June 1, Final Report Travel Solution Development Team

Transcription

1 June 1, 2015 Final Report Travel Solution Development Team

2 Table of Contents I. Introduction 1. General Information 2. Background Information and Purpose of Project II. Key Questions from Project Charge 1. What are the travel policies that seem to have the greatest amount of misunderstanding? 2. How are we engaging clients to ensure they are aware of travel processes and policies? 3. What are areas where our clients believe we are applying travel policies in a more restrictive way than other campuses? 4. How can we ensure we are proactively getting client feedback about their experience with the travel processes on campus? 5. What tools do other campuses use to process travel-related requests? 6. What would an implementation plan and timeline look like to develop an automated solution(s) to the current travel processing concerns? Appendix A Project Charge Appendix B Option Finder Exercise Appendix C Travel Policy Appendix D Summary of Root Cause Analysis Appendix E Benchmark Survey with other UCs Appendix F Process Map (Current State) 2

3 I. Introduction 1. General Information Project Name: Travel Solution Development Team Project Sponsor: VC Sarah Latham Project Co-Leaders: Marie Logan, Director, BAS-ORM Ed Moran, Team Leader General Accounting, Financial Affairs Team Members: Lynne Boccignone, Accounting Supervisor, Accounting Services April Kerkes, Finance Manager, Arts Division, (BMAG) Lars Panzer, Administrative Analyst, BAS-ORM Erica Ray, Supervisor, Financial Services (FAST) Patti Schell, Dept. Manager, PBSci, Chemistry & Biochemistry Dept., (ABOG) Patti Walker, Program Analyst, Risk Services Ellen Ziff, Executive Assistant to AVC, Colleges, Housing & Educational Services (CHES) Deadline: Background Information and Purpose of Project (See Appendices A and B) Campus stakeholders have been engaged through a series of venues including Business Process Roundtables, electronic surveys, and other avenues of direct input to get feedback on BAS-related activities. Through this feedback process, the travel reimbursement process has emerged as one of the main areas with potential for improvement. 3

4 II. Key Questions from Project Charge 1. What are the travel policies that seem to have the greatest amount of misunderstanding? (See Appendix C and D) - Overall lack of policy knowledge and understanding on the part of travelers (UCSC staff members and visitors) and department and division staff who process forms - Travel process and practices are not clear - more specifically, confusion over: o There are differing audiences for the travel policy and process information. The online information available is not presented so that these differing audiences can understand clearly how travel policy and practices apply to them o What information is required to process travel reimbursements? o What form should be used? Confusion concerning the Travel Advance Request form (TAR) It gets used even when no advance is being requested because some units use it simply to communicate the budget for a trip. There is no other convenient way to document the trip budget. o Is a travel advance needed and allowed in a particular situation? o What payment method would be best for the situation (e.g.: ACH, paper check?) The economic circumstances of the traveler is often a driving factor in this decision o Issues surrounding signatures What approval signatures are required on travel reimbursement documents? There are different channels for approvals depending upon the funding source used for travel (e.g.: Research-related travel reimbursements must go through a different approval process with different signatures compared to simple department funded reimbursements.) - Varying policies within divisions (e.g. some divisions require receipts not required by policy) o Local preferences; some units/divisions want more scrutiny and a higher degree of control. Higher degree of scrutiny/control wanted because there may be stricter documentation requirements on various sponsored awards Higher degree of scrutiny/control wanted in order to avoid risks; Note: More control or scrutiny does not necessarily lower risks. Oftentimes this is just the perception. o Other UC s set higher dollar thresholds for Accounting s mandatory review of travel reimbursement transactions and instead focus on postaudits. The UC campuses, which rely heavily on Accounting post audit review, place a heavy reliance upon the initiating department or 4

5 division to insure that the travel expenses and related documentation are policy compliant. (NOTE: In order to fully understand this comment, one would need to understand the full control framework in place at other campuses to understand how this higher dollar threshold works within their whole framework.) - Some policies may have changed and divisions may not be aware of the changes. People might not be aware that older policy versions are outdated - Common sources of misunderstanding and confusion with regard to 204- Form are: o The ambiguous name of this form and its exact purpose o The requirement to provide the entire SSN when the person is not a service provider (The SSN is currently required because a unique vendor identifying number is needed in Banner.) o The use of the form. The 204 is also used for vendors, adding to the confusion for travelers - Intercampus mail causes delays and complication to the process o There is no campus mail pickup on Fridays, delaying the travel reimbursement process in some cases. o We require documents to be sent through the mail because we require wet signatures and don t currently have an electronic workflow alternative - Unrealistic expectations about timelines and lack of knowledge about how long it usually takes to process travel reimbursements. 2. How are we engaging clients to ensure they are aware of travel processes and policies? - Clients are engaged via the following methods, tools and communication channels: o Travel Guide o Website Complete Travel Guide and policy available online with references to UC policy o Campus HELP resources - available to all campus users to assist with travel questions in real time FAST/AP Help Line via telephone travelhelp@ucsc.edu - assistance o Travel training Offered regularly to the campus community The training offered is general in nature and does not cover all areas No training available to visitors 5

