Business & Travel Expense Policy

This Policy is necessary in order to comply with federal and state tax laws and third party sponsoring agency regulations. It is intended to ensure consistent and fair treatment between departments throughout the University and the uniform reporting of financial results. In general, the cost of travel, accommodations, entertainment, and other related business expenses should be governed by what is reasonable and appropriate to the purpose involved. The University respects the personal integrity and discretion of each member of its faculty and staff and conducts expense account affairs accordingly. The following information outlines responsibilities of various parties to the process:

Traveler/Employee

The individual incurring business and/or travel expenses bears the responsibility to:

• Obtain proper approval from supervisor
• Verify that all expenses being paid or reimbursed by the University are valid and conform to this Policy document and understand that requests lacking required documentation and/or business purpose will be questioned and perhaps not be reimbursed through this Policy;
• Not engage in any misuse, abuse or perceived inappropriate transactions while conducting University business;
• Attest that expenses submitted for reimbursement have not been previously paid through expense reporting previously submitted, a cash advance, or by an outside agency or other third party;
• Approve all expenses related to his/her travel in accordance with the Card procedural and policy.
• If provided a cash advance, submit all supporting documentation and return any excess advance funds within 14 days of completion of travel; and
• Retain copies of all documentation supporting business travel and expenses incurred and ensure the business reason for the expense is documented and clear.

Be mindful that the business purpose of an expense may be obvious to the traveler/employee, but not to a supervisor/approver, the Finance Office, or a third-party reviewer.

In addition, all documentation associated with a single trip should be submitted concurrently.

Authorizer/Approver

Individuals authorized to approve business and travel expenditures of others will administer this Policy and are responsible to:

• Verify that the traveler/employee attested to the above responsibilities;
• Attest that the purpose of the expense is valid and directly related to Iona University business;
• Request further documentation or explanation for expenses that appear to be excessive or unusual in relation to the nature of the business travel. Explanation of all expenditures must be included on a check request form;
• Approve employee expenditures on a timely basis; and
• Understand that while the Finance Office may review and question business and/or travel expenses incurred, the primary responsibility for the appropriateness of expenditures rests with the traveler/employee, the individual responsible for departmental approval and the department head i.e., Director, VP, SVP, etc.

Finance Office

The Finance Office at its discretion may disallow any expenses/reimbursements that are not consistent with the guidelines outlined in this Policy such as:

• Information regarding business and/or travel expenses incurred is not supported by accompanying supporting documentation, or does not include a detailed documented business purpose;
• Expenses not reviewed/approved by the appropriate approver; and
• Expenses are not in compliance with this University Policy.

The traveler and approver should note that the University’s internal and external auditors routinely examine employee expenditures for compliance with University policies.

The IRS and federal regulations require certain standards to be met when documenting, recording and submitting reimbursable expenses. These include:

• Submitting expenses for reimbursement within a reasonable time limit
• Documenting the specific business purpose of an expense
• Providing receipts and proof of payment
• Segregating unallowable or excessive expenses

Reimbursement Submission Time Limit

The IRS requires travel expense reimbursements to be reported within a reasonable period of time. The determination of a reasonable period of time will depend upon the facts and circumstances, but the expectation is considered to be actions that take place within the times specified in the following list:

• If you are issued a Card, the expectation is that expenses are approved by the traveler/employee and supervisor by the 6th day of the next month in which the expenses are incurred (the best practice is to approve your own Card expenses as soon after the transaction is practical);
• If you receive a cash advance, adequately account for your expenses within 14 days after they were paid or incurred and return any unused excess reimbursement to the Finance Office.

In addition, in order to adhere to generally accepted accounting principles, the traveler should be mindful of the University’s June 30th fiscal year end, and all expenses for that year should be reported prior to year end to ensure that the expense is appropriately captured in the financial statements and in the department’s budget for the appropriate fiscal period.

