HomeMy Public PortalAbout133.3 - Executive Offices - Chief Administrative Officer - Reimbursable ExpensesAdministrative Offices
Consultant Contracts Section 133.3
Policies and Procedures Manual Page 1
133.3 SUBJECT: REIMBURSABLE EXPENSES
:1 OBJECTIVE:
Provide rules governing reimbursable expenses for consultants and other contractors.
Ensure that limitations are fully understood.
:2 AUTHORITY:
This procedure amended by City Council October 27, 1997.
:3 DIRECTION:
Chief Administrative Officer, as an appointed official, serves at the pleasure of, and
receives direction from the Mayor.
:4 METHOD OF OPERATION
A. Dollar Limits Identified by Task
Consultant agreements and other contracts should include strict upset limits
(not estimates) for reimbursable expenses. Dollar limitations should be
identified by task.
B. Definition of Reimbursable Expenses
Reimbursable expenses are defined as actual out-of-pocket expenses
necessary in the performance of a contract. Contracts should not provide for
reimbursement of traditional business operating expenses, but not limited to,
computer time, word processing time, and minor copying. Contracts should
not provide for reimbursement of expenses which could be categorized as
"entertainment." Any reimbursement of business operating expenses or
"entertainment" expenses requires advance written approval of the Mayor or
CAO. "Entertainment" expenses shall include sporting events, theatrical
productions, concerts and similar activities, but do not include breakfast,
lunch or dinner.
C. Reasonableness of Expenses
Consultant agreements and other contracts should state that payment of
reimbursable expenses will only be made for reasonable actual expenses.
D. Advanced Approval For Consultant or Contractor Travel
The Project Manager or other City official as specified in the contract
(hereinafter, "City official") should require the consultant to submit travel
itineraries for advance approval. For ease of invoice review, the Project
Manager or City official should assign a Trip Number at this time which the
consultant will use to document all receipts submitted for reimbursement of
travel expenses.
E. Specific Travel Expense Limitations for Consultants and Other Contractors
Consultant agreements or contracts should include provisions consistent with
City Policy for employee travel, as follows:
Administrative Offices
Consultant Contracts Section 133.3
Policies and Procedures Manual Page 2
1. Airline Travel
All travel should be by economy or tourist class, at the lowest fares
obtainable.
2. Car Rentals
Car rentals should be small or mid-sized cars, arranged at the most
economical rate. The City will not reimburse for car rental insurance.
3. Lodging
Expenses may vary but should be reasonable. Government rates
should be requested whenever possible. In Orlando, the Project
Manager or City official should be contacted to obtain local
government rates at nearby hotels.
4. Meals
Reimbursement for meals in Orlando and for travel to major cities (a
list of which is maintained by the Accounting and Control Bureau)
should be based on the actual cost of each meal not to exceed the
following:
Breakfast $ 6.00 includes tip & tax
Lunch $ 9.00 includes tip & tax
Dinner $15.00 includes tip & tax
Reimbursement for non-major cities should be based on actual cost,
not to exceed the following:
Breakfast $ 5.00 includes tip & tax
Lunch $ 7.00 includes tip & tax
Dinner $13.00 includes tip & tax
In cases where the traveler did not find it necessary to spend the night
out of town, but was unable to return home by 7:00 p.m. in time for
dinner, reimbursement will be allowed for the evening meal.
Similarly, when the traveler finds it necessary to leave home before
7:00 a.m., reimbursement for breakfast would be in order.
5. Gratuities
Gratuities (tips) are recognized as a legitimate part of the cost of
travel and a proper charge against the City when such expenses are
necessary. All payments of this type should be kept to a minimum.
6. Telephone Calls
Necessary telephone calls may be claimed on the reimbursement
voucher. In the case of tolls against the hotel bill, the points and
parties between which the calls were made must be stated on the
voucher with the reason they were made. If out of town travel
extends three (3) days or more, one 3 minute personal call home is
Administrative Offices
Consultant Contracts Section 133.3
Policies and Procedures Manual Page 3
allowable for reimbursement. No other personal calls are
reimbursable.
F. Alcoholic Beverages
Reimbursements for alcoholic beverages are strictly prohibited.
G. Local Travel
Travel between locations within Orange County may be reimbursed, but only
up to the maximum rate allowed by the Internal Revenue Service.
H. Subcontract Services
Reimbursement is permitted for subconsultant services rendered in support of
the scope of work. Fees paid for such services shall be according to the same
terms and priorities identified herein. No surcharge will be payable to the
prime consultant for reimbursable expenses incurred by subcontractors.
I. Review of First Invoice
A formal, thorough review of the first invoice submitted for payment should
be made with the consultant's or contractor's representative.
J. Invoice Approval and Signature
The Project Manager or City official should sign each invoice indicating
approval. The contract payment should not be released prior to this approval.
K. Expense Documentation
The Project Manager or City official should request legible receipts from the
consultant or contractor and explanatory details sufficient to explain the
reason for the expenditure and its relationship to the contract task. Where
appropriate, Travel Expense Reports should be submitted with associated
receipts.
L. Questionable Reimbursed Costs
Expenses that have been reimbursed to the consultant but are deemed
questionable by the Project Manager or City official after the fact, should be
reviewed with the consultant or contractor and additional supporting
documentation obtained. Any unjustified amounts should be returned to the
City with interest at 1% per month.
M. Procedure for Reimbursement
The City's Invoice format should be used by contractors and consultants for
each task for submission of that task's reimbursable expenses.
:5 FORMS:
Reimbursable Expense Form and/or other appropriate expense forms.
:6 COMMITTEE RESPONSIBILITIES:
Administrative Offices
Consultant Contracts Section 133.3
Policies and Procedures Manual Page 4
None.
:7 REFERENCE:
This procedure adopted by City Council March 26, 1990, October 27, Item 2A-34;
amended June 14, 1993, Item 4-Q; amended July 24, 1995, Item.7-U; amended
October 27, 1997, Item 5-DD.
:8 EFFECTIVE DATE:
This procedure effective October 27, 1997.