INDEX

I. Purpose
II. Scope
III. Requirements for Expense Reimbursement
IV. Responsibilities of the President, Provost, & Vice Presidents
V. Auditing of Travel & Entertainment Expenses
VI. Permitted Expenses
1. Airline
2. Hotels
3. Automobiles
4. Rail Travel
5. Meals
A. Alcoholic Beverages
6. Additional Clarifications
A. Spouse/Dependent Event Attendance and Travel
B. Extended Travel
C. Cancellation Refunds
D. Enforcement
7. Office of Sponsored Programs
8. Miscellaneous Reimbursable and Non-Reimbursable Expenses
9. Quick Reference Table for Business-related Expenses
VII. Approved Payment & Reimbursement Methods
1. Preferred Travel Agencies
2. AU One Card
3. Purchase Orders/Prepayments
4. Advances
5. Per diems

VIII. General Procedures for Expense Reimbursement
1. Missing or Lost Receipts
2. Partial Reimbursement
IX. Employee Recruitment
X. Appendix A- Miscellaneous Reimbursable Expenses
XI. Appendix B- Miscellaneous Non-reimbursable Expenses
XII. Appendix C- Quick Reference Table for Business-related Expenses

I. PURPOSE
The purpose of this Policy is to provide broad guidelines and establish procedures for those individuals incurring official travel and business expenses on behalf of American University. The intent is to control travel expenditures, maximize the ability to negotiate discounted rates with preferred suppliers and to ensure compliance with Internal Revenue Service (IRS) requirements. The Travel Expense Policy is intended to be an information resource and guide to make travel arrangements, as well as processing travel and other related expenses.

II. SCOPE
The Travel Expense Policy applies to the following individuals traveling on behalf of the University and are seeking reimbursement for appropriate business- related expenses , regardless of the funding source:
• All employees of the University.
• University students whose travel and other related
expenses are being reimbursed by the University.
• Non-employees who have been invited to the University or have been authorized to travel and/or entertain on behalf of the University, such as job applicants, lecturers, and consultants).

The University assumes no obligation to reimburse employees, students and non-employees for expenses that are neither business-related nor in compliance with this Policy.
Schools or departments may impose greater control than required by this Policy but never less.

III. GUIDELINES FOR EXPENSE REIMBURSEMENT
The authorized signer approving an expense reimbursement must verify that expenses and expense reports meet the following criteria:
• Travel and entertainment expenses or advances are incurred while conducting University business
• The information contained on the expense report and in the
attached documentation is accurate and complete
• Expense meets any and all sponsor policies, if applicable
• Expenditure is charged to the proper account(s)
• Signer has authorization over the account being charged
• Signer can not authorize reimbursement for one’s own expenses

Travelers must have their travel plans and expenses approved by their supervisor. Using the standard University Travel Expense Form, travelers must report and substantiate the amount, date and business purpose of all expenses within thirty (30) days upon completion of travel. Original receipts must be attached to the Travel Expense form, including a check for any cash advance amounts in excess of substantiated expenses.

Unsubstantiated and unsupported expenses may not be reimbursed. Cash advances not accounted for within thirty (30) days after completion of travel may be deducted from employee’s paycheck or considered taxable income to the employee.

Travel and entertainment related expenses will be paid by the University if they are deemed to be reasonable, appropriately documented, properly authorized and within the guidelines of these policies.

IV RESPONSIBILITIES OF THE PRESIDENT, PROVOST & VICE PRESIDENTS

The President, Provost, Vice Presidents, and Deans will ensure compliance with this Policy in their respective divisions, schools and centers. The President, Provost, and Vice Presidents may make exceptions to this Policy in the event of extenuating circumstances. All exceptions must be documented in writing and attached to the respective Travel Expense Form.

V. AUDITING OF TRAVEL & ENTERTAINMENT EXPENSES

The Controller’s Office will audit all Travel Expense reports for compliance with University policies and Internal Revenue Service (IRS) regulations. Additional information supporting an expense may be required prior to the expense being reimbursed.

Travel and other related expenses will be included in the audit testing performed by the University's independent accountants in connection with OMB A-133, Audit of Federal Awards and with the annual general purpose financial statement audit.
The Internal Audit Department will include Travel and other related expenses in connection with department reviews.

