Interim Policy of Wenzhou-Kean University on Recognition and Reimbursement of Expenses (Modified in 2016)

Chapter One  General Principles

Article 1 In conformity with Accounting Law of the People’s Republic of China, Code of Accounting, Accounting System of Higher Education Institutions and other relevant financial laws, regulations and accounting conventions, with actual situation of the university taken into consideration, this Interim Policy is formulated to strengthen internal management, and regulate the reimbursement procedures.

Article 2 Recognition and reimbursement of daily operational expenditures, taxes, human resource costs, special appropriations, construction exenditures and other expenditures of the university are governed by this policy.

Article 3 This policy applies to all members of the University.

Chapter Two   Fundamental and Documentation Requirements

Article 4   Fundamental requirements

Authorization of reimbursement shall be transferred from offline to online OA system gradually. During the transition, one may choose offline or online path, but should not duplicate one’s application in both paths. Applicants should submit the request forms that are either filled out or printed out, original vouchers and supporting documents to Financial Services after the claim is approved.

4.1 Proper application form should be filled out according to the nature of the expenses. If offline authorization is adopted, Form B (Wenzhou-Kean University Travel Expense Voucher) should be used for costs of transportation, lodging, meals, and incidentals incurred during a business trip for daily operation; Form C (Wenzhou-Kean University General Expense Authorization Form) should be used for reimbursement of other expenditures in daily operation. For expenses in campus construction, Form E (Wenzhou-Kean University Travel Expense Voucher for Construction Fund) and Form F (Wenzhou-Kean University General Expense Authorization Form for Construction Fund) should be used respectively. In the online system, “Claim of Expenditure – Reimbursement to Employee” model should be used if money is to be paid to an individual employee or student (including reimbursement of expense to individual, write-off of advance paid to individuals, refund to individuals and etc.); “Claim of Expenditure – Wire to Vendor” model should be used if money is to be paid to a vendor (including reimbursement of expense to vendor, write off prepayment to vendor, refund to vendor and etc.). In filling out the online application, proper account books should be chosen, e.g, “Construction” should be chosen for expenditures that should be charged against the the Construction Fund, and other accounts such as Labor Union, Foundation etc. should also be chosen according to the nature of the expenditures.

4.2 Offline reimbursement request forms should bear at least two persons’ signatures: one of the person conducting the transaction and the other of the approver. Online reimbursement should follow the established process. The person conducting the transaction should sign on the original receipts (Fapiaos). Besides, an acceptor’s signature is required on the original receipts (Fapiaos) when the value of a single purchase of goods (such as office supplies, materials, components, accessories, low-valued consumables, durables, books and equipment, etc.) reaches 500 Yuan. Request for reimbursement and/or recognition of expenditures of construction projects should be accompanied with record of inspection and acceptance.

4.3 Each expenditure should be properly covered by the annual budget and in conformity with the rules on expenditure scopes and standards. Authorized approvers at all levels should examine and approve a transaction in conformity with Authorization Rule of Wenzhou-Kean University on Financial Issues, and specify the item of the budget to be charged.

4.4 Financial personnel should deny a payment upon receiving false or illegal financial documents and report to the university leadership. Insufficient, incomplete or inaccurate documentation should be returned for rework.

4.5 All original vouchers should be filled out and signed in blue-black or black ink. Vouchers filled out or signed with a ball-point pen or a pencil is not acceptable.

4.6 Settlement should be make via bank transfer except for very small amounts. In an exceptional case where a cash settlement in a large amount is the only feasible way of settlement, a notice should be given to the cashier a day or two in advance.

Article 5 Recognition and reimbursement of expenditures should be made on the basis of authentic, legal and valid original vouchers. The person conducting the transaction should be responsible for the authenticity and validity of original vouchers, which can be divided into two categories: externally acquired original vouchers and internal original vouchers.

Article 6 Requirements for externally acquired original vouchers

6.1 Externally acquired original vouchers refer to the invoices (also referred to as “Fapiao”) and administrative institution settlement vouchers (hereinafter referred to as the “settlement voucher”). Invoices (“Fapiao”) should bear the manufacture-supervising seal of the tax authorities and the invoice stamp of the vendor. Settlement bills should bear the manufacture-supervising seal of a finance department at provincial level or municipal level, as well as the stamp for financial affairs of the vendor. When purchase is made with a small-scale business or a sole proprietorship which is unable to issue the above mentioned invoice (“Fapiao”), an invoice issued by local tax authority for that vendor can be acquired, which should bear the supervising seal and the official stamp of the issuing tax authority.

