|
Use of Department Funds
Policy Overview
UIS/OAS will directly pay or reimburse valid and properly substantiated business expenses for activities that benefit the University and are necessary and appropriate in the conduct of University business. These include direct payments to vendors for goods and services and reimbursements to employees for travel, meals, and entertainment expenses related to University activities. Managers should be sensitive to the fact that incurred business expenses are passed along to University departments and are therefore encouraged to proactively seek cost saving alternatives when making business decisions.
Please note: Reimbursements for ALL out of pocket expenses must be submitted within 60 days from the date of expenditure.
Personal expenses, including payment or reimbursement for activities that benefit an individual, will not be paid or reimbursed to UIS/OAS staff.
General Use of Department Funds
The following section lists some commonly incurred business expenses for UIS/OAS. In all cases management approval is required prior to the expense being incurred. Please refer to the University’s online policy for a full listing of personal and unallowable expenses.
Parking Tickets and Traffic Violations
UIS/OAS will not directly pay for or reimburse employees for incurred parking fines or traffic violation tickets for personal vehicles.
All employees driving UIS owned or leased vehicles while on official University business must park in valid, legal parking spots at all times. If none are available, public parking lot fees can be incurred and submitted for reimbursement. Expenses must have management approval prior to processing.
UIS/OAS employees are responsible for the cost of all moving violation (i.e. speeding) tickets while driving personal, business owned or leased vehicles.
Parking Passes
UIS/OAS will pay the cost of a Harvard University parking pass for those designated employees who must use their personal vehicle in performing the required functions of their job (e.g. network or telecommunications technicians). To enable these employees to park at multiple Harvard garages or lots, employees should apply for a mobile pass with the University Parking Office, which will allow access to designated areas around the University. Parking passes are usually paid for via automatic payroll deduction with pretax dollars. In January (mid-year), designated employees should complete and submit a Universal Expense Form to receive reimbursement, which will also be processed through payroll for the full amount of the pass (not grossed up), with the appropriate payroll taxes withheld.
Staff using their personal vehicles on occasion in order to attend meetings in other areas of the University will not receive parking pass reimbursement.
Parking Expenses
UIS/OAS will reimburse staff for the cost of parking while on University business outside of the Cambridge/Allston campus. Staff who park in Harvard Square garages as a matter of convenience must do so at their own expense. Staff who park in multiple Harvard locations on a regular basis, may apply for a mobile pass with the University Parking Office instead of a garage/lot specific pass, after receiving director approval. This will be paid for by the employee.
Auto Repair Expenses
According to Harvard University policy, auto repair expenses incurred for personal vehicles are not reimbursable, even if damage occurs while conducting University business. In addition, personal auto mileage will not be reimbursed for travel between home and the workplace.
Travel Related Expenses
University Policy specifies that the following are considered non-reimbursable travel related expenses:
- Airline seating upgrades to first class
- Air phone calls
- Hotel recreational activities (e.g. spas, athletic facilities)
- Hotel room video rentals
- Laundry and valet service (if away less than 5 days)
- Expenses related to vacation or personal days taken before, during, or after a business trip
- Commuting (employee travel to/from work on a daily basis)
- All personal purchases
For more information on travel related expenses, see our policy on Travel and Expense Reimbursement.
Meals & Entertainment (Non-Travel Related)
Meals
UIS/OAS recommends that individual meals do not exceed a cost of $10-$20 for breakfast and $15-$30 for lunch or dinner. Tips included on meal receipts will be reimbursed, and, as a general rule, should not exceed 20% of the bill. A written explanation of the business purpose of the meeting must be provided, including identification of the attendees, when submitting the expense to Accounts Payable.
Meeting With Other University Employees
According to Harvard University policy, employees will be reimbursed for business related meals taken with other University employees in the following circumstances:
- When a new employee is hired as part of a "welcome" to the department
- When, for confidentiality reasons, business must be conducted off University premises
- When dining with other employees on an out-of town trip such as a conference
- When authorized by the department for reward, recognition, or other appropriate business purpose
Meals Provided While at Meetings
Meals provided to employees at meetings held for the convenience of the employer (e.g. meeting to discuss business matters during a lunch hour because it is the only possible or practical time for such a group to gather due to schedules) are allowable. Meal expenses incurred solely for the benefit of employees during normal working hours, when not traveling, are not reimbursable. In addition, food and related expenditures for events that are not of a clear business purpose or are of a general nature should be borne by the participants and/or organizers of the event.
