This Business Expense Policy provides specific requirements for Dartmouth travel and other business expenses. An allowable business expense is defined as a necessary, reasonable, appropriate non-compensation expense incurred for a valid business purpose to fulfill the mission of Dartmouth. This Business Expense Policy also identifies the documentation required to substantiate requests for expense reporting and reimbursement. This policy is necessary to ensure the proper use of Dartmouth resources and compliance with federal and other external regulations.
The purpose of this Business Expense Policy is to provide departments, supervisors, other employees, and non-employees with specific guidelines covering Dartmouth travel and other business expenses. Because it is not possible to anticipate all the situations that individuals may encounter in conducting Dartmouth business, this policy is designed to be both directive and advisory and allow for some flexibility in addressing unique circumstances with appropriate approval.
As a general guideline, it is expected that individuals will interpret this policy in a manner that keeps expenses to a minimum and fairly assigns the costs of business-related activities to Dartmouth. Accordingly, the primary responsibility for adherence to this policy rests with the individual as well as the department manager and supervisor who are authorizing and approving travel and other expenses.
Individuals should bear in mind that government agencies and other observers may perceive certain expenditures as being either excessive or inappropriate in the context of a regulatory audit, an IRS audit, or other similar reviews of Dartmouth activities. Thus, moderation and discretion should guide individuals' decisions to incur expenses on Dartmouth's behalf.
These policies affect all faculty, staff, students and non-Dartmouth guests and visitors incurring non-compensation business expenses or purchasing goods or services. It also affects every individual who reviews, approves, processes, or records non-compensation financial transactions on behalf of Dartmouth.
This policy defines an allowable business expense as a necessary, reasonable, appropriate non-compensation expense incurred for a valid business purpose to fulfill the mission of Dartmouth. While such allowable expenses may be eligible for payment by Dartmouth funds, other funding sources may have more restrictions. This policy provides criteria for determining an allowable or unallowable expense and provides lists of common expenses. This policy also details documentation required to support allowable business expenses. In general, this policy ensures appropriate use of Dartmouth funds in support of its mission, follows Generally Accepted Accounting Principles (GAAP) and complies with federal, state, and local rules/regulations.
In order to be paid directly by Dartmouth or reimbursed to an individual, a business expense must be:
Guidelines cannot replace judgment, interpretation, and analysis of individual situations. The intent of this policy is to establish a consistent basis for recording expenses; to be fair and equitable; to be responsible and prudent when obligating Dartmouth's resources; and to ensure proper documentation is maintained to support reimbursable expenditures.
The basic policy governing the reporting of travel and business expenses is that an individual should neither gain nor lose funds in the course of traveling or conducting Dartmouth business.
The Procure-to-Pay Portal is a resource for individuals to utilize before making a purchase of a good or service. The Portal can assist in identifying and selecting current, contracted and preferred institutional suppliers by purchasing category, business expense, or classification and also provides a list of approved food providers and caterers.
Procurement guidelines have been established to promote competitive bidding. Requestors should realize that these are minimum requirements and that bids should be solicited, whenever the goods or services can be purchased, from several different, responsible suppliers. Upon request, Procurement Services will assist departments in locating potential suppliers and obtaining pricing and product availability information for any dollar amount. If the goods or services can be obtained from a contracted/preferred supplier, it is recommended that the requestor purchase from this source. A list of contracted/preferred suppliers is available within the Procure-to-Pay Portal.
Purchases up to and including $49,999.99
When purchases are less than or equal to $49,999.99, requestors should make every effort to use preferred suppliers.
Purchases between $50,000 - $249,999.99
Purchases equal to or over $50,000.00 but not exceeding $249,999.99 require at least three (3) quotations from suppliers if not utilizing a contracted/preferred supplier. All quotations must be written and attached to the requisition. If there are limited sources of supply or the low bid is found unacceptable because of some factual circumstance, the department head or principal investigator should write a clear, concise, and factual justification for not accepting the lowest bid. If the requestor is unable to identify three suppliers, Procurement Services should be contacted to assist in identifying additional suppliers.
Purchases equal to or over $250,000
Purchases equal to or over $250,000 require the requestor to contact Procurement Services to conduct a more formal bid process. Procurement Services will work with the requestor to directly solicit bids and provide a tabulation of bids for the requestor's review and evaluation.
For more information see the comprehensive Procurement Sole Source/Competitive Bid Policy.
The Dartmouth Procurement Card (P-Card) Program is designed to improve efficiency in processing low dollar value purchases ($4,999 or less). The Procurement Card is a Visa Card and can be used to make purchases for goods and some limited services (refer to Procurement Card Policy) with any merchant who accepts the Visa Card when the merchant category of expense is not restricted. Restrictions include, for example, merchants whose primary business is the sale of alcohol. The Procurement Card may not be used for internal purchases to pay for any goods or services at Dartmouth. Procurement Card transactions for non-restricted commodities cannot exceed the $4,999 per transaction limit (including all delivery, shipping and/or special handling charges). Pyramiding (splitting) transactions to avoid the single transaction limit is not permitted. Dartmouth policy and Visa/MasterCard regulations prohibit vendors from this practice.
Receipts are not required for items under $75 purchased on a P-Card, except as noted in the Required Documentation (Receipts) for Expense Reporting and Reimbursement section.
For P-Card purchases, the Purchaser must submit a business purpose and the appropriate chart string through the P-Card eForm within 7 days of the purchase. For purchases of $75 and over, the receipt must be included unless the purchase is made with an identified supplier with Level III detail per the Procurement Card Program Policy
The Dartmouth P-Card should never be used for travel related items, except for Dartmouth Coach, Concord Coach, Premier, MBT Worldwide, Butler's Bus, or Student Transportation of Vermont. No other bus services, cabs, etc. are allowed.
