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The Procurement Department is part of the Financial Management Services organization and reports to the Senior Associate Vice President for Finance. Component groups are described below.

a. Strategic Purchasing Services
Strategic Purchasing is responsible for acquisition of a wide variety of products and services. Procurement buyers' responsibilities include maintaining lists of prospective and approved vendors, soliciting bids or proposals, negotiating price and terms and conditions of purchase, selecting suppliers and issuing purchase orders.

Contract Specialists are responsible for negotiating, writing and executing written contracts. Contract specialists negotiate and write consulting agreements, sponsored project subcontracts, repair and construction agreements, architectural, engineering and other services agreements and service order agreements.

b. Strategic Payment Services
Strategic Payment Services is responsible for ensuring payment procedures have been followed and suppliers of products or services are paid. Strategic Payment Services also establishes policy regarding sales and use taxes and ensures their collection and remittance.

c. Procurement Systems
The University has implemented Oracle Financials systems to manage its financial transactions. All acquisition transactions, including purchase requisitions, reimbursement requests, purchase orders, invoices, and payments must be entered in the Oracle Financials system. This system is referred to simply as "Oracle Financials" elsewhere in this and other Guide Memos.

a. Internal Audit
Internal Audit conducts periodic reviews of the Procurement organization and facilitates external audits, as required. Staff of both offices work together to implement Internal Audit's recommendations. Procurement may participate in audits of other departments if the audit involves one of Procurement's functions.

b. Office of Sponsored Research (OSR)
OSR has primary responsibility for negotiation and administration of contracts and grants between Stanford and outside sponsoring agencies, including the federal government. OSR's responsibilities include signing, on behalf of the University, various certifications required by federal or state agencies, including the Certification of Compliance form from suppliers or vendors. Procurement and OSR confer on award document provisions that affect either the contracting process, subcontracting under private or federal prime contracts, or University compliance with federal regulations, such as Public Law 95-507 or other socio-economic provisions.

c. Property Management Office (PMO)
The Property Management Office is responsible for developing, implementing and maintaining the equipment inventory system. PMO reviews capital equipment acquisitions and surplus property sales requests for conformance with University property procedures.

Surplus Property Sales sells surplus equipment and material to Stanford departments, employees, students and the general public. See Guide Memo 5.2.4: Surplus Property Sales, for more information.

d. Land, Buildings and Real Estate (LBRE).
Multiple LBRE departments provide a range of services, including:

(1) Department of Project Management (DPM)
DPM is responsible for major construction project management and project administration within LBRE.  Procurement is responsible for the commercial aspects of contract negotiation, contract execution and contract administration for DPM.
(2) Buildings and Grounds Maintenance (BGM)
The Contracts Group negotiates Service Order Agreements for BGM, which enables the Buildings Operations Group to deal directly with contractors for repairs, maintenance, and minor construction for Stanford structures, systems, and grounds.  For contracted facilities renewal and planned maintenance, Zone Management coordinates with Procurement to bid, negotiate, and award maintenance, design, studies, and construction contracts on a per project basis.
(3) Other LBRE Departments
In addition to DPM and BGM, other LBRE departments, including Sustainability and Energy Management (SEM), Land Use and Environmental Planning (LUEP), and University Architect/Campus Planning and Design (UA/CPD) have responsibility for undertaking and/or providing studies, projects and services related to campus utilities and transportation, land use and environmental issues, as well as building and landscape design.   

g. Risk Management
Risk Management assists departments with claims over $1,000 for damaged or lost goods.

a. Planning
To facilitate negotiation with vendors on price agreements, Procurement encourages schools and administrative areas to provide the Director of Strategic Purchasing Services with a long-range forecast of anticipated acquisitions during annual budget formulation.

b. Order Management
The University department initiating an order is responsible for the following:

• Timely acknowledgment of receipt or acceptance of goods or services, including entry of receiving information in Oracle Financials.
• Timely notification of Accounts Payable in cases of disputes which might require withholding of payments from a supplier.
• Monitoring department and supplier performance in accordance with the terms of the contract or order.
• Notifying Procurement in the event of inadequate performance or nonperformance by a supplier.

c. Permits and Licenses
The department is primarily responsible for signing or obtaining necessary permits or licenses in support of the acquisition of products, i.e., import licenses, U.S. Department of Agriculture permits for importation of a biohazard, etc. (see Guide Memo 5.1.1: Procurement Policies).

d. Logistics
(1) Packing and Shipping Off-Campus
The department is responsible for packing items for shipment. The person(s) packing and/or signing the shipping papers for any "Dangerous Goods" including Dry Ice, must be trained and certified. The training and certification must be repeated every two years. For further information and assistance, see Shipping of Hazardous Materials. 
(2) Loss or Damage Claims
The department is responsible for asserting any claim for damaged or lost goods. (Procurement and Risk Management may be available to assist; see Guide Memo 2.4.4: Property and Liability Insurance, and Guide Memo 5.3.1: Requisition Processing.

a. Office of Naval Research (ONR)
The Office of Naval Research has cognizance for administration of most Department of Defense and NASA contracts at Stanford. Procurement works closely with ONR for any necessary approvals on government subcontracts. ONR conducts a periodic review of Stanford's Procurement system and Procurement works with ONR to implement recommendations made.

b. Defense Contract Audit Agency (DCAA)
The Defense Contract Audit Agency conducts periodic audits of Stanford's Procurement system. As with ONR's annual audits, Procurement works with DCAA to implement any recommendations.

c. Small Business Administration (SBA)
The SBA has responsibility for reviewing Stanford's activities under government regulations for doing business with small business and other targeted concerns (see Guide Memo 5.5.1: External Affirmative Action). SBA visits Stanford periodically and examines supplier selection and subcontract award practices, particularly under government contracts for which Stanford has submitted subcontracting plans.

a. Leases
Leases are contracts under which a lessee has committed to pay stipulated cash payments for the use of an asset (either equipment or real estate) for a specific period of time. For the purposes of this Memo, a lease is considered the commitment to pay for the use of an asset for longer than one year, with total contracted cash payments over the term of the lease of $5,000 or greater.

Capital and operating leases are considered long-term financial obligations of the University. Therefore, all new leases and lease renewals, either equipment or real estate, are considered a use of the University's debt capacity.

b. Rentals
Commitments not meeting these qualifications should be considered rentals that are not subject to this policy.

c. Capital Lease
An equipment lease is capitalized if the total anticipated contracted cash payments over the term of the lease, excluding any transportation costs, are greater than or equal to $200,000, on a per contract basis, and at least one of the following criteria is met:

• By the end of the lease term, ownership of the leased property is transferred to Stanford
• The lease contains a bargain purchase option that Stanford reasonably expects to exercise
• The lease term is substantially (75% of more) equal to the estimated useful life of the leased property
• At the inception of the lease, the value of the minimum lease payments is 90% or more of the fair value of the leased property.

Capital leases are reported as an asset and a liability on Stanford's financial statements and interest and depreciation are expensed.

           d. Operating Lease
When an operating lease does not meet the definition of a capital lease in 1.c above, the operating lease payments are expensed as incurred.

a. Approvals and Thresholds
Equipment leases with total anticipated contracted cash payments over the term of the lease of $200,000 and above must be approved by the CFO. Equipment leases with total contracted cash payments over the term of the lease under $200,000 can be approved by managers with requisite expenditure authority in relationship to total contracted cash payments.

b. Approval Forms
The Equipment Lease Approval form can be downloaded from the Gateway to Financial Activities website. 

c. Board of Trustees Approval
Equipment leases with total anticipated contracted cash payments of $5,000,000 and above require approval by the Board of Trustees.

d. Requisition
Following budget approval, departments must submit an online requisition for the total contracted cash payments over the term of the lease to Procurement in Oracle Financials using the Standard Lease category.

e. Lease Terms
Procurement is responsible for negotiating equipment lease terms. Equipment leases must be signed and executed by the Director of Procurement or the CFO.

f. Reporting Requirements
Departmental Property Administrators are responsible for establishing and maintaining property records for leased equipment in the Sunflower Asset Management System. Leased equipment must be tagged and tracked according to the policies of the Property Management Office. 

By September 30 each year, departments must provide the Controller's Office with a certificate and a schedule of all equipment lease obligations to assist with the preparation of the University's financial statements and the property tax-exemption application. Reporting forms for equipment lease obligations can be downloaded from the Gateway to Financial Activities website.

g. Return of Equipment
Unless the department wishes to buy the equipment, a memo to Procurement is sufficient to return the item at the end of the lease. Procurement will notify the lessor.

h. Equipment Purchase at the End of the Agreement
To buy equipment at the end of a lease, the department must submit a new online requisition, using the Standard Capital Equipment category and referencing the original lease purchase order number.

i. Receiving Equipment
The department must inspect, verify and document the condition of leased equipment when received. Online receiving in Oracle Financials is required for leased equipment. A record for each asset must be entered into the Sunflower Asset Management System within 30 days of receipt.

j. Insurance
Stanford's high deductible insurance coverage makes it unlikely that the University's insurance carrier would pay for any loss or damage. Therefore, lessor's insurance for equipment should cover all aspects of damage and injury. For more information, contact the Assistant Vice President of Risk Management.

k. Change of Terms
Departments must observe the start and stop dates of the lease. Using the equipment outside the terms of the agreement has significant contractual implications and may subject Stanford to additional rental charges, early termination charges, and other liabilities. The lessor's insurance may be valid only during the stated period. To terminate an equipment lease early, the department must contact the assigned buyer in Procurement.

l. Renewals and Extensions
Departments must submit an online requisition to Procurement to extend the duration or renew the term of a lease.

a. Approval Process and Thresholds
All real estate leases must be included as a capital request in the Capital Planning Process. The Capital Planning Process is managed by the Vice President for Land, Buildings & Real Estate and occurs in conjunction with the annual budgeting process for the University. Departments are required to submit their capital plans and requests for debt to the Vice President for Land, Buildings & Real Estate for approval.

