TRAVEL AND ENTERTAINMENT (T&E)
EXPENSE POLICY
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Employees and Non-employees (Trustees, Consultants, Volunteers, Interview Candidates, et al) |
INTRODUCTION
This document establishes the basis for college reimbursement of travel and
entertainment expenses. The purpose of
the Travel and Entertainment (T&E) policy is to provide the College
community with broad guidelines to ensure only reasonable and necessary expenditures
for authorized business, travel and entertainment are incurred, documented, and
paid for by the College in conformity with applicable laws, acceptable
practices, and common sense. In some
cases, departments may impose more restrictive guidelines than those set forth
in this policy.
This policy and all its documentation requirements apply to all employees and
non-employees, e.g., trustees, volunteers, consultants, guest lecturers,
interview candidates, et al. regardless of the particular source of funding.
The Internal Revenue Service imposes the following requirements on
reimbursement of business expenses: 1) there must be a business reason for the
expenses; 2) the individual must substantiate the expenses; and 3) the
individual must return to the employer or organization any amount advanced in
excess of the substantiated expenses.
For travel and entertainment expenses to be paid or reimbursed, they must be
properly accounted for on the applicable form, with the business purpose stated
and proper supervisory approvals obtained.
The Travel & Entertainment forms are as follows:
- Accounts Payable Voucher
- Expense Reimbursement Report
Approved requests for payments, reimbursements, and settlement of travel
advances must be submitted to the Disbursements Office within a reasonable
period of time, normally within 30 days of the completion of the travel, but
not to exceed 150 days..
See appropriate sections and/or references for important details on nonresident
aliens, sponsored or grant funds, and other special topics.
The T&E policy including updates is available on the Office of the
Controller website at http://www.smith.edu/controller/.
Exceptions to this policy (not otherwise covered by laws, grants, or
contractual commitments) may be made on an individual basis, but require the
travelers to obtain written pre-approval from the Controller, who may consult
with the appropriate member of Senior Staff. A copy of the pre-approval
must be attached to the pertinent expense report(s).
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RESPONSIBILITIES OF
Individuals are responsible to follow College policies as respects to reporting
of any accidents or other incidents that may result in a claim to the
College. Failure to promptly report all
accidents or incidents may result in disciplinary action.
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RESPONSIBILITIES OF SUPERVISORS
The responsibility for review and approval of all College business, travel
and entertainment expenses generally rests with the supervisor who is fiscally
responsible for the account to which the expenditures will be charged. That supervisor may delegate authority to
review and approve expenditures (except for their own - see note below) and to
certify that funds are available to pay them, providing such delegation is
communicated in writing to Accounts Payable.
It is the responsibility of the approving party to be familiar with the need
for the business, travel and entertainment expenses and to be satisfied that
they have been reported in a manner consistent with this policy. Such matters as requests for reimbursement
for airfare when boarding has been denied, "no show" hotel charges,
room service, etc. must be carefully evaluated on a case-by-case basis by the
person approving or disapproving the expense.
Note: Travelers may not authorize reimbursement of their own
business, travel and entertainment expenses or those of peers. Also, employees may not approve T&E
expenses for an individual to whom they report.
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RESPONSIBILITIES OF THE OFFICE OF THE CONTROLLER
- Reviewing forms and attachments for completeness, accuracy, reasonableness, and compliance with government regulations and College policies
- Verifying that funds, organizations, and accounts are correct and ensuring the appropriate recording of costs incurred;
- Returning forms to employees when items appear unreasonable, incomplete, personal in nature, or violate government regulations or College policies;
- Maintaining auditable records of travel expenses;
- Processing balances due to/from vendors and individuals;
- Monitoring to ensure that advances are cleared in a timely manner;
- Verifying required approval signatures
- Ensuring proper tax treatment of taxable income items and compliance with IRS regulations.
Note: The above does not relieve the traveler or supervisor from
their obligations under this policy.
