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17-2023 Amending SOP 3.5 Travel Policy UpdateCITY OF MERIDIAN RESOLUTION NO. /-7— c)o �3 BY THE CITY COUNCIL: BIRD, BORTON, CAVE, NER MILAM, PALMER, LITTLE ROBERTS A RESOLUTION AMENDING THE CITY OF MERIDIAN STANDARD OPERATING POLICY AND PROCEDURE MANUAL TO AMEND POLICY 3.5, TRAVEL AND EXPENSE REIMBURSEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Mayor and City Council have authority over the operations, polices, and procedures for the City of Meridian; WHEREAS, in 2002, the City adopted a Standard Operating Policy and Procedures Manual applicable to all employees of the City of Meridian; and WHEREAS the City Council may amend the Manual fi•om time to time as necessary to incorporate changes as needed; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO AS FOLLOWS: SECTION 1. That the City of Meridian Standard Operating Policy and Procedures Manual be amended as to Policy # 3.5 Travel and Expense Reimbursement, a copy of which is attached and incorporated herein by reference as Exhibit A. SECTION 2. That this Resolution, and the Policy be amended and shall be in full force and effect on August 15, 2017. ADOPTED by the City Council of the City of Meridian, Maho, this � day of 2017. APPROVED by the Mayor of the City of Meridian, Idaho, this 15 day of Au , 2017. AOVED: D- �Qo�ptED AUKS �O c I,y o� 5 MayorZ!�v y de Weerd ATTEST: E IDIAN IDAHO By: SE C.J6 Cold. itv -0 %, RESOLUTION AMENDING CITY OF MERIDIAN STANDARD POLICY AND PROCEDURE MANUAL - PAGE I OF I CITY OF MERIDIAN STANDARD OPERATING POLICY NUMBER 3.5 SUBJECT: TRAVEL AND EXPENSE REIMBURSEMENT PURPOSE : This policy is meant to address employee travel away from the Treasure Valley for City business. It provides guidelines for the basic foundation of rules and requirements that departments must follow. In order to meet certain federal and state requirements, some departments may need to develop additional internal policies relating to documentation and guidance for record keeping and approval process. Departments may establish more restrictive guidelines to best meet their own unique needs. An employee’s family member may travel to or with the employee, but all the expense of that family member must be borne by the employee. POLICY : The ability to travel for work purposes, including training, is a privilege. Travel may also be part of the employee’s job and associated duties. It is the responsibility of each employee to ensure that the taxpayers of the City are only being asked to fund reasonable costs and expenses related to this privilege. It shall be the responsibility of the Directors of this City to ensure that all expenditures under this policy are appropriate and consistent with fiscal responsibility. The Director, Senior Manager, or Designee that is authorized to approve expenditures shall also ensure that the City policies are being followed consistently. The City shall pay for only official business expenses that are directly related to conducting business for the City of Meridian. All travel must be pre-approved and via the most economical means practical. Each employee is expected to exercise good judgment when incurring travel expenses. Violations of this policy may be cause for disciplinary action up to and including termination. AUTHORITY & RESPONSIBILITY : Each City employee is responsible and accountable to the Department Director for the funds and assets entrusted to them. Each Director is responsible for administering and ensuring compliance with the Travel Policy. The Finance Department has the responsibility to track all funds for the City and assure compliance with all City, State, or Federal regulations regarding the tracking and accounting of such expenditures. TRAVEL EXPENSE PROCEDURES FOR ADVANCE PAYMENTS AND REIMBURSEMENTS FOR POLICY 3.5 PROCEDURES AND RELATED INFORMATION ACCOUNTABLE PLAN – IRS requires an “Accountable Plan” (IRS Pub#463) to determine if reimbursement would be reported as taxable income or not. To be an accountable plan, the employee’s expenses must meet all three of the following rules: 1. The expenses must have a City business connection. 2. All expenses must be adequately accounted to the employer for these expenses within a reasonable period of time. 3. All excess reimbursement or allowance must be remitted to the employer within a reasonable period of time. City requires all expenses must be accounted for on an expense report with itemized receipts within 10 business days from the return date of the travel. If the expense report and applicable receipts are not submitted to the Finance Department within 60 days of the return date of the travel, the expenses will be reported as income on the employee’s W2 form and the applicable taxes will be deducted from the employee’s next paycheck. Any excess amount, personal expense, non-allowed expense, or advance that the employee owes to the City must be remitted within a reasonable period. The City expects payment within 30 days and, if Finance has not received payment within 120 days of the return from travel, this will be considered a violation of the travel policy. The