Employees (faculty and staff) traveling on University business are expected to choose the least costly method of transportation and lodging that meets the traveler's scheduling and business needs. Use of the University's preferred travel agencies and vendors is recommended. Employees are responsible to ensure that travel expenses are valid University business-related, in accordance with University policies and procedures and are a prudent use of public and University funds. All travel expenses incurred by employees must be substantiated and documented in accordance to University policy and applicable federal and state laws.
Departments have the discretion to require their employees to obtain permission to travel before expenses are incurred.
Travel on sponsored funds has unique requirements because the sponsor may have more or less restrictive rules than the University. The rule of thumb is to follow the most restrictive applicable policy. It is important to note that certain costs not allowed on non-sponsored funds may be allowed on sponsored funds, if the sponsor has given prior written approval for the expense. To request prior approval, the Principal Investigator must justify the business need for the expense to the appropriate business officer at the sponsoring organization. For further information, see Travel on Sponsored Funds in Frequently Asked Questions.
When personal and business travel is combined, expenses must be clearly documented and may not exceed the lowest available cost of a direct or uninterrupted route. If the traveler uses an indirect route or interrupts travel for personal convenience, any additional expenses incurred are the sole responsibility of the traveler. Further information about lodging, meal rates, and mileage is available in Appendix P: Traveling on University Business - Rates.
Expenses incurred by a spouse or personal guest are not reimbursable expenses, unless they conform to those acceptable conditions outlined in the Administrative Policy: Hospitality and Special Expenses.
Travel expenses for non-University employees, such as consultants, speakers, lecturers, visiting professors, and students are reimbursed in accordance with contract for professional services and vendor payment procedures. See the Administrative Policy: Purchasing a Professional Service.
In accordance with Minnesota 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 airlines must accrue to the benefit of the University and may not be used by the University employee for personal travel. See Administrative Policy: Accrual & Use of Frequent Flyer Miles.
The University guideline for domestic lodging is that the nightly lodging rate not exceed 150% of the lodging rate for that city as referenced on the US Government General Services Administration (GSA) website (www.gsa.gov). The guideline does not apply to conference travel, where the traveler is paying a pre-negotiated rate that is offered by the conference.
If a request for reimbursement is made for non-conference lodging, which exceeds the guideline and was not pre-approved, the supervisor/manager may deduct the overage from the reimbursement request.
For non-conference travel, if the lodging rate (excluding applicable taxes) will exceed the guideline, pre-approval must be obtained from a supervisor/manager who is at least one level higher in authority than the traveler or the appropriate designee. See UM 1636 Request for Domestic Lodging Exception.
Campuses, Colleges and Departments are not allowed to establish policies that differ from the University wide policy. For more information see the Travel Frequently Asked Questions.
Exclusions
This policy does not govern Hospitality expenses or other non-travel related expenses. Refer to Administrative Policy: Hospitality & Special Expenses. Travel expenses for individuals who are not employees of the University but are providing services to the University, such as consultants, speakers, lecturers, visiting professors, and visiting students (scholars) are reimbursed in accordance with contract for services and vendor payment procedures. See the Administrative Policy: Purchasing a Professional Service in the policy library for more information.
Travel expenses for University students not performing services to the University may be paid or reimbursed as a fellowship or scholarship.
Special Situations
Air Transportation
Travel by employees who are Certified Pilots, and choose to pilot their personal or leased aircraft, will not be considered acting in an official capacity of the University and will not be reimbursed for any related expenses.
Chartered Transportation.
The University requires charter carriers, such as charter airlines, helicopters, buses and boats to demonstrate a specified level of insurance coverage when they are providing services to the University. Using charter companies that have negotiated University contracts will ensure that proper insurance coverage is provided. Currently, several bus companies are under contract to the University.
For bus charters, see the Bus Charter Reservation Information Sheet in Appendix - L of this policy. For Plane Charters see Appendix N.
For chartered aircraft, coordinate campuses and out-of-state charter contracts must meet the following criteria and be "pre-approved" by the Risk Management & Insurance Office at 612- 625-0062:
- Must be FAA certified under Part 135 and provide proof of certification.
- Must receive a Certificate of Insurance evidencing $10,000,000 in aircraft liability insurance along with naming the Regents of the University of Minnesota as additional insureds.
Private plane.
Travelers should not be transported using a private plane or non-approved air charter unless an exception is given by the University-Risk Management Office (612-625-0062). Those not receiving this pre-approval will NOT be reimbursed for mileage expenses.
First-class.
The University will NOT reimburse first class travel. Business class may be reimbursed on flights lasting 8 or more hours. Frequent Flyer credits can be used to upgrade to business class ONLY on flights lasting 8 or more hours. For further information regarding travel on sponsored funds, see Travel on Sponsored Funds in Frequently Asked Questions.
