CARLETON COLLEGE
EMPLOYEE TRAVEL and REIMBURSEMENT POLICY

This policy is intended to be used as a guide for college related travel, entertainment and business related expenditures. It supports our belief that all business related expenses for the College should be undertaken in the most economical way consistent with achieving the objectives of the College.

The Internal Revenue Service has issued publication 463, Travel, Entertainment, Gift and Car Expenses. In the regulations, the IRS states that ordinary and necessary business related expenses are deductible and reimbursable. The IRS defines ordinary as common in your field of trade, business or profession; and necessary as helpful and appropriate for your business. The IRS states that meals, hotels and entertainment expenses cannot be lavish or extravagant. Carleton reimburses employees for travel and entertainment expenses under "an accountable plan". The IRS defines an accountable plan as follows:

• there must be a business reason for the expenses
• the employee must substantiate the expenses
• the employee must return to the employer any amount advanced in excess of the substantiated expenses on a timely basis

To be in compliance with the IRS, the College has prepared the following accountable travel and business expense plan. These guidelines apply to all business related expenditures made by College employees and faculty. Faculty travel funded by federal grants must also comply with federal travel regulations as outlined in their individual grant proposals.

Departments may choose to have employees complete a Travel Budgeting Form to have an estimate of the travel expenses prior to the trip. When traveling on behalf of the College please leave your itinerary and emergency contact information with your department chair or manager.

This is an evolving document. Updates will be made as regulatory (IRS) and industry standards change. Employees should review the Travel Policy at least annually to be sure that they are in compliance with the guidelines.

Travel Agency Services

You are encouraged to use whatever source for your travel needs that are most economical as well as adequate in terms of convenience; this includes the use of the internet to arrange your trip. Travel arrangements including air travel, lodging, and rental car may also be made through Northfield VIP Travel Center. If you choose a source or agency other than Northfield VIP Travel Center, please use your Carleton College Visa card or pay for the charge yourself and request reimbursement directly to you. Do not arrange for the vendor to bill us directly.

To make or change reservations with Northfield VIP Travel Center, 309 Division Street, Northfield MN, call 645-4458 during normal business hours (8 a.m. 5 p.m.), or their national toll free number (1-800-533-2054). The 24-hour emergency number is 1-800-424-1177. (When calling the emergency number, your I.D. code is PH9G-Carleton.) You will be required to give your department number when arranging College travel through Northfield VIP Travel Center.

Other sources for obtaining travel:

http://www.priceline.com/

http://www.vanguard.com/

http://www.travelocity.com/

www.expedia.com

Domestic Air Travel

The standard domestic or North American airline accommodation is coach class utilizing special fares on nonstop and connecting flights. If you choose to use first class you will need to obtain documentation of coach fare vs. first class and pay for the difference with your personal funds.

Travel reservations should be made as far in advance of the required departure date as possible to take advantage of discount airfares. This usually requires booking 7 to 14 days in advance. The more flexible your schedule, the easier it is for you to find the lowest fare.

Participation in frequent flyer programs is encouraged. All incentives are for your benefit and use.

Airport Parking

Carleton employees can take advantage of discounted parking rates with EZ Air. They
have a minimum requirement of three parking stays per month to stay active in our
corporate discount program.

Our corporate rate is $1.00 per day off our regular rate or currently $10.00 per 24 hour day
and $60.00 per week (7th day is free). When our employees use the
services, they only need to show the cashier upon checkout, their Carleton ID badge, or
submit a business card or show some other proof of employment to get the discounted
rate. The employees can take advantage of the EZ Air frequent parker program. They
will stamp a card for each paid day of parking. Once the card is full with 10 stamps it
can be turned in for a free day the next time they travel. Employees can use this
discounted rate for business travel or for personal travel.

They are open 24 hours a day, 7 days a week, including holidays. They suggest arriving
there about 20-25 minutes before you want to be at the airport. Shuttles run every 5-10
minutes and it is an 8-12 minute ride to the airport.

