General Travel and Business Expense Information
This information outlines the
guidelines regarding general travel and business expense
reimbursement and answers the most frequently asked questions. It
is intended to provide general information and procedures for
official Minnesota State University Moorhead business with regard
to State of Minnesota rules. If you have questions, please contact
the travel desk in the Business Office at 477-2782. Refer to MnSCU Travel
Management Policies and MnSCU Travel
Management Procedures for additional information.
The employee is responsible for
complying with Minnesota State Colleges and Universities travel
policy and procedures, the employee's respective bargaining
agreement or compensation plan, state laws, federal laws, and IRS
guidelines and for accurately completing all required forms for
reimbursement of authorized official travel and business
expenses.
How to
Complete Your Travel Authorization
MnSCU board policy 5.19.3 requires
all in-state travel and the incurrence of related expenses must
receive oral prior approval and all out-of-state/international
travel requires written prior approval by an employee who has
delegated authority to approve travel. Written authorizations are
retained locally for audit purposes. It is a good business practice
to complete the Travel Authorization form for all travel; however,
the Business Office does not require written approval for in-state
travel. It is up to each supervisor to determine whether they will
request a completed Travel Authorization form for in-state
travel.
The Travel Authorization form is formatted to be filled out
electronically. The form must be printed and submitted to your
supervisor prior to departure date in order to be routed for
approval signatures before travel commences. Out-of-state travel
authorizations require signature of chair for acknowledgement and
approval signatures of supervisor and dean or appropriate vice
president. Out-of-state travel authorizations from employees in
units that report directly to the president, not through a vice
president, require the supervisor and president's signature.
International travel authorizations require signature of chair for
acknowledgement and approval signatures of supervisor, dean, vice
president and president.
After appropriate signatures are
obtained, the Travel Authorization form will be returned to the
requester. The requester will attach a copy of the Travel
Authorization form to all documentation submitted for payment or
reimbursement including purchase orders, purchasing card settlement
and employee expense records. Travel expenses will not be
reimbursed without written approval prior to travel for all
out-of-state and international travel.
How to Complete Your Employee Expense Report
Travel and business expense
reimbursement is requested on the Employee Expense Report form. The Employee Expense report
should be submitted to the Business Office only if there are
expenses that need to be reimbursed to the employee.
Submit the approved original
Employee Expense Report along with a copy of the approved Travel
Authorization form to the Business Office for payment. Please
include all information including time of departure/arrival and
total amount to be reimbursed to the employee.
- Original itemized receipts are required for all expenses except
mileage, meals, and parking meters.
- Canceled checks, photocopied receipts, non-itemized credit card
receipts, and credit card statements are not acceptable
receipts.
(See Receipt Policy)
Reimbursements/Advances are included
in the employee's paycheck. Because reimbursement/advances follow
the payroll cycle, please allow at least 3 weeks for processing. An
employee may not assume the expenses of another employee on his/her
expense report. Each employee will be reimbursed only for his/her
expenses.
In order for reimbursement to be
exempt from federal, state, FICA and Medicare tax, the Internal
Revenue Service (IRS) requires employee travel and business
expenses to be submitted for reimbursement within 60 days after the
expense is incurred. If not submitted within 60 days, the
reimbursement becomes taxable and withholding tax must be
taken.
At the close of the fiscal year all
travel and business expense reports must be received in the
Business Office according to established due dates (normally 1st
week of July). If not submitted by the deadline, they will be
charged to the next fiscal year.
Airfare/Commercial Carrier/Rental Vehicle
- Lowest Fare. Inquiries on fares and reservations should be made
early enough to take advantage of advance purchase discounts.
- Travel Insurance. Travel insurance coverage purchased by
employees is not a reimbursable expense.
- Upgrades. Upgrades at the expense of the system are not
permitted. Upgrades are allowed at the traveler's personal expense. Upgrades include seat selection for a fee and trip flex. Free service upgrades for all domestic air travel are permissible
with the lowest available rates. Travelers shall not use their
positions to seek or accept an unwarranted privilege of substantial
value which is not regularly available to similarly situated
individuals.
