I. Purpose
The purpose of this policy is to provide guidance regarding allowable expenses and reimbursements for travel on official state business. (OSBM Policy 5.0.1)
In order to ensure compliance with the State of North Carolina’s policies, the intention of this policy is to mirror the OSBM published travel policies in form and substance where applicable to UNC Asheville’s travel activities. For approved and established practices related to this policy, please refer to the Travel, Process, and Rates webpage on the University’s website. In addition, to approved practices, a listing of “designees” as referenced in this policy can be found.
This policy is intended to also be consistent with the University’s Remote Working Policy (insert link here).
II. Scope
A. Employees traveling on official state business are expected to utilize the most cost-effective and efficient method of travel. Excess costs, circuitous routes, delays, luxury accommodations, and services unnecessary, unjustified, or for the convenience or personal preference of the employee in the performance of official state business are prohibited. (OSBM Policy 5.0.2)
B. This policy is intended to apply only to state employees or other persons on official state business. Official state business occurs when the state employee or other person is traveling to:
attend approved job-related training, or
work on behalf of, officially represent, or provide a state service upon the State’s request. Travel that would not directly benefit the State will not be reimbursable. (OSBM Policy 5.0.3)
C. Subsistence costs are reimbursable for in-state and out-of-state travel on official state business. Out-of-state travel status begins when the employee leaves the state and remains in effect until the employee returns to the state. However, in-state allowances and subsistence rates apply when employees and other qualified official travelers use hotel and meal facilities located in North Carolina immediately prior to and returning from out-of-state travel during the same travel period. (OSBM Policy 5.0.3)
III. Definitions
A. Agency: Any State agency, department, institution, commission or other organization operating from funds deposited with the State Treasurer.
B. Conference/Convention: A formal gathering for the purpose of conducting business and exchanging information.
C. Common Carrier: Commercial scheduled airplane, rail and bus.
D. Curriculum-Related Travel: Travel for which an authorized faculty member has an accredited course of study and is participating with a student group in a pre-approved activity requiring off-campus related travel expenses.
E. Duty Station: The job location to which an employee is assigned.
F. In-State: Within the borders of North Carolina.
G. Non-State Employee:
1. A consultant whose compensation will be paid from a general expense rather than from payroll.
2. An employee of another governmental jurisdiction – local or federal – in whose travel the State may have a business interest.
3. A prospective teacher or other prospective State employee.
4. A student in a State, public college, or university.
H. Travel Status: The employee is away from their normal duty station or home and, while traveling, the employee must be acting in his/her official capacity as required by his/her work activities. (See restrictions for Lodging reimbursement (Section III B) and Meal reimbursement (Section III F))
IV. Policy
A. Travel Reimbursement or Payment
1. Reimbursement Requests (OSBM Policy 5.1.1)
i. Pursuant to G.S. 138-6(c), requests for reimbursement and documented expenditures shall be filed within 30 days after the travel period ends for which the reimbursement is being requested.
ii. Specific dates of lodging must be listed on the reimbursement request.
iii. Each meal reimbursement rate must be listed on the reimbursement request. Departure and arrival times must also be listed on the reimbursement request.
iv. Receipts are required for transportation cost reimbursements including air fare, rental vehicles, taxi, car service, mobile phone ordered car service, airport shuttle service, public transportation, parking fees, tolls, and storage fees.
v. All Travel pre-approvals and reimbursements are processed in Chrome River.
2. State-Issued Credit Card (T-Card) (OSBM Policy 5.1.2)
i. The state has authorized the use of state-issued credit cards (T-cards) for employees during travel on official state business. See UNC Asheville T-Card Manual.
ii. Employees will be responsible for unauthorized costs and any additional expenses incurred for personal preference or convenience. Employee misuse of state-issued credit cards is grounds for termination.
3. Travel Advances (OSBM Policy 5.1.3)
i. All employees traveling on state business who have not been issued state credit cards may be issued advances when authorized by pre-approval in order that personal funds will not be required. No travel advances will be made to non-state employees.
ii. Requests for reimbursement and documented expenditures shall be submitted within 30 days after the travel period or June 30, whichever comes first.
iii. If the trip is canceled or the traveler’s employment is terminated, the advance must be returned immediately.
