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Business Expense Policy

Purpose

This policy relates to business expenses incurred by employees on behalf of The New School (“the university”). It promotes the proper stewardship of funds by providing guidelines for the appropriate and legal uses of these funds in support of the university's mission. This policy is consistent with Generally Accepted Accounting Principles (GAAP), Board of Trustees mandates, funder requirements, federal, state and local rules, and regulations governing not-for-profit organizations. This policy and its administration may be revised periodically to reflect changes in these mandates and other factors.

Scope

This policy applies to all employees of The New School.

Responsibilities

Purchaser

Incurs expense on behalf of university

Purchaser has the responsibility to ensure that:

Appropriate approvals have been acquired, or the individual has the appropriate authority, to initiate the expenditure.
The expenditure is:

An allowable business expense
Not personal in nature
In furtherance of the university’s mission
Within planned budgetary constraints
In compliance with any funding designations and guidelines
In compliance with appropriate university policies
In compliance with operating department policies
Supported by appropriate documentation, such as a receipt, written quote or other similar documentation
The expense is the most reasonable, least-cost option that fulfills the business purpose

Delegate

Prepares reports and required documentation for approval

The Delegate may or may not be the same as the Purchaser. The Delegate has the responsibility to:

Process the expenditure in compliance with appropriate university, regulatory and departmental policies and procedures
Record expenditures consistently and in accordance with university’s chart of accounts
Prepare all forms, reports and supporting documentation per university policy

Approver

Approves expense and accounting for expense

Approvers are university employees with the authority to sign off on expense reports and may include Senior Vice Presidents, Vice Presidents, Deans and Budget Directors. Approvers have the responsibility to ensure that:

All processing and review steps, as stated above, have been followed.
Tax issues have been properly addressed (see the "Taxes" section of this document)
To the best of their knowledge there is no conflict of interest with individuals involved in the transaction
The transaction is in compliance with applicable policies and procedures
The expense is reasonable and in line with the university’s mission
Review and monitor budget

Note: The Purchaser and the Approver of a transaction must be different individuals, in order to ensure separation of duties.

Supplemental Approver

The Supplemental Approver approves unusual transactions, which require approval over and above customary approval. These approvers are typically the Dean or Vice President of the department or an appropriate representative of Finance and Business. Supplemental approval must be requested prior to the expense.

Accounts Payable

Processes, records, reimburses and accounts for expense payments

The responsibility of Accounts Payable is the following:

Process all approved expense reports and prepare and issue the payment to the employee, generally within 10 days (delays may occur if expense reports do not adhere to policy and procedures)
Review and archive all documentation related to the expense report
Perform audits of expense reports
Assist Purchasers, Delegates and Approvers with policy and procedure questions
Review requests for exception or adjustment to policy
Communicate approvals or denials to the departments

Policy

This policy applies to all business expenses incurred by university employees. Due to budgetary constraints or funder restrictions, some university departments may institute more restrictive guidelines. In cases where there is a discrepancy between this policy and a department, granting agency, or donor policy, the more restrictive policy will apply.

The below sections are intended to cover the university’s policy and procedures for the most typical business expenses and is not intended to be exhaustive. In the event that an expense is not specifically covered in the policy, Finance and Business will make a determination based on reasonable interpretation of the guidelines and regulatory requirements.

Contact the Office of Finance & Business (F&B) with any questions about this policy.