Abstract: To establish a consistent approach for reimbursement of travel expenses for individuals traveling on behalf of the School.
Applies to: Faculty, Staff
Policy Holder: Controller-Operations
Responsible Office: Controller-Operations
Contact Information: Purchasing
Approved by: Vice President of Finance and Administration
Notable Changes, January 2025:
- Meals and Incidental Expenses (M&IE) Per Diems changed to include premium cities and 75% allowable on first and last day of travel.
- Substantiating expenses within 60 days of travel return. Travel may not be reimbursed if the School receives travel expense report after 60 calendar days.
- Clarification of receipt requirements for out-of-pocket expenses. Receipts are not required for expenses less than $25.
- Local travel defined as less than 50 miles and hotel accommodations or meal reimbursements are not allowable.
- General clarifications and updates to airfare options.
1.0 Background and Purpose
- To establish a consistent, institution-wide approach to coordinating and managing the School’s business travel and entertainment.
- To ensure that School travelers are provided with safe, adequate and convenient services, while ensuring efficient use of School funds.
- To maximize every savings opportunity by standardizing School procedures and negotiating discounted rates with preferred suppliers.
1.1 Who Needs To Know?
This policy applies to all faculty, staff, and representatives of the School seeking funds and/or reimbursement for any transportation, entertainment or travel-related expenditures. It also applies to any non- employee who has been invited to the School or has been authorized to travel and/or entertain on behalf of the School.
2.0 Policy
The School will pay for allowable, reasonable, necessary, and properly authorized expenses for the purpose of office School business, as described in this policy. This policy applies regardless of the sources of funding used to pay for the travel.
2.0.1 Reimbursement
A traveler may be reimbursed for travel expenses outlined in this Policy provided the following criteria are met:
- The travel purpose shall be for the benefit of the School regardless of funding source;
- Are reasonable under the circumstances;
- Is only for the time period necessary;
- Is completed using the most economical means available;
- Is supported by adequate documentation;
- Is approved by the appropriate authorizing authority prior to traveling (Note: faculty are required to complete the faculty request for travel form); and,
- Substantiates travel expenses within 60 calendar days of travel.
- Note: travel expenses, including reimbursement requests, must be submitted within 60 days of the travel end date or the traveler may not be reimbursed or be considered taxable income to the traveler per IRS guidelines.
2.0.2 Allowable Expenses While in Travel Status
Airfare
All airfare must be pre-approved by the traveler’s manager ensuring that the budgeted funds are available. Reservations can be made directly by the traveler or assigned administrative pod individual after the trip has been approved.
The recommended air travel limitations are as follows:
- No administrators from the leadership team should travel on the same flight.
- No more than three administrators or faculty members should travel on the same flight.
- No more than three staff members should travel on the same flight.
All flight assignments must meet the following requirements:
- Lowest fare available considering the following criteria:
- Basic Economy
- Not recommended because seat assignments are not assigned until check-in and ticket changes or upgrades are not allowed
- Economy- allowed for all flights
- Premium Economy – allowed for flights 4 or more hours with no additional approval
- Business – allowed for flights 8 or more hours (including connecting domestic legs). Travelers should obtain pre-approval from their supervisor. Supervisors may deny a portion of the airfare if the traveler does not obtain pre-approval for the upgrade.
- First – not allowed
- Basic Economy
- Scheduled in advance (i.e., at least 14-21 days prior to departure);
- Frequent Flyer Miles may be used by the employee;
- Insurance is not reimbursable as the School provides eligible employees with life and disability insurance;
- Airline Club Memberships are not reimbursable; and
- TSA Precheck fees are not reimbursable.
Each airline may have different designations for fare/seat classes than those listed above. Contact Purchasing Services if the traveler is unsure what fare class to book.
Airport Parking
When traveling, you may need to park your vehicle at/or near the airport. It is the traveler’s responsibility to determine whether it is more cost effective to park at the airport, take public transportation, or to take a taxi.
Mileage Reimbursement
Employees using their personal automobile will be reimbursed for School related mileage at the then current mileage rate. Mileage must be calculated using the School as the base (unless using the traveler’s home site results in lower mileage) with the traveler’s daily mileage to and from work subtracted. For example, if the normal commuting round trip is 40 miles, and the employee goes on a business trip leaving directly from home that covers 75 miles, then only the incremental 35 miles are reimbursable.
When driving to long-distance locations, the cost may not exceed the amount of a round-trip coach airfare to the same destination. Insurance is the sole responsibility of the individual traveler (the reimbursement rate is assumed to include an amount to cover insurance).
The mileage reimbursement rate for 2025 is $0.70/mile, which is reflected on the travel expense report.
Rental Car
The School has negotiated rates with a car rental agency; all employees are encouraged to use it. It may also be used for School visitors. Please work with your administrative pod professional for assistance.
Gas for rental cars is reimbursed through School’s travel reimbursement process. A receipt is required for reimbursement of both the vehicle rental and the required gas.
Rail/Bus/Personal Vehicle Mileage
School approved expenses from train or bus transportation will be reimbursed but may not exceed the total cost of a round-trip coach airfare.
Taxi/Shuttle Service/Personal Transportation
The cost of taxi or shuttle services to and from the airport or meetings will be reimbursed if a School reimbursement form is properly completed, approved, and accompanied by receipts. The cost of personal transportation to and from the airport is reimbursed at the current mileage rate (actual miles driven are required). Travelers should seek the least costly method of ground transportation to and from airports unless it is very inconvenient.
