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HomeMy Public PortalAboutADM-107_Travel Expense Policy_Effective 10-01-2018 City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 1 of 9 Approved by: City Manager Shaun Mulholland SECTION 1.0: PURPOSE The purpose of this policy is to establish policy and procedures to cover expenses incurred while travelling for City business. SECTION 2.0: SCOPE This policy applies to all City employees, volunteers and officials both appointed and elected (“City Personnel”). This Policy regulates payments made for the reimbursement or direct payment of expenses incurred by city personnel in connection with the performance of services for the city. City business includes, but is not limited to general business meetings, professional conferences/seminars, site visits, special assignments and training sessions. City issued credit cards should be used to the extent possible for direct payment of travel related expenses. Those employees that have not been issued a credit card will be reimbursed for expenses only as permitted and outlined below. SECTION 3.0: DEFINITIONS GENERAL BUSINESS MEETINGS - Meetings with individuals or appearances before courts, official bodies, and agencies for negotiation, discussion, review, coordination, inspection, investigation, or because of legal necessity. PROFESSIONAL CONVENTION, CONFERENCE, SEMINAR - A meeting of a professional organization, or division thereof, that is open to attendance by all members and other interested parties and at which subjects of general interest are discussed. SITE VISIT - Travel to a particular site to personally observe operational or managerial activities. SPECIAL ASSIGNMENT - Travel to a particular location to carry out a City responsibility. City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 2 of 9 Approved by: City Manager Shaun Mulholland TRAINING SESSION - Attendance at an institute, seminar, symposium, or lecture series where a specific course of instruction is provided, or opinions are gathered on a subject, and at which the parties formally participate in the discussion or training course. INCLUDABLE EXPENSES - Reasonable and necessary costs associated with transportation, lodging, meals, transportation and incidental expenses necessary to transact bona fide city business that are supported by complete transaction evidence and substantiated payments to others. EXCLUDABLE EXPENSES − Personal Expenses − Entertainment and Movies − Fines for Traffic Violations − In Room Movie Charges − Laundry and Valet Service − Expenses of a Spouse, Dependent, or Other Person or Persons Accompanying an Individual on a Business Trip − Unsubstantiated Expenses. SECTION 4.0: POLICY & PROCEDURE DETAIL 4.1 City Purchasing Policy and Other Agreements This Policy shall not be interpreted or applied in such a way so as to circumvent the city’s Purchasing Policy, collective bargaining agreements or employment contracts. Expense reimbursements and advances must have a city business connection and are considered as such when expenses are incurred in connection with the performance of services and duties as city personnel appropriately authorized and approved. City personnel are expected to exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business. It is intended that the frequency and duration of travel be confined to essential purposes; and, that economical arrangements are used, consistent with established policy. City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 3 of 9 Approved by: City Manager Shaun Mulholland 4.2 Authorizations and Approvals A. Department Head Authorization and Approval. Prior department head authorization is required for any activity involving the incurrence of reimbursable or direct expenses in accordance with this Policy. B. Notification to City Manager. Department heads shall notify the city manager when they will be out of the city overnight on city related business; arrangements to be reached in case of emergency shall be included in the notification. 4.3 Expenditure and Reimbursement Expense reimbursements are contingent on the availability of sufficient budgetary spending authority. By authorizing the payment of an expense reimbursement or advance, the responsible department head is assuring that the expenditure is within the purpose of the appropriation to which it is charged and that there are sufficient funds available. A. Substantiation. City personnel must substantiate business expenses by providing evidence of the amount, date, time, place – to the extent provided for, and evidenced by, third party generated receipts – and business purpose of the expenses within fifteen (15) business days upon conclusion of activity. Requests for expense reimbursement in connection with approved local travel by personal vehicle are to be submitted monthly in accordance with Section 4.6.E below. 1. It is the responsibility of the submitting party to ensure the timeliness and completeness of supporting documentation. Original receipts or photocopies may be used for substantiation of expenses and must be arranged in date sequential order. 2. Incomplete or unclear supporting documentation shall be returned unacted upon to originator for addressing and re-submittal. 3. The appropriate forms for documenting substantiation of bona fide business expense reimbursements, or to request an advance for estimated expenses, are: a. Request for Expense Reimbursement or Advance. Prior to submitting to the Finance Department for processing, requests for expense City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 4 of 9 Approved by: City Manager Shaun Mulholland reimbursement or advance must be reviewed by the responsible department head to determine that the business purpose and amounts are reasonable, appropriate and have been calculated correctly. The Finance Department shall review the report for evidence of department head’s approval, that supporting documentation has been attached, that mathematical footings and extensions are correct, and that expenses have been coded to the proper budgetary expenditure account. City Manager approval is required for expense reimbursements or advances of $5,000 or more in accordance with the purchasing policy. b. Mileage Reimbursement. This form is used for the reimbursement of approved travel and local travel by personal vehicle in accordance with Section 4.6.E below. Department Heads will approve requests for members of their respective staff. City Manager approval is required for Department Head reimbursement. 