HomeMy WebLinkAboutReso 60-19 Travel Reimbursement and Cash Advance PoliciesRESOLUTION NO. 60-19
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
ESTABLISHING THE CITY OF MORRO BAY'S ACCOUNTING AND
FINANCIAL REPORTING POLICIES RELATED TO CITY CREDIT CARDS,
TRAVEL, REIMBURSEMENT, AND CASH ADVANCE POLICIES
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay wishes to establish Financial policies to direct staff and
provide transparency to the Council and Community; and
WHEREAS, those policies include a policy regarding City issued Credit Cards, travel,
reimbursement for City -related expenditures and the need for cash advance of City funds; and
WHEREAS, staff recommends the City Council adopt the proposed Credit Card, Travel,
Reimbursement and Cash Advance Policies, which demonstrate the City's commitment to fiscal
responsibility and prudent management and is consistent with Government Accounting Standards,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,
the following policies, attached hereto and incorporated herein, are hereby approved:
1. "Credit Card Policy," as set forth in Exhibit A,
2. "Travel Policy," as set forth in Exhibit B,
3. "Reimbursement Policy," as set forth in Exhibit C, and
4. "Cash Advance Policy," as set forth in Exhibit D
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 25h day of June 2019, by the following vote:
AYES:
NOES:
ABSENT
ATTEST:
eller
Headding, Addis,
None
H
Sa
A S ANSON, City Clerk
Davis, McPherson
01181.0001/480959.1
Resolution No. 60-19
H
COUNCIL POLICY
Credit Card Policy and Procedure
Policy Statement
Exhibit A
The City of Morro Bay (City) is afull-service City, providing essential services to over 107000
residents related to public safety, planning, building, public works and recreation. In addition, the
City has a vibrant tourism industry, attracting thousands of visitors annually, all of whom utilize city
services in some fashion. As such, it is prudent for the City to establish sound financial
management policies that conform with generally accepted accounting principles, state regulations
and protects the City of Morro Bay's citizens assets.
Purpose
These guidelines establish the City's basic policies and procedures for using credit cards in making
minor supply and service purchases on behalf of the City and paying for travel expenses when on
City business. City credit cards are for official business use only. Charging personal expenses,
even if the intent is to reimburse the City later is prohibited. Doing so may result in disciplinary
action.
Objective
By using credit cards instead of other payment options, we hope to:
♦ Reduce procurement and payment processing costs
♦ Enhance internal control by better identifying specific employees making minor supply
and service purchases on behalf of the City and improving the accuracy of account
distributions between departments and projects.
♦ Take advantage of cost -saving opportunities by purchasing on the Internet and through
catalogs.
Policy
♦ Finance will issue City credit cards to regular employees as approved by the department
head. Department heads will set credit limits up to $3,000.00. The Director of Finance
may approve credit limits in excess of this amount.
♦ Credit card should never be used to circumvent established competitive purchasing
procedures. This means no purchases for goods or services should be made in excess
of $3,000.00 that would otherwise require competitive bidding.
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Resolution No. 60-19
Exhibit A
♦ Credit cards may be used in paying for travel expenses. However, the City's Travel
Guidelines still apply to all such credit card payments, including the use of Travel
Authorizations and per diem amounts.
♦ Alcohol is not a permitted purchase with use of City funds and as such, a City credit card
may not be used to purchase alcohol of any kind.
♦ Employees will not use City credit cards for personal expenses even if the intent is to
reimburse the City later. Charging personal expenses on City cards is a misuse of City
funds and a serious breach of the City's ethics policy. Doing so —even if the intent is to
reimburse the City later —may result in disciplinary action, up to and including termination.
Note: Including minor incidental expenses as a component part of a larger billing —such as
personal telephone calls or video rental on a hotel bill —is allowed if reimbursed at the time the
credit card billing is submitted for payment.
PROCUDURES
Requesting Credit Cards. Department heads should submit credit card requests to Finance (via
memorandum or email) to approve cardholders.
