�̾�����Ƶ

A. Summary

The �̾�����Ƶ (�̾�����Ƶ) was established by the N. H. Legislature in RSA 187-A:1 to "provide a well coordinated system of public higher education...to benefit the state and its people." Its mission is one of teaching, research, and public service. This business expenditure policy has been developed to provide guidelines for deciding whether expenditures are in furtherance of this mission and to ensure that fair, consistent, and equitable financial practices are carried on throughout the �̾�����Ƶ.

B. Philosophy

�̾�����Ƶ is committed to the highest level of accountability and stewardship with regard to �̾�����Ƶ funds. Each person responsible for making decisions concerning its expenditures should consider whether the expense represents a worthy use of �̾�����Ƶ funds. The University System's goal is the optimal use of �̾�����Ƶ resources in fulfillment of its mission.

C. Scope

This policy applies to all expenditures, regardless of funding source. Specific restrictive terms of donors and sponsors take precedence over relevant, less restrictive �̾�����Ƶ policy. Campuses or departments may also elect to impose stricter controls over expenditures than those required by this policy. In all cases, where the terms imposed by a donor, sponsor, campus, or department are more lenient than those of �̾�����Ƶ, �̾�����Ƶ policy applies.

D. Exceptions

While this policy is applicable to the majority of �̾�����Ƶ transactions, it is recognized that unique circumstances may justify exceptions. Exception requests should be sent to the Vice Chancellor for Financial Affairs/Treasurer or �̾�����Ƶ Controller for review and appropriate referral.

E. General Rule

All expenditures shall be consistent with applicable federal and state laws and regulations; with any restrictions, rules or regulations placed on the use of funds by donors and granting or contracting agencies; and with prudent management practices. Persons authorized to expend �̾�����Ƶ funds are responsible to exercise discretion and good judgment in the use of �̾�����Ƶ funds, regardless of their source. All expenditures must be reasonable and necessary for carrying out the programs and activities of �̾�����Ƶ within the approved budget allocations. All expenditures must be documented in a way that clearly substantiates such reasonableness and necessity. All expenditures must be charged to the proper Fund, Area, and Org.

F. Requirements for Receipts

KSC requires receipts for all business expenditures except tips. For all other divisions of �̾�����Ƶ, business expenditures of $25 or less per item (e.g., per fare) do not require receipts unless 1) the expense is paid for with a PCard, convenience check or petty cash/imprest checking; or 2) the actual expense method of meal reimbursement method is allowed; in these cases all receipts are required. Receipts are required for reimbursement of all business expenditures that total more than $25 per item.

G. TIMELINE FOR BUSINESS EXPENSE REIMBURSEMENT (OTHER THAN TRAVEL)

Per IRS requirements, reimbursement requests received later than 60 calendar days after the expense was incurred must be treated as taxable to the individual submitting the reimbursement request. Expense reimbursement requests are treated as taking place within a reasonable period if the request for reimbursement is adequately supported and is submitted within 60 calendar days of the expense being incurred, or before the end date of the grant if the expense is being charged to a Sponsored Program, whichever is sooner. A request is considered submitted on time when the date the requestor signed the form is within 60 calendar days of the expense being incurred, and the total cost is fully substantiated. With the exception of the 60 calendar day tax rule, the campus CFO or designee��may authorize individual exceptions to this policy upon written justification showing cause for noncompliance. For information regarding processing the earnings related to late submission of reimbursement requests, please see located on the USNH Sharepoint site (log in required; see instructions on the Employees section of the �̾�����Ƶ website).

A. Summary

Advertising expenses are allowed to the extent they are reasonable and necessary to carry out the mission of �̾�����Ƶ. Restrictions regarding funding source must be complied with.

B. Promoting �̾�����Ƶ Events

Advertising in newspapers, programs, etc. to promote �̾�����Ƶ events is allowable. However, these costs must be charged to specific��account codes (i.e., 71C100-Advertising non-employment, 71C120 - Advertising Radio, 71C130-Advertising TV/Cable) to ensure they are not charged to federally sponsored programs. See Procedure 2-065, Allocation of Centrally Funded Costs, and Procedure 2-060, Unallowable Costs, for further information.

