03.A.03 – Business Travel

1.6. Internal Revenue Service rules and regulations have specific requirements to determine if travel payments are considered to be part of an "accountable plan" and therefore non-taxable to the employee traveler. See US Treasury Regulations, Subchapter A, Sections 1.162-2, 1.212-1, and 1.274-4, which are summarized in IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses. All System and university travel guidelines must be in compliance with accountable plan rules.

2. GENERAL GUIDELINES

2.1. Travel must be for official System business. An individual of higher authority than the employee who submits the request to travel must approve all travel requests. The Chancellor, or designee, will approve business travel for the university presidents.

2.2. The System requires that its employees participate in the STMP and use the state contracts mandated by the Texas Comptroller of Public Account (CPA) for travel services when paying for these services with state-appropriated funds. Required contracts include rental car companies, airlines, and hotels. Any exception must be approved and on file with the applicable travel document for reimbursement.

2.3. To assure insurance coverage, a travel request for any employee overnight business travel, including foreign travel, regardless of source of funding or whether reimbursement will be sought, must be completed and filed according to the appropriate university's guidelines.

2.4. The Chancellor, by letter on file in the Board of Regents office, may delegate the authority to approve travel reimbursements to their designee, vice chancellors, presidents, the Chief Audit Executive, and their designees.

2.5. Each university has been delegated the responsibility for approval of travel documents along with the responsibility for providing more detailed guidelines for travel reimbursements and payments. The guidelines include descriptions of authorized travel expenditures, restrictions, and specific procedures for processing travel reimbursements and payments. Travel reimbursements and payments shall be consistent with all federal, state and System governing regulations pertaining to travel.

2.6. Each university's chief executive officer will designate an appropriate office to disseminate guidelines to be followed by all divisions of the university. Within such guidelines will be specific provisions for approval of travel, travel expense reimbursement, and other matters related to employee travel; and will include provisions for approval by the employee's supervisor or higher authority. University presidents' travel expenditures, as well as all non-travel expenditures, must be reviewed and approved by the Chancellor or designee. Chancellor meals and lodging paid with local funds will be paid or reimbursed based on actual expenses that are supported by receipts.

2.7. All airfare for System employees and prospective employees must be purchased at the lowest price available (i.e., coach class as well as fees for carry-on bags and luggage). No-cost upgrades to business class or first class airfare are acceptable, as long as the airfare receipt provided by the airline or travel agency clearly indicates that there is no additional cost for the upgrade. However, due to the extensive travel schedule and the additional responsibilities incurred for this travel, the Chancellor is authorized to upgrade airfare paid with local funds to business class or first class.

3. FOREIGN TRAVEL

3.1. Foreign travel is defined as travel by System employees or prospective employees to/from all countries outside the United States, Canada, Mexico, and U.S. possessions. The UH System Board of Regents delegated authority to approve foreign travel to the Chancellor, and the Chancellor delegated this authority to the university presidents.

3.2. Requests for foreign travel for System employees or prospective employees that will be paid from state-appropriated funds require the approval of the university president or designee. Requests for foreign travel for System employees or prospective employees that will be paid from local funds (i.e., not state-appropriated) require the approval of the responsible university vice president or designee. Each university is responsible for providing guidelines for more detailed procedures.

3.3. The Fly America Act requires that foreign air travel funded by Federal funds, including Federal pass-through funds, be conducted on U.S flag air carriers. There are limited exceptions where the use of a foreign-flag air carrier is permissible.

4. EXPORT CONTROLS AND EMBARGO RESTRICTIONS

4.1. All travel by System employees to destinations outside the United States are subject to the Department of Commerce's Export Administration Regulations (EAR) and the Department of State's International Travel in Arms Regulations (ITAR), which are known as export controls, regardless of the type of funds used to pay for the travel. Export controls prohibit the transport or transfer of certain equipment, materials, software, and technical data to foreign countries, governments, businesses, organizations, or individuals. In addition, the Department of the Treasury's Office of Foreign Assets Control may restrict travel to embargoed countries even when export controls do not apply.

4.2. Each university will develop procedures to ensure that export controls and restrictions on travel to embargoed countries are followed by its employees.