Rice University Policy No. 806

RICE UNIVERSITY TRAVEL POLICY

APPLIES TO ALL RICE UNIVERSITY EMPLOYEES, STUDENTS, AND GUESTS

Overview. Rice University intends to pay individuals traveling on University business for necessary and reasonable expenses of approved University travel. Rice University’s policies are designed to comply with applicable Internal Revenue Service (IRS) rules. These rules allow travel payments to be excluded from income when certain conditions are met.

IRS rules require travel expenses to be documented in a timely manner. If travel expenses paid by Rice are not properly documented or are not documented within a reasonable timeframe, Rice may be required to report these expenses as taxable income.

Each department should ensure that expenditures for this purpose are reasonable and appropriate for an educational institution and that the least costly method of transportation is paid by Rice. For exceptions to coach class airfare, please refer to the Travel Procedures Manual available at the Controller’s Office Web site.

Payment decisions for travel expenses should ensure fair and equal treatment for both travelers and the University. Furthermore, payment procedures must follow the rules of funding agencies whenever their funds are used for university travel. The Travel Policy does not cover entertainment expenses; those payments are governed by the Business Meeting/Entertainment Expense Policy (No. 811). Please refer to the Controller’s Office Web site for detailed procedures, which are not part of this document.

To whom does this policy apply? The Travel Policy applies to all approved travel expenses associated with:

• Employees
• Students
• Speakers
• Consultants
• Job applicants
• Other guests of the University

Where travel costs are charged to a sponsored agreement (grant or contract), any terms of the agreement that are more restrictive than this policy will govern the payment. See Appendix A for additional information on charging travel to sponsored agreements.

When student-athletes receive meals (and/or per diem) while participating in athletic activities, NCAA rules apply.

1. GENERAL GUIDELINES

Rice travelers are responsible for making travel arrangements that comply with this policy. Upon completion of the trip, the traveler is responsible for preparing a timely, complete and factually correct travel envelope/statement following the rules of Rice University's Travel Policy. For non-Rice travelers please see Section 4 of this policy.

Travelers are encouraged to use discounts where available. However, U.S. flag carriers (airlines and ships registered in the U.S.) must be used for all international travel funded by U.S. Government contracts and grants unless certain conditions are met.  (See Appendix A, item no. 3).

An employee pays the personal cost of transportation, lodging and meals for relatives, invited guests, or a spouse or partner unless there is a valid University business reason for the additional person's travel.  In furtherance of University business and due to the especially stringent regulations the IRS has on this issue, prior written approval from the traveler’s dean or vice president is required.

IRS rules require business travel to be documented in a timely manner. Undocumented or untimely submission of business expenses may require Rice to report these expenses as taxable income. Thus, travel expenses should be submitted and approved no later than 30 calendar days after the return from a business trip.

Rice University's business travel accident insurance policy covers faculty, staff and students traveling on behalf of the University. This policy provides an accidental death benefit for all employees and students while on University business. This policy covers domestic as well as foreign business travel.

Please note: The University will not reimburse a traveler for purchasing any additional flight insurance.

Rice University’s auto insurance policy covers faculty, staff and students traveling on behalf of the University.  When traveling within the U.S. and Canada, auto insurance must be declined by faculty, staff and students when renting cars while conducting University business. For foreign travel outside the U.S and Canada, damage and liability insurance should be purchased.

2. TRAVEL EXPENSE RECEIPTS AND PROOF OF EXPENSE

Rice travelers must turn in travel statements for all University travel using either of two methods. The preferred method is the travel envelope, which uses the online travel form. Paper travel statements may also be submitted. Blank envelopes are available from the Payment Solutions department. When a trip has included business meetings and/or entertainment, the traveler must complete the travel and business meeting/entertainment statement expense information. (See the Business Meeting/Entertainment Expense Policy (No. 811) for the definition of business meetings and entertainment.) Detailed receipts for amounts greater than the de minimis level set by the IRS must be submitted as proof of expenses. Except in unusual circumstances, original receipts should be submitted. Deans or vice presidents may set limits lower than the IRS’ de minimis limit in their areas, if desired. Proof is required of the exchange rate used when charges involve a foreign currency.

Current travel procedures, including the current IRS limits, are available on the Controller’s Office Web site.

3. APPROVAL OF TRAVEL

Travel envelopes/statements should be approved by the appropriate reviewer no later than 30 calendar days after the conclusion of the trip.  The business purpose must be clearly stated on the travel envelope/statement. A traveler may not approve his or her own expenses. Travel expenses must be approved by:

• The Principal Investigator (PI) if research funds are being charged, AND
• The appropriate person as noted in the chart below. Note: The approver may never report to the individual for whom the expense is incurred.

Traveler	Approval
Department travelers including Principal Investigators	Department Chair/Head or designee
Department Chair/Head or Director	Dean or division head or designee
Deans and administrators reporting to the Provost	Provost or designee
Provost, Vice Presidents and administrators reporting to the President	President or designee
Vice President for Investments and Treasurer	Controller
President’s Office	Vice President for Investments and Treasurer or designee

When international travel is charged to a sponsored agreement, approval may be required in advance from the funding agency.  (See Appendix A, item no. 2.)  Group international travel requires preapproval from the appropriate dean or vice president.