6 3. What are areas where our clients believe we are applying travel policies in a more restrictive way than other campuses? - Some campus units require receipts even when the dollar amount is lower than 75 Dollars, but this is less about UCSC as a whole being more restrictive than other campuses, and more about specific UCSC campus units choosing to institute more restrictive practices than UC policy requires. This situation may create an impression that UCSC is more restrictive than other campuses. - The lack of technological support can falsely give travelers the impression that UCSC is more restrictive (e.g. wet signature requirement) 4. How can we ensure we are proactively getting client feedback about their experience with the travel processes on campus? - Conducting a survey at the end of travel trainings (this is currently being done) - Through individual outreach and soliciting feedback whenever engaging with past or current travelers. - Work with individual academic divisions and other campus departments to identify opportunities to engage a wide audience of campus constituents (unit department meetings, academic retreats, etc.) 5. What tools do other campuses use to process travel-related requests? 5.1 Benchmark with other UCs (See Appendix E) A Benchmark-Study was conducted with the other UCs in order to learn more about their travel reimbursements processes, tools and best practices. For this purpose a comprehensive questionnaire was sent out to the other 9 UCs. 7 UCs provided their feedback. - 3 out of 7 UCs have implemented an in-house software solution for processing travel reimbursements. San Francisco and Davis have chosen Concur for electronic support. - All other UCs except Santa Barbara are able to capture and store expense documentation electronically. - All other UC s except Santa Barbara are able to route travel expense reimbursement requests electronically and obtain electronic approvals. - None of the other UC s use a true electronic signature authentication system, and many of them use their campus employee authentication as a means for verifying the identity of the user who is signing off on a transaction. - Only at UC Irvine is a traveler able to complete an online registration form (via a separate system) to establish himself/herself as a vendor in the A/P- System. 6

7 - All UCs use the same form/registration process for new A/P vendors who will receive travel expense reimbursements vs. new vendors who will receive other types of payments. - Some UC s only collect the last 4 digits of the SSN as their unique identifier when establishing a new travel reimbursement recipient in their vendor payment system. - Most UC s automatically capture any pre-trip travel cash advances when a traveler is preparing their post travel expense reimbursement paperwork. - 5 out of 7 UC s process pre-trip travel cash advances through the same system as post travel expenses. Out of those 5 UC s, 4 UC s are also able to collect the necessary pre-trip approvals electronically. 5.2 Current Situation at UCSC - Financial Affairs (FAST and FAR) are operating the travel process with old technologies. o Electronic workflow for reimbursements in general is not adequate, there is no electronic interface with FIS (Banner) and there is no electronic workflow for on-line travel reporting. The Payroll-System does not interface with FIS (Banner). Employee-Travelers have to sign up for direct deposit twice. Data entry into FIS is required in Financial Affairs for travel invoices (e.g. hotel direct bill invoices); there is no automated way of uploading payment related information from other systems Connexxus: Direct bill airfare transactions are required to be entered manually into FIS via a monthly journal o The travel reimbursement process is currently a manual paper process. There is a lot of duplication of effort due to the manual nature of the process TAR and Post Travel-Forms are not automated or linked and cannot be populated automatically o There is no means for capturing an electronic signature E-verification software is not available for e-signatures Wet signatures are currently required - UCSC currently collects the entire social security number as part of its new vendor set-up process; consequently the preferred method of delivery for new vendor set-up forms is mail or inter-campus delivery to safeguard sensitive personal information. 6. What would an implementation plan and timeline look like to develop an automated solution(s) to the current travel processing concerns? - Review recommendations with campus financial governance groups, such as the Business Managers Advisory Group (BMAG) 7

8 - Assess the following factors to determine the feasibility of implementing an automated solution: o Approval queue hierarchy structure o Accessibility of automated tools for campus users o Training required to insure that users and approvers can efficiently and accurately utilize new automation solutions o Training needed to insure that divisional and department approvers understand travel policy and their compliance responsibilities o Risk discussion with campus constituents to achieve a common understanding that many travel reimbursement transactions will be processed without an additional review by accounts payable processors - If the results of the feasibility analysis appear favorable, develop a proposed implementation project plan that includes a timeline and estimates of one-time and ongoing cost projections. - The plan would likely need to include the following sequence of tasks: o Perform a more detailed analysis of the various improvement opportunities that includes proposed timelines and cost estimates Engage in discussions with application vendors where needed (e.g. regarding Concur) Engage in discussions with other campus units involved, such as Information Technology Services Assess costs and benefits Identify the opportunities to implement Identify the one-time and ongoing funding required to implement o Development of a detailed, integrated project plan, including system requirements, process designs, and financial controls and accountability. o Implement the plan Develop a communication and change management plan Develop training and resource materials 6.1 Short-Term (quick wins) - Improve the 204-Form (a number of the suggestions identified directly below are already in process and awaiting technical expertise) o Simplify the form o Require only the last 4 digits of SSN as a unique vendor identifier in FIS for travel related reimbursement transactions. o Quick guide on how to look up a vendor o Clearly label the form field where the traveler is supposed to enter his/her address that is used for sending the check. o Other dynamic enhancements should be integrated into the form to increase its usability. - Post Travel Form: Clearly label the form field where the traveler is supposed to enter his/her address that is used for sending the check. 8

