Travel Guidelines Training 104/21/23

UNIVERSITY OF CENTRAL MISSOURI

TRAVEL GUIDELINES TRAINING

New UCM Guidelines Effective July 1, 2007

Travel Guidelines Training 204/21/23

Why Change Our Travel Guidelines?

Improve Convenience and Service to UCM Faculty and Staff.

Last update to the Travel Guidelines was June, 2000.

UCM Internal Audit Report to BOG (See Attachment A).

State Auditor’s Audit (See Attachment A).

Internal Revenue Service Audit.

Increase accountability of University financial resources.

Travel Guidelines Training 304/21/23

Travel Task Force Mission

To enhance the University’s travel policy.

Develop recommendations and procedures for implementation of a Travel Card apart from the University’s Procurement Card.

Maintain Internal Controls and accountability of the travel program in order to comply with IRS and State guidelines.

Travel Guidelines Training 404/21/23

UCMTravel Task Force

University Travel Segments

Individual Faculty or Staff Travel.

Athletics and Academic Team Travel.

International Travel.

Entertainment (Business Hospitality)

Travel Guidelines Training 504/21/23

UCMTRAVEL TASK FORCE MEMBERS

Sponsor - Dr. Betty Roberts Teresa Fine Alewel Director of Career Services Terry Bond Accounts Payable Manager Larry Creel IS - Technical Project Manager Jerry Hughes Athletic Director Michael Lucas Director of Internal Audit John Merrigan University Controller Delilah Nichols Presidential Administrative Assistant Jack Rogers Director of Forensics, Faculty Senate Joy Stevenson Director of International Programs Jenne Vanderbout Director – Alumni Relations Joseph Vaughn Department Chair, Criminal Justice William Ward Director of Procurement

Travel Guidelines Training 604/21/23

Travel Task ForceUniversities Benchmarked

Cornell University (Ivy League) Emporia State University (MIAA) Northwest Missouri State University (MIAA) Oregon University (Pac 10) Penn State University (Big 10) Pittsburg State University (MIAA) Purdue University (Big 10) Truman State University (MIAA) University of Kansas (Big 12) University of Missouri (Big 12) University of Northern Iowa (Gateway) University of Pennsylvania (Ivy League)

Travel Guidelines Training 704/21/23

UCM Travel Task ForceTravel Components

Lodging Meals Transportation (Airfare, Car Rental etc.) Mileage Reimbursement Pre-Authorization Cash Advances Travel Card

Travel Guidelines Training 804/21/23

UCM Travel Guidelines

LODGING

Travel Guidelines Training 904/21/23

UCM Travel GuidelinesLodging

Travel Task Force Considerations:1. Safety of our employees.

2. Benchmark data research.

3. Federal GSA rates.

4. Auditor’s recommendation of “Capped” lodging amount per day.

5. IRS regulations requiring receipts for lodging expenditures.

Travel Guidelines Training 1004/21/23

UCM Travel GuidelinesLodging

Prior UCM Travel Guidelines: 1. Prior UCM Travel Policy reimbursed lodging expenditures at the actual amount.

2. The policy further states that UCM employees should seek lodging rates that are reasonable; using the GSA guidelines as a definition of “reasonable” rates.

3. Itemized receipts must be submitted for lodging. IRS considers any reimbursement as taxable compensation if not supported with business receipts.

New UCM Travel Guidelines:

UCM will retain the current policy of reimbursing lodging expenses at the actual amount. Policy recommends that employees ensure lodging rates are reasonable and use GSA rates as a guide. Per IRS guidelines, lodging receipts must be submitted to document overnight travel as a true business expense.

Travel Guidelines Training 1104/21/23

UCM Travel Guidelines

MEALS

Travel Guidelines Training 1204/21/23

UCM Travel Guidelines There are four types of meal reimbursments:

1. “Overnight Travel” Meals.2. “Same Day Travel” Meals.3. “International” Meals.4. “Business Hospitality” Meals.

Five Considerations in Decision Making:

1. What’s best for our employees and University.2. Benchmarking of other Universities.3. IRS Regulations.4. State Regulations.5. Auditor’s Recommendations.

Travel Guidelines Training 1304/21/23

UCM Travel GuidelinesMeals for “Overnight Travel”

Prior UCM Travel Guidelines: UCM reimburses meals at their actual cost with receipts required for meals greater than $25.