Real estate lease searches and/or negotiations initiated outside the Capital Planning Process must be approved by the Vice President for Land, Buildings & Real Estate.

Any real estate leases, not included in the Trustee-approved Capital Budget, require separate approval from (1) the Vice President for Land, Buildings & Real Estate if the total anticipated contracted cash payments over the term of the lease are under $1,000,000, or (2) the Provost if the total anticipated contracted cash payments are $1,000,000 or above.

b. Approval Forms
Real estate lease approval forms can be downloaded from the Land, Buildings & Real Estate website.

c. Board of Trustees Approval
Real estate leases with total contracted cash payments of $5,000,000 and above require approval by the Board of Trustees.

d. Requisition
Following approval and prior to negotiating lease terms, departments must submit an off-campus lease requisition form to the Vice President for Land, Buildings & Real Estate. The form can be downloaded from the Land, Buildings & Real Estate website. The Vice President will direct the request to the Managing Director, Real Estate for target locations within the Stanford Research Park or the Welch Road corridor. The Vice President will advise in the search, or direct the requestor to an approved real estate advisor for other target locations.

e. Lease Terms
The Vice President for Land, Buildings & Real Estate and/or the Managing Director, Real Estate will assist departments in negotiating lease terms. Real estate leases must be executed by the Vice President for Land, Buildings & Real Estate or the Managing Director, Real Estate.

The Office of the General Counsel must review and approve material exceptions to standard terms.

Upon execution of the lease, departments must request a Purchase Order or BU number from Procurement for the total contracted cash payments over the term of the lease, to ensure proper recording of the transaction and to enable payments.

f. Reporting Requirements
Departments must provide the Controller's Office and Land, Buildings & Real Estate by September 30 each year, a certificate and a schedule of all real estate lease obligations to assist with the preparation of the University's financial statements and the property tax-exemption application. Reporting forms for real estate lease obligations can be downloaded from the Gateway to Financial Activities website. 

g. Insurance
Lessor's insurance for real estate leases should cover damage to the building and premises and injury occurring in the building's common areas. For more information, contact the Assistant Vice President of Risk Management.

h. Change of Terms
Departments must observe the start and stop dates of the lease. Occupying the real estate property outside the terms of the agreement has significant contractual implications and may subject Stanford to additional rental charges, early termination charges, and other liabilities. The lessor's insurance may be valid only during the stated period. To terminate a real estate lease early, the department must contact the Vice President for Land, Buildings & Real Estate.

i. Renewals and Extensions
Departments must follow the approval process to extend the duration of the original contract, exercise options included in the original contract, or renew a real estate lease.

a. Surplus Property Sales Office
The mission of the Surplus Property Sales office (SPS) is to sell University property for the best possible price while ensuring responsible handling of excess assets and contributing to campus-wide sustainability initiatives. The Board of Trustees has authorized only SPS to perform this function (Resolution Number 3 September 13, 1983). Therefore, the only entity authorized to sell tangible personal property (hereafter referred to as "property") to non-Stanford entities is SPS.

For the purpose of this document "property" is defined as capital and non-capital movable assets including, but not limited to, equipment and accessories, furniture, vehicles, or supplies.

Specialized sales may include significant involvement by departments, including the identification of a potential buyer. In such cases, the sale must be pre-approved and processed by SPS.  The check from the buyer is to be made payable to Stanford University Surplus Sales, and include sales tax, where applicable. All payments must be deposited by Surplus Property Sales.

b. University Departments
Departments may not give, sell or donate property to individuals, including Stanford employees and students, or to non-Stanford entities, including non-profits. If a department arranges a buyer to purchase property, the sale amount must be approved by SPS.  All sale transactions must go through SPS. Departments may transfer property to other departments, either for no charge or for credit to departmental accounts. The property must be used for University business purposes. The ReUse website is available to facilitate viewing and posting items available for interdepartmental transfer. The transferring and receiving departments must notify the Department Property Administrator (DPA) and Property Service Representative (PSR) of a transfer to ensure asset records reflect the change. Refer to the Property Management Manual for transfer procedures.

a. Transfer Between University Departments
Because title to the item remains in the University, there is no sales tax incurred.

b. External Sales
Sales tax will be applied, as required, to all external transactions.

a. Disposition Requests
The Department Property Administrator (DPA) initiates an excess request upon notification of excess property.  Surplus Sales will determine optimum disposition method for the assets, including potential sale.  For specific information refer to Section 4.2, Disposition and Transfers in the Property Management Office (PMO) Property Management Manual.

b. Sales Terms and Conditions
Established terms and conditions apply to all sale transactions. Full description of these is available in Section 4.3, Surplus Property Sales, in the Property Management Manual.

c. Sales Commission
As a self-funded department, SPS retains a percentage of all sales based on the SPS Fee Structure, for purposes of offsetting operating expenses. The SPS Fee Structure is reviewed and approved annually as part of the University's budget process.  Refer to Section 4.3, Surplus Property Sales, in the Property Management Manual for additional details.

d. Sales Expense
Any expenses related to the sale of an item will be deducted from the proceeds of the sale or charged to the department if no sale occurs. Sales expenses may include, but are not limited to: appraisal, advertising, brokerage, or auction fees; diagnostic, registration, smog and repair costs; moving, handling, transportation, and disposal expenses.

e. Proceeds
The proceeds from sales of any University-owned property belong to the University. Sales revenues are distributed in accordance with the approved SPS fee structure.

f. Delivery
Buyers are responsible for timely packaging, removal and transport of the items they buy.

g. Sale Records
The buyer may not take possession until payment has been received by SPS. Records of all sale transactions are retained by SPS per University Policy as stated in Guide Memo 3.1.5: Retention of Financial Records.

h. Equipment Inventory Update
Property records are updated by PMO as appropriate, to reflect the final disposition transaction.

i. Non-Marketable Property
Items that are broken, inoperable or otherwise deemed unsellable will be disposed or recycled per University policies via the prescribed excess process by Surplus Sales. For equipment items there is no additional cost to departments for this service. For furniture items, such items may be disposed of by departments at their cost with prior approval from PMO.

j. Right of Refusal
Surplus Sales may refuse items that are deemed to be in non-marketable condition. Delivery will be diverted to PSSI for disposal at the originating department's expense.

a. Property owned or funded by Federal or other Sponsors
Authorization from the Sponsor may be required prior to disposal or sale. The DPA must work closely with the Property Management Office in handling such transactions. Contact your Property Service Representative (PSR) for further instructions.

b. Donated Equipment
Internal Revenue Service requirements may restrict or prohibit sale of donated equipment. See Guide Memo 4.2.3: Records of Donated Equipment, for more information.

c. Hazardous Equipment

1. Contamination Risk
   Prior to release from the department, property must be decontaminated per Environmental Health & Safety guidelines.  A list of items that must be sanitized is available at the Environmental Health & Safety website. 
   Items that require sanitization must have a letter confirming sanitization attached to the unit prior to being picked up or delivered to SPS.
2. Injury Potential
   For property with the potential to cause injury, SPS and the department will discuss whether the property should remain with the department pending final disposition, so that only people familiar with the equipment will handle it.

d. Software and Sensitive Data
Before delivery to SPS, departments must take steps to permanently remove University proprietary information from any computer or computer peripheral device. See Secure Computing for a complete description of University policy regarding data sanitization. Special care should be taken with licensed application software to ensure that the terms of the licensing agreement regarding sale or transfer have been observed.

If a department frequently needs supplies or services from the same supplier, Procurement may establish a blanket purchase order. Blanket purchase orders are established for varying periods, and allow the department to order directly from the supplier. The blanket purchase order contains ordering and billing instructions, a price agreement, and a description of the goods or services that can be ordered.

a. Audit Trail
The ordering department is responsible for maintaining a complete audit trail of transactions under a blanket purchase order. This includes administering and documenting the authority for issuing orders and maintaining records of transactions.

b. Releases
Individual releases under Blanket Purchase Orders are not entered online in Oracle Financials. The ordering department is responsible for tracking releases independently of online systems. All releases must carry the Blanket Purchase Order Number, and any invoices presented must also carry the Blanket Purchase Order Number.

The Procurement Department may determine that the interests of productive business dictate a consolidation of business activity. If many departments use one supplier, then Procurement may establish a University-wide Purchase Agreement with that vendor.

a. Releases
University departments should enter a requisition, for each transaction released against a University-Wide Purchase Agreement.

b. Temporary Service
Agency Agreements are established on a University-wide basis every two years. For information about approved agencies, call Procurement. To obtain temporary service help from an agency on the approved list, the department enters an appropriate requisition online. The Agency in turn references the approved Purchase Order Number on its invoice. The invoice and a copy of the temporary employee's time sheet (previously approved and signed by the department representative at the end of the employee's work) are sent to Accounts Payable for payment.

a. Stanford Bookstore
Departments order books and supplies from the Bookstore using a PurchasingCard ("P-card") or standard purchase order.

b. Books not Stocked in Bookstore
When books are not available in stock, the Bookstore will order from a book wholesaler or publisher. Books will be shipped directly from the wholesaler or publisher to the department.

c. Purchasing with Grant or Contract Funds
When grant or contract funds are used for Bookstore purchases, the department requesting the purchase is responsible for ensuring that the purchases are authorized by the funding source. In some cases, low-cost items such as calculators are viewed in grants or contracts as general purpose equipment and may not be purchased without advance approval by the funding source. Contact the Office of Sponsored Research for more information.

