Travel Expense, Credit Card, and Expense Reimbursement Policy & Procedures

�� recognizes the importance of good stewardship of its resources, and the need for compliance with applicable federal and state laws, including IRS tax regulations. In the regular course of business, College employees may incur expenses on behalf of the College. This policy defines what an allowable expense is for business purposes and provides guidance in regards to travel-related expenses, when an expense may become a taxable fringe benefit to the employee, reimbursement of expenses, policies surrounding the use of the College’s MasterCard Program, and employee responsibilities. The purpose of this policy, and its associated procedures, is to establish guidelines that provide employees with a reasonable level of flexibility, and provide the College with the mechanism to track, monitor, and control expenditures.

II. APPLICABILITY.

This policy applies to all College employees and anyone who uses personal funds to pay for College-related expenses and wishes to be reimbursed. This policy also applies to purchases made with �� credit cards and virtual cards. Departmental procedures, restricted sponsored funds or other funding sources may impose additional restrictions; however, they cannot supersede those required in this policy. All employees are responsible for reviewing and complying with this policy. This policy should be used as the first source of information for any business expense by employees.

III. DEFINITIONS.

Approvers - Individuals designated to approve expense forms or reports submitted to the Business Office by their assigned employees.

Budget Managers - Individuals who have been delegated the management of expenditures by their Department or Division Head(s). The Budget Manager ensures the information contained on the expense report and supporting documentation is accurate and accords with College policy.

Business Travel – means (a) overnight stays at one or more locations; (b) travel to and from seminars, conferences, or meetings of professional organizations where registration or attendance is authorized or paid by the College; or (c) travel for official College business.

Department or Division Head(s) - Individuals who are responsible for managing expenditures for their department or division. In some instances, the appropriate Department or Division Head is different from the employee's supervisor.

Online Expense Management System (“OEMS”) - The College’s online system for (1) reconciling, managing, and documenting the business purpose and account code for all charges made on a College-issued card and (2) submitting employee expense reimbursements. All credit card transactions are logged in an expense report in the system, which must be submitted monthly by the cardholder and routed to the appropriate approvers. The OEMS is also referred to as Chrome River.

Receipt – a document that includes information about a purchase, including cost, and provides proof of payment by indicating that the payment was made in cash, by check, or by credit card (including the last four digits of the credit card).

Substantiation –means the written documents that support an incurred business expense. These include the original Receipt, notation of business purpose, names of persons in attendance and their relationship to the College (when applicable), and an approved expense report for the incurred cost. Additional information such as a brochure, a flyer, itinerary or an email can be helpful in explaining the nature of the expenditure.

Traveler(s) – means all College employees (including administrators, faculty, and staff) and any other individuals who incur expenses that are authorized by the College, such as students, trustees, consultants, volunteers, or prospective employees.

IV. POLICY.

A. General Expense Guidelines

1. Criteria for Determining an Allowable Expense

To be paid directly by the College or reimbursed to an individual, an expense must be allowable. An expense is allowable if it is necessary, reasonable, and appropriate:

Necessary:

An expense is necessaryif there is a valid and justifiable purpose required to fulfill the mission of the College. The primary beneficiary of a necessary expense is the College, and not the individual. A necessary expense is a minimum purchase or service required to achieve a valid and justifiable objective.

Reasonable:

means the amount that normally would be spent in a specific situation. An expense is considered reasonable if it is not extreme, excessive, lavish, or extravagant, and reflects a prudent decision and action to incur the expense. This policy does not define precise dollar amounts for what constitutes reasonable, because the reasonableness of an expense depends upon many relevant factors including the business purpose, location, the context, the source of funds, and the circumstances surrounding the expenditure.

Appropriate:

Costs are appropriate if they are suitable or fitting for a particular business purpose. For a cost to be appropriate, it must have a valid business purpose, which is normally the responsibility of the department or program to determine. The following questions should be considered when determining the appropriateness of costs:

Could the cost be comfortably defended under public scrutiny?
Would you be confident if the cost was selected for an audit?
Would you be comfortable reading about it in the newspaper?
Would you be comfortable explaining to a donor that their donation was used this way?
Has it been adequately documented?

Any use of College funds by an employee for personal reasons is improper and may be considered serious misconduct. The deliberate and willful falsification of expense records or participation in any fraudulent or deceptive action will subject the employee to termination of employment and/or appropriate legal action. Further, any negligence or other serious misconduct by Approvers may result in similar disciplinary action.

a. Additional Requirements for Sponsored Funds

For sponsored funds, a cost is if it is permitted as a cost within general federal regulations, the terms of a specific award, and/or the institution's indirect cost rates.

