PRATT INSTITUTE TRAVEL POLICY [PDF]

PRATT INSTITUTE TRAVEL POLICY

Issued: 1/24/2017

TABLE OF CONTENTS

EXPENSES OVERVIEW

1

PRE-TRIP PLANNING AND COST ESTIMATES  Items to Consider  Traveler Responsibility  International Travel Approval

2 2 2

TRANSPORTATION  Air Travel  Federal Funding Restrictions  Rental Car Use  Personal Car Use

2 3 3 4 4-5

LODGING  Lodging  Lodging With Friends or Relatives

5 5

MEALS AND ENTERTAINMENT  General  Meals While Traveling – Domestic  Per Diem Allowance  Actual Expenses  Meals While Traveling – Foreign  Actual Lodging Expenses, Plus a Per Diem Meal and Incidental Expenses Reimbursement  Non-Travel Business Related Meals

5 5 6 6 6 6-7 7

BUSINESS ENTERTAINMENT

8

OTHER EXPENSES  Companions  Traveling with Your Spouse or Other Dependents

8 8

MISCELLANEOUS  Expenses Over $25  Non-reimbursable Expenses

8 8

TRAVEL ADVANCES

9

TRAVEL REIMBURSEMENT  Receipt Requirements  Expenses Under $25  Missing Receipt Affidavits (MRAs)

9 9 10 10

7-8

REPORTING REQUIREMENTS

10

REIMBURSEMENTS FOR THIRD-PARTIES

10

DEPARTMENTS RESPONSIBLE FOR TRAVEL PROCESS Controller's Office  Procurement Card  Reimbursements  Return Excess Travel Advance Funds  Sponsored Programs

10 10-11 11 11

Risk Management Services  Travel Insurance or Liability

11

Procurement Services Department  Questions Regarding Campus Travel or Car Rental Programs

11

APPENDIX Missing Receipt Affidavit Third Party Verification Form Travel Authorization Form

PRATT INSTITUTE TRAVEL POLICY Pratt Institute Reimbursement Policies for All Travel Related Expenses Expenses Overview The purpose of this Travel Policy (the “Policy”) is to provide departments, supervisors, and employees with specific policies and procedures regarding Pratt Institute’s business and travel expenses. The primary emphasis of this Policy is on business and travel expense reimbursements because those expense reimbursements are the focus of Internal Revenue Service (“IRS”) accountable plan rules under Publication 463. Business and travel expenses that are reimbursed following IRS accountable plan rules are not subject to income or employment taxes (e.g., federal income tax withholding, social security taxes or Medicare taxes). The IRS has issued a number of regulations which further define these requirements, and this Policy is designed to meet them. Very generally, the following are the IRS requirements for tax-free reimbursements of expenses under an appropriate accountable plan:   

There must be a business connection for the expense; that is, you must have paid or incurred deductible expenses while performing services as an employee of Pratt. The expense must be reasonable and necessary; and There must be an ordinary, necessary, and reasonable accounting for the expense.

The responsibility to observe the guidelines and requirements rests both with the employee traveling and/or incurring business expenses and the respective department head who certifies conformance to these guidelines by approving the expenditure(s). The same judgment and consideration applies to travel, entertainment, and business expense reimbursements as to any Pratt Institute transaction. Reimbursement should be sought and authorized only for expenses that conform to this Policy, are ordinary, necessary, and reasonable both in amount and relative to its purpose. Any Pratt employee conducting Institute business is expected to exercise the highest level of integrity and professional judgment at all times.

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Pre-Trip Planning and Cost Estimates The following items should be considered in planning a trip:        

Reason for travel Dates of travel Destination(s) Transportation method(s) Lodging requirements Registration fees Meals Other anticipated requirements and expenses

All travel costs must be estimated before the proposed trip is made. These estimates should include expenses to be billed directly to the Institute as well as expenses to be reimbursed to the traveler. Travelers are responsible for:   

Ensuring appropriate approval to travel prior to committing Institute funds or incurring expenses. Coordinating with appropriate department or school to ensure that funds are available to pay for travel. Understanding and adhering to specific travel guidelines required by the applicable funding source, agency, sponsor or other outside group paying for the travel. Those guidelines may be more restrictive than this Travel & Business Expense Policy.

