General Policy

1. The University will reimburse reasonable travel and business expenses duly authorized and incurred for the conduct of University business by employees, students, and other persons in the official service of the University according to this policy, which shall apply to all departments regardless of the source of funds, and in all affiliated and related organizations. Spouse travel and expenses shall be reimbursed, from discretionary funds, only when authorized by specific policy or approval of the appropriate Dean or Vice President. Dean or Vice President spouse travel shall be approved by the Office of the President or Provost. Reimbursement will not be made to Practice Groups or other entities.
2. Persons incurring expenses on official business shall use the most economical and efficient means consistent with the best interest of the University and the purpose for which the expense is incurred. No duplicate claims or commuting expenses are allowed.
3. Each administrator is responsible for ensuring that reimbursements from programs or to persons under his or her authority are reasonable and appropriate for the purpose and charged to a program appropriate to that purpose. An administrator may set lower reimbursement rates and require pre-travel authorization for persons or programs under his or her responsibility.
4. Reimbursement claims shall be e-signed by the person seeking reimbursement, the immediate supervisor, and the person responsible for the program budget. If the immediate supervisor is not available to approve the travel expense report, the traveler should obtain approval from the next highest reporting level (i.e., the supervisor's supervisor). Individuals may not approve their own reimbursement or that of a colleague at the same reporting level, superior, spouse, relative, or household member. It is recommended that employees retain photocopies of expense reports and related receipts for their own records.
5. Original receipts, showing the date of the service, are required to be scanned for airfare, lodging, car rental, and registration fee claims. If the original receipt is not available, complete the Certification of Non-original Receipt form when submitting. Any other items in excess of $30 must also be documented by dated receipts. LIST OF NON-ALLOWABLE TRAVEL EXPENSES.
6. Traveler expense decisions shall be made in the best interest of the University. Side trips, vacations and extended stays with family and friends should not play a factor in making these decisions. Additional expenses for larger hotel rooms, premium vehicles, driving vs. flying to accommodate family and friends shall be deducted from the travel expense report prior to submission.
7. In order to comply with Federal regulations, documentation of the necessity of the travel for the employee is required for any expenses that are charged to a Federal award (e.g., an NIH grant). Examples of documentation that may appropriately justify necessity include meeting agendas, abstracts, copies of posters and/or presentations, etc. Such documentation should be submitted along with other required travel backup documentation with the Travel Expense Report.

Administration of Policy

1. To be reimbursable, business expenses must be properly substantiated, have a business connection and be submitted within certain time limitations. These time limitations determine both whether the cost may be reimbursed by the University as a business expense, and whether that reimbursement will be treated as taxable income to the individual.
 
In order that expenses are recorded on a timely basis, the University encourages that reimbursable business expenses be substantiated in writing within 30 days after the expense is paid or after returning from travel. No other reimbursement shall be made for a claim except to correct an error. Claimant shall state the purpose of each trip or for a business expense: nature, location and name of establishment, name, and title of those present, specific business topic discussed and time of discussion (before, during, or after the event). If non-work days interrupt official travel, the travel expense report shall show such dates. Only one (1) travel expense report per trip should be submitted, and each travel expense report should include only one (1) trip (except for mileage-only claims). This is regardless of how many funding sources or approval signatures are provided on the expense report.

In order to comply with IRS requirements, the University uses the IRS standards for establishing reasonable time limitations for determining the tax treatment of reimbursements, as follows:

• If written substantiation for the reimbursement is submitted within 60 calendar days of when the expenses were incurred or after returning from travel, and if all other requirements of the University’s Travel Policy are met, the reimbursement will be treated as a nontaxable reimbursement of a University business expense. 
• If written substantiation occurs more than 60 calendar days after the expenses were incurred or after returning from travel, the reimbursement must be reported to the IRS as taxable income paid to the individual. The amount of the reimbursement will be added to the employee’s W-2, and taxes withheld from pay.

Additionally, the following guidelines appear in IRS Publication 463 to establish what will be considered a "reasonable time" period for purposes of the following:

• Advance Payments – Funds can be advanced up to 30 days before reasonably anticipated expenses are paid or incurred (i.e., departure of trip). 
• Written Substantiation – Must be submitted within 60 days of when expenses are paid or incurred. 
• Return of Excess Amounts – within 60 days after expenses are paid or incurred.
  Note: Although the IRS Regulation specifies that excess funds from travel advances can be returned up to 120 days of trip return date, the University requires that all advances be reconciled within 60 days (to meet the above “written substantiation” rule) which means that all unused funds would also have to be returned within 60 days for the advance to be considered “reconciled”. Unsubstantiated advances and excess allowance funds not returned to the University within 60 calendar days, and reconciliations that include unallowable expenses, will be added to the employee’s W-2 as taxable income.

