PRESENTED AND ADOPTED: January 24, 2013

SUBJECT: APPROVAL OF TRAVEL AND MISCELLANEOUS EXPENSE POLICY FOR

BOARD MEMBERS

2013-01

RESOLUTION

OF THE

BOARD OF DIRECTORS

OF THE

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY

WHEREAS, The Board of Directors has been engaged in a comprehensive review of itsgovernance policies; and

WHEREAS, The Board of Directors is of the opinion that a formal policy on travelexpenses and miscellaneous expenses would be appropriate and in keeping with theBoard's goals of transparency, accountability and fiscal prudence; now, therefore be it

RESOLVED, That the Board of Directors adopts the Board of Directors' Official Travel &Expense Reimbursement Policies For Board Members contained in Attachment A to thisResolution; and be it finally

RESOLVED, That this Resolution shall be effective immediately.

Reviewed as to form and legal sufficiency,

Carol B. O'Keeffe

General Counsel

Motioned by Mr. Barnes, seconded by Mr. GiancolaAyes: 8 - Mrs. Hudgins, Mr. Downs, Mr. Downey, Mrs. Hampshire-Cowan, Mr. Dyke, Mr. Bulger, Mr.Giancola and Mr. Barnes

ATTACHMENT A

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BOARD OF DIRECTORS' OFFICIAL TRAVEL & EXPENSE

REIMBURSEMENT POLICIES FOR BOARD MEMBERS

December 2012

PREFACE

The Washington Metropolitan Area Transit Authority (WMATA) Board of Directors(Board Members) Official Travel & Expense Reimbursement Policies (Policy) is intendedas a reference source governing the overall management of Official Travel andMiscellaneous Expense Reimbursements for Board Members. This Policy delineatesWMATA policies governing official travel and reimbursement of expenses by BoardMembers. Official travel is all approved travel performed in the conduct of WMATAbusiness. This Policy also covers non-travel expense reimbursements to BoardMembers.

CHAPTER 1 - POLICY

1-1 Guidance on Official Travel

1-2 Authorization of Travel

1-3 Authorizing Officials

1-4 Funding of Travel Expense

1-5 Lodging and Transportation Reservations

1-6 Exceptions to Policy

CHAPTER 2 - REGISTRATION AND OTHER FEES

2-1 Registration Fees

2-2 Requirement for Cancellation of Travel

CHAPTER 3 - TRANSPORTATION ACCOMMODATIONS

3-1 Local Transportation

3-2 Out-of-Town Transportation

CHAPTER 4 - RENTAL VEHICLES

4-1 Insurance Coverage

CHAPTER 5 - SPECIAL TYPES OF TRAVEL

5-1 APTA, COMTO and UITP Conferences

5-2 Legislative Sessions

5-3 Conferences and Meetings

CHAPTER 6 - INTERNAL REVENUE SERVICE RULES

6-1 Regarding Expense Reimbursements

6-2 Exceptions to the IRS Rules

CHAPTER 7 - EXPENSE REIMBURSEMENTS

7-1 System of Reimbursement

7-2 Conference Meals

CHAPTER 8 - TRAVEL EXPENSE ALLOWANCE AND REIMBURSEMENT

8-1 Lodging (Including taxes and/or gratuities)

8-2 Meals (Including taxes and/or gratuities)

8-3 Mileage Reimbursement for Use of Private Vehicle

8-4 Transportation Expenses Incurred While on Local Travel

8-5 Transportation Expenses Incurred While on Out-of Town Travel

8-6 Emergency Travel

8-7 Miscellaneous Business-Related Expenses

8-8 Travel Home While in Extended Travel Status

8-9 Travel by Family Members or Companions

8-10 Travel Funded by Other Organizations

8-11 International Travel

8-12 Non-Reimbursable Expenses

8-13 Special Circumstances

CHAPTER 9 - REPORTING OF TRAVEL EXPENSES

9-1 Supporting Documentation

9-2 Receipts

9-3 Meals

9-4 Lack of Receipts

CHAPTER 10 - NON-TRAVEL RELATED EXPENSES

CHAPTER 1 - GENERAL PROVISIONS

1-1 Policya. Members of the WMATA Board of Directors have found that transit-related

conferences provide valuable opportunities to learn about new developments andbest practices in the industry and that such experiences bring significant benefitto WMATA. Board Members are encouraged to take advantage of theseopportunities where their schedules permit.

b. As stewards of the public trust, Board Members shall use prudent judgmentregarding all expenses incurred during official travel.

c. The Office of the Board Secretary is responsible for coordinating all official travelfor Board Members and is charged with obtaining the best rates possibleconsistent with business requirements for all aspects of Board Member travel.