New UCM Travel Guidelines

Reimbursement based on lower of actual costs or capped amount of $50 per day as follows except for the below mentioned “high cost” cities:

Regular Cap High Cost Cities Breakfast $10 $14 Lunch 15 20 Dinner 25 30 Total Per Day $50 $64

GSA identified “high cost” cities are Aspen CO, Boston, Chicago, Los Angeles, Minneapolis, New Haven, Newport RI, New York City, Philadelphia, San Diego, San Francisco, Seattle, Vail, CO, and Washington D.C.

No receipts will be required to be submitted for meals. Exceptions to the above “capped” amounts for University sponsored events, meetings with donors

etc will be granted as shown on slide 16. International meals will be reimbursed at actual cost.

Travel Guidelines Training 1404/21/23

UCM Travel Guidelines “Same Day Travel”

Prior UCM Travel Guidelines: Currently the UCM travel policy requires an employee to be out of town on University business for 12 hours prior to being eligible for reimbursement of a meal within the same day.

New UCM Travel Guidelines:

If a UCM employee is out of town on University business for six hours or more, the employee is eligible to be reimbursed for one meal at the actual expense up to a capped amount of $15.

Travel Guidelines Training 1504/21/23

UCM Travel GuidelinesInternational Travel

Prior UCM Travel Guidelines:

Meals for international travel are reimbursed at their actual cost.

New UCM Travel Guidelines:

Meals for international travel are reimbursed at their actual cost. Since there are no limits on international meal expenses, receipts are required.

Travel Guidelines Training 1604/21/23

UCM Travel GuidelinesBusiness Hospitality Meals

Business Hospitality meals are reimbursed at actual cost.

Business Hospitality Meals are defined as: Meals with university guests, consultants, or candidates, with

university business being discussed. Meals that are incurred as part of a seminar, conference, or

required meeting that is presented by the University.

A restaurant or catering receipt with the following supporting documentation to prove the “business hospitality meal” is a true business expense is required before reimbursement can occur:

* Date of the meal. * Name and location of the restaurant.

* Meal Amount. * Business purpose of the meal.

* # of people served. * Identities of guests.

Travel Guidelines Training 1704/21/23

UCM Travel Guidelines

TRANSPORTATION

Travel Guidelines Training 1804/21/23

UCM Travel GuidelinesAir Transportation

Prior UCM Travel Guidelines: UCM travel policy states for out-of-state travel, commercial

airlines is the preferred mode of travel. Cost comparison between personal mileage and airline travel is to be performed and submitted with the employee’s travel voucher when personal car mileage is used in lieu of airline travel.

New UCM Travel Guidelines:For out of state travel, commercial airlines is the preferred mode of travel if it is more economical for the University. However, no cost comparison needs to be submitted with the employee’s travel voucher.

Travel Guidelines Training 1904/21/23

UCM Travel GuidelinesMileage Reimbursement

Prior UCM Travel Guidelines: State of Missouri rate which currently is 45 ½ cents per mile (5 cents below IRS rate).

New UCM Travel Guidelines:The Internal Revenue Service (IRS) rate is currently at 50 ½ cents per mile.

Travel Guidelines Training 2004/21/23

UCM Travel GuidelinesCar Rental

Prior UCM Travel Guidelines: Recommended employees use Enterprise Car Rental.

New UCM Travel Guidelines: Enterprise is the University’s preferred car rental

agency and whenever practical should be used. When Enterprise car rental services are not available, employees may use a car rental agency other than Enterprise such as Avis, Budget, Hertz etc.

Gasoline purchases can be charged to the Travel Card.

Travel Guidelines Training 2104/21/23

UCM Travel GuidelinesTravel Pre-Authorization

Prior UCM Travel Guidelines No formal travel pre-authorization form was required to be

submitted with a travel expense voucher; rather the policy suggested the employee obtain pre-authorization from cost center administrator.

New UCM Travel Guidelines: All overnight travel will require a “UCM Travel Pre-Authorization”

form to be completed by the employee and authorized by the employee’s supervisor prior to the trip being taken.

After the trip is completed, the “UCM Pre-Authorization” form must be submitted to Accounts Payable with the employee’s travel voucher, and receipts to receive reimbursement.