Maximum Number
No more than 20 University faculty, staff or regents may fly on the same plane at the same time.
Vehicle Transportation
Personal vehicle.
Personal vehicles are NOT covered by University insurance. Use of a personal vehicle for University business requires approval from an appropriate authority. The traveler is responsible to insure a personal vehicle used for University business.
University Student or Non-employee traveling with a University program.
The University does NOT insure students or non-employees who are traveling with University programs. Students should be advised that such insurance is NOT provided and that it is their responsibility to obtain appropriate levels of insurance. Coverage for non-employees will be specified by contract or agreement.
This policy has been established to provide standards that govern safe, and economical University travel while maintaining the necessary controls, accountability, compliance with applicable federal and state laws and administrative efficiency.
Note: Safe, cost effective travel requires good planning. See Appendix A - Planning Travel, before you perform any of the following procedures.
Employee Payment (EP) form in Financial FormsNirvana is the preferred method for making non payroll payments to employees.
- Cash Receipts (CR)
- Document recording deposit of cash / checks or wire transfer submitted to the Bursar. Document states amount of deposit, department account to be credited for the funds, the activity generating the funds and the source of funds. CR is used to deposit unspent travel advances that must be returned to the University.
- Commuting
- Travel between work and home is considered personal travel and is not a reimbursable expense.
- Domestic Travel
- Domestic Travel includes travel within the continental U.S. (CONUS), and to other Non-Foreign U.S. Overseas locations: Alaska, Hawaii, American Samoa, Guam, Midway Islands, Northern Mariana Islands, Puerto Rico, Virgin Islands (U.S.), and Wake Island.
Note: Per diem rates for Non-Foreign U.S. Overseas locations (also known as non-contiguous US locations) can be found at the U.S. Department of State's website for Foreign Travel, in a separate section following the International per diem rates.
- Employee Payment (EP) form in Financial Forms Nirvana (FFN)
- Electronic document processed in FFN for non-payroll employee reimbursements, advances or payments. The EP is used for employee travel, parking and mileage, moving, and miscellaneous expenses. It is also used for human subject and royalty payments to employees.
- Employee Travel Reimbursement Form (BA 1303)
- A paper document used when an employee requests reimbursement for travel expenses or accounts for use of travel advance funds.
- Encumbrance
- A legal obligation of the University to pay a vendor or reimburse an employee or for one department to pay another department, when the payee performs as agreed. The amount is set aside once the formal agreement to purchase the goods or service goes into effect.
- Extended Day Travel
- Extended day travel is at least twelve hours in duration and does not require an overnight stay
- International Travel
- Travel to any country or territory outside the continental U.S. (CONUS), and other Non-Foreign U.S. Overseas locations (Alaska, Hawaii, American Samoa, Guam, Midway Islands, Northern Mariana Islands, Puerto Rico, Virgin Islands (U.S.), and Wake Island).
- Local Travel
- Travel within the city or metropolitan area of employee's University location (office) or campus for the purpose of conducting authorized official University business. Note: Reimbursable expenses for use of personal vehicles are limited to the current mileage rate and reasonable parking fees.
- Office of Sponsored Projects Administration (SPA)
- Group responsible for administering sponsored funds and monitoring compliance with the terms of the grant or contract.
- Payment Voucher Authorization (PVA) (BA 1305)
- A paper document authorizing payment for travel related expenses to a vendor when there is no itemized invoice. Reimburse employees for travel related payments that occur prior to the trip start date. Reimburse employees for local travel expenses such as parking and mileage.
- Sponsored Funds
- Funds provided by a grant or contract and administered by the office of Sponsored Projects Administration (SPA).
- Travel Authorization (BA 1302)
- A paper document used to authorize travel, encumber funds or request a travel advance.
- Travel Advance
- Money requested by an employee before a travel expense is incurred. Travel advances must be accounted for when the trip is completed. Any portion of an advance that is NOT used for an authorized expense must be repaid to the University.
- Travel Status
- Business travel that requires an overnight stay.
- Vice President / Chancellors
- Designate and document approval authority for staff business travel and for student travel as part of academic programs.
- Deans / Dept Heads
- Designate and document approval authority for staff business travel and for student travel as part of academic programs. Determine the documentation, if any, required to record approval. Inform employees of laws and policies.
- SPA
- Review and approve documents for sponsored accounts.
- Area Manager
- Monitor reports from Travel Services on the frequency of individual travel. Ensure that frequent flyers take advantage of airline bonus programs. Designate a person that should be notified when a ticket has been earned.
- Disbursement Services
- Process payments. Audit and process cash advance requests. Update policy as necessary. Provide policy information.
