HomeMy WebLinkAbout03.j. Adopt revisions to Board Policy 008-Travel Expense ReimbursementCentral Contra Costa Sanitary District
3.'
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: December 4, 2014
Subject: TRAVEL EXPENSE REIMBURSEMENT POLICY REVISIONS
Submitted By: Initiating Dept. /Div.:
David Heath, Director of Administration Administration
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
T. Vassallo, Finance Manager, CPA, CMA fox
m Roger S. Bailey
Counsel or the District General Manager
ISSUE: District staff has held several meetings exploring options to improve and
streamline the administration of reimbursing travel expenses incurred by Board
Members and District staff. As a result, staff is recommending a revised Travel Expense
Reimbursement Policy. Staff is also recommending that the actual policy be separated
from the procedure whereby the Board would approve the policy and authorize the
District General Manager to implement procedures, practices and systems to ensure
policy compliance.
RECOMMENDATION: Approve revised Travel Expense Reimbursement Policy.
FINANCIAL IMPACTS: Negligible. The current District daily reimbursement rate for
meals is $64 and the recommended IRS approved Federal Government General
Services Administration (GSA) per diem rates for meal reimbursement range from $56
for a low -cost city to a high of $71 for a high -cost city. (See Attachment 1 on typical per
diem rates prepared using the past few years of conference attendance log information
listing cities where the majority of conferences were held).
ALTERNATIVES /CONSIDERATIONS: None identified or offered at this time.
BACKGROUND: The last Travel Expense Reimbursement Policy revision was
approved by the Board on December 20, 2012. The primary changes to the revised
policy being recommended are as follows:
Adoption of the GSA per diem rate method of reimbursement for meals which
eliminates the requirement to submit receipts per Internal Revenue Service
regulations. This will reduce the administrative burden of submitting and auditing
District employee travel reimbursement claims. Board Members would still need
to submit receipts based on Government Code 53232.3 and Assembly Bill 1234
which require elected and appointed officials to submit receipts documenting
each expense claimed. All documents related to reimbursable agency
expenditures are public records, subject to disclosure under the California Public
Records Act.
Travel and Expense Reimbursement Policy Revisions Page 1 of 2
POSITION PAPER
Board Meeting Date: December 4, 2014
subject: TRAVEL EXPENSE REIMBURSEMENT POLICY REVISIONS
Introduces a standard Travel Approval and Estimate Form which requires pre -
authorization of travel and conference related expenses to be completed by
District staff and approved by District management in advance of any
commitments of District funds. This requirement provides for improved internal
controls and will ensure that District funds are not obligated via travel
arrangements in advance of District management approving such commitments.
The form will also support validation of the travel reimbursement claim audit
process upon the employee's return to District offices.
• Eliminates reimbursement for meals included in the cost of conference
registration.
• Transfers approval authority of the Board's Travel Expense Reimbursements to
the General Manager instead of the President or President Pro -Tem.
• Allows District staff that have been issued purchasing credit cards to pay for the
hotel invoices at check -out without Manager approval given that a Travel
Approval and Estimate Form was approved prior to travel.
• Designates Google Maps as the authority used to estimate all mileage
reimbursement for consistency purposes.
• Defines local travel as at least 60 miles away from the District to qualify District
employees for lodging.
A copy of the proposed revised Travel Expense Reimbursement Policy (BP 008) is
included as Attachment 2, and a copy of the current policy is included as Attachment 3.
COMMITTEE RECOMMENDATION: The Administration Committee reviewed the
suggested revisions at the October 21St and November 7th committee meetings. The
Committee recommends adopting the GSA per diem method of reimbursement for
meals and separating the Travel Expense Reimbursement Policy from the Travel
Expense Reimbursement Procedures for which the District General Manager is granted
authority to maintain in the interest of ensuring policy compliance.
RECOMMENDED BOARD ACTION: Approve proposed revisions to Board Policy (BP
008) Travel Expense Reimbursement, effective December 4, 2014.
Attached Supporting Documents:
1. Typical Per Diem /Meal Rates for Conference Cities
2. Proposed Revised Travel Expense Reimbursement Policy
3. Current Travel Expense Reimbursement Policy
N:\ADMINSUP\ADMIN \DIST- SEC \Executive Assistant Task Files \Travel Policy Update 11 -1 -13 \Travel Policy Approval Position
Paper for December 4th Board Meeting.docx Page 2 of 2
ATTACHMENT 1
TYPICAL PER DIEM /MEAL RATES FOR CONFERENCE CITIES
Per Diem
Maximum Per Diem Rate
for Breakfast/Lunch /Dinner
New York, NY
$71
$12./ $18 / $36
Washington, D.C.