2. The Controller's Office or the traveler’s supervisor may require claim justification. The Controller's Office pays claims and, after rebuttal opportunity by those signing the claim, may disallow or reduce any claims contrary to this policy or account restrictions, or which cannot be justified.

3. Policy exceptions in the best interest of the University and interpretations will be made by the Director of Disbursement and may be appealed to the AVP for Finance/Controller except for travel claims for the VP for Finance and Provost, which shall be approved by the President. Reimbursement of the President is supervised on a post-audit basis by the Board of Trustees acting through its Chairman. Reimbursement of Trustees will be reported to the Board's Executive Committee on a post-audit quarterly basis through the Office of Audit Services.

Transportation and Lodging

1. Economy Required. University employees and/or students traveling on official business shall use the most economical, standard transportation available and the most direct and usually traveled routes. Expenses added by use of other transportation must be assumed by the individual.

2. Use of privately owned vehicles may be reimbursed at the prevailing IRS rate. Mileage claims, based on official mileage maps, must be more economical than the airfare available, except when the use of a vehicle is necessary. In the case that an employee decides to drive rather than fly to a destination that would typically be more cost effective to fly, please provide a copy of quote, dated at least two (2) weeks prior to the departure date, from the University's contracted travel agency with the travel expense report showing the most economical airfare available at the time of the trip. This will be used as a basis to determine the amount of reimbursement to the employee. An employee will not be reimbursed the full value of mileage charges if that amount exceeds this basis. Local travel shall be listed separately by trip including date, miles driven, and purpose. If separate lines on the travel expense report are not used, an attachment listing these items is acceptable (i.e., copy of an individual’s travel log). If actual gas expenses are claimed in lieu of mileage for personal vehicles (and for the fuel for rental vehicles), provide final receipts from the gas/fueling station. The “prepaid” version of the receipt issued prior to fueling is not a finalized paid receipt for documentation. If mileage is claimed, reimbursement for fuel charges cannot be claimed. When deciding whether to use a personal vehicle and claim mileage or obtain a rental vehicle, consider the number of miles to be driven and the number of days of the trip. Typically, any trip over 200 miles would be more economical using a rental vehicle. Also, note that the University’s insurance policy does not cover personal vehicles.

3. Commercial carrier travel including airfare may be reimbursed at actual cost including taxes and fees for the most economical class available. Airfare for travel with individual flight duration of at least 8 hours may be reimbursed up to business class fare. Reimbursement for business class is contingent upon prior approval from the traveler's Chairperson, Dean or Vice President. The University will make direct payment for tickets purchased from its contracted travel agent via the University's travel credit card. Travelers who find cheaper pricing from another source (trip consolidators not included) for the exact same itinerary with prices quoted at the same time, should contact an agent from the University's contracted travel agency. 

Meals and Other Expenses

1. For meals (including associated taxes and tips) not provided or otherwise reimbursed while on required travel with an overnight stay, a meal allowance may be paid. An overnight stay is required by the IRS to claim any of the following:

• A meal allowance may be paid at the prevailing per diem rate set by the U.S. General Services Administration for travel within Kentucky and the other 49 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, Guam and any other territory possession of the United States.
• Meals, tips, and taxes may be reimbursed on the basis of actual expenses with the approval of a supervisor and in lieu of a meal allowance for travel within the areas listed in item a. (above) paid from other than general funds or governmental grants and contracts, or externally funded sources. The amount of reimbursement must be no more than the prevailing per diem rate set by the U.S. General Services Administration.
• Meals may be reimbursed up to the federal per diem rates for the locale, the standard federal CONUS rate of $74 maximum per day or the actual meal costs (original receipts required), as determined by the supervisor or program limits, for travel outside the areas listed in item a. (above), (i.e., international travel). Care should be taken in advance to verify current restrictions if federal funds are charged for travel. One method should be selected and used for the entire travel expense report. Multiple methods cannot be used on one trip. 

Per Diem meal rates for domestic travel per the U.S. General Services Administration, please locate the applicable city and state.

Per Diem meal rates for international travel.

