No.FA.6.1 Page 1 of 14 Effective Date: 08/12/15. Original Signed by Mike Reeser TITLE: Chancellor Date: 08/12/15

TEXAS STATE TECHNICAL COLLEGE STATEWIDE OPERATING STANDARD No.FA.6.1 Page 1 of 14 Effective Date: 08/12/15 DIVISION: SUBJECT: AUTHORITY: Fiscal Affairs Official TSTC Employee Travel Compliance PROPOSED BY: TITLE: Original Signed by Jonathan Hoekstra Vice Chancellor & Chief Financial Officer Date: 08/12/15 RECOMMENDED BY: TITLE: Original Signed by Jonathan Hoekstra Vice Chancellor & Chief Financial Officer Date: 08/12/15 APPROVED BY: Original Signed by Mike Reeser TITLE: Chancellor Date: 08/12/15 STATUS: Approved by VCs 08/12/15 HISTORICAL STATUS: Approved by VPs of Finance 12/2013 Updated 12/2013 Approved MC 06/24/02 Updated 2/22/12 Revised 06/2002 Previously Titled Official Travel of Employees Approved Electronically by MC 10/02/01 and Board Members Revised 09/20/01 Compliance Changes 1-14-10 Approved MC 07/27/01 Approved by Leadership Alliance (LA) 08/16/07 Revised 06/12/01 Changes Proposed 8-14-07 Approved MC 04/27/00 Changes Proposed 7-17-07 Revised 04/18/00 Approved by BOR 11/3/06 Approved MC 04/30/99 Approved by MC 09/29/06 Approved MC 07/30/98 Revised 08/10/06 Revised 07/30/98 Approved by MC 03/24/06 Approved MC 04/30/98 Revised 02/2006 Revised 04/24/98 Approved by MC 12/16/05 Approved MC 03/25/93 Revised 11/11/05 Revised 07/01/91 (PPM-FA-02) Approved by MC 09/09/05 Revised 01/22/91 (PM-FA-02) Revised 09/01/05 Revised 10/18/89 (PM-FA-37) Approved Electronically by MC 1/17/05 Revised 08/08/89 (PM-FA-02) Revised 1/11/05 Revised 06/21/88 (PPM-FA-25) Approved by MC 9/10/04 Revised 05/13/83 (PM-FA-12) Revised 8/11/04 Revised 02/01/80 (PM-FA-25) Approved by MC 3/12/04 Approved BOR 03/10/71 MO#17-71

Revised 02/2004 Approved by BOR 10/20/69 MO#34.-69 POLICY Compliance PERTINENT INFORMATION Texas State Technical College is subject to the travel requirements as set forth below with regard to reimbursement of travel expenses incurred by employees of Texas State Technical College while on official business: General Appropriations Act, Article IX Part 5 (Travel Regulations) Chapter 660 of the Texas Government Code (Travel Regulations Act) Texas Administrative Code Rule 5.22 Textravel State Travel Management Program Texas Education Code, Section 135.26 IRS and Federal Regulations related to the source of funds used for travel No travel expense using appropriated funds shall be incurred by any TSTC employee except in accordance with TexTravel (https://fmx.cpa.state.tx.us/fmx/travel/textravel) unless an exception is identified per this Statewide Operating Standard. The State Travel Management Program (STMP) is designed to help state agencies manage state travel expenditures and provide travel services to state agencies. Through the program, state agencies have access to travel agency services, charge card services, discounted airline, hotel, and rental car rates, and group/meeting planning services. Colleges and universities are exempt from participation in the contracts for travel agency services but are required to use all other travel service contracts, when the services are paid with appropriated funds. DELEGATION OF AUTHORITY The Board of Regents delegates to the Chancellor, or his/her designee, implementation of travel procedures in compliance with Statewide Operating Standards and State and Federal Regulations. The Chancellor has delegated the primary responsibility for compliance of travel regulations to the Vice Chancellors, who may further delegate his/her approval authority. OPERATING REQUIREMENTS A. Approval of Requests for Travel TSTC must manage four key (and sometimes competing) objectives when considering official travel for employees: 1) creating an experience that supports TSTC s goal of being a Great Place to Work, 2) supporting the productivity of the TSTC team as our mission calls team members away from their home location, 3) complying with state and

