E-5-1 Reimbursement of Travel Expenses

I. Purpose

To provide guidance to faculty and staff traveling on behalf of the University and its affiliated corporations that will:

• safeguard the assets and reputation of the University, 
• provide appropriate duty of care and risk management for University travelers,
• describe expenditures that are reimbursable in accordance with Internal Revenue Service (IRS) guidelines, and 
• inform employees and travel expense report approvers of their responsibilities regarding the management of official University travel. 

This policy applies to all units, regardless of source of funds; however, additional sponsor-imposed regulations may apply to travel on sponsored projects.

Individual colleges, divisions, and departments may establish policies that are more restrictive than this policy and opt to reimburse travelers less than the rates and amounts allowed in this policy. However, travelers must be notified in writing of the restrictions and the restricted rates and allowances must be applied to all travel, regardless of the funding source. 

II. Responsibilities

An employee cannot solely approve his or her own University business travel expenses (i.e. a traveler cannot approve his or her travel expenses and then also approve them as a budget officer). Travel expenses are reimbursable only when all required approvals, including any necessary prior approval from government agencies or other project sponsors, are obtained before incurring the expense. Employees cannot request reimbursement from the University for expenses reimbursed by any other entity such as a government, corporation, or organization. Any reimbursement from or expense paid for directly by a third party must be reported on the Concur travel expense report.

1. Travelers, Travel Arrangers and Travel Expense Delegates 
   • Obtain supervisor and business officer approval prior to incurring travel expenses
   • Disclose plans for combining business with personal travel to the travel approver prior to incurring travel expenses
   • Adhere to University policies as they pertain to travel
   • Ensure that travel expenses are reasonable and necessary and in accordance with University policies and procedures
   • Approve travel expense report within 60 days from last date of travel (traveler responsibility)
   • Substitutes or delegates cannot approve travel expense reports on behalf of the traveler
   • Travel only when it is in the best interest of the University
   • Exercise good stewardship of University funds and assure that all University related policies are followed
   • Request reimbursement for only their expenses and not the expenses of other travelers 
   • Maintain current work address in myUK Employee Self Service
2. Supervisor 
   • Approve travel requests prior to travel occurring
   • Approve necessary and reasonable business travel expenses in a timely manner after travel is complete
   • Approval should be documented and maintained (e.g., in Concur Request, in Kronos or in the department)          
3.   Business Officer
   • Approve travel request funding prior to travel occurring 
   • Approve necessary and reasonable business travel expenses and expense report funding in a timely manner after travel is complete
4. Accounts Payable Services
   • Audits and approves all travel expense reports for adherence to policies and procedures 
5. Travel Services
   • Acts as liaison between the University and designated travel vendors
   • Provides risk management tools for traveler duty of care
   • Provides historical airfare cost comparisons per policy 
   • Monitors adherence to policies and procedures
   • See Travel Services website for full details of services provided