Note that if an employee does not substantiate expenses and/or clear travel advances within 60 days, these amounts will be treated as if they were paid under a non-accountable plan (i.e. there is no documentation supporting the justification for the expense) and treated as compensation, subject to required payroll tax withholding, and reported on the employee’s Form W-2. The agreement for cash advances is attached.

Business Purpose

All expenses must be for a valid business purpose that is necessary and reasonable in order to conduct University business. A business purpose must be documented for all expenditures for which a traveler is requesting reimbursement.

The documented business purpose must be specific and thorough, for example:

• “Travel to Boston, MA to speak at NACUBO Seminar on Business Ethics on MM/DD/YYYY” is an appropriately documented business purpose. “Travel to Boston for conference” is not.
• “Travel to Atlanta, GA to attend career fair at XX High School on MM/DD/YYYY” is an appropriately documented business purpose. “Out of town recruiting expenses” is not.
• “Travel to Fairfield, CT with specific sports team on MM/DD/YYYY to compete against XX University” is an appropriately documented business purpose. “Game travel expenses” is not.

Receipts/ Proof of Payment

All individual expenses of $15.00 or more must be evidenced by a valid receipt or invoice to be reimbursed. A valid receipt may take various forms (e.g. cash register receipt, order confirmation). See Personal Automobile section on exceptions. A receipt must identify:

• the date of purchase
• the vendor name
• itemized list and unit price of the purchased items
• the total amount paid

For a business meal, the receipt must include all food and drinks purchased. In addition, a list of all attendees (including job title or company when applicable) must be included as well as a business reason for the meal.

In the extremely rare circumstance that the traveler is unable to obtain an original receipt that contains all the required information, documentation should be submitted to demonstrate as many of the required items as possible along with a detailed explanation, a Receipt Replacement form may be used as a substitution. Note that this should be the exception and not the rule.

A receipt in a foreign language/amount is considered acceptable documentation, with the US Dollar conversion amount noted on the receipt. Responsibility lies with the department to certify that it is appropriate business expenditure and that the conversion rate is appropriate and to document the business purpose. Note that foreign purchases should be paid via Card or credit card whenever possible. If paid in cash, foreign currency translation should be done on the date of the respective expenditure.

If traveling out of the country please contact Bank of America to ensure that your Card authority is enhanced to include international transactions.

Personally Identifiable Information

In the event that supporting documentation contains personally identifiable information (including health-related information) or other confidential information, such information should not be included with the supporting documentation for the expenditure nor maintained by the University. For example, receipts for doctor visits for student-athletes should not contain personally identifiable health information.

Government Grants

The Federal Government will not reimburse certain expenses, termed “unallowables” and has set forth guidelines prohibiting these costs from being charged to Federal grants and contracts, either directly or indirectly. These include expenditures for alcohol, entertainment, flowers or gifts or excessive costs, such as first or business class travel and lodging or meals over the designated University thresholds. In addition, expenditures associated with government grants must comply with the respective governing grant document and this Policy, adhering to the more restrictive guideline(s).

Failure To Comply

Whether the individual incurring business and travel expenses is doing so via a Card, a travel advance or out-of-pocket to be later reimbursed, the individual is expected to know that they are representing Iona University and their actions and transactions are a direct extension of the University. Any deviations or violations of this Policy may be subject to disciplinary actions including a verbal/written warning, revocation of Card privileges, up to and including termination.

Employees who have been approved to travel on Iona University business may make their own travel arrangements. The Dean or Vice President must approve all travel prior to making any arrangements. Cardholders are expected to transact their own business expenses on their own in their own name. If the traveler does not have a University card and prefers not to use their own credit card and submit a reimbursement request then arrangements should be made through the main office of their department or through the University's authorized travel agency, ProTravel.

All requests for air or train tickets, hotel reservations, and/or pre-paid conference fees are made on a Travel Authorization Form (TAF)* and must have signature approval of the Department Head and the appropriate Dean or Vice President before any reservations can be booked. Please reach out to the Finance and Administration Office for more information.

