Download the HMS Travel and Reimbursement Policy

Approval Structure
At HMS, we allow a decentralized control over reimbursements if units have an appropriate organizational structure in place. In accordance with University Travel Policy, subordinates may not approve their managers' expense reports. Departments need to work with Financial Operations & Analysis (FOA) to develop and implement alternative means to ensure appropriate review and approval such as forwarding to FOA for review and approval.

Note: Although subordinates may be authorized as approvers in the Web Voucher system, this does not make it appropriate for them to approve a managers' expense reports. Periodic audits will be done to make sure departments are in compliance with this policy.

Reimbursement Process
The reimbursement process may be completed in two different ways:

1. If you have relatively simple reimbursements all associated with a single business purpose, you may wish to enter detailed expenditures directly into the Reimbursement screen or Amex Direct Pay Screen in the Web Voucher (WV) system. If you choose this option, Harvard Travel Policy requires that your Receipt Report (printed Reimbursement or Amex Direct Pay WV) contain a minimum level of detail including a break out of the following: air/rail travel, ground transportation, lodging, meals and other (see Travel Policy At-A-Glance for more details). The preparer must input this detail into the WV line description fields or capture it with detailed Object codes. Print the WV Receipt Report, have the reimbursee sign the Receipt Report, attach receipts and send to the approver. The approver will review the receipts, check for signatures, and approve on the system. They will then send the Receipt Report along with the receipts >$75 to the Travel Office for payment.

2. A Universal Expense Form (UEF) was created to capture detail for both out of pocket and American Express payments. This allows the preparer to enter the expense detail on the UEF and only summarize in the web voucher system. The form is also used for capturing multiple business purposes. The form must be signed by the approver and the reimbursee. After the Reimbursement WV or Amex Direct Pay WV is submitted in the system, the preparer must print the Receipt Report and attach along with all receipts to the UEF and forward along to the approver. The preparer needs to be sure that the web voucher number and all other relevant blanks are filled in on the UEF. The approver will review the receipts, sign the report, and approve on the system. They will then send the Web Voucher Receipt Report and the UEF along with all receipts >$75 to the Travel Office for payment.

Receipt Policy
Although the Travel Office does not require submission of receipts under $<75, HMS policy encourages travelers and reimbursees to submit ALL receipts (regardless of amount) to the approver for review. This approach facilitates good business practice and control. Once the report is approved, individual receipts that are less than $75 should be detached from the report and filed locally.

60-day Limit on Reimbursements
Reimbursements for both travel and non-travel expenses must be submitted within 60 days from the date of expenditure. Reimbursements submitted after 60 days from the date of the expenditure require Financial Dean approval/signature and written explanation of extenuating circumstances for exception to policy. The policy was implemented February 1, 2002 for non-travel expenses and July 1, 2002 for travel expenses. Click here for complete Harvard University Policies and Procedures for travel and non-travel reimbursements.

FOA has been extremely lenient in granting exceptions to these policies. These exceptions were granted in order to give faculty and staff sufficient time to get better educated on the policy changes that are being enforced. Our grace period is over and we must comply with these new policies.

The IRS "accountable plan" requires that expenses must be submitted within a 'reasonable' amount of time which is defined under the IRS safe harbor rules to be within 60 days from the date the expense was incurred. An accountable plan allows business reimbursements to be tax-free. Reimbursements submitted beyond 60 days may result in compliance issues with the IRS, and jeopardize our ability to satisfy "accountable plan" rules for the entire Harvard Community.

Definition/Clarification of 60 days: The 60 day policy is defined as 60 days from the date the expense was incurred. This is NOT the date the expense shows up on either your American Express Corporate Card or personal credit card statement.

Helpful hints: You DO NOT need to wait until you receive your credit card statement to get reimbursed! As soon as an expense is incurred and a receipt is obtained you should submit it for reimbursement - the same process can be followed for prepaid expenses (change in policy prior to 7/1/02). American Express Corporate Cardholders are encouraged to log into the American Express interactive website at: http://www.americanexpress.com to access up to date statements on-line, which allows for a timely review and reconciliation of your charges. Instructions and helpful hints on how to access the website can be found on the FOA website. If you do not see an expense showing up on your credit card statement, and you have your receipt, then you should process the expense reimbursement and contact the vendor directly to ensure the expense is posted promptly.

Exceptions - Tuition/Exam Fees: If a department has a policy to reimburse an employee for any course(s), certifications or exams which are job-related, then these are very often reimbursed beyond 60 days from the date the expense was incurred (or after satisfactory completion of course, certification or exam). How to Process: Submit a memo to Cynthia Walker to grant an exception and include: name of reimbursee, web voucher number, amount and description of circumstances. Currently, the University policy still considers this an exception so a letter is still required. Departments providing these types of reimbursements should contact Sharon Reine at 617-432-4401 to ensure they are complying with any tax issues for these reimbursements.

Employee & Non-employee Reimbursements: Click here for the reimbursement grid, which should be used to determine where your exception falls. The grid also explains how to process receipts over 60-days old for employees and non-employees.

Questions
HMS administrators should contact Sharon Reine, Accounting Manager, at 617-432-4401 with any questions about policies, procedures or approval structures.

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