Criteria. Credit cards will only be issued to regular employees. Department heads should
consider the following factors in approving credit cards for their staff.
Ability to hold the employee accountable for purchases made on the card.
Recognition that .delegating authority to an employee to purchase via credit card is not
conceptually different from delegating authority to them to purchase from an open contract on
a vendor account. In fact, by issuing cards to named holders, accountability is enhanced. In
this context, departments should consider issuing cards in the same manner that they would
consider authorizing employees to use open vendor accounts. On the other hand, there is
much greater potential in the breadth -of -use of credit card: employees can use them with
more than just a few vendors. Department heads should also consider this added discretion
and increased potential for abuse in approving credit card holders.
Frequency of use, diversity of vendors and dollar value of purchases made by the employee.
Cardholder Agreement. Before receiving a credit card, employees will sign a "credit cardholder
use Agreement" (Exhibit A) setting forth their obligations under this program.
Timely Payment. Department heads are responsible for ensuring that each credit card statement
(along with appropriate supporting documentation reconciled to the statement) is submitted to
Finance for payment in a timely manner. Based on the statement cycle date, Finance will establish
specific monthly payment schedules for credit card statements. To avoid posting errors,
administrative charges and late fees, Finance will pay all credit card charges based on the "master
account" on a timely basis, even if supporting documentation is not yet received from the operating
departments. When subsequently received, the supporting documentation will be retroactively
reconciled to the payment. Instances where this occurs should be very rare and due to
extenuating circumstances. Accounting staff will notify the Director of Finance of any such
instances of late or inaccurate payment submittals. After reviewing the circumstances, the Director
of Finance will recommend to the department head appropriate follow-up action, including
cancellation of card privileges and disciplinary action.
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Resolution No. 60-19
Exhibit A
Disputed Charges. Cardholders are responsible for ensuring that the vendor and issuing bank
are notified immediately of any disputed charges. Standard forms (provided by the issuing bank)
are available from Finance for this purpose. Departments should pay the statement in full —
including any disputed amounts —to avoid finance charges and late fees; when resolved, this will
result in a credit to the account on the next monthly statement.
Standard Process for Payment. The City's standard accounts payable system will be used in
processing monthly credit card statement for payment. Each credit card charge should be listed
separately on the credit card payment voucher, and account numbers, purchase descriptions and
amounts referenced as appropriate. Supporting documentation for credit card payments should be
the same as for any other accounts payable item. This means that original invoices (or receipts)
along with credit card receipts must be retained, reconciled to the credit card statement and
attached to the credit card payment voucher. Sales/Use Tax at the local rate should added by the
purchaser to the supporting documentation and coded with the correct account number for
purchases made from "out of state" vendors or from internet sites that do not charge sales tax at
time of sale.
Lost or Stolen Cards. Cardholders are responsible for ensuring that the issuing bank and the
Finance Department are notified immediately if the card is lost or stolen. Standard forms (provided
by the issuing bank) are available from Finance for this purpose. Failure to do so may result in
making the cardholder responsible for any fraudulent use of the card.
Disciplinary Action. Department heads are responsible for all disciplinary action surrounding
misuse of cards, including requesting cancellation of card privileges.
Return of the Card Upon Request or Termination. Cardholders will immediately surrender their
card upon request of their department head. Personnel is responsible for retrieving the credit card
when an employee separates from the City. Use of the credit card for any purpose after its
surrender is prohibited.
RESPONSIBILITIES
Cardholders. Purchase supplies and services on behalf of the City in accordance with these
guidelinesI
Department Heads. Authorize issuance of credit cards and set credit limits; develop and
implement departmental procedures to ensure that payments are appropriately reviewed and
approved, processed in a timely manner and that all supporting documentation is retained,
reconciled to monthly statements and attached to payment vouchers; and oversee implementation
of these guidelines.