Travel Classes

Travelers must book the lowest price nonstop coach class air/rail fare available that reasonably meets the traveler's schedule. If the traveler wishes to maximize comfort and convenience for domestic travel (i.e., utilize Business or First Class), the traveler will pay the difference between the lowest price nonstop coach class fare and the final fare. Appropriate documentation of such arrangements should be submitted to the University with the business or first-class ticket.

For travel to Alaska, Hawaii and destinations outside North America or for necessary medical reasons (accompanied by appropriate supporting documentation), air travel other than coach class is allowed if the situation warrants and only with approval from a Vice President/ Dean or their authorized representative.

Online receipts documentation for airline electronic tickets (E-tickets)

In order to meet IRS requirements that a flight was taken and paid for by the traveler, documentation support with E-tickets requires an itinerary reflecting airline, flight numbers, departure/arrival dates and times, and a receipt listing total flight cost, payment method, and evidence of full payment. The Itinerary/Receipt requirements may be satisfied by the same summary document depending upon the method used by the airlines or travel company.

Additional travel insurance is not to be purchased for employees traveling on Iona University business.

Personal Automobiles

Use of the traveler's personal automobile will be reimbursed at a rate that generally coincides with the effective IRS mileage rate which is designed to cover gas, oil, and fixed costs such as insurance and depreciation, not to exceed the cost of available round-trip economy or discounted airfare, whichever is less. The departure point for the trip will determine the actual mileage traveled (e.g., from the University or the traveler's home).

• Travel by automobile is permitted only if this mode is in the best interest of the University;
• Reimbursement for two or more persons traveling in the same automobile shall be limited to the mileage reimbursement paid to the driver;
• Parking costs will be reimbursed if properly substantiated by receipts;
• Bridge, tunnel and road tolls will be reimbursed at the E-Z pass rate unless properly substantiated by receipts. This is an exception to the requirement to provide receipts for expenses above $15 only;
• The current reimbursement rate for mileage will be periodically updated as necessary and communicated to department heads by the Finance Office. The current rate is based on the standard IRS rate (as of January 1, 2024 $0.67 per mile) and updates can be found on the IRS website.
• The total amount of mileage to be reimbursed is the total miles traveled less the individuals' normal commute from their home to the campus (see Schedule C);
  • Example: If an employee lives 10 miles from the New Rochelle campus (20 miles round trip) but drives 50 miles total in a day to conduct Iona University business, the employee will be reimbursed for 30 miles (50 miles less their 20 mile 'normal' commute).

Automobile Rentals

Rental of an automobile is permitted when necessary for an employee traveling on behalf of Iona University. Such rental of an automobile will be allowed and reimbursed on the following basis:

• A traveler is expected to rent mid-size or smaller vehicles (generally referred to as 'standard' by the rental car companies) unless there are several travelers in the Iona group, in which case preapproval and a documented business reason should be obtained. Reimbursement will not be made for an unapproved car class upgrade and the individual will be responsible for the incremental costs;
• Car rental agencies provide basic insurance subject to a deductible amount. Travelers must decline all additional insurance at the time of rental (reimbursement for additional insurance to cover the deductible will be declined). The University self-insures the exposure on the physical damage to the rental car (which is covered by the additional rental car insurance). Rental car companies automatically provide liability insurance for bodily injury and physical damage to the other car. Iona's Auto Liability Insurance would then cover any excess over the rental car company's insurance while on business. Iona will not reimburse you for the coverage for your personal items in the rental car. If items are damaged or stolen from the rental car you would look first towards your Homeowners policy to reimburse you for the loss. If you do not have such coverage for this exposure, you may wish to purchase the coverage at your own expense;
• Gasoline charges on a rental car will be reimbursed with submission of an original receipt and the rental agreement; and
• When renting an automobile, mileage is not allowed to be taken.