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Surface Transportation Used in Lieu of Air Travel

Occasionally, you may choose to use your personal vehicle in lieu of air travel for a trip. You are eligible for reimbursement up to the amount of the flight quote along with related costs such as expected travel to and from the airport, etc.

Reimbursement documentation should include a coach flight quote from at least two weeks in advance of travel to estimate the flight cost. Additional expense incurred as a result of driving (i.e. lodging, meals, parking, etc.) may not be eligible for reimbursement. The Use of Personal Vehicles form found on the Business Office website will help you document your travel decision.

If you choose to use your personal vehicle, your personal auto insurance would cover you in the event of an accident.

Travel Extended to Save Costs

Additional expenses associated with travel extended to save costs, e.g., a Saturday night stay for domestic travel, may be reimbursed when the cost of airfare would be less than the cost of airfare had the traveler not extended the trip. Such expenses, which include lodging, car rental, and mileage, shall not exceed the amount the College would have paid had the traveler not extended the trip. Please provide a worksheet showing the airfare with and without the Saturday night stay and the hotel/meal costs for the additional days to document the savings. You can use the Extended Travel form found on the Business Office website to help you document your travel decision.

International Air Travel

The standard accommodation on transoceanic flights is lowest coach available fare. Airfare costs in excess of the lowest available commercial discount airfare are not allowable except when it causes undue hardship (i.e. physical limitations, scheduling challenges, etc.). Allow adequate time to arrange the most cost effective airfare for your international destination.

The Colleges Travel Insurance carrier does not provide coverage in war risk countries. Risk Management should be contacted to verify that the country in which you are traveling is afforded coverage.

International SOS Program

Carleton recognizes that in this rapidly changing world, you may have apprehension about travel, security, and health. It is for these reasons that the College has contracted for international travel assistance and evacuation services from a company called International SOS.

An International SOS Assistance card for travel assistance and evacuation services is available from the Risk Manager in the Business Office. Please obtain the insurance card before you leave on a foreign business related trip. Ideally, prior to departure from the U.S., you should log on to the SOS site to create your personal on-line account with emergency contact information. International SOS services are available at any time anywhere in the world and range from telephone advice and referrals to full-scale evacuation by air ambulance.

While traveling, individuals should continue to use their personal medical insurance. In an emergency, if the International SOS handles payment in order to expedite treatment, reimbursement arrangements will need to be made upon return to the US. Whenever possible, request receipts for medical services received.

Travel Insurance

Faculty and staff traveling on business, either domestically or abroad are covered by the Colleges Insurance Policy. This coverage applies only to trips on College business, not for a travelers personal travel. The cost of any additional travel insurance is not reimbursable.

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Injuries

Employees who suffer injury or illness by an accident arising out of and in the course of their employment, whether on or off campus, are provided medical care and other benefits under Workers Compensation. If injured while on College business, travelers should contact Human Resources at 507-222-4174 for guidance.

Frequent Flyer Miles

Employees may retain frequent flyer miles earned while on College business and may use them in any way they choose. The College does not redeem or reimburse employee frequent flier tickets.

Group Travel

Travel by a group of employees in the same aircraft, automobile, or other mode of transportation is discouraged when the employees responsibilities are such that an accident could seriously affect the functioning of the College. Key employees, such as the President, Vice Presidents, Deans or a substantial number of employees from the same department should consider this risk when making travel arrangements.

Spousal or Companion Travel

The payment for spouse traveling on business is closely regulated by the IRS. The IRS requires a bona fide business purpose for the spouse to be on the business trip for the expenses to be reimbursable. The business purpose must be clearly documented on all travel forms. In the specific circumstance where non-business spousal travel is approved it will be treated as taxable income to the employee.

Charter and/or Private Aircraft

For the safety of travelers, Carleton does not recommend flying on charter and/or private aircraft. The College assumes no liability for death, personal injury, or property damage in connection with charter/private aircraft travel.