VI. PERMITTED EXPENSES

1. AIRLINE TRAVEL - Whenever possible, coach or economy class accommodations should be used and travelers are expected to take advantage of advance purchase rates and educational consortium discounts for domestic flights.

Travelers on international flights where one flight segment is longer than five (5) hours may fly business class. Furthermore, flights should be booked, using the least expensive fare via the most direct route, or other reasonable routing that results in the lowest fare possible .Traveling employees may retain frequent flyer program benefits. However, participation in these programs must not influence flight selection which will result in incremental cost to the University beyond the most economical airfare, as defined in this Policy. The University will not reimburse travelers for tickets purchased with frequent flyer miles.

2. HOTELS - AU has negotiated discounted preferred rates (based on availability) with local hotels in the area. The University also participates in a network with other universities throughout the country which share their negotiated rates with us. For additional information on hotel rates please visit our Campus Travel Page http://www.campustravel.com/university/american/. Whenever possible, travelers should stay in a standard room at a non-luxury hotel, or at designated conference hotels with documented, discounted rates.If a traveler elects to stay at a private residence, the traveler will be reimbursed for a small gift or meal extended (in lieu of lodging) as a gesture of appreciation to friends and relatives for their hospitality. A host gift is reimbursable if the payment is less than the expense normally incurred and does not exceed $75.

3. GROUND TRANSPORTATION

A. Modes of Ground Transportation- The most economical mode of transportation, such as shuttle services and public transportation should be used to and from air, rail or bus terminals, whenever possible. Private sedans or limousine services should be avoided unless there are enough people traveling together to make the expense more economical than other modes of transportation.

B. Rental Cars- AU has discounted car rental rates with Enterprise, Alamo, and Budget Rental Cars. These rates are lower than comparable rates with other major rental car companies and utilize educational consortium discounts. Travelers should use a rental car when other transportation is not available or when their use results in a cost savings. The size of the rental car should be the least expensive model (compact) consistent with the number of travelers, the business requirements of the trip, and safety of passenger. Minivans should be used only if transporting large or bulky material, OR four or more individuals are traveling together, or it is deemed reasonable by the Controller’s Office. For specific information on negotiated rates, visit the Campus Travel Page (http://www.campustravel.com/university/american/).Travelers should decline the Collision Damage Waiver (CDW) and the Liability Damage Waiver (LDW) option, supplemental liability coverage, personal accident insurance and other additional insurance options when renting a car for business purposes. Such coverage is provided under the University's insurance policies and is not reimbursable.
Any additional questions about car rental insurance should be directed to the Risk Management office at (202) 885-2706 (http://www.american.edu/finance/rmo/insurance.html). Travelers must notify the Risk Management office AND the rental car company within 24 hours if an accident occurs OR as soon as practically possible.

Student renters should use the University's corporate ID#s for Enterprise Rent-a-car ONLY when all of the following conditions apply:
• A school sponsored event
• Authorized by a school or department
• 21-25 years of age or older
• Possess a valid driver's license

C. Private Vehicles- Employees may use their personal car for business purposes if it is less expensive than other options, such as rental cars or taxis, or if it saves time.
It is the personal responsibility of the owner of a vehicle being used for University business to carry adequate insurance coverage for their protection and for the protection of any passengers. Employees are not covered under the University’s automobile policy when driving their vehicle for University business purposes. If driving a personal vehicle, your personal insurance covers vehicle damage and you are responsible for any liability or expenses incurred. When driving your own vehicle, the University will reimburse a mileage rate calculated on a per mile basis for the actual miles traveled. This mileage rate covers all transportation and operating costs of the vehicle, including gasoline and is based on the stated IRS rate in effect at the time of travel. Current IRS rates can be found at the following URL - (http://www.irs.gov/newsroom/article/0,,id=163828,00.html). Additional reimbursement will be made for turnpike tolls, bridge tolls and reasonable parking fees.