4. NON-RICE TRAVELERS (SPEAKERS, CONSULTANTS, JOB APPLICANTS AND OTHER GUESTS)

Travelers who are not employees or students of Rice may submit the Rice travel expense envelope/statement to receive reimbursement or may use one of the alternatives listed below.

Transportation and lodging incurred by non-Rice travelers and charged directly to Rice will be paid based on approved vendor invoices submitted by departments. The traveler may also request reimbursement by letter for expenses incurred with required receipts attached. Departments are responsible for ensuring that all expenditures are appropriate and reasonable prior to approval. To comply with IRS regulations, a brief description regarding the business purpose of the trip must be included on the approved documents.

Payment of travel expenses related to faculty and staff recruitment and relocation are governed by the relocation guidelines.

5. CORPORATE CREDIT CARDS

The University has a single credit card program for University travel expenses: the University purchasing card. 

The University purchasing card is a credit card issued to University faculty and staff members for the purchase of routine supplies and expenses, travel, business meeting, or entertainment expenses. Purchasing cards are available through the Payment Solutions department after submitting an approved Purchasing Card Application. Each department is responsible for allocating their expenses to the proper general ledger accounts.

6. TRAVEL ADVANCES

The University's general policy is not to provide travel money (or expense advances) before the trip (a travel advance). Travel advances for expenses may be given only for international travel, students traveling on Rice business, or exceptional circumstances. Should an advance be deemed necessary, the traveler should submit a check request with the appropriate approval from their department. Travel expenses should be submitted and approved no later than 30 calendar days after the trip. Any unused money must be promptly repaid to the university upon completion of the trip.

7. MEALS AND INCIDENTALS

Meals should be reasonable in amount. Government established meal and incidental expense per diem rates may be used, although commingling of actual and per diem expenses on the same trip is not allowed. Per diem amounts must be prorated on day of departure and the day of return for meals not incurred. They must also be adjusted when a meal is provided by another source (including meals provided at conferences).   For international travel, the U.S. Department of State’s daily expense rate limit (also called a per diem rate) should be used as an expense guideline.

APPENDIX A

RESEARCH AGREEMENTS TRAVEL POLICY

All travel charged to a sponsored agreement must follow the regulations of the agency and the terms and conditions of the individual awards.  Some grants and contracts that support research and other activities may include restrictions on travel. Such restrictions may include the need for prior approval from the sponsor, use of U.S. flag carriers, limits on the total amount that can be charged for travel, and compulsory use of government per diem allowances for both lodging and meals. The traveler should check the specific agreement to be charged well in advance of departure to determine if any additional restrictions are applicable. The Research Accounting Office and the Office of Sponsored Research are available for assistance and should be contacted when clarification of any restriction is needed.

In addition to the general Travel Policy guidelines, the following specific conditions apply to travel charged to sponsored agreements:

1. The business purpose section of the travel statement should clearly identify the relationship of the travel to the purpose of the award. When a trip involves multiple purposes the basis for allocating the charges to the research award must be stated.
2. International travel may require prior approval from the funding agency even if listed in an approved budget. Generally, international travel is defined as travel outside the continental U.S., although some sponsors may use a different definition. Check with the Research Accounting Office or the Office of Sponsored Research prior to the booking of the trip.
3. Use of U.S. flag carriers is required for all international travel charged to a federal award unless certain exceptions are met. See the Controller’s Office Web site for additional information on the regulations, including code sharing arrangements.  Documentation of an exception which allows use of a non-U.S. flag carrier on a federal award must be done at the time travel arrangements are made. Such documentation must be included with the support for the travel expenditures.
4. Allowable airfare costs are limited to the lowest available airfare at the time of purchase. Purchases of tickets at the airport or purchases of "next day travel" tickets should not be made except in emergency cases. The Principal Investigator is responsible for assuring that the lowest available fare is booked for all travel charged to the agreement.
5. Lodging costs should be reasonable for the location. Actual costs will be reimbursed with original receipts unless otherwise restricted by terms of the grant/contract to be charged. Contact the Research Accounting Office or the Office of Sponsored Research regarding awards that require lodging costs comply with government daily allowable hotel rates by location.
6. Automobile mileage costs are normally allowed on agreements following the standard IRS mileage reimbursement rate. (See the online travel procedures located at the Controller’s Office website.)  Contact the Research Accounting Office for awards that require use of a different rate.
7. Alcoholic beverages and entertainment are not allowable charges to government grants and contracts. If incurred in the course of travel for government awards, these costs must be separately identified and coded to a nongovernment fund using a general ledger account code for alcoholic beverages or entertainment/alcoholic beverages. Departments may choose whether to combine entertainment and alcoholic beverages in one general ledger code or to track them separately using the general ledger code for alcoholic beverages. In all cases, charges for alcoholic beverages should be reasonable and appropriate for the circumstances of the meeting and for an institution of higher education.
8. Travel reimbursements to independent contractors and other non-Rice employees must comply with this Travel Policy and related procedures.
9. Certain awards require preapproval by the funding agency prior to the commencement of travel. Contact the Research Accounting Office or the Office of Sponsored Research for more information.
10. Business meeting expenses are an allowable research expenditure provided the requirements noted in the Business Meeting/Entertainment Expense Policy (No. 811) are met.

_______________________
David W. Leebron, President

Policy No. 806

April 18, 2007

Issued: September 18, 1970
Revised: March 14, 1975
Revised: December 9, 1977
Revised: November 3, 1986
Revised: August 9, 1993
Revised: July 15, 1999