Chapter 3349-11 Expenses Incurred for Purcahse, Management, Selling of University Property and Travel

3349-11-49 Purchase and management of capital assets.

(A) Purpose

To establish a rule to ensure the university's assets are classified, safeguarded, controlled, disposed of, and accounted for in accordance with state and federal regulations, applicable accounting pronouncements, and auditor requirements. This rule is used by the university to set a threshold, above which qualifying expenditures are recorded as capital assets, and below which are charged as an expense when incurred.

(B) Scope

Capital assets acquired by the university with a useful life beyond a single reporting period (generally one year) and with a value that is at least the minimum stated in definitions the following.

(C) Definitions

(1) Consult rule 3349 7 01 of the Administrative Code.

(2) Asset life is the estimated number of months or years that an asset will be able to be used for the purpose for which it was acquired.

(3) Donated assets are acquired by gift, donation, or payment of a nominal sum not reflective of the asset's market value.

(4) Capitalized assets are assets that can be acquired through various means, such as purchase, donation, construction, fabrication, and capital lease where their historical cost is above the university approved threshold.

(5) Historical cost is the amount paid by an accounting entity to acquire an asset and make it ready to render the services for which it was required.

(D) Body of rule

(1) Reporting

Capital assets should be reported at historical cost (including ancillary costs such as freight and any installation charges) when paid for in full and in use. Donated assets should be recorded at their fair market value at the time received.

(2) Asset classifications

Capital assets include purchases at or more than

Capital assets include

Purchases at or more than

Land acquisitions

All

Land improvements

$25,000

Infrastructure *

$25,000

Building acquisitions

All

Buildings new construction

$25,000

Building renovations and improvements

$25,000

Leasehold improvements

$25,000

Vehicles

$ 5,000

Machinery and general equipment

$ 5,000

AV Equipment

$ 5,000

Computer hardware

$ 5,000

Office equipment

$ 5,000

Software

$75,000

Furniture

$ 5,000

Library collections

$ 5,000

Works of art and historical treasures

$ 5,000

Intangible assets **

Case by case basis

     

*Infrastructure assets have long lives and are usually stationary. Examples include: roads, bridges, tunnels, sewer systems and lighting systems. Unless part of a network of infrastructure assets, buildings are not included in this category.

**Intangible assets are those that lack physical substance, are non financial in nature, and have an initial useful life extending beyond a year. Intangible assets must be identifiable, meaning they are either capable of being separated by means of sale, transfer, license or rent, or they arise from contractual or other legal rights. Examples include: patents, copyrights and trademarks, easements and land use rights, campus owned websites or portals, and internally generated computer software.

(3) Asset lives and depreciation

(a) Asset lives:

Land

Indefinite

Land improvements

7 years

Infrastructure

20 years

Buildings acquisitions and new construction

40 years

Building improvements

20 years

Leasehold improvements

Life of the lease or economic life if ownership transfers

Vehicles

3 years

Machinery and general equipment

5 years

AV equipment

5 years

Computer hardware

3 years

Office equipment

5 years

Software

3 years

Furniture

7 years

Library collections

10 years

Works of art and historical treasurers

Indefinite

Intangible assets

Case by case basis

(b) Depreciation is calculated using straight line, with a half year convention method over the estimated useful life of the asset. Depreciation is recorded annually at fiscal year end.

(4) Care and use of capital equipment

(a) University must safeguard all property to prevent loss, damage, or theft; where by any loss, damage, or theft must be investigated. The equipment manager is required to have adequate maintenance procedures to keep the property in good condition.

(b) Property purchased with federal funds (gold asset tag) must adhere to the following requirements:

(i) The property must be used in the program or project for which it was acquired, as long as needed, whether or not the project or program continues to be supported by the university or federal award.

(ii) The expectation is that the primary use of the property is for the federally sponsored award that funded the equipment; however, the equipment may be shared with other activities as long as it does not interfere with the primary usage of the equipment.

