This policy includes several references to the Employee Reimbursement System (ERS), an online reimbursement-processing system that will be rolled out in several phases beginning in January 2007.
Travel Support Forms
Philosophy
Consistent Application
Compliance
Required Standards for Compliance
Entertainment
Charging Travel and Related Business Expenses Directly to the University
Commuting and Places of Work
Point of Origin and Final Return for Travel
Long-Term Travel
Continual Travel
Sponsored Funds Travel
Frequent Traveler Programs and Travel Clubs
Business travel creates unique issues relative to other aspects of the workplace. Those who travel on behalf of the University hold a position of trust and responsibility. They work independently, represent the University to the outside community, and are authorized to spend University funds for travel. In contrast to this independence is the need to be accountable for spending University and public monies, which requires that the traveler demonstrate integrity and expect all travel expenses to be scrutinized.
Clearly, the traveler must avoid extravagance. The budget and financial approvers will find that the traveler's latitude in making decisions is to be respected provided that the expenses incurred are allowable under policy.
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Assistance with these issues is available from the Office of Human Resources, the Office of International Programs, and the University Tax Manager. More information is available at http://www.ohr.psu.edu/intlscholars/.
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In the event that the trip is completed in the last month of a sponsored agreement, expenses must be submitted within 30 calendar days of trip completion to allow for submission of the final financial report.
Top * ERS is an online reimbursement-processing system that will be rolled out in several phases beginning in January 2007. Employees who are not yet using ERS are to continue using SRFC for reimbursement and should start using the new travel support form (pdf) for backup.
Travel Support Forms
Overview
Philosophy
Consistent Application
Compliance
Required Standards for Compliance
Entertainment
Charging Travel and Related Business Expenses Directly to the University
Commuting and Places of Work
Point of Origin and Final Return for Travel
Long-Term Travel
Continual Travel
Sponsored Funds Travel
Frequent Traveler Programs and Travel Clubs
Business travel creates unique issues relative to other aspects of the workplace. Those who travel on behalf of the University hold a position of trust and responsibility. They work independently, represent the University to the outside community, and are authorized to spend University funds for travel. In contrast to this independence is the need to be accountable for spending University and public monies, which requires that the traveler demonstrate integrity and expect all travel expenses to be scrutinized.
Clearly, the traveler must avoid extravagance. The budget and financial approvers will find that the traveler's latitude in making decisions is to be respected provided that the expenses incurred are allowable under policy.
Philosophy
The personal safety of the traveler, the wise use of the traveler's time, and the practical aspects of the itinerary are all to be considered in the determination of travel plans. Travel must be planned to ensure University funds are spent prudently, and travelers must exercise care to avoid impropriety.Consistent Application
Travel expenses are to be reimbursed uniformly throughout the University. This policy applies to all University employees, students, guests, and visitors whose travel is paid by the University. Adaptations needed to meet unique situations will be permitted if consistent with the prevailing principles that no unnecessary cost is to be charged to a University budget, that no personal costs are to be paid by a University budget, and that the adaptation does not contradict any provision within this policy.Top
Compliance
The University assumes no obligation to reimburse employees, students, and nonemployees for expenses that do not comply with the principles of this policy. Expenditures that do not comply with the University travel policy will be the obligation of the traveler. Additionally, travelers who continually misuse or circumvent the principles of the policy will be subject to additional requirements for documentation and restricted use of any Penn State Purchasing Card privileges.Required Standards for Compliance
This travel policy complies with the requirements of the many entities served by Penn State. The standards to be met include those of the Internal Revenue Service (IRS) and of federal, state, and nongovernmental sponsors. Excerpts from several of the governing regulations are referenced throughout the policy.IRS Accountable Plan
For travel reimbursement to be excluded from a traveler's taxable income, the traveler must comply with the requirements of the Employee Reimbursement System (ERS).*- Reimbursement for meal expenses when no overnight travel is involved requires that the meal reimbursement be reported to the IRS as taxable income to the employee unless sufficient University business is conducted during the meal to satisfy the requirements for a business group meal or meeting. A business group meal or meeting must have a clearly defined University business purpose and be reported on a business group meal form.
- The IRS requires that any advance outstanding for more than 60 calendar days after completion of a trip is taxable as income to the traveler.
Office of Management and Budget Circular A-21
- Summary
- Federal Circular A-21 (see section 53) establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions. All federal agencies that sponsor research and development, training, and other work at educational institutions shall apply the provisions of this Circular in determining the costs incurred for such work. Circular A-21 (see section 53) addresses travel expenses specifically and this policy is designed to comply with the required standard.