Finance. Establish "master account" relationship with issuing bank; issue credit cards as
requested by department heads in accordance with these guidelines; process credit card payment
vouchers in accordance with the City 7s accounts payable policies and procedures; ensure that the
monthly "master account" is paid in full on a timely basis; develop guidelines for departmental
payment procedures; help resolve billing disputes; and replace lost or stolen cards.
Human Resources. Retrieve credit card from employees separating from the City.
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Resolution No. 60-19
Exhibit A
These guidelines cannot cover every issue, exception on contingency that may arise in using City
credit cards. Accordingly, the basis standard that should always prevail is to use common sense
and good judgment in the use and stewardship of City resources.
COUNCIL POLICY
Travel Policy
I. GENERAL
Resolution No. 60-19
Exhibit B
A. PURPOSE
This policy applies to all City of Morro Bay employees ("Travelers"), and is intended to establish
uniform procedures by which Travelers shall report and be reimbursed for expenses incurred in
connection with authorized travel on behalf of the City.
This policy provides for economical and efficient travel in order to derive the greatest benefit from
the trip at the most effective cost. It does not allow Travelers to be financially enriched as a result.
A travel nor be required to utilize their own funds as a result of City travel. Travelers are
responsible for exercising good judgment in requesting, arranging and fulfilling a travel request to
mitigate costs to the City.
B. GENERAL PROVISIONS
1. Travel will be authorized only when necessary, and in the best interests of the City as
approved in accordance with the following:
a. Department Directors will authorize and sign off on subordinate travel; and
b. City Manager will authorize Department Head travel.
c. City Manager travel shall be in accordance with the City Manager's employment
contract or otherwise approved by the City Council.
2. All travel is subject to the availability of funds for travel.
3. Travel must be authorized one week in advance of travel date; exceptions may be
granted based on circumstances.
4. Travel advances must be requested in sufficient time to follow the attached accounts
payable check processing deadlines and printing dates; exceptions may be granted on
a case -by -case basis.
5. The City will pay for the costs incurred by Travelers, subject to review. Additional costs
associated with companions are the responsibility of Travelers.
6. Department Directors and/or City Manager are responsible for making the determination
that the travel is necessary, and that the benefit for which the travel is requested cannot
be achieved through the Internet, telephone or other means, so as to eliminate the
necessity for travel, while still accomplishing the benefit to the City.
7. All travel is to be authorized in advance of the date of travel by the City Manager and/or
Department Director, and further authorized by the City Manager, as required by this
policy. All approvals shall be in writing.
8. The most economical means of transportation will be used, unless unusual
circumstances require more costly alternatives. City -owned vehicles are to be used,
unless one is not available. Travelers should check with all departments for available
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Resolution No. 60-19
Exhibit B
City vehicles before using their own: Travelers should car pool, whenever possible,
with other Travelers. Non -City employees, riding in City vehicles for personal reasons,
are discussed in Section II C-1 below.
9. If Travelers choose to use their personal vehicles when City vehicles are available, that
use must be approved by the Department Head and/or City Manager (see Travel
Return Expense Report form) and only actual gas costs, with receipts, will be
reimbursed.
10. If City vehicles are not available, and the travel is still deemed necessary, then use of a
private vehicle may be authorized by the City Manager, or his/her designee, (or City
Attorney, if involving the City Manager), and the IRS mileage rate (see www.gsa.gov)
will be paid; proof of miles traveled is required by submitting beginning and ending
odometer readings plus a destination mileage estimate (Internet mapping directions).
Department Directors and/or City Manager, who have assigned vehicles or receive a
car allowance, are discussed in Section II-C4.
11. If the use of a City vehicle is not appropriate, due to a disability or other reason
approved by the City Manager, or his/her designee (or the City Attorney, if involving the
City Manager), and the travel is still deemed necessary, then the use of a private
vehicle may be approved, as stated in 13-10 above.