college procurement rules and regulations, and 4) efficiently managing the resources of the College. TSTC can best manage these objectives by responsible management of travel by team leaders and team members supported by the standards that follow. The following minimum standards are required for proper reimbursement by the Procurement and Travel Services division. Team leaders may apply additional standards to efficiently and effectively manage travel costs within their division. 1. Prior to travel, a travel request must be prepared and submitted for any employee who is on official state business outside the metropolitan area that is his/her official place of work. The travel request must be approved by the employee s supervisor, or designee, and by the account manager(s). Forms and/or detailed procedures for requesting approval for travel are available on the TSTC Portal. 2. The Chancellor, Vice Chancellors, Associate Vice Chancellors, and Provosts (or Key Officials ), are exempt from the requirements stated in item 1 above. 3. Foreign Travel a) The Vice Chancellor for Finance/Chief Financial Officer must approve all foreign travel to countries other than Canada or Mexico. b) In addition, employees must sign the Foreign Travel Release Form (available on the TSTC Portal), which addresses risks, responsibilities, and liabilities associated with the travel and the voluntary nature of the travel. c) The Chancellor s approval and the Foreign Travel Release Form must be attached to the Travel Request at the time it is submitted for approval. 4. Travel to Washington, D.C. a) All travel to Washington, D.C., regardless of funding source, must be approved by the Associate Vice Chancellor for Government Affairs prior to or in conjunction with the submission of a Travel Request Form. b) In addition, the Associate Vice Chancellor for Government Affairs will assist employees in meeting the notification requirement to the Texas Office of State-Federal Relations (OSFR), when applicable. The notification to OSFR is required when state-funded travel is for the purpose of engaging in activities to obtain or spend federal funds, to impact federal policies, or to meet with elected officials or their personnel. 5. Training Seminars Conducted by a State Agency for its State Employees a) A travel expense associated with a training seminar conducted by a state agency for its state employees may not be reimbursed using appropriated funds unless the Chancellor, or his/her designee, certifies in writing that:

the agency does not possess interactive television or video conference facilities at the designated headquarters of the employee who incurred the expense; the agency does not have available, at a cost less than the total travel costs associated with the seminar, interactive television or video conference facilities; and the agency does not have access to another agency s interactive television or video conference facilities. b) The Chancellor s certification referenced above may not cover more than one training seminar. Thus, a certification for all seminars to be conducted during the next fiscal year is not acceptable. The name of each state employee who attended a seminar is not required to be included in the certification for that seminar. B. General Travel Provisions 1. Conservation of Funds Travel must be planned and conducted to achieve maximum economy and efficiency considering all relevant circumstances while complying with the guidelines set forth in this Statewide Operating Standard. Travel expenses must be reasonable, appropriately documented, properly authorized and within the guidelines set forth in this Statewide Operating Standard. 2. Meals and Lodging a) Meal and lodging reimbursements for in-state and out-of-state travel, but within the contiguous U.S., are limited to the rates approved by the Office of the Comptroller for Public Accounts and published by the U.S. General Services Administration (GSA) at: http://www.gsa.gov/portal/category/21287. If an employee travels to a location where the allowance has not been set then the rate will be the standard rate according to the General Appropriations Act. All Travel Vouchers must have the rate documentation attached. b) Meal and lodging reimbursements for travel to Alaska and Hawaii are limited to the rates set forth by the U.S. Department of Defense, which can be found at: http://www.defensetravel.dod.mil/site/perdiemcalc.cfm. c) Meal and lodging reimbursements for travel outside the contiguous U.S. (other than Alaska and Hawaii) are limited to the rates set forth by the

