MICHR PCARD & TRAVEL POLICIES
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Please review the following PCard, Travel and Policies. When completed, please fill out the certification form to verify that you have read, understand and agree to follow the MICHR Pcard and Travel Policies. Failure to adhere to this policy will result in the loss of p-card and/or reimbursement privileges.
PCARD POLICY
Please understand that the PCard is a privilege, therefore it may be revoked if the cardholder does not adhere to both MICHR and University policies.
Single transactions for supply items or services may not exceed $5,000. A transaction can not be split up to avoid the transaction limit. The name which appears on the p-card is the individual responsible for the activity that takes place. No one other than the card holder is to make purchases on the card and if erroneous charges appear, it is the card holder's responsibility to follow up and dispute theses charges. The following are some examples of allowable and unallowable PCard expenses.
| ALLOWABLE EXPENSES | UNALLOWABLE EXPENSES |
| Hosting | Meals & Incidentals While on Travel Status |
| Car Rental | Furniture, Window Coverings, Carpet, etc. |
| Hotel | Special Handling Items (i.e., Radioactivity) |
| Subject Fees | Tuition |
| Membership Dues | Personal Expenses |
| Conference Registrations | Tuition |
| Membership Dues | Computer Equipment, Palm Pilots, etc. |
| Subscriptions | Items available through University |
| Services (under $5,000) | ATM Withdrawals |
| Postage |
In addition, please keep in mind that when using federal funds A-21 guidelines must be followed and they may conflict with expenses that would otherwise be allowable. Complete A-21 guidelines can be found at: http://www.research.umich.edu/policies/federal/a-21.html.
Receipts
Cardholders must obtain and keep all itemized receipts. Receipts should include a clear description of the purchase. Cardholder must indicate on the receipt where the expense should be charged. Exception memos will not be accepted in place of a missing receipt. If a receipt is missing, and cannot be obtained, the cardholder will be responsible for reimbursing the University for that expense. Try to avoid paying sales tax when possible by mentioning the University's tax exemption number 38-6006309 (this may not be honored in all states).
All PCard receipts must be submitted by the cardholder to the reconciler by the 18th of each month. The reconciler is responsible for submitting the reconciled statement to the reviewer (Finance Team) by the 25th of each month.
HOSTING POLICY
Before hosting an event prior approval must be obtained from MICHR management. To obtain approval a Hosting Approval Request Form must be submitted to the Managing Director or the Assistant Managing Director. This form can be found on the shared drive at: \MICHR\Public\MICHR Staff\Staff\Forms. When approval is obtained a copy should be retained by the requester and the original should be provided to the Finance Team. Expenses will not be covered if prior approval was not obtained. After the hosted event a PCard Hosting Documentation Form must be completed and submitted with the PCard Statement detailing such information as the business purpose of the event, date, amount, event identifier number, vendor, contact person and a list of attendees.
The following meal limits apply when hosting an event:
- Breakfast $25 per person
- Lunch $25 per person
- Dinner $55 per person
- Alcohol $20 per person - Requires specific MICHR management approval
- Birthdays
- Births (Baby Showers)
- Anniversaries
- Boss' Day, Administrative Professionals' Day
- Any other event deemed personal in nature
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TRAVEL POLICY (Employees)
Majority of the following paragraphs are taken directly from the University of Michigan SPG, 507.10-2.
Travel Advances
In order for travel advances and reimbursements of travel expenses to be excluded from a traveler's taxable income, the University's travel policies must meet the IRS requirements for an "accountable plan," therefore:
- Advances and reimbursements must be reasonable in amount, must be made for travel and hosting only, must be in line with actual costs incurred and within policy limitations. Expenses that do not comply with policy guidelines will be the obligation of the individual that incurred the expense.
- Travelers must submit the Travel and Business Hosting Expense Report form, substantiating the amount, date and use and business purpose of expenses, ideally within ten days of the completion of the trip or date of hosted event but no later than 45 calendar days. Expenses submitted in excess of 45 calendar days will not be reimbursed. Required receipts must be attached to the expense submission. If the required receipts are not attached
- Employees must return any advance amount in excess of allowable substantiated expenses within 45 calendar days after the completion of the trip or date of the hosted event.
