HomeMy WebLinkAbout210-01POLICY & PROCEDURE
Subject: Index: FINANCE
TRAVEL EXPENSES AND REIMBURSEMENT Number: 210-01
Effective Date: Supersedes: Page:Staff Contad: Approved by:
9/1/2012 7/1/2007 1 of 9 Iwen Wang
1.0 PURPOSE:
To establish policies and procedures for City business expenses incurred by an
employee or appointed/elected City official during overnight travel status or tax home
status, as defined by the Internal Revenue Service (IRS). This policy also outlines when
reimbursement for expenses are considered fringe benefits under the IRS' definition.
2.0 ORGANIZATIONS AFFECTED:
All City Departments/ Divisions
3.0 REFERENCES:
RCW Chapter 42.24, and Internal Revenue Service (IRS) Regulations
210-08 - Food and Beverage Expenditures
215-18 -Travel Authorization & Expenses Report Form (Attachment A)
250-08- Purchasing Card Policy
4.0 POLICY:
It is the policy of the City of Renton to reimburse elected/appointed officials and
employees for reasonable and necessary expenses incurred while conducting business
for the City.
Generally, eligible expenditures include travel and reasonable living costs incurred by an
employee while away from their regular tax home, as necessitated by City business.
Authorized Approvers will make the determination of eligible and ineligible meals in
coordination with the Administrative Services Administrator. Reimbursements for
necessary and reasonable expenses are made, subject to the rules herein and with
Chapter 42.24 of the Revised Code of Washington (RCW). It is assumed and expected
that expenses will be consistent with the best interests of the City, including the City's
need to manage travel costs.
Questions on this policy and procedure should be directed to the Administrative
Services Administrator.
Travel Expenses and Reimbursement
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5.0 DEFINITIONS:
5.1 A/P. Accounts Payable
5.2 Air Fare / Air Travel. The air travel standard is coach, which is generally the
least costly air fare available that adequately meets the City's purpose.
5.3 Authorized Approvers. Those persons or their designees as identified in 6.1.1.
5.4 Conference. Includes, but is limited to, a symposium, seminar, forum, or
convention associated with a league, association, alliance, etc. For the purposes
of this policy and procedure, the word conference also means any formal
training session typically attended by an audience from a wide geographic area
and/or organized by a regional or nationally known entity.
5.5 Conference Meals. Meals provided at a conference, including continental
breakfast. The cost for such meals are either included in the registration fee or
can be obtained by paying an extra fee with the registration payment. The
registration form and/or the conference program schedule identify any meals
provided or available for purchase.
5.6 Department Account Representative. The person who coordinates the
submission of all travel expense reports from their department to A/P. The
primary task is to make sure all required documentation is included and
required approvals are obtained before department expense reports are
submitted to A/P.
5.7 Eligible Meals. While in overnight travel status, meals not provided at a
conference will be advanced or reimbursed at the current City M&IE per diem
rate. When an employee is not in overnight travel status, non-conference meals
can be reimbursed but any per diem paid is subject to income tax withholding as
a fringe benefit.
5.8 Employee. Shall include City employees and elected or appointed officials of the
City of Renton, and volunteers traveling in an official capacity representing the
City.
5.9 Expense Report. The Travel Authorization and Expenses Form attached herein
and as amended.
5.10 Hosting. Includes, but is not limited to, activities that are intended to lobby or
influence any elected official, governmental official, or vendor and are normally
social rather than a governmental business event, and normally include
expenditures for food and beverage. City funds are not to be used for "hosting."
5.11 Meals and Incidental Expense (M&IE). The dollar amount allowed for each
meal, including tax, gratuities, and incidental expenses. The City Finance
Division will publish from time to time the M&IE breakdown or "per diem rates."
Travel Expenses and Reimbursement
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5.12 Mileage Rate. The reimbursement rate per mile for using a personal vehicle on
City business as published by the Finance Division from time to time.
5.13 Non Overnight Travel Status. By the IRS' definition, non overnight travel status
to travel to local cities. For example, it is non overnight travel status to go to
Olympia, Tacoma, or Woodinville for a day class or workshop and return home
the same day.
5.14 Overnight Travel Status. When an employee's duties require them to be away
from the general area of their tax home substantially longer than an ordinary
day's work and sleep or rest is needed to meet the demands of work while away
from home. The rest requirement for overnight travel status is not satisfied by
napping in a car. An employee does not have to be away from their tax home
for a whole day as long as their relief from duty is long enough to get the
necessary sleep or rest.
5.15 Purchasing Card (or P-Card). Any City credit cards used by employees for
eligible City expenses and/or purchases.
5.16 Tax Home. The IRS term identifying your principal place of work.
5.17 Travel Authorization and Expenses Form. This form is required for approval of
overnight travel, advance of ineal and incidental expenses. This form is
Attachment A to this policy and procedure. To obtain an electronic copy of the
form, go to RentonNet/City Forms/ Finance forms.
