TABLE OF CONTENTS

GENERAL POLICY STATEMENT

This is the Texas A&M Research Foundation statement of policy on reimbursement of related expenses and other reimbursements. Each traveler should be familiar with this policy prior to travel to ensure that costs will be reimbursable. Also, the traveler should be familiar with the Research Foundation requirements for documentation of expenses. Lack of proper receipts may result in unreimbursable expenses to the traveler and a delay in processing the expense account. It is the traveler's responsibility to report his/her actual travel expenses in a responsible and ethical manner and in accordance with the regulations set forth in this policy. Because of the significant amount of federal funding administered by the Research Foundation, portions of this policy and guidelines parallel those of the Federal Government.

The reimbursement policy is based on documentation of reasonable and actual expenses supported by original receipts (monthly credit card statements or credit card receipts alone are not acceptable as backup documentation).  According to Federal guidelines, a cost is reasonable in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs. In determining the reasonableness of a given cost, consideration shall be given to:

• Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the organization or the performance of the award.
  
  
• The restraints or requirements imposed by such factors as generally accepted sound business practices, arms length bargaining, Federal and State laws and regulations, and terms and conditions of the award.
  
  
• Whether the individuals concerned acted with prudence in the circumstances, considering their responsibilities to the organization, its members, employees, and clients, the public at large, and the Federal Government.
  
  
• Significant deviations from the established practices of the organization which may unjustifiably increase the award costs.

For charges to research accounts, the traveler and either the Principal Investigator or the Principal Investigator's authorized representative will be required to certify that the travel and other expenses have been incurred in the conduct of the research and are properly chargeable to the research account listed.

APPROVALS

Because of the varied regulations of the different sponsoring agencies, it is not possible to detail the trips which must have prior approval of the sponsor.

If there is any doubt as to the allowability of the trip or of the need for prior approval, the Research Foundation Project Administrator should be contacted. Unallowable cost may result in personal expense to the traveler and/or the principal investigator.

ADVANCES

Travelers may request funds for the reasonably estimated, ordinary and necessary business costs that will be incurred. The travel advance request should be submitted to the Research Foundation Project Administrator no later than four days prior to the date of departure. Disbursement of the funds requested will not normally be made more than thirty (30) days prior to the date of departure.

By signing the Travel Advance Request Form (Attachment I), the traveler contractually agrees that any funds advanced which are not expended during the trip are to be returned to the Research Foundation within 60 days of the completion of the trip.

Funds returned 120 days or later will cause the traveler to become liable to the Research Foundation for such amounts (including reasonable collection costs and attorney's fees) in addition to possible exposure for assessment of federal income tax on such amounts.

REIMBURSEMENT OF TRAVEL EXPENSES

Ordinary and necessary travel related expenses that are adequately substantiated and that are otherwise allowable will be reimbursed at rates provided for in this policy.

However, when specific travel guidelines are included in the terms of a contract or grant, the provisions of that contract or grant will govern the reimbursement.

Claims for reimbursement of allowable travel expenses must be submitted to the Research Foundation via an expense account. Substantiation of claims must be submitted within sixty (60) days of trip completion. Unexpended travel advance funds must be returned within 60 days of trip completion.

IRS regulations specify that any advances not returned within 120 days of trip completion and any reimbursements paid on an expense account submitted more than 60 days after trip completion must be reported to the IRS as ordinary income to the traveler and are subject to personal income tax. Expense accounts submitted after the 120-day limitation cannot be used retroactively to avoid the tax liability.

The expense account must include required supporting documentation as noted in this policy. If the total amount submitted for reimbursement varies by $30 or more, the traveler and/or principal investigator will be notified by the Travel Branch before reimbursement is made.

DOMESTIC TRAVEL

Transportation

Vehicles

1. Personal

Mileage will be reimbursed at the rate set annually in the Federal Travel Regulations (55.5 cents per mile effective July 1, 2011). This rate includes reimbursement for vehicle maintenance, gas and oil. Reimbursement for mileage cannot exceed the equivalent of economy air fare, except when a personal vehicle is used to transport materials or equipment.

