Travel and Business Expense Policy (OFS-3)

Travel and Business Expense Policy (OFS-3)

Responsible Business Unit Responsible Officer Effective Date Last Revision

Office of Financial Services Controller & Assistant Treasurer March 1, 2014 July 1, 2018

1.0 Summary

Brookings employees and non-employees often need to travel on behalf of the Institution and/or incur business expenses to conduct work. This policy outlines how travelers procure various travel or business related goods or services, types of expenses that Brookings will reimburse, required documentation and the timing and procedures for submitting reimbursement requests. This policy also adheres to good stewardship of our donor's funding.

This policy applies to all employees and non-employees traveling for the purpose of conducting business for the benefit of the Brookings Institution.

2.0 Policy

Brookings participates in the Internal Revenue Service (IRS) accountable plan as it eliminates the need for employees to report reimbursements as income on their tax returns. The IRS outlines accountable plan rules are as follows:

1. Expenses must have a business connection incurred while performing services as an employee of the Brookings Institution.

2. Travelers must adequately account for expenses and return any excess reimbursement/allowance within a reasonable period of time to their employer; 30 days per Brookings reimbursement timeframes and guidelines (see Appendix 1).

All travel and business expenses must be authorized and approved by Brookings prior to any expenses being incurred. The traveler must consult with their project/program director and financial manager to obtain approval, including appropriate project and activity codes to charge. Travelers should always use the lowest priced transportation and lodging options that are reasonably available.

This policy was developed with the intent to cover the most common travel-related situations but does not address every travel-related situation. If a situation arises that is not covered by this policy, the traveler should contact the Procurement department for guidance. Exceptions to this policy may only be made with the approval of either the Controller or CFO.

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Travel Arrangements

Travelers may make travel arrangements through 1) Brookings authorized travel agencies; 2) use of a personal credit card; or 3) use of Brookings Procurement Card (PCard).

Travelers must request airline reservations according to necessary departure or arrival times rather than the specific airline or personal travel incentives offered. Travel arrangements should be made as far in advance as possible, thereby allowing travelers to take advantage of the most inexpensive flights.

Travelers may retain frequent flyer and hotel program benefits. Participation in these programs must not influence flight or hotel selections that would result in additional cost to Brookings beyond the lowest available airfare or hotel.

It is strongly recommended that travelers use Brookings authorized travel agencies for airfare, train, rental cars and hotels.

The benefits of using Brookings authorized travel agencies include:

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Agency discounted airfares (negotiated with the airlines)

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24-hour accessibility/emergency assistance throughout the world

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Travel assistance provided when issues arise (e.g. canceled flights,

delays or changes)

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Direct billing to Brookings (traveler will not need to seek reimbursement)

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Discounted hotel/car rentals

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Group participant bookings for meetings/conferences; travel agent will

contact participants to make travel arrangements

A traveler may also book travel with a personal credit card or Brookings Pcard. This is only recommended when a lower fare is found for domestic travel and where travel agency benefits are minimal. Travelers are responsible for the timely submission of appropriate documentation for reimbursement.

Air Travel

All air travel must be in economy class. First class air travel is not allowed under Brookings policy. At the traveler's personal expense, upgrades, above economy class, are allowable.

Business class must be pre-approved for the following situations:

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Non-continental U.S. or international air travel, with a flying time

exceeding 6 hours one-way may be in business class only if approved in

advanced by the Senior Financial Officer (SFO).

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In the event of a documented medical condition, upgraded tickets may be

requested by the traveler and may be reimbursable where normally

prohibited. Requests must be forwarded for review and approval to the

Assistant Director of HR, Benefits. Each request will be reviewed on a

case-by-case basis and must be approved in advance of purchase.

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In the event of an extenuating circumstance, upgraded tickets (for

domestic business class or international business class with a less than

6-hour travel time) may be requested by the traveler and may be

reimbursable where normally prohibited. Requests must be forwarded for

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review and approval to the Controller and CFO. Each request will be

reviewed on a case-by-case basis and must be approved in advance of

purchase.

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If a Business class ticket is less expensive than economy class, the

traveler may obtain prior approval to purchase from the Procurement

department by submitting full documentation via email.

Travelers are expected to use the lowest logical airfares whenever reasonably possible. This includes non-refundable fares, Saturday night stay over, advance purchase fares, connecting flights, flights from alternate airports and electronic ticketing. Brookings will reimburse for a Saturday night hotel stay over, provided the additional hotel expenses and M&IE per diem is less expensive than a ticket without a Saturday stay over.

Should an airline delay necessitate an overnight stay, the traveler should attempt to secure complimentary lodging from the airline.

If an airline ticket was purchased and the traveler is no longer traveling, then the traveler must call the travel agent or airline to cancel and/or refund the ticket.

The ultimate responsibility for retrieving and compensating for lost baggage lies with the airlines. Brookings will not reimburse travelers for personal items lost while traveling on business.

Travelers should pay for flight changes made directly at an airport, on date of travel, with a personal credit card or PCard. Travelers should not direct the airline to use the card on file.

