Purpose of Policy

As a charitable organization that benefits from gifts by donors and sponsored awards, ����app has a stewardship obligation to use its funds prudently; all ����app employees must use University resources wisely and in the fullest support of ����app’s mission of education and research. The purpose of these policies is to bring clarity, equity, efficiency, regulatory compliance, and community to our individual perspectives on managing the resources that have been entrusted to the University.��

While no policy can address every scenario, this document is intended to cover the most common situations; where unusual circumstances arise, the spirit of this policy – along with good judgment – should prevail.��If you encounter decisions or questions around spending or approvals that are not covered directly in this document or any questions about these policies, please contact the Director of Finance.

We are committed to operating within the guidelines of this policy, along with IRS, FERPA, state, federal and other regulations applicable to the University.

The University reserves the right to amend or modify the financial policies with or without advance notice. The Financial Services Office (FSO) is responsible for updating these policies.

Accountability

It is the responsibility of each University employee, including those working for centers and institutes, to comply with these policies and procedures. Employees are encouraged to report concerns regarding individuals who may be using resources outside of these guidelines directly to their supervisor, an executive leader, Director of Risk Management or Human Resources.

Individuals who use University resources outside the guidelines of this policy, as determined by a combination of the supervisor, divisional leadership, Human Resources, the Chief Financial Officer (CFO), and/or FSO will be subject to disciplinary action up to and including termination in accordance with the employee handbook. Various accountability practices may be used. The University will determine what level of disciplinary action may be needed by evaluating the severity of the incident(s).

Tax Exempt Status

As a tax-exempt organization, the University is exempt from paying sales tax in some states. ��Tax-exempt letters are available upon request from accountspayable@calvin.edu.�� Please provide vendors with the University’s tax-exempt letter prior to making a purchase to avoid paying sales tax.��

Accountable Reimbursement Plan

����app employees may pay for University-related expenses with a corporate credit card or request reimbursement for such expenses.��Travel expenses must be reasonable and necessary, and travelers must always use the most cost-effective means of travel.�� All travel reimbursements must meet the IRS Accountable Reimbursement Plan rules to be excluded from the traveler’s taxable income.��

The��IRS Accountable Reimbursement Plan��is a set of rules that allows employers to reimburse employees for business-related expenses��without treating those reimbursements as taxable income, provided certain conditions are met. Our policies are based on the three key requirements of the IRS Accountable Plan:��

1. Business Connection: The expense must have a legitimate business purpose and be incurred while performing services as an employee. Expenses must have a direct University-related business purpose; that is, expenses must have been paid or incurred while performing authorized and necessary services on behalf of the University. Support indicating the business connection/purpose must be provided in the employee’s expense report. Examples of such evidence include the following: name of the event/meeting, time and date of meeting, attendees, reason for the employee’s attendance at the event, etc. The responsibility for validating the legitimate business purpose of travel rests upon the individual and his or her supervisor. A simple way to remember what documentation is needed is the “three P’s”: Purpose, People and Place.��
2. Substantiation: Employees must provide documentation (such as detailed/itemized receipts or mileage logs) that adequately accounts for the expenses within a reasonable time, within 30 days from the date the expense occurred. To close our fiscal year in a timely manner, FSO will require that any June expenses be reported within 15 days of June 30.��
3. Return of Excess: If the employer advances more money than the actual expense, the employee must return the excess within the same 30-day period noted above. For example, if an employee receives a cash advance for travel, any unsubstantiated funds (no detailed receipts) would need to be returned within 30 days of travel.��

Payment and Reporting Methods��

A corporate credit card is available for employees who make frequent purchases for University-related activities and are scheduled to work 20 or more hours per week with the approval of their supervisor. An employee may request a corporate card in Workday. Please see the “Request a Huntington credit card” job aid located in the����for instructions on how to complete the request. Employees may pay with cash or a personal credit card (out-of-pocket expenses) only when the corporate card is not accepted. The University’s accountable reimbursement plan applies to both expenses paid on a corporate credit card and out-of-pocket expenses. See the��corporate credit card policy for more information.

The University uses Workday as a method to submit, approve, and pay employee’s out-of-pocket and corporate credit card expenses. If a Spend Authorization was required, an employee will select the Spend Authorization when creating an expense report.��

Expense reports must be submitted within 30 days of when the expense was incurred. Expenses paid by credit card and submitted in Workday beyond 30 days after the end of the month will result in disciplinary action including revocation of the corporate card. Expense reimbursements requested in Workday beyond 30 days from when expenses are incurred will not be paid by the University and could result in additional disciplinary action.

