(a) Background. The Internal Revenue Service (IRS) and the State Auditor requires all expenses which are to be reimbursed by the employer to be substantiated. This requires employees to obtain receipts or invoices for all expenditures for which the employee seeks to have reimbursed. Failure to submit receipts or invoices with the Travel Expense Form will result in the denial of reimbursement.
(b) Policy. The following guidelines will govern Village business related expenses, what is acceptable, and the process for non-taxable reimbursement to the employee.
(1) Professional Meetings and Training.
A. All travel is to be approved first by the Department Supervisor and then by the Mayor prior to any purchase or travel by completing a travel request form.
(2) Expenses.
A. Purchase order numbers must be obtained for reimbursement of expenses before the travel begins or costs are incurred.
B. Reimbursement for any travel related expenses must be submitted within 45 days after it is paid or incurred.
C. Travel related meal reimbursements shall not be made for day trips or for travel within a 100 mile radius of the Village. Exceptions may be permitted upon approval of the Mayor.
D. Travel related expense advances will not be given under any circumstance.
E. Detailed itemized receipts will be required for all travel related expenses.
F. The following items are acceptable expenses when itemized receipts are provided upon the employee’s return; taxi; and ride share fares; airport parking at the departing airport; parking costs at the hotel or conference center; and rental cars only when approved in advance.
(3) Meals/Food.
A. The Village cannot reimburse for alcoholic beverages.
B. Any non-allowable purchases should be made on a separate receipt. (Example: Alcoholic beverages)
C. The Village will reimburse meals at the IRS standard per diem rate (revised annually and accessible at https://www.gsa.gov/travel/planbook/per-diem-rates) for approved travel outside of Richfield. When travel is in a location designated by the IRS as a high-cost area, the employee may be reimbursed at the higher per diem rate. The maximum per diem rate reimbursable to an employee for the first and last day of travel shall be calculated at seventy-five percent (75%) in accordance with the IRS per diem rates schedule.
D. Employees should exercise the same care in incurring travel expenses that a prudent person would exercise if traveling on personal business and expending personal funds.
E. Original itemized receipts will be required for reimbursement.
F. Tips may be reimbursable with an itemized receipt up to 15% of the reimbursable costs.
G. Business meals must be approved by the Mayor and must be substantiated as to the people in attendance, amount, time, place and business purpose of discussion.
(4) Transportation.
A. Village vehicle or personal vehicle is the primary form of transportation.
B. Air travel within the State of Ohio is not authorized.
C. Air travel outside the State of Ohio is authorized only with preapproval of the Mayor.
(5) Mileage Reimbursement.
A. All attempts should be made to use a Village vehicle for travel.
B. In the event that a Village vehicle is not available, an employee may be reimbursed for mileage with prior approval of first the Department Supervisor and then the Mayor.
C. No reimbursement for mileage will be made without proper approval granted prior to travel.
D. A mileage reimbursement form must be completed in full and submitted. This includes the date of travel, business purpose, destination, and beginning and ending odometer readings.
E. Mileage will be reimbursed at the Standard Federal Mileage Rate in effect at the time the travel occurred.
F. Personal commuting between the employee's residence and place of work is considered personal use and will not be reimbursed. If attending an alternate work site, the regular personal commuting distance to and from the site will not be reimbursed.
(6) Lodging.
A. Overnight lodging is permitted if the seminar or conference is more than one day and more than 100 miles from the Administrative Building or upon approval of the Mayor.
B. Other overnight lodging may be permitted upon approval of the Mayor.
C. In the event of an employee being away for more than one week (including a weekend), miscellaneous expenses such as laundry and dry cleaning will be reimbursed if a receipt is submitted.
D. No reimbursements will be made for lodging-related entertainment, including but not limited to: movies, social or athletic activities, or alcoholic beverages.
E. Hotel accommodations should be what a prudent person would exercise. The government rate should be secured (if offered) if better than the conference sponsored rate. A $165.00 per day/room limit will be allotted; no exceptions (i.e., in excess of $165.00 rate) will be reimbursed unless reviewed and approved by the Mayor prior to travel. Hotel reservations shall be made With the Village's credit card, not the employee's personal credit card. Hotel reservations should be arranged with the assistance of the Department Supervisor. Prior to making hotel reservations, competitive hotel rates/quotes should be obtained from at least three (3) hotels/motels and submitted to the Department Supervisor. Hotel receipts and the credit card will need to be turned in to the Department Supervisor upon returning from travel.
F. The Village is tax exempt and cannot reimburse or pay sales tax on hotel lodging in the State of Ohio by utilizing a “blanket certificate of exemption” to have the state sales tax exempted from the room charge. Bed tax will be charged and this is an allowable expense. The employee shall strive to have all lodging taxes removed whenever applicable.
G. An employee who doesn't furnish the hotel receipt (or any other receipt) that has been charged on the Village's credit card will be charged on their W-2 as a nonaccountable fringe benefit.
(7) Reimbursement Process.
A. To be reimbursed, the employee must complete a "Travel Expense" form listing all of the expenses that are requested for reimbursement.
B. Itemized receipts must be attached to the "Travel Expense" form.
C. The employee must sign the "Travel Expense" form.
D. The employee must submit the completed "Travel Expense" form to the Department Supervisor for initial approval. Final approval is subject to the review of the Finance Department and Mayor.
E. Employees will be held responsible for unauthorized cost and additional expenses incurred for personal preference or convenience. (Ord. 127-2021. Passed 12-15-21.)