All travel requires advance approval. A “Travel Authorization” form should be completed. This form will include all cost estimates and will provide signature lines for required approvals. The form must be approved in writing, in advance, by the traveler’s first line supervisor. A copy of the form should be included with travel reimbursement requests and a copy should be kept at the department for post travel reviews and audits. Specific international travel requires additional approval: 

International travel must be approved in writing, in advance, by the department when travel is: To a comprehensively embargoed country (e.g., Cuba, Iran, North Korea, Sudan, and Syria).

Transportation Pratt Institute’s preferred method for making business related travel arrangements (i.e., air, train or bus, rental car) is through Campus Travel, the Institute’s designated travel agency (or “DTA”). Travelers can make their travel arrangements through the DTA online booking tool, or call at the number for desk service assistance to speak with an agent to make travel arrangements. 2

Travelers can call the DTA at 877-394-9941 (8:00am – 9:00pm EST, Monday – Friday) or at [email protected]. Travel arranged via the DTA will directly be charged to the Department via a monthly journal entry. If travel is arranged outside of the DTA whenever possible, employees are required to use their Institute issued PCard for travel related expenses. If an employee does not have an Institute issued PCard, a personal credit card may be used. Air Travel When employees and guests travel for the Institute’s business, travel should be by the least expensive means available, which means air travel in coach class. Requests to fly other than coach class may be granted by an appropriate member of the president’s staff under the following exceptions; 1) medical necessity, 2) extreme emergency, 3) international travel or 4) domestic flights with airtime of three hours or longer. For these exceptions, an upgrade to economy plus or similar status is allowed with prior approval. Under no circumstances is business class or first class allowed. 

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When you make a reservation through the DTA, the cost of the airfare will be billed to Pratt directly and charged to department via journal entry monthly. To confirm that you are a Pratt employee, provide the travel agent with your Pratt ID number and department number for billing purposes. While some restrictions or penalties may apply, advance reservations secure the lowest fares. Pratt has a standard lowest logical fare (LLF) policy for travel. When you book your itinerary, as standard practice our DTA agent will also provide the traveler LLF as an option for best savings (i.e., Pratt’s LLF is T2/K1/200 which reads +/- 2 hour variance (T2), one connection (K1), and +/- $200 (200) cost difference allowed from lowest logical price). Air carrier selection based upon your frequent flyer affiliation is allowed. Frequent flier mileage and other discounts are applied for upgrades and other services on an automated basis from the traveler profile account. Purchases made through another agency are not permitted. Exceptions to the Pratt policy must be approved in advance by the Controller's Office. Unused tickets will be matched against potential travel destinations so that unused tickets are used.

Federal Funding Restrictions Federal regulations require Pratt Institute travelers using federal funds to travel on U.S. Flag Carriers domestically, when departing from the U.S. and where available abroad, even if less costly foreign flag carriers are available. However, travel on foreign flag carriers is acceptable when: 

  

It meets an exception in the Open Skies Agreement, which allows federally-funded air travel on European Union airlines as well as U.S. Flag Air Carriers. There are also Open Skies agreements with Australia, Switzerland and Japan. There are extenuating circumstances such as 1) medical necessity, 2) extreme emergency. No U.S. flag carriers provide service in the area of travel. Use of foreign carriers is a matter of necessity as defined by the U.S. General Services 3

Administration’s Federal Travel Regulation Part 301-10. Rental Car Use When a rental vehicle is required, contact the Pratt DTA to make arrangements. Pratt has corporate accounts with various car rental agencies that the designated travel agency will contact on the traveler’s behalf to make reservations. Below is information on various car rental companies:

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Reservation No.

Local Address

Local No.

