Expenditures for lodging, meals, transportation and other activities should provide for reasonable comfort and convenience. It should be borne in mind, however, that public funds are being spent and that only a reasonable level of expense is warranted. All expenditures will be closely scrutinized and only those considered to be necessary will be allowed. As circumstances vary considerably in those instances where employees must incur expenses, care by those incurring expenses, and supervision by those approving expense accounts, are the most effective controls over expenditures.
(Res. 2667 § 2, 2010)
The board hereby adopts the employee expense reimbursement policy ("policy") as set forth in Exhibit "A" attached to the ordinance codified in this chapter and incorporated herein by reference. Said policy shall apply to the requirements for reimbursement requests, evidence of payment, and the required forms for reimbursement for district employees. For the purposes of the policy, "employees" shall be defined as including all district employees as well as directors to the extent they have been deemed to be employees through previous board action.
(Res. 2667 § 3, 2010)
The district recognizes the constructive value of professional conferences, seminars, meetings and training and provides travel and expense funds for employees who attend such approved events.
This policy provides the required guidelines that district employees must follow when arranging travel, lodging and other approved expenses. Allowance and reimbursement of reasonable expenses for travel will be made if the outlined policy is followed. The intent is to ensure that payments made by the district are for ordinary and necessary expenses incurred while conducting official district business.
This policy is organized into the following sections:
WMWDC § 2.50.060
Authorization to travel.
WMWDC § 2.50.070
Reimbursement plan.
WMWDC § 2.50.080
Compensation for travel time.
WMWDC § 2.50.090
Method of transportation.
WMWDC § 2.50.100
Lodging.
WMWDC § 2.50.110
Meals and incidental expenses (M&IE).
WMWDC § 2.50.120
Miscellaneous expenses.
WMWDC § 2.50.130
Nonreimbursable expenses.
WMWDC § 2.50.140
Expense report.
(Res. 2667 § 3 (Exh. A), 2010)
This policy applies to all employees traveling on official district business.
(Res. 2667 § 3 (Exh. A), 2010)
The district maintains the following guidelines to ensure sound business practices and proper reporting of travel and other related expenses.
(Res. 2667 § 3 (Exh. A), 2010)
This section outlines areas of travel and the travel authorization process.
A. 
Purpose of Travel. Travel expenses incurred by district employees are allowed only for the purpose of furthering the mission of the district. Expenses incurred in direct connection with the following activities are generally acceptable expenses provided other procedural requirements are met:
1. 
Communicating with representatives of regional, state and national government on district policy positions.
2. 
Serving on professional organizations or governmental committees, boards, or task forces.
3. 
Attending educational seminars, conferences, or organized educational activities designed to improve skill levels or provide information on topics of importance to the district.
4. 
Preparing research for district projects or implementing adopted district policies, goals, or programs.
5. 
Attending meetings or engaging in other business-related activities that are consistent with adopted policies, goals, or programs.
B. 
Travel Regions.
Staff classification
Regions approved for travel
General manager
Anywhere within the United States
Assistant GM, department head
Anywhere within the United States
Staff
Anywhere within California, Arizona, and Nevada
C. 
Obtaining Travel Authorization. All employees must complete the travel and conference authorization form and submit for approval if estimated travel expenses will exceed $100.00.
The following table provides the required signatures for approval:
Estimated travel expense
Approval signatures
Under $500.00
Direct supervisor + department head
$500.00 to $1,500
Direct supervisor + department head + AGM
Above $1,500
Direct supervisor + department head + AGM + GM
Employees may not authorize their own travel. All department heads and assistant general managers must obtain travel authorization from their executive. Authorization for travel must be obtained at least 30 days in advance when possible. Under all circumstances, the travel and conference authorization form must be approved prior to commencing travel.
(Res. 2667 § 3 (Exh. A § 1), 2010)
The district's reimbursement plan is considered to be an "accountable plan" by the IRS. Reimbursement under the accountable plan requires the following:
A. 
The cost involved must be incurred in connection with the rendering of services by the employee for the district.