The University will reimburse for lodging each day an employee is required to be away from home for business reasons. Reimbursement is limited to room and tax and must be documented by an original itemized hotel bill and receipt and travelers are expected to utilize economical accommodations. Reimbursement for lodging may not exceed the normal rate for a standard room. Surcharges such as for room service and telephone usage are not reimbursable and should be paid by the employee. If an individual is attending a convention or conference, use of the convention or conference hotel is appropriate. Travelers should request the educational rate where available. If college hotel points are present, the department will still incur charge of standard room rate.

Except for required travel time, the first and last day of a conference or business agenda constitutes the beginning and end of University business. Any stay before or after such period is deemed personal and not reimbursable.

Note that if meals are charged to the hotel room, they should be reported/ coded separately as business meals. In addition, the same standard applies here such that details of what was purchased/ consumed must be documented.

Business Services has arranged for a reduced nightly rate at the Radisson Hotel and at the Marriott Residence Inn in New Rochelle for guests visiting the Iona University campus. Please call the Business Services Office if you need to make a reservation for a visitor.

If a reservation is made for a visitor (e.g. student recruit) and the hotel reservation and bill is under the name of an Iona employee, the documentation supporting the charge should be clear to explain this scenario.

The University will reimburse travelers for reasonable, non-excessive meal expenses (breakfast, lunch, dinner) incurred while traveling away from home or entertaining on Iona University business. Departments may choose to be more restrictive than this policy due to budget constraints or other reasons; however, the maximum amounts set forth in this policy may not be exceeded unless there is an extraordinary circumstance.

Travelers will be reimbursed for personal meal expenses in one of two ways:

• for actual and reasonable costs properly documented by original receipts; or
• on a per diem basis.

Travelers must choose one method of reimbursement to claim actual expenses or utilize per diem for the duration of the trip.

Please note that non-employees may only use the actual expense method.

Actual Expense Method

According to IRS guidelines, meal and entertainment charges for business guests are reimbursable on a tax-free basis when names, positions/titles, and the organizational affiliation of the guest(s), along with the business purpose are indicated when submitting expense reporting. Receipts must be submitted for any individual meal or entertainment expense regardless of cost.

For a business meal the receipt must include all food and drinks purchased. In addition, a list of all attendees (including job title or company when applicable) must be included as well as the business reason for the meal.

Note that alcohol charges are never permissible expenses and therefore will not be reimbursed; unless in the pre-approved instance in which it is a business related activity and involves individuals external to the University.

Per Diem Method

Reimbursement on a per diem basis is the payment of a flat sum to cover meal and incidental expenses each day instead of a statement of actual expenses. Per diems are not available for expenses other than meal and incidental costs (i.e. tips). The per diem rate set for the University is $ 35.00 plus an additional $4.00 for incidental purchases. At the discretion of the department and/or Vice President a higher rate (not to exceed $ 60.00) may be considered for travel to cities that are considered high cost cities.

Travelers who use a per diem allowance do not have to substantiate each meal expense but they must demonstrate that the trip occurred with a receipt, such as an airline receipt or hotel itinerary, that indicates the dates of travel.

Please note the following regarding the use of per diems:

• Per diem reimbursement is available for conference travel only if the conference does not provide any meals in the registration cost.
• Per diem allowance on partial days of travel (first and last days of trip) is 50% of the applicable daily per diem rate.

NOTE: The per diem rate must be reduced when a colleague, vendor, alumnus, or other third-party vendor pays for a meal. An example of a per diem rate adjustment is as follows:

• When the conference attended provides some meals as part of the conference registration fee. For example: A traveler attends a 3-day conference. The conference provides breakfast for all attendees of the conference at no charge to participants. Since the cost of breakfast is part of the conference registration fee, the traveler is not entitled to reimbursement for breakfast during the days it is provided. If the full day rate is $35, the partial per diem allowed for the days the conference serves breakfast is $28 ($35 less $7).

Tips

Tips are reimbursable for normal services associated with business travel such as food services, porters, etc. Tips included on meal receipts will be reimbursed. Tips should be reasonable and commensurate with the services provided (typically 15-20%). Any amount over 20% will not be reimbursed, if paid with purchasing card the employee will be held responsible.