6.2  Filling requirements for externally acquired original vouchers:

6.2.1 The name of the issuing unit, issuing date, transaction details, volume, unit price, and the document preparer must be specified.

6.2.2 Vouchers should bear the title of “Wenzhou-Kean University”; Vouchers in an individual’s name are not acceptable except for transportation fares, communication fees, tuition, professional training fees, and hotel invoice in certain extraordinary cases. Invoices (Fapiao) or Settlement Vouchers acquired within China must bear the title of the university in Chinese characters, which is “温州肯恩大学”.

6.2.3 Total value should equal unit price multiplied by quantity, or the accumulation of the value of all items. The amount in words must be consistent with the amount in figures.

6.3 Any item on the voucher acquired externally should not be unduly altered or mended. When an error other than amount occur, the voucher should be reissued or corrected by the issuing unit, bearing its stamp or financial affairs or invoice stamp on the record corrected. When an error occurs in amount, the voucher must be reissued.

6.4   Externally acquired original vouchers should be categorized and attached to allonge (see attachment) according to the nature of the expenses.

6.5   Rules on reimbursement when original vouchers are lost

6.5.1 A certification acquired from the issuer of the original voucher,   bearing its stamp for financial affairs or the invoice stamp and specifying the relevant information such as the serial number of the original voucher, the amount and the description of the purchase must be submitted if an original voucher is lost. A photocopy of the original voucher bearing the stamp for financial affairs or the invoice stamp of the issuer may be submitted instead of the certification. The documentation described above should be signed by the employee him/herself, verified by his/her director, and then approved by the head of Financial Services to be eligible for recognition and reimbursement.

6.5.2  Generally, transportation fares should not be reimbursed if the tickets or receipts are lost, unless proof can be produced that the individual has actually purchased and used the ticket.

Article 7 Requirements for internal original vouchers

7.1 Internal original vouchers refer to the vouchers made by relevant functional offices of the University, such as remuneration payment vouchers and receipts for suspense payment.

7.2 Internal original vouchers should be filled out completely. The amount in words and in figures should be correct and consistent, with no alteration. A voucher with altered amounts is invalid.

Article 8 Deadline requirement for submission of vouchers for recognition and reimbursement

Vouchers should be submitted for recognition and reimbursement within two weeks after acquisition. All voucher must be settled by the end of the fiscal year, therefore, it is required that all vouchers acquired by December 15th must be submitted to Office of Financial Service before December 20th of the year; vouchers acquired after December 15th must be submitted by January 31st of the next year. Reimbursement request will be denied if the documentation is submitted beyond deadlines.

Chapter Three Recognition and Reimbursement of Expenditures in Daily Operation

Article 9  Travel Expenses

9.1 An employee must obtain approval from his/her supervisor with proper authority according to the university’s authorization rules prior to any business trip. Form A (Wenzhou-Kean University Travel Authorization Request) should be included in the documentation of claim for reimbursement if offline authorization is adopted, and an equivalent approval document should be printed and included in the documentation if online authorization is adopted. All travel expenses should be claimed altogether in one application for each business trip. Upon returning from the trip, the traveler should fill out form B (Wenzhou-Kean University Travel Expense Voucher) if offline and choose catelog “Reimbursement for travel expense” in “Claim of Expenditure – Reimbursement to Employee” if online. Duration, destination, purpose of the trip, and all expenses incurred should be specified, and the original hotel invoices, transportation tickets/receipts and other related vouchers should be attached. When there are multiple travelers on the same trip, their travel expenses should be calculated as a group and reimbursed altogether, with each traveler’s name listed on form B. When employees travel with students, employees travel expenses and students travel expenses should be filled out in separate lines.

9.2 Expenses incurred during the business trip other than transportation, lodging, meals and business incidentals should be claimed separately. Business entertainment during the business trip should be indicated so that meal subsidy can be calculated accurately.

9.3 Claim of travel expenses incurred for a conference should be submitted together with an invitation/notice of the conference with an approval from the supervisor with proper authority according to university’s authorization rules.

9.4 Detailed standards for travel expenses are stipulated in Interim Policy of Wenzhou-Kean University on Travel Expenses. In exceptional cases where travel expenses exceed the standards laid out in the above-mentioned document, the traveler should submit a written explanation and obtain written approval from the member of university leadership in charge of finance.

