1. Introduction

This Section details allowable expenditures and non-allowable expenditures.

2. Allowable Expenditures

The following are examples of the types of expenditures that may be reimbursed subject to the Policy:

1. Campus Events
2. Campus Meetings & Committees
3. Business Entertainment
4. Recruitment, Soliciting Donors, and Hosting
5. Non-travel Purchases
6. Professional Dues and Subscriptions

3. Non-Allowable Expenditures

The following are examples of the types of expenditures that are not allowable or reimbursable:

1. Excessive or extravagant costs.
2. Political contributions.
3. Personal violations or fines including speeding or parking tickets.
4. Gifts or any type of compensation to University employees, other than those provided through official recognition programs approved in accordance with the Approval Matrix in Section 2.02.
5. Any expense of a personal nature will not be paid or reimbursed.
6. Alcoholic beverages, unless in accordance with the standards on alcohol in Section 1.03.
7. Expenses for spouses, except as allowed in the Executive Compensation Package for University President and Campus Chancellors (T93-062) (when approved) or as part of an institutional event which has received prior approval.
8. Any unexplained or undocumented expenses.
9. Purchases not made through BuyWays (preferred) to support business operations or not made with University bank card (secondary); exceptions for non-travel out-of-pocket reimbursement may be granted.
10. Union dues.
11. Institutional memberships and subscriptions are not generally allowable as direct costs on a sponsored project. Exceptions may be granted with prior approval. See Section 2.02.
12. Life memberships in a professional organization are not generally allowable, however, if it is anticipated that the overall cost will be less than the cost of annual memberships over the employee’s anticipated tenure at the University, an exception may be granted with prior approval. See Section 2.02.
13. Moving expenses not processed as transition relocation allowances through payroll or in accordance with the Central Administration Guidelines for moving expenses. The University does not allow payment to third-party vendors for moving.
14. Expenses for an employee’s remote work location, including networking and Internet access, additional equipment, furniture, computer hardware, phones, etc..

4. Approvals

The approval requirements for reimbursement of allowable expenditures are outlined in the Approvals section of these Standards. See Section 1.08.

5. Exceptions

Exceptions to non-allowable expenditures can be requested per the guidelines outlined in Section 1.08 of these Standards.

6. Resources

UMass Chan Medical School Moving Expense Guidelines (for UMass Chan employees only).

1. Introduction

This Section outlines the overall guidelines, allowable expenditures, and non-allowable expenditures related to non-travel food and beverage business expenses. Travel-related food and beverage expenditure guidelines are outlined in Section 1.06.

2. Overall Guidelines

1. Per IRS guidelines, documentation for all business meals and entertainment functions must include a statement of business purpose and a list of attendees, regardless of the mode of payment. Business expense documentation requirements are detailed in Section 1.08.
2. Food and beverage expenditures must be reasonable and appropriate to the purpose and nature of the event (see Maximum Cost Guidelines below for maximum per person meal rates).
3. Expenditures related to meals or functions with alcohol must be in compliance with the standards pertaining to alcohol in Section 1.03.
4. Sponsoring agency guidelines regarding the purchase of food should be reviewed carefully prior to charging to sponsored research funds.
5. Some campuses require that food served at meetings on campus or on property owned or controlled by the University be provided by campus Hospitality and Events Services. Please refer to campus policies and procedures for additional details.
6. Business expense documentation is required for all business expenses incurred by means other than reimbursement that could appear to be dual use or personal. For example: business meals, meetings, gifts.

3. Allowable Expenditures

1. Meals for employee-only business meetings are allowed with an extended agenda such as trainings, workshops, and retreats, or to support emergency operations, or as allowed in collective bargaining agreements.
2. Light refreshments (coffee, soda, and other non-alcoholic beverages; pastries, cookies, fruit, snacks, or similar) are allowed for employee-only business meetings and seminars (events) that are conducted for the educational enrichment of students, postdocs or medical residents.
3. Alcohol consumed at a business meal or meeting must be reasonable (generally not to exceed 25% of the total bill or a single beverage per person that is reasonably-priced as determined by the department) and be served in conjunction with a meal. Please refer to Section 1.03.
4. Discretionary tips up to 20 percent of the meal cost.

4. Non-Allowable Expenditures

1. Departmental non-business meals and dinner celebrations or other non-incidental food and beverage expenses that involve only University employees and not external business guests are ordinarily not permissible expenses unless special circumstances exist, and the expenditure is pre-approved in accordance with Section 1.08.
2. Meals provided as a matter of personal convenience.
3. Alcohol purchased with sponsored research funding.

5. Approvals

The approval requirements for food and beverage business expenses are outlined in the Approvals section of this standard. See Section 1.08.