Federal Regulations (2 CFR 200.415) require the institution to sign the following certification on financial reports and requests for payment.

“By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812)."

Once an expense of sponsored funds has met the necessary, reasonable, appropriate, and allowability criteria, for sponsored funds, it must also be evaluated for allocability.

A cost is to a particular award if the goods or services involved can be directly charged to the award based on the benefit provided or advance to the work. Costs may be allocable to multiple projects and will be allocated appropriately across all projects that benefit. To determine if a cost is allocable, ask the following questions:

Does it benefit the award and/or other funding sources?
Can it be distributed to all benefited funding sources using reasonable methods?
Does the basis for allocating the cost represent a reasonable estimation of the benefit provided to the award objectives?

2. Substantiation and Receipts

In all cases, you must complete an expense report using OEMS and attach the appropriate Substantiation. Please ensure the report includes the correct FOAPAL to be charged. Please also note that the expense must be charged to the fiscal year in which it was incurred. The College’s fiscal year runs from July 1 through June 30. As an example, expenses incurred on or prior to June 30th must be charged to that fiscal year. Expenses cannot be held for the next fiscal year, even if your budget or other account is overspent in the current year.

For each expense, you will need a Receipt. If your Receipt does not indicate how you paid the expense, you must also provide additional documentation to show proof of payment (such as canceled check, copy of your credit card statement, cash receipt from vendor). If you are submitting your credit card statement as proof of purchase, please redact your account number and any unrelated transactions. Do not redact your name.

If you did not pay for the expense then you will not be reimbursed for it. Incentives such as frequent flyer miles, vouchers, coupons, gift cards and other non-cash payments do not count as reimbursable expenses and will not be accepted as proof of payment because these are not “out of pocket” expenses. Items such as gift cards or gift certificates will not be accepted as proof of payment even if you purchased the gift card or certificate using personal funds.

Certain expense classifications may be subject to specific federal, regulatory or grant requirements. The Business Office may require additional Substantiation in accordance with applicable requirements when necessary. Specific Substantiation requirements are described in the remainder of this policy.

On the rare occasion that a receipt is unavailable and the expense exceeds $40.00, a Missing Receipt Declaration form must be attached with approvals. There must be a Missing Receipt Declaration for each missing receipt that exceeds $40.00. If the expense is less than $40.00 and a receipt has been lost/not provided, you will not need to submit a Missing Receipt Declaration form.

Expenses must be documented in accordance with the IRS Accountable Plan Rules, Publication For expense reimbursement requests, please ensure that the expense report and substantiation is submitted within sixty (60) days after the expense was incurred to ensure that your expense reimbursement is not returned or deemed taxable W-2 income.

3. Unallowable Expenses

Unallowable expenses are (i) those that do not support College business, (ii) in excess of what is normally considered reasonable (“ordinary and necessary”), (iii) personal in nature, even if the goods or services were purchased to support College business or (iv) are otherwise unallowable. Unallowable expenses include, but are not limited to:

Repair or gas for a privately-owned vehicle;
First-class or business-class travel, priority check-in, travel insurance, seat upgrades or additional legroom fees without pre-approval from a Vice President or the President;
Car rental insurance coverage for travel in the US. (International rental insurance is reimbursable and should be purchased);
Travel using a limousine, private car service or premium ride share service;
Membership in airline/travel clubs;
Any service to the College. Service should be obtained following the policies and procedures on the Business Office Contracts webpage;
Political or charitable contributions of any type;
Sponsorship of external teams or other external organizations;
Parking or traffic citations;
Gift Cards and Gift Certificates, unless given to human subjects for research pre-approved by the HSRRC-IRB;
Office furniture (lamp, desk, bookshelf, chairs, cabinet, etc.). All furniture must be requested through a work order to Facilities;
Technology (e.g. computers, printers, software, hardware, etc.). All technology needs must be requested using an ITS HelpDesk Ticket by sending an email to helpdesk@oxy.edu;
Childcare, elder care, or dog care;
Personal entertainment (e.g., in-flight movies, in-room movies, mini bar charges, spa services, massage, beauty salon, facials, etc.);
Personal items, such as toiletries, sunglasses, watches, or phones;
Ticket changes or "no shows" on guaranteed reservations not canceled in a timely fashion due to traveler negligence;
Replacement of lost cash or personal items stolen during travel;
Due to the College’s liquor license, alcohol purchased for consumption on College premises is unallowable unless it is purchased through Campus Dining; and
Expenses that are not directly related to and required for official College business, but were incurred for the personal benefit of or convenience of the business traveler.

