2007-054A
e
2007-54
Resolution
Setting Reimbursement Policy for Attendees to the New York State Association
of Towns
At a regular meeting of the Town Board of the Town of Wappinger, Dutchess County,
New York, held at Town Hall, 20 Middlebush Road, Wappingers Falls, New York, on February
12th, 2007.
The meeting was called to order by Joseph Ruggiero, Supervisor, and upon roll being
called, the following were present:
PRESENT: Supervisor
Councilmembers
ABSENT:
Joseph Ruggiero
William H. Beale
Vincent F. Bettina
Joseph P. Paoloni
Maureen McCarthy
The following Resolution was introduced by Councilwoman McCarthy and seconded by
Supervisor Ruggiero.
WHEREAS, the Town Board of the Town of Wappinger authorized various employees
and Board members to attend the New York State Association of Towns, and
WHEREAS, the Town Board of the Town of Wappinger wishes to establish the
following policy regarding reimbursement for meals for the duration of the New York State
Association of Towns:
1) Beginning in 2007, the Town of Wappinger will not provide any prepaid
expenses prior to attendance at the New York State Association of Towns.
2) The Town of Wappinger will reimburse up to Fifty -Five Dollars and 00/100
($55.00) per day per attendee for meals with the appropriate documentation.
Any funds not used totaling Fifty -Five Dollars and 00/100 ($55.00) will not
be refunded to the attendee.
3) Itemized vouchers and corresponding receipts showing actual expenditures
must be submitted for audit after attendance at the New York State
Association of Towns. Individuals will only receive reimbursement for meal
totals on the receipts.
4) The cost of meals for guests may not be submitted for reimbursement.
5) In accordance with the Office of the State Comptroller Financial Guide
opinion 1982-213, reimbursement for alcoholic beverages is not considered an
appropriate municipal expense, and will not be reimbursed.
NOW, THEREFORE, be it resolved as follows:
1) The recitations above set forth are incorporated in this resolution as if fully set
forth and adopted herein.
2) The Town Board of the Town of Wappinger hereby adopts the following meal
reimbursement policy for the New York State Association of Towns:
a. Beginning in 2007, the Town of Wappinger will not provide any
prepaid expenses prior to attendance at the New York State
Association of Towns..
b. The Town of Wappinger will reimburse up to Fifty -Five Dollars and
00/100 ($55.00) per day per attendee for meals with the appropriate
documentation. Any funds not used totaling Fifty -Five Dollars and
00/100 ($55.00) will not be refunded to the attendee.
c. Itemized vouchers and corresponding receipts showing actual
expenditures must be submitted for audit after attendance at the New
York State Association of Towns. Individuals will only receive
reimbursement for meal totals on the receipts.
d. The cost of meals for guests may not be submitted for reimbursement.
e. In accordance with the Office of the State Comptroller Financial Guide
opinion 1982-213, reimbursement for alcoholic beverages is not
considered an appropriate municipal expense, and will not be
reimbursed.
The foregoing was put to a vote which resulted as follows:
JOSEPH RUGGIERO, SUPERVISOR
Voting:
Ave
WILLIAM H. BEALE, COUNCILMAN
Voting:
Aye
VINCENT F. BETTINA, COUNCILMAN
Voting:
Nay
JOSEPH P. PAOLONI, COUNCILMAN
Voting:
Nay
MAUREEN McCARTHY, COUNCILWOMAN
Voting:
Aye
Dated: Wappingers Falls, New York
2/12/2007
The Resolution is hereby duly declared adopted.
Qnrg
YA
e,OHN C. MASTERSON, TOWN CLERK
OFFICE OF THE STATE COMPTROLLER FINANCIAL MANAGEMENT GUIDE
MAJOR MANAGEMENT AREA - EXPENDITURES/EXPENSES
Section - Claims
Issued
Subsection
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Subsection - Reimbursement of Expenses
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What kinds of travel and other reimbursable expenses may be incurred
by officers and employees (hereinafter referred to as "officials") and what
procedures are required before the governing board (hereinafter referred to
as "board") may pay such expenses?