9 - Communicate travel tips periodically via to a selected audience of travel arrangers, administrators and approvers - Determine best method for identifying new employees who may need to know travel-related policies and procedures and determine optimal communication strategy - Publicize and offer travel training tailored specifically for Tier 2 approvers - Set up an archive of announcements and tips on the website - Explore the feasibility of using an event planning corporate credit card to book travel arrangements for guests. This is a new purchasing option offered through the UC Office of the President in conjunction with US Bank. - Connexxus training and outreach in conjunction with the UC Office of President 6.2 Medium-Term - Proposed revision of training structure => Idea: Conduct targeted trainings in addition to standard trainings o Part 1: Policy o Part 2: Selected details (specialized, targeted training) - Use CruzBuy as an electronic travel processing system. The respective department would enter the reimbursement request into CruzBuy on behalf of the visitor, and attach the supporting documentation. Once the reimbursement request was properly approved, it would feed to FIS as an e- invoice and be paid through the standard UCSC payment process. o Technological feasibility would need to be evaluated further. o Employees and visitors would need to be set up as vendors in FIS Banner. These vendor records would then have to be fed into CruzBuy. o E-invoices currently are directly tied to ACH-payments. The technical challenge of linking electronically populated travel reimbursement transactions with vendors (employees and other travelers) who prefer to be paid by check will have to be evaluated. o It will be necessary to evaluate the relevant business processes, including the approval structure within CruzBuy. If the current CruzBuy approval queue structure is utilized, it might become necessary to share the existing approval queues between the ERF approvers and the travel approvers. If entertainment and travel are combined into one CruzBuy approval queue and a department has designated different individuals as approvers for entertainment and travel transactions, there would have to be an honor system so that each approver would review their appropriate transactions only. o A new reimbursement form would need to be created in CruzBuy that allows users to properly segregate travel expenses (airfare, lodging, meals, etc.). o Parameters should be developed and built into these forms to catch common errors. 9

10 - Integrate the new vendor registration form into CruzBuy (currently being addressed through the UC P-200 initiative) and make it possible to upload it to FIS. This would eliminate the 204-Form. - Travel Guide o A new UCSC Travel-Guide is being developed. The guide will be overhauled and help travelers to easily locate relevant guidance and answer the most common questions. The guide will have a different outline structure, helpful quick-guides and examples of completed forms. o Prior to completion, the new travel guide will be reviewed by campus constituents as various sections are completed to insure that the content, formatting and search functionality are user friendly and effective. 6.3 Long-Term - Evaluate the feasibility of implementing Concur or a similar electronic travel reimbursement/processing system. o Any new electronic travel reimbursement system must be able to accommodate the needs of visitors. This is a common group of travelers; especially for academic units and processing their paperwork generally is very time consuming. o It will be important to solicit feedback from end users related to any new travel processing system that is under serious consideration. Other recommendations and ideas for improvement - Prepare FAQ s that travelers can refer to when they have questions - Communicate changes as well as improvements. One idea to make communication more effective would be to define a central contact person for all business communication in each campus unit. That person would be responsible for distributing the information to everyone within his or her respective unit. Communication coming from Financial Affairs, centrally, via blasts that are based on listservs is problematic because oftentimes the lists cannot be kept current. - Prepare a user guide for Connexxus and conduct user outreach training 10

11 Appendix A - Project Charge SANTA CRUZ: BUSINESS AND ADMINISTRATIVE SERVICES KIRK LEW Assistant Vice Chancellor Financial Affairs MARIE LOGAN Director Operations and Resource Management August 11, 2014 Re: Travel Reimbursement Solution Development Team Dear Kirk and Marie, As you know, over the last year I have worked with the BAS team to advance a Stewardship as our Guidepost and Simplification as a Value framework. Three basic premises underlie this philosophy: 1. Stewardship - We must be good stewards of the resources entrusted to us by our students, tax-payers, and donors. This includes being stewards of our time, which in and of itself has a cost. We need to ensure team members are able to focus their time on supporting the core mission of our campus, as opposed to spending time processing forms or seeking approvals that are repetitive and not value-added. 2. Empowerment and accountability - We must create a culture of empowerment within BAS to ensure our team members feel engaged and valued. At the same time, we need to ensure accountability mechanisms exist to ensure we are operating in accordance with UC policy and operating with the highest of ethical standards. 3. Risk - When our division has differing policies or additional requirements beyond UC policy, it actually adds risk as opposed to minimizing risk. This is due to the fact that differing or additional policies that are BAS-specific add confusion for our service units and create unnecessary delays. Simplification is a value that can sometimes seem elusive in our field. Our work requires us to abide by and operate within a multitude of policies, laws, and regulations. These are value-added and serve a critical role in protecting our university, our campus community and our resources. We must ensure we adhere to them and our campus remains in compliance. It is incumbent upon us to ensure we have mechanisms to support accountability and that we operate with the highest of ethical standards. However, it is critical to look beyond these value-added policies and requirements to identify other areas where we add steps in our processes that are not valueadded, do not reduce risk, are cumbersome, and add confusion and error. Our students sacrifice so very much to be here. Our time is not without cost to them, and we must ensure our team members are able to focus their time on serving our core mission. Stewardship of the resources entrusted to us must be our guidepost and simplification is one of the many values that helps advance stewardship. As I have stated from the start of my tenure here, the ideas needed to maximize stewardship and serve the mission of the campus will come from all levels of the organization. We must ensure that team members within BAS feel empowered and that avenues exist to hear, consider and implement their ideas. We also must ensure we have mechanisms to engage our clients and apply their feedback into our work. UNIVERSITY OF CALIFORNIA (Letterhead for Interdepartmental Use)

