Which Expenses are Reimbursable?

Posted November 2000

With the new fiscal year in full swing, we thought it might be useful to write a refresher concerning the general costs that are allowed and not allowed for reimbursement by the State of North Dakota.

Allowable costs are unique to each contract scope and budget proposal. Generally, the item must be related specifically to traffic safety or the proposed traffic safety project.

Travel costs related to the project and commodities under direct costs are usually allowable. If you have any questions, call DLN Consulting, Inc. for clarification. Any out-of-state travel that has not already been approved (included in the proposal and contract) MUST be approved before any expenses are incurred. As stated in your contract, the ONLY advance expense that is EVER allowed is the cost of airline tickets for out-of-state travel.

Travel

A. Mileage is reimbursed at the state rate, currently $0.25 per mile.

B. Meals are reimbursed at the current state rate. Receipts for meals are not necessary. For the purpose of computing expenses, each travel day is divided into four quarters. Travel must begin at least one hour before the start of the quarter being claimed, and must extend at least one hour into the quarter being claimed. The first three quarters relate to meals:

~1st quarter...6AM to 12 Noon... Breakfast...$ 4.00

~2nd quarter...12 Noon to 6PM... Lunch...$ 6.00

~3rd quarter...6PM to 12 Midnight... Dinner...$10.00

Lodging is reimbursed at the state rate, which is not to exceed $42.00 per night, plus applicable taxes. A lodging receipt must be furnished to be reimbursed for lodging expenses. The lodging receipt must show the amount (including applicable taxes) and must be from a commercial place of lodging. The 4th quarter relates to lodging:

~4th quarter...12 Midnight to 6AM... Lodging...$42.00 plus taxes

C. Other Travel Expenses

These may include such items as taxi fares, parking fees and certain miscellaneous expenses. Receipts must be furnished for any item exceeding $10.00. Applicable taxes for lodging rooms should be included in on the lodging receipt and claimed under lodging.

Direct Costs

Commodities are those items approved for the project that are considered expendable goods.

UNALLOWABLE COSTS FOR PROPOSED TRAFFIC SAFETY PROJECTS

Generally, the following are considered non-allowable costs for traffic safety projects and programs.

1. Advertising time and space -- except as approved by NDDOT for items such as a notice requesting a replacement coordinator. You can pay for production of a billboard, radio or television ad, or layout design. You will not be reimbursed for air time or the cost of an ad.

2. Purchase of office equipment. Your contract states that your local community is responsible for providing office space. Office equipment is included in that clause. Equipment may be purchased ONLY after prior written approval from NDDOT. This does not include small equipment such as an answering machine or desk supplies or office supplies. It refers to major equipment such as computer, law enforcement equipment or photocopier. Lease expenses are allowable, purchases are not. Furniture of any kind IS NOT ALLOWABLE.

3. Food/Alcoholic beverages. You will not be reimbursed for food and drinks. You are allowed to pay for meeting room and meeting room equipment costs.

4. Bad debts/fines and penalties/interest and other financial costs -- expenses relating to a legal dispute, finance charges, interest or late payment fees.

5. Contingencies. Expenses not included in the contract budget will not be reimbursed unless they have been approved by NDDOT prior to incurring the expense.

6. Contributions and donations. You will not be reimbursed for a donation or contribution you make from your contract funds to any agency or person.

7. Fund raising/Entertainment. Expenses incurred for things such as theater, movies or dinner out to encourage support for your program will not be reimbursed.

8. Investment management costs. Charges incurred for investing a portion of your funds will not be reimbursed.

9. Lobbying -- one big NO-NO.

10. The planning and administrative costs of application, bid or proposal preparation/Costs incurred before all parties have signed the contract/Costs incurred after the last date covered by the contract. Any costs incurred BEFORE the beginning contract date or AFTER the ending contract date will not be reimbursed.

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