NMSU Senior VP for Admin and Finance E&E – Travel Enhancement Project

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Travel Enhancement Project

Proposed Airfare Changes – Summary

Note: Travel expenses reimbursed by externally sponsored awards (grants or contracts) may be subject

to more restrictive reimbursement regulations. In such cases, a traveler’s unit may use unrestricted

funds to reimburse the traveler for the difference

1. Airfare Cost, including earning and using incentives (such as frequent flyer miles)

Current process: The lowest-priced flight available that meets the business need and does not

provide any “cash-like value incentives” to the traveler should be selected (BPM).

Proposed process: The University will pay the cost of commercial airline travel, including

luggage fees, at the lowest available rate that meets the business need. Travelers may always

upgrade accommodations at their personal expense. All incentives earned by the individual

while on business may be retained by the traveler. However, the method and routing of travel

must not be arranged solely to take advantage of such incentives. The use of incentives for

University business is not reimbursable by the University, as these are not actual out-of-pocket

expenses incurred by the traveler (similar to UNM).

2. Payment - Allow purchase of airline tickets with the NMSU Procurement Card (PCard) in

addition to the reimbursement process

Current process: Employees may opt to purchase tickets for air travel in one of two ways:

1) By taking advantage of credit arrangements established with local travel agencies. The

employee must furnish a valid NMSU index and the agency bills NMSU for the travel

cost; or

2) By utilizing personal funds to pay for the flight and submitting a reimbursement request.

Proposed process: Allowing the use of PCard for the purchase of air travel has the following

benefits:

In cases where an employee is not able to incur an out-of-pocket expense or where

departmental policy is that a direct charge be done, flights can be booked by travelers

directly.

Employees will not incur an out-of-pocket expense and have to wait for reimbursement

when traveling on behalf of NMSU

Eliminates the use of approved travel agency services for direct charges. This will

reduce the amount of money spent on travel agent fees, reduce the reconciliation effort

required by utilizing an intermediary for payment, and increase financial controls.

NMSU Senior VP for Admin and Finance E&E – Travel Enhancement Project

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3. Clarify handling of additional airline fees and upgrades – Intent is to provide clear guidance on

what fees or additional costs will be paid by NMSU and when justification is required.

a. Customary Fees - NMSU will pay for fees identified as “customary”, or those which could

reasonably be expected to be paid by any traveler on the airplane.

b. Non-Customary Fees - NMSU typically will not pay for fees that are considered “non-

customary” or fees that are incurred strictly for traveler convenience. However, certain

fees may be paid under certain conditions at the discretion of the traveler’s Dean/VP

level authority with appropriate justification and funding source.

Fee or Expense

Customary - allowed w/o add'l support

Non-Customary - not allowed

(traveler convenience)

Qualifying Condition for paying a non-customary fee or expense

Baggage (all) X

Early check-in X None

Extra leg room X None

Seat upgrades/changes X None

In-flight technology X ?? – for discussion

First class X Only option available; medical necessity

Business class X

International flights in excess of 14 hrs when the traveler will be engaged in business activities the following day or sooner. Flight time does not include time at originating or ultimate arrival airports.

Cancellation X

If required by NMSU to meet other business needs or traveler emergency approved by supervisor

Cancellation Insurance X ?? – for discussion

Travel companion X Medical necessity