Rail Travel

First class rail travel is not allowed. Acela should only be booked with preauthorization from the SFO with reason documenting the Acela charge.

Rental Cars

Travelers may rent a car to their destination when driving is more convenient and less expensive than airline or rail travel, or it is necessary to transport equipment or materials.

Travelers should make rental car reservations for an economy or compact car through designated Rental Cars agencies. When there are three or more travelers, an upgraded car to accommodate the travelers may be procured.

Rental cars should be refueled before returning it to the agency to avoid gas surcharge fees. Travelers will be reimbursed for fuel purchased only, not on a per mileage basis.

Travelers should purchase the additional car rental insurance offered through the rental company. Brookings provides additional coverage for travelers. Please contact the Procurement department for more information.

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Personal Vehicles

Employees using their personal vehicles for business are required to carry the minimum automobile insurance required in their state of residence. Brookings reimburses mileage at the federal government rate; current rates are available at the GSA Website. Travelers must provide their start and end location and if applicable, provide receipts for tolls and parking. Travelers will not be reimbursed for any parking or traffic violations.

Travelers should exercise utmost care towards their safety as well as the safety of others, including following all federal, state, and local laws and regulations. While driving a personal or rental vehicle, travelers should avoid distractions, such as texting, using a handheld cell phone, and other activities that interfere with a driver's due care and attention. Travelers should also limit their use of hands-free devices for cell phones. Travelers traveling on Brookings's business should always use the reasonable safety measures available to them, including but not limited to wearing their seatbelts.

Lodging

Travelers must reserve low cost, reasonable room rates as defined by the domestic and foreign lodging per diem rates. The lodging per diem rates are based on location of travel and time of year. Lodging per diem rate guidelines can be found at the following websites:

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Domestic (CONUS) travel: GSA Website

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Domestic (non-CONUS) travel: Department of Defense

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Foreign travel: State Department

For domestic travel, if lodging is not available at the lodging per diem rate, travelers may procure lodging up to 150% of the published lodging per diem. For foreign travel, travelers may only procure lodging up to the published lodging per diem rate.

Without advance approval from the SFO, lodging costs above the maximum allowed under these guidelines will not be reimbursed. A documented reason for the exception will need to be submitted along with the Travel Expense Report (TER). Providing documentation for the exception does not guarantee reimbursement above the maximum allowable amount.

Please note that Brookings will not reimburse travelers based on the lodging per diem rate. Travelers must submit lodging receipts for reimbursement.

Travelers may make hotel reservations through the designated travel agencies and should use negotiated or preferred rates whenever possible. The travel agents will make the reservation, but cannot authorize the charges. Therefore, the traveler will be required to arrange for payment directly with the hotel.

Before and during check-in, travelers should:

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Present a personal credit card or PCard for incidentals

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Provide a physical copy of the tax exemption form for all eligible states

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Use available hotel transportation to and from airports in lieu of rental

cars or cabs when available

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Inquire, at time of check-in, if a lower rate is available; hotels often offer

specials depending on a number of rooms not yet booked for that night

If travelers stay in a private residence while traveling on business and if additional expenses are incurred to extend appreciation to friends or relatives for their hospitality, travelers may expense up to $75.

All travelers staying in Washington, DC hotels should consult the Brookings preferred lodging options. The preferred hotels are set up for direct billing to Brookings. Reservations that are direct billed or paid with a Brookings PCard will qualify for tax exemption.

Meals & Incidentals

Employees will be reimbursed according to the federally published domestic (CONUS), domestic (Non-CONUS) or foreign per diem rates for meals and incidental expenses (M&IE) applicable for the city and dates of travel.

Employees travelling 50 miles or more from their official worksite are eligible for per diem.

The M&IE per diem on the first and last day of travel will be based on the start and return time of travel.

Start Time - First Day

12:00 am ? 9:59 am

10:00 am ? 3:59 pm

4:00 pm ? 7:59 pm 8:00 pm ? 11:59 pm

Eligible Per Diem Meals Breakfast, Lunch and Dinner Lunch and Dinner

Dinner

N/A

Return Time - Last Eligible Per

Day

Diem Meals

12:01 am ? 9:59 am 10:00 am ? 3:59 pm 4:00 pm ? 12:00 am

Breakfast Breakfast and Lunch Breakfast, Lunch and Dinner

When the host, conference or other source provides a meal(s), per diem will be reduced accordingly. A traveler entitled to per diem may not receive reimbursement for a non-per diem meal unless it is business related.

For non-employees, please confirm eligibility for M&IE reimbursement with the program.

Business Meals & Entertainment

Business meals & entertainment are expenses incurred when a specific business discussion takes place. IRS guidelines limit business meals and entertainment expenses to situations where the expenditure "directly precedes, includes or follows a substantial and bona fide business discussion for the purpose of obtaining income or other specific trade or business benefit". Travelers may request reimbursement for actual documented expenses. For business meals that involves Brookings employees only, alcohol expenses will not be reimbursed. The traveler must provide the names of individuals present, their titles, affiliation, and the business purpose of the meeting.

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