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6.5. SR 01-25-1999 rCI ~'\) ( ); tIl}{ . Item #6.5. MEMORANDUM TO: Mayor & City Council FROM: Lori Johnson, Finance Director DATE: January 25, 1999 SUBJECT: Travel Policy . In 1990 the City Council approved the city's first travel policy. The travel policy provides for expense reimbursement to city employees or officials who are acting as representatives of the city. The travel policy is an important part of the city's internal control system, and it also serves as a guideline to employees, clearly outlining which items will or will not be reimbursed when traveling or incurring expenses on behalf of the city. The proposed revisions to the policy are the first update to the policy since its adoption. The policy is proposed to be updated at this time because the reimbursement amounts have not been increased since 1990 and the need for a more comprehensive and explicit policy. Attached for your review are copies of the original travel policy and the revised policy. The policy is intended to treat employees fairly while protecting the city's interests. The travel policy has functioned well in the past, and there have not been any major issues relating to the policy. The revised policy is much more detailed in the hope that this will eliminate some of the items which may have been unclear in the previous policy. The daily reimbursement amounts have increased very slightly and maximum meal reimbursement amounts have been established. The amounts included in the policy are similar to the reimbursements used by the federal government. Changes to the policy were discussed at a department head meeting so all department heads have had an opportunity for input on proposed changes and have reviewed the revised policy. Action Reauested The City Council is asked to consider the City of Elk River Travel Reimbursement Policy as revised January, 1999. . 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425 . . . City of Elk River Travel Reimbursement Policy Revised J an uary, 1999 The City of Elk River may reimburse employees, volunteers, appointed and elected Employees (hereafter referred to as Employees) for actual expenses incurred while acting as a representative of the City. Unless otherwise required by law, the following conditions must be met in order to qualify for reimbursement: 1. The expenditure must qualify as a public purpose expenditure as determined by State law and the Elk River City Council for which the City may use tax money. 2. Prior supervisory approval from the department head or City Administrator must be received before reimbursement will be made. 3. Reimbursement will be made only for actual out of pocket expenses which are directly related to the reason for which the Official is representing the City. Reimbursement shall be made in accordance with the rules stated in this policy. No reimbursement will be made to an Employee unless the reimbursement request meets the following criteria and the proper required documentation is included with the reimbursement request. 1. REIMBURSEMENT REQUEST: An itemized Expense Reimbursement Request form (as provided by the Finance Department) must be completed and submitted within thirty days following the date of the expense being incurred in order to be eligible for reimbursement. a) The expense report must be signed by the Employee requesting reimbursement and the department head or City Administrator. b) Receipts must be attached for all items for which reimbursement is requested. i) If an overnight stay is required, receipts may not be needed for all items. See 3b and 3c below. 2. TRAVEL: Whenever possible a City vehicle is to be used for City related travel. a) If a city vehicle isnot available, reimbursement will be made for the mileage incurred during travel for City business. i) Reimbursement will be made at the rate approved as the Federal Government mileage reimbursement rate. b) If out of state travel is required, air transportation is recommended and will be reimbursed by the City. Travel Policy Revised January 1999 . . 3. MEAL AND MISCELLANEOUS EXPENSES: Meals and miscellaneous expenses shall be reimbursed as follows: i) Employees should select the most economical airfare that fits the conference or meeting schedule. An Employee may elect to drive for personal reasons instead of utilizing air transportation with the following provisions: a) Prior written approval must be received from the department head or City Administrator. b) On the date permission is received to drive, the Employee must contact a travel agent and get two written quotes for airfare based on the most economical rate available that fits the conference or meeting schedule. The quote must include the departure and arrival times. The written quote shall be attached to the Reimbursement Request. c) Reimbursement will be made based on actual mileage times the reimbursement rates as stated in 2.a.i or the airfare identified in 3. b.ii. b) whichever is less. d) Lodging reimbursement shall be limited to the period of time required if air transportation had been used. e) Meal reimbursement shall be limited to the period of time required if air transportation had been used. f) Drive time shall be on the Employee's personal time. ii) a) In State or Out of State with no overnight stay required: i) Receipts are required for all meal and miscellaneous expense reimbursements. ii) Reimbursement shall not be made for meals included in the conference or meeting fee. iii) The reimbursement request shall not exceed the set maximums as follows: Breakfast $ 7.00 Lunch 10.00 Dinner 18.00 b) In State with an overnight stay required: i) No meals are to be charged to the hotel/motel room. ii) Receipts are not required for meal or incidental expenses. iii) Reimbursement for meals and incidental expenses will be as follows: Breakfast $ 7.00 Lunch 10.00 Dinner 18.00 Incidentals 5.00 iv) Actual reimbursement for partial travel days will be based on the reasonable time required to reach the destination. . 2 Travel Policy Revised January 1999 . v) Reimbursement shall not be made for meals included in the conference or meeting fee. Phone calls for City business, parking, taxi, and other travel expenses will be reimbursed separately. Receipts are required. vi) c) Out of State Travel with an overnight stay required: i) No meals are to be charged to the hoteVmotel room. ii) Receipts are not required for meal or incidental expenses. iii) Reimbursement for meals and incidental expenses will be as follows: Breakfast $ 9.00 Lunch 11. 