This is a statement of Seton Hall University policy on business,
travel and entertainment expenses. It is applicable to all University
employees. Its purpose is the following:
- To furnish guidelines and to assist in fulfilling the requirements
of both the University and the Internal Revenue Service regarding
ordinary, necessary and reasonable business travel and related
- To furnish guidelines for those who incur, authorize and/or approve
- To provide instructions for the reporting and substantiation of
such expenses incurred
- Air Travel -
- Air Travel -
Functions/Student Related Entertainment
1.0 Travel General
2.0 Travel Arrangements
|| University personnel may, from time to time, be
required to travel to accomplish their assigned duties. Efforts should
be made to minimize expenses associated with such travel and to be
reasonable in all expenditures. Individuals are expected to exercise
discretion and good judgment and the same degree of prudence as if the
expenditure were a personal one.
It is the University policy to reimburse employees only for actual,
necessary and reasonable expenses incurred when traveling on University
business. Unreasonable or excessive charges, charges of a personal
nature (such as movie rentals, sightseeing tours, etc.) and charges not
directly related to and necessary for the conduct of University
business should not be reported for reimbursement or payment.
Expenditures for travel, overnight accommodations, and car rentals will
only be reimbursed after such expense has been incurred and approved.
Advance funding will not be provided by the University except for
|Grants and contracts-
Travel expenses to be charged to externally sponsored grants or
contracts must be in full compliance with the specific terms and
restrictions of the grant or contract, as well as this policy. Primary
responsibility for such compliance must be borne by the University cost
center manager of the account established to administer the grant or
To establish a uniform travel system, the university has chosen to
consolidate all travel arrangements with one agency. The university
believes this consolidation will provide travelers with superior levels
of service, convenience and significant dollar savings.
The agency will book and confirm all requests for airlines, hotels, car
rental, etc., in accordance with University policies. For out of
town travel, a purchase order number and cost center
number must be provided to the agency. While airline costs will be
paid in advance, hotels and car rentals must be paid for at the point
3.0 Air Travel - Domestic (U.S., Bermuda, Mexico, Puerto Rico,
Caribbean islands, and Canada)
4.0 Air Travel - International
|| All air travel should be booked through the
University's approved travel agency. Our policy objective is to
purchase air travel at the lowest expense level consistent with good
business practice. This objective can be accomplished by:
- Planning air travel as far in advance as possible
- Purchasing air travel at least 30 days in advance
- Scheduling all travel at least seven days in advance
||Coach class of service will be selected by our agency. You
should provide our agency with your destination, arrival and departure
requirements. Your requested arrival and departure times should allow
the travel service a minimum of two hours of flexibility in which to
arrange for the most economical travel.
||In order to place the full responsibility for the most
economical air travel with our agency, travelers are not to request a
particular airline or specific flight.
||If our agency should come back with an offer of an
alternate schedule outside your requirements, you should decide whether
your schedule can be adjusted.
||Employees should not request Business or First Class
except to meet extraordinary, specific business needs. This decision is
to be made by the employee's Division Head.
||In many instances, air travel can be made less expensive
by taking connecting flights rather than direct flights. Consideration
should be given to the time of day and length of time involved.
||Superiors should limit the number of employees from the
University on a single flight, where possible.
||Employees are not permitted to keep any benefits of a
non-cash nature received from Frequent Flyer and other promotional
programs offered by the industry. Under no circumstances will an
employee be permitted to alter cost-efficient travel plans made by the
travel agent in order to achieve these benefits. Such benefits are
directly accrued to the University and should be used whenever possible
on their next trip.
||Employees must return to the University all cash and other
refunds with monetary value received from airlines when they are
offered, should they be denied boarding (bumped) from overbooked
flights or any other nature.
|| Employees are not entitled to reimbursement for the
purchase of travel insurance.
||Employees should follow Domestic Air Travel policies with
the following exceptions:
||Business Class service will be booked for all non-domestic
flights which exceed four hours. Exceptions to this policy require the
approval of the appropriate Division Head.