III. Definitions

1. CONUS: An acronym used by the U.S. government for the contiguous “continental United States”. The CONUS table is used to obtain per diem meal reimbursement rates for an area.
2. Fly America Act: A federal regulation that requires the use of U.S. flag carriers for travel on federally funded sponsored projects. See Travel Services website for details.
3. Incidentals:Expenses for laundry, baggage tips, housekeeping tips, and other lodging-related tips. 
4. Motor Vehicle Record (MVR) Release and Information Form: A form used by Risk Management to verify driving records of employees traveling on behalf of the institution. This form must be on file with Risk Management before driving a motor vehicle (personal, rental or University owned/leased) on University business and should be updated when information changes.
5. OCONUS: An acronym used by the U.S. Government for areas “outside continental United States” including Alaska, Hawaii, U.S. territories as defined by IRS publication 570, and foreign countries. The OCONUS table is used to obtain per diem meal reimbursement rates for these localities and maximum lodging rates for areas other than the 50 United States.
6. Per Diem Allowance: The fixed amount paid for subsistence and incidentals in lieu of actual expenditures.
7. Receipt: The acknowledgement of payment received. Receipts must include the name and location of the establishment, an itemized listing of the goods or services provided, the date of the transaction and the amount paid. For airline tickets, the receipt must show the ticket number (13 or more digits), issue/purchase date, issuing travel vendor, detailed itinerary with dates/flight times/destinations, purchase price including service fee, and form of payment.
8. Reasonable expense: An expense that is ordinary and reflects a prudent decision to incur the expense on behalf of University business. Reasonable expenses are not excessive in usual and ordinary circumstances.
9. Residence: The permanent home address of the employee contained in the official records of the University Human Resources system.
10. Subsistence: The amount expended for meals, including tax and tips, while traveling on official University business, but excluding meals included in registration fees.
11. Type of Trip: The field on the Concur Travel Expense Report primarily used for determining appropriate general ledger codes when completing a Concur Travel Expense Report.
    1. Domestic: Travel within the 50 United States including the District of Columbia and the U.S. territories as defined in IRS Publication 570. 
       1. While Canada and U.S. territories are considered domestic travel with regard to reimbursement, the trip classification is still international and required to be registered in the University’s International Travel Registry. 
       2. Airline tickets to Canada and the U.S. territories must be purchased through UK Travel Services.
    2. International: Travel to all other locations other than domestic locations listed above.
12. Travel Vendor:
    1. UK Travel Vendor: AAA Corporate Travel Services, Avant Travel and Concur Travel online booking tool.
    2. Alternate Travel Vendor: Any travel vendor other than a University travel vendor as defined above (e.g., Delta.com, Expedia, Orbitz, Travelocity, and ABC Travel International).
13. Work Address: The street address where the employee normally performs regularly scheduled duties. The work address must be in the official records of the University Human Resources system. The official work address of field employees is established by the department head, based solely on the best interest of the University. If an employee is permanently re-assigned or is stationed at a new location for two or more months, the new location will become the employee’s work address. Remote/hybrid employees may be required to make trips to the central work address for meetings, special projects, trainings, equipment repair, etc. Employees will not be reimbursed for associated travel expenses for these trips from any funds.

IV. Policy

1. Necessary and Reasonable Travel Expenses

   Travel expenses incurred must be necessary and reasonable to accomplish the traveler’s University business travel needs. 

   Travelers must use the most direct routes, incur the lowest reasonable travel expenses, and exercise care to avoid impropriety and/or the appearance of impropriety. Expenses related to personal travel or personal entertainment, including any additional baggage costs or other costs incurred related to items not needed to fulfill the business purpose of the travel, shall not be considered a reasonable business-related expense. Only items needed to accomplish the business purpose of the trip shall be paid or reimbursed by the University. 

   Travel dates are based upon when University business starts and ends, the actual business location (distance from work address), and transportation schedules.  

   Travel reimbursement must be reduced by any amounts credited to the individual by airlines, hotels or other travel vendors. Airline tickets or other travel expenses acquired with airline frequent flyer or credit card points/awards are not reimbursable. Only out-of-pocket expenses are reimbursed.

2. All Sponsored Projects

   Costs incurred by travelers whose expenses, in part or in whole, are funded from a sponsored award must document that the expenses are reasonable, allowable, allocable, necessary and consistent with University policies. Sponsors may further limit the amounts reimbursed based upon per diem rates established by reference in agreements or contracts (e.g., state agreements or sub-agreements). If the trip includes international travel, lodging should be less than or equal to the U.S. federal government OCONUS allowable per diem and the airfare must be in compliance with the Fly America Act in addition to the requirements of section IV. G. International Travel. 

   When travel costs will be charged in whole or in part to a sponsored project, award terms and conditions take precedence unless University policy is more restrictive. Expenses are considered reasonable if they are consistently reimbursed on all other funding sources during the budget period incurred. If expenses are split among multiple sources of funds, document the allocation method used (usually a percentage) to distribute expenses to the sponsored project. Lack of available funds, as when a sponsored project budget has not been approved, is not an acceptable reason for non-compliance with the over 60-day taxation rule (see section V. B. Submission of Travel Expense Report and Reimbursement below). If the budget and allowable posting period are closed, reimbursement must be made from another fund source.  