C. Recruitment

Recruitment advertising (help-wanted ad) is allowable provided the ad has been approved by the campus Human Resources Office.

D. Charitable Organizations

Advertising accomplished through a charitable organization is allowed provided:

1. There is a documented business purpose connected to the mission of �̾�����Ƶ, and
2. The total cost is less than or equal to the value of goods or services received.

For example:

1. The��School of Health and Human Services rents space at an Aids Awareness seminar to educate the public on a health issue. The rent paid for the space must be reasonable for the space provided.
2. Plymouth State University advertises its MBA program on NH Public Radio. The price paid for advertising must be less than or equal to the value of the advertising services received.

E. Political Advertising

Political advertising is unallowable. This includes the expense of advertising in political programs or for admission to political fundraising functions and similar events (see Procedure 8-006, Contributions - Charitable and Political).

F. Sponsored Programs

Advertising expenses, whether for recruitment or for other purposes, may be allowed against a sponsored program. Prior to charging any type of advertising expense to a sponsored fund account, employees at UNH��must consult with Sponsored Programs Administration; employees at KSC, PSU and��GSC must consult with their campus grant administrator.

A. Summary

Alcohol is generally an unallowable expense. It is recognized that there may be a bona fide business reason to purchase alcohol, such as important donor functions. In addition,��Dining Services and other departments may purchase alcohol for cooking, laboratory or resale purposes. If there is a compelling business reason and the expense is reasonable, the purchase of alcohol is allowable, if an appropriate source of funds is cited.

B. Source of Funds

Alcohol purchased for purposes other than cooking, laboratory or resale may only be purchased:

1. With internally designated funds clearly delineated as "DISCRETIONARY" within the �̾�����Ƶ general ledger; or
2. With restricted gift or endowment payout accounts that have been approved by the Controller.

C. Business Purpose

The bona fide business purpose for the purchase of alcohol must be clearly disclosed on supporting documentation accompanying purchase or reimbursement documents.

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The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

A. Summary

This procedure explains when expenses for spouses, partners and families of �̾�����Ƶ employees may be reimbursed.

B. Detailed Procedures

1. Expenses for spouses, partners and families of �̾�����Ƶ employees are generally not paid or reimbursed by �̾�����Ƶ. These include such expenses as travel, entertainment and participation in local events. However, these expenses may be allowed when (a) there is a compelling business reason, (b) the expense is reasonable and prudent, and (c) prior written approval has been granted by the Campus Chief Financial Officer (CFO) (see Procedure 8-004, Authorization for Certain Expenditures on Payment Vouchers). Approval by the President is required for expenses of the spouse or partner of the Campus CFO. Only expenses which are non-taxable under Internal Revenue Service (IRS) regulations will be considered. The Controller's Office interprets taxability. Even when IRS standards are met, it is important to keep in mind that the limited resources and frequent public scrutiny of expenses at �̾�����Ƶ make it particularly important that only the most essential events be proposed for spousal or partner attendance.
2. To request prior approval, write to the Campus CFO describing (a) the event, (b) the spouse's or partner's role, (c) the compelling business reason for that role, (d) the account number to be used for reimbursement, and (e) the estimated type and amount of spousal or partner expenses. While the same standards apply to all sources of funds, some funds may exclude spouse or partner reimbursement. Attach a copy of the Campus CFO's approval to the expense report submitted for reimbursement.

A. SUMMARY

For quick reference, see table in Procedure 8-008T.

1. Awards, gifts and prizes are allowed to the extent the expense is reasonable and necessary to carry out the mission of �̾�����Ƶ. Awards, gifts, and prizes may not be lavish or extravagant. Restrictions regarding funding source must be complied with. Proper classification of payments is necessary to differentiate between those considered scholarships, which may be tax-free and not reportable to the Internal Revenue Service and those that are awards, gifts or prizes, which may be taxable.

