BFB-G-28 Travel Regulations

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Travel Regulations

Contact:

John Barrett

Title:

Tax Manager

Email:

John.Barrett@ucop.edu

Phone:

(510) 987-0903

TABLE OF CONTENTS

I. POLICY SUMMARY ............................................................................................... 2

II. DEFINITIONS ......................................................................................................... 2

III. POLICY TEXT ......................................................................................................... 3

IV. COMPLIANCE/RESPONSIBILITIES ...................................................................... 6

V. PROCEDURES ....................................................................................................... 8

VI. RELATED INFORMATION ................................................................................... 42

VII. FREQUENTLY ASKED QUESTIONS .................................................................. 44

VIII. REVISION HISTORY ............................................................................................ 47

IX. APPENDIX ............................................................................................................ 48

Responsible Officer:

EVP - Chief Financial Officer

Responsible Office:

FA - Financial Accounting

Issuance Date:

7/15/2019

Effective Date:

7/1/2019

Last Review Date:

1/31/2019

Scope:

• Staff and academic employees of the University.

• Non-employees, including students, visiting scholars,

prospective employees and independent contractors.

• This policy does not apply to travel associated with

work done within the scope of the UC/DOE contract

for the management and operations of the Lawrence

Berkeley National Laboratory (LBNL). Travel not within

the scope of the LBNL contract is covered by the

provisions of G-28.

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I. POLICY SUMMARY

It is the policy of the University to comply with IRS regulations regarding the provision

and reimbursement of business-related travel, and to conform to the IRS “accountable

plan” rules.

II. DEFINITIONS

Business Purpose:

The business purpose of a University traveler may include activities

that contribute to any one of the University’s major functions of teaching, research,

patient care, or public service, or to any other substantial and bona fide University

business activity.

Campus:

The campus, Laboratory, UCOP, Agriculture and Natural Resources, or other

official University location under the jurisdiction of a Chancellor, as defined below.

Chancellor:

The chief executive officer of the campus. For purposes of this Bulletin, the

authorities and responsibilities assigned to the Chancellor are also assigned to the

Lawrence Berkeley National Laboratory (LBNL) Director, the Executive Vice President—

Chief Operating Officer, the Vice President--Agriculture and Natural Resources, and the

Principal Officers of The Regents, for employees under their respective jurisdictions.

Authority delegated to the Chancellor also may be delegated to other individuals.

Domestic Partner:

A domestic partner means the individual designated as an

employee's domestic partner under one of the following methods: (i) registration of the

partnership with the State of California; (ii) establishment of a same-sex legal union,

other than marriage, formed in another jurisdiction that is substantially equivalent to a

State of California-registered domestic partnership; or (iii) filing of a Declaration of

Domestic Partnership form with the University. See PPSM 2 for additional information.

Headquarters:

The place where the major portion of the traveler's working time is spent

or the place to which the employee returns during working hours upon completion of

special outside assignments.

Lodging:

Expenses for overnight sleeping facilities. This does not include

accommodations on airplanes, trains, buses, or ships, which are included in the cost of

transportation.

M&IE Reimbursement Cap:

The maximum amount authorized for daily meal and

incidental expenses established by the University for all travel of less than 30 days in the

continental United States (CONUS). Travelers may seek reimbursement only for their

actual expenses up to the cap amount (see Section V.E.2.a.i., Travel – Assignments of

Less than 30 Days). For purposes of the reimbursement cap, incidental expenses

include tips and fees for services, e.g., for waiters, baggage handlers, etc.

Per Diem:

The daily subsistence allowance authorized under the federal per diem rates

for a location of travel. The payment of a per diem does not require supporting receipts.

Per diems are authorized in these situations: for all foreign travel; travel within Alaska,

Hawaii, and United States possessions (OCONUS); domestic travel assignments of 30

days or more; and domestic travel assignments that exceed one year (see Appendix B).

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The incidental expenses portion of the federal per diem rate includes fees and tips given

to porters, baggage carriers, bellhops, hotel maids, stewards or stewardesses and others

on ships, and hotel servants in foreign countries; transportation between places of

lodging or business and places where meals are taken, if suitable meals cannot be

obtained at the temporary duty site; and mailing costs associated with filing travel

expense claims and payment of University-sponsored charge card billings. Federal per

diem rates do not include taxes on lodging, which may be reimbursed separately.

Refer to Section V.E., Subsistence Expenses, for more information on per diems.

Primary Agreement:

An agreement between the University of California and an

awarded supplier for a specific service or commodity that is the result of a University

competitive bid process. The primary agreement is established with the supplier

considered to have the best combination of value and service and who obtains the most

awarded quality points during the evaluation process. This supplier will be the

recommended University supplier for the specific service or commodity type (at

participating University locations) for the life of the agreement.

Reporting Period:

The forty-five day period within which a travel expense claim must

be submitted after the end of a trip. Refer to Section V.I.1., Reporting Period, for more

information.

Residence:

The primary residence where the traveler lives, regardless of other legal or

mailing addresses. However, when an employee is required to reside temporarily away

from his or her permanent residence because of official travel away from headquarters,

such residence may still be considered permanent if it is unreasonable to expect the

employee to move his or her permanent residence to the temporary job location.

Travel Expenses:

Expenses that are ordinary and necessary to accomplish the official

business purpose of a trip. Refer to the following sections for a description of travel

expenses eligible for reimbursement: Section V.D., Transportation Expenses; Section

V.E., Subsistence Expenses; and Section V.F., Miscellaneous Travel Expenses.

Travel Status:

The period during which a traveler is traveling on official University

business outside the vicinity of his or her headquarters or residence.

III. POLICY TEXT

A. Introduction

The policy and regulations contained in this Bulletin shall apply to all official

University travel, including travel funded under federal grants and contracts.

However, the policy does not apply to work done within the scope of the UC/DOE

contract for the management and operations of the Lawrence Berkeley National

Pursuant to Section 200.474 of the Office of Management and Budget’s 2 CFR Part 200, costs incurred

by employees and officers for travel must be considered reasonable and allowable only to the extent that

such costs do not exceed charges normally allowed by the institution in its regular operations as a result

of an institutional policy and the amounts claimed under sponsored agreements represent reasonable

and allocable costs.

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Laboratory. Travel not within the scope of the LBNL contract is covered by the

provisions of this policy.

This Bulletin includes special rules for non-employees, such as students, visiting

scholars, independent contractors, etc.

The terms set forth in an extramural funding agreement govern only when such terms

are more restrictive than University travel regulations. The campuses and LBNL may

adopt more restrictive procedures, if desired. In addition, the terms of a collective

bargaining agreement shall govern when such terms do not conform to the provisions

of this Bulletin.

B. Overview

University business travelers are strongly encouraged to purchase travel services,

when available, from Preferred Suppliers with whom the University has strategic and

collaborative sourcing primary agreements. Preferred Suppliers deliver competitive

value in the range of services required by University travelers. Such Suppliers include

airlines, car rental agencies, hotels, travel agencies, and online booking providers.

Although it might be possible to obtain a lower cost from nonparticipating suppliers,

use of Preferred Suppliers should, on average and over time, reduce the University's

overall travel costs and provide the best value to the traveler. For more information

about Connexxus and our preferred suppliers, including airlines, hotels, car rental

agencies, and travel agencies, see the Connexxus website.

C. Travel Management Services

1. Travel Management Program

The systemwide Travel Management Program known as Connexxus is intended

to generate maximum benefit and value for University travelers and departments.

The program encompasses all aspects of University travel, including policy

development, processes, planning, data management, and Preferred Supplier

services and contracts. After appropriate training and communication, campuses

should mandate the use of Connexxus in order to realize the potential savings

achievable under the program (President’s June 21, 2009 letters to the

Chancellors).

2. UC Travel Council

The UC Travel Council, sponsored by the Executive Vice President—Chief

Financial Officer, provides general leadership, direction, and oversight in support

of the Connexxus program. At least one representative from each campus and the

LBNL shall have membership on the Travel Council. Campuses may appoint an

additional Medical Center representative for their location, if desired.

D. Reimbursement Standards

It is the policy of the University that all official travel shall be properly authorized,

reported, and reimbursed in accordance with this Bulletin. Under no circumstances

shall expenses for personal travel be charged to, or be temporarily funded by, the

University, unless otherwise noted in this Bulletin. All travel reimbursement requests

must be certified by the traveler, as indicated in section V.I.2.c.

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University employees traveling on official business shall observe normally accepted

standards of propriety in the type and manner of expenses they incur. In addition, it

is the traveler's responsibility to report his or her actual travel expenses in a

responsible and ethical manner, in accordance with the regulations set forth in

this Bulletin.

The University’s travel reimbursement procedures contained in this Bulletin are

designed to conform to the “accountable plan” rules published by the Internal

Revenue Service (IRS). Therefore, University reimbursement of an employee’s travel

expenses shall not result in additional taxable income to the employee. Travel

expenses considered by the IRS to be taxable income to the traveler are not

reimbursable except for the following:

• Expenses for travel in excess of one year,

• Imputed taxable income caused by substantiated expense reports submitted

after the time limit described in Section V.I.1., subject to campus discretion,

• Certain travel expenses related to moving a new appointee or a current

employee (refer to BFB G-13, Policy and Regulations Governing Moving and

Relocation, for more information), and

• Travel-related and childcare expenses for a spouse, domestic partner,

dependent-care provider, and dependents who accompany the employee

when pre-approved by the Chancellor or other senior University officer (see

Section V.H.2.f).

E. Travel Restrictions

California State Law ( Government Code Section 11139.8, enacted pursuant to AB

1887), effective January 1, 2017, prohibits state-funded travel to a state that has

passed a law after June 26, 2015 that (1) authorizes discrimination based on sexual

orientation, gender identity, or gender expression, or (2) voids or repeals existing

state or local protections against such discrimination. The law also prohibits state

agencies and UC from requiring employees to travel to such states. The State

Attorney General must develop, maintain, and has posted online the current list of

states where these travel restrictions apply. The Attorney General has also posted

online a set of Frequently Asked Questions that includes a list of exceptions provided

in Government Code Section 11139.8, which allow state-funded travel to states on

the Attorney General’s list under certain specified conditions.

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IV. COMPLIANCE/RESPONSIBILITIES

Function Responsibilities

Executive Vice President-Chief

Financial Officer

Establish and update the policies set forth in this Bulletin.

Department Heads (or person

delegated authority by the

Chancellor, or person officially

redelegated authority)

Approve payment for the travel expense claim or electronic equivalent

submitted by the traveler; ensure that appropriate documentation is provided

to substantiate the travel expense; ensure that the travel expenditures

comply with University policy and fund source restrictions.

Campus Controller’s Office or

Medical Center Controller, where

appropriate

Approve the travel expenses, including exceptions, for each campus

Chancellor, including a spouse or domestic partner, or an Associate of the

Chancellor. Initiate proceedings for the recovery of any outstanding cash

advances sixty days after a trip is completed.

Chancellors

• May establish more restrictive procedures for the travel policies authorized

under this Bulletin.

• Designate one or more approving Vice Chancellors to approve travel

expenses incurred by the Vice Chancellors, Deans, and Medical Center

Directors.

• Approve travel expenses incurred by the designated Vice Chancellors.

• May appoint a designee to approve travel expenses incurred by the

designated Vice Chancellors, provided that the designee does not report to

the designated Vice Chancellor.

• Provide written approval for use of private aircraft (including a rented

aircraft) for official travel after pilot registers the private aircraft with the

Chancellor and meets all the requirements under Section V.D.2.b.i.

• Delegate authority to pre-approve reimbursement of travel expenses of a

spouse, domestic partner, dependent-care provider, or dependents of an

accompanying parent (employee) or prospective employee.

Designated Vice Chancellors

• Review and approve travel expenses incurred by the Vice Chancellors,

Deans, and Medical Center Directors.

• In lieu of reviewing and approving each travel expense claim (or electronic

equivalent), the designated Vice Chancellor may:

o Appoint a high-level individual on his or her staff who is

knowledgeable about the travel regulations to review and approve

the travel expense claim for policy compliance, and

o Review and sign a periodic report (produced no less frequently than

monthly), which details the business purpose for each trip taken.

• May not redelegate this authority to another individual, except when the

designated Vice Chancellor is not available due to business travel,

vacation, illness, or other leave.

The term “designated Vice Chancellor” includes any other responsible administrator designated by the Chancellor.

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Function Responsibilities

• LBNL Director

• Executive Vice President-

Business Operations

• Vice President-Agriculture and

Natural Resources

• Principal Officers of The

Regents

Assigned the authorities and responsibilities that are assigned to the

Chancellor for purposes of this Bulletin.

President-Office of the President Establish procedures similar to the Chancellors for the approval of travel

expenses incurred by the President, the Executive Vice Presidents, the

Principal Officers of The Regents, and other Officers within the Office of the

President.

Travel Management Office Administer the University’s Travel Management Program under the general

direction of the UC Travel Council.

