SANTA BARBARA COUNTY EMPLOYEES RETIREMENT SYSTEM TRUSTEE TRAVEL POLICY I. PURPOSE

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1 SANTA BARBARA COUNTY EMPLOYEES RETIREMENT SYSTEM TRUSTEE TRAVEL POLICY I. PURPOSE The purpose of this Trustee Travel Policy is to encourage and facilitate the pursuit of relevant educational and business-related initiatives by Trustees. The policy is designed to assist them in meeting fiduciary duties to administer the pension system and to ensure that expenditures incurred in the process are prudent and cost-effective, to mitigate the risk of improprieties arising from Trustees travel or business-related activities and to set parameters for Trustees to follow when traveling on System business. II. ASSUMPTIONS AND PRINCIPLES 1. Prudent oversight of a public pension system requires that Trustees occasionally travel to Retirement System related business meetings and educational conferences or seminars, held in or outside California. Travel and related costs incurred in doing so not only represent legitimate expenses of the System, but are a sound investment in the ongoing success of the System in meeting the needs of the members. 2. Notwithstanding the above, any expenditures relating to travel and reimbursement of Trustees must support and comply with the Board s fiduciary responsibilities and reflect sensitivity to the members and beneficiaries on whose behalf the Board of Administration serves. 3. The appropriateness of expenditures incurred by Trustees will be determined in accordance with the travel and travel reimbursement guidelines of the County of Santa Barbara, as those guidelines are updated from time to time. A copy of the current guidelines are attached. 4. Trustees will be compensated in accordance with Government Code Section and reimbursed for appropriate travel expenses, including parking, to attend Board and Committee meetings. III. POLICY GUIDELINES A. PAYMENT OF TRAVEL & RELATED EXPENSES BY THE SYSTEM 1. The System will only pay for or reimburse travel or business related expenses incurred in compliance with the Trustee Travel or Education Policies.

2 Santa Barbara County Employees Retirement System Trustee Travel Policy 2. Trustees will only be reimbursed for travel-related expenses if such travel has been incurred in accordance with the Trustee Education Policy or on other authorized business. 3. SBCERS shall not reimburse travel related expenses incurred by trustees engaged in activities on behalf of SACRS to the extent that such expenses are subject to reimbursement by SACRS pursuant to its Bylaws and implementing policies. Such policy shall not preclude reimbursement of travel related expenses reasonably incurred by trustees in SACRS activities which are not subject to reimbursement by SACRS pursuant to its Bylaws and implementing policies. 4. The System will only pay for or reimburse travel or business-related expenses incurred directly by the Trustee. All other expenses (e.g., for a spouse) will be the responsibility of the Trustee. 5. Travel arrangements will be coordinated with the Retirement System Administrative Office. Any costs associated with last minute cancellation may be charged to the Trustee. 6. When traveling by air, Trustees will have the option to extend their trip (e.g. over a Saturday night) if it will result in a net savings or no additional cost to the System. 7. Although not an exhaustive list, the following are business related expenses that may be reimbursed to Trustees or paid on their behalf by the System in accordance with the County of Santa Barbara Business Expense Policy. A. Airfare B. Fares relating to taxis, airport limousines, trains and subways C. Personal automobile mileage D. Rental cars E. Hotel accommodations F. Meals and non-alcoholic beverages G. Telephone calls and business services (photocopies, faxes, computer services) 8. When deciding among similar educational programs, or identical programs offered in different locations, Trustees agree to make every attempt to attend those programs that minimize travel and related expenses. 9. Trustees will document all expenditures except meal per diem. 2

