TRAVEL & NON-TRAVEL EXPENSE
REIMBURSEMENT POLICY
Sacred Heart University
Travel and Non-Travel Expense
Reimbursement Policy
Table of Contents
Pages
Introduction and Overview
1
General Reimbursement Guidelines
1-3
Travel Advances
3
Corporate Procurement Card
3
Travel Expenses
3-9
Non-Travel Expenses
9
Sales Tax Issues
9-10
Appendix A - Signature Authorization Limits
10-11
Sacred Heart University
Travel & Non-Travel Expense Reimbursement Policy
1. Introduction/Overview
a. Purpose
This document provides guidelines and establishes procedures for employees incurring business travel
and non-travel expenses on the University’s behalf.
b. Who Should Read This Policy
Anyone seeking payment or reimbursement for Sacred Heart University travel and other business
related expenses, as well as, individuals who initiate, review, approve, process or record financial
transactions on behalf of the University.
c. Scope
This policy applies to all employees of Sacred Heart University. Specific areas within the University may,
at their discretion, impose greater control than required by this policy, but never less.
d. Website Address for This Policy:
http://www.sacredheart.edu/officesservices/businessoffice/travelpolicy/
2. General Reimbursement Guidelines
The University will reimburse individuals for necessary and reasonable travel and non-travel expenses
incurred in the conduct of official University business. The person who authorizes reimbursement is
responsible for verifying that expenses are, in fact, necessary and reasonable (following the IRS Pub. 463
guidelines for an accountable plan https://www.irs.gov/pub/irs-pdf/p463.pdf. He or she is also
responsible for confirming the availability of funding sources that support the expenses and that
appropriate documentation is provided. Requests for reimbursement are expected within a reasonable
time frame, generally 10 business days of incurring the expense or returning from a trip.
a. Accountable Plan
Reimbursement for travel and non-travel expenses must comply with IRS reporting and documentation
requirements for an “Accountable Plan”. The following Accountable Plan requirements must be
satisfied:
i. Business Connection -The plan can provide reimbursements or allowances only for
otherwise deductible business expenses (such as travel, lodging or meals occurred in business) that are
paid or incurred by individuals in connection with their performance of services as employees for the
employer.
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ii. Substantiation - The plan must require substantiation of the expenses being
reimbursed through use of an expense log/ trip sheets and attachment of original receipts. The
purpose of this record is to identify the specific nature of each expense and to allow the employer to
conclude that the expense is attributable to its business activities. This documentary evidence should
substantiate the business purpose of the expense including: the exact amount, date, time and
location of any travel, meals or entertainment, the names, titles of individuals present and the
specific University business discussed.
Please see substantiation requirements bellow for meals and entertainment as presented in
IRS Pub. 463 Table 2.01 (When Are Entertainment Expenses Deductible?)
General rule
Definitions
You can deduct ordinary and necessary expenses to entertain a client, customer, or
employee if the expenses meet the directly-related test or the associated test



Tests to be
met
Entertainment includes any activity generally considered to provide
entertainment, amusement, or recreation, and includes meals provided to
a customer or client.
An ordinary expense is one that is common and accepted in your trade of
business.
A necessary expense is one that is helpful and appropriate.
Directly-related test


Entertainment took place in a clear business setting or
Main purpose of entertainment was active conduct of business, and
You did engage in business with the person during the entertainment period,
and
You had more than a general expectation of getting income or some other
specific business benefit.
Associated test


Entertainment is associated with your trade or business and
Entertainment is directly before or after substantial business discussion.
iii. Return of Excess Advances - The plan must require employees to return any advances
that exceed substantiated business expenses within a reasonable period of time, generally 10 business
days. Any excess not actually returned, will be treated by the University as compensation to the
employee and is subject to income and payroll tax withholding like any other compensation.
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b. Authorization
The individual at the department authorized to approve for the account being charged approves all
travel and non-travel business expense reimbursement requests within dollar limits set by Appendix A.
Employees may not approve expense reimbursements for themselves. No matter who fills out and
approves the form, the requisitioner is responsible for its preparation, accuracy and compliance with
University policy (or grant or contract terms). Proof of travel is required for reimbursement.
3. Travel Advances
Travel advances may be issued while on specific University business. The size of the advance must not
exceed $500 except for extensive foreign travel, student activities and athletics travel. Travel advances
will not be issued for nominal amounts. Travel advances may not be used for any personal expenses or
activities. If the funds are lost or stolen, it is the personal responsibility of the traveler to replace these
funds. A travel advance is requested by submitting an expense voucher for the amount requested. The
return of any excess (unsubstantiated) travel advances must occur at the conclusion of the trip not to
exceed 30 days generally, 10 business days.
The general rules regarding advances are:

An advance request will be accepted anytime, but the check will not be released to the
employee until 5 days prior to the event.