Direct orders for books should be placed via a standard requisition in iProcurement.

Periodical subscriptions and membership dues should be paid via a Non-PO Payment Request in the Expense Requests system.

a. Requesting Reimbursement
Reimbursement of an individual's personal expenditure for books, subscriptions or membership dues with subscriptions can be made through petty cash if the items are within current petty cash dollar limits. All other reimbursement requests must be made via an Expense Report in the Expense Requests system.

b. Receipt Required
The individual is responsible for providing an original receipt showing proof of payment with the request for reimbursement. A copy of the personal check after processing by the bank can serve as a receipt if none is provided by the supplier.

Whether an individual is an employee or an independent contractor is determined by the facts in each case.

For information about how the University determines whether an individual is an employee or an independent contractor, see Guide Memo 2.2.3: University Payroll, Section 1.

Stanford reports all payments to applicable tax authorities as required by law. Tax reportable payments are reported annually to the:

• Internal Revenue Service on IRS Form 1099-Misc. and on IRS Form 1042S for Nonresident Aliens
• California Franchise Tax Board (FTB) on CA FTB Form 592B

a. General Rules

• For payments to corporations, suppliers requiring a signed agreement, individuals on contract, or individuals performing services, initiate a Standard Requisition in Oracle Financials iProcurement.
• For honoraria payments to speakers or participants in workshops, use Oracle Financials Expense Requests Non-PO Payment requests. Honoraria payments are considered "gratuitous" payments and are subject to income tax reporting (see Section 2).
• For payments to caterers not requiring a signed agreement, use Oracle Financials Expense Requests Non-PO Payment requests or the Purchasing Card. The Purchasing Card has a limit of $4,999. Payments to caterers are subject to income tax reporting (see Section 2).

Note: Payments for services rendered may not be processed through petty cash.

b. Use of Purchasing Requisitions
A Purchasing Requisition is used to set up contracts with vendors of services to the University. For more information see Guide Memo 5.3.1: Requisition Processing.
(1) Timing of Request
The purchase requisition should be processed before the services are performed.
(2) Required Information

• Payee name and address
• Time period
• Amount to be paid
• Statement of work to be performed
• Location of work performed
• Payment schedule
• A completed W-9, which will include information regarding:
  • Social Security number or business tax identification number
  • Citizenship status
  • California residency status
    Note:The W-9 and all banking or otherwise confidential data should be be submitted via the secure Supplier Request Portal.

If the individual's compensation for work performed at the University is paid by a temporary help agency, the person is employed by the agency, and is not put on the University payroll. The University pays the agency, which is then responsible for tax deductions, Social Security payments, and Worker's Compensation insurance.

a. Approved Agencies
Procurement seeks competitive bids every two years from temporary help agencies, and enters into contracts with selected agencies, which are placed on an approved list. Only agencies on the approved list should be used.

For detailed information, see Inviting and Paying Foreign Visitors.

a. Visa Requirements
All offers of reimbursements, travel payments or honoraria to foreign visitors are contingent on the visitor entering the United States on a visa that allows the visitor to receive payments (see Guide Memo 2.4.1: Visas for and Employment of Foreign Nationals.

(1) Honoraria
Visitors with J-1 visa status may be paid honoraria but visitors with non-Stanford sponsored visas must have written permission from their sponsoring officer for payment. Visitors with B-1, B-2, WB or WT status may be paid honoraria if:

• The event lasts no more than nine days, and
• Services are a direct benefit to Stanford, and
• The visitor has not received payment from more than five institutions in the past six months.

(2) Travel Expenses
Visitors from countries that have agreements with the U.S. to waive visitor visas (WB and WT) and visitors with J-1, H-1, B-1 or B-2, or A-1/A-2 visa status may be reimbursed for business travel expenses. Visitors with B-2 visas or WT status must conform to the restrictions listed in (1) above.

b. Tax Information
(1) All Visitors
For non-payroll payments to foreign visitors holding valid visas, the department must submit a Declaration of Tax Status (Stanford Form LA-6), and copies of passport, visa and I-94 card with the Oracle Financials reimbursement request. See Requesting Payment section of Inviting and Paying Foreign Visitors.
Note: all confidential documents and data, including that listed above, should be submitted via the secure Supplier Request Portal.

(2) Visitors from Treaty Countries
If the visitor's country of residence has a treaty with the U.S. ,the following forms may also be required, depending on what type of payment is proposed:

• Internal Revenue Service Form 8233: Exemption From Withholding on Compensation for Independent Services of a Nonresident Alien Individual for honoraria or services.
• Certificate of California Residence, if applicable. Note that a tax treaty applies only to Federal taxes and does not exempt an individual from California withholding taxes.

The Travel section of the Gateway to Financial Activities website contains links to printable versions of most of these forms.
Note: Form 8233 and all banking or otherwise confidential data should be submitted via the secure Supplier Request Portal.

c. Tax Identification Number
An Individual Tax Identification Number (ITIN) or Social Security Number (SSN) is necessary if the payment is for an honorarium and the visitor is claiming a tax treaty by submitting the appropriate exemption form (see Section 5.b.(2) above).
Note: Tax Identification Numbers, Social Security Numbers and all baning or otherwise confidential data should be submitted via the secure Supplier Request Portal.

d. Withholdings
If there is no Social Security Number (SSN) or Individual Tax Identification Number (ITIN), 30% taxes will be withheld from honoraria payments. If there is no tax treaty, 30% taxes will be withheld from honoraria payments (see Section 5.b.(2) above).

a. California Withholding at Source
Payments to an individual who is not a California resident are subject to California withholding at source tax. California law requires that Stanford (the "source" of the payment) withhold 7 percent from payments for non-employee personal services made to an individual who is not a California resident, if the aggregate total of such payments to that individual during a calendar year is greater than $1,500 and services were performed in California.

b. California Residency Status
In general, non-employee, non-corporate individuals without a California address, DMV driver's license, or other sufficient evidence of California residency, who will perform their services over a period of fewer than nine consecutive months, will be presumed to be non-California residents unless they submit a Certificate of California Residence (see below).

c. Certificate of California Residence
If an individual claims exemption from California withholding at source on the grounds that he or she is a California resident, no California withholding will be taken from payments that are made after the following procedure has been completed:

• The individual claiming to be a resident must complete California Form 590 (Certificate of California Residence).
• The original must be submitted with the invoice.

Form 590 is valid for one year; a new form must be completed for a subsequent year.

d. Mandatory Communication
The host department administrator must advise any out-of-state visitor in writing and in advance of the requirements in this section.

a. Definition
Supplemental Research Support is payment for research support made by a department to an individual who is not a Stanford employee. Such payments must meet the following criteria:

• Purpose of the payment is to assist the individual in the accomplishment of research for the individual's own purposes.
• The University has no direct interest in the research (other than its general interest in the advancement of knowledge in all fields).
• The payment in no way represents compensation for the past, present, or future services rendered by the individual to the University.

b. Tax Status
Supplemental research support is treated in all respects as a fellowship for tax purposes. Fellowships paid to non-degree seeking individuals are taxable.

c. Procedure
Supplemental research support payments to visiting scholars are authorized through the Payroll Office (725-5351).

Note: Supplemental research support to a Stanford faculty or staff member must be processed as supplemental salary. See Quick Steps: Request Recurring Payment.

a. Travel Expense Policy
The University's policy is to pay for necessary and reasonable travel expenses incurred for authorized University business by employees and approved non-employees. The intent of this policy is that such payments be fair and equitable to both the traveler and the University and consistent with federal regulations. Individuals traveling on business are responsible for complying with University travel policy as described in this Guide Memo, and should exercise the same care in incurring expenses as they would in personal travel. Expenses should be submitted in a timely manner. Absent exceptional circumstances, expenses submitted more than 60 days after completion of travel will be reported as additional income to the individual, in accordance with Internal Revenue Service guidance.

b. Approval Authority
Authority and responsibility for approving travel by employees and guests of the University rests with the person responsible for the account (PTA) to which the expense will be charged. Travel expenses are payable only when all required approvals, including approval from government agencies or other project sponsors, are obtained before incurring the expense. Expenses incurred during sabbatical leave are payable when the expenses are incurred for reasonable and necessary University business and have the advance written approval of the department Chair. Employees may not authorize travel or approve expense payments for themselves, or for a person to whom they report directly or indirectly.

c. Economical Transportation Required
To be fully paid by the University, the traveler must use the most economical mode of transportation available, consistent with the authorized purpose of the trip. This includes charging no more than the rate for the most direct and usually traveled route and measuring such costs as subsistence and lost work time in addition to actual transportation costs. More expensive transportation may be used if the traveler pays the incremental cost.