1-2 Authorization of Travel

All travel shall be authorized in advance. Travel authorization requests shall besubmitted as soon as possible to ensure that the most cost effective travel can beobtained. The Office of the Board Secretary shall obtain the required approvals fromthe appropriate authorizing official by email or in writing.

1-3 Authorizing OfficialsThe Chair of the Board shall approve all travel by Board Members except for his/herown travel. Travel requests for the Chair shall be approved by a Vice Chair of theBoard.

1-4 Funding of Travel ExpenseRequests for travel must be funded from a proper source and the availability offunds certified by the Office of the Board Secretary.

1-5 Lodging and Transportation Reservationsa. All lodging and transportation reservations, including those for rental vehicles,

shall be arranged by the Office of the Board Secretary through WMATA's travelagency. WMATA does not qualify for GSA airfare pricing.

b. Whenever possible and practical, reservations for lodging shall be made at hotelsoffering government or corporate rates. If the stay is sufficiently long to justify aweekly or monthly rate, efforts should be made to secure such rates. Lodgingreservations shall be made on a single room basis.

1-6 Exceptions to PolicyExceptions to policy may be granted by the Chair of the Board (or a Vice Chair if thetraveler is the Chair) or his/her designee. All such exceptions require writtenjustification and approval.

CHAPTER 2 - REGISTRATION AND OTHER FEES

2-1 Registration FeesThe Office of the Board Secretary shall arrange for the payment of conferenceregistration fees once the travel is approved by the Chair or Vice Chair, asappropriate.

2-2 Requirement for Cancellation of TravelThe Office of the Board Secretary is responsible for contacting WMATA's travelagency and the Travel Branch (ACCT/AP) for all cancellations and shall endeavor tominimize any cancellation fees.

CHAPTER 3 - TRANSPORTATION ACCOMMODATIONS• Travel shall be by the most cost-effective route available taking into consideration

both the schedule and savings available through the use of connecting flights andshall encompass only the days for the business travel.

• Any traveler using an indirect route or staying for additional days shall beresponsible for any extra expense incurred that is attributable to the indirect route oradditional days.

• The cost of travel from an alternate originating city or to an alternate destination cityin excess of the cost for the business travel using the most cost-effective route shallbe the responsibility of the traveler.

3-1 Local TransportationLocal travel is all travel in connection with the conduct of official business within the

WMATA Compact Transit Zone. It is preferred that the Metrobus/Metrorail system orWMATA vehicles be used for local transportation. The use of privately-ownedvehicles or taxis may be authorized only if such transportation is the most practicalmode.

3-2 Out-of-Town Transportationa. Travel by Public Carrier. Travel shall generally be by Coach Class. Business class

travel may be authorized only with prior approval by the Chair of the Board (orVice Chair, as appropriate) and only when significant hardship would beexperienced if coach class travel were used or if Business Class is the onlyavailable travel class. First class travel is not authorized. The traveler mayupgrade accommodations at his/her own expense or including the use of his/herown personal frequent-flyer miles account.• Expenses paid by the traveler for travel by public carrier will be reimbursed at

Coach Class rates. The traveler must account for all tickets issued for

transportation which are not used.

b. Travel by Rental Vehicle. Refer to Chapter 4 of this Policy.

CHAPTER 4 - RENTAL VEHICLESThe rental of a vehicle requires specific authorization from the Chair or Vice Chair, as

appropriate, and shall only be approved when necessitated by business needs andalternative means of transportation are unavailable or inappropriate. If use of thevehicle is of sufficiently long duration to warrant long-term rates, efforts should bemade to secure such rates. Drop-off charges for one-way rentals shall be avoided, ifpossible, by obtaining a vehicle assigned to the destination city.