This subsection answers these questions by detailing:
(I) Guidelines;
(II) Reimbursable Expenses; and
(III) Audit of Claims.
PART I - GUIDELINES
Legal Requirements
State law (.e.g., County Law, §203(1); Town Law, §116(1.); Village Law,
§5-524(7); and City charters) authorizes reimbursement of "actual and neces-
sary expenses" incurred by various individuals in the performance of their
duties. Other authorization for reimbursement of training school and con-
ference expenses are found in the General Municipal Law.
General Municipal Law, §72-g generally authorizes reimbursement
(with certain limitations) of actual and necessary expenses in-
curred by volunteer members of a fire department to attend train-
ing schools for firefighters. The chief, subject to any rules
and regulations of the board, must authorize the attendance of
the volunteers. If the training school is outside the county,
the chief's authorization is subject to prior approval by the
board.
General Municipal Law, §77-b generally authorizes reimbursement
of actual and necessary expenses incurred in attending "a conven-
tion, conference or school conducted for the betterment of any
municipality or a convention or conference of firefighters or
firemanic officers if believed to be of benefit to the municipali-
ty." For purposes of this section, a "municipality" is defined
to include fire districts. The individuals entitled to reimburse-
ment under this section are officials, fire chiefs and those
elected to office for which the term of office has not com-
menced. Authorization to attend must be obtained from the board
before the convention. The board may not ratify the attendance
after the fact if prior approval was not obtained (Notes* 1 and
2). Section 77-b also provides for delegation of the power to
authorize the attendance at conferences to certain prescribed
officers under certain circumstances.
* The note(s) shown throughout the text of this chapter refer to Opin-
ions of the State Comptroller and are referenced and listed on page 13.
OFFICE OF THE STATE COMPTROLLER FINANCIAL MANAGEMENT GUIDE
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Section - Claims
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Note that even if the individual hes received all necessary prior
authorization, the individual must still submit vouchers for reimbursement
together with supporting documentation which are subject to audit and ap-
proval by the board.
Actual and Necessary
As a general rule, a particular expense may be considered "actual and
necessary" if: (1) an expenditure was actually made; (2) the item was neces-
sarily incurred for an authorized purpose; and (3) the expense was in an
amount no greater than necessary (Note 3). The determination of whether a
particular expenditure was "actual and necessary" must be made, in the
first instance, by the board, as part of its auditing function, based on
the facts and surrounding circumstances.
The Office of the State Comptroller has issued many advisory opinions
concerning the reimbursement of expenses. These opinions may assist the
board in making its determinations in this regard. However, in accordance
with its power to audit local governments, the Office of the State Comptrol-
ler may comment upon any expenditure which, in its view, was made in viola-
tion of law.
Rules And Regulations
The board should promulgate specific rules and regulations concerning
reimbursement of expenses. The rules and regulations should set forth the
type of expenses which will be reimbursed, the procedures and documentation
necessary to support the reimbursement, and any reasonable dollar or time
limits which the board may wish to set.
Local governments may not arbitrarily limit the amount which can be
expended for the authorized purpose (Note 4). However, the board, after
considering current prices, may set a.pre-determined ceiling for expenses,
such as for meals and lodging (Note 5). The board should also adopt a
procedure for reimbursement of expenses in excess of the ceiling amounts
when properly justified under prescribed circumstances.
to:
For example, the board could establish rules and regulations relating
1) Reasonable maximum reimbursement rates to cover actual lodging
and meal expenses;
OFFICE OF THE STATE COMPTROLLER FINANCIAL MANAGEMENT GUIDE
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Section - Claims
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2) A minimum travel distance from a place of residence which will
entitle an official to claim meals, lodging, or both;
3) Times of departure and return to home which will entitle an offi-
cial to claim meals;
4) A fixed mileage allowance when a personal car is used.
The guiding principle behind any rules and regulations should be that
the expenses are necessary for the performance of the individual's official
duties and that they are reasonable and actual.
PART II - REIMBURSABLE EXPENSES
Transportation
Actual and necessary transportation expenses are generally reimburs-
able. These may include the cost of public transportation such as a bus,
train or, where appropriate, a plane.