2. Individual campuses or departmental policies may be more restrictive than �̾�����Ƶ policy, but not less restrictive.

3. If a third party provides �̾�����Ƶ with funds or property for administration and distribution, these will be administered according to �̾�����Ƶ policies and procedures (e.g., Employee of the Month award or prizes awarded to employees at �̾�����Ƶ outings which are provided by local vendors).��

4. In all circumstances, cash, gift cards and gift certificates of any amount are taxable when provided to a recipient, regardless of classification as an award, gift or prize.

5. Per the��Administrative Board action approved March 13, 2009:

"�̾�����Ƶ shall not compensate any employee for the federal income tax consequences of accepting from �̾�����Ƶ any award, [gift], prize, incentive or compensation in any form whatsoever, regardless of whether the tax consequences cause or may cause the employee to decline the award, [gift], prize, incentive, benefit, or compensation."

B. DEFINITIONS AND REQUIRED APPROVALS

1. An award is tangible property, cash, gift card or gift certificate given to an individual in recognition of meritorious performance or productivity. Awards are generally taxable to the recipient. All awards must be approved by a Dean, Vice President or President.

2.��A gift is tangible property bestowed voluntarily on an individual, often as a gesture of gratitude or expression of sympathy.�� To qualify as a gift, there should be no negotiation in advance for the gift.�� Cash, gift cards, gift certificates and alcohol are not allowed as gifts.�� Gifts should be of minimal value (generally ≤ $25) and ideally bear one of the �̾�����Ƶ institution’s licensed logos.�� Gifts so defined are not taxable income to the recipient and not reportable to the IRS. All gifts must be approved by a Dean, Vice President or President.

3.��A prize is tangible property, cash, a gift card or gift certificate won by an individual in a game of chance or in connection with a �̾�����Ƶ-sponsored event.�� The prize may result from a wager (e.g., UNH Hockey 50/50 raffle) or no wager (e.g., the 100th person to walk through the door). All prizes are taxable income to the recipient. All prizes must be approved by a Dean, Vice President or President.

4.��A scholarship or fellowship is value (i.e., cash, tuition waiver, etc.)�� provided to an individual for the educational benefit of the recipient, with no requirement for present or future services.�� The scholarship/fellowship may be taxable and/or reportable, depending on the use of the funds and citizenship of the recipient. Note: Scholarships/fellowships are not addressed in this policy.

C. DETAILED PROCEDURES - EMPLOYEES

1. Awards to employees. With two exceptions (see Sections a. and b. below), awards provided to employees, including student employees, in the form of tangible property, cash, gift cards or gift certificates for meritorious performance, productivity or other reasons connected with their employment are considered taxable compensation. Please contact �̾�����Ƶ Disbursement Services for any questions regarding reportability of the��awards in your award programs.

The value of an award is reported as compensation on the employee's Form W-2 and is subject to federal and FICA tax withholding. Cash awards given to employees must be paid through the Human Resources System in accordance with �̾�����Ƶ policy��USY V.F.7.5.7. Unless qualifying for one of the exceptions below, departments making non-cash awards must notify their Campus Payroll Office of the employee's name, the last 4 digits of the employee's �̾�����Ƶ identification number, the value of the award and the date it will be presented to the employee. This information will be used to record the non-cash compensation in the Payroll system and facilitate tax withholding.

Under certain circumstances, some types of awards may qualify as nontaxable as noted below:

a. Certain achievement awards of tangible property (other than cash, gift cards or gift certificates in any amount) may be given tax-free to an employee if they are awarded in a meaningful presentation that emphasizes the purpose of the award. The value of the award may not exceed $400 per year per employee. These awards and additional criteria are as follows:

i. A length of service award is not taxable if it is not granted to an employee more frequently than every 5 years.