The College’s Business Office will reject the above-mentioned items. All expenses that violate this policy will be flagged in the OEMS. If a policy violation is deemed to be a personal expense and the expense report is returned to the employee, the employee will be required to fix the account coding associated with the expense in question and reimburse the College. Please contact accountspayable@oxy.edu if you have any questions.

4. Tax Requirements

The policies of the College are intended to follow applicable federal and state laws, including IRS tax regulations. Whenever there is a conflict between policy and law, the most current law shall supersede policy.

�� will not “gross up” any payments made to employees, students, non-employees, and non-US citizens to cover taxes unless an exception is authorized by the Chief Operating Officer.

Online and out of state transactions subject to California sales tax that were not charged tax at the time of purchase will be charged California use tax by the Business Office. Any applicable use tax must be indicated on the expense report with the receipt attached. The rate charged will be the current retail sales tax rate for the City of Los Angeles, which is the location where it is assumed the goods will be used.

5. Reimbursements

Employees are expected to submit expense reimbursements within sixty (60) calendar days after incurring any expenditure. Employees will need to use OEMS (Chrome River). Paper forms will not be accepted.

6. Approvals

The name of the submitting employee must appear on the expense report. All business expenses must be approved as follows:

By the Supervisor– Supervisor ensures the expense is in support of the College’s mission. Supervisors may not delegate their role as approver unless pre-approved by the Business Office. Supervisors must confirm that expenses:
1. Meet the IRS definition of a business expense by answering: Who? What? Where? When? Why?; and
2. Were incurred while conducting College activities (any travel expense).
By the Budget Manager– Budget Managers for each department are assigned by Division VP and may not delegate their role to someone else. The Budget Manager ensures the information contained on the expense report and the Substantiation is accurate and accords with College policy, including confirming that:
1. Expenses are coded to the appropriate Banner Account number (Fund, Organization, Account, Activity Code-optional);
2. Budget is available; and
3. Substantiation matches and was submitted in accordance with this policy.
By the Sponsored Research Office (if applicable)– If the expense is charged to a grant, the Sponsored Research Office will review it for appropriateness.
By a Vice President (if applicable)– If the expense is flagged as a potential policy violation, the employee’s Vice President must approve.
By the Business Office– The Business Office conducts the final review and approval before any expenses are posted in Banner.

B. Travel, Meals, and Entertainment (including Alcohol) Guidelines

Travel, meals, and entertainment (TME) expenses are the most scrutinized by the IRS and the College’s external auditors because they are ripe for fraud or abuse from which employees may personally benefit. Thus, TME expenses are more restricted and are closely monitored by the College.

1. Travel

All travel must be pre-approved by a supervisor in advance. Employees are required to travel by the most economical and efficient method of transportation that is consistent with the business purpose of the trip.

Employees are expected to give business travel time the same consideration and respect as other aspects of their official duties. Employees who regularly travel on College business must apply for a College-issued card through the College’s MasterCard program (see Section IV.C for more information).

a. Booking Travel

When booking travel reservations online, precautions should be taken to ensure travel reservation sites are legitimate and provide a secure server environment before supplying credit card information. When booking travel online, employees should be sure that selected flights are the correct and desired flights before finalizing the reservation. The College will not reimburse employees for incorrect airline reservations or fees related to changing incorrect reservations.

The traveler should consider the following when booking travel arrangements:

Routine travel should always be arranged by College employees. An outside travel agency should only be used when travel arrangements are exceedingly complex, or significant savings can be realized.
All travel must use the most direct, practical, or commonly-traveled route. When an employee elects - for personal reasons - to use an alternate or indirect route, reimbursement will be limited to (i) the cost of travel by the most direct, commonly-traveled route or (ii) the lesser of the two amounts.
If a traveler incurs charges in excess of the most prudent cost, either by personal preference or for non-work-related reasons, the traveler must pay the difference.
The destination of the trip and the seat type purchased must be included in the Substantiation.

b. Air Travel: Fares

Air travel expenses are only allowed for coach travel, or the cheapest available airfare. Air travel should be booked within a reasonable timeframe to avoid higher fees. Travelers may retain frequent flyer miles earned while traveling on College business. However, travelers must book airfare based on the most cost-effective rate, irrespective of any frequent flyer mile benefit. Excess costs resulting from the use of a traveler’s preferred airline will not be reimbursed. IRS regulations require that the College reimburse only actual costs to the traveler; therefore, the use of frequent flyer miles for College purposes is not eligible for reimbursement.

