Sec. 1 Purpose
To establish cost-effective business travel practices at The University of Texas System Administration (“System Administration”) and ensure appropriate use of funds.
Sec. 2 Principles
a) Compliance with this policy is the responsibility of all System Administration employees.
b) Employees must use discretion when making travel arrangements to ensure conservation of System Administration resources.
c) Employees must follow System Administration rules governing employee travel which are in compliance with Internal Revenue Service (“IRS”) regulations and Texas state law.
d) System Administration retains the right to deny reimbursement for any expenses deemed inappropriate.
Sec. 3 Authority and Applicability
Authority is provided by Rule 20101 and Rule 20205 of the Regents’ Rules and Regulations. This policy applies to all employees of System Administration. Notwithstanding the provisions within this policy regarding meals and lodging, the Chancellor may be reimbursed for actual expenses of meals and lodging incurred as allowed by Texas Government Code Section 660.203. The Chancellor and his or her spouse are also subject to Rule 20205 which in case of conflict prevails over this policy.
Sec. 4 Travel Authorization and Notice
Travel Authorization and Notice. Prior approval is required for all travel. Approval for out-of-state and foreign travel must be in writing. Additionally, prior notice is required for business travel to the Washington, D.C. area that involves obtaining or spending federal funds or that impacts federal policies.
a) In-State Travel. Although not required to be in writing, a traveler must obtain approval from his or her immediate supervisor or Department Head prior to In-State travel. It is assumed that approval of a traveler’s expense report by a Department Head is evidence of the travel being authorized.
b) Out-of-State and Foreign Travel. The traveler must obtain prior approval from his or her immediate supervisor and from the appropriate Department Head by submitting a completed Travel Approval Form. The traveler must retain the signed original approval form and submit it as part of the reimbursement request. All travel to a foreign country, including Mexico or Canada, must comply with the provisions of UTS 190 International Travel Policy. No personnel shall travel to, for professional purposes, a country on the U.S. Department of Commerce’s foreign adversaries list under included in 15 C.F.R § 791.4, Determination of Foreign Adversaries, absent approval from the Office of General Counsel, the traveler’s respective Executive Officer, and the System Administration International Oversight Committee referenced in UTS 190.
c) Travel to the Washington, D.C. Area. Prior to travel on a trip that involves obtaining or spending federal funds or impacting federal policies, including any trip with a destination of the Reagan-National, Dulles International, or Baltimore Washington International airports, System Administration personnel must also inform the Texas Office of State-Federal Relations (“OSFR”) within the Office of the Governor regarding the timing of the trip, the purpose of the trip, and the name of a contact person for additional information. The OSFR Reporting Form should be completed and submitted in accordance with instructions on the form.
Sec. 5 Travel Expenses - General Provisions
5.1 Conservation of Funds. An employee’s travel must be planned and conducted to achieve maximum economy and efficiency considering all relevant circumstances while complying with the guidelines set forth in this travel policy. Travel expenses must be reasonable, appropriately documented, properly authorized, and submitted for reimbursement within 60 days of travel completion.
5.2 Expense Report Submission.
a) System Administration employees who travel for work must submit expense reports for reimbursement in the Concur Expense reimbursement system (authentication required).
b) The requesting employee must submit required receipts as support and prepare appropriate calculations using the System Administration Travel Overage Calculator (authentication required) to separate meals and lodging expenses eligible for reimbursement with State Funds from those that must be paid with Institutional Funds.
c) An expense report is required for all travel between cities when any expense is incurred by System Administration, even if no expenses are incurred directly by the traveling employee.
d) Documentation for direct-billed expenses must be included with an expense report, including (but not limited to) flight itineraries and rental car receipts.
e) Expenses older than 60 days when submitted by an employee for reimbursement in the Concur Expense reimbursement system will, if approved for reimbursement, generally be treated as taxable income to the submitting employee in accordance with IRS regulations. An explanation for the delay in submission is required.
5.3 System Administration Business. The documented purpose of the travel must be for System Administration business.
5.4 Approved Travelers. The following people may be approved travelers:
a) Employees traveling for approved System Administration business;
b) Guests and/or consultants traveling for approved System Administration business;
c) Attendant Care for Employees with Disabilities. Employees with disabilities may be reimbursed for attendant care travel expenses;
d) Spouses of Employees when traveling with required approvals in accordance with UTS120, Spousal Travel Policy for a business purpose of System Administration; and
e) Prospective Employees. When a prospective employee is requested to travel for an employment interview, the individual may be reimbursed for travel expenses in the same manner as a System Administration employee. Prospective employees are not exempt from state hotel occupancy taxes, unless the charges are directly billed, and may be reimbursed for those taxes.