12 You will recall that through a series of venues, I have posed three questions to stakeholders both inside and external to BAS. The three questions were: 1. What are examples (real or perceived) where BAS adds additional steps/requirements/approvals beyond UC policy? (focus is internal BAS operations) 2. What are examples (real or perceived) where UCSC adds additional steps/requirements/approvals beyond UC policy? (focus is on campus operations that BAS oversees) 3. What are examples of BAS processes that are cumbersome not because of policy, but because of the manual/onerous nature of them? Four BAS operational areas emerged as themes throughout the feedback process: procurement, travel reimbursement, the ERF and recruitment. The issues related to travel reimbursement involve policy interpretation and application, as well as the tool (or lack thereof) to process information in an efficient way. As we head into fall quarter, I am initiating the next phase of our simplification efforts in the four major theme areas. This phase engages a solution development team. I am asking Marie to lead this effort for me and engage with the Team Leader who corresponds to each of the four priority areas. For the travel reimbursement solution development team, I would like for the two of you to work together to develop the structure and process by which to answer the following questions: What are the travel policies that seem to have the greatest amount of misunderstanding? How are we engaging clients to ensure they are aware of travel processes and policies? What are areas where our clients believe we are applying travel policies in a more restrictive way than other campuses? How can we ensure we are proactively getting client feedback about their experience with the travel processes on campus? What tools do other campuses use to process travel-related requests? What would an implementation plan and timeline look like to develop an automated solution(s) to the current travel processing concerns? The solution development team can include whatever representatives you think would be valueadded from your department. Kirk, you are free to delegate the shared-leadership of this process to someone else in your unit. Marie will remain my delegate to lead this effort. In addition to the Financial Affairs representatives you feel are important to serve on the team, I ask that the team include two BAS representatives who do not work in Financial Affairs and two non-bas representatives. These representatives should be individuals who utilize campus travel processes and can provide the client perspective of the process. Stakeholder engagement is critical in our work, as we want to ensure our implemented solutions are not worse than the original problem. I ask that you provide to me answers to the guiding questions above by the end of May You are not implementing the solutions by this date; rather you are identifying potential solutions and implementation plans.

13 I have included several attachments (some of which you have already been exposed to in our prior discussions of this topic) to help guide your work. Thank you in advance for your leadership on this critical campus issue. Very best wishes. Sarah C. Latham Vice Chancellor Business and Administrative Services Attachments: 1) Powerpoint (in.pdf) that outlines guiding philosophies and steps moving forward: This contains the values I hope to keep in the forefront of our work. 2) Feedback themes and analysis: This is the spreadsheet that Marie did for us. She took the feedback generated through various meetings and roundtables and put them into one document. 3) ABOG SWOT: This was a BAS SWOT that ABOG did for me. 4) Follow-up feedback on four simplification theme priorities: This contains further feedback I received on the four simplification priority areas.

14 Appendix B Option Finder Exercise UCSC FINANCIAL AFFAIRS PROCESS SIMPLIFICATION INITIATIVE OPTIONFINDER FOCUS GROUP QUESTIONS OPTIONFINDER POLLING DIMENSIONS For each of the statements below, a focus group participant will be asked to vote on the following two perspectives: 1. Level agreement with statement 1 Strongly disagree 2 Disagree 3 Don t know or don t have an opinion 4 Agree 5 Strongly agree 2. Frequency impacted/affected 1 Never or seldom / 0 1 time annually 2 Infrequently / 2 4 times annually 3 Sometimes / 5 12 annually 4 Frequently / Twice monthly 5 Always / weekly or more frequently For the purpose of voting on statements involving confusion or problems, Frequency means the number of times you engage in the underlying action, like asking a question or seeking information, not to the number of times something undesirable occurs, like getting an inconsistent response to a question or not being able to find desired information. FINANCIAL AFFAIRS - 11/13/2014 1