(iii) When property is purchased with federal funds and is no longer needed for the original program or project, the property may be used in other activities supported by the federal awarding agency, in the following order of priority:

(a) Other awards from the same sponsoring agency that originally funded the equipment, then

(b) Activities sponsored by other federal awarding agencies, then

(c) All other university activities

(5) Impairment and insurance recoveries

(a) Impairment is when a capital asset stops working or changes its intended use.

(i) The following are tests for identifying impairment:

(a) Physical damage test

(b) The enactment of new regulations and standards that the asset cannot meet

(c) Technological advancement that makes the asset obsolete

(d) A change in manner or duration of the asset's use

(e) The end of construction of the asset (usually due to lack of funding)

(ii) When an impairment of an asset takes place it must be identified as a permanent or temporary impairment. If permanently impaired, it should be written off as a program loss. Once impairment loss is recognized, it should not be reversed. If an asset is temporarily impaired, the equipment manager should notify the accounting office of the surrounding circumstances so that the accounting office can research how to best account for the diminished service capacity of the capital asset.

(b) Insurance recoveries

When the impairment loss and an insurance recovery occur in the same year, the impairment loss should be reported at the net of the insurance recovery. However, if the insurance recovery takes place in subsequent years, the revenue from insurance should be reported as program revenue, non operating revenue, or an extraordinary item, according to the circumstances. Insurance recoveries are not reported until they are realized or realizable.

(6) Accountability

(a) Equipment managers are responsible for: affixing the university capital asset tag supplied by the accounting department to the piece of equipment; ensuring the physical security of all capital assets purchased; as well as assisting in the maintenance of accurate equipment records. The accounting department is responsible for maintaining the permanent detailed record of all capital equipment owned by the university including sponsored program acquisitions and all gifts of equipment. Transfer or disposition of equipment acquired with grant funds must comply with any applicable grant or agency restrictions.

(b) An equipment inventory confirmation report will be sent to each equipment manager on a bi annual basis. An inventory check must be performed; the inventory report updated and approved by the equipment manager; and returned to the accounting department in a timely manner.

(c) Department equipment inventories are subject to random unannounced audits by the accounting department and external auditors.

(7) Changes in equipment status

Changes in capitalized equipment status should be reported and approved by the equipment manager as they occur throughout the year. Changes, including the following, are to be reported to accounting at the time of the change using the "Capital Asset Property Disposal/Move form".

(a) Relocation of an asset within a department to another room or building requires the new location to be reported.

(b) Transfer of equipment from one department to another department. The department transferring the equipment and the department receiving the equipment must both sign off on the "Capital Asset Property Disposal/Move form" that the transfer occurred.

If the equipment being transferred was purchased with funds from a federal grant (gold asset tag), the transfer of the equipment between the departments remains subject to restrictions specified by the sponsoring agency in the agreement. Departments contemplating a transfer of federally funded equipment should complete the "Capital Asset Property Disposal/Move form" and gain the necessary approvals before the transfer is initiated.

(c) The trade in of equipment that is outdated, or considered surplus because of replacement purchases is allowed. The term "trade in" must be included on the requisition for purchase of the new piece of equipment. A description of the item being traded in (and an asset tag number if applicable) should be included. If the item being traded in is a capital asset (contains an asset tag), the equipment manager should submit the "Capital Asset Property Disposal/Move form" to the accounting office so the item can be deleted from the inventory listing.

Departments contemplating a trade in of federally funded equipment should complete the "Capital Asset Property Disposal/Move form" and gain the necessary approvals before the transfer is initiated.

(d) If an equipment manager has obtained an appointment outside of university and wishes to transfer equipment used in his or her research to their new employer, the equipment manager should submit a request to transfer and the university will determine whether a transfer is feasible, under the provisions of the applicable funding source. No equipment should be taken off premises until approval has been obtained.