5.5 Receipts.
a) Itemized receipts are required for most travel expenses. However, itemized receipts are not required for meals when the actual expense incurred does not exceed the locality based maximum rates approved by the Texas Comptroller of Public Accounts (“TxCPA”) and published by the U.S. General Services Administration (“GSA”) unless a single meal expense is $75 or greater. Itemized receipts are also not required for toll charges, parking (except for airport parking), or public transportation costs within a city when the costs are equal to or less than $25 per instance.
b) Lodging receipts are always required. Lodging receipts must show the name and address of the commercial lodging establishment, the name of the employee, a daily itemization of the lodging charges, the room rate, and proof of payment. All rates must be no higher than the comparable single room rate.
c) Receipts must be in the name of the traveler and match the dates claimed on the payment request. If the receipt is not in the traveler’s name, an explanation must be provided for the discrepancy and proof of payment by the employee provided.
5.6 Foreign, Canada and Mexico Travel Expenses. Travel expenses must be converted to U.S. dollars. As part of the Concur Expense reimbursement system, OANDA is utilized to convert and document the exchange rate
5.7 Rewards Programs. Customary rewards such as frequent flier miles or hotel rewards may be retained by the employee. Rewards programs must not influence more costly travel decisions.
5.8 Travel Before and After State Business. Travel expenses incurred the night before state business begins and the night after state business ends are reimbursable, if incurred for a business reason. Travel expenses incurred more than one night before or after the state business begins or ends are not reimbursable unless proven to be necessary and properly documented.
5.9 Advance Reimbursements. Expenses cannot be reimbursed prior to the completion of a travel-related event. This includes, but is not limited to, conference registration fees and lodging deposits.
5.10 Remote Workers. At the discretion of the Department Head, a Remote Worker may be reimbursed for travel to a System Administration location if their residence is more than 50 miles from that System Administration location. Teleworkers are not eligible for reimbursement under this provision.
Sec. 6 Transportation
6.1 Travel by Automobile.
a) Personal Vehicle.
1) In accordance with State Law, each state agency must determine a tool for benchmarking mileage reimbursement. System Administration has chosen Google Maps, which should be used for all mileage reimbursements and is incorporated into the Concur Expense reimbursement system.
2) Mileage Reimbursement. An employee may be reimbursed for mileage when using their personal vehicle to conduct System Administration business. The milage reimbursement rate covers fuel, maintenance, insurance and all other vehicle operating costs.
3) If traveling by personal vehicle more than 130 miles in total, employees must use the Rental Vehicle vs. Mileage Reimbursement Calculator (authentication required) to compare the cost of a rental vehicle versus mileage reimbursement. Personal vehicle mileage reimbursement may not exceed the cost to obtain and use a rental vehicle unless there is a written justification documenting a determination that use of the personal vehicle is the most cost-effective considering all relevant circumstances. Include a copy of the calculations and all additional evidence relevant to the comparison with the reimbursement request.
4) To and From the Airport. An employee may be reimbursed for mileage to and from the airport from either the traveler’s residence or the traveler’s place of employment. Additionally, an employee may be reimbursed for the mileage incurred by another person transporting the employee to and from the airport. The reimbursement may not exceed the cost of one two-way trip to and from the airport in the employee’s personal vehicle plus parking at the airport.
5) Mileage Reimbursement Limitations.
i) Reimbursement requests must include a point-to-point itemization using the full physical addresses of the origin and destination points.
ii) Tolls and parking expenses incurred while using a personal vehicle for System Administration business are reimbursable in addition to the Mileage Reimbursement.
iii) Reimbursement is not provided for any travel directly between an employee’s personal residence and their assigned place of employment.
b) Rented Vehicles.
1) Mandatory Use of System Administration Contracts. Employees must secure car rentals through System Administration contract vendors to ensure that rental rates include insurance coverage. If there are no System Administration contract vendors available to provide the necessary rental vehicle, alternate services may be secured. In such a case, the collision/loss damage waiver should be obtained and is a reimbursable expense. A justification must be provided with the reimbursement request when a non-contracted vehicle rental vendor is utilized.