If the official uses a private automobile, the board may reimburse the
individual.for the actual cost of operation of the vehicle (Note 6). To be
reimbursed for the actual cost of using a private automobile, the individu-
al must calculate and document the cost of fuel, oil, and other actual
costs necessarily incurred in operating the vehicle while performing offi-
cial duties (Notes 7 and 8). The local government may not supply fuel and
oil directly for an individual's personal car (Notes 9 and 10).
An official may only be paid for the operation of a private vehicle
while it is being used in performance of an official function. When fuel
and other actual and necessary expenses are reimbursed for a private vehi-
cle it is usually very difficult to accurately calculate the amount of gas
consumption and other expenses which are attributable to official, as op-
posed to personal, use. Therefore, in lieu of reimbursement for the actual
cost of operating a vehicle, a board should consider paying a mileage allow-
ance for the use of a private automobile for each mile actually and neces-
sarily traveled. The amount of any such allowance is set by the board
since no particular rate is set by State law. This allowance must be rea-
sonable and must take into account such items as gasoline, oil, insurance
and depreciation (Note 11).
If the official is reimbursed at a mileage allowance in excess of the
Internal Revenue Service (IRS) rate, the total amount paid must be reported
as income on a W-2 Wage and Tax Statement issued to both the individual and
the IRS. For example, the current IRS standard allowance for 1988 is 22.5
OFFICE OF THE STATE COMPTROLLER FINANCIAL MANAGEMENT GUIDE
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Section - Claims u
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cents per mile and let's assume that the board adopted a rate of 23.5 cents
per mile. If an official was reimbursed for traveling 200 miles during
1988, a W-2 for $47.00 must be issued. It is then incumbent upon the offi-
cial to prepare either an Employee Business Expenses (2106) or similar
Federal form to claim the IRS standard allowance (22.5 cents) as a deduc-
tion or else deduct actual expenses including gasoline costs, depreciation.
etc. The IRS should be contacted for information on preparation and filing
of Federal income tax returns.
Actual and necessary parking fees and tolls do not fall into the same
category as normal operating expenses and, thus, are not generally covered
within a mileage allowance. Accordingly, the board may provide reimburse-
ment for the actual and necessary amounts paid for parking fees and tolls
in addition to a mileage allowance (Notes 12 and 13).
Costs incurred in commuting from home to the usual place of work are
private expenses and, therefore, not reimbursable since they are not actual-
ly and necessarily incurred in the performance of official duties (Note
14). This is also the rule for elected officials when traveling to meet-
ings of the board (Notes 15 and 16).
The sole exception to the above is found in Section 203(2)(b) of the
County Law, which provides that the board of supervisors (county legisla-
ture) may authorize payment of a reasonable mileage allowance for the miles
actually and necessarily traveled to official business of the county by any
supervisor (legislator), including travel on official business in going to
board meetings and returning home. Thus, this provision clearly authorizes
reimbursement of a county supervisor (legislator) for travel from home to a
regularly scheduled county legislative session. Section 203(2)(b) encom-
passes meetings with other official agencies or municipal officials held
within the county where attendance at such meetings is authorized' by the
board of supervisors (county legislature). Where the supervisor (legisla-
tor) is attending such a meeting, the supervisor is authorized to be reim-
bursed for travel from home to the site of the meeting.
Board members of other local governments may be reimbursed for travel
expenses incurred in attendance at certain other meetings such as an inter-
governmental meeting at which common problems are discussed (Note 17). In
addition, other actual and necessary travel expenses necessitated by the
performance of official duties, regardless of whether the travel is inside
or outside the local government, including outside the State, may be reim-
bursable (Note 18). However, it should be noted that expenses for side
trips from a conference site for personal purposes are not incurred in the
performance of official duties and, therefore, are not reimbursable.
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Section - Claims
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An official is generally entitled to actual and necessary travel ex-
penses or a mileage allowance when traveling on local government business
from the official station or usual place of work to other locations either
inside or outside of the local government. Of course, where the travel is
incidental to personal travel, such as where the treasurer stops at a bank
on .the way home to deposit moneys received, it is generally not reimburs-
able because it is merely incidental to commuting travel and is not travel
necessarily incurred in the performance of official duties.
