1. University of San Diego
USD Accounts Payable
Expenditure Procedures Overview
July 21, 2017

2. Office of Accounts Payable
Personnel in the Office of Accounts Payable:
Frances Kuhn, Director, x2337
Susan McDaniel, AP Supervisor, x7922
Paz Tojino, AP Specialist, x7952 (A-F)
Hanna Pitts, AP Specialist, x7961, (G-O)
Edgar Moreno, AP Specialist, x7982, (P-Z)
Office Location: Hughes 110

3. Procedural Highlights
Emphasis on an IRS Accountable Plan
Updated expenditure procedures updated September 2016.

4. IRS Accountable Plan BUSINESS PURPOSE must be substantiated
Expenses must be accounted for within a reasonable period of time, which is 60 days

5. Business Purpose
A Business Purpose is defined as one that supports or advances the goals, objectives and mission of the university; and adequately describes the expense as a necessary, reasonable and appropriate business expense for the university. The Business Purpose should answer five basic questions:
WHO was involved? (Give the name(s) of the person(s) and their organization and/or department involved in the activity.)
WHAT activity was performed? (Explain the activity or circumstance that gave rise to the expenditure.)
WHY was the activity done and how did it benefit USD? (Describe the benefit to USD)
WHEN did the activity occur? (Indicate the date or inclusive dates the activity took place. Specific dates are also part of the item descriptions, and dates included in the Business Purpose can be more general (the entire trip, for instance, instead of the date of each meal).
WHERE did the activity take place? (Give the location of the activity: to/from destinations, restaurant name and city, or other appropriate information.)

6. Accountable Plan General Requirements Methods of Payment
Forms & Reimbursement Methods
Documentation
Accountability & Approvals

7. Methods of Payment – One Card
Used for travel and entertainment expenses including airfare, hotels, restaurants, car rentals, conference fees, food, etc.
Supplies and other business expenses under $5,000
Personal payments/out-of-pocket expenses
When an employee does not have a One Card, we suggest using the following forms of payment:
Cash
Employee’s personal credit card
Check written using an employee’s personal checking/savings account
Please note that employees should use the One Card whenever possible. Out-of-pocket expenses should be infrequent in nature.
Employees should never pay a third party for services rendered – these payments must be processed through Accounts Payable via an invoice from the service provider.

8. Methods of Payment – Personal Reimbursement
Personal Forms of Payment Overview
Reimbursement after Trip or Event
Actual Expense Method
Per Diem Method The University allows the per diem method, but the Law School reimburses only for actual expenses incurred. Receipts must be provided to substantiate the actual expense. The per diem rate is used as a guideline for maximum allowances for meal expenses.

9. Reimbursement Methods
Employees may use either Actual Expense Method or Per Diem
Actual Expense Method
This method is used for all One Card expense reconciliations
Submitted after completion of travel
Documentation must include actual receipts that provide details including business purpose
USD will reimburse meals costs that are reasonable (compared to the IRS standard per diem allowance for the city in which the meal is conducted)
Foreign currency must be clearly documented and converted using the foreign currency rates at

10. Forms – Reimbursement & Payment
Expense Report (employee form)
For expenses exceeding $100
Approved by supervisor and budget administrator
Petty Cash Voucher (employee form)
For expenses less than $100
One Card Transaction Log (employee form)
For the reconciliation of all One Card transactions
Payment Request Form (non-employee form)
Used under limited circumstances for certain suppliers
Should be used for individuals – Honorariums, awards, etc.
Must provide proper tax identification for payee

11. Forms – Expense Report Expense Report Employee/Payee Name
Payment Type – select the appropriate payment AP should make
Date of Expense Report - date of preparation
General Description of Expense Report
Funding – POETS information
Approvals
Form will auto calculate the amounts under Expense Report Total and Total Owed to Payee

12. Forms – Petty Cash Voucher
Type of Request (Petty Cash Voucher)
Date – preparation date
Payee Name
Business Purpose
Funding – POETS
Approvals
Note: “Received by Signature” is to be signed at the Cashier’s Window.

13. Forms – One Card Transaction Log
Cardholder Name
Statement Date
Detailed Expense Information
Approvals

14. Forms – Payment Request
Payment Request Form
Payee Information (all information required)
Requestor/Preparer information (all information required)
Payment Processing and Distribution Instructions
Required Tax Information
Business Purpose (Payment Justification)
Wire/ACH information (if applicable)
Funding – POETS
Approvals

15. Forms – Miscellaneous/Supplemental
Business Purpose Form
Use this form to prove the expenses were incurred, and that they were incurred in connection with a business purpose.
Missing Receipt Declaration
Excessive use of a Missing Receipt Declaration may revoke the privilege of providing a declaration in lieu of a receipt. Excessive use is defined as using this form more than twice per fiscal year.
Please note that AP does not count MRD’s used when an itemized receipt is absolutely not available (i.e. parking lot ticket “receipts”)
Mileage Form
Handy form to use for calculating mileage – let the form do the work for you!
Gift Form
Required for all gifts given, regardless of amount.

16. Documentation Original Documentary Evidence Must Include
Original itemized receipts that clearly state the items purchased
Transaction date
Name of the business establishment (name of merchant)
Location
Cost
Form of payment used
Business purpose
Names of all persons involved

17. Accountability
The employee, supervisor and budget administrator are held accountable that expenses reported on all AP forms were incurred in connection with a business purpose
The employee, supervisor, and budget administrator are expected to sign all applicable AP forms.

18. Travel @ USD Must be authorized in advance by a supervisor
Must involve the most economical methods
Employees are strongly encouraged to use USD preferred travel vendors
When in doubt…ask!