c. Air Travel: Fees

The College will reimburse checked baggage fees for the first two pieces of luggage only and will not cover “overweight” baggage fees. Expenses for additional fees, such as priority check-in, seat upgrades, preferred seats, or economy plus seating, will not be allowed unless there is a business purpose and pre-approval by a Vice President or the President. Employees who wish to purchase unallowed upgrades (e.g., first-class airline tickets, seat upgrades, extra legroom, etc.) must purchase those using their personal credit cards after using their College-issued card to purchase the basic economy ticket.Additional legroom fees are allowed only for flight times in excess of five hours. WIFI costs are allowed in connection with travel when the employee must incur the expense to support a business purpose. Employees should exercise reasonable discretion in incurring WIFI and connectivity-related costs.

d. Air Travel: Getting to and From the Airport or Other Travel Hub

Travelers are expected to use fiscal responsibility when traveling to and from air or rail terminals. Taxis and Rideshare are common choices but travelers should also consider public transportation options and shuttle services. Limousines, private sedans or other premium car services are not allowed.

An employee who uses a personal vehicle to travel to/from the airport or other travel hub and wishes to be reimbursed for mileage will - pursuant to IRS guidelines - only be reimbursed for the difference between Base Mileage and the mileage to/from the airport.

e. Air Travel: Reimbursement

Personal reimbursement for airline travel will only be made after the trip is completed. This alleviates the risk that the employee could cancel the trip after they have been reimbursed but before the trip occurs. All airline charges must be supported by Substantiation.

f. Air Travel: Cancellation Fees, Unused Tickets and Flight Credits

If a reservation changes for reasons requested by the College or due to an emergency, any cancellation fee or the cost of the unused ticket will be the financial responsibility of the College. If a credit is issued for College-paid tickets, that credit will be retained by the College.

Cancellation fees due to personal or non-work-related reasons must be reimbursed to the College. If a credit is issued for personally-paid tickets, that credit will be retained by the employee.

g. Ground Transportation: Rental Vehicles

The use of a rental vehicle during travel must be justified as a business need and not a matter of personal convenience. All car rentals must be supported by a rental agreement. The type of vehicle rented should be the most economical for the number of travelers and the business purpose. When using a rental vehicle, travelers should refuel rented vehicles before returning the vehicle to the rental car agency to avoid excessive charges. The College’s credit card should be used to pay for gas for the rental vehicle.

The College has business accounts with Hertz, Enterprise, and National Car Rental companies where it receives preferential standardized rates. These should be the employee's first choice for obtaining rental vehicles. If Hertz, Enterprise, or National Car Rental does not have an appropriate car or location that serves the employee’s business purpose, or if it is materially more expensive than another rental car agency, only then should a different company be used.

Rental vehicles are covered under the College’s insurance policy; therefore, the traveler should decline Collision Damage Waiver insurance and Liability Damage Waiver insurance offered by rental car agencies. For travel outside the United States, auto liability and physical damage insurance should be purchased from the car rental agency.

h. Ground Transportation: College-Owned Vehicles

The College has several vehicles available for rent from Facilities Management for local College business. A Vehicle Request and Authorization Form is required for each vehicle and each trip. Any department, organization, or club may submit an advance reservation. Rental vehicles are assigned on a first-come, first-served basis. Specific vehicles cannot be reserved. The Transportation and Motor Pool Coordinator will confirm or deny the request based upon the availability of vehicles. For more information, please see the College’s Vehicle Rental Program.

i. Ground Transportation: Taxi & Rideshare

Travelers are expected to be fiscally responsible when traveling locally during business-related trips. Taxis and Rideshare are common choices but travelers should also consider public transportation options and shuttle services. Limousines, private sedans and other premium car services are not allowed.

j. Ground Transportation: Privately-Owned Vehicles

Should an employee decide to drive to the travel location in a privately-owned vehicle, the mileage reimbursement cannot exceed the cost of the least expensive means of alternate transportation (such as by bus, train, or airplane). Refer to the to determine the cost of a mileage reimbursement in conjunction with a standard mapping application such as Google Maps. Properly-approved business mileage is reimbursed based on the rate in effect at the time the vehicle was used.