(i) Equipment purchased in whole or in part with university funds must remain at the university, unless the university verifies that is not necessary for active or proposed research projects. If the university determines that the equipment is not essential for the research efforts of its faculty, it may be transferred to the employee's new employer, which may be asked to pay a fair market value of the equipment.

(ii) Equipment purchased with funds from a federal grant (gold asset tags) must be in accordance with the provisions of the applicable active or closed grant or contract. Approval for the transfer of equipment must be gained using the "Request to Transfer Equipment Title to Outside Entities" before the equipment is taken off premises.

(e) Disposal of equipment for obsolete, worn, and broken equipment which is being scrapped by the department must be initiated by the equipment manager using the "Capital Asset Property Disposal/Move form". Once the completed form is received by the accounting department, the item can be deleted from the inventory listing.

(i) Unless a sponsor indicates otherwise, university maintains title to federally funded capital equipment (gold asset tags). Title rests with university as long as the equipment is used for the authorized purposes of the project during the period of performance, or until the property is no longer needed for the purposes of the project and may be disposed of without additional sponsor approval. This will be reviewed by grants accounting when the "Capital Asset Property Disposal/Move form" is submitted to accounting.

(ii) If the equipment to be disposed was purchased with federal dollars (gold asset tags) and the sponsor indicated the title does not vest with the university, then the university must first request disposition instructions from the federal awarding agency. If the federal awarding agency fails to provide requested disposition instructions within one hundred twenty days, items of equipment with a current per unit fair market value in excess of five thousand dollars may be retained by the university or sold. Items of equipment with a current per unit fair market value is five thousand dollars or less must first be offered to any university department for a reasonable period of time prior to offering the surplus equipment for sale outside of the university.

(f) Refer to the purchasing and selling university property rule on requirements of selling equipment.

Effective: 8/9/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 111.15

3349-11-50 Purchasing and selling university property.

(A) Purpose

To establish a rule through which the university can purchase and sell property necessary to conduct its operations. The university procurement activities must be conducted in an efficient and cost-effective manner that supports the mission of the university while maintaining compliance with applicable state and federal laws and regulations.

(B) Scope

These procedures apply to all purchases and sales of university property.

(C) Definitions

(1) Consult rule 3349-7-01 of the Administrative Code.

(2) Sealed bid is the purchase method used when there are specifications with a defined quantity for a fixed price, where the lowest and most responsive bidder wins the contract. This method is generally used for construction contracts.

(3) Competitive bidding is the purchase method used when each vendor may have a similar product or services and a technical evaluation tool is used to determine the winning bid. This method is generally used for purchasing services, furniture, equipment etc.

(4) Competitive quotes are when you receive quotes for the same purchase or service from multiple vendors or suppliers.

(5) University procurement activities are the methods of obtaining a lower fixed cost either through inter-university council of Ohio, group purchasing organizations or university contracts.

(6) Sole source purchase is the purchase of a good or service in which the needed good or service is only available from a single source, only one source can provide the good or service in the time frame required and the competition is deemed inadequate, after solicitation attempts.

(D) Body of rule

(1) Administration of university procedure activities

All university procurement activities shall be administered through the division of administration and finance.

(2) Procurement must meet the following standards and other laws and regulations

(a) Costs incurred must be necessary and cost-effective.

(b) All procurement transactions must provide full and open competition.

(c) The university must maintain written standards regarding conflicts of interest.

(d) The purchaser must maintain documentation addressing cost and price analysis, and vendor selection, as applicable for the selected method of procurement.

(3) Regulations that must be considered when making purchases

(a) Mandated use of university preferred suppliers and agreements.

The university has competitively selected, formally negotiated or has access to preferred agreements for numerous goods, services and capital equipment. In utilization of these preferred suppliers, the university obtains numerous benefits which include favorable terms and conditions; guaranteed performance levels, no-hassle return policies, free or reduced freight costs, volume incentives, liability and insurance protection, as well as discounted pricing. Refer to administration and finance forms, policies, and procedures - accounting and purchasing - preferred vendors listing for a list of these preferred suppliers.

