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12-20-1994 - Administrative Travel Expense Reimbursement PolicyCity of West Covina Memorandum AGENDA ITEM NO. K-1b FROM: James E. Starbird, City Manager DATEh nT 1994 ®PRINTED ON RECYCLED PAPER suwEcr: ADMINISTRATIVE TRAVEL EXPENSE REIMBURSEMENT POLICY SUMMARY:. At the City Council meeting of November 15, Councilmember Touhey requested a discussion of the City Council's travel and expense policy. , Since that meeting, Councilmembers have broadened the desired scope of discussion to include the policy relative to City staff as well. DISCUSSION From time to time throughout the year, members of the City Council and staff must travel to locations outside the City to conduct business of benefit to the City. These occasions range from local training sessions and professional conferences, to meetings of regional, statewide and national organizations of which the City is a member, and even to the extradition of prisoners from out of state. In each case, the expense of such travel is predicated upon benefit to the City and is subject to the budgetary process and budgetary limitations. The City's policy for payment of travel -related expenses is contained in the attached Administrative Policy. The policy has been established to enumerate guidelines under which such expenses will be incurred and.paid. The goal of the policy is to minimize wherever possible the cost of City travel, and to provide appropriate safeguards and reporting requirements for incurring expense to the City. The policy is entitled Travel Expense Reimbursement Policy, which implies that all City travel -related expenses will be paid 'on a reimbursement basis. In reality, however, the policy encourages advance payment directly to service providers (such as airlines and hotels) for as much of the cost of travel as possible, leaving the minimum for actual reimbursement for out-of-pocket expenses. This encourages the department or employee to make arrangements as far in advance as possible, thereby achieving the best possible rates. It also prevents the Councilmember or employee from having to advance the most significant costs of travel incurred on behalf of the City. The policy permits an advance of funds to the Councilmember or staff member for meals and incidental expenses up to specified limits, although the actual provision of advances for per diem expenses is less frequent than reimbursement for expenses incurred by the individual. The policy further requires all expenses to be reported on a form established for this purpose, accompanied. by receipts and/or other acceptable documentation. At this point, a word about City credit cards may be in order. By past practice, the City issues credit cards in .the City's name to only three persons: the Mayor, the City Manager, and the Assistant City Manager. The use of these cards is obviously restricted to authorized City business, and expenses incurred by credit cards are posted to the same accounts as any other expense. They are used primarily when an advance of funds is inappropriate or not possible. In many cases they are used to secure, and sometimes pay for, conference or travel arrangements when payment cannot wait for the normal demand process, which normally requires two weeks to generate a check. Documentation to substantiate the appropriate use of City credit cards is identical to, or as rigorous as, all other City payments. This documentation is maintained on file in the Finance Department. Credit card bills are paid in full monthly, so as to avoid a finance charge. The Travel Expense Reimbursement Policy has been in existence for many years. It was most recently updated in February 1993, in an effort to further restrict the use of per diem 1 • 0 funds (or reimbursement for expenses) for meals and incidental expenses. The most recent revision also clarified (and further limited) reimbursement for use of a personal vehicle for City travel. City Council Expense Reimbursement City Councilmembers are subject -to the same policies and procedures as are staff. Council travel and expense reimbursement is also subject to budgetary constraints. These appropriations are provided in the City Council budget. A total of $11,700 is provided in FY 1994-95 for all such expenses, including reimbursement for local expenses not related to out-of-town travel. These amounts are found in two accounts: Memberships ($4,000) and Allowances ($7,700). The budget for City Council expenses is developed by staff during the budget process. It is by no means a scientific process. Staff attempts to predict the level of travel anticipated for each member, based upon each member's level of activity in organizations such as the League of California Cities, the Independent Cities Association, and others. Added to this is a non -itemized estimate for miscellaneous expenses likely to be incurred during the year. Following this estimate, the amount may or may not be adjusted as a part of the annual belt -tightening process, until a final budget for the City is achieved. The City Council's budget is not predicated upon an equal allowance among all Councilmembers, nor is