6. Exceptions

Exceptions can be requested per the guidelines outlined in the Exceptions section of this standard. See Section 1.08.

7. Maximum Cost Guidelines

Maximum per person rates for non-travel business meals. Guidelines will be periodically reviewed and updated.

8. Hospitality and Events Services Resources

• Amherst
• Chan
• Dartmouth
• Lowell

1. Introduction

This Section outlines the overall guidelines, allowable expenditures, and non-allowable expenditures related to the purchase of alcohol during non-travel related business meetings and University events. Travel-related food, beverage and alcohol expenditure guidelines are outlined in Section 1.06.

2. Overall Guidelines

1. The purchase of alcoholic beverages is highly discouraged; however, there may be a Valid Business Reason to purchase alcoholic beverages. If there is a Valid Business Reason, the expense is reasonable, and the purchase adheres to this standard, the purchase of alcoholic beverages may be allowable. Prior approval is required for the purchase of alcoholic beverages for University events.
2. The expenditure and the circumstances for the consumption of alcoholic beverages must not jeopardize the University’s reputation, or the health and welfare of those involved.
3. The sale, service, possession, and consumption of alcoholic beverages at University Events or Business Meetings are regulated by federal, state, and local laws.
4. Alcoholic beverages at University Events or Business Meetings must be provided by a licensed and insured vendor.
5. Food and non-alcoholic beverages must be provided at all events that include alcoholic beverages. Alcohol and food must be provided by the same licensed and insured vendor to ensure that there is an appropriate balance of food and alcohol served.
6. Certain campuses require that alcoholic beverages and food served at meetings on campus or on property owned or controlled by the University be provided by campus Dining Services. Please refer to the resources page for links to campus dining services for additional details.
7. Alcoholic beverages at University Events cannot be purchased or served by University staff or volunteers who are not under the employment of the vendor providing alcoholic beverages.
8. Regularly scheduled meetings or functions at which alcoholic beverages are served to attendees may obtain an annual blanket approval for such meetings or functions.

3. Allowable Expenditures

1. The purchase of alcoholic beverages is an allowable expense when there is a Valid Business Reason for the purchase during a Business Meeting/meal, at on-campus University Events, or at off-campus University Events.
2. The purchase of alcoholic beverages during a Business Meeting/meal must be reasonable and be served in conjunction with food and non-alcoholic beverages; reasonable cost is defined as 25% or less of the total bill (or a single beverage per person that is reasonably priced as determined by the department). Exceptions may be granted.

4. Non-Allowable Expenditures

1. The purchase of alcoholic beverages at events or meetings that do not have a Valid Business Reason to provide alcohol.
2. The purchase of alcoholic beverages made without prior approval for events or approval for business meals.
3. The purchase of alcoholic beverages that exceed reasonable cost unless an exception is granted; reasonable cost is defined as 25% or less of the total bill (or a single beverage per person that is reasonably priced as determined by the department).
4. The purchase of alcoholic beverages without the purchase of food.
5. The purchase of alcoholic beverages through any source other than a licensed vendor.
6. The purchase of alcoholic beverages with “to-go” meals for consumption at a location other than the event or meeting.
7. The purchase of alcoholic beverages is not allowed with any state appropriated funds, federal or state grants or contracts.
8. The purchase of alcoholic beverages using sponsored research funding unless prior approval is provided by the sponsor and the University.

5. Approvals

The approval requirements for alcohol expenses are outlined in Section 1.08 of these Standards.

6. Exceptions

Exceptions can be requested per the guidelines outlined in the Exceptions section of this standard. See Section 1.08.

1. Introduction

This Section details allowable and non-allowable expenditures and reimbursements associated with personal vehicle use for business purposes.

2. Overall Guidelines

1. The University reimburses mileage associated with personal vehicle use for business purposes at the current federal (IRS and GSA) mileage reimbursement rate. The federal mileage rate is set each calendar year and applies to miles traveled during that calendar year.
2. Mileage reimbursement rates are inclusive of fuel, vehicle maintenance, towing, repairs, tires, depreciation, and insurance costs. Expenditures associated with these costs are not reimbursable.
3. Mileage reimbursement rates are not inclusive of expenditures for parking, tolls, or fees for ferries, bridges, and tunnels. Such expenditures are reimbursable provided they are necessary and reasonable.
4. Employees are required to travel the most direct route when using personal vehicles for business purposes and seeking mileage reimbursement. The most direct route is considered the shorter distance from the traveler’s home or primary work location to the destination point. Exceptions including reasonable circumstances that require an alternate route be traveled may apply.
5. In accordance with IRS rules, mileage between home and primary work location is considered an employee’s normal commute and is not reimbursable. Employees should deduct normal commute mileage from their requests for mileage reimbursement.
6. Employees are required to document mileage (with resources such as MapQuest or Google Maps) to be eligible for reimbursement.
7. If two or more employees travel in the same vehicle, only the employee who owns the vehicle can be reimbursed.

