Reimbursement & Credit Card Documentation Policy
The university reimburses out-of-pocket expenses and pays university credit card charges (VISA, Diners Club, or other) for approved university business under "accountable plan" rules described in IRS Publication 463. The IRS requires that specific supporting documentation be provided with all reimbursement requests or charges to university credit cards or the university must treat the payment (if it is made) as taxable compensation to the individual.
- Obtain a detailed receipt for each purchase or charge. A "detailed" receipt shows the date(s), the business name (place), what was purchased (service or goods), the volume purchased, sales tax (if applicable and collected), and the total amount paid, including proof of payment. If a receipt is lost or missing, this detail information should be provided in writing.
- Use of a personal vehicle for approved university business is reimbursed at the approved per mile rate (multiplied by number of miles driven).
1. The Travel Expense and Mileage Information (PDF) document on the Accounting and Budget Services Policy and Procedure Web Page identifies the current approved business mileage rate and travel expense and mileage accounts to use. To help ensure adequacy of budgets for mileage expense, please use mileage expense accounts for mileage. Avoid charging mileage to other travel expense accounts and avoid charging other travel expenses (parking, tolls, etc.) to the mileage expense accounts.
2. Beginning and ending odometer readings or a www.MapQuest.com/directions screen print that shows the estimated miles is considered adequate documentation of the number of miles driven.
3. Business mileage does not include the normal commute to and from work. When approved university business travel originates from home, subtract your normal commute from the total miles associated with the trip. Under IRS Reg. § 1.262-1(b) (5), costs of commuting to the place of business or employment are personal expenses that are not eligible for reimbursement, even if you work during the commuting trip.
- The university is allowed to reimburse or pay for fuel/gasoline purchases only for approved use of university-owned or university-rented vehicles.
- The university business purpose of the expense (including for mileage) needs to be identified by providing written answers to the following questions (this information can be provided on the disbursement request form, on the VISA statement, or on the back of the detail receipt).
1. What was the university event or how is the expense related to university business?
2. When did the event occur or between what dates?
3. Who participated in the event or made the trip, or on whose behalf was the expense incurred? Identify names and titles of individuals. For large numbers of attendees, it is acceptable to identify their general identity (examples: faculty, staff, students, trustees, alumni, and/or other guests of the university) and the approximate number of attendees.
- University credit card holders need to sign the first page of the monthly statement to acknowledge that the charges have been reviewed by the card holder and are for approved university business.
- If the purchase is a subscription and the form of delivery is not clearly documented by the vendor, include the information that the subscription is for on-line access to information or for a printed copy (delivered by mail). This is needed because sales/use tax is not due on on-line subscriptions.
- Timely submission of all expenses is essential (at least monthly) to reflect expenses in the correct fiscal year. This also allows budget managers and others with reporting responsibilities access to accurate and up to date index/fund balances.
- Paying individuals for services or giving gift cards involves complex tax reporting. Please contact one of the individuals listed below for guidance in these areas.
Contact Accounts Payable by phone at x3468 or x8656 or by e-mail at Accounts Payable
Last updated: March 17, 2011