Travel and Business Expense Policy

February 7, 2024 

 

POLICY STATEMENT

NJIT has determined that it is prudent to merge the existing Employee Business Reimbursement Policy and the Travel Reimbursement Policy into this single policy which shall be entitled Travel and Business Expense Policy (“Policy”). This Policy shall govern expenses incurred or for which reimbursement is sought by NJIT faculty, staff and students while performing University approved business or in support of sponsored research activities. Any and all expenses must comply with this Policy, as well as applicable federal and state regulations, restrictions, grant and contractual obligations, and other university policies. 

I. GUIDING PRINCIPLE AND ELIGIBILITY 

NJIT will support faculty, staff and students for reasonable, necessary, appropriate, allowable and properly substantiated expenses incurred while performing necessary and appropriate University business. All approved travel and business expenses are the responsibility of, and granted at the discretion of, department heads and area Vice Presidents as defined in this Policy. When incurring expenses, faculty, staff and students are expected to act in an ethical, prudent, practical and fiscally responsible manner. Where applicable, all travelers should consider video conferencing or web conferencing as an alternative to travel. While no policy can address every situation, this Policy is intended to cover the most common expense scenarios; where unusual circumstances arise, the spirit of this Policy, along with good judgment, must prevail. 

II. FINANCIAL COMPLIANCE 

NJIT is committed to transparency in the use of funds entrusted to it and is accountable to numerous constituents for the appropriate and prudent use of funds from various sources. Acting at all times with integrity and in a manner that will bear public scrutiny.

An expenditure is considered business related if it reflects an ordinary, necessary and reasonable transaction incurred to conduct University business; it is being made to further the mission of the institution related to instruction, research, public service, or supporting administrative functions surrounding these objectives. 

III. GENERAL CONSIDERATIONS 

All travel and business expenses must be approved by the employee’s supervisor, and the index/fund owner. Approvers must review such travel and business expenses for reasonableness, necessity, and appropriateness. An expense is reasonable if it is not excessive and is incurred for the primary benefit of university business or by the terms of federally or privately sponsored agreements. Reimbursement of expenses requires proof of payment documentation indicating that the employee or student has settled the bill in full with the service provider. 

New Jersey Sales Tax: As a public research university of the State of New Jersey, NJIT is exempt from sales taxes for goods and services. For purchases required to be made outside of NJIT’s Procurement System, NJIT’s Tax Exempt Form should be used whenever possible. NJIT reserves the right to not reimburse sales tax for a transaction that would have qualified for a sales tax exemption if it had been processed through the standard University procurement process. For business-related meal expenses, sales tax as charged is reimbursable. 

Eligible costs for federal grants and contracts are defined in The Uniform Guidance 2 CFR 200; in certain cases, grants or contracts may have additional stipulations. Externally funded grants and contracts may contain specific rules, prohibited costs, constraints on direct costs, and requirements for the indirect cost rate (also known as "F & A rate" or "overhead rate") charged to such projects. As each grant or contract is unique, specific questions related to a sponsored research award should be addressed to the Office of Research. 

IV. SPECIAL CONSIDERATIONS

A. Sponsored Projects and Programs: NJIT’s regulations apply to all grant or contract funded expenses unless there are special restrictions or guidelines from the sponsor. Refer to the sponsor guidelines for specific compliance requirements. Questions on sponsored travel with regards to research grants should be directed to the university Office of Research. For grant or contract funded travel, NJIT’s Office of Research requires:

a. Documentation clarifying why the particular person is traveling, why the travel is necessary and how the travel benefits the project. 

b. Travel costs to be reasonable and consistent with NJIT's established travel and business expense policy. 

c. Travelers to confirm the eligibility of grant-funded travel with the appropriate grant accountant prior to incurring costs. 

d. Travelers to ensure the proper mileage rates (federal vs state) are applied to the grant based on the funding agency. 

e. Federal policy, Uniform Guidance 2 CFR 200.475, addresses travel expenses specifically and this policy is designed to comply with the required standards. An individual's travel can only be paid on a federally sponsored award if the participation of the individual is necessary for the award and the costs are a direct result of the individual's travel for the federally sponsored award. 