GUIDELINE: Automobile transportation is generally most appropriate for round trips up to 200 miles. Commercial air travel is generally the most economical and practical for longer trips. For ground transportation, rental or privately-owned vehicles and taxis should be used only if other means of transportation are unavailable, more costly, impractical, or if the time saved is advantageous to the conduct of the University's business.

d. Limitation on Group Travel
Travel by a group of employees in the same aircraft, automobile or other means of transportation is discouraged when an accident could seriously affect the functioning of a University activity. Maximum coverage under the University's travel insurance also limits the number of employees traveling together at five.

e. Charges to Sponsored Projects
When travel costs will be charged to a sponsored project, the terms of the applicable award take precedence. Some awards may require the sponsor to pre-approve each trip, or each trip to or from a destination outside of the United States.

f. School and Department Guidelines
At their discretion, schools, departments, laboratories and institutes may impose more restrictive guidelines for budgetary or control reasons. They may not be less restrictive than guidelines stated in this policy.

g. Preferred Travel Agency and Online Booking Tool
The University has a "preferred" travel agency and has negotiated contracts to provide services for Stanford employees and their families as well as students and guests of the University. The University will pay travelers for the service fee charged by its preferred agency for Stanford business travel. The University will not pay travel costs that exceed the cost of substantially similar travel available through its preferred agency or negotiated contracts. See the Gateway to Financial Activities website for more information.  

Purpose
The University has a travel card program to facilitate payment of travel-related expenses (i.e., airfare, lodging, car rental, travel meals, etc.) incurred in furtherance of University business. The program is available to regular faculty, staff and post-doctoral fellows. Individual and department cards are included in the program. See the Gateway to Financial Activities website for more information. 

a. Lowest Available Airfare
All Stanford staff, faculty members, students and University visitors traveling on business are expected to travel at the lowest available airfare and to take advantage of Stanford's negotiated fares that are available through the University's "preferred" travel agency. Federal regulations require that only the cost of the lowest available airfare may be charged directly or indirectly to government sponsored projects. Criteria used to determine the lowest available airfare are:

• Leaves or arrives within a 1-hour window on each side of the traveler's desired departure or arrival time
• Allows the traveler to choose airports
• Is a nonstop flight if requested by the traveler
• Does not include charter flights (see section 7.b)
• Does not require staying over Saturday night unless requested by the traveler
• Does not include circuitous routing when a stopover is required
• The class is reasonably adequate for the medical needs of the traveler

b. Stanford Reimbursement
Stanford reimburses fares up to:

• Coach class for domestic flights and international flights of less than eight hours total.
• Business class for international flights of eight hours or more total. This includes connecting domestic legs, provided there are no layovers.

c. Accounting for Fares Over Lowest Available
If a traveler incurs charges in excess of the lowest available airfare (as defined in 3.a. above), the difference, up to the fare authorized for Stanford reimbursement (see 3.b.), must be charged to an unallowable expenditure type and a non-government sponsored account/activity. If documentation of the lowest available airfare is not available for a business class trip, the department charges one-third of the cost to an allowable expenditure type and the remaining two-thirds to an unallowable expenditure type and an unrestricted account/activity. For more information on allowability, see Guide Memo 3.1.4: Cost Policy.

d. Charges in Excess of Authorized Airfare
When a traveler prefers a higher class than that authorized, the traveler must pay the incremental difference.

e. Change Penalties
If a ticket has to be changed and a penalty is incurred, the traveler may claim payment from Stanford for the penalty. The penalty may be an allowable charge to a sponsored project. When trips must be cancelled, travelers are encouraged to rebook tickets for travel at a later date whenever possible. Travelers may wish to request payment for tickets to be used later by requesting an Advance in the Expense Requests system. See How To: Create Advance Request.

f. Unused Airline Tickets
Travelers are encouraged to rebook unused tickets whenever possible (see 3.d.). If it is not possible to use the ticket through rebooking, then it may be payable with proper documentation. An unused ticket affidavit must be completed and submitted in Expense Requests with an expense report. Go here to obtain a copy. Unused tickets should be charged to an unrestricted account (PTA).

g. U.S. Government Sponsor
If air travel will be paid by a federally-sponsored project, flying on a U.S. airline is usually required (Fly America Act). In some cases, the sponsor's written prior approval may be required before each trip or each foreign trip. For more information on the Fly America Act, see Policy Notes: Fly America Act (U.S. Air Carrier Requirement).

a. Lodging Choice
University business travelers are expected to use lodging accommodations that are necessary and reasonable. The lowest standard room rates are generally available through:

• Conference listings
• Stanford's negotiated academic rates
• "Preferred" travel agency corporate rates

b. Options
The traveler may use one of four methods for expenses incurred in connection with official University travel of more than one day. The method selected must be used for the entire trip.

• Actual Expenses
  The traveler may be paid for the actual costs of reasonable and necessary meals, lodging, and gratuities. See Expense Guidance for Business Meals. Tips for meals must not exceed 20% of the cost of meals. Any tip charges in excess of that amount will not be paid. When there is no overnight travel, meals will only be paid when the meal has a defined University business purpose (see One-Day Travel, 4.c.). In any case, payments for alcohol and related taxes and tips may not be charged to a government sponsored account (PTA).
• Actual Lodging Expenses Plus Per Diem for Meals
  The traveler may be paid for actual lodging cost plus the applicable meals per diem rate. This rate varies by geographic area. See domestic and foreign per diem rates. 
• Per Diem Lodging Plus Actual Expenses for Meals
  The traveler may be paid for the applicable lodging per diem rate plus the actual meal costs. The per diem rate varies by geographic area. See domestic and foreign per diem rates. 
• Per Diem for Lodging and Meals
  The traveler may be paid for lodging, meals and incidental expenses on the basis of per diem for both lodging and meals. See Travel Rates.

c. Local Travel
Local travel is defined as less than 50 miles one way from Stanford or the traveler's residence, whichever is greater. Barring exceptional business reasons, local travel does not qualify for an overnight stay or payment of personal meals. If a trip exceeds the local travel limit, but the traveler chooses not to stay overnight, personal meals will be eligible for payment. Per diem rates may not be used for local travel. A bona fide business meal is generally eligible for payment [see section 10.b.(6)].

d. Departmental Discretion
Departments may elect to pay per diem for fewer days than the actual stay and may decrease the amount of per diem to reflect actual expenses.

e. Per Diem Applications
Stanford follows U.S. Government General Services Administration travel rates. Current Per Diem rates can be located at the Gateway to Financial Activities. 
(1) Per Diem for Days of Departure and Return
Per diem for the first and last days of the trip are payable at 75% of the Meals and Incidental Expense rate applicable for the city visited. The location where lodgings are obtained for the first night determines the rate for the departure day. The location of lodging on the last night determines the rate for the last day of travel.
(2) Multiple Stops
When a trip includes more than one University business stop and the cities involved have different per diem rates, the per diem rate for each calendar day (beginning at 12:01 a.m.) is determined by the location where the lodgings are obtained for that night.
(3) Deduction for Meals Included in Registration Fees
When a meal has been paid for as part of a registration fee or included in the hotel rate, a deduction must be made from the applicable per diem rate. The deductible amount varies based on the rate for the applicable city and may be found at the U.S. GSA website. Select the "Meals and Incidental Expense Breakdown" tab.
(4) Trips Over 30 Days
When estimated travel is for more than 30 consecutive days in one location, or when the circumstances of the travel are such that the traveler can reasonably be expected to incur expenses comparable to those arising from the use of establishments catering to the long-term visitor or from the use of noncommercial facilities (e.g., house-trailers or camping equipment), the traveler may choose to be paid either for the actual and reasonable cost of lodging and meals or a basic per diem allowance of 55% of the standard rate for the appropriate geographic area. The rate begins with the first day of travel.
(5) Extension of Travel
If, while on travel status, the traveler is granted an extension to the original estimated travel which then results in a total of more than 30 consecutive days in one location, the per diem allowance will be calculated at the regular rate from the first day up to and including the 30th day. After the 30th day the long-term rate is applicable if the per diem method is chosen.

f. Non-business Days
Weekends, holidays, and other necessary standby days may be counted as business days only if they fall between business travel days. If they are at the end of a traveler's business activity and the traveler remains at the business destination for non-business reasons, payment is not allowed for the additional days. The only exception is when travel is at a lower total cost if the traveler stays over a weekend or holiday, with department approval. The traveler must document the total cost savings in order to support the non-business day payment. This must be documented at the time of booking of the actual flight, comparing the actual flight to the cost of the airfare for business days only. A printout from Stanford's online booking tool must be included with the iOU expense report. If post-travel dated airfare comparison is submitted as backup, Disbursements will calculate an on-line comparison at the time of processing, and will pay based on the lower of the two equivalent airfares.

g. Foreign Travel
Foreign travel expenses are payable by the same methods as domestic travel. To obtain per diem rates for travel outside the contiguous United States, see website link. 

h. Sabbatical Lodging
Sabbatical lodging expenses are paid only if the faculty member incurs two sets of living expenses simultaneously and there is a stated Stanford business purpose for the expenses incurred during the sabbatical. If the primary home is rented out, the faculty member may not be paid for lodging expenses at a location away from Stanford.

a. Expenses Allowed
The University will pay a standard rate per mile (see Travel Rates) for official travel by private automobile based on the actual driving distance by the most direct route (not more than 105% of the mileage listed on the Google Maps.
(1) Standard Mileage Allowance
The standard mileage allowance is in lieu of all actual automobile expenses such as fuel and lubrication, towing charges, physical damage to the vehicle, repairs, replacements, tires, depreciation, insurance, etc.
(2) Automobile-related Expenses
In addition to the standard mileage allowance, necessary and reasonable charges for the following automobile-related expenses are allowed: tolls, ferries, parking, bridges, tunnels, and liability and physical damage insurance coverage for driving in foreign countries or Hawaii [see paragraph 6.e.(2)]. Traffic ticket and parking ticket expenses must be paid personally, not by the University.

b. Local Travel
(1) Common Destination Points
One-way distances from the University to the following common destination points are shown below.