UC Travel Council Provide general leadership, direction, and oversight in support of the

Connexxus program.

Payment Approval

Authority

Exceptions

Permitted

Exception Approval

Authority Comments

Chancellors (or

Chancellor’s designee if

any delegation of the

Chancellor’s authority is

made in writing)

Have the authority to

make exceptions to the

University’s Travel Policy,

as long as the exception

is in writing.

Yes Exceptions may be

granted by the Chancellor

or his or her designee

when one is required due

to extenuating

circumstances.

Any request for an

exception must document

the circumstances and

need for the exception.

When an exception has

been approved, expenses

will only be reimbursed to

the extent of actual costs

incurred, provided such

costs are deemed to be

ordinary and necessary

under the circumstances.

See Section V.I.,

Reporting Travel

Expenses, for more

information.

In general, exceptions should not be

made to the daily M&IE reimbursement

cap established for travel of less than

30 days within CONUS (see Appendix

B) unless necessitated by the business

requirements of the trip. For example,

an exception to the daily M&IE

reimbursement cap may be required

for athletic team training meals that

involve specific nutritional

requirements.

Transportation expenses shall be

reimbursed based on the most

economical mode of transportation and

the most commonly traveled route

consistent with the authorized purpose

of the trip. An exception to the

minimum miles per day requirement

may be approved, however, if a delay

is beyond the control of the individual,

e.g., weather, traffic, or physical

handicap of the traveler. Any exception

must be approved by the Chancellor.

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V. PROCEDURES

A. Approval of Travel Expense Claim

The authority to approve travel expense claims must be documented by a signature

authorization form on file with the Campus Controller’s Office (or the Medical Center

Controller, where appropriate) or by an electronic signature authorization. The travel

expense claim should not be approved by a person who reports directly or indirectly

to the traveler. Persons delegated the authority to approve travel shall not approve

their own travel. In addition, travelers may not approve the travel of a near relative,

e.g., spouse or domestic partner, child, parent, etc.

B. Payment of Travel

Prepaid Expenses and Direct Charges

Individual travelers are prohibited from charging hotel and hotel-related expenses

directly to the University. However, campuses may enter into a direct billing

arrangement with a hotel for the payment of charges on behalf of travelers for

room and tax charges only. Campuses should ensure that travelers are aware of

such arrangements. Transportation tickets and conference fees may also be

charged directly to the University if the proper controls are in place, such as a

“ghost card” arrangement. Meals and miscellaneous expenses cannot be charged

or billed directly to the University as these expenses must be paid by the traveler

when they are incurred, and a claim for reimbursement submitted at the

conclusion of the trip.

Sections V.E.4., Payment of Group Subsistence Expenses, V.H.1.c., Students,

and V.H.2.b., Prospective Employees, provide additional information regarding

prepaid expenses and direct charges incurred by travelers.

Corporate Travel Cards

Under guidelines established by campuses, corporate travel cards may be issued

to employees who travel on official University business.

Any traveler issued such

a card should use the card to pay for all expenses related to official University

business travel, including lodging and subsistence, except where the card is not

accepted. The cardholder will be billed directly for all expenses charged to the

corporate card. The cardholder is personally responsible for paying all charges on

the corporate card and for keeping the card current. The University will not

reimburse or pay late fee charges incurred in connection with the corporate

card. Corporate travel card payment delinquencies may result in the cancellation

of the traveler's card or other corrective action.

Travelers who have been issued a University corporate travel card are required to

use the card for cash advances, except under the circumstances listed below in

Section V.B.3.a., Eligibility.

Procurement Services, CFO Division, is responsible for negotiating contracts for campus corporate card programs

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The corporate travel card is valid only while an individual is employed by the

University, may be cancelled at the discretion of the University, and must be

relinquished to the employee’s department upon termination of employment.

Cash/Non-Cash Advances

Travelers are required to use their corporate travel card to obtain cash advances

for expenses incurred in connection with official University business travel, if the

card provides this feature. Reasonable fees charged for obtaining a cash advance

using the corporate travel card are eligible for reimbursement.

a. Eligibility

Travelers who cannot obtain a cash advance through a corporate card may

request a cash advance from the University, in accordance with the procedures

established by the campus, under the following circumstances:

• The traveler is not eligible to participate in the corporate travel card

program or has not yet been issued a corporate travel card;

• The campus’s card program does not provide such a feature;

• The traveler has incurred corporate credit card expenses that must be

paid before a trip is completed;

• The travel requires special handling, such as foreign travel, group travel

for athletics, bowl games, student groups, etc.

b. Issuance of Cash Advances

Cash advances must be issued within 30 days of when an expense is to be paid

or incurred in order to satisfy IRS regulations and to meet the University's cash

management objectives. The amount requested on the Travel Advance Request

form shall not exceed a reasonable estimate of the out-of-pocket expenses

needed for the trip.

Cash advances should not be authorized under the following circumstances:

• The traveler is 30 days delinquent in submitting a travel expense claim

for a prior trip;

• The corporate travel card cannot be used due to the traveler’s failure to

meet the payment terms of the card; or

• The corporate travel card has been lost. (Lost cards should be reported

to the corporate credit card company immediately and arrangements

made for issuance of a replacement card.)

A traveler should have only have one outstanding cash advance per trip; each

advance should be accounted for before another advance is granted. The

traveler must submit a travel expense claim even if he or she is not owed

any additional reimbursement, in order to document the business purpose

for which the advance was issued.

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Section V.I., Reporting Travel Expenses, contains information on substantiation

of cash/non-cash advance expenses. Subsections 1.a, b, and d of Section V.G.,

Intercampus Travel Expenses, provide information on advances issued for

intercampus assignments. Section V.H.1.a., Visiting Academic Appointees,

details special requirements related to handling advances for such appointees.

c. Cancelled or Postponed Trips

A cash advance must be returned immediately if an authorized trip is cancelled

or indefinitely postponed.

A nonrefundable ticket associated with a cancelled trip must be used for the

employee's next business trip.

d. Unrecovered Advances

All cash advances must be accounted for within forty-five days after a trip is

completed. Unrecovered advances that are determined not to be business-

related travel expenses should be reported as income to the traveler, per section

V.B.3.d.ii. Accounting Manual chapter R-212-2, Receivables Management,

addresses the legal limitations with respect to the collection of delinquent

accounts or other indebtedness incurred by employees.

i. Recovery Procedures

An employee's written permission must be obtained before an outstanding

cash advance can be deducted from wages or from any other amounts due

the traveler. If the employee's consent cannot be obtained, the campus

may recover the debt through a collection agency.

ii. Tax Considerations

Cash Advances. If an employee fails to substantiate expenses and return

any unused cash advance amounts within 120 days of the end of a trip, the

University is obligated under IRS regulations to consider such amounts as

income to the employee. As a result, the amount of unsubstantiated

expenses and unrecovered advances will be reported through the payroll

system as additional wages to the employee no later than the first payroll

period following the end of the 120-day period. The income and applicable

employment taxes on the additional wages are to be withheld from the

employee’s regular earnings. No refund of such taxes or any

adjustment to gross income shall be made with respect to any

substantiation or reimbursement received from the employee after the

120-day period. (For more information on tax withholding, see Accounting

Manual chapter D-371-12.1, Disbursements: Accounting for and Tax

Reporting of Payments Made through the Vendor System.)

Non-Cash Advances. Travel payments, such as registration fees, airline

tickets, etc., made to a vendor on behalf of an employee should follow the

same reporting time frame for substantiation by the employee as outlined

as outlined in section V.I.1 of this bulletin.

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Payment of Expenses on Behalf of Others

University travelers normally shall not be reimbursed for expenses paid on behalf

of other persons; however, limited exceptions are permitted (see Section V.H.2.f)

such as in the case of co-travelers who are sharing a room. Exceptions to this

rule, such as supervised group trips, must be approved in advance. (See Section

V.E.4., Payment of Group Subsistence Expenses, for more information.)

Cancellation of Reservations

Travelers who are unable to honor a reservation shall be responsible for canceling

the reservation in compliance with the cancellation terms established by the hotel,

airline, etc. The traveler must return any refundable deposits to the University.

Charges or lost refunds resulting from failure to cancel reservations shall not be

reimbursed unless the traveler can show that such failure was the result of

circumstances beyond the traveler's control.

The traveler shall be responsible for promptly returning for a refund any unused or

partially used transportation tickets.

C. Insurance for Travelers

University Travelers

All University travelers, including employees, medical residents, students, and

fellows, are covered worldwide, 24 hours a day, for a wide variety of accidents

and incidents while on official travel status. The coverage includes accidental

death, accidental dismemberment, paralysis, and permanent total disability. The

coverage also includes travel assistance services when the traveler is 100+ miles

from his or her home or headquarters, such as:

• Security extraction (security extraction is not subject to mileage limitation),

• Emergency medical evacuation and repatriation,

• Repatriation of remains,

• Out-of-country medical,

• Loss of personal effects (employees only), and

• Other travel assistance services.

In addition, all University employees are provided with workers’ compensation

coverage for a work-related injury or illness that occurs during a University-

approved and funded business trip.

a. Registration for Travel Outside of California

Travelers must register all out-of-state and foreign country business trips to

ensure coverage. Booking travel through Connexxus’ preferred travel agencies

and supported online booking tools, with the exception of SWABIZ (Southwest)

automatically enrolls the traveler in the insurance program for travel outside of

California; otherwise the traveler must register on the Risk Services website and

complete the Traveler Insurance form before an out-of-state trip occurs.

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Registration is not required for travel within California as coverage is automatic.

Vehicles

For information on insurance coverage requirements for employees who use their

private vehicles on University business, see Section V.D.3.a.iii., Insurance

Coverage. Sections V.D.3.b.ii., Insurance Coverage, V.D.3.b.iv., Damage to a

Rental Vehicle, and V.D.3.c.i., University Vehicles, contain information on

insurance coverage in connection with rental cars and University vehicles.

Refer to the Risk Services website for more information on automobile and liability

insurance coverage for individuals traveling on University business.

Questions should be directed to the local Risk Management office.

D. Transportation Expenses

Transportation expenses shall be reimbursed based on the most economical mode of

transportation and the most commonly traveled route consistent with the authorized

purpose of the trip. Any exception must be approved by the Chancellor.

Travel by a group of employees in the same aircraft, automobile, or other mode of

transportation is discouraged when the employees' responsibilities are such that an

accident could seriously affect the functioning of the University. Key employees, such

as the President, Chancellors, Vice Presidents, or a substantial number of employees

from the same organizational unit or program, should consider this risk when making

travel arrangements.

General

a. Definition

Transportation expenses include the following: charges for commercial carrier

fares; travel agency service fees; car and aircraft rental charges; private car

mileage allowances; emergency repair to University cars; overnight and day auto

parking; bridge and road tolls; taxi and public transportation fares; and all other

charges for transportation services necessary to accomplish the official business

purpose of the trip.

b. Transportation Tickets

Transportation tickets should be procured in advance in order to obtain any

discounts offered by the carrier or negotiated by the University. Such tickets

should be purchased through Connexxus. Travelers will not be reimbursed for

non-cash certificates used for the purchase of transportation tickets, e.g.,

frequent flyer miles.

c. Lost Tickets

Service charges for tickets lost by travelers may be reimbursed, provided such

occurrences are infrequent. Charges for re-ticketing, schedule changes, etc. are

reimbursable if incurred for a valid business reason. The reason for the charge

must be specified on the travel expense claim.

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d. Allowable Mileage Expense

Mileage shall ordinarily be computed between the traveler's headquarters and

the common carrier or destination. Expenses for travel between the traveler's

residence and headquarters (commuting expense) shall not be allowed.

However, mileage expenses may be allowed between the traveler's residence

and the common carrier or destination if University business travel originates or

terminates during a regularly scheduled day off.

When a traveler is authorized to drive a private vehicle to or from a common

carrier terminal, mileage may be reimbursed as follows:

• One round trip, including parking for the duration of the trip; or

• Two round trips, including short-term parking expenses, when an

employee is driven to a common carrier.

Also, if an employee who is not on travel status has a temporary assignment

away from campus, reimbursement shall be made for mileage expenses incurred

between the campus and the assignment location, or home and the assignment

location, whichever is less.

e. Surface Transportation Used in Lieu of Air Travel

If advance approval has been obtained, a traveler may use surface

transportation for personal reasons even though air travel is the appropriate

mode of transportation. The cost of meals and lodging, parking, mileage, tolls,

taxis, and ferries incurred while in transit by surface transportation may be

reimbursed.