Business and Personal Travel

In instances where a traveler interrupts business travel for personal convenience, travels by an indirect route, or is accompanied by his/her spouse/companion not on College business, the traveler must maintain accurate records to substantiate official business travel. You can edit the Use of Personal Vehicles form which can be found on the Business Office website to help you document your travel decision. The College does not reimburse any expenses incurred on behalf of the spouse/companion/children or for their personal travel.

Unused Tickets

Any ticket or portion of a ticket that is not used must be returned to the travel agency to appropriately credit the College. If the traveler has already received payment for the ticket in advance of the trip, the traveler must provide reimbursement directly to the College.

LOST ITEMS

Lost baggage, clothing, or other personal items are the responsibility of the traveler. Recovery for such personal losses may be available through the employees homeowners insurance.

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LODGING

Travelers should use standard accommodations at reasonably priced mid-market hotels or motels. The College does not approve accommodations at up market or luxury hotels (Ritz, Four Seasons, etc.) However, an exception is made for a conference or workshop.

Request the minimum rate available or corporate rate, whichever is lower. When the reservation is made, the only available room may be in a higher category. Therefore, at check-in, you should always double check to insure you are getting the lowest rate. Original itemized hotel receipts are required for reimbursement.

CANCELLATIONS

Hotel reservations are typically guaranteed for late arrivals, travelers are required to cancel these reservations in a timely manner to prevent no show charges. If you need to cancel, be sure to note the hotel time, and get a cancellation number or the name of the person with whom you talked. Except under extenuating circumstances, the College will not reimburse expenses due to a travelers failure to cancel guaranteed room reservations.

GRATUITIES FOR HOSTS

When staying with a friend rather than in a hotel, a meal or gift in lieu of hotel costs is reimbursable. The gift or meal should be reasonable and not exceed the cost of acceptable accommodations. You must provide receipts for the expenses incurred. Cash payments to a host are not allowed. The gift/meal must be purchased and presented to the host during the trip. Explanation of such items should be submitted with the Employee Reimbursement Form.

ROOM SERVICE

The College discourages use of room service or the hotel mini-bar for meals due to the high mark up on these services.

MISCELLANEOUS HOTEL EXPENSES

Miscellaneous expenses must be itemized and documented. Examples include:

• Fees for passports and visas, if specifically obtained for the business trip.
• Fees for currency exchange
• Limited laundry and dry cleaning charges for trips of more than five days.
• Tips to bellhops, maids, etc. should be totaled and listed separately on the Employee Reimbursement Form (no receipt required).
• Business telephone calls

MEALS

Meals for employees while away on College business or entertaining on College business will be reimbursed. Entertainment Expenses are those expenses incurred while entertaining guests of the College and include events such as social and recreational activities, when a business discussion takes place immediately before, during or after the event. Meal costs for business related participants will also be reimbursed. The IRS requires that all requests for meal reimbursement must document the following information, most of the information is already printed on the receipt:

• Who attended (self, if alone)
• Business purpose of the meal
• Cost
• Where the meal was taken
• The date

Original itemized receipts must be submitted for any meal or entertainment expense regardless of cost.

Note: In situations where a receipt is not readily available (i.e. international travel where meals are purchased at a market), you are asked to provide the information listed above.

IRS regulations state that expenditure for meals cannot be lavish or extravagant. The College does not reimburse on a per diem basis. However, the Meals and Incidental Expense rates for federal government employees provide a reasonable standard.

The Meals & Incidental Expense rates differ by travel location. To view the rate for your primary destination to determine which M&IE rates apply. www.gsa.gov/mie. For example, the Total Meals and Incidental Expense rate for the Northfield and Minneapolis-St. Paul area ranges from $49 to $64 per day.

Meals provided in conjunction with seminars may not be claimed as part of the meal allowance.

If an employee is dining out with a travel companion, only the cost of the employees meal may be charged. Shared items must be prorated.

GRATUITIES

Tips at the standard 15%-20% on meals are reimbursable. Tips on the meal should be included as part of the cost of the meal on the Employee Reimbursement Form.