San Francisco International Airport, 25 miles
San Francisco, 40 miles
Asilomar, 92 miles
Berkeley, 42 miles
San Jose Airport, 20 miles
Monterey/Pacific Grove, 90 miles

(2) Computation Starting Point
Mileage may be computed from the traveler's home when travel occurs during weekends, holidays, or outside normal business hours (usually 8 a.m. to 5 p.m.). Mileage must be computed from home whenever the trip does not involve a business stop at Stanford and the distance from home is less than the distance from Stanford.

c. Auto in Lieu of Airport Shuttle
Travelers should use the most economical means for travel to the airport, including parking costs. Shuttle services usually provide the most economical means.

d. Automobile in Lieu of Commercial Air
When use of a personal automobile has been authorized in accordance with Guide Memo 8.4.2: Vehicle Use, and the automobile is used in travel for which air is generally most appropriate, payment may not exceed actual miles the automobile is driven at the standard rate per mile, and may not exceed the allowable cost that would have been incurred had travel been by air. For calculating the equivalent airfare to replace more expensive mileage charges, the coach fare plus ground transportation costs are applicable. Equivalent airfare is coach class, seven-day advance purchase. A printout from Stanford's online booking tool must be included with the expense report. The printout should be dated seven days before the actual travel date to accurately document equivalent airfare. If post-travel dated airfare comparison is submitted as backup, Disbursements will calculate an online comparison at the time of processing, and will pay based on the lower of the two equivalent airfares. If two or more people travel together by automobile for a business purpose, the equivalent airfare calculation is the sum of airfare plus ground transportation costs for all of the travelers.

e. Trips of More Than One Day
The University will pay the mileage allowance, meals, lodging, and automobile-related expenses if travel by automobile is the most economical mode of transporta-tion available. Otherwise the University will pay the cost of the least expensive alternate method of travel. The University will calculate an en-route per diem based on an average driving distance of 400 miles a day by the most direct route, or actual number of days taken, whichever is less. Each passenger claiming payment for meals and lodging must prepare a separate expense report.

f. Two or More People Traveling Together
Because payment for private automobile is to reimburse the owner for use of the car, mileage and related expenses are payable only to one of the two or more persons traveling together in the same vehicle.

g. Temporary Off-Campus Assignment
If the employee has a temporary assignment away from campus, reimbursement will be made for mileage between campus and the assignment location, or home and the assignment location, whichever is less.

h. Insurance and Accidents
See Guide Memo 8.4.2: Vehicle Use.

i. Commuting Expenses
The University will not pay employees for commuting expenses between home and campus. See section 13.d for remote worker policy.

a. Economical Alternatives
The University will pay the traveler for the cost of renting a compact or standard size car and for the automobile-related expenses, if use of the rental vehicle is the most economical mode of transportation. Before renting a car, the traveler should consider shuttle services and taxis, particularly for transportation between airport and lodging.

b. University Name on Rental Agreement
Car rental agreements for both employees and non-employees renting for University business should, for insurance reasons, whenever possible include "Stanford University" with the name of an individual. Use of the University-provided travel card serves this purpose for employees.

c. Driver and Location Limitations
For the traveler to be covered by the rental agency's basic insurance, the rental vehicle may not be driven by persons other than the renter, or leave the state in which it is rented, without the agency's permission.

d. Accident Notification
If a rented vehicle is involved in an accident, the Stanford Assistant Vice President of Risk Management should be notified promptly. See Guide Memo 8.4.2: Vehicle Use.

e. Additional Insurance Needed?
(1) Within the continental United States: NO: Since the University's insurance policy provides coverage in excess of the rental agencies' within the United States, travelers should not buy and will not be reimbursed for extra insurance from a car rental agency. Visitors to the University should be advised that additional insurance is unnecessary.
(2) Within Hawaii: YES: A traveler planning to drive a rental vehicle in Hawaii must purchase the rental agency's insurance. The University will pay the cost of such insurance.
(3) Outside United States: YES: A traveler planning to drive a rental vehicle in any foreign country must purchase the rental agency's insurance. The University will pay the cost of such insurance.

a. Piloting a Private Plane
The University officers listed below, or their designees, may authorize faculty and employees to pilot aircraft for travel on University business provided the documents listed in (1) through (4) are on file with Risk Management:

• Deans of the seven schools
• Vice Provost and Dean of Research
• Vice Provost for Graduate Education
• Vice Provost for Undergraduate Education
• Director of the Stanford Linear Accelerator Center
• Director of the Hoover Institution
• Vice President of the administrative area

(1) The following information annually: Plane identification by year, make and model; hours flown in the past 12 months; and pilot certification type. See Risk Management Department for an online form to complete.
(2) A signed Release from Liability Agreement
(3) A current Certificate of Insurance evidencing aircraft liability coverage with minimum liability limits of $5,000,000 combined single limit with no sub-limit for bodily injury liability and no sub-limit for passenger liability. The Certificate of Insurance must also contain the following:

• The Board of Trustees of the Leland Stanford Junior University and its affiliates are named as additional insureds.
• A Waiver of Subrogation from the aircraft insurer in favor of the University and indicating that coverage is primary.
• A provision giving the University a minimum of 30 days written notice of cancellation or material change in coverage.

(4) Reimbursement will be based on the actual operating expense, rental fee for the aircraft, or the private aircraft mileage rate (see Travel Rates), up to a maximum amount not to exceed the commercial airfare that would be payable for the same trip. Equivalent airfare is coach class, seven-day advance purchase. A printout from Stanford's online booking tool must be included with the expense report. The printout should be dated seven days before the actual travel date to accurately document equivalent airfare. If post-travel dated airfare comparison is submitted as backup, Disbursements will calculate an on-line comparison at the time of processing, and will reimburse based on the lower of the two equivalent airfares.

Ground transportation costs that were not actually incurred will not be considered. However, actual ground transportation expenses remain payable. Any additional flight expenses, such as tie down fees, will not be paid, as those costs are part of the airplane reimbursement rates and are included in the maximum equivalent airfare calculation. Expense reports for use of private aircraft must show the type of aircraft and number of hours flown. When more than one person is carried on University business on the same flight, reimbursement is payable only to the pilot.

b. Charter Planes
Stanford business trips using chartered aircraft services are to be purchased through the Purchasing and Contracts Department by submitting a requisition for products or services. Before using the chartered aircraft service, the agreement must be reviewed and approved by the Stanford Purchasing and Contracts Department.

c. Railroads, Non-local Buses, Commercial Vessels
The University will pay the cost of the lowest first-class accommodations available for the trip. Payment will not exceed the equivalent commercial airfare for the same trip. Equivalent airfare is coach class, seven-day advance purchase. A printout from Stanford's online booking tool must be included with the expense report. The printout should be dated seven days before the actual travel date to accurately document equivalent airfare. If post-travel dated airfare comparison is submitted as backup, Disbursements will calculate an on-line comparison at the time of processing, and will pay based on the lower of the two equivalent airfares.
(1) Rail or Bus: For each night that railroad or bus accommodation is used, an amount equal to the lodging allowance will be deducted from the per diem rate, if applicable.
(2) Ship: Payment of per diem will not be allowed for the period of travel aboard a ship where the cost of subsistence is included in the fare for passage and stateroom.

a. Expenses Payable by Others
Travelers are encouraged to combine University travel with other business so that travel expenses can be shared with other organizations, and are responsible for seeking reimbursement for expenses payable by others. If a traveler is taking a trip payable jointly by the University and another entity, the University will pay for its share of the actual fare necessary for University business. Fares greater than coach fare (first class, business class, etc.) cannot be used as the basis for prorating air travel costs. When an outside organization pays for lodging or meals, the traveler may not claim per diem from Stanford. In no case may the amount paid for the trip from all sources exceed the total expenses incurred.

b. Non-business Expenses
The University does not pay travel expenses that are not required for official University travel.

c. Indirect Routes
If, for other than University business, the traveler takes an indirect route or interrupts a direct route, payment for air fare will be at either the actual charge or the charge that would have been incurred by traveling the direct route by the most economical means, whichever is less. The charge that would have been incurred for a direct route must be documented, at the time of booking the actual flight, with a printout from Stanford's online booking tool and a copy of the printout included with the expense report.

d. Rental Cars
(1) Payment: Any personal portion of the cost of a rental car must be subtracted from the total rental bill before requesting payment. The personal portion is calculated by prorating the cost of the rental over the number of days for personal use and number of days for business use.
(2) Insurance: If the traveler accepts extra insurance cost for a domestic, mainland car rental in order to be covered during the personal portion, the entire cost of the insurance coverage for the entire rental period will be a personal expense. However, if the rental occurs in a foreign country or Hawaii, the cost may be prorated.