An employee who uses a personal vehicle to travel to/from the work location and wishes to be reimbursed for mileage will - pursuant to IRS guidelines - only be reimbursed for the difference between Base Mileage and the mileage to/from the work location. This mileage allowance reimburses the employee for all operating expenses for the privately-owned vehicle (i.e., gas and repairs). Any variation from the most direct and practical route must be explained on the employee's expense report. The College's credit cards may not be used to refuel a personally-owned vehicle.

Parking, tolls, ferries, and other road fees will be reimbursed for College-related business, provided they are itemized with adequate Substantiation. Use of the College’s credit card is required when possible for these expenses.

College policy requires that each employee or authorized driver have a current valid driver’s license in good standing and personal automobile insurance equal to or above the minimum legally required coverage in the State of California. The owner of a personal vehicle being used for College business must carry adequate insurance for their protection and for the protection of any passengers.

The employee’s auto insurance policy is primary for any accident and the employee is responsible for their own auto insurance deductible. The College’s auto insurance policy will cover claims only after the employee’s insurance policy limits have been fully exhausted – no matter the purpose of the trip. If transporting passengers or students, employees should consider using College-owned vehicles to avoid claims under their personal auto insurance.

k. Personal Belongings During Travel

The College does not carry insurance to protect personal property (such as briefcases, books, clothing, etc.) transported in vehicles and auto theft insurance policies do not cover such items. The College recommends that the employee obtain homeowner’s or renter’s insurance to cover the loss of their personal belongings. While traveling, the traveler should secure all personal belongings.

l. Lodging

Business travelers should stay in comfortable hotels when overnight stays are necessary. However, lodging costs must not exceed $350 per night (not including taxes or fees). Any lodging costs that exceed this threshold must be approved by a Vice President and include additional detail in the Substantiation. Business travelers will be personally responsible for any hotel charges incurred as a result of not keeping reservations or not canceling them in a timely fashion. A cancellation number should be obtained from the hotel to avoid any misunderstanding or liability.

Allowable business lodging costs include: room charges, standard parking fees, business meals if charged to the room, gratuities, and taxes. Valet parking is not allowed unless it has been approved by a Vice President and additional detail is provided in the Substantiation. All lodging costs must be itemized on the expense report. Any personal expenses charged to a room must be reimbursed to the College. A College-issued credit card should always be used when reserving lodging.

m. Gratuities for Hosts

If you decide to stay with colleagues, family, or friends rather than in a hotel, a meal or gift in lieu of hotel costs is reimbursable. The gift or meal should be reasonable and not exceed the cost of acceptable accommodations. You must provide receipts for the expenses incurred. Cash payments, gift certificates, and gift cards are not allowed as gifts to hosts. The gift/meal must be purchased and presented to the host during the trip. Explanation of such items must be submitted with the Substantiation.

n. Other Allowable Business Travel Expenses

Laundry - Reasonable laundry and cleaning expenses are allowable business expenses for overnight stays exceeding five (5) consecutive nights, or in an emergency situation.
Other Travel Supplies - Supplies, postage, facsimiles, photocopies, and rental of required equipment while traveling will be allowed, provided appropriate business justification is given.
Tips - Tips for baggage handling, bellman service, etc. are required to be individually recorded on the expense report. Reasonable amounts for tips are reimbursable. If tips are paid in cash and no receipt is available, in this instance only, you do not have to provide a receipt.

o. Travel for Combined Business and Personal Purposes

When a business trip includes personal components, the College will only reimburse travel costs for travel directly-related to the business purpose. For example, if airfare is more expensive due to the employee’s choice to use another route, the employee Substantiation must include the reason for the deviation. The employee will only be reimbursed for the cost of a direct flight to the business destination, as if the employee had not taken a personal side trip.

p. Travel with Family Member(s)

Expenses (i.e. airfare, separate lodging, meals, etc.) incurred by family members who accompany College employees on out-of-town travel will not be reimbursed.

2. Meals

Anything that you consume (food or drinks) is classified as a meal.

a. Local/Business Meals

A local/business mealtakes place on campus or locally within the Southern California region. An allowable local/business meal is (1) taken with business colleagues, College guests, job applicants, professional colleagues, alumni, or donors, (2) during which College business is discussed, and (3) there is a valid business purpose for the meal. The primary beneficiary of the food expense should be the College and the most senior member of the faculty/staff attending the meal must pay for the meal. For Substantiation, the employee must provide (i) a detailed meal receipt showing the items that were purchased (not just the credit card receipt), (ii) the names of the individuals that consumed the food and/or drinks, and (iii) a description of the business purpose of the meal, including the business-related subjects that were discussed.

