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Item 4I CITY OF SOUTHLAKE Item 41 MEMORANDUM November 11 , 2015 To: Shana Yelverton, City Manager From: Sharen Jackson, Chief Financial Officer Subject: Approval of City Travel Policy Action Requested: City Council approval for the amendment of the current Travel Policy. Background Information: The current Travel Policy was approved by City Council on December 3, 1996 with the outdated policy staff has seen an increase in exception request over the last several years. The purpose of updating the Travel Policy is to provide sound management of the City's financial assets, reduce costs and improve efficiencies. The amended policy provides several key updates including: • Replacing the flat rate of $35 per day, as established in 1996 and using the daily maximum allowable meal & incidental expense rates as set by the US General Services Administration (GSA); • Utilizing temporary travel cards to replace the cost of issuing a check, thus increasing efficiency, and effectively improving control and security of financial assets; • Utilizing the State travel contract to ensure best pricing for air, lodging and transportation accommodations; • Requiring a Purchasing Liaison in each department to increase efficiency and process improvement; and • Incorporating a paper-lite, electronic process to improve efficiency and reduce cost. Financial Considerations: Using rates set by the GSA will increase allowable spending on meals & incidental expenses; however, utilization of the State travel contract will provide best pricing on travel accommodations. Strategic Link: F4 Establish and maintain effective internal controls Page 2 of 2 135 Enhance service delivery through continual process improvement 136 Optimize use of technology Citizen Input/ Board Review: None required Legal Review: The City Attorney has reviewed the proposed policy. Alternatives: Approve, deny or modify amendment to the City of Southlake Travel Policy. Supporting Documents: None Staff Recommendation: Approval of the amended Travel Policy. TRAVEL POLICY I. PURPOSE The purpose of this Travel Policy is to establish regulations for the allowances of Travel Expenses related to City Business. Authorized travelers should neither gain nor lose personal funds as a result of City-related business expenses incurred on behalf of the City of Southlake (City). II. APPLICABILITY, RESPONSIBILITY AND AUTHORITY A. This policy applies to all City employees, volunteers, board appointees and City Council elected officials acting within an official City capacity (traveler). 1. The traveler and Authorized Approver (Approver) are responsible for understanding the provisions of this policy and conformance to the regulations. 2. Additionally, Approvers are responsible for authorization of Travel and to ensure Budgetary Requirements are met prior to spending funds for Travel. If Budgetary Requirements are not met, Approvers may deny authorization for City Travel,Travel Advances and Travel allowances. a. In accordance with Section 2.05 of the Home Rule Charter of the City of Southlake, City Council elected officials are entitled to reimbursement for expenses in the performance of their specific duties when approved by the Council. 3. Finance Administration (Finance) is responsible for administering the requirements of this policy, including issuing administrative procedures to accompany it. 4. Department Directors will provide oversight for adherence to the policy. B. A traveler's signature certifies the accuracy of all information and the justification of the Travel and expenses incurred during authorized Travel dates. The approval signature certifies the Travel was necessary and that requested allowances have been reviewed, authorized, and are within this policy's requirements. C. Unless specified otherwise, exceptions to this policy must be approved by the City Manager. III. DEFINITIONS See Defined Terms IV. ADMINISTRATIVE POLICY A. The City will pay all reasonable and necessary Travel Expenses related to City Business, if funds are available. B. Air, lodging and rental car arrangements must be made through a Purchasing Liaison (PL) using a City Procurement Card (P-Card). When making Travel arrangements, the PL may utilize the State Travel contract or most economical manner. C. Except for Mileage-Only expenses, travelers on City Business must have prior authorization in order to receive allowances for expenses. D. An approved Travel Plan and Authorization (TPA) and Travel Expense Reports must be completed and submitted to Finance within the times specified within this policy. Failure to comply within the times specified within this policy may result in an Outstanding Travel Claim. 