U.S. Department of State, which can be found at: http://aoprals.state.gov/content.asp?content_id=184&menu_id=78. d) When the entire trip begins and ends in the same calendar day (nonovernight), reimbursement for meals is not allowed regardless of the funding source used for travel. Employees are responsible for providing their own meals and snacks while engaged in same-day (non-overnight) travel. e) In accordance with GSA regulations, meals for the first and last day of overnight travel paid with federal funds, will be reimbursed up to 75% of the meal allowance based on actual expenses incurred. f) The maximum meal reimbursement for actual meal expenses associated with overnight travel on the day of departure or the day of return is as follows: Departure from home or work: Before 7:00 a.m. 100% of the daily meal per diem rate Before Noon 80% of the daily meal per diem rate Before 7:00 p.m. 50% of the daily meal per diem rate Arrival to home or work: After 7:00 p.m. After Noon Before Noon 100% of the daily meal per diem rate 50% of the daily meal per diem rate 20% of the daily meal per diem rate g) When traveling overnight (in-state or out-of-state) if a meal is provided by the conference or training, the employee will not be reimbursed for that meal. A percentage of the maximum meal allowance will be subtracted for the meal provided as follows: if breakfast is provided subtract 20% of the meal allowance if lunch is provided, subtract 30% of the meal allowance if dinner is provided, subtract 50% of the meal allowance. Exceptions may be allowed for meal reimbursement if employee is unable to consume the furnished meal because of medical requirements or religious beliefs. In such instances, employees must receive approval from their supervisor prior to travel. h) An employee may claim less than the maximum meal reimbursement rate for a duty point and use the amount of the reduction to increase the maximum lodging reimbursement rate allowed for the duty point. Lodging rates cannot be decreased to increase the maximum meal rate allowed. This applies to both in-state and out-of-state travel.

i) In cases where there is a special conference lodging rate that exceeds the applicable maximum lodging rate or when there are no safe lodging locations available (must submit documentation), the employee may be reimbursed for the cost above the allowable lodging rate, provided that: the excess amount must be reimbursed from local funds the total lodging reimbursement does not exceed twice the allowable lodging rate for the location of the conference hotel prior approval has been obtained from the Chancellor, Vice Chancellors, Associate Vice Chancellor, or Provost. j) Some lodging establishments charge state sales tax on parking fees. Travelers may be reimbursed for both the parking fees and the related sales tax on these fees. 3. Hotel Occupancy Tax Exemption 4. Airfare a) State employees traveling on official business within Texas are exempt from the state occupancy tax charged by commercial lodging establishments. Employees must furnish a Texas Hotel Occupancy Tax Exemption Certificate at check-in in order to claim the exemption. The certificate is available at: http://window.state.tx.us/taxinfo/taxforms/12-302.pdf. This exemption does not apply to city or county hotel occupancy taxes charged by lodging establishments. b) If excess reimbursement for hotel lodging is approved above allowable rate for the locale due to provisions in this SOS, then the extra city and county occupancy tax must be paid from local funds. a) The amount reimbursed for travel by commercial airline may not exceed the lowest rate available. Employees should, when possible, obtain lowerpriced travel services through the use of fourteen-day or other advanced reservation programs, promotional price reductions, or any method that provides a lower overall cost of travel. b) Airfare may be purchased by using a TSTC Travel Card or by personal credit card. c) If the airfare obtained is higher than the contracted airfare rate, employees must document a valid reason using the Travel Contract Exceptions Form when submitting their Travel Request for approval. The state contracted rates may be found at: http://window.state.tx.us/procurement/prog/stmp/stmp-airline-contract.

