BOARD APPROVED: February 2015

POLICY INDEX

PURPOSE...... …...3

EXPENSE REIMBURSEMENT...... …...3

RECEIPTS FOR PERSONAL EXPENSE REIMBURSEMENT...... …...4

RECEIPTS FOR NORTHWEST UNIVERSITY VISA USAGE...... …………….....4

NECESSITY OF TRAVEL...... 4

PERSONAL TRAVEL and SPOUSALEXPENSES…………………………………....4

AIR TRAVEL...... …………..…………..5

FREQUENT FLYER MILEAGE...... ……………..………..5

ACCOMMODATION...... ………………..……..5

MEALS and TIPS...... ………..……………..6

OTHER EXPENSES...... ………..……………..7

GROUND TRANSPORTATION...... ……………..………..7

PERSONAL CARS...... 8

PARKING and TOLLS...... …………..…………..8

CASH ADVANCES...... …………..…………..8

NON-REIMBURSABLE EXPENDITURES...... …………..…………..9

Purpose

Northwest University (NU)recognizes that an employee may be required to travel or incur other expenses from time to time to conduct University business and to further the NU mission of “Carrying the Call”. It is the policy of NU that a corporate issued VISA purchasing card(Pcard)be the primary method for paying for all travel related expenses. The purpose of these Travel and Expense policies is to:

Ensure all employees have a clear and consistent understanding of policies and procedures for business traveland expense reimbursement across the organization

Increase organizational efficiency and effectiveness in travel arrangements and spend documentation

If employees need clarification on any aspect of these policies, they should first inquire of their manager. This isn’t an exhaustive policy therefore if there are issues that aren’t covered herein; please contact the Accounting Department at .

Expense Reimbursement

In the event that employees use their personal funds for authorized NU business purposes, NU will reimburse only reasonable and necessary expenses actually incurred by employees in the course of business activities that have both proper documentation and manager approval.

Expenses will not be reimbursed unless the employee requesting reimbursement submits a NU Expense Reimbursement Report that is complete. The Expense Reportmust include:

  • Employee’s name
  • If reimbursement for travel is requested, the date, origin, destination and purpose of the trip, including a description of each NU-related activity during the trip
  • An itemized list of all expenses for which reimbursement is requested associated General Ledger numbers. Original receipts are ordered,taped on a separate attached sheet (multiple receipts can be done on one page), clearly identified to the Expense Report (by using #’s or letters). A personal credit card statement is not an acceptable receipt.
  • The signed approval by employee’s manager. Signed approval means that the approving manager attests that the expenses were necessaryand that the expense report is complete and correct to the best of their knowledge.
  • The name and affiliation of all people for whom expenses are claimed (i.e., people on whom money is spent in order to conduct NUbusiness)

It is the responsibility of the Accounting Department to question any expense that looks out of the ordinary and that is not properly documented. Questionable items or incorrect reporting may result in the reimbursement request being partially paid or returned to the employee for correction. NU reserves the right to terminate and retrieve financial loss from any employee submitting a fraudulent report for reimbursement.

Employees reimbursed by direct deposit/EFT (Electronic Funds Transfer) will be reimbursed on a weekly basis. Requests received by 5 PM Monday will be paid by Friday of that week. Employees reimbursed by check are paid within the standard payment cycle of thirty (30) days.

Employees must file the NU Expense Reimbursement Report no later than ten (10) business days upon return. Expense Reports submitted one hundred twenty (120) calendar days after expenses occur are not eligible for reimbursement except by written approval from CFO or President.

Receipts for PersonalExpense Reimbursement

Receipts are required for all personal expensesthat will be reimbursed byNUto employee (except as noted: mileage on personal car usage and parking/sky cab/tips or transportation under $15). Please attach the original receiptsfor all other expenses to the NU Employee Expense Reimbursement Report. If a receipt cannot be located, one of the following processes must be followed by the employee:

  • Obtain a duplicate receipt from the merchant
  • Provide a Missing Receipt Affidavit, for each transaction, signed by the employee and their manager. Missing Receipt Affidavit forms are located on the Accounting Department NU Eagle website.

Receipts for NU VISA Pcard Usage

Receipts are required for all expenses that occur using a NU Visa Pcard. Please upload these on the US Bank Access Online website for each transaction listed. If a receipt cannot be located, one of the following processes must be followed by the employee:

  • Obtain a duplicate receipt from the merchant
  • Provide a Missing Receipt Affidavit, for each transaction, signed by the employee and their manager. Missing Receipt Affidavitforms are located on the Accounting Department NU Eagle website.

