updated 01/20/05

Cornell University Policy Library --Policy 3.2

UNIVERSITY TRAVEL

Volume 3, Financial Management 
Chapter 2, Travel 
Responsible Executive:  Vice President for Financial Affairs and University Controller
Responsible Office: Disbursement Review and Tax
Originally Issued: December, 1992
Revised: March, 2004
Errors or changes? Email us.

CONTENTS

POLICY STATEMENT

REASON FOR POLICY

ENTITIES AFFECTED BY THIS POLICY

WHO SHOULD READ THIS POLICY

RELATED DOCUMENTS

CONTACTS

DEFINITIONS

OVERVIEW

Introduction to this Policy

First Considerations

Foreign Travel
Travel Charged to Sponsored Projects or Government Appropriations
Transportation
Lodging
Meals
Telephone and Internet Usage

Corporate Credit Cards

Air Requisition Process
Cash
Traveler's Checks
Direct Payment of Travel Expenses
Travel Advances

General Comments

Proper Documentation
Reimbursement
Other Reimbursement Information by Expense Type
Travel/Expense Reimbursement Voucher
Reimbursement Payment

Insurance

Tax

RESPONSIBILITIES

FORMS

Car Rental Preferred Supplier Agreements

Rental Car Insurance
Insurance Coverage from the Rental Car Company
Insurance for International Car Rentals

Recommendations

Voucher Documentation
Non-reimbursable Expenses

POLICY STATEMENT

Cornell University pays for the reasonable business expenses actually incurred by people traveling on official university business.

REASON FOR POLICY

Cornell must meet the reasonable needs of travelers, establish cost effective practices that are consistently applied, and ensure that travel expenses comply with sponsor and regulatory requirements.

ENTITIES AFFECTED BY THIS POLICY

• Endowed Ithaca and contract colleges of the university, excluding the Weill Cornell Medical Colleges in New York City and Qatar, which are covered under University Policy 3.2.1, Travel and Business Expense Reimbursement, Weill Cornell Medical College and University Policy 3.2.2, Travel, Weill Cornell Medical College-Qatar.

WHO SHOULD READ THIS POLICY

• Anyone whose travel is charged to an Endowed Ithaca or Contract College account.
• Employees who authorize travel, make travel arrangements, process travel documents, or have signature authority on accounts.

RELATED DOCUMENTS

Table 1
Related Documents

CONTACTS

Direct any general questions about University Policy 3.2, University Travel, to your unit's administrative office. If you have questions about specific issues, contact the following offices:

Table 2
Contacts

DEFINITIONS

These definitions apply to these terms as they are used in this policy.

Table 3
Definitions

OVERVIEW

Introduction to This Policy

To ensure sound business practices and proper reporting, travel expenses must be in compliance with external regulations, particularly federal cost regulations under OMB Circular A-21, tax regulations under the Internal Revenue Code, and NCAA regulations.

Toward that end, the traveler is responsible for understanding this policy before planning and commencing travel for the university. The traveler must complete and submit appropriate forms in a timely and accurate fashion, accompanied by sufficient documentary evidence to demonstrate that the expense was incurred, reasonable, and business related. Documentation should include information about who, what, when, where, why, and how much.

This policy is divided into the following major sections:

"General Considerations"

"Payment Methods and Travel Advances"

"Documentation and Reimbursement Issues"

"Insurance and Tax"

GENERAL CONSIDERATIONS

First Considerations

Foreign Travel and Advisories

Note: Contact the Office of Risk Management and Insurance for details on evacuation coverage.

If you must travel to countries for which the U.S. State Department has issued a travel advisory, contact the Office of Risk Management and Insurance. You may access the list of current advisories at: http://travel.state.gov/travel_warnings.html.

There is additional health and immunization information on overseas travel available from Gannett Health Center at http://www.sas.cornell.edu/gannett/travel.html.

Note: If you are traveling to a remote site, contact the Office of Risk Management and Insurance for guidance.

Travel Charged to Sponsored Projects or Government Appropriations

A sponsoring agency may have budget or other restrictions and notification requirements. Consult with your unit administrator and the Office of Sponsored Programs about foreign travel because the approval process varies among sponsoring agencies. Foreign travel may require advance approval by the sponsor and most sponsored agreements require travel on US Flag Carriers, regardless of cost considerations.

Notes:

- University procedures pertaining to travel still apply for travel on sponsored projects.

- Federally funded projects are subject to the guidelines set forth in the Office of Management and Budget Circular A-21, Section J. 48, Travel Costs.

- Most units do not charge travel to accounts funded by New York State appropriations. Contact the Office of Disbursement Review and Tax at uco-vouchaudit@cornell.edu for current guidelines if you charge travel to state appropriations.