- Travel Discounts. A number of commercial air carriers provide
cash payments, discount coupons and free tickets either as
compensation to passengers who have been delayed or as rewards for
frequent trips with a specific airline. Compensation from sources
of this kind is the property of the state; accordingly, employees
traveling at state expense must remit these benefits to the
state.
- Checked Baggage Fee. A traveler will be reimbursed for
reasonable checked baggage fees to and from the traveler's flight
destination. Reimbursement is limited to one bag unless written
approval for additional baggage is submitted with Employee Expense Report.
- Excess Baggage Fee. An excess baggage fee is a fee for baggage
deemed by the airline to be overweight or oversized. A traveler
will be reimbursed for excess baggage charges only to the extent
the traveler is required to have on hand equipment, books, reports,
etc., which exceed the normal weight limitations. Written approval
must be submitted with expense report.
- Lost Baggage. Personal items lost while traveling on authorized
business are not a reimbursable expense.
Under Minnesota
Statutes M.S. 16A.58, original receipts must accompany claims
for reimbursement. Canceled checks, photocopied receipts,
non-itemized credit card receipts and credit card statements are
not acceptable receipts.
May I claim reimbursement
for a rental car when used as local transportation after reaching
my destination?
Yes, but a "justification statement" must be on your Travel Authorization. You must demonstrate that local transportation is not practical or is expected to be more expensive. If local transportation was more expensive, please include all rental costs in the comparison. This includes rental rate, gas, tax, insurance and parking (if applicable).
MnSCU Board
Procedure 5.19.3 Subpart E, states rental of a vehicle by
employees or any other individuals authorized to travel including
students is authorized only when the type of trip or location of
meetings is such that use of local transportation (taxis, airport
limousines and airport shuttles, buses) is not practical or is
expected to be more expensive.
If a rental car is necessary,
employees must rent from the state's contract rental car vendor (as
of 10/08, Enterprise Rent-A-Car Company.) The State has entered
into nation-wide contracts with Enterprise that have full insurance
coverage built in. Therefore, additional insurance should not be
purchased when renting through Enterprise. The cost of any
additional coverage will not be reimbursed.
If a rental car is necessary, and
Enterprise Rent-A-Car Company is not available, use of another
vendor requires that the employee purchase the liability and
physical damage coverage offered by the rental company. Employees
will only be reimbursed for the cost of the liability and physical
damage coverage. The purchase of any other optional coverage will
not be reimbursed.
For international travel, employees
and any other individuals authorized to travel including students
should accept all insurance coverage when renting vehicles in a
foreign country. Insurance coverage purchased in foreign countries
is reimbursable.
Corporate Account for Car
Rental through Enterprise Rent-A-Car
- Rentals originating in Minnesota (for business travel in
Minnesota, Wisconsin, Iowa, Illinois, North Dakota and South
Dakota):
- Local Moorhead office: 218-422-3001
- State
of Minnesota Account #Y50460
- Account Name State of Minnesota
- The PIN number is the first three letters (MIN)
- Rentals for Out of State ( for business travel other than
states listed above):
- Enterprise Rental Rates
Airline Frequent Flier Policy
Minnesota
Statute 15.435, Airline Travel Credit requires any credits
or other benefits issued by an airline to a public employee or any
other individuals authorized to travel including students who use
public funds to pay for airline travel to accrue to the benefit of
the public body providing the funding. Employees or any other
individuals authorized to travel including students who frequently
fly and have airline frequent flyer programs for their personal
travel shall obtain a separate airline frequent flyer program
number to record and report receipt of credits or other benefits
when using state funds.
Business Expenses
Purchases made by an employee on
behalf of the University can be eligible for reimbursement if
approved in advance by the responsible person on the account which
the reimbursement will come from. Purchases need to follow MnSCU
policy and procedures, the employee's respective bargaining
agreement or compensation plan, state laws, federal laws, and IRS
guidelines. Expense reimbursement must be submitted on a completed
Employee Expense Report.