12. Any discounts should be taken advantage of, as possible.
13. For travel that requires an overnight stay, reimbursement will be for actual, reasonable
and necessary expenses incurred while on City business, as defined below:
a. Travelers will be provided with a daily allowance based on the current Internal
Revenue Service (IRS) guidelines at www.gsa.gov. Daily allowances are based on
travel destination less any meals supplied by the travel destination organization.
b. Detailed receipts are required to substantiate spending; any unused daily
allowance is to be returned to the City.
c. Travelers may use personal credit cards to pay for meals and incidentals, and
request reimbursement by providing those detailed receipts. Travelers should not
use City credit cards except for conference fees, hotel booking, and gasoline.
14. For travel without an overnight stay, no reimbursement is provided for meals per IRS
regulations, unless Travelers attend breakfast, lunch or dinner meetings that are not
otherwise paid for as part of that meeting attendance or provided gratis to attendees;
include the name of the organization/group, participants in the meeting and purpose on
the receipt (e.g., CSMFO, Susan Slayton, monthly lunch meeting). It is the
responsibility of Travelers to pay for any alcoholic beverages consumed, entertainment
expenses and/or any personal automobile expenses, including repairs, traffic citations,
and insurance.
15. The City will not be responsible for any personal losses while Travelers are traveling on
City business.
16.Out-of-state travel (lodging or meeting place) or means of transportation other than
automobile, as identified in Section II-C-5, for any Travelers requires the prior approval
of the City Manager, unless otherwise provided by law.
17. All Travel Return Expense Reports are to be completed within 5 days of travel
completion, and reviewed/approved as follows:.
a. City Manager travel report will be reviewed and approved by the City Attorney;
b. Department Director travel report will be reviewed and approved by the City
Manager;
c. All other travel reports will be reviewed initially by supervisors, and approved by
the Department Director,
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Resolution No. 60-19
Exhibit B
18. If travel receipts are not provided, then Travelers will not be reimbursed for the amount
spent, and will be required to reimburse the City for unsubstantiated charges to a City
credit card.
19.I1 a hotel charges for Internet service, then the charge will be reviewed by the
Department Head and/or City Manager to determine the business -purpose use, which
may be reimbursable.
20. Overnight stays for day training: an overnight stay for the night before and/or the
evening after day training must be requested in advance, and will be considered on a
case -by -case basis.
II. SPECIFIC EXPENSES
A. LODGING
1. Lodging expenses consist of those charges for overnight sleeping or dwelling
accommodations for Travelers only as required while traveling on City business. Any
additional costs associated with travel companions are to be paid for by the Travelers.
2. Lodging is an allowable expense for the evening preceding, and subsequent to, a
meeting or business event with Department Director and/or City Manager approval,
pursuant to I. B. 1., above.
3. Travelers are to request the least expensive rate when making reservations, or
registering, at a hotel/motel.
4. Lodging amounts.
a. Must be pre -approved by the Department Director and/or City Manager, pursuant to
I. B. 1., above, unless emergency circumstances exist, which must then be
submitted to the Department Director and/or City Manager, as applicable, as soon
as possible for approval;
b. Must be supported by a valid hotel/motel receipt that is attached to the Travel
Return Expense Report; and
c. Will be reimbursed at the single occupancy rate only. If Travelers are traveling with
a companion, then Travelers are responsible for the portion of the room rate that is
in excess of the single occupancy rate.
6. Same sex Travelers are encouraged, but not required, to share a room where possible.
B. MEALS
1. Meal expenses shall be those charges for food and non-alcoholic beverages actually
purchased and consumed by Travelers while on official City business.
2. Meal expenses incurred will be reimbursed on an actual cost basis, not to exceed the
amount of daily allowance identified by the current IRS guidelines (see www.gsa.gov).
If the cost of Travelers' daily meals exceeds the IRS daily allowance, then Travelers will
be responsible for reimbursing the City for the difference.
