T & E Training

1. T & E Training Survey of UC Policies & Procedures Practical Applications at UCSB FALL 2006

2. SCOPE This presentation outlines UC’s Business and Finance Bulletins G-28, Policy and Regulations Governing Travel G-28, Travel Policy Summary G-13 - Policy & Regulations Governing Moving & Relocation BUS-79, Expenditures for Entertainment, Business Meetings, and Other Occasions Click on hyperlinked text to see relevant sections of policy and procedure, tables, forms, etc. T & E Policies & Regulations

3. AUDIT FINDINGS • Inability to Track Travel Cost [and advances] by Individual Trip • Exceptional Travel Expense [not adequately justified] • Frequency of UC Employee Only Meals • Incomplete or Missing Documentation • Delegation of Authority for Exceptions [unclear] • Inadequate Documentation of Business Purpose • Use of Per Diem in Lieu of Actual Meal Expenses • Failure to Use Entertainment Form for Recharge Activities • Lavish Entertainment Expense under the Circumstances • Alcoholic Beverages Charge to Inappropriate Fund Source • Incomplete Guest List • Inappropriate Assignment of Official Host • Self or Subordinate Approval of Expenses • Expense with the Appearance of a Personal Nature T & E Policies & Regulations

4. I. REFERENCESTravel • ACADEMIC PERSONNEL MANUAL • Scholarly Meetings • Field Research • Appointees to Visiting Titles • Recruitment • Leaves of Absence/Sabbatical T & E Policies & Regulations

5. I. REFERENCESTravel • ACCOUNTING MANUAL • Transient Occupancy Taxes • Federal Taxation of Aliens • Taxation of Scholarship and Fellowship Grants and Education Assistance • BUSINESS & FINANCE BULLETINS (BFB) • Entertainment • Policy & Regs on Moving and Relocation T & E Policies & Regulations

6. REFERENCESTravel • U.S. DEPARTMENT OF STATE • Per Diem Rates and Maximum Allowances • The University uses the Federal rates • See link to Federal tables at [link] • INTERNAL REVENUE SERVICE • Documentation, Substantiation Standards • Electronic records and retention rules • Itemized, original receipts T & E Policies & Regulations

7. II. DEFINITIONSTravel • Business Purpose – activities that contribute to any of the University’s major functions of teaching, research or public service • M&IE Reimbursement Cap – the maximum for daily meal and incidental expenses for CONUS (continental U.S.) travel of less than 30 days – not a per diem as only actual expenses are reimbursable T & E Policies & Regulations

8. II. DEFINITIONSTravel • Per Diem – the daily subsistence allowance authorized by Federal CONUS, OCONUS & Foreign location tables • Requires no receipts • Authorized for • foreign travel, • OCONUS (Alaska, Hawaii, U.S. possessions) travel, • domestic travel assignments of 30 days or more, • domestic travel assignments exceeding one year • Consists of lodging and M&IE • M&IE includes fees, tips, local transportation, mailing costs • Taxes on lodging not included, reimbursed separately Per Diem – also a reimbursement CAP for actual M&I(cap is highest domestic CONUS (continental U.S.) per diem rate) • Less then 30 days: up to 100% of cap for actual M&IE, excluding lodging • 30 days or more: up to 55% of cap for actual M&IE and actual lodging T & E Policies & Regulations

9. II. DEFINITIONSTravel • Reporting Period – the 21 day period within which a Travel Expense Voucher must be submitted • Travel Expense – those that are ordinary and necessary to accomplish business purpose • Travel Status – period during which traveler is on official University business is outside vicinity of headquarters or residence T & E Policies & Regulations

10. III. UNIVERSITY TRAVEL POLICY • SCOPE – applies to all official University travel even if Federally funded – extramural terms govern only if more restrictive than UC policy – campuses may adopt more restrictive procedures • AUTHORITIES – this Bulletin is issued under a Presidential delegation to Senior Vice President—Business and Finance – implementing regulations delegated to Vice-President—Financial Management T & E Policies & Regulations

11. III. UNIVERSITY TRAVEL POLICY • POLICY– all official UC travel • shall be properly authorized, reported and reimbursed in accordance with this Bulletin (BFB G-28) • shall not include personal expenses, even if only temporarily funded • shall conform to normally accepted standards of propriety • shall be reported in a responsible and ethical manner T & E Policies & Regulations

