Accounts Payable Update for January

Sent to the AFS-Update mailing list on Jan. 28, 2025

Mileage Reimbursement Rate Increases in 2025

The Internal Revenue Service announced an increase of the standard mileage rate to 70 cents per mile for business travel, an increase of three cents. The new rate is effective for expenses incurred on or after Jan. 1, 2025. The mileage rate for move/relocations remains the same at 21 cents per mile.

For more information, visit the Travel Accounting website to view Current and Past Allowable Mileage Rates.

Entertainment – Frequency of Meals & Light Refreshments

Meals and light refreshments that are provided by an employer to its employees on a frequent or routine basis are treated by the IRS as taxable income and therefore are not reimbursable under UC Policy BUS-79. The following guidelines should be followed in providing meals and light refreshments in connection with a business meeting, entertainment event, or employee morale-building activity:

Meals should be limited to no more than once a month or 12 times per year, per group.
Light refreshments should be limited to no more than twice per month, per group.

Meals or light refreshments provided to a group should be counted on an event basis, e.g., a two-day meeting should be counted as one event in determining compliance with these guidelines.

Meals or light refreshments may be provided to non-employee students on a more frequent basis. On-the-job meals provided to employees who are required to be at their workstations during a normal mealtime also may be furnished on a more frequent basis.

For more information, see pages 18 and 19 of the UC Policy BUS-79: Expenditures for Business Meetings, Entertainment, and Other Occasions.

Selecting the Correct KFS Object Code: Meals & Light Refreshments vs. Gift Cards

When preparing an Entertainment Reimbursement (ENT) or Disbursement Voucher (DV) in KFS, employees should be careful to select the correct object code. University of California policy defines a meal as follows:

“A catered or restaurant-provided breakfast, lunch, or dinner at which employees, students, or other individuals are present for the purpose of conducting substantial and bona fide University business. Groceries and beverages purchased for an event may also be charged as meal(s).”

Light refreshments are defined as including:

“Coffee and other beverages, snacks, hors d’oeuvres, pastries, cookies, crackers, chips, fruit, etc.”

Meals and light refreshments (KFS Object Code 7090) do not include gift cards/gift certificates. Instead, gift cards/gift certificates given to employees and/or non-employees are considered gifts (KFS Object Code 8015) that must adhere to the two UC Gift Policies:

Gift reimbursements must document the gift recipients’ first and last names, the total gift amount per individual, and the bona fide University business purpose of each gift. Additionally, the original itemized receipts must be uploaded to the Image Scanning tab of the KFS Entertainment Reimbursement (ENT) or Disbursement Voucher (DV) Reason Code U eDocs.

Payment Requirements for Donations/Sponsorships

Donations or sponsorship payments must be made directly from UCI to the vendor only. This type of payment should never be an out-of-pocket expense. Donations and sponsorship payments may be made on a Disbursement Voucher (DV) using Reason Code Q.

For more information, including requirements for donations or sponsorship payments, please review the DV Payment Reason Codes page – Reason Code Q: Program Sponsorships, Donations.

Travel Expenses for Sanctioned Countries

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury administers economic and trade sanctions against specific countries. The most comprehensive sanctions involve Cuba, Iran, North Korea, Syria, and Ukraine (Crimea, Donetsk, & Luhansk regions). Certain types of international travel, research, and other activities may involve export control regulations depending on the travel destination and the items, software, and/or technical data that are taken.

Before you travel, please contact the Export Control Officer by emailing them at OR-export@exchange.uci.edu and check if your travel expenses can be reimbursed. When preparing a reimbursement, the Export Control Officer’s email approval should be uploaded to scanned images as back up documentation. Post travel expenses to a sanctioned country will also require email approval from the Export Control Officer.

For more information, please visit the Office of Research website and review the International Travel page. If you have questions, please contact UC Irvine’s Export Control Office at OR-export@exchange.uci.edu.

Foreign M&IE Per Diem Payments

Foreign per diem payments are made upon arrival at the foreign destination, and per diem payment ends when departing from the foreign destination.

For example, a business trip from Orange County (SNA) or Los Angeles (LAX) to Paris, day one is flying on the airplane. Upon landing in Paris, the foreign per diem payment begins. When departing Paris the foreign per diem payment ends.
If the traveler purchases a meal at the airport or while on the airplane to/from Paris, the traveler may be reimbursed for actual out of pocket expenses. The foreign per diem payment does not apply.

Foreign travel is reimbursed in accordance with the Federal Maximum Travel Per Diem Allowances for Foreign Areas published by the Department of State.

For more information, please visit the UCI Per Diem Guidelines.