it created with specific accounts to track individual members' expenses. If that is desired, staff would recommend that the budget be created as it is today (i.e. in an aggregate amount for the City Council), but with expenses posted to individual accounts, which would be created for this purpose. CONCLUSIONS - City -sponsored travel is always a publicly sensitive concern. Expenditures for travel are almost always the first expenses to be trimmed in the preparation of the budget. Nevertheless, travel to the most important professional conferences and training opportunities are essential to maintaining high standards of public service, both by City Councilmembers and City staff, and some travel (such as extraditions) simply cannot be avoided. Thus, there will always be a need for some level of travel. It is therefore incumbent upon the City to have a publicly defensible travel policy, in order to assure the public that its resources are being spent prudently and with all regard for economy and appropriateness. While the current Administrative Policy contains these safeguards, it is always desirable to review the policy from time to time, to be sure that it meets the level of standards expected by the City Council and the community. RECOMMENDATION: It is recommended that the City Council review the City's Travel Expense Reimbursement Policy and suggest any changes as may be appropriate. J s E. Starbird Ci Manager attachments 2 C I T iY • O F W E S T C C) V I N A ADMINISTRATIVE POLICY Subject: TRAVEL EXPENSE REII'IBURSEMM POLICY 0 L I C Y AM77,L?EICATION It is the intent of this reimbursement policy to enumerate guidelines under which City' employees may be compensated for any extraordinary business related, personal costs beyond that which would be normally incurred in the course of performing assigned duties. To that end, this policy addresses various situations -that could cause an employee personal expense necessitating reimbursement. This Travel Expense Reimbursement Policy is applicable to all City staff, elected and appointed officials. I. TRANSPORTATION PMENSES 1. Use of Personal Vehicle Employees shall be reimbursed for mileage incurred in the use of their private -ehicle as the result of. City sponsored travel that exceeds that used in the .ormal transportation to and from work. Employees will be reimbursed for mileage traveled at a per mile rate as established by the City, as part of periodic studies of IRS, local market and other data reflecting average reimbursement rates (except as otherwise negotiated). No additional mileage reimbursement will be made. Reimbursements will be made upon submission of the proper expense reimbursement request: If an employee uses a personal vehicle, or other personal means of transportation (ie., plane, 'motorcycle) the employee's insurance will be responsible for any loss or damage, including bodily injury or property - damage, except where workerscompensation is applicable. A. Travel From Residence or Worksite on a Work Day - Should ',the employee travel from their) residence or from the assigned work site' on a normal work day, reimbursement shall be,made for any private mileage exceeding the miles normally traveled. Example: Employee resides in Pomona and is. sent tp Los Angeles. The normal workday mileage to and from the City is 15 miles. The mileage to and from Los Angeles is 45 miles. 'The employee will be reimbursed for 30 miles. If the mileage traveled is less than what would normally be traveled to and from the City, the employee is NOT entitled to reimbursement. ty Effective Date: February 8, 1993 .Division Manager ADMINISTRATIVE POLICY Subject: TRAVEL EXPENSE REIMBURSEMENT POLICY C 0 V I N -A Page. 2 B. Travel on a Non -Scheduled Work Day - Should the employee travel on a day which is not a normal work day, for training, meetings, etc. they may be reimbursed for mileage incurred from conducting City related business, provided their Department Head has approved the travel. This does not apply to employees coming into the work site on a non -work day for required meetings, work, etc. 2. Use of City Vehicle In lieu of using personal vehicles, employees are encouraged to check out a City vehicle to be used for City business. Employees will be reimbursed for actual fuel or other needed vehicle related purchases upon submission of receipts and proper expense reimbursement request. Vehicles should be fueled at the City yard prior to travel and upon return. City vehicles are self - insured by the City.. 3. Use of Rental Vehicles The .use ofrental vehicles must be determined to be a necessary convenience and be approved by the Department Head prior to travel in order for the. expense to be.reimbursed. Receipts are required for reimbursement of rental vehicle expenses. No reimbursement will be made for the purchase. of insurance, as the City self -insures this risk. 4. Use Air Transportatib When travel requires the use.. of airlines all efforts should be made to use the CityyIs contracted vendor.. The City will make payments directly to the airline or travel agency. In the event funds must be given to the employee, a copy of the ticket and/or a paid receipt is required upon return to the City. No reimbursement will be made for flight insurance, in-flight alcoholic beverages, or in-flicfht entertainment. 