(b) Supplier diversity

The university shall seek to set aside approximately fifteen per cent of the estimated value of all purchases per year for competition by certified minority business enterprises in accordance with section 125.081 of the Revised Code.

(c) Buy Ohio

The university shall give preference in its purchasing activities to products that are produced or mined in Ohio and to bidders that qualify as having a significant Ohio economic presence in accordance with section 125.11 of the Revised Code. This requirement may be waived when compliance would result in the university paying an excessive price for the product or acquiring a disproportionately inferior product.

(d) Buy America

Section 125.11 of the Revised Code stipulates that state agencies and public colleges or universities shall give preference in its purchasing activities to products produced, mined, or manufactured in the United States in accordance with section 125.1 of the Revised Code. This requirement may be waived when a determination has been made that the products to be purchased are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality.

(4) Lease versus purchase analysis

When equipment is being purchased for projects of limited duration, the university will prepare an analysis, where appropriate, to determine if leasing is a better alternative to purchasing. The analysis will be done to determine which method is most economical and practical given the project.

(5) Methods of procurement for each purchase of goods or services:

(a) Purchases less than five thousand dollars in aggregate or micro-purchases less than three thousand dollars for federal grants. (two thousand dollars or less for federal grant purchases that are subject to the Davis-Bacon Act of 1931, under 23 U.S.C. 113 ).

(i) No sealed bids, competitive bidding or competitive quotes are required.

(ii) Must spread purchases out among qualified suppliers.

(b) Purchases between five thousand dollars and forty-nine thousand nine hundred ninety-nine dollars in aggregate or small purchases between three thousand dollars and forty-nine thousand nine hundred ninety-nine dollars for federal grants.

(i) Competitive quotes are required from at least three vendors if purchasing goods with university funds. If purchasing with a federal grant, competitive quotes are required for both goods and services excluding subcontracts.

An exception to this requirement is if the purchase is through the current university, inter-university council or other group purchasing organization negotiated contract.

(ii) Quotes can be obtained directly from suppliers or from their public website.

(c) Purchases in aggregate of fifty thousand dollars or more.

(i) The sealed bid or competitive bidding process must be used for these purchases.

(ii) Purchase must be publicly advertised and solicited from adequate suppliers.

(d) Single source purchases of any amount need to document the following:

(i) What is the piece of equipment and how is it used?

(ii) Does anyone else sell this equipment? If yes, not a single source and will need multiple quotes.

(iii) What other vendors have you looked at to know they do not have this or similar equipment?

(iv) What aspect of this equipment from this vendor is different and necessary over any other similar equipment? Do you need this aspect that is different from other equipment in your work? If not, not a single source. If yes, explain why this is necessary.

(6) Method of procurement for construction

(a) Aggregate cost of construction is less than two hundred thousand dollars.

(i) Competitive quotes are required from three or more qualified sources.

(ii) Quotes can be obtained directly from the source or from public websites.

(b) Aggregate cost of construction is two hundred thousand dollars or more

A sealed bid or competitive bidding must be used.

(7) Sealed and competitive bidding requirements

(a) A sealed bid must be advertised at a minimum electronically in the amount of time to sufficiently notify competing persons of the intended purchases and awarded to the supplier with the lowest fixed price and/or most responsive bidder only after three or more qualified suppliers bid on the good or service.

All bids and documentation must be kept with the department purchasing the good or service and must be available when requested from the accounting department.

(b) Competitive bidding must be advertised at a minimum electronically in the amount of time to sufficiently notify competing persons of the intended purchases. The good or service is award is given to the supplier with the most advantageous bid, price and other factors considered. The purchaser must have a documented procedure or method for conducting a technical evaluation or review of the bids and selection process.

All bids and documentation must be kept with the department purchasing the good or service and must be available when requested from the accounting department.