Documentation and Receipt Requirements
The overall, specific business purpose of the trip should be clearly stated on expense submissions. Business purpose should include information such as:
- People involved
- University affiliation
- Business topics covered
Required receipts must be attached to the PCard statement or Travel and Business Hosting Expense Report. Receipts must contain appropriate detail, including starting and ending destinations, itemized hotel charges, and detailed item charges. A specific business purpose for the expenditure must be noted on every expense submitted. Receipts are required for the following:
- Lodging (hotel)
- Air, rail and rental cars
- Taxi transportation between airport and destination
- All single expenditures greater than $75
The traveler's administrative assistant will obtain event identifiers for each trip or event. If there is more than one traveler on a single trip only one event ID is necessary.
Lodging
The University will reimburse lodging expense at a reasonable single occupancy, standard business room rate, which would be incurred routinely by a regular business traveler. The traveler should select the least expensive option available, taking into consideration proximity to the business destination and safety. The traveler or the travel arranger must inquire about the government rate available, the Big Ten consortium rate, or the conference lodging rate and select the lowest available rate. When the hotel or motel is the conference or convention site, reimbursement will be limited to the conference rate, if available.
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Traveling by Air
It is highly recommended that travelers utilize the University's designated Travel Agency for agent assisted calls (1-214-915-9473 or 1-888-252-8504). The University will reimburse for the cost of coach airfare. Travelers should always select the lowest price airfare within the bounds of the most logical schedule. All flights should be booked at least 14 days in advance. Flights booked with less than 14 days advanced purchase require a written explanation for the booking delay for the approver. Approvers may deny charges that result from last minute airline booking. Federal regulations prohibit the use of federal funds for purchase of business or first class air travel for domestic flights. First class/business class is only allowable when the University traveler is accompanying a major donor or dignitary flying first/business class. Business class is reimbursable for international flights when the portion of the flight that is nonstop exceeds 8 hours in duration. Pre-trip approval from a senior University official is required. In addition, federal regulations require that U.S. carriers be used for both foreign and domestic travel, unless one is not available. In the event that a traveler requires a flight change, explanation of flight changes that incur additional costs are required. Travelers must state the business reason for the need to alter the flight reservation and the total cost of the flight should be evaluated and approved as reasonable by the approver when completing the final expense report submission.
An airline itinerary and receipt are required for documentation of airfare costs (confirmation alone is not adequate, documentation must include the dollar amount).
Traveling by Rail
The University will reimburse the cost of train fare when it is less than the cost of coach airfare and airport transportation costs.
Rental Vehicles
When a rental car is necessary, it is recommended that reservations be made through the University's designated travel agency at 1-214-915-9473 or 1-888-252-8504. This will ensure that proper waivers are met and University rates are acquired. Risk Management advises that travelers should decline all collision insurance (Loss Damage Waiver or Collision Damage Waiver) on rental vehicles, because the University self-insures for commercial rental vehicle loss/damage. However, when traveling to destinations outside of the continental U.S., with the exception of Canada, University Risk Management recommends that travelers accept collision insurance.
In the event of an accident while driving a rental vehicle contact the Risk Management Office for claim handling at http://www.umich.edu/riskmgmt/.
Reimbursement will be made for reasonable charges for gasoline. Maintenance and oil changes are the responsibility of the rental company and will not be reimbursed by the University.
Use of Private Vehicles
At times a personal vehicle may be used in order to save time, transport equipment or reduce costs when several people are traveling together. Reimbursement is calculated per-mile based on the current reimbursement rate, which can be found at http://www.procurement.umich.edu/travelexpense.html. The current University rate, as of January 1, 2009, is 55 cents per mile. This reimbursement may not exceed the maximum allowable rate for federally sponsored programs, and is limited to the amount of coach airfare. Tolls and reasonable parking charges will be reimbursed in addition to the mileage allowance. The University generally does not reimburse local in-town mileage (i.e., travel between University buildings for meetings), parking/tolls or commuting costs. When extensive in-town travel is required as a part of an employee's job, exceptions may be made with approval from the appropriate senior University official and with notice to the Director, Procurement Services.
