Policy No. TR-01
Borough travel and per diem
A. Purpose
To establish the policies and procedures for approving Borough travel, for the payment of travel per diem, and for the reimbursement of authorized travel expenses.
B. Travel and Approval Policy
1. All Kenai Peninsula Borough (“Borough”) employees and officials, including elected and appointed members of boards and commissions, must have all travel approved in accordance with this Policy. Expenses incurred for Borough travel not in compliance with this policy will not be paid or reimbursed.
2. It is the policy of the Borough that travel for official business be in the most direct and economic way to accomplish the business.
3. Travel shall only be approved that is necessary and prudent and when one or more of the following criteria are met:
a) The travel is required to achieve operational, legislative, or service objectives of the Borough.
b) The travel is required to support state or federal efforts, which are beneficial to the Borough.
c) The travel is mandated by the state or federal government.
d) The travel is for specific training, which is required for employees to perform borough functions, such as training on technological advances or for required certifications.
e) The travel is for specific training, which will result in a significant cost savings or cost avoidance to the Borough. Such cost savings or avoidance shall be demonstrated prior to approving any out-of-state training.
f) The travel is required to attend a national or state board, committee meeting or conference as a borough representative, and the exchange of information or participation will result in an economic benefit to the Borough.
1. Travel under the following conditions shall not normally be approved when costs are at borough expense. When approved, written justification shall have been prepared by the traveler and included on or attached to the Travel Authorization Form.
b) Travel by first class or business class air accommodations.
c) Travel by other than the most economic and direct route.
d) Rental car class above mid-size rate.
5. Use of rental vehicles
The Borough is self-insured; therefore, if a rental vehicle is approved for the travel, vehicle insurance is not required. However, self-insurance is not applicable for any period that the vehicle may be used for personal reasons. Insurance coverage during such periods is the responsibility of the traveler.
If a car is rented during travel and an accident occurs, the traveler shall advise the investigating officers that the Borough is self-insured and immediately contact Risk Management at (907) 714-2351.
6. Fair Labor Standards Act
The Fair Labor Standards Act (29 C.F.R. 785.39) specifies that if employees who are not exempt under the FLSA (generally represented personnel) shall travel during normal working hours (i.e., 8:00 a.m. to 5:00 p.m.) on non-work days (i.e., Saturday or Sunday for an employee who works Monday through Friday) the time of travel during the normal work hours is compensable. Generally, travel on a common carrier such as an airplane or train during times outside of the normal work hours is not compensable. However, employees who work while traveling must be compensated, and employees required to drive or be a passenger in an automobile must be compensated in accordance with the following table.
Department heads should contact Human Resources at 714-2131 for further details. The chart below summarizes the compensatory requirements for travel on a common carrier.
Work day Non-Work Day
Normal Work Hours Compensable Compensable
Normal Non-Work Hours Not Compensable Not Compensable
G. Travel and per diem policy
It is the policy of the Borough to reimburse employees for the following actual and necessary expenses incurred while on official Borough business, provided the travel was properly authorized and approved in advance.
1. Air Travel Costs. The Borough will pay for all costs of air transportation that are directly related to travel on official business. The most economical and direct route possible shall be utilized. Any costs for deviation from the most economical and direct route possible is the responsibility of the employee.
2. Private Vehicle Costs. The Borough will reimburse travelers for use of their privately owned vehicle at the rate of 49.5 cents per mile (37.5 cents for those receiving a car allowance) not to exceed the cost of coach class airfare except as provided in No. 3 below. If vehicle travel is used instead of airfare for the employee's convenience, extra travel time must be charged to leave time if it is paid by the Borough. If two or more employees travel in the same vehicle, the reimbursement will not exceed the cost that would have been incurred had they all traveled by air. Only the owner of the vehicle may claim reimbursement for mileage. Rates are subject to change pursuant to the collective bargaining agreement.
3. Travel to Anchorage/Mat-Su. The Borough will reimburse travelers to the Anchorage/Mat-Su area for use of their privately owned vehicle at the rate $105 per round trip from the central or east peninsula areas and $130 per round trip from the Homer area. These rates will be adjusted in accordance with the collective bargaining agreement. This flat rate includes all travel while in Anchorage/Mat-Su.
4. Borough Vehicle. The Borough will reimburse the cost of fuel and other vehicle operating costs actually incurred by the employee. No reimbursement for mileage will be allowed.
5. Lodging Costs. The Borough will pay lodging costs (room and tax) only at an economy and single occupancy rate, unless two Borough employees share a double room and then a double occupancy rate will be paid. Government rates shall be requested and used whenever possible.
6. Per diem:
a) Within the state of Alaska, the Borough will pay up to $40 per diem for meals and incidental expenses (as defined by the Internal Revenue Service, "incidental expenses include laundry, tips and refreshments"). The $40 rate includes $10 for breakfast, $10 for lunch, and $20 for dinner. Rates outside the state of Alaska will be based upon the federal per diem rates.
b) A deduction to per diem will be made for meals paid for separately by the Borough and meals paid for by others. This includes meals paid in advance and/or included in registration fees and business meals reimbursed to the traveler or reimbursed to another Borough traveler as a business meal, (See Policy no TR-02, Reimbursement of Business Meal Expenses) Meals provided by airlines do not impact per diem entitlement. Continental breakfasts which are provided do not impact per diem entitlement.
c) When per diem is not claimed for reimbursement, the cost of meals and incidentals will only be reimbursed up to the daily per diem rate ($40). Receipts for all amounts claimed for reimbursement must be attached to the Request for Reimbursement of Expenses (FTR-02) report and summarized by date.
d) In lieu of receiving meal and lodging expenses, if those do not exceed $80 per day, a flat per diem of $80 will be paid.
e) The Internal Revenue Service requires that per diem be prorated for partial days of travel, which will occur on departure or arrival from the Borough. The following is the departure and arrival prorating. This prorating is based on the Internal Revenue Service’s “consistent application and reasonable business practice" rule. The actual departure and arrival of the aircraft will be used to determine the times. If traveling by private vehicle, the times are based on the actual departure and arrival time from the point of origin.