15 UCSC FINANCIAL AFFAIRS PROCESS SIMPLIFICATION INITIATIVE OPTIONFINDER FOCUS GROUP QUESTIONS TRAVEL EXPENSE REPORTING 1. What is the one thing about the travel expense reporting process that confuses you most? a. Clearing travel advances b. Understanding why traveler is not allowed to have campus pay on behalf of a single traveler using a TAR c. Determining which vendors can be paid directly d. d. Accommodation options other than hotels e. Why Tier- 1 authorization is required when post- travel is within TAR budget f. Obtaining and understanding the pre- travel form and related process Financial Affairs vendors are not listed on the website and it is difficult to find what you can and can t do Hotels, and if they take POs or direct pay Have all staff fill out a TAR when traveling for authorized staff member(s) to sign, then the traveler returns and turns in their Post travel. Resulting in the audit can detecting unauthorized reimbursements Develop a budget and have travel preapproved and checked to the post travel paperwork The workload doubled TAR becoming electronic and have the post travel submitted and compared to reduce reimbursement times 204 forms, championship travel can t afford to pay for the travel, when possibly only traveling once. This process takes very long and inefficient for a onetime event. Students traveling are not able to pay upfront and submit for reimbursement Speed up travel advance Inconsistent paperwork requirements Before and after approval on travel from Tier 1 and Tier 2 There should be a uniform process across the campus in regard to approval of Tier 1 and Tier 2 g. Completing the post- travel form h. Understanding the payment on behalf of traveler - the requirements that go with b above i. Circumstances under which receipts must be submitted Focus F C H I E 1

16 2. What is the least efficient part of the travel expense reporting process? a. Dealing with form completion errors by the traveler If the electronic files have mistakes, and are not able to save (due to Adobe Reader limitations), then edits are not able to be made. Adobe acrobat or Pro can be obtained to mitigate this issue Manual signatures are not efficient when a traveler is always traveling. Electronic signatures should be implemented Common sense implementation period which will take time longer than 45 days b. Having to obtain flight comparisons c. TAR processing and how it s related to post- travel reporting d. Travelers using old versions of the expense reimbursement form e. Traveler manual signature requirement on form f. Requirement to obtain low dollar value receipts, like Fast track bridge toll fees $75 dollars or less a receipt is not required Checked baggage should be listed in the misc. section Rental cars under $75 dollars do need a receipt Group travel will need to show receipts of all who have small receipts totaling over the $75 limit Communicate campuswide that the receipts for under $75 dollars are not required Guests and staff have different processes. The policy should be consistent and apply to visitors and staff members TAR should be signed by the traveler g. Manual, paper process Going electronic, Banner has a travel module and CruzBuy may be able to handle the travel process Reaching out to U.S. Bank (for group university travel card if I remember correctly) h. Pre- travel approval authorization to pay for a conference or hotel, etc. requires completion of 204 form Focus G A C E F 3. What specific travel expense reporting process requirement seems to be the most overly restrictive or limiting? a. Prohibition against the purchase of travel bundles/packages 2

17 b. Understanding why a group traveler can purchase airfare for someone else, but an individual cannot c. FAST requesting more information than stated in policy d. Prohibition on not allowing an individual to buy airfare or meals for someone else Redefine group travel of two or more within the policy The difference between two or three travelers is insignificant Receipts that can be submitted electronically, such as a photo with a smartphone Monetary limit for commuting with a vehicle instead of flying e. Entertainment requiring completion of an ERF in addition to Post- Travel form f. Restrictions on meal reimbursements when travel is less than 24 hours FINANCIAL AFFAIRS - 11/13/2014 3

18 UCSC FINANCIAL AFFAIRS PROCESS SIMPLIFICATION INITIATIVE OPTIONFINDER FOCUS GROUP QUESTIONS g. Restrictions on the types of lodging and subsistence expenses that are reimbursable h. Excess travel advance money needing to be deposited with the Cashier s office i. Requirement to use the per- day cost breakdown j. Not accepting receipt scans and cost comparisons (exception to policy if submitted) k. Cost comparisons for driving versus flying l. Receipt submission requirements Paying via credit card for airfare and the credit cards last four digits do not appear on the receipt, so a separate request needs to be made in order to get a supporting document Focus L J D C F 4. What aspect of completing a travel expense reimbursement request needs the most improvement? a. Traveler training, especially on how to complete their travel paperwork b. Clarifying when entertainment is provided while on travel status, an ERF must be completed c. Enabling electronic approvals of TARs d. Communicating changes in specific UCSC practices or policy interpretations to users e. Accepting electronic signatures for travelers This implementation is being looked into. Ed will be working with Monique Leduc to find a solution Controls can be put in place to verify approver credentials, and then they are able to approve expenses, along with any other authorized approvers f. Providing for the use of unit travel cards Travel card that can be used and reconciled like a pro card. The travel card can help alleviate issues with merchants who do not accept POs Ed will look into other UC systems to see what processes they are using to make travel more efficient g. Processing turnaround time for TARs Check writes now weekly should be speeding up the process. 204 forms for multiple people can slow up the reimbursement process. 4

19 h. Managing situations in which individuals can authorize funding for their own travel i. Miscellaneous field is in the middle of TAR form does not allow for enough verbiage j. Lack of dropdown boxes on TAR form, S/B more like Direct Pay form k. Replace paper forms with electronic forms and workflow (i.e. approvals), and scanned/electronic receipts l. Improved guidance, such as a help package that provides key policy requirement info and completed form examples Submitting electronic travel packages directly to FAR/FAST m. Making available a PDF form- opening troubleshooting guide n. Eliminate a lot of the fields on the pre- travel form and have a Not to Exceed amount instead o. Tab navigation on the post- travel form could be improved p. Comments section Focus E K L A C M D P O FINANCIAL AFFAIRS - 11/13/2014 5