2) Reimbursable costs include the vehicle rental, taxes (other than the Texas Motor Vehicle Rental Tax), mandatory fees, and toll charges unless procured through a System Administration contract. Fuel and parking fees are also reimbursable. If a car is not rented through a System Administration contract, the traveler should present a Motor Vehicle Rental Tax Exemption Certificate (authentication required) to the vendor to ensure that Texas state taxes are removed from a vehicle rental.
3) Business and Personal Use. When an employee uses a rental vehicle for both personal reasons and System Administration business, only the portion attributable to System Administration business may be reimbursed. De minimis incidental use within a business rental is permitted and not considered personal use when it is minor or unavoidable, occurs during the authorized business rental period, and does not extend the rental period or increase costs.
4) Additional Charges. Charges for liability insurance supplements, personal accident insurance, roadside assistance fees, personal effects insurance, GPS, frequent flyer credit, satellite radio, unlimited toll services, and prepaid fuel options are not reimbursable. Non-business essential charges and services may not be reimbursed.
c) Coordination of Transportation. Travel coordination is required when employees could reasonably and efficiently travel together in the same vehicle. When employees from the same agency travel on the same dates with the same itinerary, they must coordinate travel. When four or fewer employees travel on the same itinerary, only one may be reimbursed for mileage. When more than four employees travel on the same itinerary, only one out of every four may be reimbursed for mileage.
6.2 Travel by Commercial Airline
a) The cost of commercial air transportation may not exceed the cost of a System Administration or State-contracted airfare, if available. If not available, then the lowest available fully refundable coach airfare may be used.
b) Mandatory Use of Contracted Airfare, Travel Agencies and Online Booking Tools. Travelers must use System Administration or State-contracted airfares, System Administration travel agencies, and online booking tools, unless one of the following exceptions applies. When one of these exceptions is used, it must be documented. Exceptions are as follows:
1) Lower total cost to System Administration;
2) Unavailability of contract travel services;
3) Special needs (related to health, safety, or disability);
4) The traveler is in the course of travel and changes in scheduling render the contract service provider unavailable or its use is impractical;
5) Emergency response; or
6) Legally required attendance- the traveler is required by court or other legal entity to appear at a particular time/place without sufficient notice to use contracted service provider.
c) Nonbusiness Travel. When an employee travels for both personal reasons and System Administration business, only the portion of airfare attributable to System Administration business may be paid by System Administration. If personal travel increases the cost of travel in any way, the employee will be responsible for the increased cost. Contract airfares may not be used solely for leisure, personal, or nonbusiness travel.
To accurately determine the amount to be paid by System Administration, the traveler must obtain a quote for the itinerary (airfare, ground transportation, etc.) that would be purchased if the trip only contained business travel. This quote must be obtained at the same time the actual travel expense is purchased.
If an accurate quote is not obtained prior to travel, the traveler will be responsible for reimbursing System Administration a proportionate amount based on the number of personal days relative to the entire length of the trip.
d) Non-employees. System Administration contract airfares are available for use when non-employees travel on behalf of System Administration and when travel is paid by System Administration. However, state-contracted airfares are not available to independent contractors or consultants working for System Administration.
e) First Class Airfare and Upgrades. With advance approval by a Department Head, first class or upgraded airfare may be purchased, without limitation as to the source of funds, if it is the only available airfare or if it is required due to medical or physical limitations as documented by an attending physician.
f) System Administration payment for upgrades, including the use of Southwest Airlines Choice Extra, are limited to executive officers and Regents. Executive officers and Regents may elect to upgrade the class of airfare if there is a documented business reason and institutional funds are used. State funds may not be utilized for the cost of such upgrades. An authorized signer must provide advance approval and documentation of the business reason, and documentation must be submitted as support for the payment of the upgrade.
g) Frequent Flyer Miles/Flight Credits. System Administration may not reimburse for tickets purchased with frequent flyer miles or personal flight/travel credits
h) Baggage. One checked bag fee is reimbursable. Additional fees are reimbursable only if supplemental baggage is required to transport state-owned equipment or materials (receipts and documentation are required).
6.3 Chartered Aircraft. Use of leased or chartered aircraft, including Texas Department of Transportation (“TxDOT”) aircraft, must be approved in writing and in advance by the Chancellor or designee and will be approved only when the U.T. System aircraft is unavailable or unsuitable. The use of charter aircraft requires advance coordination with System Administration Travel Services and the contract to be processed through Strategic Sourcing within the Office of the Chief Financial Officer. In addition, advance approval for any charter flight paid with State Funds must be obtained from the TxDOT. With applicable approval, an employee may charter an aircraft if the System Administration or State-owned aircraft is not available or if the charter would reduce the cost of transportation. Utilization of chartered aircraft must comply with all requirements of Regents’ Rule 20601: Aircraft Use.