5.18 Travel Time. The time required to reach a destination that is outside of the
general area of the employee's or appointed/elected City official's tax home.
6.0 PROCEDURES:
6.1 Travel:
6.1.1 Aufhorizotion — An employee must obtain authorization prior to
overnight travel. The Mayor, Chief Administrative Officer (CAO), City
Council President (for council and council liaison travel), and each
Department Administrator or their designee are authorized to approve
travel. Use the Travel Authorization and Expenses Form to obtain the
required approval signatures. This form includes full cost estimates for
travel expenses and a section to request an advance check for meal and
incidental per diems. An employee incurring travel related expenses
without obtaining prior approval is at risk of not being reimbursed for
those expenses by the City.
6.1.2 CouncilmemberAttending Regional Meeting—Councilmembers attending
regularly scheduled and/or standing regional meetings within their
committee assignment, or otherwise previously approved by the
majority of the City Council, are representing the City officially and are
Travel Expenses and Reimbursement
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eligible for reimbursement of associated costs. This includes, but is not
limited to, regular membership meetings of the Association of
Washington Cities and Suburban Cities Association.
Councilmembers participating in other regional meetings, forums, and
trainings are attending in an unofficial capacity on their own time and
resources.
6.1.3 Excess Travel Time—The time it takes to travel in excess of one work day
each way. If the excess travel time is required due to the employee's
choice of transportation, it will be charged to the employee as accrued
time, i.e., vacation, comp time, or personal leave.
6.2 Exceptions:
Exceptions to this policy and procedure may be made only for unusual or
extenuating circumstances and upon the written authorization of the Mayor,
Chief Administrative Officer, or the Administrative Services (AS) Administrator or
by a majority of the City Council for Council expenses. Exceptions must be
consistent with State law, and Renton Municipal Code.
6.3 Meal and Incidentals Per Diem:
6.3.1 The City advances or reimburses at the M&IE per diem rate for eligible
meals during authorized travel status. The current advance or
reimbursement is paid at the following City M&IE per diem rate:
Breakfast 10
Lunch 15
Dinner 30
Incidental Expenses: $5
and as revised from time to time by the Finance Division.
6.3.2 The City does not advance or reimburse per diems for meals provided at
a conference.
6.3.3 No advances will be made for airline tickets, registration fees, lodging, or
other expenses that can be billed to the City, charged to a City
purchasing card, or paid through the regular accounts payable process.
6.3.4 Obtaining an advance of the M&IE per diems requires planning ahead.
An employee with overnight travel authorization may request an
advance check for M&IE per diems by using A/P's regular vendor
payment schedule. The procedure is as follows:
Travel Expenses and Reimbursement
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6.3.4.1 Prepare the Travel Authorization and Expenses Form, using M&IE
per diems claimed on the first through the last day of travel,
provided the person is in Travel Status during the following
periods:
6:00 to 9:00 a.m. for breakfast
11:00 a.m. to 2:00 p.m. for lunch
5:00 p.m. to 8:00 p.m. for dinner
6.3.4.2 Obtain the required signature approvals.
6.3.4.3 Enter the M&IE advance amount due into Eden, following the
regular A/P schedule. The approved Travel Authorization and
Expenses Form is your invoice for an M&IE advance check.
Attach the conference registration and program description to
the invoice. Submit to A/P by the regular A/P cutoff date. Special
checks will not be issued.
6.3.4.4 A/P will release the advance check on the regular accounts
payable "mail check" date.
6.3.4.5 Upon completion of travel, recalculate any miscalculation of the
meal or incidental per diems that results in the City advancing
more money to the employee than was due. The employee shall
reimburse the amount of the per diem overage to the City of
Renton promptly. Any M&IE advance overage not repaid
promptly may be collected through payroll deduction.
6.4 Expense Reporting:
6.4.1 If using a City Purchasing Card, you'll need to get all travel related
receipts to your department account representative prior to the close of
that month's billing cycle.
6.4.2 Required documentation for travel expenses include receipts for
expenses claimed/reported (other than those provided for via per diem),
and a copy of the approved Travel Authorization & Report form, if not
submitted previously.
6.4.3 For a mileage claim, the mileage is calculated from the starting point to
the destination. For a day-trip started from home, the start point should
be the closest to the destination, either home or City Hall, even if the
traveler begins their trip from home.
6.4.4 For an expense that is outside of policy, include the written approval for
the exception.
Travel Expenses and Reimbursement
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6.5 Eligible Expenses:
6.5.1 Travel Status Meals and Incidental Expenses — The cost for a meal and
incidental expenses is advanced or reimbursed at the City's current M&IE
per diem rate. All meals taken during travel status are reimbursed on a
tax free basis, consistent with IRS rules. The exception is meals provided
at a conference, which are not covered.
6.5.2 Transportation:
6.5.2.1 The actual costs for bus travel, train travel, taxi, tolls, car rentals,
parking fees, and air travel (coach or economy class only) from
SeaTac Airport to the destination and return are eligible
expenses.