expense will become taxable income to the employee and the violation will be reported to HR for disciplinary action. TRIP DELAYS – Trip delays that are not of the employee’s choosing shall be reimbursable for any necessary expenses incurred as well as additional per diem. TRIP CANCELLATION –If the trip is canceled prior to departure, the employee has three (3) business days to return the entire per diem amount to the City. The employee or the Department Travel Coordinator shall be responsible to cancel all the arrangements made for the travel and attempt to limit the City’s costs for this change. TRAVEL PAID BY VENDORS OR POTENTIAL VENDORS OF THE CITY Any travel that is paid by a non-governmental agency must be approved by the Legal Department prior to making any travel arrangements. TRAVEL AUTHORIZATION FORM: The Department Director is responsible for ensuring that the travel is the most cost- effective travel alternative. This policy recommends that each Department designate a Department Travel Coordinator so someone other than the traveling employee is booking travel arrangements. The Travel Authorization form can found on the intranet under Finance, Forms and Policies. This form provides an estimate of the total cost of the travel and documents the employee had the necessary approval prior to travel. The form shall be submitted in advance of the trip (if possible) and must be approved by the Department Director or designee, and if necessary, the Mayor. The Travel Authorization Form shall be completed by the Department Travel Coordinator and provided to the Finance Department prior to overnight travel outside the Treasure Valley. 1. This authorization form must include all elements of the travel including but not limited to; transportation, lodging, per diem and conference fee, if applicable, and the reason or justification for traveling. 2. The traveling employee will request authorization from the Department Director before travel arrangements and/or conference and training fees are paid. 3. Once the travel is approved the Department Travel Coordinator can make the necessary travel arrangements, such as flight, hotel, etc. 4. After travel is booked, the approved Authorization form shall be sent to Accounts Payable in Finance. 5. The per diem check will be calculated based on the Travel Authorization Form. The traveling employee is responsible for contacting accounts payable to arrange per diem check pick-up. To pick up the per diem check prior to travel, it is recommended the form be to Finance seven (7) days in advance of actual travel. Per Diem monies do not need to be refunded to the City unless the trip or portions of it are canceled. 6. After the trip completion, the employee may voluntarily choose to reimburse the City of any unused per diem. Any monies returned will be reimbursed to the appropriate Department budget line item for per diem. CITY CREDIT CARD – A City credit card may be used to assure payment for a hotel or rental car, if necessary, and specifically approved by the Department Director, when the employee is traveling. A City credit card may be used for transportation such as taxis or shuttles and parking and fuel for a rental car. If the employee is allowed to use their personal vehicle for travel, then a City credit card cannot be used for fuel. A City credit card may be used to purchase training materials that are necessary. If necessary, the employee may use the City credit card to mail training materials back to the City. This must be approved by the Department Director, Manager, or designee. A City credit card cannot be used for any expenses that are included as part of the per diem. If the employee has not received a per diem check then the City credit card can be used with the approval of the Department Director which will then be reconciled on the expense report after the travel is completed. The employee can also receive their per diem after the trip to reimburse for items covered by the per diem. Expenses that exceed the per diem must be reimbursed by the employee. A City credit card shall not be used on a mobile application that will retain the credit information, such as Uber or Lyft. EXPENSES EXPENSE REPORT - Travel expense reports are to be filled out after returning from travel. The reports are to be received by Finance Department within ten (10) business days of the travel return date pursuant to this policy. If reports are not received by that time it may be the cause of further inquiry and potential discipline if the employee refuses to comply. USE OF A LANDLINE PHONE WHILE TRAVELING-The use of a landline phone in a hotel or motel for business or personal use is highly discouraged due to the high cost associated with such use. The employee should discuss this with the Department Director prior to departure to determine whether the cost will be reimbursed. PER DIEM – Per diem is compensation given to the employee for other expenses incurred while traveling that are not pre-paid or are defined as reimbursable. Employees may opt not to take a per diem or may request a reduction of the per diem. Per Diem expenses are including but are not