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Subsistence Allowances

REG 07.65.08

Travel
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Authority: Vice Chancellor for Finance and Business

History: First Issued: May 25, 2000. Last Revised: July 1, 2007. Additional History Information.

Contact Info: Small Purchase and Travel Audit Coordinator (919-515-7489)

1. Daily Travel (Not Overnight)

Allowances shall not be paid to employees for lunches if travel does not involve overnight stay. The travel destination must be at least 35 miles from employee's regularly assigned duty station (vicinity) or home, whichever is less. To be eligible for allowances for the breakfast and evening meals, employees must comply with the following criteria:

1.1. Breakfast - depart duty station prior to 6:00 A.M. and extend the workday 2 hours.

1.2. Dinner (evening) - Return to duty station after 8:00 P.M. and extend the workday 3 hours.

Allowances for lunches cannot be paid to employees if travel does not involve an overnight stay; however employees can be eligible for allowances for the breakfast and evening meals when the following applies:

2. Overnight Travel

Employees receive reimbursement for meals and lodging for full days of travel and for partial days (less than 24 hour period) when the partial day is the day of departure or the day of return and involves an overnight stay. The travel must involve a travel destination located at least 35 miles from the employee's regularly assigned duty station (vicinity). To be eligible for specified meals on partial travel days the employee must:

2.1. Breakfast - depart duty station prior to 6:00 A.M.

2.2. Lunch -depart duty station prior to Noon (day of departure)
- return to duty station after 2:00 P.M. (day of return).

2.3. Dinner - depart duty station prior to 5:00 P.M. (day of departure). Return to duty station after 8:00 P.M. (day of return).

3. Out-of-State Travel

Out-of-State travel status begins when the employee leaves the state and remains in effect until the employee returns to the state. However, in-state allowance and reimbursement rates apply when employees and other qualified official travelers use hotel and meal facilities located in North Carolina immediately prior to and returning from out-of-state travel during the same travel period.

4. Subsistence Allowances (Rates)

A traveler who is (1) authorized by the proper University official for travel and (2) is in travel status for a calendar 24-hour period is entitled to claim up to a maximum of $97.75 for in-state and $111.75 for out-of-state travel not to exceed the individual allowances as shown in the chart below. The employee may receive meal allowances regardless of the actual amount incurred. Payment for lodging is limited to actual cost and must be documented by a receipt from a commercial establishment. The maximum meal allowances and lodging rates are as follows:

The payment of sales tax, lodging tax, local tax, or service fee applied to the cost of lodging is allowed in addition to the lodging rate and is to be paid as a lodging expense.

Federal per diem is available for out-of-country travel on a Contracts and Grants account if the contract authorizes the per diem rate. Reimbursable rate is the prevailing rate at time of travel if the federal per diem is requested.

5. Lodging Documentation

The traveler must document that overnight lodging was necessary and accomplished. Reimbursement of actual costs of overnight lodging, whether in-state or out-of-state or out-of-country, must be documented by a receipt of actual lodging expenses from a commercial establishment. Proof of payment must be provided, lodging receipt must reflect payment of charges or charge card evidence of payment must be attached with specific dates of lodging listed on the reimbursement request. If Express Checkout is used, lodging receipt must indicate credit card as method of payment. Reimbursement for lodging in an establishment treated as an apartment building by state or local law or regulation is not allowed unless approved by the Office of State Budget and Management in advance. The travel must involve a travel destination located at least 35 miles from the employee's regularly assigned duty station (vicinity) or home, whichever is less.

6. Excess Lodging

Excess lodging is allowed when the employee is in a high cost area and unable to secure lodging within the current allowance.

7. Penalties and Changes Resulting from Cancellations

Penalties and charges resulting from the cancellation of travel reservations (including airline or hotel reservations and conference registration) shall be the department's obligation if the employee's travel has been authorized and the cancellation or change is made at the direction of and/or for the convenience of the department. If the cancellation or change is made for the personal benefit of the employee, it shall be the employee's obligation to pay the penalties and charges. However, in the event of accidents, serious illness or death within the employee's immediate family or other critical circumstances beyond the control of the employee, the department may pay the penalties and charges.

