| |
Purpose: It is the policy of the Veterans Medical Research Foundation (VMRF) to reimburse all travel expenses in support of official business and research. This policy applies to all individuals whose approved travel funding is administered by VMRF. For sponsored projects, all travel must be allowable by the project sponsor.
Overview: This policy is intended to provide a framework for reasonable and allowable travel expenditures, timeliness of travel reimbursements, and expenditure recognition. Any exceptions to this Policy must be expressly authorized by the Chief Executive Officer.
Application:
Travel Approval
Pre-approval, in written format, is not required for domestic travel. However, it is the traveler’s responsibility to review travel plans with their supervisor or principal investigator (PI) prior to scheduling. Grants may require prior approval for international travel (which excludes Canada and the territories and possessions of the United States); please consult with VMRF Contracts & Grants before scheduling the travel. If required, prior approval must be obtained as specified in the applicable contract or grant policy, agreement or contract.
Within 30 days from return of travel, the traveler should submit original receipts on a Travel Expense Voucher certifying the travel claim purpose, accuracy, and appropriateness of expenditures. The supervisor or PI reviews and approves the Travel Expense Voucher before forwarding to the VMRF Accounting Department for payment.
Compensation while traveling (salary and benefits) is awarded based on labor law. Questions should be directed to VMRF Human Resources.
Prepayments and Travel Advances
On an exception basis, VMRF allows for travel advances. Economic hardship will be considered for all advances and advances are generally approved for airfare pre-paid by the traveler. Conference fees should not be billed to VMRF but prepayment by VMRF is allowable. Travel Advances and Prepayment Requests must be used for prepayments and travel advances.
The traveler is responsible for clearing the advance and/or prepayments by submitting a completed Travel Expense Voucher, even if there is no other expenditure to be reimbursed. The Travel Expense Voucher must include all expenses whether prepaid or not and the Travel Expense Voucher must indicate the advance or prepayment before calculating the balance due the traveler or repayment due VMRF. If a balance is due VMRF, the check should be made payable to: Veterans Medical Research Foundation; cash is not accepted.
Per Diem
Lodging – is payable at actual cost for reasonable and necessary accommodations. Depending on the circumstances, additional justification may be required. Conferences frequently offer special room rates and stay at the conference site is encouraged because it often reduces cost of local transportation. Original itemized receipts are required.
Meal allowance and incidental expenses (M&IE Per Diem):
- VMRF has established a domestic, Canada, United States and its territories and possessions only, M&IE Per Diem allowance (the current rate is listed on the Travel Expense Voucher form).
- The Foreign Per Diem Rates are based on the GSA city rates and may not exceed the maximum daily allowance.
- The full per diem amount may be claimed without receipts.
- The first and last days of a trip involving overnight stay are calculated at 75% of the M&IE Per Diem allowance.
- Day trips that do not involve an overnight stay are typically not granted Per Diem or meal allowances.
- The IRS generally considers such payments to be taxable income.
- Conference Meals included in the cost of the conference registration require that the meal allowance be reduced based on the attached chart by deducting the M&IE allowance for that meal (breakfast, lunch or dinner) from that day’s M&IE Per Diem. See GSA - Meals and Incidental Expense (M&IE) Breakdown.
- Business Meals and Networking Events are reimbursable to the extent that they are justifiable.
- Justification entails a dated original itemized receipt documenting the purpose of the business meal or networking event and who was in attendance (must be more than one person). These expenses must be submitted on a Meeting Expense Form attached to the Travel Expense Voucher.
- In the event that a Business Meal occurs during travel, it would be included as a separate expenditure but that day’s M&IE Per Diem would be reduced by deducting the M&IE allowance for that meal (breakfast, lunch or dinner) from that day’s M&IE Per Diem. See GSA - Meals and Incidental Expense (M&IE) Breakdown.
Business phone calls and services (copy, fax, and email internet service) are reimbursable, at cost, with receipt. Note that phone calls included on lodging receipts must be clearly marked as business; personal phone calls are not reimbursable.
Incidental expenses such as hotel tips and sundry items are included in the established Per Diem rates. Ground transportation tips included on your receipts are acceptable.
Transportation
Airfare – coach or equivalent airfare should be used. Federal requirements (i.e. Fly America Act) state that domestic grantees must use U.S. flag carriers to the maximum extent possible. Any air transportation to, from, between or within a country other than the U.S. of persons or property paid for from U.S. federal funds must be performed by or under a code-sharing arrangement with a U.S. flag air carrier if service provided by such carrier is available. Tickets or documentation for electronic tickets must identify the US flag air carrier's designator code and flight number.