3. Allowable Expenditures

1. Mileage associated with personal vehicle use for business purposes provided the most direct route is taken.
2. Necessary and reasonable costs for parking, tolls and fees for ferries, bridges, and tunnels.

4. Non-Allowable Expenditures

1. Commuting expenses between home and the primary work location.
2. Personal vehicle expenditures associated with fuel, maintenance, towing, storage, repairs, tires, depreciation, and insurance even when the personal vehicle is used for business purposes. Mileage reimbursement rates are inclusive of these costs.
3. Mileage associated with routes that are not the most direct route between locations. Exceptions may apply.
4. Costs associated with traffic violations, fines and/or citations.
5. Costs associated with damage to the vehicle or vehicle contents caused by accident, vandals, theft, or natural phenomenon.
6. Mileage reimbursement to/from campus satellites located within a 10-mile radius of the primary campus is not normally allowable except in special circumstances with prior approval or as allowed by union contract.

5. Approvals

The approval requirements mileage reimbursement is outlined in the Approvals section of this standard. See Section 1.08.

6. Exceptions

Exceptions can be requested per the guidelines outlined in the Exceptions section of this standard. See Section 1.08.

1. Introduction

This Section details allowable and non-allowable reimbursements associated with cell phone service and usage. Please refer to campus policies regarding how to properly procure a mobile device and/or cell service or UITS policies and procedures for information on the issuance of and governance associated with distribution and use of University cell phones and mobile devices.

2. Overall Guidelines

1. The University may issue an employee a cell phone or mobile device when there is a business need for the employee to use the cell phone or device frequently in the performance of their job. Valid business reasons for cell phones include but are not limited to:
   1. Employer’s need to contact the employee for work related emergencies.
   2. Employee job responsibilities including but not limited to providing emergency support, health and counseling services, emergency management, facilities management/maintenance, information technology, etc.
   3. Employer’s requirement that the employee be available to conduct employer’s business when away from the office.
   4. Employee’s job responsibilities require frequent business travel away from the University, specifically excluding travel between on-campus or inter-campus locations.
   5. Need to contact an employee after normal business hours on a consistent basis.
2. The University will provide the least expensive service plan that fulfills the employee’s approved business needs for University-issued cell phones and devices.
3. Per the University’s Information Technology Acquisition Policy (T08-086), all information technology services technology, including cell phones and related services, must be procured through the information technology departments.
4. Employees are strongly discouraged from using their own personal cell phones or devices for University Business. Employees who own their own cell phones and pay their own monthly plans may request an exception to submit specific University related costs for reimbursement.
5. If an employee is planning on traveling internationally with a University-issued cell phone or device, the employee must request that an international service plan be added to their University-issued cell phone/device. Such requests must be made at least three weeks prior to travel. In addition, Traveler must comply with Export Control requirements and campus and UITS guidelines.

3. Allowable Expenditures

Service charges associated with use of a personal cell phone by an employee who has not been issued a cell phone or mobile device by the University and is required to use their personal device for a University Business purpose, is allowable only when an exception is granted.

4. Non-Allowable Expenditures

1. Cell phones which are not procured through information technology departments.
2. Services charges associated with a personal cell phone of an employee who has been issued a cell phone or mobile device by the University.
3. Costs associated with service charges for family members and non-employees.
4. Costs associated with downloading and/or using non-approved fee-based services on a University-issued device; examples include but are not limited to custom ring tones, GPS programs, premium text services, mobile apps, etc.
5. Costs associated with cell phones, devices, and related services for devices for individuals that are no longer actively employed by the University.
6. Service costs not covered by the service plan for University-issued cell phones or mobile devices.
7. International charges on University-issued cell phone or devices when an international travel plan wasn’t requested and approved in advance of travel.

5. Approvals

The approval requirements for cell phone and mobile device use and reimbursement are outlined in the Approvals section of this standard. See Section 1.08.

6. Exceptions

Exceptions can be requested per the guidelines outlined in the Exceptions section of this standard. See Section 1.08.

7. Resources

• Amherst Cell Phone Guidelines
• Lowell Cell Phone Guidelines
• UMass Chan Cell Phone Guidelines

1. Introduction

This Section outlines the overall guidelines, allowable expenditures, and non-allowable expenditures related to travel.

