ADMINISTRATIVE POLICY &PROCEDURE
CATEGORY: Finance – Travel
SUBJECT: Travel Policy
Lomita Administrative Memorandum Page 1 of 7
1.0 PURPOSE
The purpose of the Travel Policy is to establish responsibilities and guidelines for City employees and elected officials when attending business or professional conferences, training seminars, or other travel on authorized City business. This policy shall establish standards for the documentation, approval and payment of cash advances and reimbursements of expenses incurred for travel-related expenses by employees, elected officials, and other persons who conduct City business. These standards shall balance the City’s fiduciary responsibility of managing public funds with the recognition of the need to provide transportation, lodging, and meals to employees and public officials as they pursue City business.
It is the intent of the City of Lomita to ensure compliance with all federal and state regulations and laws, including United States Internal Revenue Service regulations and California Assembly Bill 1234 (2005) and implement responsible and ethical fiduciary policies and best practices..
2.0 POLICY
The City shall pay for essential travel expenses which directly and logically relate to the conduct of City business. Travel requests and reimbursement claims shall conform to the provisions of this policy and other applicable laws, grants, contracts, or policies. Expenses shall be documented as required and shall leave no reasonable question that such expenditures did, in fact, relate to and were necessary for conducting City business.
Employees should always use the methods of travel that is the most efficient, direct, and economical mode of transportation required by the occasion. City employees and elected officials are expected to exercise sound judgment when incurring and submitting travel expenses, in keeping with standards and proprieties of a visible and accountable public agency.
3.0 AUTHORIZED ACTIVITIES
Travel, meals, and lodging incurred in connection with the following types of activities, set forth below, constitute authorized expenses, if the other requirements of this policy are fulfilled:
1. Communicating with representatives of regional, state, and federal government for official City business under the City’s adopted policy positions.
Document: Travel Revision:
Subject: Travel Policy Effective Date:
Author: Administrative Services Department Authorized by: City Council
ADMINISTRATIVE POLICY &PROCEDURE
CATEGORY: Finance – Travel
SUBJECT: Travel Policy
Lomita Administrative Memorandum Page 2 of 7
2. Attending educational seminar/conferences designed to improve an employee’s or city official’s skill and information levels as it pertains to their duties in the organization.
3. Participating in regional, state, and national organizations whose activities affect the City’s interests.
4. Implementing a City Council approved strategy for attracting or retaining businesses, programs and services to the City.
Expenses incurred in connection with activities or events, not listed above require prior approval/authorization by the City Manager.
The following also requires prior approval/authorization from the City Council:
1. International travel; and
2. Foreseeable expenses (for a single trip) that could exceed $5,000
4.0 UNAUTHORIZED EXPENSES
The City will not reimburse employees or City officials for expenses incurred outside of the scope of City business-related activities such as, but not limited to, the following:
1. Any personal portion of a trip.
a. If an employee or City official elects to travel to an event in advance or elect to stay longer on personal business, the City need only reimburse for roundtrip costs and costs incurred during the event’s duration.
2. Political or charitable contribution or events.
3. Family or guest expenses, including partner’s expenses when accompanying a City official or employee on agency-related business, as well as children- or pet-related expenses.
4. Entertainment expenses. Including theater, movies (in-room included), sporting events (i.e. gyms, massage and/or golf-related expenses) or other cultural events.
5. Personal auto expenses unrelated to mileage, including repairs, traffic citations, insurance, or gasoline.
6. Personal losses incurred while on a City business.
7. Expenses previously reimbursed by another organization. (See section 10.0 FPPC Form 801) Any questions regarding the propriety of an expense should be resolved by the approving authority before the expense is incurred.
5.0 GENERAL PROVISIONS
1. Travel authorization, for any person officially representing the City at an event, is mandatory regardless of whether the City funds or does not fund the travel expenses.
2. All travel by employees will require prior authorization of the department head and City Manager.
3. Before Travel – Estimated expenses for such travel shall be reported to the Finance Department on a Travel Expense Report after approval by the appropriate department and City Manager.
ADMINISTRATIVE POLICY &PROCEDURE
CATEGORY: Finance – Travel
SUBJECT: Travel Policy
Lomita Administrative Memorandum Page 3 of 7
a. Include an itinerary and itemized list of reasonable anticipated expenses. b. Include informational material such as a brochure on overall content of the event, the relationship between the travel and work functions and the benefit to the City. c. Include an estimated budget for mileage reimbursement for travel/training when using a private vehicle.
4. Budgeted funds for reimbursement must be available and authorized.
5. Travel expenses for prepaid reservations, such as conference registration, lodging, air, or rail transportation. shall be paid by a City-issued credit card (through the Finance Department or department head) or through the established warrant procedure. If an employee or City Official prefers to use their personal payment method, the reimbursement can be made within thirtydays of travel or after travel is completed. Please see the After Travel procedures below.
