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Home My WebLink About10/05/1993, C-11 - UPDATED TRAVEL GUIDELINES Illu^I�Il�lllllnllla�IIIII � r MEETING DATE: Ifll II i��uil Cio san suis oB�spo zo Waza COUNCIL AGENDA REPORT ITEM NUMBED; / FROM: William C. Statler, Director of Finance SUBJECT: UPDATED TRAVEL GUIDELINES CAO RECOMMENDATION Adopt a resolution updating the City's travel guidelines. DISCUSSION The City's travel guidelines have not been comprehensively reviewed since June of 1984. In the interim nine year period, several administrative updates have been made to reflect changes in IRS rules, respond to requirements of the Fair Labor Standards Act, and to reduce costs. (The 1984 travel guidelines along with interim revisions are provided in Section 300 of the Financial Management Manual). The purpose of the proposed update is to comprehensively incorporate these changes into one integrated document and to streamline and improve form preparation and reporting procedures. Additionally, this update reflects the following recommended policy changes based on current practices and fiscal circumstances, and the nine years that have passed since these guidelines were last reviewed on a comprehensive basis: ■ Seminars, meetings, and conferences that require overnight accommodations should only be attended when the training is mandatory, reimbursable, or otherwise necessary to accomplish key City goals and objectives and is unavailable locally. ■ The previous limitation of 25% of the cost for meals that may be allocated for beverages is eliminated. ■ All airfare travel on City business should be coach class. ■ The previous limitation of $20 for taxis is eliminated. ■ Spouses and guests are allowed to accompany employees on City travel and at conferences, seminars, and meetings. However, any additional costs associated with participation by spouses and guests are the responsibility of the employee. ■ City funds should not be used to purchase alcohol or reimburse employees for alcohol related costs. 1111111111lllll$pM�p city of san lues oBispo A- COUNCIL AGENDA REPORT ■ All expenses must be itemized and reported after travel. Accordingly, the $13 portion of the current per diem amount for miscellaneous expenses is eliminated. However, to account for the nine years that have passed since the current daily per diem amount of $44.00 was established, it is recommended that this amount be retained as the per diem allowance for meals. ■ The Travel Authorization/Expense Report form and procedures have been revised. As noted earlier, some of the items listed above are already standard City practice (e.g. the alcohol policy); the modification to the travel guidelines to add specific policies will formalize these practices). FISCAL IMPACT There are no fiscal impacts associated with the proposed update. SUMMARY In order to comprehensively incorporate all of the City's travel policies into one document, improve administrative procedures, and reflect policy changes that should be made since the City's travel guidelines were last reviewed on a comprehensive basis, it is recommended that the Council adopt the attached resolution updating the City's travel guidelines. ATTACHMENTS I ■ Resolution adopting updated travel guidelines ■ Proposed travel guidelines (Section 301 of the Financial Management Manual) I FKK\301AGRPT.WP RESOLUTION NO. (1993 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO UPDATING TRAVEL GUIDELINES WHEREAS, the City of San Luis Obispo reimburses its officials and employees for travel and business expenses incurred by them in the course of their official duties; and WHEREAS,the City has previously adopted guidelines regarding reimbursement for official travel and business expenses which have been in place since June 5, 1984; and WHEREAS, the City desires to update these existing guidelines to reflect current conditions and implement improved procedures; NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that Resolution No. 5368 (1984 Series) is hereby rescinded and the travel guidelines provided in Exhibit A attached hereto are hereby adopted. On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of , 1993. Mayor Peg Pinard ATTEST: Diane Gladwell, City Clerk APPROVED: V34rd. org a ity Attorney Exhibit Section 301 TRAVEL GUIDELINES OVERVIEW These guidelines establish the basic policies and procedures for travel on City business by all employees and officials. Everyone who travels on City business - or supervises someone who travels - is responsible for knowing and following these guidelines. These guidelines are organized into seven sections: ' ■ General standards ■ Planning an official trip ■ Submitting travel authorizations and cash advance requests ■ Making the trip ■ Incurring non-travel expenses ■ Accounting for expenses ■ Completing travel