Personal expenses are prohibited on the Procurement Card. In the event an inadvertent personal purchase is made (or a charge is funded by another organization), it should be immediately identified to the Finance Center or Department Approver and reimbursed promptly to Dartmouth. The preferred method of reimbursement to Dartmouth is via a credit or debit card using the Returning Funds to Dartmouth process. If reimbursement cannot be made via a credit or debit card, a check should be made payable to Trustees of Dartmouth College and submitted to the Cashier's Office with a Miscellaneous Receipt Certification.
For more information see the comprehensive Dartmouth Procurement Card Program Policy.
Employees who repeatedly do not comply with the P-Card policy will have their P-Card privileges suspended or canceled.
The Dartmouth Corporate Card Program is designed to improve efficiency for travel, entertainment and other business-related purchases. The Corporate Card is a Visa Card and can be used to make purchases for travel, entertainment, and other business expenses with merchants who accept the Visa Card. When used for non-travel business related purchases the per item purchase limit is $4,999 and should adhere to the Procurement Card Policy. The Corporate Card may not be used for internal purchases to pay for any goods or services at Dartmouth.
Personal expenses are prohibited on the Corporate Card. Employees must reimburse Dartmouth promptly for any personal purchases or expenses that are funded by another organization. The preferred method of reimbursement to Dartmouth is via a credit or debit card using the Returning Funds to Dartmouth process. If reimbursement cannot be made via a credit or debit card, a check should be made payable to Trustees of Dartmouth College and submitted to the Cashier's Office with a Miscellaneous Receipt Form.
These guidelines apply to all expenses regardless of form of payment (i.e., Corporate Card, or paid by individual seeking reimbursement).
The primary responsibility for review and approval of expenses and compliance with all provisions of this policy rests with the individuals incurring expenses and supervisors who are authorizing the expenses. Business expense reports are subject to audits by government agencies and other sponsors; therefore, thorough documentation and accounting for expenses (as defined in this section) is essential. Dartmouth must have all the documentation required to substantiate payments made in accordance with this policy.
For P-Card purchases, the Purchaser must submit a business purpose and the appropriate chart string through the P-Card eForm.
For Dartmouth Employees (faculty and staff) business expense reports are submitted through the iExpense System. Employees or their delegate can submit the iExpense Expense Report directly in iExpense or may complete the Expense Report Request eForm to have an iExpense Expense Report prepared by the employee's Finance Center.
For Dartmouth Students and Visitors business expense reports are submitted through the Payment Request eForm.
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Payment Method |
Best Practice Due Date |
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P-Card purchases |
Should be settled within 7 days of the purchase. |
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Corporate Credit Card purchases and reimbursement of purchases paid by the individual:
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Should be settled within 15 business days after incurring the expense. |
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Advances |
Should be settled within 15 business days after incurring the expense. |
Required Due Date: All expenses (regardless of payment method) must be reported ("settled") within 60 days[1] of the date of the expense. For faculty and staff participating in off-campus programs as defined by Dartmouth, expenses must be settled within 90 days of the date of the expense. For expenses not settled within the applicable deadline:
[1] Dartmouth's business expense policy is an "accountable plan" under IRS regulations which allows expense reimbursements to not be subject to taxation if they are for business purposes, adequately documented within a reasonable amount of time and if excess reimbursements are returned timely. The IRS provides "safe-harbor" guidance for a reasonable amount of time as receiving an advance within 30 days of when expense will be incurred, settling expenses within 60 days of incurred/paid date and returning excess funds within 120 days.
Required Documentation (Receipts) for Expense Reporting and Reimbursement
Individuals are generally required to submit documentation of payment of business expenses. Documentation includes receipts, canceled checks or bills marked paid by the vendor, or other support indicating expenses were paid. If any single business or travel expense is less than $75.00, documentation is not required, with the following exceptions where support is always required regardless of amount:
If, in rare cases, documentation is not available, a Missing Receipts Certification should be completed, approved by the individual's immediate supervisor or more senior officer in the department who has the authority to approve charges, and submitted with the business expense report. This form does not apply to the expenses above that always require documentation.
Adequate Documentation of Expenses - Guidelines
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Business Purpose: |
Must sufficiently describe the expense to document necessary, reasonable, and appropriate. This is the why of the "who, what, when, where and why". Explanation should be in sufficient detail to allow someone unfamiliar with the situation to understand the business purpose of the expense, the circumstances that made it necessary and how it benefited the Institution [2]. |
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Supporting Documentation: |
Need to show amount paid, date, name of vendor or payee and location, and nature of the expense. Booking confirmations from hotels, airlines or third-party vendors such as Expedia are not sufficient for reimbursement. |
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Costs Less than $75: |
Supporting documentation generally not required (see exceptions above) but the expense report must still record the actual amounts of the charges, clearly itemize the expenses and sufficiently document the business purpose. Reimbursement must be for actual amount spent; it is not appropriate to round amounts or to estimate expenses. |
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Airfare: |
In the case of airfare not charged directly to a departmental chart string through Dartmouth's travel agent, individuals must submit evidence of purchase and payment (e.g., email receipt). Travel itineraries do not constitute adequate evidence. |
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Business Meals: |
See Business Meals section below for required documentation. |
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Lodging: |
Dartmouth requires an itemized lodging invoice or statement which reflects that payment has been made in full. An invoice or statement reflecting a "balance due" is not sufficient proof of payment. The "balance due" does not signify that payment was made on behalf of the individual, therefore, the individual will need to obtain an invoice that reflects that payment was made in full, or provide another form of proof of payment, prior to submitting a business expense report. Lodging invoices that include other associated costs (meals, parking, etc.) must properly segregate those costs on separate lines in the expense report |
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Per Diem: |
Any request for per diem reimbursement for visitors must be accompanied by documentation which adequately substantiates the time the visitor resided in the area and traveled to/from Hanover. This may include airline tickets, lodging bills, employment agreements, or other such documentation. |
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Scholarly Work: |
Discretionary funds provided by a Dartmouth unit to support the scholarly work of an individual may only be accessed by individuals who maintain an eligible Dartmouth affiliation (e.g., employee or student) during the time that they use the funds (e.g., startup, pilot, or seed funding). |
[2] Additional documentation should be attached to the expense report if needed as the system has a limit on how much data can be entered.