Transportation

The following segments of this document outline the university's expectation of prospective travelers regarding modes of travel. For related reimbursement information, see the "Documentation and Reimbursement Issues" section of this document.

The traveler should select a mode of transportation that is cost-effective and efficient. If, for other than a university business purpose, the traveler takes an indirect route, or interrupts a direct route, reimbursement for travel costs will be either the actual cost or the costs that would have been incurred by traveling the direct route by the most economical means, whichever is less.

Note: The university will not reimburse the business use of personal aircraft or personal modes of transportation other than vehicles as described specifically in this policy.

The university discourages the use of chartered aircraft and chartered boats. Contact the Office of Risk Management and Insurance before contracting for these services.

Air Travel

When you make business travel reservations, purchase the lowest possible coach airfare that meets your business needs by considering Saturday night stays or other alternatives. Cornell has negotiated discounted rates with USAirways. To be eligible for the USAirways vendor discount, you must purchase your ticket using the air requisition process or by charging your corporate card at the Travel Office or one of the participating agencies (see: http://www.cbs.cornell.edu/travel/).

Note: If your plans change and you cannot use your airline ticket, immediately contact the travel agency that issued the ticket or the airline. If the ticket has value, it must be used for Cornell business.

If the unused ticket has no value, the expenses must be coded as federal unallowable (911X), and cannot be direct-charged to a sponsored account.

You should use the most practical and economical mode of ground transportation to and from airports (e.g., hotel and airport shuttle services, shared ground transportation, etc.).

Airport Parking

If you are on official university business, you may obtain Cornell's parking discount at the Tompkins Regional Airport. To do so, show your Cornell ID at the parking booth.

Car Rentals, Domestic

If driving to your destination is most efficient and cost-effective, you should rent an appropriately sized car.

Note: Contact the University Travel Office for car rental reservation procedures for travelers without credit cards.

To make the car rental process as simple as possible, the university has negotiated special contracts with companies. See the "Appendix A: Car Rentals" Section of this document for additional information.

Note: To receive the special rate and insurance benefits, you must use the university's vendor I.D. number associated with the rental car contract (see the "Appendix A: Car Rentals" Section of this document). These benefits are not available for personal travel.

Caution: For domestic rentals, Diners Club no longer provides primary coverage for CDW/LDW. Travelers should rent from a preferred vendor to obtain this coverage for business travel. Therefore, if you are traveling for the university, and you cannot rent from a preferred vendor, you must accept CDW/LDW.

Car Rentals, International

Review detailed information in the "Appendix A: Car Rentals" section of this document prior to renting a vehicle abroad.

Limousine Service

Travel by limousine is an acceptable mode of business travel when it represents the most efficient and cost-effective method for the trip.

Van or Truck Rentals

Insurance requirements for these types of vehicles differ from those of cars. Contact the Office of Risk Management and Insurance before initiating the rental to make certain you have proper coverage.

Note: Use of 15-passenger vans is prohibited unless you have received approval from the Office of Risk Management and Insurance.

Accidents: Rental Cars

Should a rental car accident occur, immediately contact:

- the rental car company, in accordance with the rental car company's requirements for reporting accidents;

- local authorities, as required;

- your unit administrator;

- the Office of Risk Management and Insurance (by the next business day).

Note: if Diners Club corporate credit card was used as a method of payment, contact Diners Club to determine the insurance coverage that applies.

Fleet Vehicles: Contract College Employees

Faculty, staff, and students of the NYS Contract Colleges at Cornell are eligible to use fleet vehicles for official university travel. Contact Fleet Operations or see University Policy 3.4, Use of Cornell Vehicles, for additional information.

Personal Vehicles

If you use your own vehicle, it is your responsibility to carry adequate personal insurance coverage for yourself, your vehicle, and any passengers. A traveler should review his/her personal insurance coverage prior to using his or her vehicle for business.

Note: Consult with your insurance agent to determine appropriate coverage. The traveler's insurance is the primary insurance coverage when using a personal vehicle for university business.

Accidents: Personal Vehicles

Should an accident occur, immediately contact:

- your insurance company, because the university does not have primary insurance coverage on liability claims;

- local authorities, as required;

- your unit administrator;

- the Office of Risk Management and Insurance (by the next business day).

Lodging

For related reimbursement information, see the "Documentation and Reimbursement Issues" section of this document.

Choose lodging that has reasonable single room rates. The University Travel Office website, (http://www.cbs.cornell.edu/travel), includes information on hotels and motels offering discounted rates to university employees.

Cornell travelers should ascertain whether the hotel grants an educational discount. Some hotels provide a discount based on presentation of a university faculty or staff ID.

You are responsible for canceling hotel room reservations if necessary. You should request and record the cancellation number in case of billing disputes. Cancellation deadlines are based on the location of the property (e.g., Pacific Time Zone when the property is in California).

