Procedure 20330: Travel Loans
Introduction
Under special circumstances, travel loans are available to employees traveling on University business. This procedure outlines those circumstances, and the requirements for obtaining and repaying such loans.
Eligibility
Travel loans for employees traveling on official University business will be issued only to those staff members who are not eligible for the Bank of America (BOA) Visa Corporate Travel Card Program. Classified employees below pay band four (4) who travel infrequently or graduate assistants not approved by their department heads to obtain a travel card may be issued a travel loan. Classified employees in pay band three (3) who travel frequently are encouraged to apply for a BOA Visa travel card to reduce administrative tasks and outstanding loan balances.
A travel loan may be made to a faculty or staff member who is otherwise eligible for the BOA Visa travel card if he/she will be taking an international trip or an extended business trip. An extended trip is defined as continuous travel of four or more weeks without returning to the University or home during that period. Travel loans are also available for the leaders of Study Abroad Programs or leaders of athletic and academic team travel.
Employees can obtain American Express travelers checks from the Bursar’s Office for a business trip. Policies regarding this service can be reviewed on the Bursar’s Office web site ( www.bursar.vt.edu ).
Obtaining a Loan
A travel loan must be requested by the traveler and approved by the department head or his/her designee. If the department head is the recipient of the loan, the next higher level of supervision must approve the loan, as explained in the procedure concerning Accounting Approvals.
The completed Request for Travel Loan form must be received in the Controller's Office at least 3 working days before the check is desired. Those requests not received within the proper time period will not be approved.
The travel loan check may be picked up no earlier than 3 working days before the departure date. The check must be picked up before departure. If not picked up, the check is voided and the loan cancelled.
The travel loan recipient may choose to have the funds direct deposited into their personal bank account. The individual must be registered for AP direct deposit prior to submission of the travel loan form. The funds will be deposited no earlier than 3 working days before the departure date.
Paying Back a Travel Loan
If the request for reimbursement is completed promptly and accurately after the employee returns from the trip for which loan was made, there should be no problem in getting the reimbursement processed by the due date.
When an employee obtains a travel loan check but does not complete the trip as planned, the loan must be repaid immediately. An employee who receives a travel loan and completes the trip for which the loan was requested must repay the loan according to the following process:
- Upon your return, complete a Travel & Meal Reimbursement Voucher payable to “Your Name or Treasurer of Virginia Tech” using all university travel procedures.
- The Controller’s Office staff reviews the travel voucher in accordance with normal travel procedures and forwards the voucher to the Bursar’s Office.
- The Bursar’s Office will charge the expense to your department fund and apply the credit to your travel loan. If the credit exceeds the travel loan amount due, the Accounts Receivable system will generate a refund to you. In cases where the loan amount is greater than the travel reimbursement, you pay the additional amount owed on the travel loan when billed by the Bursar’s Office.
The traveler will be sent an electronic billing statement notification from the Office of the University Bursar, mid month after the return date of the trip, notifying him/her of any travel loans due. Loans not repaid by the due date will automatically be deducted from the traveler’s next paycheck. Individuals who have a loan collected via payroll deduction will not be eligible for another travel loan for six (6) months after the loan was collected.
Travel Loan Amounts
The loan amount requested should include only those anticipated reimbursable expenses for food, lodging and local transportation (taxi, rental car, etc.).
The amount requested should not include registration fees or air transportation. Registration fees are processed as a direct payment prior to conference. Air transportation is billed to the university through any of the university's contract travel agencies in accordance with Procedure 20335e.
Termination of Employee
Department heads should check to see if their employees have outstanding travel loan balances when they resign. These balances are to be paid before termination of employment.
Misuse
Improper use of the travel loan program will result in the permanent termination of this service to the employee.
Emergency International Travel Loans
International travelers occasionally need an immediate source of funds to address a business or non-business (e.g., medical problems) emergency. When such an emergency arises, the traveler has the ability to obtain an emergency loan from the university. To obtain such assistance, faculty travelers should contact the dean's office for their college, and administrative travelers should contact the appropriate vice president's office. This call will initiate a wire transfer of funds (Electronic Fund Transfer or EFT) to a banking institution at the traveler's location.
The following steps are taken to provide the funds to the traveler:
- The college or administrative office completes a travel loan form for the traveler.
- The form must be completed using the traveler's name and department information.
- The name, address, account number, and appropriate bank code of the receiving bank must be entered on the "destination" line of the travel loan form.
- The administrator's (dean or vice president) approval is required on the travel loan request.
- A statement must be typed on or below the "purpose" line on the form that states that the administrator guarantees payment from State or private sources (depending on the reason for the emergency). If the traveler is unable or unwilling to repay the loan from university accounts or personal funds, the administrator will authorize a payment from private funds.
- A copy of the travel loan form should be retained in the department.
- The original is submitted to the Controller's Office.
- The Controller's Office will add the cost of the wire transfer to the amount of the travel loan.
- After adding the cost of the wire transfer charges to the loan, the Controller's Office will send a completed copy of the form to the originating administrative office.
- The travel loan and EFT bank charges will be charged to a local account and will be entered on the Virginia Tech accounts receivable system in the name of the traveler.
- It is the responsibility of the traveler to complete and submit a travel voucher along with all required documentation to her or his supervisor within five working days after completion of the trip.
- The check for the travel reimbursement will be applied to the loan balance.
- The Bursar’s Office will invoice the traveler and it is her or his responsibility to repay this loan. Payment must be made at the Bursar’s Office by the due date on the billing statement.
- If the traveler fails to repay the loan within 60 days of her or his return, the Bursar’s Office will notify the dean or vice president that the payment has not been made.
- The dean or vice president will be requested to contact the individual and assist in making payment arrangements for the loan to be repaid.
- If repayment is not made within 90 days of the termination of the traveler's travel status, the Bursar may request reimbursement from the department's private funds. Such action will occur after review and approval by the University Controller. In cases of unusual hardship, requests for exceptions to this collection procedure may be submitted by the department to the University Controller
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