International Travel
International travel means travel to
all destinations outside the United States or its territories.
All international travel must be
approved by the President prior to traveling. Please complete the
Travel Authorization form and the International Travel Risks and Responsibilities with the
appropriate signatures and forward to the President's office for
approval.
No system-related travel may be made
to countries or areas under a U.S. Department of State travel
warning unless prior approval has been obtained in writing from the
chancellor or designee. Such prior approval will be granted only in
limited circumstances. Travel warning means a travel warning,
alert, or equivalent determination by the United States Secretary
of State.
See travel warning information at
http://travel.state.gov/travel/cis_pa_tw/cis_pa_tw_1168.html
Are receipts required for
reimbursement of International travel expenses?
Receipts are required for the same expenses as domestic travel.
Claims should be converted to U.S. Dollars at the exchange rate in
effect at the time the travel occurred. For assistance in currency
conversion you may use the website http://www.oanda.com/currency/converter/ .
Lodging
What are the maximum lodging
allowances?
There is no rate schedule, but reimbursement is limited to the
single room rate. Employees are asked to use their discretion in
selecting reasonably priced accommodations. Inquire about
government rates when making reservations.
Are receipts required to
claim lodging reimbursement?
The original itemized lodging receipt showing room rate/tax/amount
paid in full is required. If registration or lodging receipts are
lost, it will be necessary to obtain another itemized receipt from
the hotel or motel for lodging expenses. Canceled checks,
photocopied receipts, non-itemized credit card receipts and credit
card statements are not acceptable receipts. (See Receipt Policy)
What if two employees share
accommodations?
The University recommends the use of a MSUM issued Purchasing Card to pay for lodging. If this is not available, one Employee may pay for the lodging and complete an Employee Expense Report with a note indicating the name of other state employee. Another option is to have the lodging facility split the room charge with each employee paying half and submit the Employee Expense Report. Always notate the name of the other state employee on the Employee Expense Report or Purchasing Card statement.
What amount of lodging
reimbursement will I be allowed to claim if my spouse accompanies
me on an overnight trip?
The State of Minnesota allows reimbursement at the single rate.
The employee should have the establishment certify the single rate
on the receipt. Notate on the receipt that the other individual is not a state employee.
Will I be reimbursed if I
spend the night with friends or relatives?
No, the State of Minnesota does not allow
reimbursement when lodging with friends or relatives. Lodging must
be at a licensed lodging establishment in order to receive
reimbursement.
Meals
What are the maximum meal
allowances?
Employees are to claim actual expenses for
meals plus reasonable gratuities and cannot exceed the maximum rate
set by collective bargaining units. These rates may change each
time the contracts are re-negotiated. See
Bargaining Units Reimbursement Allowances.
When am I eligible for meal
reimbursement?
Meal reimbursement is allowed when the employee is in travel
status 35 or more miles from his/her workstation.
- The breakfast meal is reimbursed when the trip begins before
6:00 a.m.
- The lunch meal is reimbursed when the employee is in travel
status through the normal lunch period. A noon lunch may be claimed
if a staff member is on travel status, even though the employee
isn't claiming lodging, when the distance from his/her work station
to the field assignment is 35 or more road miles and extends
through the normal lunch period. Such reimbursements, however, will
be considered "meals without lodging" and be subject to income
taxes.
- The dinner meal is reimbursed when the trip ends after 7:00
p.m.
- Times of departure and return must be indicated on the Employee
Expense Report for all meal reimbursement requests.
- "Meal bunching" is allowed. Employees who meet the eligibility
requirements for two (2) or more consecutive meals shall be
reimbursed for the actual costs of the meals up to the combined
maximum reimbursement for the eligible meals. For example, if the
breakfast maximum allowed is $7.00 and lunch maximum is $9.00 you
may claim reimbursement for the actual amount spent up to
$16.00. If you spend $5.00 on breakfast and $10.00 on lunch, you
may claim $15.00 as that is the amount you spent with a maximum
allowed of $16.00.