Departure time Allowance
12:01 am to 10:00 am $ 10
10:01 am to 3:00 pm $ 10
3:01 pm to 12:00 midnight $ 20
Arrival time Allowance
12:01 am to 10:00 am $ 10
10:01 am to 3:00 pm $ 10
3:01 pm to 12:00 midnight $ 20
f) Per Diem rates adjustments
1) Out of state rates are adjusted annually per www.gsa.gov
2) In state rates are adjusted pursuant to the collective bargaining agreement.
1. Car Rental Costs. The Borough will reimburse car rental costs only if car rental was approved on the Travel Authorization Form (FTR-01), and then only for the days/mileage necessary to conduct official business. In unusual circumstances, reimbursement for car rental without pre-authorization may be authorized by the approving authority if there is valid justification. Car rental expenses without pre-authorization may become the responsibility of the traveler.
2. Laundry and Dry Cleaning Costs. The Borough will reimburse reasonable and necessary laundry and dry cleaning costs after the traveler is away from the Borough on official business for more than five days, excluding travel time. Certain unusual circumstances, such as official functions with high level government officials, presentations at formal dinners or functions, or travel overseas may present circumstances where the five-day limit may be waived. Waivers will be requested in writing and submitted with the travel expense report. Laundry and dry cleaning costs are included in the federal per diem rate for meals and incidental expenses. Therefore, the reimbursement will be included in the traveler's taxable wages as excess per diem in accordance with requirements of the Internal Revenue Service. Laundry and dry-cleaning costs should have specific justification attached to the Request for Reimbursement of Expenses (FTR-02 form).
3. Registration Fees. The Borough may make advance payment or reimbursement for education/training fees. Fees for entertainment, spouse activities, and similar expenses are the responsibility of the traveler and will not be paid by the Borough.
4. Other Expenses. The Borough will reimburse taxi, telephone calls and other official expenses when shown to be directly related to official business. Reasonable calls home will also be reimbursed.
5. Business Meals. The Borough will reimburse necessary business meal expense in accordance with Policy No TR-02, Reimbursement of Business Meal Expenses.
6. Travel Advance. The Borough may make travel advance payments when requested, not to exceed the estimated amount of per diem and cab fare. Payments will be made on the regularly scheduled pay date prior to the traveler’s scheduled departure date. A Request for Reimbursement of Expenses (FTR-02) with the appropriate receipts will be required to be completed upon the traveler’s return.
C. Responsibility
1. The Mayor or designee shall approve all travel outside the Borough and Anchorage/Mat-Su area for all Borough employees, including board members and commission members except Borough Clerk staff and Assembly members.
2. The Assembly President or designee shall approve all travel outside the Borough and Anchorage/Mat-Su area for all Borough Clerk staff and Assembly members.
3. Department heads shall:
a) Approve all department travel that requires mayoral or assembly president approval prior to being submitted for their signatures.
b) Ensure that Borough funds are spent in a prudent manner resulting in maximum benefit to the Borough.
c) Ensure the travel requested is budgeted within the department’s budget.
d) Ensure that reimbursement is received by the Borough when the Request for Reimbursement of Expenses (FTR-02) form indicates that the employee owes the Borough for all or part of the expenses.
1. The Controller shall:
a) Ensure that travel has been approved prior to making any travel related payments, e.g. hotel deposits or registration fees.
b) Review all Request for Reimbursement of Expenses (FTR-02) reports to ensure that travel payments and reimbursements are made in accordance with this policy No. TR-01.
c) Require specific justification for actual expenses that deviate more than 10 percent higher than authorized. Depending on the circumstances and amount of the deviation, the Request for Reimbursement of Expenses (FTR-02) report may be forwarded to the mayor for review and approval.
1. Travelers shall:
a) Incur only those expenses that are necessary and reasonable to accomplish the approved purpose of the trip.
b) Maintain a travel log or other record of travel dates and expenses to sufficiently itemize and support business expenses, obtain original receipts needed for reimbursement of lodging, car rental, gasoline, and other expenses.
c) Submit original receipts that indicate purpose, date, and amount.
d) Ensure all business expenses incurred and submitted for reimbursement are in compliance with this policy No TR-01.
e) Submit reimbursement within 60 days after travel has been completed and/or within 30 days after the end of the fiscal year.
D. Travel Approval Procedures
1. A Travel Authorization Form (FTR-01) shall be completed by the traveler immediately upon determining that travel outside the Borough and Anchorage/Mat-Su area is required.
2. The traveler shall submit the completed Travel Authorization Form and any additional written justification to the appropriate endorsing and approving authority.
3. A copy of the approved Travel Authorization Form including any written justification shall be forwarded to the finance department by the department head.
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John J. Williams, Borough Mayor Date