Business expense reports are certified by the employee and approved by the employee's immediate supervisor or more senior officer in the department who has the authority to approve charges to the particular chart string(s).
An individual supervisor may delegate (in writing) their signature authority to another individual at a higher level or to their fiscal officer. No employee is authorized to approve their own, a peer's or a superior's business expense report or charges to a chart string for which they are not authorized to approve expenditures. Area fiscal officers are authorized to approve business expense reports charged to Dartmouth accounts for which they have budget responsibility (except for their own expenses or those incurred by their immediate supervisor).
Employees certify by the submission of their expenses that those expenses are accurate, valid Dartmouth business expenses and have not and will not be reimbursed by another entity. If the business expense report is compiled and submitted by someone other than the employee, the employee is responsible for reviewing the completed report and notifying the appropriate finance center if there is an error in the submission.
Business expense reports for non-employees must be approved by an employee who has knowledge of the expense and signature authority for the accounts to be charged.
Dartmouth recommends all employees who travel or incur travel-related expenses at least once a year obtain a Corporate Card for business travel expenses, and book airfare through the travel portal for direct payment by Dartmouth. The individual's Corporate Card can be entered into the travel system. For those without Corporate Cards, expenses may be charged directly to a chart string entered by the individual.
For individuals without Dartmouth Corporate Cards, Dartmouth can provide advances to faculty, staff, and students traveling on authorized business to cover out-of-pocket costs, if deemed necessary by the individual's supervisor. The following guidelines apply:
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Amount Allowed: |
The minimum necessary to cover anticipated out-of-pocket expenses with a maximum daily limit of $50.00 for domestic travel and $75.00 for international travel. This limitation does not apply to student advances for non-travel expenditures or group travel. Advances must never be used to cover personal expenses or any activity which is the sole responsibility of the employee or student. The Controller's Office may revoke an individual's privilege to obtain advances if it is determined that an employee or student has abused Dartmouth policy. |
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Approval Required: |
Advances of any amount will only be granted with approval of an authorized approver or delegate that has been given the authority to approve such expenditures for the designated GL/PTAEO chart string. Under no circumstances can the recipient of an advance approve their own advance request form. |
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How to Request: |
Advances are requested by completing the Payment Request eForm and include a detailed explanation of what it will be used for and how the requested amount was calculated. |
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When to Request: |
Requests for advances should be requested at least 10 business days in advance of need. Payables advances will not be issued more than 10 business days before the trip or expected expense. |
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Receiving the Advance: |
Employees and students requesting an advance will receive the advance through an Accounts Payable payment (check or direct deposit). |
Advances and Non-Dartmouth Personnel
Advances may be provided to visiting faculty or lecturers who will be reimbursed by Dartmouth for airfare, meals and/or lodging expenses incurred while in the Hanover area. The advance for the visitor must be in an employee's name, on behalf of the visiting faculty or lecturer, and needs to be approved by the authorized approver or delegate that has been given the authority to approve expenses on specified GL/PTAEO chart strings. The individual requesting the advance is responsible for ensuring that the advance is settled and that a refund is obtained if the event is canceled.
Advance Settlements and Due Dates
Each advance is the personal obligation of the recipient receiving the funds until the expenses have been settled. The recipient of the funds is responsible for the proper record keeping of expenses incurred while conducting Dartmouth business and for remitting any unused funds back to Dartmouth. Advance settlements must provide adequate documentation to substantiate the business expenses covered by the advance, as required by the IRS to avoid the reporting of advance payments as taxable income to the employee or student. Due dates on advances are established at the time that the employee or student is issued the advance.
Advances should be settled within 15 days after returning from the trip or completing the activity or event, but no later than 60 days after (or 90 days for eligible off-campus program participants). If a trip, activity or event has been canceled or has been postponed for more than ten (10) business days, the entire advance must be returned immediately. If the advance is greater than the expenses incurred, the individual must return the remaining balance with a copy of the business expense report. Employees and students have two options for returning unused advance funds.
Air travel is generally restricted to commercial airlines. The class of air travel chosen is expected to be the least costly consistent with a reasonable level of comfort and convenience for the traveler. Dartmouth's contract with ALTOUR specifies that they will offer the lowest fare consistent with this guideline and available within one hour of the arrival and departure times requested by the traveler.
Airfare charged to grants: Travel costs on grants are limited to the institution's established policy, and in the case of air travel, the lowest cost reasonable commercial airfare must be used.
Business Class Airfare: All business class travel must be pre-approved. Approval may be granted when flights exceed five consecutive hours or in other circumstances deemed appropriate by the appropriate Senior Leadership Team member or member of the Board of Trustees. When being charged to a sponsored project, premium fares must be permitted by the sponsoring agency.
Some airlines charge a minimal fee for aisle seats versus window seats, or early bird check-in for seat assignment. These fees are accepted as reasonable business expenses when the amount is minimal. Some airlines also charge for luggage, so baggage fees are accepted as reasonable business expenses.
Airfare booked through ALTOUR can be charged directly to the employee's Corporate Card or the default GL/PTAEO chart string set up by the individual. If airfare is booked via a source other than ALTOUR, the travel should be booked using the Corporate Card. If an alternate method is used for purchasing airfare, Dartmouth will reimburse the individual before the trip has occurred if proper documentation showing payment is submitted. If the individual cancels the flight after the payment is made, the individual must reimburse Dartmouth for the amount that has been refunded to them.