Toll Free No.

www.avis.com

800-230-4898

211 Atlantic Avenue Brooklyn, NY 11205

718-522-7407

800-222-2847

www.budget.com

800-218-7992

NY Marriott-Brooklyn Bridge 333 Adams Street Brooklyn, NY 11201

718-237-3190

877-516-7275

www.budget.com

888-633-3875

Verti Park 169 Tillary Street Brooklyn, NY 11205

718-222-1341

888-633-3875

www.hertz.com

800-654-3131

238 Atlantic Avenue Brooklyn, NY 11205

718-522-0532

888-777-3807

www.alamo.com

844-351-8648

239 State Street Brooklyn, NY 11201

718-488-8800

844-357-5131

www.enterprise.com

718-488-8800

239 State Street Brooklyn, NY 11201

718-488-8800

855-266-9565

www.nationalcar.com

718-488-8800

239 State Street Brooklyn, NY 11201

718-488-8800

877-222-9058

Pratt allows rentals of economy, compact, subcompact, or standard vehicles only. In exceptional cases, the travelers are allowed to rent other types of vehicles (i.e., a van is required when there are several travelers in one car, when equipment is being transported, etc.). An explanation must be provided and submitted to the Controller’s office along with other travel related documentation when the trip is completed. Travelers should choose the Collision and Supplemental liability. We do have coverage under Pratt’s auto policy however purchasing the insurance from the car rental agency would act as a buffer for our policy.

If you have an automobile accident while traveling on Pratt business, notify Pratt Public Safety at 718-636-3542 ([email protected]) as soon as is practical. Personal Car Use When an employee’s business travel necessitates the use of the traveler’s personal vehicle, the traveler will be reimbursed at the federally approved mileage rate as communicated by the Controller’s office, plus tolls. Effective January 1, 2017, the reimbursable mileage rate is 53.5 cents per mile, which is in accordance with IRS guidelines. Mileage reimbursement should never exceed the cost of alternative transportation. It is important for employees to be aware that the vehicle owner’s insurance policy will always 4

provide the primary liability coverage and the Institute will not provide reimbursement for any deductibles. All incidents should be reported to the Institute’s Risk Manager at the main extension 3784, for review by the Institute’s commercial automobile liability insurance carrier to determine whether there is secondary liability coverage available to respond relative to any amounts exceeding the employee’s primary liability coverage. Lodging The Institute will reimburse employees the actual cost of moderately priced accommodations. New York State (NYS) sales tax will not be reimbursed. Sales tax exemption certificates are available and can be obtained from the Purchasing office and should be presented at the hotel when checking in to a NYS hotel. Please note that the NYS sales tax exemption number is located in the lower left portion of the Pratt Institute JP Morgan MasterCard which may be honored by the vendor to eliminate the sales tax. When traveling, stay in reasonably priced, commercial class hotels and motels.   

To ensure the lowest possible rates, make your lodging arrangements through Pratt's designated travel agency. Ask for educational or corporate discounts at all hotel and motels, many of which charge reduced rates to those who identify themselves as faculty or staff members. You will be reimbursed for the actual reasonable expense of lodging for each night that you are traveling away from home.

Lodging with friends or relatives: When it is convenient for the employee to stay with friends or relatives, employees may take advantage of staying with friends or family who live at the travelers' business destinations in order to save the Institute the cost of lodging. In lieu of reimbursement for actual lodging and meal costs, the Institute will provide a per diem rate of allowance that is intended for each twenty-four (24) hour period or for a period of less than twenty-four (24) hours if overnight lodging is required. The per diem allowance for international travel and travel within the United States, travelers may request reimbursement of eighty-five dollars ($85) for in-state travel and one hundred fifteen dollars ($115) for out-ofstate and international travel. In the latter case, the per diem is reduced for unallowable meal costs. This allowance is a payment in lieu of reimbursement for lodging and actual meal costs, and applies whether or not there are actual lodging costs. If either lodging or meals are included in conference or program fees, reimbursement must be reduced by the applicable amount. Meals and Entertainment General Meals and entertainment expenses are allowable expenditures if they are reasonable and necessary expenses directly related to the business or functions of the Institute and consistent with Pratt’s not-for-profit status. Departments may choose to be more restrictive than this policy due to budget constraints and/or other reasons; however, the maximum amounts set forth in this policy may not be exceeded unless extraordinary circumstances dictate otherwise. 5