(8) Waiver of competitive or sealed bidding

Competitive bidding requirements may be waived for the purchase or lease of equipment, materials, supplies and services in the following instances:

(a) The board of trustees, the president or vice presidents determine an emergency situation exists that makes obtaining bids impossible or impractical.

(b) In the judgment of the responsible purchasing officer of the university, it is impossible or impractical to obtain more than one bid because the item is obtainable only from a single source, or for other sufficient economic reason.

(c) Existing federal, state, inter-university council, university or other university-partner contracts are used as a source for establishing price.

(9) Sale of equipment

(a) To determine whether equipment is eligible to be sold, refer to the purchase and management of capital assets policy. If it is allowed to be sold, and if no university department expresses interest in the equipment after a reasonable time, the property may be sold, disposed of or redistributed in one of the following manners:

(i) Pursuant to competitive bidding procedures with the award being made to the highest bidder;

(ii) Advertised public sale with the property having a price assigned to each item and sold to the public at a stipulated time and place;

(iii) Advertised public auction with the property being sold to the highest bidder;

(iv) Surplus property of minimal (salvage) value may be disposed of in the way most economical for the university.

(10) Ineligible bidders on sale of equipment

No employee of the university, or immediate family member of the employee, who has participated in the determination to dispose of property, participated in the preparation of property for sale, participated in determining the method of sale or acquired information not otherwise available to the general public regarding usage, condition, quality or value of property may bid on or purchase any property offered for sale by the university. To qualify as a purchaser of such property, an employee of the university may be asked to certify in writing that he has not participated in any of the activities or acquired information as specified in this rule.

Replaces: 3349-11-50

Effective: 8/26/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 111.15
Prior Effective Dates: 2/2/2015

3349-11-70 Travel rule.

(A) Purpose

To establish a rule through which the university will pay for reasonable and necessary expenses incurred by employees and eligible guests for university-authorized business travel, regardless of the funding source. This rule is designed to assure that all university-authorized business travel is conducted in a manner that is safe, cost-effective and efficient.

(B) Scope

This rule applies to all employees or guests traveling on university-authorized business, including employees traveling in conjunction with a sponsored program. In circumstances where the sponsored program guidelines are more restrictive than university rule, the sponsored program rules will apply. Travel expenses that do not conform with either this rule or the sponsored program guidelines will not be reimbursed to the employee or expensed to the sponsored program.

(C) Definitions

(1) Consult rule 3349-7-01 of the Administrative Code.

(2) "University-Approved Business Travel" refers to travel conducted by an employee in conjunction with the employee's responsibilities at the university. For the purposes of mileage reimbursement, university-approved business travel includes the use of one's personal car for transportation on university business in excess of one's normal commute. Daily commuting to and from home/work locations is not considered business travel and therefore is not eligible for travel reimbursement. University-approved business travel includes movement on official university business from home or the primary work location to another destination, and return to home or the primary work location. (i.e. The university will pay the shorter distance of home to temporary business or meeting location or university to temporary business or meeting location).

(D) Body of rule

(1) Cost. University employees should incur the lowest reasonable travel expenses and exercise care to avoid impropriety and/or the appearance of impropriety. To maintain cost-effective travel, employees must:

(a) Travel by common carrier at the lowest available rate in the chosen method of travel. Payment for first class, business class or travel upgrades is not permissible.

(b) Make their travel arrangements as early as possible to take advantage of lower rates. Ideally, arrangements should be made at least thirty days in advance of the trip.

(c) Utilize the government rate, where available, for all travel related expenses.

(d) Present a tax exempt certificate for consideration in conjunction with all travel related expenses.

(2) Long-term travel. Costs associated with long-term travel or living arrangements resulting from professional improvement and sabbatical leaves are not generally eligible for reimbursement by the university; however, travel on official university-authorized business during such leave may be reimbursed subject to certain limitations. Authorization must be obtained from the respective departmental head prior to a sabbatical or personal improvement leave.