Note: The university requires receipts for all lodging, whether domestic or foreign. If staying in a private residence, Cornell will reimburse reasonable expenses for a token gift of appreciation.

Meals

Cornell reimburses traveler's meals that are not otherwise paid for or provided. Cornell allows the use of either the receipt method or per diem method. One method must apply for an entire trip. For related reimbursement information, see the "Documentation and Reimbursement Issues" section of this document.

Per Diem Method

The per diem method requires an overnight stay. It is designed for short-term travel during which the traveler eats in restaurants, and generally should not be used when the traveler rents an apartment or other lodging that includes cooking facilities. The per diem method includes incidentals (e.g., tips).

Receipt Method

If the traveler chooses the receipt method, the traveler should submit a meal receipt (e.g., credit card slip, cash register receipt, etc.) for each meal.

Note: If a traveler selects the per diem method but hosts a business meal with others while in travel status, Cornell will reimburse this particular meal based on the receipt. The traveler must reduce the daily per diem for the hosted meal. The per diem adjustment is based on 20% for breakfast, 20% for lunch, and 60% for dinner.

Telephone and Internet Usage

The following segments of this document outline the university's expectations of prospective travelers regarding telephone usage and internet access. For related reimbursement information, see the "Documentation and Reimbursement Issues" section of this document.

You should use a university-issued calling card, corporate credit card, or phone card whenever possible to avoid excessive charges by hotels for telephone service. If you travel routinely, you should request a university telephone calling card from your unit's telecommunications coordinator.

Cornell will reimburse personal calls that are reasonable (generally not more than an average of 10 minutes per day).

The university expects you to use the most economical or efficient means of accessing the Internet when you are traveling.

PAYMENT METHODS AND TRAVEL ADVANCES

Corporate Credit Cards

Travelers should use their corporate credit cards for travel expenses. This is the preferred method of payment because it provides insurance coverage for business travel.

The university's corporate credit card vendors are American Express and Diners Club. (See University Policy 3.4, Corporate Card, for further details).

Contact the administrative office in your unit for the current application procedures.

Air Requisition Process (Cornell Travel Office Airline Tickets)

Note: A unit can use the air requisition process to directly charge travel on a sponsored account provided the travel meets the purposes and period of the agreement.

Caution: The unit is responsible for complying with all sponsor requirements and must transfer costs for unused tickets to an unrestricted account in accordance with University Policy 3.20, Cost Transfers on Sponsored Projects.

Cash

Cornell discourages the use of cash because any loss or misappropriation is not covered by insurance.

Cornell will pay reasonable ATM fees when cash is required for university business travel. You should obtain cash for travel using your corporate credit card (Diners Club only) at an ATM. Note: A PIN number is required. Call Diners Club Customer Service, at 800-234-6377 to select your PIN.

Note: Because our American Express program does not include access to cash, these cardholders may request a Diners Club card for use in ATM machines.

Traveler's Checks

Direct Payment of Travel Expenses

Cornell permits direct payment of travel expenses for group travel.

Caution: It is the traveler's responsibility to ensure that he or she never requests reimbursement for any amount that has been directly paid by Cornell.

Travel Advances

Cornell records a travel advance in the general ledger when a cash payment is made to the traveler prior to official university travel.

Travel advances are provided in the following situations:

- for non-Cornell employees, such as visitors or students;

- for travelers ineligible to obtain a corporate credit card or travelers who have not yet obtained that card;

- when a travel expense bill is due before a trip is taken;

- when the trip requires the use of travelers checks.

Travel advances should be in close proximity to the travel dates. They should be cleared within 30 days after completion of the trip. The timely clearing of advance accounts is the responsibility of the traveler. However, a unit must provide an unrestricted account that will be charged for a travel advance account that is not cleared or otherwise collected.

Caution: The value of an advance that is not properly cleared may result in denial of subsequent advances, disciplinary action, and/or reporting the amount as taxable income to the traveler.

Procedures for Obtaining a Travel Advance

1. Complete a Cash Advance Request Form explaining the reason for the travel advance.

2. Attach a copy of any travel bill due.

3. Sign the Cash Advance Request Form

4. Obtain approval from your unit's authorized signer.

5. Submit the completed form to the Division of Financial Affairs for payment.

Note: By signing the cash advance request form, you agree to submit a Travel/Expense Reimbursement Voucher within 30 days of the completion of your trip. You also acknowledge that failure to do so could result in disallowance of travel advances or reductions in reimbursements for other travel expenses in the amount of the advance.

Any advance that is not used for the trip must be returned to the university immediately after travel. If a trip is cancelled, the unused advance must be returned immediately and deposited to the travel advance account. You may not clear the advance with expenses for trips other than the trip identified with the cash advance request form.