Necessity of Travel. In determining the reasonableness and necessity of travel expenses, employee shall consider the ways in which NUwill benefit from the travel and weigh those benefits against the anticipated costs of the travel. The same considerations shall be taken into account in deciding whether the benefits to NUoutweigh the costs, less expensive alternatives, such as participation by telephone or video conferencing, or the availability of local programs or training opportunities, shall be considered.

Personal Travel and Spousal Expenses. Employees may incorporate personal travel or business with their Company-related trips; however, employee shall not arrange Company travel at a time that is less advantageous to NUor involving greater expense to NU in order to accommodate personal travel plans. The NU VISA Pcard should not be used for any additional personal expense. NU reserves the right to obtain payment from employeefor any additional expenses incurred as a result of personal travel including, but not limited to, airfare, extra hotel nights, additional stopovers or transportation. Spousal expenses will be considered valid business expenses if they are considered to be necessary and ordinary business expenses. The spousal expenses must be pre-approved by supervisor before the travel expenses are incurred.

Air Travel

General. Air travel reservations should be made as far in advance as possible in order to take advantage of reduced fares. Advance notice of fourteen (14) days before travel is preferred. It is NU’s policy that the employeeaccepts the least expensive available airfare in Economy or Coach Class, without unreasonable inconvenience to the employee. Reserving ahigher Class of air travel must have prior approval by a member of the Office of the President.

Frequent Flyer Miles and Compensation for Denied Boarding. Employees traveling on behalf of NUmay accept and retain frequent flyer miles and compensation for denied boarding for their personal use. Individuals may not deliberately patronize a single airline to accumulate frequent flyer miles if less expensive comparable tickets are available on another airline.

Accommodations

NU recognizes that employees have several variables when determiningaccommodations. As a general guideline, the standard accommodation for a Domestic-US hotel is a three (3) star rating. The chart below is a guideline for hotels and meals per day. Reasonable judgment is assumed when applying the guidelines (i.e. the higher end hotels should not be used when a La Quinta Inn would be sufficient). Likewise the higher end meal ranges for dinner would be reserved more for donor cultivation.

Location Costs / Hotel Rate Range / Meals Per Day Range
Lower Cost Locations / $ 90 –$120 / Breakfast $ 5 - $15
Lunch $10 - $20
Dinner $15 - $25
Higher Cost Locations – i.e. Major metro or Tourist locations such as Orlando or Branson, MO / $150 - $200 / Breakfast $ 5 - $15
Lunch $10 - $20
Dinner $15 - $25

If employee is attending a conference, it often makes the most sense to stay at their recommended hotel in order to limit proximity inconvenience and transportation costs. When traveling internationally, employee should make a logical hotel determination based upon security and proximity to destination.

Requests for specific hotels to maximize personal frequent guest program participation will not be given priority over cost savings for NU. NU will not reimburse employee for use of their points when utilized for business travel. Use of personal frequent guest benefits is voluntary.

Employees who stay with friends or relatives and do not incur hotel expenses will be reimbursed for a reasonable gift expense for the friend/relative. The gift expense should not exceed $50/night or $100/stay.

Meals and Tips

The actual costs of meals incurred by employee to conduct NU business are reimbursablebusiness expenses. Employees should be cost conscious and spend Universityfunds as carefully and judiciously as the employee would spend their own personal funds. Good stewardship through reasonable cost meals is expected. The chart above gives general guidelines and it is reasonably expected that the higher end dinner ranges are reserved for donor cultivation. Original itemized receipts are required for all expenditures. If a Pcard is used, the receipt must be uploaded onto the US Bank Access Online website for each meal transaction, the comments section must list the people to whom the meals benefited, and the business purpose of the meal. If the meal was purchased on a personal credit card then the same information as to who was in attendance and the business purpose must be clearly written on the original receipt. In addition, the receipt must be the itemized bill of the food and beverages consumed along with a notation on the tip that was given.

Tips which are reasonable in nature and amount are a reimbursable business expense. Whenpart of a meal, entertainment or cab expense, they should be included in that cost. Tips shouldbe no more than 18% of the bill. As a general rule, employees should not tip more than they would on a personal trip.

