UM System Changes in travel policies
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The document summarizes changes to the University of Missouri-St. Louis' travel policies effective July 1, 2011. Key changes include reimbursing travelers per diem for meals regardless of actual costs, no longer requiring a cost analysis for flying vs driving, and units not being able to implement more restrictive travel requirements. The policies outline allowable expenses, documentation requirements, and reimbursement procedures for travel expenses incurred on behalf of the University.
UM System Changes in travel policies
- 1. Travel Policies BPM ‐ Section 500 Changes Effective July 1, 2011 a ges ffec e Ju y , 0 University of Missouri – St. Louis 1 Learning Objectives » Overview of benefits of policy changes and electronic T&E system. electronic T&E system » Highlight of significant policy changes » Overview of University travel policies » Discuss application and compliance » Discuss examples of common scenarios Discuss examples of common scenarios 2
- 2. Benefits of Changes » Faster reimbursement to traveler » Reduced preparation time for traveler Reduced preparation time for traveler » Increased efficiency » Increased accountability and transparency » Consistent application of travel policies 3 Highlight ‐ Changes to Travel Policies Current Policy Revised Policy Reimbursement f R i b t for actual expenditure up to t l dit t Reimbursed per diem, regardless of actual R i b d di dl f t l the limit for the individual meal expenditure Cost analysis of fly vs. drive required No longer required Units may establish their own lower limits, Units may not implement more restrictive additional requirements, or more restrictive requirements unless required by an outside policies before the trip entity Administrative Superior approves expense Grants approver, if applicable, and Fiscal reimbursement Approver review for completeness, allowability, and funding appropriateness 4
- 3. Highlight ‐ Changes to Travel Policies Current Policy Revised Policy For overnight travel, specific limits for For overnight travel, $42 per diem based breakfast, lunch, and dinner breakfast lunch and dinner on duration of travel on duration of travel Travel Duration Percentage Amount Less than 8 hours 0% $0 8 hours or less than 12 hours 50% $21 12 hours or more 100% $42 5 University Travel Policies – BPM Series » 501 ‐ Authorization of Travel * » 502 ‐ Travel Service Contracts 502 Travel Service Contracts » 503 ‐ University Travel Cards » 504 ‐ Methods of Transportation and Allowances* » 505 ‐ Allowable Expenses* » 506 ‐ Cash Advances 506 C h Ad » 507 ‐ Car Rental Service 6
- 4. Individual Roles in Travel Process Administrative Superior Authorizes travel Authorizes travel Traveler/Delegate Submits reimbursement per policies Grants Approver ‐ PI/Delegate Reviews for compliance with relevant policies, allowability, completeness, and funding Fiscal Approver/Delegate Reviews for compliance with relevant policies, completeness, and funding 7 General Rules for Travel Expenses » Authorized by Administrative Superior » Reimbursable with no impact on taxable Reimbursable with no impact on taxable compensation if: › Incurred while performing services for the University › Expenses accounted for within 60 days of end of trip › Excess reimbursement returned within 120 days after expense is paid or incurred 8
- 5. Documentation Requirements » Receipts for all expenses $75 or more – should include: › Date › Amount › Place › Business purpose › Other information to support reasonableness » Lodging receipts required regardless of amount 9 Reimbursement by Outside Entity » Seek other entity reimbursement first: › University’s reimbursement will not be taxable if University s reimbursement will not be taxable if documentation shows: › Request to other entity made within 60 days of end of trip › Subsequent request to University for its portion is made within 60 days of date the balance due from the University is known 10
- 6. Reimbursement in Advance of Travel » Adequate documentation must be provided showing the expense has been incurred showing the expense has been incurred › Example: Hotel confirmation via email » Traveler’s department is responsible to: › Verify travel actually takes place › Obtain refunds if necessary › Apply to future travel if possible 11 Lodging » Amount should be reasonable and necessary » Reimbursement can not exceed total if a room is Reimbursement can not exceed total if a room is shared » Documentation must include: › Detailed itemized statement furnished by hotel ‐ regardless of amount › Credit card summary statement is not acceptable 12
