EXAMPLE EMPLOYEE EXPENSE POLICY
TOWN OF DERRY
Effective Date: July 10, 2008
Set forth the policy and procedures for requesting reimbursement or prepayment of
expenses for travel and/or attendance at events and/or reimbursement of miscellaneous
expenses related to one's official duties as an employee of the Town of Derry.
This Regulation does not address travel in Town vehicles performed in the normal course
of business, nor training programs purchased and delivered to employees at a Town of
Derry work site.
All travel and expenses must be official in nature. All expenditures for seminars, meetings,
dues, miscellaneous expenses, etc. must be related to the performance of the employee's
assigned or anticipated duties. Funds must be available in the adopted budget.
Employees must obtain approval prior to committing funds in accordance with the
1. Department Head -All reimbursable expenses.
2. Town Administrator -All over-night travel; any conference/training fee above
$1000; and all Department Head reimbursable expenses.
Occasionally, emergencies (e.g. police investigations) or incidental expenditures (e.g.
local mileage) may warrant reimbursement of expenses without prior approval.
B. Reimbursement of Expenses
Application for expense reimbursement for travel, training and meetings must be made
on a copy of the Expense Reimbursement Form (Form) that was initially approved by
the Department Head and, when applicable, by the Town Administrator.
Reimbursement for other expenses should also be submitted using the Form and
detailing the expenditure in the “Other expenses” section. The expense should be
coded to the appropriate Org and Object. Reimbursement is only for actual expenses
incurred; receipts must be furnished for all claims except mileage and automated tolls.
1. Registration Fees -Pre-approved program registration fees may be paid by personal
or Town funds. If registration fees are paid by personal funds, submit a receipt and
supporting documentation with the approved Form. If prepayment with Town
funds is required for registration (or transportation or lodging), submit support
documents with the Form two weeks in advance of requiring a check. If the check
is not to be mailed to the Payee, indicate so in the Address field of the Pre-Paid
Items box on the Form.
2. Lodging – Reimbursement is made for the actual lodging expense incurred, not to
include in-room entertainment or other ancillary expenses added to the lodging
3. Sharing a room - If two or more employees share a room, one employee shall pay
the lodging expenses. If more than one department is represented, and if notified by
appropriate Department Heads, Finance will allocate the charges accordingly.
4. Meals -The Town does not reimburse employees for the purchase of alcoholic
beverages. Reimbursement will be made for actual cost of meals consumed while
traveling, including appropriate gratuities. Costs should not exceed the daily
Government Services Administration per diem schedules (www.gsa.gov) which
identify varying rates for different locations in the United States. Actual expenses
exceeding per diem rates may be approved on occasion. Refer to the exception
guidelines within U.S. Federal Travel Regulation Part 301-11 as necessary.
5. Airline Travel -Travel via airplane shall be made at the lowest reasonable fare.
Receipts must be included with the Expense Reimbursement Form.
6. Rental Car and Rental Car Insurance - Reimbursement for mid-sized (larger if
warranted) rental car expenses will be made as necessary. The Town's insurance
includes liability and collision coverage for rental vehicles. Rent the vehicle in the
name of the "Town of Derry" with you as the driver. Rental company insurance
will not be reimbursed.
7. Mileage - When necessary, reimbursement for personal vehicle mileage will be paid
in accordance with the current IRS standard mileage guidelines (www.irs.gov).
8. Highway Tolls - All tolls incurred during travel must be listed separately in the
other expenses area.
9. Other Expenses - Reasonable business expenses not identified above, including
public ground transportation, parking, telephone charges and gratuities, and all
other legitimate business expenses when incurred in connection with Town business
are reimbursable. The Town will not reimburse for parking or traffic tickets, fines,
C. Expense Reimbursement Process
Employee submits Expense Reimbursement form to Department Head and/or Town
Administrator for pre-approval. When costs need to be prepaid, the Department Head
(or Town Administrator) sends the original approved Form (providing a copy to the
employee) to the originating department’s accounts payable person for entry into the
MUNIS system. The prepayment request should then be submitted to the Finance
Department (Accounts Payable) to be processed.
After the travel/training/meeting has been completed, the employee submits the
completed Form with necessary receipts to their Department Head. Note: If more than
one source of funding is used (e.g. grants), all budget activity center accounts must be
indicated on the Expense Reimbursement form.
Department Heads shall review all reimbursement claims for accuracy and approve
prior to final submission to the Finance Department (Payroll). The Finance Department
will make reimbursement payments in the weekly paycheck on a non-taxable basis.
E. Training Documentation
It shall be the responsibility of the employee to furnish training and/or certification
documentation to his/her Department Head. Copies shall be forwarded to the Human
Resources Department and retained in the employee's personnel file.
DISCLAIMER: All example policies are for illustrative purposes only. None of these example policies have been reviewed by LGC legal staff for
enforceability or compliance with applicable laws. LGC makes no express or implied endorsement or recommendation of any example policy,
nor does it make any express or implied guarantee of the legal enforceability, legal compliance, or quality of any particular policy. Likewise, we
do not represent that any particular policy or portion of a policy is appropriate for any particular municipality. Legal counsel should review any
proposed financial policy before a municipality adopts it.