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TRAVEL AGENCIES
The College does not have an "official" travel agent. If an employee works with a travel agency,
they simply need to be sure they are getting the best price.
When attending a conference or meeting, employees should check the group
airfare rate negotiated by the sponsor before booking through a travel
agent. Often, these group rates are
quite a bit lower than fares that can be obtained directly from the airlines or
through a local agent.
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EXPENSE
REIMBURSEMENT REPORT
Requests for payments, reimbursements and settlement of travel advances
should be submitted on completed, signed and approved Expense Reimbursement
Reports accompanied by the required receipts, within a reasonable period of time,
normally within 30 days of the completion of the travel, but not to exceed 150
days. All expenses must be documented,
including any prepaid expenses.
When College employees and volunteers travel for business purposes, the Expense
Reimbursement Report form must be completed.
The form is available on the Office of the Controller website. Please use one form per traveler per trip.
The reimbursement form must contain all pertinent information: travel dates,
purpose, destinations, fund, the individual account and organization codes, and
appropriate authorization signatures. Be
sure to identify the individual as a
Travelers must sign the forms to certify to the best of their knowledge that
the information contained on the Expense Reimbursement form is accurate and
that all claimed expenses were allowable and incurred in the conduct of
official College business.
If the traveler’s signature cannot be obtained due to extraordinary circumstances,
the form may be processed with the departmental authorizing signature, provided
that an adequate explanation is attached.
Thus, an e-mail request or a memorandum for the record of the phone call
from the spender/traveler may be used in lieu of the original signature.
Expenses incurred in a foreign currency must be converted to U.S. dollars by
the spender/traveler. The exchange rate
at the time the expense was incurred and the U.S. dollar equivalent must be
provided on all receipts. Written documentation
must include the exchange rate and date.
This may be in the form of a receipt of currency exchange, credit card
statement with exchange rate listed, etc.
If expenses in foreign currency are paid by credit/charge card they may
take a longer time to appear on the individual's statement. In this case, the individual should account
for all expenses using estimated rates, but may later request an adjustment for
foreign items by submitting the charge card statement.
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AIR
TRAVEL
All efforts should be made to obtain the lowest coach fare available. This usually requires 14 to 30 days notice
and a non-refundable ticket. In the
event a non-refundable ticket has to be canceled, the airlines usually charge a
fee and issue a credit, which has to be used by that individual within the
year.
The last page of the airline ticket (passenger receipt) must be retained and
submitted as the receipt for the trip.
For electronic tickets, please submit the web page receipt or
confirmation letter that is mailed to the employee. (This letter lists itinerary and amount
charged to credit card.)
The employee may retain frequent flier miles; however, an employee should
always travel on the least expensive airline, not the airline with which they
have a frequent flier account. If an
employee uses frequent flier miles, personal credit vouchers, etc. to pay for
business travel they cannot be reimbursed for it.
Saturday night stay. When the savings
generated by traveling and staying over a Saturday night exceed the cost of
lodging and meals for a pre- or post-business period, the College encourages
the employee to make the Saturday night stay.
Entertainment and other personal expenses (including health club fees)
incurred by the employee during this period, or at any other time, will not be
covered by the College.
International Travel. The College will
reimburse for the cost of coach transportation. A member of Senior Staff must
approve any upgrade to business class.
The College will reimburse employees for currency exchange charges. Employees are encouraged to pay for meals,
hotels and purchases on their corporate credit card as the cards often offer
the safest and most economical exchange conversion.
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CAR RENTAL
The following should be considered before renting a car:
- Availability of hotel shuttle services and taxi cabs;
- Airport transfers (included at some hotels);
- Proximity of hotel to destination;
- Number of travelers (car sharing);
- Length of stay; and
- No-cost upgrades.
Justification for any car
rental must be provided. Travelers will
not be reimbursed for specialty rental vehicles (e.g., luxury, sports utility,
and convertible).