Advances must be settled at the end of the trip.

An additional advance cannot be given to an individual who already has an advance
outstanding.
4. Corporate Procurement Card
The University has a Corporate Procurement Card program which allows those employees with
significant travel to participate. The monthly statement for this card is reviewed and approved by the
cardholder’s supervisor. (Please see procurement card policy for details at
http://www.sacredheart.edu/officesservices/businessoffice/purchasing/purchasingcard/). Most travel
related expenses should be paid using the Corporate Procurement Card where available. (See Section 3
of this policy).
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5. Travel Expenses
a. Transportation
i. Air - Travelers are expected to book coach class airfare. Business class or first class
travel will be reimbursed only upon advance approval of the President of the University.
ii. Car Rental – Travelers on University business may rent a vehicle with prior approval
to reach their destination when driving is more economical than air travel, or when driving is necessary
to transport large or bulky material. Travelers will not be reimbursed for premium category rental cars.
An exception can be made if traveling with three or more people who are on University business.
Reimbursable costs include daily rental fees, gasoline charges, and tolls. Non-reimbursable costs
include, but are not limited to, vehicle repairs, parking tickets, fines and traffic violations. Please contact
purchasing for preferred vendors.
Travelers should decline any additional insurance coverage offered by rental companies; it duplicates
insurance already provided by the University. If you choose to accept the daily additional insurance,
these charges will not be reimbursed.
iii. Private Automobile - When travel by a private automobile is desirable to save time,
to transport equipment or to reduce costs when a number of persons are traveling together,
reimbursement will be made at the standard University mileage rate ($0.54 as of 1/1/YY). This rate
covers the use of the vehicle and gasoline. The total auto reimbursement should not exceed equivalent
air coach fare or other reasonable available transportation. Mileage reimbursement will be made on
the basis of the most direct route between the point of origin and the destination of the trip. Mileage
reimbursement does not apply to employees receiving an auto allowance.
Additional reimbursement will be made for tolls and reasonable parking fees. The University will not
reimburse for parking tickets, fines and traffic violations. No reimbursement will be made for the cost of
repairs to the vehicle whether they result from the traveler’s actions or the actions of others. It is the
responsibility of the owners of the vehicle being used for business to carry adequate insurance coverage
for their protection and for the protection of any passengers.
The use of a privately owned vehicle to go from one local office to another (i.e. the Oakview and
Cambridge campuses) is not considered a travel expense and will not be reimbursed by the University.
Further, the University will not reimburse for travel that is less than 5 miles one way. In addition,
commuting miles are not reimbursable.
iv. Other Ground Transportation - Rail travel may be used whenever the traveler finds it
practical and cost-efficient. Travelers will be reimbursed for ground transportation to and from airports
and railroad stations plus reasonable tips when such service is not included in air and rail fares and
where public transportation is not practical. This policy includes transportation between hotels, railroad
stations, airports or meetings.
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b. Lodging
University employees traveling on business should stay at a hotel that is close to the location of
business. Luxury hotels (i.e. Four Seasons, Ritz-Carlton, etc.) are not permitted and will not be
reimbursed. Many times a meeting is held in a hotel and, as part of the meeting arrangements, the hotel
is included or negotiated at a discount rate. This is an acceptable alternative. Actual cost of reasonable
accommodations will be reimbursed with proper documentation; however, costs in excess of the usual
and customary rate for the locale will require suitable justification.
It is the traveler’s responsibility to notify either the hotel or the agency through which the reservation
was made when room reservations need to be canceled. Travelers should request and record the
cancellation number in case of billing disputes. Travelers will not be reimbursed for “no show charges”.
In general, personal expenses incurred while traveling will not be reimbursed. In particular, in-room
alcoholic beverage services, babysitting, movie or game rentals and tickets for sporting or other
recreational activities are not reimbursable and must be paid with personal funds. (see g. non
reimbursable travel expenses)
c. Conference Registration Fees
Registration fees should be paid in advance of a trip by submitting a purchase requisition along with the
original receipt and one copy of the registration document. Payment by Corporate Procurement Card is
preferable if possible. Employees who pay a registration fee out of personal funds will be reimbursed
upon documentation of proof of payment, the registration document, and record of attendance. A copy
of the registration document alone is not sufficient as proof of payment.
d. Meals
i. Actual and Reasonable - Personal meals are the meal expenses of travelers who are
on a business trip. Travelers will be reimbursed for personal meal expenses according to actual and
reasonable costs. Original receipts are required. Photocopies and restaurant tear tabs are not
acceptable as documentation. All meals must be documented as to the attendees, titles and the
business purpose. Expenses for spouses in attendance at a meal are not approved unless an explanation
is provided in writing that there is a University business purpose (refer to substantiation Table 2.1 IRS
463 Pub.) Expenses for a spouse must be approved by a Vice President or the President of the
University as appropriate. Approved expenses for spouses must be clearly identified on
reimbursement/expense documentation for proper tax treatment.
ii. Gratuities - Travelers will be reimbursed for reasonable gratuities on meals. Tips
appropriately range between 15% – 20% before local taxes. Tips over 20% will be considered excessive
and will not be reimbursed. Gratuities for meals should be included as part of the cost of the meal on
the expense report.
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iii. Senior Level Attendees - The person who is most senior at a meal (or other event)
should pay for those expenses so the approval for that expense is made at the highest level. For instance,
if a Senior Manager is at an event attended primarily by his/her direct reports, then the Senior Manager
should pay for all expenses and submit those expenses to his/her supervisor for approval. Conversely, if
a Senior Manager is a guest at an event hosted by a subordinate for the subordinate’s department, then
it is acceptable for the subordinate to pay for the expenses and submit them to the Senior Manager for
approval.
e.
Business Entertainment
Business entertainment expenses including sporting events, when a business discussion takes place
during, immediately before, or immediately after the event that will be reimbursed:
f.