B. Travel Policies for State Employees
1. Subsistence Rates for Lodging and Meals (OSBM Policy 5.2.1)
i. Employees are eligible for subsistence allowances when in travel status. Subsistence is an allowance related to lodging and meal costs (including gratuities) (G.S. 138-6). Travel status means being away from the employee’s normal duty station or home and, while traveling, the employee must be acting in his/her official capacity as required by his/her work activities.
ii. The payment of sales tax, lodging tax, local tax, or service fees applied to the cost of lodging is allowed in addition to the lodging rate and is to be paid as a lodging expense (G.S. 138-6(a)(3)).
iii. The employee may exceed the part of the ceiling allocated for lodging without approval for over-expenditure provided the total lodging and food reimbursement the employee is entitled to for that day does not exceed the maximum allowed daily subsistence (G.S. 138-6(a)(3)).
iv. UNCA follows OSBM policy (5.2.1) for subsistence allowances when in travel status. Current allowances can be found here.
2. Conditions for Lodging Reimbursement (OSBM Policy 5.2.2)
i. Prior approval must be obtained to qualify for reimbursement for overnight stays.
ii. Documentation from the traveler is required to substantiate that the overnight lodging was necessary and accomplished.
iii. Travel reimbursement calculations must involve mileage from the starting address of the employee’s regularly assigned duty station or home, whichever is less, to the final travel destination, to receive approved reimbursement.
iv. Overnight lodging may only be authorized and paid to support business needs and final travel destinations that equal or exceed 35 miles, calculated from the employee’s home or duty station, whichever is less, to the final travel destination. “Duty station” is defined as the location where the employee is assigned. The designation of an employee’s home as the duty station requires the approval of the Chancellor – Chancellor or designee
v. Each employee is responsible for his or her own request for reimbursement. Specific dates of lodging must be listed on the reimbursement request, which shall be substantiated by a zero-balance receipt from a commercial lodging establishment.
3. Excess Lodging (OSBM Policy 5.2.3)
i. Excess lodging authorization for in-state, out-of-state, and out-of-country travel must be obtained in advance by completing a pre-approval.
ii. Excess lodging is allowed for the following reasons:
a. Employee is in a high cost area and the current allowance is insufficient to secure lodging,
b. Cost of the excess lodging is less than the cost of lower cost lodging plus transportation costs, or
c. Employee or agency deems that lower cost lodging would put the employee at risk for safety or security.
iii. Excess lodging authorization is not allowed for reason of convenience or personal preference for the employee. The employee may exceed the part of the ceiling allocated for lodging without approval from the Chancellor or their designee provided that the total lodging and food reimbursement does not exceed the maximum allowed daily subsistence.
4. Third Party Lodging (OSBM Policy 5.2.4)
i. Reimbursement for lodging in an establishment that is being rented out by a third party, or an establishment treated as an apartment building by state or local law or regulation, is allowed only if the agency can document that per day lodging rates will cost less than standard in-state or out-of-state lodging rates described in Section 5.1.1. For example, AirBnb, VRBO, etc.
ii. To receive reimbursement the employee must have an approved pre-approval which includes documentation of a signed rental agreement, or a reservation and receipt. Documentation must be provided that supports evidence of savings to the State.
iii. Third party lodging agreements are not allowed among family members or where such agreements or payments create a financial conflict of interest to the traveling employee or other agency managers or employees. Third party lodging may include, yet is not limited to, online website house or room rental services.
iv. In each case where third-party lodging is being considered, the employee must provide the following details regarding the arrangement:
a. The amount to be charged
b. The length of stay
c. Projected cost savings compared to standard lodging rates
d. Contact Information
5. Penalties and Charges Resulting from Cancellations (OSBM Policy 5.2.5)
i. Penalties and charges resulting from the cancellation of travel reservations (including airline, hotel, or other travel reservations and conference registrations) shall be UNC Asheville’s obligation if the employee’s travel has been approved in advance and the cancellation or change is made at the direction of and/or for the convenience of UNC-Asheville.
ii. If the cancellation or change is made for the personal benefit of the employee, it shall be the employee’s obligation to pay the penalties and charges. However, in the event of accidents, serious illness, or death within the employee’s immediate family or other critical circumstances beyond the control of the employee, UNC Asheville may pay the penalties and charges.
6. Meals During Overnight Travel (OSBM Policy 5.2.6)
i. A state employee may be reimbursed for meals, including lunches, while on official state business when the employee is in overnight travel status.
ii. Employees may be reimbursed for meals for partial days of travel when in overnight travel status and the partial day is the day of departure or the day of return. The following applies:
a. Breakfast: depart duty station prior to 6:00 am.
b. Lunch: depart duty station prior to Noon (day of departure) or return to duty station after 2:00 p.m. (day of return).
c. Dinner: depart duty station prior to 5:00 p.m. (day of departure) or return to duty station after 8:00 p.m. (day of return).
d. The travel must involve a travel destination located at least 35 miles from the employee’s regularly assigned duty station or home, whichever is less.