6.4 Travel by Employee-Owned or-Leased Aircraft. No employee may operate aircraft owned or leased in the employee’s personal capacity in conjunction with official System Administration business unless authorized in writing by the Chancellor or designee. Utilization of aircraft owned or leased by an employee must comply with all requirements of Regents’ Rule 20601: Aircraft Use. A reimbursement may not exceed the aircraft mileage reimbursement rate established in the travel provisions of the General Appropriations Act and the highway mileage between the employee’s Designated Headquarters and duty point.
6.5 Travel by Mass Transit, Taxi, Ride Sharing, or Limousine. Cost efficient use of bus, rail, taxi, and ride sharing (such as Uber and Lyft) is permitted and reimbursable. Travelers must avoid upgraded ride share options and provide justification if a higher cost option is chosen. The cost of limousine transportation, car services, or bus services such as Vonlane may be reimbursed only if they were the most cost-effective mode of transportation available considering all relevant circumstances. A justification is required if not the lowest cost option.
Sec. 7 Meals and Lodging
7.1 General.
a) Same-Day Travel. Reimbursement for meals is not allowed as a travel reimbursement when a trip does not contain an overnight stay. Meals may still be reimbursable if they qualify as business or entertainment meals pursuant to HOP 2.1.2 (Sec. 4).
b) Texas State Occupancy Tax. Employees of System Administration are exempt from the Texas State Occupancy Tax when traveling on System Administration business in Texas. A traveler must present the lodging establishment with a completed Hotel Occupancy Tax Exemption Certificate (authentication required) upon check-in.
c) Non-reimbursable Expenses.
1) An employee may not be reimbursed for an expense that is not incurred while conducting System Administration business.
2) An employee may not be reimbursed under this policy for meals incurred within the employee’s Designated Headquarters unless expenses are mandatory and connected with training, a seminar, or a conference, and a statement is added to the reimbursement request stating such.
3) An employee may be reimbursed for meals incurred at an airport or other transportation terminal if the travel involves an overnight stay.
4) An employee may not be reimbursed under this policy for lodging expenses incurred within the employee’s Designated Headquarters.
5) An employee may not be reimbursed under this policy for expenses incurred by other individuals. An employee may only be reimbursed for his or her own expenses.
6) An employee may not be reimbursed under this policy for alcoholic beverages and associated tips.
7.2 Meals and Lodging.
a) Lodging and Accommodations. Employees may stay at the hotel of their choice; however, the costs must comply with the applicable GSA locality based maximum rates approved by the TxCPA. State Funds may be used to reimburse the Chancellor for actual lodging costs including up to two times the applicable GSA locality based rate.
b) Shared Lodging. If two or more employees share lodging, the expense must be divided equally between them to reflect each employee’s share of the lodging expense. For each traveler, the reimbursement may not exceed the maximum lodging reimbursement rate. When only one of the individuals sharing lodging is a state employee, the traveler may only be reimbursed the room rate for a single occupancy or the applicable maximum lodging reimbursement rate, whichever amount is less. Travel with the spouse of an employee is an exception to the single occupancy reimbursement requirement if the travel by the non-employee spouse has been authorized in a manner consistent with UTS 120. Any amount over the single occupancy reimbursement rate or the applicable GSA locality based maximum rate, whichever is less, must be paid from Institutional Funds.
c) Travel expense reimbursement is not a per diem. Reimbursement for meals and lodging is based on actual expenses. Reimbursements for meals on the first and last days of travel are limited to 75% of the daily total set by the GSA.
d) Travel Within the Continental United States Utilizing State Funds or Institutional Funds:
1) An employee may claim less than the maximum meal rate and apply the difference toward lodging but cannot apply unused lodging funds toward meal expenses. Lodging and meal expenses are applicable daily with no carryover from one day to the next.
2) If the locality-based rate for meals or lodging is exceeded, written justification is required, and any overages will be reimbursed with Institutional Funds.
3) If approved, actual meal expenses that exceed the locality-based rate will be reimbursed using itemized receipts for all meals incurred on that day.
e) Travel Outside the Contiguous United States Utilizing State or Institutional Funds. Itemized receipts are required for all expenses for travel to a United States Possession, Alaska, Hawaii, or a foreign country.
