Sponsored Travel Policy - Harvard University Faculty of Arts and by tyndale

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									                                                                                             POLICY TITLE:
              HARVARD UNIVERSITY SPONSORED                                                                   SPONSORED
              FINANCIAL POLICY                                                                               TRAVEL
                                                                                       RESPONSIBLE OFFICE:
                                                                                                             OFFICE FOR
                                                                                                             SPONSORED
                                                                                                             PROGRAMS
                                                                                          EFFECTIVE DATE:
                                                                                                             4/1/06
                                                                                           REVISION DATE:    07/01/08
                                                                                          POLICY NUMBER:




POLICY STATEMENT
All travel expenses charged to federally sponsored projects are governed by the cost principles of OMB
Circular A-21. Therefore, charges must pass the following three tests:

       The cost must be allowable under both the provisions of A-21 AND under the terms of a specific award AND

       The cost must be allocable; that is, the expense can be associated to a project with a high degree of
        accuracy AND

       The cost must be reasonable, that is, the cost reflects what a "prudent person" would pay in a like
        circumstance.

Domestic Air Travel

To comply with federal regulations, Harvard travelers who purchase domestic airfares (excluding Alaska & Hawaii)
using federal funds (fund range 100000-199999) are required to travel on an economy or coach-class ticket, on
US Flag Carriers only Federal Travel Regulations.

International Air Travel

Harvard travelers who use federal funds (fund range100000-199999) to purchase international airfares (defined as
trips taking more than six hours of fly time, including Alaska & Hawaii, but excluding trips to Canada and Mexico
taking under six hours) should follow all the Domestic Air Travel Guidelines noted above, with the follow ing
exceptions:

       international travelers may purchase the lowest cost business-class tickets, and
       must fly on US Flag Carriers when departing from the US and where available while abroad, even
        though less costly foreign flag carriers are available, unless other circumstances described in the Federal
        Awards Travel Reimbursement Exception Form FATREF apply.
       for foreign air travel completed completely outside the US, foreign carriers may be used only when no US
        Flag Carriers provide service in the area of travel or when use of foreign carriers is a matter of
        necessity as defined by the Act.

Harvard Preferred Travel Agencies



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Harvard has developed strategic partnerships with several preferred travel agencies that provide Harvard travelers
with high-quality customized travel services and offer airfares at competitive prices that are often equal to or better
than non-preferred travel agencies. The University strongly recommends but does not require that all Harvard
travelers take advantage of Harvard’s negotiated airfare rates available through Harvard’s preferred travel agencies:
http://vpf-web.harvard.edu/ofs/travel/tra_exp.shtml.




See Procedures Section for reimbursement procedures for domestic and international travel.

Train Travel Using Federal Funds

Harvard travelers using federal funds may also choose train travel when it is an economical and practical alternative
to air travel. Harvard employees will receive a discount on Amtrak for both the high-speed Acela Express Service
and the Regional Metroliner Service; these discounts are only available when tickets are purchased through the
Harvard Travel Center (617-496-8000), or http://www.travel.harvard.edu.

Travel Using Non-Federal Sponsored Funds

While travel charged to non-federal sponsored funds (fund range 200000-299999) will not be held to the standards
established for federally-funded travel, travel expenses charged to non-federal sponsored funds will be assessed for
reasonableness within the allowable class of service and, if deemed reasonable, may be charged in full to the non-
federal sponsored account. "Reasonableness" is assessed on a case-by-case basis by the Travel Office (and OSP
if necessary), but the cost for the airfare purchased should be similar to prices quoted by one of Harvard's preferred
vendors for the same itinerary and class of service. Any expenses deemed to be unreasonable will be returned to
the department and will need to be charged to a non-sponsored account.



REASON FOR POLICY
OMB Circular A-21: Cost Principles for Educational Institutions

All air travel expenses charged to Harvard sponsored federal funds (fund range 100000-199999), whether incurred
by Harvard travelers or non-Harvard visitors, are subject to the federal cost principles detailed in OMB Circular A-
21, Cost Principles for Educational Institutions, section J. 53. c. "Commercial Air Travel". Per A-21:

        Airfare costs in excess of the customary standard commercial airfare (coach or equivalent). or the lowest
commercial discount airfare are unallowable except when such accommodations would: (a) require circuitous routing;
(b) require travel during unreasonable hours; (c) excessively prolong travel; (d) result in additional costs that would
offset the transportation savings; or (e) offer accommodations not reasonably adequate for the traveler's medical
needs. The institution must justify and document these conditions on a case-by-case basis in order for the use of first-
class airfare to be allowable in such cases.

Unless a pattern of avoidance is detected, the Federal Government will generally not question an institution's
determination that customary standard airfare or other discount airfare is unavailable for specific trips if the institution
can demonstrate either of the following: (a) that such airfare was not available in the specific case; or (b) that it is the

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institution's overall practice to make routine use of such airfare.