7. Meals During Daily Travel (OSBM Policy 5.2.7)
By state statute, lunches cannot be reimbursed unless the employee is in overnight travel status or otherwise specified in G.S 138-6.
8. Meals and Day-to-Day Activities (OSBM Policy 5.2.8)
State employees may not be reimbursed for meals in conjunction with a congress, conference, assembly, convocation, meeting, or by whatever name called, of employees within a single state agency or institution or between the employees of two or more state agencies or institutions, to discuss issues relating to the employee’s normal day-to-day business activities.
9. Meals for Required Employee Attendance (OSBM Policy 5.2.9)
A state employee may be reimbursed for meals, including lunches, when the employee’s job requires his/her attendance at the meeting of a board, commission, committee, or council in his/her official capacity and the meal is preplanned as part of the meeting for the entire board, commission, committee, or council. Such board, commission, committee, or council meetings must include persons other than the employees of a single state agency or institution.
10. Reimbursement for Meals (OSBM Policy 5.2.10) Each employee is responsible for his or her own request for meal reimbursement.
i. Tips for meals are included in the meal allowance.
ii. Each meal reimbursement rate must be listed on the reimbursement request.
iii. Departure and arrival times must also be listed on the reimbursement request.
iv. The costs of meals included in other related activities (registration fees, conference costs, hotel registration, etc.) may not be duplicated in reimbursement requests.
v. An employee may be reimbursed, if requested, for breakfast even if their lodging establishment offers a free continental breakfast.
11. Convention Registration (OSBM Policy 5.2.12)
State law allows reimbursement of the actual amount of convention registration fees as shown by a valid receipt or invoice (G.S. 138.6)
12. Transportation by Personal Vehicle (OSBM Policy 5.2.13)
i. It is the intent of the State that state employee travel shall be conducted in the most efficient manner and at the lowest and most reasonable cost to the State.
ii. Motor Fleet vehicles should be used, whenever possible.
iii. When Motor Fleet vehicles are not available, travelers may procure vehicles through the State’s term contracts or use personal vehicles.
iv. If a state employee chooses to use a personal vehicle, actual mileage is reimbursable. Mileage is measured from the duty station or point of departure—whichever is closer to the destination—to the destination (and return).
13. Transportation by a Rental Vehicle (OSBM Policy 5.2.14)
i. If using a rental vehicle for either in-state or out-of-state travel, employees shall use the State’s term contracts when available.
ii. Unless prior approval has been obtained the state employee shall bear the difference in cost when renting a vehicle from a class that exceeds the cost of a standard vehicle on the State’s term contract for short-term vehicle rentals.
iii. No reimbursement will be made for rental insurance purchased because state employees are covered under the State’s auto insurance program.
iv. However, reimbursement for automobile rental insurance will be permitted for individuals engaged in state business during travel to international destinations.
v. Rental vehicles are not authorized for personal use.
14. Non-state Employees Riders (OSBM Policy 5.2.15)
i. Non-state employees may accompany state employees when they have a business interest in the purpose of the trip and their presence is related to state business.
ii. Students of state universities, colleges, and institutions may be passengers to attend athletic events and other activities officially sanctioned by the institution, provided the proper account is reimbursed at the standard mileage cost rate by the student activity fund involved.
iii. Spouses and children of state employees may accompany them, if space is available and all travel is strictly for official state business (G.S. 143-341(8)(i)(7) grants Department of Administration rule-making authority in this area).
iv. Hitchhikers are not permitted.
15. Transportation by State Vehicle at Destination (OSBM Policy 5.2.16)
i. At the employee’s destination, state-owned vehicles may be used prudently for travel to obtain meals and for de-minimis personal purposes. Examples of de-minimis personal travel would include stopping for lunch, picking up a prescription at a pharmacy, and related errands.
ii. No common carrier or public transportation fares are reimbursable on a trip on which an employee uses a state-owned vehicle, unless it is shown that such transportation was more economical in a particular situation.
16. Commuting (OSBM Policy 5.2.17)
i. No reimbursement shall be made for the use of a personal vehicle in commuting from an employee’s home to his duty station
ii. (No mileage reimbursement is allowed to employees on “call back” status.) For the State’s policy on compensation to employees on “call back” status, see the State Human Resources Manual.