If a private automobile is used for purposes other than transporting equipment, materials or conserving costs, an amount not to exceed cumulative economy air fare will be allowable only for the owner of the automobile. When mileage cannot easily be verified on highway maps, (e.g., field trips, etc.), a log should be kept of the various places visited and the mileage between points. More than one person traveling on the same trip should travel in the same vehicle unless there is a justifiable basis for additional vehicles.

2. Motorcycles

The use of privately owned motorcycles is reimbursable at 30.5 cents per mile.

3. University-Owned

Vehicles may be rented from the Texas A&M University (TAMU) Transportation Center and charged directly to a Research Foundation account. The expense account should include a statement to that effect.

4. Rental Vehicle

Rental vehicles should be used only when necessary to obtain economical or practical transportation, i.e., when it would cost more to travel by taxi, bus, etc. Itemized receipts are required.

Rental cars should be mid-size (intermediate) or smaller class when available. Use of a car larger than mid-size and/or upgrade charges are allowable if one or more of the following criteria are met and documented on the expense account form; (1) a compact/mid-size is not available, and taxi service cannot be obtained, (2) large equipment must be transported for official project business, (3) more than two travelers on project business are traveling together, and use of one larger rental car is less expensive than or offsets the cost of multiple rental cars and taxis, or (4) documentation is provided showing the cost of larger than a mid-size car was equal to or less than the cost of the mid-size. If the car is retained for personal leave days, the rental fee will be reimbursed proportionately to the business days.

The cost of collision and comprehensive damage coverage obtained through the rental car company is reimbursable; however, the cost of personal liability or personal effects insurance is NOT allowable. The vehicle should be rented in the traveler's name and therefore, personal automobile insurance policy(s) should be reviewed for adequate coverage as determined by the traveler. The non-ownership and hired section under the Research Foundation's business automobile policy does not cover physical damage to the rental vehicle that is rented by the individual.

Air Transportation

1. Commercial

Economy/coach or other special discount fares are to be used when available. Federal regulations prohibit reimbursement of business or first class airfare unless it is required to accommodate a disability or special need. If a fare above economy/coach class is used, an explanatory note must be attached to the expense account. To accommodate a disability, the disability must be substantiated in writing with a valid medical authorization. The medical authorization must be updated every two years, at a minimum. The medical authorization will be retained in a secure file and will not be attached to the expense voucher. To accommodate a special need, the special need must be substantiated in writing and attached to the expense account form. Air travel may be charged directly to the Research Foundation at local Bryan/College Station travel agencies. The agency must be informed of the proper account number to which the expenses will be charged. Airline ticket stubs must be attached to the expense account regardless of the manner of payment for the ticket.

If changes to airfare result in non-refundable expenses, a statement as to what steps were taken to obtain a refund or to minimize the costs should be included. These reasons should be related to project business or for other reasons beyond the traveler's control.

NOTE: Researchers are cautioned to be certain that the cost of air transportation will be covered under their account. If the cost is not allowed, researchers must reimburse the Research Foundation for the cost of the airfare.

2. Personally Owned or Rented

The Research Foundation requires prior notification and approval before a traveler uses a private aircraft. The traveler should provide the Research Foundation Project Administrator with the following information:

• Destination and purpose of trip
  
  
• Dates of travel
  
  
• Number/names of passengers
  
  
• Type of airplane
  
  
• Insurance certificate for the airplane
  
  
• Explanation why the personal plane is more economical to use rather than a commercial carrier

If the traveler plans to use the aircraft for more than one trip, all dates and destinations should be included.

The Research Foundation Project Administrator will review the sponsor guidelines and/or contact the Grant/Contracting Officer to determine allowability. If allowable, the Research Foundation will reimburse the traveler using the highway mileage between the designated headquarters and point of destination. The rate of reimbursement will be based on the State of Texas Travel Allowance Guide.