B. Risk Management: Accidents, thefts, and other crimes must be reported immediately to the proper authorities, consistent with local/state laws. In addition, these issues must be reported to NJIT’s Department of Public Safety at (973) 596-3120, the Department of Risk Management at riskmanagement@muurausahvenlampi.com, and to the individuals home department as soon as possible but no later than five (5) business days after the event.

C. Athletics: The NCAA Manual encompasses the rules for which member institutions and individuals are accountable. These policies and procedures are held in the Athletics Department which is responsible for compliance. Travel related to NJIT athletics programs and team sports are handled directly by that department.

V. PROCEDURES/CONSIDERATIONS RELATED TO TRAVEL AND BUSINESS EXPENSES 

A. Pre-Approval: In advance of booking travel or incurring any travel-related expenses all employees and students, regardless of the funding source, are required to complete a Pre-Approval Report through Chrome River, the University’s on-line expense management system.

In addition: 

● Employees must comply with the State Ethics Commission requirement and may be required to complete the Pre-Travel NJ State Ethics Commission Form within the Chrome River Pre-Approval Report. 

● Students are required to complete a Pre-Approval Report for non-travel related business expenses. 

B. Pre-Travel Budget Verification: The traveler is responsible for coordinating with the appropriate department to ensure that funds are available. All necessary travel documents (e.g., conference agenda) must be in place prior to travel. 

C. Airfare or Other Transportation

a. To optimize purchase discounts and travel times, travel should be booked at least 60 days in advance. 

b. Travelers are encouraged to use NJIT’s preferred Travel Management Company for air, hotel, rail and rental car reservations. 

c. Travelers must purchase Economy Class airfare that meets the needs of the business trip. Travelers may upgrade to Business Class or First Class at their own expense or by using their “frequent flyer” points. 

d. Travel by bus and rail is an allowable business expense. Travelers must purchase Economy Class tickets, but may upgrade at their own expense.

e. When using Federal Grant Funds or Federal Grant Match funds for air travel, travelers must follow the Fly America Act and the Open Skies Agreement, summarized below.

i. U.S. law, 49 U.S.C. 40118, known as the Fly America Act, requires travelers to use U.S. flag air carrier service for all air travel when available. The Federal Travel Regulations Sections 301-10.131 through 301-10.143 define U.S. flag air carrier service and provide exception criteria for the use of non-U.S. flag air carrier service. This can be accomplished when code sharing is present where two or more airlines “code” the same flight as if it was their own.

ii. Under the Open Skies Agreement qualifying travelers may travel on U.S. Flag Air Carriers, or European Union airlines, as long as they touch down in an EU country. Please refer to the Open Skies Agreement for additional restrictions.

D. Lodging and Hotel Class of Service: When booking a hotel for a conference where there is a special conference rate, the reservation may be made directly with the hotel or conference host. Lodging shall be limited to standard room accommodation at reasonably priced mid-market hotels. Luxury and upscale hotels should not be booked. Hotel documentation must specify rate, date(s) of stay, and proof of payment.

E. Transient (i.e. Airbnb, Vrbo) and Non-Commercial (i.e. family, friends, colleagues)Accommodations are not covered under NJIT’s risk management policies and therefore are not allowable expenses.

F. Vehicle Rentals: NJIT allows employees and students to rent vehicles only when such purchase is through a reputable commercial rental agency and there is a business justification for the rental. Rental vehicles shall be limited to intermediate size classifications for individual travelers. Full size vehicles or vans are allowed only for employee and student group travel. Travelers renting vehicles (under NJIT’s contract or using their personal credit card) must complete and submit for approval a Driver Authorization Form before any travel occurs. A completed Driver Authorization Form should be submitted to the Department of Risk Management via: riskmanagement@muurausahvenlampi.com. Drivers must also meet the rental car company’s driving requirements. Reservations through NJIT’s primary vendor, Enterprise Holdings, are the preferred method of booking. NJIT's contract provides insurance (liability and physical damage)for domestic rentals. When making plans, please consult with the Office of Procurement Services to determine the best possible rate. Additionally, in connection with any vehicle rental:

a. If the vehicle is rented using the Enterprise Holding’s contract, then NJIT must be named as the rental owner when using the Enterprise Holding’s contract.