Supervisor and Approver Responsibilities��

All employees in supervisory roles are responsible for the supervision and approval of the expense reports of their direct reports, and potentially further approvals on all expenses are required based on dollar thresholds. When approving expense reports, the supervisor or approver is responsible for verifying the following:��

• Budgeted funds are available for the expenses reported.��
• The expense has a valid University-related and necessary purpose.��
• Proper supporting evidence is attached (i.e. detailed receipts) for the business expense.��
• The expenses meet all the requirements outlined in this policy.��

Spending University Funds

����app requires that faculty and staff who plan for or purchase products, equipment, supplies, and services with University funds, base purchases on sound business practice, best value, accountability, and compliance with donor, sponsor and regulatory requirements. Individuals planning for or making purchases must follow this and other established ����app policies and procedures.

The Federal Uniform Guidance mandates that��purchases made with federal funds follow specific procedures, and the University requires all purchases made with federal funds to follow these procedures. In addition, all purchases must comply with all terms and conditions of the funding source. The University strongly encourages best practices for purchases made with non-federal funds. Refer to the��Office of Grants and Foundations Relations Policy Page for procurement policies specific to federally funded projects.

If direction differs between this policy and external regulations, sponsor or donor terms, or other internal policy or procedures, the more restrictive policy will apply.

Within Workday, there are five primary methods for the authorization of University Funds. Pre-approval is required at specific dollar thresholds prior to incurring expenses.

1. Procurement/Requisition – This pre-approval process should be used for all purchases that will be paid for by accounts payable via a supplier/vendor invoice. Procurement is not used for expenses paid by credit card or expense reimbursement. FSO prefers that larger purchases are made through the procurement process and paid via invoice rather than using credit cards because of both the control provided by pre-authorization and efficiencies and record-keeping maintained through procurement. FSO may require that certain suppliers and vendors are only paid through the procurement process. All invoices related to requisitions must be submitted to Accounts Payable at accountspayable@calvin.edu.
2. Spend Authorization – This pre-approval process is to be used for expenses to be paid by credit card or via expense reimbursement. This method should be used primarily for travel-related expenses, small dollar purchases, and purchases that cannot be easily invoiced.
3. Punch-out – This is a feature within Workday that allows users to access a supplier’s external catalog, such as Amazon, directly from within the system. The user can shop on the supplier’s site, and the cart is brought back into Workday as a requisition.��
4. Expense Report��– Expense reporting��is a process for submitting, approving, and reimbursing business-related expenses. All employees must use Workday to report expenses incurred on behalf of the institution, whether paid personally (out-of-pocket) or using a University-issued credit card. Employees are responsible for submitting complete and accurate expense reports in a timely manner. If a Spend Authorization was completed, expenses will be matched to the Spend Authorization on the expense report.
5. Supplier Invoice Request –��Supplier Invoice��Requests will still be available for under $1,000. However, we strongly encourage submitting a requisition for all expenses.��
   • Purpose of travel or expense
   • Planned dates
   • Travelers' names and names of meeting attendees
   • Estimated cost
   • Funding source (Worktags)
   • Any supporting documentation (e.g., conference invitation, itinerary)

Dollar amounts of expenses will determine the necessary approval levels for procurement based on board-approved thresholds. The following approval thresholds apply to all spending methods at ����app:

Procurement/Requisition

Procurement at ����app is a requisition process to receive approval to use University funds prior to making a purchase. Procurement is not used for travel expenses or purchases paid by credit card. Pre-approval is required for all purchases��of $1,000 or more by someone other than the requestor, usually the worktag manager. Further approvals are required according to board-approved authorization levels.����Please review the “Requisition” job aid located in the����for instructions on how to complete a request.

Procurement Process

1. Request for Goods or Services
   • Initiation: The department or individual requiring goods or services must submit a requisition via the Workday Procurement system. Requests should include a detailed description, specifications, quantity, worktags, spend categories, and any other relevant information. A document showing the detailed items listed above must be attached to the requisition.
   • Approval: All requisitions must be approved by the authorized approver prior to proceeding with procurement.
2. Purchase Orders

Once a requisition��is approved, a purchase order (PO) will be generated automatically within the Workday Procurement system. The PO will contain the agreed-upon terms, including price, quantity, item description, delivery schedules, and payment conditions. The PO can be sent via email automatically to the supplier, please inform��accountspayable@calvin.edu if you want to set this up. The PO must be provided to the supplier because it makes receiving the goods and matching the invoice to the PO much more efficient.��

3. Order Fulfillment

Upon receipt of goods or services, the requester is responsible for verifying that they meet the specifications outlined in the PO. Any discrepancies should be reported immediately to the supplier and accounts payable office. ��The requestor must approve the invoice in Workday as confirmation of satisfactory receipt of goods or services.

