3305 Expense Advances

Policy Sections

3305.1 Appropriate Uses of Expense Advances

3305.2 Approved Processes for Expense Advances

3305.3 General Rules and Guidelines Applicable to Expense Advances

3305.4 Expense Advances for International Activities

This policy establishes the University’s rules and guidelines for Expense Advances.  It applies to all Yale individuals and offices.

Note: While this policy covers the baseline University rules and guidelines for Expense Advances, expenses funded by sponsored awards may be subject to additional restrictions not specifically covered by this policy.  Contact Sponsored Projects Financial Administration (“SPFA”) for information on any pertinent additional restrictions.

Individuals involved in authorized and funded University activities should have the necessary funds available on a timely basis.  The University prefers to make direct payments (e.g., purchase order (“PO”)/invoice, purchasing card (“PCard”), etc.) for goods and services, but it will provide advance funds for extended out-of-area activities and for certain other expenses when alternate methods of purchasing and payment are not practical or available.

Individuals receiving Expense Advances (“Custodians”) should spend University funds prudently, and they should neither gain nor lose personal funds as a result of their activities on Yale’s behalf.  Advanced funds must be appropriately safeguarded and managed, and expenses must be properly recorded and reported as set forth in this policy.

Salary and wage payments for work done in the United States should not be made from Expense Advances.

In efforts conducted on behalf of the University, individuals are occasionally involved in long-term research/activities conducted away from the campus.  There are operational circumstances in which the preferred procurement methods are not available or cannot be used.  In order to make necessary funds available for the conduct of such activities, the University may provide Expense Advances, if appropriate justification is provided.  Additionally, when an Expense Advance is an appropriate method for human research study participant remuneration (“study participant remuneration”), this policy provides the foundational principles for such Expense Advances.

Custodian

The Yale employee who receives an Expense Advance.  The Custodian has direct knowledge of the anticipated expenditures and is designated as responsible for the management and safekeeping of the funds related to the Expense Advance.

Expense Advance

University funds provided in advance for purchases or payments in a limited number of circumstances where other preferred methods of purchase or payment are not practical or available.

Whenever possible, the University prefers to make direct payments (e.g., PO/invoice, PCard, etc.) for goods and services.  It will, however, advance funds for certain activities when alternate methods of purchasing and payment are not practical or available.

Expense Advances may be provided to individuals who qualify as Custodians (as defined above) who have special expense needs associated with approved and funded activities when alternate methods of purchasing and payment are not practical or available.  Typical example activities that may qualify for Expense Advances include, but are not necessarily limited to:

• Travel that exceeds one (1) month in duration and involves activities such as archaeological expeditions, field site assignments, extended performance tours, or other similar activities;
• Travel to regions of the world where non-cash methods of payment are not regularly utilized;
• Travel involving groups of students where per diem meal distributions are managed by a Custodian;
• Remuneration and/or reimbursement of human research study participants.

Expense Advances issued for travel and expense (“T&E”) purposes may be used to cover costs of operations while on site, such as supplies and equipment, food, lodging, and local travel expenses.  For more detailed information regarding travel-related expenses, consult Policy 3301 Travel on University Business. 

Expense Advances issued for T&E purposes must be requested, approved, managed, and cleared in accordance with Procedure 3305 PR.01 Spend Authorization Process for Expense Advances.

Expense Advances issued for remuneration and/or reimbursement of human research study participants must be requested, approved, managed, and cleared in accordance with Procedure 3417 PR.01 Human Research Study Participant Remuneration Process.

The following rules and guidelines apply when utilizing an Expense Advance for any purpose:

• In general, the University does not issue Expense Advances for amounts under $300;
• The amount requested should not exceed the costs that are expected to be incurred;
• All Expense Advances must include the expected start and end dates for the associated activity;
• Any outstanding Expense Advance amount in excess of substantiated expenses may be deducted from the Custodian’s next paycheck; and
• Lead Administrators (or their designees) are responsible for ensuring the timely clearing of all Expense Advances in their area(s).

In addition to the above, the following rules and guidelines apply when utilizing an Expense Advance for either T&E purposes or study participant remuneration:

In the planning stages of activities that will be conducted outside the United States (“U.S.”), individuals are expected to consult and familiarize themselves with the information contained in Procedure 3301 PR.02 Obtaining Cash for Yale Activities Abroad.  Only when the University’s preferred payment options are not practical or available should individuals consider the use of an Expense Advance.

Exceptions to this policy require prior approval by the Controller’s Office, in consultation with the Provost’s Office, General Counsel, or an Officer of the Corporation, as appropriate.

Accounts Payable

• Advises the Yale community on Expense Advance procedure regarding checks and direct deposits.
• Processes Expense Advances for checks and direct deposits.
• Ensures Expense Advances under their purview are processed in accordance with University policy. 

Controller’s Office

• Responsible for the content and implementation of this policy.
• Interprets and provides guidance on policy.
• Reviews and rules on requests for exceptions to this policy, in consultation with the Provost’s Office, General Counsel, or an Officer of the Corporation, as appropriate
• Reviews and approves/rejects Expense Advances greater than $25,000.

Custodian

• Responsible for requesting, managing, safeguarding, and clearing Expense Advances in accordance with Procedure 3305 PR.01 Spend Authorization Process for Expense Advances.
• Responsible for ensuring Expense Advance requests and actual expenditures are reasonable and necessary, in accordance with University policies.
• Responsible for clearing and closing Expense Advances, with appropriate supporting documentation, including repayment, as necessary, within the time periods specified in this policy.
• Responsible for appropriately documenting expenses and retaining/providing receipts, in accordance with Procedure 3215 PR.02 Yale Expense Management (PCard and Out-of-Pocket Expenses).

Individual(s) Approving Expense Advances

• Responsible for reviewing and approving Expense Advances in accordance with Procedure 3305 PR.01 Spend Authorization Process for Expense Advances.
• Responsible for ensuring the transaction is appropriate to approve based on the criteria established in Procedure 1101 PR.06 Approval Authority

Lead Administrator (or designee)

• Responsible for ensuring Custodian(s) and Expense Advance approvers in their area(s) are aware of their responsibilities with respect to this policy.
• Responsible for ensuring the timely clearing and, as necessary, repayment of all Expense Advances in their area(s).

Treasury Services

• Advises the Yale community on Expense Advance procedure, foreign banking practices, foreign currency, and recommended payment methods.
• Processes Expense Advances for cash and prepaid cards.
• Ensures Expense Advances under their purview are processed in accordance with University policy.

Sponsored Projects Financial Administration (“SPFA”)

• Advises Yale individuals and offices as to the terms and conditions of specific sponsored awards as they pertain to Expense Advances.
• Provides general guidance with respect to activities funded by sponsored awards.