Late Expense Reports

[lync...@umn.edu]

I'm wondering how people typically handle expense reports that are turned in past the 60 day deadline. The policy states they should only be approved when there are legitimate extenuating circumstances, so I guess I'm looking for some examples of what would and would not be considered.

As some background, the expense report that I am specifically wondering about comes from the PI and contains a significant amount of travel expenses budgeted for and allowed on the grant. The only real issue with the expense report is how late it was turned in. The traveler indicated that the delay occurred due to being out of the country for an extended period, and subsequently misplacing some of the receipts.

Any thoughts or tips on how people have dealt with this issue in the past would be greatly appreciated.

[Sheila Lem]

I think there's a lot of factors to consider:

-It's within 60 days of the conclusion of the trip.  If he continued to travel past the expense date, make sure it's 60 days out from returning back to the University or to a home base.
-The policy states, "In rare circumstances; which impaired the traveler from meeting the requirements".  I don't consider being out of the country a rare circumstance at the University.  It happens quite frequently.  Internet and technology has helped eliminate some of the logistical issues.  Did the traveler have access to internet and technology?  I would consider not having access to technology being impaired.
-I've found that the approval on the expense worksheet doesn't need to be an ink signature.  Adequately documented email approval from the traveler should suffice when sending the reimbursement request electronically.  Or the traveler could have scanned and sent a signed expense report. 
-Misplacing receipts shouldn't be a factor since there's a checkbox on the form and directions for when a traveler misplaces a receipt.  If there were a lot of receipts that were left at home, did the traveler contact you prior to the 60 days?  I would have had the traveler turn in everything they had available and then turn in the missing receipts as soon as they returned.  However; most major receipts can be provided electronically and receipts do not need to be provided for meals or travel expenses under $25.  Even hotels will usually email you a receipt right away if you contact them. 

These situations should also be approved as extenuating circumstances only after consultation with the Chief Financial Manager for the College or Vice-Presidential Unit.  I would highly recommend consulting your CFM is you have not already.  Likely they have dealt with this type of situation already and their determination would be consistent with how your College or Unit has treated these situations in the past.

Those are all reasons not to reimburse the employee; however there is a clause in the policy that makes the above moot. "Denial of the request would impose a financial hardship to the traveler".  It the requested reimbursement amount is significant, I would consider that imposing a financial hardship.  In that case, you should follow the policy.  The reimbursement would have to be charged to non-sponsored and reported as taxable income.  Even if it's clearly allowable on the project, it cannot be charged there because the employee did not follow policy.

[Jerian Lind]

Sheila makes some very good points - I second that this should be brought to the CFM for review.  How late was the expense report?  If it's only a day or two, and it took that long to obtain all the signatures or get it entered, I would probably let it through as long as the grant in question is still open and can withstand the charges.  At one time, I spoke with Beth Tapp about what part of the reimbursement needs to happen in the 60 days.  She said that the 60 day deadline is when the traveler turns in receipts and has done his/her part to seek reimbursement.  Not at the point of entry or additional signatures, since any delay in those areas is out of the traveler's control.

[k-k...@umn.edu]

A follow up question on the late submission of travel reimbursement request. I have two requests from a PI for travel expenses that are certainly for the grant, they were submitted early June 2016 and are for travel in August 2015 and December 2015, clearly well pas t the 60 day policy. I have not checked with our CFO yet, but want to make sure I understand, since these are clearly out of the U policy timeline, if they are reimbursed and taxed to the employee, can they still be charged against the grant or must they go on non-sponsored?

[k-k...@umn.edu]

Answered my own question! Well documented in policy

[terryk]

I appreciate the dialogue on expense reimbursements past 60 days.....but now how do you all handle pcardreceipts submitted (not processed) past 30 days or 60 days from purchase?

[Carrie Meyer]

Regarding the late PCard receipts/reconciliation, in case people aren't aware, the central PCard Program office helps out by alerting department card administrators to late activity. They do this audit and notification about once per month. They also assist by suspending the PCard so it cannot be used, right around the 60 days late mark. I know that doesn't directly help get the receipts out of the cardholder, but the team at pc...@umn.edu is willing to assist you if you need another voice to pressure the cardholder to provide the information.

[terryk]

Thank you Carrie for your reply.   The restrictions on card holders have been slow coming for abusers over 60 days.

But, with many charges occurring for grants, I am interested in knowing how people have been handling pcards processed after 30 days or after 60 days...Is there a difference in your approach to charges on grants in either benchmark?  When we have 30 day transfer wording on our grants, do you view late pcards an issue?
Thanks.