5. Miscellaneous Transportation Expenses Upon the submission of receipts, employees will be reimbursed for parking, taxi, bus or other related miscellaneous transportation. expenses provided the expense is business related: 6. Use of Most Economical Mode of Transportation Employees are encouraged to utilize the most economical mode of available transportation to the destination. If a more economical mode of transportation is available, but not used by the employee, a Department Head may limit any reimbursement to the amount of the less expensive mode of transportation. • F W E S T ¢ ADMINISTRATIVE POLICY Subject: TRAVEL EXPENSE REIMBURSEMENT POLICY V.-1 N Page 3 II. MRALB % I wiDma" EXPM1888 When attendance at training, meetings, conferences etc. requires the employee to incur expense for meals not included in the cost of such events, the following expense allowance will be provided: 11. Expense Allowance !When an employee travels away from the City for the purpose of conducting City business an expense allowance will be provided for- meal and incidental expenses. Upon request and approval of.the Department Head,'', the expense allowance may be provided to the employee prior to travel. The expense allowance shall include all days. spent at the approved destination and any necessary travel days -to and from the destination. The allowance provided, including incidentals, will be a maximum of forty-one dollars ($41.00) per day anless in a designated high.cost City (61.50). Receipts to support expenses shall be provided. A written explanation shall be provided in those cases where a receipt is not available (eg. a group sharing one receipt). No expense allowance will be provided for meals included in the'' registration or otherwise provided during the course of a meeting, training''', conference, etc. whether or not the*employee chooses to take advantage of the meals (including continental breakfasts).. Meals included as part of the registration fee shall be deducted from the expense allowance. Expenses for alcoholic beverages, cover charges or entertainment are NOT reimbursable. Any funds not used or properly supported by receipts are•oved to ;,the City and shall be returned. 2. Meals Exuense Schedule The following meal allowance shawl apply: 'Standard High Cost City Allowance Allowance. Breakfast $•6.00 $ 9.00 Lunch $ 9.00 $13.50 Dinner $17.00 $25.50 Incidentals $ 9.00 $13.50 receipts for individual meal expenses are required. All tips or other rr atuities are included as part of the meal or incidental allowance. If the st of a meal is included as part of a program the fee as stated for the ogram will be1.allowed (ie. attendance at.a professional.organization ncheon, Chamber meeting, etc). Actual reimbursements will be based on the O F W E S T C O V 1 ADMINISTRATIVE POLICY Subject: TRAVEL EXPENSE REIMBURSEMENT POLICY Page 4 amount spent per day not per meal, with $41 ($32 meal cost plus $9 incidental) being the maximum reimbursable amount ($61.50 in designated high cost cities). 3. Incidental Expenses Incidental expenses include: Gratuities, personal telephone calls of short duration or other minor unforseen'expenses incurred by the employee relating to City business (ie. snacks, beverages, meal cost, minor office supplies (pen, paper) or other similar items). Items .such as magazines, books, newspapers, cleaning, gifts, entertainment,. gambling, alcohol, tobacco, personal hygiene items or other similar items are not reimbursable. Receipts . .and/or s written list of expenses incurred, is required to substantiate expenses. Incidental expenses for travel of less than one day will be prorated based on a rate of $3'.00 per meal ($4.50 in designated high cost cities). No incidental expense will be allowed for travel of less than one day for which meals are provided as part of a.program or meeting. 4. Designated high Cost Cities Designated high cost.cities.are: New York, San Dieqo, Washington D. C., Santa Barbara, Monterey, San Francisco or an immediate suburb of a high cost City (ie. located within a 10 mile radius of the boundary of a designated high cost city) .,A Department Head is authorized to grant an additional amount not to exceed twenty dollars and fifty cents ( $2 0.50 ) per day to the allowed expenses as noted above for travel to a designated high cost city. 5. V.I.P. Rate The City Manager and Department Heads will be eligible for business meal reimbursement at the high cost city rate when entertaining a 'IV.I.P. For those purposes, a "V.I.P." is someone who is in a position to help further the City's interests. The V.I.P. rate is paid regardless of location. Receipts are required. y 1111. LODGING EXPENSE ,e City will pay the actual cost of lodging for. an employee only,, directly to ,e hotel. In the event funds must be given to the employee prior to travel, hotel receipt showing the actual amount paid is required upon return to the .ty.. An attempt should be made to select hotels and motels with reasonable .tes and to take advantage of