However, such costs shall not exceed the cost of airfare, based on

the lower of the regular coach fare available for the location of travel from a

standard commercial air carrier or the campus travel program fare, plus

transportation costs to and from the terminals.

f. Indirect or Interrupted Itineraries

Obtaining advance approval is suggested when a traveler takes an indirect route

or interrupts travel by a direct route, for other than University business. Any

resulting additional expenses shall be borne by the traveler. The reimbursement

of expenses shall be limited to the actual costs incurred or the charges that

would have been incurred via a usually traveled route, whichever is less. The

cost comparison should be based on what UC would have paid, which can be

obtained by a Connexxus-related travel agency prior to or at the time of booking

the trip. Any resulting excess travel time will not be considered work time, and

will be charged to the appropriate type of leave. The employee shall be

responsible for accurate reporting of such leave time.

g. Travel Extended to Save Costs

Additional expenses associated with travel extended to save costs, e.g., a

Saturday night stay for domestic travel, may be reimbursed when the cost of

The reimbursement of M&IE is subject to the 300 mile-per-day rule specified in Section V.D.3., Automobile.

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airfare would be less than the cost of airfare had the traveler not extended the

trip (provided the expenses were incurred in compliance with this Bulletin). Such

expenses, which include lodging, car rental, and M&IE (subject to the

reimbursement caps set forth in Appendix B) incurred within the vicinity of the

business destination, shall not exceed the amount the University would have

paid had the traveler not extended the trip.

Air Travel

a. Commercial Airlines

Coach Class. Coach class or any discounted class shall be used in the interest

of economy. This policy applies to all travel (domestic or foreign, or any

combination thereof) regardless of the purpose or fund source.

Business or First Class. Use of business or first-class may be authorized under

the circumstances listed below. Documentation of such circumstances must be

provided on the travel expense claim.

• Business or first-class is the only service offered between two points;

• The use of coach class would be more expensive or time consuming,

e.g., when, because of scheduling difficulties, traveling by air coach

would require an unnecessary hotel expense, circuitous routing, or an

unduly long layover when making connections;

• An itinerary involves overnight travel without an opportunity for normal

rest before the commencement of working hours; or

• The use of business or first-class travel is necessary to reasonably

accommodate a disability or medical need of a traveler.

When a traveler prefers to use a higher class than the one authorized for

reimbursement, the traveler must pay the incremental cost of the airfare. In

cases other than those described above, a written authorization to use business

or first-class shall be obtained in advance from the Chancellor. The traveler shall

submit such authorization with the travel expense claim.

Other Ancillary Charges. Campus Chancellors can establish local policy for

reimbursement at their respective locations of ancillary charges such as checked

and carry-on baggage fees, early check-in or priority boarding and seat

selection. Likewise, reimbursement of higher cost airfare such as Economy Plus,

Extra Comfort, etc., within the economy class can be included in the local policy.

U.S. Flag Air Carriers. Under the Fly America Act published in Federal Travel

Regulation §301-10.13 by the General Services Administration (GSA), only U.S.

air carriers

shall be used for all travel reimbursed from federal grants and

Code-sharing agreements with foreign air carriers, whereby American carriers purchase or have the right to sell a

block of tickets on a foreign carrier, comply with the Fly America Act Regulations. The ticket, or documentation for an

electronic ticket, must identify the U.S. carrier's designator code and flight number.

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contracts, including NIH grants

. However, there are exceptions to using only

U.S. air carrier services under the Fly America Act, depending on the scenarios

shown below:

• Generally, U.S. air carrier services that provide nonstop or direct

service from the origin to the destination must be used, unless such

use would extend travel time, including delay at origin, by 24 hours or

more;

• Generally, U.S. air carrier services that do not offer nonstop or direct

service between origin and destination must be used on every portion of

the route where it provides service, unless when compared to using a

foreign air carrier, such use would:

o Increase the number of aircraft changes outside the U.S. by two

or more; or

o Extend travel time by at least 6 hours or more; or

o Require a connecting time of 4 hours or more at an overseas

interchange point.

• When the costs of transportation are reimbursed in full by a third party,

such as a foreign government or an international agency, U.S. air

carriers do not have to be used.

• Open Skies Agreements. “Open Skies Agreements” are bilateral or

multilateral air transportation agreements to which the U.S. and the

government of a foreign country are parties. Under the Open Skies

Agreements, the U.S. government entered into several air transport

agreements that allow federally funded transportation services for travel

and cargo movements to use foreign air carriers under certain

circumstances. The Department of State’s website contains a list of

countries the U.S. government has Open Skies Agreements with,

including policy information contained in the various Open Skies

Agreements. Transportation is allowed between a point in the United

States and any point in a member state or between two points outside

the U.S. subject to certain restrictions.

Travelers funded by federal grants and contracts should review Federal

Travel Regulation §301-10.106 published by the GSA for any City-Pair

requirements, and §301-10.135 for any Open Skies requirements. The

GSA issued Guidance on October 6, 2010 for the Amendment of the

U.S.-EU Open Skies Agreement effective June 24, 2010. Federal

contractors and grantees who are not U.S. Government employees

should consult this guidance to determine if they need to be concerned

about City-Pair contract fares. Contractors and grantees should also

See section 7.9.1 “Travel/Employees”

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check with the airline to ensure that the airline is covered by the U.S.-

EU Open Skies agreement, which may change periodically.

Reimbursement of travel on a foreign air carrier may be denied in the

absence of such justification.

b. Private Aircraft

i. Approval

Before a private aircraft (including a rented aircraft) may be used for official

travel, the pilot must register with and obtain written approval from the

Chancellor. In addition, the following requirements must be met:

• The pilot must have a valid private license;

• The pilot must have logged at least 10 hours of flight time within the

preceding 90 days as a pilot in command of an aircraft of the same

make and model as the one to be used on the trip;

• To carry passengers, the pilot must either have logged a minimum

of 500 hours of flight time as a licensed private pilot in command of

an aircraft or possess a valid commercial (or higher type) pilot's

license issued by the Federal Aviation Administration.

• A current pilot history form and a certificate of insurance must be on

file with the campus risk management office; and

• Evidence must be provided of Aviation Liability Insurance coverage

with a minimum combined single limit of $1 million, with The

Regents named as additional insured.

Transportation expenses for a flight carrying passengers shall not be

reimbursed if the University pilot does not possess the above qualifications.

For purposes of the foregoing rule, anyone traveling in the aircraft other

than the pilot is considered to be a passenger.

ii. Reimbursement Options

When the pilot has obtained prior approval to use a private aircraft,

reimbursement shall be made based on the lesser cost of one of the

following two options:

• Private Aircraft Option. An amount for mileage using the private

reimbursement rate per mile shown in Appendix A, plus the cost of

meals and lodging while in transit. Mileage shall be computed on the

basis of the shortest air route from origin to destination. The travel

expense claim must show the aircraft registration number and shall

be clearly marked "Air Miles." Only the pilot will be reimbursed for

mileage expenses. Reimbursement shall be made for actual

landing and parking fees. Reimbursement is not allowed for storage

or parking fees at the location where the aircraft is normally stored.

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However, parking and transportation costs to and from the place of

storage may be reimbursed.

• Commercial Aircraft Option. The cost of the lowest regular coach

fare available for the location of travel from a standard commercial

air carrier, plus the cost of transportation to and from the terminals

and any meals and lodging that would have been allowed had the

traveler used a commercial airline. The cost of meals and lodging

while in transit also may be taken into account in determining the

appropriate reimbursement amount.

c. Chartered Aircraft

The actual expenses of chartering an aircraft are allowable; however, prior

approval must be obtained from the Chancellor.

Automobile

Travelers may use their private vehicle for business purposes if it is less

expensive than renting a car, taking a taxi, or using alternative transportation, or if

it saves time.

When a person is authorized to travel by automobile (e.g., when an automobile is

the most economical and practical mode of transportation given the requirements

of the trip) actual M&IE incurred en route plus the cost of lodging, when

appropriate, may be reimbursed. However, a minimum of 300 miles a day must be

driven by the most direct route in order to obtain the M&IE and lodging

reimbursement. An exception to the minimum miles per day requirement may be

approved, however, if a delay is beyond the control of the individual, e.g.,

weather, traffic, or physical handicap of the traveler.

a. Private Vehicles

The following rules apply to all domestic travel.

i. Mileage Reimbursement Rates

When two or more persons on University business share a private vehicle,

only the driver may claim reimbursement for mileage.

• Standard Rate

The standard reimbursement rate per mile is set forth in Appendix A.

This rate takes into account all actual automobile expenses such as

fuel and lubrication, towing charges, repairs, replacements, tires,

depreciation, insurance, etc. Thus, under IRS regulations, travelers

who claim this rate are not required to substantiate the actual costs

of operating the vehicle.

• Rate for Travelers With Physical Disabilities

A traveler with a physical disability who must use a specially

equipped or modified automobile may claim reimbursement at the

standard rate per mile set forth in Appendix A. However, if the

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traveler incurred higher than standard operating costs, the traveler

may seek reimbursement by submitting a statement with the travel

expense claim certifying that he or she incurred higher operating

costs. The actual fixed and variable costs must be specified in the

statement.

The traveler should refer to IRS Form 2106, Employee Business

Expenses, to obtain additional information on the calculation of

actual vehicle operating costs. Form 2106 is available on the IRS

web site.

The departmental authority that approves the travel is responsible

for documenting the traveler's need to use such a vehicle.

ii. Private Vehicle Used in Lieu of Air Travel

When a traveler's private vehicle is used on University business in lieu of

available air travel, the traveler shall be reimbursed in accordance with the

procedures specified in Section V.D.1.e, Surface Transportation Used in

Lieu of Air Travel. Fuel, routine repairs and associated costs, tires,

gasoline, or other automobile expense items shall not be allowed when a

private vehicle is used. Such expenses are included in the mileage

reimbursement rates set forth in Appendix A.

iii. Insurance Coverage

When private vehicles are used on University business, the appropriate

campus officials are responsible for requiring that employees have

adequate liability insurance coverage. The minimum prescribed liability

insurance coverage is as follows: $50,000 for personal injury to, or death

of, one person; $100,000 for injury to, or death of, two or more persons in

one accident; and $50,000 for property damage. An employee who

regularly uses a private vehicle on University business is required to have

and provide upon request satisfactory evidence of liability insurance

coverage. Such evidence must be provided to the appropriate office before

the reimbursement of regular use mileage is allowed. Regular use is

defined as more than four trips per calendar month totaling at least 300

miles. When a private vehicle operated by an employee on official

University business is damaged by collision or sustains other accidental

damage, reimbursement for repairs borne by the employee may be

authorized up to $500 or the amount of the deductible (co-insurance),

whichever is less. Expenses that can be recouped from insurance are not

eligible for reimbursement. The amount reimbursed shall be based on

receipts submitted by the employee to the individual who authorized the

travel. The reimbursement may be charged to the department or to

another appropriate account as designated by the Chancellor.

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b. Rental Cars

i. Authorization to Rent

A vehicle may be rented when renting would be more advantageous to the

University than other means of commercial transportation, such as using a

taxi. Advance reservations should be made whenever possible and may

include up to an intermediate-size model, per the terms of UC-negotiated

rental agreements. Vehicles up to an intermediate-size model should be

used unless a no-cost upgrade is provided. When the University’s rental

contracts provide for refueling charges at a negotiated rate, this option may

be selected to purchase fuel in advance. Hand-held or uninstalled GPS

devices should not be rented unless the traveler is unfamiliar with the

location of travel. Use of other higher cost upgrades requires exceptional

approval.

The traveler is responsible for obtaining the best available rate

commensurate with the requirements of the trip. The discount negotiated

with car rental agencies by the University should be requested when

available. The University’s Connexxus website provides the rental

agency's University identification number, which should be given to the

agency at the time of rental in order to ensure that the vehicle is covered by

physical damage insurance.

ii. Insurance Coverage

Travelers are expected to use rental agencies with which the University

has systemwide contracts that include insurance coverage. The following

rules apply to insurance coverage for rental cars:

• The cost of full collision coverage for rental cars used in Alaska,

Hawaii, U.S. possessions (OCONUS), and foreign countries, is

allowable.

• On contract rental vehicles used in the continental United States

(CONUS), charges for additional insurance are not allowable,

including any charge for a collision damage waiver (CDW).

• Additional charges for insurance coverage will not be reimbursed if a

non-contract agency is used, unless no car rental company in the

area has such an agreement with the University.

• It is recommended that employees purchase supplemental

insurance when renting a vehicle outside the U.S.

• A vehicle rented from an agency with which the University has an

agreement is not covered by insurance when it is being used for a

personal day of travel.

Some rental car agreements contain special coverage provisions that differ

from the general coverage rules detailed above. For additional information

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on rental car insurance coverage, see UC Car Rental Insurance

Information.

The campus risk management office should be contacted for information

on campus-specific contracts or insurance coverage.

iii. Direct Billing

Vehicle rental charges billed directly to the University can be authorized

within parameters established by the Campus Controller’s office. Any direct

bill arrangement should only allow for the rental cost and associated tax for

rentals that are business related. Rental car charges that are not direct

billed should be paid with the traveler's corporate travel card (see Section

V.B.2, Corporate Travel Cards) or their personal credit card.

iv. Damage to a Rental Vehicle

A University traveler may be reimbursed for property damage to a rental

vehicle only if such expenses were incurred on days the vehicle was being

used for University business purposes. (See Section V.C.2., Vehicles, for

more information on insurance coverage). The amount reimbursed may be

charged to the traveler's department, the department sponsoring the

traveler, or to an account designated by the Chancellor, as appropriate.