1 E. Travel Expenses are open to the public pursuant to the Texas Public Information Act and must be able to sustain the test of public review. A traveler has a Fiduciary Responsibility to safeguard the public trust and the use of taxpayer dollars when making Travel arrangements. Therefore, travelers and Approvers are expected to complete Travel documentation while recognizing they are subject to public scrutiny and the use of public funds should be transparent. F. Official procedures and forms for this administrative policy have been adopted as part of this policy and are maintained on the City's intranet site. V. GENERAL REQUIREMENTS A. Travel Expenses include all reasonable and necessary expenses related to City Business. The use of City funds to accommodate personal comfort, preference or convenience is not permitted. B. The TPA and Travel Expense Report must be completed for each traveler. C. A traveler may not pay for another traveler's expenses while on Travel, including meals. 1. Unless specified otherwise, exceptions to this policy must be approved by the City Manager. D. Itemized Receipts and appropriate documentation will be required regardless of payment method as provided within this policy. E. At times, travelers may have expenses incurred as an officer, board member or presenter for a professional organization. The City will pay allowable expenses. However, an effort to have the requesting organization reimburse a portion or all of the expenses incurred is encouraged. The City must be reimbursed directly by the Third-Party Organization. 1. When a Third-Party Organization has offered to reimburse expenses, the Expenses to be Paid by a Third- Party Organization form must be completed prior to Travel. F. Expenses of accompanying spouses, dependents or others are the responsibility of the authorized traveler and are not reimbursable. See also Section X, Non-Reimbursable Expenses. G. Travel reservations should be made as far in advance as possible to obtain the most reasonable prices. travelers should justify the mode of Travel on the basis of the most economical use of time, the cost of the various Travel options and the requirements of the trip. H. Travel that does not require an Advance must be approved within five (5) business days from the Travel start date. 1. All Travel must have prior approval by an Approver. I. If the traveler does not have a P-Card, a Travel Card will be issued for M&IE and ground transportation. See Section XII, Travel Card. 1. The Advance issued on the Travel Card will be determined by the TPA. The first and last day of Travel Meals and Incidental Expenses (M&IE) are calculated at 75% of the daily per diem rate set by the US General Services Administration (GSA). 2 2. Travel Card requests must be submitted to Finance within ten (10) business days from the Travel start date. J. Vacations or personal trips in conjunction with Travel require prior authorization, and the expenses incurred in connection with such, which are not related to City Business, are not reimbursable. K. Failure to meet the requirements of this policy may be considered unsatisfactory work performance and is subject to disciplinary action as outlined in the City of Southlake Employee Handbook. Other applicable administrative practices and policies, including the reporting of injuries, accidents or illness, are in force during Travel. While on Travel, if clarification of, and/or assistance with, existing policies and procedures is needed, the traveler should contact their Supervisor. L. Travel outside the continental United States requires prior approval by the City Manager. VI. REIMBURSEMENT REQUIREMENTS A. All Travel Claims for reimbursement must be documented on the Travel Expense Report. The Travel Expense Report and supporting documentation must be completed and submitted to Finance within five (5) business days from the Travel return date. B. Itemized Receipts for M&IE are required for each traveler's related expenses. See GSA per diem rate for the daily maximum allowable M&IE. C. Meal reimbursements will be paid in accordance with the specific meal allowance found under Section IX, Meals and Incidental Travel Expenses (M&IE)of this policy. D. Travel Advance and/or reimbursement requests may be denied if there are any Outstanding Travel Claims against the traveler. E. Travel Expenses reimbursable by any Third-Party Organization must be included on the Travel Expense Report. Until the Travel expenditure refund is received, all expenditures will be recorded within the requesting department's operating budget. F. The City will not reimburse any claim for Travel or related expenses without prior Travel authorization. VII. TRANSPORTATION The mode of transportation authorized should provide the most practical, cost-effective and economical use of time, based upon the requirements of Travel. Itemized Receipts for related transportation expenses are required with the Travel Expense Report. A. City Vehicle 1. The City provides vehicles that are available for City-related Travel. The use of a City vehicle is encouraged, if available. 