Occasional meals provided by the College (1) for employees working beyond their normal working day or (2) as a reward or morale booster also qualify as business meals. If the food is used as a reward or morale booster, these situations must be non-repetitivein nature and must be coded as employee activities. Meals (breakfast, lunch, and dinner) should not be provided at regular business meetings attended only by College employees unless there is a clear, specific, substantiated business purpose for the expense. Small refreshments for employee training or regular business meetings for employees are allowed so long as they are reasonable.

Examples of local meals that are not allowable, because they do not have an adequate business purpose, include:

A faculty member purchases a latte or coffee at a local coffee shop for personal consumption while grading papers;
A staff or faculty member purchases a snack or drink from The Tiger Cooler for personal consumption while on duty for work;
A staff or faculty member takes a student out for a meal or drink; or
A department purchases lunch for its employees at nearly every regular meeting.

In general, it is expected that Substantiation for local/business meals should include names of at least two individuals and a detailed business purpose explanation. A local meal for the benefit of a single employee is rarely an allowable expense.

b. Domestic Travel

For employees traveling on a domestic business trip, it is permissible for the employee to be the only individual listed for the business meal. However, a detailed description of the business purpose for the meal should be included, such as destination, the name of the conference attended, what the meal was for, etc. All employees must limit meal costs to $86 per person per day.The concept of reasonableness should apply to all food costs and tips. Tips should be reasonable to the level of service provided and must not exceed 20%.

c. International Per Diems

Per diem is a payment in lieu of reimbursement for actual meal expenses for travelers on College business. It is provided only for meals during travel outside of the United States. See U.S. Department of State Foreign Per Diem Rates for details. Per diems begin upon arrival at the foreign destination and end upon departure. Travelers do not need to submit receipts of their meals to obtain their per diems.

3. Entertainment

Per IRS Publication entertainment includes alcohol and activities such as tickets to sporting events, theaters, music, or other recreational activities. Entertainment costs, including those sponsored in connection with development and alumni events and/or meetings, must be directly related or associated with College business. It is important to document the identity of the person(s) or group being entertained to clearly establish that the cost is reasonable and show a link between who is entertained and a valid business purpose. Substantiation is required and must be approved by the employee’s supervisor on an expense report. Due to IRS regulations, entertainment expenses may be treated as a taxable fringe benefit to the employee(s) who participated/benefited.

4. Alcohol

Any alcohol purchased MUST be coded to entertainment on the expense report, regardless of the business purpose.

a. Travel and Business Meals

The College will pay for alcohol with a meal while traveling domestically. Alcoholic drinks purchased with a meal must be counted as part of the meal allowance. However, alcoholic beverages consumed by travelers between or after mealtimes are not considered part of the meal allowance and are not allowable, except when they qualify as necessary entertainment for donor solicitation. Receipts submitted to substantiate such purchases should note the name of the guests/donors and the nature of the meeting.

Employees must use good judgment and must not purchase an unreasonable amount of alcohol nor at an unreasonable cost as compared to the overall cost of the meal. Alcohol consumed at a business meal generally should not exceed 30% of the total bill.

b. On Campus

The College holds a liquor license with the California Department of Alcoholic Beverage Control. All alcohol for on-campus consumption must be processed through Campus Dining. Services can be obtained via the College’s Events Service Request Form, by emailing dining@oxy.edu or by phone at (323) 259-2629. It is against the law to purchase alcohol for a business purpose at retail when holding a liquor license.

c. Off Campus

Alcohol that is consumed off campus (outside events, meetings, meals) may be purchased at retail and is a reimbursable expense if submitted and substantiated in accordance with this policy. Alcohol consumed at events that are held at a College property with an official mailing address other than 1600 Campus Road, are permissible and reimbursable only when provided by a caterer with its own liquor license.

Alcohol purchased for gifts and delivered by non-�� personnel (i.e. a common carrier) to a mailing address other than 1600 Campus Road is permissible and reimbursable if submitted and substantiated in accordance with this policy.

5. Travel, Meals, and Entertainment (including Alcohol) for Sponsored Funds

a. Air Travel

All air travel and cargo transportation services funded by the federal government are required to use a "U.S. flag" air carrier service. You can find a . If your travel does not comply with the Fly America Act, you will not be able to charge the expense to a sponsored account. Authority for the Fly America Act comes from . For any questions, please reach out to sro@oxy.edu.

b. Meals

If meals are charged to sponsored funds, ensure they adhere to the terms and conditions of the funding agreement. For any questions, please reach out to sro@oxy.edu.

c. Per Diems

Certain sponsored funding contracts allow per diems for out-of-town meals. Per diem amounts must be approved in advance of the trip by the Sponsored Research Office.

d. Alcohol

The federal government mandates that no alcohol may be charged as either a direct or indirect expense of federally sponsored projects. This means that alcohol cannot be charged to funds sponsored by federal agencies.