6.5.2.2 Employees using a personally owned auto to travel out of town
on City business, if approved by an authorized approver, will be
reimbursed at the current City mileage rate provided the total of
the mileage rate does not exceed the total cost of the least
expensive round-trip airfare to the same destination. Mileage is
calculated from City Hall or your home, whichever is closer to the
destination.
6.5.3 Lodging — The actual cost of hotel or motel accommodations at the
double occupancy rate is eligible with the following exception: If a family
member or guest accompanies the employee resulting in a higher room
rate than the conference rate, the employee shall pay the amount over
the conference rate. Note the conference accommodation rate on the
lodging bill if that information is not contained in the conference
registration materials. If a conference organizer offers multiple hotel
options, an employee shall enerallv choose the least expensive hotel
accommodation available unless the cost of traveling to and from the
less expensive hotel cancels out the savings compared to the cost of a
hotel closer to the conference site. The reason for not using the least
expensive hotel accommodation should be noted on the Travel
Authorization & Expenses Form.
6.5.3.1 A lodging bill detailing the charges shall be attached to the
backup documentation and sent to A/P for processing.
6.5.3.21f lodging accommodations are shared between two or more
employees, the lodging bill for the employees sharing the room
shall be expense reported by the employee who pays the lodging
bill.
6.5.4 Laundry, Telephone, Internet Fees—Covered by incidental expenses.
Travei Expenses and Reimbursement
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6.5.5 Per Diems — Necessary meal and incidental (M&IE) expenses while on
travel status are reimbursable at the City's current per diem rates.
6.6 The following expenses shall not be paid for or reimbursed by the City:
Travel expenses paid by another organization.
Meals included in a registration fee.
Tips or gratuities (which are included in the M&IE per diem).
Meals or lodging accommodations for family or guests.
Alcoholic beverages.
Valet or room services.
Tours or sightseeing.
Mileage if traveling as a passenger in a privately-owned car.
Travel insurance.
Hosting.
Theft, loss, or damage to personal property.
Fines or penalties.
Any other personal expenditure or expenditures beyond "reasonable and
necessary" as determined by the Authorized Approver.
6.7 Non Overnight Travel Status Meal:
An Employee may be reimbursed for their meals during non overnight travel
status, but meals in non travel status may be considered taxable by the IRS.
6.7.1 Eligible Meals:
6.7.1.1 Meals included in the cost of a meeting registration are eligible
and are not taxable as a fringe benefit.
6.7.1.2 Non-conference local (non overnight travel) meals shall be
reimbursed based on actual expenses but not to exceed the per
diem rate for the meal as established by the City.
Reimbursements for non travel status meals, if applicable, will be
reported as earned income to the employee in accordance with
IRS rules.
6.7.1.3 Individuals may be reimbursed for non travel status meal expense
from the petty cash fund, provided the proper documentation is
attached to the petty cash slip and the amount is within the petty
cash limit. Some examples of proper documentation are meeting
agendas, sign-in sheets, or appointments/invitations that
establish the business purpose.
Travel Expenses and Reimbursement
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6.7.1.4 Meals for elected or appointed officials conducting formal City
business during meal times are authorized.Light
dinner/refreshments may be provided for staggered City
meetings starting prior to 5:00 p.m. and are expected to continue
beyond 7:00 p.m.
6.7.2 Ineligible Meals:
6.7.2.1 Discussing City business during a mea) does not make the meal
reimbursable when the business could reasonably have been
conducted during non meal periods.
6.7.2.2 Authorized approvers or their designees will determine whether
meals consumed locally (while attending a meeting or training on
behalf of the City) are eligible for reimbursement. The approver's
signature on an expense report or petty cash slip indicates his/her
approval. Determination of the meal as eligible does not
preclude the meal from being taxed as a fringe benefit.
Travel Authorization and Expense Report
Policy and Procedure 210-01)
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CERTIFICAitON:
1 certifythat I have reviewedthe requestand notclaimed meal perdiem forany meals(s)that were provided to me at noadditiona cost.Ifa business meal{s was paid for via Ptard duringthis trip,that
meal s)wasdeductedfromtheperdiemciaimed,IfurthercertifythatlhavereadandunderstandCity'stravelandreimbursementpolicyandprocedure,andtheaboveamouMisforeligible andcorrect
costs that are necessaryforofficia Cty business;that the journey was performed with all practicable dispatch bythe shortest route usuallytraveled in the customa ry reasonable manner;and that I have not
been furnished with transportation or money i n liav thereoffor a ny pa rt of the journey{herein cha rged for.If I have used my private vehicle,I also certify that I was duly licensed and ca rried at least the
minimum insurance coverage required bystate statutes.
I underrtand tbe Citv mav de duc[from mv oav check 1or expenses 1 ciaimed over the amount allowed by cih policies.
Empbyee Signature: Date:
Approval Signature: Date:
Please Indirofe SpecificAufhorizations for:
Ren[al Car Use of Personol Vehide(for Mileage reimbursementJ