4. Expense Disallowance A request for reimbursement may be disallowed for any expense item or items deemed to be inappropriate, unreasonable, unauthorized, or contrary to the intent of this Policy. If an expense is disallowed, City personnel shall be notified of disallowance and the reason therefor. Disallowed expenses shall be the responsibility of the individual seeking reimbursement. 5. Other City Personnel Expenses City personnel may be reimbursed or may make direct payment for expenses incurred for other city personnel provided the specific business reason necessary for doing so is indicated along with the names of those involved. This is intended to be used for those common types of travel situations where it is normal and practical for one (1) individual to pay for an expense rather than be divided among all individuals. Examples may be a restaurant bill or hotel charge for which a room was shared. 6. Extenuating Circumstances It is recognized that circumstances may arise which prevent strict adherence to this Policy. Those instances will be considered and evaluated by the City Manager on a case-by-case basis taking into consideration reasonableness and appropriateness. The City Manager may approve unusual travel or other expenses not covered by this Policy or may modify procedures for the payment of travel or other expenses. The need for reimbursement of unusual travel or other expenses, including supporting documentation and justification, shall be made in writing to the City Manager. City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 5 of 9 Approved by: City Manager Shaun Mulholland 4.4 Advances A. Travel Advances. It is expected that the City be invoiced directly by third parties for purchased transportation, lodging and fees/registrations. City personnel may, under certain limited circumstances, request an advance of estimated out-of-pocket expenses provided that such advances are: 1. Not used for the purposes of convenience or as a substitute for inefficient planning; 2. Justified by demonstrating personal hardship by not doing so; 3. Properly authorized and limited to established needs; and 4. Settled within fifteen (15) business days upon conclusion of travel and submission of expense claims. B. Substantiation. The appropriate form for documenting advance requests is the Request for Expense Reimbursement or Advance. 4.5 Meals When the city requires, or the need occasions city personnel to travel overnight, the city shall make reimbursement for the cost of meals, tips, tax and gratuities at the Government Services Administration (GSA) per diem meal rates for the area where the activity occurs. Reimbursements will be granted provided the following criteria is met: − Receipts are submitted to substantiate that a meal was purchased. − No more than three (3) meal receipts per day may be submitted for reimbursement. − For days that city personnel are traveling to or from an overnight destination only meals consumed during the travel period will be reimbursed. − No allowance will be made for meals when travel does not include an overnight stay. Exceptions: 1) travel is conference or seminar related, 2) travel is preapproved by the department head, 3) reimbursement is required by collective bargaining or employment agreement. − For circumstances where meals are pre-paid, are part of the fee charged for an event, or provided at no charge, the City will not provide reimbursement for meals taken at some location or outside of that event for that time period. City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 6 of 9 Approved by: City Manager Shaun Mulholland − Credit cards may be used for meal expenses however users may only charge the maximum of the authorized per diem amount for any given meal. 4.6 Transportation The City should be invoiced directly by third parties for purchased transportation except when a City issued credit card is available allowing for direct payment. Otherwise such costs are the responsibility of the individual and subject to reimbursement in accordance with this Policy. A. Means of Transportation. City personnel must utilize the most economical and practical means of conveyance. Public transportation shall be used where practical. If an indirect route is taken for personal reasons, any additional costs incurred as a result of that route will not be reimbursed. B. Rental Vehicles. The utilization of rental vehicles is not permitted without the express prior approval of the department head. Auto rental optional insurance shall be purchased through the rental company agreement and that expense will become part of the overall rental fee and be processed as all other travel fees are processed. The rental vehicle chosen must be the most economical available, given the purpose for which the vehicle will be used. When traveling with other City personnel, travelers should share vehicles to minimize costs. C. Common Carrier Fare. Round trip common carrier fare (air, train, bus, et cetera) is eligible for reimbursement provided it is coach class. First-class air travel is prohibited, except for emergency conditions as determined by the department head. Luggage fees are reimbursable when reasonable. D. Ground Transportation. Whenever possible, ground transportation (airport bus or public shuttle) shall be used to/from the airport. Taxis may be used only when: a) public ground transportation is not available; b) the cost for a taxi is cheaper; c) round trip tax fare from home or office is cheaper than the mileage plus parking expenses. 