Chapter 3349-11 | Finance

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

• Effective: August 9, 2016
• Promulgated Under: 111.15

(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 the following definitions.

(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.

Last updated October 2, 2024 at 9:06 AM

Supplemental Information

Authorized By: 111, 15
Amplifies: 111, 15

Rule 3349-11-50 | Purchasing and selling university property.

• Effective: November 16, 2020
• Promulgated Under: 111.15

(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

This rule applies to all purchases and sales of university property, other than construction projects, capital assets, and certain grants for purchases that qualify as capital assets, please refer to rule 3349-11-49 of the Administrative Code. The procurement on federal grants depends upon the guidelines of the specific grant. In circumstances where the limitations of the grant guidelines are more restrictive than university rule, the grant rules will apply. In the absence of grant procurement guidelines, university rule will apply.

(C) Definitions

(1) Aggregate cost refers to the collective and final price of the procurement activity. As an example, if a service was procured for three years with an annual cost, the aggregate cost would be the summation of the three annual costs. If a good was procured in bulk, the aggregate cost would be the cost summation of each individual good.

(2) Competitive bidding refers to the procurement method used when each seller may have a similar product or service and a standardized evaluation method is used to determine the awarding of the contract, as outlined in the request for proposal (RFP).

(3) Good (end product) refers to physical items, software, digital solutions/systems, or any other type of non-service product procured by the university from a seller.

(4) Competitive quotes refer to soliciting and obtaining quotes for the same good or service from multiple vendors or suppliers, either directly from the seller or through their public website.

(5) Inter-university council purchasing group (IUC-PG) refers to a purchasing consortium comprised of the purchasing officers of the state of Ohio institutions of higher education.

(6) Purchaser refers to a university employee with procurement authority for their division or department.

(7) Request for proposal (RFP) refers to a formalized document that solicits proposals from qualified sellers with the intent to procure a specific good, service, or other type of asset for the university.

(8) Sealed bid refers to the procurement method used when there are specifications with a defined quantity for a fixed price, where the lowest and/or most responsive bidder is awarded the contract.

(9) Seller refers to a vendor or supplier that sells a goods or services.

(10) Service refers to a procured activity that directly engages the time and effort of a contractor or vendor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

(11) Sole source purchase refers to the purchase of a good or service in which the needed product is only available from a single vendor, only that vendor can provide the product in the timeframe required or the competition is deemed inadequate, after solicitation attempts.

(12) University procurement refers to the methods of obtaining a lower fixed cost either through IUC, group purchasing or organizations or university contracts. Purchasing of a good or service for the university.

(D) Body of rule

(1) Administration of university procedure activities

All university procurement activities shall be administered by the division of operation and finance. The office of budget and accounting has been assigned the following primary responsibilities related to purchasing:

(a) Performing the purchasing function in compliance with applicable state and federal regulations, laws, and guidelines, and university policies including maintaining current language in the RFP and purchase orders regarding vendor requirements;

(b) Coordinating the purchase of goods and/or services required by the requisitioning department, as economically as possible and consistent with desired quality using principles of value analysis;

(c) Administering required competitive bidding processes including, but not limited to, approving or denying requests for waiver of competitive bidding and obtaining completed security questionnaires, where applicable, from potential vendors;

(d) Establishing vendor contracts for purchase of goods and/or services as well as rental or lease of equipment with review by university counsel prior to execution of contracts;

(e) Providing guidance and information to the university community regarding mandatory use of university contracts and monitoring adherence to this requirement;

(f) Generating purchase orders and authorizing change orders for goods and/or services;

(g) Recommending standard specifications for equipment and materials of common use throughout the university;

(h) Encouraging participation of diverse suppliers in all university purchase agreements;

(i) Monitoring the use of the university purchasing card (p-card) program;

(j) Participating in the inter-university council contracts, state of Ohio term contracts, other universities' contracts, or other joint/group purchasing contracts when such contracts resulted from competitive bidding; and

(k) Maintaining all competitive bidding documentation, including purchase orders, invoices, and other items necessary for the basis of selection. These are available for future review.

(2) Procurement standards

(a) Authority. No individual has the authority to enter into purchase contracts or to obligate the university to any agreements other than those individuals who have been properly delegated authority.

(b) Costs incurred by the university must be necessary and cost-effective.

(c) The university has competitively selected, formally negotiated agreements or has access to preferred and collaborative agreements for numerous goods, services and capital equipment that include benefits such as favorable terms and conditions, discounted pricing, guaranteed performance levels, no-hassle return policies, free or reduced freight costs, volume incentives and liability and insurance protection.

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

(e) Any procurement transaction or negotiation of a personal nature is prohibited.