**Note that when the per diem method of reimbursement is used, this expense is covered by the incidentals portion of M&IE and, therefore, travelers are not eligible to receive reimbursement for actual funds paid out for tips.

Business Meals and Meetings When Not Traveling

Employee Only Business Meals

In cases where Iona employees meet over a meal when they are not traveling, the cost of the meal is considered a personal expense unless the primary purpose of the meeting is to conduct University business and there is a substantial business need to meet over the meal. Generally, these requirements are met when it is not possible for one or more employees to meet during working hours (e.g. when travel plans conflict with other meeting times), and the purpose of the meeting is to conduct University business in accordance with a formal agenda. IRS regulations do not allow for payment of meal expenses incurred by employees who are not traveling away from home (e.g. their travel does not require an overnight stay) unless the above criteria are met. These business expenses are permissible when the name(s) of the meal attendees have been documented, including the details of the food and drinks consumed, and the business purpose of the meal is justified.

It is permissible to incur expenses for meals provided as part of a local conference, seminar, workshop, presentation or other similar group meeting involving employees when it extends through the usual mealtime(s). Such meals must be reasonable in nature and the purpose of the meeting must be documented accordingly to ensure that it is an appropriate business expense.

It is not appropriate to use University funds in recognition of faculty or staff for non-work related achievements or events such as weddings, baby showers, housewarmings, including farewell parties. If individuals wish to recognize these events, they may do so on a personal level. University funds should not be used to pay for these and other kinds of staff parties and gifts. These expenses will not be reimbursed by the University.

Recruiting and Other Business Meals

Expenses for dining involving non-University personnel are considered business expenses when the purpose of the meeting is to conduct University business and when it is necessary or appropriate to have the meeting in conjunction with, or during, a meal. Expenses for such meals should be kept to a reasonable level. The typical business meal might involve interviews of prospective employees, discussions with vendors, consultants, or other individuals with whom the University does business, or meetings of organizations and groups at which agenda items pertinent to University business are covered.

Recruiting expenses are further subject to departmental specific policies and procedures presuming that they are not less restrictive than this Policy.

Independent Contractors, Students/Recruits, and Other Non-Employees

When the University has agreed to cover the cost of travel, room and/or board, and other expenses of independent contractors, recruits, and/or other non-employees (hereinafter referred to as non-employees), unless the relevant contract with the non-employee requires otherwise, this Policy applies to their expenses as well. Non-employees must adhere to the same reasonable standards and submit required receipts or other documentation supporting expenses. It is the responsibility of the department to make non-employees aware of this Policy. Payment of non-employee's expenses will be made once the required documentation has been submitted that documents the relationship of the individual, clearly describes the business purpose of the expenses, includes proper supporting documentation, and is approved by the applicable department head.

The University may reimburse or pay for the travel costs of non-employees (such as job applicants, seminar speakers, lecturers, consultants and other individuals) when it has agreed to do so, such as when one of the following circumstances exists:

• required by contract;
• part of an established educational program in which the costs are included in the educational program fee charged;
• participating in research or group educational activities at the University's request;
• participating in approved student events or activities;
• recruiting for the University; or
• approved by a department head, Dean or Officer

In cases where payment may be considered a reimbursement of a student's personal expenses rather than a University business expenses, the reimbursement may be taxable to the student (as a non-qualified scholarship).

For non-employee expenses funded by a sponsored grant or contract, the individual incurring the business expense should consult agency guidelines and/or the relevant contract to ensure that all agency or sponsor procedures and restrictions are followed, as well as the guidelines within this Policy.

Federal or sponsor restrictions should be directed to the designated department head that has supervisory oversight of such individual activities.