a. Non-business Expenses
In general, the expenses of a spouse, family member, or other person accompanying the business traveler are not payable. Such expenses are only payable if the accompanying person has a position with the University and is traveling to make a significant contribution in furtherance of University business.

b. Exceptions
It is expected that there will be no exceptions to this policy, which is designed to assure compliance with legal requirements. Any request for an exception in truly extraordinary circumstances must be approved, in advance of the travel, by the Provost.

c. Hotel Rates
When a double hotel room is occupied by the business traveler and others whose attendance does not constitute a business purpose, the University will pay the single room rate. The single vs. double room rate must be provided in the notes section in the expense report or backup documentation. If the single room rate is not available or provided, the amount paid will be 85% of the double rate. In all cases, only reasonable and necessary accommodations will be paid (see section 4.a.).

a. Registration Fees
Registration fees may be expensed at the time of registration by requesting payment using a Non-PO Payment request in the Expense Requests system or seeking reimbursement for a personally paid registration. For conferences and events requiring travel, the University Travel Card can be charged. If registration is for a student, see section 11 for additional requirements.

b. Miscellaneous Expenses
Miscellaneous expenses essential to the purpose of the authorized travel must be submitted for payment on the same expense report as other travel expenses.
(1) Meeting Expenses
Registration (if not prepaid), costs of presentations, published proceedings, rental of meeting rooms and other actual expenses in connection with professional meetings, conferences, and seminars will be paid.
(2) Telephone, Fax and Computer Connections
Actual costs of necessary and reasonable business telephone calls, faxes and computer connections are allowable. Single telephone calls that cost $75 and above must be itemized by business purpose and name of person called, even if the call is to a Stanford number.
(3) Checked Baggage
Stanford reimburses fees associated with checked baggage. Baggage requirements should be reasonable and necessary to support the business need. A justification should be included in the expense report business purpose when more than two pieces of baggage are checked.
(4) Foreign Travel Costs
Actual costs of acquiring passports, visas, tourist cards, necessary photographs, birth certificates, required inoculations, immunizations, health cards, and fees for the conversion of funds to foreign currencies will be paid.
(5) Insurance
Insurance costs such as life insurance, flight insurance, personal automobile insurance, rental car insurance (except for foreign countries or Hawaii as noted in paragraph 6.e.(2) and (3)), and baggage insurance will not be paid by the University. (See Guide Memos 2.3.1: Survivor Benefit Plans, and 8.4.2: Vehicle Use.)
(6) Expenses on Behalf of Others
Ordinary and necessary business expenses incurred on behalf of others, including but not limited to food, beverages, refreshments and social or recreational activities will be paid. Expenses for personal entertainment are not payable.

• Business Purpose Required
  To be considered nontaxable, the Internal Revenue Service requires that the business purpose and the names of persons entertained be shown on the iOU expense report. Individual names are not required if a group is involved and it can be identified as a single body.
• Unallowable Expenditure Type
  Business entertainment and alcohol must be charged to the appropriate expenditure type for unallowable expenses.

• Per Diem and Entertaining or Business Meals
  When a traveler who is paid at the full per diem rate furnishes a meal to others, either as entertainment or during a business discussion, the traveler must prorate the cost of the meal and seek additional payment only for the guest(s) meals. See Expense Guidance for Business Meals, If multiple multiple business or entertainment meals occur during a trip, or such a meal occurs during a trip of four days or less, the use of per diem for meals is not appropriate. Payment for actual meal expenses with appropriate receipts should be requested for the entire trip. Entertainment/fund raising meals may not be paid when they occur during a trip charged to a government grant or contract unless the actual meal expense option is chosen for the entire trip. In this way, the correct amount can be charged to an unrestricted account (PTA) and unallowable expenditure type.

• Personal Expenses
  Expenses that are not directly related to and required for official University travel but that are incurred for the personal use or convenience of the traveler will not be paid. Except for unusual circumstances, laundry costs will not be paid unless a trip exceeds six days.

Any student reimbursement, graduate or undergraduate, which does not meet the criteria for University travel (see Section a. below), including required documentation, will be tax reportable and should be submitted and paid through Graduate Financial Services (GFS) for graduate students and through the Financial Aid Office for undergraduates.

a.   Undergraduate and Graduate Students
Students may be reimbursed for business travel whether or not they are employees, or for degree-related educational travel such as to attend a conference or visit a field site or laboratory facility. In most cases, such reimbursements are not tax-reportable to the Internal Revenue Service as income to the student, provided documentation is available showing that the travel:

• Directly supports a faculty member’s project or research program, or
• Is related to presenting at a conference (a photocopy of the conference program indicating the traveler is a speaker/presenter is required), or
• Is an integral part of the student’s degree work (Faculty Certification required), or
• Is directly related to the student’s employment at the University, or
• Is official University business.

Any reimbursement to a post-doctoral student that does not meet the criteria for university travel (see Section b. below), including required documentation, will be tax reportable and should be submitted and paid through Graduate Financial Services (GFS) as a fellowship payment.

b.  Post-Doctoral Students
(1)   Attending a conference, field site, or off-campus laboratory
Documentation: Along with appropriate receipts, the department should send to Travel & Reimbursement a signed statement from a faculty member certifying that the travel directly supports the faculty research or academic program, or attendance is to officially represent Stanford.
(2)   Speaking/Presenting a paper, poster, or serving on a panel
Documentation: Along with appropriate receipts, the department should send to Travel & Reimbursement a photocopy of the conference program indicating the traveler is a speaker/ presenter. No certification is necessary.

a.   Documentation Required
Payments to foreign visitors, or on behalf of foreign visitors (direct payments to hotels, etc.), may be made only if the visitor enters the United States on an appropriate visa (see Guide Memo 2.4.1: Visas for and Employment of Foreign Nationals. In addition to the documentation required for all travel payments, requests for payment to nonresident aliens must include a signed Form LA-6 (Declaration of Tax Status), photocopies of the traveler's passport, visa, I-94 card, and, for J-visas, a copy of Form DS-2019 (Certificate Of Eligibility For Exchange Visitor (J-1) Status). All sensitive personal information should only be submitted through the secure Supplier Request Portal. 

b.  Advances
Foreign visitors who will be present here for longer than two weeks may request an advance for the amount of the air ticket. Required documentation must be included (copy of airlines invoice/itinerary showing proof of payment, and documentation listed in 12.a). If the expense will be subject to withholding taxes, deductions will be made from the advance payment unless appropriate tax exemption forms are included (IRS Form 8233 or W8-BEN). All sensitive personal information should only be submitted through the secure portal.

c.   Accounting
Note that if a trip either originates or terminates in a foreign country, the entire cost of the trip is coded to a foreign travel expenditure type. This includes any costs for meals and lodging in the United States when the trip originated outside the United States.

d.  Further Information
For more information on travel arrangements for foreign visitors, see:

• Inviting and Paying Foreign Visitors
• Guide Memo 2.4.1, Visas for and Employment of Foreign Nationals
• Bechtel International Center

a.   Interview Travel
Travel expenses in connection with employment interviews are authorized when necessary to acquire key personnel for employment at the University. Travel expenses are allowed to the extent authorized in a formal written invitation to the prospective employee, as long as they do not exceed the limits and are consistent with the policies and procedures in this Guide Memo. Travel expenses of spouses accompanying prospective employees are also allowed to the extent authorized in the invitation. Requirements and limitations in specific sponsored project awards apply.

b.  Postdoctoral Employment Expenses
Postdoctoral employment interviews and recruitment are business expenses. Postdoctoral employee moving expenses can be considered business expenses if the postdoc’s position is a regular 100% FTE payroll position of 39 weeks or longer.

c.   Moving and Reassignment Expenses
See Guide Memo 2.1.20: Relocation of Faculty and Staff.

d.  Remote Workers
Stanford may hire employees who work remotely. These employees do not work in a regular Stanford office, but work from their homes or other location as their principal place of business. If the employee works remotely 100% of the time, occasional trips to campus for department meetings, special projects, peak-time work, etc. may be paid by the department at the manager’s discretion. Such payments are generally not considered to be commuting expenses and therefore are not taxable income to the employee. Each situation of 100% remote work may be very different and the manager and the employee should reach an agreement about the work plan, access protocols and need for on-site visits and any payment that may be appropriate.

Please see Flexible Work Options for more information and guidance.

a.  Receipts
Dated original receipts or invoices for expenses of $75 or more must be provided to the originator for electronic submission to Travel & Reimbursement as backup to a properly completed expense report. In accordance with IRS rules, the backup must support the cost and business character of the transaction, and, for a reimbursement, must show evidence of payment. Credit card statements are proof of payment, but are not considered to be itemized receipts, and are generally not enough documentation standing alone. If proof of payment by check is required, a copy of the cancelled check or bank statement is sufficient.

The electronic image attached to the expense report is considered the document of record, and the preparer should destroy the original paper receipts once T&R has completed processing and the expense report has been paid.