Meals While Attending Training or a Conference
UIS/OAS employees who attend all day training seminars or classes held off campus are eligible for meal reimbursement.
Meetings with Consultants or Vendors
When meeting with consultants or other working associates (non-employees) to discuss business matters over a meal, inclusion of many University employees should be moderated as much as possible with careful consideration given to other forums for meeting and discussing University business.
Meal costs for social occasions, such as employee birthdays, are not reimbursable. (See Inappropriate Times to Recognize Staff section of this policy)
Entertainment
Expenses for nightclubs, theaters, or sporting events incurred while entertaining customers, vendors or others, are unallowable and will not be reimbursed to UIS/OAS staff.
Department sponsored recognition programs are covered under the When to Recognize Staff section of this policy.
Alcoholic Beverages
According to Harvard University Policy, the use of alcohol for business entertainment purposes should be kept to a minimum. Employees should be aware that the purchase and use of alcohol places significant legal exposure on the University. UIS/OAS may provide and pay for alcohol at UIS/OAS Department sponsored events (e.g. holiday parties, summer barbeque or, on rare occasion, at a business meal outside of the normal work day).
In general, alcohol consumption is not recommended during business hours or during business meals taken during the workday. Employees may not keep alcohol in the workplace, either within their work area or within a refrigerator in a common kitchen area. Unconsumed alcohol following UIS/OAS sponsored events should be disposed of or given to CAIT Human Resources for proper storage.
To ensure that alcohol is not charged directly or indirectly to a federal grant or contract, all alcohol related expenses must be charged to object code 8450. If a bill is not itemized and liquor cannot be broken out, then the entire bill should be coded to 8450.
Recruiting Expenses
UIS/OAS recognizes that efforts to hire and retain talented and competent staff members sometimes require recruiting expenses. Some of the most common include:
- Outside agency fees (usually used to fill highly skilled and/or hard to fill positions)
- Career fairs (to attract college graduates and/or specific industry applicants)
- ‘Help Wanted’ advertisements in local newspapers
- Online job postings (e.g. Monster.com)
Managers should consult and coordinate with the CAIT Human Resources Dept. regarding the appropriate vehicle to use to fill open positions prior to authorizing expenses.
Other, less frequently incurred, recruiting expenses usually occur when a potential employee travels a long distance for an interview. These may include mileage, parking fees, transportation, hotel, tolls, and/or meals. If requested by the interviewee, these expenses are allowable and reimbursable with management approval, and should be submitted on a Universal Expense Form to Accounts Payable. The UEF must include the reimbursee’s name, address, social security number, and signature. Otherwise a memo, which is signed by the interviewee and contains a detailed list of the incurred expenses as well as all other aforementioned information, can be faxed and attached to the UEF prior to processing.
Please note that UIS/OAS does not currently reimburse for relocation expenses.
Dues & Initiation Fees
Harvard University will pay for dues and initiation fees for memberships to professional organizations that are approved by management prior to processing, which will materially benefit the University in the following ways:
- Provide access to industry data (e.g. benchmarking information) through publications and/or websites
- Promote networking with other industry members at conferences and seminars
- Ensure representation of the University at conferences and other trade or business events
Memberships in social and country clubs will not be reimbursed.
Subscriptions to Publications and Books
Harvard University will pay for subscriptions to publications and books that are business or trade related. Expenses must have management approval prior to processing. Personal reading materials (books, magazines, newspapers, etc.) will not be reimbursed.
Uniforms/Business Logo Clothing
If employees are required to wear uniforms as part of their job (e.g. so that customers can easily recognize staff members of a specific business by a particular article of clothing), UIS/OAS will directly pay or reimburse the cost of the uniform as long as it is a management approved expense. Job required uniforms are not considered taxable to employees.
Business unit managers who wish to purchase uniforms or business logo clothing for their employees should be aware that this expense will be passed along to customers in the form of rates for services. While this may improve morale for the recipients, managers should be sensitive to the fact that, due to financial constraints, not all UIS/OAS organizations can afford this added expense.