3. Meal daily allowance will be provided based on the current IRS guidelines, and reduced
to allow for any meals provided at the travel destination.
4. Meal daily allowance is not allocated to a specific meal; therefore, the entire amount
may be used for breakfast, lunch or dinner, as Travelers desire, and in accordance with
11. B. 1 definition of meal expenses and 11. B — 3, provision/reduction of meal allowance.
5. Any unspent daily allowance is to be returned to the City along with the Travel Return
Expense Report,
6. A maximum 15% gratuity may be included on meal expenditures; however, the traveler
must not exceed the total meals daily allowance allotment.
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Resolution No. 60-19
Exhibit B
7. Daily meal allowance will be prorated on days traveling to and from the destination as
follows:
Breakfast 20% Lunch 30% Dinner 50%
The allowances are subject to the same conditions contained in II. B. 1. — B. 6,
C. TRANSPORTATION
1. Non -employees, accompanying Travelers for personal reasons (such as
spouses, children, relatives), are not permitted to ride in a City -owned vehicle, unless
exempted through MOU or employment contract. Actual cost of fuel will be reimbursed
with receipts; IRS mileage rate reimbursement does not apply.
2. Use of personal vehicles for City travel requires Department Director and/or City
Manager approval with the exception of Department Directors and City Manager as
discussed below:
a) Department Directors and City Manager, who are paid a car allowance, are to use
their personal vehicles for all travel within the San Luis Obispo County. No
mileage or gasoline reimbursement will be paid for travel within the County.
b) Department Directors and City Manager may choose to use their personal
vehicles for travel outside San Luis Obispo County, and will be paid the IRS
mileage rate. Mileage reimbursement will calculated from the point -of -exit from
San Luis Obispo County to the destination and from the destination to the point -
of -entry into San Luis Obispo County,
4. Department Directors and the City Manager, who are provided with a City vehicle, will
use that vehicle for travel, and be reimbursed for self -paid gasoline expenses only.
Receipts must be provided.
5. Airline, private aircraft, train, and watercraft modes-of4ransportation require City
Manager approval. Expenditures will be reimbursed as substantiated by receipts,
subject to review.
6. Travelers are to avail themselves of existing hotel/motel van, taxi, or local mass transit
services. Taxis and other local transportation may be employed as transportation to
and from the airport, the hotel/motel and conference location. Taxi and other local
transportation may be used for travel to restaurants as associated with the business
purpose for the travel. Receipts must be provided for reimbursement. A maximum of
15% gratuity may be reimbursed.
7. Automobile rentals are to be approved by the Department Director, City Manager or City
Attorney, only if other transportation methods are not available (e.g., hotel/motel van,
taxi or local mass transit services).
a) Regarding use of personal vehicles and rental cars, please see the City's Vehicle
Policy for guidelines and restrictions.
b) If renting a car, Traveler MUST purchase the Loss Damage Waiver, which covers
damage to the rental car. The City's vehicle insurance WILL NOT cover any
damage to a rental car. If Traveler fails to purchase the Loss Damage Waiver,
then Traveler WILL be responsible for any and all costs to repair rental car
damage.
8. Parking fees at the hotel/motel should be charged as part of the hotel/motel bill or will
be reimbursed with a receipt. Conference Center parking fees will be reimbursed with a
receipt. No valet parking will be reimbursed, unless it is the only option for parking.
9. Tolls paid will be reviewed and may be reimbursed.
Resolution No. 60-19
Exhibit B
D. OTHER BUSINESS EXPENSES
1. Business expenses are all expenses as a result of travel other than transportation,
lodging and meals. Receipts must be provided for reimbursement. Exception is de
minimis charges, such as parking meters.
2. Travelers will be reimbursed for actual and necessary business expenses; provided,
that such expenses are directly related to the purpose of travel. Business expenses
shall not include the cost of discretionary items intended for the personal benefit or
pleasure of Travelers, such as magazine/book purchases, movies rentals, etc.