For purposes of this requirement, the U.S. flag air carrier service is considered available even though a:
- Comparable or a different kind of service can be provided at less cost by a foreign flag carrier, or
- Foreign flag carrier service is preferred or more convenient.
Exceptions to the Fly America Requirement:
When Travel is Between the U.S. and Another Country:
- If a U.S. flag air carrier offers nonstop or direct service (no aircraft change) from your origin to your destination, you have to use a U.S. air carrier, UNLESS, use of the U.S. air carrier would extend your travel time, including a delay at your origin, by 24 hours or more.
- If a U.S. flag air carrier does not offer nonstop or direct service (no aircraft change) between your origin and your destination, you MUST use a U.S. air carrier on every portion of your route where the U.S. air carrier provides service, UNLESS, when compared to using a foreign air carrier, use of the U.S. air carrier would:
- Increase the number of aircraft changes you make outside the U.S. by 2 or more;
- Use of the U.S. air carrier would extend your travel time by at least 6 hours or more; or
- The use of a U.S. air carrier would require a connecting time of 4 hours or more at an overseas interchange point.
When Travel is Solely Outside the U.S. - When you travel solely outside the U.S., and a U.S. flag air carrier provides service between your origin and destination, you have to use the U.S. flag air carrier, UNLESS, when compared to using a foreign air carrier, use of the U.S. flag air carrier would:
- Increase the number of aircraft changes you have to make en route by 2 or more;
- Extend your travel time by 6 hours or more; or
- Require a connecting time of 4 hours or more at an overseas interchange point.
Short Distance Travel - For all short distance travel, regardless of origin and destination, U.S. flag air carrier service will not be considered available when the elapsed travel time on a scheduled flight from origin to destination airport by a foreign air carrier is 3 hours or less and service by U.S. flag air carrier would involve twice the travel time.
Personal Car – the mileage rate for use of personal car is established by the IRS, as indicated on the Travel Expense Voucher, and is reimbursable to the extent that it does not exceed the coach airfare to the same destination. When private cars are used, the Traveler must certify current and valid ownership of the minimum prescribed insurance coverage.
If the only travel cost incurred is mileage, you may submit a Private Automobile Mileage Voucher for reimbursement.
Rental Car – when a rental car is required, the optional insurance should not be purchased and is not reimbursable. Foreign travel rental car insurance is allowable.
Miscellaneous parking fees, tolls, and shuttle/cab services are reimbursable. Receipts should be provided to the extent possible.
Travel Expense Voucher
The Travel Expense Voucher is used to claim reimbursement for approved business travel expenditures. All expenses, including those prepaid, must be reflected on the voucher to ensure proper accounting for the complete trip. If a travel advance or prepayments were issued, they are indicated at the bottom of the form and are deducted before calculating the balance to be paid the traveler or repaid to VMRF.
1. Complete the Travel Expense Voucher, clearly identifying the purpose of the trip.
2. Attach original receipts and to facilitate review of foreign conversion rates, a copy of the credit card statement is preferred.
3. Attach a copy of the Travel Advances and Prepayment Requests, if applicable
4. For Meals & Incidentals, attach a Travel Per Diem Form
5. For Business Meals or Networking Events, attach a Meeting Expense Form
6. Sign and date the Travel Expense Voucher
7. Obtain approval from supervisor or P.I. (the VMRF CFO or Controller will approve P.I. Travel Expense Vouchers)
8. Forward the Travel Expense Voucher to VMRF Accounting within 30 days of travel.
a. If there is a balance due VMRF, attach a check payable to Veterans Medical Research Foundation
9. A check for approved expenses including, if applicable, explanation for denied costs will be issued to the traveler.
Forms
Travel Expense Voucher
Travel Advances and Prepayment Requests
Travel Per Diem Form
Private Automobile Mileage Voucher
Meeting Expense Form
References
2 CFR 215 – Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations (Old Circular No. A-110)
2 CFR 230 – COST PRINCIPLES FOR NON-PROFIT ORGANIZATIONS (Old Circular A-122)
Circular A-133 -- Audits of States, Local Governments, and Non-Profit Organizations
Who to Contact
Questions regarding this Travel Policy should be directed to VMRF Accounting.
