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VP for Finance & Treasurer
University of Pennsylvania
Suite 731 Franklin Building
3451 Walnut Street
Philadelphia, PA. 19104

215.898.9844 (Phone)
215.573.6392 (Fax)

[ Financial Policy Manual ]

2353 TRAVEL AND ENTERTAINMENT REIMBURSEMENT POLICY- ADVANCES
Effective: July 1, 2008
Responsible Office: Purchasing Services
Approval: Chief Procurement Officer
View PDF Version

Purpose

This document describes the limited circumstances under which an individual may obtain travel and entertainment (T&E) related funds to be used in the future (called a T&E Advance) and the related documentation and reconciliation requirements that must be strictly followed.

Documentation and reconciliation requirements and related timelines have been designed to meet IRS Accountable Plan rules (See 2351 for more information). While the rules are too voluminous and complex to detail, the IRS requires an employer to establish and consistently administer an "accountable plan."

Other policies are provided for specific travel and entertainment (T&E) topics in the policy number series 2351 through 2370 and are listed at 2351.1 Travel and Entertainment Reimbursement- Detail Listing.

For International Project/Program Advances over extended periods of time see Policy 2353.1.

Scope

The T&E policies and procedures apply to all individuals, including employees, students, and non-employees, traveling and entertaining on behalf of the University and seeking reimbursement for related expenses from the University regardless of the funding source.

Traveler and Entertainer Responsibility

Travelers and entertainers can request T&E Advances only when circumstances are such that other payment options (See Policy 2352 for more information) are not feasible.

Travelers and entertainers must document in writing the extenuating circumstances that preclude the use of other payment options and obtain approval at the designated approval level. (click here for the Advance Justification form).

As a general rule, travelers and entertainers should document the business use of any advanced funds and return any excess funds received within ten (10) days of the end date of the business activity.

Responsibility of Authorizers

The TAC (Transaction Authorization Card) holder assists the travelers and entertainers, as well as their higher level approver, with understanding and complying with the process outlined below and ensures that all documentation requirements have been met prior to submission of any advance requests to the central processing organization.

Policy

An Advance is the payment of funds to an individual to be used in the future during an authorized trip, project or event.

1. T&E advances will be issued only under circumstances where other payment options as described in Policy 2352 are not feasible. For example:
   
   
   1. T&E advances can not be requested for airline tickets which can be obtained through the Penn desk at American Express Travel.
   
   
   
   2. T&E advances can not be requested for any expenses that can be charged to the University’s Corporate American Express card or other personal credit cards. This includes train tickets, conference registration fees, hotel deposits, meals and other ground transportation options.
   
   
   
   3. In the unusual circumstance whereby the traveler or entertainer is unable to obtain and use an AMEX card or other personal credit cards, the University will advance monies to or make direct payments on behalf of that individual.
   
   
   


2. As a general rule T&E advances should not be used for small amounts of personal cash that may be used to pay for taxis, tips, refreshments, gas or other incidentals.



3. T&E advance requests must include a detailed breakdown of the anticipated expense and an explanation as to why other payment options cannot be used. Cash advances may only be obtained within five days of the planned trip or event and are limited to $200. Advances over $200 must be requested within one month of the date of the trip or event and not less than ten (10) days prior to the date of the trip or event to allow the necessary processing time to issue a check.



4. To ensure timely reporting of travel expenses and to comply with the IRS accountable plan rules, all advances should be accounted for on a Travel & Entertainment Reimbursement (C-1) form and any excess funds received should be submitted to the central processing organization within ten (10) days of the ending date of the business activity. Absent special circumstances described below, submission should be no later than thirty (30) days after the ending date of the business activity.



5. Special circumstances that may require an extended period of time for submitting advance related documentation include:
   
   • Extended personal illness
   • Death in the family
   • Unanticipated leave of absence
   • Travel outside the country for an extended period of time, if documentation can not be readily sent to Penn.
   
   

   Special circumstances must be documented in writing on an Advance Justification (C-7A) form and approved by the head of the school or center (or their designated representative).

6. Failure to account for a Travel Advance and return any excess funds within one hundred and twenty (120) days will result in the following actions being taken:
   
   • Unreconciled advances to employees will be treated as taxable income and included on a W-2 form (subject to withholding of employment taxes) or on Form 1042-S (subject to section 1441 withholding).
   • Unreconciled advances to students will be charged to their bursar bills.
   • Denial of any additional advances.
   • Other disciplinary and collection action that may be required.

Click here for Chapter 6 in the Procedure Manual. How to Request a Travel Advance