2. Gasoline, parking, tolls and emergency repairs to City vehicles are allowable expenses by the City. When possible, gasoline and service should be obtained from City facilities. 3. Non-City employees are not permitted in City vehicles unless on official City Business or prior approval. 3 B. Privately-Owned Vehicle (POV) 1. If a traveler elects to Travel by POV rather than other means,the total transportation expenses reimbursed, including meals and lodging, may not exceed the cost of the most economical Travel mode available. a. Documentation is required to support the cost of the most economical mode of transportation. 2. If the traveler receives a car allowance and chooses to use a POV, mileage reimbursement is not permitted. 3. Reimbursement of POV expenses (in accordance with item B-1 above) are at the standard mileage rate, as set forth by the Internal Revenue Service, for miles traveled on official City Business, plus parking and toll fees when documented, in accordance with this policy. a. Travelers will not be reimbursed for automotive repair or breakdowns when using a POV. b. If a POV is used, only one (1) authorized traveler, per POV, may claim reimbursement for mileage. 4. When City-related Travel is from home directly to the destination without going to the workplace, and the traveler does not receive a car allowance,the traveler will be reimbursed for the distance from the workplace to the destination. 5. In cases where reimbursement for mileage is requested only, a Mileage-Only Expense Report is required. Driving directions using the most direct route that shows the distance in miles to and from the destination are required to be submitted. 6. The City's Travel Policy does not apply to one's normal commute. 7. Fees for storing or parking a POV will be reimbursed with a receipt. C. Rental Vehicles 1. The use of a rental vehicle is generally not permitted unless it is approved in advance and justified as a reasonable need. The rental vehicle chosen must be the most reasonable available, given the purpose for which the vehicle will be used. While on Travel together, travelers should share vehicles to minimize costs. a. Car rental arrangements must be made through a PL using a P-Card. When making Travel arrangements, the PL may utilize the State Travel contract or most economical manner. 2. The City will not provide additional pay for the use of a rental car to accommodate family members or non-business associates while on Travel with the authorized traveler. 3. The acceptance of optional insurance for collision and comprehensive coverage by a traveler is not an allowable expense. The TML insurance provided by the City includes rental cars; Certificates of Coverage can be obtained from Finance prior to Travel. D. Public Transportation 1. The use of taxicabs, shuttle services, buses and public conveyance are encouraged. Tips are reimbursable when receipts are provided. 4 2. Other allowable transportation expenses include:ferry, road, tunnel and bridge tolls and parking charges. Receipts are required for reimbursement. 3. Reasonable effort must be made to obtain the most economical transportation to and from the airport. E. Air Travel 1. Air Travel arrangements must be made through a PL using a P-Card. When making Travel arrangements, the PL may utilize the State Travel contract or most economical manner. 2. If a traveler misses their flight due to unrelated City Business, any expenses incurred will be at the traveler's expense. 3. The City will allow for the cost of one (1) piece of luggage, with a receipt, if the airline charges to check luggage. a. The traveler is responsible for any additional fees charged by the airline if the bag exceeds weight or size limits. 4. The most economical available seat at the time of purchase must be chosen. Personal comfort, preference or convenience will be at the traveler's expense. 5. Travelers may not pay for another traveler's expenses during Travel, including baggage fees and the like. VIII. LODGING A. Lodging expenses are allowed when Travel exceeds one day and the destination is more than 75 miles (one- way)from the City. Itemized Receipts are required. 1. Lodging reservations must be made through a PL using a P-Card. When making Travel arrangements, the PL may utilize the State Travel contract or most economical manner. 2. Lodging expenses include the cost of lodging and any applicable taxes and fees. B. Separate rooms are permitted for each authorized traveler. C. If reserved accommodations are no longer needed, it is the responsibility of the traveler to ensure the room is canceled in accordance with the cancelation policy of the lodging entity. 