Presented by: Angie Robertson, Manager, FMSAS Unit Friday, June 18, 2010 via web conference

1. Overview of Travel Requirements Presented by: Angie Robertson, Manager, FMSAS Unit Friday, June 18, 2010 via web conference Revised June 21, 2010

2. Agenda • Background • Authorization to Incur – Where it all starts. • Elements of Travel – What can be paid for. • Meals and Per Diem • Transportation • Lodging • Incidentals • Payment for Travel Expenses – How funds get disbursed. • Travel Advance • Reimbursement Requests • Direct Payment • Other Considerations • Recap • Questions

3. About the presentation… • Unless it is in regard to clarifying a point or statement, please hold your questions until the end. • Denotes answer to questions we’ve received in advance from boards. • This presentation and the Travel Manual Template are based on the statute and rules that govern travel, but do not contain all elements which may be applicable to your board. You are strongly encouraged to read Sections 112.061 & 445.007(10), F.S., and 69I-42, F.A.C. and become familiar with all requirements.

4. Background – Rules, Laws, Requirements • Effective July 1, 2010, Section 445.007(10), F.S. will become effective allowing preapproved, reasonable and necessary per diem and travel expense reimbursement in accordance with the standard travel reimbursement rates established in Section 112.061, F.S. and in compliance with all state and federal requirements. • Applicable Laws, Rules & Requirements: • Section 112.061, F.S. – Per diem and travel expenses of public officers, employees, and authorized persons – Enacted by the Legislature to govern the travel reimbursement process. • 69I-42, F.A.C. – Travel expenses – Rules developed by Department of Financial Services (DFS) to carry out the intent and requirements of Section 112.061, F.S. • OMB Circular A-122 (2 CFR Part 230), Paragraph 51 – Federal policy that describes the allowable items of cost related to travel for non-profit organizations. It has minimal information about allowed travel expenses, but relies heavily on an entity’s own travel policy and the uniform application of that policy to expenses allocated to the Federal programs.

5. Background – Section 112.061, F.S. Section 112.061, F.S. does the following: • Defines key terms/concepts such as: • Authorized person/traveler • Official Headquarters • Partial travel day • Different Travel Classes – A, B & C • Identifies where authority resides for approving travel • Describes allowable travel expenditures • Describes the allowable methods for paying for travel • Sets forth the rates for meal allowances, per diem and mileage reimbursement • Applies to consultants or advisers reimbursed by the board for travel expenses.

6. Background – Section 112.061, F.S. • Key Terms/Definitions: • Agency Head – The highest policymaking authority of the organization. This is the Board of Directors for RWBs. • Authorized Person/Traveler – Board employee, board member, or other persons traveling on board business who are authorized to incur travel expenses in performance of board duties. • Class A – Continuous travel of 24 hours or more away from headquarters (>24 Hours & Overnight) • Class B – Continuous travel of less than 24 hours, which involves overnight absence from headquarters (<24 Hours & Overnight) • Class C – Travel for short or day trips where the traveler is not away from headquarters overnight. (<24 hrs & Not Overnight)

7. Background – Section 112.061, F.S. • For the most part, Class A and Class B are used interchangeably and can be thought of as “overnight travel” * * Things to Remember About ‘Class C’ Travel Status * * • It’s the only status that does not include an overnight stay • Reimbursement for meals and per diem, while in this status, are not allowed. Section 112.061(15) expressly restricts the payment of these expense types. • Mileage is reimbursable for travelers in Class C status.

8. Background – 69I-42, F.A.C. • Developed and maintained by DFS, 69I-42, F.A.C. provides additional information, guidance and additional requirements for travel related activities. • The F.A.C. provides, among other things: • a more exhaustive list of allowable incidental expenses • clearer guidance for conference and convention travel • a framework for approving and paying travel advances • There are additional criteria within F.A.C. that may be applicable to your travel scenario. The Travel Manual Template incorporates many of those additional criteria but perhaps not all. Therefore, you’re encouraged to read the Rule and become familiar with its contents.

9. Background – Travel Manual Template • The Travel Manual Template was developed by AWI and WFI to be used as a tool to assist you in developing your board’s travel manual. • Things to notice about the document: • It includes excerpts from the Federal and State rules/laws and requirements related to travel expenses. • It shows the source for each bullet/number. Items that are statute or rule based are ‘hard and fast’. Latitude is given to the board on items identified as ‘best practice’. • The areas highlighted in blue are values/data which can be determined and defined by your board.