19. Travel @ USD, cont. Before your trip During your trip After your trip
Processes, Procedures and Expenses
During your trip
Allowable Expenses, Guidelines, and Receipts Required
After your trip
Reconciliation using an Expense Report form or Petty Cash Voucher

20. Travel @ USD – before your trip
You will need to make arrangements for and choices about:
Airfare
Lodging
Meals
Mileage
Rental Car

21. Airfare
Employees are encouraged to book directly through our University preferred travel service company:
Global Point Travel Solutions
Non-reimbursable or unallowable costs
Business Class or First Class upgrades (Early Bird check-in must have a valid business reason)
Outside travel agency fees > $35
Airline VIP memberships
Flight insurance
Cancellation fees for non-business reasons

22. Lodging
Employees should attempt to use standard, accommodations at reasonably priced commercial class hotels and motels when making reservations
The required documentation for lodging expenses is the original, itemized receipt that reflects payment for all charges incurred and a zero balance due

23. Meals (Travel)
Meals are reimbursable based upon original itemized receipts only, up to the M&IE (meals & incidental expenses) per diem maximum for the city in which the meal is consumed.
Please refer to the gsa.gov website for (meal) per diem rates, and remember that your first and last day of travel are calculated at 75% of the per diem amount you are eligible to receive
If meals are included in the conference registration fee, the employee will not be reimbursed for any additional cost related to those meals
Conference registration materials should be provided with the reimbursement requests for related meals

24. Personal Vehicles/Mileage Reimbursements
Mileage Reimbursement is subject to standard IRS mileage rate
When submitting expense reimbursement requests for mileage (Expense Reports, Payment Requests, Petty Cash) please include:
Travel information (time, date, purpose and persons involved)
Street address of your origin as USD (5998 Alcalá Park, San Diego, CA 92110)
Include a Google/MapQuest estimation of mileage
When calculating mileage reimbursements, USD will always be the point of origin. The IRS is very restrictive about mileage reimbursement between an employee's home and business-purpose destination. The only exception is when traveling to the airport on weekends. In that case the point of origin is the employee's home.

25. Rental Cars
Must be the most economical for the number of business persons traveling
Employees should use preferred car rental agencies (Avis, Budget, Enterprise or National)
Sizes or classes of cars that are inappropriate for the number of business persons traveling will not be reimbursed
Rental cars may be booked directly with agency or through USD’s preferred travel services company using a Travel & Entertainment (T&E) card
Rental car personal use charges are non-reimbursable as well as any traffic fines or penalties incurred

26. Travel @ USD – during your trip
If you are using the actual receipt method (either using the One Card or your personal credit card), remember to keep all of your itemized receipts!
Make sure to document any important and relevant business purposes during your trip.
If you have any meal charges on your hotel bill, make sure to request an itemized receipt.

27. Travel @ USD – after your trip
If you used….
One Card
Reconcile your expenses on the One Card Transaction Log
Make sure you have all of your receipts, documentation, etc.
Please include a copy of your One Card statement

28. Travel @ USD – after your trip, cont.
If you used…
Personal Payment
If you used the Actual Expense Method…
Make sure you have all of your receipts, documentation, etc.
If expenses total less than $100, you are welcome to request Petty Cash
If more than $100, please use an Expense Report Form (reimbursed via direct deposit)

29. Miscellaneous Items Non-travel meals Gifts Alcohol Between employees
Non-employees
Alcohol
Travel
Non-travel

30. Meals (non-travel)
USD does not permit an employee to entertain another employee with university funds
To incur a legitimate meal expense, a non-USD business associate must be present
Official gatherings will be reimbursed only once every six months during a fiscal year

31. Gifts (to USD employees)
Cash equivalents (i.e. gift cards) to employees may not exceed an aggregate $75 per employee per year and they will be included as income on a W-2.
Tangible gifts (non-cash equivalents) to employees may not exceed an aggregate $75 per employee per year.
Gift form required

32. Gifts (to non-employees)
There is no minimum dollar value for gifts that are cash or cash equivalents (i.e. gift cards) and they will be included on a 1099 form.
Tangible Gifts/non-cash equivalents need to qualify under the de minimus fringe benefit clause which is $75 per independent contractor and be infrequent in nature. If the tangible gift exceeds $75, the entire gift amount will be included on a 1099 form.
Gift form required

33. Non-employee payments & Invoices
Let’s now move onto non-employee payments and invoice processing

34. Payment Requests A Payment Request Form should be used for:
Independent Contractors
Prizes and awards (non-employees)
Registration and Membership Dues – Charge to One Card when possible.
Relocations expenses
Subscriptions
Etc.

35. Processing and Paying Invoices
When Departments Receive Invoices
Review and Verify the Invoice
Verify that you have the original invoice
Thoroughly review and verify the information contained within the invoice
Annotate Invoice prior to submitting to AP with:
Today’s date
PO number (if applicable)
The phrase Okay to Pay
Dollar amount authorized to pay
Complete POETS information
Signature and printed name of authorizer

36. Supplier Invoices Required Invoice content Bill to USD Ship to USD
Purchase Order Number
Itemized Order Details
Supplier Name
Date of Invoice
Remit Address of Supplier
POETS (if applicable)

37. General Disclosure
The AP expenditure procedures apply to all modes of payment used by the University including…
Checks issued on all USD bank accounts
ACH/Direct Deposit/Wires issued from all USD bank accounts
Petty cash
One Card

38. Director, Accounts Payable Office of the Controller
Questions?
Contact Information:
Frances N. Kuhn, MBA
Director, Accounts Payable
Office of the Controller
5998 Alcalá Park, Hughes 204
San Diego, CA
Phone: (619)