Cleveland Institute of Art

Travel and Entertainment Expense Reimbursement Policy

Revised: August 2019

Overview

The Cleveland Institute of Art recognizes that employees may be required to travel or incur other business related expenses on behalf of CIA. This document establishes policies governing the reimbursement of such ordinary, necessary and reasonable expenditures when directly related to the transaction of CIA business. Directly related means there is the expectation of deriving some current or future benefit for CIA; the employee is actively engaged in a business meeting or activity necessary to the performance of the employee’s job duties; and/or there is a clear business purpose for entertainment. At all times, individuals are expected to exercise discretion and sensible business judgment regarding expenses covered by this policy.

State and Local Sales Tax

As a not-for-profit organization, the Institute is exempt from Ohio sales tax and local sales tax. This is a significant benefit in lowering our operating costs. Institute purchases paid through the Business Office are always reviewed to verify that sales tax is not assessed. If the employee chooses to make a direct purchase rather than go through the Institute, it is his/her responsibility to ensure that there is no sales tax charge. A tax exemption certificate should be obtained from the Business Office prior to making purchases that include sales tax and should be presented at the time of purchase. (The sales tax exemption certificate is available on my.CIA.edu under the business affairs tab in the CIA Business Policies section.) Use of the certificate to avoid sales tax on personal transactions is strictly prohibited.

Documentation and Approval

Original receipts are required for all expenses. The following receipts are acceptable:

• Original itemized receipts showing detailed list of food & beverages purchased
• If purchase was made via credit card, the signed credit card receipt showing tip (both are required)
• Original receipt completed by the vendor
• Customer copy of the credit card receipt for purchases other than meals
• Hotel folio
• Car rental agency invoice and signed agreement plus credit card receipt
• IRS approved electronic ticket receipt

(Please note that a restaurant tear-off by itself, credit card statements, internet receipts from a travel booking site for hotel reservations, packing slips, statements and quotes are not considered an acceptable form of receipt. Any expense reimbursement submitted in this manner will not be reimbursed.)

Requests for expense reimbursement must be documented on the appropriate expense report form and approved by the employee’s supervisor or department head. Each expense should be separately identified and designated to the appropriate general ledger account number. Original itemized receipts or invoices for all expenditures should be neatly taped to letter sized paper in chronological order and attached to the expense report. Those individuals approving expense reports are responsible to ensure that the expenses reported are proper and reimbursable under this policy; the expense report has been completed accurately and has the required documentation; and the expenses are reasonable and necessary. Expense reports in excess of $2,500 also require the approval of the appropriate Vice President. Expense reports submitted by a Vice President require the approval of the President. Expense reports submitted by the President are reviewed and approved by the Chair of the Board of Directors.

CIA complies with IRS regulations, which requires that all business expenses be substantiated with adequate records. The following information must be submitted with your request:

• Amount of expenditure,
• date and place of expenditure
• business purpose of the expenditure
• names and business relationships of all individuals other than the employee who incurred the expenditures

Expenses must be submitted no later than 60 days after the date incurred. Expenses submitted beyond 60 days of expenditure will not be reimbursed. Unsubstantiated expenses on a CIA credit card may be considered taxable income to the employee. To facilitate year end closing, an earlier deadline may be imposed by the business office. The timing is important to ensure that the Institute records are up to date for financial reporting and budget management purposes.

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Meals

Local meals are reimbursable when a business purpose can be substantiated. In the case of meals for meetings with employees, students, alumni, donors or other guests, a primary business purpose must be evident, with personal consumption secondary. Meals with other CIA colleagues are generally not reimbursable and should be considered a personal expense unless the business being conducted is such that it cannot be done in the office. The fact that mealtime is a convenient time during which to schedule a meeting does not automatically convert a personal expense to a business expense. An exception is an on-campus, planned meeting of multiple attendees for which meals are provided for the group. Acceptable situations for local business meals may include:

• Visiting Artists
• Fundraising
• Recruitment

Generally, expenses for non-Institute employees (i.e. spouses, partners, other acquaintances, students, etc.) are not reimbursable. Exceptions require the advance approval of the President.

The daily maximum reimbursable meal and beverage cost while traveling on Institute business is $60.00 before tax and gratuities. Reimbursement will be on the basis of actual expenditures as this is not a per diem amount. Gratuities will be reimbursed up to 20%. Allowance will be made for travel to certain geographical areas in which the cost of living is significantly higher.

The Institute does not reimburse for alcoholic beverages. If an employee wishes to consume alcohol, it is done at the employee’s personal expense.

The following documentation must be included for reimbursement for all business meals:

• Complete description of the business purpose for the meal
• Date and place of entertainment
• Names, titles and Institute affiliation of all individuals in attendance
• Original itemized receipts showing detailed list of food & beverages purchased
• If purchased via credit card, the signed credit card receipt showing tip as well

Holding meetings and/or entertaining at a personal residence is not permitted for Institute business. Consequently expenses related to such activities are not reimbursable.