3. Economical Transportation Required

   1. Commercial Air Travel

      Employees traveling on University business must select travel at the lowest available airfare that is necessary and reasonable to meet the business needs of the traveler. When evaluating the lowest cost option, transportation to/from the departing airport must be considered in the cost. 

      1. Domestic travelers are encouraged to make their commercial air travel arrangements through the University's designated travel vendors as defined on the Travel Services website. 
      2. All international airline tickets for UK-endorsed travel must be purchased through UK Travel Services’ designated travel vendors. 

      The University reimburses coach class airfare for domestic and international flights. However, with supervisor approval, business class airfare will be reimbursed for eight hours or more of uninterrupted flight service. Reasonable ancillary fees including, but not limited to, expenses for convenient or early boarding, extended legroom, seat location, baggage, in-flight meals, and Wi-Fi service are approved at the supervisor’s discretion.

   2. Vehicles

      An employee driving for University business must have a Motor Vehicle Record (MVR) Release and Information Form on file with Risk Management. For all types of vehicles driven, necessary and reasonable vehicle-related expenses are allowed for parking, tolls, ferries, bridges and tunnels. Payment of traffic and parking tickets are the responsibility of the traveler. Automobile expenses such as repairs, towing, rental/mileage for sightseeing or other personal travel will not be paid with any University funds. Remote/hybrid employees will not be reimbursed mileage, car rental expenses, parking or other vehicle-related expenses for driving to a University office/location for meetings, special projects, trainings, equipment repair, etc.  However, remote/hybrid employees may be reimbursed for travel expenses to other designated areas for which employees working at the central worksite are reimbursed. 

      1. Personal Vehicle

         Based on the IRS Standard Business Mileage Rates, the University will reimburse 67 cents per mile (as of January 2024) for University business travel by personal vehicle based on the actual driving distance by the most direct route (not more than 105% of the mileage listed on Google Maps). Mileage is reimbursed from the traveler’s work address to the destination, unless driving from the traveler’s residence is closer. 

         If a traveler chooses to drive more than 500 miles one way to the business destination, mileage reimbursement shall not exceed the equivalent commercial airfare expenses for the same trip (see section V. C. Cost Comparisons section). Gasoline and automobile expenses such as repairs and towing shall not be paid with the University procard or reimbursed when driving a personal vehicle.

      2. University-Owned/Leased Vehicles 

         Mileage for University-owned vehicles will not be reimbursed. The actual cost of fuel will be paid by the University with a key fob issued by the College of Agriculture, Food and Environment’s fueling facility or a U.S. Bank Voyager Fleet card.

      3. Rental Cars

         The University prefers that rental car reservations be made through UK Travel Services’ designated travel vendors to receive negotiated rental car discounts. The most economical car feasible for University business travel must be rented. Mileage for rental cars is not reimbursable.

         If a traveler chooses to drive more than 500 miles one way to the business destination, mileage reimbursement shall not exceed the equivalent commercial airfare expenses for the same trip (see section V. C. Cost Comparisons below).

         If a traveler is driving more than 200 miles, the University’s preferred method of transportation is by rental car. The University’s Actual Cash Value Comprehensive and Collision coverage plan provides insurance on rental cars. Rental cars for trips more than 200 miles are generally more cost-effective than reimbursing for personal vehicle mileage. The University’s mileage reimbursement calculator can be used to determine the more cost-effective option.

   3. For domestic car rentals, insurance is not a reimbursable travel expense and should not be purchased. For international car rentals, insurance is a reimbursable travel expense and it is recommended by UK Risk Management that it should be purchased. Railroads, Non-local Buses, Commercial Vessels

      Railroads, non-local buses, or commercial vessels may be utilized when they provide for the lowest cost transportation option available for the trip to meet the business needs of the traveler. 

