Applications of University
Travel Policies
A Roundtable Discussion
Lottayne Widemon – NCA&TSU
Yolanda Hopkins – NCA&TSU
Session Etiquette
• Please turn off all cell phones.
• Please keep side conversations to a minimum.
• If you must leave during the presentation, please do so
as quietly as possible.
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The Accountable Plan for University Travel
An employee reimbursement allowance arrangement
or a method for reimbursing employees for business
travel expenses that comply with IRS regulations.
Employee travel expenses do not have to be treated
as taxable income under the accountable plan.
Accountable Plan is an IRS term. (Publication 463)
The Accountable Plan for University Travel
Accountable Plan Requirements
• Your expenses must have a business connection
-that is, you must have paid or incurred deductible expenses while
performing services as an employee of the University.
• You must adequately account to your employer for these
expenses (include original receipts) within a reasonable period
of time (defined as 30 days- NC G.S. 138-6c).
• You must return any excess reimbursement or allowance within
a reasonable period of time.
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The Accountable Plan for University Travel
Expenses must have a Business Connection
5.0.3 Official State Business
Official state business occurs when the State employee
or other person is traveling to attend approved job
related training, work on behalf of, officially represent,
or provide a state service upon the State’s request.
Travel that would not directly benefit the State will not
be reimbursable.
OSBM., pp125, January 1, 2013
The Accountable Plan for University Travel
Expenses must have a Business Connection
Note:
Scholastic program requirements for students and travel
taken for the primary benefit of an individual or outside
entity which does not benefit the University does not
qualify as official University business.
The Accountable Plan for University Travel
Expenses must have a Business Connection
5.7.3 Post-secondary Students
Student travel expenses while working as an employee of the State
are considered official state business when traveling on behalf of their
position and shall be paid from the same source of funds from which
the employee is paid. Non-employee students at state institutions who
travel on official state business are reimbursed from the General Fund
consistent with payments for state employees. Non-employee
students who travel to fulfill a course requirement for academic credit
and whose expenses are paid or reimbursed by the General Fund are
subject to these regulations, including statutory allowances, to the
same extent as are state employees. Funds specifically appropriated
or legally directed for student travel are authorized to be used for
student travel expenses. Official state business is defined in Section
5.0.3.
OSBM., pp.140, January 1, 2013
Question:
How are travel expenses for non-employee
students who travel to fulfill a course requirement
for academic credit processed?
The Accountable Plan for University Travel
Account for expenses within a reasonable amount of time
Pursuant to NC G.S. 138-6(c), requests for reimbursement
shall be filed within 30 days after the travel period ends for
which the reimbursement is being requested. (OSBM., pp.125)
Question:
How are travel reimbursement requests filed after the
30 day period handled?
Question:
Student Group Travel:
How does your institution manage subsistence,
advances, covering meals outside of subsistence
rates and the reimbursement process?
Student Group Travel
Student Group travel is when one university
faculty/staff member takes a group of students
on a trip and pays for the entire trip expense for
the students.
If students are to be reimbursed for any
travel expenses, then travel cannot be
processed as a student group travel and a
separate travel authorization must be created
for each student which should follow the
policies and procedures for a student.
Spousal Travel on Business
How does your institution process and reimburse
travel expenses for the president’s spouse?
Spousal Travel on Business
Question:
What is your institution’s policy regarding
travelers canceling a trip for which the university
prepaid nonrefundable airline tickets?
Cancellations
Credits resulting from nonrefundable airline tickets
prepaid by the University must be used for future
University travel prior to its expiration date usually one
year from ticket issue date. If the airline ticket remains
unused after the expiration date it becomes the
obligation of the traveler to reimburse the University for
the unused ticket amount unless cancellation was due to
University business reasons documented in the report
filed in the Travel Office. Any penalty/charge assessed
while applying a credit resulting from a cancellation is
also the responsibility of the traveler.
Remember: The prepayment made by the University is a loan to the traveler.
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Payments Reported as Taxable Income
The University reports payments as taxable income
when tax law requires this treatment. The most common
instances in which taxable income is likely to occur are
from payments that do not meet Internal Revenue
Service (IRS) accountable plan rules.
Additionally, reimbursed lodging, meals and
transportation costs associated with employee
educational expenses does not necessarily meet the
criterion for business travel and may be reported as
taxable income. (See IRS Publication 15-B)
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