Travelers must comply with all applicable local, state, federal, or
international laws and regulations pertaining to the operation of a motor
vehicle. Refer to the Travel Insurance
section (page 12) for important information regarding the purchase of Collision
Damage Waiver Insurance for rental vehicles.
Unless a prepaid gas option is used, rental cars should be returned with
a full tank of gas to avoid costly refueling charges and surcharges.
If you rent a vehicle while working on behalf of the College (including unpaid
or volunteer work), you should rent the vehicle in the name of the College and
your own name. This means that you
should sign both your name and "
It is important to inspect any rented vehicle before driving it. Make sure any dents, scratches or other
damage to the vehicle are noted on the rental form. Otherwise, the College may have to pay for
damages you did not cause. Departments
may be required to contribute to deductible amounts for at-fault accidents.
Any employee involved in an automobile accident while using a rental vehicle on
College business must contact the Controller x2200 as soon as reasonably
possible.
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OTHER TRANSPORTATION
Travelers should use taxis or public transportation in metropolitan areas
to realize greater savings and convenience (e.g.,
Reasonable expenditures for local ground transportation to and from airports,
railroad stations, hotels, meeting places, and business appointments are
payable or reimbursable by the College.
Parking fees and tolls are reimbursable whether a rental or personal car
is used. Commuting costs are not
reimbursable.
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USE
OF PERSONAL VEHICLE
If a personal vehicle is used, the traveler is eligible for mileage
reimbursement, which recognizes the cost of gas, oil, normal wear and tear, and
insurance. The College reimburses actual
mileage at the college’s annual reimbursement rate, which is usually equal to
the standard IRS approved mileage reimbursement rate. See the Office of the Controller website for
the rate applicable to the date of travel.
The College will reimburse transportation costs to the extent such costs exceed
the normal daily commute to the office.
Please note that an employee will not be reimbursed for traveling within
the
When you drive your own car on College business, your own insurance policy
serves as a "primary" policy for third party liability and physical
damage to your vehicle. This means that if a claim arising out of an accident
exceeds your policy limits, then the College's policy will cover the accident
in excess of your policy. For example, if you carry $20,000/$40,000 liability
insurance, and injure a pedestrian severely, resulting in over $100,000 of
medical bills, your policy would pay the first $20,000 of the claim, and the
College policy would respond for the balance of the claim.
If your vehicle is damaged as a result of an accident, whether it is your fault
or not, your comprehensive/collision coverage would respond. You are responsible for any deductible
amounts under your policy. If you do not
carry any collision insurance, then the entire amount of the damage is your
responsibility. Neither the College nor
the College's Insurance will pay for any physical damage to your vehicle - you
use it at your own risk. Mileage
reimbursements are designed to include an incremental cost for insurance and
deductibles.
Any employee involved in an at-fault accident which results in bodily injury to
third party while using a personal vehicle for College business travel should
contact the Controller, x2200 as soon as reasonably possible.
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LODGING
Lodging costs should be kept to a minimum.
The College normally will only reimburse for single room rates at
moderately priced hotels. Many hotels
offer conference, corporate, or educational rates, which should be utilized if
savings result. Hotel costs vary around
the country. In most
Note: If attending a conference, the College will reimburse the cost of
staying at the “conference hotel”.
When reservations are booked "guaranteed late arrival", travelers are
responsible for all hotel "no show" charges unless mitigating
circumstances prevail. All lodging and
ancillary expenses should be charged to the traveler's Corporate Card to the
extent possible. Enter the combined room
and tax on the Expense Reimbursement Report form by date.
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HOST GIFTS
If staying with a friend rather than in a hotel, a "payment in lieu
of" actual expenses up to a maximum value of $75 is reimbursable if the
gift is less than the expense normally incurred, and the expense bears a
reasonable resemblance to the benefit provided.