authorizations/expense reports The key document in the administrative process is the Travel Authorization/Expense Report (TA). Besides ensuring that travel by City employees and officials'.is conducted in accordance with adopted policies, the TA summarizes the total cost of attending conferences, meetings, and seminars and provides documentation for cash advances and vendor payments. General instructions for completing and processing this form are also included in these guidelines. GENERAL STANDARDS These guidelines do not require you to take a bus, stay in a cheap motel, or eat only in fast food restaurants. A bus or a train may cost less than a plane, but the added time away from work can make these slower options more expensive to the City overall. The meal allowances established in these guidelines allow you to eat in moderately priced restaurants. In all areas, not just economy, you are responsible for exercising good judgment in requesting, arranging, and making a trip. It should be thoroughly planned, well in advance. Personal business should not be mixed with official business if it will cost the City anything in dollars or lost time, or if it will harm the City's interests in any way. These guidelines are not intended to address every issue, exception, or contingency that may arise in the course of City travel. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of the City's resources. PLANNING AN OFFICIAL TRIP How will you travel? When planning the transportation portion of your trip, consider all aspects of cost to the City - daily expenses, overtime, lost work time - as well as actual transportation costs. In 301-1 general, common carrier (bus, train, plane) is the preferred mode of transportation. You should use an intercity bus, train or airplane unless there is a valid reason for using private _ transportation. For example, use of a City vehicle - especially if two or more employees or officials are traveling together- may be less expensive for travel within the State. However, as noted above, the increased time for automobile transportation- and the potential for lost work time, overtime, or increased lodging costs - should be considered in determining the best mode of transportation. All air travel on City business should be coach class. If you will be driving, you should use a City vehicle if one is available. You may request a City credit card to purchase gasoline (available from Administration) or request reimbursement when you return. If a City vehicle is not available, or there is another reason why you should drive your personal car, you may do so with the approval of your department head. You will be reimbursed at the currently approved per mile rate (see Section 350 of the Financial Management Manual). The following intercity mileages provided by the Automobile Club of Southern California may be used: ■ Anaheim 227 ■ Sacramento 286 ■ Bakersfield 137 ■ San Diego 324 ■ Fresno 138 ■ San Francisco 231 ■ Los Angeles 201 ■ San Jose 188 ■ Monterey 148. ■ Santa Barbara 108 ■ Oakland 228 ■ Santa Maria 30 To drive a privately owned vehicle on City business you must: ■ Possess a valid California driver's license. ■ Carry liability insurance limits required by the City's Risk Management Manual. ■ Realize that any damage to the car, needed service, or repair occurring on the trip will be your responsibility, as these costs are included in the City's per mile cost reimbursement. If you need local transportation at your destination, use of public transit such as buses, streetcars and subways is appropriate. You will be reimbursed for these expenses. You will be reimbursed for taxis when public transit or other common carriers are not reasonably available. If a car rental is required, you may use a City credit card or request reimbursement when you return (see Section 303 of the Financial Management Manual regarding guidelines and procedures for using City credit cards). When will you go? By what route? You should schedule your trip so that you leave at the latest reasonable hour and still arrive at your destination on time. You should also return promptly when your business is 301-2 4'- 14.r finished, thereby minimizing the time away from work and ensuring full reimbursement of all related expenses. You should generally take the most direct and commonly traveled routes. Other routes may be authorized when official business requires their use. If you take an indirect route or stop along the way for personal reasons, you will not be reimbursed for related expenses. What about compensation for travel time? When travel time exceeds your normal work week, the City's rules for overtime apply if you are eligible for overtime. In determining overtime compensation, normal commute time should be deducted from the total travel time. Additionally, normal unpaid meal periods are not