Miscellaneous Business Expenses

Other expenses including but not limited to supplies, publications, equipment, photocopying charges, etc. purchased for business use are considered business expenses. The payment for these types of miscellaneous business expenses must also include proper documentation and business justification, in accordance with this Policy. However, the expectation is that these instances would be rare and utilization of the University's supplies and services will be done at all times possible. All purchases should be made by Iona University through the normal purchasing process. Property and equipment used in the normal course of business should belong to the University, and as such purchases should not be made by the individual employee. In addition, the University as a tax-exempt entity is entitled to tax free purchases.

Miscellaneous Travel Costs

Other travel expenses may include, but are not limited to:

• business telephone calls while traveling;
• hotel internet service fees (when usage of the internet is for University work/business);
• fees for passports and visas, if specifically obtained in order to perform work for or on behalf of the University;
• fees for currency exchanges;
• necessary laundry and dry cleaning charges after completing five consecutive days of business travel; and
• expenses associated with baggage handling and storage, including excess baggage charges and tips;

All such expenses must be specifically identified when submitting expense reporting and documented in accordance with this Policy.

Personal Business Conducted During Period of Travel

Personal expenses, as well as any incremental travel costs incurred for personal business during the course of a University business trip, are the responsibility of the traveler. The University will not pay or reimburse travelers for expenses that are inherently personal in nature. Incremental travel costs include expenses that would not have been incurred on the business portion of the trip, except for the fact that the traveler conducted personal business at some point during the trip.

For example, gas and mileage charges for out-of-the-way travel to visit friends or relatives are personal expenses. Expenses for personal gain (e.g. personal consulting) cannot be reimbursed.

Personal expenses may not be charged to University accounts (even if the intention of the traveler or a third party is to later reimburse the University for these expenses). Using the University as a conduit for personal expenses may result in disciplinary action. Schedule B included within this Policy represents a list (which is NOT all inclusive) of expenses that are considered personal in nature and will not be reimbursed by the University.

Spousal Travel

Sometimes University officers and employees invite their spouse to attend a business-related trip. As a general rule, the University does not reimburse the travel expenses of an employee's spouse. Any exceptions require approval by the President. All spousal travel are subject to the policies and taxation rules. Copies of all spousal expense information must be submitted to the Finance Office regardless of University payment method used. This information should include the amount and type of expense, the specific role the spouse held on the trip and/or specific activities of the trip, and if a business purpose is being claimed, the specific activities conducted by the spouse in furtherance of the business purpose. The Finance Office will determine the taxability of the expenses to the employee, in conjunction with the Office of General Counsel, as necessary. An annual report of all spousal travel activity will be submitted to the Audit, Compliance and Risk Committee Chair.

Travel advances are granted on a limited basis with approval under special circumstances where the purchasing card cannot be used or prior payment arrangements cannot be made and an excessive burden would be placed on the employee.

Each travel advance is the personal obligation of the traveler. Thus, the traveler is responsible for any lost or stolen travel advances (whenever possible, travelers should use hotel vaults to safe keep cash or other valuables). The traveler is responsible for submitting their receipts to account for the travel advance and for returning the unused balance of the travel advance to the Finance Office.

Travel advances are not a benefit. Rather, they are a mechanism to support the business needs of University employees when traveling and appropriate. Requests for travel advances are submitted on the check request form; the approved request must be sent to Accounts Payable in the Finance Office at least 2 weeks prior to the travel departure date. The respective departmental heads may implement additional processes or limit travel advances.

Advances will not be granted to employees who have an unreconciled prior travel advance unless the President or the Senior Vice President for Finance certifies that extenuating circumstances warrant the second advance.

The Finance Office may revoke the right to obtain travel advances when necessary to avoid perceived abuse.

Employees must immediately return any travel advance to Finance department when a trip has been canceled or has been postponed.

Unreconciled travel advances (including payroll reporting):

The Finance Office monitors unreconciled travel advances and sends email notifications to travelers if the advance is not cleared within 14 days of travel completion. If an individual fails to substantiate the business expenses covered by the travel advance within 60 days of the date of issuance, the University will report these payments as taxable income to the employee on Form W-2.