3 Santa Barbara County Employees Retirement System Trustee Travel Policy B. ACCEPTANCE OF GIFTS FOR TRAVEL AND RELATED EXPENSES FROM THIRD PARTIES 1. When a Trustee attends an educational conference, seminar or similar event, but does not participate as a speaker, panel member, or in a similar capacity, the trustee may accept free or reduced price admission and educational materials in connection with the event; any gift of meal, lodging or transportation expenses used by the trustee, whether or not directed as a gift to the System, must be declared as a gift to the trustee and is subject to statutory limitations as to the value of such a gift. 2. When a Trustee participates in an educational conference, seminar or similar event as a speaker, panel member or in a similar capacity, the Trustee may accept gifts, including payment of meal, lodging or transportation expenses, subject to the following: a. So long as the Trustee gives a speech or participates in a panel or seminar, the Trustee may receive free admission to the event, refreshments and similar non-cash nominal benefits provided during the entire event. The value of admission to the event, or of the refreshments provided, is not subject to gift limits and not reportable, wherever the event is held. b. When a Trustee travels within California to give a speech (which term includes active participation in a panel seminar or debate), the Trustee may receive reimbursement for travel expenses, as well as necessary food and lodging to participate in the event. The value of such reimbursed items is not subject to gift limits and is not reportable. c. When a Trustee travels within the United States, but outside of California, the Trustee may receive reimbursement for travel expenses, as well as necessary food and lodging to participate in the event, provided that the engagement is reasonably related to a legislative or governmental purpose or to an issue of public policy. Lodging and meal expenses are limited to the day immediately proceeding, the day of and the day immediately following the speaking engagement. Amounts received in reimbursement are exempt from gift limits, but must be reported on the Trustee s statement of economic interests. Reimbursement of such expenses may disqualify the member from participating in any vote with respect to any matters involving the entity reimbursing the expenses for a period of 12 months. 3. To the extent that expenses are not paid by the sponsoring entity or group consistent with conflict of interest rules, the Trustee shall pay such expenses or may request that the System pay such expenses to the extent that payment of such expenses are appropriate pursuant to the Trustee Travel Policy and/or the Trustee Education Policy. 3

4 Santa Barbara County Employees Retirement System Trustee Travel Policy 4. A member shall not accept any fees or honoraria for making a speech or participating in a panel or seminar, other than the reimbursement of expenses described in this policy. C. BOARD APPROVAL Except as provided for in the Trustee Education Policy, or where prior Board approval is not feasible, expenses for travel in excess of $ 150 shall be approved by the Board before the expenses are incurred. IV. POLICY REVIEW The Retirement Board shall review this Policy at least every three years to ensure that it remains relevant and appropriate. VI. AMENDMENT HISTORY This Policy was adopted by the Retirement Board on October 24, 2001, and revised April 13, 2005, and November 19,

5 County of Santa Barbara Mileage Rates & Meal Per Diems Revised January 1, 2012 Rate per Mile Type of use (Jan-June) 2011 (July-Dec) 2012 (no change) Business $0.50 $0.51 $0.555 $0.555 County Meal Per Diems Type of use (no change) Breakfast $ $ $ Lunch $ $ $ Dinner $ $ $ Daily $ $ $ 66.00

6 Employee Expense Reimbursement SUBJECT: Expense Reimbursement DEPARTMENTS & DISTRICTS AFFECTED: ALL COUNTY DEPARTMENTS GOVERNED BY THE SANTA BARBARA COUNTY BOARD OF SUPERVISORS NUMBER: T2.3 EFFECTIVE: 12/2010 Approved by Auditor-Controller & County Administrator POLICY The Employee Expense Reimbursement Policy is covered in the attached policy & procedure document. 1.1 Purpose It is the County s policy to reimburse officers and employees for reasonable, actual, and necessary expenses incurred by them on behalf of the County in carrying out their official duties. The County provides several mechanisms through which an employee can incur expenses and be reimbursed, but all are to conform to the IRS definition of an accountable plan. In all cases, proper approval is required to qualify for reimbursement. County-sponsored credit cards and reimbursement of personal funds are options available, depending upon the position an employee holds within the County. While credit card procedures are specified separately the general policy below applies to all forms of reimbursement Authority IRS Regulation Code Section 1.62 Reimbursement or other expense allowance arrangement--(1) Defined. For purposes of Sec. Sec , T, and , the phrase ``reimbursement or other expense allowance arrangement'' means an arrangement that meets the requirements of paragraphs (d) (business connection, (e) (substantiation), and (f) (returning amounts in excess of expenses) of this section. Definitions Expense Reimbursement A reimbursement or allowance is a system by which the County will pay advances, reimbursements, and charges for employees or contractor's substantiated business expenses Accountable plan A reimbursement or allowance arrangement that meets IRS requirements and allows employers to reimburse employees (or contractors) without having to treat the reimbursement as wages or compensation. To be an accountable plan employee requests for expense reimbursement must meet all three of the following rules: Must have paid for expense while performing services as an employee Must adequately account to employer for these expenses within a reasonable period of time. Accounting requires documentation of both the business purpose, such as who was attending and what was discussed, as well as receipts of expenses Must return an amounts advanced in excess of expenses within a reasonable period of time. 2.1 Attachments and Historical Documents Expense Reimbursement Policy