This "payment in lieu of" actual expenses is defined as a host
gift and travelers may be reimbursed for one host gift per trip subject to the
foregoing limitations. The host gift is
intended to express the College's gratitude to the host. Cash payment to the host is not
permitted. Appropriate host gifts might
include a meal at a restaurant or a tangible household item. Gifts must be
purchased and presented to the host during the trip. Host gifts are not reimbursed if the expense
is incurred after the completion of the trip.
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MEALS & ENTERTAINMENT
Reimbursement of meals and entertainment for business purposes will be on
the basis of actual and reasonable costs up to a maximum of $90 per day. Costs must be itemized and actual receipts
attached for any expense exceeding $25.
Travelers should retain all receipts, including expenses under $25, for
accurate accounting of expenses and present them upon request by their
supervisors or reviewers. Tips associated with meals are claimed as part of the
total meal expense. When dining with
others, each person should pay for their own expenses. If circumstances do not permit this, to
ensure that costs are properly accounted for, the person paying the entire meal
expenditure must report each attendee's name, the business purpose, and matter
discussed.
Please note that meal reimbursements in the local
For group functions, it is helpful to provide additional supporting
documentation such as a copy of the announcement, the invitation list, and the
final number of attendees.
Business entertainment expenses include meals, related tips, transportation,
lodging, and other entertainment expenditures incurred by College employees,
agents et al. for the benefit of others.
Entertainment may be claimed if: it is for the purpose of advancing a
business relationship between the College and its donors or suppliers; it is
within the bounds of good taste, moderation, and legal requirements; and the
cost is within reasonable limits and does not include lavish, excessive, or
inappropriate entertainment.
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REIMBURSABLE EXPENSES
The College will pay for business, travel and entertainment expenses that are
reasonable and actually incurred for conferences, transportation, meals,
lodging, and other incidental expenses if they are properly authorized and
appropriately documented (including explanation of the business purpose of the
travel). Travelers are expected to
neither lose nor gain financially when traveling on official College
business.
If reasonable and necessary, the following are examples of payable/reimbursable
expenses as defined in this Policy:
- Air and rail travel;
- Alcoholic beverages purchased in conjunction with official College business entertainment (except for grants & contracts);
- Car rental;
- Change or cancellation penalties imposed by the airlines if due to unavoidable circumstances (supporting documentation must be supplied with the T&E form);
- Gasoline for rental vehicles;
- Ground transportation including taxi and metro fares, mileage for personal vehicles, parking fees, and tolls;
- Laundry/dry cleaning during trips longer that five calendar days;
- Lodging;
- Meals and entertainment while on official College business;
- Miscellaneous (room service, luggage storage, and valet);
- Non-employee travel costs (job applicants, guest lecturers, consultants, and others);
- Registration and fees for attendance at approved conferences and seminars;
- Taxes associated with transportation, lodging, and meals;
- Hotel business center or internet charges; and
- Tips associated with lodging, meals, and transportation if customary.
Travelers conducting official College business are expected to exercise the
same care in incurring expenses, as would a prudent person. Excessive costs, circuitous routes, excess
delays, or luxury accommodations and services unnecessary or unjustified in the
performance of College business are not acceptable and will not be reimbursed. Avoid use of hotel direct dial lines and air
phones and use phone cards when possible. Travelers are responsible for
excessive costs and any additional expenses incurred for personal preference or
convenience. All expenditures are
subject to audit and review.
Reimbursements are made by check, payable to the employee or other approved
traveler incurring the expenses, and will be mailed directly to the payee's
home address, unless other arrangements are made with the Disbursements Office.