2. Overall Guidelines

1. All Travel
   1. Travelers and Approvers are responsible for compliance with the Policy and these Standards.
   2. Travelers shall be reimbursed for all duly authorized, reasonable, and necessary travel expenses provided that the travel expenses are for valid University Business, comply with the Policy and this Standard, are a prudent and judicious use of University funds, are adequately documented, and are submitted in a timely manner.
   3. Prior approval/pre-travel authorization is required for the specific trip approved by the designated Approver prior to the start of the international and overnight travel. Noncompliance could result in non-reimbursement or termination of University issued bank card.
   4. Travelers are responsible for submitting a complete and accurate expense report of Travel Expenses as soon as possible, but within sixty (60) days of the completion of travel.
   5. Per IRS requirements, reimbursement requests submitted 120 days or more after the expense was incurred will be treated as taxable wages to the individual receiving the payment and subject to all applicable employee and employer payroll taxes. Reimbursement requests that are submitted after 120 days will still be accepted, however taxes will be withheld, and the expense report amount will be added to taxable gross income on the employee’s W-2.
   6. Companion, family and spousal travel reimbursed by the University in accordance with the Executive Compensation Package for University President and Campus Chancellors (T93-062) may be subject to taxation in accordance with IRS regulations.
   7. All employees must register domestic overnight and international travel with the University travel registry and should document their itinerary. Documentation of the travel registration must be included with all expense reimbursement submissions.
   8. The Traveler must use the most economical mode of transportation, accommodation and consumption of goods and services available consistent with the authorized purpose of the trip, that meets the scheduling needs of the Traveler, does not cause undue hardship on the Traveler, is safe, and meets the requirements of the Policy and this Standard. Exceptions may be granted if the Traveler has a valid reason and can substantiate the higher cost. The higher costs must be approved in advance.
   9. Travelers are encouraged to book airfares as far ahead of the departure date as possible but only when travel plans are firm.
   10. Travelers traveling on sponsored funds should always follow the most restrictive applicable policy (University policy or sponsor rules) to ensure compliance with the sponsored fund.
   11. Travelers are encouraged to utilize the University travel program website when possible to obtain lowest cost fares; access to airport, hotel and other travel related services; and to access travel support.
   12. Travelers are responsible for the accuracy of the submitted travel expense report and compliance with the Policy and these Standards. Expenses submitted for reimbursement identified as violating the Policy or these Standards will be denied and the Traveler and/or Approver will be held accountable.
   13. Requests for reimbursement must include required receipts, approval documentation, University travel registration documentation, accounts to be charged and other pertinent documentation. Incomplete travel expense reports will be rejected.
   14. Intentional falsifications of expense report documents and/or fraudulent submissions are grounds for immediate termination of employment and referral to law enforcement.
   15. The Traveler is responsible for ensuring reimbursement to the University for any duplicative or overpayments made to the Traveler (e.g., payments by other entities for travel expenses which the University also has reimbursed the Traveler). Reimbursements to the University should be made within 30 days of discovery via check made payable to the University.
   16. A Traveler who incurs expenses on a personal credit card (such as for airfare) will not be reimbursed until after the trip has occurred.
   17. Individuals responsible for compliance with this Standard are required to keep themselves current with the terms of the Policy and this Standard.
2. International Travel
   1. All international University Travel is subject to and must be in compliance with export control review, rules, and requirements.
   2. All international University Travel must receive risk-related review and approval prior to departure pursuant to campus procedures.
   3. Expense reports must be submitted in U.S. dollars with an explanation and translation of international receipts and the conversions.
   4. Travelers must use the currency rates that were in effect the date the expense was incurred.
   5. Currency receipts should be saved and used for conversion to U.S. dollars on the expense report.
   6. Use of the University’s bank card eliminates the need to calculate international currency conversions and usually reflects favorable exchange rates.
   7. The following online calculator may be used to convert international currencies: OANDA Currency Converter.
   8. When international travel is charged to federal grants, the University is required by 49 U.S.C. 40118, commonly known as the Fly America Act to use U.S. flag air carrier service as defined by the Federal Travel Regulation (FTR) 301.10.134 for all air travel funded by the U.S. Government, unless an allowable exception as defined by the Fly America Act, is met and documented by the Traveler. U.S. flag carriers are airlines owned by an American company. Please see the Resources section below for links to campus Fly America Act websites.