- It is possible that the specific terms and conditions of an agreement will be more restrictive than the OMB Circular A-21 (see section 53) cost principles. It is important for the traveler to review the terms and conditions of each agreement before a trip. If there is a question concerning the allowability of the trip, the traveler must contact the Financial Officer or Research Administrator for guidance.
Fly America Act
U.S. law, 49 U.S.C. 40118, known as the Fly America Act, requires travelers whose air travel is being financed by the U.S. government to use U.S. flag air carrier service for all international air travel when available. The Federal Travel Regulations Sections 301-10.131 through 301-10.143 define U.S. flag air carrier service and provide exception criteria for the use of non-U.S. flag air carrier service. See the foreign travel section of this policy for further details.Immigration and Visa Regulations
International visitors require special processing of permits in order to comply with federal immigration and IRS requirements. All visitors must complete a VISIT form (pdf) PRIOR to travel. The University is not permitted to reimburse noncitizens that do not comply with federal immigration and IRS Visa requirements. More information is available at http://guru.psu.edu/cbb/payroll/visatype.html.Assistance with these issues is available from the Office of Human Resources, the Office of International Programs, and the University Tax Manager. More information is available at http://www.ohr.psu.edu/intlscholars/.
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Entertainment
Entertainment expenditures are prohibited except in the most unusual circumstances. To qualify for reimbursement, entertainment expenditures must be clearly identified by the designated Budget Executive to be in the best interest of the University and may only be charged to unrestricted miscellaneous funds. Under no circumstances is it permitted to entertain U.S. government employees, as such is prohibited by federal law.Charging Travel and Related Business Expenses Directly to the University
No one is authorized to have travel and related business expenses directly billed to the University other than Travel Services, Procurement Services, Purchasing Card users, and users of the DBAF form. Only a duly authorized University official may sign travel-related agreements or contracts.Commuting and Places of Work
Commuting to work from one's home is not classified as business travel, and is not normally eligible for reimbursement. If an employee is assigned to two customary places of work in one day, the transportation to go directly from the first place to the second is reimbursable.Point of Origin and Final Return for Travel
The IRS provides standards that define the beginning and end of business travel. These standards are useful in determining whether mileage from one's home or office is to be used when reporting mileage for reimbursement.- The traveler's home or customary workplace, whichever is last visited before commencing the trip, shall be used as the point of origin when computing transportation costs while on travel status.
- The traveler's home or customary workplace, whichever is first visited after completing the trip, shall be used as the point of final return when computing transportation costs while on travel status.
Long-Term Travel
In cases of an extended travel stay in one location, it may become financially advantageous to the University for the traveler to procure alternative living arrangements to hotels and restaurant meals. In this case, actual expenses may be used instead of CONUS meal per diems and O-CONUS meals and lodging per diems. With the approval of a traveler's Budget Administrator and Financial Officer, it is permissible for a traveler to procure long-term living arrangements based on actual expenses that would not exceed the per diem allocation.Top
Continual Travel
Employees who need to travel on a continuous basis (such as Agricultural Extension Educators) or on extended travel may settle their expense accounts every 30 calendar days. The traveler must work with the Financial Officer to justify the need, arrange for funds to be provided, and handle any special arrangements that may be required for reimbursement.Sponsored Funds Travel
All travel costs charged to grants and contracts must be reasonable and comply with policies established by Penn State and the sponsoring agency. Travel policies of federal and nonfederal sponsors vary. The specific terms and conditions of an award must be consulted before making any travel arrangements. In the event there is a conflict between a sponsor's rule and Penn State's rule, the more restrictive rule applies. When in doubt, the traveler should consult the Financial Officer or Research Administrator.In the event that the trip is completed in the last month of a sponsored agreement, expenses must be submitted within 30 calendar days of trip completion to allow for submission of the final financial report.
Frequent Traveler Programs and Travel Clubs
Travel awards from airlines, hotels, car rental agencies and other providers earned while on University business may be retained by the traveler for future University travel or for personal travel. Travelers will not be reimbursed for their use of travel awards nor will they be reimbursed for memberships in travel clubs or special programs to obtain travel rewards. The selection of an airline, hotel, rental car, or other provider shall not be based solely on the traveler's ability to earn rewards from that provider. Any cost passed on by the vendor to the traveler for earning those rewards will not be reimbursed.Top * ERS is an online reimbursement-processing system that will be rolled out in several phases beginning in January 2007. Employees who are not yet using ERS are to continue using SRFC for reimbursement and should start using the new travel support form (pdf) for backup.