Allowable Business-Related Expenses

 

Purpose

To identify allowable business-related expenses.

 

Statement

It is LBCC’s responsibility to acquire the materials and services required to perform business-related work. Below are guidelines for allowable and non-allowable expenditures for sundry items:

1.  Dues and Memberships
   1. Professional organizations/civic clubs/chambers of commerce
      1. Personal and institutional memberships in professional organizations may be paid for with college funds when such memberships are directly beneficial to the college and relate to an employee's job.
      2. Memberships in civic organizations and chambers of commerce may be paid for when an employee's college duties require such membership. Approval of the employee's supervisor is required. 
2.  Group Meals Served at Meetings
   1. Business Meals/Meetings
      1. The college will not pay for in-district meals or meals outside the district without an overnight stay, which is generally taxable per IRS regulations unless the meals are associated with the college business.
         1. Hosting Professional Associates
            1. Meals may be paid for with college funds if the main purpose of the meal is the active conduct of college business or the meal occurs directly before or after a substantial business meeting.
         2. Professional Association or Civic Club Meetings
            1. Meals may be paid for with college funds if the employee attends as an appointed college representative.
         3. College Employee Meetings
            1. Meals/refreshments may be purchased with college funds in specified circumstances. Routine operational meetings are not considered allowable circumstances for meals/refreshments unless approved by your Director, Dean, or Vice President. Expenditures should document the unique nature of the meeting/activity. Meals/refreshments will not be purchased with college funds for personal events or entertainment. No alcohol will be purchased for employee meetings with college funds.
         4. Meals may be paid for with college funds if the employee is directed to attend a meeting at which college business is conducted and the meal is a part of the agenda.
         5. Meals may be paid for with college funds if the event, reception, recognition event, or staff development activity, relates to college business.
         6. Refreshments may be purchased with college funds for events that are infrequent, non-routine, and defined as accommodating guests or employees for staff meetings or other special events related to college business.
            1. On-campus meetings/off-campus meetings/out-of-district meetings
               1. Meals may be paid for with college funds if the employee is directed to attend a meeting at which college business is conducted and the meal is a part of the agenda.
               2. Supervisor approval is required.
            2. Hosting professional associates
               1. The college recognizes that situations often arise where prudent judgment and customary practice indicate that furtherance of the college's interests will be best accomplished by incurring the expense involved as host for a college business-related meal. Meals provided for non-LBCC employees to develop a college relationship or to promote goodwill are reimbursable, provided that such meals are furnished in an atmosphere conducive to a business discussion. When applicable, the meal should be paid for and reported by the most senior college employee in attendance. Supervisor approval is required.
            3. Receptions/recognition events/staff development activities
               1. Meals may be paid for with college funds if the event relates to college business. Supervisor approval is required.
            4. Birthdays/anniversaries/personal events/retirements
               1. Meals for these types of activities may not be purchased with college funds. However, a meal for a retirement recognition event may be paid for with college funds. 
            5. Alcohol
               1. No alcohol will be purchased with college funds. 
3. Refreshments Served at Meetings
   1. Business-related receptions/business-related recognition events/guests of LBCC/staff meetings/retirements
      1. Refreshments may be paid for with college funds when an event is a staff meeting or other unique or special event related to college business.
   2. Birthdays/anniversaries/personal events
      1. Refreshments for these types of activities cannot be purchased with college funds.
   3. Alcohol
      1. No alcohol will be purchased with college funds. 
4. Miscellaneous Expenses
   1. Dues and Memberships
      1. Personal and institutional memberships in professional organizations may be paid for with college funds when such memberships are directly beneficial to the college and relate to an employee's job. Memberships in civic organizations, such as Chambers of Commerce, may be paid for when an employee's college duties require such membership. Approval by the employee's supervisor or Clerk or Deputy Clerk of the Board is required.
   2. Subscriptions and Journals
      1. Subscriptions and journals related to the employee's job may be paid for with college funds.
   3. Registration Fees
      1. The college will generate conference registration fee checks upon receipt of an approved request. This is intended to accommodate registration deadlines, which precede the actual event, especially those that provide a discount for early registration. Individuals who pay registration fees may receive reimbursement for the actual cost of registration fees.
   4. Telephone Calls
      1. All necessary college-related business calls are reimbursable. Employees may be reimbursed for business-related calls that appear on the employee’s cell phone invoice. To be reimbursed, a charge specific to the business calls should appear on the invoice, and the employee cannot receive a monthly stipend for business use of a personal cellular phone (see Administrative Rule 5045-03). Cell phone charges shall be submitted monthly on a reimbursement form with a copy of the invoice indicating the business-related calls. Any reimbursement request requires the supervisor, Clerk, or Deputy Clerk of the Board's approval. The College will not make any payments directly to a vendor for an employee’s purchase of a cell phone, plan, or minutes used.
   5. Tipping
      1. Reasonable tipping is a reimbursable expense when associated with college business. Reimbursement for tipping while traveling is covered by the meals and incidental expenses per diem.
   6. Items of Appreciation, Condolence, or Recognition
      1. The college may pay for items of appreciation, condolence, or recognition if the activities/events to be recognized are extraordinary and relate to college business. A supervisor, Clerk, or Deputy Clerk of the Board approval is required. Such purchases shall be infrequent and items purchased shall be of nominal value.
5. Other Items
   1. Miscellaneous items required to support instructional or operational functions may be reimbursed with appropriate documentation and approval.
      1. Items of appreciation, condolence, or recognition
         1. The college may pay for items of appreciation, condolence, or recognition if the activities/events to be recognized are extraordinary and relate to college business. An originator's signature and supervisor's approval signature are required. Such purchases shall be infrequent and items purchased shall be of nominal value.
      2. Subscriptions, journals
         1. Subscriptions and journals related to the employee's job may be paid for with college funds.
      3. Other items Miscellaneous items required to support instructional or operational functions may be reimbursed with appropriate documentation. Supervisor approval is required.
6. Disallowed Expenses
   1. Unreasonable items
      1. The college expects LBCC employees to be prudent in incurring college-related expenditures. Failure to comply with established procedures may result in personal liability to the employee.
   2. Personal items
      1. Personal use items are not allowable for college expenses. It is inappropriate for any LBCC employee to utilize the college purchasing process (purchasing card, purchase order, invoice voucher) for any non-official business purchases. Sanctions may be imposed for violations, including oral or written warnings or reprimands, suspension with or without pay for specified periods, or termination of employment. 
7. Approvals
   1. College-related expenditure reimbursements will be paid only with proper approval through the electronic business process. Reimbursement requests require approval from both the employee and the supervisor of record or designee.
   2. Those approving expenses are responsible for assuring that the reimbursements:
      1. comply with college policy;
      2. have adequate documentation to support the expenditure;
      3. are valid and reasonable; and
      4. reflect minimum expense levels consistent with the accomplishment of college interest. 
8. Documentation
   1. Itemized receipts are required for reimbursement of college-related expenditures. 

 

 

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