   4. Charter Aircraft 

      Charter aircraft may be used, in rare and unusual circumstances, if it is determined to be advantageous to the University, measured by travel costs and travel time. Written justification prior to travel must be submitted and approved by the department head or whomever they have delegated authority to approve and Risk Management. 

   5. Ground Transportation 

      Personal vehicle mileage will be reimbursed to the traveler’s departing airport. Other forms of ground transportation to/from the departing airport (e.g., taxis or ride-sharing services) can be approved by the supervisor in lieu of personal vehicle mileage.

      For ground transportation at the destination, expenses for buses, subways, taxis, and ride-sharing services (e.g., Uber or Lyft) are reimbursable with supervisor approval. 

4. Meals and Incidentals

   Meals and incidental expenses for domestic and foreign travel are paid using per diem rates established by the U.S. federal government (CONUS or OCONUS), based upon the traveler’s destination for that date. These expenses shall not be paid with the University procard. The University will reimburse meals and incidental expenses incurred on the first and last days of travel at 75% of the standard per diem rate regardless of what time of day the travel begins or ends.

   Meal per diem cannot be claimed for meals included in registration fees or otherwise provided at no cost to the traveler as part of the event. A traveler attending a function such as a luncheon or dinner meeting/event may be reimbursed for the actual meal cost instead of the per diem when the traveler’s attendance is required. 

   Laundry expense, baggage tips, housekeeping tips, and other lodging-related tips are considered incidental and are covered by the per diem rate and, therefore, are not reimbursable.

5. Lodging 

   University business travelers must use lodging accommodations that are necessary and reasonable. The University is sales tax exempt for Kentucky hotels, and some out-of-state hotels as well. See Purchasing’s tax-exempt information for Kentucky and other applicable states. 

   Hotel late checkout charges or “no show” charges for guaranteed reservations that are not cancelled will not be paid or reimbursed by the University unless justified.

   Rental services (e.g., Airbnb and VRBO) are allowable for University business travel. The rental service must be necessary and reasonable to meet the business needs of the employee traveling. The agreement or contract for the rental service will be between the employee and the rental host, not the University and the rental host, and the employee accepts responsibility for any incidents that may occur during their stay. Prior to booking a rental service, an employee should carefully review terms of the agreement, with particular attention paid to cancellation and refund policies. Consideration should also be given to personal safety (e.g., location, surroundings, and facilities). If the traveler chooses a rental larger than what is required for their business needs, the department must have documentation showing the cost of the rental is comparable to the cost of hotels in the area. Any fees associated with the rental that are not usually charged by hotels, including but not limited to damage fees, insurance, additional guest fees, etc., are not allowable on the procard and would be considered a personal expense for which the traveler would be responsible.

6. Local Travel 

   Local travel is defined as less than 50 miles one way from the employee’s work address or the traveler's residence, whichever is greater. Barring exceptional business reasons, local travel does not qualify for an overnight stay or payment of personal meals. Based on the IRS guidance, if a trip exceeds the local travel distance and the traveler is in travel status for more than 12 hours, but the traveler chooses not to stay overnight, personal meals will be eligible for reimbursement at 75% of the standard per diem rate for the locality visited during the day.   

7. International Travel

   All international airline tickets, including tickets to Canada and U.S. territories, for UK-endorsed travel must be purchased through UK Travel Services. International travel and travel to U.S. territories must be registered in the University’s International Travel Registry before departure. Activities overseas that must be registered include, but are not limited to, official University business, conference attendance/presentations, research, community service, and sabbaticals. To ensure coverage under UK’s international insurance plan, all University travel outside of the United States and to the U.S. territories as defined in IRS Publication 570 must be registered. While Canada is considered domestic travel with regard to reimbursement, the trip classification is still international for this registry. 

   All UK-endorsed international travel and travel to U.S. territories must be registered in the University’s international travel registry.

   International travelers should be aware that countries might have border restrictions, quarantine periods and testing requirements. It is essential for travelers to understand the landscape in their destination country so that they are prepared for any logistical challenges they may encounter.