Business expenses normally include, but are not limited to, expenditures for the
following:
a.) Conference registration fees, if not paid with a separate claim;
b.) Telephone or Internet charges for official business - Internet charges will be
reviewed by the Department Director and/or City Manager to determine the
business -purpose use, which may be reimbursable;
c.) If an overnight stay is required, then a personal call may be made from the hotel
to notify the Travelers' families of their safe arrival. Telephone calls should be
limited to no more than five minutes. Subsequent calls are subject to review, and
may not be reimbursed.
d.) Laundry/cleaning services, as a result of Travelers being on travel status for more
than seven consecutive days. Receipts are required
e.) Reasonable gratuities (tips) to baggage handlers, porters and other service
personnel will be reviewed and may be reimbursed. Gratuities for meal service
should be included in the cost of meals claimed and should not exceed fifteen
percent (15%) of the total bill.
III. REIMBURSEMENT CLAIMS, CREDIT CARDS, RESERVATION OR REGISTRATION
AND EXPENSE ADVANCES
A. REIMBURSEMENT CLAIM
1. Claims for reimbursement of authorized travel expenses must be submitted on an
approved City Travel Return Expense Report form.
2. All claims must be turned in for settlement within five days of the Travelers' return.
3. All claims must be signed by the traveling individual and approved by the Department
Director and/or City Manager, as required by this policy.
4. Claims shall include:
a.) Name of Traveler;
b.) Name of conference, training, seminar, etc;
c.) Location of travel;
d.) Dates of travel;
e.) General ledger account number(s) to which travel expenses are to be charged;
f.) Expense identification, such as seminar, meals, airfare, etc.;
g.) Dollar amounts associated to all expenses, including charges on credit card;
h.) Additional information as requested on the Travel Return Expense Report form.
5. Receipts for all expenses are to be attached, including copies of receipts paid for with
the Traveler's personal credit card.
B. CREDIT CARDS
1. Use of the City credit card is not encouraged. Travelers should request a travel
advance.
2. Detailed receipts must be provided.
Page 5
Resolution No. 60-19
Exhibit B
3. Travelers are to pay for expenses that are personal with their own personal credit
cards.
C. RESERVATION/REGISTRATION AND EXPENSE ADVANCE
1. Reservation/Registration
a.) Reservation and registration fees area component of budgeted travel. Funds for
travel are limited; therefore, it is important to remain within the original cost
estimate of the scheduled travel.
b.) Travelers' Department Director(s) and/or City Manager must approve registration
fees for additional courses that were not a part of the original travel request.
Unauthorized registration expenses may not be reimbursed.
c.) Reservation and registration fees should be paid in advance to take advantage of
any discounts (e.g., early registration).
d.) Reservation and registration fees may be paid with either a City credit card or
accounts payable check.
e.) If Travelers are not able to pay in advance, then a credit card may be used to pay
for conference and hotel registration.
f.) Any costs paid for by Travelers as part of the approved travel may be reimbursed,
subject to approval; receipts must be provided to request reimbursement.
2. Expense Advance
a.) For travel with an overnight stay:
1.) Travelers should request a travel advance for meals daily allowance,
classes, hotel stays or other travel -related expenses.
2.) Travelers authorized to use their personal vehicles may request a travel
advance for estimated mileage.
3.) Actual detailed receipts are required to substantiate expenses.
b.) For travel without an overnight stay, Travelers, authorized to use their personal
vehicles, may request a travel advance for mileage.
c.) An expense advance must be requested prior to the scheduled travel so that a
check may be prepared through the normal accounts payable process. Late
requests may not be accommodated. Requests should be made up to 3 weeks in
advance of travel, but must accommodate the attached accounts payable check
process dates.