12. III. UNIVERSITY TRAVEL POLICY • POLICY– IRS conformity • Reimbursement procedures designed to conform to IRS substantiation rules • 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 • Certain travel expenses under BFB G-13,Policy and Regulations Governing Moving and Relocations T & E Policies & Regulations

13. III. UNIVERSITY TRAVEL POLICY • EXCEPTIONS to this policy • May be authorized by the Chancellor or his designee • May be granted under extenuating circumstances which must be documented and deemed ordinary and necessary under the circumstances T & E Policies & Regulations

14. IV. APPROVAL OF TRAVEL • Must be impartial • Traveler cannot approve own reimbursement • Employee shall not approve travel expenses of individual • To whom he/she reports direct or indirectly • Near relative T & E Policies & Regulations

15. V. PAYMENT OF TRAVEL • PREPAID EXPENSES AND DIRECT CHARGES – billed directly to University • Transportation tickets, conference fees • Lodging, meals, other subsistence expenses (M&IE) CANNOT be billed directly – traveler must pay and submit claim for reimbursement • Exceptions: group subsistence expenses, students, prospective employees (once hired, lodging and M&IE cannot be prepaid for 2nd interview, relocation, house hunting) T & E Policies & Regulations

16. V. PAYMENT OF TRAVEL • CORPORATE TRAVEL CARDS – UCSB’s program with US Bank – participation encouraged but not required by all units • Use for all expenses related to official travel • Cardholders responsible for charges, payments • Late fee charges not reimbursed • Delinquencies may result in cancellation • Cardholders must use it for advances, if eligible • Must be relinquished to department upon termination T & E Policies & Regulations

17. V. PAYMENT OF TRAVEL • CASH/NON-CASH ADVANCES – Eligibility • If traveler not eligible for corporate card or not yet obtained one • Corporate card expenses due before completion of trip • Special handling – foreign travel, group athletics, student groups, etc. • Advance fees are reimbursable if obtained on corporate card for official University travel T & E Policies & Regulations

18. V. PAYMENT OF TRAVEL • CASH/NON-CASH ADVANCES – Issuance • Must be issued within 30 days of incurring expense • Should not be authorized if • Traveler is 30 days delinquent in substantiating prior trip • Traveler’s Corporate Card is delinquent • Traveler’s Corporate Card is lost (report immediately) • Should have only one cash advance at a time per trip • Documentation requirement: must submit Travel Expense Voucher even if due no additional amount • zero-out voucher has same documentation requirements as regular voucher – must also list advance – must attach check if $$ due UC • Cancelled or Postponed Trips • Un-recovered Advances – taxable after 120 days T & E Policies & Regulations

19. V. PAYMENT OF TRAVEL • PAYMENT OF EXPENSES ON BEHALF OF OTHERS – normally not acceptable except for • Co-travelers sharing a room • Pre-approved group travel • CANCELLATION OF RESERVATIONS – traveler’s responsibility • To return refundable deposits to the University • Losses due to failure to cancel could be borne by traveler Section XII REPORTING EXPENSES discusses completion of the Travel Expense Voucher (TEV) and the UC and IRS substantiation and documentation requirements T & E Policies & Regulations

20. VI. INSURANCE FOR TRAVELERS • EMPLOYEES • Covered 24 hours a day, worldwide while on official University business • Begins when traveler leaves residence or campus, whichever occurs last • Ends when traveler returns to residence or campus, whichever occurs first • VEHICLES – see these references for details • Section VII. TRANSPORTATION EXPENSES – various discussions under AUTOMOBILE • Link to [dead] T & E Policies & Regulations

21. VII. TRANSPORTATION EXPENSES Shall be reimbursed based on the most economical mode of transportation & the most commonly traveled route consistent with the authorized purpose of the trip Exception must be approved by the chancellor Employees from same organizational unit planning on traveling together should consider the risk and impact of accident T & E Policies & Regulations

22. VII. TRANSPORTATION EXPENSES • GENERAL – refer to text for details about these covered topics • Definition • Transportation Tickets • Lost Tickets • Allowable Mileage Expense • Surface Transportation Used in Lieu of Air Travel • Indirect or Interrupted Itineraries • Travel Extended to Save Cost T & E Policies & Regulations