An award presented at retirement may be considered a length of service award and is subject to the rules of this section. Retirement gifts are generally funded by employees taking up a collection of personal funds; in these cases, there are no tax consequences to the recipient and no �̾�����Ƶ reporting requirements. Retirement gifts funded with �̾�����Ƶ funds must be charged to a discretionary fund (a list of these funds is maintained by �̾�����Ƶ Accounting Services) unless the gift is part of a campus-wide recognition program sponsored by the Campus President or Chancellor for all retirees meeting certain criteria.

ii.��A safety award is not taxable as��long as both of the following conditions are met:

• It is provided to no more than 10% of eligible employees; and,
• Managers, administrators, clerical and professional staff are ineligible for the award.??

b. Non-cash, de minimis awards are not taxable to an employee. IRS regulations use the example of a holiday turkey to define "de minimis.” ��For �̾�����Ƶ policy, de minimis is defined as a value less than or equal to $75. ��Since the IRS considers gift cards and gift certificates to be the equivalent of cash, gift cards and gift certificates in any amount awarded to employees for any reason are considered taxable compensation and are subject to reporting and withholding.��

2. Gifts to employees. Gifts - including those for birthdays, weddings, showers and other personal events - are never allowable expenditures of �̾�����Ƶ funds, regardless of the source of funds.�� Holiday gifts and gifts for occasions such as Boss’ Day and Secretary’s Day are also examples of unallowable expenditures.�� At their discretion, co-workers may contribute personal funds to commemorate a personal event, but these funds should never be deposited to any �̾�����Ƶ bank account.�� In limited circumstances, gifts of flowers or other expressions of sympathy are allowed if paid from a discretionary fund (a list of these funds is maintained by �̾�����Ƶ Accounting Services).

Gifts presented to employees in recognition of service to �̾�����Ƶ (including retirement gifts) are awards and fall under the rules discussed in Section C.1. above.

3.��Cash and non-cash prizes to employees.�� In general, no prize may be awarded to a �̾�����Ƶ employee except in situations where the individual's employment is incidental to the basis on which the prize is awarded.�� For example, an employee would be eligible to win a door prize awarded at random to those in attendance at an athletic event.�� In this instance, the door prize is taxable and reportable on Form 1099 if the prize is $600 or more. If an employee won a game of chance that involves a wager, the prize is reportable on Form W-2G if the prize is $600 or more.

Prizes provided by an outside vendor and presented directly to the employee by the vendor would be considered to be administered by the vendor (e.g., prizes provided by vendors at the Benefits Fair with no involvement by �̾�����Ƶ as to administration, processing, etc.).

D. DETAILED PROCEDURES - STUDENTS

1. Awards classified as scholarships or fellowships to U.S. students must be processed through the Campus Student Information System.�� Scholarships/fellowships are generally not reportable as taxable income; however,��they should be disclosed on Form 1098-T.

If the��recipient is not a �̾�����Ƶ student, scholarship/fellowship��payments should be processed through �̾�����Ƶ Accounts Payable and will be reported on Form 1099-MISC��for U.S. citizens.�� If the recipient is a nonresident alien, �̾�����Ƶ Disbursement Services should be notified prior to processing to insure proper tax withholding and reporting on the award.

2.��Academic achievement awards given to students in recognition of meritorious��accomplishment (e.g., UNH Holloway Award) that are unrelated to employment are taxable income to the student. Cash awards of this nature are paid through �̾�����Ƶ Accounts Payable and reported on Form 1099-MISC for U.S. citizens and Form 1042-S for nonresident aliens.��If the award is $200 or more, the department presenting the award must:

a. ?Notify �̾�����Ƶ Accounts Payable of the recipient’s name, address, Social Security number, date and value of the award; and,
b.��Obtain a completed Form W-9 from the recipient prior to payment.
c.��If the recipient is a nonresident alien, �̾�����Ƶ Disbursement Services will work with the department��to insure proper tax withholding and reporting on the award.

3.��Awards related to a student’s employment (See Section C.1.)

4.��Gifts to students (See Section E.2.)

5.��Prizes given to students that are associated with academic achievement or competition are awards.�� (See Section D.2.) ��For other cash and non-cash prizes to students, see Section E.3.

E. DETAILED PROCEDURES - NON-EMPLOYEES

1. Awards to non-employees. ��Awards may occasionally be given to non-employees in recognition of meritorious achievement as well as for other valid business reasons.