b. If a vehicle is rented outside of the Enterprise Holding’s contract, insurance is provided under NJIT's Automobile Insurance Policy (hired vehicle coverage).Only NJIT employees and students who have been authorized to drive and are renting vehicles for NJIT-related business are covered under NJIT's insurance plan. 

c. The cost to cover non-NJIT drivers is not an allowable expense. 

d. All drivers must be listed on the rental contract in order to drive the rental.

e. Vehicles that are rented must be used for NJIT business only. 

f. Drivers must adhere to all applicable laws and regulations (e.g., all passengers must use seat belts, drivers may not hold and handle their cell phone at any time while driving).

g. Supplemental insurance coverage offered by the rental agency will not be reimbursed. 

h. Collision insurance is covered up to a maximum of $50,000. International automobile coverage is provided through a separate international insurance policy. 

i. All business-related tolls, gas and parking charges related to travel and vehicle rental are allowable expenses. NJIT will not be responsible for fees or penalties incurred for any moving, parking or other violations (e.g., toll evasion) related to a rental vehicle.

G. Car sharing services (i.e. Turo, Zip Car) are not covered under NJIT’s risk management insurance policies and are not allowable.

H. Private/Personal Vehicles: Travelers who use private vehicles on University business are reimbursed at the current IRS authorized mileage rate for miles incurred at the time of travel, less typical miles traveled to and from the work site, including parking and toll charges. In the event of an accident involving injuries or damages to other persons or property while operating a privately owned vehicle on university business, the employee must notify the

I. Department of Risk Management for any potential involvement of NJIT within 5 business days of the event.

J. Business Required International Travel: Decisions to travel overseas should be made with an understanding of the current world situation, which requires that travelers remain aware, informed, and prepared. Current U.S. Department of State travel advisories may be found at travel.state.gov. Expenses related to vaccinations, passport and visa application fees, viral testing, required for confirmed international business travel are an allowable expense.

K. Combined Personal and Business Travel: If personal travel is combined with official University business related travel, only the business portion of the trip is an allowable expense. Personal expenses should be paid for using personal credit cards or other methods that do not result in the university paying for the personal expense. When personal and business expenses are combined, cost comparison information is required at the time of booking and must be attached to the pre-approval and expense reimbursement request in Chrome River. Cost comparison information should indicate what the cost of travel would have been if travel occurred on the actual business dates compared to the dates traveled due to personal reasons. In such cases, reimbursement will not exceed the cost of travel had it occurred on the business mandated dates. Employees are not covered by NJIT’s worker’s compensation insurance while on personal travel.

L. Travel Rewards: Travelers may keep all rewards related to travel (e.g., Delta Sky Miles, Marriott Rewards, etc.). However, enrollment fees for these programs are a personal expense and are not an allowable business expense. Travelers will not be reimbursed for the value of any personal points used for business travel.

VI. EXAMPLES OF ALLOWABLE EXPENSES

The following list of allowable expenses is not intended to be all inclusive, but rather reflects the most common expense scenarios:

A. Meals During Overnight Travel: Meals while traveling will be reimbursed at the GSA Per Diem rate for the particular travel destination. Refer to GSA Travel Resources for both domestic and international rates. The payment of GSA per diem does not require the submission of receipts. Travelers should not seek reimbursement for a meal that is included in any aspect of travel such as a conference registration, included in the hotel stay or by any other source. Such meals must be deducted from the daily per diem.

B. Day Trip Meals: Day trips meals will be reimbursed at the GSA per diem rate for the particular travel destination. The determination of an approved day trip meal expense shall be made by the index owner.