TEM and DV Required Approvals Must be in Route Log

The Route Log of a KFS document is the primary way central accounting tracks approval of Travel and Event Management (TEM) eDocs and Disbursement Vouchers (DVs). Check your route logs to make sure the appropriate approvers are reflected there. Some examples of things to lookout for are below:

TEM eDoc and DV approval from the designated department fiscal officer and accounting reviewers must appear in the Route Log.
Sometimes Additional or Exceptional Approval is required. Make sure the designated exceptional approvers (normally the Deans or Equivalent or Above in Title) for travel and entertainment or additional approvers for entertainment reimbursement eDocs are in the Route Log PRIOR to Accounting Review. For more information, please visit Additional and Exceptional Approvals for Travel, Meetings, and Entertainment.

For DV research payments, the PI’s approval must be in the DV Route Log. Signatures on forms in scanned images will not be sufficient for audit, and post audits.

Important Travel Update: New York City Congestion Fee

As of Jan. 5, New York City has implemented a “congestion fee” of $9 or more during peak hours for all vehicles entering local streets and avenues at or below 60th Street. This fee applies to cars, trucks, taxis, and rideshares, with charges varying based on the size of the vehicle, the day of the week, and the time of day. More information can be found here.

While UC maintains highly competitive contracts with Hertz, National, Enterprise, Dollar, and Thrifty, please note that taxes and fees, including this congestion fee, are not subject to reductions or waivers. We encourage travelers to carefully review all associated costs when renting vehicles. This message is from UC Travel Management Services.

Southwest Airlines A-List Status

Southwest Airlines is offering UC travelers two combinable promotions to earn A-List status for 90-days (with possible extension to 12-months) and earn bonus Rapid Reward points toward a Companion Pass.

A-List Status for 90 Days

Between now and Feb. 15, Southwest is offering a special Corporate Tier Experience to qualify for promotional Rapid Rewards A-List status for 90 days, with an opportunity to extend it for an additional 12 months. Here’s how:

Sign up for Rapid Rewards account (if you don’t already have one)
Fill out the Tier Experience form, enter your Rapid Reward number and official UC email address, then click “Submit”.
- Use Company Name: University of California

How to Extend Your A-List Status for 12 months, beyond the initial 90-days:

Time your enrollment carefully! You have only one opportunity to enroll and qualify. Align your enrollment date with your upcoming travel plans to maximize your chances of meeting the requirements during the 90-day promotional window. For example, if your travel begins in March, consider waiting until closer to the February 15th enrollment deadline to register for the promotion.
Book and complete three round-trip qualifying flights or six one-way qualifying flights during the 90-day promotional period.

Bonus Rapid Reward Points

This offer is exclusive to UC! Earn up to 30,000 Rapid Rewards bonus points when you register, then book through UC's preferred travel agencies or the UC SWABIZ link and fly qualifying flights between Jan. 15 and April 15. Here's how:

Register, book and fly between January 15 and April 15
Qualifying flights MUST be booked via any of UC’s preferred agencies (with an agent or online), including:

- BCD Travel (including AggieExpense)
- UCLA Travel Services
- SWABIZ (Southwest Airlines for Business) link in the ConnexUC travel portal

Rapid Reward bonus points can be earned by booking and flying between Jan. 15 and April 15:

5,000 points for at least two round trip flights (or four one-way trip flights)
15,000 points for three round trip flights (or six one-way trip flights)
30,000 points for four round trip flights (or eight one-way trip flights)

The above Southwest Airlines offers can be combined. Full details are available on the ConnexUC travel portal.

Central Travel Office Annual Travel Survey

The systemwide travel program offers UC travelers across all ten campuses and various medical and research centers access to many value-added benefits, such as priority boarding, preferred seating and other upgrade opportunities. In our efforts to manage ongoing relationships with major airlines, hotels, car rental companies and travel agencies, we would like your help in assessing the program via our Annual Survey, which will close on February 8, 2025.

Survey Link: https://survey.alchemer.com/s3/8040880/Annual-Travel-Survey-2024

In appreciation of your time filling out the survey, the Central Travel Office will hold a drawing for the following items: GRAND PRIZE for TWO (2) winners will be ONE (1) United Airlines voucher toward a ticket anywhere United flies within the U.S.A. Additionally, FIVE (5) winners will receive a Southwest Airlines status upgrade to “A-List”. Only UC email addresses will be eligible for these giveaways. Your ongoing support of the travel program is valued and appreciated. If you have questions, please contact the Central Travel Office, email: uctravel@ucop.edu.

Accounts Payable Remote Business Hours

Monday through Friday from 8 a.m. to 5 p.m.