Except as discussed above with respect to a mileage allowance, an
official may not be paid a lump -sum travel allowance in lieu of actual and
necessary travel expenses. Such a lump -sum allowance is not authorized and
could include moneys for expenses which were not incurred or not actual and
necessary (Notes 19 and 20).
Meals
Meal expenses may not be reimbursed unless the official is traveling
outside of the regular work area on official business for an extended peri-
od of time or is prevented from taking time off for a meal due to a press-
ing need to complete business at hand. For example, meals would be a prop-
er charge if a business meeting is of an immediate nature and a meeting at
mealtime is essential. In other words, the cost of meals while performing
the usual duties of the office or position within the local government is
generally a personal expense, rather than an actual and necessary expense
incurred in the performance of official duties (Notes 21 and 22).
The cost of meals for any guests may not be paid for except in certain
circumstances If it is determined that a lunch or dinner meeting with
guests will promote a valid local government purpose, such as a business
luncheon with other government officials or community leaders for discus-
sion or negotiation of a matter properly before the board for action, then
the costs of the meals consumed by invitees and officials may be paid for.
The claim for reimbursement should state the names of the guests and the
topics discussed. Of course, the board must carefully assess the appropri-
ateness of any given expenditure of this nature to be sure that it is not
frivolous and there should be a. reasoned determination that the meeting
will promote a valid local government purpose by discussion or, negotiation
of a matter related to the local government. (Note 23).
Expenditures for the purchase of alcoholic beverages may not be consid-
ered a proper or necessary travel or meeting expense of the local govern-
ment. (Note 24).
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MAJOR MANAGEMENT AREA - EXPENDITURES/EXPENSES
Section - Claims
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Lodg in
An official performing official duties may be reimbursed for any neces-
sary lodging expenses incurred during travel outside of the district for
any extended period of time. Just as with meal expenses, the board may set
a dollar ceiling which should be based on the reasonable rate for a single
occupancy room in the community where the official is required to stay
overnight. A reasonable rate in upstate New York may not be a reasonable
rate in New York City.
May an official be reimbursed for any additional cost incurred for
lodging when accompanied by a spouse? The answer is no. The additional
cost of a spouse is not an actual and necessary expense and the local gov-
ernment may not pay for it.
The question then becomes, what portion of the double occupancy rate
may be reimbursed? Is it the single occupancy rate or is it one-half of
the double occupancy rate? The double occupancy rate should be viewed as
the basic single occupancy rate plus a small increment for the additional
party. Since the reason for the presence of the official and the spouse at
the hotel is the performance of the official's duties or to attend an au-
thorized conference, the actual and necessary reimbursable cost is the
usual cost of a single occupancy room (Notes 25 and 26).
Conferences and Training Schools
As noted earlier, General Municipal Law, §77-b(2) authorizes the board
to permit any official, or those elected to office for which the term of
office has not commenced, to attend certain conferences. All actual and
necessary expenses of travel, meals and lodging and all necessary tuition
fees incurred in connection with attendance at a conference shall be docu-
mented and submitted, audited, allowed and paid in the same manner as are
other claims.
In addition to the above, §72-g of the General Municipal Law authoriz-
es reimbursement of volunteer members of a fire department for actual and
necessary expenses to attend a training school.
Since only lodging which is necessarily incurred in connection with
the conference is reimbursable, overnight expenses for days prior or subse-
quent to a conference areeg nerally not reimbursable. However, speakers
or officers of associations are often required to attend a conference a day
or two before the actual starting day and in those instances, the board may
authorize reimbursement for this additional lodging expense.
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Section - Claims
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Registration Fees
Under subdivision (3) of section 77-b of the General Municipal Law, a
board may reimburse an authorized attendee for all actual and necessary
registration fees incurred in connection with attendance at a conference.
Chapter 367, of the Laws of 1988, effective July 29, 1988, amended this
section and eliminated the $100 limitation which previously existed for
reimbursement of registration fees.