While it is not encouraged, a limited amount of alcohol in connection with a traveler’s meal is reimbursable. Please note, however, that reimbursement for alcohol purchases is prohibited under government (Federal and state) grants. Meals While Traveling - Domestic Employees have the option of choosing one of two meal management options while traveling domestically: (a) the per diem allowance or (b) actual expense reimbursement. The per diem allowance is a daily rate that may be selected in lieu of submitting receipts. The actual expenses method requires the submission of receipts to support expenses claimed. Per Diem Allowance The traveler can elect to be reimbursed for meals and incidentals as outlined by the U.S. General Services Administration (GSA) tables. The allowed expense is determined by the traveler’s destination and will be calculated in the expense reporting system. Please note that the GSA generated per diem amount on the first and last day of each trip will be adjusted down by 50% as these days do not constitute full travel days. Travelers, however, may request a waiver to this downward adjustment from their supervisor. NOTE: The per diem rate must be reduced when a colleague, vendor, alumnus or other third-party pays for a meal. An example of a per diem rate adjustment is as follows: When the conference attended provides some meals as part of the conference registration fee. For example: a traveler attends a three-day conference. The conference provides breakfast for all attendees of the conference at no charge to participants. Since the cost of breakfast is part of the conference registration fee, the traveler is not entitled to reimbursement for breakfast during the days breakfast is provided. The traveler can account for these adjustments in his/her per diem allowance when completing their travel expense report. Actual Expenses The maximum daily allowance for domestic travel is $85. All expenses must be receipted and included in the employee’s travel expense report. Standard practice allows for tipping ranges from 15% to 20% of the bill. Tips for meals in excess of 20% of meal cost will not be reimbursed. Meals While Traveling - Foreign Due to fluctuation in exchange rates, foreign travel reimbursement will be made based on (a) the standard per diem rate of $85; or (b) actual receipted expenses to a daily maximum of $100. Standard practice allows for tipping ranges from 15% to 20% of the bill. Tips for meals in excess of 20% of meal cost will not be reimbursed. For all actual expenses for meals while traveling, receipts, regardless of amount, are required in order for a reimbursement to be issued. If a group of colleagues split a bill and 6

original receipts are not readily available, the traveler should document the cost of their individual portion of the bill as well as provide an explanation for the meal charge. In addition, costs incurred for meals must be reasonable; meals may not be extravagant. Actual Lodging Expenses, Plus a Per Diem Meal and Incidental Expenses Reimbursement: This method is allowed for both domestic and international travel. Actual lodging expenses paid with the traveler’s personal funds will be reimbursed when supported by itemized receipts showing payment in full. Travelers may request reimbursement for meals and incidental expenses at the federal reimbursement rates for travel to destinations outside of New York. Reimbursement for meals and incidental expenses for travel within New York is limited to the lowest federal meal per diem rate applicable to New York; this per diem rate is applicable to all travel within New York even if the U.S. General Service Administration designates a higher rate for a specific city in New York. The meals and incidental expense per diem rate is determined by the U.S. General Service Administration and the U.S. Department of State. Links to the approved meals and incidental expense per diem rates applicable to this section can be accessed via the http://www.gsa.gov/portal/content/104877 website. Travelers may request reimbursement at the federal rate for each full twenty-four (24) hour period. Please note that the GSA generated per diem amount on the first and last day of each trip will be adjusted down by 50% as these days do not constitute full travel days. Non-Travel Business Related Meals 

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Meals with a clearly substantiated business purpose: In cases where Institute employees meet over a meal when not traveling, the cost of the meal is considered a non-reimbursable personal expense unless: 1) the primary purpose of the meeting is to conduct business and 2) there is a clear and compelling reason to meet over a meal. Generally, these conditions are met when it is not possible for employees to meet during other working hours, and the purpose of the meeting is to conduct business in accordance with a formal agenda. Non-travel related meals eaten alone do not qualify for reimbursement.

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Occasional meals provided to a group of employees, such as at a holiday party should generally serve the purpose of promoting goodwill, employee relations, morale, or to celebrate retirements, or major (e.g., 25 years) anniversaries of employment with the Institute. They must be reasonable and should not be extravagant. Meals which may be classified as personal events such as birthdays, weddings, showers, etc. are not allowable expenditures.

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Meals that do not fall into one of the classifications outlined above will be considered taxable wages with the appropriate Federal, state and FICA taxes deducted from the employees wage payment.

