The university pays directly or reimburses individuals for expenses that are necessary and appropriate to conduct university business. Below is an overview of the key considerations and associated processes for business and travel expenses, along with links to information, guidance and limits on specific types of expenses.
University policy and guidance addresses many, but not all, scenarios. Where unclear or unusual circumstances arise, additional information, questions about financial policies or exceptional requests should be directed to the school or unit’s senior finance administrator. In all cases, fiscal prudence and good judgment should be exercised.
All Stanford transactions are subject to review by Financial Management Services (FMS) as well as internal and external auditors for compliance with sound business practices, institutional policies and procedures, and any applicable laws and regulations.
Overview of Administrative Guide Memo
The university outlines its core responsibility, guiding principles and IRS regulations with regard to business and travel expenses in Administrative Guide Policy 5.4.2: Business and Travel Expenses. In summary:
- Core Responsibility: Individuals using university resources for business or travel expenses and/or are purchasing items to be owned by Stanford, share the responsibility of ensuring that these resources are used appropriately, support the university mission and comply with university policies, applicable laws and regulations and sponsor and donor restrictions.
- Guiding Principles: Individuals using university resources and funds for Stanford business and travel are expected to spend appropriately. Specifically, expenses incurred in the course of university-related business must be reasonable and necessary.
- IRS Regulations: The university reimburses individuals under the IRS Accountable Plan when the IRS regulations are met. Under this plan, the reimbursement is not taxable as income to the employee, as long as the expense has a business connection and was submitted in a timely manner.
Travel and business expenses that do not reflect good stewardship of university resources, are found to benefit the individual at the expense of the university and/or are deemed excessive or fraudulent will be subject to further review by the appropriate office (e.g., Office of Chief Risk Officer or School/Unit Office), as outlined in Administrative Guide Policy 3.5.1: Financial Irregularities.
A key consideration in the proper stewardship of university resources is ensuring that the funding source is appropriate to use for the expense. Funding sources such as individual or corporate donors, government agencies, non-government sponsors and tuition have varying restrictions for their use. The federal government has mandated that no alcohol may be charged as either a direct or indirect expense of federally sponsored projects. Consequently, alcohol cannot be charged to a federal grant or contract account under any circumstances.
Business and travel expenses that will be charged to restricted or sponsored awards, including costs of lodging, meals and incidental expenses, must be reasonable, allowable, necessary to the award and consistent with university policies. Certain expenditures, such as business entertainment and alcohol, may be incurred within policy for university business or travel, and may be charged to an unrestricted account, but may not be charged directly to restricted or sponsored awards.
In June 2020, the university implemented a new travel policy that states that university funds may only be used to purchase or reimburse new university-sponsored travel expenses when booked through one of the Stanford Travel booking channels: Casto, Egencia, United Corporate Direct, and Anthony Travel (used exclusively by Athletics). This policy applies to Stanford faculty, staff and students booking airfare, hotel, and/or car rentals.
Stanford Travel is the university's travel management service for travelers and arrangers. Per Administrative Guide Policy 5.4.2: Business and Travel Expenses, use of Stanford Travel booking channels is expected, because it supports the guiding principle to spend appropriately, eliminates the administrative requirement to provide documentation demonstrating the expense is reasonable and also connects travel reservations to International SOS.
The following are not mandated to be booked through Stanford Travel under policy. In these instances,the travel should be manually entered and updated in InternationalSOS:
- Any non university-sponsored or personal travel (such as for non degree programs, internships, house-hunting or moving expenses).
- Travel for visitors and guests.
- Travel for Stanford Healthcare and SLAC employees.
- Employees of Stanford's affiliated global subsidiaries and branches (including BOSP centers).*
- Group travel bookings for 10 or more travelers going to the same destination.*
- Conference hotels may be booked directly with the hotel at the conference rate. View more information on the Lodging Policy page.*
- Ground transportation options such as car service, rail, taxi and public transportation.
- Homeshare or rideshare services (i.e., Uber, Lyft, and AirBnB). If travelers choose to utilize these optional services, they may be booked either within or outside of the Stanford Travel program.
- Airline ticket reissues or exchanges.*
*In these instances, travelers must manually register their trip into International SOS, since the travel is being booked outside of Stanford Travel.
Learn more about about traveling for Stanford in the Travel Process overview.