Caution: Failure to account for advances properly can or will result in the suspension or cancellation of advance privileges.

DOCUMENTATION AND REIMBURSEMENT ISSUES

General Comments

Proper Documentation

You are responsible for providing sufficient documentary evidence to support business purpose and to substantiate all expenses. Documentation should be in the form of original bills or receipts, and must include the name of the vendor, location, date, dollar amount of the expense that was paid or incurred by the traveler, and a description of goods or services received. You should describe the business purpose in terms that can be easily understood by an internal or external reviewer.

Receipts (credit card slips, invoices, etc.) are generally the best documentation to support a request for reimbursement for travel expenses. If the receipt does not include a dollar amount, description of the good or service purchased, or other key information, you should provide the required information.

Note: Cornell does not require receipts for miscellaneous travel expenses below $75, although the traveler is still required to indicate the nature of the expense, the date, the location and the dollar amount. Meals and lodging are not miscellaneous expenses. See meals and lodging sections in this policy for receipt requirements related to those expenses.

Reimbursement

In general, you will be reimbursed for travel expenses that are ordinary, necessary, reasonable, and actual. For the purposes of this policy, per diems are considered actual expenses. Listed below are some guidelines that will assist you in determining what expenses will be reimbursed. See "Appendix B" for a list of specific non-reimbursable expenses.

Timing of Event and Reimbursement

Reimbursements for meals, lodging and other expenses will normally be limited to expenses incurred during the meeting, conference or other business activity attended by the traveler, and a day prior to or after this event. However, expenses incurred on additional days may be reimbursed if extending the period results in reduced airfare sufficient to cover the additional meals, lodging and other expenses. Provide information to justify savings.

Partial Reimbursement

If your expenses are partially covered by another organization, Cornell may accept copies of receipts in place of originals. The voucher must include the name of the organization that is paying the partial reimbursement, what is being reimbursed, and the amount reimbursed.

Shared Travel Expenses

We understand that shared meals and taxi rides are common reasons to share business expenses. The payment request for all shared business expenses must include the name(s) of the other business traveler(s) and the amount paid on behalf of the other traveler(s). When members from the same unit travel together, the most senior member should pay the expenses.

Other Reimbursement Information by Expense Type

This segment of the policy contains reimbursement guidelines, organized by expense type.

Air Travel

Cornell does not reimburse for tickets acquired with frequent flyer miles.

If you purchase premium airfare, include a letter of explanation approved by the dean of your college, university vice president, vice provost, or direct designee. Otherwise, you will be reimbursed for coach airfare.

Note: This letter is not required on international flights with flight time greater than six hours if the additional expense is permitted by the funding source.

Costs in excess of coach fare cannot be charged to a sponsored award and must be coded as federal unallowable (911X).

Family/Spouse/Companion Travel

In general, the university will not reimburse travel expenses incurred by an employee's spouse/companion accompanying the employee on a business trip, although some exceptions apply. To qualify for spouse/companion reimbursement:

- your dean, vice provost, vice president, or his or her direct designee must approve the companion's business travel in advance (this approval must be attached to each voucher); and,

- there must be a bona fide business purpose directly benefiting the university for taking your spouse/companion.

Note: When the traveler is a dean, vice provost, or vice president, approval is required from the CFO, Provost, or President, as applicable.

Foreign Travel

Caution: If foreign travel exceeds one week, the IRS requires evidence that business activities constituted at least 75% of the total time away from home. The traveler should document the daily business activities.

Currency Conversion

When you pay for expenses in foreign currencies, you are reimbursed in US dollars at the actual exchange rate for the travel period. A foreign currency exchange receipt or a credit card billing statement can support your exchange rate.

All expenses should be recorded on the Foreign Travel Expense Worksheet in US dollars, with the currency conversion rate clearly noted on the form. Show the actual cost of the expense in the currency it was purchased in and the exchange rate you used.

Note: Use oanda.com as a resource to calculate foreign exchange rates. You may use average rates for the travel time period.

Translating Receipts

Receipts in foreign languages should be translated if the type of expense is otherwise not clear.

Lodging

Receipts are required for all lodging (including lodging in foreign locations); the university does not allow the use of a per diem allowance for lodging.

Caution: Cancellation fees must be coded with a federal unallowable object code.

Meals

The university will reimburse meal expenses that are not otherwise paid for or provided using either per diem rates or actual receipts.

Per diem Method

The per diem method requires an overnight stay. It is designed for short-term travel during which the traveler eats in restaurants, and generally should not be used when the traveler rents an apartment or other lodging that includes cooking facilities. The per diem method includes incidentals (e.g., tips).

