Cal Poly Travel Policy Implementation Cal Poly, San Luis Obispo Cal Poly Travel Policy Implementation 12/28/2018

Agenda Introduce new travel policy Discuss differences between old vs. new policy Review the new travel claim form Domestic travel claim example International travel claim example Taxability of international travel with personal use Responsibilities of traveler and approver General travel reminders 12/28/2018

Cal Poly Travel Policy Implementation Effective Fall quarter, Cal Poly will implement a new system-wide travel policy developed by the Chancellors Office (CO) with campus input. The existing policy covers Moving and Relocation expenses and Travel, and was developed by Human Resources Administration (HRA) at the CO. The new CSU travel policy only covers travel and was developed by the finance area of the CO. HRA will continue to manage Moving and Relocation policy.

Cal Poly Travel Policy Implementation The new travel policy makes significant revisions in the following areas: Reimbursement rates International vs. domestic travel Potential tax consequences of personal travel

Changes in Domestic Travel Reimbursement Rates Meals Currently travelers claim $50.00 per day New Policy will allow traveler to claim actual meal expenses up to $55 per day Meals do not need to be substantiated by a receipt unless the individual meal is $25 or more Example: If you spent $10/$15/$20 on breakfast/ lunch/dinner, then you should only be claiming $45 in meals for the day, not $55

Changes in Domestic Travel Reimbursement Rates Meals for a partial day of travel will be pro-rated differently as follows: If you leave prior to 9 AM then you can claim up to $55.00 in meals expenses incurred If you leave prior to 2 PM then you can claim up to two thirds of the $55.00 maximum reimbursement, and If you leave prior to 6 PM then you can claim up to one third of the $55.00 maximum reimbursement 12/28/2018

Changes in Domestic Travel Reimbursement Rates Incidentals Currently there is a $5 incidental rate New Policy increases the incidental rate to $7 Example: Incidentals can include tips to baggage carriers, mailing costs, etc.

Changes in Domestic Travel Reimbursement Rates Lodging Actual lodging expenses may be claimed Expenses claimed should be reasonable Receipts are always required

New Travel Claim Form

New Travel Claim Form Identifying Information Section Domestic Travel Claim Example

New Travel Claim Form Expenses Incurred Section Domestic Travel Claim Example

Approval/Rates/Total Cost Section Domestic Travel Claim Example New Travel Claim Form Approval/Rates/Total Cost Section Domestic Travel Claim Example

Changes in International Travel Reimbursement Rates Meals and incidental expenses for international travel are all reimbursed based on published federal government per diems for the specific location. Lodging expenses for international travel are reimbursed based on actual expenses, up to the federal government per diem allowed, and must be supported by a receipt. The Federal government per diems can be found at the following link: http://aoprals.state.gov/web920/per_diem.asp

Federal Government Per Diem Example for Spain Country Name Post Name Season Begin Season End Maximum Lodging Rate M & IE Rate Maximum Per Diem Rate Footnote Effective Date SPAIN Almeria 01/01 12/31 209 135 344 N/A 05/01/2011 Balearic Islands 244 152 396 Barcelona 303 156 459 Bilbao 199 98 297 Fuengirola 196 111 307 La Coruna 187 113 300 Las Palmas de Gran Canaria 238 119 357 Madrid 291 162 453 Malaga 186 123 309 Country: SPAIN Publication Date: 05/01/2011

New Travel Claim Form Identifying Information Section International Travel Claim Example 12/28/2018

New Travel Claim Form Expenses Incurred Section International Travel Claim Example 12/28/2018

New Travel Claim Form Approval/Rates/Total Cost Section International Travel Claim Example

Taxability of International Travel with Personal Use Depending on the amount of personal travel days that you combine with your Cal Poly travel, some of your travel costs could be subject to income tax The CSU has adopted IRS standards to determine when and if the combination of personal and business travel creates a taxable event for the traveler

Taxability of International Travel with Personal Use According to the IRS there is a taxable event if both of the following conditions are met: The total period of the trip is longer than one week, and At least 25% of the trip is personal

Taxability of International Travel with Personal Use Example: An employee travels to London for 10 days, of which 7 days are business related and 3 days are personal; 70% of the trip is business and 30% is personal. The traveler is reimbursed for airfare and 7 days of meals and lodging. The other 3 days of meals and lodging are considered personal and are not reimbursed. Since the trip was longer than one week and at least 25% personal, the employee must be taxed on 30% of the airfare, which is considered personal use under IRS regulations (personal component:3 days/10 days = 30%) The determination of what constitutes a personal vs. business day is between the traveler and approver. As a general rule, any travel days that the employee records as accrued leave time, such as vacation, would be considered a personal day.

Traveler Responsibility The person due the reimbursement for travel costs incurred is responsible for: Submitting travel claims within 10 days from the return of the trip. Providing business purpose and dates of each trip. Certifying he/she: Received pre-authorization to travel (i.e. complete a 1A form) Traveled on official business Actually spent the amount for listed expenses Has verified the amount due is accurate Has not and will not seek reimbursement for 1) a duplicate claim or 2) from any other source Return to the University within 10 days, any reimbursement or payment issued by the University which subsequently results in a refund to the individual. 12/28/2018

Approving Authority Responsibility The approving authority is responsible for: Ensuring expenses charged to his/her accounts are supported by sufficient funds and ensuring appropriateness of use of funds. Ensuring expenses requested are reasonable and supported by a business purpose or justification. Validating, to the extent possible, that the expenses listed were actually incurred by the employee and that appropriate supporting documentation is attached. Reviewing and approving the business purpose and ensuring the request is in compliance with any applicable sponsored project/grant requirements. Approving/denying payment of the travel claim in a timely manner. Denying expenses not directly related to official University business. 12/28/2018

General Travel Reminders All travel must be pre-authorized by completing a travel 1-A form Employees should not have more than one travel advance outstanding simultaneously Travel claims are due in the Travel office no later than 10 days after returning from your trip Receipts must be itemized, a credit card summary receipt is not sufficient. Paper receipts to substantiate expenses that are less than 8.5 by 11 inches in size should be taped onto an 8.5 by 11 sheet of paper in order to help facilitate the document imaging process Travelers should always strive to use the most affordable means of travel

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