B. 
The cost must be substantiated or be deemed substantiated (meets IRS substantiation requirements without submitting actual receipts).
C. 
Any amount paid to the employee that is more than the business-related expenses adequately accounted for must be returned within 10 business days. An exception to this rule applies if the expense is deemed substantiated under a per diem arrangement.
The district's reimbursement plan includes a combination of reimbursements based upon receipts and a per diem component approved by the IRS. Travel reimbursements under the accountable plan are not reported on the employee's W-2.
(Res. 2667 § 3 (Exh. A § 2), 2010)
Under California law, all travel time, regardless of when the commute occurred or mode of transportation used, is compensable time, less the normal home-to-work commute. Travel time includes time spent driving to an off-site destination (less the normal work-to-home commute), buying tickets, waiting to board, time in flight, waiting to receive baggage and time commuting to hotel.
Travel time ceases once an employee checks into a hotel when traveling with overnight stay. Thus, the employee is no longer compensated unless actually performing work during that time. Employees are not compensated for time spent taking a break from travel in order to eat, sleep or engage in purely personal pursuits not connected with traveling or making necessary travel connections.
The employee needs to be compensated for all hours worked (e.g., attendance at a conference or travel time) and need not be compensated for breaks for meal periods. Overtime will be required to the extent that hours worked, including travel hours, exceed 40 hours in a workweek or exceed the normally scheduled shift.
(Res. 2667 § 3 (Exh. A § 3), 2010)
Travel must be by the most direct route. Additional expenses incurred from travel by an indirect route for the personal interest of the employee are not authorized expenses and will not be reimbursed by the district. Transportation shall be by the least expensive and/or most reasonable means available.
A. 
Travel by Automobile. Travel within southern California counties (Los Angeles, Orange, Riverside, San Bernardino, San Diego, Imperial, Kern, Santa Barbara, and Ventura) shall be made using district vehicles unless:
• Existence of an emergency.
• Employee receives a vehicle allowance.
• Circumstances do not promote business efficiency.
In order to operate a district vehicle, an employee must possess a valid California driver's license.
1. 
Use of Personal Vehicle. Automobile mileage is reimbursable if an employee is required to use a personal vehicle for travel. Reimbursement for personal auto usage for business will be calculated per the current IRS rate. Mileage is based on the following:
a. 
If an employee drives round-trip from their residence to a meeting or training function, the round-trip mileage the employee would have driven from his/her residence to work must be subtracted from the round-trip mileage to the event. Any excess mileage is reimbursable to the employee at the current IRS rate.
b. 
If an employee drives round-trip from work to a meeting or training function, the round-trip mileage from the district to the event is reimbursable at the current IRS rate.
The district will not be liable for any damage to a personal vehicle or needed service or repair to a personal vehicle occurring during travel.
If an employee is authorized use of a personal vehicle for the convenience of the employee, instead of more economical travel by air, reimbursement shall not exceed the cost of usual airfare.
2. 
Employees Receiving Vehicle Allowance. Employees receiving a vehicle allowance will not receive any additional mileage for travel within the southern California counties.
3. 
Rental Car. Use of rental cars should be pre-approved per the travel and conference authorization form. Rental cars shall be approved only when such rental is necessary due to:
a. 
Geographical location of airport or accommodations in relation to event site.
b. 
When other local group transportation is unavailable.
c. 
When a rental car is the most economical means of accomplishing travel to event site.
When possible, use of airport or hotel shuttle is encouraged. When a rental car is authorized, the employee shall be limited to a compact or mid-sized vehicle. Internet reservations can be made using the district credit card or the employee's personal credit card. Employees will be reimbursed for pre-approved reservations made on their personal credit card after they submit a detailed receipt of the charges. If gasoline is purchased for the rental vehicle, the employee shall keep receipts for reimbursement.
The district is self-insured for vehicle liability, third party physical damage, and provides for workers' compensation coverage. Thus, additional insurance coverage should be waived. When completing the rental agency contract, sign for the district – not as an individual – such as, "Western Municipal Water District by (your name)."