ALCOHOL

The College will reimburse for one alcoholic beverage chosen as your beverage with a meal. Alcoholic beverages consumed by travelers between or after mealtimes are not considered meals and are not reimbursable, except when they qualify as necessary entertainment for donor solicitation.

The federal government has mandated that no alcohol may be charged as either a direct or indirect expense of federally sponsored projects. This mandate means that under no circumstances should alcohol be charged directly to a federal grant or contract.

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LOCAL BUSINESS MEALS AND MEETINGS

Meals during a local conference, seminar, workshop, presentation or other similar group event which extends through a usual mealtime(s) are reimbursable. Such meals must be reasonable in relation to the nature and purpose of the meeting.

Local dining expenses incurred as a part of employee recruitment; alumni function; donor solicitation; or other business meetings are reimbursable. Use the Meal and Incidental Expense guide to ensure to keep expenses at a reasonable level.

In general, local business meetings between co-workers should not be planned to include meals in order to better steward entertainment budgets intended for donors and/or guest of the College.

GRANTS

If reimbursement is requested from grant funds, additional restrictions and limitation may apply as stipulated by the grant. In such cases, refer to the terms and conditions of the grant. Federal regulations prohibit reimbursement of any expenditure for alcoholic beverages with federal funds.

CAR RENTAL POLICY GUIDELINES

Authorized Carleton drivers can rent cars if it is economical and a business necessity. Rentals should be limited to situations where other means of transportation are not practical, economical or available. Travelers are encouraged to choose compact or mid-sized cars whenever possible. Rental of 15 passenger vans is strictly prohibited. All rentals should be at the Corporate Rate or the lowest possible rate per day. When traveling in groups, sharing of cars is encouraged to reduce costs. Exercise good judgment prior to renting an automobile. At todays rates, cabs may be more economical when traveling in cities.

Collision damage or personal accident insurance should not be accepted for business travel rentals since the College carries insurance on hired autos; however, insurance should be accepted when traveling outside of the United States and Canada. Claims should be reported to the Risk Manager (507-222-4178) as soon as possible.

When working with a travel agency, car reservations should be made at the same time your airline reservations are made. The College has discount arrangements with Enterprise and Hertz through the Education and Institution (E&I) Cooperative Service. Identify yourself as an E&I member and reference the following numbers.

Enterprise 800-736-8222, Contract #NA24E5A includes insurance. Contract #NA24E9A is 8% off of the best rate available at the time of rental. Reference iec when placing internet orders.

Hertz 800-654-2200, #CDP90440

In the event special rates are available, they should be used when they are more economical than the negotiated rates.

REFUELING

Travelers should be aware that refueling fees often exceed the pump price of gas available in the community. Travelers should refuel before returning the car to the agency. Fuel costs associated with refueling a rental vehicle will be reimbursed based upon actual fuel purchased, not mileage.

CANCELLATION

Advise the car rental company or the travel agency if you decide to cancel a car reservation. Automobile rental companies also appreciate it if you advise them in the event you plan to keep a car longer than you originally planned. This allows them to keep a current status of their cars.

Rental Car Contracts

The following rental car contracts can be found in the travel services section of the E & I
(Educational & Institution Cooperative) website. http://www.eandi.org/

• Enterprise
• Hertz

COLLEGE VEHICLES

College vehicles are available for business travel to authorized College drivers. Requests for College vehicles should be arranged through Campus Services, contact x4443.

College owned or leased vehicles are to be used for business use. Employees may not use College vehicles for personal purposes.

PERSONAL CAR USAGE

Employees are encouraged to use a College owned vehicle for business travel by auto. It is important for employees to be aware that when using a personal car for Carleton business use, the employees personal car insurance carrier provides liability coverage. It is the obligation of the owner of a personal vehicle being used for College business to carry adequate insurance for his or her protection and for the protection of any passengers. In the event of an accident, the employee is responsible for his/her own auto insurance deductible.