If the meal expense is covered in
the cost of commercial transportation, registration fees, etc., the
employee is not entitled to additional reimbursement except for
documented special dietary concerns.
Miscellaneous Expenses
Which miscellaneous expenses
are reimbursed?
Reimbursable expenses include, but are not limited to: taxi,
parking fees, ferry and bridge tolls.
May I claim reimbursement
for memberships/subscriptions?
The preferred method to initiate payment for memberships and
subscriptions is with a purchase order or state purchasing
card.
Do I need receipts to claim
a miscellaneous expense on my travel claim?
Attach receipts for all expenses except meals and parking
meters.
What miscellaneous expenses
are not reimbursed?
- Expenses of traveling companions or family members;
- Expenses related to vacation or personal days while on a
trip;
- Loss or theft of personal cash or property;
- Entertainment or recreation costs, including movies;
- "No-show" charges;
- Optional travel or baggage insurance;
- Traffic or parking tickets;
- Incorrect or incomplete expense reports.
Will MSU Moorhead reimburse
me for telephone calls to my home while I'm away on official
business?
Actual documented personal phone calls will be reimbursed in the
following manner: Maximum reimbursement for each trip shall be the
result of multiplying number of nights away from home by $3.00.
Receipt
Policy
Original itemized
receipts are required for all expenses except
meals, baggage handling, and parking meters or as required in
collective bargaining agreements or compensation plans. Canceled
checks, photocopied receipts, non-itemized credit card receipts and
credit card statements do not substitute for original receipts.
Definition:
The first detailed source document issued to the employee that is
marked, by the vendor, indicating that the bill or invoice was
paid. It is not a copy or reproduction and
must include:
- The name and address of the vendor
- Date(s)
- Detailed list of items
- Total amount
- Date paid
- Vendor signature (A vendor signature is required when
an employee purchases an item, but there is no documentation of
payment received.)
For example, a hotel receipt must
include:
- Name of hotel guest (Employee)
- Name and location of the hotel
- Dates the employee was lodged
- Detailed description, and amount, of each item charged, such as
lodging, tax, and telephone
- Total amount and date paid by the employee
If a vendor issues an original
receipt from a receipt book, the receipt must include the name and
address of the vendor, date(s), itemized description of the service
or goods, total amount paid by the employee, and signature(s). A
vendor can choose to give the employee a separate invoice, which
includes the vendor name and address and an itemized description of
the service and cost, to use with the original book receipt that
includes the vendor name, short description, total amount paid, and
signature(s).
Routing of
Forms
Travel Authorization Form:
Employee > Immediate Supervisor,
Department Chairperson, Director, or Special Accounts Coordinator
(PDF, PIF, Grants), > Dean or Vice President > President (for
international travel) > Employee.
Employee Expense Report (submit report with Travel Authorization form for out-of-state or international travel):
Employee > Immediate Supervisor
or Department Chairperson > Vice President, Dean or Director
> Business Office attn: Carol Lindquist.
Special
Expenses
MnSCU Policy
& Procedure for Special Expenses 5.20.1 states Special
expenses are extraordinary expenses incurred in connection with
work-related responsibilities or official functions not generally
supported with public funds of the Minnesota State Colleges and
Universities or assigned duties of system employees, which are not
reimbursable through the regular expense regulations. Provisions
for special expenses are also found in applicable collective
bargaining agreements or compensation plans.
Special expenses include, but are
not limited to:
- Meals exceeding the maximum allowance.
- Meals within 35 miles of the workstation.
- Conference fees in excess of $1,000.00.
- Tuition in excess of $1,000.00
- Lodging within 35 miles of the workstation.
- Gift purchases of $25.00 or more.
- Gift Cards (allowed in limited circumstances).