17. Reimburse State for Commuting in State-owned Vehicle (OSBM Policy 5.2.18)
i. Every individual who uses a state-owned passenger motor vehicle, pickup truck, or van to drive between the individual’s official work station and his or her home, shall reimburse the State for these trips at a rate computed by the Department of Administration except as provided for in G.S. 143-341(8)(i)(7a).
ii. Among the vehicles with exceptions, the provisions of this rule do not apply to clearly marked police and fire vehicles or unmarked law-enforcement vehicles used in undercover work and operated by full-time sworn law enforcement officers whose primary duties include carrying a firearm, executing search warrants, and making arrests.
iii. The rate of reimbursement shall approximate the benefit derived from the use of the vehicle as prescribed by federal law and shall be determined by the Department of Administration. Reimbursement shall be for 20 days per month regardless of how many days the individual uses the vehicle to commute during the month. Reimbursement shall be made by payroll deduction each month from the employee’s check and deposited as a refund of expenditure to the fund/center and account where the motor fleet bill is paid.
18. Parking, Tolls, Fee, and Fines (OSBM Policy 5.2.19)
i. Parking fees, tolls, and storage fees are reimbursable while in the course of conducting official state business as long as such expenses are determined reasonable and clearly show that there was care taken to keep the costs to the State as low as possible.
ii. Receipts are required for reimbursement of these expenses.
iii. Fines for traffic and parking violations are the responsibility of the state employee.
19. Transportation by Common Carrier (OSBM Policy 5.2.20)
i. Reimbursement for air, rail, or bus fare is limited to actual coach fare, substantiated by receipt.
ii. Reimbursement for fees for check–in, seat assignments, and baggage is limited to actual costs substantiated by receipt.
iii. TSA Pre-Check expense are for convenience and are not reimbursable.
20. Super Saver Rates (OSBM Policy 5.2.21)
i. When traveling by common carrier to conduct official state business, employees traveling to their destination earlier than necessary and/or delaying their return to avail the state of reduced transportation rates may be reimbursed subsistence for additional travel days if the amount saved due to the early and/or delayed travel is greater than the amount expended in additional subsistence.
ii. For example, when the reduced airfare rates require staying overnight one Saturday night, to be eligible for reimbursement, the state employee must stay overnight on the Saturday closest to the first or last day of official state business to which the employee is attending.
21. Transportation by International Flights (OSBM Policy 5.2.22)
Employees traveling internationally on overseas flights may be reimbursed actual business class fare (substantiated by receipt) with prior approval.
22. Coupons or Certificates for Reduced Air Fare (OSBM Policy 5.2.23)
Coupons or certificates for reduced air fare, if acquired by a state employee while traveling on state business at state expense, are the property of the State and should be used, to the extent possible, by the State employee on future state business trips.
23. Travel Arrangement Fees and Service Charges (OSBM Policy 5.2.24)
With sufficient justification and documentation, and with prior approval state employees can be reimbursed for usual, customary, and reasonable fees and service charges imposed by travel agents or third-party travel sites for assistance in making travel arrangements.
24. Travel to/from Airport or Car Rental at Employee’s Duty Station (OSBM Policy 5.2.26)
i. Reimbursement for travel between the employee’s duty station or home (whichever is less) and the nearest airline terminal, train/bus station, or car rental provider may be made under the following circumstances. For travel by:
a. Taxi, car service, mobile phone ordered car service, or Airport Shuttle – actual costs with receipts.
b. Private Car – the business standard mileage rate set by the Internal Revenue Services for a maximum of two round trips with no parking charge, or for one round trip with parking charges. Receipts are required for parking claims.
c. Use of Public Transportation – In lieu of using a taxi or airport shuttle, employees can be reimbursed without receipts $5.00 for each one-way trip either from the airport to the hotel/meeting or from the hotel/meeting to the airport, or the actual cost of the travel with the submission of receipts.
25. Travel to/from Airport at Employee’s Destination (OSBM Policy 5.2.27)
i. Reimbursement for travel to and from the airline terminal (or train/bus station if applicable) at the employee’s destination may be made where travel is via most economical mode available as listed below:
a. Taxi, car service, mobile phone ordered car service, or Airport Shuttle service – actual costs with receipts.
b. Rental Vehicles – may be used with the prior approval (receipt required).
c. Use of Public Transportation – In lieu of using a taxi or airport shuttle, employees can be reimbursed without receipts $5.00 for each one-way trip either from the airport to the hotel/meeting or from the hotel/meeting to the airport, or the actual cost of the travel with the submission of receipts.