Maximum Daily Rate for Domestic Per Diem Rates (Overnight stay required per the IRS)

For Alaska, Hawaii, and U.S. Territory possessions: Calculate rate per meal at 20% for breakfast, 30% for lunch and 50% for dinner.

2. Actual costs may be reimbursed for parking, tolls, first checked baggage fees, internet (to conduct University business) and baggage handling, including delivery to or from a common carrier or lodging, and storage. Costs for overweight baggage, multiple checked baggage and shipping are allowed if a business necessity.

3. Costs of laundry and dry-cleaning may be reimbursed for business travel of more than six consecutive days. Overnight travelers may be reimbursed actual cost for pressing or emergency dry cleaning of one outfit worn for a business activity.

4. Other necessary expenses may be allowed by the Controller if in the interest of the University. Claimants should apply for prior authorization of such expenses with supervisor approval.

Entertainment

University entertainment is the arrangement of activities, events, or meals for the promotion and advancement of the university’s mission. While the breadth of the university’s mission may occasionally require entertainment needs, such expenditures must be reasonable and must be managed in a fiscally responsible manner. 

Meals or events that are primarily social in nature (i.e., public relations, development, etc.) and have a UofL-related business purpose may be permitted. Examples of acceptable entertainment expenses include:

• Alumni events and receptions.
• Faculty, staff, and student awards and appreciation events.
• Receptions for visiting scholars, dignitaries, award winners, etc.
• Meals including University guests and other non-employees.
• Donor and donor prospect meals and receptions.
• Commencement-related events.
• Recruitment of prospective faculty, staff, or students.
• Catered events in celebration of University milestones. 

Please note that this is not an all-inclusive list.  If you have any questions regarding a potential entertainment expense, please contact the Controller’s Office.

For more details on entertainment expenses and the documentation required, see the Entertainment/Business Meals Policy Grid.

**Entertainment expenses may not be reimbursed from federally sponsored programs.**

Business Meetings/Meals

For a meeting to be considered "business related,” the meeting must be planned with a defined, strategic business objective. A pre-meeting agenda is encouraged to establish expectations of the meeting. Whenever possible, meetings should be conducted outside of normal meal periods.

Meals or refreshments that are incidental to and a continuation of the business purpose of the meeting are considered business related and can be coded as Business Meals, 559000. Meals that include alcohol are considered to be entertainment expenses and must be coded as Entertainment/Social Expenses, 566000. 

Official departmental parties open to all employees are permitted.  Non-allowable expenses include parties or meals for social functions such as employee birthdays, weddings, births, and other personal events. 

For more details on business meals and the documentation required, see the Entertainment/Business Meals Policy Grid.

**Business meals and refreshments/alcohol are not allowable in support of federally sponsored programs unless they have been specifically approved by the funding agency.**

Tipping

Gratuities for business meals are allowable; however, they must be reasonable and not exceed a threshold of 20%.

Please be mindful of situations where gratuity is automatically included.  Any additional gratuity should not exceed a total of 20%. (For example, if your bill is $100 and an 18% tip is added by the merchant, any additional tipping should not exceed 2%, or $2.00.)

For large catering/delivery orders (pizza, sandwiches, box lunches, etc.), a 20% tip may be too generous. For example, if you order sandwiches from a nearby sub shop and the total cost is $1500, a 20% tip, or $300, would be excessive.  A 5% tip, or $75, would be more reasonable. 

Alcohol

Alcohol may be purchased in conjunction with the entertainment activities sponsored by your department or unit (see ENTERTAINMENT section above for the list of approved events). Since alcohol may present risks, events at which it is available should be managed with common sense and due care. For a detailed listing of permissible funding sources, refer to the Alcohol Beverage Purchases Policy.

**Alcohol may not be charged to general funds, sponsored programs, or other restricted funding sources.**

Spouse/Children Expenses (Rare) 

Spouse/children (including children under 18 years of age) meal and entertainment expenses shall be paid from discretionary funds only when authorized by specific policy or approval of the Department Head/Chair, or, in the case of the Dean or Vice President, expenses shall be approved by the Office of the President or Provost. 

Non-Employee Expenses

Non-employee (guest speaker, recruit, donor, etc.) meal and entertainment expenses may be paid in conjunction with the approved entertainment and business meal criteria.