Awards paid through Accounts Payable that are paid to non-employees are considered taxable income, regardless of value. ��There is no de minimus exception to taxation for awards to non-employees. ���̾�����Ƶ will report these awards on Form 1099-MISC when the cumulative total of all payments to an individual in a calendar year is $600 or more.

If such an award is $200 or more, the department presenting the award must:

a. Notify �̾�����Ƶ Accounts Payable of the recipient’s name, address, Social Security number, date and value of the award; and,
b.��Obtain a completed Form W-9 from the recipient prior to payment.

2. Gifts to non-employees. Non-cash gifts may be presented as a token of appreciation to a dignitary, guest or visitor when a valid and documented business purpose exists such as to recognize contributions to �̾�����Ƶ or to honor a distinguished visitor. In limited circumstances, gifts of flowers or other expressions of sympathy are allowed if paid from a discretionary fund. A list of these funds is maintained by �̾�����Ƶ Accounting Services.��Items purchased for use in a department's business operations should be accounted for as supplies expense rather than awards, gifts or prizes. Examples are insignia mugs��given to visiting speakers or T-shirts given to conference attendees.��Gifts to volunteers, donors and prospective donors are not covered by this policy and will be addressed in a future policy.�� Until such policy is issued, please contact the �̾�����Ƶ Controller with questions on these types of gifts.

3.��Cash and non-cash prizes to non-employees.�� Prizes may be awarded to a non-employee in connection with games of chance and door prizes in connection with a �̾�����Ƶ-sponsored event.

a. For recipients who are U. S. citizens and residents, prizes of $600 or more are reportable by �̾�����Ƶ.�� If the prize is won in connection with an event that involves a wager, the value is reportable on Form W-2G. ��If the prize is won in connection with an event that does not involve a wager, the prize is reportable on Form 1099-MISC.

i. If the prize is the result of a wager and the winnings are $600 or more, the department sponsoring the event is responsible for completing Form W-2G. Copies A, D, 1, and Instructions for Payers of Form W-2G should be forwarded to �̾�����Ƶ Disbursement Services��who is responsible for filing with the IRS.�� Copies B, C, 2 and Instructions to Winner should be provided to the winner after the event.

If the value of winnings is $600 or more and the winner either fails to provide �̾�����Ƶ with a Social Security number or provides a number that �̾�����Ƶ has been notified is incorrect, �̾�����Ƶ must withhold federal income tax at the rate of 24% of the winnings. If the fair market value of any��prize exceeds $5,000 and a wager has been made, withholding of 24% is required even if �̾�����Ƶ has accurate filing information. The department sponsoring an event where it is anticipated that a prize will be valued at $600 or more, must notify �̾�����Ƶ Disbursement Services prior to the event.���̾�����Ƶ Disbursement Services will work with the department to satisfy the withholding and reporting requirements of the Internal Revenue Code.

ii. If the prize is not the result of a wager and the winnings are $200 or more, the department presenting the prize must:

• Notify �̾�����Ƶ Disbursement Services of the recipient’s name, address, Social Security number, date and value of the prize; and
• Obtain a completed Form W-9 from the recipient prior to payment.

b. For recipients who are nonresident aliens, the prize value is reportable by �̾�����Ƶ on Form 1042-S, regardless of amount.�� In addition, federal income tax withholding in the amount of 30% of the value of the prize is generally required unless 1) the recipient is a resident of a country with a treaty that exempts prize income from taxation, and 2) the recipient files Form W-8BEN��with �̾�����Ƶ to claim the exemption.�� The department sponsoring the event is responsible for contacting �̾�����Ƶ Disbursement Services prior to presenting the prize to the recipient. �̾�����Ƶ Disbursement Services will work with��the department to satisfy the withholding and reporting requirements of the Internal Revenue Code.

