• Essex Westford School District
    Procedure: Fiscal Management / Attachment D: Employee Non-Travel Reimbursements

    Related: See also Fiscal Management Procedure (File Code F)
    Date:  3/28/2019

    Although non-travel personal expenditures by District employees is strongly discouraged, there are instances when employees may need to use personal or petty cash funds for business purposes, and subsequently, get reimbursed by the district.  Listed below are various options for payment of employee reimbursements for goods and services.  

    In order to receive reimbursement for personal expenditures, employees must complete the Supply Reimbursement Request Form. The form must be filled out whether the employee has used personal funds for petty cash funds. It is preferable to hold individual small receipts and submit as a larger amount.  The form must be attached to a completed Purchase Order payable to the employee.

    Allowable Purchases:

    1. Materials. Employees may purchase materials for business purposes and be reimbursed by the District. All reimbursements must be submitted for payment in the same fiscal year as the expense and within six months of incurring the cost.  Reimbursements for office supplies are limited to $50.  Reimbursements for other business materials are limited to $100.  Sales tax on such purchases will not be reimbursed.  Purchases in excess of these limits must be made through the purchasing process and may not be reimbursed to an employee.
      Substantiation:  If the expenses of an employee are not substantiated with original detailed receipts and descriptions of business purpose, the amount reimbursed will be included in his or her Form W-2.  To be excluded from income, adequate substantiation is required for any expenditure, even if petty cash was used. Original documentary evidence (such as receipts or paid bills) will be considered adequate to support an expenditure if it includes sufficient information to establish the amount, date, place and business purpose of the expenditure.  The substantiation must show both proof of purchase and proof of payment.
      Review Process:  A critical review of a business expense will be made to ascertain if the expense was necessary and reasonable to the functioning of the district.  Accounts Payable may ask for additional substantiation if needed to establish a reasonable and necessary business purpose.
    2. Online Purchases. An internet purchase will be reimbursed by the district if the item purchased is used to fulfill the mission of the District.  Reimbursement must be requested in the same fiscal year as the expense and within 60 days of receipt of goods so that the costs will be recorded appropriately for financial statement purposes.  Reimbursement will only be made when the following documentation is provided:
      1. Copy of proof of payment by the employee.  This could be a canceled check, a copy of a credit card billing statement showing detail information on the purchased item, or other receipt showing the person’s name.  If using a credit card statement, blacken out the card number.
      2. Printout of internet order showing confirmation number, or another vendor document with a full description of item purchased.
      3. Original packing slip or other verification of receipt of goods.
      4. District Business Purpose and physical location of the goods must be clearly stated on the Reimbursement Request.
      5. Signature of employee claiming request.
      6. Signature of authorized approver other than requestor. It is preferred to have the signature of the Executive Director of Finance or the Principal.