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NON-REIMBURSABLE
EXPENSES
The following are examples of generally non-reimbursable expenses and
should be considered a partial listing:
- Airline club membership fees;
- Annual membership for charge cards;
- Baggage insurance;
- Car wash;
- Clothing;
- Commuting costs to/from home and normal place of business;
- Costs incurred by unreasonable failure to cancel reservations;
- Dependent care;
- Entertainment under federal grants and contracts;
- Excessive tipping;
- Fees, interest, and/or late charges associated with personal credit cards;
- Fines or tickets resulting from traffic, parking, or other violations;
- Golf or tennis court fees, membership in country, tennis, or golf clubs, or any sporting equipment, except when part of a preauthorized group event;
- Haircuts;
- In-flight headsets;
- Interest or late charges on a Corporate Card;
- Lawn care;
- Life, accident, or flight insurance premiums;
- Lost, broken, or stolen property;
- Luggage or briefcases;
- Maid service;
- Meals when traveling locally on College business;
- Movies or games (hotel, theater, or rentals);
- Newspaper and magazines;
- Pet care; and
- Expenses that have been or will be paid or reimbursed by an outside source.
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PAYMENT METHODS
Following are the various methods of payment for official College business,
travel and entertainment expenses. The payment types may have restrictions as
to their use.
Corporate Card: College employees who travel on College business
frequently (two or more trips per year) are encouraged to obtain a Corporate
Card and to use the card for expenses associated for authorized business travel
and entertainment. The charge card is
issued to individual travelers jointly with
Regular travelers should contact the Office of the Controller (x 2200) for a
Corporate Card application. Where the
Corporate Card is not accepted, travelers are expected to exercise good
judgment in determining the proper means of payment.
The Corporate Card is the property of
Personal Charge Card or Cash: Business, travel and entertainment
expenses may be paid with a personal charge card or cash. For reimbursement,
please submit these expenses with receipts on the proper form as indicated in
the Expense Reimbursement Report section.
Travel Advances: Travelers are eligible for advances of $50 per day up
to a maximum of $250 per week for reasonable out-of-pocket travel expenses.
Travelers may receive advances in the form of a College Accounts Payable check
to be issued less than two weeks prior to travel. Allow at least five working days for check
preparation. Travel advances must be
accounted for on an Expense Reimbursement form, as detailed in the Expense
Reporting section. Failure to account for travel advances within the required
time frame may result in the following outcomes:
- Income tax consequences;
- No future travel advances being granted to the individual; and/or
- For students, the College will post charges to the student's bill.
Prepaid Travel Expenses:
These are paid directly to outside vendors from the departmental budget and are
paid in advance by the College on behalf of the traveler. To prepay expenses, send a completed Accounts
Payable Voucher form to Accounts Payable or the Disbursements Office. Include a copy of pertinent conference
registration form, hotel bill, or other appropriate documentation. Prepaid travel should be reported on the
T&E form as having been prepaid. For
travelers who purchase airline or rail tickets well in advance of a scheduled
trip, the traveler may wish to submit these expenses for reimbursement prior to
traveling. Documentation must include
the original itinerary, a copy of the ticket or other original document, and
the original credit card or other receipt.
Wire Transfers: These may be useful for group travel. Contact the Office
of the Controller at x2200 for detailed instructions.
Procurement Card: Please contact the Purchasing Office.
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DOCUMENTATION
Individuals incurring business, travel and entertainment expenses are
required to substantiate all payments generally by submitting dated original
receipts with the proper form and explanations.
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Expense Item |
Examples of Required Documentation (with adequate details) |
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Air or Rail |
Original passenger coupon or E-ticket receipt, plus itinerary |
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Hotel |
Original itemized bill including final settlement |
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Car Rental |
Original agreement including final settlement |
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Meals/Entertainment equaling or exceeding$25.00 |
Original credit card or cash register receipt for expenditures plus business purpose, discussion topic, and guests denoted regardless of amount |
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All Other |
Original credit card, cash register receipt, or signed statement by spender/traveler regardless of the dollar amount. |
If an expense is partially covered by an organization other than the College,
duplicate copies of the receipts may be submitted by attaching a copy of the
request for reimbursement submitted to the other organization.
An individual incurring expenses who loses a required receipt should seek a
duplicate or faxed copy from the originator.
