Grants, reimbursement and tax question

[Mercudenton]

So this is a niche question but...

I have a research grant from an external institution. The money was paid to my institution and I claim back for it for the expenses incurred.

I went to a 3-day conference.

I put in my expense claim on returning.

Several items were denied because I exceeded the institutional meal reimbursement. Nothing excessive -- just the cost of a conference in New York. So, first question...does the institution have the right to apply its internal reimbursement policy when acting as steward of an external grant? I'm pretty sure the grant-making institution would have no problem with this use of the funds, and clearly it is not actually costing the institution's bottom line which presumably is the point of the policy limits.

Second denial was for breakfast that I purchased at my home airport, having taken a 5am flight back from the conference. Institution denied this claim on the basis of the US Supreme Court decision United States v. Correll, 389 U.S. 299 (1967),  which is mentioned in institution's reimbursement policy. The policy seem to take this decision as meaning no expense incurred in home city is reimbursable.  My argument is that I clearly ate breakfast at the airport because I was still traveling as part of my attendance at the conference, and would not have chosen to visit airport for breakfast if I had woken up at home.  If no expense is reimbursable in your home city, then no business meal would ever be able to be reimbursed? Also IRS per diem guidelines seem to state that meal costs on final day of travel are covered at 75%.  any business-related cost in one's home city, it should be reimbursable. In fact the Supreme Court decision seems to me to be about tax-deductible expenses, not reimbursable expenses. https://supreme.justia.com/cases/federal/us/389/299/

In fact I can't actually find any information about what organizations are allowed to reimburse. All IRS information is about deducting reimbursed expenses, and clarifying whether a given reimbursement might be counted as taxable income for the individual. It's just possible that a breakfast in one home city might be reimbursed but counted as taxable income

Anyone have any insight into this?

[mamselle]

Your grant should specify the common use of the US State Department's per diem rates for Meals and Incidental expenses.

If your office is not using this, see if it is not supposed to be doing so and (kindly) point it out. (I did expense reporting and travel estimates for USAID, NHS, and similar grants at one point: things may have changed, but these have always been the standards:

If it's not, you might still suggest that it's the usual expected standard, or even check with your contact at the granting body to confirm. (They want to know if the school is keeping money out that is supposed to be expended as expected....)

1. There are international and domestic tables for most cities in the world. The international ones are at:

   https://aoprals.state.gov/content.asp?content_id=184&menu_id=78

Look up tables by using "All Locations" in the first box, at:

   https://aoprals.state.gov/Web920/per_diem_action.asp?MenuHide=1&CountryCode=0000

2. Domestic rates are flat-figured for most parts of the Continental US (CONUS): use the map to choose your location by state:

   https://www.gsa.gov/travel/plan-book/per-diem-rates

There's a breakdown here:

   https://www.gsa.gov/travel/plan-book/per-diem-rates/mie-breakdown

There are also exceptional areas (NAS) listed here: you have to download the Excel file to see them, use the year your travel occurred):

   https://www.gsa.gov/travel/plan-book/per-diem-rates/per-diem-files

It's a bit squirrley, but the NYC rates are definitely different from the regular CONUS rates in general.

Good luck!

M.

[Hibush]

So, first question...does the institution have the right to apply its internal reimbursement policy when acting as steward of an external grant? I'm pretty sure the grant-making institution would have no problem with this use of the funds, and clearly it is not actually costing the institution's bottom line which presumably is the point of the policy limits.

The bad news is...yes, they sure can.

Are they being dumb about it? Yes.

+1 to M. Using the per diem method simplifies paperwork and avoids squabbles about where you ate breakfast while in travel status.

[hazelshade]

Your grant should specify the common use of the US State Department's per diem rates for Meals and Incidental expenses.

If your office is not using this, see if it is not supposed to be doing so and (kindly) point it out. (I did expense reporting and travel estimates for USAID, NHS, and similar grants at one point: things may have changed, but these have always been the standards:

If it's not, you might still suggest that it's the usual expected standard, or even check with your contact at the granting body to confirm. (They want to know if the school is keeping money out that is supposed to be expended as expected....)

1. There are international and domestic tables for most cities in the world. The international ones are at:

   https://aoprals.state.gov/content.asp?content_id=184&menu_id=78

Look up tables by using "All Locations" in the first box, at:

   https://aoprals.state.gov/Web920/per_diem_action.asp?MenuHide=1&CountryCode=0000

2. Domestic rates are flat-figured for most parts of the Continental US (CONUS): use the map to choose your location by state:

   https://www.gsa.gov/travel/plan-book/per-diem-rates

There's a breakdown here:

   https://www.gsa.gov/travel/plan-book/per-diem-rates/mie-breakdown

There are also exceptional areas (NAS) listed here: you have to download the Excel file to see them, use the year your travel occurred):

   https://www.gsa.gov/travel/plan-book/per-diem-rates/per-diem-files

It's a bit squirrley, but the NYC rates are definitely different from the regular CONUS rates in general.

Good luck!

M.

If this is a federal grant, your institution needs to treat expenses charged to the grant in a manner consistent with how they would treat expenses charged to the institution (i.e., you need to follow your own policies, and in particular you can't be more freehanded with federal money than you are with the institution's own money). So if your institution isn't using per diem rates for institutionally funded travel, you may well not be able to use them on a federal grant.