Doc. T92-031, Appendix C, as amended
Passed by the Board of Trustees on June 3, 1992
Latest revision: December 15, 2021

I. Purpose

Stewardship, transparency and integrity of funds entrusted to the University by various constituencies is vital. Therefore, this policy has been developed to clarify the requirements for Business Expenses made on behalf of the University and Travel Expenses related to University travel. The Policy outlines provisions and requirements for fiscal compliance with federal and state law, Internal Revenue Service (IRS) guidance regarding expense reimbursements under an “accountable plan” made pursuant to IRS Publication 463 “Travel, Entertainment, Gift and Car Expenses”, and funding agencies’ grant and contractual terms and conditions. In addition, this policy establishes guidelines for economical travel on University business while maintaining the necessary controls, accountability and compliance with applicable federal and state laws, and administrative efficiency.

II. Introduction

The Business and Travel Expense Policy applies to Business Expenses and Travel Expenses incurred by a Duly Authorized University of Massachusetts employee, student, Trustee, Special State Employee, per MGL c. 268A, or associate who incurs Travel Expenses in the process of conducting University Business irrespective of the method of payment and source of funds. Specific criteria defining Business Expenses and Travel Expenses in the related Presidential Administrative Standards “Standards” issued by the President of the University.

III. Definitions

Approver: University employee, often a manager or supervisor, who is Duly Authorized to approve business or travel expenses for employees within their line of supervision or area of management responsibility.

Business Expense: Costs incurred by a duly authorized University of Massachusetts employee, student, Trustee, Special State Employee, per MGL c. 268A, or associate in the process of conducting University Business, or necessary and within their scope of employment, irrespective of the method of payment and source of funds.

Duly Authorized: Approved by or with the authorization of supervisor or appointing authority per Policy, Standard and campus procedures.

Travel Expense: business expenses incurred by Traveler on University Travel.

Traveler: Duly Authorized employees, Trustees and non-employees (including without limitation speakers, lecturers, students, visiting professors, candidates for University employment, guests etc.) whose travel expenses for University Travel will be paid for or reimbursed by the University regardless of source of funds.

University Business: Any activity, practice, commerce, trade, service, research, education, etc. in furtherance of the University’s mission and functions.

University Travel: See University Travel Policy for definition.

IV. Policy Statement

  1. Business and travel expenditures must be necessary business or travel expenses of the organization, be directly related to the University’s goals and mission, and be an allowable charge to the funding source or sponsor.
  2. Business expenses and travel expenses must have a clear and documented business purpose.
  3. Business expenses and travel expenses must be reasonable, allowable, and allocable under governing laws, regulations, and University policy.
  4. Duly Authorized University of Massachusetts employee, student, Trustee, Special State Employee, per MGL c. 268A, or associate who incurs business expenses and travel expenses in the process of conducting University business may be reimbursed for all reasonable and necessary expenses in accordance with this policy, and the Standards established by the President of the University.
  5. Duly Authorized University of Massachusetts employees, students, Trustees, Special State Employee, per MGL c. 268A, or associates incurring expenses using University funds have an obligation to act in compliance with, applicable University Board Policies, laws, regulations and rules.
  6. All expenses must be fully documented in compliance with IRS or regulatory requirements. Reimbursement for business and travel expenses under this policy is designed to comply with the accountable plan rules of the Internal Revenue Service (IRS) as contained in Publication 463 “Travel, Entertainment, Gift and Car Expenses”. Compliance with the accountable plan rules permits the University to provide reimbursement for University related business and travel expenses on a non¬taxable basis.
  7. Individuals may be held personally liable for a transaction that is made in violation of policies, laws and regulations including the areas of contracts, grants and donor restricted funds. Employees violating this policy may be subject to disciplinary action, up to and including termination.
  8. Business and travel expenses must be Duly Authorized to qualify for reimbursement. Delegation of approval authority should not create a situation where an employee is approving the expenses of their supervisor or another employee of equal or higher position.
  9. Travelers and Approvers are responsible for validating that all business and travel expenses meet the following conditions: (1) compliance with University policy and standards; (2) expenses have a clear and documented business purpose and are a reasonable and judicious use of University funds; (3) expenses are documented, submitted, and accounted for in a timely manner in accordance with applicable Presidential Standards.
  10. Business and travel expenses that are not directly for university business or university travel related transactions will not be reimbursed. Personal expenses of any type or late fees will not be reimbursed.
  11. In circumstances where identical business or travel expenses have been paid both by the University (via university bank card, reimbursement, etc.) and a third party, the Traveler will ensure that the duplicate reimbursement is returned to the University within a reasonable timeframe as defined in the standards.
  12. Business and travel expenses for non-university employees, such as consultants, speakers, lecturers, visiting professors, candidates for positions, and students are reimbursed in accordance with this policy; per MGL c.268A, such non-university employees may be considered as special state employees. Reimbursements which exceed the provisions established for employees shall require the advanced authorization of the Vice President or Vice Chancellor for Administration and Finance.
  13. Prior approval is required for all overnight, out-of-state, and international travel. Campuses have the discretion to require their employees to obtain prior approval for in-state travel. The President will receive travel approval from the Board Chair, and the Chancellors will receive travel approval from the President.
  14. Prior to travel, all employees must register domestic overnight and international travel in the University Travel Registry and should document their itinerary. Fully documented travel plans allow the University to provide insurance and other coverage as appropriate. International travel requires prior review and approval for compliance with Export Control and Sanctions & Embargoes.
  15. All international University-related travel must receive risk-related review and approval prior to departure.
  16. To minimize travel costs and expenses, for both domestic and international travel, the University encourages the use of the University Travel Program, through which contracted vendors provide travel booking services. The Program should be used for booking travel, including transportation to/from airport, hotel reservations and other travel related amenities; and to provide travel support.
  17. Travelers traveling on University-related travel are expected to choose the most economical mode of transportation that meets the Traveler’s scheduling and business needs and University policy, regardless of funding source.
  18. Travelers traveling on sponsored funds, including but not limited to federal grants, should follow the most restrictive applicable policy (University policy or sponsor rules).

V. Standards

The President, in consultation with the Senior Vice President for Administration and Finance, Chancellors and Vice Chancellors for Administration & Finance, will issue administrative standards to implement this policy. The administrative standards will provide ability for campuses to define campus-specific exceptions within the standards with the approval of the Chancellors and the President.