This memorandum constitutes a statement of applicable guidelines, regulations and policies relating to official travel. References include the Personnel Policies and Procedures of the agency, Grantor directives, the official Standardized Federal Government Travel Regulations and other applicable directives or Executive Orders.
INTRA-AREA (LOCAL) TRAVEL
All local travel will be through the use of employee's personal vehicles or the agency's government vehicles. Travel in the course of employment, and on official agency business, in one's private automobile will be reimbursed at the rate in the current federal travel regulations in the Federal Register.
All claims for reimbursement for local travel (mileage) must be made on the standard travel voucher. The voucher must state clearly and correctly the date, origin and destination, speedometer readings or "Standard Mileage" and the purpose for the travel. The "Standard Mileage" gives the actual mileage between various points. The mileage is taken from the Official Kentucky Mileage Map (Kentucky Department of Highways). When a traveler goes between two of the points listed, the standard mileage may be entered for computing the reimbursement. When the mileage guide is used, speedometer readings will not be necessary. Simply enter the words "Standard Mileage" or "SM" in the space for odometer readings. In all cases enter the mileage figure in the appropriate column. Compute the cost for each entry by multiplying the mileage by the rate. This figure is then entered in the "charge" column, except when a "government" vehicle is used. When an Agency vehicle is used, leave the charge column blank.
The point-to-point method of showing official travel will be employed. As has previously been done, show each point of official business or activity and indicate the purpose. In addition, there may be some travel, in urbanized areas for example, where it is not realistic to indicate each and every point of business or activity. In these cases indicate the destination as "(place) Vicinity." However, "vicinity" travel may cover travel within a city (such as Henderson or Owensboro). Unrealistic mileage claims within such small geographic areas, as would be vicinity travel, in excess of twelve (12) miles would surely be difficult to document or justify. Whenever such local travel would exceed the twelve mile limitation a new entry would be required to claim reimbursement.
TRAVEL ROUTES
All travel must be by the most direct route. As a rule, this will be by the "usually traveled route". The agency will reimburse an employee for mileage and other applicable expenses incurred on the most direct route. The traveler accepts the responsibility for extra expenses incurred by an indirect route. Consideration, however, will be given in certain instances where the indirect route may prove to be advantageous to the agency in terms of time and safety.
OUT-OF-AREA TRAVEL
Request - Approval for all out-of-area travel must be requested in writing in advance on the appropriate travel request form. Claims for reimbursement for unauthorized travel will not be processed. The Executive Director or Associate Director must approve all out-of-area travel.
Travel Advance - Formal requests for advances for approved out-of-area travel shall be favorably considered. However, requests should be kept to the necessary minimum and must not exceed reasonably expected expenses.
Travel Statement - Within seven (7) days of the employee's return from approved out-of-area travel, he/she shall submit an accurate statement of his/her expenses including per diem. All appropriate receipts and documentation, as required, shall be attached to the employee's statement or claim.
Reimbursable Expenses - Expenses essential to the transaction of official business shall be reimbursable. These shall include per diem, in lieu of actual documented subsistence costs; carrier transportation including airplanes, trains, busses, taxis, limousines or other usual means of conveyance; parking and tolls; and the use of rental vehicles may be authorized in advance by the Executive Director if justifiable and reasonably economical in comparison with other options.
Employee Responsibility - "Employees traveling on official business will provide themselves with sufficient funds for all current expenses, and are expected to exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business." (Official Travel Regulations)
The Standard Mileage Map will be used when possible for out-of-area travel, also. Standard mileage between AACS points and certain points outside the area are computed according to the Kentucky Department of Highways' Official Kentucky Mileage Map.
Use the "Standard Mileage" for travel to and from the above points; use "vicinity" travel for necessary official mileage in and around out-of-area points. Speedometer readings may be given instead of the standard mileage from the map. The traveler must document any significant overage by virtue of speedometer readings. Speedometer readings will be the standard method for computing mileage to and from points outside Kentucky.
Per Diem provides "subsistence expenses" to an employee while on official agency business. It is given in lieu of actual expenses for meals, lodging, tips to waiters, porters, etc., and transportation between lodging or business and places where meals are eaten.
Part-Day Per Diem - Business that requires less than twenty-four hours out of the area and does not include lodging may be reimbursed subject to the new (December, 1996) Federal Travel Regulations which changed the computation of per diem allowance for a partial day of travel. The new travel regulations abolished the quarter-day method of computing the M&IE (meals and incidental expenses) rate on a partial travel day. Please consult the requirements for part-day per diem payments in Operational Memorandum # 23, allowable only when travel exceeds 12 hours in length.
Regular Per Diem - Per diem is based on the standard maximum rate. A higher rate in accordance with pertinent Federal or state instructions will be authorized for travel to designated "High Rate Geographical Areas."
Per Diem Rate Scale (1998) -- Check the current rates found in the latest Federal Register or other official issuance of per diem allowances.
Per Diem Rates in Designated High Rate Geographic Areas will be computed in accordance with the rates provided in the Standardized Federal Government Travel Regulations or other relevant state/grantor directives.
Computation of Per Diem - Per diem is computed by multiplying the time out-of-area on approved official business times the appropriate rate. The time shall be determined on the basis of quarter days. In computing the per diem in lieu of subsistence for continuous travel of more than twenty-four (24) hours, the calendar day (midnight to midnight) will be the unit, and for fractional parts of a day at the commencement or ending of such continuous travel constituting a travel period one-fourth of the rate for a calendar day will be allowed for each period of 6 hours or fraction thereof if more than thirty (30) minutes.
