Travel and Expense Reports

1. Travel and Expense Reports

2. EXPENSE REPORTS • https://www.smsu.edu/administration/businessservices/index.html, click on “travel” (on the left), to find information and forms. • Reports must be completed properly and received in the Business Office by Wednesday of payroll processing week. • Payment will be made on Friday of the following week (payday) as a separate direct deposit from payroll. • The IRS requires employee business expenses to be submitted within 60 days after the expense is incurred or the trip ends. If not submitted within the 60 days, the reimbursement becomes taxable income.

3. EXPENSE REPORTS, cont. • Expense reports for the fiscal year (ending June 30) must be submitted by July 15th. • Submission after July 15th requires an attached written explanation by the Dean or VP.

4. TRAVEL ADVANCE • Advance requests need to be submitted at least two weeks prior to the travel date. They need to be processed on the payroll schedule. • Only one outstanding advance at a time is allowed. One advance must be settled before another can be issued.

5. TRAVEL ADVANCE, cont. • Advance settlements along with the appropriate receipts should be submitted within 5 days of the trip end date. • Any excess advance funds will be taken out of the employee’s paycheck. • An advance not settled with 28 days of the trip end date will be deducted from the employee’s paycheck.

6. Recurring Travel Advances Recurring advances are issued when an employee travels on a regularly recurring basis. The travel period could be for a fiscal year or a shorter period of time such as 3 months. The advance is requested to provide the employee with start-up funding to cover the necessary estimated expenses of an average month during the designated period of time. The employee uses the advance to pay for the first month of travel expenses.

7. Recurring Travel Advances, cont. At the end of the first month, instead of settling the advance, the employee claims reimbursement for the actual expenses of that month. The employee uses the reimbursement to pay for the second month’s expenses. Expenses continue to be funded throughout the travel period by using the reimbursement of the preceding month’s expenses to cover the current month’s expenses until 1) The fiscal year end, 2) The advance recapture date is reached (end of the travel period), or 3) The employee’s employment ends, whichever occurs first. The advance is then settled. An appointing authority designee and the employee’s supervisor must approve all recurring travel advances.

8. EXPENSE RECEIPTS • Original itemized receipts are required for all expenses except: • Meals (unless for more than just employee) • Taxi Services • Baggage Handling • Parking Meters • No form of cancelled checks and/or copies of credit card bills/receipts can be used. • If receipts are unavailable or lost, a notarized affidavit may be submitted. https://www.smsu.edu/administration/businessservices/index.html, click on employee forms, then expense affidavit

9. MEALS • Employees must be in travel status. (performing required work more than 35 miles from permanent work location) • Breakfast is reimbursed only when the trip begins before 6:00 am. • Lunch is reimbursed only when employee is in travel status through the normal lunch period. • Dinner is reimbursed only when the trip ends after 7:00 pm. • Times of departure and return must be indicated on the expense report for all meal reimbursement requests. • Employees are reimbursed for the actual cost of a meal, up to the maximum allowed in the applicable collective bargaining agreement or compensation plan.

10. MEALS cont. • Cost of a meal includes tax and a reasonable gratuity and does not include alcoholic beverages. • If meals are included with lodging, transportation or a conference, the employee is not eligible for reimbursement for that meal. • “Meal Bunching” is allowed.

11. MEALS cont. • For example, a MAPE employee goes to St. Paul and stays overnight two nights and is eligible for dinner ($16) the first evening, breakfast ($9) and dinner ($16) the next day (lunch was provided at meeting) and breakfast ($9) the third day. The employee could be reimbursed a total of $50. • The employee spends and should be reimbursed: Dinner $21 Breakfast $ 5 Dinner $16 Breakfast $ 8 Total $50

12. MEALS cont. Meal rates effective 1/1/14: • Breakfast $ 9.00 • Lunch $ 11.00 • Dinner $ 16.00

13. MEALS cont. High Cost Metro Areas and International : • Breakfast $ 11.00 • Lunch $ 13.00 • Dinner $ 20.00 • https://www.smsu.edu/administration/businessservices/index.html, click on “travel”, scroll down to “expense reimbursement matrixes” to find these rates and the metro areas they apply to.

14. LODGING • Lodging should be reasonably priced and is limited to the single room rate. Ask for government rate. • If two employees share accommodations, each may claim one-half of the lodging expense. • You cannot be reimbursed for expenses incurred by another employee even if you did in fact pay for his/her share. All employees are required to submit his/her own expenses. (This applies to all expenses.)

15. MILEAGE • For Travel: after 12/31/18 prior to 1/1/19 • State vehicle not available .580 .545 • State vehicle declined .510 .475 (A State vehicle is a rental car from Enterprise) • 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 to the destination. • Use mileage chart or mapquest.com to determine miles if necessary.

16. OUT-OF-STATE TRAVEL • If employees choose to drive to out-of-state destinations, the reimbursement is limited to the lesser of actual costs or the “lowest round trip airfare.” A quote for airfare and related expenses for your travel dates should be included with the expense report. • Border communities such as Sioux Falls, Brookings, etc. are treated as in-state travel.

17. ENTERPRISE RENT-A-CAR • Call Enterprise to schedule a rental. • Must give Enterprise the cost center number for coding the rental charges. • A fee schedule is available at: • https://www.smsu.edu/administration/businessservices/index.html, click on “travel”, enterprise documents are on this page. • You must add 15.7% sales tax. • See “Cost Comparison Personal Vehicle Vs. Enterprise” • Only SMSU employees, students or volunteers for official SMSU activities may ride in an Enterprise vehicle.

