UAF Travel Reimbursement and Audit Processes
March 2016
Introduction
Through the Travel Process Improvement effort, it has become clear that the current travel process
imposes an unsustainable administrative burden, is time-intensive for staff centrally and in units, and
is frustrating for our travelers. Our current fiscal climate has led to reduced level staffing levels and
calls for more efficient processes in all areas. This further calls for a review of the cost vs. benefits
of controls and an assessment of an appropriate level of tolerance and mitigation. The TRIP team
recommended moving to an audit-only role centrally, reducing the time and effort involved in
processing reimbursements. This change will also allow UAF central travel to conduct regular
trainings for travel coordinators and departmental staff, improving compliance without adding
processing time.
The proposed processes below are designed to outline appropriate audit standards that reflect a
balanced approach to risk, and to establish clear expectations of the audit outcomes.
The revised reporting model will more accurately reflect units’ compliance with UA Travel
Regulations. For example, in the first quarter of FY16, 139 (18 percent) of the identified errors with
expense reports were incorrect account codes. While it is certainly important to correctly account
for our expenditures, such errors would now be addressed in the “best practices” section of the audit
report, rather than in the regulations violations section. When combined with the critical regulation
changes proposed, we could see a reduction in our “incorrect” expense reports of over 50 percent
while still ensuring appropriate controls and risk.
Reimbursement Process
1. Travel Authorization includes supporting documentation and receives needed approvals
(Attachment I).
2. Travel occurs.
3. Traveler/Travel Coordinator prepares Travel Expense Report.
a. If Expense Report is within 10 percent or $100 of approved TA, whichever is greater,
only traveler must approve and sign, once proposed regulation is approved.
4. Expense Report is submitted to Financial Services for issuance of payment (keying). No review
of expenses will occur at this point.
a. If there are any errors that prevent keying/payment (Attachment 2) then Financial
Services will contact Traveler and Travel Coordinator for needed information.
5. Traveler receives reimbursement via direct deposit.
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Audit Process
1. Financial Services will conduct monthly audits of expense reports, after reimbursements have
been issued. Note: this can move to quarterly once the process is established and we are
demonstrating compliance with regulations.
a. Audits will include a percentage of all expense reports by Vice Chancellor/Provost or
Unit level, as well as targeted high risk areas (such as international travel).
2. Financial Services will produce an audit report that organizes findings by unit, identifying:
a. Violations of UA Travel Regulations (Attachment 3)
b. Best Practices (e.g. account codes)
c. Discussion (including any trends or areas of university-wide concern).
i. Reports will include the TA/ER number of the audited reports, and the errors
identified.
3. The audit reports will be provided to the relevant Vice Chancellor/Provost and Dean/Director.
a. The relevant Dean/Director is responsible for compliance within their unit.
b. If a unit has UA Travel Regulation violations in more than 10 percent of their audited
expense reports in a given month, they will be placed on a watch list.
i. If a unit on the watch list has UA Travel Regulation violations in more than 10
percent of their audited expense reports for two consecutive months, they will
prepare a performance plan to identify how they will ensure compliance in
future audits. This performance plan will be discussed with the Associate Vice
Chancellor for Financial Services and the Travel Administrator.
ii. If the performance plan fails to improve compliance after an additional
monthly audits, the unit will reorganize their travel processing (such as by
partnering with a unit that has a successful record or by joining a successful
shared service center).
iii. If a unit is placed on the watch list three times, they will reorganize their
processing.
iv. When a unit consistently demonstrates a high degree of compliance with UA
