ADMINISTRATIVE RULE NO: AR 5035-10

RELATED TO POLICY NO: 5035

TITLE: ALLOWABLE BUSINESS-RELATED EXPENSES

PURPOSE
To identify allowable business-related expenses

STATEMENT
It is the responsibility of LBCC to acquire materials and services required to perform business-related work. Below are guidelines pertaining to allowable and non-allowable expenditures for sundry items.

Dues and Memberships
Professional organizations/civic clubs/chambers of commerce
1. Personal and institutional memberships in professional organizations may be paid for with college funds when such memberships are directly beneficial to the college and relate to an employee's job.
2. Memberships in civic organizations and chambers of commerce may be paid for when an employee's college duties require such membership. Approval of the employee's supervisor is required.
Group Meals Served at Meetings
1. On-campus meetings/off-campus meetings/out-of-district meetings:
  Meals may be paid for with college funds if the employee is directed to attend a meeting at which college business is conducted and the meal is a part of the agenda. Providing or paying for meals should not be a routing function of doing college business and employees should seek to minimize this occurrence. Supervisor approval is required.
2. Hosting professional associates
  The college recognizes that situations often arise where prudent judgment and customary practice indicate that furtherance of the college's interests will be best accomplished by incurring the expense involved as host for a college business- related meal. Meals provided for non-LBCC employees for the purpose of developing a college relationship or for promoting goodwill are reimbursable, provided that such meals are furnished in an atmosphere conducive to a business discussion. When applicable, the meal should be paid for and reported by the most senior college employee in attendance. Routine operational meetings are not considered allowable hosting functions. Expenditures should document the unique nature of the hosting activity. Supervisor approval is required.
3. Receptions/recognition events/staff development activities
  Meals may be paid for with college funds if the event relates to college business. Routine operational staff trainings/meetings are not considered allowable development activities. Expenditures should document the unique nature of the event. Supervisor approval is required.
4. Birthdays/anniversaries/personal events/retirements
  Meals for these types of activities may not be purchased with college funds. However, a meal for a retiree and his/her guest at a retirement dinner may be paid for with college funds.
5. Alcohol
  No alcohol will be purchased with college funds.
Refreshments Served at Meetings
1. Business-related receptions/business-related recognition events/guests of LBCC/staff meetings/retirements:
  Refreshments may be paid for with college funds when an event represents a unique or special occurrence related to college business. Refreshments for staff meetings should be limited to extended trainings/meetings that cannot be reasonable aligned with normal work and break schedules.
2. Birthdays/anniversaries/personal events
  Refreshments for these types of activities may not be purchased with college funds.
3. Alcohol
  No alcohol will be purchased with college funds.
Miscellaneous
1. Items of appreciation, condolence, or recognition
  The college may pay for items of appreciation, condolence, or recognition if the activities/events to be recognized are extraordinary in nature and relate to college business. An originator's signature and supervisor approval signature are required. Such purchases shall be infrequent and items purchased shall be of nominal value.
2. Subscriptions, journals
  Subscriptions and journals that are necessary and required in performance of an employee's job qualify for use of college funds; those that directly relate, or are beneficial to the employee's job may be reimbursed from college funds with supervisor approval. Departments should determine in college-wide, institutional subscriptions exist through the Library or other central offices before incurring departmental charges.
3. Business related use of personal cellular phone
  Employees may be reimbursed for business related calls that appear on the employee's personal cell phone invoice. In order to be reimbursed, a charge specific to the business call must appear on the invoice, and the employee cannot be receiving a monthly stipend for business use of a personal cellular phone (see Administrative Rule 5045-03). Cell phone charges shall be submitted monthly on a reimbursement form with a copy of the invoice indicating the business related calls. Any reimbursement request must include both the employee's and the supervisor's signature. The college will not make any payments directly to a vendor for an employee's purchase of a cell phone, plan, or minutes used.
4. Other items
  Miscellaneous items that are required to support instructional or operational functions may be reimbursed with appropriate documentation. Supervisor approval is required.
Disallowed Expenses
1. Unreasonable items
  The college expects LBCC employees to be prudent in incurring college-related expenditures. Failure to comply with established procedures may result in personal liability to the employee.
2. Personal items
  Personal use items, including such things as aspirin, holiday decorations, coffee, and other personal refreshments, are not allowable college expenses. It is inappropriate for any LBCC employee to utilize the college purchasing process (purchasing card, purchase order, invoice voucher) for any non-official business purchases. Sanctions may be imposed for violations, including oral or written warnings or reprimands, suspension with or without pay for specified periods of time, or termination of employment.
Approvals
College-related expenditure reimbursements will be paid only with proper approval. Reimbursement requests require both employee and supervisor of record or designee approval.

Those approving expenses are responsible for assuring that the reimbursements:
1. comply with college policy;
2. have adequate documentation to support the expenditure;
3. are valid and reasonable; and
4. reflect minimum expense levels consistent with the accomplishment of college interest.
Documentation
Itemized receipts are required for reimbursement of college-related expenditures. Copies of canceled checks and credit card receipts are acceptable with an itemized listing attached.

DATE OF ADOPTION: 08/10/93
DATE(S) OF REVISION(S): 04/17/01; 02/03/09; 05/02/11; 10/31/16; 11/5/2020
DATE OF LAST REVIEW: 10/31/16