Please note that articles of clothing purchased that exceed $75 per employee are considered a gift of tangible property and must be reported as income. Please contact the CAIT HR Department at 617-495-5314 to provide all information required to complete an Extra Compensation Form for each recipient. CAIT HR will complete the Form and forward to HU Payroll for processing. Payroll will subsequently add the dollar value of the gift to each recipient’s ordinary income to be included on the year-end W-2 form.
Personal/Miscellaneous Expenses
In addition to all previously listed unallowable expenses, there are other expenses, which, according to Harvard University Policy, are considered personal costs, and are not reimbursable. These include:
- Clothing or toiletry items
- Babysitting fees
- Golf fees
- Corporate card delinquency or finance charges
- Massages
Sympathy (Death in the Family or Serious Illness)
Upon the death or serious illness of an employee or the immediate family member of an employee, appropriate gifts may include:
- A memorial gift
- Donation to a charity (see below for additional information required)
- A flower arrangement or food/fruit basket
The UIS/OAS suggested amount of a charitable donation is $50 - $250, but a Department may add employee personal contributions to the overall donation amount. Please note that all donations to charitable organizations require a memo containing the following information to accompany a letter of request from the UIS/OAS Financial Dean:
- Name and address of charity to receive donation
- Name of the deceased
- Gift receipt recipient’s name and address
Please forward the memo and all employee checks made out to the selected charity to Dave Murphy at 1230 Soldiers Field Road.
Please refer to the University’s online policy on Sympathy Contributions and Donations.
Work Related Achievements
When to Recognize Staff
UIS/OAS acknowledges that from time to time, expenses associated with specific work-related achievement events (e.g. gifts or celebratory activities) should be paid for by the organization. Examples of appropriate occasions to recognize employees include:
- To mark the achievement of a major departmental goal
- Individual performance recognition (excluding job promotions)
- To mark the end of the fiscal year or following fall rush activities
- To honor an employee in connection with a work-related employee recognition program
- To honor a long-service employee with 15 or more years of service
- To honor an employee leaving the department
- To honor a retiree
Inappropriate Times to Recognize Staff
- Celebratory events and gifts that honor individuals for non work-related achievements or personal events other than sympathy are considered inappropriate occasions to recognize employees and will not be considered for reimbursement. Personal funds may be used to pay for these and other kinds of staff parties and for gifts at such events. Examples of inappropriate occasions to recognize employees through department sponsored events or gifts include:
- Individual personal achievements or holiday gifts other than sympathy, including:
- Individual birthday celebrations
- Weddings
- Baby showers
- Housewarmings
- Graduations
- Christmas gifts
- Employee job promotion
- Anniversary of date of hire
- Festive events/decorations for calendar holidays that are not recognized by the University (i.e. St. Patrick’s Day or Valentine’s Day)
Please refer to the University’s online policy on what may/may not be charged under Employee Gifts and Celebratory Events.
Employee Gifts
Gifts may be given to recognize employees on appropriate occasions (see above section on When to Recognize Staff). Depending on what is given, and the value of the gift, there may be tax ramifications for the employee receiving the gift.
Gift Thresholds
The UIS/OAS recommended gift amount for a work related achievement outside of the extra compensation program is $75 - $100.
UIS/OAS suggested gift values for retirees or employees who leave the department are:
- < $100 for employees who have worked between 1 and 7 years in the department
- < $200 for employees who have worked between 8 and 15 years in the department
- < $300 for employees who have worked between 16 and 25 years in the department
- < $500 for employees who have worked over 25 years in the department
Taxability of Gifts
Gifts received by employees are taxable and must be reported as income if their value exceeds the following dollar thresholds:
- Gift certificates of any dollar amount
- Gifts of tangible personal property greater than or equal to $75 (including sales tax, shipping, handling and delivery costs)
- Gifts of tangible personal property greater than $400 to recognize a long-service or retiring employee (A ‘long-service’ employee is one who has been employed at least five years – only one gift can be given every five years).
Tangible Gifts
The preferred way to pay for all tangible gifts (excluding gift certificates), both taxable and non taxable, given to employees is to obtain a vendor invoice that can be processed and coded to object code ‘8450’. If an employee paid for a tangible gift using out of pocket funds (personal credit cards only) that, under the guidelines above, is determined to be non taxable, a Universal Expense Form should be submitted for reimbursement. All taxable gifts paid for with out of pocket funds will be reimbursed via the Extra Compensation Form (See section on Gift Certificates below for further instructions).
