AP Badge #04: Employee Travel and Expense-AP Badge #4 Recording

Video Transcription

Video Summary

Holly Burlingame introduces WASBO Accounts Payable Badge 4 on employee travel and meals, emphasizing that travel and expense reimbursements are complex and high-risk. Multiple rule sets apply: IRS requirements for non-taxable reimbursements (to prevent disguising wages), federal grant rules (including the need for written travel policies), Washington State constitutional limits on gifting public funds (especially when feeding employees), state RCWs/WACs, district policies/procedures, and collective bargaining agreements.<br /><br />A major focus is internal controls. Because travel claims often bypass purchase orders, accounts payable (AP) becomes the key compliance checkpoint. Strong controls include standardized forms, required employee certification “under penalty of perjury,” itemized original receipts, approvals by supervisors with direct knowledge (and budget authority if different), and never returning an approved claim to the claimant (to avoid post-approval changes). AP should be empowered to question and edit claims; fraud examples highlight the value of AP review. Districts should also make procedures easily accessible and communicate them regularly.<br /><br />For reimbursable purchases, claims must document business purpose, vendor, date, amount, receipts, and correct coding; timely (e.g., monthly/30-day) submission helps budget accuracy. Mileage rules stress the IRS distinction between business travel and commuting (home to primary worksite is not reimbursable as non-taxable). Descriptions must be specific (not just “meeting”), and rates should track IRS updates.<br /><br />Meals are split into: district-purchased meals (must meet “consideration” to avoid gifts of public funds, with special scrutiny under federal grants), non-overnight meal reimbursements (generally taxable unless strict IRS criteria are met), and overnight travel meals (per diem or actual allowed; per diem must follow federal rates and be prorated on travel days). The session also covers lodging rules, pre-approval, limits on extra nights, rental car reasonableness, and cautions against travel advances (or strict settlement rules if used).

Keywords

WASBO Accounts Payable Badge 4

employee travel reimbursements

meal expense reimbursements

IRS accountable plan rules

federal grant travel compliance

Washington State gift of public funds

RCW WAC travel regulations

school district travel policy

accounts payable internal controls

mileage reimbursement vs commuting

per diem and lodging rules