Resolution No. 60-19
9pv1WE010 �'
COUNCIL POLICY
REIMBURSMENT POLICY
Policy Statement
Exhibit C
The City of Morro Bay (City) is afull-service City, provng essential services to over 10,000 residents
related to public safety, planning, building, public works and recreation. In addition, the City has a vibrant
tourism industry, attracting thousands of visitors annually, all of whom utilize city services in some fashion.
As such, it is prudent for the City to establish sound financial management policies that conform with
generally accepted accounting principles and state regulations. This policy is intended to help guide
reimbursements to staff as well as elected and appointed officials.
Purpose
Per California law effective January 1, 2006, all local officials who receive reimbursement of expenses are
required to receive two hours of ethics training every two years. The training must cover both ethics laws
and ethics principles. The City Clerk provides assistance in identifying a number of options for complying
with this requirement and will also ensure that all Staff, Council and Commission Members are in
compliance.
Authorized Expenses
City funds, equipment, supplies (including letterhead), titles, and staff time must only be used for authorized
City business. The following types of expenses generally constitute authorized expenses, as long as the
other requirements of this policy are met:
• Communicating with representatives of local, regional, state and national government on City
adopted policy positions;
• Attending educational seminars designed to improve officials' skill and information levels;
• Participating in local, regional, state and national organizations whose activities affect the City's
interests;
• Recognizing service to the City (for example, thanking a long-time employee with a retirement gift or
celebration of nominal value and cost);
• Attending City events;
• Attending a charitable event for the San Luis Coastal Unified School District; and
• Travel within the County attending to City business.
As an example, attendance at meetings and events of the following organizations are considered important
in representing the City's interests and hearing, learning about and sharing the far-reaching concerns of the
community:
California Legislature
City/County Association of Governments
League of California Cities
Page 1
Resolution No. 60-19
Exhibit C
For City Council and Appointed Official travel, the following expenses also require prior City Council
approval:
International and out-of-state travel;
Expenses which exceed the annual budget established by the City Council for education and
training.
For staff travel, the following expenses require prior approval from the Department Director or City Manager:
International and out-of-state travel;
Expenses which exceed the annual budget established by the City Council for education and
training.
Examples of expenses that the City will not reimburse include, but are not limited to:
® The non -business extension of any trip;
• Political contributions or events;
• Family expenses, including partner 's expenses when accompanying an official on agency -related
business, as well as children- or pet -related expenses;
® Entertainment expenses, including theater, movies (either in -room or at the theater), sporting events
(including gym, massage and/or golf -related expenses), or other cultural events;
• Non -mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline;
and
• Personal losses incurred while on City business.
Any questions regarding the propriety of a particular type of expense should be resolved by City Manager, in
the case of staff, or the City Council, in the case of elected and appointed official, before the expense is
incurred.
Cost Control
To conserve City resources and keep expenses within community standards for public officials and staff,
expenditures should adhere to the following guidelines.
Transportation
The most economical mode and class of transportation reasonably consistent with scheduling needs must
be used, using the most direct and time -efficient route. In the event that a more expensive transportation
form or route is used, the cost borne by the City will be limited to the cost of the most economical, direct,
efficient and reasonable transportation form.
Automobile mileage is reimbursable at Internal Revenue Service rates presently in effect (see www.irs.gov).
These rates are designed to compensate the driver for gasoline, insurance, maintenance, and other
expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which
are also reimbursable.
Lodaina
Lodging costs will be reimbursed or paid for when travel on official City business reasonably requires an
overnight stay. If such lodging is in connection with a conference, lodging costs should not exceed the group
rate published by the conference sponsor for the meeting in question. For overnight stays in other contexts,
costs will be reimbursed at Internal Revenue Service per diem rates for lodging, which include adjustments
for higher cost locations. (See Publication 1542 at www.irs.gov or www.policyworks.gov/perdiem. The site
Resolution No. 60-19
Exhibit C
also has references to hotels that have government rates at or below Internal Revenue Service per diem
limits.)