Payment

The University’s ProCard is the required method of payment for business meals, entertainment, and alcohol expenses. On a limited exception basis, if a ProCard is not available, an employee or student* may pay out-of-pocket and request reimbursement through the Controller’s Office. (As a reminder, the ProCard cannot be used for an employee’s meals while traveling unless the employee is entertaining guest or conducting a business meal.)

*If affiliated with a course curriculum or academic performance, the Financial Aid Office must be contacted before arrangements are made and/or the expense is incurred.
Entertainment/Business Meal Policy Grid

DEFINING CRITERIA & REQUIRED DOCUMENTATION

** The ProCard is the required method of payment for entertainment and business meal expenses. Reimbursements will only be approved on a limited, exception basis.  

Group Travel

1. Group travel requirements may necessitate prior coordination between the Department and the Controller’s Office.
2. Contact Anthony Travel, Terri Hall at terrihall@anthonytravel.com, or call Anthony Travel at 502-369-8400, for assistance with group travel requirements. Agents can assist with both hotel and air travel.

Special Travel Rules

1. Authorization by the Provost is required before any costs are incurred for travel outside the continental United States, Alaska, and Hawaii regardless of the source of funds. Submit International Travel forms. Authorization must be signed by the traveler and supervisor (Department Chair or Dean for faculty) and submitted to the Provost at least 15 days before departure date.
2. Cash advances for international travel may be requested from the Controller's Office 10 days prior to departure. Any cash that is not used during the trip should be deposited at the Bursar's Office immediately upon return from the trip. The deposit should be accompanied by a Transmittal Sheet and coded to the same program/account code used for the original advance request.
3. Groups may arrange, by purchase order, lodging of four (4) or more persons on business at group rates as long as the lodging establishment is willing to direct bill the University after the stay is complete. If less than four employees are accompanying a group of students and /or non-employees on a trip, the employee(s) may also be covered on the PO, even if there are not a minimum of four employees.
4. The University will reimburse faculty, staff, and students for the cost of obtaining passports and visas, including photos, application fees, immunizations, mailing costs, etc. as long as:
   • The individual is traveling with explicit direction from the University to perform required work overseas or participate in a University sanctioned activity. 
   • There is a legitimate and documented business reason for the international travel. 
   • The charge is allowable for the funding source used. 
5. Hotel deposits may be reimbursed to the traveler prior to the trip when required by the lodging facility. This includes deposits covering the first night’s stay or any deposits covering the entire stay when required by the lodging facility in writing. Request for reimbursement of these deposits should be submitted on a Payment Request form (not a travel expense report) and should be accompanied by a receipt from the hotel/motel showing method of payment. Please note, it is the department’s responsibility to ensure that these deposits are recovered if a trip is canceled, and it is also the department’s responsibility to ensure that travelers do not receive reimbursements on their travel expense report.

Moving Expenses

Payment of reasonable moving expenses, up to a set amount, from non-federal unit funds may be authorized by Deans and Vice Presidents as part of the recruitment package for new full-time, regular status administrators, faculty and exempt staff (P&A) moving at least 75 miles and whose relocating principal residence is within 40 miles of the assigned University workstation. Such payment is not an entitlement and is negotiated on a case-by-case basis, and conditional upon use of movers under contract through the University Purchasing Department.

Reimbursement of non-deductible expenses to an individual and/or employee is considered income and will be reported to the IRS.

Effective January 1, 2018 - IRS Maximum Mileage Allowance for Moving Expenses: 18¢ per mile.

International Travel 

Unless stated otherwise in this section, all requirements for international travel reimbursement are the same as previously stated in this policy. For the purpose of this policy, international travel is defined as all travel outside the 50 U.S. States, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, Guam and any other territory possession of the United States.

1. Authorization

• Out-of-country authorization is required for all international travel regardless of the funding sources. The Out-of-Country Travel Form (pdf) must be approved by the following:
  • The person requesting the approval; and 
  • Department head or individual to whom the traveler reports; and 
  • Provost or designee. 
• This form must be approved prior to taking the trip and before making any reservations. Failure to comply with this will result in disapproval of the reimbursement request. No consideration will be given to forms filed after the trip has been taken. This form must be submitted no less than fifteen (15) working days prior to the departure date.

