An Investigation of Travel Reimbursements in Connection with the INS’s Operation Safeguard
December 2002
Office of the Inspector General
EXHIBIT 10
MEMORANDUM | September 1, 1998 |
TO: | Heads of Department Components |
FROM: | /s/
Stephen R. Colgate Assistant Attorney General for Administration |
SUBJECT: | Revised Policy Guidelines for Authorizing and Administering Extended Travel Assignments |
Attached are policy guidelines for authorizing and administering extended travel assignments. Since my issuance of guidance on March 3, 1997, the Taxpayer Relief Act of 1997 was enacted, rendering as non-taxable, extended travel assignments of the Department's investigators, prosecutors, and support personnel. Extended assignments for other program or administrative purposes may still be taxable under the Internal Revenue Code. The attached guidelines address the issue of taxability of such assignments.
These guidelines were developed to assist components in interpreting and implementing the federal and Department of Justice Travel Regulations, and to achieve greater consistency within the Department in managing extended travel assignments.
If you have any questions concerning these policies, please call James E. Williams, Director, Finance Staff, on (202) 616-5800.
Attachments
POLICY GUIDELINES FOR EXTENDED TRAVEL ASSIGNMENTS
September 1, 1998
Law and Regulations
The current statutory and regulatory requirements are as follows:
Policy Guidelines
The following are the policy guidelines of the Department which apply to all components. In each instance of extended travel assignments in excess of 90 days, a Memorandum of Understanding (MOU) must be executed between the employee, the official authorizing the assignment, and an official at the temporary duty site in accordance with item #6 below.
For an assignment that will last more than 90 days, per diem must be so reduce. Normally, per diem will be reduced well below the 75 percent level. Absent extenuating circumstances, the 75 percent level is the ceiling. There is no minimum entitlement. The actual amount authorized should approximate the employee's actual expenses. At the discretion of the authorizing officer, full per diem may be allowed for the first 30 days of an assignment that will last more than 90 days, to afford the detailed employee the opportunity to obtain lower cost lodging and meals.
Exceptions authorizing in excess of 75 percent of the maximum per diem must be approved by the Component Head or the Component Head's Principal Deputy, or other official delegated such authority by either the Component Head or his or her Principal Deputy.
As an example, consider a detail to Washington, DC. The per diem for Washington, DC is $124 per night for lodging plus $38 per day for M&IE. The maximum allowable for 30 days is $4,860. Seventy-five percent of that amount is $3,645, consisting of $2,790 for lodging plus $855 for M&IE. The $3,645 establishes a ceiling.
Maximum | 75 | |||
Lodging | $124 X 30 = $3,720 | $2,790 | ||
M&IE | 8 X 30 = 1,140 | 855 | ||
Total | $4,860 | $3,645 |
Often, when lodging is secured on a monthly basis, the cost will be lower than 75 percent of the lodging allowance times 30 nights. For example, if an employee on an extended assignment in Washington obtains lodging for $1,700 per month, a total per diem of $2,555--53 percent of the maximum allowance--would be appropriate for a flat monthly rate. The actual rate to be allowed must be determined in each case, based on the expenses the detailed employee is anticipated to incur.
Other Expenses Considered. If the employee were to demonstrate the necessity to incur additional reasonable costs to maintain dual residences while on temporary duty, those additional costs may be considered in setting the lodging allowance. In this example, if an employee were to demonstrate an additional $100 in reasonable costs that are directly related to the temporary duty assignment, then the total allowance could be set at $2,655 as a flat monthly rate. That amount, approximately 55 percent of the maximum, would consist of the actual cost of lodging plus $100 for the additional costs relating to the primary residence and 7S percent of the M&IE allowance.
A specific case-by-case cost analysis is not required to conclude that the costs of periodic weekend return travel (including the costs of potential overtime, if applicable) are outweighed by the savings in terms of per diem, increased employee efficiency and productivity, as well as reduced costs of recruitment and retention of employees.
Even though the term of the assignment may be difficult to determine at the beginning, the MOU must state an expectation of the term of the assignment.
The taxable payments/reimbursements are subject to federal, state, and local income tax withholding, FICA withholding (as appropriate), and Medicare withholding.
To reduce the number of instances in which it is necessary to tax employees for their travel reimbursements, the Department's policy is that per diem payments will not extend beyond one year, unless approved by the Component Head or his or her Principal Deputy or other official delegated such authority by either the Component Head or his or her Principal Deputy.