If this method is selected, it must apply to the entire trip. The university will reimburse using the U.S. General Services Administration's published list of per diem rates set by the federal government and available from a link at http://www.payments.cornell.edu/Per_Diem_Rates.cfm . The per diem rate is based on the rate in effect on the dates of the trip and the location of the night's lodging. It is updated at stated intervals by the federal government. The meal per diem rate includes meals, beverages, tips, and taxes .

See information in the "General Considerations" section of this document about reimbursement for hosting business meals with others when the traveler has elected the per diem method for the trip.

Note: For the day of departure and day of return, the reimbursement rate is limited to 75% of the per diem rate based on the location in which the traveler is most likely to incur the meal expense.

Note: The traveler should reduce the per diem for any meal otherwise paid for or provided (20% for breakfast; 20% for lunch; 60% for dinner).

Receipt Method (Actual Expenses)

If this method is selected, it must apply to the entire trip. The university will provide reimbursement for meals based upon original receipts. Receipts such as credit card slips, cash register receipts, etc. should be provided for each meal for which you are seeking reimbursement, even for meals under $25.00. Use a federal unallowable object code for alcohol.

Note: If the traveler is not able to obtain a receipt for a particular meal, the traveler should provide the date, establishment, location, meal, actual dollar amount, and a brief explanation of why the receipt was not provided.

Non-employee Travel

The university will pay the travel costs of non-employees (job applicants, lecturers, volunteers, and other visitors) when approved by units.

Generally, non-employees traveling for the university are required to comply with this policy.

Caution: If you have engaged the services of an independent contractor, travel expenses should be part of the overall fee reflected on the vendor's invoice. Do not process a travel reimbursement request for an independent contractor unless this treatment is necessary to meet the requirements of an external sponsor. If that is the case, note that information on the voucher.

Other Means of Transportation

The university will provide reimbursement for other commercial means of transportation such as train, bus, or boat. Reimbursements will not exceed the cost of reasonable coach airfare or other reasonable transportation costs to the same destination.

Personal Travel Combined with Business Travel

The university will only reimburse for the business portion of a trip. You must provide evidence to support the business portion of the trip and the allocation between the business and personal expenses. Obtain a quote at the time of ticketing to document the incremental costs that will be treated as personal expenses and include it with your Travel/Expense Reimbursement Voucher.

Personal Vehicles

The university will provide reimbursement for business usage of personal vehicles based on the Internal Revenue Code's allowable reimbursement rate for business miles (which includes gasoline, oil, repairs, and insurance costs of operating a vehicle). Business miles are based on the most direct route.

Note: The IRS mileage rates used for moving to a new job or for activities as a volunteer for a charitable organization are different from the business mileage rate.

If you request reimbursement for the use of a personal vehicle, provide the following on your Travel/Expense Reimbursement Voucher:

- the purpose of the trip;

- the dates of travel and destination;

- total business miles.

Caution: The university will not provide reimbursement for a) repairs to your personal car, even if these costs result from business travel, or b) travel between a personal residence and your regular work location.

Caution: A traveler should review his or her personal vehicle insurance coverage prior to using the personal vehicle on a business trip, because the traveler's insurance is the primary insurance coverage.

Recruitment

Units must authorize travel for prospective employees and their families. Reimbursement for authorized travel expenses such as airfare, hotel, and meals incurred during the recruitment process are not taxable to the prospective employee. The recruitment process ends once the recruit accepts an offer. Subsequent visits to the individual's new work location (for house-hunting, etc.) are generally treated as taxable income.

Note: Student recruitment costs should be coded as "federal unallowable" unless charged to an account that is already coded as "unallowable."

Moving

Reimbursement for relocation of newly recruited regular employees is authorized at the unit level. Cornell purchasing policies require a purchase order for moving companies. Purchasing has negotiated preferred supplier agreements with moving companies for household goods.

Caution: The IRS classifies payments for "indirect moving expenses" as taxable wages (e.g., house hunting trips, settling-in costs such as temporary lodging to a new work site, etc.).

Note: Many units provide a one-time payment through Payroll for settling-in costs as an administratively simple solution for providing indirect moving expenses.

The IRS mileage reimbursement rate for "moving" is lower than the reimbursement rate for ordinary business travel.
Information related to the taxability of recruitment and moving expenses is available at http://www.payments.cornell.edu/Moving_Reimbursements2.cfm.

Caution: Payments to students to support their move to Ithaca should be classified as awards and should be processed through the financial aid system.

Sabbatical and other Extended Travel

Cornell does not reimburse for long-term lodging, meals, or daily transportation expenses while at the work site associated with sabbatic leave or other extended leaves. Housing allowances and other living allowances should be processed through the payroll system.

Note: Cornell will reimburse for short-term business trips for research, conferences, and meetings during the sabbatical or other extended travel.

Student Travel

Units may reimburse students for mission-related educational travel such as to attend a conference, or visit a field site or laboratory facility. In most cases, such reimbursements are classified as taxable travel awards.