||Flights involving international locations as both the
departure and the destination cities (e.g., London to Paris) should be
booked as coach unless he length of travel exceeds seven (7) flight
hours. Exception to this is the price of the ticket on Business Class
originating in the U.S. permits Business Class travel at no additional
||Travelers may be advised by our agency as to areas of the
world where travel may be unsafe due to international terrorism, as
well as specific carriers that should be avoided. Employees are not
permitted to override these advisories.
||Employees who are required to obtain a Passport for
international business travel will be reimbursed for both initial
and/or renewal fees through completing a Travel and Expense
6.0 Transportation at Destination
||When University business makes it necessary for an
individual to stay away from home overnight or longer, the University
will provide reimbursement of reasonable lodging charges.
||A single room with private bath in a business class
hotel/motel is the University standard. Use of a double room, where
possible, is encouraged. Use of a deluxe hotel/motel is rarely
justified and should be approved by the appropriate Division Head.
Suite or luxury accommodations cannot be reimbursed unless prior
Division Head approval is received or other rooms are not
||All hotel/motel reservations should be made through our
travel agency. If this is not possible, the traveling employee has the
responsibility of securing reasonable lodging cost, as outlined
||Our travel agent negotiates rates for employees at
selected hotels/motels in many major cities. Employees
should stay in these hotels whenever possible. Deviations requested
by the employee will be permitted in certain circumstances (e.g., when
attending special schools, seminars, and meetings with clients).
||Whenever possible, rooms should be reserved in hotels with
a corporate rate. To avoid "no-show" billing, guaranteed reservations
must be canceled.
||Other guidelines include the following:
- To take advantage of corporate rates, hotels may require an
identification number at the time of check-in. These are provided by
our travel agent.
- Rates lower than corporate rates may be available in a specific
locale or because of special promotions or special
conferences/seminars. The employee is responsible for ensuring he/she
is not charged more than the quoted rate or that the lowest available
rate is offered when checking in.
- When canceling a reservation, make a record of the cancellation
number or the name of the hotel employee taking the cancellation. This
procedure helps resolve "no show" billing disputes. Cancellation of
hotel reservations is the responsibility of the employee.
- When replacement accommodations are required, our agent will handle
both the replacement reservation and the cancellation.
- Our travel agent guarantees reservations. If the employee makes the
reservation, guaranteeing the reservation is her or his
6.6 Rental Cars
||Employees will be reimbursed for transportation costs
incurred while away on business.
||Employees are expected to use the most economical
facilities appropriate under the circumstances and are therefore
encouraged to use (in order of desirability):
- courtesy cars,
- airport limousines or buses whenever possible rather than
- taxis or
- rental cars. Sharing of vehicles is encouraged, where
||Many hotels have courtesy cars that will pick up the
traveler at an airport and take him back for no charge. Employees are
urged to take advantage of this free service whenever possible
||Airport limousines or buses are the second least expensive
mode of transportation from an airport to a hotel and should be used
whenever possible. At major airports (New York, Chicago, St. Louis,
Dallas, etc.) such services are quick as a taxi and decidedly less
expensive. This does not include chauffeured limousines, which are much
||Where airport limousines or buses are not available, a
taxi is often the most economical and convenient mode of transportation
available. The use of taxis is preferred over rental cars, but the
employee must use judgment. Individual receipts from taxis are often
hard to obtain, so explain all such charges on a trip-by-trip basis in
the space provided on the expense account form designated "Purpose of
7.0 Private Vehicles/Local Transportation
||Only if other means of local transportation are
unavailable, impractical or uneconomical may an employee use a rental
car. In particular, trips that involve travel only to and from a
downtown location very seldom require an employee to rent an
||Rental cars should, if possible, be arranged by the
University's travel agent to secure the best rate possible.
||If a rented car is used, the most economical car adequate
for business requirements must be used.