Travelers will be reimbursed for business usage of personal cars based on mileage. The current reimbursement rate is listed on the Payment Request Form. Attach a mileage log or Mapquest type mileage sheet to document the mileage. The College mileage rate is updated annually each July, based on the then applicable IRS mileage reimbursement rate.

Employees will not be reimbursed for the following, even if these costs are incurred during business travel:

• Car repairs

• Rental car costs during repair of personal car

• Tickets, fines, or traffic violations

Vehicle Accident Reporting Procedures

For All Accidents:

1. Pull out of the driving lane on to the shoulder and turn off the ignition.
2. Activate the four-way flashers on the vehicle.
3. Immediately contact the local police (911) to advise them of the accident and to get medical assistance if there are any injuries. Fleet vehicles contain emergency items including a first-aid kit.
4. Do not admit fault or give written statements.
5. Exchange drivers information listed on your certificate of insurance. At a minimum, write down:
   • Driver's name
   • Driver's license number and state
   • Phone number
   • Address
   • Insurance Company and policy number
   • License plate number
6. Be prepared to provide the following additional information when you return to campus:
   • Make, model and year of vehicle
   • Damage to vehicle
   • Injury to driver, if any
   • Date, time, road and weather conditions
   • Names and phone numbers of any passengers
   • Injuries to any passengers
   • Names and phone numbers of any witnesses
   • Copy of any photographs
7. When local police respond to the accident, request the investigating officers name, badge number, phone number, and report number. Ask for an accident report form. If the local police will not file a report (because damage is minimal and there are no injuries), ask them to make a note in their records that you called in the accident.

Phone Numbers

• 911 Contact local police immediately
• 507-222-4444 Contact Security within 24 hours for fleet vehicles
• 507-222-4178 Contact the Risk Manager/Business Office within 24 hours for rental vehicles.

Forms

• Certificate of Insurance (Proof of insurance listing insurance company & policy number)
• State of MN Crash (Accident) Report submit within 10 days if accident results in injury, death, or total property damage of $1,000 or more.
  

Fleet Vehicles

Insurance information is located in the glove compartment of all fleet vehicles. If a fleet vehicle is damaged and cannot be driven, have the vehicle towed to the nearest dealership or repair facility and make alternative arrangements to return to campus or continue to your destination (taxi or rental vehicle).

Rental Vehicles

When renting a vehicle for College business, it is important to familiarize yourself with the rental companys accident reporting procedures. The accident procedures are often printed on the rental agreement. If you are involved in an accident with a rental vehicle, please adhere to the agencys reporting requirements. You should provide the name of the Colleges insurance company, Travelers Insurance Company, and direct the owner of the other vehicle to the Carleton website http://apps.carleton.edu/campus/business/businessofficeforms/ for our certificate of insurance. They may also contact the Risk Manager at 507-222-4178 for additional assistance.

Personal Vehicles

Employees are encouraged to use a College owned vehicle for business travel. It is important for employees to be aware that when using a personal car for Carleton business use, the employees personal car insurance carrier provides liability coverage. It is the obligation of the owner of a personal vehicle being used for College business to carry adequate insurance for his or her protection and for the protection of any passengers. In the event of an accident, the employee is responsible for his/her own auto insurance deductible.

Citations / Arrests

Drivers are responsible for payment of fines for all citations, including moving violations or parking tickets. All citations for moving violations must be reported to the Risk Manager at 507-222-4178.

If you are arrested at the scene of an accident (e.g., for drunk driving, reckless endangerment) you are responsible for any legal costs you may incur including attorney fees, bail, court costs, towing, impound fees, etc. The College is not responsible for any unlawful acts of its employees or students, and will not defend or indemnify them for alleged wrongful acts involving the use of its vehicles or vehicles rented on college business.

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TELEPHONE AND OTHER COMMUNICATION CHARGES

Business:  The College will pay charges for metropolitan and long-distance calls made outside a College office provided a hotel or telephone bill substantiates the calls. The Internal Revenue Service requires documentation of the business purpose for all reimbursed phone calls.