00 Dinner 20.00 Incidentals 5.00 iv) Actual reimbursement for partial travel days will be based on the reasonable time required to reach the destination. v) Reimbursement shall not be made for meals included in the conference or meeting fee. vi) Phone calls for City business, parking, taxi, and other travel expenses will be reimbursed separately. Receipts,are required. 4. LODGING: The City will pay for reasonable hotel accommodations. . a) An itemized bill from the hotel is required. b) If possible, arrangements should be made for the hotel to bill the City directly. If arrangements cannot be made for direct billing, the City shall reimburse the Employee for such reasonable lodging expenses except: i) Expenses incurred for lodging during drive time as stated in 2.b.ii above or extra days not directly required to meet the meeting or conference schedule. ii) Expenses for personal phone calls. iii) Expenses for meals charged to the room. iv) Expenses for other personal expenses charged to the room. 5. ADVANCE EXPENSE CHECK: Ifrequested, an advance expense check may be issued for estimated travel expenses. a) The advance shall be issued pursuant to Minnesota Statute 471.97. i) Receipts are required for all expenses. ii) A signed Reimbursement Request with receipts must be submitted within 30 days of travel. iii) The City shall determine the estimated travel expense amount to be advanced. . 3 . . . Travel Policy Revised January 1999 iv) Any additional reimbursement due to the Employee shall be paid by the City based on the receipts submitted. Any refund due from the Employee shall be paid to the City within 10 days of submission of the Reimbursement Request. The refund due from the Employee shall be based on the actual receipts submitted. All other provisions of this travel policy apply to determine the expenses eligible for reimbursement. v) vi) 6. OTHER a) All reimbursements will be subject to tax as required by IRS regulations. b) Alcoholic beverages shall not be included in the meal reimbursement request. c) Incidentals shall include phone calls, newspapers, gratuities and etc. d) Reimbursement shall not be made when receipts are not submitted as required. e) Only actual expenses for the Employee shall be submitted and reimbursed. The Employee is responsible for all lodging, meal, travel, and other expenses of any individual accompanying the Employee. f) The Employee, by signing the Reimbursement Request, acknowledges and agrees that all items included in the Reimbursement Request are legally eligible for reimbursement and meet all of the provisions of this travel policy and other applicable laws. January 14, 1999 4 . . . TRA VEL REIMBURSEMENT POLICY The City of Elk River may reimburse employees and appointed and elected officials for actual expenses they iqcur while acting as representatives of the City. Unless otherwise required by law, the following conditions must be met in order to qualify for reimbursement: 1. Prior approval from the department head or City Administrator must be received. 2. Reimbursement will be made only for actual out of pocket costs paid by the employee or official. 3. The expenditure must qualify as a public purpose expenditure as determined by the City Council in its sole discretion and for which the City may use tax money. Reimbursement will be made in accordance with the following guidelines: 1. An itemized expense report must be completed and submitted within thirty days following the date of return from a trip in order to be eligible for reimbursement; the report must signed by the person requesting reimbursement and the appropriate department head. 2. Mileage reimbursement will be made to an employee using a personal vehicle for City use at the rate approved by the federal government. 3. Pursuant to Minnesota statute Section 471.97, an advance expense check may be issued for estimated travel expenditures. This statute also requires that receipts for all expenditures be provided "promptly after expenses are incurred." Any additional reimbursement or refund due to the City will then be calculated. 4. Employees or officials attending one day meetings and other meetings when an out of town stay is rull necessary will be reimbursed for actual expenditures. Receipts are required. 5. For conferences and meetings longer than one day when an out of town stay is necessary, employees and officials will be reimbursed based on the following schedule: In State - $30.00/day distributed as follows: Breakfast - $ 5.00 Lunch - 7.00 Dinner - 15.00 lncidentals* - 3.00 Out State - $40.00/day distributed as follows: Breakfast - $ 7.00 Lunch - 9.00 Dinner - 20.00 Incidentals* - 4.00 . *Incidentals shall include phone calls, newspapers, gratuities, etc. No receipts will be required in order to qualify for this reimbursement. If an employee or official finds normal meal expenses exceed the above limits due to the economic conditions of the conference location, a reimbursement may be requested for the additional expense. Receipts must be submitted to qualify for this reimbursement. Reimbursement will not be made for meals included in conference registration. A copy of the conference schedule must be submitted along with the expense reimbursement. 6. Phone calls for Cit}! business will be reimbursed separately. Receipts are required. 7. Taxi, parking, and other travel expenses will be reimbursed separately. Receipts are required. . 8. Payment of mileage reimbursement pursuant to paragraph two above shall be paid for transportation by personal vehicle for out of state travel. However, reimbursement shall not exceed the commercial airfare rate. 9. When a personal or city owned vehicle is used in lieu of air transportation, reimbursement for meals shall be limited to the period of time required if air transportation were used. Employees will not be reimbursed for lodging expenses. 10. Reasonable hotel expenses will be paid directly by the City~ however, if arrangements cannot be made for direct billing, the City shall reimburse the employee for such charges except as noted above in paragraph nine. 11. Reimbursement will be subject to tax as required by IRS regulations. .