Cash Expenses. via the University of Maryland College Park Foundation. are requested by the specific history holder in assorted schools and sections at College Park. Please use the Disbursement Request Form in Appendix H.

Control Objectives: To guarantee that hard currency is disbursed merely upon proper mandate supported by the appropriate certification. is for valid concern intents. and is decently recorded. all expenses must:

• supply a direct benefit to a school. institute. bureau. or plan ; • decently reported for revenue enhancement intents ; • used in conformity with any giver limitations

General Guidelines

Accountable Plan:

The Foundation has an “Accountable Plan” . The term “Accountable Plan” was developed by the IRS to put Forth regulations. which define legitimate disbursal reimbursements.

A qualified Accountable Plan requires all outgos to

• Have a bona-fide concern intent

The IRS may see a expense as supplying a personal benefit if there is any uncertainty refering its concern intent. Even though in some instances the concern intent may be implied. it must be specifically documented to go through IRS examination.

Paying for or reimbursing for munificent or excessive disbursals in unacceptable. These footings are used in IRC Sec 162 and are repeatedly used in IRS certification. normally with a statement that these disbursals are non-deductible. The Foundation will find at its exclusive discretion either non to pay or reimburse or to cut down payment petitions for disbursals. which are unreasonable.

• Be decently substantiated

The Foundation requires original grosss in the instance where an employee is reimbursed for a part of the disbursals from University beginnings. In these cases. a transcript of the reception and the State reimbursement signifier will be accepted. Otherwise. the Foundation will non reimburse for disbursals. which lack original grosss.

Credit card statements are by and large insufficiently detailed to supply equal back uping certification. Original grosss for recognition card purchases are gettable from the seller and should ever be attached to the cheque petition.

Reconstruction of records is allowable if masters lost through fortunes beyond the taxpayer’s control. such as fire. inundation. etc. There may be some instances in which the Foundation will reimburse a individual for bona fide concern disbursals when grosss have been lost. but the reimbursement will by and large be included as nonexempt compensation.

• Be accounted for on a timely footing

The Foundation will non reimburse for outgos more than six months old. However if a individual receives a travel progress. IRS guidelines are more rigorous. All travel progresss must be accounted for within 60 yearss. ( See travel reimbursement processs below. Subtract the sum advanced from your requested reimbursement or remit a cheque made collectible to the Foundation with a non-gift sedimentation signifier if your progress exceeds the disbursals ) .

Under Reg. 1. 62-2 ( degree Fahrenheit ) an “Accountable Plan” must necessitate individuals to return within a sensible period of clip the sums reimbursed that exceeded substantiated concern disbursals ( progresss ) . Reg. 1. 62 ( H ) states that if a company has an “Accountable Plan” but the individual does non return extra sums within sensible clip. the sum. which is nonexempt. is reported as compensation to the individual.

Procedures

Expense Requests

All petitions for expenses must be on a Disbursement Request Form – Appendix H. The signifier must be completed in its entireness.

• Detail the intent for which the financess are to be used. ( i. e. . usage for stuffs to be purchased. ground for meeting and with whom. See subdivision on Accountable Plan for more elaborate direction for travel and other types of reimbursements. ) • Original back uping certification must be attached ( i. e. elaborate bills or grosss for all disbursals over $ 25. for university employees a transcript of sanctioned Out-of State Travel mandate ) . Balance due statements are non acceptable.

• Two signatures are required – the petitioner and the approver. The approver must be one of the two individuals who are listed on the history understanding signifier as holding signature authorization. However. if the cheque is to be made collectible to one of those individuals. that person’s supervisor must subscribe the signifier. It is critical to understand that their signature serves as enfranchisement of the properness of the requested outgo to the best of their cognition and belief

• A self-addressed return envelope must be enclosed if the cheque is to be returned to the arising office. or a petition. “Please Mail Directly to Payee” noted on the signifier if the cheque is to be sent to the seller. If the section chooses to administer the cheques straight to the seller so for internal control. person without entree to the cheques should accommodate the history.

If the signifier is uncomplete of its losing pertinent back uping certification. the losing information will be identified and the petition returned to the transmitter.

Disbursement Request Forms received at the UMCPF’s Business Office by 1:30 P. M. Friday will normally be available the undermentioned Wednesday. Because process requires all petitions be reviewed anterior to look into composing. petition will be processed until the undermentioned hebdomad.

The foundation will non reimburse for:

• Personal disbursals i. e. repasts. room. travel for a partner or household. or when non on bona-fide concern ; • Purchase and/or care of equipment located at a place or other off-site location • Political parts

• Questionable points – those non in conformity with policies and grant demands established by USM. the granting bureau. or the Foundation. or those that may give the perceptual experience of abuse of charitable financess ) • First or concern category air hose tickets. except for abroad travel. otherwise must be pre-approved due to palliating fortunes ; • Loans to university employees or any other single • Payments of mulcts. punishments or finance charges

• Contributions to other charitable organisations unless it is a de minimis sum given as an look of commiseration or understanding

Travel Reimbursements

An itinerary with a brief description of the concern activity for each twenty-four hours must be provided. If reimbursement petition relates to go toing a conference. a transcript of the booklet with a note saying the traveller attended the event. is acceptable.

Listing of the disbursals:

• The hotel reception must be a pagination that itemizes the charges • Per Diem of existent costs ( with grosss ) may be used for repasts • For domestic travel. you may utilize the UMCPF approved rate. presently $ 36. 00 per twenty-four hours ( breakfast $ 7. 50. Lunch $ 9. 50. Dinner $ 19. 00 ) • For foreign travel: utilize the U. S. State Department rate can be used. Please see World Wide Web. province. gov/www/ser

If you are charging for existent repast disbursals. include a reception for all repasts that exceed the per diem rate. Sums transcending the per diem may be questioned.