Other Expenses

Necessary business calls and internet charges will be reimbursed. Employees are encouraged to use the least expensive method available (i.e. telephone card and 1-800 numbers). Hotel assisted calls should be avoided. Reasonable facsimile and copying charges for business materials will be reimbursed.

Reasonable laundry expenses will be reimbursed for business travel in excess of five (5) days.

Excess baggage expenses will be reimbursed only when traveling with heavy or bulky materials that are necessary to accomplishNU business.

Ground Transportation

Employeeis expected to use the most economical ground transportation appropriate under the circumstances and should generally use the following, in this order of desirability:

Courtesy Car: Many hotels have courtesy cars, which will take you to and from the airport at no charge. Employees should take advantage of this free service whenever possible. Another alternative may be a shuttle or bus.

Subway: In some regions, a subway can be utilized in order to obtain a close proximity to hotel accommodations.

Taxis: When courtesy cars, airport shuttles or a subway aren’t available, a taxi is often the next most economical and convenient form of transportation when the trip is for a limited time and minimal mileage is involved. The frequency of trips required to make will determine if this is a reasonable option.

Rental Cars: The University has a master agreement with Enterprise/National Rental car agency. This should be utilized whenever possible. The agreement covers all the liabilities so there should be no further insurance needed when renting a car from Enterprise or National. In addition, there is no surcharge imposed for drivers over the age of 18 but under the age of 25. The account number to use is: XZ45529. If prompted for a PIN use NORT.

A general guideline on when to rent a car or when to drive your own vehicle follows:

Rental Car / Use your Own Vehicle
One Day Trip / 85 miles / 86 miles
One Week Trip / > 300 miles / < 301 miles

Personal Cars

Employee will be compensated for use of their personal car when used for NU business. When individuals use their personal car for such travel, including travel to and from the airport, mileage will be allowed at the currently approved IRS rate per mile. Employee will not receive reimbursement for traveling to and from work for regular business days.

As a general rule of thumb the following guidelines should be followed:

Roundtrip to the airport40 miles roundtrip (computed using Mapquest from

Kirkland campus to SeaTac Airport) to airport is the max

mileage reimbursed. Unless your residence is less than

that, then the lower mileage is to be used.

If Employee meets a donor before work Round trip from the meet to NU campus

If Employee meets a donor after work Round trip from NU campus to the meet

If there are mtgs during work hrs Round trip from NU campus to the meet and back

If an event after workRound trip from NU campus to the event

If an event on weekend(req to attend) Round trip from home to event back

In the case of an employee using their personal car to take a trip that would normally be made by air, mileage will be allowed at the current IRS approved rate and the total mileage reimbursed will not exceed the sum of the lowest available round trip coach airfare.

Parking and Tolls

Parking and toll expenses, including charges for hotel parking, incurred by employee traveling on NU business will be reimbursed. The costs of parking tickets, travel violations and valet service are the responsibility of the employee and will not be reimbursed. On-airport parking is permitted on business trips two (2) days or less. For extended trips, employee should use off-airport facilities.

Cash Advances

Cash advances are permitted where warranted. Requests must be authorized in advance by the employee’s manager and submitted to Accounts Payable at least five (5) business days prior to departure. Within ten (10) days upon return, employee must submit all remaining cash and receipts for expenditures via the NU Advance Report or the advance will become an employee obligation on their NU 1010 account. If employee has a corporate issued VISA Pcard, employeeshould contact Controller or Assistant Controller for temporary increases to card limits. All cash advances are the employee’s personal obligation. Should an employee leave NU’s employ while there is an outstanding balance due, the amount will be deducted from the employee’s final pay.

Non-reimbursable Expenditures

NUmaintains a strict policy that expenses in any category that could be perceived as lavish or excessive will not be reimbursed, as such expenses are inappropriate for reimbursement by a Christian organization. Expenses that are not reimbursable include, but are not limited to:

  • Expenses for spouses, friends, or relatives. If a spouse, friend or relative accompanies employee on a trip, it is the responsibility of the employee to determine any added cost for double occupancy and related expenses and to make the appropriate adjustment in the reimbursement request.
  • First class tickets, upgrades or travel insurance
  • Limousine travel(except in the case where a large enough group is traveling and it is more economical)
  • Movies, reading material, liquor or toiletry articles
  • Membership dues at any country club, private club, athletic club, golf club, tennis club or similar recreational organization
  • Clothing, spa or exercise charges
  • Valet service or car washes

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