With prior approval from appropriate signing authority

If the person(s) entertained has/have a potential or actual business relationship with the
University; and

If the business discussion will benefit the University.
Other Reimbursable Travel Expenses
Travelers will be reimbursed for the following reasonable miscellaneous expenses incurred while on
University business:

Business office expenses (fax, copy services, telegrams/telexes, etc.)

Business phone calls

Personal phone calls-10 minute maximum

Currency conversion fees

Overnight delivery/postage

International phone calls can be extremely expensive. Discretion should dictate that
personal phone calls are of the shortest possible duration, not to exceed 10 minutes

All upgrades in travel accommodations (Business or First Class air, rail, lodging) must be
pre-approved by the President of the University in advance
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Table 1-1. Travel Expenses You Can Deduct (IRS Pub. 463)
IF you have expenses for...
THEN you can deduct the cost of…
Transportation
travel by airplane, train, bus, or car between your
home and your business destination. If you were
provided with a free ticket or you are riding free
as a result of a frequent traveler or similar
program, your cost is zero.
Taxi, commuter bus, and airport limousine
fares for these and other types of transportation
that take you between: The airport or station and
your hotel, and
The hotel and the work location of your
customers or clients, your business meeting
place, or your temporary work location.
Baggage and shipping
sending baggage and sample or display material
between your regular and temporary work
locations.
Lodging and meals
your lodging and meals if your business trip is
overnight or long enough that you need to stop
for sleep or rest to properly perform your duties.
Meals include amounts spent for food,
beverages, taxes, and related tips. See Meals for
additional rules and limits.
tips
tips you pay for any expenses in this chart.
g.
Non Reimbursable Travel Expenses
Travelers will generally not be reimbursed for miscellaneous expenses listed below. This is not an allinclusive list; it serves only as a sample for reference:

Airline club membership dues

Airline phone usage

Auto repairs (personal)

Babysitting

Barbers and hairdressers
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h.

Clothing and toiletry items

Expenses related to vacation or personal days taken before, during, or after a business
trip

Fees for cash advances from credit cards or ATM’s

Golf fees (unless they serve a business purpose)

Hotel health club fees

Loss or theft of cash advance money or airline tickets

Loss or theft of personal funds or property

Lost baggage

Luggage and briefcases (purchased)

Magazines, books, newspapers, personal reading materials

Medical expenses while traveling

Mini-bar alcohol and refreshments

Movies/Video game rentals (hotel in-house movies and video game charges)

“No show” charges for hotel or car service

Optional travel or baggage insurance

Parking tickets or traffic violations

Personal accident insurance (domestic)

