New Employee Reimbursements Policy
Alan M. West, Assistant Vice President and University Controller
The following is a new policy for employee reimbursements related to the existing University Disbursements directives. The goal of this policy is to better clarify the University’s guidelines for other employee reimbursements – those that do not involve travel or business hosting. The full policy is below, and can also be found on the Finance and Accounting, University Disbursements website at http://www.fa.ufl.edu/directives-and-procedures/disbursements/.
You may contact Randy Staples at firstname.lastname@example.org or Ruth Harris at email@example.com, or call (352) 392-1241 with any questions regarding this policy
E. Employee Reimbursements
The University of Florida reimburses faculty, staff, and others for reasonable and necessary expenses incurred in connection with approved travel or business hosting on behalf of the University. This policy relates to other reimbursements to employees.
Definition: Reimbursement to an employee for other than travel or business hosting expenses incurred in connection with authorized university business. Employee reimbursements should be used for small, out-of-pocket purchases only when the university’s preferred purchasing methods cannot be utilized.
Guidelines: In general, it is the policy of the University that all purchases should be made through UF procurement mechanisms (PO or Pcard). The use of UF procurement mechanisms ensures that the purchase has received the appropriate review for compliance with all pertinent State laws, regulations and University policies, and that the University has achieved the best value.
It is incumbent upon each department to have effective purchasing processes in place that allows for preferred purchasing methods to be utilized. Therefore, it is important that employees utilize normal purchasing and PCard processes (http://www.purchasing.ufl.edu/departments/pcard/default.asp) or that prior to the purchase, the individual seek confirmation that the purchase is, in fact, appropriate for reimbursement by the University.
If department authorities deem that the purchase is unallowable and should have utilized normal purchasing or PCard processes, the purchase should not be processed for reimbursement. Contact Disbursement Services for guidance on the allowability of any transaction.
The following are allowable as employee reimbursements:
1. Allowable purchases should total less than $50
2. Allowable business hosting expenses. This includes all food purchases, luncheons, retreats, and entertainment.
3. In an emergency or when traveling for the University, it may become necessary for a faculty/staff member to pay for materials or services from their personal funds with the expectation that they will be reimbursed by the University for the purchase.
4. Licenses, dues, memberships and submission of research papers/payment for review services.
5. Whenever a PCard is not accepted by the vendor.
The following are NOT allowable as employee reimbursements:
1. IT Equipment. All IT equipment must be purchased using UF procurement mechanisms to ensure all applicable UF IT standards are met;
3. Contractual Services (except with approval from the Director or Associate Director of Procurement Services);
4. Any other commodities or contractual services that are required to be processed on a requisition/PO or PCard.
5. Sales tax that would have been avoided if normal University purchasing processes had been followed (Sales tax must be deducted from unallowable reimbursements.)
Non-compliance with UF policy:
1. First offense – reminder of UF policy.
2. Second offense – allowed with a justification along with a second reminder of UF policy.
3. Third offense – will ask for the monies paid to the employee to be refunded to UF. If not repaid in a timely manner, the amount of the payment will be reported on the employee’s W2 as taxable income.