23. VII. TRANSPORTATION EXPENSES • AIR TRAVEL – refer to text for details about these covered topics • Commercial Airlines – Coach class, Business or First Class, U.S. Flag Air Carriers for travel reimbursed from federal grants and contracts • Private Aircraft • Chartered Aircraft >>UCSB has arrangement with UCLA Travel Office for both YCAL and regular air travel reservations – billing is via inter-campus recharge – do not expense on voucher – disclose in comment boxes on voucher T & E Policies & Regulations

24. VII. TRANSPORTATION EXPENSES • AUTOMOBILE Private vehicle is permitted if less expensive than renting a car or alternative modes, or if it saves time 300 mile-per-day rule: IF traveler is authorized (automobile the most economical) actual M&IE up to the daily M&IE limit can be reimbursed for each 300 miles of travel T & E Policies & Regulations

25. VII. TRANSPORTATION EXPENSES • AUTOMOBILE – refer to text for details about these covered topics • Private Vehicles • Mileage Reimbursement • Private Vehicle Used in Lieu of Air Travel • Fuel, Routine Repairs, and Associated Costs • Insurance • Rental Cars • Authorization to Rent • Insurance Coverage • Direct Billing • Damage to a Rental Vehicle T & E Policies & Regulations

26. VII. TRANSPORTATION EXPENSES • AUTOMOBILE – refer to text for details about these covered topics • Official Vehicles • University Vehicles • State of California Pool Cars • Miscellaneous Automobile-related Expenses • Ferries, bridges, tunnels or toll roads • Parking (there are limits on valet parking) T & E Policies & Regulations

27. VII. TRANSPORTATION EXPENSES • RAIL OR BUS • SHIP • OTHER FORMS OF TRANSPORTATION • Local Public Transportation, Shuttle Service, and Taxis • Motorcycles • Special Conveyances T & E Policies & Regulations

28. VIII. SUBSISTENCE EXPENSES • GENERAL • Lodging and meals and incidental expenses (M&IE) – ordinary and necessary to accomplish University business purpose – expenses incurred within vicinity of workplace or residence not reimbursable • Entertainment Meals are reimbursed in accordance with BFB BUS-79, Entertainment T & E Policies & Regulations

29. VIII. SUBSISTENCE EXPENSES • TRAVEL IN EXCESS OF 24 HOURS – (leave last: home or office, return first: office or home) • Domestic Travel – Travel Within the United States and Its Possessions • Travel – Assignment of Less then 30 Days • CONUS (Continental US) Travel: only allowed actual amounts incurred for lodging and M&IE – lodging expenses require original receipts regardless of amounts incurred • Daily M&IE cap (Appendix B) shall not be treated as a per diem even though based on the highest per diem rate • OCONUS (Outside Continental US) Travel: Alaska, Hawaii and US possessions – allowed non-foreign per diem rates published by Department of Defense (Appendix B) T & E Policies & Regulations

30. VIII. SUBSISTENCE EXPENSES • TRAVEL IN EXCESS OF 24 HOURS • Domestic Travel • Long Term Travel – Assignment of 30 Days or More • Daily rate (= monthly lodging + M&IE / days) assumes expenses in one location for 30 days or more arising from use of establishments catering to long-term travelers • CONUS Travel: per diem of up to 55% based on an estimate of actual daily expenses incurred for lodging (= rental + utilities + phone / days) and M&IE – the daily 55% M&IE is a cap (Appendix B) for the actual daily estimate, not a flat per diem rate – actual lodging taxes can be separately reimbursed as a miscellaneous expense • OCONUS Travel: Alaska, Hawaii and US possessions – allowed up to 55% of non-foreign per diem rates published by Department of Defense (Appendix B) T & E Policies & Regulations

31. VIII. SUBSISTENCE EXPENSES • TRAVEL IN EXCESS OF 24 HOURS • Domestic Travel • Indefinite Travel – Assignments that Exceed One Year • IRS one-year applies – travel away from home lasting more than one year in a single location: reimbursements must be treated as income subject to withholding taxes. Therefore subsistence rate may be increased up to 150% • Such assignments are limited to 2 years unless Chancellor grants an exception • See text for details about these covered topics: indefinite assignment ends prematurely, temporary assignment extended, indefinite assignment interrupted by trips to former residence or to headquarters T & E Policies & Regulations