Under exceptional circumstances, if it becomes necessary to use air charter or air taxi services, the individual must obtain an approval from their Dean, Vice President, Provost, President, or member of the Board of Trustees prior to the use of such services. Only corporate aircraft of major recognized corporations should be used. The individual must also contact the Office of Risk Management and Internal Controls at (603) 646-2441 prior to the flight for insurance purposes.
Most sponsored research funding agencies require that all international travel be on a U.S. flag carrier (see Fly America Act) unless circumstances, such as lengthy holdovers, preclude using a U.S. flag carrier. If there are no U.S. flag carriers going to the traveler's destination, the traveler must contact the Office of Sponsored Projects.
Arrangements for international travel supported by sponsoring agencies can be complex, requiring not only prior approval but detailed justification for each trip, as well as detailed trip reports. For specific information on sponsoring agency requirements, contact the Office of Sponsored Projects prior to incurring costs.
All policies pertaining to domestic travel apply to international travel as well.
Changes in Air Travel Schedule
All travel arrangements should be made well in advance, as airfare booked early can often be obtained at a lower rate. Before committing to a deeply discounted ticket carrying a substantial penalty for cancellation, individuals should make certain that they can adhere to the planned itinerary. Depending on the circumstances, the penalty for cancellation and the loss of the full value of the non-refundable ticket may or may not be reimbursed.
Group travel consisting of ten or more individuals with the same points of departure or destination is eligible for special rates through ALTOUR. Any department requesting a price quote for group travel from an outside agency must also submit a travel bid form, at the same time, to ALTOUR.
Travelers are allowed to personally retain the rewards for frequent flyer plans or other bonuses that may accrue from business travel. However, in no case may the individual choose a reservation at a higher cost in order to accumulate additional plan credits. Dartmouth will not purchase frequent flyer miles from individuals or reimburse the traveler for tickets purchased with their frequent flyer miles.
Membership fees to join frequent flyer clubs are considered personal expenses.
Automobile, Parking, and Ground Transportation
Employees (faculty and staff) and students must follow the requirements of the Dartmouth Driver Policy.
The use of personal vehicles for business is discouraged. It is the obligation of the owner of a personal vehicle being used for Dartmouth business to carry adequate insurance for their protection and for the protection of any passengers. No reimbursement will be made for the cost of repairs to a personal vehicle or for the cost of roadside assistance programs such as AAA if the employee or student chooses to enroll in such a program.
When the use of a personal vehicle is necessary, reimbursement for its use will be at the mileage rate published by the Controller's Office, which is based on the IRS published mileage reimbursement rate. The mileage reimbursement rate can be found in the Standard Mileage Rate policy.
The mileage reimbursement rate includes the cost of using the vehicle, such as any car repairs, gas charges and any incremental cost for the owner's personal automobile insurance coverage, since it is the primary coverage in case of an accident.
Travelers must provide the date of travel, the starting point and destination, total miles, and the business purpose to be reimbursed for mileage.
Airport: Parking at the airport is allowable, but individuals are urged to use long-term, lower-cost parking when available. If public transportation or taking a cab (or Uber/Lyft) to and from the airport would result in a lower cost (due to the high cost of parking in most cities and airports), individuals are encouraged to use one of those options.
Corporate Cards may be used, or reimbursements may be requested, for tolls and parking fees when using your personal vehicle for business travel away from campus. Dartmouth will not reimburse employees for parking tickets, fines for moving violations, vehicle towing charges or auto repairs and maintenance.
Public transportation expenses include the cost of taxis, shuttles, airport vans (or car service), subways, buses, rail, and other modes of public transportation. Dartmouth will pay or reimburse the individual for these expenses (including a reasonable tip) while on Dartmouth business when reasonable and properly documented.
Dartmouth has established contracts with Enterprise/National Car Rental Service for all vehicle rentals for business. These contracts entitle participants to the providers' discount programs, reduced fees and other benefits. The Dartmouth Corporate Card should be used to ensure maximum insurance protection for employee travel. Individuals should determine whether a Dartmouth/Enterprise car provides the best option in terms of cost and convenience. For more information please visit: Enterprise/Vox Rental Program.
Dartmouth policy does not permit the renting of vehicles from private car owners, such as Turo. The use of other peer-to-peer ride sharing arrangements, such as Uber and Lyft, is permitted.
For business rentals not booked through Enterprise/National Car Rental Service, Dartmouth's insurance will cover faculty, staff, or students as well as the vehicle when the vehicle is rented for business purposes; therefore, employees and students should not elect additional insurance coverage provided by the rental company. Dartmouth employee business travelers must use their Corporate Card to receive free primary Collision Damage Waiver (CDW) insurance for the value of the rental vehicle. This reduces Dartmouth's expenditures for accidents and will prevent your department from potentially incurring expenses of up to $2,000 for the deductible resulting from any at-fault accidents. Employees will not be reimbursed should they select the CDW insurance coverage. Non-employee travelers are not covered under Dartmouth's insurance and may be reimbursed for CDW insurance on rental vehicles used for business.
If any vehicles other than cars or vans are to be rented and driven for business purposes, there needs to be an approval from the Director of Parking and Transportation. See Dartmouth Driver Policy.
Non-Employee Traveler
Non-employee travelers are not covered under Dartmouth's insurance and thus may be reimbursed for CDW insurance on rental vehicles used for Dartmouth business. Non-employee travelers are required to secure and pay for their own rental vehicle and request reimbursement following their business travel.
Rental vehicles for international travel should be obtained through ALTOUR. Individuals should purchase rental Collision Damage Waiver (CDW) insurance and liability insurance when renting cars outside the United States. This is often referred to as a "full coverage" option.
Coach accommodations should be purchased. Business Class Rail Travel: All business class rail travel must be pre-approved. Approval may be granted when rail travel exceeds five consecutive hours or in other circumstances deemed appropriate (e.g. wireless internet access needed, overnight trip, etc.) by the appropriate Senior Leadership Team member or member of the Board of Trustees. When being charged to a sponsored project, premium fares must be permitted by the sponsoring agency.
