UNIVERSITY OF CENTRAL MISSOURI

1. UNIVERSITY OF CENTRAL MISSOURI TRAVEL GUIDELINES TRAINING New UCM Guidelines Effective July 1, 2007 Travel Guidelines Training

2. Why Change Our Travel Guidelines? • Improve Convenience and Service to UCM Faculty and Staff. • Last update to the Travel Guidelines was June, 2000. • UCM Internal Audit Report to BOG (See Attachment A). • State Auditor’s Audit (See Attachment A). • Internal Revenue Service Audit. • Increase accountability of University financial resources. Travel Guidelines Training

3. Travel Task Force Mission • To enhance the University’s travel policy. • Develop recommendations and procedures for implementation of a Travel Card apart from the University’s Procurement Card. • Maintain Internal Controls and accountability of the travel program in order to comply with IRS and State guidelines. Travel Guidelines Training

4. UCMTravel Task ForceUniversity Travel Segments • Individual Faculty or Staff Travel. • Athletics and Academic Team Travel. • International Travel. • Entertainment (Business Hospitality) Travel Guidelines Training

5. UCMTRAVEL TASK FORCE MEMBERSSponsor - Dr. Betty Roberts • Teresa Fine Alewel Director of Career Services • Terry Bond Accounts Payable Manager • Larry Creel IS - Technical Project Manager • Jerry Hughes Athletic Director • Michael Lucas Director of Internal Audit • John Merrigan University Controller • Delilah Nichols Presidential Administrative Assistant • Jack Rogers Director of Forensics, Faculty Senate • Joy Stevenson Director of International Programs • Jenne Vanderbout Director – Alumni Relations • Joseph Vaughn Department Chair, Criminal Justice • William Ward Director of Procurement Travel Guidelines Training

6. Travel Task ForceUniversities Benchmarked • Cornell University (Ivy League) • Emporia State University (MIAA) • Northwest Missouri State University (MIAA) • Oregon University (Pac 10) • Penn State University (Big 10) • Pittsburg State University (MIAA) • Purdue University (Big 10) • Truman State University (MIAA) • University of Kansas (Big 12) • University of Missouri (Big 12) • University of Northern Iowa (Gateway) • University of Pennsylvania (Ivy League) Travel Guidelines Training

7. UCM Travel Task ForceTravel Components • Lodging • Meals • Transportation (Airfare, Car Rental etc.) • Mileage Reimbursement • Pre-Authorization • Cash Advances • Travel Card Travel Guidelines Training

8. UCM Travel Guidelines LODGING Travel Guidelines Training

9. UCM Travel GuidelinesLodging • Travel Task Force Considerations: • Safety of our employees. • Benchmark data research. • Federal GSA rates. • Auditor’s recommendation of “Capped” lodging amount per day. • IRS regulations requiring receipts for lodging expenditures. Travel Guidelines Training

10. UCM Travel GuidelinesLodging Prior UCM Travel Guidelines: • PriorUCM Travel Policy reimbursed lodging expenditures at the actual amount. • The policy further states that UCM employees should seek lodging rates that are reasonable; using the GSA guidelines as a definition of “reasonable” rates. • Itemized receipts must be submitted for lodging. IRS considers any reimbursement as taxable compensation if not supported with business receipts. New UCM Travel Guidelines: • UCM will retain the current policy of reimbursing lodging expenses at the actual amount. Policy recommends that employees ensure lodging rates are reasonable and use GSA rates as a guide. Per IRS guidelines, lodging receipts must be submitted to document overnight travel as a true business expense. Travel Guidelines Training

11. UCM Travel Guidelines MEALS Travel Guidelines Training

12. UCM Travel Guidelines • There are four types of meal reimbursments: • “Overnight Travel” Meals. • “Same Day Travel” Meals. • “International” Meals. • “Business Hospitality” Meals. • Five Considerations in Decision Making: • What’s best for our employees and University. • Benchmarking of other Universities. • IRS Regulations. • State Regulations. • Auditor’s Recommendations. Travel Guidelines Training