considered work time when you are traveling. Overtime eligibility applies equally . to drivers and passengers, and should be granted whether the travel occurs during normal workdays or on weekends or evenings. Where will you stay? The City will pay for a single room (including taxes and parking) for as many nights as necessary. The accommodations you use should be economical but practical. For example, it is preferable to stay at the hotel where a conference is held, even if that hotel may be slightly more expensive than others in the area. Location is also important: a hotel close to where you will be conducting business may be slightly more expensive than outlying hotels, but it may be easier to achieve the City's travel goals by staying at the closer location. In general, you should stay at the most reasonably priced accommodations available consistent with the purpose and goals of your travel. If you have a question about using a particular hotel, obtain concurrence or direction from your department head before making a reservation. Should you make reservations? Whenever possible, you should make reservations. They are often required for large conferences. If a credit card number is needed to hold a reservation, you can use the City credit card number, but no payments or purchases should be made with the card without prior arrangements with Finance. Be sure to cancel any reservations you will not use. If the City is charged for an unused reservation, you will pay that charge unless circumstances requiring cancellation were reasonably beyond your control. When making lodging reservations,be sure to ask about exemptions from the local transient occupancy tax (TOT): some cities exempt travelers on City business, others don't. If there is an exemption, you can save up to 12% on lodging costs depending on the local TOT rate. Almost all lodging operators will require an official, written claim for exemption, and a sample for this purpose is provided in Exhibit A. SUBMITTING TRAVEL AUTHORIZATIONS AND CASH ADVANCE REQUESTS TA's are required whenever the total estimated cost will exceed $200 or overnight accommodations will be required. Otherwise, the voucher system may be used to request vendor payments or employee expense reimbursements. Department head approval of TA's 301-3 C- /�'� is required, and out-of-sme travel requires the further approval ui the CAO. The first page of the completed TA and accompanying voucher requests should be submitted to your department head as far in advance as possible. The reverse side of the TA will be used when you return to account for your reimbursable expenses. Department heads approving TA's are responsible for determining that the cost is reasonable and justified by the trip's purpose. They should be certain that: ■ The purpose cannot be accomplished by mail or telephone. ■ The seminar, meeting, or conference is mandatory, reimbursable, or otherwise necessary to accomplish key City goals and objectives and is unavailable locally if overnight accommodations are required. ■ The minimum number of City staff members are going. ■ The itinerary ensures accomplishment of the purpose at the lowest reasonable cost. ■ The traveler understands and follows these guidelines. ■ There is enough money in the appropriate travel budget to cover7the costs. Requests for cash in advance and payments to vendors The City will pay all legitimate expenses of your trip. These include transportation, lodging, registration fees, meals, and any other related expenses if they are for official business and fit within these guidelines. There are two ways to pay for travel expenses: "direct vendor payment" and "cash advance". Direct vendor payments are made by the City to an organization to pay for specific costs related to a trip - usually registration fees, lodging, and airfare. Cash advances are lump sum payments made to you before you leave to cover expenses as they arise on the trip. If you request a cash advance, your department head must review the amount to be sure it is reasonable. When you return,you must account for all expenses you incurred, and return the unused portion of the advance. You will be reimbursed the difference if the actual, authorized expenses you incurred exceed the amount advanced. To obtain either direct vendor payments or a cash advance, you must complete the appropriate sections of the TA and attach payment vouchers for all payments (including cash advances). You should retain a copy of the completed TA (both sides) because you will need it when you return to reconcile and account for your reimbursable expenses. MAKING THE TRIP There are two key "golden rules" to remember about making an official trip: ■ Keep it official. ■ Keep records for all expenses. 