The traveler shall submit with the travel expense claim a brief description of

the damage to the vehicle, including an explanation of the cause of such

damage, and either a police report or a report prepared by the rental

company.

c. Official Vehicles

i. University Vehicles

University vehicles shall be used in accordance with the guidelines

contained in BFB BUS-46, Use of University Vehicles. For information

regarding insurance coverage on University vehicles, refer to BFB BUS-81,

Insurance Programs.

d. Miscellaneous Automobile-Related Expenses

Charges for ferries, bridges, tunnels, or toll roads may be claimed by the vehicle

operator. Reasonable charges for parking while an employee is on travel status

or on University business away from regular duties also will be allowed for the

following:

• Day parking on trips away from an employee's headquarters;

• Day and overnight parking on overnight trips away from an employee's

headquarters or residence (a claim should not be made if free overnight

parking is available); and

• Parking charges incurred when an employee without a location parking

permit is occasionally required to drive to and from headquarters.

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Travelers should seek out the longer term parking accommodations at airports or

common carriers when travel is expected to exceed twenty four hours.

Valet parking charges in excess of normal parking charges shall be borne by the

traveler, unless the traveler obtains an exception.

Rail or Bus

Rail or bus transportation may be used when required by the destination or by

business necessity. If a traveler's destination is served by a regularly scheduled

airline, however, the use of rail transportation shall be reimbursed in accordance

with the procedures specified in Section V.D.1.e., Surface Transportation Used in

Lieu of Air Travel. This rule does not apply to inter-city rail travel that is equivalent

to air transportation in total travel time. Reimbursement for the cost of Pullman

roomette accommodations is allowed. If more expensive accommodations are

used, the traveler must justify the expense in a written explanation submitted with

the travel expense claim.

If accommodations are included in the rail fare, e.g., Pullman roomette

accommodations, lodging expenses shall not be reimbursed for each night that

such accommodations are used.

Ship

When travel by passenger ship is authorized, transportation at the lowest first-

class rate is allowed.

The reimbursement of subsistence expenses while on board a passenger ship

shall not be allowed if the cost of subsistence is included in the fare for passage

and stateroom. If the fare does not include subsistence, reimbursement shall be

based on the traveler's actual daily expenses, subject to the limits set forth in

Section V.E., Subsistence Expenses. A full explanation of the circumstances that

necessitated such expenses must be submitted with the travel expense claim.

Other Forms of Transportation

a. Local Public Transportation, Shuttle Service, and Taxis

Local public transportation fares (e.g., buses, subway, streetcars) shall be

allowed. The cost of shuttle service (including airport limousine service, if

appropriate) to and from an airport or railroad station, plus reasonable tips, is

allowable to the extent such service is not included in air or rail fares. Taxi fares,

including tips, shall be allowed when the use of alternative transportation is

impractical or not available. The cost must be reasonable in relation to personal

car use costs, including parking, tolls, etc. When traveling to and from the airport

from the home location travelers should be good stewards of the University’s

resources and be mindful of the costs associated with the transport method

selected.

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b. Motorcycles

Motorcycles shall not be authorized for use on official University business, nor

shall any reimbursement be made for the use of such vehicles except for the

following situations:

• University police department employees on motorcycle assignment; and

• Motorcycles used when automobile transportation is not an available

option in the foreign location and used consistent with approved policies

for foreign locations.

c. Special Conveyances

Charges for using other types of conveyance (such as a helicopter or boat) shall

be allowed when the use is beneficial to the University and when the fare for the

conveyance is not included in the original cost of the common carrier fare. An

explanation justifying such use must accompany the travel expense claim,

unless the Chancellor has established a blanket authorization for the travel. A

copy of the authorization shall be attached to the travel expense claim (unless a

blanket authorization is published in the campus policy and procedures manual).

E. Subsistence Expenses

General

a. Definition

Subsistence expenses incurred while on travel status consist of charges for

lodging and meals and incidental expenses (M&IE). For the definition of

incidental expenses, see Section II., Policy Definitions. Expenses reimbursed

must be ordinary and necessary to accomplish the official business purpose of

the trip. Subsistence expenses incurred within the vicinity of an employee’s

headquarters or residence shall not be reimbursed. To be eligible for

reimbursement, actual expenses must be documented in accordance with

Section V.I.2.b., Documentation Requirements. Regardless of the length of time

for business travel, the traveler must be at least forty miles from the headquarter

location or home, whichever is closer, to be reimbursed for an overnight stay.

b. Entertainment Meals

Expenses for meals incurred by employees who entertain while on travel status

are reimbursable in accordance with BFB BUS-79, Expenditures for Business

Meetings, Entertainment, and Other Occasions.

Travel in Excess of 24 Hours

a. Domestic Travel - Travel within the United States and Its Possessions

For purposes of determining the applicability of Sections i, ii, and iii below, an

official University business trip begins when the traveler leaves his or her

residence or headquarters, whichever occurs last, and ends when the traveler

returns to his or her residence or headquarters, whichever occurs first.

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i. Travel - Assignments of Less than 30 Days

CONUS Travel. For travel assignments of less than 30 days within the

continental United States (CONUS), the reimbursement of daily

subsistence expenses shall be based on the actual amounts incurred for

lodging and meals and incidental expenses, subject to the maximum per

day reimbursement cap described below. The M&IE cap for CONUS

travel under 30 days shall not be treated as a per diem. M&IE

reimbursement shall be limited to the actual reasonable costs incurred;

subject to the daily maximum reimbursement cap set forth in Appendix B.

Departments should remind their travelers that only expenses actually

incurred are reimbursable. Travelers should be required to submit meal

receipts if it appears that they are treating the cap as a per diem by

routinely claiming the full M&IE amount. Lodging expense reimbursements

are actual up to $275 per night before taxes and mandatory hotel fees and

must be supported by original itemized receipts, regardless of the amounts

incurred, and must be reasonable for the locality of travel. When the

traveler is unable to secure lodging at $275 per night or less, the traveler

must submit additional documentation such as price comparisons within

the proximity of the meeting location that supports the higher lodging rate

incurred. The price comparisons should be performed at the time of

booking.

A traveler who is required to attend a conference where the prearranged

conference lodging rate exceeds the $275 per night cap may stay at the

conference hotel without exceptional approval.

OCONUS Travel. Travel within Alaska, Hawaii and U.S. possessions

(OCONUS) shall be reimbursed in accordance with the non-foreign locality

per diem rates published by the Department of Defense (see Appendix B).

ii. Long-Term Travel - Assignments of 30 Days or More

The long-term daily expense rate shall be authorized when a traveler can

reasonably be expected to incur expenses in one location comparable to

those arising from the use of establishments catering to long-term visitors,

and when the traveler is expected to be in one location for 30 or more

consecutive days but not in excess of one year.

CONUS Travel. For domestic travel assignments of 30 days or more within

the continental United States, the per diem allowance authorized for

subsistence expenses is based on an estimate of actual daily expenses

(see below for information on estimating and computing a daily expense

rate). Reimbursement of such expenses shall be limited to a daily amount

of up to 100% of the applicable federal per diem rate (published by the

General Services Administration) established for travel within CONUS (see

Appendix B). Actual costs paid for lodging taxes, which are not

included in CONUS per diem rates, may be reimbursed as a

miscellaneous expense.

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OCONUS Travel. For travel within Alaska, Hawaii and U. S. possessions

the actual lodging and subsistence expense incurred shall be reimbursed,

limited to 100% of the non-foreign locality per diem rates (see Appendix B).

Daily Expense Rate. The daily expense rate is computed by dividing the

monthly lodging costs (determined by estimating actual expenses) plus an

appropriate amount for M&IE (not to exceed the amounts specified in

Appendix B), by the number of days of occupancy in the rental period. The

following recurring expenses may be considered part of the lodging cost

when a traveler rents a room, apartment, house, or other lodging on a long-

term basis:

• Rental cost of a furnished dwelling;

• Utilities;

• Monthly base telephone charges.

iii. Indefinite Travel - Assignments that Exceed One Year

Under the IRS one-year rule, travel away from home that lasts more than

one year in a single work location is considered indefinite. Any travel

expenses reimbursed during that period must be treated as taxable income

subject to withholding for income and employment taxes (i.e., social

security and Medicare).

Accordingly, for an employee whose indefinite assignment requires a

change of residence in order to undertake an assignment, who plans to

return at the end of the assignment, and who expects to remain in a single

location for more than one year, subsistence expense reimbursement shall

be treated as follows:

• The entire reimbursement, effective as of the first day of the

traveler's assignment, shall be included in the employee's gross

income subject to withholding for income and applicable

employment taxes;

• The subsistence reimbursement must be paid through the payroll

system as additional income subject to withholding;

• The reimbursement for such assignments shall be limited to 2 years.

An exception may be granted by the Chancellor to extend the

reimbursement for a longer period of time; and

• The cost of moving the employee to and from the location of the

indefinite assignment shall be reimbursed in accordance with

University moving policies (refer to BFB G-13, Policy and

Regulations Governing Moving and Relocation).

To compensate for additional federal and state income taxes and

employment taxes owed by the employee, the reimbursement rate for

actual subsistence expenses may be increased up to 150% of the per diem

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rates authorized for domestic travel of 30 days or more (see Section a.ii.

above).

A separate calculation of the amount of the increase must be made for

each employee, taking into account each employee's additional federal and

state income tax liability and liability for employment taxes. The formula

provided by the IRS for grossing up payments to cover an employee's tax

liability should be used to calculate the increase (see Appendix C for

examples based on the IRS Tax Gross Up Formula).

Under IRS regulations, the following situations also are considered

indefinite assignments:

• Indefinite Assignment Ends Prematurely

An indefinite assignment that is realistically expected to last more

than one year shall be considered indefinite regardless of whether it

actually exceeds one year. Thus, any amounts withheld in

connection with the employee's travel expense reimbursements

would not be refundable if the assignment ends prematurely.

• Temporary Assignment Extended

If a temporary assignment is realistically expected to last for one

year or less, but at some later date is extended to exceed one year,

then the assignment shall be treated as temporary until the date the

employee's realistic expectations change. Thus, travel expense

reimbursements would not be taxable for the period of the

assignment that was expected to be temporary. Travel expenses

reimbursed thereafter must be included in the employee's income

subject to withholding.

• Indefinite Assignment Interrupted by Trips to Former Residence or

to Headquarters

An indefinite assignment that is interrupted by occasional trips to the

employee's former residence or headquarters shall be subject to the

one-year rule. Such return trips do not change the tax status of an

indefinite assignment.

b. Foreign Travel

Under IRS regulations, foreign travel expenses are subject to a special allocation

rule that is used to disallow certain nonbusiness travel expenses. The disallowed

expenses are treated as taxable income to the employee, and are computed as

follows:

Number of nonbusiness days divided by total number of business and

nonbusiness days and then multiplied by total travel expenses.

See Section VII., Frequently Asked Questions, for the four situations where the

special allocation rule does not apply to nonbusiness foreign travel expenses.

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i. Travel - Assignments of Less Than 30 Days

Foreign travel shall be reimbursed in accordance with the Federal

Maximum Travel Per Diem Allowances for Foreign Areas published by the

Department of State (see Appendix B). (Refer to Section c, Adjustment of

Per Diem Rates, below, for information on prorating per diems). An official

University business trip begins when the traveler leaves his or her

residence or headquarters, whichever occurs last, and ends when the

traveler returns to his or her residence or headquarters, whichever occurs

first. Travelers should only claim actual travel expenses (e.g. subsistence

and lodging) up to the per diem rate.

If actual expenses that are greater than the per diem are claimed due to

special or unusual circumstances, the traveler must document such

circumstances by submitting a written explanation with the travel expense

claim. The amount reimbursed, however, may not exceed 300% of the

applicable federal rate established for the location of travel. The

reimbursement of actual expenses must be supported by receipts, as

specified in Section V.I.2.b., Documentation Requirements.

The following are some examples of special or unusual circumstances that

warrant reimbursement of actual expenses:

• A traveler is required to attend a meeting or conference where

meals and lodging must be obtained at a prearranged place, and

lodging consumes all or most of the applicable maximum per diem

allowance;

• The travel is to an area where the per diem is normally adequate,

but subsistence costs have temporarily increased because of a

special event or function, e.g., a national or international sports

event; or

• Due to the situation described above, affordable lodging is not

available within a reasonable commuting distance of the employee’s

meeting or conference and transportation costs to commute to and

from the less expensive lodging facility consume most or all of the

savings achieved from occupying less expensive lodging.

ii. Long-Term Travel - Assignments of 30 Days or More

The per diem allowance authorized for long-term travel is actual costs up to

100% of the applicable federal per diem rate (see Appendix B). The

traveler is expected to seek long-term accommodations when staying in

one location for 30 or more consecutive days but less than one year. See

Section V.E.2.a.ii., Long-Term Travel – Assignments of 30 Days or More,

above, for information on estimating and computing a daily lodging rate.

iii. Indefinite Travel - Assignments that Exceed One Year

The rules for domestic indefinite travel set forth in Section V.E.2.a.iii.,

Indefinite Travel - Assignments that Exceed One Year, above, also apply to

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the reimbursement of travel expenses incurred in connection with indefinite

foreign assignments of one year or more, with the following exceptions:

• To compensate for additional federal and state income taxes and

employment taxes owed by the employee, the reimbursement rate

for actual subsistence expenses may be increased by up to 150%

of the applicable federal per diem rate authorized for long-term

travel (see Section ii, Long Term Travel, above).