4. Invoice and Payment

Suppliers or departments receiving an invoice must submit invoices directly to accountspayable@calvin.edu for processing. Invoices will be matched to the PO to ensure accurate payment. The Accounts Payable Specialist will enter the invoice into Workday.

After approval of the invoice denoting proper receipt of goods/services, payments will be made by accounts payable. Payments will be processed according to the University’s payment policies and within the terms agreed upon with the supplier.

Spend Authorization

Spend Authorization is a process used to obtain approval to use University funds prior to incurring travel or other business expenses not easily paid by invoice. This includes airfare, lodging, conference fees, and any other authorized travel or business expenses. Spend Authorization is not required for purchases made through the Procurement module or for purchases paid via invoice. Spend Authorization should be used only for expenses which will be reported on an expense report.��

Pre-approval is required for all overnight travel, expenses paid for by credit card and expense reimbursements totaling $1,000 or more and must be granted by someone other than the requestor—typically the Worktag Manager. Additional approvals may be required based on board-approved authorization levels.��

Please review the “Spend Authorization” job aid located in the Workday SharePoint site for detailed instructions on how to initiate and submit a Spend Authorization request.

Spend Authorization Process

1. Initiate a Spend Authorization
   • Initiation: The employee must initiate a Spend Authorization request in Workday prior to making travel or expense-related commitments. The request should include:
   • Approval: The request must be approved through Workday before any expenses are incurred. Approvals must be obtained according to the University’s authorization thresholds.
2. Expense Incurred and Reimbursement������
   Once the Spend Authorization is fully approved, the employee may proceed with making travel arrangements or incurring authorized expenses.
   • Expenses must align with the approved Spend Authorization.
   • Detailed receipts and supporting documentation must be submitted with an Expense Report in Workday following the trip or purchase.
   • The expense report is matched against the original Spend Authorization for validation and approval.
   • Once approved, Accounts Payable will process the reimbursement based on University policies and payment timelines.
   • Multiple expense reports may be linked to one Spend Authorization.

Consequences of non-compliance with Spend Authorization requirements:

If an employee fails to submit a Spend Authorization when required by this policy, the University has established a three-strike policy because of non-compliance.

1. Strike One – After the first offense of not submitting a Spend Authorization, the employee and supervisor will be informed of the non-compliance.��
2. Strike Two - After the second offense of not submitting a Spend Authorization, the employee and supervisor will be informed of the non-compliance and the employee’s corporate credit card, if the employee has one, will be put on hold for 30 days.
3. Strike Three - After the third offense of not submitting a Spend Authorization, the employee and supervisor will be informed of the non-compliance and the employee’s corporate credit card, if the employee has one, will be permanently cancelled and all purchasing privileges of the employee will be terminated.��

An employee who has lost purchasing privileges may reapply for purchasing privileges not sooner than one year after losing them. The employee’s supervisor and the Director of Finance must approve the request.��

Punch-out

The Punch-out process in Workday provides users with direct access to approved supplier catalogs through Workday’s procurement interface. It allows employees to shop from external vendor websites while maintaining compliance with University’s purchasing policies and streamlined requisition workflows. FSO encourages employees to use Punch-out over other purchasing options whenever possible because of the automatic population of item details into requisitions, reducing manual entry errors and improving procurement efficiency. The University’s sales tax exemption documentation is stored on all business accounts linked to Punch-out and is applied to all purchases made through Punch-out.

At the writing of this policy, the University has one Punch-out vendor, Amazon Business. Please review the “Punch-out” job aid located in the Workday SharePoint site for detailed instructions on how to initiate and submit a Spend Authorization request.

Punch-out process

1. Initiate a Punch-out Requisition:
   • Users navigate to the Requisition��app in Workday.
   • Under Ordering Methods, select Connect to Supplier Website.
2. Access a Punch-out Catalog:
   • From the supplier list, users choose a vendor with a Punch-out integration (e.g., Amazon Business).
   • This action redirects the user to the vendor’s Punch-out site within the Workday session.
3. Shop on Vendor Site:
   • Users browse, select items, and add them to the vendor shopping cart.
   • Once complete, they return to Workday, and the cart details are automatically transferred into a draft requisition.
4. Complete and Submit the Requisition:
   • Users review item details, quantities, and pricing.
   • Users add the necessary worktags for the order.
   • Shipping and billing details are auto-filled or selected from Workday options.
   • The requisition is submitted for approval.
5. Approval and Purchase Order:
   • The requisition routes through the appropriate approval hierarchy.
   • Once approved, a Purchase Order (PO) is automatically generated and transmitted to the vendor electronically.
6. Receipt and Invoice Matching:
   • Goods or services are received and recorded in Workday.
   • Invoices from Punch-out vendors are typically transmitted electronically and matched to the PO and receipt for payment processing. �� {What is the process for determining and documenting receipt of goods?)
   • FSO pays the invoices from Punch-out suppliers; they are not charged to an employee’s corporate credit card.��

Expense Reporting��

Expense reporting��is a process for submitting, approving, and reimbursing business-related expenses. All employees must use Workday to report expenses incurred on behalf of the institution, whether paid personally (out-of-pocket) or using a University-issued credit card. Employees are responsible for submitting complete and accurate expense reports in a timely manner. If a Spend Authorization was made, expenses will be matched to the Spend Authorization in the expense report. All expenses for overnight travel or expenses greater than $1,000 require pre-approval through the Spend Authorization process.��

Please review the “Expense Report” job aid located in the Workday SharePoint site for detailed instructions on how to initiate and submit an expense report.

1. Create an Expense Report
   Employees begin by creating a new Expense Report from the Workday homepage.
   • Navigate to: Expenses > Create Expense Report
   • Select if the expense is related to an existing Spend Authorization.
2. Enter Report Details
   You’ll be prompted to provide:
   • Business Purpose
   • Worktags
3. Add Expense Lines
   For each expense item:
   • Corporate card transactions are integrated into Workday and should be added to expense reports
   • Select an Expense Item (e.g., airfare, meals, lodging)
   • Enter amount, merchant, and location if it was not paid with University-issued credit card
   • Upload supporting documentation (e.g., scanned detailed receipts or PDFs)
   • Assign the appropriate Worktags (such as Project, Grant, Fund, etc.)
4. Submit for Approval
   Once all expenses are entered, the employee submits the report.
   • The report is routed through the approval hierarchy.
   • Approval chains may vary depending on dollar amount, funding source, or policy rules.
5. Audit and Compliance Check
   • FSO will review detailed receipts, validate expense types, and ensure compliance.
6. Reimbursement or Posting after approval
   • Out-of-pocket expenses are reimbursed to the employee through accounts payable.
   • Corporate card charges are posted to the general ledger and FSO pays the credit card invoice.
   • Navigate to: “Create Supplier Invoice Request” in Workday
   • Select the appropriate supplier from the database (must be active)
   • Enter a description, invoice date, and invoice number��
   • Upload a copy of the invoice, contract, or other relevant supporting documentation
   • Specify goods or services description, amount, and worktags (cost center, fund, grant, etc.)
   • Use accurate spend categories to ensure proper accounting treatment
   • The request routes through appropriate financial approval workflows based on worktag and amount
   • Additional approval may be required based on dollar thresholds
   • Once approved, the request becomes a Supplier Invoice in Workday
   • It is processed by Accounts Payable according to payment terms (e.g., Net 30)
   • Payment is made via the institution’s standard method (ACH, check, wire, etc.)

Supplier Invoice Request

The Supplier Invoice Request in Workday is used to initiate payment to a supplier when no purchase order (PO) exists. It is used for payments that are not preceded by a requisition. Supplier invoice requests will only be allowed for expenses under $1,000. We strongly encourage submitting a requisition for all expenses, even if below $1,000, because of the pre-approval process embedded within Workday.��

Please review the “Supplier Invoice Request” job aid located in the Workday SharePoint site for detailed instructions on how to initiate and submit a Supplier Invoice Request.

Supplier Invoice Process Overview

1. Initiate the Request
2. Attach Documentation
3. Enter Line Details
4. Submit for Approval
5. Processing and Payment

Opening External Financial and Merchant Accounts

All financial and merchant (credit card or e-payment) accounts must be opened by the FSO and in coordination with Information Technology Services. This includes, but is not limited to, bank accounts, PayPal, Square, and Venmo accounts. Contact the Controller to discuss your needs.