C. Credit Card Guidelines

The College obtains and issues credit cards for employees through Citi and participates in a MasterCard rebate program that provides benefits to the College. Because the College only benefits from the rebate program when College-issued cards are used, a College-issued card must be used by anyone who travels on College business.Employees must submit an application for a College-issued card at least three (3) weeks in advance of an anticipated trip. When a College-issued card has been issued to an employee for travel and/or business expenses, it is expected that the employee utilizes the College-issued card whenever possible. The College-issued card utilizes the College’s line of credit: There is no credit check conducted of applicants.

In general, expense reimbursement requests for employees issued credit cards should be rare and utilized only when unique circumstances arise. Expense reimbursements for employees who have a College card will only be permitted for cash purchases and mileage reimbursement.

1. Physical and Virtual Credit Cards

Citi offers employees both physical and virtual credit cards (collectively “College-issued card”). A College-issued card is the preferred payment method for charging business expenses. Physical cards are provided to employees who incur expenses on behalf of the College on a regular basis and allow for in-person purchases. Virtual cards are provided digitally for specific (short term) online purchases and digital expenses. Employees are responsible for submitting receipts and reconciling the transactions from their College-issued card in Chrome River.

2. Eligibility

The College only issues cards to the following groups on an as-needed basis: regular staff, faculty, and administrators. Only full-time employees are eligible to receive a College-issued card. Students, contractors, and temporary employees are not eligible.

An employee is eligible for a College-issued card when warranted by a business need and with approval from both the employee’s Supervisor and Vice President. If an employee is incurring $3,000 or more in reimbursable business expenses each fiscal year (July 1 - June 30), the employee may be directed to apply for a College-issued card.

3. Application

To receive a College-issued card, eligible Employees will need to submit a Credit Card Application using the online form available through the Business Office homepage via my.oxy.edu or through the Chrome River portal.

The application requires the individual cardholder’s name, their employee ID number, their department, their email address, the type of card being requested and the purpose for the credit card. Employees are required to review and sign the Cardholder Agreement Form at the time the application is submitted. The Employee’s Supervisor and Division Vice President will be notified via email to review and approve the request. Upon approval by the Controller, the Credit Card Application will be processed and submitted to Citi. Virtual cards will be delivered via email to the Employee. Physical cards will be delivered to the MasterCard Program Administrator within seven to ten (7-10) business days after approval.

Employees will be required to complete ��’s Expense Management Training (which lasts approximately one hour) before the card will be released. The Business Office reserves the right to deny a card or reduce the credit limit.

4. Credit Limits

The employee’s Vice President will be responsible for determining the credit limit for the card.

Physical Cards - The College establishes a preset credit limit for physical cards depending on the role of the employee and the estimated amount of monthly card usage. Limits on physical cards are monthly and there are no per transaction limits. Limits reset every month. If there is a need for an increase in credit limit, the cardholder should submit a request to the Program Administrator at creditcards@oxy.edu, and include the appropriate Approvers.

Virtual Cards - The College establishes a total credit limit for virtual cards depending on the role of the employee and the estimated amount requested by the employee when requesting such a card. Limits on virtual cards are the total amount available with no per transaction limits. Limits DO NOTreset. If there is a need for an increase in credit limit, the cardholder should submit a request to the Program Administrator at creditcards@oxy.edu, and include the appropriate Approvers.

5. Refunds

Any refund for purchases on a College-issued card must be refunded directly to the College-issued card. The employee must then submit an OEMS expense report for the refunded amount, coding the credit amount to the same general ledger account as the original charge. Refunds in the form of a credit memo should not be accepted, if possible.

6. Responsibility and Misuse

Cardholders MUST use the College-issued card for ALL College business transactions and only College business transactions. Partial business and personal transactions are not permitted.

The MasterCard Program Administrator will audit the use of the College-issued card and report any discrepancies to the Controller for appropriate remedial action. Additionally, because the MasterCard is issued pursuant to a contract between the College and Citi, a College representative can access transactions posted to the cardholder’s account and/or obtain Substantiation directly from the vendor/merchant.