3. Allowable Expenditures

1. Air Travel
   1. Coach fare rate including seat selection that allows the Traveler to meet their business need.
   2. For non-stop direct flights exceeding three (3) hours, seat selection allowing for additional legroom will be reimbursed; this does not include business-class tickets unless an exception is granted and prior approval is received.
   3. The baggage fee for the first checked bag.
   4. The use of and retention of benefits from airline frequent flier programs is acceptable; however, Travelers should only select the airlines with their frequent flier benefits when the airfare on that particular airline is less than or equal to another available carrier.
   5. Flight cancellation penalties imposed because of University Business needs.
   6. Please see the non-allowable expenses section (1.06.e) for details on expenses related to air travel that are non-allowable and non-reimbursable.
2. Ground Transportation
   1. Travelers shall choose the method of ground transportation that is most economical but meets business needs. In general, shared vans and rideshares services are more economical than taxis, and town cars or limousines are often the most expensive. Discretionary tips up to 15 percent of the cost are allowed.
   2. Parking: Travel-related airport, hotel and public parking expenses are allowable.
   3. Tolls: Road toll expenses incurred for business travel purposes are allowable.
   4. Personal Vehicles: Personal vehicle mileage incurred for University business purposes will be reimbursed at the prevailing IRS rate. Please see standards on mileage for guidance on mileage calculation in Section 1.04.
   5. Rental Cars: Automobiles should be rented only when public transportation, taxis or other rideshare services are impractical, more expensive, or not available.
      • Rental cost of up to a mid-size car is allowable. A larger car is allowed if dictated by specific business reasons and must be properly documented.
      • Gas expenses for the rental car will be reimbursed.
      • Automobile Insurance for Rental Vehicles: The University maintains an automobile insurance policy which provides domestic coverage for liability and physical damage for hired and non-owned rental vehicles on a short-term basis (rentals under six months) related to University Business.
      • The coverage under the insurance policy will serve as primary coverage for short- term rental vehicles used by University employees, for University Business purposes only. Additional rental car insurance is not necessary and is not reimbursable.
      • Any physical damage to the rental vehicle will be subject to the insurance policy’s comprehensive deductible and collision deductible. Any “loss” will be adjusted on an actual cash value basis or the cost to repair or replace the rental vehicle to the condition it was in prior to the loss, whichever is less.
      • For the University insurance policy to apply, the vehicle must be rented in the name of the University whenever possible. A copy of the University’s Certificate of Insurance for the insurance policy, evidencing the University’s hired and non-owned coverage (including physical damage coverage), should be provided to the rental company at time of rental. A Certificate of Insurance can also be requested via the University Treasury website.
      • Additional Protections Provided under University Bank Card: When using a University-issued bank card to rent a car, the bank card provides coverage for damage to and theft of the rental for up to a 31-day rental period. When using a University-issued bank card, the vehicle should still be rented in the name of the University, and a copy of the University’s Certificate of Insurance for the insurance policy should be provided to the rental company.
   6. Please see the non-allowable expenses section (1.06.e) for details on expenses related to ground transportation that are non-allowable and non-reimbursable.
3. Lodging
   1. Lodging for overnight out of state or international travel.
   2. Lodging for in-state overnight lodging is allowable, however prior approval is required at Umass Chan in accordance with the Additional Approval Matrix (2.02).
   3. Travelers are expected to use the most economical lodging that is safe, well located for the business purposes of their travel and meets reasonable standards of cleanliness and comfort.
   4. Travelers may stay in rental accommodations (e.g., VRBO or Airbnb) if the total cost is equal to or less than a hotel/motel for a standard, single occupancy room. If Travelers choose to stay in a rental accommodation, they must provide documentation of the rental accommodation’s cost comparison.
   5. Charges from failure to cancel a guaranteed room reservation when such charges are driven by changes to the University’s business needs.
   6. Please see the non-allowable expenses section (1.06.e) for details on expenses related to lodging that are non-allowable and non-reimbursable.
4. Meals and Incidentals
   1. The US General Services Administration (GSA) sets domestic travel per diem rates for meals and incidental expenses based on geographical area.
   2. The US Department of State (DoS) sets international per diem rates based on geographic area and dates of travel.
   3. The University strongly encourages Travelers to use the GSA per diems for meals and incidentals for domestic travel and the DoS per diem rates for international travel. However, Travelers may choose to submit either the federal per diem amounts or actual incurred expenses up to the federal per diem amount.
      • The same method of reimbursement (federal per diem rates or actuals up to the federal per diem rate) must be used for the entire trip; Travelers may not request reimbursement of actual expenses for one portion of a trip and per diem for the remainder.
   4. The first and last calendar day of travel will be reimbursed at 75% of the respective per diem rate as noted in the federal per diem schedule. If a meal is provided on the first or last day of travel, the 75% per diem rate is calculated first, and the full per diem amount for the meal provided is then subtracted from the 75% per diem rate.
   5. Day trips of less than twelve (12) hours of travel time do not qualify for per diem rate reimbursement.
   6. First and last days of travel are always 75% of the destination meals per diem rate. No clock times are used to determine travel date meals.
   7. For partial day per diem, when travel is less than 24 hours but at least 12 consecutive hours, 75% of the full day GSA rate may be paid. A partial per diem with no overnight stay is taxable reimbursement to the employee.
   8. Please see the non-allowable expenses section (1.06.e) for details on expenses related to meals that are non-allowable and non-reimbursable.
5. Miscellaneous Expenses
   1. Reasonable laundry and dry-cleaning expenses will be reimbursed for business trips of seven or more consecutive days.
   2. The cost of travel visas, passport, passport photos and other fees associated with international travel when the cost is driven by the University’s business needs are allowable.
   3. Travelers will be reimbursed for domestic and international internet access charges incurred while traveling for the purpose of conducting University Business.
   4. Please see the non-allowable expenses section (1.06.e) of these Standards for details on expenses related to miscellaneous expenses that are non-allowable and non-reimbursable.