The University does not assume liability for damage to personal automobiles used on University Business and does not assume liability for deductibles or any other uninsured loss to the vehicle. Liability insurance protection will be provided as excess coverage only after the private owner's personal liability insurance limits are exhausted when the vehicle is used for business purposes. Cost of repairs to a vehicle, whether or not they result from the traveler's acts or not, are not reimbursable.
The University does not assume liability for damage to personal automobiles used on University Business and does not assume liability for deductibles or any other uninsured loss to the vehicle. Liability insurance protection will be provided as excess coverage only after the private owner's personal liability insurance limits are exhausted when the vehicle is used for business purposes. Cost of repairs to a vehicle, whether or not they result from the traveler's acts or not, are not reimbursable.
When traveling to/from the airport (or other business entity) the lesser of mileage from work (Ann Arbor) to/from airport or home to/from airport may be claimed. When claiming other mileage you must obtain a printout documenting actual mileage for reimbursement. For assistance in determining miles that may be claimed please use www.mapquest.com or http://maps.yahoo.com/dd. Note that fuel costs are included in the per-mile reimbursement rate.
Other Transportation
Expenses for memberships in travel/airline clubs and/or daily club use are not reimbursable. Most airlines are now charging for checked luggage and for curbside check-in. In the event there is a charge for checking luggage, the University will reimburse for a maximum of 2 pieces of checked luggage. Baggage charges incurred for excess weight will not be reimbursed, unless an appropriate business purpose explanation is provided.
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Per Diem/Travel Allowance (Meals and Incidentals)
Travelers will be provided a per diem rate for travel days in accordance with the United States General Service Administration (GSA) rate tables (www.gsa.gov). Rates will vary based on destination.
Per diem rates include both the cost of meals and incidental expenses. Incidental expenses include: fees and tips given to porters, baggage carriers, bellhops, hotel housekeeping, stewards or stewardesses, and hotel staff, transportation between places of lodging or business and restaurants, mailing costs associated with filing expense reports due to the University. Incidental expenses cannot be reimbursed separately as they are included in the per diem rate.
Travelers are eligible for 75 percent of the total per diem rate on the first and last day of travel and on single day trips where continuous travel is equal to or greater than 12 hours. No per diem will be reimbursed for single day trips totaling less than 12 hours. Per diem meals and incidental expenses do not require receipts. Meals and incidental expenses in excess of the per diem are not reimbursable.
Note: If meals are provided to the travelers by another entity (i.e., lunch at the conference you attend) that must be noted and will be deducted from the per diem.
Miscellaneous Expenses
Reimbursable expenses include, but are not limited to the following:
- Business office expenses (copy services, postage) and business related phone calls/faxes/internet fees
- Calls home that are reasonable in duration and amount
- Conference calls
- Costs related to travel visas when required as part of job performance
- Currency conversion fees
- Laundry or cleaning expenses on trips lasting 7 days or more
- International travel health insurance
- Clothing or toiletry items
- Commuting between home and campus
- Country Club dues
- Expenses related to vacation or personal days taken before, during or after a business trip
- Loss Damage Insurance when University agency is available and another auto agency is utilized
- Loss or theft of cash advance money or airline tickets
- Loss or theft of personal funds or property
- Lost baggage
- Luggage or briefcases
- Personal reading materials
- Medical expenses while traveling
- Movies
- Personal entertainment
- Pet care
- Recreational expenses
- Saunas, massage
- Shoe shines
- Souvenirs or personal gifts
- Travel accident insurance premiums
- Laundry, cleaning, pressing costs for trips of less than 7 days
- Traffic citations, parking tickets, court fees and other fines
- Mini-bar charges
- Airline, car and card membership dues and club fees; travel upgrade fees (air, rail, car)
- Childcare costs
- No-show/cancellation fees or fees related to hotel late check-out
Extended Stays
All extended stays must have prior approval from the Finance Team. Travelers choosing to extend a trip in order to save on travel costs must provide documentation of the higher rate (i.e., website printout including dates and cost both with and without the extended stay). Be sure to include the cost of the hotel for the extra night(s) as well as airfare. A memo explaining the extended stay and cost breakdowns should be included with the travel report and receipts.