26. Travel Involving Trips other than to and from the Airport (OSBM Policy 5.2.28)
i. The actual costs of taxi and shuttle service fares are reimbursable when required for travel on official state business.
ii. The request must be documented with a receipt.
iii. The use of public transportation is reimbursable for actual costs with a receipt.
27. Authorization for Out-of-Country Travel (OSBM Policy 5.2.29)
i. All out-of-country travel must be pre-approved.
ii. Out-of-country travel status begins when the employee leaves the country and remains in effect until the employee returns to the country.
iii. If the employee and other qualified official travelers use hotel and meal facilities located outside North Carolina, but within the continental United States, immediately prior to and upon returning from out-of-country travel but during the same travel period, out-of-state subsistence rates shall apply.
28. Passports (OSBM Policy 5.2.30)
i. Reimbursement for costs incurred in obtaining or renewing a passport may be made to an employee who, in the regular course of his duties, is required to travel overseas in the furtherance of official state business.
ii. Passport expenses are chargeable to the same fund that supports the employee’s trip.
29. Internet Fees:
i. Employees traveling on State business who need to transmit data electronically (including email) or use the Internet for State business purposes should use the most cost-efficient manner available.
ii. Reimbursement for costs incurred are at the discretion of the Financial Manager.
30. Tips and Gratuities
i. Reasonable tips are reimbursable. Reimbursement for gratuity or tips must be considered reasonable for items that are NOT already covered under subsistence. (See section III. A. Subsistence Rates for Lodging and Meals)
ii. Excessive tips will not be reimbursed. A reasonable tip would be one that a prudent person would give if traveling or conducting personal business and expending personal funds.
iii. For further guidance, the following information is provided when calculating a tip:
a. Meals outside of Subsistence (i.e. Recruiting, donor relations) no more than 25% of the bill.
b. Airports: Baggage Handling/Skycaps = no more than $2.00 per bag.
c. Shuttle Drivers = no more than $2.00 per bag.
d. Parking/Auto Related: Valets = $2.00 per car when collecting the car.
e. Taxi or car service drivers = no more than $5.00 per trip.
C. Travel Policies for Non-State Employees
1. Non-State Employees (OSBM Policy 5.5.1)
i. For the purposes of this section, non-state employees are those on official state business whose expenses are paid by the State and subject to state regulations, such as:
a. Prospective professional employees
b. Public school and community college employees
c. Students on official state business
d. Service contractors
e. Hourly temporary employees
f. Attendants of state employees with disabilities on official state business (provided advance approval is obtained from the Chancellor or their designee)
ii. Non-state employees traveling on official state business whose expenses are paid by the State are subject to these regulations, including statutory subsistence allowances, to the same extent as state employees.
iii. Travel expenses for members of a non-employee’s family are not eligible to be paid from state funds.
iv. No travel advances will be made to non-state employees.
2. Post-secondary Students (OSBM Policy 5.5.2)
i. Student travel expenses while working as an employee of the State are considered official state business when traveling on behalf of their position and shall be paid from the same source of funds from which the employee is paid.
ii. Non-employee students at state institutions who travel on official state business are reimbursed from the General Fund consistent with payments for state employees. Official state business is defined in Section 5.0.3.
iii. Non-employee students who travel to fulfill a course requirement for academic credit and whose expenses are paid or reimbursed by the General Fund are subject to these regulations, including statutory allowances, to the same extent as are state employees. Funds specifically appropriated or legally directed for student travel are authorized to be used for student travel expenses.
iv. Approval for non-employee General Fund student travel to fulfill course requirements for academic credit must have written prior approval of the Vice Chancellor for Finance or his/her designee.
v. The purchase of food or beverage for students at higher education institutions is not allowable unless the student is in travel status. However, non-General Funds may be used for these purposes if such funds have been established and authorized for such purposes.
3. Attendants (OSBM Policy 5.5.3)
Payment of travel and subsistence expenses (hotel and meal costs) for attendants for employees with disabilities while traveling on official state business may be reimbursed to the same extent as are state employees if advance approval is obtained.
4. Expert Witness Fees (OSBM Policy 5.5.4)
A person used by any state agency, commission, committee, licensing board, or council as an expert witness may be reimbursed an agreed upon fee by said group. All travel costs will be reimbursed the same as for state employees.