8. Reimbursement for Meals

Each employee is responsible for his or her own request for reimbursement. The system calculates the meals based on time of departure and time of return. Tips for meals are included in the meal allowance. Times of departure and arrival must also be listed on the reimbursement request. The costs of meals included in other related activities (registration fees, conference costs, hotel registration, etc.) may not be duplicated in the reimbursement requests. The travel must involve a travel destination located at least 35 miles from the employee's regularly assigned duty station (vicinity). If requested, each employee may be reimbursed for breakfast even if their lodging establishment offers a free continental breakfast.

9. Limitations on Lunch Allowances

Allowances for lunches may be authorized if the employee is in overnight travel status or the cost is included in the cost of a registration fee for official state business assemblies/conferences for more than a single agency and where the fee is not exclusively for lunch. The reimbursement rate for meals is inclusive of gratuities.

10. Meals Included in Registration/in Flight

The traveler cannot request reimbursement or duplicate meals furnished with other related activities (registration fees, conference costs, etc.). Travelers are allowed to claim reimbursement for meals even though they are shown and offered as a part of one's flight schedule on a commercial airline.

11. Excess Meals

No excess will be allowed for meals unless such are included as part of the registration fee and there are predetermined charges, or the meals were for out-of-country travel. The approver may grant excess subsistence for meals for out-of-country travel. Receipts are required for all excess meal reimbursements.

12. Tips

Meal tips incurred by the traveler must be included in the subsistence allowances. Tips for handling baggage at common carrier terminals and tips for the handling of baggage when arriving at or departing from the place of lodging can be claimed separately and must be itemized under the "Other Expense" section of the travel reimbursement form. Excessive tips must be documented with a receipt.

13. Passports

Reimbursement for costs incurred in obtaining or renewing a passport may be allowed to an employee who, in the regular course of his duties, is required to travel overseas in the furtherance of official state business. Passport expenses are chargeable to the same fund that supports the employee's trip.

14. Telephone Calls/Facsimiles

Official phone calls and facsimiles are reimbursable under "Other Expenses". Individual calls and facsimiles over five dollars ($5.00) must be identified as to point of origin and destination. Employees may use the state network system, state credit card, or may be reimbursed for a personal long distance call(s) if such call(s) are of an emergency nature. An example may be a call made when an employee calls home to inform someone that the travel period has been extended beyond original plans due to unforeseen reasons.

15.1. An employee who is in travel status for two or more consecutive nights in a week is allowed one personal long distance telephone call for each two nights, for which reimbursement to the employee may not exceed $3.00 for each in-state call or $5.00 for each out-of-state call.

15.2. Mobile Telephones- Because mobile (cellular and digital) telephone charges are based on measured use, no personal calls should be made on cellular telephones except in case of emergency as determined by the department. Mobile telephone calls to conduct official state business should only be used when more economical means of telephoning are not reasonably available.If an employee uses his/her personal mobile telephone in conducting State business, the employee can be eligible for reimbursement. In order for the University to reimburse the employee, the employee must indicate on his/her telephone bill the reimbursable calls, individuals called, and nature of calls and submit the telephone bill to their supervisor for approval. If the supervisor approves the calls as State business related, the University will reimburse the actual billed cost of the call.

15.3. Telephone with Computer Hook-ups - Employees traveling on official state business needing to transmit data, including e-mail, via their computers should use the most efficient manner available, including services available through the State's Information Technology Services (ITS) access.

15.4. Emergency Situations - Should emergency circumstances arise which necessitates a state employee to make a personal long distance or cellular phone call not covered in the above, employees should immediately notify his or her supervisor and make arrangements to reimburse the State.