Additionally, if planning to stay over for vacation the traveler must discuss this with the Finance Team prior to traveling and also provide documentation of what the travel costs (ie. airfare) would be if he/she returned home immediately following business. When staying over for vacation, please note that the traveler is no longer on business travel status as soon as the business part of the travel has concluded, therefore no additional expenses will be reimbursed. Please discuss any logistical questions or concerns with the Finance Team when obtaining prior approval.
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TRAVEL POLICY (Students and Guests)
Travel expenses may be paid via a PCard, with funds from a travel advance (students only), or with personal funds.
Travel Advances (Students Only)
In order for travel advances and reimbursements of travel expenses to be excluded from a traveler's taxable income, the University's travel policies must meet the IRS requirements for an "accountable plan," therefore:
- Advances and reimbursements must be reasonable in amount, must be made for travel and hosting only, must be in line with actual costs incurred and within policy limitations. Expenses that do not comply with policy guidelines will be the obligation of the individual that incurred the expense.
- Travelers must submit the Travel and Business Hosting Expense Report form, substantiating the amount, date and use and business purpose of expenses, ideally within ten days of the completion of the trip or date of hosted event but no later than 45 calendar days. Expenses submitted in excess of 45 calendar days will not be reimbursed. Required receipts must be attached to the expense submission. If the required receipts are not attached
- Travelers must return any advance amount in excess of allowable substantiated expenses within 45 calendar days after the completion of the trip or date of the hosted event.
Documentation and Receipt Requirements
The overall, specific business purpose of the trip should be clearly stated on expense submissions. Business purpose should include information such as:
- People involved
- University affiliation
- Business topics covered
Required receipts must be attached to the PCard statement or Travel and Business Hosting Expense Report. Receipts must contain appropriate detail, including starting and ending destinations, itemized hotel charges, and detailed item charges. A specific business purpose for the expenditure must be noted on every expense submitted. Receipts are required for the following:
- Lodging (hotel)
- Air, rail and rental cars
- Taxi transportation between airport and destination
- Meals
Lodging
The University will reimburse lodging expense at a reasonable single occupancy, standard business room rate, which would be incurred routinely by a regular business traveler. The traveler should select the least expensive option available, taking into consideration proximity to the business destination and safety. The traveler or the travel arranger must inquire about the government rate available, the Big Ten consortium rate, or the conference lodging rate and select the lowest available rate. When the hotel or motel is the conference or convention site, reimbursement will be limited to the conference rate, if available.
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Traveling by Air
It is highly recommended that travelers utilize the University's designated Travel Agency for agent assisted calls (1-214-915-9473 or 1-888-252-8504). The University will reimburse for the cost of coach airfare. Travelers should always select the lowest price airfare within the bounds of the most logical schedule. All flights should be booked at least 14 days in advance. Flights booked with less than 14 days advanced purchase require a written explanation for the booking delay for the approver. Approvers may deny charges that result from last minute airline booking. Federal regulations prohibit the use of federal funds for purchase of business or first class air travel for domestic flights. First class/business class is only allowable when the University traveler is accompanying a major donor or dignitary flying first/business class. Business class is reimbursable for international flights when the portion of the flight that is nonstop exceeds 8 hours in duration. Pre-trip approval from a senior University official is required. In addition, federal regulations require that U.S. carriers be used for both foreign and domestic travel, unless one is not available. In the event that a traveler requires a flight change, explanation of flight changes that incur additional costs are required. Travelers must state the business reason for the need to alter the flight reservation and the total cost of the flight should be evaluated and approved as reasonable by the approver when completing the final expense report submission.