limited to: 1. Meals, beverages, or food, including related tips or gratuities 2. Tips or gratuities for personal services (baggage handling, valet or maid services) 3. Non-City business fees 4. Personal care items 5. Banking or ATM fees 6. Entertainment The per diem will be paid to the employee according to the GSA current “Domestic Per Diem Rates”. This rate varies from city to city. It will be Department’s responsibility to designate the city closest to the destination for the travel requested and indicate that on the Travel Authorization Form. Full per diem rate is allowed for each day that contains an overnight stay. Pursuant to IRS regulations, the per diem rate for travel days, the first and last day of the employee’s trip, is 75% of the daily per diem. If the travel takes more than one day, the employee should identify on the Travel Authorization Form and request an appropriate per diem. Per Diem will be issued to employee upon final approval of the Travel Authorization Form prior to the actual travel as noted above. Based upon the timing of the request, it is possible that the per diem check may be provided after the travel has concluded. REIMBURSABLE EXPENSES – In addition to per diem, there are expenses related to travel that are business related and are reimbursable by the City. All of these expenses will require an itemized receipt for proof of payment. Only in an extraordinary circumstance can reimbursement be provided without a receipt. The Department Director has the discretion to deny reimbursement as well. These reimbursable expenses include but are not limited to: 1. Transportation to and from the destination of the travel 2. Transportation to and from the airport to the hotel/motel 3. Transit while at destination between hotel and the business related meetings or purpose for the trip. This may include taxis or shuttles. 4. A reasonable tip or gratuity for transportation, if reflected on the receipt 5. Parking services for a hotel or lodging, if required by the hotel 6. Telephone or internet charges that are business related, when pre-approved 7. Tolls 8. Transportation to and from the employee’s work site to the airport 9. Long term parking fees for the employee’s personal vehicle 10. Up to One (1) baggage item for check-in on an airline More baggage can be allowed if approved by the Department Director. NON-REIMBURSABLE EXPENSES – The following expenses are NOT considered to be reimbursable business expense, but may be paid for with the per diem. This list is not exhaustive, is subject to the discretion of the Department Director where noted, and includes the following, but is not limited to: 1. Alcoholic beverages 2. Internet charges, except for those that qualify as reimbursable above 3. Laundry services (unless for a City Fire or Police uniform) 4. Health club services fees (outside of the hotel or place of lodging) 5. Expenses paid on behalf of others 6. Banking or ATM fees 7. Family member travel expenses TRANSPORTATION All travel must be by the most economical means practical; it does not have be the least expensive, but the employee and the Department Director must be able to justify the expenditure. Departments may consider the time of travel in the cost as well as the expense of fuel for a vehicle to travel to the same location instead of an airline. If there is interruption of travel or deviation from the direct route for the traveler’s convenience, the deviation may not exceed that cost of uninterrupted travel. Employees and Departments are encouraged to consider various forms of travel to and from the destination to weigh the expense of the travel. AIRLINE – Employees must travel by coach or economy class. Early bird check in fees for an airline, when there is no baggage fee. may be allowed at the discretion of the Department Director. CITY VEHICLES – The City would prefer that a fleet vehicle be used when driving to the destination is the most practical means of travel. If the City has a fleet vehicle available and the employee chooses to use their personal vehicle that will affect the GSA rate for mileage reimbursement which may affect the overall costs and consideration for the method of travel. Non-City employees may not drive a City vehicle, except in the most extreme emergency or circumstance, or if it is pre-approved by the Mayor. Any parking or moving violations received are the responsibility of the driver. PERSONAL VEHICLES – An employee must receive specific permission from the Department Director or the Mayor to use their personal vehicle for travel under this policy. For reimbursement, the employee must maintain a detailed log reflecting date, purpose, and associated odometer readings for the trip. The City’s mileage reimbursement form will need to be included in the Expense Report required after the travel is completed. The employee will be required to meet any other requirements of the City or its insurer prior to departure, including but not limited to providing a copy of a valid driver’s license and current proof of insurance. The employee’s personal vehicle insurance will be the primary insurer for the employee and their