• Single engine aircraft $0.40
  
  
• Twin engine aircraft $0.55
  
  
• Turbine-powered or other $1.00

The rates are available at:

https://fmx.cpa.state.tx.us/fm/travel/travelrates.php

 

Taxicab, Limousine, Bus

Taxi, limousine, bus fares and tips must be itemized. Based on IRS guidelines receipts are required for any single fare or expense over $75. Limousine service from city to city, such as from College Station to Houston, will be used only when other practical means (i.e., rental vehicle, personal vehicle, bus) are not available, or the limousine service is more economical. An explanation of why limousine service was used must be submitted with the travel expense voucher. Use of taxis to obtain meals is allowable when suitable meals cannot be obtained at or within walking distance of the place of lodging. An explanation why it was necessary to use a taxi to obtain meals elsewhere must be written on the travel expense voucher.

Train

Itemized receipts must be submitted.

Miscellaneous

Parking fees are allowable for vehicles when receipts are submitted.

LODGING AND MEALS

Either a per diem rate or subsistence may be claimed; however, a combination of the two is not allowed on any one trip.

Per Diem (Lodging Plus Meals and Expenses Method)

The per diem rate includes the cost of lodging, meals and miscellaneous incidentals such as laundry and tips to waiters, porters, hotel maids, baggage carriers, bellhops, etc. Per Diem may only be claimed on those trips requiring an overnight stay.

Effective January 1, 2011

A maximum per diem rate of $163 may be used and does not require receipts for lodging or meals. The daily allowance shall be calculated on a midnight-to-midnight basis and be divided into quarters as follows:12:01 a.m. to 6:00 a.m.; 6:01 a.m. to 12 noon; 12:01 p.m. to 6:00 p.m.; and 6:01 p.m. to 12 midnight. To be given credit for a quarter day of travel, a traveler must have been on travel status for at least two hours in that quarter.

Subsistence (Meals and Expenses Method)

Travelers will be reimbursed under this method for the reasonable costs of lodging and meals. The total cost per day generally should not exceed the maximum rate of $175 for lodging (exclusive of taxes) plus the applicable meal per diem rate found at http://rf-web.tamu.edu/travel/meal.html (depending on the city) for meals. Requests to exceed the maximum lodging rates listed must be supported by a written statement explaining the circumstances that caused the existing rate to be inadequate and will be subject to the Research Foundation approval. Based on Federal Travel Regulations, requests for hotel reimbursements of more than 300% over the standard allowable rate of $175/night are unallowable.

Lodging

Itemized receipts for lodging and a statement showing $0 balance are required. Please note that express checkout receipts do not have a $0 balance and are not sufficient receipts. If receipts have been lost or destroyed, a statement explaining the circumstances shall be furnished with the expense account form, including the name and address of the lodging facility, the dates the lodging was obtained, and the cost incurred. Allowable lodging expenses will be based on the single room rate for the lodging used.

Advisory Note: Within the State of Texas, employees of the various Parts of the Texas A&M University System, and employees of the Research Foundation may be entitled to an exemption from state hotel occupancy taxes. In order to take advantage of this, the traveler must present an exemption certificate to the desk clerk at the time of check-in. Many hotels will not honor the exemption if it is presented at check-out. The form can be found at: http://rf-web.tamu.edu/forms/files/Travel/hotelocc.pdf.

Meals

The IRS maximum daily allowance for meals is $71, $66, $61, $56, $51, or $46 depending on IRS classification of the area. See http://rf-web.tamu.edu/travel/meal.html
for a current list of locations. Cities not listed are considered Low Cost. The per diem rates include taxes and tips to food servers. This allowance is payable to the traveler without itemization of expenses or receipts. The breakdown is a follows:

• $71/day:
  Breakfast $13 Lunch $19 Dinner $39
  
  
• $66/day:
  Breakfast $12 Lunch $17 Dinner $37
  
  
• $61/day:
  Breakfast $11 Lunch $16 Dinner $34
  
  
• $56/day:
  Breakfast $10 Lunch $14 Dinner $32
  
  
• $51/day:
  Breakfast $ 9 Lunch $13 Dinner $29
  
• $46/day:
  Breakfast $ 8 Lunch $12 Dinner $26

Breakfast will be reimbursed if traveler leaves before 7:00 a.m. or returns after 9:00 a.m.

Lunch will be reimbursed if traveler leaves before noon or returns after 1:00 p.m.