The University will not reimburse employees for parking tickets, fines for moving violations or vehicle towing charges. No reimbursement will be made for vehicle repair costs regardless of whether it results from the traveler's acts or the acts of others.
Travelers who choose to use their own automobiles on a trip where air travel is more appropriate will be reimbursed an amount not to exceed the most economical air fare to the destination.
Expenses associated with normal commuting between an employee's home and regular place of work are not reimbursable.

4. RAIL TRAVEL -A. Reserved/unreserved trains. Coach class on these trains is the least expensive mode of rail transportation and is the most appropriate for the vast majority of American University travelers. Reserved and unreserved commuter trains on the northeast corridor should be used for most Amtrak travel. Sleeping accommodations, if justified, may be utilized.
B. Amtrak Metroliner Service: It is up to each department head to determine if it is appropriate for someone to travel on a Metroliner train. Please note that Metroliner service is approximately twice as expensive as reserved / unreserved trains while only marginally faster. If Metroliner service is deemed appropriate, “Metro Business” is the permitted class of service. “Metro First” is considered first class and requires additional approval.

5. MEALS - Business meals are defined as meal expenses incurred when conducting University business.
Meal reimbursements will commence from the time you leave home until your return. Travelers will be reimbursed for personal meal expenses provided they are documented and reasonable. In general, meals should be taken at the most economical restaurant fitting the occasion. Three meals per day will be reimbursed, which include breakfast, lunch and dinner.
If a meal is provided by a conference as part of the conference fees and a traveler elects to purchase a meal independent of the conference, such meals will be considered a personal expense and will not be reimbursed.
A business meal also occurs when a University employee meets with business associates, professional colleagues, students and others over a meal during which a business discussion takes place.

A. Alcoholic Beverages- All University sponsored events at which alcohol is served, e.g. meetings, conferences, receptions, parties, retirements, fund raisers, etc., must be pre-approved using a signed Alcohol Approval Form.
Purchase of alcoholic drinks on behalf of special guests and donors are allowed and reimbursable if incurred while conducting a University activity with a reasonable business purpose.
For more information related to the purchase of alcoholic beverages, please see the Alcohol Policy-http://www.american.edu/academic.depts/cas/katzen/docs/UniversityAlcoholPolicy.pdf

6. ADDITIONAL GUIDELINES -
A. Spouse/Dependent Event Attendance and Travel - AU will not pay or reimburse business travel or expenses for family members who accompany AU employees or students on University business except in unusual circumstances. Exceptions must be approved in advance and in writing by the appropriate University executive (President, Provost or Vice President).
B. Extended Travel - Reimbursement for meals, lodging and other expenses will normally be limited to expenses incurred a day prior to or after the meeting, conference or other business activity attended by the traveler. However, expenses incurred on additional days may be reimbursed if extending the period results in a reduced round trip air fare sufficient to cover the meals, lodging and other expenses.
C. Cancellation Refunds - If the University has prepaid an expense and the trip, event or conference is canceled, a refund should be sought. Once the refund is received, it must be deposited back into the account from which the prepayment was paid. The responsibility of ensuring a refund rests with the individual departments and not the Controller’s Office.
D. Enforcement - If an employee consistently fails to turn in original receipts or otherwise violates University Policy, reimbursement of costs may be at risk of not being reimbursed.

7. OFFICE OF SPONSORED PROGRAMS - In addition to AU’s Policies, the Office of Sponsored Programs (OSP) may have additional requirements when University travel is required or paid by a sponsored program activity. In particular, federal government grants are subject to government travel guidelines. For further information, consult the OSP website:http://www.american.edu/academic.depts/provost/osp/PIhandbook%202005/PIhandbook2005.pdf

VII. APPROVED PAYMENT AND REIMBURSEMENT METHODS

The University offers the following methods of payment to assist individuals who are required to travel or entertain on behalf of AU:

• Preferred Travel Agencies
• AU One Card
• Purchase Orders/Prepayments
• Cash Advances
• Travel Expense Form for Reimbursements

These payment methods reduce the amount that any individual should have to pay out of pocket prior to being reimbursed by the University.