Dartmouth has partnered with these charter bus companies: Concord Coach, Dartmouth Transportation, Lamoille Valley, MBT Worldwide, Premier Coach. And these school bus companies: Butler's Bus, Student Transportation. Their contact information can be found in the Procure to Pay Portal.
We ask that departments requiring charter bus services contact at least two of these vendors to obtain estimates. Quotes should include gratuity. It is not a requirement that vendor selection be based on the lowest estimate; we recognize that other factors may be important.
Limousines or luxury car rentals, premium car services and luxury transportation services
Limousines or luxury car rentals, premium car services and luxury transportation services may be used when bringing visitors, prominent practitioners, or government leaders to campus to reflect their position, security and ease of travel. Limousines or luxury car rentals, premium car services and luxury transportation services are not allowable as a business expense for faculty or staff, except in the following circumstances: unplanned travel emergencies (which should be noted on the business expense report), use in foreign countries when it is the safest or most common option, or use pre-approved by a Dean, Vice President, Chief Financial and Administrative Officer (CFAO) or Fiscal Officer for special circumstances.
Individuals should use standard accommodations in reasonably priced lodging. Since reservations are typically guaranteed to ensure lodging for late arrivals, individuals are required to cancel these reservations in a timely manner to prevent "no show" charges. Except under extenuating circumstances, Dartmouth will not pay expenses due to an individual's failure to cancel guaranteed reservations.
When reporting expenses for lodging, the itemized hotel receipt must be submitted with the business expense report. Dartmouth requires an itemized lodging invoice or statement which reflects that payment has been made in full. An invoice or statement reflecting a "balance due" is not sufficient proof of payment. The "balance due" does not signify that payment was made on behalf of the traveler, therefore, the traveler will need to obtain an invoice or other documentation that reflects that payment was made in full, prior to submitting a business expense report. Reasonable tips related to lodging stays, including valet, housekeeping and baggage may be included.
The use of peer-to-peer accommodations, such as Airbnb and VRBO, is not recommended although it is not prohibited. No individual is required to use peer-to-peer lodging, and all such lodging arrangements should be approved by individual's supervisor before it is secured. The rate per night (inclusive of all required fees) needs to reasonably compare to that of business class hotels in the area(s). There are aspects to such lodging that individuals should be aware of before booking such accommodations, such as:
Travel Meals and Incidental Expenses
In accordance with IRS guidelines, a traveler is entitled to travel meals when the trip is of such duration that the employee is reasonably expected to require sleep or rest away from their approved work location to properly perform their duties (typically involving an overnight stay).
For U.S. travel meals and incidental expenses, Dartmouth allows use of a per diem or actual expense reimbursement. The domestic per diem rates can be found at GSA Per Diem Rates: http://www.gsa.gov/perdiem
The meals and incidental per diem rate for international travel is based on the rates published by the U.S. Department of State for the time period the trip took place. The international per diem rates can be found at the following website: https://aoprals.state.gov/web920/per_diem.asp
For partial day travel or when a meal has been paid for by others, a deduction must be made from the per diem allowance. If you need to deduct a meal amount, first determine the location where you will be working while on official travel. You can look up the location-specific information at: http://www.defensetravel.dod.mil/site/perdiemFiles.cfm
The M&IE rate for your location will be deducted by the following percentages:
When a per diem is not chosen, actual and reasonable costs will be reimbursed. This includes a reasonable tip of not more than 20%. Detailed, itemized receipts for travel meal expenses of $75 or more are required. This includes meals charged on a hotel folio.
For a given trip, a traveler needs to choose either per diem or actual cost method. However, travelers who choose the per diem option but incur the cost of an entertainment meal may request reimbursement for the actual cost of the entertainment meal. The requestor must provide a receipt and information regarding the business purpose and participants for the entertainment meal and adjust the per diem as described above.
Business meals are defined as meals taken with students, donors, colleagues, or individuals from companies during which specific business discussions or activities took place. Detailed, itemized receipts must be provided for all business meals when the cost of the meal, including a reasonable tip of not more than 20%, is $75 or more, along with the names of the other diners and the business purpose for hosting the meal.
When the traveler is expensing meals purchased for non-Dartmouth personnel, these meals should be considered "Business Meals" rather than "Travel Meals," and detail must be provided indicating the names of the other diners and the business purpose for hosting the meal, in addition to the detailed, itemized receipt when the cost of the meal, including a reasonable tip of not more than 20%, is $75 or more.
In cases where Dartmouth employees meet over a meal when they are not traveling, the cost of the meal can be considered allowable when the primary purpose of the meeting is to conduct business and there is a clear and compelling reason to meet over a meal. Generally, these requirements are met when it is not possible for one or more employees to meet during other working hours, and the purpose of the meeting is to conduct business in accordance with a formal agenda. IRS regulations do not allow for the payment of meal charges incurred by employees who are not traveling away from home unless the above criteria are met and there is a clear benefit to Dartmouth. Detailed, itemized receipts must be provided when the cost of the meal, including a reasonable tip of not more than 20%, is $75 or more.
It is permissible to incur expenses chargeable to Dartmouth 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 relation to the nature, duration and purpose of the meeting.
Functions for employees are considered allowable business expenses when the expenditure is intended to serve as a token of appreciation that primarily promotes employee relations or that recognizes individual or group work-related achievements.
Functions such as parties to celebrate birthdays, marriages, births, etc. with purchased food or beverages should be paid for by the employees involved and are not reimbursable expenses.
The federal government has mandated that no alcohol costs may be charged as either a direct or indirect expense of federally sponsored projects. This means that the cost of alcohol cannot be charged directly to a PTAEO chart string. The allowability of expenses for alcohol on non-federal grants depend upon the guidelines of the specific sponsor.