13. UCM Travel GuidelinesMeals for “Overnight Travel” Prior UCM Travel Guidelines: UCM reimburses meals at their actual cost with receipts required for meals greater than $25. New UCM Travel Guidelines • Reimbursement based on lower of actual costs or capped amount of $50 per day as follows except for the below mentioned “high cost” cities: Regular Cap High Cost Cities • Breakfast $10 $14 • Lunch 15 20 • Dinner 25 30 • Total Per Day $50 $64 • GSA identified “high cost” cities are Aspen CO, Boston, Chicago, Los Angeles, Minneapolis, New Haven, Newport RI, New York City, Philadelphia, San Diego, San Francisco, Seattle, Vail, CO, and Washington D.C. • No receipts will be required to be submitted for meals. • Exceptions to the above “capped” amounts for University sponsored events, meetings with donors etc will be granted as shown on slide 16. • International meals will be reimbursed at actual cost. Travel Guidelines Training

14. UCM Travel Guidelines “Same Day Travel” Prior UCM Travel Guidelines: Currently the UCM travel policy requires an employee to be out of town on University business for 12 hours prior to being eligible for reimbursement of a meal within the same day. New UCM Travel Guidelines: • If a UCM employee is out of town on University business for six hours or more, the employee is eligible to be reimbursed for one meal at the actual expense up to a capped amount of $15. Travel Guidelines Training

15. UCM Travel GuidelinesInternational Travel Prior UCM Travel Guidelines: Meals for international travel are reimbursed at their actual cost. New UCM Travel Guidelines: Meals for international travel are reimbursed at their actual cost. Since there are no limits on international meal expenses, receipts are required. Travel Guidelines Training

16. UCM Travel GuidelinesBusiness Hospitality Meals • Business Hospitality meals are reimbursed at actual cost. • Business Hospitality Meals are defined as: • Meals with university guests, consultants, or candidates, with university business being discussed. • Meals that are incurred as part of a seminar, conference, or required meeting that is presented by the University. • A restaurant or catering receipt with the following supporting documentation to prove the “business hospitality meal” is a true business expense is required before reimbursement can occur: * Date of the meal. * Name and location of the restaurant. * Meal Amount. * Business purpose of the meal. * # of people served. * Identities of guests. Travel Guidelines Training

17. UCM Travel Guidelines TRANSPORTATION Travel Guidelines Training

18. UCM Travel GuidelinesAir Transportation Prior UCM Travel Guidelines: UCM travel policy states for out-of-state travel, commercial airlines is the preferred mode of travel. Cost comparison between personal mileage and airline travel is to be performed and submitted with the employee’s travel voucher when personal car mileage is used in lieu of airline travel. New UCM Travel Guidelines: For out of state travel, commercial airlines is the preferred mode of travel if it is more economical for the University. However, no cost comparison needs to be submitted with the employee’s travel voucher. Travel Guidelines Training

19. UCM Travel GuidelinesMileage Reimbursement Prior UCM Travel Guidelines: State of Missouri rate which currently is 45 ½ cents per mile (5 cents below IRS rate). New UCM Travel Guidelines: The Internal Revenue Service (IRS) rate is currently at 50 ½ cents per mile. Travel Guidelines Training

20. UCM Travel GuidelinesCar Rental Prior UCM Travel Guidelines: • Recommended employees use Enterprise Car Rental. New UCM Travel Guidelines: • Enterprise is the University’s preferred car rental agency and whenever practical should be used. When Enterprise car rental services are not available, employees may use a car rental agency other than Enterprise such as Avis, Budget, Hertz etc. • Gasoline purchases can be charged to the Travel Card. Travel Guidelines Training

21. UCM Travel GuidelinesTravel Pre-Authorization Prior UCM Travel Guidelines • No formal travel pre-authorization form was required to be submitted with a travel expense voucher; rather the policy suggested the employee obtain pre-authorization from cost center administrator. New UCM Travel Guidelines: • All overnighttravel will require a “UCM Travel Pre-Authorization” form to be completed by the employee and authorized by the employee’s supervisor prior to the trip being taken. • After the trip is completed, the “UCM Pre-Authorization” form must be submitted to Accounts Payable with the employee’s travel voucher, and receipts to receive reimbursement. Travel Guidelines Training