• The amount of the increase, if any, calculated for each employee

must take into account the effect of the annual foreign earned

income exclusion that may be available to the employee.

c. Adjustment of Per Diem Rates

Travelers may not request reimbursement of actual expenses for one portion of

a trip and per diem for the remainder. The method selected must be used for the

entire trip. However, a per diem may be used for M&IE and actual costs used for

lodging. The request for reimbursement of such lodging expenses must be

supported by receipts. See Section V.E.2.b.i., Travel – Assignments of Less

Than 30 Days, above, if the traveler is claiming actual expenses due to special

or unusual circumstances.

i. Adjustment for Multiple Locations

The method provided in Appendix D may be used to determine travel

expenses when a trip is reimbursable under more than one per diem rate.

This method may not be used if an alternative method is contractually

mandated by the funding source.

ii. Adjustment for Partial Days

The reimbursement of subsistence expenses shall be calculated in

multiples of the applicable federal per diem rate based on the total number

of hours between the time of arrival at the foreign or OCONUS location and

the time of departure for the return trip to the traveler's headquarters or

residence (see Section V.E.2.b.i., Travel – Assignments of Less than 30

Days, for the definition of when a travel assignment begins and ends).

For partial days, hours should be rounded to the nearest quarter day as

follows: 3 hours up to 9 hours equals 1/4 day; 9 hours up to 15 hours

equals 1/2 day; 15 hours up to 21 hours equals 3/4 day; and 21 hours up to

24 hours equals 1 day.

An alternative method of prorating partial days may be used provided the

method is reasonable and consistently applied.

iii. Adjustment for Subsistence or Lodging Provided Without Charge

When subsistence or lodging expenses are paid directly by the University,

are reimbursed as entertainment expenses, or are otherwise furnished to

the traveler without charge, the per diem rate authorized for foreign (or for

OCONUS) travel must be reduced correspondingly by the amounts

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specified in Appendix B, Section 301 of the Federal Travel Regulation.

When lodging is provided without charge, only the M&IE portion of the per

diem will be reimbursed. An alternative method may be used to reduce the

M&IE rate provided the method is reasonable and consistently applied.

Situations that may require an adjustment include the following:

• Meals are furnished as part of official University entertainment,

• Meal or lodging expenses are included in the registration fees,

• Group expenses are billed directly to the University, or

• Complimentary accommodations are extended (generally to a

conference leader/coordinator and assistants) by a hotel or motel

complex for block patronage of guest rooms.

Refer to Section 4, Payment of Group Subsistence Expenses, below, for

more information on claiming group expenses.

d. Use of Non-Commercial Facilities

When non-commercial facilities such as cabins, house trailers, vans, field

camping equipment, or other such facilities are used, the traveler shall be

reimbursed a daily amount based on an estimate of actual expenses up to 100%

of the applicable federal per diem rate for the appropriate geographic area (see

Appendix B). (See Section V.E.2.a.ii., Long-Term Travel - Assignments of 30

Days or More, above, for information on computing the daily expense rate).

e. Lodging with a Friend or Relative

When a traveler lodges with a friend or relative while on official business for the

University, a non-cash gift, such as flowers, groceries, or a restaurant meal, may

be provided to the host. The actual cost of such a gift may be reimbursed up to

$75. Under IRS regulations, a receipt must be provided for gifts costing $25 or

more. Only one gift per stay may be provided to a host.

Travel of Less than 24 Hours

When the entire length of a trip is less than 24 hours, M&IE shall not be

reimbursed unless the travel includes an “overnight stay” as supported by a

lodging receipt.

If the traveler is unable to provide a receipt, he or she must

include a statement with the travel expense claim explaining why a receipt is not

available (e.g., the traveler lodged with a friend or relative, stayed overnight at the

airport, or took alternative transportation that required the traveler to be away

overnight).

An exception to the overnight-stay requirement may be allowed when a traveler

incurs a meal expense in connection with a business meeting (e.g., a working

lunch scheduled as an integral part of a meeting or conference). The business

The overnight-stay requirement does not apply to meal reimbursements authorized under BUS-79, Expenditures for

Business Meetings, Entertainment, and Other Occasions.

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purpose of the meal must be explained on the travel expense claim or

substantiated by other documentation (e.g., an agenda), which should be

attached to the claim. Reimbursement for the cost of the traveler’s meal is allowed

up to the maximum amounts set forth in BUS-79.

For a trip of less than 24 hours that includes an overnight stay, reimbursement

shall be authorized as follows:

a. CONUS Travel

Actual cost of lodging and M&IE, subject to the daily maximum amount set forth

in Appendix B for M&IE incurred on travel of less than 30 days. The maximum

amount for a single day shall be authorized for the entire trip, even if the trip

takes place over two consecutive days. The traveler must be at least forty miles

from the headquarter location or home, whichever is closer, to be reimbursed for

an overnight stay.

b. Foreign and OCONUS Travel

Actual cost of lodging, not to exceed the applicable federal per diem rate (see

Appendix B). For continuous travel of 21 hours or more, one full per diem should

be authorized for M&IE. The per diem must be prorated for travel of less than 21

hours, in accordance with Section V.E.2.c.ii.; however, reimbursement may be

authorized only if the travel involves an overnight stay. A lodging receipt must be

provided or a statement explaining why a receipt is not available, even if the

traveler claims the per diem method of reimbursement.

Appendix E provides additional information on the reimbursement of M&IE

expenses for travel of less than 24 hours.

Payment of Group Subsistence Expenses

The University may negotiate agreements with restaurants, hotels, and similar

establishments to furnish subsistence to a group or groups of University

employees when it is to the University’s advantage. Under such an agreement,

the vendor may be paid either by the group leader or by billing the University.

Reimbursement of such expenses may be claimed by group travelers as follows:

o Group leaders who pay all or part of the group’s expenses may be

reimbursed by submitting a claim for the actual expenses incurred. The

claim must be accompanied by the vendor’s invoice/receipt showing

payment in full.

o Members of a group who have some portion of their subsistence expenses

paid by the group leader may claim reimbursement for the remainder of

their subsistence expenses.

California City and County Transient Occupancy Taxes Exemption

In a limited number of California cities and counties, University employees

traveling on official business are granted an exemption from the payment of

occupancy taxes imposed by these cities or counties on the transient rental of

rooms. Travelers should identify themselves as University employees and claim

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exemption from the tax when checking in. The traveler may be required to

complete an exemption certificate. For additional information regarding the

exemption and a list of cities and counties that grant an exemption, see

Accounting Manual chapter T-182-75, Taxes: Transient Occupancy Taxes.

F. Miscellaneous Travel Expenses

Miscellaneous expenses are reimbursable when they are ordinary and necessary to

accomplish the official business purpose of a trip. The travel expense claim must

include an explanation of why such expenditures are being claimed.

Allowable miscellaneous expenses include the following:

• Business office expenses such as word processing services; equipment rentals;

fax and computer expenses; copy services; overnight delivery/postage; purchase

of materials and supplies, when normal purchasing procedures cannot be

followed; rental of a room or other facility for the transaction of official business;

local and long-distance telephone calls (including one reasonably brief, non-

emergency, personal call home per day); and laundering, cleaning, or pressing

of clothing (if a trip exceeds six days).

• Special fees for foreign travel, including the actual cost of obtaining a passport,

visa, tourist card, and necessary photographs; cost of certificates of birth, health,

identity, and related affidavits; charges for required inoculations and medical

evacuation insurance; currency conversion and check cashing fees; the cost of

traveler’s checks; costs related to hiring guides, translators, and local labor; and

the cost of full collision insurance on automobiles rented in foreign countries (see

Section V.D.3.b.ii. for more information on insurance coverage).

• Registration fees for attendance at conferences, conventions, or meetings of

professional or learned societies.

Actual costs for lodging taxes (not included in CONUS per diem rates). (See Section

V.E.2.a.ii., Long-Term Travel - Assignment of 30 Days or More).

• Charges for checking and storing baggage necessary for the business purpose

of a trip. Excess baggage charges are also allowable; however, justification for

carrying excess baggage must be provided on the travel expense claim.

• The occasional use of a one-day airline or airport membership may be approved,

provided there is a significant business purpose of the use of the membership,

such as a planned meeting or conference call. The cost of the membership is

reimbursable as a miscellaneous travel expense.

• Other ordinary and necessary expenses not included in the above categories.

Effective February 1, 2009.

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G. Intercampus Travel Expenses

The following procedures shall apply to the administration of travel for intercampus

travelers and for visitors from outside the University when the cost of the travel will be

paid by the funding campus (i.e., the host campus):

Funding Campus Responsibilities

a. Travel Funded by a Single Campus

i. Funding Campus

The funding campus (i.e., the host campus) shall be responsible for issuing

cash/non-cash advances if applicable, accepting and approving the travel

expense claim, and reimbursing amounts due the traveler.

ii. Home Campus

Intercampus travelers may use their home campus staff and travel

agencies to make reservations and ticket purchases. Such travelers also

may use their corporate cards to make ticket purchases.

b. Travel Funded by Two or More Campuses

i. Designated Funding Campus

Travel funded by two or more campuses shall be handled by only one

location, which shall be mutually agreed to by the campus departments

involved. The designated funding campus shall be responsible for

administering all aspects of the travel, which includes issuing cash/non-

cash advances, if applicable, and approval and reimbursement of travel

expenses on behalf of the other campus(es). The procedures outlined

above in Section V.G.1.a.ii., Home Campus, also are applicable here.

The agreement to fund travel in this manner shall be initiated by the

designated funding campus and shall be in writing with a copy provided to

each campus accounting office stating either the maximum dollar amount

or the percentage of the total cost to be charged to each campus.

Final Settlement

After final settlement of multi-campus funded travel has been made, the

designated funding campus accounting office shall prepare the appropriate

journals to distribute the travel expenses between the campuses. A copy of

the travel expense claim should be attached to the journals and forwarded

to the other funding campuses as documentation of the expense

reimbursement.

The copy of the travel expense claim shall include the date and check

number (or transaction identification number) of the reimbursement. This

information will be used by the other campus accounting office(s) to

prepare a journal to charge the appropriate account/fund and credit the

designated funding campus control account.

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c. Missing Original Receipts

Reimbursement of travel expenses for which the original receipts have been lost

or are not available must be treated in accordance with the procedures set forth

in Section V.I.2.b, Documentation Requirements. If such expenses are to be

reimbursed, the funding campus department must verify with the traveler's

home campus department that no expense reimbursement has been

authorized that duplicates the expenses to be charged to the funding

campus.

d. Outstanding Cash Advances

If an intercampus traveler does not return an outstanding cash advance within

120 days (see Section V.B.3.d., Unrecovered Advances), the following

procedures shall apply:

• The funding campus accounting office shall charge the funding campus

department for the amount of the advance plus the employer's share of

employment taxes. The accounting office shall notify the funding

department of the amount of the expenses.

• The funding campus accounting office shall send a written authorization

to the home campus accounting office with instructions to report the

advance as additional income to the traveler, and to schedule the

appropriate federal and state income tax and employment tax

withholding.

For travel funded by more than one campus, the amount of the charge

plus the employer's share of employment taxes shall be prorated and

distributed to each campus in accordance with the original agreement.

• The home campus payroll office shall add the amount of the advance to

the employee's Form W-2 as income and schedule the appropriate

amount of federal and state income tax and employment tax

withholding.

Home Campus Responsibilities

Home campus departments and the home campus/medical center controller’s

office must inform their personnel of the following rules:

• Tickets purchased for intercampus travelers shall not be reimbursed by the

home campus if another campus is paying for the travel.

• Cash advances must not be issued to intercampus travelers if the

expenses are to be reimbursed by another campus.

• The traveler must refund an advance to the home campus if the campus

issues a travel advance for travel to be funded by another campus.

Campuses may use a modified version of the foregoing procedures provided the

method used is based on sound internal controls, eliminates duplicative efforts,

and results in improved cost effectiveness.

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H. Special Travel Situations

University Travelers

Travelers in this category include visiting academic appointees, faculty members

on sabbatical leave, students, and post-docs and other non-degree candidates.