$71
$12 / $18 / $36
New Orleans, LA
$71
$12 / $18 / $36
Chicago,IL
$71
$12 / $18 / $36
Palm Springs
$71
$12 / $18 / $36
Monterey
$71
$12 / $18 / $36
Newport Beach
$71
$12 / $18 / $36
Los Angeles
$71
$12 / $18 / $36
San Francisco
$71
$12 / $18 / $36
South Lake Tahoe
$71
$12 / $18 / $36
Providence, RI
$71
$12 / $18 / $36
Santa Fe, NM
$71
$12 / $18 / $36
San Diego
$71
$12 / $18 / $36
Portland, OR
$66
$11 / $16 / $34
Napa
$66
$11 / $16 / $34
Sacramento
$61
$10 / $15 / $31
Charleston, SC
$56
$9 /$13/$29
ATTACHMENT
Central Contra Costa
Sanitary District
Authority: Board of Directors
Effective: November 21, 2008
Revised: December 20, 2012
Reviewed:
Initiating Dept. /Div.: Administration
BOARD POLICY
TRAVEL AN-D- EXPENSE REIMBURSEMENT POLICY
All District travel including but not limited to attend conferences, training, seminars,
meetings, and while conducting other official District Business must be approved in
advance via a Travel Approval and Estimate Form, with the exception of urgent or
emergency travel benefiting the District. District travel is authorized by Board
majority through budget approval, report, or position paper. Arrangements must be
made in compliance with the Travel and Expense Reimbursement Purpose and
Procedures.
Staff All of theca traveling on District business must complete and have steed a
Travel Approval and Estimate Authnriz tine Form nntifyinn thnirsigned by their
supervisor and the Division Manager immediate of peryiser nfapproving the type of
travel, detail, and any special requests before any travel arrangements are made.
2. Board Members' attendance at conferences will be approved by the Board in
advance for the fisEalcalendar year on a Board agenda.
3. Board Members and the General Manager are authorized to travel without prior
approval for compelling reasons, provided reasonable effort has been made to
obtain prior approval. Review of such travel will be consistent with the approval
process identified in item 76 belew of this policy.
Expense 4. Travelers are responsible for the timely preparation and submission to Finance of
their Travel • Reports.
the reverse side of the ferrn) fer paymeRt. Reports must be submitted withiR • days
reGeFAFneRded that travelers Rot ORGlude perSORal iRfermatiOR SuGh as credit Gard
deGurneRtati0R. Travelers should retain ..
5. While traveling on District business, it is the responsibility of elected officials,
appointed officials, and employees to use sound judgment to ensure reasonable
BP 008
Page 2 of 2
•- • • •
_.
- e
Board Members whose expenses do not fall within this policy may be submitted to
the Board of Directors for approval, in a public meeting, before the expense is
incurred.
67. The General Manager, or their designee, shall approve travel reimbursement
documents for the Board Members and the Secretary of the District;; and the Board
President or President Pro -Tem shall approve travel reimbursement documents for
the General Manager and SeGFefar„ of the Pistr,,.+, The General Manager or their
designee shall approve all travel approval /reimbursement documents for his /her
direct reports, and in certain instances, other staff. Staff travel reimbursements will
be approved by immediate saF^sor immediate supervisors and Division
Managers with signature authority.
78. Per Diem is an allowance paid to a traveler for ledgiRg meals and incidental
expenses incurred when traveling. This allowance is in lieu of paying their actual
travel expenses and is based on the IRS approved rate for the area where they
travel. FeF this purpose of this peliGy, per diern will be for meal GOsts and iRG'dentals
alene. Staff will follow per diem procedures while Board Members will be reimbursed up to
the Per Diem rate, with receipts, for the city where their travel occurs.
8. Board expenses not related to this policy, refer to resolution adopted by the Board on setting
forth procedures for appointment to and establishment of Board committees and meeting
compensation and expense reimbursement for Board Members. In addition, AB 1234
requires Board members to provide a report, written or verbal, to the Board in open
session on the event, conference, seminar or training attended, to be agendized
within 30 days of the event, and this will also be adhered to.
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PURPOSE
Central Contra Costa
Sanitary District
doe N-L
TRAVEL AND EXPENSE REIMBURSEMENT
PURPOSE AND PROCEDURES
To establish a peliG procedures for appropriate reimbursement of expenses and costs incurred
by elected officials, appointed officials, District r„ , and staff for travel activities that are
necessary, legitimate, permissible, and actually incurred when traveling on authorized District
business, provided they are pre- authorized through the Travel Approval and Estimate Form,
itemized, fully explained and, approved on the Travel Expense Reimbursement Report. The
Travel Expense Reimbursement Report becomes a public record upon submission, so every
effort should be made to ensure it is accurate to the best of the traveler's knowledge.