d) A cancellation or change fee that increases the total cost of travel is reimbursable only if the charge is incurred for a business related reason, personal emergency, illness, adverse weather conditions, or a natural disaster and it must be approved by the employee s supervisor. e) TSTC will not reimburse for tickets purchased with frequent flyer miles or personal flight/travel credits. Frequent flyer and bonus travel programs should not influence the traveler s flight selection or routing. 5. Mileage a) Employees may be reimbursed for mileage for official business travel in a personal vehicle. Mileage reimbursement shall be based on the shortest, most cost effective and reasonably safe route. Reimbursement rates are established by the State Comptroller and can be found at: https://fmx.cpa.state.tx.us/fm/travel/travelrates.php. b) The actual miles traveled is determined by point-to-point itemization, documented by either the employee s odometer records or the shortest distance calculated by Google Maps https://www.google.com/maps. c) When actual mileage or point-to-point mileage (per actual odometer readings) is claimed for reimbursement, the specific address should be referenced on the Travel Voucher. d) Mileage to/from an airport for travel via commercial airlines is reimbursed as follows: Mileage between place of work and the airport is allowed during working hours. Mileage between the employee s residence and the airport is allowed during non-working hours. If travel between the employee s residence and the airport occurs during working hours, reimbursement may not exceed the amount that would be paid for travel from place of work to the airport. The scheduled flight departure time minus two hours and the actual arrival time to airport determine whether the travel occurs during working or nonworking hours. Mileage reimbursement to and from the airport for employees based out of the Harlingen location flying out of the Harlingen airport is not allowed.

e) The amount of reimbursement for mileage claimed may not exceed the amount of the most cost-effective method of travel available. Before traveling by personal vehicle, employees should review the cost of other transportation methods available, including: Airfare Rental car TSTC Vehicle Fleet Exceptions may be allowed, with prior approval by the employee s supervisor, when it is determined that a transportation method is more efficient based on travel schedules and time spent away from place of work. In those cases when an exception is allowed, mileage reimbursement must not exceed the estimated cost of advance purchase rate airfare at the time the trip is planned. 6. Use of TSTC Vehicle Fleet (including owned or leased vehicles) a) Depending on availability, TSTC vehicles may be used for official travel. Employees are responsible for checking and keeping record of availability of TSTC vehicles prior to traveling using personal vehicle or other transportation method. b) Non-TSTC personnel are not permitted to operate TSTC vehicles or a vehicle rented, procured or provided by TSTC. Non-TSTC personnel may ride as a passenger in a TSTC vehicle, a TSTC rented vehicle or a TSTC provided vehicle on an as needed for business-related purposes basis. c) TSTC employees must have their driving record approved before operating a motor vehicle on TSTC business. See SOS FA.1.20 on Insurance for details. d) Only employees who have received specialized training may operate 15- passenger vans. Training certificate or documentation must be on file. 7. Use of Contracted Rental Car Companies a) Each year the State obtains both in-state and out-of-state contracts with one or more rental car companies. The companies under contract must be used unless: the contractor does not have a location in the required city; the contractor is sold out; or a lower total cost than the contract rate can be obtained. b) If an employee does not use a contracted rental car company and the

anticipated cost is higher than the contracted rental rate, the exemption must be documented using the Travel Contract Exceptions Form (available on the TSTC Portal). The form must be attached to the Travel Request. c) When renting a vehicle for domestic travel from contracted car rental companies, the daily rate already includes both loss/damage waiver and liability coverage. 8. Incidental Expenses a) Employees may be reimbursed for incidental expenses if they are incurred for an official state business reason. Incidental expenses may include: Postage Books or documents purchased at a conference or training Business telephone calls (local and long distance) Checked bags (limit one unless there are extenuating circumstances, which must be documented). Copying and facsimile charges Currency exchange charges Freight for state equipment or materials Fuel for rental, leased, or state-owned vehicles Internet Parking (hotel, airport, etc.) Repairs for state vehicles Taxi and other transportation methods (ex: Uber) Tolls b) Employees may not be reimbursed for the following incidental expenses even if they are incurred for an official state business reason: Alcoholic beverages Damage, loss or theft of personal funds or property Excess baggage charges for personal belongings. Expenses related to the operation of a personal motor vehicle Personal expenses such as movies, dry cleaning, laundry, etc. Pet related expenses Rental of videotapes or movies for personal entertainment Sales tax, if law provides exception to TSTC and employee fails to claim the exception c) Reimbursement for tips and gratuities incurred during official travel are allowed only with local funds and are limited to the following:

Hotel bellman, airport porter - $1 per bag Taxi Driver not to exceed 20% Restaurant Staff not to exceed 20% Valet - $2 Housekeeping staff - $1 per night Some lodging establishments and restaurants include a gratuity in the price, in which case an additional voluntary tip is not reimbursable. Tips and gratuities should be itemized in the Travel Voucher. 9. Coordination of travel a) Coordination of travel must occur when two, three, or four state employees employed by the same state agency are traveling on the same date with the same itinerary to conduct the same official state business. If more than four state employees employed by the same state agency travel on the same dates with the same itinerary to conduct the same official state business, then coordination of travel is required for each group of four employees and for any fraction in excess of a multiple of four employees. When coordination of travel is required, a state agency may reimburse only one of four of the state employees in a group for mileage. b) Use of Mobile Office vehicles, leased aircraft, or other transportation methods available for TSTC travel should consider cost efficiency and coordination of travel. Productivity costs may be included in such analysis. c) Supervisors are responsible for ensuring this provision is adhered to when planning travel for their employees. 10. Travel by TSTC Plane or Private Aircraft a) For travel on TSTC aircraft see System Operating Standard GA.1.11. b) The following guidelines apply for mileage reimbursement rates for travel on Private aircraft: For reimbursements to Board Members and Key Officials use the rate listed on the State Comptroller s Fiscal Management website at: https://fmx.cpa.state.tx.us/fm/travel/travelrates.php. Key Officials at TSTC refers to the Chancellor and Vice Chancellors. For reimbursements to other State Employees use rate listed on the State Comptroller s Fiscal Management website at: https://fmx.cpa.state.tx.us/fm/travel/travelrates.php

11. Travel Card Program Employees who receive a car allowance are expected to use their personal vehicle for official business travel when possible and are reimbursed at one-half of the applicable rates. a) An employee who travels on college business and is expected to make three or more trips a year or have at least $500 in travel expenses per year is eligible to apply for a Travel Card. b) Applications for a Travel Card are available from the Travel Services Office. Each employee issued a Travel Card must sign the Individual Corporate Card Use Agreement (available on the TSTC Portal). This form will be placed in the employee s personnel file. c) Employees must request reimbursement for expenses charged to the Travel Card upon completion of their travel. The cardholder is responsible for paying the credit card company for all charges incurred. If an employee's Travel Card is canceled due to non-payment, the employee must travel using personal funds (except for direct bill items). d) In some instances, charges for travel-related expenses such as parking, taxis, and gasoline may be coded by the merchant as retail. The Travel Card has a State designated limitation of $200 per billing cycle on nontravel ( retail ) charges. e) An employee who opts-out of applying for a Travel Card, will be required to travel using his/her own personal funds and request reimbursement upon completion of travel. TSTC may pre-pay (via direct or third-party bill or Travel Card) hotels, airlines, and rental car companies, when possible. f) The Travel Card must be used to charge expenses while traveling and under no circumstances should it be used to charge personal expenses. Failure to comply will result disciplinary action as stated in the Individual Corporate Card Use Agreement. Per Ethics Advisory Opinion (EAO) No. 147, the Texas Ethics Commission ruled that a public servant s use of a state issued credit card for any type of expense other than a state travel business expense is a misapplication of state property and may violate Section 39.01 of the Texas Penal Code. Depending upon the amount charged, a state employee could be charged from a class C misdemeanor to a second degree felony. 12. Travel of the Chancellor or Member of the Board of Regents a) The same travel rules that apply to other state employees regarding the use