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The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

A. Summary

Meals and entertainment expenses are allowable expenditures of �̾�����Ƶ funds if they are reasonable and necessary expenses of carrying out the mission of �̾�����Ƶ. The guidelines in this procedure govern the allowability of these expenditures. While specific campuses, departments and funding sources may choose to be more restrictive than this policy allows due to budget constraints or other reasons, they may not be less restrictive.

B. Allowable��and Non-Taxable Meals

Meals provided to �̾�����Ƶ employees that fall into one of the following five classifications are allowable and nontaxable to the recipient �̾�����Ƶ employee:

1. Meals provided while the employee is in overnight travel status in accordance with Procedure 7-007, Travel Meals.

2. Meals with a clearly substantiated business purpose, i. e., those directly associated with the active conduct of �̾�����Ƶ business. Examples of business meals include departmental meetings and other business meetings with colleagues, as well as dinners with potential students, donors or prospective employees at which a bona fide business discussion takes place. The business discussion may not be secondary to the purpose of the meal. The employee must be present at the meal where the business discussion takes place. Meals eaten alone do not qualify as business meals.

The per diem method of reimbursement is not allowable for business meals.

Documentation must adhere to Procedure 2-210, Adequate Supporting Documentation and��requirements include the date, time, location, names and titles of those in attendance, and business matters discussed. In cases where there are more than 6 people in attendance, the name of the committee or organization and the number of participants will suffice (e.g., Faculty Senate meeting, 12 in attendance). Original receipts must accompany the request for reimbursement of actual meal cost. Documentation requirements stated above (i.e., date, time, location, names and titles of attendees and business matters discussed) also apply to meals charged on an interdepartmental voucher (e.g. at the Student Union) and to catered meals.

3. De minimis "supper money" provided on an occasional and infrequent basis to enable employees to work an extended day, which is defined as a period lasting at least 12 consecutive hours. De minimis is defined as any benefit whose value is so small that accounting for it would be unreasonable or impracticable. The employee may be reimbursed for actual meal cost or be paid a meal allowance not to exceed $10, whichever is less. Documentation requirements include supervisor authorization, the date, time, location, hours worked and reason for the extended day. Receipts may be required if the expense is to be charged to a sponsored project; otherwise, receipts are not required. Employees should check with the grant administrator to confirm receipt requirements.��These documentation requirements also apply to meals charged on an interdepartmental voucher or reimbursed through petty cash.

Supper money may not be routinely paid to an employee whose job consistently requires working an extended day. The employee's supervisor is solely responsible for making this determination, as signified by his/her authorization.

4. Infrequent, occasional meals provided to a group of employees, such as a campus picnic or holiday party. These meals are generally for the purpose of promoting goodwill, employee relations, morale, team spirit, etc. or for retirements, or major (e.g., 25 years) anniversaries of employment with the University. They must be reasonable and may not be lavish or extravagant. Documentation requirements include the date, time, location and nature of the gathering, name of the group and the approximate number of participants in attendance. Original receipts must accompany the request for reimbursement of actual meal cost. Documentation requirements stated above (i.e., date, time, location, nature of the gathering, group name and the approximate number of participants) also apply to meals charged on an interdepartmental voucher. The per diem method of reimbursement is not allowable. Generally, these expenses may not be charged to federal funds.

5. Meals provided for the convenience of �̾�����Ƶ, on the premises of �̾�����Ƶ, for a valid business reason. Examples include providing meals to food service employees or to an employee to ensure the employee is available for emergencies. In the latter case, to be exempt, the department must be able to show a history of emergencies in the employee's position as well as demonstrate that providing meals to the employee promotes readiness in dealing with the emergencies. The individual authorizing the award of meals to an employee is responsible for communicating the information to the �̾�����Ƶ Disbursement Services Manager. This information must include the value of meals being provided, substantiation of why the benefit is being provided, and an explanation if this benefit should not be considered taxable wages.

c. Meals Considered Taxable Wages

Meals provided to �̾�����Ƶ employees that do not fall into one of the five classifications specified in Section B of this procedure are considered taxable wages. The value of the meals will be included in the employee's wages with appropriate federal and FICA taxes deducted from the employee's normal wage payments. The taxable benefit and all taxes withheld will be reported on the employee's Form W-2 at year-end.