Article 10 Business entertainment

Expenses of entertainment covered by the annual budget should be recognized and reimbursed in conformity with relevant regulations of the University.

Except for the reception held in the University dining hall, business entertainment should be paid with a debit or credit card and POS receipt should be attached to the original invoice (Fapiao) when when claiming for reimbursement. A written explanation is required in exceptional cases where cash payment is a must. Entertainment request form (or any equivelant documentation showing the entertainment is properly approved) should be attached in a claim for reimbursement.

Article 11 General materials

The names of the items purchased should be specified on the invoices. Vague description such as “office supplies”, “stationery”, “computer accessories”, “consumable” or “groceries” is not acceptable. When a purchase consists of too many kinds of items to be all specified on the invoice, a detailed list bearing the vendor’s stamp for financial affairs or invoice stamp should be attached to the invoice.

Article 12 Vehicle operation costs

12.1 Vehicle operation costs refer to the costs incurred for the university-owned vehicles, such as insurance premium (vehicle and vessel tax), annual examination fee, fuel, maintenance, car washing, tolls and parking, etc.

12.2  Car washing costs and tolls should be claimed by the drivers on monthly basis.

Article 13 Expenses in printing and copying

Request of recognition and reimbursement for expenses in printing and copying of 1,000 Yuan or above should be submitted together with a detailed list bearing the vendor’s stamp for financial affairs or invoice stamp.

Chapter Four  Human Resource Costs

Article 14 Remuneration of employees

14.1 Monthly payroll including salaries, allowances, bonuses and subsidies should be prepared by the Office of Human Resources in conformity with the employment contracts and relevant university regulations, jointly examined and verified by the head of Human Resources and the head of Financial Services, and approved by the appropriate member of university leadership.

14.2 Payment of remuneration should be made by bank transfer instead of in cash. In exceptional cases where cash payment is necessary, each payee should sign the list of payment in person.

Article 15 Employee overtime/overload remuneration and service fee to non-employees

15.1 Payroll for employees’ overtime/overload should be prepared by the Office of Human Resources, jointly examined and verified by the head of Human Resources and the head of Financial Services, and approved by the appropriate member of university leadership.

15.2 Payment list of service fee to non-employees should be prepared by the functional office in charge of the business and jointly approved by the head of Financial Service. When the amount of the payment is beyond the authorization of head of the functional office, the payment list should be jointly verified by the head of the functional office and the head of Financial Services before approved by the appropriate member of university leadership.

15.3 The payee should sign on the payment list in person, if the payment is made in cash.

Article 16 Student awards and financial aids

16.1 Payment list of student awards and financial aids should be prepared by Office of Student Affairs in conformity with relevant regulations, jointly examined and verified by the head of the Office of Student Affairs and the head of Financial Services, and approved by the appropriate member of university leadership.

16.2 Payment of student awards should be made by bank transfer to the students’ own accounts.

Chapter Five   Recognition and Reimbursement of Expenses in Earmarked Funds

Article 17 Expenses on overseas business trips

17.1 Expenses related to a business trip overseas but incurred within the boarders should be recognized and/or reimbursed in conformity with the rules on expenses of domestic business trips. Relevant state regulations should be followed in recognition and/or reimbursement of the expenses incurred abroad. The Standards and Procedures for Expenses of Temporary Trips Overseas issued and updated by Ministry of Finance of China should be followed if the duration of stay abroad does not exceed 90 days; while the Standards and Procedures for Expenses of Medium-and –Long-Term Training Programs Overseas should be followed if the duration of stay exceeds 90 days.

17.2   Lodging and transportation costs incurred abroad should be recognized and reimbursed against actual invoices/receipts. Per diem rates are adopted for subsidies for meals and business incidentals. Costs of visa, epidemic prevention and international conference registration fees are reimbursed against valid original receipts. Reimbursement of costs described above should follow the standards issued and updated by Ministry of Finance. If the travel expenses are subject to approval of municipal Finance Bureau, recognition and reimbursement should be made within the limit of amount as approved. No other personal expenses are reimbursable.

17.3   Overseas business trips should strictly follow the itinerary as approved. Costs incurred because of a failure to adhere to the itinerary should not be recognized or reimbursed.