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Required documentation for business related meals includes the date, time, and location, nature of the gathering and names and titles of those in attendance. In cases where there are more than six people in attendance, the name of the committee or organization and the number of participants is sufficient. Original receipts must accompany the request for reimbursement of actual meal costs. 7

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Meal costs must be approved by the employee’s department head/supervisor whether submitted through a travel summary form or as part of the Pratt JP Morgan MasterCard monthly statement of activity.

Business Entertainment Individuals conducting fund raising are limited to a maximum of $150.00 per day for each person entertained. Entertainment expenses greater than $150.00 per day/per person must be approved by the Vice President for Finance & Administration or the President. Personal entertainment expense (other than meals) is not normally reimbursable. If an employee is entertaining Institute guests for business purposes, names of those being entertained should be provided along with the purpose of the entertainment. Failure to provide that information may result in the IRS treating the reimbursement as taxable income to the employee. Other Expenses Companions Expenses for a companion are not reimbursable unless the companion’s attendance is necessary for business purposes. Traveling with Your Spouse or Other Dependents - No travel, lodging, or meal expenses for your spouse or other dependents, above the cost of your expenses will be reimbursed to you by Pratt. Personal travel expenses for spouse or other dependents cannot be incurred in the name of Pratt with the intention they will be reimbursed by you to Pratt. If you book spousal or other dependent travel through Pratt’s designated travel agency, you must pay the travel agency directly. The agent will provide a separate invoice for family members upon request. Miscellaneous Any necessary expense over $25, not previously described, must be receipted and described. Non-reimbursable Expenses The following will not be reimbursed by the Institute: 

Fines for parking or moving violations.

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Movies or other personal entertainment for stays of four consecutive nights. Laundry services (for stays of four consecutive nights or less).

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Lost or stolen personal property (including cash). Costs incurred at home, such as childcare. Life, flight or baggage insurance (except as noted previously). Companion expenses. 8

Travel Advances Employees who travel regularly as part of their work responsibilities should use the Pratt JP Morgan MasterCard to cover expenses associated with their business trip. For trips involving students that need a cash advance, requests will need to be processed through an advance request. Advances are limited to a maximum of $500 for the travel. Complete an advance request form and forward it to Accounting to be processed. The Controller’s Office monitors unreconciled travel advances and sends email notifications to travelers if the advance is not cleared. Advances must be reconciled within 30 days of travel completion. If an individual fails to substantiate the business expenses covered by the travel advance within 60 days of the date of issuance, the Institute will deduct the travel advance from the employee’s paycheck. Note: individuals traveling on Pratt business, who are not Pratt employees, are not eligible to receive a travel advance. Travel Reimbursement All reimbursements to employees for travel expenses must be approved by an authorized individual (i.e., designated budget authority) who is at least one level of management above the person submitting the request. All travel expense reimbursements will be processed via expense reimbursement forms. All the pertinent information must be included with the expense reimbursement form to substantiate travel (i.e., copy of itinerary to support meals at the travel destination). Please see receipt requirements and missing receipt affidavits for additional information on travel reimbursement. Travel reimbursements must be reconciled within 60 days of travel completion. If an expense report is submitted within 61-90 calendar days after the expenses were incurred or after returning from travel, the request will be reviewed and, if determined to be taxable, will be reported to payroll as taxable income (non-employees and students will be reimbursed without any taxes withheld). No reimbursement will be given for expenses submitted more than 90 days. Receipt Requirements Receipts are required for all expenses ($25 or greater) submitted for travel related expenses. Receipt documentation will be considered adequate if it shows the vendor, amount, date, place and essential character of the expense. Canceled checks (front/back) by itself do not provide proof of payment without documentation to show that it was for a business purpose.

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Expenses under $25: Documentary evidence, i.e. receipt, is not required if the following apply:  

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Expense, other than lodging, is less than $25. Receipts are always required for lodging. Incidental expenses may be totaled in reasonable categories without receipts as long as the total is under $25 (e.g., parking, telephone calls/internet or taxi/shuttles). Destinations must be listed for all taxi and shuttle expenses.