If reimbursement is requested, documentation of the travel purpose must be attached to the travel expense report.

Caution: There are special reporting and withholding requirements for travel awards to foreign students.

Telephone Calls

The university will provide reimbursement for the incremental cost of business calls, but not for basic coverage for personal cell or land phones. You must document the business purpose for the long distance phone calls.

Note: Cornell will reimburse personal calls that are reasonable (generally not more than an average of 10 minutes per day).

Travel Time Pay for Hourly Employees

For information on compensation for non-exempt (overtime pay eligible) employees, consult University Human Resource Policy 6.7.13, "Travel Time as Time Worked" or contact the Office of Human Resources (see the "Contacts" section of this document).

Travel/Expense Reimbursement Voucher

The Travel/Expense Reimbursement Voucher ("voucher") is the method by which you will seek reimbursement for approved and allowable travel on behalf of the university. No matter who completes or approves the voucher, the traveler is responsible for compliance with university policies and grant or contract terms, and for its accuracy.

Timely Submission

Vouchers should be submitted within 30 days of the completion of each trip.

Note: If you are on extended work assignment, arrange to file vouchers at least monthly.

Caution: Business expenses older than 6 months require additional approval (see University Policy 3.14, Business Expenses).

Traveler's Signature

The traveler must sign and date the voucher. The traveler must attest to the accuracy of the charges and that the expenses claimed are not being reimbursed from another source. This signature is mandatory for Cornell faculty, staff, and students.

Note: Cornell will accept a traveler's signature on a supporting schedule rather than the voucher but only if:

- the dollar amount and travel information on the supplemental schedule agrees exactly with the dollar amount and information on the face of the voucher; AND

- the traveler signs the supplemental schedule stating that the costs were actually incurred and he or she is not otherwise claiming the expenses or being reimbursed from another source.

Caution: Falsely claiming expenses may subject the traveler to disciplinary action, or civil or criminal penalties.

The Division of Financial Affairs may accept e-mail or faxes from visitors that support the dollar amount of the reimbursement and an indication that the traveler is not otherwise claiming the expenses or being reimbursed from another source.

Authorized Signature on Account

- Authorized account signer(s) must have signature authority for the account being charged.

- Authorized account signer(s) is responsible for ensuring that all approvals have been obtained for travel expenses.

Note: Those approving travel expenses must have sufficient knowledge to evaluate the business purpose of the trip.

- Authorized account signer(s) cannot be the traveler.

- Authorized account signer(s) must not be in the reporting line to the traveler.

Caution: Supervisors must review all travel .

Note: If expenses are shared by multiple Cornell units, one voucher should be processed with the approvals of all units covering the expenses.

Reimbursement Payment

The Division of Financial Affairs will generally send reimbursement of approved expenses to an employee within ten working days of its receipt of the voucher.

Direct deposit of travel reimbursements is available for employees receiving direct deposit of their payroll checks. Sign up for direct deposit at: http://www.payments.cornell.edu/APdirect_deposit.cfm. Travelers eligible for this method of payment are encouraged to sign up in order to expedite the transfer of funds from Cornell to their personal accounts.

INSURANCE AND TAX

Insurance

Cornell provides travel insurance for its employees' trips, from departure to return. Cornell employees can obtain current information on business travel insurance and travel emergency services at http://www.risk.cornell.edu/

Personal Property Insurance

The university does not maintain insurance for loss or damage to personal property during official university travel. Therefore, travelers should seek reimbursement through their personal insurance companies or directly from responsible parties.

University Property Insurance

The university does not automatically insure Cornell-owned equipment. An individual traveling with university equipment should contact his or her administrative office to discuss the need to insure Cornell property that will be taken on business trips (e.g., laptop computer). When required, the unit administrative office will contact the Office of Risk Management and Insurance for additional guidance.

Tax

Travel expenses are often subject to sales taxes, occupancy taxes, gross receipts taxes, excise taxes, or value added taxes. The tax laws vary by country, state, and locality.

New York State Sales Tax and New York City Occupancy Tax

Travelers on Cornell business should request an exemption from New York Sales Tax and New York City Occupancy Tax. They should provide vendors in New York with Cornell's exemption certificate (ST 119.1) and use their American Express or Diners Club corporate card. Some vendors will not grant an exemption if the traveler uses a personal credit card. Form ST 119.1 is used for both New York sales tax and New York City Occupancy Tax. Contact your business service center office or uco-tax@cornell.edu for a copy of this certificate.

Caution: Exemption certificates must never be used for personal expenses, including personal travel expenses. This is important to remember when combining a business and personal trip.

Exemptions in Other States and Countries

Other states and countries generally will not grant a tax exemption to an individual business traveler from New York State.

Note: If you are arranging group travel, contact uco-tax@cornell.edu for additional information on exemptions.