Section 72-g of the General Municipal L
ment to reimburse volunteer firefighters for
tion fees in connection with attendance a
However, in this case, the board may only
$10. Any portion of the registration fee
must be paid by the attendee.
aw authorizes the local govern -
actual and necessary registra-
authorized training schools.
reimburse the individual up to
in excess of the dollar limit
NOTE: The cost of books, pamphlets and other instructional
materials would properly be categorized as "tuition" rather
than "registration fees". Therefore, so long as tuition
costs can be segregated from the cost of registration and
can be sufficiently itemized and documented, the $10 limit
on "registration fees" for training schools would not apply
to these costs (Note 27).
Gratuities
Gratuities may be considered an actual and necessary expense of trav-
el, meals and lodging and may be reimbursed by the local government provid-
ed they are reasonable, actual and within any limits established by the
board (Notes 28 and 29).
OFFICE OF THE STATE COMPTROLLER FINANCIAL MANAGEMENT GUIDE
MAJOR MANAGEMENT AREA - EXPENDITURES/EXPENSES
Section - Claims
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Taxes
Since a hotel sales tax need not be paid if a tax exemption certifi-
cate is presented to the hotel or motel, it is not an actual and necessary
expense reimbursable by the local government. However, because it is not
practical for an official to prepare and present a tax exemption certifi-
cate
ertifi-
cate for an individual meal and because it is not common practice for res-
taurants to accept the tax exemption certificate, sales tax imposed on food
by restaurants may be considered an expense incidental to the meal and an
actual and necessary expenditure incurred in connection with travel on
official business. However, in those instances when a group meal is
planned in advance, .the restaurant should be made aware of the fact that a
tax exemption certificate will be presented and that no sales tax should be
charged.
Membership Dues in Associations
A board may pay the membership dues of officials in professional socie-
ties or associations if: (a) it is determined by the board that membership
will benefit the local government and serve a public purpose; (b) there is
a reasonable connection between the duties of the official and the activi-
ties of the organization; and (c) there is an appropriation to pay the dues
and the claims for payment are audited and approved (Note 30). There is no
authority for the local government to pay the dues of volunteer
firefighters (Note 31).
Refreshments
A local government may make reasonable expenditures for light refresh-
ments for the general public at official functions (Notes 32 and 33).
Reasonable expenditures necessarily incurred for refreshments (e.g.
food and nonalcoholic beverages) provided to firefighters at the scene of a
serious fire are also permissible (Note 34).
Court Appearances by Volunteers
In this section "volunteer" shall mean a volunteer fire officer and
firefighter and "court" shall mean court or other tribunal.
Chapter 456 of the Laws of 1988, effective August 1, 1988, added sec-
tion 72-o to the General Municipal Law. Pursuant to this section the chief
officer of the fire department of a municipal corporation or fire district
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MAJOR MANAGEMENT AREA - EXPENDITURES/EXPENSES
Section - Claims
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Subsection
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may authorize reimbursement of certain expenses for a volunteer who appears
before a court. Authorization is subject to the rules and regulations
governing the department.
The following conditions must exist:
° the proceedings must relate to activities arising from the offi-
cial duties of the volunteer;
° the volunteer is not involved in any criminal activity or is the
subject of, or is personally charged with a violation of any
section of law, rule or regulation, being investigated by the
court;
° the volunteer has not been granted immunity by a court in rela-
tion to such proceedings;
° the volunteer has no financial interest in the outcome of such
proceedings;
° the volunteer has been issued a subpoena to appear and give testi-
mony at such proceedings; and
° the "chief officer" has been notified of the volunteer's receipt
of a subpoena.
The board, by resolution, may provide for the payment of all actual
and necessary travel, meals and lodging expenses incurred by a volunteer in
appearing before a court. The board may also provide for reimbursement of
all actual lost wages necessarily incurred up to a maximum of $100 per
day. If a volunteer used a personal car, a mileage allowance may be.
paid. The claim for reimbursement must contain the same documentation
required of other claims and in addition must contain:
° a statement by the volunteer's employer if actual lost wages are
claimed;
° a statement by the "chief officer" that the chief was notified of
the receipt of a subpoena by the volunteer;
° the "chief officer's" authorization; and
° a copy of the subpoena.