Travel

Business travel that is expected to be funded by the Institute must be approved in advance by your supervisor or department head. All requests for travel should include purpose of travel, dates, location, conference agenda (if applicable) and an estimated budget for all expenses anticipated in conjunction with the travel. Whenever possible, reservations should be made directly through the hotel or airline to ensure the most flexible rescheduling options in the event of a cancellation. Transportation may be made by air, bus, rail, rental or personal automobile. Employees should select the most reasonable, cost-efficient mode of transportation.

Air Travel

Individuals are encouraged to plan air travel in advance in order to obtain the best rates. Air travel should be scheduled for arrival and departure as close to the start and end times of the conference, seminar, meeting, etc. All air travel MUST be in coach class. Economy Plus Class is acceptable only for international flights, and must be pre-approved by the respective supervisor.

When traveling by air, employees are expected:

• To use the lowest logical airfare available
• To reserve 7-day advance notice purchases
• To use non-direct flights when savings are substantial

Employees may elect to upgrade travel class at any time. Upgrades for air travel are not reimbursable. If an employee wishes to upgrade either travel class or seat assignment, it is done at the employee’s personal expense. Additional charges for seat assignment will be reimbursed only when documentation is provided indicating that no other seats were available. Requests for reimbursement of flight change fees must be accompanied by the business reason for the change.

Unused or partially used airline tickets must be returned for refund/credit within one week of trip cancellation or trip completion.

Frequent flyer benefits may be retained by the employee, but should not be the basis for switching air schedules, hotel accommodations or car rentals unless such choice is reasonably equal in cost to the lowest acceptable alternative. The Institute will not reimburse any associate/membership fees for frequent flyer clubs.

Airport Parking

When parking at an airport is part of business travel, employees are encouraged to utilize long term offsite alternative airport parking whenever possible. Short term parking and valet parking fees will not be reimbursed.

Personal Automobile

Use of personal automobile will be reimbursed at a mileage rate set by the Institute and deemed acceptable by the IRS. For local travel, mileage in excess of your normal commuting mileage is reimbursable. When traveling to a destination in excess of 200 miles, reimbursement will not exceed the applicable advanced purchase coach rate airfare. The established mileage rate takes into account all costs of owning and operating a vehicle--including fuel, insurance, maintenance and depreciation. A printout from MapQuest or similar website illustrating the route traveled beginning at 11610 Euclid Avenue, Cleveland, OH 44106 and to the destination point illustrating the route traveled and total mileage must be included for reimbursement.

Tolls and parking fees incurred while traveling for business are reimbursable and require documentation. Parking fines and moving violation tickets are not a reimbursable expense. Refer to my.Cia.edu for the current mileage reimbursement rate.

Ground Transportation

Ground transportation costs to/from hotels, airports, conferences, meetings, etc. are considered reimbursable. Individuals should select the most economical ground transportation option available under the circumstances. Options include:

 

Courtesy/Airport Shuttles

Many hotels offer complimentary shuttles that will take you to/from the airport at no charge. Individuals should take advantage of this service whenever possible. Most major airports also offer shuttles or buses for a nominal fee and may be considerably less expensive than a taxi.

 

Taxis

Taxis can be used when courtesy/airport shuttles are not available.

Rental Car/Vans

Rental cars/vans may be used as circumstances dictate and should be limited to situations where other means of transportation are not practical, economical or available. Employees must reserve a car in the economy/compact category. Renting a 15 passenger van is prohibited. When renting a car/van for business purposes in the United States, the rental agreement should be under the name of The Cleveland Institute or Art, followed by the renting individual’s name. (e.g. The Cleveland Institute of Art/John Jones). Liability is covered by CIA’s insurance policy, provided that the rental agreement indicates that the transaction is for business purposes for the Cleveland Institute of Art. Liability insurance coverage should not be purchased through the rental agency and will not be reimbursed. Collision insurance coverage should be purchased through the rental agency and will be reimbursed. Gasoline for rental cars is a reimbursable expense.

Employees should refuel rental cars prior to returning them to the rental company to avoid excess charges unless the refueling option is more economical. GPS units are not a reimbursable expense.

Lodging

Hotels

Hotel reservations should be made so as to secure the best available rate. Employees are required, whenever possible, to use lodging classified as standard or moderate. For seminars, meetings or other group activity, employees are expected to secure the group preferred rate at the host hotel. When possible, travel for a conference, meeting, etc. should be scheduled so that the first night of the lodging is the night of the first day of the event, and the last night of lodging is the night before the conclusion of the event. It is recognized that this may not always be possible, and in such cases, advanced supervisor approval is required. The employee is expected to pay for their lodging at check-out and request reimbursement for the expense. For hotel stays in Ohio, provide a copy of the CIA Sales Tax Exemption Certificate at the time of registration. (The sales tax exemption certificate is available on my.CIA.edu under the Business Affairs tab in the CIA Business Policies section.) In-room movies, mini bar charges, extra costs for additional persons in room, personal care items and other discretionary charges are considered personal expenses and are not reimbursable.