10. Authorization to Incur • What is required? • Documentation (form or other format) describing the purpose, costs, and benefit of the travel event. • Approval of that travel event in advance by the appropriate board authority • Section 112.061(3)(a) requires “all travel must be authorized and approved by the head of the agency, or his or her designated representative, from whose funds the traveler is paid.” • The policies of the RWB shall denote the appropriate delegation of authority from the Board of Directors for signing-off on travel.

11. Authorization to Incur • When is it needed? • When an authorized traveler is traveling overnight, away from their headquarters location. • When an authorized traveler is incurring a cost for vehicle use (mileage or rental car) for non-overnight travel. • What is “Headquarters”? • The city in which the employee’s office is located. • May be the employee’s home address, if they are a telecommuter and the board or its designee deems that location as such. • For board members, it’s the primary address for the board. • Any city/town in which the authorized traveler is stationed for over 30 continuous days.

12. Authorization to Incur • A template form is provided as an Attachment to the Template document; however, the board may use its own form/format. The form was developed by DFS for use by State agencies, but it should provide a sense of the information and data necessary and may be a useful tool for your board. • Where appropriate, one form may be completed for all travelers to the same destination, who would be using the same transportation and same lodging accommodations.

13. Authorization to Incur • What are the basic elements necessary to denote proper authorization? According to Section 112.061, F.S.: • Name of traveler • Purpose of travel • Estimated, itemized cost (hotel, car, mileage, meals, etc.) • Statement of benefits by virtue of the travel • Signature of the traveler and the traveler’s supervisor stating that the travel is incurred in connection with board business. • If it’s a conference, an agenda/program must also be included, listing the fees and what’s included in the registration.

14. Elements of Travel • The cost elements associated with travel are: • Meals and Per Diem (also known as Subsistence) • Transportation • Lodging • Incidentals • Travel-related expenditures can generally be fit into one of the above groupings. The Travel Manual Template includes sections for each.

15. Elements of Travel - Meals and Per Diem • Meal Allowance • Breakfast = $6.00 – When travel begins BEFORE 6am and extends BEYOND 8am • Lunch = $11.00 – When travel begins BEFORE 12 Noon and extends BEYOND 2pm • Dinner = $19.00 – When travel begins BEFORE 6pm and extends BEYOND 8pm • Per Diem Rate • $80 per day or $20 per Quarter Day (or portion there of) • The Quarter Days are: • 12:00am (Midnight) – 6am • 6:01am – 12:00pm (Noon) • 12:01pm – 6:00pm • 6:01pm – 11:59pm

16. Elements of Travel - Meals and Per Diem • When to use Meal Allowance vs. Per Diem? • Meals Used When: • Lodging reimbursement is requested • If Per Diem is not allowed • Per Diem Used When: • When lodging reimbursement is not requested • Generally, on the last day of travel or if lodging is provided gratuitously • You look at each day uniquely and evaluate the above criteria. • Per Diem is meant to cover your full cost for a given day, without having to itemize. If you have hotel charges, that will generally put your costs above $80 per day; therefore, requesting meal allowance and actual reimbursement of lodging is more advantageous for the traveler.

17. Elements of Travel- Meals and Per Diem Scenario: Traveler is going on a three day, two night trip to Tampa, departing from the traveler’s headquarters location in Tallahassee. Facts: • Travel is via airline, which departs at 8:45am on Tuesday • Traveler leaves home at 6:30am • Returning flight leaves at 5:45pm on Thursday and lands at 7:15pm • Traveler arrives home at 8:15pm • Traveler is staying in a hotel Meal Allowance/Per Diem Claimed: • Tuesday – Lunch & Dinner = $30 – Travel began after 6am • Wednesday – Breakfast, Lunch & Dinner = $36 • Thursday – Per Diem = $80 – Travel ended during final quarter

18. Elements of Travel – Meals and Per Diem • In the case where a meal is provided by a hotel or airline to all guests, the traveler will still be allowed to claim the meal allowance. • Effective 7/1/10, there are no meals, food, or beverage allowed to be purchased unless the traveler is in overnight travel status.