(3) Authorization to travel. All travel must be authorized in advance and approved by the applicable department head. Supervisory approval of a completed employee expense reimbursement form will be deemed as approval of the itinerary as well as the accuracy and reasonableness of the request for reimbursement. Any travel not receiving prior proper pre-approval may be denied payment or reimbursement.

(4) Payment or reimbursement for travel related expenses. Reimbursements for travel and lodging cannot be made without submitting an original receipt.

(a) Travel arrangements made through a travel agency, web provider, or airline should be billed directly to a university p-card. If a university p-card is not available, a personal credit card may be used and the employee will be reimbursed. Reimbursement for air travel may be requested prior to trip date.

(b) Employees must submit approved request for reimbursement and supporting documentation to the accounting department within sixty days of completion of the trip to obtain reimbursement for the travel expenses. Travel expenses incurred in June must be submitted by July tenth for reimbursement.

(c) Alcohol and entertainment expenses incurred while an employee is traveling on university-authorized business are not reimbursable by the university.

(5) Domestic and international travel not related to a sponsored program. University-authorized business travel must adhere to the following travel guidelines to ensure cost-effective and efficient travel:

(a) Travel. Travel by air or other common carrier must be at the lowest available coach or economy fare consistent with scheduling needs, including the need to conserve time by selecting direct flights when available and appropriate. Employees who elect to travel on weekends in order to obtain lower fares may be reimbursed for other eligible travel expenses on the extra days if the end result reduces the total travel costs associated with the trip.

(b) Lodging. The university may pay for or reimburse reasonable, itemized expenses for lodging for overnight travel when the travel point is further than sixty miles from the traveler's home or regular business location or is otherwise required by the university business underlying the travel. Travelers will be reimbursed at the single room rate and that rate should be indicated on the itemized receipt. Charges for hotel mini-bar and room movie charges will not be reimbursed by the university. The employee expense reimbursement form must be supported by an original itemized hotel invoice showing full payment was made; a credit card charge slip is not acceptable documentation for reimbursement.

(c) Meals. The university will pay for or reimburse all approved meal expenses on overnight travel or travel that is more than sixty miles from the employee's home or primary work site up, to the federal general services administration per diem rates per city. According to the federal travel regulation, employees are entitled to seventy-five per cent of the prescribed meals and incidental expenses for one day travel away from their official work site if the travel is longer than twelve hours. (www.gsa.gov/ftr). Multiple day travel that starts prior to seven a.m. on the first day or ends after nine p.m. the last day will be considered a full day for travel per diem reimbursement.

(i) If a meal is served and is included in the cost of the transportation, conference or meeting fee, the per diem rate must be reduced based on the provided meal. Reimbursement requests for meal per diems while attending conferences, must include a copy of the conference itinerary showing what meal times were provided with the conference. Meal receipts are not required when using per diem rates, however, conference itineraries showing dates, location and meals provided are required when requesting meal reimbursements while attending conferences.

(ii) Business meals constitute an exception to the federal per diem rates. Expenses may be reimbursed for properly documented business meals while on travel status. The primary purpose must be a business discussion during which:

(a) At least one non-university employee, whose presence is necessary for the business discussion, must be present;

(b) Expenses will be reimbursed only for those individuals who are necessary to the business discussion;

(c) Documentation of the time, date, place, business purpose and attendees, in an addition to an original itemized receipt is required (in accordance with internal revenue service guidelines); and

(d) Gratuities cannot exceed twenty per cent of meal costs for business meals.

(d) Car rental. Employees that require a rental car for their university-authorized business travel can do so from enterprise or national rental cars, both of whom provide discounted corporate business-class pricing to the university. Pricing to the university through both contracted vendors includes the necessary insurance and damage waivers. If an employee utilizes another car rental agency, the university requests that the employee purchase a damage waiver and supplemental liability protection, which will be reimbursed by the university. When renting a car in a foreign country, it is required that all local, statutory and optional coverages, including collision damage waiver insurance, are purchased.

