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Questions & Answers on the Mileage Reimbursement Policy

 

The following questions and answers have been developed to provide a better understanding of the new mileage reimbursement policy and how it should be applied. For additional questions concerning mileage reimbursements, contact Kim Kelley at 515-7132

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Question #1:

Why is the mileage reimbursement rate policy being changed?

Answer: The Office of State Budget and Management recently mandated an immediate change to the State’s travel policy to add “ if a state employee chooses to use a personal vehicle when a state-owned vehicle is available, all departments and agencies will reimburse the employee at the motor fleet rate for mileage (currently 33 cents a mile).”

Question #2:

Does the new mileage reimbursement change apply to non-state employee or student reimbursements?

Answer:  No.  State-owned vehicles are not available to non-state employees or students.  Non-state employees and students can be reimbursed for business mileage at the higher mileage reimbursement rate (currently 55 cents a mile) if approved by the department incurring the expense.

Question #3:

Does the motor fleet rate apply to an employee whose duty station is outside Raleigh and a departmental state-owed vehicle has not been assigned to the employee’s duty station?

Answer:  Generally, no.  An employee whose duty station is outside Raleigh and does not have a departmental state-owned vehicle assigned at the duty station is considered not to have a state-owned vehicle available.  Therefore, the higher mileage reimbursement rate is available if approved by the department incurring the expense.  When a state-owned vehicle is assigned to the duty station and the vehicle is available to the employee for travel purposes, the motor fleet rate would apply.

Question #4:

Is cost effectiveness such as diminutive travel distances considered when determining whether a state-owned vehicle is available?

Answer:  Yes.  The state budget policy states: “When travel by car is determined to be feasible, a state-owned vehicle, when available should be used instead of a private vehicle.  State departments must determine whether or not state-owned vehicles are considered to be available.”  In making this determination, the university considers the cost effectiveness of using a state-owned vehicle.  Generally, travel less than 30 miles from the duty station is not considered cost effective to make a state-owned vehicle available.  Therefore, travel within a 30-mile radius of the duty station may be reimbursed at the higher mileage rate, if approved by the department. 

Questions about other trips that would be considered more economical to the university by applying the higher rate should be addressed to Kim Kelley, Accounts Payable Manager.  Kim will review to determine whether travel in a state-owned vehicle would be more costly than a personal vehicle reimbursed at the higher rate.

Question #5:

Can a department be more restrictive in applying the mileage reimbursement rates?

Answer:  Yes.  Departments have to consider economic factors such as available budget funds in determining the rate they can pay.  The departments can choose to pay only the motor fleet rate regardless of the availability of a state-owned vehicle.   Such decisions regarding mileage reimbursement rates would require approval from the head of the College.

Question #6:

What reimbursement rate applies to travel to/from the airport at the employee’s duty station?

Answer:  Reimbursement for mileage between the employee’s duty station or home (whichever is less) and the nearest airline terminal will be at the business standard mileage rate set by the Internal Revenue Service (currently 55 cents a mile) for a maximum of two round trips with no parking charge, or for one round trip with parking charges.

Question #7:

Does the State’s travel policy, specifically the mileage reimbursement rule, apply to non-state funds?

Answer:  Yes.  All funds of the university are subject to the State’s travel policies except for certain exceptions provided for in the university’s expenditure guidelines available at

http://www7.acs.ncsu.edu/financialsvcs/SpendingGuidelines/Spend.htm

Question #8:

Can travel rates charged to a Federal contract or grant be more than the State’s policy if provided for in the project proposal?

Answer:  No.  OMB Circular A-21 “Cost principles for educational institutions” specifically requires that travel costs charged to the contract or grant be in accordance with the institution’s travel policy and practices consistently applied to all institutional travel activities.

Question #9:Text_Updated

Is a state-owned vehicle considered available when the employee begins travel on a weekend when the university motor pool office is closed?

Answer:  Employees are expected to make arrangements to be able to use a state-owned vehicle regardless of if the travel starts on a weekend or not.  However, there may be special circumstances where a traveler cannot make arrangements to use a state –owned vehicle without significant personal inconvience before travel begins due to personal needs.  In these cases, the traveler must document the special circumstances and have it approved prior to traveling by the traveler’s travel approver.  This documentation must be attached to the travel reimbursement request to obtain the IRS business standard mileage rate.  This exception is not available when:

  • The traveler has another car available at home or someone else in the traveler’s household has a car.
  • The traveler has opportunity to make plans to car pool with another traveler and chooses not too.
  • The traveler is within reasonable commuting distance (20 minute drive – one way) to the office and/or can make reasonable arrangements to pick up the parked state car after personal business is concluded but before travel begins.
  • The traveler’s only personal need is to return home (state car can be used for this purpose when in travel status)

Except under documented and approved special circumstances, excluding the situations above, employees are considered to have a state vehicle available unless motor pool provides in writing that a state car is not available.

Question #10:

Can other documentation rather than a certification from motor pool satisfy the requirement that a state-owned vehicle was not available?

Answer:  In the cases discussed in this Q&A document, you need only document that a state-owned car was not available by checking the appropriate box on the web travel system and providing Travel Audit with a reference to the appropriate Q&A and the relevant facts as to why the referenced Q&A applies.

Question #11:

If travel arrangements were made prior to the effective date of the change in the mileage reimbursement policy, can those travel arrangements follow the previous mileage reimbursement rule?

Answer:  Generally, yes.  However, when travel arrangements can be changed and is not inconvenient for the employee to do so, the new rule shall apply.     

Question #12:

Can exceptions to the new mileage reimbursement policy be granted to a certain class of employees?

Answer:  No.  The new mileage reimbursement policy is applicable to all employees.

Question #13:

What reimbursement rate applies to mileage related to meetings associated with recruitment (students / faculty) or development (donations)?

Answer:  Generally, private vehicles are used for meetings associated with recruitment and development.  Due to the nature of these activities, a state owned car is not considered available and the mileage reimbursement rate would be at the business rate as determined by the Internal Revenue Service.  When requesting reimbursement, the purpose of the trip must be sufficiently documented as related to either recruitment or development.