19. Elements of Travel - Meals and Per Diem • Meals, which are included in registration fees for conferences or meetings, shall be handled as follows: • If the authorized traveler is in overnight travel status (Class A or B), their reimbursement request (Voucher) must be offset by the amount of the allowance for the meal provided, even if the traveler decided for personal reasons not to eat the meal. For example, if lunch is provided, the Voucher must be reduced by $11. • If the authorized traveler is not in overnight travel status (Class C), the meal portion of the registration fee (if not complimentary) must be paid from private/non-federal or non-state funds, or not at all. The meal portion is: • The actual cost of the meal, if known or provided; or • The appropriate meal allowance rate, if actual cost is not determinable.

20. Elements of Travel - Transportation • The board or its designee shall designate the most economical method travel after considering the following criteria: • Nature of the business • Time of the traveler and the impact on productivity • Cost of transportation, including any per diem or subsistence required • Number of persons taking the trip and the amount of equipment or materials to be transported. • Transportation can include airline, bus, train, private carrier, rental car, or personal vehicle. • It is recommended that travelers to the same destination share travel arrangements or provide justification as to why shared travel is not feasible.

21. Elements of Travel - Transportation Travel Via Automobile: • When traveling via personal vehicle in-state, the “map mileage” according to the DOT official highway map is the distance to be used for reimbursement calculation for the miles from the origin city to the destination city. • If a city is not listed on the DOT map, use the actual mileage traveled. • A longer, but quicker route may be traveled, but reimbursement can only be based on the DOT map mileage, if the city is listed. • Out-of-state travel should use actual mileage.

22. Elements of Travel - Transportation • Actual expense costs are reimbursed for airline and rental car, but personal vehicles will be reimbursed at the mileage rate set in statute. That rate is currently 44.5 cents per mile. • Gas purchased for use in a rental car is reimbursable to the authorized traveler if not paid for directly by the board (i.e., via corporate card). • In personal vehicles, either mileage is reimbursable, or the actual cost of gas, operation, maintenance, and ownership.

23. Elements of Travel - Transportation • Statute allows the board or its designee to grant monthly mileage allowances in fixed amounts for use of a privately owned vehicle for business, in lieu of actual mileage. • Per Section 112.061(7)(f), the allowance: • Must be reasonable, taking into consideration the customary use, the roads traveled, and if other costs (operation, maintenance, and ownership) of the automobile are paid for by the board. • Must be reviewed at least annually. • Shall provide a statement showing the average typical monthly cost to the board using the approved mileage reimbursement rate.

24. Elements of Travel - Transportation Important Points About Vicinity Mileage: • Vicinity miles are actual miles driven: • While in a destination city (i.e., to and from conference/hotel) • While in your headquarters city (non-overnight travel status) (i.e., visiting employers, clients, etc.) • Vicinity mileage and mileage from origin to destination (i.e., ‘map miles’) must be reflected and tracked separately. The mileage is reimbursed at the same rate, but needs to be reported separately, since there are different rules and requirements.

25. Elements of Travel - Transportation Important Points About Vicinity Mileage (continued): • Vicinity miles must be approved in advance, as with any other form of travel. It could be a blanket approval, but should seek to estimate the cost to the board. • It is recommended that travelers be required to submit vicinity mileage incurred for local travel on a periodic basis, such as monthly. • Vicinity miles are not allowed to be claimed when in a rental car.

26. Elements of Travel - Lodging • Itemized receipts for lodging are required, to ensure the costs are not for unnecessary or inappropriate purchases, such as room service, movies, etc. • It is recommended that a threshold for nightly room rates be established. DFS has established a threshold or nightly room rate above which additional justification should be given. For State agencies that amount is $150 per night, before taxes, etc.

27. Elements of Travel - Lodging • Only single occupancy will be reimbursed. Any charge for a spouse or guest must be paid by the traveler. • A traveler cannot be reimbursed for lodging if the overnight travel is within 50 miles (one way) of their headquarters or residence, without justification and approval by board designee. Criteria for approval shall include late night or early morning job responsibilities and excessive travel time because of traffic conditions.