Important guidelines travelers and those making arrangements should know:
• For those employees who will be traveling on District business, the time will only be
compensable if the travel is conducted within their normal working hours regardless of
days traveled. Normal working hours will be determined by the "Statement of Work
Hours" that each employee has signed and is on file with Human Resources.
• Employees are expected to return to work the next day after a conference is over if the
next day would be their normal work schedule unless they have submitted a leave slip or
become ill. As a general rule, if conferences /seminars are local and are done by 12
noon, employees should return to work.
• The District will reimburse expenses attributable to Board Members and District
employees only. Non - District employee expenses will not be reimbursed.
• It is prohibited to charge any meal expenses on District issued procurement cards unless
it is part of the hotel bill charges at check out. Room service included on hotel bill will be
deducted on the expense report from the per diem amount allowed.
• Required receipts should be organized by the date of the actual expenditure for ease of
processing. When at all possible, personal charges should be on a separate receipt
from those that will be submitted to the District for reimbursement. For instance, if
BP 008
Page 2 of 9
staying extra days at a hotel where a conference was held, only submit a hotel receipt of
the days that are reimbursable by the District.
• Support staff making travel arrangements has the option to utilize the District travel
agency services or book the arrangements directly.
• It is the responsibility of the division manager and supervisor to determine if employees
should be allowed to travel to a conference /training the day before the
conference /training starts and /or the day after the conference /training is concluded.
• In situations where unusual or unexpected travel expenses are expected to be incurred,
or where this procedure does not adequately cover certain situations, exception may be
made with approval of the General Manager.
INIMMI-Ts Mo. W.
._
BP 008
Page 3 of 9
PROCFDLJRF
1. Making Travel Arrangements:
All District travel arrangements are to be booked through department related support staff
that have been issued travel purchasing cards, or other staff approved by the General
Manager in advance for each request.
approval hefere making arrangements (via email moms ete) The requesting traveler must
submit a Travel Approval and Estimate Form to their supervisor and the division manager for
signature, and once signed, provide to support staff in order for them to make
arrangements. This form must be completed unless there are no fees that will be incurred.
If there is a required receipt missing for any given expenditure, other than those included in
the per diem as it relates to staff, the manager's signature on the Travel Expense
Reimbursement Report will serve as approval of the charge.
The District will not reimburse fees for room videos, shoe shining, spa treatments, gym fees,
fines or traffic violations, damages to employee vehicles, excess baggage fees unless
required for District business, newspapers, magazines, entertainment, cancellation fees or
penalties unless deemed appropriate by division manager and supervisor, or expenses
which are excessive or unreasonable. District will reimburse for laundry expenses in
instances when the traveler is on conference over 5 business days. If you are unsure
whether something is reimbursable, please find out before the charges are incurred. Ask
the division manager or Finance Department for guidance.
2. Transportation:
a. Commercial Airline Travel: Elected officials, appointed officials and District employees
will travel at the lowest reasonable coach class airfare within the following guidelines:
(1) In order to obtain low airfares, travelers should be flexible in travel hours in
willingness to take an earlier or later flight if it does not create an unreasonable
burden and will still allow enough time to attend the full conference or training. a
tWe heUr WiRdeW PeIiGY will be used OR seaFGhiRg fer a Iew fare. This W'RdeW PGIiG
i nyelye searching for fares ene hour prier to and after the requested
taken unless time senstraints make it impessihle
BP 008
Page 4 of 9
(2) Direct flights (one -stop) and connections (change of planes), rather than non -
stops, may represent substantial savings to the District. Non -stop flights, if more
expensive, Gannet should not be taken if lower direct/ connecting fares are
available and does not place an unreasonable burden on the traveler.
(3) Early departures and late returns are encouraged to avoid lodging for an additional
night; However,, . Ttravel arrangements should allow for full attendance at the
subject event.
(4) Air travel arrangements should be reserved as far in advance of travel date as
possible. Advance planning, rather than last- minute reservations, allow for the
opportunity to obtain lower fares. To the extent possible, Ttravel arrangements
should be booked a minimum of seven thirty (30) days prior to departure.