D. Entertainment Expense

Entertainment expense must be directly related to the conduct of �̾�����Ƶ business. IRS regulations require that the �̾�����Ƶ employee engage in the active conduct of business with the person being entertained.

1. Entertainment expenses associated with the active conduct of �̾�����Ƶ business are allowed if they directly precede or follow a bona fide and substantial business discussion. This includes goodwill expenditures to obtain contributions from potential donors. The business discussion must be the principal aspect of the combined business and entertainment and must represent an active effort of the �̾�����Ƶ employee to obtain a specific business benefit necessary to carrying out the mission of �̾�����Ƶ.
2.��The expense may not be lavish or extravagant.
3.��Documentation requirements include the date, time, and location of the entertainment, names and titles of those in attendance, and the business matters discussed. Original receipts must accompany the request for reimbursement. Entertainment expenses are not allowed to be charged to any federally-sourced sponsored projects and may not be allowable on other sponsored projects; check with the grant administrator to confirm requirements.

E. Reimbursement

An employee may be reimbursed for his/her actual cost of meals and gratuities or the reasonable cost of a moderately-priced meal of acceptable quality, whichever is less. Meals may not be lavish or extravagant. The per diem rate should be used to judge the reasonableness of meal costs incurred. Tips for meals in excess of 15% to 20% of meal cost are generally not appropriate as a �̾�����Ƶ business expense and therefore will not be reimbursed.

F. Receipts

Receipts for meals and entertainment expense should include a breakdown of meal cost, beverage cost, tax and tip, if available. Alcohol costs are generally not reimbursable (see Procedure 8-003, Alcohol). In the absence of a detailed receipt, original documentation (e.g., a credit card slip) indicating the total cost is acceptable if accompanied by a signed or initialed statement indicating that no alcohol is included in the expense submitted for reimbursement. Please note, KSC requires receipts for all business meals and entertainment costs.

G. Related Policies

For a discussion of related policies on alcohol, spousal attendance, and gifts, (see Procedure 8-003, Alcohol); (see Procedure 8-007, Spousal Expenses); and (see Procedure 8-008, Awards, Gifts, and Prizes), respectively.��Requirements for appropriate supporting documentation can be found in Procedure 2-210, Adequate Supporting Documentation.

A. Summary

If considered necessary by the supervisor and with appropriate campus approvals, �̾�����Ƶ departments may pay a new employee a reasonable transition allowance to cover their personal moving, relocation and employment transition costs. If a transition allowance is paid, the allowance will be taxable to the employee and paid via Payroll. The allowance must be (1) authorized in advance, (2) documented in writing to the employee and for �̾�����Ƶ files, and (3) directly related to the commencement of employment at �̾�����Ƶ.

B. SCOPE

Effective January 1, 2018, reimbursement of actual qualified moving expenses incurred is required to be included in the gross income of the employee receiving these payments.�� Consequently, �̾�����Ƶ shall neither reimburse an employee, nor pay vendors directly for these expenses.�� This includes:�� moving company expenses, temporary storage or housing, travel, meals or other personal or family relocation expenses.�� All relocation and related payments must be paid as a transition allowance directly to the employee. The transition allowance is the total amount authorized to be paid for the employee's transition costs.

The transition allowance does not apply to special situations involving the establishment or relocation of professional labs, libraries, supplies and equipment of faculty and researchers. These latter payments, if any, will be paid directly to vendors through normal purchasing and accounts payable procedures.

C. EMPLOYMENT NEGOTIATIONS AND PRE-APPROVAL

The transition allowance, if any, is determined for each prospective employee on a case-by-case basis. �̾�����Ƶ Policy UNH V.F.7.3.3 specifically allows "compensation paid to faculty or exempt staff members as part of a recruiting effort..."�� While there is no standard or maximum �̾�����Ƶ transition allowance, employment negotiations should result in a reasonable amount necessary to recruit the employee to �̾�����Ƶ giving due consideration to �̾�����Ƶ budgetary and funding constraints. All agreements which include the payment of a transition allowance must be in writing and be pre-approved by the President, Vice President or Dean. Any offer of a transition allowance for an Executive Officer requires approval of the �̾�����Ƶ Board of Trustees' Executive Committee.