Also see the University’s online policy on the taxability of gifts to employees and individuals affiliated with Harvard.
Cash Gifts
All cash gifts issued to employees are processed directly through payroll utilizing the Extra Compensation Form. Please contact the CAIT HR Department at 617-495-5314 to provide the information required to complete the form (including a brief explanation of why the gift will be issued). CAIT HR will complete the Form and forward to Harvard University Payroll for processing. The amount will be added to the employee’s next paycheck with the appropriate taxes withheld.
Gift Certificates
All gift certificates received by employees are taxable and must be reported as income, regardless of the dollar amount issued.
Gift certificates are not the recommended form of employee recognition. However, they can be purchased for Harvard Staff using employee out of pocket funds (not the PCard or GE Corporate Card). Please contact the CAIT HR Department at 617-495-5314 to provide all information required complete the Extra Compensation Form (including a brief explanation of why the gift will be issued), CAIT HR will complete the form and forward to HU Payroll for processing. Payroll will add the gift amount to the recipient’s ordinary income to be included on the year-end W-2 form.
If another employee paid for the gift certificate with out of pocket funds, that employee will be reimbursed as a ‘third party’ in the next paycheck for the full amount (grossed up).
For more information, please refer to the University’s online policies on Work Related Achievements and Gifts that are Taxable to Employees.
Celebratory Events
UIS/OAS acknowledges that from time to time, there are expenses associated with certain holidays, employee recognition events, morale-building events, and retirement functions that should be recognized and paid for by the department.
Holidays or Employee Morale-Building Events
Holidays and employee morale-building events are excellent opportunities for the department to provide opportunities for staff to network and share experiences with their colleagues. Examples of these events include:
- Completion of a significant project
- A department-wide luncheon, dinner, or party in connection with a University activity (e.g. year end or Fall rush) or an established University-wide Holiday (e.g. Christmas)
- A department monthly practice of recognizing a group of employees whose birthdays fall within that month
Expenses associated with the above examples and all other morale-building occasions are reimbursable and must be charged to object code 8450.
For more information, please refer to the University’s online policy on Holidays or Employee Morale-Building Events.
Department-Wide Annual Retirement Event
Each year, the Office of the University CIO sponsors a department-wide event for 3 or more employees who have retired during the fiscal year and are recognized by the department for their years of service. If there are less than 3 employees retiring in any given year, the decision to hold a recognition event will be left up to the local business unit.
Local Events
Individual business units may elect to hold local events to recognize employees who are retiring or leaving the department. Local events may include conference or rented room gatherings and may also be catered. In lieu of a larger gathering, managers may elect to have a smaller gathering at a local restaurant for employees who worked very closely with the employee. The recommended amount for all local events is < $1,500.
Where to Code Allowable Expenses
Once you have determined an expense to be valid and reimbursable under the University guidelines and have obtained the appropriate management approval, please refer to the UIS/OAS Chart of Accounts publication or ask your Financial Partner for guidance on where to code the expense. Below is a table that lists examples of some of the most commonly used object codes for UIS/OAS allowable expenses.
When to Use Object 8450
Federal cost accounting standards require the University to properly classify and account for expenses. These standards apply to all Harvard funds, both sponsored and non-sponsored, and identify categories of expenses that are ineligible for federal reimbursement. The University has established cost accounting policies to ensure compliance with these standards. The following are some common expenses that are ineligible for federal reimbursement and should be charged to the object code 8450:
- Charitable contributions
- Appropriate employee celebratory events (e.g. department-wide luncheon, dinner, or party to mark achievement of a major department goal, or to mark the end of the fiscal year)
- Flowers
- Fines and penalties
- Gifts and awards (both monetary and non-monetary)
- Alcohol, including alcohol purchased with a meal
- General advertising costs to promote a name or organization (not for a specific purpose)
Please refer to the University’s comprehensive list of Expenses Ineligible for Federal Reimbursement.
How to Process
Direct payment or reimbursement for approved business expenses can be processed through one or more of the following methods:
Please refer to the individual policy related to the above items for information on how to process these transactions.
Who to Contact If You Still Have Questions
If you have questions regarding whether an expense is valid and reimbursable and/or how to process, you should contact your Financial Partner.
|