(5) Reimbursable expenses shall be limited to the actual dates of travel, which shall
be as near the event as practical, allowing for timely arrival and departure and the
carrier's schedule. If the extension of travel time would achieve lower airfare and
would result in a net cost savings to the District, the District will pay for actual costs
incurred for hotel and meals only, subject to the other limitations of this
procedurepelisy, provided they do not exceed the costs which would have been
incurred without an extension, and the extension is approved in advance. A cost
analysis, with or without extension, would be required. Any additional time
(exceeding the above) taken prior to or after the event will be at the traveler's
empleyee's time and expense. The Diotriet Will net reirnb iron fer eveess baggage
fens if net related to Diotriet b ioinnoo
(6) Use of penalty or non - refundable airfares should be considered, depending on the
nature of travel, and the certainty that the trip will take place as planned. These
lower- cost fares shall be selected at the travereF'S diSGretieR to the extent possible.
if a ehaRgB rest alto in PeRalties the Department Direeters shall have the a itherity
to hnG! de these Gha'rges"as Feimb usable , if apprepriete.
(7) If there is a significant difference between the cost of the flight used and a less
expensive flight that was available, or if the traveler uses first -class or business
class instead of an available coach -class airfare
the traveler will be required to pay the difference in the
expense.
(8) Use of a specific airline for the purpose of obtaining Frequent Flyer miles Will get
be a wt is prohibited, unless the airfare is among the lowest available. Those
booking flights should attach sufficient documentation back -up to the Travel
Approval and Estimate Form showing due diligence was performed in finding the
most reasonably priced flight. This could be obtained by running comparison of
flights through Expedia, Travelocity, Orbitz, etc. Booking of own airfare is only
authorized through the General Manager and this rule will still apply.
b. Car Rentals: The use of a rental car must be authorized in advance. When a car
rental is authorized, the traveler shall be
limited to a GGMpaGt 9F Mod size vehiGlethe most economical available at the time. A
BP 008
Page 5 of 9
olr�n�Gfiniolc appeiRted effisiols er emnln„000. A rental car may be authorized only
for a business necessity or if it is the most economical means of transportation
available. The empleyeetraveler must she, ild be prepared to show a cost savings to
the District by the use of a rental car as compared to other modes of transportation.
When traveling in groups, sharing of cars is encouraged to minimize costs. Full
Gcollision and liability insurance offered by the rental company should be accepted.
E
mnl�n-rpleyees Travelers should refuel cars before returning them to the rental agency if it
will to -avoid the large refueling mark -up, when economical. O#fiGi°I-eEmployees
are required to notify the District's Safety and Risk Management Administrator and
their employee's supervisor and division manager within 24 hours of any event,
incident or accident related to the rental vehicle. Board Members are required to
report incidents to the General Manager.
C. Taxi and Other Local Transportation: Lowest cost, most reasonable transportation
should be used. The use of a taxi is authorized when cost - effective alternative Mere
eeeeeMieal services are not available, or in cases wheROf valid business reasons,
such as timing limitations that, warrant use of such transportation. Taxis should be
utilized when courtesy shuttles and paid shuttles are not convenient for timing or other
purposes.
fFem airperts sheuld be used. Use ef private IiITIOUSiRes eF Ghauffeured Gars hired
selely to trnnsnGO flip +rin+ Beard Members and /er staff is pFohihited. Gratuities for
transportation such as shuttles and taxis should not exceed 15 %.
d. Travel in District Vehicles: District vehicles are available for local seminars. District
vehicles shall not be used for personal use when attending seminars. Non - District
employees should not be transported in District vehicles unless it is for business
related purposes.
e. Travel in Personal Vehicles: When use of a privately -owned vehicle is authorized in
lieu of a common carrier, reimbursement will be based on the prevailing mileage rate
and the miles determined by the Google Maps site mileage calculation, but will not
exceed air coach rate to and from the destination plus local transportation costs such
as mileage, airport parking, toll, and shuttle /taxi costs. Mileage should be included on
the Travel Reimbursement Report and not submitted separately. VVheR travel is te -a
IGGal seminar, mileage reimbursemeRt will be GaIc-ulated based en the shertest
dostaRGe to the seminar from home er frem work. Reasonable costs for parking and
tolls will be reimbursed. Valet parking is discouraged if free or more economical
parking is available; exceptions may be made in some cases. On regular work days,
mileage will be calculated from employee's home or the District (whichever is the
shortest distance). On off days, employee will be reimbursed for actual mileage from
home. Board Member travel will be calculated from residence or the location they
depart from.
When parking personal vehicle at the airport, use of long -term parking facilities is
encouraged.
3. Lodging/Telephone:
C' 11:
a. Lodging: Whenever possible, lodging should be arranged at the facility where the
event is being held or conference hotels suggested, or a comparable facility of equal
rate or lower within the conference area.