32. VIII. SUBSISTENCE EXPENSES • TRAVEL IN EXCESS OF 24 HOURS • Foreign Travel • Travel – Travel Assignments of Less Than 30 Days • Reimbursed in accordance with the Federal Maximum Travel Per Diem Allowances for Foreign Areas published by the Department of State • Begins upon arrival at foreign destination and ends upon departure • If actual expenses are claimed the circumstances must be documented in writing. Amount reimbursed may not exceed 300% of location’s established federal rate. • See text for details about above covered topics T & E Policies & Regulations

33. VIII. SUBSISTENCE EXPENSES • TRAVEL IN EXCESS OF 24 HOURS • Foreign Travel • Long-Term Travel – Assignments of 30 Days or More • Per diem allowance authorized is up to 55% of applicable federal per diem rate (Appendix B) as traveler is expected to seek long-term accommodations. See domestic for estimating and calculating daily rate • Indefinite Travel – Assignments that Exceed One Year • Domestic rules apply, subsistence rate may be increased up to 150%, must take any annual foreign earned income exclusion into account • See text for details about above covered topics T & E Policies & Regulations

34. VIII. SUBSISTENCE EXPENSES • TRAVEL IN EXCESS OF 24 HOURS – See text for details about these additional covered topics • Adjustment of Per Diem Rates • Adjustment for multiple locations • Adjustment for partial days • Adjustment for subsistence or lodging provided without charge • Use of Non-Commercial Facilities • Lodging With a Friend or Relative T & E Policies & Regulations

35. VIII. SUBSISTENCE EXPENSES • TRAVEL OF LESS THAN 24 HOURS When trip is 12 hours or less • Incidental expenses shall not be reimbursed except if meal is an integral part of a business meeting When trip lasts more than 12 hours but less than 24 hours • Domestic (CONUS) Travel – Actual cost of lodging and/or M&IE subject to daily maximum in Appendix B for M&IE • Foreign and OCONUS Travel – Actual cost not to exceed federal per diem rate (Appendix B). For continuous travel of 21 hours or more, pay one full per diem T & E Policies & Regulations

36. VIII. SUBSISTENCE EXPENSES • PAYMENT OF GROUP SUBSISTENCE EXPENSES When the University negotiates group lodging and meal rates, vendor may be paid either by group leader or by billing the University Group travelers may claim reimbursement as follows: • Group leader who pays part or all of groups expenses must provide invoice/receipt showing payment in full • Group members may claim reimbursement for part of expenses not paid by group leader • TRANSIENT OCCUPANCY TAX EXEMPTIONS • See Accounting Manual chapter T-182-75 for details and a list of cities and counties in California that grant the exemption to University employees T & E Policies & Regulations

37. IX. MISCELLANEOUS TRAVEL EXPENSES • Reimbursable when ordinary and necessary to accomplish the official business purpose of the trip, including • Business office expenses • Special fees for foreign travel • Registration fees • Actual costs for lodging taxes (not included in CONUS per diem rates) • Charges for checking and storing baggage, excess baggage fees, all with justification • Other ordinary and necessary expenses not included in the above categories T & E Policies & Regulations

38. X. INTERCAMPUS TRAVEL EXPENSES • Procedures for administration of intercampus travel for both employees and visitors – see actual Policy text for details on the following topics • FUNDING CAMPUS RESPONSIBILITIES • Travel Funded by a Single Campus • Travel Funded by Two or More Campuses • Missing Original Receipts • Outstanding Cash Advances • HOME CAMPUS RESPONSIBILITIES T & E Policies & Regulations

39. XI. SPECIAL TRAVEL SITUATIONS • UNIVERSITY TRAVELERS – see policy text for detailed discussion of topics listed below • Visiting Academic Appointees covering topics such as Authorized Advances and Return Travel • Faculty Members on Sabbatical Leave • Students • Post-Docs and Other Non-degree Candidates T & E Policies & Regulations

40. XI. SPECIAL TRAVEL SITUATIONS • NON-UNIVERSITY TRAVELERS– see policy text for detailed discussion of topics listed below • General Regulations • Prospective employees • Independent Contractors and Consultants • Inbound Travel - Temporary Assignments • Foreign Visitors and Scholars • Spousal Travel • Athletic Travel - Spouse and Other Family Members T & E Policies & Regulations