Travel Guidelines Training 2204/21/23

UCM Travel GuidelinesCash Advances

Prior UCM Travel Guidelines: Under special circumstances and within established

restrictions, the University may make advances to individuals for certain travel expenses; primarily group/team travel.

New UCM Travel Guidelines:

University travelers are encouraged to use their UCM Travel Card, however, Athletic and Academic teams will continue to have a need for cash advances in certain circumstances. See UCM Travel Guidelines posted on the Accounts Payable web-site for Cash Advance procedures.

Travel Guidelines Training 2304/21/23

UCM Travel GuidelinesAlcoholic Beverages

The purchase of alcoholic beverages is non-reimbursable by the University.

Travel Guidelines Training 2404/21/23

UCM Travel Guidelines

TRAVEL CARD PROGRAM

Travel Guidelines Training 2504/21/23

UCM Travel GuidelinesTravel Cards

Travel Task Force Considerations: Research found 11 of 12 “Benchmarked” Universities have

a Travel Card Program.

State, IRS, and Internal Audit Recommendations. Reduce $ limits and # of merchant codes on Procurement Cards.

Potential vendors include VISA, MasterCard, American Express, and Diners Club.

“Personal” Liability versus “University” Liability Travel Cards.

Travel Guidelines Training 2604/21/23

UCM Travel GuidelinesTravel Cards

The UCM Travel Card will be separate and distinct from the Procurement Card.

Travel Card expenditures will be charged directly to the University. (Not a personal liability card).

A UCM Travel Card will be issue to those employees that incur $1,000 or more travel annually.

Accounts Payable will pay the cumulative University Travel Card’s expenditures in one payment to the credit card vendor.

At the end of each month, employees who have a University Travel

Card are required to submit a University Travel Card Voucher with the appropriate receipts to Accounts Payable (per University Travel Guidelines).

Only travel related merchant codes will be open on the Travel Card (i.e. airline, lodging, rental cars, restaurants, etc)

Travel Guidelines Training 2704/21/23

UCM Travel GuidelinesTravel / Procurement Cards

The University will continue to have the procurement card program, however, it will be for “non-travel” related expenditures.

There will be a “transition” period from July 1 thru September 30 whereby travel expenditures will be allowed on the procurement card to allow everyone time to obtain and be comfortable with the travel card.

The transaction limits on the procurement cards may need to be reduced from their current limits since travel will no longer be allowed to be charged to these cards. If you use your P-Card for travel only, please turn in your P-Card upon receipt of your Travel Card.

The procurement card program will be managed by Mike Smith, UCM Interim Procurement Director.

Travel Guidelines Training 2804/21/23

Purchasing Card Program

What are the major changes to the purchasing card system?

Will we be reissued new cards? What about my current dollar spending

threshold. Who will we contact for purchasing card

related support?

Travel Guidelines Training 2904/21/23

What are the major changes to the purchasing card system?

Terms and terminologies Executive Officers Department Heads Department Liaisons Cardholders Transition to on line departmental

updating in the Banner System.

Travel Guidelines Training 3004/21/23

Will we be reissued new cards and spending thresholds?

NO! Your cards will remain in tact and so will your spending limits unless adjusted by your Department Head.

Travel Guidelines Training 3104/21/23

Who will we contact for purchasing card related support?

On July 1, 2007 Procurement will be the point of contact for all purchasing card activities unless you are dealing with a direct Banner issue.

All application forms, purchasing card distribution/collection, limit approvals, training, and other purchasing card administrative support.

Travel Guidelines Training 3204/21/23

Cardholder & Departmental Penalties

Department Liaison reports infraction Single abuse – Warning Letter Second occurrence – Suspended card

use minimum 3 billing cycles (90 days) Third occurrence – card canceled one

year. Department Head may recommend

permanent suspension if incident is severe.

Travel Guidelines Training 3304/21/23

Cardholder & Departmental Penalties

Purchasing Card Summary not forwarded by the 10th of the month twice in one Fiscal Year – Departmental Warning Letter

Repeated Cardholder or departmental abuse - Departmental Warning Letter

If severe enough may be turned over to the Internal Auditor for investigation.

Travel Guidelines Training 3404/21/23

UCM

End of Presentation