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Substantiation

Substantiation is the process of documenting, monthly, the business related expenses the cardholder has charged to the University credit card.

The University's policy requires cardholders to comply with the following "accountable plan" for all University credit card expenses:

  • Business Purpose - For each expense there must be a business purpose. Such expenses must be deductible business expenses, according to IRS regulations, which are incurred in connection with services performed as an employee.
  • Substantiation - Documentation is required to substantiate business related expenses under IRS regulations. The IRS requires documentation which includes dated itemized receipts to support each expense. Substantiation includes verification of:

           For travel related expenses:

    • What – the description of expense
    • When - the date of the expense
    • Where - the location of the expense
    • Why - the business purpose of the expense
    • Who - full name of individual incurring the expense and full name of other individuals in attendance

           For non-travel related expenses:

    • What – the description of expense
    • When – the date of expense
    • Why - the business purpose of the expense

In order to comply with IRS regulations, expenses must be substantiated within sixty (60) days of the statement date.

Failure to substantiate expenses within ninety (90) days will result in the suspension of credit card privileges.

Travel related expenses not substantiated within one hundred twenty (120) days of the statement date will be processed as taxable gross income and included on the cardholder's paycheck through the Payroll Office.

Cardholder's Failure to Substantiate

Failure to substantiate a monthly statement may result in the revocation of University credit card privileges.

Any substantiations that are ninety (90) days past due from date of statement will result in suspension of University credit card privileges.

University credit card privileges will be revoked for one year if a cardholder receives three ninety (90) day notices within a 12-month period. University credit card privileges will be revoked permanently if the cardholder receives one ninety (90) day notice after credit card privileges have been reinstated.

                                                                                                                                                      Last Updated: 06/14/2013