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Travel Guidelines and Procedures

Travel Guidelines and Procedures

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Travel Guidelines and Procedures

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  1. Travel Guidelines and Procedures September 23, 2011

  2. AGENDA • Introduce new travel guidelines • Discuss differences between old vs. new guidelines • Review the new travel claim form • Taxability of international travel with personal use • Responsibilities of traveler and approver • Unique travel • Summary

  3. NEW TRAVEL GUIDELINES • Effective immediately, the Cal Poly Corporation (Corporation) will implement new travel guidelines which were developed following a review of University and the Chancellors Office policies • The new Corporation guidelines typically mirror the new University policies; differences between the two will be discussed later in the presentation • Forms and other documents have been consolidated with the University to make completion easier

  4. SIGNIFICANT REVISIONS The new Corporation travel guidelines make significant revisions in the following areas: • Approval for travel • Reimbursement for fuel • Meal reimbursement rates and documents needed for substantiation • Reimbursement for “extended day trips” • International vs. domestic travel per diems • Potential tax consequences of personal travel

  5. APPROVAL AND REIMBURSEMENT FOR FUEL • All Travel must be pre-approved • State Form 1-A • Corporation/Foundation Travel Request Form • CSU Internal Audit Finding July 2011 • Travel claims for fuel instead of mileage will be rejected • California Department of Industrial Relations states: • “employer shall reimburse the employee the amount that fully compensates each employee for what the employee has necessarily expended in the performance of work for the employer is required to be reimbursed”

  6. REIMBURSEMENT OF MEALS MEALS • New Corporation guidelines mirror the State and allow traveler to claim actual meal expenses up to $55 per day • Meals do not need to be substantiated by a receipt unless the individual meal is $25 or more Example: If a traveler spent $10/$15/$20 on breakfast/ lunch/dinner, then the Travel Claim should only be for $45 in meals for the day, not $55 • There is no “per meal” limitation so long as the total is not over $55 for the day

  7. REIMBURSEMENT OF MEALS (cont.) • Meals for a partial day of travel are consistent with the University and pro-rated as follows: • If you leave prior to 7 AM then you can claim up to $55.00 in meals expenses incurred • If you leave prior to 12 PM then you can claim up to two thirds of the $55.00 maximum reimbursement, and • If you leave prior to 6 PM then you can claim up to one third of the $55.00 maximum reimbursement • If you return after 9:00 a.m. then you can claim up to one third of the $55.00 maximum reimbursement • If you return after 2:00 p.m. then you can claim up to two thirds of the $55.00 maximum reimbursement, and • If you return after 6:00 p.m. then you can claim up to $55.00 in meals expenses incurred • Reimbursement for meals and incidentals for “extended day trips”, e.g., trips less than 24 hours and over 300 miles in length, is not allowed. If an overnight stay, reimbursements are okay.

  8. LODGING and INCIDENTALS LODGING • Actual lodging expenses may be claimed • Expenses claimed should be reasonable • Receipts are always required (copy of credit card statement is not sufficient) INCIDENTALS • New Guidelines increase the daily incidental rate to $7 (after the first day of travel) • Incidentals may include tips to baggage carriers, maids, valets, etc. • Receipts are not required for reimbursement

  9. CAR RENTAL • Travelers should use the Enterprise contract for all Corporation and Foundation Travel • Enterprise Number is DH30H28 • Link on Corporation website and is: • • Please include copy of Enterprise contract with Travel Claim • Rentals are typically less expensive if picked up on Broad or Los Osos Valley Road (airport fees) • Can do one way drops within California with no fees

  10. INTERNATIONAL vs. DOMESTIC PER DIEMS • Unlike Domestic travel, meals and incidental expenses for International travel are reimbursed based on published federal government per diems for the specific travel location; no receipts are required • Lodging expenses for international travel are reimbursed based on actual expenses, up to the federal government per diem allowed, and must be supported by a receipt • The Federal government per diems can be found at the following link: •

  11. NEW TRAVEL CLAIM FORM • The same form is to be used for all travel (State, Corporation, or Foundation) • Form (Form 262) can be found on the Cal Poly website • • Form is also on the Corporation website • • Form has several tabs which help the user in the completion of the Form