17.4   Calculation and recognition of expenses for overseas business trips should be based on the number of days shown on the approval documents issued by local authorities or on the Registration Form of Wenzhou-Kean University for Overseas Business Trip where applicable. Extra expenses incurred by unauthorized extension should not be recognized or reimbursed. Expenses should be recognized and reimbursed in accordance with the actual number of days when the actual stay is shorter then approved. In exceptional cases where an extension is necessary, proper formalities of application and approval should be followed.

17.5 The document issued by local authority approving the overseas business trip, as well as the approval document for purchasing foreign exchange, must be presented in a request for prepayment to purchase foreign exchange.

17.6 When prepayment to an agency for the travel arrangement is requested, the following documents are required: travel approval document from the government, quotation for the flights, agreements on travel arrangement and a written request for payment.

17.7 Documentation requirements for recognition and reimbursement of costs incurred in overseas business travel:

17.7.1 A copy of approval documents for the overseas business trip issued by the provincial or municipal government, or a copy of approval documents for the business trip to Taiwan issued by provincial or municipal Taiwan Affairs Office;

17.7.2 An itinerary of the trip;

17.7.3 The verification and writing-off voucher of foreign exchange issued by municipal Finance Bureau;

17.7.4 A copy of the original hotel invoices

17.7.5 A hard copy of E-ticket for the international flight

17.7.6 An exchange memo and commission documents from the bank (where applicable).

17.8   Expenditures incurred during overseas business trips in foreign currencies should be converted to RMB at the rate shown on exchange memos for recognition and reimbursement, and a middle rate on the day of departure should be adopted in case of absence of the exchange memo.

17.9   Flight for overseas business trips should be booked and directly paid by the University.

Article 18 Expenses of training and professional development

18.1 In recognition and reimbursement of expenses for non-degree further education or training assigned by the university, an invitation or notice of the educational program or other similar document should be submitted, with written approval by the appropriate member of university leadership.

18.2 Lodging costs, meal and incidentals are not reimbursable when an employee pursues a full-time degree program upon approval. A one-off subsidy should be awarded after the degree is earned.

18.3 When an employee takes a short-term non-degree training program abroad upon approval, documentation requirement and expense standards are the same as travel expenses for temporary overseas business trips. Training fees or material costs should be dealt with in conformity with Rules on Short-Term Overseas Training Expenses of Zhejiang Province (Zhe Cai Xing [2014] No.31).

Article 19 Expenses of low-valued durable goods and fixed assets

19.1 Low-value durable goods refers to the items acquired at a unit price of 200 Yuan or higher but lower than the threshold value for definition of fixed assets, and with a life over one year during which the original physical form remains unchanged. Fixed assets refer to the general equipment acquired at a unit price of 1,000 Yuan or higher, or special equipment acquired at a unit price of 1,500 Yuan or higher, with a life over one year, during which the original physical form remains unchanged. Books purchased for library collection should be recognized as fixed assets.

19.2 Low-value durables and fixed assets must go through the procedure of inspection and acceptance after purchased, and the expenses should be recognized and/or reimbursed against the sheet of acceptance and the invoice with proper written approval.

19.3 A contract of purchase should be signed for goods of unit price or batch value of 20,000 Yuan or above. The contract must be attached to the invoice for the purpose of recognition and/or reimbursement of the expense.

Article 20 Expenses of infrastructure projects

20.1 Expenses of infrastructure projects of the campus should be charged against the special fund for campus infrastructure and construction, subject to approval by proper university officials authorized in conformity with the Authorization Rule of Wenzhou-Kean University on Financial Issues. Name list and signature specimens of the authorized officials at all levels should be submitted to Office of Financial Services for record.

20.2 A contract with a specific warranty clause should be signed for sporadic construction projects not charged to the special fund for campus construction. The contract, the budget statement of a project and other documentation as stated on the contract should be submitted for a prepayment request. An invoice, records of inspection and acceptance of the completed project, and a project statement with written approval by the appropriate member of university leadership are required for settlement upon completion of the project. When a contract’s value reaches 50,000 Yuan, a cost audit should be conducted upon completion of the project.

20.3 If a construction project reaches the threshold of government purchase, relevant government regulations and procedures must be followed.

Article 21 Conference expenses

Attendance record of the meeting, an official notice of a meeting and a budget statement of the meeting should be included in the documentation in a claim of recognition and/or reimbursement of the expenses.

Article 22 Other earmarked funds

22.1   Other earmarked funds refer to funds specifically listed on the annual budget besides those described above.

22.2 Required documents for recognition and/or reimbursement include original invoices, a written approval by the appropriate university officials, a contract (if applicable), and other evidence necessary to approve the authenticity and validity of the transaction.

