Expense policy

Policy Name: Expense Policy

Owner: Executive Director of Finance / CFO

Author: Finance Department, finance@css.edu

Effective Date: July 1985

Revised: January 1, 1989; August 15, 1990; March 16, 1992; February 1993; March
1995; March 1996; April 1999; September 2003; September 2007; August 2008; September 2009, September 2019, January 2020, July 2023

Next Review Date:

Applicable laws, regulations, compliance: IRS Code and Regulations

I. Purpose

The purpose of this policy is to establish consistent standards for College expenses. This policy applies to all expenses, including out-of-pocket expenses that require reimbursement, regardless of the method of payment or type of individual incurring the expense (employee, student, or volunteer).

II. Policy

All College expenses must be reasonable, necessary for College business, properly authorized, and appropriately documented.

All individuals incurring expenses on behalf of the College should exercise good stewardship of CSS resources.

• Business Purposes - Activities that support the goals and objectives of the College, divisions, and individual departments as determined by leadership.
• Reasonable - A reasonable cost is one that is not excessive or extreme, in line with market rates, and would not damage the reputation of the College if made public.
• Necessary - A necessary cost for College business is one that supports the business needs and mission of the College.
• Authorized - All expenses must be authorized by relevant budget managers. Budget managers may only authorize expenses if sufficient funds are available. Memberships, licenses, software, furniture/fixtures, equipment ($5,000+), or expenses for legal or Title IX purposes require additional review prior to authorization in accordance with the Purchasing Policy.
• Documented - All expenditures must be supported by records which clearly establish that the expenses were reasonable and necessary for a business purpose. These records should include:
  • Amount
  • Date of the expense
  • Place/business name
  • Business purpose of the expense
  • Itemized receipt with a detail list of items purchased and proof of payment
  • Additional documentation if required by the Expense Allowability section

Expenses incurred that are in violation with any component of this policy shall be repaid by the individual that incurred the expense. Even if otherwise reasonable, any expense that is unauthorized or not substantiated with sufficient documentation constitutes a violation of this policy and is subject to repayment to the College. Expenses in violation of policy that are not repaid may be reported as taxable other income.

All individuals incurring expenses shall practice good stewardship to ensure expenses are legitimate and align with all College policies including the Purchasing Policy.

Exceptions to this policy should be rare and unusual and must have documented approval by the policy owner.

Fraud

Misrepresentation of College expenses may be grounds for disciplinary action.

Athletic Team Expenses

Athletic team expenses are subject to NCAA rules and regulations in addition to College policies. If requirements vary, the most restrictive requirements must be followed.

Grant Funded Expenses

Grant expenses are also subject to applicable Federal or State regulations, funder policies, the terms and conditions of the award, and CSS grant-specific policies. If requirements vary, the most restrictive requirements must be followed.

Shared Expenses

When two or more individuals share an expense where only one bill is presented, such as a meal or a car rental, the highest-ranking individual is responsible for the expense.

Out of Pocket

Out of pocket expenses are subject to all requirements of this policy. Reimbursement requests must be submitted within 60 days of the expense being incurred. Requests submitted more than 60 days aftering being incurred may not be reimbursed. .

III. Roles and Responsibilities

Employee/Student/Volunteer

• Responsible for compliance with all College policies
• Responsible for ensuring budget availability prior to incurring expenses
• Responsible for the submission of complete and accurate documentation for each expense
• Responsible for paying or repaying any personal expenses, expenses without supporting documentation, or expenses in violation of this policy

Supervisor

• Responsible for communicating and enforcing compliance with all College policies
• Responsible for review of all expenses incurred by their employees, students, or volunteers and ensuring the expenses were reasonable, necessary, documented, and appropriately authorized
• Responsible for identifying noncompliance and initiating appropriate corrective action (review of policy requirements, repayment, or disciplinary action)
• Responsible for ensuring that expenses are charged appropriately
• Supervisors may delegate review responsibilities but are ultimately responsible for all expenses incurred by employees, students, or volunteers in their area.

IV. Expense Allowability List

For expenses not included in this list, individuals should consult with their supervisor or area Vice President and make a prudent decision based on the guidelines of this policy.

MEALS & ENTERTAINMENT (excludes individual travel meals)

Food & Beverages for Internal Meetings / Events

Food and beverages for professional meetings and events are allowable if conducted for business purposes.