Hosted Lodging

On occasion a colleague, relative or friend may host a traveling CIA employee in a private residence. In these instances, the employee may compensate the host with a small token of appreciation such as a gift or meal as appropriate, up to $60 per stay. The employee must provide a detailed receipt for this gift/meal.

Other Travel Expenses

Conference Registration

Registration fees for preapproved conferences will be reimbursed. A conference overview/agenda as well as proof of payment must be included with the reimbursement request.

Internet

Hotel internet service fees will be reimbursed if the service is necessary to perform CIA business and free services are not available. Internet service obtained on airplanes or in airports will only be reimbursed if the service is needed to conduct Institute business prior to or during a flight and no other option is available.

Telephone

Business calls made while away from the office will be reimbursed. Up to two personal phone calls of reasonable length will also be reimbursed.

Miscellaneous

Costs for miscellaneous business expenses while traveling such as supply purchases, copy/fax costs or postage are generally reimbursable when accompanied by adequate documentation and deemed reasonable by the employee’s supervisor/department head.

International Travel

Individuals traveling internationally on behalf of CIA should comply with the stated travel policy. The following items may be considered reimbursable if they are necessary for international travel:

• Currency conversion or ATM fees while abroad
• Passports, visas and other travel documents
• Inoculations (amounts considered reasonable and customary)

Expense reports should reflect US dollars. Copies of CIA AMEX or personal credit card statements showing the exchange rate from foreign currency to US currency should be included with the expense report. Please use https://www.oanda.com/currency-converter/en/?from=EURto=USDamount=1 or a similar website to calculate the exchange rate for all items paid in cash and include a copy of the page with the exchange

rates used.

Summary of Non-Reimbursable Expenses

Purely personal expenses while traveling are not reimbursable by the Institute. The expenses listed below are NOT reimbursable. This list is not all-inclusive and there may be additional or similar non-reimbursable expenses which are not listed.

• Expenses submitted without proper supporting documentation as required by the IRS
• Celebratory events with no business purpose (e.g. birthdays, wedding showers, baby showers, etc.)
• Gifts and floral arrangements for employees or friends of the Institute not authorized by HR
• Gifts from a department to other offices on campus
• Individual memberships to warehouse stores, clubs or premium memberships to online providers
• Unauthorized trips/conferences
• Donations to other non-profit organizations not authorized by the President
• Raffle tickets
• Credit card interest charges or late payment fees
• Local meals without a legitimate business purpose
• Travel/Accident Insurance
• In-flight purchases including phone charges, snack purchases, WiFi, etc.
• First or business class airfare
• Airline VIP lounge memberships
• Airline upgrades for preferred seating, early check-in fees, etc.
• Frequent flyer program membership/maintenance fees
• Short term and/or valet airport parking fees
• Traffic or parking violations, fines and/or court fees
• Excess baggage charges and charges for personal items (e.g. golf clubs)
• Valet service
• Automobile rental upgrades beyond economy/compact category
• Rental of a 15 passenger van
• Liability insurance costs for rental cars
• Mileage for your normal commute to/from CIA
• Mileage cost in excess of the equivalent airfare ticket price to destination when employee opts to drive rather than fly for destinations in excess of 200 miles
• Physical damage to or loss of property from a personal vehicle
• Rental or purchase of GPS units
• “Deluxe” or “Luxury” hotel rates/hotel room upgrades in excess of standard room
• Extra costs for additional person(s) in room, when not integral to the purpose of the trip
• In room movies/video games
• In room drink/snack purchases
• Personal care items such as toothpaste, shaving needs, haircuts, medications, etc. (Exception may be made for extended international travel).
• Dry cleaning or laundry charges, except when the trip is 6 days or longer
• Optional hotel related charges for health clubs or spas
• Additional lodging expenses resulting from extension of business trip for personal or vacation purposes
• Food/beverage expenditures in excess of the $60.00 daily maximum
• Personal snacks
• Alcoholic beverages
• Expenses related to holding meetings and/or entertaining at a personal residence
• Food/beverage expense occurring when a meal is included as part of a conference/registration fee but is not utilized because employee opts for alternative dining
• Tips in excess of 20%
• Any transportation, lodging, meal or other travel expense incurred by a spouse or other travel companion, when the presence of such person is not integral to the purpose of the business trip
• Cost of entertainment (tours, outings, sporting events, etc.) even if arranged by conference site unless included in the general registration fee
• Excess long-distance charges or personal calls in excess of two per day
• ATM service fees
• Household expenses incurred while traveling, such as lawn maintenance, child care or pet care
• Losses resulting from theft of personal property or funds
• Costs incurred from failure to cancel transportation or hotel reservations

This policy is subject to change at any time. Please review the policy located on my.cia.edu under the Business Affairs tab for changes prior to traveling.