When an acceptable duplicate cannot be obtained, the employee should
submit substantiation in other ways, such as an expense diary, etc. An
explanation of why a receipt was not obtained at the time of the transaction
and the efforts afterward to obtain the missing documentation would be helpful.
The Controller's Office may request further explanation, documentation, and has
the final decision on the acceptance/rejection of any such expenses.
Expenses will be reimbursed only if incurred during the conduct of authorized
business activities. All of the
following information must be supplied for reimbursement:
- The date, amount and business purpose of the activity;
- Identification of all those in attendance;
- The business relationship(s) of the person(s) attending;
- The establishment where the activity took place; and
- The appropriate approval signature.
If the above information is not supplied, the IRS may require that the expenses
be added to the traveler's taxable income regardless of amount.
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SPOUSE/FAMILY ACCOMPANIMENT
The College will not process travel advances, authorizations, prepaid
expense requests, wire transfers or payment/reimbursement of business, travel
or entertainment expenses for spouses or family members who accompany College
employees or students on College business except in those unusual circumstances
which require their presence. The
appropriate member of Senior Staff must approve any unusual circumstance in
advance in writing. Should a spouse or
dependent be approved to accompany an employee on College business, reporting
of expenses must follow this policy.
When a spouse or family member(s) for personal reasons accompanies a traveler,
the College will only reimburse the traveler for the cost of a single room.
Note: Junior Year Abroad Directors should refer to their policy
incorporated here by reference.
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TRAVEL INSURANCE
Business Travel Insurance:
Workers Compensation Insurance: If you are injured while working on a
business trip, you are covered for medical expenses and lost wages by Workers
Compensation Insurance. Contact Human Resources as soon as possible to file an
accident report, and obtain further instruction. Failure to promptly report an
injury may compromise your claim. Injuries sustained while not working, though
you may be away from home on business travel, are not covered by Workers
Compensation Insurance. If there is a question on this, as respects a specific
incident, contact Human Resources for clarification.
Flight Insurance: Flight insurance purchased by individuals is not a
reimbursable expense.
Collision Damage Waiver Insurance (Rental Car): In the U.S. and Canada,
travelers should consider purchasing the Collision Damage Waiver (CDW) or
Liability Damage Waiver (LDW) insurance offered by car rental agencies because
the College's insurance carries a $1,000 deductible. All basic insurance,
including collision damage MUST be purchased on all rentals in foreign
countries other than
Personal Accident Insurance (PAI): The College will not reimburse
travelers for PAI or other liability insurance offered by domestic rental car
agencies, because the College provides coverage.
Personal Automobiles: College employees using personal automobiles to
travel on official College business must maintain adequate liability insurance
for their protection and for the protection of any passengers.
Other Personal Property: The College will not be responsible for loss or
damage to personal property while an employee is traveling on official College
business.
College Property: The College has transit coverage on all its property, with a
deductible of $10,000, and a limit of $250,000.
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NONRESIDENT ALIENS
All payments involving non-U.S. citizens must be approved by the Payroll and
Disbursements Office and must include a social security number or an individual
tax identification number (ITIN).
Visiting foreign scholars, nonresident alien contractors, nonresident
alien employees and others performing personal services must submit the general
documentation required by this policy along with the additional forms required
under the next paragraph. Under no
circumstances should an agreement or document be signed unless the payee's
status is determined for tax and other regulatory purposes.
If reimbursement is being requested (via check, wire, or other means) and
receipts (converted into
If a department desires to make a payment directly to a third party, such as to
a travel agency, airline, hotel, credit card company, etc. on behalf of a
nonresident alien, prepayment approval from the Payroll and Disbursements
Office must be obtained.
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SPONSORED PROGRAMS
Specific provisions that the College has accepted in sponsored program
agreements will govern travel and other expenses on those awards and take
precedence over the College's T&E policy. Questions in this regard should
be directed to the Cash and Grants Manager.
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Revised 01/18/07