41. XII. REPORTING TRAVEL EXPENSES Except for direct billing arrangements that have been approved in advance, a Voucher must be processed even if no reimbursement is due the traveler UCSB’s official travel reimbursement form is the web-based Travel Expense Voucher (Web TEV) https://apps.accounting.ucsb.edu/travel/Secure/Login.aspx T & E Policies & Regulations

42. XII. REPORTING TRAVEL EXPENSES • REPORTING PERIOD – submit to Accounting within 21 days of end of trip • Or monthly if for recurrent local travel • Or quarterly if trip lasts more than 90 days • COMPLETION OF TRAVEL EXPENSE VOUCHER • Substantiation of Expenses • Date/time of departure/return and any personal leave taken while on official travel status • Origin/destination and route taken. Travel within local area. Continuous travel between points, deviation from standard route • Purpose of travel or nature of business benefit • Amount of each expenditure, listed by date and location • Group leader’s expenses must include names of participants T & E Policies & Regulations

43. XII. REPORTING TRAVEL EXPENSES • COMPLETION OF TRAVEL EXPENSE VOUCHER • Documentation Requirements • Receipts – original of following must be submitted • All airline expenses • All lodging expenses, except where long-term per diem is authorized NOTE: 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. • Rental car expenses • Exceptional meal expenses of $75 or more • Local transportation costing $75 or more • Each miscellaneous expense of $75 or more Departments/control points may be more restrictive T & E Policies & Regulations

44. XII. REPORTING TRAVEL EXPENSES • COMPLETION OF TRAVEL EXPENSE VOUCHER • Documentation Requirements • Receipts – see policy text for documentation of expenses relating to private aircraft, extraordinary items, car damage, gifts for host, agenda’s documenting registration fees, electronic, emailed and faxed receipts • Travel Packages Purchased from Internet Vendors cannot be used for business-related travel unless the traveler has confirmed that each aspect of the package will be separately itemized • Missing Original Receipts – explanation must be attached with certification that the traveler has not and will not seek reimbursement from any other source T & E Policies & Regulations

45. XII. REPORTING TRAVEL EXPENSES • COMPLETION OF TRAVEL EXPENSE VOUCHER • Certification of Travel Expense Traveler must sign the TEV certifying 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 • RETURN OF EXCESS ADVANCE AMOUNTS • If advance exceeds expenses, payment due shall be submitted with the TEV. Make check payable to UC Regents T & E Policies & Regulations

46. XII. REPORTING TRAVEL EXPENSES • APPROVAL OF TRAVEL EXPENSE VOUCHER (TEV) FOR PAYMENT • Must be approved for payment by traveler’s department head or other officially delegated/re-delegated individual • Must be impartial, traveler cannot approve own reimbursement • Employee shall not approve travel expenses of individual • To whom he/she reports direct or indirectly • Who is a near relative Use UCSB’s online Web TEV for travel less than 30 days Use paper TEV for travel 30 days or longer, relocations, removals, 2nd interview, house hunting trips T & E Policies & Regulations

47. APPENDICES Travel • MILEAGE REIMBURSEMENT RATES FOR PRIVATE VEHICLES AND AIRCRAFT • LODGING AND M&IE REIMBURSEMENT CAPS • TRAVEL OF LESS THAN 24 HOURS M&IE REIMBURSEMENTS • REDUCTION IN M&IE PER DIEM FOR MEALS FURNISHED WITHOUT CHARGE • PRORATING PER DIEMS FOR TRAVEL INVOLVING MULTIPLE LOCATIONS • INTERCAMPUS TRAVEL EXPENSE TRANSFER APPROVAL • IRS TAX GROSS UP FORMULA T & E Policies & Regulations

48. I. REFERENCES Moving, Relocation Letters and delegations from the President and Senior Vice President Academic Personnel Manual, Sections 550, 560, 561 Business and Finance Bulletin G-28, Policy and Regulations Governing Travel Related Accounting Manual Chapters Internal Revenue Code Sections and Service Announcements T & E Policies & Regulations

49. II. PURPOSE Moving, Relocation Sets forth the policy and procedures governing the payment of moving expenses and relocation allowances for non-exclusively represented staff employees at the nine campuses and the Office of the President T & E Policies & Regulations

50. III. SCOPE Moving, Relocation The following employee classifications are covered by these guidelines: • 1) Senior Managers; • 2) Managers, Senior Professionals, and Professionals; and • 3) Support Staff. Included as an appendix are the policies related to moving expense payments for academic personnel T & E Policies & Regulations