4-1 Insurance Coveragea. Under the agreements of the GSA Travel Program, rental car rates include full

comprehensive and Collision Damage Waiver (CDW) coverage and liabilitycoverage in the amounts of $100,000 per person, $300,000 per accident, and$25,000 property damage per occurrence; and CDW coverage for the amountoffered in the lessor's rental agreement.

b. Optional Insurance Coverage. Except where due to unusual circumstances thathave been justified and approved in advance, WMATA shall not reimburseexpenses by Board Members for the following car rental insurance coverage:• Insurance coverage that duplicates those listed in Section 4-la, of this Policy,

or those otherwise included in a given leasing company's basic rental carrates;

• Personal Accident Insurance;• Personal Effect Coverage; and• Liability Insurance Supplement.

c. Travelers shall not request nor accept Liability Supplement or Personal AccidentInsurance. WMATA already has the insurance coverage.

d. The use of Frequent Flyer Miles for car rentals is prohibited.

CHAPTER 5 - SPECIAL TYPES OF TRAVEL5-1 APTA, COMTO and UUP Conferences

Participation in meetings and conferences held by APTA, COMTO, or UITP shall beapproved by the Chair or Vice Chair, as appropriate.

5-2 Legislative SessionsExpenses for travel related to legislative sessions shall generally follow the provisionsof this Policy. However, the Chair or Vice Chair, as appropriate, may waive particularprovisions when doing so is in the best interest of WMATA.

5-3 Conferences and MeetingsThe Board encourages attendance at conferences and meetings where the BoardMember can learn about best practices in the industry and other educationalopportunities which benefit WMATA. Expenses for travel related to attendance atconferences or meetings authorized by the Chair (or Vice Chair, as appropriate) orhis/her designee are funded from the appropriate Board Secretary account.

CHAPTER 6 - INTERNAL REVENUE SERVICE RULES6-1 Regarding Expense Reimbursements

The IRS has issued rules that establish specific requirements regarding expense

reimbursements. This Policy is designed to comply with those rules. Except as notedin Section 6.2 of this Policy, the rules require that any non-receipted expensereimbursement be reported as income to the traveler, subject to applicable federal,state, and Social Security (FICA) tax withholdings. IRS Publication 463.

6-2 Exceptions to the IRS RulesExceptions to the IRS rules are as follows:a. Where the traveler substantiates an expense or a claimed reimbursement in

accordance with existing IRS substantiation and documentation rules thatprovide that receipts are not required:• in instances where the traveler can establish that, by the inherent nature of a

given circumstance, the traveler was unable to obtain receipts;• in instances where receipts were lost due to circumstances beyond the

traveler's control;• in instances where receipts are not readily available and the expense is less

than $25.00; or• In instances where the federal per diem amount is used.

In all such instances except the use of the federal per diem amount, thetraveler's reimbursement request must be accompanied by documentationwhich cites the elements (amount, date, time, place, and business purpose)of the expense and provides an explanation for receipt unavailability.

b. Receipts are not required for reimbursement of expenses for mileage for use of apersonal vehicle, parking fees, tolls, or use of local transit systems.

CHAPTER 7 - EXPENSE REIMBURSEMENTS7-1 System of Reimbursement

WMATA policy is based on the federal per diem for Meals and Incidental Expenses(which provides a daily allowance instead of actual expenses for meals, andincidental expenses related to subsistence) along with the actual cost of the lodgingexcept as otherwise provided for in this chapter. The cost standards are determinedby the Federal Government. See www.qsa.gov/perdiem. Board Members are notrequired to obtain receipts for meals or incidental expenses related to subsistencewhen covered completely by the per diem amount for meals and incidentalexpenses. Meals or other expenses shown on the lodging receipt will be treated asmeals & incidental expenses and not part of the lodging reimbursement.

Incidental expenses related to subsistence are:• fees and tips related to meals or lodging;• costs of laundry and cleaning and pressing of clothing;• costs of transportation between places of lodging or business and places where

meals are taken, except when suitable meals cannot be obtained at the traveler'splace of lodging or business; and

• faxing or telephone calls necessary to reserve lodging accommodations.