301-4 C-11- 7 Keeping it official If you take time away from official business for personal matters, or if you delay your return after completing your business,you will not be reimbursed for expenses incurred during that time. When combining business and personal travel in this manner, department head approval is required. If this extended period occurs during your regular scheduled work hours, the time will be counted as vacation, comp time (if available), or leave without pay. If you become sick and must delay your return, you will be reimbursed for your additional living expenses (except those directly related to your illness, such as physician or hospital costs) until you are able to return home. You should notify your supervisor as soon as possible if you become ill. The time will be counted as sick leave if it occurs during your normally scheduled work hours, and the City's normal sick leave rules will apply. Keeping records for all reimbursable expenses As discussed below under "Accounting for Expenses", you must maintain a detailed record of all reimbursable expenses incurred during your travel: meals, transportation, lodging, baggage handling, parking fees, registration fees, telephone, and any other reasonable and necessary expenses. In accordance with IRS rules, receipts must be submitted for. ■ Any individual expense of $25.00 or more. ■ All lodging expenses regardless of cost. Meal allowances The following per diem amounts (including beverages, taxes and gratuities) are allowed for meals: Breakfast $ 8.00 Lunch 13.00 Dinner 23.00 Total Per Diem $ 44.00 Because of reimbursement limitations by other agencies (such as P.O.S.T) or other budget constraints, department heads may authorize lower meal allowances. Any reimbursements exceeding the allowed per diem amounts require approval by the Director of Finance. In calculating meal allowances for partial days, the following guidelines should be used: Departure ■ If you depart after 8:00 a.m., deduct the breakfast allowance for that day. ■ If you depart after 2:00 p.m., deduct the breakfast and lunch allowances for that day. ■ If you depart after 8:00 p.m., deduct all meal allowances. Return ■ If you return after 8:00 p.m.,you may claim the full per diem meal allowance for that day. 301-5 . //4 ■ If you return between 2:00 p.m. and 8:00 p.m.,you may claim the breakfast and lunch allowances. ■ If you return between 8:00 a.m. and 2:00 p.m., you may claim the breakfast allowance. General ■ If meals are provided without charge at a meeting or while in transit (meals served on a plane, for example), appropriate deductions must be made from the per diem meal allowance. INCURRING NON-TRAVEL EXPENSES The City will pay expenses incurred for such meetings and hospitality as may, from time to time, be determined by the Council to be appropriate. Costs for such special occasions will be determined by specific Council action authorizing such events. The City will also pay expenses you incur attending meetings or conferences held locally which do not include travel expenditures. In addition, the City will reimburse you for costs incurred while at a meeting or other function when such costs are directly linked to the program or subject matter of the meeting. Examples of costs which may be borne by the City include printed materials, tapes, or other training material which may be available for sale at the meeting. Alcoholic Beverages City funds should not be used to purchase alcohol or reimburse employees for alcohol related costs. The Council may approve exceptions to this policy on a case-by-case basis. Spouses and Guests Spouses and guests are welcome to accompany you on City travel and at conferences, seminars, and meetings. However, any additional costs associated with the participation of your spouse or other guests are your responsibility. Exceptions to this policy include the annual League of California Cities dinner and any other occasions as specifically approved by the Council. ACCOUNTING FOR EXPENSES When you return from your trip or official function, a final accounting of all expenses must be approved by your department head and submitted to Finance within five working days. An expense report is required in all cases - whether your advance and actual expenses are equal, you are eligible for additional reimbursement, or you owe money to the City. The final accounting is made by completing the "Expense Report" section on the reverse side of the TA. Only eligible expenses for which you are requesting reimbursement should be included. Listing direct payments to vendors is not required unless it affects your request for reimbursement (for example, reconciling any differences between an advance amount 301-6 paid for lodgings and any final reimbursable costs in excess or-this amount that you may have incurred upon check-out as well as deductions for any personal expenses that may have been charged to