Allowances in excess of 10% of an employee's regular starting salary require the approval of the campus President. Each campus may set a limit on the maximum transition allowance that is more restrictive than this policy. In addition, a campus may consider the transition allowance earned ratably over the first six months of employment and therefore may require repayment upon termination before 6 months of employment. The hiring department is responsible for securing, in advance, the funding source(s) to support the authorized payment and the related applicable �̾�����Ƶ fringe benefit charge thereon.

D. TIMING OF PAYMENT

The transition allowance will generally be paid within the first month after the employee has begun employment. The department, however, can choose to defer payment up to one year after employment. In rare exceptions, and with written approval by the President, Vice President or Dean, all or a portion of the transition allowance may be advanced to the employee prior to commencement of employment. All employees receiving a transition allowance in advance of the first day physically on the job will be required to sign a promissory note payable to �̾�����Ƶ. In the event the employee does not commence employment, the campus will pursue formal collection efforts and the hiring department will be responsible for funding the full amount of the advance including fringe benefit charges thereon if the advance is not repaid.

E. PROCESSING THROUGH PAYROLL

The transition allowance is paid through the Payroll system as taxable additional pay, following normal Payroll procedures.

F. REQUIRED COMMUNICATION WITH EMPLOYEE

The hiring department is responsible for communicating information regarding payment and taxability of the allowance to the employee. To accomplish this, the following paragraph should be included in the employment agreement or offer letter.

DISCLOSURE
A comprehensive transition allowance in the amount of $____________ will be paid in lieu of moving, relocation and employment transition cost reimbursement and/or payment. The allowance will be paid to you during your first month of employment. It will be processed as additional taxable compensation through the Payroll system with all applicable income taxes and FICA amounts deducted.

G. EFFECTIVE DATE

This policy is effective for all negotiations with prospective employees initiated or settled after December 31, 2017.

H. ADDITIONAL GUIDANCE FOR UNIVERSITY OF NEW HAMPSHIRE SPONSORED PROGRAMS

Payments to vendors to relocate professional labs are allowable direct charges to sponsored��programs.

1. Criteria for charging employee transitional allowances to sponsored programs:

a.�� ��Must be "reasonable" and justified with written documentation prepared and maintained by the hiring department, based on comparable industry or survey data for each individual receiving an employee transition allowance;

b.�� ��Must be "allocable" for proportional benefit, according to the terms of the employee's appointment. If appointment is 50% research and 50% teaching, the sponsored program can be charged no more than 50% of the total employee transition allowance;

c.�� ��Must be "consistently applied" such that the average transition allowance charged to federal funds is not materially and substantially higher than the allowances charged to other UNH funds;��

d.�� ��The amount of each employee transition allowance must adhere to the pertinent sponsor rules and regulations, and to specific OMB circulars when federal funds are involved.

2. Pre-Approval requirements

a.�� ��Prior approval by UNH Sponsored Programs Administration (SPA) is required for employee transition allowances, as with all other forms of additional pay when charges are proposed for UNH sponsored programs. (See UNH V.F.7.3.3.1.6.2).

b.�� ��Prior to the President's and SPA's approvals, when an allowance is proposed to exceed 10% of the new employee's regular starting salary, approval by the VP for Research and Public Services is required when UNH sponsored programs funds will be charged.

3. Timing of Payment

If sponsored programs funds are paid to an employee who does not commence employment or the advance is not fully repaid on a timely basis, the charges must be moved to an unrestricted funding source.

4. References

a. Federal requirements related to recruiting costs

b. National Science Foundation's Grants Policy Manual, section 642, Relocation Costs

Forms

�̾�����Ƶ Transition Allowance Promissory Note

�̾�����Ƶ Transition Allowance Promissory Note (Optional)