1. Preferred Travel Agencies - The following preferred travel agencies should be used when booking travel for AU travelers

• MacNair Travel Agency
• Marathon Travel Agency
• Travel-Plus Travel Agency

Click on our travel portal for travel agency information

When making airline reservations, the University highly encourages travelers to use the services of the above preferred agencies to ensure that the traveler gets the most economical price for their proposed itinerary. AU's education consortium discounts can be used, if applicable, and the cost will be automatically charged to your department through the use of a central billing account.

The University has structured its program with more than one travel agency for maximum flexibility and competition. You may select any of the agencies and use them exclusively, or you may switch at any time. As much as possible, please refrain from using other agencies as the University cannot keep track of all its travel data when other travel sites or agencies are used.

When making travel arrangements, provide the preferred agency with the following information:

• Traveler's name
• University Department
• Campus telephone number
• Campus building and room number
• General ledger account number (18 digits)

Other travel agencies, direct purchases from carriers, or purchases from inline consolidators may be used IF the traveler is able to get a lower rate than that offered by the University's preferred travel agencies. In this case, a copy of the proposal from the agency must be submitted to purchasing and a requisition entered into the procurement system Datatel.

2. AU ONE CARD - The University makes available to full-time academic and administrative personnel who are required to travel or entertain on behalf of the University, an AU One Card, subject to the immediate supervisor’s approval.
The One Card can be either a travel card, purchasing card or combination of both. The travel component of the One Card provides University employees with the ability to charge business-related expenses without impacting the spending limits of their own personal cards.
The card also allows the capture of travel data that assists in tracking travel patterns and negotiating savings opportunities on behalf of the University.
The AU One Card purchasing card component may not be used to purchase goods and services which require a University purchase order, capital equipment, or items over $500.00, unless prior authority has been secured http://www.american.edu/finance/cop/Policy_Guidelines.html. When using your AU One Card for travel purposes, the following insurance is automatically included: (1) Business Travel Accident Insurance with coverage up to $500,000 for AU travelers while on a business trip, and (2) coverage for lost, damaged or stolen baggage up to $5,000. Independent flight insurance purchased by individuals is not a reimbursable expense. Travelers must notify the Risk Management office immediately if an accident occurs.

All One Card travelers are eligible for advances of $100 per day up to a maximum of $500 per week for reasonable out-of-pocket travel expenses. The preferred method of obtaining travel advances is via an ATM withdrawal using the traveler’s AU-issued One Card. ATM advances should not be taken more than three days before the expected travel or expense. Cash advances at ATMs overseas are dispensed in local currency. ATM advances secured via the One Card must be accounted for within thirty (30) days following the end of the billing cycle in which they appear on a cardholder’s monthly statement.

3. PURCHASE ORDERS/PREPAYMENTS - PREPAYMENTS” are payments to a third party for services to be rendered in the future. Such prepayments could be used for local caterers, restaurants and hotels where an expense will be incurred and a proforma invoice has been submitted for payment.
All requests for payments or prepayments to vendors must be entered into the procurement system (Datatel) as a requisition with the appropriate proposal or back-up attached.

4. Cash Advances - A cash advance is the payment of funds to an authorized full-time employee prior to a University business trip or event.
Travelers may request cash advances in the form of an AU accounts payable check issued within two weeks of travel dates. Allow at least three business days for check preparation.
Travel advances must be accounted for on a Travel Expense Form and any excess advances repaid within thirty (30) days after traveler’s return. Unaccounted travel advances may be deducted from employee’s paycheck and/or have personal income tax consequences for the traveler.

5. Per diems - University employees may choose either to file for actual expense reimbursements or a per diem rate. A per diem is given to a traveler to cover lodging, meals, and incidental expenses in connection with the performance of services for the University. Travelers may not request actual expenses reimbursements for one portion of their trip and per diem for the remainder of the trip, except and only in the instance where meals are already included in a trip or part of a trip. Travelers who use per diem allowances do not have to substantiate each lodging and meal expense, but they must demonstrate that the trip occurred by providing an airline or hotel receipt. The following per diem rates are used for lodging, meals, and incidental expenses:

http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&contentId=17943

These rates cover both hotel and meals and are set by the Internal Revenue Service. Per diems may not exceed the federal per diem rate the the specific location and duration of the trip. Independent contractors, alumni and other non-employees who perform services for the University may not use per diems except by prior written approval by the Controller of the University who only approves in rare cases.