The university will need a copy of all signed lease agreements. Reimbursement for gasoline will be allowed on all approved car rentals only. An itemized receipt is required for reimbursement of car rentals and gasoline purchases.

(e) Other ground travel. The university may pay for or reimburse ground transportation and related expenses such as shuttle bus (between airport and hotel), taxi, bus, subway, tram, train, tolls and parking. Receipts must be submitted for any of the foregoing individual transportation costs that exceed twenty-five dollars per travel event.

(f) Personally-owned vehicles. The use of a personally-owned vehicle will be reimbursed at the internal revenue service's standard mileage rate in effect on the date of travel. The mileage rate is intended to cover all expenses incurred for using the privately-owned vehicle (e.g., insurance, gas, oil, wear and tear, etc.), except parking fees and tolls. The business mileage of an employee that is being paid a university car allowance will be reimbursed at a reduced rate under the internal revenue service's mileage rate for medical purposes in effect on the date of travel. For long distances where it maybe more cost efficient to travel by air, reimbursement for use of a personally-owned automobile will be paid at the lower of mileage allowance or accumulated airfare by coach for all individuals on approved travel status traveling in a car. An individual who uses a personally-owned vehicle on university business must meet liability insurance requirements of the motor vehicle financial responsibility laws of the state of Ohio. Personally-owned vehicle travel reimbursement must include applicable mileage (including date, business purpose, miles driven and destination).

Costs such as parking fees, tolls, taxi, and airport shuttle fares are reimbursable on an actual cost basis. Employees being paid a monthly car allowance will not be reimbursed for taxi or airport shuttle expenses from home to airport and back unless the travel time exceeds ten days.

(6) Domestic and international travel related to a sponsored program. Principal investigators and others traveling on sponsored funds are to be familiar with the allowable cost provisions of their sponsored program. Original itemized receipts are always required for expenses charged to sponsored program. Expenses for any travel and lodging arrangements, car rentals, ground transportation, conference registration or fee, or any meals to be charged to a sponsored program should be reviewed prior to purchase to insure that such expenses are allowable under the terms of the sponsored program. In addition to the terms of the sponsored program, investigators should note that:

(a) Sponsored programs that allow meal reimbursement require original itemized receipts. Most sponsors, however, including the federal government, do not allow business meals under the provisions of their sponsored program.

(b) Commercial air travel on certain sponsored programs must use United States flag air carrier service in order to comply with the Fly America Act, 49 U.S.C. 40118 (with some limited exceptions). Travelers using federal grant funds must verify that the chosen commercial carrier is in compliance with this act.

(7) Conference registration and fees. Registration and conference fees should be prepaid and paid using a university p-card. If a university p-card is not available, a personal credit card may be used and the employee will be reimbursed. A copy of the conference itinerary should accompany the payment request for the conference and the employee travel reimbursement. Cost of entertainment activities for conferences and/or meetings will not be paid or reimbursed. Example activities are: golf outings, fun runs, amusement parks, tours, sporting events, etc.

(8) Vacation in conjunction with business travel. Travel will only be paid when expenses are incurred at locations specific to the business purpose. Travel expenses to and from alternate vacation destinations while on business travel are not eligible for payment. If vacation time is added to a business trip, any cost variance in expenses such as airfare, car rental and/or lodging must be clearly identified and documented.

(9) Guest travel. The university may approve travel expenses to be paid for or reimbursed to guests of the university. Examples of these guests may include: lecturers, consultants, prospective faculty, staff, and students. Only actual expenses up to the federal per diem rates will be reimbursed to the guest. All reimbursements must be accompanied by an itemized receipt and are subject to all other restrictions contained in this rule. Travel expenses for spouses, companions, dependents or other family members of university faculty and staff are not eligible for advance payment or reimbursement unless the individual has a bona fide university purpose for engaging in the travel or attending the event. Documentation of business purpose is required.

Effective: 2/2/2015
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 111.15