- 7. Meal Allowance – Domestic Overnight Travel » Overnight stay required » Per diem is $42 Per diem is $42 » No documentation required » Determined by number of hours in travel status Travel Duration Percentage Amount Less than 8 hours h h 0% $0 $ 8 hours or less than 12 hours 50% $21 12 hours or more 100% $42 13 Meal Allowance – Domestic Travel » Reduce per diem if: ›Meals included in conference registration ›Meals included in conference registration ›Paid by another person or entity ›Directly paid by University ›Example: University sponsors a table at a dinner event 14
- 8. Meal Allowance – Foreign Travel »Travel outside of 50 states and District of Columbia »Per diem amount determined from US Department »Per diem amount determined from US Department of Defense Web Site: www.defensetravel.dod.mil/site/perdiemCalc.cfm 15 Meal Allowance – Foreign Travel 16
- 9. Business Meals » Reimbursable if part of a meeting or activity to discuss University business discuss University business › Includes other individuals » Documentation should include: › Names or titles of individuals attending › Relationship to the University › Explanation of the business purpose » Cost should be reasonable 17 Meals – Employee’s Work Day Extended » Overnight travel does not occur » Travel causes employee to work in excess of Travel causes employee to work in excess of normal schedule » Reimbursement for meal allowed as part of the extended work day » Not a regular occurrence Not a regular occurrence » Discretion of department 18
- 10. Example – Employee’s Work Day Extended » Normal workday – 8:00 a.m. to 5:00 p.m. » Day is extended – 7:00 a.m. to 8:00 p.m. Day is extended 7:00 a m to 8:00 p m » Neither breakfast nor lunch reimbursed » End of day meal could be reimbursed › At $21 ‐ 50% of per diem › No receipt required No receipt required 19 Transportation – Mileage Reimbursement » Based on approved map mileage of most efficient route › Include parking and tolls › Current rate is $.48 per mile › See Controller’s web site for mileage rate › Drive vs. fly comparison not required 20
- 11. Transportation – Personal Vehicle Use » Method that best meets needs of traveler and University should be selected University should be selected » Consider use of rental car » If personal vehicle used: › University not responsible for physical damage › University’s liability coverage supplemental to U e s y s ab y co e age supp e e a o traveler’s coverage 21 Other Allowable Expenses » If required for University business: › Telephone/internet connections Telephone/internet connections › Long distance calls › Office supplies › Registration or other meeting expenses › Miscellaneous transportation and expenses 22
- 12. Unallowable Expenses » Not essential for University business: › Hotel gym fees Hotel gym fees › Mini‐bars › Movies › Laundry › Vehicle fines 23 Travel – Gift or Grant Funding » Must be in compliance with terms and conditions and University policy University policy › Grant – Travel must be allowable on grant › Gift – In accordance with donor restrictions » Document exceptions on expense report » Amounts $75 or more require a receipt $ q p 24
- 13. Requesting Reimbursement » Travelers can not approve their own expense reimbursement » Traveler attests to the appropriateness of expenses in accordance with University policies » Fiscal Approver verifies and approves 25 Delayed Reporting of Expenses » If more than 60 days after end of the trip: › Document reason for the delay Document reason for the delay › Reimbursement subject to availability of funds › Discretion of responsible department to fund reimbursement › If reimbursement is made, added to the employee’s taxable compensation bl i 26
- 14. Travel Allowances » Departments may limit reimbursement for a trip to a total maximum amount determined prior to to a total maximum amount determined prior to travel » Individual components accounted for per University policies » Reduce overall reimbursement for the trip p maximum by an “Expense adjustment” 27 Travel for Non‐Employees » Allowed when travel is: › Necessary › Benefits the University › In accordance with University policies » Processed by non‐PO voucher – not Travel and Expense system 28
- 15. Concluding Points » Reimbursement approved by Fiscal Approver › Grants Approver reviews for allowability funding Grants Approver reviews for allowability, funding » For overnight travel, $42 per diem based on duration of travel » Receipts required for all expenses $75 or more › Lodging receipt required regardless of amount odg g ece p equ ed ega d ess o a ou 29 Additional Information and Contacts » BPM – Section 500 – Travel Policies » Controller’s website Controller s website » http://umsystem.edu/media/fa/controller/MileageReimburse.doc » Ernie Cornford, Director of Finance › 314.516.5092 » Randy Vogan, Assistant Director of Finance › 314.516.5478 30