2. Transportation

• When traveling in a foreign country, it is advised that traveler’s obtain vehicle insurance provided by the rental car agency. When renting a vehicle, make sure that the University of Louisville is listed as the lessee (i.e., "John Doe/University of Louisville"). View the University’s Automobile Insurance Coverage Policy.
• Fly American Act. When federal funds are used for foreign travel, tickets must be purchased in compliance with the Fly American Act, which states that travelers are required to use a U.S. flag air carrier. The only exceptions to using a foreign air carrier would be:
  • In the event of a medical emergency. 
  • For physical security. 
  • If no U.S. Flag air carrier provides service to the traveler's destination. 
  • If the user of a U.S. Flag air carrier would extend the travel time by 6 or more hours, increase the number of aircraft changes outside the U.S. by 2 or more, require a connection time of 4 or more hours at an overseas interchange point.
    

3. Reimbursement Rates

• Meals and incidental expenses:
   For International Travel, the traveler can request reimbursement using one of the three methods listed below:
  • Federal Standard CONUS rate of $46 per day. 
  • Actual costs with original receipts supporting the claim. 
  • Federal Per Diem rates for that locale at the time the travel occurred. 
• The option used is at the discretion of the home department and what is allowed under the grant or contract. The traveler may use only one method of reimbursement for the trip.

4. Foreign Travel Advance

• In certain circumstances, an advance may be necessary. These advances may be only requested for foreign travel only. For consideration of an advance, the following must be in place:
• Requester/traveler’s request must be for official university business. 
• Length of stay must be at least five (5) working days. 
• A minimum amount requested must be $500 or greater. Requested amount must be supported by a list of estimated expenditures. 
• Advances for airfare (and/or pre-trip reimbursement) will not be considered unless an individual can substantiate dollar savings over costs of using our contracted travel agency. Keep in mind that the Anthony travel program provides a low price guarantee, so airline tickets should almost never need to be booked through another source.  The following process should be used to substantiate dollar savings:

• Quotes from the outside agency and the University's contracted travel services provider should be obtained on the same day for identical itineraries (same flights, same times, same dates of travel, etc.). To obtain a quote from the University's contracted travel agency, log on to Concur on-line booking site or call an Anthony agent – 502-369-8400.
• Cost savings must meet the following criteria to be considered:

• Send both quotes to the Director of Disbursements for approval to purchase ticket(s) from the outside agency. 

• The advance request must be received at least ten (10) working days prior to the anticipated trip.
• The traveler must sign an advance statement stipulating the required paperwork will be filed with the Controller’s Office within thirty (30) working days of return from the trip. Failure to do so will stop any future advances and may result in the amount of the advance being added to the employee's W-2 statement at the end of the calendar year. The traveler must sign the advance form when the check is distributed. No designee is allowed.

Workstation

1. The official workstation of employees assigned to an office is the building, room number, and campus.

The official workstation shall be based solely on the best interest of the university, not an employee’s convenience.

Travel Expense Report

1. This online form shall be used to claim all reimbursement for travel of employees and students.
2. The travel expense report must be entered online. All original receipts shall be scanned and submitted with the report to the Controller’s Office.
3. The expense report shall include the expense of only one (1) person except where an employee pays the expense for a person (non-employee) for whom the claimant is officially responsible. Reimbursement will be issued to the employee/student who has been assigned the airfare, hotel room, car rental, etc. Reimbursement of a shared receipt is the traveler’s responsibility. For reimbursement under this category, the University requires the following:
   • Definition of expenses, personal meals, business meals (per diem), and entertainment; 
   • Original receipt for all expenses over $30; 
   • Name of establishment, city, and state; 
   • Name and title of attendees; 
   • Exact amount and date of expense; 
   • Specific business topic discussed; and 
   • Specific time of business discussion (before, during, or after the event).
4. Each travel expense report must show the claimant’s home address.
5. If leave interrupts official travel, the travel expense report shall show the dates of leave.
6. Mileage reimbursed for travel will be based on official mileage maps. The University will reimburse for all actual mileage incurred to travel for official business.
7. Mileage-only claims for authorized travel within the claimant’s workstation shall be listed on separate lines on the expense report. Each trip, date, number of miles driven, and purposes shall be listed on separate lines. If separate lines on the travel expense report are not used, an attachment listing each of these items is acceptable (i.e., copy of an individual’s travel log).
8. Upon subsequent review of a travel expense report, if it is determined that a traveler was overpaid due to an incorrect claim(s) on a travel expense report, the traveler may be required to repay the University for the amount paid in error.

Instructions to complete the travel expense report. For questions or additional information, contact the Controller’s Office.

PeopleSoft Travel & Expense System 

Request for Out-of-Country Travel Form 

Travel — Finance and Administration