Business Meetings and Entertainment
While not encouraged, alcohol cost is allowable as a business expense when served at an organized Dartmouth function primarily intended to promote donor, employee, or student relations, subject to the conditions outlined in this policy. To be reimbursable, the expense must meet all of the following conditions:
If alcohol charges conform to the guidelines outlined in the policy, it may be an acceptable expense; however, it must always be charged separately to the appropriate natural class for "Entertainment-Federal unallowable alcohol." Some Dartmouth divisions may choose not to cover the cost of alcohol even where otherwise permitted by this policy.
Meals and functions that are partially social in nature are considered business entertainment if they are intended to provide hospitality to non-Dartmouth individuals and are deemed necessary and customary in furthering Dartmouth's mission. Meals which include spouses or other individuals who are not directly involved in conducting Dartmouth business are general indications that the occasion is entertainment rather than a business meal or meeting.
Examples of business entertainment include, but are not limited to:
Business entertainment expenses should be reasonable in relation to the nature of the function and the resulting business benefit expected to be derived from the expenditure. A description (either a list of names or identification of the hosted group) and the total number in attendance at a business entertainment function must be indicated on the request along with the business purpose of the entertainment. A reasonable tip of not more than 20% can be included.
Because business entertainment expenses are rarely, if ever, allowable as either direct or indirect costs of federally sponsored grants and contracts, these expenses and any related alcohol costs must be segregated in the appropriate GL/PTAEO chart string so that they may be easily identified in the accounting records (and excluded from any calculation of direct or indirect sponsored research costs).
Should a traveler decide to stay with colleagues, family, or friends in lieu of a hotel, the traveler may expense a gratuity of a reasonable value offered to the host. Examples might include a floral arrangement or a reasonable meal. These gratuities would be in place of meals and/or lodging for the accommodations provided by the host. An explanation of such items should be submitted with the business expense report.
Dartmouth's blanket all-risk property insurance provides coverage for all Dartmouth-owned or leased equipment, with a replacement value in excess of $1,000. The insurance coverage provides for loss or damage caused by any peril not otherwise insured, including theft, but not general wear-and-tear and gradual deterioration. All departmental equipment should be carefully secured when not in use and should not be left unattended in public places when traveling. Computer equipment or hardware and accessories must be secured against theft. To report a loss, please contact Risk Management and Insurance at (603) 646-3839.
Telephone Calls and Internet While Traveling
If business calls are made on a mobile device, the Mobile Communication Device and Services Policy details allowable reimbursable amounts. Dartmouth provided cell phones (if applicable) or personal cell phones should be used instead of the hotel room telephone for direct dialing of long-distance calls. Use of hotel room telephones for long-distance calls may be reimbursed in exceptional circumstances for valid business purposes.
Reasonable costs for internet connectivity and access (e.g. hotel, airport) while traveling may be reimbursed provided that access is necessary for business purposes and not personal use. The business purposes must be documented in the reimbursement request.
Expenses incurred in attending professional development programs may be allowable. Departments determine who may attend such programs at Dartmouth's expense. Departments should ensure that the content of the program is of a substantive nature which directly relates to the employee's current or anticipated job responsibilities.
Travel costs and fees associated with continuing education credits required to maintain a professional certification that is not directly related to the employee's current position are not allowable business expenses.
Conference Registration and Similar Fees
Conference registration fees, abstract fees, and other similar types of expenses that must be paid in advance of a professional development program should be paid by P-Card, Corporate Card, or Dartmouth check.
In those rare instances when a direct Dartmouth payment for these types of fees is not possible, employees or students may use their own funds for the conference registration (or similar expense) and be reimbursed on a business expense report. If the conference is canceled after the payment is made, the employee or student must reimburse Dartmouth for the amount that has been reimbursed to them.
Temporary vs. Indefinite (Greater than 12 months) Travel
If an individual's travel assignment is realistically expected to last longer than 12 months, or if it is later extended so that the total assignment is realistically expected to last longer than 12 months, expenses for meals and lodging at that location cannot be considered non-taxable business expenses under IRS regulations. Under IRS guidance, an assignment that is expected to last more than 12 months is treated as indefinite and the assignment location is considered to be the traveler's tax home. As such meals and lodging expenses are treated as personal living expenses rather than business travel expenses and reimbursements must be reported as taxable compensation to the employee and subject to tax withholdings.
In these exceptional circumstances, the department should contact the Finance Center or Controller's Office well in advance of the temporary assignment for more specific information and instructions.
Personal Business Conducted Before, During or After Business Travel
Additional costs incurred for earlier departure or later return are not reimbursable since these are personal expenses unless the savings in airfare is equal to or greater than the total costs for lodging, meals, etc., incurred during the additional day(s) of travel. All additional costs and other considerations must be weighed against the savings in airfare. The employee is responsible for obtaining and documenting proof of cost savings when submitting their expense report.
Expenses of a strictly personal nature, as well as any incremental travel costs incurred to conduct personal business during a business trip, are the responsibility of the traveler.
Incremental costs are otherwise reimbursable expenses which would not have been incurred on the business portion of the trip, except for the fact that the traveler conducted personal business at some time during the trip. Such incremental expenses must be identified and deducted from the business expense report.
Every effort should be made to avoid charging personal expenses to Dartmouth accounts despite the intention of the traveler or a third party to later reimburse Dartmouth for these charges. Airline reservations for personal travel made through ALTOUR must be charged to a personal credit card and not be directly billed to a GL/ PTAEO chart string.
Accompanying Spouses, Partners or Other Family Members
Expenses incurred for accompanying spouses, partners, caregivers or other family members are considered personal in nature except on the infrequent occasion when the individual has a significant role at an event and it furthers the mission of Dartmouth. In accordance with IRS regulations, to qualify as a bona fide business purpose, the presence of the spouse must be essential (not merely beneficial) to the employee's ability to carry out their responsibilities. In these cases, the travel expense of the spouse, partner, caregiver, or other family members must be pre-approved in writing by the appropriate officer: Dean, Vice President, Provost, President, or member of the Board of Trustees. This written approval must be submitted with the business expense report and must document the business purpose served by the spouse, partner, caregiver, or other family member's attendance at the meeting or function.