Employees requesting reimbursement
of special expenses must request approval in advance on a Special Expense form. The completed form should be submitted to
the University Comptroller in the Business Office. Once approved,
the form will be returned to the employee. The employee is
responsible for submitting the approved Special Expense form with
any documentation. Original itemized receipts are required for all
special expenses and must be submitted with the Employee Expense
Report.
Taxable
Expenses
The Internal Revenue Service (IRS)
requires employee travel and business expenses to be submitted for
reimbursement within 60 days after the expense is incurred or the
trip ends. If a request for reimbursement is not submitted within
60 days, the reimbursement becomes taxable income to the employee.
Consequently, federal, state, FICA and Medicare withholding taxes
must be taken from the reimbursement and submitted to the IRS. The
withholding taxes can add up to nearly 40% of your total
reimbursement request. (See IRS Publication 15, Wages and Other
Compensation).
Please keep this in mind when
traveling or incurring business expenses. It is always best to
submit your employee expense reports as soon as your business trip
is completed. Additionally, if an employee does not plan to return
to Moorhead after their trip is completed, they should submit their
expense reports in the mail so that they can show compliance with
the 60 day submission requirement.
Note: Certain expenses are taxable even if submitted within the 60
day timeframe. Examples of taxable expenses are meals without
lodging (i.e. one day trips) and home internet service (IFO
contract).
Travel
Advances
May I request a travel
advance?
If your anticipated out-of-pocket reimbursable expenses exceed
$50.00, you may request a short-term travel advance. The amount of
the advance must not include lodging, airfare, or other expenses
that will be billed directly to the University or charged on a
University purchasing card.
How can I obtain a travel
advance?
Employees seeking an advance will need to submit an approved
Travel Authorization form along with an Employee Expense Report to the Business Office a minimum
of 3 weeks prior to the start of the travel. Check the box on the
form "Advance" and fill the form out with the estimated amounts
needed for all of the expenses. The advance will be obtained
through the employee bi-weekly paycheck. Only one outstanding
advance is allowed at a time.
How do I figure how much
money I can receive as an advance for a trip?
Travel advances cannot exceed anticipated actual lodging, meals,
and commercial transportation costs paid by the employee.
What is the procedure for
re-payment of a travel advance?
After the trip is completed, an Employee Expense Report form with original receipts
attached must be completed within 5 days and submitted to the
Business Office for settlement. If advances are not settled within
28 days, the state will initiate a deduction from the individual's
paycheck for the total amount of the advance (please note the Employee Expense Report signature line).
What if the trip is canceled
for which the advance was issued?
If a trip is canceled, the employee must notify the supervisor and
the business office travel desk (477-2782) immediately. The travel
clerk will initiate deduction procedure from the employee's next
paycheck.
Travel Expense Reimbursement by
Outside Source
MnSCU Board
Procedure 1C.0.1 Subpart B: An employee may not accept
travel or meals or reimbursement related to the employee's work
assignment with the college, university or office of the chancellor
from a source other than the state, unless it is:
- Approved in advance in writing by the president or
chancellor;
- For no more than actual expenses incurred; and
- Not reimbursed by the state.
See also:
Minnesota Statutes section 43A.38, Code of Ethics for Employees
in the Executive Branch.
Vehicle
Expenses
Does MSU Moorhead have a
motor pool?
MSU Moorhead maintains a fleet of vehicles for use by employees
for work-related travel. State of Minnesota policies require
faculty, staff and students driving on state business submit a
vehicle use agreement which authorizes the University to obtain a
motor vehicle record report and determine your qualification to
drive a vehicle on University business. Faculty, staff and students
will be allowed to drive on state business only after this process
has been completed and they have received approval. A
request for authorization is only done once, unless
driving information changes, and it is renewed annually. Refer to
the
Policy on Drivers' License and Record Checks and the Vehicle Fleet Safety Program for additional information.
You can schedule a vehicle through Scheduling
Services.
What is the rate of
reimbursement for using my personal car on state business?