4. Non-Allowable Expenditures

1. Air Travel
   1. Airfare cancellation penalties imposed because of personal reasons are not allowable unless an exception is granted.
   2. Fees for additional bags or oversized/overweight bags are not allowable unless there is a valid, documented business purpose.
   3. Airline ancillary fees, such as early check-in, or excess baggage charges not required for the completion of University Travel are not allowable.
   4. Reimbursements for air travel purchased with frequent flier miles.
   5. Any costs in excess of the coach fare or costs for non-allowable airfare related expenses must be segregated and removed on the Traveler’s expense report.
   6. Airfare insurance purchased with flight.
2. Lodging
   1. Charges from failure to cancel a guaranteed room reservation are not allowable unless such charges are driven by changes to the University’s business needs or an exception is granted.
   2. Lodging for in-state travel for Umass Chan unless an exception is granted.
3. Meals and Incidentals
   1. Meals that are provided to a Traveler (such as meals at conferences). The full federal per diem rate allowance will not be granted to Travelers that are provided such meals during their travel. In these instances, the Traveler shall submit the individual per diem meal allowance only for the meals not provided.
   2. Tips for bellhops, baggage handlers, hotel cleaning staff when the Traveler receives the federal per diem rates as such incidental expenses are included in the rate calculation.
4. Rental Cars
   1. Prepaid fuel.
   2. Prepaid tolls.
   3. Any other optional costs not identified in the Allowable Expenditures subsection.
5. Miscellaneous Expenses
   1. Late fees or items of a personal nature incurred while travelling are not allowable.
   2. Expense reimbursement for spouses unless an exception is granted with prior approval for the following purposes. There are tax implications for spousal travel reimbursement. Even with approval, spousal travel must be included as income of the requestor:
      • Allowed in the Executive Compensation Package for University President and Campus Chancellors (T93-062) (when approved).
      • Part of an institutional event.
      • For the purpose of recruitment.

5. Approvals

The approval requirements for travel and Travel Expenses are outlined in the Approvals section of this standard (1.08).

6. Exceptions

Exceptions can be requested per the guidelines outlined in the Exceptions section of this standard (1.08).

7. Resources

1. Amherst
   • Fly America Act Exception Form
   • Fly America Act and Open Skies Agreement
   • Fly America Decision Tree
2. Dartmouth
   • Fly America Act Waiver Checklist
3. Lowell
   • Travel Registry Information
4. UMass Chan
   • Travel Registry Information

1. Introduction

This Section outlines the overall guidelines, allowable expenditures, and non-allowable expenditures related to contributions, gift cards, gifts, and recognition of employees.