• Meals: The cardholder’s copy of the charge form obtained at the time the charge is made will be accepted as documentation for meals. Payments for alcohol and related taxes and tips may not be charged to a government sponsored account (PTA) and must be charged to an unallow-able expenditure type. If the supporting documentation for a meal is not itemized, then the cardholder must note either “No Alcohol” or state the cost of any alcohol that was included in the purchase.
• Transportation Tickets: Passenger copies of air, rail, boat, helicopter, and non-local bus tickets. For electronic tickets, provide a detailed invoice/itinerary (which may also be identified by the air carrier as a receipt), as long as it shows all times of departure, flight numbers, class of service, fare basis, ticket number or confirmation number, and cost of ticket, along with proof of payment (i.e., card being charged). Documentation that does not include this information is not acceptable as a receipt.
• Car Rentals: Original car rental agreements or invoices showing proof of payment.
• Lodging: Itemized lodging bill, unless a per diem allowance is claimed for the trip. Express checkout itemized receipts are acceptable. The express checkout must show credit card being charged. When the method of per diem for meals is chosen, there will be no payment of meals charged to the lodging bill.
• Other Expenses: Expenses under $75 may be paid without a receipt. However, the amounts claimed must be accurate. Sponsored projects may have certain more restrictive receipt documentation requirements. The originating department is responsible for complying with these restrictions.

indicate Original Receipt Missing in the expense report with all relevant information. b.  Foreign Exchange Rate
The $U.S. equivalent should be included on receipts for purchases in foreign currencies. A University-approved currency converter is available on the OANDA website. If a copy of the traveler’s credit card statement is included with receipts, payment will be for the amount shown for the item on the statement.

c.   Missing Original Receipts
The traveler must seek a duplicate of a missing original receipt from the billing agency. When submitting an expense report, include the duplicate receipt showing proof of payment and indicate Original Receipt Missing in the expense report with all relevant information. 

d.  Expense Requests Expense Report
The University requires preparation of an expense report to account for any travel expenses that are to be charged to a University account (PTA). The properly completed and approved expense report must be submitted in a timely manner after returning from a trip. Absent exceptional circumstances, expenses submitted more than 60 days after completion of travel will be reported as additional income to the individual, in accordance with Internal Revenue Service guidance. If all expenses cannot be submitted on one expense report, subsequent reports must reference the initial iOU expense report.

(1)   Purpose: The expense report must include a statement of the purpose of the travel that shows the direct relationship of the travel to an official University function. The purpose for any stopover en route must also be included. If conference expenses are charged to a sponsored project, the conference must directly support the purpose of the sponsored project. A copy of the conference agenda or program should be included electronically with the submitted backup documentation.

(2)   Dates: All days from day of departure to the return date must be included on the expense report. Days for personal use must be shown as such.

(3)   Expenses: Costs of transportation, meals, lodging, and miscellaneous expenses must be listed by date and location on the expense report.

(4)   Approvals: The expense report must be approved online by the appropriate person authorized to approve expenses for the account(s) (PTAs) charged. No one may approve expenses for himself/herself or for an individual to whom he or she reports either directly or indirectly. Additionally, the person who incurred the expenses is encouraged to electronically approve the expense report whenever possible to confirm that the expense report complies with University policy (see Reimbursement of Expenses, section 1.a). Regardless of electronic approval confirmation, by initiating an expense report, the individual incurring a charge is attesting that the expenses relate to University business and comply with the policies stated in Guide Memo 5.4.3: Reimbursement of Expenses.

 (5)  Improperly Completed Forms: The traveler is responsible for the accuracy and completeness of the expense report and electronically submitted backup receipts. If the report is not completed properly, it will be returned online. Travel & Reimbursement needs to receive all required backup documents before an expense report can be processed.

e.   Special Explanations Required
Written explanations for the following must be submitted with the expense report:

(1)   Reimbursement from Other Sources: The traveler must report, including all pertinent details, if expenses for any part of the trip were or will be reimbursed by any source other than the University. Source name, address, and amount must be included on the expense report, even though Stanford will pay only the portion attributable to Stanford.

(2)   Expenses not Expressly Allowed: Expenses that are not expressly allowed in this Guide Memo must be fully explained in order to support an exception request.

(3)   Unusual Travel Arrangements: If the cost of business class or first-class rates, private or rental air transportation, or travel by private automobile is claimed, an explanation with the request is required. Approval of payment is contingent upon meeting the guidelines, pre-approval requirements and limitations established in this Guide Memo.

(4)   Expenses for Others: If reported expenses include entertainment, meals, lodging, or transportation provided for others, the requirements of paragraph 10.b.(6) must be met and the request referenced to other expense reports associated with the trip.

(5)   Prior Approval: Whenever travel policy states that prior written approval is necessary, a copy of such must be submitted electronically with the iOU expense report. The same is true for any approved deviation from this Guide Memo.

(6)   Unusual Charges: An explanation should be given for any unusually large amount that would normally be viewed as excessive, or any other unusual charges.

f.   Travel Expenses as Income

(1)   Moving Costs: The University is required to report as additional income to the individual certain payments for moving allowances and travel costs associated with initial employment or termination. See Guide Memo 2.1.20: Relocation of Faculty and Staff.

(2)   Unsubstantiated Cost: In accordance with the regulations of the Internal Revenue Service, the University will report, as additional income, the payment of any expense not substantiated by an appropriate itemized receipt or adequate explanation.

(3)   Non-timely Submission: Absent exceptional circumstances, expenses submitted more than 60 days after completion of travel will be reported as additional income to the individual, in accordance with Internal Revenue Service guidance.

g.     Reimbursement
Payment for reimbursements may be made via the following delivery options:

• Payroll direct deposit
• Check
• Wire
• Foreign draft

A fee will be charged to cover the extra cost of preparing and handling “Rush” payments.For more information on payment types and processing payment times see Resources & Job Aids: Payment and Handling Methods and Processing Times. 

a. University
Questions regarding travel policy and procedures may be directed to the Buying and Paying Support Center.

b. SLAC
SLAC travelers who have questions should contact the SLAC Travel Manager.

c. Online Information

• Travel Resources, Procedures & Policies
• Foreign Currency Converter
• Inviting and Paying Foreign Visitors
• HelpSU

The Office of the Treasurer is responsible for approving all Petty Cash Fund account requests. In general, the use of petty cash funds are discouraged and departments are strongly encouraged to use the Department Purchasing Card (P-Card) or the Oracle Financials Expense Requests system whenever possible.

The purpose of a Petty Cash Fund is to allow for the reimbursement or purchase of minor, unanticipated business expenses when the University's present procurement system is not cost effective and when the dollar amount is low.

The University has three types of Petty Cash Funds:

a. Petty Cash Fund
Petty Cash Funds are established for departmental use for incidental and emergency small-dollar purchases where the use of alternative means (e.g. P-Card) is not feasible. Reimbursement for properly approved expenses may be obtained directly from this fund. The size of a Petty Cash Fund will be determined by the business needs of the requesting department, and, unless special written approval is obtained from the Treasurer, a single fund will be limited to no more than $500 in cash on hand.

b. Petty Cash Checking Account
Petty Cash Checking Accounts may be established in departments that make small disbursements by mail (e.g. purchase of subscriptions), or must make immediate payment (e.g. C.O.D. (cash on delivery) payment for goods delivered by UPS). The size of a Petty Cash Checking Account will be determined by the business needs of the requesting department, and, unless special written approval is obtained from the Treasurer, a departmental Petty Cash Checking Account will be limited to no more than $2,500.

c. Change Fund
Change Funds may be established by a department and used to give change to customers when they are paying for goods and/or services and is reconciled daily. The size of a Change Fund will be determined by the business needs of the requesting department. A written request with the details of the business needs must be submitted to and approved by the Treasurer.

a. When Petty Cash May be Used
Reimbursements from petty cash are authorized for purchases and expenditures up to $100 per transaction. Allowable uses:
i. Delivery charges, minor office supplies needed for department operation and postage, totaling less than $100;
ii. Local transportation (e.g. taxi), parking and bridge tolls, totaling less than $100, that may arise as part of a day trip on official University business;
iii. Necessary and reasonable food (such as sandwiches and beverages) brought into the office for business meetings, totaling $100 or less, including tax, delivery and tip.

Special rules apply for the reimbursement of alcoholic beverages:

Alcoholic beverages: Purchases of alcoholic beverages may not be reimbursed by the federal government, either directly on a contract or grant account, or indirectly through the indirect cost rate calculation. When alcohol is served as part of a business meal, the restaurant receipt must identify the amount charged for the alcoholic beverages. List the alcohol amount, plus sales tax and tip, separately on the reimbursement documentation, charging the expenses to the appropriate unallowable expenditure type. If the supporting documentation for a meal is not itemized, then the receipt must note either “No Alcohol” or state the cost of any alcohol that was included in the purchase.

b. When Petty Cash May Not be Used
Petty cash may notbe used for:

• Payment for services performed by employees or non-employees
• Advances
• Gifts
• Personal loans and cashing personal checks
• Buying hazardous materials
• Stanford Faculty Club dues
• University parking permits (personal expense)
• Traffic citations
• Personal expenses
• Interest charges
• Social or travel club dues
• Expenses over 120 days (anything older than 120 days must be reimbursed through the Expense Requests system)
• Recurring expenses (e.g. employee business-related home internet or cell phone expenses)
• Amounts over $100, unless a department requests, and the Treasurer approves, a higher limit for the department
• Transactions involving student(s)

c. Accounting Accuracy
Reimbursement for petty cash must be the exact amount of the expense. Splitting one transaction in excess of $100 into several parts, or requesting reimbursement of less than the full amount of the expense is specifically not allowed.

a. One Petty Cash Fund Per Department
Unless the department is very large or geographically dispersed, a single petty cash fund per department is usually adequate for all its petty cash transactions. Reimbursements from one petty cash fund may be charged to any type of account (PTA) including sponsored projects. If more than one petty cash fund is needed, a written justification must be submitted to and approved by the Treasurer.