The state bargaining agreements and compensation
plans base mileage reimbursement rates on the standard IRS mileage
rate that's in place at the time of travel. If a state vehicle is
offered but the employee declines and travels in his or her own
vehicle, the reimbursement rate is 7¢ less than the current IRS
rate. In order to be reimbursed for the current IRS rate, you must
provide documentation from Motor Pool indicating a vehicle was not
available.
The current IRS mileage rates are
found at
http://www.finance.mnscu.edu/contracts-purchasing/contracts/reference/index.html.
Mileage shall be paid for the
shortest direct route according to official highway department
records.
If an employee leaves on a trip from
his/her residence, the allowable mileage shall be the lesser
of:
- Mileage from the residence to the destination, or
- Mileage from permanent work location (MSUM) to the
destination.
The state cannot insure the use of a
personal vehicle; therefore, the employee is responsible for
insurance costs, including any deductibles or subsequent loss of
use of the vehicle because of damage.
What are the requirements
for using my personal car for out-of-state travel?
MSU Moorhead may authorize out-of-state travel for
employees requesting travel who use their personal vehicles under
special circumstances. The reimbursement for transportation to and
from the trip destination (including any additional expenses that
result while en route such as mileage, additional meals, or
lodging) is limited to the lowest round trip airfare (based on the
number of days the employee would have attended if traveling by
air). If the lowest round-trip airfare can only be obtained by the
employee arriving early and/or staying an additional night(s), the
cost of the additional necessary hotel accommodations and/or meals
may be included in computing the amount of the lowest airfare for
the purpose of determining the expense reimbursement. An airfare
itinerary printed at the time the airfare would have been booked
indicating lowest round trip airfare must be listed and attached to
the Employee Expense Report. If additional hotel accommodations
and/or meals are included in computing the lowest airfare, these
additional costs must be itemized and attached to the Employee Expense Report.
May I claim reimbursement
for using a rental car?
Rental of a vehicle by traveler is authorized only when the type of trip or location of meeting is such that the use of local transportation (taxis, airport limousine, and airport shuttles, buses) is not practical or is expected to be more expensive. Rental vehicles shall be reserved and rented at the lowest applicable discounted rate possible or available.
A "justification statement" must be included on your Travel Authorization. You must demonstrate that local transportation (including motor pool) is not practical or is expected to be more expensive. If local transportation was more expensive, please include all rental costs in the comparison. This includes rental rate, gas, tax, insurance, and parking (if applicable). If the rental is for in-state travel, submit a travel authorization with the justification statement with your purchase documentation (ie: purchasing card statement, purchase order, employee expense report)
The use of compact or mid-size/intermediate rental vehicle categories is recommended except in cases where:
- There are three or more passengers;
- Excessive baggage for official business requires a large vehicle, e.g. booth displays, slide presentations, sales items; or
- A large size vehicle is provided at no extra charge above the compact or midsize rate.
If a rental car is necessary, employees must rent from the state's contract rental car vendor (Enterprise Rent-A-Car). The State has entered into nation-wide contracts with Enterprise that have full insurance coverage built in. Therefore, additional insurance should not be purchased when renting through Enterprise. The cost of any additional coverage will not be reimbursed.
If a rental car is necessary and Rent-A-Car Company is not available, use of another
vendor requires that the employee purchase the liability and
physical damage coverage offered by the rental company. Employees
will only be reimbursed for the cost of the liability and physical
damage coverage. The purchase of any other optional coverage will
not be reimbursed.
Corporate Account for Car
Rental through Enterprise Rent-A-Car
- Rentals originating in Minnesota (for business travel in
Minnesota, Wisconsin, Iowa, Illinois, North Dakota and South
Dakota):
- Local Moorhead office: 218-422-3001
- State
of Minnesota Account #Y504060
- Account Name State of Minnesota
- The PIN number is the first three letters (MIN)
- Rentals for Out of State (for business travel other than states
listed above):
- Enterprise Rental Rates