travel regulations (less than 10 percent of expense reports have errors) for
three consecutive audit periods, they will be designated a Tier One unit and
move to a quarterly audit schedule.
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4. If, in the course of an audit, it is discovered that a traveler was reimbursed for more than the
allowable costs, the following will apply:
a. For over-reimbursements less than $50, the unit has discretion on whether to collect
the difference from the traveler. Over-reimbursements cannot be expensed to a
restricted fund; those must be collected or Jv’d to a fund one.
b. For over-reimbursements greater than $50, the unit will collect the difference from
the traveler.
c. For under-reimbursements discovered during an audit, the unit may elect to submit a
new expense report to claim the expense(s) not originally reported.
5. Units will have 5 business days to respond and submit additional information for audit
findings.
Responsibilities
Traveler: The traveler is responsible for accurately reporting their allowable expenses in accordance
with UA Travel Regulations, identifying the purpose of travel, identifying any personal travel taken in
conjunction with business travel, and providing business justifications and documentation in
accordance with UA Travel Regulations. The traveler is also responsible for signing up for direct
deposit via the Finance tab of UA Online (note: this is currently a separate process from direct
deposit of paychecks).
Travel Coordinator: The travel coordinator is responsible for assisting the traveler in completing
travel authorizations and expense reports (or, in some units, completing the reports on the traveler’s
behalf), for ensuring the accuracy and compliance with UA travel regulations of those authorizations
and expense reports, for providing information to the travelers regarding UA Travel Regulation and
best practices, serving as a point of contact between the unit and Financial Services, and in assisting
the traveler in procuring travel.
Travel Administrator: The travel administrator is responsible for conducting the duties of their
position as outlined by the UA Travel Regulations, and in conjunction with the travel auditor,
preparing audit reports. The Travel Administrator is also responsible for developing and delivering
training to travel coordinators.
Travel Auditor: The travel auditor is responsible for conducting travel audits as outlined in the
above procedures, and in conjunction with the travel administrator, preparing audit reports.
Dean/Director: The dean or director is responsible for ensuring compliance within their unit with UA
Travel Regulation.
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Attachment 1. Travel Authorization Documentation and Approvals
When the following information and approvals are secured at the Travel Authorization stage, expense
reports, once proposed regulation is approved, within 10 percent or $100 (whichever is greater) of
the authorized amount may be reimbursed without re-approval by the supervisor or individual with
authority to expend funds.
1. Business-only estimate: Authorizations will include an estimate for the business-only cost,
including as applicable:
o air itinerary based on business days, showing class of service, and amount
o business nights in hotel and hotel rate (if rate is greater than 150 percent of published
per diem rate, noting why higher rate is needed- e.g. “conference hotel”),
o per diem rate for business days, at business destination rate,
o vehicle rental for business days (showing standard size, or noting why larger is
required)
o conference program or meeting agenda
o registration fees
2. Clearly defined business purpose: A single sentence is sufficient, a single word is not. For
example, instead of “conference,” note “Annual AGU meeting,” or instead of “field work”
note “conducting interviews with whaling captains in Point Hope.”
3. Any personal travel taken in conjunction with business travel is clearly identified
4. Approvals in accordance with UA Travel Regulations before any university resources are
committed (additional approvals may be required to comply with UA travel restrictions).
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Attachment 2. Travel Reimbursement Keying Checklist
The following errors on an expense report prevent the reimbursement from being keyed for payment:

A mismatch on the traveler (the traveler’s name does not match the ID, the travel
authorization (TA), the travel expense report (TER), or the encumbrance)

For check payments, a missing address

A missing date of birth and/or address, needed when ID is not listed on TA or TER

Missing or closed encumbrance

If there is a mismatch between an advance listed on the expense report and in Banner

Missing attached backup (TEM)
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Attachment 3. Audit Checklist
Category
Audit Questions
Documentation
Needed
-Approved TA
-For out of state or
international travel,
approved by
individual designated
by Chancellor
Potential Audit
Finding
-Approvals missing
or not obtained
prior to
commitment of
university resources
(Reg. Violation)
UA Travel Reg.
Reference
A.3.a
A.13.a
A.14.a
Approvals
Was the TA approved before
university resources were
committed?
Were the needed approvals
obtained for the type of
travel?
Personal
Information
Account codes
Dates
Is the traveler’s name, UA
ID, and address correct?
Are account codes correct?
Do the dates on the
itinerary (airfare/car rental)
match the business
purpose?
Is personal travel time
identified?
Does the destination match
the business purpose?
-
-Best practice
-
-Airfare
itinerary/receipt
-Car rental
agreement/receipt
-Conference program
-Hotel folio/receipt
-Best practice
-Reimbursement for
business purposes;
direct route (Reg.
Violation)
A.1.b.(7)
A.3.c.(2)
A.4.d.
A.5.a
Purpose
Is the purpose clearly
stated?
Personal
Travel
Is personal travel clearly
identified?
Was reimbursement for
business travel only?
Are there any unauthorized
expenses (e.g. expenses for
family members
accompanying traveler)?
Are all expenses allowable
per UA Travel Regulation?
Are non-reimbursable
expenses identified?
Are reimbursable expenses
appropriately allocated to
the traveler?
Does the schedule match
the business need?
Is the class of seating
allowable?
-One sentence noting
business purpose
(e.g. “Attending AGU
meeting/conference,
” not, “conference”
-Business only
comparison
Destination
Unauthorized
expenses
Nonreimbursable
and
reimbursable
expenses
Airfare
-Reimbursement for
business purposes
(Reg. violation)
-Reimbursement for
business purposes
(Reg. violation)
-Reimbursement for
business purposes
(Reg. violation)
A.13.b.
A.5.a
-Business justification
if claiming
reimbursement
-Unauthorized
expenses (Reg.
violation)
-Receipts for
expenses greater
than $25 (currently)
-(Reg. violation)
A.2.a
A.2.
-Airfare
itinerary/receipt
-If non-coach, ADA
accommodation note
-Direct route
-Business dates
-Class of seating
-FlyAmerica
A.3.b
A.4.a
A.5.
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Is the airfare compliant with
FlyAmerica, if applicable?
Are all expenses allowable?
-When airfare credits
or “my wallet” funds
are used, include
original purchased
itinerary or mileage
activity
(Reg. violations)
Rental Car
Is the rental car for a UA
employee?
Is the size of car in
accordance with
regulations?
Rental car size and
allowability (Reg.
Violation)
A.4.b
A.5.
Mileage
Does the reimbursement
match the business
destination?
Is the mileage rate equal to
or less than the approved
rate?
-Rentals larger than
“standard” require
justification, e.g.
multiple travelers,
transport of supplies,
etc.
-Either odometer
readings or
supporting
documentation such
as a screenshot from
Google Maps or
Mapquest
(Reg. Violation)
A.4.c
Other
transportation
Lodging
Per Diem
Travel
advances
Group travel
A.4.f.
Is the lodging rate either
within the approved limits
or supported by a
justification and approval?
If non-commercial lodging is
expensed, is it within
approved limit?
Does per diem rate match
the destination (based on
lodging)?
Are provided meals
deducted?
Do periods claimed match
time in travel status?
If travel advances were
provided, were they noted
on the expense report?
Is backup included for
alternative meal/lodging
arrangements?
-Hotel folio/receipt
-Reason for
exceeding 150%
noted (e.g.
“conference hotel”)
Allowable lodging
rates (Reg.
Violation)
A.3.c.
-Hotel folio/receipt
-Conference
program, if
applicable
-Itinerary (e.g. airfare
receipt)
Per diem (Reg.
Violation)
A.6.
A.7.
Advances (Reg.
Violation)
A.12.
- Signed statement
from group members
for amounts or meals
received. List of
names and amounts
signed by each group
member when cash
is handed out
A.6.g.
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International
currency
Is any international currency
converted correctly?
Receipts
Are receipts legible?
Are receipts provided for
expenses greater than $25?
Do foreign receipts have an
annotation in English (e.g.
“taxi” written in)?
Do receipts match reported
expenses?
-Rate calculation
based on the date an
expense was incurred
-Receipts with
notations as needed
(if faint, write in
amount, if in foreign
language, write in
brief explanation of
cost)
Currency conversion
(Reg. Violation)
A.14.a.(5)
Receipts (Reg.
Violation)
A.14.b
A.14.a.(5)
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