7 COUNTY OF SANTA BARBARA ON-LINE POLICIES & PROCEDURES MANUAL EXPENSE REIMBURSEMENT Updated: 12/2010 POLICY It is the County s policy to reimburse officers and employees for reasonable, actual, and necessary expenses incurred by them on behalf of the County in carrying out their official duties. The County provides several mechanisms through which an employee can incur expenses and be reimbursed. In all cases, proper approval is required to qualify for reimbursement. County-sponsored credit cards and reimbursement of personal funds are options available, depending upon the position an employee holds within the County. While credit card procedures are specified separately (Link to Credit Card Policy and Procedure Manual), the general policy below applies to all forms of reimbursement. Employees must obtain the appropriate departmental approvals depending upon the type of purchase and method of purchase. Regardless of the method of purchase used, certain general guidelines apply and should be followed. Employees must complete a Travel Expense and Reimbursement Claim for the following types of expenditures. Original receipts must be provided for: a. Any single expenditure over $25; b. All lodging expenses; c. Expenditures for County vehicles (e.g. gas, parking, etc.) d. Vehicle rental agreements; e. Air travel (even when County is billed directly); f. Business meals with non-county employees; g. Unusual items regardless of cost. Once claims have been reviewed and approved by the department, they are forwarded to the Auditor-Controller for final review for appropriate charges CREDIT CARD USAGE AND REIMBURSEMENT Separate policy. (Link to Credit Card Policy and Procedure Manual) REIMBURSEMENT EXPENSES Lodging 1. Accommodations should be adequate, but not luxurious;

8 2. Reimbursement is made at single occupancy rate. If bill is for double-occupancy, please note single rate on the bill. Discounted business or government rate should be requested. (Link to Transient Occupancy Hotel Exemption); 3. Original hotel/motel bill must be provided. Movies, mini-bar, and other nonessential services will not be reimbursed and are the responsibility of the Traveler. Transportation Meals 1. County reimburses for most economical mode of transportation suitable to the business purpose 2. County vehicles can be checked out from County motor pool. (Link to Use of County Vehicles) 3. Private Car beginning January 1, 2010, mileage is reimbursed at $0.50 cents per mile, and adjusted by any periodic change to Internal Revenue Service allowable mileage rates. Mileage is calculated from office to destination and return. For frequent travelers, mileage should be logged on a Mileage Record log. (Link to Mileage Record Log). 4. Air travel request government rate when making travel reservations; copy of airline ticket or invoice must be submitted. If a private plane is used, the amount reimbursed will be the most economical fare between points traveled, or.36 cents per mile, whichever is less; 5. Rental car when reserving a rental car, request nothing larger than a mid-size vehicle. Original receipt must be provided The County will reimburse personal meals while traveling out of the County overnight using per diem meal rates, unless otherwise stated in this policy. Any incidental expenses incurred are only reimbursable within the daily per diem rate. Incidental expenses as defined by the IRS include fees and tips for porters, baggage carriers, bell staff, and housecleaning staff. Receipts are not required for amounts less than or equal to per-diem reimbursement rates. Current per diem rates can be found here under Travel and Reimbursement (T2.2). 2. The County will reimburse the actual cost of meals exceeding the per diem rate for business meals with non-county employees and when it is not practical to stay within the per diem guidelines. (See Qualifying Meals) Qualifying Meals Receipts Required 1. Outside County actual cost not to exceed per-diem limit. 2. Inside County Reimbursement for meals only if working away from regular established headquarters for extended periods of time, usually involving overnight accommodations. 3. Meetings Meals or refreshments may be served in conjunction with meetings where it is to benefit of the County to keep all participants together and not have them disperse for meals. A meeting is defined as formal training, conference, seminar, workshop, staff or Board meeting. 4. Receptions In addition to providing snacks at business meetings and paying for business meals, it is sometimes appropriate for County departments to host larger receptions for statewide peers, visiting dignitaries, or for other unique occasions. Such receptions should be kept to a minimum and any such receptions anticipated to cost more than $150 must be approved by the County Administrator.