Reimbursement for Sales Taxes and Other Travel-related Taxes

The university expects all travelers to seek exemption from taxes whenever applicable. It understands that vendors are not always willing to grant an exemption. The university will reimburse taxes on travel-related expenses without requesting additional information.

Payments Reported as Taxable Income

The university reports payments as taxable income when tax law requires this treatment. Taxes on the value of the travel will be withheld from the employee's paycheck. The most common instances in which taxable income is likely to occur are:

- payment for expenses that do not meet IRS accountable plan rules;

- payment for family/companion travel;

- payment for lodging at the traveler's principal place of business (generally Ithaca);

- payments for any travel expense that represents an indirect moving cost (e.g., house-hunting visits).

Payments to Foreign Nationals

Payments to foreign nationals for business travel do not require any additional information related to the traveler's foreign status.

Note: Other types of payments to foreign nationals (including honoraria) are subject to complicated immigration and tax laws and regulations. See detailed information at: http://www.payments.cornell.edu/For_Foreign_Nationals.cfm or contact uco-tax@cornell.edu for guidance.

RESPONSIBILITIES

The major responsibilities each party has in connection with University Policy 3.2, University Travel, are as follows:

Table 4
Responsibilities

FORMS

When you take a trip on university business you will need to use one, some, or all of the forms listed in the table below.

Table 5
Forms

APPENDIX A: CAR RENTALS

Car Rental Preferred Supplier Agreements

The university has a preferred supplier agreement that designates Hertz the primary vendor for all local, nationwide, and international rentals. Therefore, you should use Hertz whenever possible. Enterprise has been designated as a secondary vendor for upstate New York. To get the preferred supplier benefits from Enterprise, pick up and return the car to Buffalo, Rochester, Syracuse, Cortland, and/or Ithaca. When you use a preferred supplier you receive negotiated discounts for the vehicle (see "Table 7," below).

Caution: Trucks and some specialty vehicles are not included in the university's corporate agreements. Contact the Office of Risk Management and Insurance before renting these vehicles.

Note: When renting a vehicle in New York State, you may be required to present the New York State Tax Exemption Certificate ST 119.1. You can obtain this certificate by contacting your business service center or the Office of Disbursement Review and Tax, at uco-tax@cornell.edu.

When you rent from either of these companies, provide them with the appropriate Corporate I.D. number, from the table below.

Table 6
Rental Car Corporate I.D. Numbers

Rental Car Insurance

When you rent a passenger vehicle, there are several types of insurance coverage to consider, as detailed below. Some are required, and others are not reimbursable. See Table 7, below, for a summary of this coverage.

Collision or Loss Damage Waiver (CDW or LDW)

REQUIRED

This type of insurance protects you against damages you might cause to the vehicle being rented.

1. If you rent from a preferred supplier and submit the rental car corporate I.D. number for that supplier, insurance is provided to you at no additional cost for domestic rentals for business travel (see Table 7, below, for more specific information and exceptions).

2. If you will not receive coverage from the rental car company, as in the case of some international rentals or a non-participating Hertz licensee (see Table 7, below), YOU MUST PURCHASE THIS COVERAGE. This expense is reimbursable.

Liability Insurance (LI)

REQUIRED

This type of insurance protects you and the university against claims made by third parties, and is generally provided to you with the rental vehicle at no additional cost. Ask if it is supplied. If it is not, purchase only the basic liability coverage, rejecting any "additional" or "excess" coverage offered to you. Basic liability coverage is a reimbursable expense, if not provided automatically.

Personal Accident Insurance (PAI)

NOT REIMBURSABLE

Employees traveling on Cornell business are covered by Workers' Compensation. Therefore, do not purchase this type of insurance. If you do, you will not be reimbursed for this expense.

Personal Effects Insurance (PEI)

NOT REIMBURSABLE

This insurance covers personal property (e.g., jewelry, luggage, etc.). This type of insurance is not reimbursable, although you may wish to purchase it at your own expense.

Note: For more information on insurance coverage and rental vehicles, Contact the Office of Risk Management and Insurance.

Insurance Coverage from the Rental Car Company

When you are renting a vehicle from one of the university's preferred suppliers for Cornell business, and you have provided the vendor with the Corporate I.D. Number above, you will automatically receive from the rental car company certain insurance benefits, detailed in Table 7, below.

Table 7
Liability, CDW, and LDW Insurance Coverage Automatically Provided by Rental Car Company When a Vehicle is Rented through One of the University's Preferred Supplier Agreements

* A small percentage of Hertz locations are non-participating licensee locations and do not offer the benefits listed above. Travelers should check with the booking agent and verify that they get the benefits listed above. If no benefits are provided at these locations, you must purchase the basic level of liability insurance and CDW/LDW coverage.

