The T&E, audit and tax glossary

Most looked up

• Accountable plan

  A reimbursement arrangement that meets IRC § 62(c) and Treas. Reg. § 1.62-2: expenses must have a business connection, be substantiated within a reasonable period, and any excess advance must be returned within a reasonable period. Reimbursements under an accountable plan are excluded from the employee's wages.

• Folio

  The itemized hotel bill issued at checkout. A folio lists the nightly room rate, taxes, resort or destination fees, in-room dining, minibar, parking, spa, laundry and other incidentals as separate lines, which is why auditing the folio rather than the card total matters.

• Split transaction

  Breaking one purchase into two or more smaller charges or claims so each stays below an approval or receipt threshold. Splits show up as same-merchant charges close together in time whose sum crosses the limit.

• FAR 31.205-46

  The Federal Acquisition Regulation cost principle for travel. It limits allowable lodging, meals and incidentals to the applicable federal per diem rates and treats airfare above the lowest customary standard, coach or equivalent fare as unallowable unless a documented exception applies.