1. If reserved accommodations are canceled by the traveler due to personal comfort, preference or convenience, the traveler is responsible for any expenses incurred if accommodations are not canceled in accordance with the cancelation policy of the lodging entity. D. Allowances for lodging expenses are not authorized for non-commercial lodging facilities, such as a relative or friend. IX. MEALS AND INCIDENTAL TRAVEL EXPENSES (M&IE) The daily maximum allowable M&IE includes the cost of meals and incidental expenses calculated using the rates set by the GSA. Travelers may receive an Advance for M&IE during authorized Travel. The zip code of the Travel destination will be used to determine the daily maximum allowable M&IE rate. 5 The first and last day of Travel M&IE are calculated at 75% of the daily per diem rate set by the GSA. Itemized Receipts are required. A. Meals 1. For full-day Travel, meals are limited to the daily maximum allowable meal expenses rate set by the GSA. a. One (1) meal is permitted for One-Day Travel status with no overnight stay. b. Alcoholic beverages are not allowable expenses. 2. For longer than One-Day Travel, expenses will not be allowed for meals purchased less than 75 miles from the City. 3. A registration fee that includes a meal(s) is not subject to the meal allowance. 4. Unless the conference agenda includes an entertainment event, meals purchased at entertainment venues are not reimbursable. 5. While on Travel, a traveler may not pay for another traveler's meal—including authorized travelers or spouses. When possible, only meal expenses for the traveler should be included on the itemized receipt. 6. Groceries require prior approval and are limited to remote locations, as approved by the Chief Financial Officer. B. Incidental Expenses 1. For full-day Travel, incidental expenses are limited to the daily maximum allowable IE Rate set by the GSA. 2. Gratuities and tips for services for which a tip is customary, including, but not limited to taxis, shuttles and baggage handlers are reimbursable with a receipt. 3. Incidental expenses include, but are not limited to: non-meal tips, gratuities and hotel baggage checking/handling. X. NON-ALLOWABLE EXPENSES A. Expenses including, but not limited to the following, will not be allowed: 1. Alcoholic beverages 2. Personal toiletry articles, medicines or other personal convenience items (hotel minibar or other) 3. Airline or trip insurance, passports or money orders 4. Loss of funds or loss/damage to personal belongings 5. Childcare, eldercare, babysitting or pet care costs 6. Barber or salon services 6 7. Gum, candy, cigarettes or other tobacco products 8. Penalties (airline or other) 9. Personal entertainment not related to the conference such as movies, cable fees, health clubs or golfing 10. Parking or moving violation fines, bail or legal fees 11. Donations 12. Medical expenses (Human Resources will need to be contacted if a work related injury occurs while on Travel) 13. ATM or banking service fees XI. PROCUREMENT CARD A. If the traveler has been issued a P-Card, it must be used for all expenses while on Travel. Use of the P-Card must comply with both the Purchasing Policy and the Travel Policy. The P-Card may be used for official purchases including lodging, transportation or other justifiable City-related Travel Expenses. B. Any expenses over the daily maximum M&IE allowance must be reimbursed by the traveler within five (5) business days from the Travel return date. The P-Card must not be used for items such as non-reimbursable expenses or personal items. See Section X, Non-Reimbursable Expenses and the Purchasing Policy. C. As a governmental entity, the City of Southlake is sales tax exempt. However, hotel and meal taxes during Travel are allowed. XII. TRAVEL CARD A. If the traveler does not have a P-Card, a Travel Card will be issued for M&IE and ground transportation. 1. The Advance issued on the Travel Card will be determined by the TPA form. The first and last day of Travel M&IE are calculated at 75%of the daily per diem rate set by the GSA. 2. Travel Card requests must be submitted to Finance within ten (10) business days from the Travel start date. a. For Travel less than a 48 hour notice, please contact Finance for Travel arrangement options. B. Travel Cards may not be requested, nor will they be provided for non-Travel purposes. C. Employees with a City P-Card may not request a Travel Card. D. A Travel Card request may be denied for reasons including, but not limited to, Outstanding Travel Claims, excessive amounts requested, insufficient processing time or incomplete request forms. Travelers with an Outstanding Travel Claim will not be permitted additional Advances. E. Travel Cards must be returned to the City if the trip is canceled or shortened for any reason within five (5) business days of the cancelation or trip shortening. Purchasing must also be notified. F. Itemized Receipts for allowable Travel Card expenses must be submitted. 