the hotel bill). After completing the expense report, you should attach required receipts, sign the report attesting to its accuracy, and submit it to your department head for review and approval. If you owe the City for the unused balance of a cash advance, you should pay the amount due to the cashier at your location and attach the cash register receipt to your expense report Department heads approving expense reports are responsible for ensuring that: ■ All expenses are reasonable, necessary, and consistent with these guidelines. ■ Any required receipts are attached. ■ The final disposition is correct (e.g., balance due employee; balance due City). ■ Any amounts due to the City are reimbursed. . ■ Final accounting of all expenses is submitted to Finance. Upon approval by your department head, the expense report should be processed as follows depending upon the circumstances: If the City owes you and you received a cash advance The expense report should be forwarded to Finance and the reimbursement will be processed on the next check register. No additional documentation (such as vouchers) is required. If the City owes you and you did not receive a cash advance The expense report should be forwarded to Finance along with a voucher request for payment to you; the reimbursement will be processed on the next check register. If you owe the City The expense report should be forwarded to Finance with the cash register receipt attached evidencing payment of the amount due. 301-7 Overview of Travel P: -edures h.i.. ....... ..... ..:.`.".. ..........:: .»., v:::. .....»,,...,.f.i:.. :. .:u.::.::.::.ii:,:.i:p:.i:.i:.ii:ff:.�.;, ............ ::., ::.::: • . ....... ..:....... .:.::::::.vn+:.nip:f.iii:iinY.:iiii:: .i:)Fjii::::::iYiv�«:i::':':w:::i:i� ' Y..ii'n'yi.. :•.•••iii:is i:.ii.. Traveler no. Consult with Department Head on the need for Ira vel r Plan itinerary, transportation&lodging w Complete Travel Authornatioa(TA)and attach vouchers for employee cash advance and each direct vendorpa}7nent requested Department Mead w- Review TA for conformance wilh City travel guidelines and department priorities r Verify that ade g q wale fundm exists is the x..'�'...3>�,'��.,,+...�.�'.'?s.'as{%i:F<�>a>an�:•:f�.'..:i::. appropn:ate travel budget to cover all costs Approve TA,provide a copy to the employee, T3} ^L.C :i4w :^"{aj�i.YNJ f:S"Cii�:: >,..v<>i�:R;;r:M':>:•'p= <p°•� and submit to Finance forpaymeat processing 4nnY xY:h'ii(v�tv:::.M::•L:.::'f:..:.:SiJ'vr<:K::NnH,iil'i::! Finance w Make cash advance and vendorpayments w- File TA in employee's vendor file w- Issue Visa credit card if requested(See Section 30.3 of the Financial Management Manual for policies and procedures on the use of the City credit cards) Administration I*- Issue gasoline credit card if requested Traveler r Complete and submit expense report section of the TA amounting for all reimbursa ble expenses to the Department Head within S working days after completion of travel w- Attach any required receipts r Sign report attesting to its accuracy w Pay cashieralyour location andattach cash register receipt if balance is due to the City Department Head w Reviewexpense report forconformance with City tra vel guidelines Verifyaccuraryofbalances and disposition . ':. 2. , , r Approve expense report,make a copy for � r departmental records,andsubmit to Finance; # '�3ro� z Q t in attach voucher request if funds are due to the employee and cash adti.tnce was not requested .► Return any credit cards along with any required supporting documention to Finance or Administn. tion Finance I r File expense report in employee's vendor file i and process anypayment due to the employee if requested 301-8 C-/A�� Completing the Trave, .Authorization The Travel Authorization(TA) form should be prepared whenever the total estimated cost of travel is more than $200 or overnight lodging is required. The TA is a two—sided form:the front side provides for approval of the travel, summarizes the cost,and provides documentation for any cash advance to the employee and direct payments to vendors;the reverse side is for reporting actual reimbursable expenses within 5 days after travel is completed and reconciling this final amount to the cash advance. Completing the form itself is largely self—explanatory,and a completed sample is provided for your information. The following highlights key areas of the TA form: The front side of the TA is organized into rive major sections: General Information Identifies who is going,where the meeting or conference will be held,how long the employee will be gone,how much it will cost,and the account number that should be charged. Purpose Summarizes the reason for the trip. Cost and Payment Summary Outlines the estimated cost of the trip by expense type(registration,transportation,lodging, meals — spaces are provided