Federal tax law requires that amounts paid by an employer for spousal, partner, caregiver, or other family member's travel expenses be reported as taxable to the employee unless the spouse, partner, caregiver or family member's presence on the trip serves a bona fide business purpose. The IRS has ruled that when a spouse, partner, caregiver, or family member attends a meeting or conference and has no significant role or performs only incidental duties of a clerical or secretarial nature, the attendance does NOT constitute a business purpose. Departments should consult the Controller's Office prior to making commitments to reimburse for spousal, partner, caregiver, or family member travel as the reimbursement may be taxable to the employee.
Travel or Expenses Paid by Third Parties
Employees who have non-Dartmouth business affiliations may occasionally conduct business for both Dartmouth and their other business affiliate or sponsor during a trip. In these instances, the traveler must prorate all expenses associated with the trip that are reasonably allocable to each endeavor.
Ordinarily, expenses which are allocable to non-Dartmouth business should not be charged to department chart strings even though the traveler or a third party intends to reimburse Dartmouth for these charges at a later date.
Travel expenses may be paid by a sponsoring industry association when associated with speaking at a conference. Travel expenses should not be paid by a vendor, organization, or individual with which Dartmouth is or may be conducting business. All employees are expected not to compromise any business transaction, even in appearance, in exchange for personal benefit. For more information on ethical conduct in dealing with business associates, review the Gift Policy.
When Dartmouth is covering the cost of travel, room and board, and other expenses of visitors and recruits (hereinafter referred to as visitors), Dartmouth travel and reimbursement policies apply to their expenses as well. Visitors, or departments on the visitor's behalf, must adhere to the same reasonableness standards and submit required documentation supporting expenditures. It is the responsibility of the sponsoring department to make visitors aware of Dartmouth policies.
Reimbursement of the visitor's expenses will be made in the normal manner once a completed business expense report has been reviewed and approved. Dartmouth will reimburse the travel costs of students and non-employees (such as job applicants, lecturers, consultants and other individuals) when required by authorized contractual agreement or when approved in advance by a department head or senior officer. Reimbursement will be made in accordance with this policy.
If rental housing for a visitor is to be paid directly to a landlord or property owner, departments should contact Dartmouth's Real Estate Office. Per the Signature Authority Policy, the Real Estate Office must approve all residential leases.
If necessary, visitors may request advances for expenses which will be reimbursed by Dartmouth, however, advances must be recorded in the name of an employee, since the employee is ultimately responsible for the settlement of the advance. Any problems with payment or reimbursement of expenses for visitors should be discussed with the Finance Center to ensure the proper handling of expenditures.
Visitors' parking can be paid for by an employee's P-Card or Corporate Card.
Relocation Expenses of Newly Hired Employees
Departments may, in hiring new employees, agree to pay all or a portion of the cost of relocating individuals and their families to the Upper Valley area. The level of reimbursement is based upon the agreement between the employee and the hiring department. New hires should refer to the Procure-to-Pay Portal for contact information related to Dartmouth-approved contracted moving suppliers.
Recently hired employees moving to the Upper Valley area may be reimbursed for the transporting of their personal vehicle(s) to their new home. All relocation costs should be charged to the appropriate GL/PTAEO chart string using the relocation/moving natural class, regardless of whether the expenses are paid directly by submitting invoices for payment or paid to employees as reimbursement for their out-of-pocket expenses. Documentation is required for all costs associated with relocation and house hunting.
Relocation expenses paid directly by Dartmouth on behalf of an employee or reimbursed to the employee must be treated as additional compensation and are subject to both income and employment tax withholding. Expenses paid directly by Dartmouth will result in imputed income being added to an employee's paycheck with required taxes withheld and reported on the employee's IRS W-2 Form. Expenses that are paid directly by the employee will be reimbursed through payroll with required taxes withheld.
If an appointment is for less than one year, the employee is not, by IRS definition, moving. Instead, it is considered travel and any reimbursements fall under the travel section of this reimbursement policy. If Dartmouth is moving the employee's household goods, then those expenses are taxable.
Taxable and Non-taxable Employee Recruitment Expenses
Before an offer is accepted:
Payment of authorized recruitment travel expenses (such as airfare, lodging, and meals) incurred during the employee recruitment process is not taxable to the prospective employee.
After an offer is accepted:
After an offer of employment has been accepted, the employee/employer relationship is established and pre-move house hunting expenses (such as airfare, lodging, and meals) incurred by the employee and family are considered taxable income (if reimbursed).
Newly hired employees or supervisors of the employee should review the Relocation, Moving & Storage Services, Domestic & International Policy or call (603) 646-2811 for further assistance.
Memberships, Dues and Subscriptions
Fees for individual memberships in business associations, as well as fees for magazine, newspaper, or newsletter subscriptions, may be allowable. Approvers or delegates will decide whether these costs will be covered. Individual membership in professional associations or other costs incurred to maintain professional certifications or licenses that are directly related to the employee's current position and have a clear business benefit to Dartmouth are allowable.
The cost of memberships in athletic clubs, faculty clubs, social clubs, fraternal orders, buying clubs, or other similar organizations generally do not qualify as business expenses. Employees must pay for these memberships personally, unless there is a clear business benefit and the primary purpose of the membership is to benefit Dartmouth. In these special instances, they must be charged to the appropriate natural class and have been pre-approved by a Dean, Vice President, Provost, President, or member of the Board of Trustees. The Controller must be notified when memberships are approved to ensure appropriate tax reporting and documentation.
Mobile Communication Devices and Services
The Mobile Communication Device and Services Policy is intended to guide individuals and entities within Dartmouth to consistent, clear and fair decisions about the management of devices and plans. In so doing, the policy is expected to support individual and entity effectiveness and productivity at least total cost to Dartmouth.