- Travel Services Coordinator
- Administer University travel programs, negotiate with travel vendors to insure the best travel values, and keep University travelers and travel arrangers informed about policies, procedures, contracts, and industry conditions, as necessary. Distribute reports periodically to Area Managers that provide information on frequency of business travel at the individual level. The report will contain information from as many sources as practical. Maintain Travel Services policies.
- Traveler
- Comply with this policy. Choose the least costly method of transportation that also meets scheduling needs. Select domestic lodging that meets the University guidelines. Submit required forms and documentation. Notify the designated person in each department when a Frequent Flyer ticket is earned. When required by their department, obtain permission to travel before expenses are incurred. Obtain approval for lodging rates that exceed the University guidelines from a supervisor/manager who is at least one level higher in authority, or the appropriate designee. Obtain approval for travel expenses. Account for cash advances and expenses in a timely manner.
- Amended:
- January 2007 - Dinner expenses are now covered for extended day travel.
- Amended:
- December 2006 - Canada is now considered international travel. Domestic and International Travel definitions, Arranging Travel procedure, and Appendix D and I have been updated to reflect that. Aisle seat charges are not a reimbursable expense. Mileage rate updated for 2007.
- Amended:
- July 2006 - Guideline on what is considered reasonable hotel expense has been added. A procedure and form (UM 1636) has been added to address exceptions to the guideline.
- Amended:
- March 2006 - Updated International Travel definition. Added Instructions to the Employee Expense Worksheet to the Forms section. Rates section updated to include partial per diem table.
- Amended:
- January 2006 - To change policy from reimbursing actual for travel meals to reimbursing per diem rates for travel meals. Frequent Flyer information moved to Policy 3.8.5 - Accrual and Use of Frequent Flyer Miles. The purpose of the changes is to establish that travel expenses require "one-up" approval and to disallow the establishment of or existence of different departmental policies. Most policy sections extensively revised.
- Amended:
- December 2005 - Mileage rate updated.
- Amended:
- October 2005 - Policy Statement language updated in the paragraph addressing travel using sponsored funds. Added Travel on Sponsored Funds questions and answers to Frequently Asked Questions. Updated Domestic Travel information in the rates section.
- Amended:
- September 2005 - Updated mileage rate. Appendix I: Reimbursable/Non-Reimbursable Travel Expenses updated.
- Amended:
- December 2004 - Updated mileage rates to include 2005 rates.
- Amended:
- November 2004 - Added this sentence to Policy Statement: "Employees and non-employees will not be compensated for business use of personal Frequent Flyer miles, vouchers for bumping, discount coupons, or other personal reward/discount documents of value."
- Amended:
- April 2004 - Policy Statement changed: "Travelers should obtain permission to travel before travel begins, from supervisory or designated authority" changed to: "Travelers must obtain permission to travel before travel begins, from supervisory or designated authority."
- Amended:
- January 2004 - Added Common Audit Recommendations ? Travel to appendices.
- Amended:
- December 2003 - Updated Rates Section.
- Amended:
- October 2003- Updated Rates section including the following; meal rates increased to match Federal Government's State Department Per Diem (daily allowance), added international travel, link for currency conversions, and policy clarifications. Procedure 3.8.3.1 also updated.
- Amended:
- August 2003 - Added link to Certified Approvers site and clarified that CA approval must be obtained for travel on sponsored accounts.
- Amended:
- June 2003 - Added new form - Statement in Lieu of Receipt. Updated Rates section to state that gratuities on meals should not exceed 20%. Updated Appendix I to reflect this. Disbursement Services is now Responsible Office (in addition to Purchasing Services).
- Amended:
- January 2003 - Mileage rates updated to $0.360. Wording updated in rates section.
- Amended:
- January 2002 - Mileage rates updated to $0.365
- Amended:
- January 2001 - Mileage rates updated to $0.345, Procedure 3.8.3.2 updated to reflect current requirements for documentation and justification within the Employee Travel Reimbursement Forms.
- Amended:
- August 2000 - Added Frequently Asked Questions Section.
- Amended:
- July 2000 - meal rates changed to Federal Government's State Department Per Diem (daily allowances) rates.
- Amended:
- January 2000 - mileage rates updated from $.31 to $.325 effective January 1, 2000.
- Amended:
- March 1999 - mileage rates updated from $.325 to $.31 effective April 1, 1999.
- Amended:
- January 1998 - mileage rates updated from $.315 to $.325 effective January 1998.
- Amended:
- June 1997 - mileage rates updated to reflect 1997-1998 rates.
- Amended:
- April 1997 - added clarification on Frequent Flyer accounts.
- Amended:
- January 1997 - added meal rates for expensive cities to table & mileage rate change.
- Amended:
- October 1996 - added Appendix N
- Amended:
- March 1996 - added link to Travel Web (Appendix M)
- Effective:
- December 1995
- Supercedes:
- January, 1993 Employee Business Related Expenses
-
To obtain a copy of a historical policy,
e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.
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