Insurance for International Car Rentals

The insurance laws in each country are different. In some cases, insurance purchase is mandatory. It is your responsibility to investigate your obligations for insurance coverage before you leave the United States. The university's corporate contract with Hertz only provides limited insurance for international rentals. Therefore, there may not be an insurance advantage to using this company.

Note: Contact the Office of Risk Management and Insurance if you have questions about International Rental Car Insurance.

If you use your corporate Diners Club card for international rentals, CDW/LDW is provided if all of the following conditions are met: a) the rental car agreement is executed in your name and signed by you; b) the entire rental car fee is charged to your Diners Club corporate card; c) you decline, at the time of rental, any additional collision damage coverage available from the rental car company; and d) in the event of any claim, you submit a claim form in a timely fashion.

Caution: You should submit a claim form immediately after any damage occurs.

APPENDIX B: TRAVEL EXPENSE--RECOMMENDATIONS, DOCUMENTATION, AND NON-REIMBURSABLE EXPENSES

Recommendations

VOUCHER

Voucher Information

• traveler's name;
• traveler's home address;
• traveler's social security number (u Note: necessary for vendor file maintenance. If traveler is foreign and does not have a federal ID number, indicate "NA/Foreign.");
• method for payment (check or direct deposit if applicable);
• clear and adequate explanation of business purpose.

Voucher Signatures

• traveler's signature;
  Note: We will accept a traveler's signature on a supporting schedule as sufficient if both of the following conditions exist:
  • the dollar amount and travel locations on the supplemental schedule agree exactly with the face of the voucher; AND
  • the supplemental schedule includes the attestation by the traveler that the expenses were actually incurred and that he or she has not otherwise claimed or been reimbursed for the expenses.
• we will accept e-mail signatures only from visitors. We require original signatures for faculty, staff and students.
• account signature: must be Cornell employee(s) with signature authority on the accounts being charged.
  

Voucher Documentation

General Information

• attach original receipts and other supporting documentation to an 8 ½ x 11 piece of paper;
• review documentation for name of vendor, location, date, items purchased dollar amount, and business purpose;
• use the foreign travel supplementation schedule for foreign travel, available at the Payment Services and Tax web site. Provide information on daily business activities for any trip that exceeds one week;
• convert basic information on any foreign language receipts into English; (location, what purchased...)
• translate foreign currency into U.S. dollars based on conversion rates at time of travel (average rates are acceptable);
• organize receipts by categories that correspond to the categories on the travel voucher;
• assign a number or letter to each receipt that links the receipt to the voucher and/or any supplemental summary schedules the unit uses;

  Examples of Proper Documentation

• original air or rail passenger coupon or other proof of costs;
• receipt for ticketless travel, or a boarding pass and a copy of your itinerary;
• receipts for all meals if traveler elects the receipt method;
• receipt showing food and beverages for hosted meals regardless of the dollar amount;
• itemized hotel bill adjusted for personal expenses (incremental room costs for additional occupancy if not business related, movies, etc.);
• rental car receipt and credit card slip (some rental car receipts do not provide dollar amounts charged);
• web receipts, confirming e-mails, and other documentary evidence that the trip took place;
• receipts for all miscellaneous expenses $75 or more;
  Note: If a miscellaneous expense is under the receipt threshold, you must still meet the accountable plan rules by indicating the amount, type of expense and business purpose: who, what, when, where, and why.
• quotation for airfare incremental costs and/or other incremental costs when personal travel is part of business travel.

Non-reimbursable Expenses

You will not be reimbursed for the following miscellaneous expenses. Contact uco-vouchaudit@cornell.edu if you need to discuss an exception.

• airline/car rental upgrades;
• airline/Cornell Club or social club membership dues;
• babysitting or childcare costs;
• car repairs/routine maintenance or locksmith charges;
• clothing, luggage, briefcases;
• credit card delinquency fees/finance charges/annual fees;
• duplicate insurance on rental vehicles (CDW-See Rental Car Insurance);
• expenses for travel companions/family (unless approved by Dean or VP);
• frequent flyer miles;
• health club facilities, saunas, massages;
• helicopter services for airport transfers;
• kennel fees and pet care for pets while on travel status;
• loss/theft of cash;
• loss/theft of personal property (lost baggage, etc.);
• magazines, books, newspapers, or movies;
• non-compulsory health insurance coverage (annual fee);
• optional travel or baggage insurance;
• parking or traffic violation tickets;
• personal accident or property insurance;
• personal entertainment/grooming/gifts/souvenirs;
• trip cancellation insurance.

Caution: This list of non-reimbursable expenses is intended to be representative, not comprehensive.

*Cornell must pay the vendor directly with a Cornell check; the employee does not qualify for exemption even if the employee uses a corporate credit card.