20 Appendix C - Travel Policy University of California Policy BFB-G-28 Responsible Officer: EVP - Chief Financial Officer Responsible Office: FO - Financial Operations Issuance Date: April 13, 2015 Effective Date: April 13, 2015 Last Review Date: March 17, 2015 Scope: Staff and academic employees of the University. Non-employees, including students, visiting scholars, and independent contractors. This policy does not apply to travel associated with work done within the scope of the UC/DOE contract for the management and operations of the Lawrence Berkeley National Laboratory (LBNL). Travel not within the scope of the LBNL contract is covered by the provisions of G-28. For questions regarding business meetings and entertainment expense reimbursements, please contact your campus representative Contact: Title: Phone #: John Barrett Director John.Barrett@ucop.edu (510) I. POLICY SUMMARY It is the policy of the University to comply with IRS regulations regarding the provision and reimbursement of business-related travel, and to conform to the IRS accountable plan rules. University of California Policy G-28 1 of 53

21 Table of Contents I. POLICY SUMMARY II. DEFINITIONS... 4 III. POLICY STATEMENT A. Introduction 6 B. Overview. 6 C. Travel Management Services 6 1. Travel Management Program 6 2. UC Travel Council 7 D.Reimbursement Standards 7 IV. COMPLIANCE / RESPONSIBILITIES Table: Payment Approval Authority 9 V. REQUIRED PROCEDURES 10 A. Approval of Travel expense claim 10 B. Payment of Travel Prepaid Expenses and Direct Charges Corporate Travel Cards Cash/Non-Cash Advances 11 a. Eligibility 11 b. Issuance of Cash Advances 11 c. Cancelled or Postponed Trips 12 d. Unrecovered Advances 12 4.Payment of Expenses on Behalf of Others Cancellation of Reservations 13 C. Insurance for Travelers University Travelers 13 a.registration for Travel Outside of California Vehicles 14 D. Transportation Expenses General 14 a. Definition 14 b.transportation Tickets 15 c. Lost Tickets 15 d. Allowable Mileage Expense 15 e. Surface Transportation Used in Lieu of Air Travel 15 f. Indirect or Interrupted Itineraries 16 g. Travel Extended to Save Costs Air Travel 16 a. Commercial Airlines 16 b. Chartered Aircraft Automobile 19 a. Private Vehicles 20 b. Rental Cars 21 c. Official Vehicles 23 d. Miscellaneous Automobile-Related Expenses Rail or Bus 23 University of California Policy G-28 Page 2 of 53

22 5. Ship Other Forms of Transportation 24 a. Local Public Transportation, Shuttle Service, and Taxis 24 b. Motorcycles 24 c. Special Conveyances 24 E. Subsistence Expenses General 24 a. Definition 24 b. Entertainment Meals Travel in Excess of 24 Hours 25 a. Domestic Travel - Travel within the United States and Its Possessions 25 b. Foreign Travel 28 c. Adjustment of Per Diem Rates 29 d. Use of Non-Commercial Facilities 31 e. Lodging with a Friend or Relative Travel of Less than 24 Hours 31 a. CONUS Travel 31 b. Foreign and OCONUS Travel 32 4.Payment of Group Subsistence Expenses California City and County Transient Occupancy Taxes 32 F. Miscellaneous Travel Expenses 32 G. Intercampus Travel Expenses Funding Campus Responsibilities 33 a. Travel Funded by a Single Campus 33 b. Travel Funded by Two or More Campuses 34 c. Missing Original Receipts 34 d. Outstanding Cash Advances Home Campus Responsibilities 35 H. Special Travel Situations University Travelers. 35 a. Visiting Academic Appointees 36 b. Faculty Member on Sabbatical Leave 36 c. Students 36 d. Postdocs and Other Non-Degree Candidates Non-University Travelers 37 a. General Regulations 38 b. Prospective Employees 38 c. Independent Contractors and Consultants 38 d. Inbound Travel Temporary Assignments 39 e. Foreign Visiting Scholars 39 f. Spouse or Domestic Partner Travel 39 g. Athletic Travel Spouse or domestic partner and Family Members. 40 I. Reporting Travel Expenses Reporting Period 41 University of California Policy G-28 Page 3 of 53

