UCSF School of Medicine · 2018-01-08 · UCSF School of Medicine. Dean's Office. ... This 45 day practice has been established in order to conform to IRS rules. ... The price comparison

Overview for ExceptionalTravel Expenses

UCSF School of MedicineDean's Office

Simon SchusterPrincipal Business & Compliance AnalystSOM Dean’s Office Financial Affairs Unit

October 15th, 2017

Travel

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Changes to UC TravelRegulations (Policy G-28)Effective October 15, 2017

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Expense Reports SubmittedAfter 45 Days

About this practice:

Expense reports should be submitted and approved no later than 45 days after the completion of a trip or event. If an expense report for travel and other expenses is submitted and approved after 45 days, the expense report will be reimbursed but payment may be reported to the IRS as taxable income to the individual being reimbursed.

Why has this practice been implemented?

This 45 day practice has been established in order to conform to IRS rules. Outside tax counsel has recommended this action in order to better protect travelers/individuals from having their reimbursements reported as taxable income to the IRS and the University from paying penalties for not reporting these late reimbursements to the IRS.

What is the risk if we don’t report “expense reports” over 45 days as taxable income?

We run the risk of our expense reporting plan being disqualified if we do not report “expense reports” submitted 45 days after the completion of the trip or event as the individual’s taxable income to the IRS. Should our expense reporting plan be disqualified, the IRS will require all our expense reimbursements to be reported as taxable income of the travelers/ individuals being reimbursed regardless of the submission timeframe.

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As you plan travel beyond October 15,please keep these new limits in mind:

1. Meals and Incidental Expenses (allowance for when a traveler eats alone).

New daily limit of $62 per person.

·No exceptions for costs exceeding the $62 limit can be approved or paid.

·Reminder – daily meals and incidental expenses shall be based on the actual amounts incurred. The M&IE limit of $62 per day shall not be treated as a per diem, and expenses should be limited to actual reasonable costs. Travelers should be required to submit meal receipts if it appears that they are treating the limit as a per diem by routinely claiming the full M&IE amount.

This is the daily limit for meals eaten alone, not the business meeting and entertainmentper person limits which remain unchanged e.g. $81 per person for dinner

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2. Lodging Expenses – new cap of $275 nightly room rate.

• New cap of $275 nightly room rate excluding taxes for travel assignments of less than 30 days within the Continental United States.

• Unless there are documented extenuating circumstances, the traveler will be reimbursed for actual costs up to the $275 policy limit.

What does this mean?

If:

1. The traveler provides written justification along with additional documentation such as price comparisons within the proximity of the meeting location that supports the higher lodging rate,

2. The price comparison is performed at the time of booking (it is recommended that travelers use the address of their event or conference and search for hotels within a 2-5 mile radius).

The traveler does not need to send the higher room rate reimbursement request tothe Dean’s Office for exceptional approval.

Travelers attending a conference where the prearranged conference lodging rate exceeds the $275 per night cap.

• The traveler may stay at the conference hotel,

• The traveler or delegate should add a comment to the expense report explaining the conference was held at the hotel and recommended by the conference. In addition, the traveler or delegate shall provide a screenshot or other documentation showing the recommended conference hotels.

Lodging booked prior to October 15, 2017 where the lodging stay takes place after October 15, 2017

• The traveler or delegate should add a detailed comment to the expense report explaining why the $275 limit is being exceeded and why they are unable to book at another hotel which does not exceed the cap, along with any supporting documentation justifying the spend over this cap.

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In addition, similar situations do not require SOM Dean’s Office exceptional approval:

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When does a hotel reimbursement need to go to The Dean’s Office for exceptionalapproval?

When the room rate is in excess of $275 per night and:

1. The comparison room rate dates are not the same as the actual dates stayed,2. Price comparison room does not match the room type stayed in,3. No justification or other non-financial reason for exceeding $275 per night,4. Paying for another traveler’s hotel stay,5. Personal guest(s) accompanying the traveler.

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Highlights Of Other Key Travel Policy Changes:

Reimbursement Standards - Expenses paid by a third party• New policy allows for temporary University funding of travel expenses that

will be paid by a third party.

Other Ancillary Charges• Exceptional approval no longer needed for reimbursement of extra airline

charges such as carry-on baggage fees, early check-in or priority boarding,higher cost Economy Plus or Extra Comfort, etc.

Other Forms of Transportation – Motorcycles• Motorcycle use only allowed and reimbursable by the University police

department and in foreign locations (where cars are not available).

Can you hear it ring?It makes you want to sing!Such a beautiful thing, Ka-Ching!!

Business & First-Class Travel

• An itinerary involves overnight travel without an opportunity for normal rest before the commencement of working hours.

Other factors such as jet lag, time differences, prior working hrs. etc. can be considered.

• Business class is necessary to reasonably accommodate a disability or medical need of a traveler. (Attach copy of medical provider’s note in expense report, valid within a year of travel.)

In addition, when the flyer is taller than 6’3”, business class travel will be allowed without a medical note.

First Class. When booking non-coach seating, first class may only be purchased when it is the only additional class offered above economy.

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• When attending a conference more than 40 miles away, over night stay 24hrs before the start date of the conference is allowed. In addition, overnight stay on the last day is also allowed with justification. Exceptional expense approval not required.

• Extra days other than above require exceptional expense approval and justification.

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Conference Dates

• Actual travel expenses may be reimbursed for spouses/ families whoaccompany candidates for faculty or high-level administrative positions onfinal interviews.

• Travel expenses with spouses/families on final interviews is an exceptionalexpense that require exceptional approval.

• Spousal travel expenses may not be charged to state funds.

For Interviewees (spouses only allowed on final interviews) actual transportation expenses shall not exceed one round-trip coach airfare between the prospective employee's current residence and the interview location for each round of interviews. Subsistence and non-personal miscellaneous expenses also may be reimbursed.

Final Interviews

• Airbnb, while not recommended, is allowed to be used and costs will be reimbursed without pre-approval.

NOTE: Watch this space as UCOP and the city are in separate discussions on the future of Airbnb expenses.

Lodging with

Exceptional Expense Policies

UCOP UCSF

• G-28 (Travel) • 300-37 (General Travel)• 300-38 (Travel Reimbursement

and Per Diems)

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SOMExceptional

Expense Cheat Sheets

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Contacts

Contacts• SOM Contacts:

• Simon Schuster: [email protected] (415) 502-0760

• Denise Lau: [email protected] (415) 514-3002

•Accounts Payable Contacts:• CO AP Customer Center: [email protected]

or (415) 476-2126

• Alexandra Jalali: [email protected] (415) 476-8461

• Helen Szeto: [email protected] (415) 476-3656

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