Reimbursement Policy

Approval of Reimbursable Expenses, Travel Reports, and Credit Card Charges
All employees are required to submit travel reports for overnight business trips. Other reimbursable expenses and credit card payments require a request for check to be completed and attached. The requests for check and travel reports shall be reviewed by the employee's immediate supervisor to substantiate the business purpose of each charge following the guidelines in the College's reimbursement policy. All documents shall be checked for mathematical accuracy and appropriate account numbers. If the immediate supervisor is not a Vice President of the College, the appropriate Vice President shall determine whether or not a second review at that level is necessary.

Requests for check and travel reports for members of the senior staff shall be sent to the Treasurer's Office for review. For senior staff members who report to another member of the senior staff, this will be a second review. For senior staff members reporting directly to the President, this will be the initial review. The Budget Director shall review each report for accuracy and to verify that guidelines in the reimbursement policy have been followed. Documents for senior staff members who report directly to the President shall be forwarded to the Treasurer for final approval. Questionable items will be discussed with the appropriate employee and forwarded to the President if there is no resolution.

The President's requests for check and travel reports shall be prepared by the President's Office and forwarded to the Budget Director for review, then to the Treasurer for final approval. Copies of the President's requests for checks and travel reports shall be forwarded to the Chair of the Board of Trustees Budget & Audit Committee after approval by the Treasurer.

Approved by the Budget & Audit Committee 10/23/03