Meals
Meal expenses and associated gratuities should be moderate, taking into account community standards and
the prevailing restaurant costs of the area. A helpful source of guidance is Internal Revenue Service per
diem rates for meals and incidental expenses, which include adjustments for higher cost locations (see
Publication 1542 at www.irs.gov or www.policyworks.gov/perdiem),
Parkin
Parking costs will be reimbursed only if no free parking is available within two (2) blocks of an event or if an
official is disabled.
Expense Report Content and Submission Deadline
Expense reports must document that the expense in question met the requirements of the policy. For
example, if the meeting is with a legislator, the local agency official should explain whose meals were
purchased, what issues were discussed, and how those relate to the City 's adopted legislative positions and
priorities.
Officials and staff must submit their expense reports within thirty (30) days of an expense being incurred,
accompanied by receipts documenting each expense. Restaurant receipts, in addition to any credit card
receipts, are also part of the necessary documentation.
Inability to provide such documentation in a timely fashion may result in the expense being borne by the
official or staff
Audits of Expense Reports
All expenses are subject to verification of compliance with this policy.
Compliance with Laws
City officials and staff should keep in mind that some expenditures may be subject to reporting under the
Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under
the Public Records Act and other laws.
Violations of This Policy
Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the
following: 1) loss of reimbursement privileges, 2) a demand for restitution to the City, 3) the City's reporting
the expenses as income to the elected official to state and federal tax authorities, and 5) prosecution for
misuse of public resources.
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Resolution No. 60-19
Exhibit D
H
COUNCIL POLICY
CASH ADVANCE POLICY
Policy Statement
The City of Morro Bay (City) is afull-service City, providing essential services to over 10,000 residents related
to public safety, planning, building, public works and recreation. In addition, the City has a vibrant tourism
industry, attracting thousands of visitors annually, all of whom utilize City services in some fashion. As such, it
is prudent for the City to establish sound financial management policies that conform with generally accepted
accounting principles and state regulations. This policy is intended to help guide cash advancements to staff
and local elected and appointed officials.
Purpose
From time to time, it may be necessary for staff, an elected or appointed official to request a cash advance or
payment directly to the host of an event to cover anticipated expenses while traveling or doing business on
the City's behalf or for the purpose of attending training out of the area when the employee or City official
does not have access to a City Credit Card. Such request for an advance should be submitted to the
Finance Director (and/or his or her designee) in the case of staff or the City Manager, in the case of elected
and appointed officials, at least three (3) days prior to the need for the advance with the following
information:
• The purpose of the expenditure(s);
• The benefits of such expenditures) to the residents of the City;
• The anticipated amount of the expenditure(s) (for example, hotel rates, meal costs, and
transportation expenses); and
• The dates of the expenditure(s).
Any unused advance must be returned to the Finance Department within five (5) days of the employees or
official's return, along with an expense report and receipts documenting how the advance was used in
compliance with this expense policy.
Expense Report Content and Submission Deadline
Expense reports must document that the expense in question met the requirements of the policy. For
example, if the meeting is with a legislator, the local agency official should explain whose meals were
purchased, what issues were discussed, and how those relate to the City 's adopted legislative positions
and priorities.
Expense reports must be submitted within thirty (30) days of an expense being incurred, accompanied by
receipts documenting each expense. Restaurant receipts, in addition to any credit card receipts, are also
part of the necessary documentation. Alcohol purchases of any kind will not be reimbursed.
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Resolution No. 60-19
Exhibit D
Inability to provide such documentation in a timely fashion may result in the expense being borne by the
employee or official.
Audits of Expense Reports
All expenses are subject to verification of compliance with this policy.
Compliance with Laws
Staff and City officials should keep in mind that some expenditures may be subject to reporting under the
Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under
the Public Records Act and other laws.
Violations of This Policy
Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the
following: 1) loss of reimbursement privileges, 2) a demand for restitution to the City, 3) the City's reporting
the expenses as income to the elected official to state and federal tax authorities, and 5) prosecution for
misuse of public resources.
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