Completed and approved travel forms should be sent to VMRF Accounting.
Travel FAQs: Frequently Asked Questions
Airfare Penalties & Exchanges – if a ticket has to be changed due to illness, personal emergency or business needs and a penalty is incurred, the traveler may claim reimbursement from VMRF.
Alcoholic Beverages – itemized costs for alcoholic beverages cannot be reimbursed in compliance with OMB.
Approvals – must be from someone other than the traveler. Principal Investigators will have their Travel Expense Claims approved by the CFO or the Senior Accounting Manager.
Automobile Insurance - California Public Law requires that anyone driving a car in California carry at least the minimum prescribed insurance:
- $15,000 for personal injury or death of one person
- $30,000 for injury or death to two or more persons in one accident
- $5,000 for property damage
Cancellation of Reservations – it is the responsibility of the traveler to cancel any reservations that will not be used. Charges or lost refunds from failure to cancel in a timely manner will not be reimbursed.
Entertainment – is generally considered a personal expense and not reimbursable. However, exception is made for business meals or networking events (meetings where official business is conducted) and conference banquets.
Meals:
- VMRF has an established domestic M&IE Per Diem which is published as part of the Travel per Diem Form (Note: hot link to actual form, please).
- The Foreign Per Diem Rates are based on the GSA city rates and may not exceed the maximum daily allowance.
- If a conference registration or event provides for meals, the daily per diem should be reduced accordingly; i.e., if a conference provides a dinner banquet as part of the registration cost then the dinner allowance should be deducted from that day’s per diem for meals & incidentals.
- Business meals (where official business is conducted) are reimbursable at actual cost to the extent that the documentation includes business purpose or agenda and the names of the individuals in attendance (must be more than one). Original itemized receipts must be provided. If the business meal occurs during a trip, the daily per diem should be reduced accordingly; i.e., if the business meal occurs at lunch then the per diem for meals & incidentals would be reduced to eliminate the lunch allowance.
- The following chart provides the breakfast, lunch, and dinner cost breakdown: GSA - Meals and Incidental Expense (M&IE) Breakdown. The M&IE (Meals and Incidental Expenses) daily per diem rate for foreign travel is based on the GSA city rate where the business meal takes place.
- The M&IE allowance for the first and last day of travel is 75% of the M&IE daily rate.
Missing Original Receipts - require documentation. If an original receipt is lost, a duplicate receipt should be requested. If a duplicate receipt cannot be obtained, then a lost receipt memorandum signed by the traveler should be created. The lost receipt memo must indicate the item, cost, date, and a signed personal validation statement that the expense is accurate and not previously submitted for reimbursement.
- Electronic or ticket-less airfare requires a printout receipt or credit card statement for reimbursement.
One Day (Local) Travel – in general, trips of less than 50 miles, one way, from VMRF or the traveler’s home do not qualify for an over-night stay or per diem. For local travel or when an overnight stay is not involved, the IRS generally considers meal reimbursement and per diem taxable income. Conference and/or meeting fees are reimbursable and mileage is reimbursable to the extent that it exceeds the normal home to work commute. In certain circumstances, Business Meals may be approved to the extent that official business is performed during the course of the meal and an otherwise acceptable time and place to meet could not be arranged.
Passports – the cost of passports and legal documents required for travel are normally paid for by the traveler but on an exception basis may be approved for reimbursement by the Chief Executive Officer.
Personal Travel (non-business days) – is sometimes requested before, after, or during a business trip. It is not reimbursable unless a demonstrated cost savings to the overall business trip can be documented. However, if weekends or holidays fall between travel days, approved costs are allowable.
- Indirect Routes – if, for other than business reasons, the traveler takes an indirect route, reimbursement for air fare or mileage will be at the cost incurred by traveling directly to the intended business destination. Backup must be attached to the Travel Expense Voucher, justifying the cost you claim (i.e. print out a copy of an Expedia.com travel itinerary to the business destination applicable to that travel date)
- Normally one day travel is allowed to arrive and return from your business destination. In the event of international travel, two days is allowable.
Rental Cars – should be refueled prior to return to the rental agency.
Spouse/Partner Travel – is not reimbursable unless the travel is integral to the business purpose of the trip. However, the cost of a shared hotel room need not be allocated between traveler and partner.
Traffic and Parking Tickets – are not reimbursable.
Approved by the VMRF Board of Directors: August 19, 2011
|