Fly America Act

          United States law 49 U.S.C. 40118, commonly referred to as the “Fly America Act,” requires use of U.S.
flag air carrier service for all air travel funded by the U.S. Government. In cases where a U.S. flag air carrier does not
provide acceptable service for a particular leg of a trip, foreign air carrier service may be used, but only to or from the
nearest interchange point on a usually traveled route to connect with U.S. flag air carrier service. In these
circumstances, the Federal Travel Regulation sections 301-10.135-138 specify the exception criteria used to
determine the non-availability of a U.S. flag air carrier. Federal Travel Regulations). International air travel on foreign
air carriers sometime could meet the requirements of the Fly America Act when a U.S. flag air carrier has a code
sharing arrangement with a foreign air carrier. Federal regulations have been revised to indicate that the ticket (or
documentation for an electronic ticket) must identify the U.S. Flag air carrier’s two-letter designator code and
flight number, which is located on the right-hand section of the passenger receipt. This indicates that the flier is in a
U.S. Flag carrier seat, regardless of the air carrier that owns the aircraft.

OMB Circular A-133: Audits of States, Local Governments and Non-Profit Organizations

         Expenses charged to federal funds are audited annually under OMB Circular A-133, Audits of States, Local
Governments and Non-Profit Organizations. The A-133 audit includes tests for compliance with the cost principles
in A-21 and for compliance with the grantee's policies, which must adhere to the OMB A-21 guidelines and federal
travel regulations described above. To ensure compliance with federal government regulations, Harvard travelers
must be aware of and comply with the requirements detailed below.
WHO MUST COMPLY

All travelers who are charging their travel costs to sponsored funds must comply with this policy. This may include
faculty, staff, students and non-Harvard visitors.

RESPONSIBILITIES

RELATED POLICIES
Harvard University’s Travel and Entertainment Policy and Reference Manual for all travel-related expenses.
RELATED DOCUMENTS
        OMB Circular A-21, section J. 53. c. "Commercial Air Travel"

        Fly America Act

        OMB Circular A-133
PROCEDURES
        For domestic travel booked via coach or economy ticket on a US Flag Carrier

                 Travel reimbursement forms and receipts are required
                 Airfare will be approved and may be charged in full to a federally sponsored account.
                 If a US Flag Carrier is not used, Federal Awards Travel Reimbursement Exception Form FATREF
                  must be completed, approved and submitted with the reimbursement request.


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        For international travel booked via business class ticket on a US Flag Carrier

               Travel reimbursement forms and receipts are required
               Airfare will be approved and may be charged in full to a federally sponsored account.
               If a US Flag Carrier is not used, the Federal Awards Travel Reimbursement Exception Form FATREF
                must be completed, approved and submitted with the reimbursement request.

        For travel using a non-U.S.-flag air carrier

               Traveler must certify, by completing the Federal Awards Travel Reimbursement Exception Form
                FATREF that no U.S.-flag carriers were available at the time of the trip and that traveling on a foreign
                air carrier was a matter of necessity. Please note that the FATREF includes a list of criteria for
                determining the non-availability of a U.S. flag carrier. Lower cost and personal convenience are
                not acceptable criteria for justifying the non-availability of a U.S. flag carrier.
               Failure to complete and certify the FATREF or to attach other travel documentation that provides
                sufficient evidence of non-availability of a U.S. flag carrier will result in the expense report being
                returned to the department. The airfare will need to be charged to a non-sponsored account.

        Please note that any other airfare costs incurred outside of this policy (e.g., a visitor who flies business
        class rather than coach class on a domestic flight) will also be returned to the department and subsequently
        charged to a non-sponsored account. If the web voucher approver can determine the allowable cost of the
        ticket, that amount may be charged to federal awards with the unallowable portion charged to a non-
        sponsored account.

          Code sharing arrangements

        A code sharing arrangement is when a U.S. certified carrier leases space on a foreign air carrier, and vice
        versa. The determining factor for identifying the use of a U.S. flag air carrier is the air carrier’s designator
        code which precedes the flight number, and is located on the right-hand section of the passenger receipt. If
        the designator code is a foreign air carrier, then it is not a U.S. flag carrier seat (even the foreign carrier has a
        code sharing arrangement with US Carrier). We recommend that code-share flights be avoided whenever
        possible. If you need to fly on a code-share fight, please be certain that it is a U.S. Flag Carrier seat. For a list
        of US Carriers that have code sharing arrangements with foreign air carriers, please see: http://vpf-
        web.harvard.edu/ofs/travel/rei_us.shtml


FORMS

Federal Awards Travel Reimbursement Exception Form (FATREF)
Universal Expense Form

CONTACTS AND SUBJECT MATTER E XPERTS

For further information, please contact the Contract Manager, in the Travel Office at 617-495-9308, or the Sponsored
Programs Officer and Manager, in the Office for Sponsored Programs at 617-432-6281.




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