b. Size of a Petty Cash Fund
In addition to the fund limits set forth in sections 2 (a), (b) and (c) above, a petty cash fund should be established at a reasonable level based on the department's business needs. The fund level should be reassessed annually and modified as needed based on the volume of activity during the year.

c. Petty Cash Custodian
The department head must appoint an individual to be custodian of the department's petty cash fund. Petty cash custodians must be salaried employees of the University, and may not be undergraduate students, graduate students or temporary personnel. Custodians are required to complete Petty Cash Training and pass the associated certification test. The custodian remains accountable for the petty cash fund until another person is officially designated as the new custodian or the fund is closed.

d. Establishing, Changing or Closing a Petty Cash Fund
Department heads may request a new petty cash fund, an increase or decrease in an existing fund, or cloure of an existing fund by sending a request to the Financial Support Center (finhelp@stanford.edu or 3-2772) and Cash Management (cashmanagement@lists.stanford.edu) in the Office of the Treasurer. Specifics of the request should include:
i. Establishing a New Petty Cash, Petty Cash Checking or Change Fund
The request should include:

• The department name, location and physical address;
• The type of fund requested;
• The reason the fund is needed;
• The types of transactions that the fund will be used for;
• Reason that alternative payment methods are not feasible;
• The amount requested for the fund;
• The name of the petty cash custodian;
• The name and contact information for the individual(s) that will have signature authority on the Received of Petty Cash Form;
• If requesting a Petty Cash Checking Account, the name of the individual(s) that will have signature authority on the account (should not be the petty cash custodian);
• The department PTA that will be used when replenishing the fund

ii. Requesting an Increase or Decrease to a Petty Cash Fund
The request should include:

• The Petty Cash Fund number (08XXX)
• The department and location
• The custodian name
• The reason for the increase/decrease in fund size
• The requested dollar amount of the increase/decrease in fund size
• If requesting an increase in fund size, a justification for the increase in fund size will need to be provided and approved by the Treasurer

iii. Closing a Petty Cash Fund
The request should include:

• The Petty Cash Fund number (08XXX);
• The department and location;
• The custodian name;
• The reason for closing the fund

Note: For more information, please refer to sections 7(a) and 7(b).
 

a. Assignment of Petty Cash Funds to Custodian
Following certification that the identified custodian has successfully completed the petty cash training and passed the associated certification test, the Petty Cash Administrator will assign a Petty Cash Fund number to the new fund. This custodian must use this number in all transactions relating to this fund. The custodian remains accountable for the petty cash until another person is officially designated as the new custodian or the fund is closed.

b. Protection of Petty Cash
The petty cash custodian is responsible for managing the department's petty cash fund and should be the only person in the department to have access to the locked petty cash box and to disburse actual cash. To prevent access by anyone but the custodian, petty cash should be kept in a locked box in a desk or cabinet that is locked whenever the custodian is absent. Only the custodian should have access to the keys.

c. Loss or Theft of Petty Cash
In the case of theft or mysterious disappearance, the Stanford Police and the Office of the Treasurer must be notified as soon as the loss is discovered. A copy of the police report should be included with the petty cash receipts when reimbursement is requested.

d. Reconciliation and Replenishment
The custodian is also responsible for the reconciliation and replenishment of the Petty Cash Fund. The frequency of reconciliation depends on the type of fund:
i. Petty Cash Fund
A department Petty Cash Fund must be reconciled and replenished on a monthly basis. The reconciliation should be done at the time of replenishment and a "Petty Cash Reconciliation Form" must be completed and signed by the department head. The department head may designate, in writing, the ability to approve the monthly reconciliations to someone other than him/her self (but it may NOT be the custodian). These monthly reconciliation forms should be kept in departmental files and made available to the Petty Cash Administrator if requested during an on-site audit.
ii. Petty Cash Fund Checking Account
A Petty Cash Fund Checking Account must be reconciled and replenished on a monthly basis and a "Petty Cash Checking Account Reconciliation Form" must be completed and signed by the department head, or an authorized check signer for the account, but not the custodian. These monthly reconciliations, along with a copy of the most recent bank statement, must be submitted to the Petty Cash Administrator each month.
iii. Change Fund
A Change Fund is used exclusively for making change, it must be reconciled on a daily basis. Any records should be kept in a departmental file and made available to the Petty Cash Administrator if requested during an on-site audit.

e. Annual Confirmation of Petty Cash Funds
The Office of the Treasurer conducts an annual confirmation of balances for all Petty Cash Funds and Change Funds. In August of each year, the Petty Cash Administrator will send out the request for the Annual Confirmation of Petty Cash Funds to all custodians, along with the"Annual Petty Cash Reconciliation Form. The custodian must reconcile the account and fill out the form. The department head MUST sign the annual confirmation form, not their designee. The annual reconciliation form will also include an "Ongoing Practices Statement" that must be acknowledged and signed by the custodian. Since monthly reconciliations are submitted for all Petty Cash Checking Accounts, the custodians do not need to complete the annual confirmation request.

f. Periodic On-Site Audits of Petty Cash Funds
The Office of the Treasurer will conduct several on-site audits of selected department Petty Cash Funds, Petty Cash Checking Accounts and Change Funds each year. The funds will be selected randomly and the custodian for the selected fund(s) will be notified and an appointment to conduct the audit must be made within 72 hours. For an audit, the custodian will need to provide the auditor with copies of their monthly reconciliations, reimbursement receipts showing the types of reimbursements being made with the fund, and provide evidence that the fund is being stored securely when not in use.

g. Mishandling of Petty Cash Funds
Failure to properly safeguard, reconcile and administer petty cash funds may lead to revocation of the petty cash fund from the department and/or disciplinary action up to and including termination.

a. Absences of the Custodian:
i. Brief Absence: If the absence will be less than two weeks, the fund should be secured and no reimbursements should be allowed during the absence. During an absence or vacation that will last more than two weeks, a custodian may place the petty cash fund with a temporary, certified custodian. The temporary custodian must complete the petty cash training and pass the associated certification test before assuming the responsibility of the fund. The temporary and regular custodian will need to reconcile the fund at the time of transfer, as well as upon the return of the regular custodian. Both the temporary and regular custodian are required to sign the reconciliation forms.
ii. Absence During Which Fund Needs Replenishing: A temporary custodian may not replenish a petty cash fund. The fund must be replenished before the regular custodian's absence. If a regular petty cash custodian's absence will last more than one month, a new custodian will need to be appointed by the department head, following the steps in 6(b).

b. Change of Custodian
The department head may transfer the petty cash fund to a new custodian at any time. The new custodian must complete petty cash training and pass the associated certification test before assuming responsibility for the fund. The fund must be counted and reconciled prior to transfer. Except on a temporary basis described in paragraph 6 (a) (i) above, one custodian may not transfer a fund to a new custodian. The petty cash fund must be in balance before the new custodian accepts it.

c. Accounting for Petty Cash Transactions
Proper accounting for petty cash requires that custodians make payments for authorized expenditures only, obtain receipts, and record expenditures.
Note: There must be a sales slip, cash register tape, or other receipt attached to a Received of Petty Cash form for each expenditure. The only exception is reimbursement for mileage where a log with odometer readings, date, destination and business purpose serves in lieu of a receipt. When a receipt is not available, it must be indicated when requesting replenishment in the Expense Requests system. The Received of Petty Cash form must be signed by the person being reimbursed and approved by someone who has signature authority for the account (PTA) charged. The approver may be the custodian of the petty cash fund, except that the custodian may not approve his/her own expenses and may not approve expenses for an individual to whom he/she reports either directly or indirectly.

d. Balancing Petty Cash Funds
When reimbursements by the custodian deplete the amount of cash, receipts are totaled to account for the expenditures and keep the petty cash fund in balance. At any time, the total cash on hand plus the total receipts and reimbursement requests in process should equal the original amount of the petty cash fund. If the fund does not balance, contact the Financial Support Center (3-2772) for assistance. A petty cash fund should always be balanced before a request is made for replenishment.

e. Replenishing Petty Cash Funds
i. Approval
The Petty Cash Reimbursement request must be reviewed and approved by a person who has online signature authority for the departmental accounts (PTAs) to be charged (see Guide Memo 3.2.1: Authorizing Expenditures). This person could be the department head and must be someone other than the custodian or someone who reports to the custodian. The approver may not approve his/her own expenses and may not approve expenses for an individual to whom he/she reports either directly or indirectly.
ii. Check Printing
Replenishment checks are sent to the custodian. If special handling or "Will Call" service is requested, a special handling fee will be charged.
iii. Cashing of Replenishment Checks
The preferred bank is Stanford Federal Credit Union and special arrangements have been made with the credit union to cash replenishment checks as long as the payee has a Stanford Identification Card.

f. Reports of Petty Cash Expenditures
Petty cash expenditures are reported to departments on their monthly expenditure statements by account number (PTA) and expense classifications.

This policy should be read in conjunction with the following related policies and procedures:

a. Petty Cash Fund Administration and Procedures
b. Petty Cash Fund Checking Account Administration and Procedures
c. Guide Memo 3.2.1: Authorizing Expenditures
d. Guide Memo 5.4.3: Reimbursement of Expenses

Related Forms:
a. Petty Cash Monthly Reconciliation Form
b. Petty Cash Checking Account Monthly Reconciliation Form