22. UCM Travel GuidelinesCash Advances Prior UCM Travel Guidelines: • Under special circumstances and within established restrictions, the University may make advances to individuals for certain travel expenses; primarily group/team travel. New UCM Travel Guidelines: • University travelers are encouraged to use their UCM Travel Card, however, Athletic and Academic teams will continue to have a need for cash advances in certain circumstances. See UCM Travel Guidelines posted on the Accounts Payable web-site for Cash Advance procedures. Travel Guidelines Training

23. UCM Travel GuidelinesAlcoholic Beverages • The purchase of alcoholic beverages is non-reimbursable by the University. Travel Guidelines Training

24. UCM Travel Guidelines TRAVEL CARD PROGRAM Travel Guidelines Training

25. UCM Travel GuidelinesTravel Cards Travel Task Force Considerations: • Research found 11 of 12 “Benchmarked” Universities have a Travel Card Program. • State, IRS, and Internal Audit Recommendations. Reduce $ limits and # of merchant codes on Procurement Cards. • Potential vendors include VISA, MasterCard, American Express, and Diners Club. • “Personal” Liability versus “University” Liability Travel Cards. Travel Guidelines Training

26. UCM Travel GuidelinesTravel Cards • The UCM Travel Card will be separate and distinct from the Procurement Card. • Travel Card expenditures will be charged directly to the University. (Not a personal liability card). • A UCM Travel Card will be issue to those employees that incur $1,000 or more travel annually. • Accounts Payable will pay the cumulative University Travel Card’s expenditures in one payment to the credit card vendor. • At the end of each month, employees who have a University Travel Card are required to submit a University Travel Card Voucher with the appropriate receipts to Accounts Payable (per University Travel Guidelines). • Only travel related merchant codes will be open on the Travel Card (i.e. airline, lodging, rental cars, restaurants, etc) Travel Guidelines Training

27. UCM Travel GuidelinesTravel / Procurement Cards • The University will continue to have the procurement card program, however, it will be for “non-travel” related expenditures. • There will be a “transition” period from July 1 thru September 30 whereby travel expenditures will be allowed on the procurement card to allow everyone time to obtain and be comfortable with the travel card. • The transaction limits on the procurement cards may need to be reduced from their current limits since travel will no longer be allowed to be charged to these cards. If you use your P-Card for travel only, please turn in your P-Card upon receipt of your Travel Card. • The procurement card program will be managed by Mike Smith, UCM Interim Procurement Director. Travel Guidelines Training

28. Purchasing Card Program • What are the major changes to the purchasing card system? • Will we be reissued new cards? • What about my current dollar spending threshold. • Who will we contact for purchasing card related support? Travel Guidelines Training

29. What are the major changes to the purchasing card system? • Terms and terminologies • Executive Officers • Department Heads • Department Liaisons • Cardholders • Transition to on line departmental updating in the Banner System. Travel Guidelines Training

30. Will we be reissued new cards and spending thresholds? • NO! Your cards will remain in tact and so will your spending limits unless adjusted by your Department Head. Travel Guidelines Training

31. Who will we contact for purchasing card related support? • On July 1, 2007 Procurement will be the point of contact for all purchasing card activities unless you are dealing with a direct Banner issue. • All application forms, purchasing card distribution/collection, limit approvals, training, and other purchasing card administrative support. Travel Guidelines Training

32. Cardholder & Departmental Penalties • Department Liaison reports infraction • Single abuse – Warning Letter • Second occurrence – Suspended card use minimum 3 billing cycles (90 days) • Third occurrence – card canceled one year. • Department Head may recommend permanent suspension if incident is severe. Travel Guidelines Training

33. Cardholder & Departmental Penalties • Purchasing Card Summary not forwarded by the 10th of the month twice in one Fiscal Year – Departmental Warning Letter • Repeated Cardholder or departmental abuse - Departmental Warning Letter • If severe enough may be turned over to the Internal Auditor for investigation. Travel Guidelines Training

34. UCM End of Presentation Travel Guidelines Training