Travel expenses for these travelers must be paid, reimbursed, and reported in

accordance with the provisions of this Bulletin.

a. Visiting Academic Appointees

i. General

An academic appointee with a Visiting title who is employed full-time for at

least one quarter may be reimbursed for travel and related expenses

incurred by reason of his or her appointment. Academic Personnel Manual

Section 230, Visiting Appointments, contains information concerning

allowable expenses, limitations, funding, and approval authority.

ii. Authorized Advances

The amount of any authorized advance may not exceed the actual cost of

transportation (which may be prepaid) plus 75% of the anticipated

allowable subsistence and miscellaneous expenses.

iii. Return Travel

After completion of the term of appointment, reimbursement may be made

for return travel to the point of origin or another destination, whichever is

shorter.

b. Faculty Member on Sabbatical Leave

Travel expenses incurred by faculty members on sabbatical leave are

reimbursable if the travel is undertaken to perform study or research that cannot

be done elsewhere. At the discretion of the department, a faculty member may

be reimbursed for additional lodging expenses incurred at the sabbatical

location, less any income received by the individual for renting out his or her

primary residence.

Sabbatical travel expenses are not reimbursable if the travel is for a personal,

recreational, or educational purpose that has no direct relationship to the

individual's area of study.

A faculty member who is on sabbatical leave of less than one year is considered

to be temporarily away from home and therefore may be reimbursed for

reasonable travel expenses incurred at the temporary location, including meals

and lodging (see Section V.E.2.a.ii., Long-Term Travel - Assignments of 30 Days

or More, for more information on temporary travel).

Any sabbatical travel expenses allocable to a spouse or domestic partner or

dependent(s) are considered taxable; accordingly, such expenses may not be

reimbursed (see Section V.H.2.f., Spousal Travel).

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c. Students

A student may be reimbursed for travel expenses when there is a direct

connection between the expense and the business purposes of the University.

Departments may also reimburse students for degree-related educational travel

expenses, i.e., to attend a conference or visit a field site or laboratory facility.

The business purpose of the travel must be substantiated on the travel expense

claim, or other substantiating documentation must be provided, such as a copy

of the meeting/conference program. Travel will be considered to have a

University business purpose if the travel:

• Directly supports a faculty member's project or research program, or

• Is an integral part of the student's degree work, or

• Is required for attendance at student-oriented meetings, student

government events, University athletic events by student athletes, and

the like, or

• Enables the student to attend a conference to present research findings

for the University or to act in some other capacity on behalf of the

University.

Transportation expenses for group travelers may be billed directly to the

University, in accordance with Section V.E.4., Payment of Group Subsistence

Expenses. Travel arrangements should be made through the campus-

designated travel agency.

Student athletes who participate in off-site athletic events are also subject to

NCAA rules and regulations governing travel.

d. Postdocs and Other Non-Degree Candidates

Postdoctoral fellows may be reimbursed for travel expenses if there is a

University business-related reason for the travel, e.g., the individual is required to

present a paper, deliver a speech or lecture, serve on a panel, etc. as an official

representative of the University. The department should substantiate the

University business purpose on the travel expense claim or provide other

documentation, such as a copy of the meeting/conference program.

Such individuals may also be reimbursed for travel related to their training, e.g.,

to visit a field site or an off-campus laboratory. The department must certify that

the travel directly supports faculty research or other scholarly programs.

Non-University Travelers

Travelers in this category include prospective employees, independent

contractors and consultants, inbound travelers hired by the University for a

Travel funded under a scholarship or fellowship is subject to the tax reporting rules set forth in Accounting Manual

Chapter T-182-77, Taxes: Taxation of Scholarship and Fellowship Grants and Educational Assistance.

See Footnote 9.

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temporary assignment at a campus or the LBNL, foreign visiting scholars,

spouses/domestic partners, and other dependents and dependent-care providers.

a. General Regulations

Allowable travel expenses for non-University travelers are subject to the

provisions of this Bulletin. A travel expense claim must be submitted in

accordance with the requirements set forth in Section V.I., Reporting Travel

Expenses. Such reimbursements shall be tax-coded as specified in Accounting

Manual chapter D-371-12.1, Disbursements: Accounting For and Tax Reporting

of Payments Made through the Vendor System.

Travel expenses incurred by non-University travelers shall not be reimbursed

from a University fund source unless the travel has been approved in advance

by the inviting department.

b. Prospective Employees

i. Authorization

The University may reimburse the actual travel expenses related to

interviewing prospective employees, when such expenses are necessary to

acquire key personnel for employment at the University. Authorization shall

be obtained before any commitment to reimburse travel expenses is made

to the prospective employee. Reimbursement of allowable expenses is not

taxable if the expenses are properly substantiated. In addition, at the

Chancellor's discretion, actual travel expenses and dependent care

expenses may be reimbursed for spouses/domestic partners, dependents

and dependent-care providers who accompany candidates for faculty or

high-level administrative positions (including Manager and Senior

Professional positions) on final interviews.

ii. Allowable Expenses

Actual transportation expenses shall not exceed one round-trip coach

airfare between the prospective employee's current residence and the

interview location for each round of interviews. Subsistence and non-

personal miscellaneous expenses also may be reimbursed. Transportation

and lodging expenses for such individuals may be paid directly by the

University. Such travel arrangements should be made by the department

through the campus’ designated travel agency.

c. Independent Contractors and Consultants

Reasonable travel expenses incurred by University-retained independent

contractors or consultants are reimbursable in accordance with this Bulletin.

Such reimbursements are not taxable, provided the amounts claimed are

properly substantiated. Unsubstantiated amounts must be reported as income to

the contractor, on a Form 1099 (see Accounting Manual chapter D-371-12.1,

Disbursements: Accounting for and Tax Reporting of Payments Made through

the Vendor System).

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d. Inbound Travel – Temporary Assignments

Individuals (including employees, independent contractors, and consultants)

hired by the University for temporary assignments that do not last more than one

year may be reimbursed for travel expenses, including meals and lodging. Such

individuals must incur lodging expenses that duplicate the expenses of a

permanent residence in another location and satisfy one of the following

criteria:

• The traveler has a member or members of his or her family currently

residing at the permanent home; or

• The traveler intends to return to the vicinity in which his or her claimed

residence is located.

The reimbursement for lodging shall be reduced by any amount received by the

traveler for renting out his or her primary residence.

Inbound travel is subject to the provisions for outbound travelers outlined in

Section V.E.2., Travel in Excess of 24 Hours. Inbound travel in excess of one

year is subject to the provisions contained in Section V.E.2.a.iii., Indefinite Travel

- Assignments That Exceed One Year.

e. Foreign Visiting Scholars

A foreign visiting scholar who is an employee of another entity (e.g., a foreign

university) may be reimbursed for substantiated travel expenses. Such amounts

are excludable from the individual's income, are not reported as compensation,

and are exempt from withholding and payment of employment taxes.

A foreign visiting scholar who is an independent contractor may be reimbursed

for travel expenses provided the expenses are properly substantiated and the

amount of the reimbursement does not exceed the substantiated expenses. If

these requirements are met, such payments are not subject to withholding or

reporting.

Payments to foreign visitors, including advances for airfare, cash advances, and

reimbursements for travel expenses, may be restricted by the visitor's visa status

or other requirements established by the Department of Homeland Security. In

most cases, additional documentation must be provided by the visitor in

advance of reimbursement. Refer to Accounting Manual chapter, T-182-27,

Taxes: Federal Taxation of Aliens, for more information.

f. Spouse, domestic partner, dependent, and dependent-care provider

travel

i. Reimbursement of expenses for bona fide University business travel

purpose

The travel expenses of a spouse/domestic partners who accompanies a

University business traveler (e.g., the President, Provost, Senior Vice

President, Vice Presidents, Chancellors, Laboratory Directors, Principal

Officers of The Regents, or other employees as approved by the

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Chancellor) are reimbursable under this Bulletin, provided it can be

established that the spouse or domestic partner's presence serves a bona

fide University business purpose.

Under IRS regulations, the travel expenses of a spouse or domestic

partner are not taxable, provided it can be established that his or her

presence serves a bona fide business purpose. A spouse or domestic

partner who attends a function is considered to have a business purpose if

he or she has a significant role in the proceedings or makes an important

contribution to the success of an event. Generally, protocol or tradition

dictates when the participation of a high-level official's spouse or domestic

partner is required at official University functions, such as alumni

gatherings, fund-raising or ceremonial activities, certain athletic events (see

below), and community events. Documentation should be provided with the

travel expense claim to show that the spouse or domestic partner's

attendance at the function meets the above conditions (e.g., an event or

meeting agenda, or a letter of invitation requesting that the spouse or

domestic partner attend the meeting or event).

If a spouse or domestic partner has no significant role in the proceedings,

or performs only incidental duties of a social or clerical nature, attendance

does not constitute a bona fide business purpose. Such expenses are

taxable to the employee and therefore may not be reimbursed under this

policy.

In accordance with the Policy on Associate of the President/Chancellor, an

Associate may be reimbursed for expenses related to the use of a personal

automobile for University business purposes at the basic mileage rate

specified in Appendix A.

ii. Reimbursement for travel expenses of a spouse, domestic partner,

dependents, or dependent-care provider

Reimbursement of travel expenses, including dependent care expenses for

a spouse, domestic partner, dependent-care provider and dependents who

accompany an employee or candidate for employment on bona fide

University business travel may be allowed in limited circumstances when

pre-approved by the Chancellor, Executive Vice Chancellor/Provost, Dean,

Director, Department Chair, or other senior University officer, as designed.

See Section VII., Frequently Asked Questions, for examples of limited

circumstances that might be allowed. Reimbursement of expenses related

to dependent care provided outside of normal working hours while an

employee or candidate for employment is traveling on bona fide University

business may be allowed in limited circumstances when pre-approved by

the Chancellor, Executive Vice Chancellor/Provost, Dean, Director,

Department chair, or other senior University officers as designated.

Reimbursable expenses that do not have a clear University business

purpose are taxable. Reimbursements under this policy for dependent(s)

travel expensesand/or dependent(s) care are taxable.

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Funding. Spouse, domestic partner, dependent-care provider and dependent

travel expenses may not be charged to either federal or state funds. For travel

charged to a contract or grant fund, the traveler should check with the contract or

grant sponsor whether these travel expenses are permitted under any special

provisions of the contract or grant. Various non-state and non-federal funds

controlled by the University may be used to fund spouse, domestic partner,

dependent-care provider and dependent travel, but only within the restrictions, if

any, governing the use of the fund and within the policy set forth in this Bulletin.

See Section VII Frequently Asked Questions for more details.

g. Athletic Travel – Spouse or Domestic Partner and Other Family Members

Travel by a spouse or domestic partner who accompanies an athletic director (or

assistant director or head coach) to sporting events such as bowl games and

tournaments is presumed to have a bona fide University business purpose (see

Section f, Spouse or domestic partner Travel, above) in situations where the

NCAA or potential donors expect that certain high-ranking members of the

athletic department, and their spouse or domestic partner, will participate in

events associated with these athletic activities. The travel expenses of a spouse

incurred in the pursuit of such activities may be reimbursed provided

documentation, such as an NCAA event agenda, is provided to substantiate the

business purpose of the travel. Such amounts are not taxable or subject to

reporting.

Travel expenses incurred by other family members generally do not satisfy the

bona fide University business purpose test and therefore are not reimbursable;

however see section VI.F.ii and the FAQs in section VII for special

circumstances where such expenses might be reimbursed but still treated as

taxable.

Refer to Section f above for information on funding sources for spouse or

domestic partner travel.

I. Reporting Travel Expenses

A travel expense claim (Form U85 or an equivalent, or an electronic version) shall be

used to account for all travel advances and expenses incurred in connection with

official University travel. When properly completed and approved, this form is used to

reimburse the traveler for any additional amounts due. A travel expense claim must

be processed even if no reimbursement is due the traveler.

Reporting Period

The travel expense claim must be submitted to the disbursements/travel

accounting office (or equivalent office on campus) within a reasonable amount of

time not to exceed 45 days after the end of a trip unless there is recurrent local

travel, in which case claims may be aggregated and submitted monthly. [If a

Travel Card is used, campuses have the discretion to require a shorter time frame

for submission of the travel expense claim]. When a trip lasts more than 90 days,

the traveler must submit a quarterly report of expenditures to the

disbursements/travel accounting office. Travel reimbursement requests submitted

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after 45 days are left to the discretion of the campus, considering the facts and

circumstances, whether the reimbursement will be made and if any reporting as

taxable income will be required. See section II.B.1 of Accounting Manual Chapter

D-371-12.1, for the proper reporting of taxable travel reimbursements to both

employees and nonemployees.