When attending conferences, a block of hotel rooms may be offered at a reduced
rate. Nevertheless, staff should check to see if a lower rate, at the same facility, is
available. Emn'�„ployeesTravelers should limit their stay to a minimum number of nights.
Reimbursement for the daily cost of lodging includes only the single occupancy room
rate and applicable taxes unless shared by more than one District employee. When
making reservations for lodging, attempts should be made to obtain a discounted or
governmental agency rate. District travelers are expected to use good quality, but
reasonably priced hotels or motels wherever practical. (The GenferenGe hotel, its
rate. equivalent, at the GonferenGe Fate, is aGGeptable ledging for DistriGt business.)
When attending GenfeFenGes, a blec;k of hotel rooms may be offered at a reduGed
Nevertheless, tFavelers should Ghec;k te see if a lower rate, at the same
faGility, is available.
Hotels will be paid for by personal credit card or by acquiring a cash advance for the
hotel before the conference. (Make sure when checking out of hotels that they deyou
are not charged for any nights that the District has paid for in advance such as a first
nights deposit to hold room). If the traveler requires a Gash adyanno ,r possesses a
District procurement card, they may are allowed to pay for the hotel costs on that
card once they check out at the end of the conference. if prier appreval by their Divisien
Manager is give RiR Ruler in ave'd the Reed fnr r+ Gash advl.nnn
Hotel receipt/invoice should be provided as back -up documentation verifying deposit
(paid by District, if any) and dates of stay. When attending a local one -day training or
conference where mileage is less than 60 miles one way (120 roundtrip) from official
station or residence, travelers are expected to return the day the training or conference
ends. It is the responsibility of division managers and supervisors to determine whether
an employee should be allowed to travel the day before a conference /training and /or
the day after. If this is not followed, employee will be expected to pay for any extra
nights. Prior approval is always required for overnight stays, even for one -day training
and conferences.
b. Telecommunication: On authorized travel, necessary business - related telephone
calls, faxes, and Wi -Fi„ m connections incurred may be reimbursed. The Gest ef
pPersonal telephone calls made while attending a seminar will be the responsibility
bernebyof the employee,.4=ihowever, empleyees travelers are allowed one personal
call of reasonable length and cost per day at District expense. The District's Finance
Manager Gentrefler shall make the final determination of reasonable duration and cost
on a case -by -case basis.
When possible, business usage of internet should be utilized through District issued
electronic devices. If this option is not available, District will reimburse the cost of these
services if utilized for District business related purposes.
4. Meals:
BP 008
Page 7 of 9
In Gnneml
Meals will be reimbursed in accordance with the Meals and Incidental Expenses (M &IE)
allowance established by the Federal General Services Administration (GSA) for the
location of travel (website www.gsa.gov /perdiem). Receipts are not required for M &IE
with the exception for Board Members. M &IE include all meals, room service, laundry,
dry cleaning, pressing of clothing, fees and tips for persons who provide services, such
as food servers and luggage handlers.
Reimbursements are not provided for meals that are paid for as part of the conference
registration as noted on the confirmation. The daily per diem rate should be adjusted by
the traveler if meals are included at the conference. Snacks and continental breakfasts
such as rolls, juice and coffee shall not be considered meals. Reimbursement should
not be claimed in the event actual expenses were not incurred. Additional exceptions
are noted below.
Conferences
For the first day and last day of travel, the reimbursement for each day will be 75% of the
IRS rate for the location.
Local One Day Training /Seminars
Per diem for one -day trainings /seminars will not be paid if meals are included..
If meals are not included, one meal reimbursement will be provided at staffs discretion
with receipts, not to exceed the GSA meal rate for the area.
Employees should provide backup materials, when possible, to show that meals were or
were not included as part of a conference /training. Attaching agenda or registration that
shows this information would be helpful.
5. Travel Advances:
A request for a travel advance must be made at least two weeks prior to travel by submitting
a completed Payment Authorization Request form to AGGeuRti RgFinance. There will be no
travel advances for the cost of airline travelexpenses since the travel procedures require
support staff to purchase airline tickets. due to the Diotriet'c paymeRt fer the ticket in
advaR Advances must be utilized immediately and accounted for within two weeks after
completion of a trip. No additional advances will be granted before settlement of an
outstanding advance and further conference attendance may not be granted. IR the evert an
advanced from the next regular payGheeli
When traveling on District business, the traveler must be reasonably certain that he /she will
be able to complete the trip. Canceling a trip for personal reasons must be approved by the
General Manager and may result in the traveler being responsible for any non - refundable
costs. Where possible, another employee may be substituted if approved by a manager and
there is no major penalty incurred for the transfer.
6. Special Expenses Paid by Employee such as Meals for R —�4ness ssaGia +s:
Report only expenses paid by cash, personal check, or credit card.