||The physical condition of the rental car is to be examined
prior to driving it from the car rental lot. Report damaged areas
immediately to the car rental agency and document them to avoid
possible litigation at a later date for damages to the car for which
the University is not responsible.
||If an employee rents a car in the U.S. while on University
business, that employee need not purchase collision and auto liability
insurance offered through the rental company as the University's auto
insurance policy covers University rented vehicles.
||In countries outside the U.S., employees should take out
extra insurance offered by the local rental agency.
||Employees should refuel rental cars just prior to return
to the vendor whenever possible and practical to avoid any surcharge on
fuel. The cost of refueling will be reimbursed on the travel and
||Individuals will be reimbursed for mileage of their
personal car while on business, at the current mileage allowance.
Reimbursement covers all expenses except tolls and parking.
||Reimbursement for the cost of vehicle parking fees and
bridge, road and tunnel tolls shall be allowed.
||For long distance travel, prior approval must be obtained
from proper supervision for permission to use a personal car in lieu of
public transportation. These expenses will be reimbursed only to the
extent that they do not exceed the cost of economy common carrier (air,
train, bus) fare (including any discount fare). A quote of comparable
rate must be obtained from our Travel Agency before making this
Appropriate supervisors may give authorization provided:
- such use does not significantly increase travel time.
- the employee has a valid driver's license.
- the employee has adequate insurance protection.
- other means of transportation are unavailable or impractical.
||University provided cars may be used when assigned while
traveling locally on University business. If not, a personal car is
expected to be used, with the University reimbursing the employee, as
||When a rental vehicle is used instead of a personal car
for local business, a statement justifying the use of the rental should
be attached to the travel and expense report. Such use should be
approved in advance.
||Employees will not be reimbursed for any fines (moving or
parking) incurred when using rental, University, or personal cars on
||Accident Reporting: Accidents involving rental,
University, and personal cars shall be reported immediately consistent
with local/state governmental laws to the proper authorities. A report
should be made to the Office of Public Safety and Security, with a copy
to the University's Safety Coordinator/Risk Agent following guidelines
established by the University.
||Traveling to an airport on University business, employees
should weigh the cost (mileage reimbursement and parking) of using a
personal vehicle versus a taxi or limousine and also reasonably
consider convenience. A limousine should be arranged through the
University's travel agent. Reimbursement for taxi or limousine fares
will be allowed.
9.0 Special Functions/Student Related Entertainment
|| The University will reimburse employees for
individual meal expense when traveling overnight on University
business. Employees are expected to make every effort to minimize meal
expense. The expense of one's meals should be recorded and reported
daily as breakfast, lunch and dinner.
- Normally, breakfast is authorized only when the preceding
night was spent away from home in a hotel/motel. Dinner is normally
authorized only when the traveler will be staying away from home in a
hotel/motel that same night.
||Employee reimbursement for meals where the employee is not
traveling overnight on University business can only occur if the meal
is for a business related purpose. To be considered business related,
the meal must be with at least one business associate, vendor
representative, customer or employee and must have a business
purpose and benefit. The meal must not be considered lavish or
extravagant. Expense reporting must follow specific Internal Revenue
Service guidelines (see Expense Reporting and Receipt
10.0 Expense Reporting:
|| University funds may only be expended for
entertainment or social functions that are deemed beneficial to the
University, have a business purpose, and have been submitted for
approval to the requestor's division head. Division heads will submit
their own such requests to the President for his approval. Approval of
such requests should be based minimally on the following factors:
- Funds are available in the requestor's budget.
- At least one half of those in attendance will not be members of the
University. Members of the University include students, faculty, staff
- The request for such expenditure of University funds has been made
prior to the entertainment. Funding for entertainment that has been
properly approved will be reimbursed after the entertainment has been
completed. Advance funding will not be provided by the University.