Alcoholic beverages for internal meetings / events are not permitted unless there is prior approval from the President. Unapproved costs for alcohol are unauthorized expenses and subject to repayment to the College.

Meals funded by federal or state grants must be specifically allowable per agency and grant-specific requirements.

Meals & Entertainment for External Parties

The College will pay actual costs of meals and entertainment with donors or other external parties for business purposes. Alcohol is allowable if prior approval is granted by the President.

Parties

A one-time retirement party hosted by a retiring employee’s division/department is permitted. The retirement party must be held on campus using internal catering. Expenses for individual departmental holiday or other parties are not allowable.

Team Building

Team building events typically do not fall under an essential operational purpose and are for the sole purpose of practicing the College’s values of community and hospitality. College-funded employee team building events are limited to one event per budget year per team.

TRAVEL (includes individual travel meals)

Travel Meal Per Diem

Employees traveling for business purposes are provided a daily meal per diem. Daily per diem will be paid as follows:

• 100% of Per Diem rate for all days excluding first and last of travel
• 75% of Per Diem rate for first & last day of travel

All Per Diem reimbursement will be at one of these two rates. A trip report must be submitted in place of individual meal receipts. The trip report must include dates of travel and business justification. Per IRS regulation, Per Diem requests must be submitted within 60 days of travel. In accordance with IRS regulation, Per Diem submitted more than 60 days after dates of travel may still be paid but will be reported as taxable other income.

Air Travel

Must be in economy class. Travel funded by federal grant funds must generally be via U.S. flag carriers in accordance with the Fly America Act.

Airline Club Memberships

Not allowable.

Baggage Fees

Allowable for baggage necessary for the business purpose of the trip.

Cash Advances

Only for certain Academic Service Learning Trips. The College provides a commercial credit card (p-card) for employees to cover their costs for business travel.

Cancellation Fees

Not allowable unless the individual can establish and document the business purpose for the cancellation.

Communication Charges

Internet or postage costs necessary for a business purpose while traveling are allowable.

Family Travel

Travel expenses for family or friends are not allowable.

International Travel

Documentation of itinerary is required and must specify any days used for personal
travel.

International travel funded by federal or state grants must be approved in advance by the funding agency.

Lodging

Allowable except for in-room movies/bars or health club fees.

Mileage Reimbursement

See Vehicle Use Policy.

Personal Travel

Individuals must pay all costs for the personal portions of trips. Saturday night stays for the benefit of the College are not considered personal travel.

Rental Vehicles

See Vehicle Use Policy.

Travel Insurance - Domestic

Allowable for activities not covered via the College’s General Liability Coverage and Auto Liability.

Travel Insurance - International

Allowable for activities not covered via the College’s Foreign General Liability Coverage.

Tips

Tips and gratuities may not exceed 20% of the total (excluding tax).

GIFTS

Floral Arrangements

Floral arrangements are only allowable if coordinated through the President’s Office.

Gifts - Non-employee

Business gifts to non-employees require Vice President approval. Business gifts in excess of $25 must be reported on IRS form 1099 and may be taxable to the recipient.

Gifts - Employees

A one-time retirement gift, organized through the President’s Office, is permitted. All other employee gifts (e.g. bereavement, birthday, holiday, special occasions, etc.) outside of College-wide events are not permitted with College funds.

Gift Cards

Purchasing gift cards from the Saints Shop is strongly encouraged, but purchase of gift cards for external vendors is permitted. In accordance with IRS regulation, all gift cards are subject to tax reporting to the recipient. For employees, reporting will occur through payroll. Documentation of recipient information, including tax identification number, is required.

SALES TAX

The College has sales tax exempt status in Minnesota and is not subject to sales tax on qualifying items purchased for College business. Sales tax that qualifies under the exemption will not be paid by the College and is the personal responsibility of the individual if incurred. The College’s Certificate of Exemption (Form ST3) should be provided to vendors to have the exemption applied. Individuals may not use this form for personal use. Tax is allowable for items that do not qualify for sales tax exemption:

• Prepared food, candy, beverages, and catered food
• Lodging
• Gambling equipment and supplies
• Most motor vehicle purchases, leases, and rentals
• Waste collection and disposal services

It is the responsibility of the employee to ensure sales tax is not charged at the time of purchase for qualifying items. Any sales tax paid that qualifies under the exemption is the personal responsibility of the employee and will not be paid for or reimbursed by the College.