Completion of a travel expense claim

The total amount of all expenses and advances pertaining to a particular trip must

be accounted for when submitting a travel expense claim. Except for trips that

require quarterly reporting, all expenditures for a trip should be reported on one

travel expense claim. Supplemental claims may be submitted if necessary, but

must be clearly marked "Supplemental" and must identify the main travel claim

submitted in connection with the travel.

a. Substantiation of Expenses

Substantiation must include the following:

• The date and time of departure from and return to the traveler's

headquarters or residence. When any personal leave is taken while on

official travel status, the number of personal days must be specified on

the travel expense claim and/or the expenses associated with such

personal days of travel. Note that any personal expenses incurred in a

trip will not be reimbursed by the University. Mandatory charges

imposed by the hotel, such as valet parking or a “resort fee” should be

explained on the travel reimbursement request.

• The origin and destination of the trip and the route taken. Travel within a

local area also should be indicated; continuous travel between major

points, such as from city to city, should be shown separately. Any

substantial deviation from the distance shown in a standard highway

mileage guide must be explained.

• The purpose for the travel or the nature of the business benefit derived

as a result of the travel.

• The amount of each expense listed by date and location.

Claims for reimbursement of expenses paid for others shall be submitted by the

group leader and must include the names of persons on whose behalf expenses

were incurred, an itemization of the expenses, and other pertinent supporting

documentation. (For additional information on group expenses, see Sections

V.E.2.c.iii., Adjustment for Subsistence or Lodging Provided Without Charge, and

V.E.4., Payment of Group Subsistence Expenses). It is required that the traveler

seeking reimbursement include a written “business purpose” for the travel along

with the other supporting documentation.

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b. Documentation Requirements

i. Receipts

The original of the following receipts must be submitted with the travel

expense claim:

• Receipts for all airline expenses.

• Receipts for all lodging expenses incurred for domestic travel,

except where per diems are authorized for lodging expenses (i.e.,

long-term travel, use of non-commercial facilities, etc.). Since hotel

receipts may include charges that are not reimbursable, the traveler

shall not be reimbursed for lodging expenses unless the receipt

presented by the traveler contains itemized charges for the room,

e.g., taxes, telephone, etc.

• Receipts that support the reimbursement claim for long-term foreign

lodging that is charged to a federal fund source (whether reimbursed

as a per diem or actual), should be kept on file within the department

and retained for such periods as required by either the sponsor’s

retention policy or UC retention policy.

• Receipts for all rental car expenses.

• Receipts for meal expenses of $75 or more.

• Receipts for local transportation costing $75 or more.

• Receipts for each miscellaneous expense of $75 or more.

• Receipts for all private aircraft landing and parking expenses.

• Receipts for all extraordinary items, such as repair of accidental car

damage, supported by appropriate justification.

• Receipts for gifts provided to a host costing $25 or more.

• An agenda, itemized receipt, or other supporting documentation for

all registration fees.

• Any reimbursable item not specified above costing $75 or more.

Electronic Receipts. Electronic receipts are acceptable provided that the

detail contained in an electronic receipt is equivalent to the level of detail

contained in an acceptable paper record. For example, an electronic

receipt must show the name of the payee, the amount of the charge, the

transaction date, and the form of payment. When required to ensure

adequate documentation of the costs incurred, the traveler is responsible

for providing additional detail, e.g., a receipt with itemized hotel charges.

E-mailed or faxed documentation provided by an airline or travel agency for

electronic ticketing expenses for airfare is acceptable for substantiating

such expenses. A copy of the faxed itinerary and receipt or a copy of the e-

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mail itinerary and receipt printed locally should be attached to the Travel

expense claim.

Travel Packages Purchased from Internet Vendors. Travel "packages"

offered by Internet vendors typically do not include itemized expenses.

Therefore, no business-related travel should be booked through such

vendors unless the traveler has confirmed that each aspect of the package

will be separately itemized (e.g., itemized hotel charges, airfare, car rental,

etc.) to assure appropriate documentation for reimbursement.

ii. Missing Original Receipts

When original receipts are required but cannot be obtained or have been

lost and all measures to obtain a duplicate receipt have been exhausted, a

statement should be provided explaining why such receipts are not being

submitted with the travel expense claim. The statement must include a

certification that the amount shown is the amount actually paid and that the

traveler has not and will not seek reimbursement from any other source.

iii. Agenda

Depending upon the nature of the trip, an agenda associated with the

business reason for the trip should be provided as part of the substantiating

documentation.

c. Certification of Travel Expenses

The traveler must either sign or provide an electronic equivalent on the travel

expense claim certifying that the amounts claimed are a true statement of the

expenses incurred on official University business and that the original of all

required receipts has been submitted, whether scanned or faxed. Internal

departmental expense claim forms are not an acceptable alternative for obtaining

the traveler’s signature on the travel expense claim (or electronic equivalent),

unless approved as an exception to this policy. The traveler’s signature or

electronic submission acts as certification of the following:

• The University is not being charged for any expenses already

reimbursed by a third party entity directly to the traveler, and

• Any expenses charged to the University that are reimbursed by a third

party entity will be returned to the University by the traveler.

Submission of the travel expense claim under a traveler’s electronic

authorization will be considered certification that the traveler incurred the

expenses being claimed. In accordance with IRS regulations, an electronic

signature must:

• Identify the traveler who is submitting the electronic form;

• Authenticate and verify the submission; and

• Be the final entry in the submission.

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Return of Excess Advance Amounts

If the amount of an advance exceeds the reimbursable expenses, payment for the

amount due shall be submitted with the travel expense claim. The check must be

made payable to "UC Regents."

VI. RELATED INFORMATION

Academic Personnel Manual

• Section 190 - Appendix D, Policy Governing Travel to Scholarly Meetings and Field

Research Travel

• Section 230-20.h., Travel Expenses for Appointees to Visiting Titles

• Section 540, Recruitment: Travel Expenses

• Section 570, Recruitment: Travel Expenses for Short-term Appointees on

Extramurally Funded Projects

• Section 740, Benefits and Privileges: Leaves of Absence/Sabbatical Leaves

Accounting Manual

• D-371-12.1, Disbursements: Accounting for and Tax Reporting of Payments Made

through the Vendor System

• E-821, Loaned Automobiles Provided by a Third Party

• P-196-11, Payroll: Accounting for and Tax Reporting of Mandatory Deductions and

Insurance Benefit Contributions

• R-212-2, Receivables Management

• T-182-75, Transient Occupancy Taxes

• T-182-27, Taxes: Federal Taxation of Aliens

• T-182-77, Taxes: Taxation of Scholarship and Fellowship Grants and Educational

Assistance

Business and Finance Bulletins

• BUS-43, Materiel Management

• BUS-46, Use of University Vehicles

• BUS-63, Insurance Requirements and Certificates of Insurance

• BUS-79, Expenditures for Business Meetings, Entertainment, and Other Occasions

• BUS-81, Insurance Programs

• G-13, Policy and Regulations Governing Moving and Relocation

• U.S. General Services Administration Website, Privately Owned Vehicle (POV) Mileage

Reimbursement Rates Webpage.

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• Regent action specifying that travel expenses incurred by Regents for attending Board

or Committee meetings or in the performance of other University business be

reimbursed in conformance with the University Policy and Regulations Governing

Travel, October 15, 1982.

• Regents Policy 7709, Senior Management Group Automobile Allowance.

• President's letter to Vice President--Financial and Business Management delegating

authority for establishing and publishing travel policies, December 1, 1982 (DA0755).

• Senior Vice President--Administration's letter to University Controller delegating

authority for establishing and publishing implementing procedures and regulations, May

23, 1991.

• Presidential Policy on Associate of the President/Chancellor, July 1, 1995.

• President’s letters to Chancellors, June 22, 2009.

Per Diem Rates

• Maximum Travel Per Diem Allowances for Foreign Areas, Section 925, Supplement

to the Standardized Regulations, (Government Civilians, Foreign Areas) U.S. State

Department.

• Prescribed Maximum Per Diem Rates for CONUS, GSA Office of Government wide

Policy.

• Official Department of Defense Overseas/OCONUS Per Diem Rates, Per Diem,

Travel and Transportation Allowance Committee.

Internal Revenue Service (IRS)

• Internal Revenue Code Section 62 Adjusted Gross Income Defined

• Internal Revenue Code Section 152(c) and 152(d) Definition of Dependent

• Internal Revenue Code Section 274 Disallowance of Certain Entertainment, etc.,

Expenses

• Treasury Regulation Section 1.62-2, Reimbursements and Other Expense

Allowance Arrangements

• Treasury Regulation Section 1.274-5, Substantiation Requirements

• Treasury Regulation Section 1.274-5T, Substantiation Requirements (Temporary)

• IRS Revenue Ruling 2003-106, 2003-2 CB 936, 10/20/2003, Adjusted Gross

Income—Expense Reimbursement Arrangements—Accountable Plan

• IRS Revenue Ruling 2012-25, 2012-37 IRB 337, Gross Income—Wage

Recharacterization—Reimbursement Arrangements

• IRS Revenue Procedure 97-22, 1997-13 IRB, Electronic Record Retention Rules

• IRS Revenue Procedure 98-25, 1998-1 CB 689, Recordkeeping requirements—

Automatic Data Processing (ADP) System Requirements

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• IRS Revenue Procedure 2010-51, 2010-51 IRB 883, Business use of auto—

application of optional standard mileage rates for 2011

• IRS Notice 2019-2, 12/14/2018

• IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses

Other

• UC Travel Management Services (May 11, 2006)

• Federal Travel Regulation, Chapter 301

• NIH - Fly America/Open Skies policy (see section 7.9.1 “Travel/Employees”)

• GSA Bulletin FTR 11-02, October 06, 2010

• Code of Federal Regulations (CFR sections 200.474 and 200.432)

VII. FREQUENTLY ASKED QUESTIONS

Dependent Care Expenses and Dependent Travel Expenses

What are the types of limited circumstances that reimbursement might occur?

Examples of the type of circumstances that a Chancellor might determine a

reimbursement are appropriate include:

1. Two UC employees with joint dependent care responsibilities are on University

business (e.g., conference, meeting, training, etc.);

2. An employee on University travel status has a dependent who requires twenty-

four hour care;

3. Prospective faculty on the final interview needs to bring their dependent(s) to the

interview.

How are state funds defined?

“State funds” include funds in the following fund group codes:

• 401 – General Funds (fund numbers 199XX, excluding UCGF)

• 40411 – State Specific Funds (fund numbers 18000-18069)

• 41412 – State Special Funds (fund numbers 18070-18199)

• 40421 – State Contracts, Grants, and Cooperative Agreements (fund numbers

designated by campus)

• 1003 – Plant Funds State Appropriations (fund numbers 00800-00999)

Campuses should consult with their respective budget offices to determine the funds

that fall within the fund groups mentioned above.

Note that approximately 45% of the Systemwide Assessment Fund (Fund 69085)

is from state funds. Therefore, for purposes of AB 1887 compliance (section III.E,)

fund 69085 may be used to reimburse otherwise allowed travel to one of the

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states listed on the California Attorney General’s website as long as the total

expenditures for a department’s travel to any of these states do not exceed 55%

of the department’s total 69085 fund allocation.

What expenses are covered under a federal fund souce?

Dependent care costs can only be charged to federal funds if they are above and

beyond regular dependent care that directly results from travel to a conference for

the federal award and are temporary during the travel period. This is subject to the

circumstances where such expenses can be reimbursed as determined by the

Campus Chancellor. The travel expenses of the dependent can’t be charged to a

federal fund.

How is “conference” defined in the Uniform Guidance?

Conference is defined in UG Section 200.432: “a meeting, retreat, seminar,

symposium, workshop or event whose primary purpose is the dissemination of

technical information beyond the non-Federal entity and is necessary and

reasonable for successful performance under the Federal award.

How is a dependent defined for purposes of charging federal fund source?

Internal Revenue Code Section 152(c) defines “dependent” as either a qualifying

child or a qualifying relative.

1. Foreign Travel Related qualifying child is an individual-

A. Who has a relationship with the taxpayer as-

I. A child of the taxpayer or a descendant of the taxpayer’s child, or

II. A sibling or stepsibling of the taxpayer or descendant of the taxpayer’s

sibling or stepsibling,

B. Who has the same principal housing residence as the taxpayer for more

than 6 months in a calendar tax year,

C. Who is-

I. Under 19 years of age, or

II. Is a student under 24 years of age,

D. Who received more than 50% of support from the taxpayer for the calendar

tax year, and

E. Who has not filed a joint return with the individual’s spouse (other than for a

claim of refund). I.R.C. § 152(c).

2. Qualifying relative is an individual-

A. Who is related to the taxpayer as-

I. A child or a descendant of a child,

II. A brother, sister, stepbrother, or stepsister,

III. The father or mother, or an ancestor of either,

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IV. A stepfather or stepmother,

V. A son or daughter of a brother or sister of the taxpayer,

VI. A brother or sister of the father or mother of the taxpayer,

VII. A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-

law, or sister-in-law, or

VIII. An individual who has the same principal housing residence as the

taxpayer for the taxpayer's calendar tax year,

B. Whose gross income for the calendar tax year is less than the personal

exemption under I.R.C. § 151(d),

C. Who received more than 50% of support from the taxpayer for the calendar

tax year, and

D. Who is not the taxpayer’s qualifying child during any time of the calendar

tax year. I.R.C. § 152(d).