2. Overall Guidelines

1. Gifts or awards of value should be infrequent, reasonable, and modest in nature, may not be provided as personal gratitude or in lieu of compensation, and must conform to the Internal Revenue Service (IRS) regulations and state ethics limitations.
2. Taxable Income for Gifts and Gift Cards Provided to Employees.
   1. The value of non-cash gifts provided to employees which exceed the $100 de minimus limit is taxable, with the exception of length of service or retirement gifts, which are taxable when they exceed $400.
   2. If the cost or value of a non-cash gift provided to an employee for retirement or length of service exceeds $400, the gift is reportable as taxable compensation to the employee.
   3. Gift Cards:
      • All Gift Cards, regardless of value, are considered cash or a cash equivalent gift or award and will be reported as taxable compensation to the employee, subject to appropriate federal, state and employment tax withholding, and must be included in the employee’s year end Form W-2, Wage and Tax Statement.
   4. Raffle and Door Prizes:
      • Non-cash raffle or door prizes provided to employees are not reportable as taxable compensation unless the de minimus limit of $100 is exceeded.
      • Cash or Gift Card raffle and door prizes are reportable as taxable compensation to the employee, subject to appropriate federal, state and employment tax withholding, and must be included in the employee’s year end Form W-2, Wage and Tax Statement.
3. Taxable Income for Gifts/Awards Provided to Non-Employees
   1. Gift Cards presented to non-employees (including students who are not University employees) will be taxable and included as reportable income to the recipient (on form 1099-MISC) only if the recipient receives $600 or more from the University in a calendar year.
   2. The University will track payments and distributions to such individuals and is required to report payments of $600 or more to US Residents on Form 1099 and to Foreign Nationals on Form 1042S. The $600 threshold can consist of smaller individual payments in the aggregate and include cash, checks, and gift cards from multiple University departments and funding sources.
4. Gifts/Awards to Volunteers
   1. Gifts may be provided as a thank you to nonemployees volunteering time for a University initiative; however, Gifts may not be given in lieu of payment for services or as quid pro quo.
5. Recordkeeping and Accountability for Gift Cards
   1. Proper safeguarding of Gift Cards is required at all times. At a minimum, the following steps should be in place:
      • The department issuing gift certificates/cards must keep a record of all gift certificates and Gift Cards issued.
      • A single individual must be designated as custodian of the Gift Cards.
      • Gift certificates and Gift Cards must be secured in a locked drawer, cabinet or room and be accessible to only the designated custodian.
      • Issuances of gift certificates and Gift Cards should be documented in a log (spreadsheet), by individually collected receipts or other documentation such as email or online confirmation, including the date of issuance, purpose, certificate/card amount and signature of recipient.
      • Campus-specific procedures for obtaining Gift Cards must be followed.
6. Conflict of Interest
   1. As public employees, UMass employees must adhere to state conflict of interest laws pertaining to receiving and providing gifts (MGL c. 268A).
7. Maximum Allowance for Gifts/Awards
   1. Non-Retirement, Non-Length of Service Gifts/Awards: the maximum allowance for Gifts and awards not related to retirement is $100. Exceptions may be allowed but require prior approval.
   2. Length of Services and Retirement Gifts: the maximum allowance for retirement gifts is $400 (for tangible items, cash equivalent items and gift cards).
8. All prizes and awards which are given to students for educational expenses and/or are educational in nature (laptops, lab supplies, textbooks, etc.), are considered a scholarship, and require financial aid reporting. Refer to campus Financial Aid Offices.

3. Allowable Expenditures

1. Employee Recognition Awards
   1. Employee recognition awards may be provided within an established recognition program and may not exceed the maximum allowable cost unless an exception is provided. Please note: Gift Cards are not allowed as employee recognition awards.
   2. Campuses have the discretion to delegate authority to departments to recognize an employee for outstanding work-related accomplishments. Awards must be presented to employees based on objective criteria as part of a ceremonial event held at the departmental level.
2. Employee Length of Service Awards
   1. Employee length of service awards may be provided within an established recognition program.
3. Employee Retirement
   1. A noncash Gift of University merchandise may be presented to an employee upon retirement from the University. The item must be commensurate with the nature and value of the employee’s contribution to the University.
   2. Campuses have the discretion to allow Gift Cards as a retirement gift.
4. Sympathy/Memorial/Extended Illness
   1. Only Gifts of tangible personal property, such as flowers, may be presented on behalf of the University as an expression of sympathy in the event of the death or major illness of an employee or a member of the employee's immediate family (spouse, child, parent, or sibling of the employee).
   2. Campuses have the discretion to not allow issuance of Gifts for sympathy, memorials, or extended illness.
5. Door and Raffle Prizes
   1. Occasionally, departments may hold raffles for door prizes and other Gifts to entice employee or student participation in an event.
   2. If conducting a random drawing and the recipient is not pre-determined, the prize (campus sweatshirt, gift card, etc.) may be given directly to the winners.
6. Human Subject Research Study Participants
   1. The University may provide Gift Cards to individuals who participate in research or studies as human subjects. Human subject compensation must adhere to Institutional Review Board’s policies and procedures.
   2. Gift Cards may be issued to employees when they serve as human subjects provided the service is not related to their employment. When Gift Cards are provided under these circumstances, the above section (106.3.c) on Taxable Income for Gifts/Awards Provided to Non-Employees applies.

4. Non-Allowable Expenditures

1. Campuses have the discretion to not allow issuance of Gift Cards for any purpose.
2. Gifts, awards, and Gift Cards may not be issued in lieu of employee or nonemployee compensation.
3. Gifts associated with employee birthdays, weddings, baby showers, anniversaries, or other occasions of a personal nature are not allowed.
4. Contributions by the University to any individual or organization directly or indirectly associated with a political party, campaign, candidate, or group engaged in an attempt to influence legislation, elections, referenda, or similar activities, are not allowed.
5. Contributions made to organizations as an expression of sympathy in lieu of a tangible gift such as flowers. However, this does not preclude employees from making personal contributions and/or gathering personal employee contributions to such organizations as an expression of sympathy.
6. Gift Cards may not be issued for vendor payments. Expenditures in excess of limits are not allowed unless an exception is provided.
7. Some exceptions may be granted for non-allowable expenses but require prior approval.

