Title
Approve a revised Travel and Business Reimbursement Policy
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve a revised Travel and Business Reimbursement Policy
SUMMARY:
Supervisor Alejo submitted Referral 2018.16 requesting that the Travel and Business Expense Policy be modernized and updated. The Policy was last revised in 2012.
DISCUSSION:
County employees frequently incur business expenses that should be reimbursed. These expenses include travel costs and meals associated with business meetings, legislative activities, litigation, conferences, training, and other County business related activities. These events occur within Monterey County, across California and outside of California. Meanwhile, the Auditor-Controller's Office is faced with the unenviable task of enforcing the travel rules and deciding when discretion is appropriate or if strict adherence should be followed. The proposed revisions try to balance appropriate use of taxpayer funds, the right of employees to be reimbursed for business expenses and creating a policy that can be implemented without too many disputes.
Many disputes arise because the current policy tries to track the requirements for Federal employees, with little flexibility. The Federal Government has rates for meals, lodging and mileage that Federal employees must follow. However, often Federal rates are not available or their time restrictions are not workable or pose a safety issue. The IRS regulations require the County to follow three guidelines to be considered "Accountable Plans" and have business expense reimbursement be tax free. Accountable plans must have the following three requirements:
1. Travel must be business related.
2. Traveler must substantiate the expenses within a reasonable period.
3. Any excess payments must be reimbursed to the employer.
Otherwise, significant flexibility is available to meet our business needs, be economical and qualify as Accountable ...
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