Foreign Travel Questions:

• How will it be determined that a trip will be primarily for personal reasons?

In accordance with IRS regulations, the presumption is that if the time spent on

personal activities exceeds 50% of the total time, the trip will be treated as

primarily personal unless there are other factors that would cause the trip to be

treated as primarily business.

• What are the four situations where the special allocation formula for foreign travel

(see section V.E.2.b) does not apply to nonbusiness expenses incurred in foreign

travel?

Even if you did not spend your entire time on business activities, your trip is

considered entirely for business if you meet at least one of the following four

exceptions:

Exception 1: No Substantial Control. A trip is considered entirely for business if

you did not have substantial control over the arranging of the trip. The fact that

you control the timing of the trip does not, by itself, mean you have substantial

control over the arranging of the trip. You do not have substantial control if you

are: a). an employee who was reimbursed or paid a travel expense allowance;

and b). are not related to your employer; and c). are not a managing executive

who has the authority and responsibility, without being subject to veto by another,

to decide on the need for business travel.

Exception 2: Travel Outside the United States for No More than One Week. A

trip is considered entirely for business if you were outside the United States for a

week or less, combining business and nonbusiness activities. A week means

seven consecutive days; in counting the days, the day you left the United States is

not counted, but the day that you return to the United States is counted.

Exception 3: Less than 25% of Time is Spent on Personal Activities. A trip is

considered entirely for business if: a). You were outside the United States for

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more than one week, and b). You spent less than 25% of the total time you were

outside the United States on nonbusiness activities. For this purpose, count both

the day your trip began and the day the trip ended.

Exception 4: Vacation is Not a Major Consideration. A trip is considered

entirely for business if you can establish that a personal vacation was not a major

consideration, even if you have substantial control over the arranging of the trip.

VIII. REVISION HISTORY

7/1/2019: Delegation to Chancellor or other University official to reimburse, in limited

circumstances, spouse/domestic partner, dependent-care provider, and dependent travel

expense or dependent-care expenses related to employee’s or employment candidate’s

University travel.

1/31/2019: Change in mileage reimbursement rate in accordance with IRS Notice 2019-

4/30/2018: Change in mileage reimbursement rate in accordance with IRS Notice 2018-

10/15/2017: Change in mileage reimbursement rate in accordance with IRS Notice 2016-

79; revised language concerning payment of travel reimbursed by third parties; revised

language on direct bill of rental cars; and direct billing of rental cars. Clarified ancillary

charges for airfare and base and economy fares. Provided a definition of state funds and

referenced state law AB 1887. Revised the maximum daily meals and incidental

reimbursement for CONUS travel under 30 days to $62 and instituted $275 dollar limit on

daily lodging reimbursement in CONUS under 30 days.

This Policy was remediated to meet Web Content Accessibility Guidelines (WCAG) 2.0.

3/1/2016: Change in mileage reimbursement rate to correlate with IRS Notice 2016-1.

Reformatted to the new policy template. Increase in domestic daily meals and incidental

reimbursement rate to $74 per day in accordance with IRS Notice 2015-63.

4/13/2015: Change in mileage reimbursement rate to correlate with IRS Notice 2014-79

& 2014-114; reduce time period for a traveler to substantiate business travel to forty-five

days from sixty-days; receipts for long-term foreign lodging should be retained at the

campus department level to reflect outcome of NSF audit; and consistent use of the term

“spouse and domestic partner”.

1/28/2014: Change in mileage reimbursement rate for business use of a private

automobile and travel reimbursements for international and domestic travel as requested

by Bureau of State Auditor.

4/1/2013: Change in mileage reimbursement rate to conform to IRS notices; lodging

within U.S. should be reasonable for location of travel; recommend that travelers be cost-

conscious when traveling to the airport or parking at the airport; business purpose

requirement stated in travel expense claim; specified that traveler must be forty miles or

more from the headquarters or home, whichever is closer, before overnight lodging is

reimbursed.

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3/30/2012: Reformatted policy into the new template; increase to $71 per day for meals

and incidental expense reimbursement rate within continental U.S.

7/1/2011: Minor technical changes5/7/2010: Information on the “Open Skies Agreement;”

guidance on prepaid expenses and direct billing arrangements, and refueling and GPS

devices in rental cars. Elimination of the rule limiting reimbursement of long-term

subsistence expenses to 55% of the federal per diem and allowing 100% of the per diem

for location of travel.

4/9/2008: Update to indicate that there is no exception to the daily meals and incidental

reimbursement cap for travel less than thirty days within the continental U.S, and that the

daily meals and incidental rate is not meant to be a per-diem. Travelers are encouraged

to purchase travel services through preferred suppliers, and prospective employees can

be reimbursed for one round- trip coach airfare for each round of interviews.

9/12/2007: Revised

10/1/2006: Revised

5/1/2005: Revised

1/1/2003: Revised

8/6/2001: Revised

12/15/2000: New section on special travel situations added; ethics statement regarding

traveler’s responsibility with respect to reporting travel expenses; insurance requirements

for use of private automobile on University business, and

10/21/1997: Revised

8/29/1997: Revised

12/15/1995: Revised

8/1/1994: Revised

7/1/1992: Revised

6/15/1989: First Published

IX. APPENDIX

APPENDIX A: MILEAGE REIMBURSEMENT RATES FOR PRIVATE VEHICLES AND

AIRCRAFT

The following mileage reimbursement rates shall be used to reimburse travelers who use

a private automobile or aircraft on official University business:

Per Mile

A. Automobiles--employee-owned/procured (including vans)

• Standard Rate for business-related travel is 58.0¢†.

• Standard Rate for travel in connection with a move or relocation is 20.0¢†.

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B. Automobiles loaned to the University for assignment to employees (including vans) is

32¢†. Refer to Accounting Manual chapter E-821, Loaned Automobiles Provided by a

Third Party.

(Standard mileage rate of 58 cents per mile, less 26 cents per mile depreciation

component published by IRS Notice 2019-2 and in accordance with Revenue

Procedure 2010-51)

C. Aircraft (based on the rate published by the General Services Administration) is

$1.26, effective January 1, 2019.

Note: The above rates may not apply to University employees covered under a collective

bargaining agreement.

†Effective January 1, 2019

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APPENDIX B: LODGING AND M&IE REIMBURSEMENT CAPS

The following chart summarizes the applicable reimbursement methods and the

maximum rates authorized for lodging and meal and incidental expenses (M&IE)

incurred while on travel status:

You may click on the links above to obtain the per diem rates.

Travel within the continental United States.

CONUS meal rate for travel under 30 days effective October 15, 2017.

Actual lodging expenses for location of travel up to $275 per night supported by a receipt are reimbursable effective

October 15, 2017.

Travel within Alaska, Hawaii, Puerto Rico, the Northern Mariana Islands, and possessions of the United States.

Use per diem rate for appropriate geographic area (applies to CONUS, OCONUS, and foreign areas).

Less Than 30

days

30 Days or More In Excess of One

Year

CONUS:

Daily M&IE and

Lodging

M&IE: Up to $62

Lodging: Actual

costs for the

location of travel up

to $275 per night

Actual up to 100%

of combined Per

Diem

Per Diem (up to

150% of 30-day Per

Diem)

OCONUS

Daily M&IE and

Lodging

Actual up to 100%

of combined Per

Diem

Actual up to 100%

of combined Per

Diem

Per Diem (up to

150% of 30-day Per

Diem)

Foreign

Daily M&IE and

Lodging

Actual up to 100%

of combined Per

Diem

Actual up to 100%

of combined Per

Diem

Per Diem (up to

150% of 30-day Per

Diem)

Non-Commercial

Facility Daily

Expenses

Actual up to 100%

of combined Per

Diem

Actual up to 100%

of combined Per

Diem

Per Diem (up to

150% of 30-day Per

Diem)

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APPENDIX C: IRSTAX GROSS-UP FORMULA

Under the IRS one-year rule, travel expense reimbursements for assignments that

exceed one year must be treated as taxable income. Thus, to compensate for additional

federal and state income and applicable employment taxes owed by an employee, the

reimbursement rate may be increased up to 150% of the applicable federal per diem rate

authorized for the location of travel (see Section V.E.1.).

Following are two examples of the gross-up procedure for a trip of more than one year.

In both examples, the daily reimbursement rate is based on 100% of the CONUS

Maximum Per Diem rate of $166 for the X area.

Example 1: Salary Subject to Social Security Tax

This example is based on the following assumptions:

• 15% federal income tax rate plus 5.1% California income tax rate [6% less 15%

Federal tax benefit]

• 1.45% Medicare rate

• 6.2% Social Security rate

The Gross-Up Formula is applied to the $166 daily reimbursement rate as follows, where

W equals Gross-Up Amount

W = $ 229.76 or 138% of the daily reimbursement rate

Example 2: Salary Exceeds Social Security Wage Base

This example is based on the following assumptions:

• 28% federal income tax rate plus 6.7% California income tax rate [9.3% less 28%

federal tax benefit]

• 1.45% Medicare rate

The Gross-Up Formula is applied to the $166 daily reimbursement rate as follows, where

W equals Gross-Up Amount

W = $ 259.98 or 157% of the daily reimbursement rate

The maximum amount reimbursable in this situation would be $249.00 (150%), unless the Chancellor grants an

exception to the policy.

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APPENDIX D: PRORATING PER DIEMS FOR TRAVEL INVOLVING MULTIPLE

LOCATIONS

The following method may be used to prorate a per diem(s) when a trip is reimbursable

under more than one per diem rate.

The first leg of a trip shall begin upon the traveler’s arrival at the first business stop and

shall end upon his or her departure for the next travel location; the last leg shall begin

upon the traveler’s departure from the previous travel location and shall end upon his or

her departure for the return trip to headquarters. The time element charged to each per

diem location is prorated based on the number of hours spent at each travel location.

For partial days, hours should be rounded to the nearest quarter day.

Example: A trip that involved three locations with three different per diem rates took a

total of 237 hours, excluding air travel time from headquarters to the first business

location and the traveler's return from the last travel location to headquarters. The time

spent at each location was as follows: 53 hours, 145 hours, and 39 hours. The

reimbursable amount of the per diem for each location is calculated as follows:

Hours Per

Location

Quarter

Days

Location Per

Diem Rate

Reimbursable

Amount

Location 1 53 2 ¼ 140 $315.00

Location 2 145 6 152 $912.00

Location 3 39 1 ¾ 168 $294.00

TOTAL 237 $1,521.00

APPENDIX E: TRAVEL OF LESS THAN 24 HOURS M&IE REIMBURSEMENTS

The IRS Taxable Fringe Benefit Guide (“IRS Guide”) states that in order for the

reimbursement of meals and incidental expenses (M&IE) to be excludable from a

traveler’s income, the individual must be “away from home” in the pursuit of business on

a temporary basis. Merely working overtime or at a great distance from an employee’s

residence does not create excludable reimbursements for travel expenses if the

employee returns home without spending the night or stopping for substantial “sleep or

rest.”

Section V.E.3. prohibits the reimbursement of meal expenses for travel of less than 24

hours unless the traveler is away from his or her home overnight as supported by a

lodging receipt or other evidence explaining why the traveler was unable to obtain a

receipt.

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The following examples from the IRS Guide illustrate the application of the “overnight

rule”:

Example 1: A consulting engineer works with clients in a three-state area by making

one-day trips to each client. She frequently leaves home at 6:30 a.m. and does not

return until midnight. During the day, she stops in a rest area and closes her eyes for 20

minutes to refresh herself for the drive. She cannot deduct the cost of her meals on

these trips because she is not away from home long enough to obtain substantial sleep

or rest.

Example 2: An employee is required to travel from Milwaukee to Madison to work on a

Project. She leaves home at 11:00 a.m. on Monday, with plans to return home the same

day. She is unable to complete the project on Monday, so she spends the night in

Madison. After completing the project the next day, she returns to Milwaukee by 10:30

a.m. Even though the employee had not planned to spend the night and is gone for less

than 24 hours she has met the “away from home” rule because she spent the night

away from her tax home on business.

Example 3: An employee is required to travel from Dallas to Houston to work for the

day. The employee leaves home at 6:30 A.M. and returns that night at 10:00 P.M. On

the trip home the employee stops for dinner and rests in the car for two hours. Even

though the employee has been away from home for substantially longer than his/her

normal work day, the employee is not considered to be in travel status. Courts have

ruled that stopping for a meal or a rest in a car does not meet the substantial "sleep or

rest" rule.

Example 4: A government agency supplies office equipment to all agencies within the

state. An employee drives a tractor-trailer with equipment from the warehouse in

Sacramento to an agency in San Diego. After 10 hours the driver stops and rents a

room at a rest stop for a four hour nap before completing the round trip. Since the driver

rented a room in order to sleep, he/she is considered to have met the "sleep and rest"

rule. Reimbursements for meals and lodging are not taxable to the employee.