   Any UK employee traveling internationally or to a U.S. territory with an undergraduate or graduate student (regardless of the student’s concurrent employment status with the University), a postdoctoral fellow, or a GME Resident must register with UK’s Office of International Health, Safety & Security or UK Education Abroad & Exchanges before departure and comply with all other requirements established by University Administrative Regulation 4:9. 

   Fly America Act - Generally, if a University traveler is traveling on funds provided by the federal government, a U.S. flag air carrier (an airline owned by an American company) must be flown, regardless of cost or convenience. However, there are times when a foreign carrier can be used through airline code sharing, open skies agreements, or time restrictive exceptions. See Fly America Act details on the Travel Services website.   

   Certain expenses required for and unique to international travel are reimbursable. Such expenses include visas and immunizations for a traveler’s destination recommended by the Centers for Disease Control and Prevention (CDC). Students may be reimbursed charges for UK’s required travel medical insurance charged to their student accounts from the International Center if they are traveling in their capacity as a University employee. 

   Reimbursable expenses incurred abroad must be submitted in US Dollars (USD) using the exchange rate(s) in effect at the time of travel:

   • If US Dollars (USD) are exchanged for foreign currency, the exchange rate listed on the receipt can be used to convert expenses for the trip. Attach the receipt to the expense report as documentation.
   • OANDA.com may be used as a resource to obtain historical foreign exchange rates. The traveler may use the average rate for the travel period or the daily rate. Print and attach the page to document the exchange rate used.
   • The Concur Travel Expense Report can convert the foreign currency receipt to U.S. Dollars.  
   • If expenses are charged on a credit card, the credit card company converts the expenses and that rate must be used if known at the time the travel expense report is submitted.

8. Travel Reimbursed from Multiple Entities

   If a traveler is taking a trip reimbursable jointly by the University and another entity or entities, the University will reimburse for its share of the actual fare necessary for University business and the traveler is responsible for seeking reimbursement for expenses payable by others. Fares greater than coach fare (e.g., first class or business class) cannot be used as the basis for prorating air travel costs. When an outside organization reimburses or provides meals, the traveler may not claim per diem from the University for those meals. In no case may the amount reimbursed for the trip from all sources exceed the total expenses incurred.

9. Working Meals

   Breakfast, lunch or dinner meetings when groups of employees in travel status to conduct University business may be reimbursed for actual expenses in accordance with E-7-10 Discretionary Expenditures. The reimbursement must list all employees participating in the working meal as well as the business purpose for the meal. The meeting agenda needs to be attached with the itemized receipt. Travelers may not claim per diem for working meals that have been reimbursed at actual cost.

10. Sabbatical Leave

    Travel reimbursement while on extended leave (e.g., sabbatical leave) is not guaranteed. Reasonable University financial assistance, when approved in writing for necessary and reasonable University business expense, may be authorized as part of the Sabbatical Leave Application. If funding is available, it must be authorized in writing prior to the leave and in advance of incurring expenses. 

    Expenses incurred during sabbatical leave are payable when they are incurred for necessary and reasonable University business, are related to the faculty member’s work or the purpose of the sabbatical leave, comply with all University travel policies, and have advance written approval of the department Chair. When submitting the expense report, the Sabbatical Leave Application must be attached to the expense report.

    An employee’s current work address must be reflected in the official records of the University’s Human Resources system at all times, including when an employee is on sabbatical leave. 

11. President’s Spouse or Partner Travel

    The President is often required to have extensive and unique contact with the public on behalf of the University. When he/she is performing official duties in such areas as philanthropy, alumni, and governmental relations, the University will pay the spouse’s or partner’s travel expenses with discretionary funds if the following conditions are met:

    • The spouse or partner attends and contributes to the official function. This includes events where the spouses or partners of the University’s guests are expected to be present. 
    • The purpose of the travel and the expenses incurred are fully documented.
    • The spouse’s or partner’s travel expenses will be included on the President’s travel expense report. 