of state-contracted airlines, hotel and rental car companies, mileage reimbursement, and travel on state aircraft apply to the Chancellor or Member of the Board of Regents. b) Lodging reimbursement is actual expenses up to twice the allowable rate for state employees. c) Meal reimbursement is actual expenses up to twice the allowable rate for state employees. Meal receipts are not required for reimbursement. 13. Travel With or On Behalf of The Chancellor a) The Chancellor may designate one or more state employees to represent or travel with him/her to a particular event. b) In such cases, the designated individual(s) may receive reimbursement of actual expenses for meals and lodging up to twice the allowable rate for state employees. The individual must submit an Authorization for Actual Expenses form (available on the TSTC Portal), before the travel occurs. This form approves reimbursement of actual expenses for meals and/or lodging. 14. Travel Funded by Contracts, Gifts, Non-State Grants, and Federal Funds a) Employees traveling under the auspices of contracts, gifts, non-state grants, or federal funds must abide by the following rules: For all contracts, gifts, and grants (other than those from, or derived from state agencies), travel reimbursement will be based on locality flat rates for meals and lodging as per the Federal Travel Regulations outlined by the General Services Administration. This applies to both in-state and out-of-state travel. The transportation allowances will follow the provisions of the general travel regulations. Information is available on the GSA website at: http://www.gsa.gov/portal/category/104711. For grants derived from state agencies, the reimbursement will be based on the rates as set by the State Comptroller s Office. b) The provisions above are subject to the terms and conditions of the particular contract, gift, or grant involved, which may supersede the above provisions. 15. Travel Coordinator

Each state institution has an assigned Travel Coordinator who is the representative for travel. The Travel Coordinator is responsible for travel management functions on behalf of the college. The name and contact information of TSTC s Travel Coordinator can be found on the TSTC Portal. 16. Disabled Travelers C. Payment of Travel Disabled employees may be reimbursed for attendant care and other necessary expenses incurred. First class airfare may be reimbursed for the disabled and their attendants as long as airfare is medically necessary. For travel costs to be reimbursed, employees must submit proper reimbursement documentation as required by this SOS and State and Federal rules and regulations. a) After travel has been completed, a Travel Voucher must be prepared with all required receipts and documentation and submitted to the Travel Services Office no later than 15 days after the last date of travel. The Travel Voucher must be signed by the employee and, if total actual expenses are higher than the estimate on the approved Travel Request, the Travel Voucher must also be signed by the employee s supervisor and by the account manager (if supervisor and account manager are not the same person). b) If an exception in this Statewide Operating Standard results in no initial Travel Request approval required, then the Travel Voucher must be approved by the employee s supervisor and by the account manager (if applicable). c) Refer to table below for detailed explanation of required documentation: Expense Airfare Incidental Expenses Lodging Meals Requirements Receipt required; must show passenger name, dates, amount and method of payment. Receipts required; when receipts are not available (ex: gratuities), detailed itemization of the expenses is required. Receipt required; showing proof of payment to the hotel; may not be reimbursed for Texas Hotel Occupancy Tax. (Overnight travel only) actual expenses not to exceed the maximum meal reimbursement for a specific location. Travelers may be required to submit receipts when a pattern of claiming maximum reimbursement is observed. Include a copy of the conference agenda, itinerary, or other

supporting documentation. Meal receipts may be required for travel funded by certain grants or special funding. Mileage Include Google Map and point to point address breakdown to document total miles claimed. If requesting mileage reimbursement in lieu of airfare, also include prior approval and documentation of estimated cost of advance purchased airfare. Approvals Parking Rental Vehicle Transportation Documentation is required for: Approval of travel (unless exempted in Section A-1 ) Cancellation charges Conference hotel rate Foreign travel Training Seminars Conducted by a State Agency Travel to Washington D.C. (if applicable) Any other form or approval as required by this SOS, including but not limited to: o Foreign Travel Release Form o Authorization for Actual Expenses o Travel Contract Exceptions Receipt required; must show date and amount. Receipt required; must use STMP contract car vendor or provide justification; must show date, names of renter, method of payment. Receipt required; must show date and amount. d) The possibility exists for an unallowable travel expense to be erroneously reimbursed. The payment of a reimbursement request containing an unallowable travel expense does not make future payments of like expenses proper. The employee must promptly reimburse TSTC for any erroneously paid reimbursement request. PERFORMANCE STANDARDS 1. A travel coordinator is designated and required duties are performed. 2. Travel guidelines are followed by all employees unless an exception is identified per this Statewide Operating Standard.