23 2. Completion of a Travel expense claim. 41 a. Substantiation of Expenses 41 b. Documentation Requirements 42 c. Certification of Travel Expenses Return of Excess Advance Amounts.. 44 VI. RELATED INFORMATION 44 VII. FREQUENTLY ASKED QUESTIONS 47 VIII. REVISION HISTORY 48 Appendix A: Mileage Reimbursement Rates for Private Vehicles and Aircraft 49 Appendix B: Lodging and M&IE Reimbursement Caps 50 Appendix C: IRS Tax Gross-Up Formula 51 Appendix D: Prorating Per Diems for Travel Involving Multiple Locations 52 Appendix E: Travel of Less Than 24 Hours M&IE Reimbursements 53 II. DEFINITIONS Business Purpose. The business purpose of a University traveler may include activities that contribute to any one of the University s major functions of teaching, research, patient care, or public service, or to any other substantial and bona fide University business activity. Campus. The campus, Laboratory, UCOP, Agriculture and Natural Resources, or other official University location under the jurisdiction of a Chancellor, as defined below. Chancellor. The chief executive officer of the campus. For purposes of this Bulletin, the authorities and responsibilities assigned to the Chancellor are also assigned to the Lawrence Berkeley National Laboratory (LBNL) Director, the Executive Vice President Chief Operating Officer, the Vice President--Agriculture and Natural Resources, and the Principal Officers of The Regents, for employees under their respective jurisdictions. Authority delegated to the Chancellor also may be delegated to other individuals. Domestic Partner. A domestic partner means the individual designated as an employee's domestic partner under one of the following methods: (i) registration of the partnership with the State of California; (ii) establishment of a same-sex legal union, other than marriage, formed in another jurisdiction that is substantially equivalent to a State of California-registered domestic partnership; or (iii) filing of a Declaration of Domestic Partnership form with the University. See PPSM 2 for additional information. Headquarters: The place where the major portion of the traveler's working time is spent or the place to which the employee returns during working hours upon completion of special outside assignments. Lodging: Expenses for overnight sleeping facilities. This does not include accommodations on airplanes, trains, buses, or ships, which are included in the cost of transportation. M&IE Reimbursement Cap: The maximum amount authorized for daily meal and incidental expenses established by the University for all travel of less than 30 days in University of California Policy G-28 Page 4 of 53

24 the continental United States (CONUS). The cap amount is based on the highest domestic per diem rate published by the General Services Administration (GSA) for travel within CONUS. Although the University s cap amount is indexed to the maximum Federal per diem, travelers may seek reimbursement only for their actual expenses up to the cap amount (see Section V.E.2.a.i., Travel Assignments of Less than 30 Days). For purposes of the reimbursement cap, incidental expenses include tips and fees for services, e.g., for waiters, baggage handlers, etc. Per Diem: The daily subsistence allowance authorized under the federal per diem rates for a location of travel. The payment of a per diem does not require supporting receipts. Per diems are authorized in these situations: for all foreign travel; travel within Alaska, Hawaii, and United States possessions (OCONUS); domestic travel assignments of 30 days or more; and domestic travel assignments that exceed one year (see Appendix B). The incidental expenses portion of the federal per diem rate includes fees and tips given to porters, baggage carriers, bellhops, hotel maids, stewards or stewardesses and others on ships, and hotel servants in foreign countries; transportation between places of lodging or business and places where meals are taken, if suitable meals cannot be obtained at the temporary duty site; and mailing costs associated with filing travel expense claims and payment of University-sponsored charge card billings. Federal per diem rates do not include taxes on lodging, which may be reimbursed separately. Refer to Section V.E., Subsistence Expenses, for more information on per diems. Primary Agreement: An agreement between the University of California and an awarded supplier for a specific service or commodity that is the result of a University competitive bid process. The primary agreement is established with the supplier considered to have the best combination of value and service and who obtains the most awarded quality points during the evaluation process. This supplier will be the recommended University supplier for the specific service or commodity type (at participating University locations) for the life of the agreement. Reporting Period: The forty-five day period within which a travel expense claim must be submitted after the end of a trip. Refer to Section V.I.1., Reporting Period, for more information. Residence: The primary residence where the traveler lives, regardless of other legal or mailing addresses. However, when an employee is required to reside temporarily away from his or her permanent residence because of official travel away from headquarters, such residence may still be considered permanent if it is unreasonable to expect the employee to move his or her permanent residence to the temporary job location. Travel Expenses: Expenses that are ordinary and necessary to accomplish the official business purpose of a trip. Refer to the following sections for a description of travel expenses eligible for reimbursement: Section V.D., Transportation Expenses; Section V.E., Subsistence Expenses; and Section V.F., Miscellaneous Travel Expenses. Travel Status: The period during which a traveler is traveling on official University business outside the vicinity of his or her headquarters or residence. University of California Policy G-28 Page 5 of 53