Personal automobile maintenance expense

Personal entertainment, including sports events

Personal property insurance

Personal telephone calls in excess of reasonable calls home

Pet care

Saunas, massages, shoe shine

Souvenirs or personal gifts

U.S. traveler’s check fees
Vendor Provided Travel
To comply with the University’s Conflict of Interest Policy, University employees should not accept
lodging or commercial air travel from vendors.
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i.
Travel Funded by Grants
Travel funded by Federal awards must comply with requirements of 2 CFR Part 220 (OMB
Circular A-21) https://www.whitehouse.gov/omb/circulars_a021_2004#j
And are required by 49 U.S.C. 40118 referred as “Fly America Act” to use United States
Government air carrier service for all air travel and cargo transportation services funded by
the United States Government. Also, certain expenditures (e.g. alcohol) are “unallowable”
in accordance with cost principles outline in the Circular A-21 and cannot be charged to
federal grants.
6. Non-Travel Expenses
a.
Meal Expenses for Travel Not Requiring an Overnight Stay / Business Meals
One-day meal expenses may not be reimbursed unless:

When, for confidentiality reasons, business must be conducted off University premises

When authorized by supervisor for reward, recognition or other appropriate business
purpose
Employees will be reimbursed for business meal expenses according to actual and reasonable costs.
Original receipts are required for reimbursement. Photocopies and restaurant tear tabs are not
acceptable as documentation. All meals must be documented as to the attendees and the business
purpose.
b. Professional Dues
Dues for membership in professional societies and organizations that are required to fulfill the
employee’s assigned duties are reimbursable.
c. Employer-Employee Relations Activities
Examples of items in this classification include employee morale activities such as summer picnic,
anniversary celebration or retirement party. It is important to identify the purpose of the employeremployee relations expenditure and the names of the individuals or groups involved. Parties that are
personal in nature, such as birthday parties or baby showers will not be reimbursed.

7. Sales Tax Issues
Meals & lodging are common travel expenses that are often subject to sales taxes, occupancy taxes,
gross receipts taxes, excise taxes or value added taxes. Tax treatment is based on facts, circumstances,
and the laws in the jurisdiction where the transaction occurs. Facts vary and tax laws, regulations and
interpretations are subject to change. Therefore, there is no travel-related expense that is uniformly tax
exempt.

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a. In-State
Exemption from Connecticut State sales tax for purchases of meals or lodging requires that 1) expense is
incurred for University business; 2) a properly completed Connecticut State Exempt Organization
Certificate, CERT-112 (available on Public Folders under Business Office Travel Information) is presented
at time of purchase; and 3) payment is made directly by the University. Payment by personal credit
cards does not generally meet that condition. However, most Connecticut vendors will accept the
Corporate Procurement Card with Sacred Heart University’s name on it.
Cert-112 allows an exempt entity to purchase meals or lodging, or both, tax exempt for a single event
and may not be used for repeat purchases.
b. Out-Of-State
Certain lodging and meal expenses incurred while traveling on University business trips may be exempt
from state sales tax provided the following three conditions are met:



the state allows an exemption for meals and/or lodging expenses
the University holds a state tax exemption certificate in the state of travel, where
required
the University makes payments directly to the hotel or restaurant using a University
credit card or check
The list of states in which the University currently qualifies for travel related sales tax exemption (and/or
the documentation required for state sales tax exemption) is provided on Public Folders under Business
Office Travel Information.
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Effective Date: January 1, 2016
Appendix A
Disbursement Authorization Limits
Minimum Authorization*
Transactions to $5,000,000
President
Transactions to $250,000
President OR Senior Vice President for Finance
& Administration OR (in the absence of the
President) Joint signatures of Senior Vice
President for Finance & Administration AND
Provost & Vice President for Academic Affairs
Transactions to $50,000
Provost & Vice President for Academic Affairs
Transactions to $10,000
Vice Presidents
Transactions to $5,000
Assistant Vice President, Dean, Associate Vice
President, Executive Director, Executive
Assistant to the President, University Librarian,
Athletic Director, Enrollment Planning &
Student Affairs Divisional Budget Director,
Associate Dean of Students, Registrar, General
Manager WSHU
Transactions to $1,000
Associate/Assistant Dean, Director,
Department Chair
Transactions to $500
Associate/Assistant Director, Manager
*Lower dollar levels can be established internally.
**Authorizations are to be obtained within departmental/divisional hierarchies and are determined by
SHU employee job titles.
***Check university website for updates to authorization limits. Limits listed are as of the date at the top
of this page.
See http://www.sacredheart.edu/officesservices/businessoffice/travelpolicy/ for most current
information.
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