Faculty Handbook

Finances abroad

Program leaders designated as Chief-of-Party for a study abroad program are responsible for developing and finalizing the program budget, for maintaining fiscal records and academic integrity of the courses, for coordinating class activities, and for responding to any emergency situations which may arise.  (See Emergencies for more information about responding to emergencies.)

Record Class Activities charges by itemizing expenses and collecting receipts for audit purposes. All expenditures (except emergencies) must follow the original approved and finalized budget. Amy Moeder or Cindy Chalou must approve any deviations.

NOTE: The budgeting of class activities funds should be mutually agreed upon by all MSU faculty assigned to the program.

It is not appropriate to discuss the budget in detail with student participants.

In order to avoid loss or theft, do not carry large amounts of money with you.  You should also bear in mind that it is illegal to enter most countries with $10,000 or the equivalent in “financial instruments,” without declaring the money - and declaring the money in some countries may incur difficult or even unpleasant consequences.  Again, the solution to the problem is to have invoices for program-related expenses sent to Sean Curry prior to the program departure so that OSA, rather than you, ends up paying for the charges.
 
Do not deposit funds into your U.S. account and carry a check abroad from your local bank. Even though it may be made payable to a particular vendor, you will have to wait for the check to be cleared by the U.S. bank. This process can take several weeks, leaving you with virtually no access to cash for your program.  And even if you have a bank account abroad, do not assume transactions will be automatic.  It is very difficult for OSA to assist you if you have not handled your advance funds appropriately.
 
Most program leaders utilize ATMs on site.  ATMs can provide ready access to local currency and are drawn from your own account. For instance, machines displaying the Cirrus symbol are compatible with an MSU Credit Union ATM card. Since daily withdrawals are usually limited and you may need to withdraw large program sums on a daily basis, you may wish to ask your home bank to increase your daily withdrawal limit.  This increased limit may only be accessible during US banking hours – check so you won’t be stranded over the weekend! Also check with your own bank as to service charges and accessibility.  Many program leaders also use debit cards. If you intend to use a VISA Checkcard to access your U.S. account, notify your bank that you will be traveling abroad. Credit cards are a convenient way to cover expenses, and will usually net the most favorable exchange rates.   The OSA MasterCard can be used for any program-related expense.  It cannot be used for individual travel costs for program leaders.  You can also obtain an MSU Corporate MasterCard from the Travel Office, 370 Administrative Bldg., 353-4882. Please note that the corporate credit card has a $500 limit on retail purchases that includes car rentals. If you think you will need more than the $500 limit, you should request an increase on the retail limit from the MSU Travel Office. This limit does not apply to hotel and restaurant expenditures.  The maximum credit limit on the corporate card is $15,000.

It is advisable to carry your funds in a variety of forms (ATM, credit cards and local currency).  In some countries, particularly developing nations, U.S. dollars (cash) may be the most readily acceptable form of payment; however theft becomes a greater risk. Traveler's checks are inconvenient and no longer used by most program leaders.   However, you can order Euro traveler’s checks online through American Express.

If you are leading a long-term program, you may wish to open your own account with a bank abroad. This can be accomplished in a variety of forms (e.g., wiring program funds ahead, obtaining a cash advance on a credit card upon arrival and depositing those funds, etc.). If you write the bank ahead, you may be able to get a check-guarantee card, which will encourage businesses to honor your local checks. Some program leaders have found it helpful to carry a letter of reference from their local U.S. bank.  Ensure in advance that funds will be available when needed and not delayed due to international processing. If you are an authorized signer on an account maintained or held in another country, the IRS and U.S. Treasury require that you report such signing authority when completing your tax forms.

If there are surplus funds in any part of the program fee portion of the budget, including class trips and activities, this money cannot be refunded as cash to the students.  A surplus in the program fee cannot be used to purchase equipment of any kind.  A surplus may only be used to fund additional or unplanned educational activities.  Such activities include theater performances, museum entrance fees, and class-related visits.  Receipts/ticket stubs must be obtained for these additional activities.  If additional class trips require that students pay for their own entrance fees/tickets, they must submit receipts to the program leader, accounting for the disbursement of funds.  Once the students document their expenditures with receipts, reimburse them for that amount and have them sign a statement that they received that amount.  You no longer have to retain the individual receipts.  With the exception of two group meals, usually purchased at the beginning on-site (orientation) and end of a program, surplus funds cannot be used for meals or non-educational purposes.  Surplus program fees returned to OSA are used to fund scholarships.

DO NOT loan students program or personal funds unless it is an extreme emergency.  Despite all the advice and pre-departure preparation, some students will find themselves short of funds.  Some possible solutions could be:  have the family deposit funds into the home account so the student can access the funds through an ATM; have the family send a foreign draft by express mail; send a bank wire or transfer; or send a transfer through American Express or Western Union.  This latter option is quite costly. 

Loans should be avoided, but in cases of extreme emergency a loan for a maximum amount of US $100.00 can be authorized. Students must sign a form (see Appendix) or a similar statement stating responsibility for the loan and the timeline for payment. Only one loan per student will be granted during the period of the program and should be repaid before the student returns.  Payment of this loan will be included in your travel expense reconciliation; if you are unable to collect these funds from the student, notify the Office of Study Abroad as soon as possible so a charge can be applied to the student’s account. 
 
Various private companies can help replenish funds when bad planning or theft leaves a student or program leader penniless.  Most credit card companies provide legal, medical and financial services around the world 24 hours per day, including emergency cash advances and card replacement (often within hours).
 
Money can also be shuttled from a bank in the U.S. to its branch in a foreign city, if it has one.  Banks, however, are notorious for keeping bankers’ hours.  One after-hours option is Moneygram (1-800-542-3590), a for-profit money transfer service with 23,000 agents in 103 countries; the service charges $40 to send $500 anywhere (more for larger amounts).
 
Using the local AMEX office, you can receive funds in about a day, but high fees may apply. 

If all else fails, turn to the Bureau of Consular Affairs.  After an investigation determines that an American is genuinely stranded, a consular official will seek a friend or relative of the traveler to help.  If no one can be found, an official may advance money, but a “limitation” will be put on the individual’s passport, signifying that it is to expire when he or she reaches home and cannot be renewed until the loan is repaid.