Travelers may choose to claim a combined per diem for lodging and meals or the per diem for meals and incidental expenses only. If the total actual lodging and/or meals are incidental expenses incurred for the duration of the trip are less than the total State department per diems for the same trip, travelers may claim a lower per diem rate and therefore, do not have to substantiate nor submit receipts for these expenses. When attending conferences or business meetings and events where meals are included as part of the registration or the program, travelers may not request a per diem reimbursement for those days but show actual expenses for non-covered meals.

Travelers who have and use the university's One Card for travel expenses may not charge their lodging and meals and incidental expenses to the One Card if requesting a per diem reimbursement.

Incidental expenses are combines with meals into a single rate and includes, but are not limited to:
expenses for laundry, cleaning and pressing of clothing
personal phone calls
tips or gratuities for services (i.e.) waiters, baggage handlers

VIII. REIMBURSEMENT PROCEDURES

1. Forms and Documentation.It is a the University requirement to retain, for six years, all documentation supporting requests for reimbursement as defined in the Records and Retention Policy http://www.american.edu/finance/vpfin/docs/American%20University%20Records%20Retention%20and%20Disposal%20Policy.pdf

All P-card transaction receipts should be retained by the Department’s budget liaison, while all expense reimbursement receipts will be retained by the Account’s Payable Department.

Travel Expense Forms should be used for travel-related expenses and Disbursement Request Forms should be used for non-travel-related expenses. These forms are available online and maybe downloaded from Accounts Payable Forms on https://my.american.edu .

All authorized travelers submitting these forms sign their own names to certify to the best of their knowledge that the information contained therein is accurate and that all claimed expenses are allowable and were incurred in the conduct of official University business. See Appendix C for Examples.

The University will not reimburse travel and other related expenses that have been or will be reimbursed from any outside source.

All reimbursements will be made by check, payable to the traveler and will be sent to the requestor by method checked on the Form.

Individuals requesting reimbursement in U.S. dollars for expenses paid in foreign currency must provide the exchange rate being used and the U.S. dollar equivalent on all receipts http://www.oanda.com

Expenses paid in foreign currency must be claimed by providing the actual expense/s by showing any of the following:

• receipt from the currency exchange company or bank showing the actual exchange rate and fees when exchanging cash
• bank statement showing ATM withdrawal in foreign currency and conversion to dollars with fee added
• credit card statement showing charges in foreign currency and conversion to dollars with fee added

If any of these required receipts or statements cannot be provided, then individuals must use the interbank rate shown on the website ( http://www.oanda.com ) by providing the exchange rate being used and the U.S. dollar equivalent on all receipts

When the total reimbursable expense is under $100, it should be processed through a department's petty cash fund, UNLESS the reimbursement is for non-employees or non-students .A non-employee's signature is not required on the Travel Expense Form. The authorized budget individual within the division must sign the non-employee’s Travel Expense Report.
A company, working under a duly executed University contract, may elect to be paid for travel-related expenses incurred by their employees in lieu of a direct payment to traveler. In this case the company must provide a detailed list of all expenses for which reimbursement is requested and attach it to an invoice or bill for services. It is not necessary for the company to provide original receipts with the invoice; however, the University reserves the right to inspect such receipts.

2. Missing or Lost Receipts - An individual who incurs expenses and subsequently loses a required receipt, should seek a duplicate and submit it stating that the original was lost. When an acceptable duplicate cannot be obtained, some supporting documentation must be provided such as credit card statements. Along with the supporting documentation, a written explanation must be provided stating that the original receipts have been lost, duplicate receipts cannot be obtained and the supporting documentation is all that can be provided to support the expense.
Incorrect or incomplete Travel Expense Forms/Disbursement Request Forms will be returned to the department with an explanation requesting the necessary corrections.

3. Partial Reimbursement - If an expense is being paid by more than one University or entity, copies of receipts may be provided along with a brief explanation. If a school/center has previously agreed to reimburse an individual up to a certain amount, that amount should be shown on the Travel Expense Form/Disbursement Request Form along with the accompanying documentation. IX. EMPLOYEE RECRUITMENT AND RELOCATION EXPENSES

Please contact Human Resources for more information on the University Household Relocation Policy.