Roles and Responsibilities
It is the responsibility of the individual incurring expenses, those who assist others with incurring expenses and those involved in the preparation and approval of reimbursement requests or financial transactions to exercise good stewardship of university funds and to adhere to university policies. The individual incurring the expense and the appropriate administrator must ensure that all costs are in compliance with university travel and business expense policies prior to purchasing. These roles and responsibilities are outlined in Reimbursements and Expense Requests.
All business and travel expenses must have a business connection; that is, they must have been paid or incurred while performing Stanford business. The business connection must be adequately explained and documented in the university’s records. Documentation must include the Business Purpose, which should clearly and without need for interpretation:
- Explain how the business expense is connected to the university and supports its mission.
- Include sufficient documentation to support the Business Purpose and alignment to the purpose of the funds, such as agendas or travel itinerary, and demonstrate that the expense was reasonable based on circumstances.
A Business Purpose should be written so that someone reading it at a future time (e.g., an auditor reviewing the expense two or three years later) could understand the business connection without question. Refer to Resource: Guidelines for Writing a Clear Business Purpose.
Those responsible for spending university funds on business and travel expenses must use the appropriate purchasing and payment method. Depending upon the type of expenditure and circumstances, primary purchasing and payment methods for business and travel expenses include Stanford purchase requisitions, credit card programs, non-purchase order payments, advances (under special circumstances) and expense reimbursement.
Generally, the Stanford Travel Card (TCard) is the preferred payment method for lodging and hotel costs. Alternatively, personal funds may be used and a request for reimbursement can be submitted after the trip.
For more information about each of these methods, refer to Topic Overview: Purchasing & Payment Methods.
Receipts and Documentation
Expense and reimbursement requests must include sufficient documentation to support the business purpose and alignment to the purpose of the funds. Per the IRS Accountable Plan, documentation must demonstrate that the amounts incurred are reasonable based on the facts and circumstances, and specific explanation when they have deviated from university guidelines. Departments and units may have more restrictive requirements for receipts and documentation at their local discretion.
- $75 or more: Original receipts are required in the Expense Requests System for expenses of $75 or more and should correspond to an individual expense line. If an individual expense is $75 or more, and an original receipt is not submitted as a backup document, some form of proof of payment, such as a credit card statement, must be submitted.
- Currency: Foreign receipts must be converted to U.S. dollars. The Oanda website is a currency converter that can be used to convert foreign receipts. On the Oanda website, enter date of receipt or date the plane ticket was issued (not necessarily the travel date) to get proper conversion. The currency conversion result must be attached to the expense report.
- Students and postdoctorates: Reimbursement to students and postdoctorates requires certification by the appropriate signatory within the Expense Request System. Learn more on the Student Travel page.
Some expense categories, such as meals, airfare, car rental, lodging and conferences require additional documentation, which is detailed on those respective policy pages.
The university reimburses for reasonable and necessary meal expenses of two types:
- A business meal is defined as a meal at which faculty, staff, students and/or guests are present for the purpose of conducting university business.
- A travel meal is defined as an ordinary and necessary meal that a traveler has while traveling on university business.
For more information, visit the Meals Overview page.
The university pays for reasonable and necessary expenses incurred by Stanford employees, affiliates and visitors in the course of university-related business travel. Travelers should neither gain nor lose personal funds as a result of business travel on behalf of Stanford University.
Travelers must have necessary approvals and travel documents prior to travel.
Other Common Reimbursable Expenses
For information about other common reimbursable expenses,such as employee morale, human subjects and gifts, visit the Other Business Expenses page.
Below is a list of some, but not all, expenses that are considered non-reimbursable. Discretionary accounts/funds are not eligible to support these expenses. As a general policy, purchases in excess of reasonableness are not allowed.
- Spousal travel, unless approved in advance by the Provost
- First-class airfare, unless business class would be allowed under policy but is not available, in which case, it must be booked through Stanford Travel
- Travel clubs, programs and fees, i.e., Trusted Traveler, Clear, Global Entry and TSA PreCheck
- Frequent traveler programs or memberships, including the purchase of or redemption of miles/points
- Personal amusement, social activities or entertainment
- Gifts to individuals, e.g., for birthdays and baby showers (excluding service awards)
- Personal membership dues, subscriptions and club fees, such as airline clubs and individual Stanford Faculty Club dues
- Commuting expenses and parking fees or permits on historical campus and Stanford Redwood City campus for employees or students
- Traffic citations for either personal or university vehicles
- Interest charges for late payment of bills
- Personal services or items included in a purchase of other items to be owned by Stanford
- Purchases of carbon offsets or carbon credits
- Any costs specifically disallowed by school, department policy, external agreement or gift restriction