Dinner will be reimbursed if traveler leaves before 6:00 p.m. or returns after 7:00 p.m.

If allowable under the terms of the funding source, the maximum meal allowances may be exceeded but must be reasonable. Any excess amounts above the $39 and $64 maximums must be reported as income to the IRS, unless the traveler submits meal receipts.

Where the traveler has receipts for the meals, the reimbursements are no longer considered on a per diem basis and the allowance may be exceeded. An actual meal over the allowable federal meal rate may be claimed up to 300% of the rate set by the Federal Travel Regulations, with itemized receipts and a written explanation of the reasonableness of the expense under the particular circumstances. Monthly credit card statements alone are not acceptable as supporting documentation. IRS regulations state that only one method of meal reimbursement may be claimed in any one calendar day, i.e., on any day where actual meal expenses are claimed, all meals for that day must be claimed at actual expense and receipts must be submitted for all three meals on that day regardless of the amount.

Alcoholic beverages may not be purchased on research accounts unless specifically required and approved in the scope of work, budget and sponsor guidelines. See System Policy 34.03, TAMU Rule 34.0301M1 for campus locations and restrictions. Reasonable and prudent charges for alcohol purchased and served in off-campus locations (or on-campus locations permitted under System Policy 34.03 and related System Member Rules) will be allowed on residual/cash balance accounts. Such expenses must be in connection with research related activities (e.g. program development; scholarly research and testing; receptions and conferences; recruitment, etc.) Reasonableness is determined by, and at the discretion of TAMRF Management.

Any charges on the meal receipts for alcoholic beverage which are unallowable must be deducted befor submitting a claim.

Any charges on the receipts for alcoholic beverages must be deducted before submitting a claim.

NOTE: IRS regulations state that meals claimed for non-overnight trips are to be reported as taxable income.

Communications

Costs incurred on a cash basis for telecommunications for account business may be claimed; however, when these costs amount to more than $75, they must be documented either with receipts or a log. Internet usage fees are an allowable expense as long as project business is being conducted. Since travelers can be provided with a special telephone billing number, it is usually more desirable to charge communication against this number when possible.

Other Miscellaneous Expenses

Based on IRS guidelines any other single expenditure over $75 for any allowable incidental expense must have a receipt in order to be reimbursed. Examples of allowable incidental expenses include, but are not limited to, the following:

1. Registration fees for conferences, meetings, etc. Supporting documentation should include a receipt from the conference sponsor and proof of payment.
   
   
2. Miscellaneous supplies (not office supplies)
   
   
3. Fees for traveler's checks/currency exchange. When a loss is incurred in currency exchange, the loss may be claimed.
   
   
4. Porterage and special transportation for account equipment and materials
   
   
5. Postage for official mail
   
   
6. Gasoline for rental cars
   
   
7. Laundry/dry cleaning: Allowed for trips incurring a minimum of four consecutive nights on official travel.

Unallowable Expenses

Reimbursement will NOT be made for the following:

1. Entertainment expenses and non-project related social activities such as tours and dances
   
   
2. Parking tickets/fines or speeding tickets/fines
   
   
3. Gasoline purchases for personal vehicles when claiming mileage
   
   
4. Personal items purchased due to lost/delayed baggage
   
   
5. Office Supplies
   
   
6. Memberships - According to Federal guidelines memberships are not allowable unless their applicability to the special circumstances or purpose of the project is clearly established in the scope of work.

INTERNATIONAL TRAVEL

Definition

In general, international travel is defined as travel outside the continental U.S., Hawaii and U.S. territories and dependencies.

However, agencies differ in defining this term, so travelers should contact the Research Foundation Project Administrator to be sure the contemplated travel is correctly classified.

Approval

Almost all foreign travel must have prior approval of the sponsoring agency. Since regulations of the various agencies differ, it is the responsibility of the traveler to contact the Research Foundation Project Administrator. The approval request should be submitted at least 45 days prior to the anticipated departure date.

Transportation

NOTE: For COMMUNICATIONS, OTHER EXPENSES, etc., please refer to Domestic Travel sections regarding allowability/receipt requirements.