Employees must notify the district's administrative services manager and the employee's supervisor within 24 hours of any event, incident, or accident related to the rental vehicle.
B. 
Air Travel. Air travel is the preferred method of transportation when the travel destination is outside of southern California. When air travel is used, employees should select the most cost-effective airline reservation. Internet reservations should be made using the district credit card.
Changes to flight schedules made during travel are allowable; provided, that they are in the best interest of the district. Flight changes that result in an additional fee must be made in accordance with the district purchasing procedure. Unauthorized flight changes resulting in additional fees will be reimbursed at the discretion of the assistant general manager/CFO.
The district will not reimburse for excess baggage fees if not related to district business. This includes sporting equipment (e.g., golf clubs).
C. 
Public Transportation. Public transportation, such as MetroLink, may be used whenever an employee finds it convenient and such fare is in the district's best economic interest.
(Res. 2667 § 3 (Exh. A § 4), 2010)
Lodging is allowed when approved per the travel and conference authorization form. Employees are expected to stay at a hotel in close proximity to the event site. Lodging costs shall be reserved at the lowest single occupancy rate (including taxes, parking, and modem connection for employees with district-issued notebook computers). If available, employees should take advantage of the special pre-negotiated rate for accommodations during the event. In the case where such pre-negotiated rates are no longer available, employees should seek a comparable rate.
Pre-conference lodging shall be granted for regional sites, e.g., San Diego, San Francisco, Sacramento, if the conference starts at or before 9:00 a.m. Lodging costs will not normally be approved for one-day meetings or programs when the event is within a reasonable commuting distance from the district (60-mile radius).
Internet reservations can be made using the district credit card, the employee's personal credit card, or submitting a check request payable to the hotel. Employees will be reimbursed for pre-approved reservations made on their personal credit card after they submit a detailed receipt of the charges.
A traveler canceling reservations shall do so according to the hotel's policy in order to avoid charges. The district does not reimburse for noncanceled reservations, early departures, or late cancellation charges unless approved by the assistant general manager/CFO.
(Res. 2667 § 3 (Exh. A § 5), 2010)
Length of travel
Reimbursement
Travel with overnight stay
Per diem
Same day travel
Reimbursement with maximum limits
A. 
Travel with Overnight Stay. Employees will receive a daily allowance, or per diem, for meals and incidental expenses (M&IE), not including lodging, related to business travel if the following occurs:
1. 
Travel involves an overnight stay.
2. 
Employee pays out-of-pocket for M&IE.
3. 
District credit card is not used to pay for M&IE.
4. 
Employee does not provide a business meal to others.
M&IE per diem includes, but is not limited to, the cost of meals, beverages, and incidental expenses. Incidental expenses include tips given to restaurant servers, baggage handlers, and other service providers. The per diem limit will be updated at the beginning of each calendar year in accordance with changes to IRS Publication 1542, Per Diem Rate Table 2. The specified rate will depend upon where the traveler will stay overnight.
Using the per diem rate allows for less paperwork for both the employee and the district since receipts are not required, as well as providing adequate resources for meals and incidental expenses while traveling on district business.
5. 
Exception – District Credit Card. The use of district credit cards to purchase meals, beverages, or other incidental expenses does not qualify for per diem reimbursement. The daily allowance applies only if the employee pays for meals and incidental expenses with personal funds which would subsequently be paid back at the per diem rate. District credit cards are a source of district funds, thus, the employee is not entitled to reimbursement.
All purchases made on a district credit card must be substantiated with detailed receipts.
B. 
Same Day Travel. In lieu of the per diem allowance, employees traveling without an overnight stay will be reimbursed for actual costs up to the maximum as follows, with the submittal of original receipts:
Actual reimbursement limit
(inclusive of tax and tip)
Lunch: $20.00
Dinner: $25.00*
*Dinner will be reimbursed if an event ends at 6:00 p.m. or later and a meal is not included within the event program.
If the event includes a meal (e.g., lunch), employees will not be reimbursed for expenses associated with dining elsewhere.