7 G. Travel Cards or any amount due to the City must be paid within five (5) business days from the Travel return date. XIII. OTHER ALLOWABLE EXPENSES A. When reasonable and necessary expenses are incurred by a prospective employee, approved expenses by the City Manager will be reimbursed in accordance with the City's Travel Policy. B. Unless contract requirements state otherwise, consultants and other vendors with the City may only charge the City for business-related Travel Expenses incurred in accordance with the City's Travel Policy. XIV. REIMBURSEMENT OF PAYMENT FROM TRAVELERS All unauthorized, improper, duplicate or mistakenly paid P-Card or Travel Card charges must be immediately reimbursed by the traveler to the City. Failure to do so may result in disciplinary action, as outlined in the City of Southlake Employee Handbook, if still unpaid past fourteen (14) business days of being notified of the need to reimburse. XV. POLICY ACKNOWLEDGEMENT It is the traveler's responsibility to read and comply with the provisions of the Travel Policy. The traveler has the right to ask questions about the policy; any questions should be directed to Finance. Violations of the policy may result in disciplinary action up to and including dismissal for City employees, and as to all travelers, curtailment of travel Advances and reimbursements. Supersedes: Personnel Policies, Compensation, Travel Policy, 12/3/1996 City Council Expense Policy 8 DEFINED TERMS Advance: Funds provided to a traveler prior to Travel. Authorized Approver: An individual designated by City Council elected officials, the City Manager, Department Director or designee with the authority to approve Travel related expenses. Budgetary Requirements: Funds that are set aside specifically for Travel purposes. City Business: Purpose of Travel is directly related to one's job. Fiduciary Responsibility: The responsibility of every City representative to safeguard the public trust and the use of taxpayer dollars. Groceries: Food items purchased for multiple meals or multiple days. Incidental Expenses(IE) Rate: Daily rate set by the US General Services Administration (GSA). It is a breakdown of the Meals and Incidental Expenses Rate (M&IE rate), and provides the cost of allowable incidental expenses for a specific area. The expenses are for gratuities and tips for services (i.e.taxis, shuttles, baggage handlers, etc.). Itemized Receipt: Receipts must include business name, date, items purchased, price of each item and total. Meals and Incidental Expenses(M&IE): Includes the allowable cost of meals and incidental expenses based upon the rate set by the US General Services Administration (GSA). Mileage-Only: Reimbursement for various errands related to City Business for those travelers without a car allowance. One-Day Travel: A Travel status given if Travel does not include an overnight stay, but requires more than four(4) hours away from the workplace. Traveler will be leaving from home and returning home the same day. Outstanding Travel Claim: Traveler owes the City funds from a previous trip and that is still unpaid more than fourteen (14) business days of being notified of the need to reimburse. Privately-Owned Vehicle: Vehicle not owned or leased by the City. Procurement Card (P-Card): City-issued bankcard used as a payment tool authorized by City staff for official City Business. The use of the P-Card is a substitute for a purchase order,which is a promise to pay, using City funds. All purchases must comply with the Purchasing Policy and Travel Policy. Purchasing Liaison: A purchasing and Travel expert selected by each department to receive regular training regarding any changes or updates to the Purchasing Policy,Travel Policy and related SOPS. The liaison will have access to book Travel using the State Travel contract and will have the resources to obtain the most economical form of Travel for their department. Third-Party Organization: A professional organization the City representative is affiliated with, other than the City. Travel: Includes expenses for conferences, conventions, workshops, seminars, educational and training courses, forums, and other business activities related to the administration of municipal government that includes One-Day Travel or an overnight trip. Travel Card: A temporary purchasing card only used for approved Travel-related purchases, for those individuals that have not been issued a Procurement Card (P-Card). Travel Claim: An approved Travel Plan and Authorization (TPA), where the traveler has incurred expenses. Travel Expense: Ordinary and necessary expenses for Traveling away from home on City Business. Travel Expense Report: Form in which all eligible Travel Expenses are documented. Travel Plan and Authorization (TPA): A request to Travel. Traveler and Purchasing Liaison have planned their Travel Expenses in advance;those Travel Expenses will be authorized based on budgeted funds. US General Services Administration (GSA): Government Agency that sets the Meals & Incidental Expense (M&IE) rates for US Federal Government agencies.