Money Handling

Steps for Handling Money

  1. Create a budget using the budget template. This will be used to set the “Study Abroad Fee” attached to the course.
  2. Determine any extra expenses that students might be responsible for during the trip, NOT included in the Study Abroad Fee, such as meals, optional excursions, etc.
  3. Education Abroad will work with your departmental administrative associate and Business Services accountants to create an index code for the program, if one does not yet exist.
  4. Work with Education Abroad to set a price for the non-refundable deposits and establish payment deadlines. Consider when you may need to make pre-payments to outside vendors, etc. The refundable portion of the Study Abroad Fee may be refunded to the student should they drop the course or withdraw from UM. Students will need the approval of the Education Abroad Director to drop the study abroad course and/or withdraw from the program. 
  5. Set a deadline by which students must pay and finalize their semester tuition bill. This action will release the funds to the departmental index code.
  6. Meet with Education Abroad Director and Business Services for advise on how to pay for all program expenses (e.g., vendors, per diem, travel advance, cash paid out, procard, receipt requirements). More details below.
  7. Submit all receipts and paperwork to Business Services upon return.

Timeline for Processing

All paperwork related to paying for expenses should be completed and submitted at least 3 weeks prior to the date by which you want vendors paid, cash paid-outs, etc.

However, if you are paying vendors through the Contracted Services process, then we recommend beginning the paperwork process at least 2 months in advance. 

Using a Procard

Make sure you have a UM procard in your name. If you do not, please work with your departmental administrative associate to apply for one.

Before you use your procard, call the number on the back to inform the bank of your travel dates and destinations.

Whenever possible, use your procard to pay for expenses. You need to use your procard when purchasing airline tickets and when paying for lodging and local transportation, if possible. Make sure to keep copies of itemized receipts and write the currency conversion on the receipt.

Note: You can take pictures of the receipts if you don’t want to keep track of paper.

Procards can also be used to pay for meeting meals if you receive approval in advance from your chair, dean, and Business Services. This is done on a case-by-case basis. An additional agreement will need to be signed and a Meeting Approval Form will need to be submitted for each charge. 

Paying Foreign Vendors

Wire Transfer

Foreign vendors need to be paid using a wire transfer. Please note that there is a wire transfer fee of $13 per wire. It is extremely important that the Wire Transfer form has the exact spelling, punctuation, and spacing for the account the money is being wired into, otherwise, the wire transfer may fail. 

If for any reason the wire transfer cannot be made, then it is possible for the money to be given to the faculty member as part of the cash paid out process (see below), and then the faculty member can pay the vendor in person.

Note: some vendors in foreign countries are actually based in the U.S. and therefore a wire transfer is not required. 

Non-PO Payment

Some foreign vendors are not equipped to handle U.S. legal contracts, due to language barriers or lack of knowledge related to U.S. laws. In these cases, you should process vendor payments as Non-PO Payments. This is done through GrizMart. 

Tips: 

  • Select “non-employee reimbursement.” 
  • A W8-BEN form (found on the IRS website) and a wire transfer form (linked above) must be uploaded along with the invoice (in U.S. currency).
  • Under 'Comments,' please note that it will be paid as a wire transfer.

Contract Services Payment

The Contracted Services process should be used to process vendor payment with vendors who are equipped to handle U.S. legal contracts. Contract services processes need to be used when a vendor is providing a service other than travel-related services, such as lodging, language instruction, or translation.

The following documents are needed from the vendor as part of the contract services process:

  • W8BEN
  • Wire transfer form
  • Certificate of Liability Insurance
  • Invoice in U.S. Dollars

The Contract Services process should be started two months before the invoice is due.

Steps:

  1. Complete the Contract Service form through GrizMart for either under $5,000 or over $5,000. Include the above attachments. Remember, it's important to explain the scope of work.
  2. Schedule a procurement review to ensure everything is in order.
  3. Upon a successful review, send the contract to the vendor.
  4.  The vendor will sign the contract and send it back to UM.
  5. Business Services then creates a PO.
  6. Send the invoice to Accounts Payable for payment. Write the purchase order number on the invoice and email it to montana.invoices@edmgroup.com for Payment.