Missing Receipt Affidavits (MRAs): travelers who lose receipts required by this policy must submit completed, signed MRA and proof of payment with their reimbursement requests. MRAs must be used as exceptions, not on a regular basis. MRAs lacking required information or documentation itself will be returned to the authorized signer. Reporting Requirements The Institute must implement and adhere to regulations issued by the IRS and other governmental agencies. All travel expense summaries must include the following:  

Information to establish the business purpose of the travel, entertainment or other expenditure; the amount, date, and place for each expenditure; Substantiation of the expenditure with original receipts (except for per diem meal; expenses); and, if necessary, the return of any unused cash advances (due within 30 days of completing the trip).

Reimbursements for Third-Parties Expenses to be reimbursed by a third-party ( individuals, government, public or private entity) can be charged to the Institute if the expenses are for a purpose that fulfills the business purpose of the individual in carrying out their responsibilities as an employee of the Institute (business related). The third-party verification form should be completed and forwarded to the Controller’s Office for review and to establish a receivable for the expected reimbursement to offset the expense. The following Pratt departments are responsible for various aspects of the travel process: 1. Controller's Office - The Controller's Office is responsible for the development and oversight of all travel policies and procedures. a. Procurement Card - If you have questions regarding the use of the Chase Procurement Card (p-card), contact the p-card Administrator on extension 5913. You may pick up your Chase P-Card from the ISC Bldg., 4th floor. b. Reimbursements – Accounting reviews all employee cash reimbursements for accuracy and compliance with established policies and procedures prior to processing employee reimbursements over $25.00. Reimbursements for transactions 10

under $25.00 must be taken to the Bursar’s office. In addition, Accounting processes employee travel advance requests, checks advance payments that may be required such as hotel deposits, registration fees and non-travel related employee reimbursements. Contact Accounting if you have questions about the status of your travel advance or reimbursement. c. Return excess travel advance funds to the Controller’s Office using an advance form. Do not send reimbursement of excess funds through interoffice mail. d. Sponsored Programs - If your travel is funded by grant or contract monies, and you have travel related questions, please contact the Controller. 2. Risk Management Services - Direct questions regarding travel insurance or travel liability issues to the Institute’s Risk Manager at the main extension 3784. If an accident occurs when using a rented vehicle, notify Pratt Public Safety at 718-636-3542 ([email protected]) as soon as is practical. 3. Procurement Services Department - Direct questions regarding Pratt’s designated travel agency and/or car rental programs to [email protected].

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APPENDIX Missing Receipt Affidavit

1

Third Party Verification Form

2

Travel Authorization Form

3

Pratt Institute Missing Receipt Affidavit

Employee Name: Department Name: Vendor Name: Date of Purchase:

Items Purchased and Description

Payment Transaction #

Quantity

Unit Price

Total Price

Receipt Total: Nature of expense (please be specific and detailed):

Additional Comments/Explanation:

By signing below, I certify that the above goods/services were purchased via Procurement Card/or personal funds and that the goods/services were for official Pratt Institute business.

Employee Signature:

Date:

By signing below, I certify that I have approved the above purchase and that the purchase was for official Pratt Institute business.

Department Head Signature:

Date: 1

Pratt Institute Third Party Verification Form

Employee Name: Department Name: Third-Party Entity Name: Third-Party Entity Address: Third-Party Entity Contact: Dates of Travel: Business Purpose Travel Description

Total Price

Total Reimbursement: Nature of expense (please provide details of business related expenses):

Additional Comments/Explanation:

By signing below, I certify that the above goods/services were purchased via Procurement Card/or personal funds and that the goods/services were for official Pratt Institute business. Additionally, Pratt Institute will receive a reimbursement from the third-party entity within a reasonable amount of time.

Employee Signature:

Date:

By signing below, I certify that I have approved the above purchase and that the purchase was for official Pratt Institute business.

Department Head Signature:

Date: 2

Pratt Institute Travel Authorization Form

Name of the Traveler Title Department/Faculty Phone #

Email

Purpose of Travel

Destination (s) Departure Date

Return Date

Budget for the Trip Airfare Mileage (53.5 cents/mile) Registration Fee(s) Lodging(s) Meals Car Rental Incidentals Other (please list) Taxi Parking Total Cost of Trip Budget Code to be Charged Authorized Signatures

Signature of Traveler

Print Name

Date

Signing Officer if Different from Traveler Print Name

Date

VP or President (if applicable)

Date

Print Name

This form must accompany all requests for reimbursements 3