28. Elements of Travel - Incidentals • Within the Travel Manual Template is a list of allowable charges, which may accompany a travel event. This list is not exhaustive and if justification can be provided for why the cost is necessary for travel, additional items may be included. • Per DFS Rules, a receipt is required, unless otherwise noted. However, the board may require all expense items to be accompanied by a receipt. • Some key/usual expense items are: • Taxi Fare • Parking Fee • Valet Tip • Portage Tip

29. Payment for Travel Expenses • Travel expenses may be paid in several ways: • Travel Advance – A payment of a portion of the anticipated travel expense which the traveler will incur. • Reimbursement – Payment of appropriate travel expenses to the traveler after a travel event. • Direct Payment – Payment of travel expenses by the board on behalf of a traveler. • All expenses must be shown on the Voucher, regardless of the payment method. • A Voucher must be completed at the end of each travel event, even if no reimbursement is due the traveler.

30. Payment of Travel Expenses – Travel Advance • Section 112.061, F.S. provides for the ability to pay a traveler in advance of a travel event. • Much of the information in the Travel Manual Template is based on best practices employed by the State in issuing advances. Your board has latitude to allow advances or not, and to establish the method for how to issue them. • A template form is provided as an Attachment to the Template document; however, the board may use its own form/format. • Any excess funds provided to the traveler in advance must be shown on the Voucher as due back from the traveler.

31. Payment of Travel Expenses – Reimbursement • This method involves paying a traveler back for costs they incurred personally in support of board travel. • A Voucher for Reimbursement of Travel Expenses is used to report the actual, total expense associated with a travel event. • While it’s an important tool for determining the amounts owed to the traveler, it is fundamentally a tool for documenting the entire travel event. • It must include the Authorization to Incur Travel Expense form as well as receipts and other travel-related documentation.

32. Payment of Travel Expenses – Reimbursement • A template form is provided as an Attachment to the Template document; however, the board may use its own form/format. • If you modify this form or develop your own, the critical elements to ensure are on your form are: • Detail of the expense categories and types – Separate airfare from rental car from lodging, etc. • Original receipts as supporting document, where available • Total travel costs - Show all costs associated with the travel event, whether paid via advance, directly by the board, or via reimbursement

33. Payment of Travel Expenses – Direct Payment by Board • Costs associated with travel may be paid directly by the board. Often times, this includes conference registration or other large dollar purchases. • ‘Direct payment’ includes items paid via board purchasing or corporate card. • The board’s purchasing or corporate card policy and guidelines will come into play with reimbursement. You’ll need to consider and factor in the existing practices. • For example, original receipts for purchases may be kept with the corporate card documentation; therefore, a copy would be included with the Travel Voucher documentation.

34. Other Considerations • Travel expenses for individuals with disabilities: • Special provisions apply for individuals covered under the Americans with Disabilities Act who require reasonable accommodations to perform their duties, apply for a position, or perform other covered activities. • Expenses in excess of those ordinarily authorized are allowable if: • They are reasonable and necessary to permit the safe travel of the handicapped traveler. • The Voucher includes a prescribed, signed statement from the Board Chair or designee. • The individual is determined by the board to be a ‘qualified individual with a disability’. • The board must keep the Voucher and related confidential records for seven years and make those records available to persons authorized to review such records.

35. Other Considerations • To facilitate reporting and research, the board should consider developing a method to track travel expenses by various data elements: • Traveler Name & Employee Number • Destination (In-State vs. Out-of-State) • Purpose of Travel (Conference, etc.) • Key Cost Elements (Rental Car, Hotel, Mileage, Per Diem/Meals, Airfare)

36. Other Considerations • Timeline for submission of documents and requests • The board will need to establish reasonable timeframes for submitting the forms and required documentation for each event (advance, reimbursement, etc.). • Consideration should be given to: • Timing of funding availability – The period of travel should be paid from the funds appropriated for that same period. • The purchasing card or corporate card timelines – How quickly do receipts need to be provided for corporate card reconciliation? • Processing time for advance payment requests – The average amount of time it takes to approve, process, and issue payment. • Date of travel – How far in advance is an ‘advance’ needed?

37. Recap • Section 112.061, F.S. to be followed, effective July 1, 2010 • Authorization to incur is required in advance • There are set allowances for meals, per diem, and mileage • The time of day that travel begins and ends is important • Food and beverage costs are only allowable for overnight travel • Latitude in some areas to establish board-specific policies and tools • Travel Manual Template is a framework for your own travel policy • Documentation, documentation, documentation!

38. Questions