11.0 Receipt Requirements
||All employee expense reports must be submitted for
approval in accordance with Policy 104.0, Section C.
||The employee and the approving individual are
responsible for the preparation of expense reports which reflect
reasonableness, completeness as to supporting receipt documentation,
business purpose, and proper expenditures, all in accordance with
University policy. The approving individual should either amend reports
submitted or return them to the employee where improprieties or
inaccuracies exist or required supporting documentation is missing.
Once approved, the report should be sent to accounts payable.
||The form used to report expenses or request reimbursement
should be the Expense Report contained in the Lotus spreadsheet
package (or a comparable form). It can be prepared on a computer or
manually (typewritten or in ink). It must be manually signed and dated
by the employee and the approving individual.
||The Expense Report should reflect at the top the
employee's name, mailing address, department, cost center number, P.O.
number, and period covered. In the space provided, the expense report
should reflect, in accordance with IRS regulations, each separate
expense by day of a business trip, such as transportation, lodging,
meals, telephone, etc. (detailed lodging receipts should be broken down
for reporting purposes); and it should reflect the dates of departure
and return, the number of days gone, and the business purpose of the
Entertainment, which includes the cost of reimbursable meals while
not away on a business trip (see Meals/Entertainment discussions),
should be described on an expense report in the following manner, as
dictated by IRS regulations:
Private Vehicle/Local Transportation documentation on an expense report
should include, in accordance with IRS regulations, the amount of each
separate expense, mileage for each business use of a personal car, date
of use, name of city or other destination, and the business purpose for
the expense or use of the car.
- Nature of each separate expense
- Amount of each separate expense
- Persons entertained and their occupations or other information
which shows their business relationship to the employee
- Business purpose (business reason or the business benefit
gained or expected to be gained from the entertainment)
||Expense reports with supporting Receipts (see
below) should be submitted on a timely basis, not later than 10
calendar days following returned from a business trip.
||The senior level person attending a group business
meeting with employees is required to charge the expense. Check
splitting is prohibited. The expense must be approved by the
appropriate individual. If necessary, distributions to various
departmental accounts and budgets can be provided on the expense
report. Documentation must be supplied as to business purpose,
names and affiliation of those attending.
||Original receipts required to support expenditures on an
expense report should be attached to the expense report prior to
submission to one's immediate supervisor. In accordance with IRS
regulations, receipts are always required to support lodging expense.
These receipts must be itemized lodging bills, not credit card
receipts. Receipts for other items are only required where the
individual expense item is $75 or more.
If, for any reason, an original receipt is lost and/or unobtainable,
the employee should submit a signed statement to that effect.
||University staff traveling with student groups
(athletic teams, band, debate, etc.) should provide receipts for all
expenditures as noted in this policy with this exception: funds given
to students on a per diem basis for meals and other expenses should be
evidenced by a listing of all students receiving such funds with the
receipt evidenced by the student's signature.
||FAILURE TO COMPLY WITH IRS REGULATIONS NOTED IN 10:0
(EXPENSE REPORTING) AND 11:0 (RECEIPT REQUIREMENTS) COULD RESULT IN
TAXABLE INCOME TO THE EMPLOYEE
12.0 Disallowed Expenses:
||Personal gifts and/or luncheons/dinners for employees (for
instance, as is customary on holidays, Christmas, birthdays,
Secretary's Day, etc.) which have no specified business purpose, are
not to be charged as an expense to the University. Such items are a
personal expense to be paid for by the individual purchasing the gift
or providing the luncheon/dinner for the employee.
||Payment for attendance at special events of the University
(i.e., sports dinners, Many-Are-One, etc.) is the personal expense of
the employee, unless directly related to the conduct of business in
accordance with the individual's job responsibility at the
||While employees may request reimbursement of other
reasonable, actual and necessary expenditures not discussed in "Expense
Reporting and Receipt Requirement," they should not be seeking
reimbursement for expenditures which should be handled by purchase
order or check requisition.
December 14, 2004
Fax (973) 761-9201
Bayley Hall Rm. 2