1. Uber and other similar pay for transportation service is considered a Taxi service for purposes of this policy. City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 7 of 9 Approved by: City Manager Shaun Mulholland E. Personal Vehicle Usage. The appropriate form for documenting mileage using personal vehicles is the Mileage Reimbursement Form. The use of personal vehicles shall be reimbursed for approved travel measured from either the persons home or regular place of work, whichever is less. When more than one (1) person travels in the same automobile, only the owner of the vehicle shall be allowed mileage. The routing of each trip for mileage computation shall be by the most common traveled route unless unusual circumstances warrant other less direct routes. 1. Personal vehicle use reimbursement shall be based on the GSA mileage reimbursement rate. This rate is all inclusive to cover all vehicle expenses including proportionate costs of insurance as well as other vehicle operational costs. Mileage figures indicated on the Mileage Reimbursement Form are to be rounded to the nearest whole mile. 2. Other expenses, such as toll charges for bridge, turnpike use, and parking charges, are allowable and may be submitted for reimbursement. F. Liability The City’s property and liability insurance carrier does not insure personal vehicles – only municipal-owned vehicles. Therefore, the use of personal cars for City business is not directly insured by the City’s property-liability insurance carrier. City personnel who use their personal vehicles to conduct city business several times each week and who occasionally transport other private (non-City personnel) individuals should have Business Use Coverage in addition to regular insurance. In the event of an accident, an individual’s auto insurance carrier should respond and cover damages per policy limits. The City’s insurance coverage is never primary; it is only excess coverage over and above private coverage. Claims made against city personnel should be covered by the individual’s own insurance. If city personnel using a personal vehicle are involved in an accident while working within the scope of city duties, and are sued, it would be up to the City’s insurance carrier to work with the individual’s insurance company to cover the liability. The City’s insurance policy would act as secondary insurance after private insurance coverage was relied upon first. City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 8 of 9 Approved by: City Manager Shaun Mulholland Volunteers-City departments must have a record indicating that an individual is a volunteer for the City; the volunteer must have been acting in good faith and within the scope of his or her duties with the City; and the damage or injury must not have been caused by the willful, wanton, or grossly negligent misconduct of the volunteer. The City should provide written confirmation that a volunteer is recognized as a volunteer of the City. It is understood that City personnel who use their own vehicle on City business, and who are reimbursed for this use, shall maintain and have in effect private vehicle insurance. 4.7 Lodging It is expected that the City be invoiced directly by third parties for purchased accommodations except when a City issued credit card is used. Otherwise such costs are the responsibility of the individual subject to reimbursement in accordance with this Policy. City personnel are to stay in moderately priced, safe establishments. No City personnel shall be allowed lodging expenses while in the City of his/her official domicile. It is expected that where lodging facilities are designated in connection with a conference or seminar that those accommodations will be utilized. In those instances where a lodging upgrade is affected (for example in order to accommodate non-City personnel) the cost of the upgrade (the difference in cost between suitable accommodations and upgraded accommodations) shall be the expense of the individual. 4.8 Other A. Association Officer Expenses. Occasionally, members of associations are invited to serve in an official capacity in their various recognized professional associations. This type of undertaking requires the expenditure of time and money, but often the membership will reflect favorably upon the City. The City encourages this practice by reimbursing employees for reasonable expenses incurred for travel, lodging and meals as set forth within this Policy. Where these costs are paid by a recognized professional association, City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES Travel Expense Policy Policy Number Effective Date Last Revision Page No. ADM-107 10/31/2017 10/1/2018 Page 9 of 9 Approved by: City Manager Shaun Mulholland reimbursement shall not be provided by the City. B. Gratuities. The City will reimburse or permit direct charges to City issued credit cards for the following costs, at the amounts indicated: 1. Taxi service tips -15% to 20% 2. Maid or housekeeping services (tip daily) -$3 per day. 3. Baggage handling for check in day and check out day-$1 per bag per day. 4. Parking attendant/valet- $2 to $3 per use. C. Incidentals. Incidental expenses will be reimbursed at the GSA per diem rate per day. SECTION 5.0: PROCEDURES (Included in Section 4.0) SECTION 6.0: REFERENCES (Charter/Code/State Statues) 1) GSA Per Diem Rates; https://www.gsa.gov/travel/plan-book/per-diem- rates/per-diem-rates-lookup 2) City of Lebanon, Council Rules A191-18 Attendance at Seminars, Workshops, Etc. 3) City of Lebanon, Credit Card Policy ADM-106. SECTION 7.0: POLICY & PROCEDURE REVISION HISTORY Section Revisions Date Original Adoption 3/24/2004 Amendment Gratuities, Misc. 10/31/2017 Amendment Re-Formatted, changes through out 8/24/2018 Amendment 4.6 – E Personal Vehicle Usage – Removed “For Example:” 10/1/2018