Sec. 8 Other Expenses
8.1 Parking.
a) Airport Parking. Employees may park in the lot or garage of their choice near the airport from which they are conducting business-related travel. Reimbursable airport parking expenses may not exceed the daily amount set forth on the Travel Services Airport Parking (authentication required) site. A receipt is required if the total equals or exceeds $75.
b) Valet Parking. Itemized charges for valet parking may be reimbursed if the traveler is staying at the lodging establishment or attending a meeting or conference at the establishment; otherwise, the expense is considered personal and is non-reimbursable.
c) Other. Other parking fees incurred away from an employee’s place of employment while transacting System Administration business may be reimbursed. The expense must be itemized on the reimbursement request.
8.2 Cancellation or Ticket Change Fees. A cancellation or change fee is allowable or reimbursable only if the charge is incurred for a business-related reason, personal emergency, illness, adverse weather conditions, or a natural disaster and is approved by the appropriate Department Head.
8.3 Free or Discounted Travel. An employee may not be reimbursed for travel if no expense has been incurred. Receiving free transportation or lodging in exchange for mileage, points, or other non-monetary credits does not constitute an expense for reimbursement purposes. In addition, an employee may not be reimbursed for the value or cost of a discount on a travel expense unless the employee paid money to obtain the discount. Discounts received as a benefit of making unrelated purchases or conducting unrelated business with the provider of the discount are considered to be provided free to the employee. If money is paid directly to obtain a discount, the reimbursement is limited to the lesser of the cost of obtaining the discount, the amount of the discount, or the maximum reimbursement allowed for that type of travel expense.
8.4 Tips and Gratuities
a) Institutional Funds. Tips and gratuities paid with Institutional Funds must not exceed 25% of the pre-tip total, unless mandated by the vendor. Tipping of non-expensed services (such as housekeeping, shuttle drivers, bellhops, etc.) should be no greater than $5 per instance, and excessive tips may be disallowed by the Office of the Chief Financial Officer. All tip amounts must be itemized.
b) State Funds. Tips and gratuities may not be reimbursed with State Funds.
Sec. 9 Other Exceptions
Exceptions to this travel policy may be approved when necessary to meet special circumstances or when in the best interest of System Administration. Requests for exceptions must be documented, explained by the traveler, and approved in advance when feasible by the Appropriate Executive Officer. Exceptions may also be subject to review by the Associate Vice Chancellor, Controller or the Associate Vice Chancellor, Deputy Chief Financial Officer.
Definitions
Appropriate Executive Officer – the executive officer having responsibility over the individual seeking payment of an expense under this policy. For the Chancellor, the Appropriate Executive Officer is the General Counsel to the Board of Regents. For the General Counsel to the Board of Regents, this is the Chancellor. For executive officers other than the Chancellor requesting payment or reimbursement, the Chancellor is the Appropriate Executive Officer. The Chancellor may delegate this approval to his or her Chief of Staff or the equivalent.
Department Head – The individual with budget authority over a cost center from which travel expenses may be reimbursed or paid. Through this policy, the Chancellor has designated that Department Heads may approve foreign travel paid from State Funds as allowed by Texas Government Code, Section 660.024(c).
Designated Headquarters - The area within the boundaries of the incorporated municipality in which a System Administration employee's place of employment is located. If an employee's place of employment is located within an unincorporated area, then the area within a five-mile radius of the place of employment is the employee's designated headquarters. If an incorporated municipality or an unincorporated area is completely surrounded by the incorporated municipality where an employee's place of employment is located, then the employee's designated headquarters includes the surrounded municipality or area, per Texas Government Code Section 660.002(7).
Institutional Funds – For purposes of this policy, all funds at System Administration that are not appropriated and not considered State Funds by System Administration.
State Funds (Appropriated Funds) – Monies appropriated under the General Appropriations Act. At System Administration, these include funds paid from any cost center beginning with “21,” or “25.”
Remote Worker – an employee with a work arrangement in which the employee’s personal residence is designated as the employee’s regular or assigned temporary place of employment by written authorization from the Chancellor.
Teleworker – an employee with a work arrangement practice that allows an employee to conduct on a regular basis all or some institutional business at a place other than the employee’s regular or assigned temporary place of employment during all or a portion of the employee’s established work hours. For purposes of this policy, a Remote Worker is not a Teleworker.
