Policy for University Nontravel Business Expenses

This policy provides guidelines for the administration of University business expense policy. The guidelines apply to all faculty, staff, students and administrators of the University regardless of affiliation or location.

Reimbursement Guidelines

The University recognizes the necessity of reasonable and appropriate expenses incurred for business meals, business meetings and business entertainment in the conduct of University operations. The IRS has established strict rules governing business and entertainment expenses. The University’s policy is to reimburse employees for legitimate, reasonable and appropriate business and entertainment expenses in accordance with the requirements and procedures set forth in this policy.

Entertainment Meals

Reasonable business-related expenses, including tips, for food and beverages furnished to third parties are reimbursable when the following guideline is met:  (1) There is more than a general expectation of deriving income or some other specific business benefit, (2) the principal purpose was the active conduct of business and (3) business discussion was engaged during the entertainment.

The following information is required when submitting an expense for reimbursement of entertainment-related meals:

• The time, place and itemized expenses related to the meal (a credit card receipt is not adequate).
• The business purpose involved with the meal
• The full names and status (e.g., staff, student, faculty or guest) of all attendees.

Other Meals

Meals that do not meet the qualifications of an Entertainment Meal will not be reimbursed.

Telephone Expense

Business calls placed from home will be reimbursed with an attached copy of the bill and the appropriate calls highlighted to denote the call as reimbursable.

Business Gifts

Business gifts must have prior approval from the appropriate administrative office. This includes gifts purchased from the University Bookstore.  The IRS limits gifts to $25.00 per outside party, per year.

Retail Purchases

Retail purchases of offices supplies and other low-cost items required for business purposes will be reimbursed when the request is accompanied by proper documentation. However, employees will not be reimbursed for sales tax. As a nonprofit organization, Baker University is exempt from sales tax. 

Charge accounts have been set up at various retail stores to facilitate use of our tax-exempt status and to the limit the need for employee reimbursements. It is also encouraged to purchase supplies at one of these vendors or at the Mail and Copy Center as much as possible. Please contact Accounts Payable with questions concerning the charge accounts.

Bookstore Purchases

The purchase of office supplies from the University Bookstore is strongly discouraged. If a purchase is deemed unnecessary, the employee will be asked to reimburse Baker University for the purchase. Also, the purchase of personal clothing items from the Bookstore is prohibited.

Nonreimbursable Expenses

• Alcoholic beverages
• Commuting expenses between an employee’s residence and the University
• Floral arrangements
• Greeting cards
• Gym memberships
• Internet user fees (unless preapproved by the chief operating officer)
• Lost/stolen cash or personal property
• Monthly charge for cellular phone service
• Newspapers and magazines
• Personal entertainment expenses
• Personal items and services such as toiletries, luggage, clothing, medication, etc.
• Sales tax on goods purchased from vendors where the University has a direct bill established and a purchase order could have been obtained
• Spouse or family member’s meals or other fees
• Telephone or Internet costs that are not University related
• Traffic citations, parking tickets and other fines