6.0 SPECIFIC EXPENSES
Transportation
Employees and/or City Officials must use the most economical mode and class of transportation, reasonably consistent with scheduling needs, using the most direct and time-efficient route. When available, government and/or group rates must be used.
1. Airfare
• To identify the lowest airfare, City officials and employees should use an online travel search engine that compares flights across major airlines. Baggage handling fees for one checked bag shall be reimbursed.
2. Automobile
• Mileage reimbursement for the use of an official or employee’s personal vehicle to conduct City business shall be reimbursed at Internal Revenue Service rates in effect at the date of travel. (see https://www.irs.gov/tax-professionals/standard-mileage-rates) i. These rates are designed to compensate the driver for fuel, insurance, maintenance, and other expenses associated with operating a vehicle; this does not include bridge and/or road tolls, which are also reimbursable.
• The amount of reimbursable mileage shall not exceed the amount of an airplane ticket purchased 10 days in advance, using the City’s rate, from a commercial carrier. • An employee or city official may leave from their home for City business. However, the City will not reimburse mileage that exceeds mileage from City Hall to the destination point. • Mileage reimbursement are only for those employees who do not receive transportation allowance.
3. Car Rental
• Charges for rental vehicles may be reimbursed under this provision if more than one City official or employee is attending an out-of-town conference, and it is determined that sharing a rental vehicle is more economical than other forms of transportation.
ADMINISTRATIVE POLICY &PROCEDURE
CATEGORY: Finance – Travel
SUBJECT: Travel Policy
Lomita Administrative Memorandum Page 4 of 7
• In making such a determination, the cost of the rental vehicle, parking and gasoline will be compared to the combined cost of such other forms of transportation.
4. Taxis/Shuttles/Rideshare
• Taxis, shuttles or ride share fares may be reimbursed, including a 15% gratuity per fare, when the cost of such fares is equal or less than the cost of car rentals, fuel and parking combined, or when such transportation is necessary for time-efficiency.
5. Airport Parking
• Long-term parking must be used for travel exceeding 24 hours.
Lodging
Lodging expenses will be reimbursed or paid for when travel on official City business reasonably requires an overnight stay. Government and group rates must be used when available.
Local lodging, defined as within 50 miles or less than a 60-minute one-way commute from City Hall, will not be reimbursed without prior approval by the City Manager.
1. Lodging Expenses
• Will be reimbursed only at the single occupancy rate for rooms using government rates when possible.
• Will be reimbursed for when travel on official City business reasonably requires an overnight stay.
2. Conferences/Meetings
• If lodging is in connection with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question of such rates are available at the time of booking.
• If group rates are not available at the time of booking, the City official or employee shall secure the most economical lodging in close proximity of the conference/meeting venue.
3. Other Lodging
• Lodging rates that are equal to or less than government rates, or the U.S. General Services Administration per diem rates for the applicable area (see https://www.gsa.gov/travel/plan-book/per-diem-rates), are presumed to be reasonable and hence reimbursable for purposes of this policy.
• A City official or employee may stay with a friend or relative while attending an out-of-town meeting or conference, however, the City will not reimburse for any payment to the friend or relative for lodging, meals, or transportation.
Per Diem Allowance
1. Meals – Overnight Travel
• Meal expenses shall be those charges for food and non-alcoholic beverages purchased and consumed by city employees or officials while on official City business.
ADMINISTRATIVE POLICY &PROCEDURE
CATEGORY: Finance – Travel
SUBJECT: Travel Policy
Lomita Administrative Memorandum Page 5 of 7
• Meal expenses incurred will be reimbursed on a per diem basis of $55.00 per day. The first and last day of travel per diem will be 50% or $27.50. If the cost of the employees’ or officials’ daily meals exceeds the per diem daily allowance, it will be the responsibility of the employee or elected official. Receipts are not required for meals as part of the per diem allowance.
2. Business Meeting Meals
• In the conduct of official city business, officials will be reimbursed actual meal and nonalcoholic beverage expenses not to exceed the federal government per diem for Lomita before tax and gratuities. Tax and gratuities will be reimbursed at 15% Other Expenses
1. Internet
• City officials or employees will be reimbursed for the internet access connection and/or usage fees away from home, not to exceed $15.00 per day, if internet access is necessary for official business.
2. Telecommunication expenses
• City officials/employees will be reimbursed for actual telecommunication expenses incurred on City business. No reimbursement is made for use of personal cell phones.
3. Gratuities
• Gratuities of up to fifteen (15) percent will be reimbursed for services customarily subject to gratuity.
