Employee Reimbursements Tutorial

Per the University Policy Manual 10.2(7), the Purchasing Department has the responsibility for handling all procurement transactions. ISU employees have no authority to commit ISU funds, and should obtain a Purchase Order number from the Purchasing Department or use the ISU Purchasing Card whenever possible, rather than requesting reimbursement for items purchased with personal funds. Using a Purchase Order or the ISU Purchasing Card also exempts us from sales tax and saves 7% for local purchases.

The Employee Reimbursement system may not be used as a means of circumventing ISU’s procurement policies.

If you have questions, please call Carole Gill at 294-5181 or Bill Cahill at 294-5124.

Expense Type

Alternate Form or Source

Reason

Alcoholic Beverages

Allowability Depends on Funding Source

Allowable if used for cooking, research, or course study. Other business purposes must be charged to 206 or unrestricted Foundation funds.

Animals, Laboratory or Livestock Animal Cages or Aquariums

Lab Animal Resources

All live vertebrate animals to be housed or used on the main or south campuses must be approved by the Institutional Animal Care and Use Committee (IACUC), assigned a log number, and purchased through Laboratory Animal Resources (LAR).

Artwork for Individual Offices

None

This is a personal expense and is not reimbursable.

Automatic Electronic Defibrillators

Web Requisition

ISU has standardized on a specific type, and AEDs require proper installation and training.

Cell Phone Equipment or Cell Phone Accessories

None

Iowa State University's policy allows for reimbursement for roaming charges, minute overage charges (if incurred on or after July 1, 2009), and international or temporary access. This replaces the old policy that allowed a per-minute reimbursement, regardless of whether this represented an additional cost to the user. Cell phone equipment or accessories owned by the employee are not reimbursable.

However, when the phone and plan are purchased through ISU's contract, we allow accessories, if for a reasonable amount.

Chemicals and Controlled Substances

Chem Stores or Web Requisition

ISU needs to be able to monitor the acquisition and disposal of chemicals and track the orders of controlled substances.

Computers and Laptops (or Components to Assemble a CPU)

CyBuy or TechCyte

Contact Purchasing for information on university contracts.

Conflict of Interest Payments

None

Payments to ISU employees for providing goods or services are conflict of interest payments, which cannot be reimbursed through the Employee Reimbursement System. Please read the Conflict of Interest page from the Policy Library or contact Nancy Brooks, Director of Purchasing, at 294-8757 if you have questions.

Cylinder Gases and Liquid Nitrogen

Chem Stores

ISU needs to be able to monitor the acquisition and disposal of hazardous materials.

Donations

None

Donations to organizations are not allowable from any funding source.

eBay or Other Online Auction Services

None

Use of online auction services is prohibited. Please contact the Purchasing Department for additional information.

Fines and Penalties

None

Parking fines, library fines, etc. are the personal responsibility of the person who incurred them.

Firearms, Weapons, and Ammunition

None

Safety issues.

Flowers

None

Allowable for official university events, such as graduation ceremonies, are allowable from any unrestricted fund source. Flowers for funerals or hospitalizations of employees or their immediate families are allowable from 206 or unrestricted Foundation funds, as long as the cost is relatively small.

Furniture and Furnishings

None

ISU has standardized product specifications and competitively bid contracts for such items.

Gifts

None

Gifts for recognition of employee achievements are appropriate, except from sponsored funding. Gifts to employees for holidays, birthdays, weddings or wedding anniversaries are not allowable from any funding source.

Home Internet

None

The Communication Technology Allowance and Reimbursement Procedures, which took effect July 1, 2009, only allow reimbursement if the employee's primary workspace is not located in university owned or rented space.

Home Office Expenses

None

If ISU already provides office space for an employee, charges for equipment, paper, toner, or other office supplies to support a home office are not reimbursable.

Items for Personal Use

None

All items purchased or reimbursed by ISU become the property of ISU. These items must be for a business purpose, rather than personal use.

Lease or Rental Payments

Web Requisition

Lease and rental contracts must be approved by Purchasing, and in some cases by the Board of Regents. Lease and rental payments also must be reported on a 1099-MISC, which requires processing by voucher.

Licenses for Vehicles or Trailers

Transportation Services

Transportation Services must be able to track all vehicles owned by ISU.

Materials Costing $500.00 or More

P-Card or Web Requisition

Items costing $500.00 or more must be approved by Purchasing, either by means of a Web Requisition, or by the delegated authority given to P-Card holders.

Moving Expenses or House-Hunting Expenses

Honorarium or Expense Voucher

Moving expenses and house-hunting expenses usually must be reported as taxable income.

Office Supplies

CyBuy

Office supplies may not be reimbursed, except for emergency off-campus needs, which must be explained on the Employee Reimbursement. Federal funds may not be used for office supplies, regardless of the source.

Payments to Non-employees (including students who are not employed)

Honorarium or Expense Voucher

Only employees have the ISU ID number and bank information necessary to make the payment.

Payments for Services - Performed by the Employee

Payroll, or by initiating a Web Requisition to be approved by Purchasing.

Services must be reported as taxable income. Employees are considered conflict-of-interest vendors, and usually cannot be paid for services, except through Payroll.

Payments for Services - Performed by Another Person or Business Entity

1.) A Web Requisition to be approved by Purchasing,
2.) an Honorarium or Expense voucher paid to an individual, or
3.) an Iowa State University - Voucher payable to the business entity.

Services must be reported as taxable income. The form to be used depends on the amount and nature of the services performed. Please contact Bill Cahill (294-5124) or Carole Gill (294-5181) for assistance.

Pharmaceuticals or Drugs

Web Requisition

ISU needs to be able to track the purchases of controlled substances.

Photocopier Supplies

Central Stores

Purchasing through Central Stores ensures university contract pricing.

Printing and Photocopying Services

None

Printing and photocopying should be done on campus whenever possible. Exceptions will need to be approved by Printing Services.

Radioactive or Hazardous Materials

Web Requisition

Environmental Health and Safety must be able to track these purchases.

Services

Web Requisition or Iowa State University - Voucher

Services require 1099-MISC reporting, and cannot be paid to conflict-of-interest vendors. These requirements necessitate paying for the services directly to the provider, rather than as an Employee Reimbursement.

Telephones, Cordless Phones, IP Telephones

Web Requisition

This equipment must be approved by ITS and comply with other university policies.

Tuition Reimbursement for ISU Classes

(Tuition for non-ISU classes can be reimbursed on an Employee Reimbursement if for $500.00 or less, or on an Honorarium or Expense Voucher if above $500.00)

Student Award Form

Tuition reimbursement may affect other financial aid. The Financial Aid Office must review these transactions, even if no other financial aid has been awarded. The Accounts Receivable Office will refund any credit balances resulting from tuition reimbursements.



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