Contract Signing and Retention

Any contracts from $0 to $99,999 must be signed either the President, Provost, any VP or Associate Provost. Any contracts $100,000 to $999,999 must be signed by any VP, Associate Provost or Associate VP AND the President or VP for Finance and CFO. Contracts greater than $1 Million must be signed by all the previous approvers and the President and the VP for Finance and CFO and be in connection with projects previously approved by the board. No other University employees may enter a contract on behalf of ����app.��

Contracts must be stored in Workday via submission to the Director of Risk Management.��

Mileage Reimbursement��

Individuals who utilize their personal vehicles on behalf of the University are entitled to mileage reimbursement. Mileage reimbursements are intended to compensate for gas as well as the cost of wear and tear on personal vehicles. When utilizing your personal vehicle, gas receipts will not be reimbursed.����

• Mileage reimbursement requests must include all beginning and ending locations, total miles driven, and business purpose.����
• Transportation expenses between an employee’s home and to the regular place of work are personal commuting expenses and will not be reimbursed. The regular place of work is defined as a university office where an employee is expected to perform their work on a regular basis.��
• Mileage for the use of a personal vehicle is reimbursed at a rate set by ����app and is based on the current Internal Revenue Service standard rate.����
• Car rentals should be considered for long-distance travel instead of using a personal vehicle and receiving mileage reimbursement. Employees should evaluate the costs of travel methods to determine which option is most cost-effective for the university.����

Use the “Create an Expense Report” task in Workday to request reimbursement for mileage driven.�� Note that support, such as driving directions from Google maps, is required for reimbursement.�� Please see the “Create expense report” job aid on the����for more information on how to complete expense reports.

Budget

Budget Process

����app departments are responsible for managing the funds spent within the departmental budget. Financial Services will serve as a resource and business partner with the departments of ����app to ensure timely and accurate financial reporting.

Budget Basics

• Worktag Manager (Budget Officer)������
  A worktag manager is the individual with designated responsibility for a particular budget. In Workday, worktag managers are responsible for reviewing and approving all expenses for a particular worktag. This individual is generally involved in the budgeting process and is responsible for expenditures charged to the budget. Vice Presidents, deans, chairpersons, department heads and directors are commonly assigned the duties of a worktag manager.

• Worktags������
  Worktags are labels assigned to transactions for reporting purposes. The worktag identifies the appropriate budget to which the request should be assigned (charged) and worktag manager who should approve the expense.

  Users must select at least one worktag, the “driver worktag,” for every transaction in Workday; other required worktags will populate in Workday based on your driver worktag selection.��

• Budget Reports������
  Budget reports are available to worktag managers (budget officers) and worktag financial analysts (budget delegates) in Workday via the Budget vs Actual by Worktag report. The reports provide the worktag manager with a mechanism for tracking actual spent versus the budget and allows viewing the details of each worktag over which they have responsibility. The report��Budget vs Actual by Worktag Encumbered provides actual spending and dollars committed to spend for approved purchase orders and spend authorizations. See the Workday@����app Sharepoint for more information.

  If you have questions regarding your reports, please check the��.or contact Julie Yonkers, Budget Analyst.��

• Journal Entries������
  Journal Entries need to be made to move money from one worktag to another. Request for transfer of funds by emailing��generalaccounting@calvin.edu. Please include all worktags with your request.

• Setting up new worktags (accounts)������
  New worktags will be created as part of the process of setting up a new grant or gift. To request a worktag for a new project, program, academic program, or cost center, use the “Create Request” task in Workday.�� Please contact the Controller for more guidance.

  ��

Accounts Payable Processes and Schedule

All suppliers/vendors must be set up in Workday prior to creating a requisition. If you have a supplier you are working with that has not done business with ����app in the past 5 years, you will need to “Create Supplier Request”. Documentation must be attached to the request supporting the information provided. A��W-9��is the preferred documentation for a US Citizen ( for foreign individual).��

Suppliers/vendors can be paid via one of three payment options – ACH/Check/Wire. ACH is preferrable for any supplier with a US bank account for ease and speed of payment and avoiding checks lost in the mail. Wire Transfer is required for payment outside the US/to a non-US bank. The ACH Authorization Form and Wire Transfer Information Form can be found on the Financial Services website under Forms & Policies and should be attached to the Supplier Request. If you wish to add ACH information to an existing supplier, please send the information to accountspayable@calvin.edu.

Payment of invoices are processed each Tuesday. ACH payments should be deposited in the supplier’s account within 1-3 business days of payment. Invoices will be paid based on stated payment terms found on the invoice. If a supplier’s invoice does not have stated terms, the default is 30 days. Invoices (tied to purchase orders and submitted via Supplier Invoice Request) must be fully approved by the end of the day Monday to be included in Tuesday’s batch.

Accounts Payable (referred to as the “Buyer” in Workday) will issued purchase orders from approved requisitions daily – at the beginning and end of the work day.

Please contact��accountspayable@calvin.edu with any questions.��