Misuse of a College-issued card may result in disciplinary action, up to and including termination of employment. The College-issued card must be used by the approved cardholder only – use by anyone other than the cardholder is not allowed.

7. Expense Management Reporting

All expenses charged to the College-issued card will be paid directly by the College. It is the employee’s responsibility to submit timely expense reports via the OEMS, which will be routed to the appropriate Approvers. These expense reports are due twenty (20) days after the last day of the preceding month. Any unsubstantiated expenses charged to the College-issued card can be included as taxable income on the employee’s year-end tax statement (IRS Form W-2). Failure to comply with Substantiation requirements could result in immediate suspension of all College-issued card privileges, as well as disciplinary action.

8. Personal Expense

If an employee incurs a personal expense on a College-issued card, the employee must reimburse the College for that personal expense before the expense report that contains the personal expense is submitted for approval. All personal expenses must be coded by using the “Personal Expense” tile in the OEMS. An employee must reimburse the College via cash or check at the Cashier.

9. Fraudulent Charge

Each cardholder is responsible for reviewing OEMS transactions for accuracy. If cardholders notice charges in the OEMS that are not authorized (fraudulent), please contact the Citi Customer Service at 1-888-654-9323 to report the fraudulent charge(s) immediately. Cardholders can also log into their Citi Manger portal at citimanager.com/login to report fraudulent charges. Contact information can also be found on the back of the card.

Citi will cancel the card and issue a new card, which will be sent to the Program Administrator in the Business Office. The Program Administrator will notify the cardholder when the new card is available.

Once the investigation has concluded and if a credit is given to reimburse the College for the fraudulent charge, the credit will appear in the OEMS. The cardholder will need to process an online expense report with the fraudulent credit(s) coded to the same general ledger account by using the “Fraudulent Charge” tile in the OEMS.

As a security measure to protect the cardholder, Citi may question any unusual transaction or spending pattern at the time of purchase. Cardholders are responsible for exercising the same care and responsibility in safeguarding College-issued cards as they would their own personal ones.

10. Lost, Stolen or Damaged Card

If a College-issued card is lost, stolen, or damaged, the cardholder should report it immediately to Citi’s 24-hour customer service at 1-888-654-9323 (outside the US, call 904-954-7314). Cardholders can also log into their Citi Manger portal at citimanager.com/login to report lost, stolen or damaged cards. Contact information can also be found on the back of the card.

A new card will be mailed to the College. If the cardholder is traveling and needs the replacement card sent directly to them, the cardholder should contact the Business Office’s Program Administrator. If the employee immediately reports the lost or stolen card to Citi, the College will not be responsible for any charges incurred on a lost or stolen card.

11. Return of Card

Upon termination of employment, or by request of the College, cardholders must surrender all College-issued cards. Physical credit cards may be surrendered to the Business Office when exit forms are signed.

Each cardholder is responsible for completing an OEMS expense report covering any outstanding transactions and reimbursing the College for any personal expenses prior to their termination date. If an online expense report is incomplete, the Substantiation, proper general ledger coding, and business description for the outstanding transactions should be forwarded to the employees’ direct supervisor. The supervisor will be responsible for completing the report on the employee’s behalf. The supervisor should reach out to creditcards@oxy.edu to coordinate submission.

D. Additional Contacts

Travel and Expense Policy Questions: Lupe Salmerón, CPA, Controller. (323) 259-1423; lsalmeron@oxy.edu
Travel and Expense Policy Questions related to Sponsored Funds: Shuna McMichael, Director of Sponsored Research. (323) 259-2515; sro@oxy.edu
MasterCard Questions: Reylit de Castro, Accounts Payable Specialist. (323) 259-2848; creditcards@oxy.edu
Reimbursements or Accounts Payable Questions: Evelyn Hermosillo, Accounts Payable Manager. (323) 259-2808; accountspayable@oxy.edu

V. POLICY HISTORY.

Responsible Officer(s): Controller

Effective Date: January 01, 2025

VI. RELATED POLICIES AND RESOURCES.

Cash Advance Form (When cash is needed for expenses that cannot be paid by credit card)

Cash Advance Policy

Credit Card Application Form (To apply for a CITI MasterCard physical or virtual card)

Employee Expense Form (For Chrome River Reimbursement Requests)

Human Subjects Payment Policy

Payment Processing Guidelines

Prize and Award Reporting Form (To report taxable gifts, prizes, and awards)

Prizes, Awards, and Gifts to Faculty, Staff, and Students Policy

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