Home : Financial : Travel

In accordance with Minnesota State Statute, 15.435, Section 20, whenever University funds (regardless of whether those funds originated from private donors; state or federal grants, contracts, or appropriations; or from any other source) are used to pay for airline travel for University employees, any credits or other benefits issued by the airline must accrue to the benefit of the University and may not be used by the University employee for personal travel.

University employees, rather than departments, are responsible for tracking miles earned with University funds, providing records of such tracking if requested, and otherwise complying with this law.

This policy is established to comply with Minnesota State Statute 15.435, Section 20, effective July 1, 1993.

There are no procedures for this policy.

• Employee Expense Worksheet (UM 1612)

Subject	Contact	Phone	Fax/Email
Primary Contact	Jan Kopczeski	612-624-1696	kopcz002@umn.edu
Policy & Procedure Questions	University Business Travel Coordinator OR University Financial Helpline	612-624-1696 612-624-1617	fsshelp@umn.edu

Airline Frequent Flyer Programs:

Programs offered by individual airlines that award credits towards free or reduced price tickets or other benefits based upon the purchase of an airline ticket. Most major U.S. airlines have frequent flyer programs including Northwest Airlines, United Airlines, American Airlines, Delta Airlines, and Continental Airlines. Programs offered by non-airline entities, such as credit card companies, are not included within the definition of "Airline Frequent Flier Programs."

Frequent Flyer Miles:

Miles awarded by individual airlines that can be redeemed for free or reduced price airline tickets or other benefits on the same airline or a partner airline.

Frequent Flyer Account:

Account set up with an airline for an individual traveler for the purpose of accruing miles to be redeemed for free or reduced-price airline tickets or for other benefits. For most major U.S. airlines, current minimum frequent flyer miles needed to obtain free round-trip ticket is 25,000 miles.

Public Funds:

All funds received by the University from any funding sources, regardless of whether those funds originated from private donors; state or federal grants, contracts, or appropriations; or from any other source.

Deans/Directors & Dept Heads

Communicate this policy to all employees who travel at the University's expense.

Traveling Employees

Track frequent flyer miles and any other benefits awarded as a result of purchasing an airline ticket with University funds. Maintain records that segregate credits awarded for personal travel from credits awarded for tickets purchased with University funds. Never use credits awarded as a result of purchasing a ticket with University funds for non-University purposes. Make reasonable efforts to use University-earned credits for business travel for yourself or for another University traveler. Provide documentation of University-earned credits upon request.

University Business Travel Program Coordinator (Purchasing Services)

Educate and keep the University community informed about the policy.

Office of Internal Audits

Audit for compliance with this policy.

• Frequent Flyer Information - Airline Frequent Flyer Programs

Applicability of the Policy

1. Does the policy apply to individuals other than employees?

   Answer: No. This policy applies only to University employees. However, departments may choose to apply the policy to non-employees, such as students, contractors, volunteers, or other individuals who travel at University expense.

2. Does this policy apply to frequent flyer miles accrued while traveling on sponsored funds?

   Answer: Yes. The policy and the Minnesota statute refer to "public funds", which include any funds received by the University from any source, including sponsored funds.

3. If the federal grant, contract, or the policy of the granting agency allows me to use frequent flyer miles for personal use, may I do so?

   No. Although the funding source may not prohibit the use of frequent flyer miles for personal use, the State of Minnesota does prohibit such use.

4. Does the policy apply regardless of where or how the tickets are purchased?

   Answer: Yes.

5. Why don't miles accrue to a department or central University pool rather than to an individual?

   Answer: Airlines will only issue mileage credits to individuals and not to corporate entities such as the University.

Tracking Frequent Flyer Credits

1. If I travel on University business must I use a frequent flyer account?

   Answer: The Statute does not require employees to establish a frequent flyer account.

2. How do I track business miles separately from personal miles?

   Answer: You may establish a separate frequent flyer account for University business travel. This assures separate accounting and appropriate documentation. Alternatively, if you choose to have a single account, keep a copy of your frequent flyer statements and indicate the trips flown at University expense.