7-2 Conference Meals

Where a conference or event provides meals as part of the event, those meals arenot eligible for either reimbursement or the receipt of per diem.

CHAPTER 8 - EXPENSE ALLOWANCE AND REIMBURSEMENT8-1 Lodging (including taxes and/or reasonable gratuities)

Traveler will be reimbursed for the actual costs for lodging subject to the exclusionslisted in Section 8-12.

8-2 Meals (including taxes and/or reasonable gratuities)a. Where the traveler is entitled to less than three daily meals, reimbursement shall

be limited to 25 percent of the per diem allowance for breakfast, 25 percent forlunch, and 50 percent for dinner. The limitations are cumulative; therefore, if atraveler is entitled to breakfast and lunch but eats only lunch, reimbursementshall not exceed 50 percent of the daily allowance.

b. Meal expense for one day, out-of-area trips for periods lasting at least 12 hoursshall be 75% of the applicable Meals & Incidental Expenses rate. (Out-of-areatravel of less than 12 hours shall be limited to transportation costs).

c. Meal expense for a period of 24 hours or more (day of departure 75%applicable Meals & Incidental Expenses rate; full day of travel 100% applicableMeals & Incidental Expenses rate; and last day of travel 75% applicable Meals &Incidental Expenses rate.

8-3 Mileage Reimbursement for Use of Private VehicleWhen travel by private vehicle has been authorized in advance, mileagereimbursement will be allowed at the prevailing rate for federal employees. A claimfor mileage that, as determined by the authorizing official, is substantially in excessof twice the round trip miles between Washington, DC and the destination pointmust be justified in writing and approved by the authorizing official. Where severalBoard Members travel together, only a single reimbursement for mileage will bemade.

8-4 Transportation Expenses Incurred While on Local Travela. Reimbursement for transportation while on local travel is restricted to the actual

taxicab fare plus gratuity or at the authorized rate for use of personal vehiclesplus any expenses incurred for parking or tolls, as appropriate.

b. For purposes of calculating reimbursement, the most direct route shall beconsidered as the origin point unless otherwise authorized by the appropriateofficial.

8-5 Transportation Expenses Incurred While on Out-of-Town TravelThe use of established mass transit lines is strongly encouraged. Upon writtenapproval of the authorizing official, the traveler may be reimbursed for the actualcosts of expenses paid by the traveler for commercial transportation, taxi fares,rental cars, parking fees, and tolls.

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8-6 Emergency TravelUpon written approval of the authorizing official prior to the trip, the traveler may bereimbursed for the actual costs for public carrier transportation, lodging, meals andrepresentational expenses incurred as a result of emergency travel.

8-7 Miscellaneous Business-Related ExpensesBoard Members shall be reimbursed (in addition to reimbursements under Chapter 7of this Policy) for the following additional expenses upon the presentation ofreceipts:a. costs of public carrier transportation between home or office and public carrier

terminal, as appropriate;

b. parking fees at terminals provided that the fees plus allowable mileage to andfrom the terminal do not exceed the cost of using a taxicab;

c. required business telephone calls;

d. cost of travelers checks;

e. reasonable laundry in instances where the traveler has been on official travelstatus for more than four consecutive days;

f. costs of public carrier transportation between out-of-town place of lodging andplace of business when it is necessary for the traveler to stay farther thanreasonable walking distance from the place of business;

g. gasoline expense for rental cars or for WMATA vehicles where out-of-town usehas been authorized;

h. checked baggage fees; and

i. internet (business related).

8-8 Travel Home While in Extended Travel Status

One round trip to the traveler's home shall be allowed during periods of domestictravel which exceed 10 workdays. In unusual circumstances, as determined by theauthorizing official, the authorizing official may authorize the traveler to make morethan one round trip home.

8-9 Travel by Family Members or CompanionsWMATA will reimburse the traveler for those costs which would have normallyincurred had the traveler traveled alone and will not reimburse expenses for personstraveling with the traveler unless required under the Americans With Disabilities Act.

8-10 Travel Funded by Other OrganizationsWhen any portion of official travel is being reimbursed by any other organization, thetraveler shall submit a claim for the total actual expenses and deduct from the travelvoucher any amount reimbursed by the sponsoring organization.