    The payment of travel expenses for spouses or partners of other University employees is not permitted unless prior approval for the travel and estimated expenses is granted by the President. Such payments must be paid from discretionary funds. 

V. Procedures

1. Procurement Card

   The University has a Procurement Card Program to facilitate payment of travel-related expenses (e.g., airfare, lodging, car rental, registration and other ground transportation related costs) for University business. Frequent travelers should obtain a University procurement card (procard).

   The procard must be used to pay for University business travel expenses not covered by the meal per diem or the IRS Standard Business Mileage Rates, when possible.  

   Generally, the following expenses shall always be placed on the procard:

   • Airfare, baggage and other airline fees allowable under this policy
   • Lodging (excluding personal expenses such as room service, movies and mini bars)
   • Car rentals
   • Ground transportation
   • Registration fees

   Receipts, along with any required supporting documentation, must be submitted for all procard expenses of $75 or more allocated on the Concur General Travel Policy Expense Report by the 15^th day of the following month.   

   In the event an unallowable or non-reimbursable expense, such as an expense which is covered by mileage or per diem reimbursements, is paid with the procard, the expense shall be deducted from the traveler’s reimbursement. Should the amount charged on the procard exceed the amount to be reimbursed, then the amount will be deducted from the employee’s paycheck. The Concur Quick Reference Guide provides guidance related to reporting personal purchases. 

2. Submission of Travel Expense Report and Reimbursement

   The University complies with IRS rules on accountable plans. Travel expenses not paid with the procard such as mileage and per diem reimbursements for meals and incidentals should be submitted by the 15^th of the month following the month the travel concluded, with any required cost comparisons (see section V. C. Cost Comparisons below for when a cost comparison is required). Absent exceptional circumstances, travel expense reports approved by travelers more than 60 days from the last date of travel will be reported as taxable wages. Receipts, along with any required supporting documentation, must be submitted for any reimbursable expense of $75 or more, excluding mileage and per diem reimbursements, not placed on the procard.  Lodging receipts are required for all amounts.

   Reimbursements will be paid by ACH deposit to the main bank shown on the employee’s payroll record after the final approval is received on the Concur Travel Expense Report.

3. Cost Comparisons
   1. When a traveler chooses to drive a personal vehicle or a rental car over 500 miles one-way to the UK business destination, a cost comparison (Air versus Auto Travel Expense Form) must be submitted with the travel expense report comparing the airfare cost for business-only travel and the auto travel related costs. The airfare cost should be run at least three weeks prior to the start of travel, or as soon as the need for travel is known if inside of three weeks. Reimbursement of personal mileage or rental car/gasoline expenses will be limited to no more than the normal expenses that would be incurred with air travel. For full instructions, see Required Cost Comparisons on the Travel Services website.
   2. When a traveler chooses to combine business with personal travel on an airline ticket, an airfare cost comparison for business-only travel and the actual ticket receipt must be submitted with the airline ticket on the procard expense report or the travel expense report if the ticket was not purchased with the procard. The cost comparison must be run within three days (either before or after) of the ticket purchase date. For full instructions, see Required Cost Comparisons on the Travel Services website.
      1. The procard can be used to purchase a combined business and personal airline ticket only if the resulting airfare is equal to or less than the cost comparison airfare for UK business-only travel. 
      2. A personal credit card must be used to purchase a combined business and personal airline ticket if the resulting airfare is higher than the cost comparison airfare for UK business-only travel. After travel is complete, the traveler will be reimbursed the cost comparison airfare. 

4. Splitting Travel Costs between Sources of Funds

   If travel expenses for a single trip are split, benefit multiple sponsored funds or benefit both sponsored and non-sponsored funds, all expenses must be allocated on a reasonable basis. Examples of a reasonable basis include determining that certain sessions of an event benefit a specific sponsored project and allocate the expenses by percentage of the whole expense to the multiple sources of funds. If an appropriate allocation method is not used, full time equivalent of the funds is an acceptable alternative.