Research Administration Office

University of California

Memo

Operating Guidance

No. 94-10

Supplement No. 1

May 9, 1995

Subject: Travel Reimbursement Under Agreements With State Agencies

Background:

Contract and Grant Operating Guidance Memo No. 94-10 , dated June 9, 1994, Travel Reimbursement Under Agreements With State Agencies, described the difference between the State of California Travel Reimbursement Rules which are applied to travel under agreements with some State agencies to University employees reimbursed under those agreements and the University Policy and Regulations Governing Travel, Business and Finance Bulletin (BUS) G-28 . The Memo states that

"when travel terms of an extramural award are more restrictive than University travel regulations, the award terms govern employee travel reimbursed by that award. Since State Travel Rules are more restrictive than University travel regulations, if a change in the travel language cannot be negotiated, University employees traveling under the State agreement must be reimbursed in accordance with the State Travel Reimbursement Rule."

It was recently brought to our attention that in one area the State Travel Rules are less restrictive than the University Regulations. As described under the Meals and Incidentals section of this Memo, the State will reimburse breakfast and/or dinner for a trip of less than 24 hours when the trip starts before normal working hours or ends after normal working hours. However, the University will not reimburse any meals for a period of less than ten hours. Thus, University Regulations in this area are more restrictive than the State's.

This issues was discussed with Corporate Accounting which is responsible for BUS G-28 . A determination was made that where the University is more restrictive than the sponsor, the University's Travel Policy should apply. Corporate Accounting stated that the University's Travel Policy has been written in accordance with Internal Revenue Service rules in this area with particular attention to avoiding tax implications for the traveler.

Implementation:

Travel for less than ten hours carried out under agreements with the State shall follow the University's Travel Policy. Meals for such travel shall not be reimbursed. Travel Under State agreements for more than ten hours but less than 24 hours is limited to the State reimbursement rates of $5.50 for breakfast and $17.00 for dinner.

Refer: Samuela A. Evans (510) 987-9849

Subject Index: 02, 07

Organization Index: S-001

David F. Mears

Director

Research Administration

cc: Michael O'Neill, Corporate Accounting