Chapter Six Procedures for Refund and Suspense Payment

Article 23 Refund

23.1 Refund of tuition and fees to students should be processed upon submission of an application of suspension or withdrawal, which should be approved by the registrar’s office, and statement of accounts with regard to relevant expenses.

23.2 Refund of a guarantee deposits or a warranty deposit should paid upon submission of the original receipt of the deposit or, when the original receipts of deposit are not available, an official receipt of the refund by the party receiving the refund with a detailed description of the refund . Refund should be paid by means of bank transfer if the deposit was so paid.

Article 24 Advance payment

24.1  Applicant for an advance payment must be an employee.

24.2   When purchasing goods or service under the threshold of bank transfer as defined in this policy, employees make request an advance payment in cash. When the goods or service to be purchased is of a value reaching the threshold, advance payment must be made directly to the vendor via bank transfer. When the advance is paid to an individual, it should be paid only to the applicant him/herself.

24.3 When applying for an advance payment offline, the applicants should fill out form D (Wenzhou-Kean University Advance Payment Voucher). When applying for an advance payment online, the applicants should use “Advance to Employee” model or “Prepayment to Vendor” model. The applicants also should attach documents that can prove authenticity of the purchase, and obtain written approval by an appropriate authorized university official.

24.4 The source of fund must be specified when an employee requests an advance payment. Generally, an advance payment request for an expense not specifically listed on the annual budget should not be approved

24.5 Advances on infrastructure project such as engineering charge, architectural design fee, and supervision fee etc., should be processed upon submission of contracts and other documentation as stated in the contract. First payment of the advances should be made upon documentation including a copy of the contract (complete and valid), bidding documents, bid-winning notices for construction and supervision and the order to commence.

24.6   Advance payment should be written off timely. Advances must be used exclusively for the designed purposes; diverting advanced money for other business or private use is forbidden.

Chapter Seven Methods of Settlement

Article 25 Settlement can be conducted in two forms, namely cash settlement and bank transfer. Settlement by cash check is regarded the same as by cash settlement. Bank transfer refers to payments by telegraphic transfer, mail transfer, check only for transfer, or POS.

Article 26 Bank transfer should be adopted except for the following items:

26.1   Salaries, benefits and allowances to employees

26.2 Payments to individuals for service, such as teachers’ remuneration, service fee, author’s remuneration, and remuneration to non-employees etc.;

26.3 Awards to individuals for achievements in science and technology, culture, arts and sports, and scholarships, work-study remuneration and financial aids to students;

26.4 Subsidy for labor protection and welfare payable to individuals in conformity with relevant laws and regulations;

26.5 Payment for purchase of agricultural products and other materials from individuals;

26.6 Payment for a single transaction under the value of 2000 Yuan (vouchers with consecutive serial numbers issued by the same unit on the same day should be regarded as a voucher for a single transaction);

26.7 Prepayment of necessary business travel expenses;

26.8 Other transactions that need to be settled in cash according to regulations issued by People’s Bank of China.

Article 27 Accurate information of bank account of the payee should be provided when bank transfer is to be adopted.

Article 28 Threshold of settlement by bank transfer is the amount of 2,000 Yuan. Generally, purchase of goods or service of a value reaching the threshold must be settled by transferring directly from the University’s bank account to the vendor’s bank account. In exceptional cases where the value of a transaction is under 5,000 Yuan and direct bank transfer is impossible or extremely difficult, employees may pay online with personal accounts, or pay by POS settlement, and then request a reimbursement by submitting invoices and documents that can prove the authenticity of the transaction, such as bank statements or POS receipts. POS receipts that are printed on light-sensitive or heat-sensitive papers should be photocopied to A4 paper. In exceptional cases where online payment is the only available way of settlement for online resources of a value over 5,000 Yuan, reimbursement may be made against written approval by the appropriate member of the university leadership, submitted along with invoices and band statements.

Article 29 Valid period of a check is ten days after issuance, during which the checks must be presented to the bank for settlement. Checks must be well kept. When an issued check is lost, please report the loss to the bank immediately and notify the Office of Financial Services in a timely manner to avoid possible financial loss.

Chapter Eight   Miscellaneous

Article 30 This Policy takes effect upon issuance. Office of Financial Services is responsible for the interpretation of this policy.

Attachment: Interim Policy of Wenzhou-Kean University on (Modified in 2016)