Cell Phones:  A limited number of cell phones are available to take on a College business trip. Please contact the Telecommunications Department for more details. Cell phones must not be used while you are driving a vehicle. Please have another person in the car use the cell phone or pull over prior to using a cell phone.

Internet:  Charges Internet phone charges while in travel status will be reimbursed if appropriate business purpose is documented.

Any use of a cell phone or other personal electronic device is prohibited while driving or using other equipment or machinery such as forklifts, gators, golf carts, etc. Please let someone else in the car use the phone or pull over to the side of the road to use the phone.

Employees operating any motor vehicle while working or in a company vehicle must always follow governing state, federal and local laws regarding the use of cell phones and other personal electronic equipment.

REGISTRATION FEES

Advance registration fees for seminars and conventions should be paid using your College visa card or paid directly by yourself and request reimbursement directly to you. Original receipts or proof of payment are required for reimbursement.

CURRENCY EXCHANGE AND ATM FEES

The College will reimburse employees for currency exchange fees. Employees are encouraged to pay for meals, hotels and purchases on their College credit card as the cards often offer the safest and most economical exchange conversion.

The College discourages employees from carrying large amounts of cash while traveling. In most cases, using and ATM machine will provide an excellent appropriate rate and will reduce the amount of cash the employee has on his/her person. ATM fees for cash withdrawals will be reimbursed. Travelers checks are a good, safe method of bringing money on a trip although the fees involved with obtaining travelers checks can be high.

OTHER REIMBURSABLE EXPENSES

The following travel related expenses are reimbursable: taxi fares and airport limos, parking charges, tolls, gasoline for rental cars, baggage handling tips, excess baggage charges for College equipment, currency conversion charges, and other incidental expenditures incurred while on business travel. These expenses must be recorded on the Payment Request Form and supported by receipts whenever possible.

NON-REIMBURSABLE EXPENSES

• Dues for personal memberships
• Travel insurance the College provides an insurance policy that covers employees while traveling. Employees should decline additional travel insurance.
• Insurance on domestic rental cars the Colleges insurance provides coverage on employees for accidents involving rental vehicles. Employees should decline additional travel insurance.
• Lost baggage or purchase of baggage.
• Extra baggage charges for personal items (i.e. golf clubs)
• TV rental movies.
• Alcoholic beverages, except for approved College guests or a single drink as the beverage with a meal.
• Gasoline, if mileage reimbursement is used. Mileage reimbursement must be used when using your personal vehicle.
• Oil, insurance premiums, maintenance, towing charges and repair costs to personal vehicles will not be reimbursed.
• Fines for vehicle violations (speeding or parking tickets, etc.) or for personal misconduct will not be reimbursed.
• Spa or health club fees.
• Dry cleaning or laundry service if you are staying for less than one week.
• Costs for meals, travel or lodging for spouse or personal guests.
• Personal entertainment or excursions.
• Personal phone calls.
• Toiletries, medicine, magazines, etc. purchased while traveling.
• Costs for child care, pet care or lawn/home maintenance.
• Charitable or political contributions.

Expenses that are of a personal nature, or expenses that would be incurred whether or not the employee was on College business, are not eligible for reimbursement. The College requires employees to document and request reimbursement for such expenses in accordance with the following guidelines and the regulations of the United States Internal Revenue Service. In addition, if federal grant funding is used, employees must adhere to all regulations as outlined in the grant.

TRAVEL and REIMBURSEMENT PAYMENT REQUESTS

The IRS requires that reimbursements must be processed within 60 days following the event or trip or they are subject to taxation.

These policies apply to Carleton VISA transactions and items submitted for reimbursement on a Payment Request Form.

Reimbursements will be automatically deposited into your chosen bank account.

TRAVEL ADVANCE

A travel advance can be issued to a traveler by the Business Office if it has been approved by an authorized supervisor and is received at least one week in advance of the trip. Advances are made to Carleton personnel only. The IRS requires that advances must be cleared within 120 days or they are subject to taxation.

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