(i) Purchases of questionable or concerning nature may be referred by the office of operations and finance to general counsel and/or subject to internal audit.

(ii) Conflicts of interest when procuring are not permitted. It is the responsibility of the purchaser to ensure that the university does not knowingly enter into any commitments that could result in a conflict of interest.

(f) The purchaser must maintain documentation addressing cost and price analysis, as well as vendor selection, dependent on procurement method listed in this paragraph.

(3) Regulations that must be considered when making purchases:

(a) Preferred suppliers and existing agreements. Whenever existing federal, state, inter-university council, or other group purchasing organization agreements or contracts from other state of Ohio universities are used as a source for establishing prices where, in the discretion of the director of procurement, such bidding process utilized by the entity is consistent with the minimum protections required by university rule and state and federal law. Any such contracts must have resulted from competitive bidding that adhered to state requirements and university rule.

(b) Supplier diversity

The university has a goal consistent with section 125.081 of the Revised Code to procure a per centage of its eligible goods and/or services from state certified minority business enterprises (MBE), women's business enterprises, and labor surplus area firms. As such, all departments are responsible for taking action as outlined below where reasonable. Affirmative actions include:

(i) Including certified MBEs on solicitation lists;

(ii) Dividing total requirements when economically feasible, into smaller tasks or quantities to permit maximum participation by MBEs;

(iii) Establishing delivery schedules, where the requirement permits, which encourage participation by MBEs;

(iv) Using the services and assistance of the small business administration and the minority business development agency of the department of commerce where applicable;

(v) Requiring prime contractors, if subcontractors are let, to take the affirmative steps listed above.

(c) Equal employment opportunity requirement. The university requires that a supplier, in bidding and/or filing a purchase order, agrees not to discriminate against any employee or applicant for employment with respect to hiring and tenure, terms, conditions, or privileges of employment, or any matter directly or indirectly related to employment, because of race, color, religion, gender, age, sexual orientation, national origin, disability, or identity as a disabled veteran or veteran of the Vietnam era to the extent required by law. The supplier must further agree that every subcontract for a given order will contain a provision requiring nondiscrimination in employment, as specified in this rule. This covenant is required pursuant to Executive Order 11246 of the U.S. department of labor and Executive Order 11375 of the U.S. department of labor, and any breach thereof may be regarded as a material breach of the contract or purchase order.

(d) Other state and federal legal requirements. All vendors transacting any form of business with the university shall comply with all state and federal laws and shall not be banned from doing business with the federal government thus identified on a federal list of debarred or excluded suppliers.

(e) Data security. Vendors who will have access to data by virtue of a university agreement to purchase goods and/or services shall comply with requirements as established by the university. These requirements include, but are not limited to, providing relevant attestations, completing data security questionnaires, and complying with the university's data security policies and procedures.

(f) Tax exemption. The university is exempt from paying Ohio sales tax (and other recognized states). All agreements must comply with this provision where appropriate.

(g) 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.

(h) 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. 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.

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

(1) A cost or price analysis must be done in connection with every procurement action including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation. Purchasers must make independent estimates before receiving bids or proposals. The resultant contract will be executed only after all appropriate approvals have been secured by the financial manager, grants accounting, the vice president for operations and finance, and the board of trustees where applicable. University general counsel will review all contracts that require a signature by the vice president for operations and finance and the board of trustees.

(2) Purchases less than five thousand dollars in aggregate or micro-purchases less than ten 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):

(a) Do not require sealed bids, competitive bidding or competitive quotes

(b) Reasonable efforts to conduct a cost or price analysis should be made

(c) Must spread purchases out among qualified suppliers

(d) Must be approved by the financial manager

(e) If grant funded, requires additional approval from grants accounting

(f) Terms and conditions may need approval through general counsel prior to purchase

(3) Purchases between five thousand dollars and forty-nine thousand nine hundred ninety-nine dollars in aggregate or small purchases between ten thousand dollars and forty-nine thousand nine hundred ninety-nine dollars for federal grants:

(a) Require competitive quotes 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.

(b) If the aggregate cost of goods is five thousand dollars or more, a purchase order is required regardless of funding.

Appropriate approvals are obtained through the purchase order process. Terms and conditions may need approval through general counsel prior to purchase.

(4) Purchases in aggregate between fifty thousand dollars and four hundred ninety-nine nine thousand nine hundred ninety-nine dollars:

(a) The sealed bid or competitive bidding process must be used for these purchases. The university uses public purchase to advertise and solicit competitive bidding. The request will be available to allow sufficient time to obtain a minimum of two qualified bids.

(i) All bids are sealed until the expiration of the RFP deadline when the files are sent to a committee for evaluation. For competitive bids, details of the evaluations are based on the matrix outlined in the RFP and are maintained by the department of operations and finance.