C. 
Business Meals. A business meal attended by other employees or external associates will only be reimbursed if the meal is in connection with a business meeting. Business meal expenses may include the reasonable cost of meals and beverages associated with a business purpose.
An employee on overnight status who provides a business meal to external associates is entitled to actual reimbursement for the cost of the bill regardless of the method of payment.
An employee who provides a business meal must indicate on the employee's expense report the name of the guest(s) and the business reason for the expense.
(Res. 2667 § 3 (Exh. A § 6), 2010)
Miscellaneous expenses, including charges for vehicle parking, tolls, and any other justifiable business expenses may be allowed. A satisfactory explanation of the charges is required for expenditures that are large or unusual. A receipt or other voucher shall accompany the employee reimbursement request.
(Res. 2667 § 3 (Exh. A § 7), 2010)
The cost of alcoholic beverages, laundry/dry cleaning, in-room movies, personal entertainment, and other personal-related expenses are not reimbursable unless previously authorized by the assistant general manager/CFO. Optional tours, banquets, or other activities offered through a conference or seminar but as an additional cost to registration are solely at the discretion of the employee and will be considered as a personal expense unless there is a clear business purpose that is approved in advance by the general manager or his/her designee.
The district will not pay the costs of an employee's spouse, domestic partner or guest who is attending an event with the employee.
(Res. 2667 § 3 (Exh. A § 8), 2010)
Claims for reimbursement must be itemized on the district expense report and submitted to accounts payable within 10 business days following the return from travel. The claim shall include all information required to substantiate a claim on the expense report.
It is within the discretion of the assistant general manager/CFO to authorize a cash advance to employees who do not wish to cover out-of-pocket expenses during business travel.
(Res. 2667 § 3 (Exh. A § 9), 2010)
The board hereby authorizes the general manager, or his/her designee, to interpret and implement the policy. The reimbursement limit, which is modified at the beginning of each calendar year by reference to Internal Revenue Service Publication 1542, is hereby authorized to be modified as provided by Internal Revenue Service Publication 1542, without further action by the board.
(Res. 2667 § 4, 2010)
Nothing in this chapter shall be deemed to revise, supersede, or otherwise impact the provisions of WMWDC § 2.10.040, Director compensation and reimbursement of expenses, Chapter 2.15 WMWDC, Ethics Statement of Policy, and any other requirements for expense reimbursement which may apply to directors. As a result, the provisions of this chapter, the policy, and the policy as an "accountable plan" shall all be deemed to be, and shall be interpreted to be, consistent with WMWDC § 2.10.040, Director compensation and reimbursement of expenses, Chapter 2.15 WMWDC, Ethics Statement of Policy, and any other requirements for expense reimbursement which apply to directors.
(Res. 2667 § 5, 2010)
The board hereby adopts the policy as an "accountable plan" (as defined in Treasury Regulation Section 1.62-2) so that amounts received by employees in accordance with the policy are not treated as taxable compensation to such employees. The policy shall qualify as an "accountable plan" under Treasury Regulations Section 1.62-2(c)(4) ("Treasury Regulations") in accordance with the following general guidelines:
A. 
All reimbursed expenses must have a connection to district business.
B. 
Employees are required to substantiate covered expenses within a reasonable time by providing adequate documentation, including receipts or invoices, describing the expense. However, as applicable, the district may also provide a per diem allowance and mileage reimbursement for meals, incidental expenses and mileage incurred by the applicable employee traveling on behalf of the district, in lieu of documentation. The amount of such an allowance or mileage reimbursement received shall be based upon the federal rates established by the IRS for purposes of complying with the deemed substantiation requirements of the IRS regulations.
C. 
Employees are required to return, within a reasonable time, the portion of any allowance received which exceeds the amount of the actual substantiated expenses.
D. 
District employees shall be reimbursed for travel expenses incurred by them, including expenses for airline ticket, lodging, rental car and other permissible expenses, provided the travel expenses are for the purpose of furthering the mission of the district.
(Res. 2667 § 6, 2010)