The Internal Revenue Code requires that specific details showing traveler and names of
guests and eMple „ , cost, date and place, business purpose, and the business
relationship of individuals be supplied. Attach receipts whenever possible. ReGeipts
oxpeRdit, Tres of $25 er mere are required. Combined receipts or bills for staff traveling to the
same conference /training are discouraged.
7. Travel Expense Reimbursement Reports:
Travel Expense Reimbursement Reports must be legible and in all cases be signed in ink by
beth the traveler, supervisor empieyee and the Ddivision Mmanager with signature authority.
Each expense shall be clearly and accurately identified and shown on the Rreport on the
day the expense was actually incurred. Report all expenses paid by cash, personal check,
credit card, and those paid directly by the District. Auditing and control procedures of the
District require that receipts substantiating travel expenses be provided by the traveler
whenever possible, with the exception of M &IE. Original receipts, including hotel statements,
airline ticket stubs, car rental invoices, credit card receipts, paid invoices, or any receipt,
which shows the date, location, nature and amount of the expenditure, shall be attached to
the Report, and the report must be submitted within 30 days of the conclusion of
travel /training. Receipts should be arranged in date order.
If there is a required receipt missing for any given expenditure, other than those
included in the per diem as it relates to staff, the manager's signature on the Travel
Expense Reimbursement Report will serve as approval of the charge.
It is recommended that travelers not include personal information such as credit card
information, home address, or personal phone numbers on any submitted documentation.
Travelers should retain copies of the Travel Expense Reimbursement Report and receipts
for their personal records.
In accordance with Government Code 53232.3 and Assembly Bill
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1234, elected and appointed officials are required to submit receipts documenting each
expense claimed. All documents related to reimbursable agency expenditures are public
records, subject to disclosure under California Public Records Act. If a required receipt is
missing, a written detailed explanation of the charge must be provided. The District shall
reimburse Board Members for actual and necessary meals and incidental expenses
documented with receipts in an amount not to exceed IRS reimbursement rates for the
geographic location.
In addition, AB 1234 requires Board members to provide a report, written or verbal, to the
Board in open session on the event, conference, seminar or training attended, to be
agendized within 30 days of the event.
Approval Levels Follow (approver may denote a designee to sign in their absence)
BUSINESS EXPENSES AUTHORIZED BY
Employee
Board
General
General
Department
Division Manager and
President
Manager
Manager or
Director
Supervisor
or
Deputy
Designee
General
Manager
General
X
Manager
Deputy
X
General
Manager
Directors
X
District
X
Secretary
Managers
X
X
Staff
X
X
X
I MA Z •- 11
Authority: Board of Directors
Effective: November 21, 2008
Revised: December 20, 2012
Reviewed:
Initiating Dept. /Div.: Administration
TRAVEL AND EXPENSE REIMBURSEMENT
PURPOSE
To establish a policy for appropriate reimbursement of expenses and costs incurred by elected
officials, appointed officials, District Counsel and staff for travel activities that are necessary,
legitimate, permissible, and actually incurred when traveling on authorized District business,
provided they are itemized, fully explained and approved on the Travel Expense
Reimbursement Report.
POLICY
1. All District travel must be approved in advance, excepting urgent or emergency travel
benefiting the District. Board member travel is approved by budget approval and /or public
report, by the General Manager, with Board majority concurrence. The General Manager's
report will allow for Board consideration and approval, or denial, as well as meet AB 1234
intent for public disclosure. General Manager, District Counsel and Secretary to the District
travel is approved by Board majority through budget approval, report, or position paper.
Employee travel is approved through the budget by the appropriate Division Managers. and
Division Managers travel will be approved by the General Manager.
2. Travel approval is to be consistent with the budget guidelines for travel.
3. Board Members and the General Manager are authorized to travel without prior approval for
compelling reasons, provided reasonable effort has been made to obtain prior approval.
Review of such travel will occur consistent with the approval process identified in item 7
below.
4. While traveling on District business, it is the responsibility of the elected officials, appointed
officials and employees to use sound judgment to ensure reasonable expenditure of District
funds. If there is no receipt for any given expenditure, the Supervisor's signature on the
Travel Expense Reimbursement Report will act as authorization of the charge.
District Board members whose expenses do not fall within this policy may be submitted to
the Board of Directors for approval, in a public meeting, before the expense is incurred.
5. Board Members' attendance at conferences will be approved by the Board in advance for
the fiscal year on a Board agenda.