3. Don't the airlines allow only one frequent flyer account per traveler?

   Answer: Northwest Airlines, Delta Airlines, and American Airlines will allow you to set up separate accounts by slightly varying the account information provided to the airlines (e.g, using a middle initial on one account but not on the other or by using a home address for your personal account and a work address for your University [business] account). Contact the airlines for more information.

4. Do I own Bonus Miles?

   Answer: No. If an airline awards Bonus Miles in connection with the purchase of an airline ticket for University travel, whether based on status (e.g., Silver/Platinum/Gold Member) or other airline promotions (e.g, on-line check-ins) those Bonus Miles must accrue to the University.

5. If I have credits accrued on a specific airline, should I give a preference to that airline over other airlines in order to maximize the likelihood of earning a ticket for the University?

   Answer: It depends on the cost of the ticket. Preference should not be given to the specific airline if the ticket is higher priced than a flight on a non-membership airline.

Using Free Tickets

1. What is the minimum number of miles I need to accrue in order to get a free ticket for the University?

   Answer: Currently, most of the major airlines require a minimum of 25,000 miles for a domestic roundtrip ticket. (Refer to Airline Frequent Flyer Program for listing of airlines.)

2. Can miles be combined or pooled from different employees' frequent flyer accounts to have enough miles for a free ticket?

   Answer: No. The airlines will not allow individuals to combine or pool miles from different individual's accounts.

3. May I use the miles to upgrade to business or first class?

   Answer: University travel policy does not permit reimbursement of first class travel. Business class travel is permitted for trips of 8 hours or more on the same flight. If your trip will last 8 hours or more on the same flight, you may use your frequent flyer points to upgrade to business class.

4. If I have accrued enough miles for a ticket, can the ticket be used by another University traveler?

   Answer: Yes. The traveler who earned the points may redeem them for a ticket in another traveler's name.

5. How do I get a ticket for another University traveler?

   Answer: The individual who has accrued the miles may contact the airlines and arrange a ticket in the other individual's name.

6. If I use my own personal frequent flyer miles to purchase a ticket for University business, can I be compensated/reimbursed?

   Answer: No. The University will not compensate/reimburse employees or non-employees for use of personal frequent flyer miles.

Monitoring Compliance

1. Will compliance with this policy be monitored?

   Answer: Yes. Travel by individuals is subject to review or audit.

2. What is the penalty for non-compliance?

   Answer: By virtue of Minnesota statute, the University "owns" frequent flyer credits/benefits awarded when University funds are used to pay for an employee's airline ticket. As such, using these credits for personal or non-University use is akin to any other misappropriation of University funds or property, and may subject an employee to discipline, up to and including termination. Repayment of funds may also be required based on fair market value. In addition, converting frequent flyer miles earned through a ticket purchased with University funds for personal use may subject an employee to civil or criminal prosecution under Minnesota law. In such cases, employees may not be eligible for defense and indemnification under the Board of Regents Legal Defense and Indemnification of Employees Policy, which precludes coverage when an employee has reasonable cause to believe his or her conduct was unlawful.

• Minnesota State Statue 15.435, Section 20 - Frequent Flyer Benefits

  Minnesota Statute 15.435 section 20 - Frequent Flyer Benefits which stipulates:

  1. Whenever public funds are used to pay for airline travel by an elected official or public employee, any credits or other benefits issued by an airline must accrue to the benefit of the public body providing the funding. In the event the issuing airline will not honor a transfer or assignment of any credit or benefit, the individual passenger shall report receipt of the credit or benefit to the public body issuing the initial payment within 90 days of receipt.
  2. By July 1, 1993 the appropriate authorities in the executive, legislative, and judicial branches of the state and the governing body of each political subdivision shall develop and implement policies covering accrual of credits or other benefits issued by an airline whenever public funds are used to pay for airline travel by a public employee or an elected or appointed official. The policies must apply to all airline travel, regardless of where or how tickets are purchased. The policies must include procedures for reporting receipt of credits or other benefits.
• Administrative Policy: Traveling on University Business

Effective:

January 2006

July 1, 1993, in Policy 3.8.3, Traveling on University Business