C. Business Meals:

a. If schedules require that meetings with external guests (non-University), during which specific University business discussions take place, are held over a mealtime, the cost of the meal, gratuity, and applicable sales tax is an allowable expense. The following documentation is required:

i. a list of attendees including title and affiliation, or identification of a discernible group 

ii. the meeting purpose needs to be summarized, and/or agenda provided 

iii. the itemized bill and payment receipt. 

b. If schedules and deadlines require business meetings with internal colleagues occur over a meal, the expense is considered an exception and requires:

i. a list of meeting attendees, including title, 

ii. the meeting over a meal needs to be justified, 

iii. the meeting purpose needs to be summarized, and/or an agenda provided 

iv. the itemized bill and payment receipt, and 

v. approval from the appropriate Dean or area Vice President.

c. For on-campus events, Gourmet Dining is the preferred vendor for food and beverages. However, when necessary, food and beverages provided by an external supplier during an on-campus University-hosted meeting or event are allowable provided all other policies are followed. 

d. As set forth in detail in the Alcohol Policy, alcohol is not typically an allowable expense. (see section X below for exceptions) Alcohol charges on a meal reimbursement, including the associated sales tax, must be excluded. 

D. Tipping and Gratuities: The following are considered reasonable and appropriate:

a. Skycap, porter/bell person, etc.: $2 per bag upon check-in/check-out 

b. Housekeeping: up to $4 per day 

c. Meals: 15% – 20% (if not included in the charge) 

d. Car Service: Tip is included in the negotiated rate. If using a non-contracted service, 15%-20% is appropriate.
(Note: When tips are paid with a credit card, if the tip amount is not included on the receipt, proof of payment is required. (i.e. credit card statement)) 

E. Conference Registration: Conference registration fees are allowable provided the conference is related to the employee’s professional responsibilities at NJIT and has been pre-approved by the appropriate area Dean/Vice President. If a conference or other event requires the registration fee to be paid by credit card as the only acceptable form of payment, these fees may be reimbursed prior to attending the conference.

F. Business Communications: Business related telephone calls, facsimile, and internet access during a hotel stay. (Note: Any of these items not appearing on the lodging bill must have a detailed receipt attached.) Travelers are encouraged to plan ahead and contact the university’s Technology Support Center regarding options for internet access.

G. Laundry Expenses: During travel, laundry fees are allowable when business related travel exceeds five (5) consecutive nights.

H. Rideshare: Rideshare programs (i.e. Uber or Lyft) to and from an airport, train station or hotel are an allowable expense.

I. Changes, Cancellations, and Unused Tickets: Changes to airline and rail tickets for business reasons or circumstances beyond the traveler’s control are allowable expenses. When air, train, car rental or hotel travel plans change, due to unforeseen circumstances, the traveler is responsible for notifying NJIT's Travel Agency immediately. Cancellations must be made in the same manner in which the reservations were booked. Fees associated with itinerary changes, provided there is a business reason, are allowable. An explanation including how the change fee is a direct benefit to the university is required.

J. Baggage: Reasonable and appropriate baggage fees are allowable.

K. Professional License and Certification Fees: Licensing fees required to perform one’s university duties are allowable at the discretion of the area Dean/Vice President. Examples are professional licenses which keep professional credentials current.

L. University Memberships and Subscriptions: Memberships in professional associations and appropriate publications and journals relative to an employee’s professional responsibilities at NJIT and intended to increase business research or educational knowledge are allowable expenses at the discretion of the individual departments and pre-approved by the appropriate area Dean/Vice President. Examples include membership in industry organizations which are required to maintain University, College, or Department accreditation.

M. Training: Training expenses on-site, off-site, and those utilizing online strategies which are appropriate and related to the employee’s position at NJIT are allowable expenses at the discretion of the individual departments and pre-approved by the appropriate area Dean/Vice President.

N. Professional Development: Courses, programs and such which allow an employee to improve or advance their skills, traits, and competencies, and contribute to their success in the workplace and advance their career, are allowable expenses at the discretion of the individual departments and pre-approved by the appropriate area Dean/Vice President. 

O. Team Bonding/Retreats: A non-recreational activity or event helping employees connect on a professional level to create a positive work environment, help keep employees motivated, with the common goal of increasing morale, productivity and efficiency. (e.g., True Colors) is an allowable expense at the discretion of the individual departments and approved in advance by the appropriate area Dean/Vice President. 

VII. AUDIT OF REIMBURSABLE EXPENSE DETAILS 

To ensure proper internal controls are in place, randomly selected expense reports will undergo “internal audit” review. Questions will be directed to the individual and supervisor and if necessary, the appropriate Vice President. 