Gifts to Employees and Students
Allowable/Non-allowable
Certain gifts for employees and students are allowable, up to a maximum of $100 per person (pp), and can be charged to a department GL string with appropriate departmental or divisional approval. Allowable and non-allowable gifts are outlined below. Any questions about gifts should be directed to your Fiscal Officer or Finance Center.
|
Occasion |
Allowable |
Unallowable |
|---|---|---|
|
Departure of long-term employee (10 or more years of service) |
x |
|
|
Gifts for retiring employee (Dartmouth recommends $15 per year of service with a max of $400 for retirement gifts) |
x |
|
|
Serious Illness of an employee requiring hospitalization |
x |
|
|
Death of an employee or an employee's immediate family member (2) |
x |
|
|
Gifts provided for morale or team building when provided at a department-wide picnic or retreat |
x |
|
|
Prizes, such as door prizes and raffles at university-sponsored events |
x |
|
|
Gifts in recognition of a work-related accomplishment or event (1) |
|
x |
|
Institutional or divisional service awards (1) |
|
x |
|
Gifts and events recognizing holidays, birthdays, weddings, baby showers, housewarming, and other non-work-related achievements or events, etc. |
|
x |
(1) Unallowable as Dartmouth has college-wide programmed funds to recognize these events.
(2) Immediate family member is defined in the Dartmouth Bereavement policy.
Taxability of Gifts to Employee and Students
Gifts paid for by Dartmouth funds and received by employees or students are taxable and must be reported as income if their value exceeds the following dollar thresholds:
Gift cards for research participants must adhere to the Research Participant Payments Policy and the How to Pay Research Participants guidance on the website.
Reporting of Gifts to Employee and Students
Regardless of expenditure amount, documentation for all gifts/gift cards purchased must include a detailed receipt, specific business purpose, and recipient name(s) when submitting the P-Card eForm or Payment Request eForm at the time of purchase, or through the General Request eForm if the recipient is identified after the time of purchase.
For gifts to employees, the Finance Center will submit the General Request eForm to the Payroll Office for calculation of imputed income to be included in the employee's pay. The employee's annual IRS W-2 Form will reflect the taxable income for that calendar year.
Gifts to students will be reported by the Finance Center to Accounts Payable through the General Request eForm if payment of gift was not processed directly through an AP payment for reporting on a 1099.
Gifts for non-employees may be paid for with Dartmouth funds when there is a legitimate business purpose. Regardless of expenditure amount, documentation for all gifts/gift cards purchased must include a detailed receipt, specific business purpose and recipient name(s).
Taxability of Gifts to Non-Employees:
For all other categories, refer to the Procure-to-Pay Portal for preferred vendor information and appropriate procurement or payment mechanisms. If a category is not listed, please contact your Finance Center or Procurement Services for more information.
Dartmouth is a federally tax-exempt institution and is also classified as an exempt organization in many, but not all, states. This means that Dartmouth is exempt from "transactions privilege" and/or sales tax in these states. State tax exemption certificates allow an exemption for purchases made by Dartmouth in the ordinary course of conducting its educational and research activities. Note that many of these states do not extend this exemption to room and meals taxes. In some cases, certain conditions or documentation requirements must be met before the exemption is granted. See Employee Resources for additional information on State Sales Tax Exemption Certificates.
Dartmouth will not pay for expenses which are inherently personal in nature. The following is a sample list of personal expenses which are generally not reimbursable as business expenses:
Travel Related:
Meal Related:
Other:
|
Individual Being Reimbursed: |
Responsible for complying with Dartmouth policies and procedures, providing complete and accurate information, submitting required receipts, and submitting expense reports within required deadlines. Responsible for reviewing reports prepared by delegates on their behalf for accuracy and reimbursing Dartmouth for unused advances or personal expenses charged to the Corporate Card. For expenses funded by a sponsored grant or contract, individual is responsible for checking with the Office of Sponsored Projects (OSP) to ensure that all agency procedures and restrictions are followed prior to incurring any costs. |
|
Departments / Supervisors: |
Responsible for interpretation of this policy, ensuring proper use of Dartmouth funds when approving reimbursements. |
|
Finance Centers: |
Responsible for reviewing documents for accuracy and proper documentation. Depending on the dollar amount of the reimbursement, this review includes verification of: (a) proper supporting documentation, (b) accuracy of addition and mileage calculations, (c) authorizing signature, and (d) GL/PTAEO string. In the course of the review, Finance Center staff may request approval from senior administrative officers when claimed reimbursements appear unreasonable or do not comply with policy. |
|
**AUDIT** |
A sample of business expense reports will be selected for pre-processing quality control review. The reviews will include verification of (a) proper supporting documentation (b) appropriate approval, and (c) compliance with this policy. In the course of the review, the Controller's Office, Procurement Services or the Finance Centers may request approval from senior administrative officers when expenses appear unreasonable or do not comply with policy. |
Most relevant forms and instructions can be found on the Finance website under Forms, Policies, and Systems.
See exclusions and exceptions within this Policy. Other exceptions may be granted only by the Controller, Chief Financial Officer, Executive Vice President, Provost, President, or Board of Trustees member.
Payments approved as exceptions to this policy may have tax implications to the recipient. A request to gross-up the payment for tax implications must also be approved by the individuals authorized to approve the payment exception.
Dartmouth could be cited by the IRS for having an "unaccountable plan" if reimbursements are made to individuals that do not adhere to this policy. Any reimbursements made to an employee, student or visitor under a non-accountable plan would then have to be reported as additional compensation on an individual's IRS Form W-2, 1042s or 1099. Employees, students, and visitors would then report this as taxable income on their annual IRS tax filing.
A Dartmouth employee's failure to adhere to this policy may result in disciplinary action.