to add categories not prelisted),vendors to whom payment will be made (including cash advances to the employee),method of payment(voucher,purchase order,credit card),and amount. A summary' is then provided of the payments to be made to the employee,vendors,or by credit card. Appropriate vouchers,purchase orders,or credit card requests should be attached to the TA when it is submitted to Finance for processing. Itinerary Summarizes when and where the employee will be traveling. Approvals Provides a signature box for the employee and approval by the Department Head. Out—of—state travel requires the further approval of the CAO. For reporting actual expenses upon completion of travel and reconciling this amount to any cash advance received,the reverse side of the TA is organized into 4 major sections: Reimbursable Expense Detail Itemizes actual expenses by type for each day of your trip(spaces are provided for dates and expense categories not prelisted). Only expenses reimbursable to you should be listed — payments made directly to vendors should not be included. Mileage Detail—Personal Vehicle Summarizes miles and cost if you were authorized to use a personal vehicle for the trip. Travel Expense Summary Totals the cost of the trip for personal expenses (reimbursable expense detail plus any personal vehicle costs)and reconciles the total cost of the trip with any cash advance received,resulting in either a balance due to the employee or due to the City.This expense report must be completed and submitted to Finance even if the cash advance and actual reimbursable expenses are equal. Approvals i Provides a signature box for the employee and approval by the Department Head. Any requests for reimbursement in excess of per diem meal allowances requires the further approval of the Director of Finance. ?01-9 City of San Luis Obispo TRAVEL AUTHORIZATION This form should be completed in!cable handisTiling xx. ID 101, ..................... $ PURPOSE e60r1,e !=�,Oct ro ree S 1:566 .4,'rxoda-ear- &eo�Aqe. *,Ace � ,o,4ce 40 4" cc^y �e~fs$:,l COST SUMMARY 7:7 Registration kgo� ,::he /9s o0 - Air fare Lodging //,o/; a e�4 e,A-, Meals --xrA Mileage — personal vehicle Gasoline —city vehicle vp Rental car TOTAL S -,Cp- ,o "00 PAYMENT SUMMARY Cash Advance to Employee 0-e.00 Direct Vendor Payments 34-c,0 0 Credit Card 20 r 00 TOTAL S ASO.00 ITINERARY ..K-` R": he reverse siee of this form for reporting actual expenses with 5 working days after your return. 301-10 <%- 13 Cost dai'`tz mot �e�crt.-need aS Travel Authorization /I.y'''e�It awl 9" elrlG7el40 V rII" EXPENSE REPORT D RECONCILIATION TO CASH ADVANCE M form should be completed in I le handwriting eGc��a✓ r�t{GC6rro� REIMBURSABLE DENSE DETAIL v Date Description 3 / / 5 r t TOTAL Registration Air fare Lodging 7111 79 1:3. l/-Wley 9 2 Break-fast od Lunch if Dinner. /S:'yS /7 2 G- /.? SD 9S: S U Gasoline Rental car fade Yk% n S.co S.oo S o a �95B Ccdi�c 'ctvt 3�. O .3?. sv Reeetpis must be attached for a0lodring expenses and arty indisidual expenses in excess of S3S TAL 124.ZG 7F SOL %A `� Si<I.r�GG1�i -4-C, 6Qi4 UGIorcf MILEAGE DETAIL - PERSONAL VEHICLE Odometer Readio s Depart ore/Destination Starting i ea a Eadiar.Milea a We Miles This src�Lov� riLc u Ld �y e lOr++�LecLr i Pi Standard mileage tables provided in the City's traiel Total miles - personal vehicle gnidanes may be used in lieu of odometer readlnes Reimbursement @ per mile TOTAL —� REIMBURSABLE TRAVEL EXPENSE SUMMARY By signing this expense report' the employee aenirrs Total reimbursable travel expense /24 2l0 that the amounts listed were incurred in conformance Cash advanced gS,Co with the City's travel guideh'nes and that no part is ( l�Amount due employee claimed for reimbursement of a personal nature. ( ) Amount=due u.,.,::::,:x:::7.77 3,'F.. ..u.:�:;.;>..:.,....:. 176 $T��II1Ch'1:.��C'dd:. .:,:..i::a:::�,:::x::...>......... T o�ou n t a.,ts c/trG C//i C�+lh rte 1s t4i"trcG�t 5/1ov r/ be dpCfiPgO 301-11 ��►II��II�iIfIIII�IIIIIIIII �� of san tuts oBispocity to 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100 CLAIM FOR EXEMPTION FROM TRANSIENT OCCUPANCY TAX The undersigned claims exemption from paying city transient tax charged for the period from through . The undersigned claims this exemption for , who is on official business as an employee of the City of San Luis Obispo. NOTE. Operators of hotels should not accept this application unless the person presenting it shows satisfactory identification. A separate application is required for each occupancy period I declare under penalty of perjury of the laws of'the State of California that the foregoing is true and correct: [Signature of Authori_7ing Official] Sara Elspeth, Date Director of Department Exhibit A_ FMM\301.YPF i OThe City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf (805) 781.7410. 301-12 c— �l �S