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 |

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
58.5 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 58.5 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:
Is a state-owned
vehicle considered available when the employee begins travel on a weekend
when the university motor pool office is closed?
Answer: Generally,
no. It is understandable that an employee may need their personal
vehicle during a weekend and before the travel begins. Therefore,
a state-owned vehicle is not considered available if travel begins on
a day that the motor pool office is closed and the employee’s personal
vehicle is needed for reasons other than returning home before the travel
begins. If the employee’s personal vehicle is not needed for reasons
other than returning home, a certification from motor pool indicating
that a state-owned vehicle was not available is required for the employee
to be reimbursed at the higher rate.
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.