18. ENTERPRISE RENT-A-CAR, cont. • Rental time is a 24-hour period. If you pick up a vehicle at 8:00 am, you must return it prior to 8:00 am the next day to be charged for one day. • If you need to have a vehicle available prior to 7:30 a.m., you may pick up the vehicle after 4:00 p.m. on the prior day for an additional $3.00 fee. Your rental time then commences as of 8:00 a.m. the next day. • You MUST tell the Enterprise personnel that you are picking the vehicle up for an early departure so that you are not charged for a full day. If you pick the vehicle up prior to 4:00 p.m. you will be charged for an extra day.

19. ENTERPRISE RENT-A-CAR, cont. • If you need a vehicle early on a Monday morning or late on a Sunday, you will have to pay additional charges to pick up the vehicle on Friday. You MUST tell the Enterprise personnel that you are picking the vehicle up for a later departure. (prefer you pick up the keys, not the vehicle) • Listed below is a chart of the additional charge that would apply to pick up the keys on Friday. Day of Pick UpStart of UseAdditional Charge + taxes Friday Saturday a.m. $3 Friday Saturday p.m. $3 Friday Sunday a.m. $10 Friday Sunday p.m. $10 Friday Monday a.m. $20

20. ENTERPRISE RENT-A-CAR, cont. • Vehicle must be returned with a full tank of gas. • Submit gas receipts on the expense report for reimbursement. • Rent a car – upgrading to a van or SUV is not allowed unless there is a business reason for it. • When returning your rental vehicle, if after Enterprise office hours, there is a key drop box inside the airport building, near the Enterprise office. If your keys are not deposited in the drop box, there is the possibility of an extra day rental charge.

21. SPECIAL EXPENSES • Procedure 5.20.1, http://www.minnstate.edu/board/procedure/520p1.html • Special expenses include, but are not limited to: • Meals within the work area • Meals exceeding the maximum allowance • Conference fees in excess of $1,000 • Special expense form should be completed and approved in advance of the expenditures. ( https://www.smsu.edu/administration/businessservices/index.html, click on “travel”, then “special expense form”) • Department heads and Christy Johnson, Business Services, approve requests.

22. Out-of-StateTravel Prior approval is required for all out-of-state travel. Out-of-State Travel Authorization form should be submitted to supervisor at least 14 days prior to travel. Presidential approval is required for international travel. A copy of the approved form should be submitted with expense reimbursements (expense reports, purchasing card activity report).

23. CONTRACTUAL TRAVEL (IFO) • Expenses should be consistent with the faculty member’s professional development plan. • “Permissible uses include, but are not limited to, the cost of travel, housing, meals and registration associated with participation in professional conferences, workshops, and similar meetings and courses, professional memberships, professional books and journals, supplies and services including internet access, online services including electronic subscriptions, software, multimedia, and fees associated with the publishing or presentation of scholarly and creative work including preparation services. PST purchases must be reasonably likely to enhance the faculty member’s effectiveness with respect to one or more of the five criteria set forth in Article 22; purchases of technology that satisfy the standards of this subdivision are permissible. Funds may not be used to purchase routine equipment. All tangible assets purchased with PST funds are the property of the University.”

24. TRAVEL FOR PROFESSIONAL PURPOSES– TPP (ASF) • “Funds provided by this section shall be limited to paying the cost of travel, housing, meals, registration, and related expenses associated with participating in development activities which promote the goals and mission of an ASF Member’s department, program or university, such as professional conferences, workshops, similar meetings, courses, and other related professional development activities. Consistent with the foregoing, the funds may be used to pay for professional memberships, fees for professional licensure required for the ASF Member's current position, books, journals, subscriptions and software. Books, journals, subscriptions, or software that are purchased in electronic form must be stored on a state-owned device.”

25. Completing the Form – Common Omissions and Mistakes • Home Address – need street and city. • Work Address – usually”1501 State St., Marshall, MN”, may be home or other location. • Cost Center Number – may enter more than one but specify dollar amount to each cost center. Be sure to check the CT (contractual travel) or TPP (travel for professional purposes) boxes if applicable. • SEMA4 ID# - same number you use to log onto employee self-service site to view pay stub and W-2. • Bargaining Unit – need to determine correct meal rates.

26. Completing the Form – Common Omissions and Mistakes, cont. • Dates – always need the dates of travel or date items purchased. • Times – need times left and returned for meal reimbursements. • Location – need where you left from and went to. • Reason for Travel – required

27. Completing the Form – Common Omissions and Mistakes, cont. • Trip & Local Miles – need breakdown or mileage may be reduced to match mileage chart or mapquest.com. • Meals – should be by day not lumped together. Needs to be actual amount spent up to reimbursement limit. • Lodging – do not include parking, internet access or other charges on the hotel receipt. • VP, Provost or Dean’s Signature – required for all CT, TPP, and Grants

28. Completing the Form – Common Omissions and Mistakes, cont. • Check Boxes: • In State Travel • Out of State Travel • Settlement (of advance) • Reimbursement • Advance • When settling an advance: • Enter amount of advance under “Subtotal” • “Total amount to be paid” should equal balance due to/from employee.

29. Completing the Form – Common Omissions and Mistakes, cont. • All receipts should be stapled in the upper left corner to the back of the expense report …. no paperclips please!

30. SUPERVISOR RESPONSIBILITIES • Review expense report • Appropriate Expenses • All required items are entered • Original receipts are attached • All expenses comply with policies/procedures • Do not approve expenses that do not comply – return to employee

32. ADDITIONALINFORMATION • http://www.sema4.state.mn.us/ - click on: • SEMA4 Help • Operating Policies and Procedures • Payroll Policies and Procedures • Listed by Business Function • Business/Travel/Relocation Expense • Employee Business/Travel Expenses, or • Travel Advances