Travel Expense and Reimbursement Policy

Purpose of Policy

This policy is intended to:

• Ensure that only reasonable and necessary expenditures for authorized business are incurred, documented, and paid for by the College.
• Ensure a clear and consistent understanding of policies and procedures.
• Make sure all payments conform to applicable laws, acceptable practices, and common sense.
• Provide guidelines that enable the College and its departments to better manage their budgets.

Scope of Policy

The policy applies to all employees and non-employees, e.g. trustees, volunteers, consultants, guest lecturers, interview candidates, etc. who incur reimbursable expenses to be paid by Hampshire College, regardless of the source of funds.

The Internal Revenue Service (IRS) imposes the following requirements on reimbursement of business expenses: (1) there must be a business reason for the expenses; (2) the individual must clearly substantiate the expense; and (3) the individual must return to the employer or organization any amount advanced in excess of the substantiated expenses.

In order for travel and other reimbursable expenses to be paid by the College, they must be properly accounted for on a travel reimbursement form or a non-travel payment request form, with the business purpose stated, backup documentation provided, and proper supervisory approvals obtained. More information regarding the logistics and specifics of these requirements can be found here.

Exceptions to this policy may be made on an individual basis, but require the individual to obtain written pre-approval from the vice president for finance and administration. A copy of the pre-approval must be attached to the pertinent travel and reimbursement report.

Responsibilities of Requestors

Business-related expenses will be reimbursed by the College only if they are reasonable, appropriately documented, properly authorized, and within the guidelines of the College's policies and practices. Individuals who incur business travel expenses should neither gain nor lose personal funds as a result of their travel. Individuals conducting official College business are expected to exercise the same care in incurring expenses, as would any prudent person. Excessive costs, circuitous routes, excess delays, or luxury meals, accommodations, and/or services unnecessary or unjustified in the performance of College business are not acceptable and will not be reimbursed.

Individuals may not authorize payments or reimbursements of their own expenses, of expenses charged to a different department, of peer-level colleagues within their own department, or of any individual to whom they report.

Responsibilities of Division Heads

The responsibility for review and approval of all College business and reimbursable expenses generally rests with the departmental division head (the vice president or their designee), who is fiscally responsible for the account(s) to which the expenditures will be charged. The division head must verify that expense reports and reimbursement requests meet the following criteria:

• The expense was incurred as part of authorized College business.
• The information contained in the expense report/payment request and the attached documentation is accurate, complete, reasonable, and otherwise in accordance with this policy.
• There are sufficient funds to cover all expenses.
• The expenditure is charged to the proper account(s).
• The expense is reasonable, justifiable, and in accordance with all relevant college policies.

Responsibility of the President's Cabinet

The President's cabinet has approved this policy, and with the help of division heads will ensure compliance with it across the entire college.

Responsibilities of the Business Office*

• Reviewing forms and attachments for accuracy, completeness, reasonableness, and compliance with government regulations and college policies.
• Returning forms for correction when items appear unreasonable, incomplete, personal in nature, or violate government regulations or college policies.
• Maintaining auditable records of travel expenses.
• Processing balances due to/from vendors and individuals.
• Verifying required approval signatures.
• Ensuring proper tax treatment of taxable income items and compliance with IRS regulations.

*NOTE: The above does not relieve either the requestor or the division head from their obligations under this policy.