An airline itinerary and receipt are required for documentation of airfare costs (confirmation alone is not adequate, documentation must include the dollar amount).
Traveling by Rail
The University will reimburse the cost of train fare when it is less than the cost of coach airfare and airport transportation costs.
Use of Private Vehicles
At times a personal vehicle may be used in order to save time, transport equipment or reduce costs when several people are traveling together. Reimbursement is calculated per-mile based on the current reimbursement rate, which can be found at http://www.procurement.umich.edu/travelexpense.html. The current University rate, as of January 1, 2009, is 55 cents per mile. This reimbursement may not exceed the maximum allowable rate for federally sponsored programs, and is limited to the amount of coach airfare. Tolls and reasonable parking charges will be reimbursed in addition to the mileage allowance. The University generally does not reimburse local in-town mileage (i.e., travel between University buildings for meetings), parking/tolls or commuting costs. When extensive in-town travel is required as a part of an employee's job, exceptions may be made with approval from the appropriate senior University official and with notice to the Director, Procurement Services.
The University does not assume liability for damage to personal automobiles used on University Business and does not assume liability for deductibles or any other uninsured loss to the vehicle. Cost of repairs to a vehicle, whether or not they result from the traveler's acts or not, are not reimbursable. Under no circumstances will the University reimburse for parking fines or moving violations.
When traveling to/from the airport (or other business entity) the lesser of mileage from the UM location (Ann Arbor) to/from airport or home to/from airport may be claimed. When claiming other mileage you must obtain a printout documenting actual mileage for reimbursement. For assistance in determining miles that may be claimed please use www.mapquest.com or http://maps.yahoo.com/dd. Note that fuel costs are included in the per-mile reimbursement rate.
Other Transportation
Expenses for memberships in travel/airline clubs and/or daily club use are not reimbursable. Most airlines are now charging for checked luggage and for curbside check-in. In the event there is a charge for checking luggage, the University will reimburse for a maximum of 2 pieces of checked luggage provided receipts are obtained. Baggage charges incurred for excess weight will not be reimbursed, unless an appropriate business purpose explanation is provided.
A receipt must also be obtained for all cab/taxi expenses.
Meals
Travelers should only pay for their own meals while on travel status. If you are dining with others please ask for a separate receipt. Meal expenses are not allowed for one day trips. Likewise, meals prior to traveling (i.e., breakfast at the airport) or after returning from travel, (i.e., dinner at the airport) are at the traveler's expense. Itemized receipts are required for all meals, regardless of amount. If itemized receipts are not obtained, the traveler will not be reimbursed.
Meals while on travel status may not exceed the following amounts (this includes tax and gratuity):
- Breakfast $15
- Lunch $20
- Dinner $40
An itemized receipt should be obtained for room service charges, as well. Simply including the hotel bill is not sufficient.
Tipping
MICHR allows tips at the following rates:
- Meals: 15-20% based on service
- Door/Bellman: $1 per bag
- Cabs/Taxi/Shuttles: 10%
- Housekeeping: Not Allowed
Extended Stays
All extended stays must have prior approval from the Finance Team. Travelers choosing to extend a trip in order to save on travel costs must provide documentation of the higher rate (i.e., website printout including dates and cost both with and without the extended stay). Be sure to include the cost of the hotel for the extra night(s) as well as airfare. A memo explaining the extended stay and cost breakdowns should be included with the travel report and receipts.
Additionally, if planning to stay over for vacation the traveler must discuss this with the Finance Team prior to traveling and also provide documentation of what the travel costs (i.e., airfare) would be if he/she returned home immediately following business. When staying over for vacation, please note that the traveler is no longer on business travel status as soon as the business part of the travel has concluded, therefore no additional expenses will be reimbursed. Please discuss any logistical questions or concerns with the Finance Team when obtaining prior approval.
Revised 10/01/09
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