(ii) Sealed (fixed price) bids should be opened publicly at the time and place as outlined in the invitation to bid and are awarded to the lowest responsive and responsible bidder.

(b) Administration of competitive bidding. Formal quotations and/or proposals for all purchases that require competitive bidding will be obtained by the procurement department through a request for proposal (RFP) or request for quotation (RFQ) based on written descriptions or specifications provided by the requisitioning department.

(c) Solicitation of bids. Any purchase or lease of goods and/or services that requires competitive bidding will be advertised in a way that is most beneficial to the university while satisfying requirements of competitive bidding.

(d) Vendor selection. The vendor selected as a result of a competitive bidding process shall be the vendor determined to offer the best overall value taking into consideration all factors identified in the specifications of the bid solicitation.

(e) Notification of vendor selection. The vendor selected and all other vendors responding to a bid solicitation shall be notified in a timely fashion of the selection pending approval by the board of trustees (where applicable) and execution of a contract. In cases requiring approval of the board of trustees, contract terms may be negotiated pending the approval, however such negotiation shall not revise or otherwise materially change or alter the specifications provided for in the bid documents and/or response.

(f) If not identified until after the fact that aggregate purchases from a single supplier during a fiscal year have reached the dollar limits requiring competitive bidding, future purchases from the same supplier will not be made until competitive bidding has been conducted. This subsequent competitive bidding will be required only if it is likely that the future purchases of similar goods and/or services from that supplier within the fiscal year will again exceed established dollar limits.

(g) All terms and conditions will need to be reviewed by general counsel prior to purchase

(h) These purchases require a purchase order.

(5) Purchases in aggregate of five hundred thousand dollars or more

(a) Require the same competitive bidding process as the previous threshold and the additional approval of the board of trustees.

(b) All terms and conditions will need to be reviewed by general counsel prior to purchase.

(c) These purchases require a purchase order.

(6) Waiver of competitive or sealed bidding

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

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

(ii) In the judgement 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 reasons.

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

(a) What the piece of equipment is and how it is used.

(b) If anyone else sells this equipment, it is not a single source and will need multiple quotes.

(c) What other vendors the university has looked at to know if they do and do not have this or similar equipment.

(d) What aspect of this equipment from this vendor is different and necessary over any other similar equipment? Document if this aspect is different from other equipment. If not, it is a single source. If it is, explain why this is necessary.

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

(iv) In general, the following do not require competitive bidding:

(a) Temporary staffing (except where the cost of a single staffing engagement is fifty thousand dollars or more);

(b) Legal services;

(c) Annual year-end financial audit services;

(d) Real estate or investments and associated fees;

(e) Regulated utilities;

(f) Publishers (books, periodicals, and other published materials) (this exception does not include distributors of published materials.);

(g) Entertainment providers;

(h) Dues or fees for institutional membership in an organization or association;

(i) Tickets for passenger air transportation;

(j) Public notifications required by law or to provide notification of job openings;

(k) Postage purchased from the U.S. postal service (USPS) or through a vendor at official USPS rates; or

(l) Purchases from state agencies or other state-assisted institutions of higher education.

(F) Procurement for construction

Purchases related to construction are governed by separate requirements set forth in the construction procurement procedures.

(G) Sale of equipment

(1) To determine whether equipment is eligible to be sold, refer rule 3349-11-49 of the Administrative Code. 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:

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

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

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

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

(2) 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.

Last updated October 2, 2024 at 9:06 AM

Supplemental Information

Authorized By: 111.15
Amplifies: 3350.12
Prior Effective Dates: 2/2/2015, 8/26/2016

Rule 3349-11-70 | Travel Rule.

• Effective: November 4, 2023
• Promulgated Under: 111.15

(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. Failure to adhere to the provisions set forth in this policy may result in non-payment of travel expenses.

(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

"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) Utilize the university's travel management system to book business travel. Questions can be directed to [e-mail].

(b) 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.

(c) 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.

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

(e) 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.

(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. The university prefers employees obtain a rental car for university-authorized business travel. Rental cars must be obtained through one of the university's contracted rental car agencies. Pricing to the university through contracted vendors includes the necessary insurance and damage waivers. If a rental car is not available through one of the contracted rental agencies and a different agency is utilized, the university requires 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. Non-employees of NEOMED are not permitted to be added as an additional driver. 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. If a rental car is not utilized for travel, 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.

(10) Accommodations. Disability-related travel accommodations that result in additional expenses must be approved in advance through human resources in accordance with rule 3349-7-25 of the Administrative Code.

Last updated October 10, 2024 at 10:59 AM

Supplemental Information

Authorized By: 111.15
Amplifies: 3350.12