  12. New Travel Claim FormApproval/Rates/Total Cost Section

  13. Taxability of International Travel with Personal Use • Depending on the amount of personal travel days that are combined with Cal Poly related travel, some travel costs could be subject to income tax • The Corporation has adopted IRS standards to determine when and if the combination of personal and business travel creates a taxable event for the traveler • Foreign travel of more than a week that contains a personal component is taxable if the personal travel is more than 25% of the trip • There were two travel claims submitted this summer that had taxable travel

  14. Taxability of International Travel with Personal Use (cont.) • The determination of what constitutes a personal vs. business day is between the traveler and approver. • As a general rule, any travel days that the employee records as accrued leave time, such as vacation, would be considered a personal day. • Example: • An employee travels to Australia for 15 days, of which 5 days are business related and 10 days are personal; 1/3 of the trip is business and 2/3’s is personal. • Since the trip was longer than one week and at least 25% personal, the employee must be taxed on 2/3’s of the airfare, which is considered personal use under IRS regulations (personal component: 10 days/15 days = 2/3’s)

  15. In this example, 2/3’s of the $1642 airfare ($1095) is taxable

  16. Traveler Responsibility • The person due the reimbursement for travel costs incurred is responsible for: • Submitting travel claims within 10 days from the return of the trip. • Providing business purpose and dates of each trip. • Certifying he/she: • Received pre-authorization to travel (i.e. complete a State 1A Form or Corporation Travel Request Form) • Traveled on official business • Actually spent the amount for listed expenses • Has verified the amount due is accurate • Has not and will not seek reimbursement for 1) a duplicate claim or 2) from any other source • Attach to the Travel Expense Claim a reimbursement to the Corporation for any funds advanced in excess of the amounts claimed

  17. Approving Authority Responsibility • The approving authority is responsible for: • Ensuring expenses charged to his/her accounts are supported by sufficient funds and ensuring appropriateness of use of funds • Ensuring expenses requested are reasonable and supported by a business purpose or justification • Validating, to the extent possible, that the expenses listed were actually incurred by the employee and that appropriate supporting documentation is attached • Reviewing and approving the business purpose and ensuring the request is in compliance with any applicable sponsored project/grant requirements • Approving/denying payment of the travel claim in a timely manner. • Denying expenses not directly related to official University, Corporation, or Foundation business

  18. UNIQUE TRAVEL • Use of a car instead of flying is only allowed where less costly than the flight/rental car, or unless PRIOR permission from the respective Dean, Vice President, Executive Director or their designee • CPC staff and University faculty/staff should not pay for the travel of students and expect reimbursement from the students • If travel expenses are to be reimbursed by a sponsored program (grant/contract), any restrictions contained in that agreement or the Grantor’s policies supersede these Guidelines

  19. UNIQUE TRAVEL (cont.) • Travel “packages" from Internet vendors typically do not itemize expenses. Therefore, business-related travel should not be booked through such vendors unless the Traveler has confirmed that each aspect of the package will be separately itemized • Prepaid fuel service options from rental car agencies should be declined; gas should not be purchased from the rental car agency; GPS or other services will not be reimbursed • International travel to areas on the State Department’s Travel Warning list requires prior written approval from the Chancellor or appropriate designee • Travel that includes “Hosting” needs to specify who attended the “Hosted” event • Travelers to foreign destinations should review the on-line export control training at

  20. Question You are traveling abroad to Germany as part of a Grant activity. Since it is not an embargoed country there are no restrictions on your travel. True False

  21. GENERAL TRAVEL NOTES • All travel must be pre-authorized by completing a State travel 1-A form or a Corporation Travel Request Form • More than one travel advance outstanding is generally not allowed • Travel claims are due in the Travel office no later than 10 days after returning from a trip • Receipts must be itemized, a credit card summary receipt is not sufficient • Demonstrates the cost (shows an itemized list of what was purchased), • Provides proof of payment (shows how was it paid) ), and • Includes the date of purchase • Travelers should always strive to use the most affordable means of travel

  22. SUMMARY • Corporation guidelines are substantially similar to University policies • Travel must be pre-approved • Same claim form for all travel • Same reimbursements for meals, lodging and incidentals • Corporation will not reimburse for fuel only travel • Corporation requires proof of payment and receipt if expenditure is $25 or more • We want to continue to improve our service, tell us what we can do better • Direct deposit travel reimbursements are available

  23. THANK YOU FOR ATTENDING! • Contact information • Carla Brewer • • Extension – 61192 • Grant Trexler • • Extension – 61141 • Sponsored Programs • • Extension - 61123