Lodging in Non-Commercial Lodging Establishments

Documents

POLICY

Reimbursement for lodging in an establishment that is being rented out by a third party or an establishment treated as an apartment building by state or local law or regulation is not allowed unless approved by the University Controller’s Office in advance of the travel. Requests for third party lodging must provide evidence of savings to the state based on allowable in-state and out-of-state lodging rates (see Section 5.1.2 of the State Budget Manual). An exception may be granted for requests that do not show savings with sufficient justification to support the necessity for third party lodging. Applicants must provide details regarding the arrangement, including (1) amount to be charged, (2) the length of stay, and (3) leasing information. A signed rental agreement must be presented to receive reimbursement.

Third party lodging will not be considered for non-affiliates of North Carolina State University or lease agreements with family members or NC State University employees. Family members are defined as employee and family members of the employee, which includes brothers, sisters (whole or half blood), spouse, ancestors and lineal descendants. Further, a family member of the employee’s brother, sister (whole or half blood), spouse, ancestor or lineal descendant is also considered a family member for purposes of this policy. A Third Party Lodging lease agreement with other entities in which an employee or a family member has an interest is prohibited.

PROCEDURE

Employee must complete an online travel authorization in the Financial System and obtain the required prior approvals.

If an employee desires to stay in an establishment other than a commercial lodging establishment, while in travel status, the employee / travel coordinator must complete the Pre-Approval for 3rd Party Lodging form. The form must be approved by the department head or designee and submitted to the University Controller’s Office for approval.

The employee / travel coordinator must review the leasing agreement and calculate the estimated daily rate. Total lodging amount ÷ (# of occupants x # of nights) = estimated daily rate

If the estimated daily rate does not exceed the State approved daily rate, the traveler must attach a copy of the lease agreement and justification to the Pre-Approval for 3rd Party Lodging form.
If the estimated daily rate exceeds the State approved daily rate, the traveler must provide a copy of the lease agreement and three standard midrange hotels for comparison and justification.
If the estimated daily rate exceeds the State approved daily rate and the standard midrange hotels, an exception may be granted based on certain criteria to include:

– the availability of suitable lodging in the area;

– the location of available lodging in the area;

– the type of lodging available in the area;

– safety consideration for travelers; and

– other extenuating circumstances not covered by the above items.

Exceptions must be supported with adequate documentation. No excessive costs, luxury accommodations, or unnecessary services for the convenience or personal preference of the travelers will be approved.

The University Controller’s Office will communicate with the employee/travel coordinator as to the approval or denial. If approved, a signed rental agreement must be presented to receive reimbursement. University travelers who fail to obtain approval for third party lodging in advance may be personally responsible for any costs that are incurred as a part of the rental/lease agreement. Costs incurred without preapproval will not be paid from state funds.

APPROVAL

The University Controller’s Office (Travel Manager) will review the Pre-Approval for 3rd Party Lodging form. Requests for third party lodging must provide evidence of savings to the State.

The Controller’s Office will validate that the lease is not involving a family member and NC State University employees by searching the appropriate county/state records to determine ownership of the property.

An exception may be granted for requests that do not show a savings with sufficient justification to support the necessity for third party lodging. Exceptions will be granted based on certain criteria to include:

– the availability of suitable lodging in the area;

– the location of available lodging in the area;

– the type of lodging available in the area;

– safety consideration for travelers; and

– other extenuating circumstances not covered by the above items.

Once approved or denied by the Chancellor or Chancellor’s designee, the request will be forwarded back to the requesting department