University Business Travel and Entertainment Policy

Purpose

This policy is intended to establish standards and guidelines regarding the expenses of individuals for University related business travel and entertainment while 1) ensuring University compliance with federal/state tax laws and third party sponsoring agency regulations, 2) compensating University personnel adequately and fairly when traveling and/or entertaining on behalf of the University, and 3) managing the usage of the University’s financial resources in a responsible manner. 

All individuals are expected to make reasonable and appropriate economical choices when traveling and/or entertaining on behalf of the University.

Scope

This policy applies to any individual using University funds for university related business travel and/or entertainment and is intended to provide consistent and fair treatment between departments throughout the University.  University funds include sponsored research funds awarded to the University.  All expenses must be supported with adequate documentation, appropriate, necessary, and reasonable both in amount and relative to university business purpose.

The University of Dayton’s Policy for University Business Travel and Entertainment is considered an “accountable plan” per Internal Revenue Service definitions.  Expense reimbursements that meet accountable plan rules are not reported as income to the individual.  Under Internal Revenue Service accountable plan rules, travel advances and reimbursement of expenses must meet three requirements:

1.  Expenses reimbursed must be for University related business.  Travel advances must be reasonably related to the cash business expenses expected to be incurred.  Expenses must not be ones that would have otherwise been paid by the employee in the absence of business travel.

2.  Expenses must be substantiated within a reasonable period of time.   

3.  Any advance amounts in excess of substantiated expenses (unused money from advances) must be returned to the University within a reasonable period of time.  

Policy History

Effective Date:  March 9, 1993

Approval:  May 1, 2024

Policy History: 

• Approved in Original Form:  March 9, 1993
• Approved as amended:  February 8, 1993
• Approved as amended:  December 11, 1995
• Approved as amended:  August 7, 2000
• Approved as amended:  February 18, 2017
• Approved as amended:  May 1, 2024

Maintenance of Policy:  Executive Vice President for Business and Administrative Services, Finance and Administrative Services

Policy

It is the policy of the University of Dayton to allow the usage and/or reimburse for appropriate, necessary, and reasonable travel and entertainment related costs incurred while on approved University related business in compliance with relevant Internal Revenue Service and sponsor guidelines (as applicable).

All requests must meet the following guidelines:

• It is expected a University PCard will be used for traveling or for business entertainment expenses when available.
• Detailed receipts must be submitted for all single transaction expenses greater than $25.
• The reimbursement request must be submitted within 60 days of the conclusion of the travel or date of entertainment.   Failure to request reimbursements within 60 days of the conclusion of travel or date of entertainment generally will result in amounts to be treated as if they were paid under a non-accountable plan and treated as compensation, subject to the required payroll tax withholdings and reported as taxable income on the employee’s Form W-2.
• The request must be submitted via the University’s specified travel/entertainment procedure (https://porches.udayton.edu/group/finadmin/procurement-payable-services/travel-entertainment/booking-travel).
• Expenses are to be reported as actual amounts incurred, not estimated or rounded.
• Expenses must be reasonable, avoiding lavishness and excess.

Entertainment expenses must meet all of the above guidelines and the following:

• Entertainment expenses must include the identification of the persons or group being entertained.
• Entertainment expenses must include a statement with the reason for such entertainment, the benefit of such entertainment to the University and clarify the relationship of persons attending to the University’s programs or activities.

University Travel and Entertainment related expenses are permitted for the following:

• Transportation costs
• Lodging
• Meals
• Registration Fees
• Miscellaneous Fees – as defined in the procedures

Travel and Entertainment related expenses will not be permitted for the following:

• Personal expenses and personal care items
• Tickets or fines
• Airline life insurance
• Travel insurance

See the Travel and Entertainment Procedures document for further details regarding the use and/or reimbursement of specific travel or entertainment expenses.

Reference Documents

1. Appendix A: University of Dayton Travel and Entertainment Procedures
2. University of Dayton PCard Rules and Procedures