Hotel Accommodations
Hotel accommodation expenses are paid or reimbursed by the School for approved trips. Hotel reservations are generally made in association with a conference or seminar. Other reservations can be made by the traveler or assigned administrative pod professional travel arranger through the School’s travel supplier (i.e., Egencia) or with the hotel directly. Hotel charges may be paid by the traveler and reimbursed or may be placed on a School PCard.
Trips of less than 50 miles one way from the School, or the traveler’s residence, whichever is shorter, are considered local travel and do not qualify for overnight stay unless School business requires an event away from St. Paul, where attendance and travel for the event would prohibit the employee form having 8 hours at their home to rest.
Meals Entertainment and Out-of-Pocket Expenses
Travelers are allowed a per diem for each full day for food, tips, and miscellaneous expenses. How travelers choose to allocate the amount among the various needs for meals and other personal expenses is their decision. If meals and incidentals cost less than the daily allowance, the difference goes to the traveler. If they cost more, the traveler pays the difference. This amount will be reimbursed for each day traveled in lieu of keeping receipts for meals purchased. Travelers will be given this allowance for each day of travel subject to the restrictions shown below.
The exceptions are:
1) If any meal is prepaid or provided by others (a conference, a local host, etc.), that specific meal allowance would be deducted from the daily total. An example of these specific deductions (updated annually) are as follows:
- Breakfast $16.00
- Lunch $19.00
- Dinner $28.00
- Miscellaneous $5.00
(check the current expense report for correct amounts)
i.e.: If a dinner is paid by a host then $28.00 would be deducted from that day’s reimbursable per diem. If a lunch is provided as part of a conference, then $19.00 would be deducted; and so forth.
2) If your first and last days are not full travel days then allowances will be adjusted to 75% of the per diem total.
3) Due to a generally higher cost associated with traveling to certain cities in the U.S., we have designated a number of Premium Cities* for which the daily per diem allowance is higher.
*Premium cities are in a separate tab of the expense report.
4) School travelers do not qualify for personal meal reimbursement during same-day travel. IRS regulations require that an employee be away from home substantially longer than an ordinary day’s work, and during the time away from home, need sleep or rest (referred to as the “overnight rule” – i.e., overnight stay is required).
5) In lieu of per diems, a traveler may request actual meal reimbursement costs (or substantiate PCard expense amounts) as long as an actual itemized receipt is included, and the amount of expense is less than the per diem amount.
Phone Calls/Fax – Personal phone calls and faxes will be covered by the per diem. Business phone calls, faxes and other communication related items will be reimbursed only if approved by the budget manager and must be listed as additional expenses and itemized separately.
Entertaining clients, vendors, donors, or other constituents is allowed only if approved by the budget manager and itemized separately.
The meals and incidental expense (M&IE) breakdowns in the table below are provided should federal travelers need to deduct meals furnished included in a registration fee from their M&IE allowance.
| M&IE Total | Breakfast | Lunch | Dinner | Incidental Expenses | 75% First & Last Day |
|---|---|---|---|---|---|
| $68 | $16 | $19 | $28 | $5 | $51 |
| $74 | $18 | $20 | $31 | $5 | $55 |
| $80 | $20 | $22 | $33 | $5 | $60 |
| $86 | $22 | $23 | $36 | $5 | $64 |
| $92 | $23 | $26 | $38 | $5 | $69 |
Domestic Travel Per Diems (CONUS locations): Per Diem Rate Lookup | Defense Travel Management Office
Per Diems for Alaska, Hawaii, Guam, Puerto Rico, etc. (OCONUS locations are separate from the contiguous 48 states and Washington DC): Per Diem Rate Lookup | Defense Travel Management Office
International Per Diems: https://aoprals.state.gov/Web920/per_diem.asp
Conference/Seminar Registration Guidelines
The School will pay only for timely registration and conference fees. Late fees, due to poor planning, must be paid by the traveler.
Cash Advances
Cash advances for faculty, staff and other travelers are available by submitting an approved check request to accounts payable in the finance office. The traveler is liable for the amount provided in advance and must be reported on their expense report. Please note that additional cash advances will not be permitted until any previous advances have been accounted for.
Travel Reimbursements
An expense report must be completed, approved and submitted to the Finance Office within sixty calendar (60) days after the trip. Original receipts are required for all expenses except the per diem items. Attendance of conferences or meetings that are reimbursable by other organizations must be reconciled within sixty calendar (60) days or sooner, depending on the School’s fiscal year end.
Family Travel
Arrangements for family or other reimbursable travel can be made in conjunction with a work-related trip with the following restrictions: Family airline tickets must be paid for using the traveler’s personal credit card.
Any air upgrades, hotel upgrades or personal charges listed on receipts must be itemized on the expense report as personal expenses. These personal costs must be reconciled and paid by the traveler when the expense report is submitted (within 60 days after trip).
If a traveler incurs personal expenses that are not paid, the School has the right to deny additional travel and may deduct the amount from the traveler’s paycheck.
Summary of Allowable Expenses While In Travel Status
| Type of Travel Expense | Rate | Receipt Required? |
|---|---|---|
| Hotel/Lodging | Actual | Yes |
| Meals & Incidental Expenses (M&IE) | Per Diem Rate | No |
| Commercial Ground Transportation | Actual | Yes |
| Rental Vehicle | Actual | Yes |
| Mileage for Personal Vehicle | IRS Approved Rate | No |
| Airfare | Actual | Yes |
| Gratuities/Tips as part of Meals & Incidental Expenses | Not Allowed | N/A |
Substantiation/Receipts
Receipts are required for lodging, rental vehicles, airfare, and any charges on the School’s Purchasing (PCard), regardless of amount. Such receipts shall be detailed/itemized receipts and shall include the date of service. Receipts for out-of-pocket costs are not required for any expenses for which the individual charge is less than $25.