Tuesday, November 16, 2004
 
To:        Ms. Sarah Zolad
            Dr. Rudy Bell
            Dr. Jim Miller
 
Re: University Senate Budget & Finance Sub-Committee Report on Travel Reimbursement Policy
 
I met with Karen Kavanagh, Executive VP Administrative Affairs on November 16, 2004 in regards to the University policy on travel reimbursement. The following bullets represent the main points of our discussion. With the exception of working with the administration to implement new rules, policies, and procedures there may be no action required of the Senate sub-committee.
 
Background
 

• The stringent control placed on Rutgers faculty, staff and students in 2004 was the result of internal audits conducted by the Board of Governors, which showed as low as 26% compliance rate in submitted invoices. Despite two previous audits with no improvement noted, the board took actions as part of its fiduciary duty to bring the university community into compliance.
• Loss of control of process spread widely across the campus.
• Rules tightened to bring policy into place
• The BoG audits showed sloppiness in departmental procedures including
• Outright fraud by some faculty who would make claims for trips never taken
• Capital equipment reimbursed without invoices
• TABERs being signed by administrative assistants rather than chairs or directors.
• First class trips without prior approval
• The BoG actions were intended to illustrate the seriousness of the fiduciary procedures; the board was particularly concerned about actionable IRS audits.
• IRS audits could show that taxable personal benefits were funneled through the reimbursement process.

 
Proposed Actions

• Karen Kavanagh indicated that the audits are now up to 75% compliance and the 25% not in compliance are minimal relative to previous BoG audits.
• The University is in the process of revising the rules with implementation on or about January 1, 2005. The proposed rules include to a large extent reversion to the old system, but with some additional features:
• There will no receipts required for purchases under $50. The previous limit was $10.
• The sole exception is for food claims less than $50 which is an IRS requirement
• Non-receipted per diem of $30 remains prorated at 20% breakfast, 20% lunch and 60% supper.
• The claim period will be extended to 60 days.
• Exceptions will be made for meals tied to conferences
• Higher per diems will be made available for more expensive U.S. cities. Per Diem rates are posted on the IRS web site. While the university will post per diem rates for larger cities, individuals will be able to make per diem claims for any city based upon the IRS rates.
• All that will be required is a meal receipt; there will not be any further requirements to identify exactly what was eaten.
• All alcoholic beverages must be removed for reimbursement. No exceptions.
• Meal receipts in a foreign language will require only an explanation, without further need for translation.
• For meals split amongst members of a party, a signed affidavit for the specified amount will be acceptable.
• Cash advances will be made based on foreign currency exchange rate translations
• Cash advances can be requested for hotel reservations made.
• Cash advances can be made for airline reservations made on line or outside of the University account.
• Must submit e-ticket with itinerary.
• A summary of conferences will be required for all conference reimbursements. This should be on a best effort basis and is required by IRS.
• If attendance is in question an affidavit signed by a chair or director with knowledge of attendance will be sufficient.

 
Actions Required of Faculty and Staff
 

• Chairs and directors should be held accountable for departmental finances.
• The university will provide general rules and guidance, but policies, procedures and guidelines for compliance will be designed at the departmental level.
• All TABERS must be signed by chairs or directors, or if not available an acting chair or director. If acting chairs/directors are not available then signature can be obtained from college dean.
• Administrative assistants cannot be held accountable.
• Administration will provide access to University Controller.
• Administration will post FAQ Web site to resolve ambiguities
• Training will be made available to administrative assistants/accountants