After computing the amount to reimburse per quarter day - the number of quarter day periods is computed as follows:
Each 24-hour day, midnight to midnight, is cut into six hour periods -- as in the "pie graphs." A traveler can be paid per diem for each quarter day spent away from home on travel status -- including the quarter day in which he/she leaves and the quarter day in which he/she returns (except for the 30 minute rule as listed above).
The traveler whose per diem pie chart is shown is allowed to count as allowable per diem all of the shaded quarter days. Starting in the second quarter (9 a.m.) of the first day, and returning in the fourth quarter (9 p.m.) of the second day. This traveler would be allowed 7 quarters per diem at a quarterly rate based on his/her room charge by the formula already covered.
The above formula shall not apply in the case of the "Part-Day Per Diem" (requiring no lodging). The limitation on travel involving less than 24 hours, and not including over-night lodging, according to the agency policies, will be applied. Lodging will be approved when the travel period is six (6) hours or more and the official travel terminates after 8:00 p.m. Whenever lodging costs cannot be documented by a receipt, or when the traveler secures lodging without cost, for example, with relatives or friends, the per diem reimbursement shall be computed on a daily/quarter day rate.
ITEMIZATION VS. PER DIEM
Upon the direction of the Executive Director, employees may be reimbursed for official travel on the basis of actual expenditures where economy may be served. Expenses in excess of per diem may not be allowable even if itemized and documented. Receipts for each item of $10.00 or more and documentation should be attached to claims for reimbursement, however, regardless of whether the employee itemizes his/her expenses or claims per diem. According to approved regulations, reimbursement for actual expenses may be paid if per diem is much smaller than actual necessary expenses. These cases will be rare and will be considered on an individual basis and require the approval of the Executive Director.
COMMON CARRIER TRANSPORTATION
Employees should, as a rule, use common carriers, such as airplanes, buses, and trains, when the official business of the agency is better served in consideration for time, cost, and efficiency, or when other transportation is unavailable. In all cases, less than first-class accommodations should
be requested. There are only a few emergency, extenuating circumstances under which first-class accommodations may be approved, according to regulations which govern the use of federal funds for travel purposes.
Employees on approved, official business for the agency will be reimbursed for the cost of coach, or similar types, accommodations on common carriers. Whenever possible, round-trip tickets should be purchased.
Necessary expenses to and from a terminal and the employee's abode or place of business will be allowed. Such expenses will usually be incurred through the use of a personal vehicle and will constitute mileage and parking. These expenses should be kept to the necessary minimum.
TAXIS
Taxi fares from a carrier terminal to place of abode or business, or abode to business, or return in either are allowable. However, taxi fares must not exceed $6.00 [check current rate applicable] plus tip (10% maximum) for
each trip. Generally, fares will only approach the limit when to or from an air terminal. Travel vouchers should indicate each use of taxis and the fare. Two or three fares should not be grouped together.
When two or more agency travelers use a taxi, one should pay and claim the basic fare. Any charge for additional passengers should be borne by those passengers. Each voucher should indicate that two or more traveled together.
Whenever possible the traveler will use the least expensive mode of transportation. For example, taxis may be less expensive for groups, but more expensive for individuals. Individuals should use the less expensive limousine service to and from air terminals whenever availability and time permits.
Receipts for taxi and limousine service should be obtained.
Charges for additional passengers who are not on official business for the agency, for example a member of the employee's family, are not reimbursable.
PARKING
Necessary parking fees in the course of official business will be reimbursed. Meter parking will not be reimbursed except in unusual circumstances. Fees for lot parking will be substantiated by a receipt. In some circumstances receipts may not be given, but the receipt requirement will be waived on an individual basis.
TOLLS
Tolls paid in the course of official out-of-area travel will be reimbursed. Receipts are helpful, but not necessary since the tolls are well known. Tolls for intra-area travel may be reimbursed upon the approval of the Executive Director.
LEAVE OF ABSENCE
When a leave of absence of any kind is taken while in travel status the exact hour of departure from and return to duty status must be shown on the voucher. Interrupted travel, such as non-official side trips, constitute a leave of absence. Per diem and other travel costs may not be reimbursed while the employee remains in this "non-official" travel status.
RECEIPTS
All charges in the amount of $10.00 or more when itemizing expenditures and $15.00 or more when computing expenses on a per diem basis regardless of the nature of the item, or type of claim, must be substantiated by a receipt. Additionally, receipts will be attached to vouchers and claims for reimbursement for all items, regardless of the amount, as follows: lodging, carrier transportation, and lot parking. Receipts for taxi and limousine fares will be attached unless such receipts are unobtainable; usually, they can be obtained.
DATE PAYABLE
Regular monthly expense claims for reimbursement are payable on the 10th day of the month following travel, or on the immediately preceding work day if the 10th falls on a non-work day. Claims for out-of-area expenses will be processed earlier due to the amount and nature of the expenses. Local travel vouchers shall be submitted on the last day of the month.
PURPOSE
Travel reimbursement is not designed to be profitable. In fact, income received through travel "reimbursement" in excess of actual documented expenses is considered "compensation", according to the IRS, and must be reported as taxable income. The intent of this memorandum is to clarify the agency travel policies and regulations, provide for necessary subsistence costs while on agency business, and implement a more business-like and responsible reimbursement system.
Revisions
This memorandum, or any portion, will be revised or updated as changes in the references cited in the opening paragraph dictate the necessity.
AACS POLICY
Please refer to Employee Travel," Section 9, in the AACS Personnel Policies and Procedures for official AACS policy relative to travel. Any and all agency travel matters must conform to these policies which take precedence over this memorandum or any other interpretation or re-statement of Agency travel policy. All travel regulations will be in accordance with the federal regulations found in the Federal Register.
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Last updated on November 30, 1996 || E-mail Ron Logsdon, AACS executive director