Note: Due to currency fluctuations, it is highly recommended that contracts be in U.S. dollars. This protects both the vendors and the program leaders. 

Request for Travel Authorization (RAT) and Travel Expense Report (TER)

The faculty director and any employees traveling with the program must complete a RATTER. A Travel Advance can be requested through the RAT process and can only cover items related to travel, such as meal per diem, lodging, baggage fees, taxis, etc.

These expenses can also be advanced to you in cash through the Cash Paid Out process (see below). 

Group Travel

If more than four people are traveling at the same time, using the same mode of transportation, traveling to the same destination, and staying in the same accommodations, then a Group Travel Notification Form should be submitted with their travel paperwork.

If any of the travelers have any deviation from that travel plan, then it cannot be considered group travel. In cases of group travel, one person will be designated as the primary traveler, and the primary traveler is responsible for expenses, per diem, and reimbursements.

Cash Paid Out

The Cash Paid Out process is the most logical way for you to receive a cash advance for program expenses that you can't pay for using a procard, or for vendors you can’t pay prior to departure (see procard and paying foreign vendor sections).

Start by determining the total amount, and complete the Cash Paid Out form. You will be given a check for this total and will be required to keep receipts for all expenditures (see receipt requirements section). 

We recommend that you open a separate checking account with your bank (or a bank with working ATMs in the foreign country) and deposit this cash in the new account. This will make tracking expenses easier. It will also be easier to show Business Services your bank statement, which may include foreign transaction fees or ATM fees, without any personal banking information tied to it. Make sure you know your daily limit for ATM withdrawals.

If you are bringing large amounts of cash into the foreign country, research how much cash you are allowed to bring. Rules for cash entry can be found on the embassies’ websites. 

Meals Per Diem

Based on State of Montana policy, the following are the foreign meals per diem rates:

  • Breakfast - $7
  • Lunch - $11
  • Dinner - $18
  • Total Daily - $36

Faculty can receive a travel advance based on the above amount for all participants in the program. If meals exceed the rate and you want reimbursement for the extra costs, itemized receipts must be submitted upon return. You will only be reimbursed up to the daily maximum established by the U.S. State Department, for that specific area.

We recommend that you use the Foreign Meal Worksheet to track meal per diem expenses that are over the allotted State of Montana foreign meal per diem. You do not need to keep receipts or track meals if you do not want to be reimbursed for costs over those amounts.

This is a very challenging process and we recommend that you do not use this process for group meals. It is better to include group meals in the Cash Paid Out request. 

Receipt Requirements

All expenses need to be documented. 

Tips for tracking expenses:

  • Use a travel log to track expenses. See the Travel Expense Log template. You will still need receipts, but this may help you organize your expenses.
  • Take pictures of the receipts using your cell phone so you don’t need to keep track of physical copies. Print them when you get home and write the U.S. dollar equivalent.
  • Bring a generic receipt book with you when you travel, for times when vendors can’t provide receipts. In countries where it may be difficult to get an itemized receipt for meals, please use the receipt book to create a receipt that includes the total amount, the number of people served, a comment that no alcohol was included, and the server’s signature.
  • When you need to give students cash to pay for expenses, create a signature document that they sign acknowledging that they received the cash. See Cash Receipt Log template. 

Emergency Cash

If unforeseen circumstances arise and you are in need of cash you can't access, it is possible for UM’s Business Services Office to wire money to your location. Western Union is often the easiest option.

In these situations, contact Education Abroad. 

Alcohol Use Form

We understand that in some cultures it might be culturally appropriate for alcohol to be consumed at events. If you expect to be involved in such events, we highly encourage you to complete an Alcohol Use form and have it approved before you leave.

You should indicate the start and end dates of the program, so one form covers the entire trip. 

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