X. APPENDIX A- MISCELLANEOUS REIMBURSABLE EXPENSES

Individuals will be reimbursed for the following miscellaneous expenses incurred while on University business:
• Business office expenses (faxes, copying services)
• Business phone calls
• Conference registration fees
• Currency conversion fees
• Gasoline (only if using a rental car or a University-owned vehicle AND in lieu of mileage)
• Ground transportation (taxi, bus, airport vans, etc.)
• Laundry/dry cleaning/suit pressing on trips exceeding five days
• Mileage on personal vehicles specifically to and from the airport
• Overnight package service when needed for business documents
• Parking and tolls
• Reasonable tips
• Required vaccinations for international University travel
• Visa fees

XI. APPENDIX B- MISCELLANEOUS NON-REIMBURSABLE EXPENSES

The following are examples of non-payable/non-reimbursable expenses.
This should be considered a partial listing:

• Airline club membership fees; annual membership for charge cards;
Fees, interest, and/or late charges associated with personal credit cards;
• Car washes;
• Clothing;
• Commuting costs to/from home and normal place of business;
• Costs incurred by unreasonable failure to cancel reservations;
• Dependent care; child care; lawn care; maid service; and pet care;
• Entertainment under most federal grants and contracts;
• Excessive tipping over and above normally accepted business practice;
• Fines or tickets resulting from traffic, parking, or other violations;
• Golf or tennis court fees, membership in country, tennis, or golf clubs,
or any sporting equipment, except when part of a preauthorized group
event;
• Haircuts;
• Life, accident, or flight insurance premiums;
• Lost, broken, or stolen property;
• Luggage or briefcases;
• Meals when traveling locally on University business;
• Newspapers, magazines, books unrelated to University business.
• Expenses that have been or will be paid or reimbursed by an outside
source.
• Passport application fees (new or renewal)
• Alcoholic drinks, except when appropriately authorized (see above)

Please contact Accounts Payable with any questions.

XII. APPENDIX C - QUICK REFERENCE TABLE FOR BUSINESS-RELATED EXPENSES

Business Expense Allowable Costs * Receipt Requirements Other
Air Travel - Domestic
(1) Coach class or least costly consistent with the itinerary
(2) upgrades at university expense are not permitted.
(3) Original passenger receipt or coupon; OR
(2) E-ticket or other proof of purchase and boarding pass.

International Air Travel Coach class; or business class airfare when any leg of the flight is longer than five hours.
(1) Original passenger receipt or coupon; OR
(2) E-ticket or other proof of purchase and boarding pass.

Hotel -Single room rate;
-Business telephone calls;
-Luggage storage & tips for service;
-Other allowable charges (see above). Original receipt with line item breakdown.

Automobile-Private Current IRS rate. Mileage log submitted on a Travel Expense Form.
Auto-Rental Use compact rates and the following preferred rental companies:
(1) Enterprise;
(2) Budget;
(3) Alamo.
Itemized rental car receipt including daily rate and other fees.

Meals Actual costs, excluding alcohol, except when appropriately authorized (see above).
1. Itemized receipt, OR
2. Front and back of cancelled checks. Alcohol will not be reimbursed on Federal awards.

Phone Calls Actual costs, not monthly plan fees or percentages.
1. Invoice OR
2. credit card statement and line item call detail.

Train/Rail Coach class, reserved or unreserved seats.
1. Train/Rail ticket OR
2. coupon OR
3. if e-ticket proof of purchase and boarding pass.

Other/Miscellaneous Actual costs.
1. Itemized receipt OR
2. front and back of cancelled checks.

Conference/Registration Fees Actual costs including any educational discounts.
1. Receipt from conference OR
2. printout from on-line payment along with conference invoice. Usually a prepayment.

* Note: When original, itemized receipts cannot be obtained, some supporting documentation must be provided such as a credit card statement. Customer copies of non-itemized credit card receipts will suffice, but Statements from the credit card company, unless itemized will not suffice by itself. A written explanation must be provided stating that the original receipts have been lost, duplicate receipts cannot be obtained, and the supporting documentation is all that can be provided to support the expense.

.