9 5. Business Meals County employees are reimbursed for meal expenses incurred in meetings with County and non-county employees to discuss County business. Receipts must include business purpose of meeting and names of individuals in attendance. In addition, all business meal expenses must be supported with itemized listing of food and beverage purchases. When substantiated on the receipt, a reasonable and minimum standard amount for tips is reimbursable. This policy has been designed to provide flexibility and discretion on the part of department heads. Each department is responsible for developing internal policies to guide employees in view of the possibilities for this privilege to be abused if not closely monitored. 6. The cost of alcoholic beverages will not be reimbursed. MISCELLANEOUS TRAVEL COSTS 1. Parking fees Actual cost of parking, receipt required. 2. Transportation costs from airport to lodging or meeting site by most economical mode of transportation (e.g. shuttle, taxi, limo, rental car, etc.). For rental car, receipt must be submitted. For other modes of transportation, submit receipts if available. 3. Registration fees Submit receipt or other documentation verifying costs. 4. Telephone costs for County business, and calls necessitated by the employee s travel. REIMBURSEMENT PROCESS Employee must prepare a Travel Expense and Reimbursement Form (TRC) to claim all personal reimbursements, and to verify that all expenditures incurred were for said travel or meeting. The process begins with the traveler filling out the FIN Web Travel Expense Reimbursement Claim Support Form. Once completed and signed, the support document will be attached to the TRC in FIN Web along with all supporting receipts. If a department incurs expenses for a reception or meeting, representative of the meeting should prepare and sign the claim, attaching all receipts. In both instances, the TRC should be submitted to the department s centralized fiscal staff for processing with the Auditor-Controller s office within three working days of incurring expenses or returning to work.

10 Mileage Reimbursement Policy SUBJECT: Mileage Reimbursement DEPARTMENTS & DISTRICTS AFFECTED: ALL COUNTY DEPARTMENTS GOVERNED BY THE SANTA BARBARA COUNTY BOARD OF SUPERVISORS NUMBER: T2.4 EFFECTIVE: 11/1998 Internal Revenue Service Regulations POLICY This policy discusses the situations when mileage is reimbursed and when it is not Purpose To provide polices, and procedures to aid County Departments governed by the Santa Barbara County Board of Supervisors. The County Policy for mileage reimbursement mirrors the Internal Revenue Service (IRS) regulations regarding when mileage is reimbursable and when it is not. Then IRS Regulation states that commuting miles are not a reimbursable expense. Authority Internal Revenue Service Publication 463 Internal Revenue Service Publication 463 covers transportation expenses. Transportation expenses do not include expenses you have while traveling away from home overnight. Revenue Ruling 99-7 and Income Tax Regulations (e) & (b)(5) A taxpayer s costs of commuting between the taxpayer s residence and the taxpayer s place of business or employment generally are nondeductible personal expenses under (e) and (b)(5) of the Income Tax Regulations. However, the costs of going between one business location and another business location generally are deductible under 162(a). Rev. Rul , C.B Definitions Transportation Expenses Transportation expenses include the ordinary and necessary costs of all of the following. Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Visiting clients or customers. Going to a business meeting away from your regular workplace. Getting from your home to a temporary workplace Tax Home Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. 2.1 Attachments and Historical Documents Mileage Reimbursement Policy Mileage Reimbursement Policy - Attachment A Internal Revenue Service Publication 463 (partial) Original Memo dated 11/1998

11 Mileage Reimbursement Policy Original 11/1998 Updated 09/2011 POLICY This policy covers mileage reimbursement and, more specifically, when it is and when it isn t reimbursable. The County Policy for mileage reimbursement mirrors the Internal Revenue Service (IRS) regulations regarding when mileage is reimbursable and when it is not. The IRS considers mileage to be a Transportation Expense. Transportation expenses include the ordinary and necessary costs of all of the following: Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home, visiting clients or customers, going to a business meeting away from your regular workplace or getting from your home to a temporary workplace. Transportation expenses do not include expenses you may have while traveling away from home overnight. Your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Mileage from home to the first of multiple work locations is commuting and is not a reimbursable expense. Mileage to a second, third, etc. location is reimbursable. The mileage from the last location to home is again commuting (not reimbursable). Example: You live in Santa Maria and you normally commute to Santa Barbara. Occasionally you have to go to your offices in Lompoc first and then to Santa Barbara. Mileage from home to the Lompoc location is commuting, mileage from Lompoc to the Santa Barbara location is reimbursable, and mileage from Santa Barbara to home is commuting. Please see the Mileage Reimbursement Chart for County Business attached Attachment A. Mileage Reimbursement is a very technical part of the tax law. Many individuals have questions regarding what mileage is reimbursable and what isn t. Please feel free to call the Auditor Controller s Office, Financial Accounting and Customer Support Division if you have any questions regarding this policy. Promulgator: Auditor Controller Basis of Authority: Internal Revenue Service Regulations

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