8-11 International Travel

Reimbursement for international travel shall be on an actual expense basis. Allmonies claimed must be shown in U.S. dollars using the conversion rate actually paidby the traveler. For example: if a hotel bill is paid in foreign currency, the conversionrate should be the rate paid by the traveler to secure the funds (at bank, airport,U.S. Embassy, etc.) and not at the conversion rate available at the hotel. If paid bycredit card, the conversion rate would be that charged by the credit card company atthe time of the billing. Miscellaneous costs necessarily incurred as a result of foreigntravel are reimbursable.

8-12 Non-Reimbursable ExpensesThe following is an illustrative, but not exclusive, list of expenses which are noteligible for reimbursement:a. nonessential items such as liquor, gifts or amusements;

b. car rentals not authorized in advance;

c. expenses for other persons unless allowed under section 8.9 or Chapter 10 ofthis Policy;

d. transportation to and from the traveler's home after reaching the temporary dutystation during the period of official travel; except as provided by Section 8-8 ofthis Policy;

e. personal telephone calls, except for one daily telephone call of reasonable lengthto the traveler's residence (10 minutes or less is the suggested length of callthroughout the public sector);

f. data or computer-connected calls and fees that are not directly related to andrequired by job function;

g. travel life insurance premiums;

h. hotel room service; and

i. in-room entertainment such as pay-per-view movies, etc.

8-13 Special CircumstancesIt is recognized that under certain circumstances a rigid policy prohibitingreimbursement of certain types of travel expenses may work a hardship on travelers.Therefore, the following exceptions to normal policy may be granted by theauthorizing official, under the circumstances stated, when fully documented. When

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the special circumstance is verified, the actual meal or lodging costs may bereimbursed when the expense is a result of peak season rates, non-availability ofcompetitively priced lodging due to the location of the specific function or event,remote geographical locations or legislative sessions, and where, in accordance withthe applicable receipt documentation requirements of this Policy, the traveler candemonstrate that financial loss resulted from official travel and that no reasonable

alternative was available.

NOTE: Tips and gratuities are voluntary and subject to review prior toreimbursement. WMATA may not reimburse travelers for tips andgratuities deemed unreasonable or excessive.

CHAPTER 9 - REPORTING OF TRAVEL EXPENSESSee Chapter 6 of this Policy for information on Internal Revenue Service rules thatestablish specific requirements regarding expense reporting and reimbursement. Alldocumentation shall be submitted to the Office of the Board Secretary.

9-1 Supporting DocumentationAll required supporting documentation, including a copy of the travel ticket, mustaccompany the travel voucher.

9-2 ReceiptsExcept as provided by Section 6-2 a., 6-2 b., or 7-1 of this Policy, travelers shallsubmit all original receipts for all expenses for reimbursements.

9-3 Meals

Refer to Chapter 8-2.

9-4 Lack of ReceiptsThe lack of required receipts shall be handled in accordance with Section 6-2 a. ofthis Policy.

CHAPTER 10 - NON-TRAVEL RELATED EXPENSES• It is understood that Board Members may have to incur expenses in the furtherance

of their duties as Board Members. WMATA shall reimburse those actual expenseswhich are both reasonable and in furtherance of WMATA's interests. However, it isexpected that Board Members will use WMATA assets and equipment as much aspossible and take all steps possible to minimize the expenditure of WMATA funds.

• To the greatest extent possible, Board Members engaging in representationalactivities, such as entertaining visiting Board Members from other transit properties,must obtain approval from the Chair or Vice Chair, as appropriate. If prior approvalis not obtained, approval shall be obtained before filing for reimbursement ofexpenses. Reimbursement for representational expenses shall not be made for thefollowing:• Persons with whom WMATA normally transacts business• Individuals or representatives of firms with which WMATA has a contractual

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relationship• Prospective contractors• For any item which is not reimbursable under this Policy if incurred by a Board

Member for himself/herself.

Unless exempted under Section 6-2 of this Policy, the original receipts for allexpenses shall be required in order for a reimbursement to be made. The receiptrequirement for items under this Chapter may be waived in writing by the Chair orVice Chair, as appropriate, if it is in the interests of WMATA and for good causeshown.

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