vehicle. The City’s insurance will only be responsible for any damages that may be the responsibility of the City. The City will pay the GSA privately owned vehicle mileage rate for the total business miles if a City vehicle was available. An employee will not be required to use their own vehicles without their permission, but the expense of the trip may be a factor in granting approval. Accident deductibles, parking violations, moving violations while using a personal vehicle for City business are the responsibility of the driver. The City will not be responsible for any physical damage or claims for the use of employee’s vehicle. The employee’s primary vehicle coverage will be primary for any claims. Business miles is the travel an employee incurs beyond normal commute mileage (from home to the office and home again) for City business. RENTAL CARS – A vehicle may be rented at the destination or to travel from the Boise/Meridian area to the destination and back. There is no need to purchase additional insurance for the vehicle. The City’s policy will cover the vehicle, as long as it is being used for City business . Any personal use of the vehicle will be on the employee’s insurance for coverage. A vehicle is only allowed with prior authorization and must be justified that it is necessary and economical for the benefit of the City (Use the Travel Authorization Form) . The request must indicate the necessity of the vehicle related to City business. The employee will be responsible for the fuel, parking expenses, or tolls for any trips that are not related to City business. If a non-employee is going to drive the rental car, any additional charges for a second driver, including necessary coverage for injuries suffered, may be on that employee’s personal insurance. LODGING – The employee must stay within the GSA hotel rate for the appropriate city or stay at the conference hotel (if applicable). When securing reservations, employees will identify themselves as government employees to obtain the government rate, if available. The City will pay the room charge plus applicable room taxes. Hotel charges should be broken down on a per day basis on the receipt and the expense report. If two employees share a hotel room, the employee who paid for the room should attach the original receipt to his/her expense report noting that the room was shared and with whom. The employee that did not pay for the room should note that on the Expense Report after the travel is completed. If a non-employee shares a room, the employee will only be reimbursed for the single room rate or provide proof that no additional costs were incurred. EARLY DEPARTURE or LATE RETURNS – The Travel Authorization Form should also note if the employee is requesting to stay beyond the business requirement. If there is an impact on the City related travel, the employee shall be personally responsible for all additional costs. This justification should reflect that there is no increase in total travel cost to the City. REIMBURSEMENT BY ANOTHER GOVERNMENTAL ENTITY – When other governmental or quasi-governmental agencies or organizations directly reimburse an employee for travel, training, and other related costs where such costs were initially borne by the City, the employee will be required to endorse the reimbursement check over to the City or write a personal check to reimburse the City within 10 business days of receipt of the monies. TIME CARD ACCOUNTING – For all hourly employees they must account for their travel and time at the activity in the following manner: Travel (To and From the activity) – Whenever possible the employee should attempt to travel during their regular work schedule. If that cannot be accomplished then traveling outside of the employee’s regular work schedule must be approved by the Department Director. All travel is compensable, and shall be considered “Hours Worked” for the purpose of calculating overtime for the workweek. By Vehicle - The City will compensate for driving time to the activity from the time the employee leaves their City location until they arrive at the final destination. Internet mapping may be used by the City to determine reasonable travel time from the City as verification. The return shall be handled in the same manner. All travel time by vehicle shall be considered Hours Worked for all employees. This shall also apply to driving at the location of the activity in the same vehicle. The employee shall enter the time on the employee’s time card as “Hours Worked.” By Airline – The City will compensate air travel based upon the published flight times of departure and arrival at the destination of the activity including layovers. If the travel time significantly exceeds the published time on the itinerary or transit time to and from the employee must get approval from the Director for additional compensation. Time (While engaged in the Activity) – Time at the activity (in class, conference, event) shall be considered Hours Worked and should be entered as such. If the time of the activity would exceed the employees normal work schedule then proof of such must be provided. Revised