5. Approvals

The approval requirements for Contributions, Gifts, and Awards are outlined in the Approvals section of this standard. See Section 1.08.

6. Exceptions

Exceptions can be requested per the guidelines outlined in the Exceptions section of this standard. See Section 1.08.

7. Limits by Gift Type

8. Resources

UMass Chan Medical School Gift Card Policy (for UMass Chan employees only).

1. Introduction

This Section details prior approvals, additional approvals, and documentation required for expense reimbursement. In addition, this Section identifies approvals needed for requesting an exception for a non-allowable expense.

2. Prior Approval and Exceptions

1. Prior Approval: Certain expenditures require prior approval to be reimbursed. Expenditures requiring prior approval are noted in the respective section of the Standards, as well as in the Additional Approval Matrix (2.02) detailed below. The Additional Approval Matrix (2.02) details which expenditures require prior approval and who may grant prior approval. Documentation of prior approval is required when submitting reimbursement of expenses for all expenditures that require prior approval.
2. Exceptions: Where noted in the Standards, exceptions for a non-allowable expense may be allowed. Exceptions generally require prior approval. Please see the Additional Approval Matrix, attached hereto as Section 2.02 of the Appendix.

3. Approvals for Reimbursement of Allowable Expenses

1. All allowable expenses reimbursements must be approved by the employee’s supervisor.
2. All requests for expense reimbursement require the following signatures:
   1. Employee submitting the expense reimbursement request.
   2. Employee’s supervisor as the Approver.
   3. Principal Investigator and/or individual with spending approval authority whenever grants are the funding source.

4. Documentation Required

1. Employees are required to complete an expense report to be reimbursed for travel and business expenses.
2. The following documentation is required and must be part of or accompany all reimbursement requests for business and Travel Expenses. Certain expenses require additional documentation; please see Table 1: Additional Documentation Requirements for Certain Business and Travel Expenses (2.01) below for details on these additional documentation requirements.
   1. Statement of business purpose for incurring the expense.
   2. Date of expenditure.
   3. Description of expenditure, including clarification for any unusual expenditures.
   4. Account numbers
   5. Appropriate signatures:
      • Employee
      • Supervisor
      • Any additional signatures required in accordance with the additional approval matrix.
   6. Receipts for all expenditures are required, except for travel-related purchases under $25 (parking, tolls, taxi, travel agency service fees, etc.).
      • To be considered valid, the receipt must show:
        • The name of the company providing the goods/services.
        • Date(s) when the specific expenses were incurred.
        • Unit price of goods/service
          • Restaurant receipts must itemize food/beverage consumed, tip and tax.
          • Goods/services purchased should include detail on the items consumed.
        • Total amount due and acknowledgement that amount due was paid.
          • If a receipt does not indicate full payment was made, one of the following proofs of payment is required.
          • Canceled check(s)
          • Credit card or bank statements showing the transaction(s).
        • Generic or hand-written receipts should be supported by a canceled check/credit card or bank statement.
      • Sponsored grants may require receipts for all expenses, regardless of the value of the expense.
      • Receipts vary in appearance and type of information provided. If relevant information is not included on a receipt, the employee should write that information on it.
      • Third-party billing companies such as PayPal generally do not include detailed information about the item(s) purchased. In such cases, the employee should provide a copy of the webpage that identifies the items purchased, as well as the web receipt from the third-party billing company.
      • In the event of a lost receipt and after all reasonable attempts to obtain a duplicate receipt have been exhausted, a Missing Receipt Form may be filed with the expense report. A missing receipt for an expense that is less than $25.00 does not require a Missing Receipt Form. Sponsored grants may be more restrictive.

5. Exceptions

Exceptions can be granted by the Dean, Provost, VC A&F or equivalent, or designee in accordance with the Additional Approval Matrix.

1. All requests for expense reimbursement require the following approvals:
   1. Employee’s supervisor
   2. Principal Investigator and/or individual with spending approval authority whenever grants are the funding source.
   3. Expenses that are noted as requiring additional and/or prior approval must be in accordance with the following Additional Approval Matrix.
2. Access your campus Additional Approval Matrix at the following links:
   1. Amherst
   2. Boston
   3. Chan
   4. Dartmouth
   5. Lowell
   6. President's Office