If expenses are found to be fraudulent or in violation of NJIT’s policies, the initiator and the approver of the expenses may be subject to disciplinary actions, including personal reimbursement or legal action, up to and including suspension or loss of employment. 

VIII. MISCELLANEOUS NON-ALLOWABLE EXPENSES 

The following list is not intended to be all inclusive, but rather reflects the most common non-allowable expenses: 

1. Incidental Conference Expenses: Expenses and/or fees associated with social or non-mandatory activities at conferences, such as tours, sports activities, movies, theater tickets, in-room movies, in-flight movies, mini-bar etc.

2. Alcoholic Beverages: As mandated by the Federal Government and the State of New Jersey, alcohol is not an allowable expense on Federal grant or State supported funds. Please refer to the Alcohol Policy for details.

3. Commuting Expenses: Expenses and/or costs associated with an employee’s commuting expenses to and from work.

4. Non-Employee Travel Costs: Spouse's/family member's travel costs, unless otherwise specified in an employment contract.

5. Lost Property: Lost/stolen cash or personal property.

6. Memberships: Personal, recreational, or athletic memberships.

7. Personal Care and Services: Personal items or services, (e.g., shoe shines, haircuts, manicures, saunas, massages, pet care costs, souvenirs or personal gifts, childcare costs, and personal reading materials).

8. Employee Gifts: Gifts or things of value given in connection with an individual performing their job (i.e., gift cards)

9. Gifts and Baskets: Flowers, gift baskets etc. for any personal reason (i.e., thank you gifts, bereavement flowers).

10. Goods for Personal Use: These would include items such as furniture or equipment for home office use, food, briefcases, flowers, coffee makers, refrigerators, plates, tissues etc.

11. Team Bonding/Retreats: Team bonding/retreats that include recreational activities are unallowable. (e.g., boat rides, axe throwing, golfing).

12. Memberships and Subscriptions: Personal memberships and subscriptions unrelated to an employee’s professional responsibilities at NJIT are not reimbursable. (e.g., LinkedIn).

13. Credit Card Fees: Annual, monthly and late fees on personal credit cards, used for business purposes.

14. Misc. Entertainment: Entertainment, lobbying, or the acquisition of goods or services for personal use.

15. Travel Change Fees: Fees incurred for changing reservations unless there is a pre-approved business justification.

16. Non-Commercial Air Travel: Chartered or private aircraft is prohibited.

17. Travel Services: Priority boarding fees and fees related to trusted traveler programs such as TSA Pre-Check, Clear, Global Entry, etc.

18. Reward Programs: Expenses purchased with reward programs (i.e. Points, miles, etc.).

19. Transient Accommodations: Short term rentals such as Airbnb, VRBO where hosts rent their homes or individual rooms.

20. Non-Commercial Accommodations: Payment to a non-commercial third party for the value of services (i.e. family, friends, colleagues).

21. Car Sharing: Model of car rental where people rent cars for short periods of time normally from private individuals (e.g., Turo, Zipcar).

IX. SUBMISSION OF EXPENSES

Travel reimbursements made to the traveler will not be considered taxable income. 

Employees and students are required to exercise Fiduciary Responsibility when submitting expenses. Expenses later found not to comply with university policy shall be refunded to NJIT.

Adhering to best business practice, employees and students should submit their Expense Reports through Chrome River, the online Expense Management system, within 45 days of the date of the expense. Travel expenses submitted beyond one year after the date(s) of receipt will not be reimbursed regardless of the funding source. 

The person responsible for the index/fund must ensure the correct accounting distribution is used and sufficient funds are available to cover the total expense. 

X. EXPENSES RELATED TO FUNDRAISING AND RECRUITING 

Travel, meals and associated expenses (including alcohol) incurred while conducting official University fundraising and recruiting business are allowable only when appropriate documentation is provided, including itemized receipts, names of guests in attendance and the purpose of the event/meeting. 

EFFECTIVE DATE OF POLICY 

This policy takes effect February 7, 2024, and supersedes and revokes any former policies and procedures. Exceptions to this Policy must meet a valid business need and must be properly documented. These expenses will only be reimbursed when and if approved by the area Vice President.