Applications of University Travel Policies A Roundtable Discussion Lottayne Widemon – NCA&TSU Yolanda Hopkins – NCA&TSU

Session Etiquette Please turn off all cell phones. Please keep side conversations to a minimum. If you must leave during the presentation, please do so as quietly as possible. 2

The Accountable Plan for University Travel An employee reimbursement allowance arrangement or a method for reimbursing employees for business travel expenses that comply with IRS regulations. Employee travel expenses do not have to be treated as taxable income under the accountable plan. Accountable Plan is an IRS term. (Publication 463)

The Accountable Plan for University Travel Accountable Plan Requirements Your expenses must have a business connection -that is, you must have paid or incurred deductible expenses while performing services as an employee of the University. You must adequately account to your employer for these expenses (include original receipts) within a reasonable period of time (defined as 30 days- NC G.S c). You must return any excess reimbursement or allowance within a reasonable period of time. 4

The Accountable Plan for University Travel Expenses must have a Business Connection Official State Business Official state business occurs when the State employee or other person is traveling to attend approved job related training, work on behalf of, officially represent, or provide a state service upon the State’s request. Travel that would not directly benefit the State will not be reimbursable. OSBM., pp125, January 1, 2013

The Accountable Plan for University Travel Expenses must have a Business Connection Note: Scholastic program requirements for students and travel taken for the primary benefit of an individual or outside entity which does not benefit the University does not qualify as official University business.

The Accountable Plan for University Travel Expenses must have a Business Connection Post-secondary Students Student travel expenses while working as an employee of the State are considered official state business when traveling on behalf of their position and shall be paid from the same source of funds from which the employee is paid. Non-employee students at state institutions who travel on official state business are reimbursed from the General Fund consistent with payments for state employees. Non-employee students who travel to fulfill a course requirement for academic credit and whose expenses are paid or reimbursed by the General Fund are subject to these regulations, including statutory allowances, to the same extent as are state employees. Funds specifically appropriated or legally directed for student travel are authorized to be used for student travel expenses. Official state business is defined in Section OSBM., pp.140, January 1, 2013

Question: How are travel expenses for non-employee students who travel to fulfill a course requirement for academic credit processed?

The Accountable Plan for University Travel Account for expenses within a reasonable amount of time Pursuant to NC G.S (c), requests for reimbursement shall be filed within 30 days after the travel period ends for which the reimbursement is being requested. (OSBM., pp.125) Question: How are travel reimbursement requests filed after the 30 day period handled?

Question: Student Group Travel: How does your institution manage subsistence, advances, covering meals outside of subsistence rates and the reimbursement process?

Student Group Travel Student Group travel is when one university faculty/staff member takes a group of students on a trip and pays for the entire trip expense for the students. If students are to be reimbursed for any travel expenses, then travel cannot be processed as a student group travel and a separate travel authorization must be created for each student which should follow the policies and procedures for a student.

Spousal Travel on Business How does your institution process and reimburse travel expenses for the president’s spouse?

Spousal Travel on Business

Question: What is your institution’s policy regarding travelers canceling a trip for which the university prepaid nonrefundable airline tickets?

Cancellations Credits resulting from nonrefundable airline tickets prepaid by the University must be used for future University travel prior to its expiration date usually one year from ticket issue date. If the airline ticket remains unused after the expiration date it becomes the obligation of the traveler to reimburse the University for the unused ticket amount unless cancellation was due to University business reasons documented in the report filed in the Travel Office. Any penalty/charge assessed while applying a credit resulting from a cancellation is also the responsibility of the traveler. Remember : The prepayment made by the University is a loan to the traveler. 15

Payments Reported as Taxable Income The University reports payments as taxable income when tax law requires this treatment. The most common instances in which taxable income is likely to occur are from payments that do not meet Internal Revenue Service (IRS) accountable plan rules. Additionally, reimbursed lodging, meals and transportation costs associated with employee educational expenses does not necessarily meet the criterion for business travel and may be reported as taxable income. (See IRS Publication 15-B) 16