discounts provided by any sponsorinc ganization/agency whenever possible. Reimbursement for lodging at meetings, - inferences, etc. located within a 50 mile radius from the City of West Covina undary'must.receive Department Head approval.before traveling. ADMINISTRATIVE POLICY Subjett: TRAVEL EXPENSE REIMBURSEMENT POLICY IV. C° O V I N Page 5 Employees may request reimbursement for additional expenses incurred which are directly related to 'City business, but not included under one of the above categories. Receiptsiand a written explanation for incurring the expense are required. Specifically excluded from reimbursement is any expense in excess of the limits established in categories I, II, and III above. Unless pre -approved by the Department Head, reimbursement for additional expenses is subject to denial if in the opinion of the Department Head, the incurring of the expense is not justified. An example would be if a. department head requests an employee to purchase tapes of a training session for use by other members in their Department. The City Manager may approve any additional expenses or lexpenses in excess -of limits established in this policy. `EIMBURSEMENT PROCEDIIRE All employees traveling on City business for which the city has, or will pay - for all or a portion of the costs, must submit a Travel Expense Report within ten calendar days of. returning. All reimbursements are subject to budget appropriation limitations and Department Head approval. The assignment of proper account numbers,submission of receipts in an orderly fashion, proper documentation of expenses, and accurately completed reimbursement forms are the responsibility of the employee. Incomplete forms, missing information, etc. will be returned by, Finance to the Department Head for review and correction-. The Finance Department may audit and/or correct travel expense reports prior to processing. Employees will be sent a copy of any, changes made by the Finance Department in processing their report. The travel expense. report must be signed -by both the employee and Department Head. Completed reimbursement forms shall be returned, to 'the Finance Department within ten calendar days of -an employees return to the City or claim for'.expenses may be denied. \c:wp\trave1.po1\1-93 Employee's Name Travel Destination Travel Expense Report Travel Date(s) Purpose This Travel Expense Report must be returned to the Finance Department within 10 calendar days of return or claim for expense reimbursement may be denied. Reimbursement is for actual expenses only. Unused City prepaid expense allowances must be returned to the City at the time the expense report is submitted. I Transportation Expenses III Lodging Expense Miles eligible for reimbursement* Room Rate $ X. _ $ _ (*Round trip miles less normal miles traveled to work) (with tax) (no. of days) Vehicle Used: City Personal If Personal: $.26 x . Miles = $ If City Vehicle: Fuel Expense: $ (Receipts Required) Miscellaneous Transportation Expense: Taxi, Parking, Bus .(Receipts) $ Airfare (Receipts) $ (City Paid Y_ N _ ) Vehicle Rental (Receipts) $ (City Paid Y - N _ ) Total All Transportation Expense: $ II Meals & Incidental Expenses Amount of prepayment for meals and incidental expenses received: $ Actual Meal Expense - Receipts Required Normal High Cost Breakfast ($6 $9) $ Lunch ($9 $13.50) $ Dinner ($17 $25.50) $ Total Actual Meal Expense: $ For limits on meal reimbursement amounts see. back of expense report. Number of meals paid for in registration fees: Breakfast Lunch Dinner Total amount deducted for meals provided <$ > Incidental Expenses: If meal(s) are included in the registration fee, then no incidental expense will be provided. Incidental expenses are based on a maximum rate of rate of $9 per day, $13.50 in high cost cities. Total Incidental Expenses: $ City Paid Yes No Traveling with non -City Employee. Y N Department Head Advance Approval for lodging within 50 mile radius of West Covina Y N_ IV Additional Expenses Additional expenses are any unforeseen expenses not provided for under the City's expense reimbursement policy, which are directly related to City Business. Attach receipts and explanation of expense. Specifi- cally excluded from reimbursements is any expense in excess of the limits established for items covered in categories I, II, and III of this policy. Total Additional Expenses $ All expense reimbursements are for employee only. Receipts are required. Total Actual Expense Meals & Incidentals $ l Do`NOT send Cash in the,maj I Employee Signature Date Department Head Review/Approval Date Revised 12/93 White & Yellow - Finance Pink - Department Administrative Travel Expense Reimbursement Policy Overview I Transportation Reimbursfement Employees shall be reimbursed for mileage incurred in the use of their private vehicle as the result of City sponsored travel that exceeds that used in normal travel to and from work. Employees will be reimbursed for mileage traveled at an established per mile rate. No additional millage reimbursement will be made. If an employee uses their personal' vehicle or other personal vehicle or other personal means of travel, their insurance