25 III. POLICY STATEMENT A. Introduction The policy and regulations contained in this Bulletin shall apply to all official University travel, including travel funded under federal grants and contracts. 1 However, the policy does not apply to work done within the scope of the UC/DOE contract for the management and operations of the Lawrence Berkeley National Laboratory. Travel not within the scope of the LBNL contract is covered by the provisions of this policy. This Bulletin includes special rules for non-employees, such as students, visiting scholars, independent contractors, etc. The terms set forth in an extramural funding agreement govern only when such terms are more restrictive than University travel regulations. The campuses and LBNL may adopt more restrictive procedures, if desired. In addition, the terms of a collective bargaining agreement shall govern when such terms do not conform to the provisions of this Bulletin. B. Overview University business travelers are strongly encouraged to purchase travel services, when available, from Preferred Suppliers with whom the University has strategic and collaborative sourcing primary agreements. Preferred Suppliers deliver competitive value in the range of services required by University travelers. Such Suppliers include airlines, car rental agencies, hotels, travel agencies, and online booking providers. Although it might be possible to obtain a lower cost from nonparticipating suppliers, use of Preferred Suppliers should, on average and over time, reduce the University's overall travel costs and provide the best value to the traveler. For more information about Connexxus and our preferred suppliers, including airlines, hotels, car rental agencies, and travel agencies, see the Connexxus website. C. Travel Management Services 1. Travel Management Program The systemwide Travel Management Program known as Connexxus is intended to generate maximum benefit and value for University travelers and departments. The program encompasses all aspects of University travel, including policy development, processes, planning, data management, and Preferred Supplier services and contracts. After appropriate training and communication, campuses should mandate the use of Connexxus in order to realize the potential savings achievable under the program (President s June 21, 2009 letters to the Chancellors). 1 Pursuant to Section J.53 of Office of Management and Budget Circular A-21, costs incurred by employees and officers for travel shall be considered reasonable and allowable only to the extent that such costs do not exceed charges normally allowed by the institution in its regular operations as a result of an institutional policy and the amounts claimed under sponsored agreements represent reasonable and allocable costs. University of California Policy G-28 Page 6 of 53

26 2. UC Travel Council The UC Travel Council, sponsored by the Executive Vice President Chief Financial Officer, provides general leadership, direction, and oversight in support of the Connexxus program. At least one representative from each campus and the LBNL shall have membership on the Travel Council. Campuses may appoint an additional Medical Center representative for their location, if desired. D. Reimbursement Standards It is the policy of the University that all official travel shall be properly authorized, reported, and reimbursed in accordance with this Bulletin. Under no circumstances shall expenses for personal travel be charged to, or be temporarily funded by, the University, unless otherwise noted in this Bulletin. When a University employee travels under the sponsorship of a non-university entity, travel expenses, including advances, prepayments, or billings, shall not be charged to a University account or billed to the University; airline tickets must be obtained from the sponsor. University employees traveling on official business shall observe normally accepted standards of propriety in the type and manner of expenses they incur. In addition, it is the traveler's responsibility to report his or her actual travel expenses in a responsible and ethical manner, in accordance with the regulations set forth in this Bulletin. The University s travel reimbursement procedures contained in this Bulletin are designed to conform to the accountable plan rules published by the Internal Revenue Service (IRS). Therefore, University reimbursement of an employee s travel expenses shall not result in additional taxable income to the employee. Travel expenses considered by the IRS to be taxable income to the traveler are not reimbursable except for the following: Expenses for travel in excess of one year, Imputed taxable income caused by substantiated expense reports submitted after the time limit described in Section V.I.1., subject to campus discretion, or Certain travel expenses related to moving a new appointee or a current employee (refer to BFB G-13, Policy and Regulations Governing Moving and Relocation, for more information). University of California Policy G-28 Page 7 of 53

27 IV. COMPLIANCE / RESPONSIBILITIES Function Executive Vice President- Chief Financial Officer Department Heads (or person delegated authority by the Chancellor, or person officially redelegated authority) Campus Controller s Office or Medical Center Controller, where appropriate Responsibilities Establish and update the policies set forth in this Bulletin. Approve payment for the travel expense claim or electronic equivalent submitted by the traveler; ensure that appropriate documentation is provided to substantiate the travel expense; ensure that the travel expenditures comply with University policy and fund source restrictions. Approve the travel expenses, including exceptions, for each campus Chancellor, including a spouse or domestic partner, or an Associate of the Chancellor. Initiate proceedings for the recovery of any outstanding cash advances sixty days after a trip is completed. Chancellors May establish more restrictive procedures for the travel policies authorized under this Bulletin. Designate one or more approving Vice Chancellors to approve travel expenses incurred by the Vice Chancellors, Deans, and Medical Center Directors. Approve travel expenses incurred by the designated Vice Chancellors. May appoint a designee to approve travel expenses incurred by the designated Vice Chancellors, provided that the designee does not report to the designated Vice Chancellor. Provide written approval for use of private aircraft (including a rented aircraft) for official travel after pilot registers the private aircraft with the Chancellor and meets all the requirements under Section V.D.2.b.i. Designated Vice Chancellors 2 Review and approve travel expenses incurred by the Vice Chancellors, Deans, and Medical Center Directors. In lieu of reviewing and approving each travel expense claim (or electronic equivalent), the designated Vice Chancellor may: o Appoint a high-level individual on his or her staff who is knowledgeable about the travel regulations to review and approve the travel expense claim for policy compliance, and o Review and sign a periodic report (produced no less frequently than monthly), which details the business purpose for each trip taken. May not redelegate this authority to another individual, except when the designated Vice Chancellor is not available due to business travel, vacation, illness, or other leave. LBNL Director Executive Vice President- Business Operations Vice President-Agriculture and Natural Resources Principal Officers of The Assigned the authorities and responsibilities that are assigned to the Chancellor for purposes of this Bulletin. 2 The term designated Vice Chancellor includes any other responsible administrator designated by the Chancellor. University of California Policy G-28 Page 8 of 53