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Page 2 of 5
6. Travelers are responsible for the timely preparation and submission of their Travel Expense
Reimbursement Reports (instructions for completion are on the reverse side of the form) to
the Accounting Office for payment. Reports must be submitted within 30 days of the event or
trip completion. Travelers should retain copies of the Report and receipts for their personal
records.
7. The President of the Board of Directors shall approve travel reimbursement documents for
all Board Members, District Counsel, the General Manager and the Secretary of the District.
The Board President Pro Tem, or in his /her absence another designated Board member,
shall have authority to approve travel reimbursement for President of the Board. The
General Manager shall approve all travel reimbursement documents for his /her direct
reports, and in certain instances, other staff. Division Managers shall approve all travel
reimbursement documents of those in their charge.
PROCEDURE
1. Making Travel Arrangements:
Ail District travel arrangements are to be booked through department related support staff.
Staff will follow the approved District Travel Policy and parameters when making travel
arrangements for District employees. Staff will make sure that requesting staff has received
prior budget approval and /or Division Manager approval before making arrangements (via
email, memo, etc.)
2. Transportation:
a. Commercial Airline Travel: Elected officials, appointed officials and District employees
will travel at the lowest reasonable coach class airfare within the following guidelines:
(1) In order to obtain low airfares, a two -hour window policy will be used in searching
for a low fare. This window policy involves searching for fares one hour prior to and
after the requested departure /arrival time. The lower fare quoted within this two -
hour window must be taken unless time constraints make it impossible.
(2) Direct flights (one -stop) and connections (change of planes), rather than non -
stops, may represent substantial savings to the District. Non -stop flights, if more
expensive, cannot be taken if lower direct/ connecting fares are available and does
not place an unreasonable burden on the traveler.
(3) Early departures and late returns are encouraged to avoid lodging for an additional
night. Travel arrangements should allow for full attendance at the subject event.
(4) Air travel arrangements should be reserved as far in advance of travel date as
possible. Advance planning, rather than last - minute reservations, allow for the
opportunity to obtain lower fares. Travel arrangements should be booked a
minimum of seven days prior to departure.
(5) Reimbursable expenses shall be limited to the actual dates of travel, which shall
be as near the event as practical, allowing for timely arrival and departure and the
carrier's schedule. If the extension of travel time would achieve lower airfare and
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would result in a net cost savings to the District, the District will pay for actual costs
incurred for hotel and meals only, subject to the other limitations of this policy,
provided they do not exceed the costs which would have been incurred without an
extension, and the extension is approved in advance. Any additional time
(exceeding the above) taken prior to or after the event will be at the employee's
time and expense. The District will not reimburse for excess baggage fees if not
related to District business.
(6) Use of penalty or non - refundable airfares should be considered, depending on the
nature of travel, and the certainty that the trip will take place as planned. These
lower- cost fares shall be selected at the traveler's discretion. If a change results in
penalties, the Department Directors shall have the authority to include these
charges as reimbursable, if appropriate.
(7) If there is a significant difference between the cost of the flight used and a less
expensive flight that was available, or if the traveler uses first -class or business
class instead of an available coach -class airfare without approval from the
appropriate supervisor, the traveler will be required to pay the difference in
expense.
(8) Use of a specific airline for the purpose of obtaining Frequent Flyer miles will not
be authorized, unless the airfare is among the lowest available.
b. Car Rentals: The use of a rental car must be authorized in advance. When a car
rental is authorized, the elected official, appointed official or employee shall be limited
to a compact or mid -size vehicle. A larger vehicle may be rented if for the purpose of
transporting a group of District elected officials, appointed officials or employees. A
rental car may be authorized only for a business necessity or if it is the most
economical means of transportation available. The employee should be prepared to
show a cost savings to the District by the use of a rental car as compared to other
modes of transportation. When traveling in groups, sharing of cars is encouraged to
minimize costs. Collision and liability insurance offered by the rental company should
be accepted. Employees should refuel cars before returning them to the rental agency
to avoid the large refueling mark -up, when economical. Officials and employees are
required to notify the District's Safety and Risk Administrator and the employee's
supervisor within 24 hours of any event, incident or accident related to the rental
vehicle.
C. Taxi and Other Local Transportation: The use of a taxi is authorized when more
economical services are not available, or in cases when valid business reasons, such
as timing limitations, warrant use of such transportation. If available and practical,
public or courtesy limousine transportation to and from airports should be used. Use
of private limousines or chauffeured cars hired solely to transport District Board
Members and /or staff is prohibited.
d. Travel in District Vehicles: District vehicles are available for local seminars. District
vehicles shall not be used for personal use when attending seminars.