is responsible for any loss. Employees are encouraged to check out a City vehicle to be used for City business. Employees will be reimbursed for actual fuel or other needed vehicle related expenses upon submission of receipts. Vehicles should be fueled at the City Yard prior to travel and upon return. The use of rental vehicles in be determined to be a necessary convenience and be approved by the Department Head prior to travel. Receipts are required for reimbursement. When travel requires the use of airlines, the City will make payments directly to the airline or travel agency. In the event funds, must be given to the employee or the employee pays the travel costs, a copy of the ticket and/or a paid receipt is required upon return to the City. No reimbursement will be made foriflight insurance, in-flight alcoholic beverages, or in-flight entertainment. Upon the submission of receipts, employees will be reimbursed for parking, taxi or other miscellaneous travel expenses provided the expense is business related. II Meals & Incidental Expe The expense allowance provided, .including incidentals,.will be a maximum of forty-one dollars ($41.00) per day'unless in a high cost City ($61.50). Receipts to support expenses are.required. A written explanation shall be provided in those cases where a receipt is not available. Expense allowances will be calculated based on the number of meals and incidental'erpense eligible per day for City reimbursement. No allowance will be provided for meals included in the registration or otherwise provided, whether or not the employee chooses to take advantage of the meals (including continental breakfast). Meals included as part of the registration fee shall be deducted from any prepaid allowance. Expenses for alcoholic beverages are. NOT reimbursable. Any funds not used are owed to the City and shall be returned to the City with the submission of the expense report. i Meal Expense Schedule - The following rates will be use to. calculate allowances*: Standard High Cost City (Allowance Allowance Breakfast $ 6.00 $ 9.00 Lunch $ 9.00 $ 13.50 Dinner . $ 17.00 $ 25.50 Incidentals $ 3.00 (per meal) $ 4.50 (per meal) *Actual reimbursements will be based on actual expenses within the allowable daily limit. All tips or other gratuities are included as part of the meal or incidental allowance. If the cost of a meal is included as part of a program for which a registration fee is paid, the fee as stated is allowable (i.e. attendance at a professional organization. luncheon etc.). Incidental expenses include: Gratuities, personal telephone calls of short duration or other minor unforeseen expenses incurred by the employee relating to City business (i.e. snacks, beverages, office supplies or similar items. Items such as magazines, books, newspa- pers, cleaning, gifts, entertainment, +gambling, alcohol, tobacco, personal hygiene items or similar items are not reimbursable. Receipts and/or a written list of expenses incurred, is required to substantiate expenses. Incidental expenses for travel of less than one day will be prorated based on a rate of $3001per meal ($4.50 in high cost cities). No incidental expense will be provided''for meals which are included in the registration fee or otherwise provided. Designated high cost cities are: New York, San Diego, Washington D.C., Santa Barbara, Monterey, San Francisco or immedi- ate suburb thereof (i.e.. located within a 10 mile radius of the boundary of the designated high cost city). Department Heads may request a V.I.P. rate equal to the high cost city rate for expenses on behalf of the City in working with individuals directly related to City business. i III LodLinL Expenses The City will pay the actual cost for lodging directly to the hotel. In the event funds must be given to the employee prior to tray a, a hotel receipt showing the actual amount paid is required upon return to the city. An attempt should be made to select hotels and motels with reasonable rates and to take advantage of any discounts provided by sponsoring organization/agency. Lodging within a driving distance within a 50 mile radius of West Covina is discouraged and must receive prior Department Head approval. IV Additional Expenses l ! la t City business provided the expense is not included in one of Employees may request reimbursement for additional expenses related o y , p p the categories. listed above. Receipts and written justification, with department head approval are required for submission for reim- bursement. Suhmission of Reimhursement Request All employees traveling on City business for which the City has, or will pay for all ora portion of the travel related costs, must submit a Travel Expense Report within tcn calendar days of returning to the City. All reimbursements are subject to budget appropriations and department head approval. Incomplete forms, forms missing information or receipts, etc. may be returned by Finance to the Depart- ment Head or employee for correction. Employees should refer to the City's Administrative Expense Reimbursement Policy for further information. Questions my be directed to the Finance Department. dh1DAPM4\TRAVEL.PN15 I