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PART III - AUDIT OF CLAIMS
General Requirements
State statutes (see subsection 8.1010 page 1) generally provide that
the board shall audit all claims against the local government (including
those for reimbursement of expenses) and shall, by resolution, order pay-
ment by the treasurer of the amounts allowed. With certain exceptions, not
pertinent here, no claim shall be audited or ordered paid by the board
unless an itemized voucher, in such form as the board shall prescribe,
shall have been presented for audit and allowance. In addition, the board
may provide by resolution that no claims may be presented, audited or paid
unless they be either verified under oath, or, in lieu of such verifica-
tion, certified, to be true and correct in a statement signed by or on
behalf of the claimant. The minutes of the board meeting should reflect
what claims have been audited and whether allowed or disallowed.
The board must be satisfied that the amounts claimed were actually and
necessarily incurred by the claimant in the performance of official duties
or in the authorized attendance at a conference or training school. Each
claim must be in such detail, with appropriate documentation, that the
board can see exactly and precisely what goods were purchased, services
rendered or expenses incurred by the claimant. As a general rule, a claim
must contain enough detail and documentation so that the board is supplied
with sufficient information concerning the nature of the claim to enable it
to determine whether the claim represents a lawful and proper charge (Notes
35 and 36).
The board also should require that all
submitted for payment be evidenced by receipts
sion there may be an absence of a receipt (i.e.
the receipt was lost). In these instances, the
requiring that a signed statement, certified or
substitute document.
Cash Advances
specified items of expense
(Note 37). On a rare occa-
no receipt was obtained or
board may wish to consider
verified, be submitted as a
A cash advance may be made for estimated expenditures for registration
fees, travel, meals, lodging and tuition fees to a person duly authorized
to attend a conference. Itemized vouchers showing actual expenditures
must be submitted for audit after such attendance. Moneys advanced in
excess of such actual expenditures must be refunded to the local govern-
ment. If the official fails to return such excess advance at the time of
submitting the itemized voucher or upon demand after audit, the local gov-
ernment must deduct the unreturned excess advance from any money owed to
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the individual. Itemized actual and necessary expenditures in excess of
the cash advance would be paid after audit (General Municipal Law,
§77-b(6)).
The board should adopt rules
advances. It is recommended that
tion needed to request an advanc(
voucher after incurring the actue
mitting both the request for an
to the proper individual.
Credit Cards
and regulations governing the use of cash
these guidelines include: the documenta-
the procedure for submitting an expense
1 expenditures; and a time frame for sub -
advance and the voucher for reimbursement
A local government may have multi-purpose credit cards issued in the
local government's name for use by officials for reimbursable travel expens-
es incurred in the performance of their duties. The claims submitted by
credit card companies must be paid within a reasonable time to avoid incur-
ring unnecessary service and/or interest charges, and all audit of claims
requirements, including documentation and itemization requirements, must be
complied with (Notes 38 and 39). Further, in light of the potential for
theft, loss and unauthorized use of credit cards, the board must carefully
consider the advisability of permitting credit card use. If permitted,
extreme care must be exercised in monitoring their use. In this regard, it
is desirable that the board prescribe specific terms and conditions under
which credit cards may be used.
Travel Agency Claims
If a local government uses a travel agency, the claim from the agency
should not be audited and allowed unless supporting documentation shows:
I. Who traveled;
2. How they traveled;
3. When they traveled;
4. Where they traveled;
5. Why they traveled;
6. The travel was necessary
and authorized.
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SUMMARY
All actual and necessary or authorized mileage allowance expenses
incurred by officials in the performance of official duties are reimburs-
able; expenses incurred by a spouse are not. The claim for reimbursement
must be submitted to the board on an itemized voucher with all appropriate
supporting documentation. The board must audit all claims and reject any
which it finds to be not actually and necessarily incurred in the perfor-
mance of official duties. Every board should set forth its policy regard-
ing travel expenses, including limits, if any, on the maximum amounts it
will reimburse for meals and lodging.