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Illinois School Board Journal - ARCHIVES
November-December, 2005
ASK THE STAFF:
Conference expenses need documentation
This issue's question is compiled from information supplied by a number of IASB staff members, sample policies and prior publications.
Question: Some of our new board members are asking what's proper for handling out-of-pocket expenses when they attend the Joint Annual Conference later this month in Chicago. Could you give us some policy guidelines?
Answer: The Illinois School Code provides that school boards may authorize cash advances to members and/or reimburse them for attendance at certain specified types of meetings, including the Joint Annual Conference. (School Code Section 10-22.32)
Whether through a cash advance or reimbursement, the board member is responsible for submitting an itemized travel voucher, along with receipts where possible, showing the amount of "actual and necessary" expenses. If cash is advanced, the board member must return any excess to the district.
Districts usually secure hotel rooms for their entire delegation, with lodging paid directly by the district. However, while a meal charged to the room would usually qualify as a "reasonable" expense, board members — not the district — should be responsible for incidentals charged to the room, such as movies and mini-bar purchases.
Likewise, while an alcoholic beverage taken with a meal might be treated as a part of the meal cost, a bar bill normally would not be viewed as "reasonable and necessary."
Some districts specify a maximum amount per day that board members are allowed for meals. However, even if the board member spends less than the district maximum, the reimbursement can only be for the actual expenditures.
If board members take a spouse or other family members to the conference, any meal expense or room charges they incur should not be at district expense.
Transportation follows similar guidelines as meals. Board members can be reimbursed for use of their own cars at the rate authorized by the district (normally based on the rate approved by the Internal Revenue Service). In addition, board members can be reimbursed for parking fees and tolls they incur.
Board members also can be reimbursed for their "actual and necessary" outlays for taxis, airport limousines and other local transportation, such as city buses or train systems (elevated or subway).
However, if more than one board member travels to the meeting in the same auto or takes the same cab to dinner, only the board member actually driving or paying for the cab should submit the mileage or fare for reimbursement.
Districts should have a form that board members can use to submit their itemized expenses for reimbursement and reports of cash advances. All receipts should be secured to the form and items highlighted if the receipt shows payment for expenses incurred that would not be reimbursable, like a spouse's dinner.
If more than one board member's expenses are reflected by a bill, then the board member who paid should list everyone who was included in the bill. This will allow the bookkeeper to determine if more than one person is submitting a receipt for the same meal.
Requiring receipts for payment is the best assurance boards have for making certain that district money is spent for legitimate, not frivolous, expenses while at conference.
Recognizing that some receipts may be hard to obtain — like tipping the bellman or valet — the district should set a threshold above which a receipt for such services is required. Then the district can accept or reject reimbursements based using a "usual and customary" basis. A $5 tip to the bellman in a Chicago hotel probably is not out of line. But unless extremely heavy boxes are involved, a $50 tip is probably not appropriate. Board members can record such expenses as they are incurred and present an itemized list for reimbursement.
For additional information on how much is "usual and customary" for conference attendance, please see "Typical costs can help boards budget" in the July/August 2003 issue of The Illinois School Board Journal, available at http://iasb.com/files/askstaff_ja03.htm.