7.0 CASH ADVANCE POLICY AND CANCELLATIONS
Cash Advance Policy
From time to time, it may be necessary for the employee or City official to request a cash advance to cover anticipated expenses while traveling or doing business on the City’s behalf. Such request for an advance should be submitted to the City Manager 15 days before the need for the advance with the following information:
• The purpose of the expenditure(s)
• The benefits of such expenditure(s) to the residents of the City • The anticipated amount of the expenditure(s)
• The dates of the expenditure(s)
Any unused advance must be returned to the City’s Finance Department within two (2) business days of the employee’s or official’s return, along with an expense report and receipts documenting how the advance was used in compliance with this policy.
If the City Administrator is uncertain as to whether a request complies with this policy, the City Administrator must seek City Council approval.
Cancellations
ADMINISTRATIVE POLICY &PROCEDURE
CATEGORY: Finance – Travel
SUBJECT: Travel Policy
Lomita Administrative Memorandum Page 6 of 7
If the City has prepaid any expenses and the City employee or official is unable to attend a planned trip or event, it is the employee’s or official’s responsibility to:
1. Arrange for an alternate employee or official to attend in their absence; or
2. Ensure any prepaid and/or credit card fees are refunded within thirty (30) days of the unattended event to the City.
For fees not fully refunded, the employee or official shall provide the City Manager with a written explanation within thirty (30) days of the unattended event, addressing the reason(s) (ex. unexpected illness, injury or death in the family, etc.) he or she was unable to attend. The City Manager will determine whether the reason(s) given for the failure to attend complies with this policy. If it is determined that the reason(s) given do not comply with this policy, a written explanation addressing the reason(s) he or she was unable to attend the event and/or to refund the City for any prepaid and/or credit card fees, may result in the fees being deducted from the employees’ or the officials’ compensation, salary or stipend.
8.0 EXPENSE REPORT CONTENT AND SUBMISSION DEADLINE
All cash advance expenditures, credit card expenses and expense reimbursements requests must be submitted on a Final Travel Expense Report form provided by the City. All expenses reported on the form must comply with the City’s policies relating to expenses and use of public resources. The information submitted on the form is a public record. Penalties for misusing public resources and violating the City’s policies include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability.
After Travel
Employees and City officials shall submit an updated Travel Expense Form within forty-five (45) days of travel; this form shall be accompanied by the itemized receipts necessary to meet this policy for expenditure of public resources. Documentation required include, but is not limited to:
a. Credit card, bank statement, cancelled check, and/or cash payment receipts. b. Itemized meal, hotel, transportation, and other expense receipts c. Conference registration
d. Meeting Agenda or conference itinerary
e. Business purpose of travel
f. Any other documentation required to evidence reimbursement as outlined in the policy (i.e. mileage verification, evidence of pre-conference registrations, etc.) Inability to provide such documentation in a timely manner may result in the expense being borne by the City official or employee. All expenses are subject to verification that they comply with this policy.
9.0 REPORTS TO GOVERNING BOARD
ADMINISTRATIVE POLICY &PROCEDURE
CATEGORY: Finance – Travel
SUBJECT: Travel Policy
Lomita Administrative Memorandum Page 7 of 7
At the following meeting, each City official shall briefly report on meetings attended at City expense. If multiple officials attended, a joint report may be made.
10.0 COMPLIANCE WITH LAWS
Some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the California Public Records Act.
Fair Political Practices Commission (FPPC) Agency Disclosure Form 801 is used to report certain payments received by state and local government agencies, including a payment for an official’s travel expenses for the purpose of facilitating the public’s business in lieu of a payment using agency funds; and a payment that would otherwise be considered a gift or income to the benefiting official, but is instead accepted on behalf of the agency. This form is for use by all state and local government agencies to disclose payments made to the agency when payments provide a personal benefit to an official of the agency.
Examples may include travel, meals, or other benefits. Under certain circumstances, these payments will not result in a gift to the official but will be considered a gift to the agency. The payments must be used for official agency business and must meet other requirements that are set out in FPPC Regulation 18944.2, which is available on the FPPC website. For all gifts, the City Manager or his/her designee, shall (1) determine whether it is in the City’s interest to accept the gift, (2) attest that the gift is in compliance with FPPC regulations, and (3) determine which employee(s) best represent the City’s interests as afforded by the gift.
11.0 VIOLATIONS OF THIS POLICY AND ENFORCEMENT AUTHORITY Use of public resources/funds or falsifying expense reports in violation of this policy may result in any or all the following:
• Loss of reimbursement privileges.
• A demand for restitution to the City.
• The City reporting the expense as income to county, state and/or federal authorities. • Civil penalties of up to $1,000 per day and three (3) times the value of the resources/funds used; and
• Prosecution for misuse of public resources/funds.