•- •
e. Travel in Personal Vehicles: When use of a privately -owned vehicle is authorized in
lieu of a common carrier, reimbursement will be based on the prevailing mileage rate,
but will not exceed air coach rate to and from the destination plus local transportation
costs. When travel is to a local seminar, mileage reimbursement will be calculated
based on the shortest distance to the seminar from home or from work. Reasonable
costs for parking and tolls will be reimbursed.
3. Lodging/Telephone:
a. Lodging: Employees should limit their stay to a minimum number of nights.
Reimbursement for the daily cost of lodging includes only the single occupancy room
rate and applicable taxes unless shared by more than one District employee. When
making reservations for lodging, attempts should be made to obtain a discounted or
governmental agency rate. District travelers are expected to use good quality, but
reasonably priced hotels or motels wherever practical. (The conference hotel, or its
equivalent, at the conference rate, is acceptable lodging for District business.) When
attending conferences, a block of hotel rooms may be offered at a reduced rate.
Nevertheless, travelers should check to see if a lower rate, at the same facility, is
available.
Hotels will be paid for by personal credit card or by acquiring a cash advance for the
hotel before the conference. (Make sure when checking out of hotels that they do not
charge for any nights that the District has paid for in advance such as first nights
deposit to hold room). If the traveler requires a cash advance and possesses a
procurement card, they may be allowed to pay for the hotel costs on that card once they
check out at the end of the conference if prior approval by their Division Manager is
givenin order to avoid the need for a cash advance.
b. Telecommunication: On authorized travel, necessary business - related telephone
calls, faxes and modem connections incurred may be reimbursed. The cost of personal
telephone calls made while attending a seminar will be borne by the employee.
However, employees are allowed one personal call of reasonable length and cost per
day at District expense. The District's Controller shall make the final determination of
reasonable duration and cost on a case -by -case basis.
4. Meals:
The cost of each meal is to be reported separately on a daily basis and covers the District
traveler only. Receipts for all claimed meals should be included with the travel expense
report. The cost of meals includes taxes and tips or service charges as applicable.
Purchases of alcoholic beverages shall not be reimbursed. The maximum reimbursement for
meals is $64 per day, given proper documentation by providing receipts.
In cases where the individual signs up for meals that have a separate cost in addition to the
conference registration, that meal would be excluded from the daily allowance. If a District
traveler is accompanied by a spouse or guest and the District or a District staff person
covers the cost, the District traveler will be billed for the cost of his /her spouse /guest's meal
or other related costs. If the guest is a business associate, the cost may be reimbursable.
See criteria and requirements in Paragraph 6, Special Expenses Paid by Employee, below.
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5. Travel Advances:
A request for a travel advance must be made at least two weeks prior to travel by submitting
a completed Payment Authorization Request form to Accounting. There will be no travel
advances for the cost of airline travel due to the District's payment for the ticket in advance.
Advances must be utilized immediately and accounted for within two weeks after completion
of a trip. No additional advances will be granted before settlement of an outstanding
advance. In the event an advance remains open beyond 30 days, the District may elect to
deduct the amount advanced from the employee's next regular paycheck.
6. Special Expenses Paid by Employee such as Meals for Business Associates:
Report only expenses paid by cash, personal check, or credit card. Meal expenses, to be
reimbursable, must be an expenditure necessary for the transaction of District business.
The Internal Revenue Code requires that specific details showing names of guests and
employees, cost, date and place, business purpose, and the business relationship of
individuals be supplied. Attach receipts whenever possible. Receipts for expenditures of $25
or more are required.
7. Travel Expense Reimbursement Reports:
Travel Expense Reimbursement Reports must be legible and in all cases be signed in ink by
both the employee and the Division Manager. Each expense shall be clearly and accurately
identified and shown on the Report on the day the expense was actually incurred. Report all
expenses paid by cash, personal check, credit card, and those paid directly by the District.
Auditing and control procedures of the District require that receipts substantiating travel
expenses be provided by the traveler whenever possible. Original receipts, including hotel
statements, airline ticket stubs, car rental invoices, credit card receipts, paid invoices, or any
receipt, which shows the date, location, nature and amount of the expenditure, shall be
attached to the Report. When a receipt is not available and the expense is more than
$25.00, the traveler shall provide a statement detailing the expenditures and explaining the
reason for the lack of a valid receipt. However, in accordance with Government Code
53232.3 and Assembly Bill 1234, elected and appointed officials are required to submit
receipts documenting each expense claimed. All documents related to reimbursable agency
expenditures are public records, subject to disclosure under California Public Records Act.
In addition, AB 1234 requires Board members to provide a report, written or verbal, to the
Board in open session on the event, conference, seminar or training attended, to be
agendized within 30 days of the event.