2. The Project Manager plans to travel to Washington, D.C. from her home, and return, in August of 2022. The proposed trip lasts five (5) days. Dinner will be provided on the first day of travel, included in the registration fee for the conference at the beginning of the trip. On the last day of the trip, breakfast will be included in Business Meetings (separately proposed from Travel), during a breakfast meeting with the customer’s Project Manager and Project Engineer. How much should be proposed for the meals per diem, for this trip?

1. $395
2. $355.50
3. $301.50
4. $315

3. Even if documented with a receipt and higher, comparative fares in the same class, which of the following is not a valid reason to charge the cost of a first/business class fare as allowable?

1. All other available flights require two or more stops/transfers
2. A letter from a doctor states, for medical reasons, the traveler requires the leg-room of first/business class
3. A (sorted by price) printout that includes less-than-first class seats – from a website that pulls data from multiple sources – shows the first class seat taken happens to be the least-expensive, available
4. Support shows the flight to be the lowest-priced non-stop flight

4. The Project Manager plans to stay at the home of a college friend, while in the D.C. Area. Although her friend does not charge for her visits, a thank-you gift costing $100 is always given. The store receipt is always attached to the Travel Form. For the four nights of lodging, how much should be proposed for the August trip?

1. $0
2. $100
3. $1,032
4. $400

5. Company policy requires a receipt for each item costing fifty dollars ($50.00) or more. A married couple, both employees of the same company, traveling to the same city for a valid business purpose stay in one hotel room costing ninety-eight dollars ($98.00). What lodging receipts, if any, are required?

1. No receipts, because each traveler’s share is less than fifty dollars ($50.00)
2. One (actual payment) ninety-eight dollar ($98.00) receipt for each traveler, with the explanation that one-half ($49.00) applies to Travel Expenses for this traveler
3. One traveler must claim ninety-eight dollars ($98.00) and the other zero dollars, with a lodging receipt for the traveler claiming the cost
4. No receipts, because the travelers are officers of the company, who Accounting knows are married and always share lodging

6. Which of the following is not included in the “Incidentals” portion of Meals and Incidentals (M&IE) and may be charged as an allowable cost?

1. A bottle of water
2. A tip for housekeeping
3. Laptop charger, after the one available breaks or “dies”
4. A midnight snack

7. When are costs of a rental vehicle – larger than a compact car – not allowable costs, even if the explanation is documented?

1. More than one traveler
2. Excess baggage, required for the business purpose and duration of the trip
3. Vehicle sufficiently large to transport a prototype, the reason for the travel
4. None of the above

8. Lodging per diem is one hundred dollars ($100.00). Actual lodging is one hundred twenty-five dollars ($125.00) plus taxes of thirty dollars ($30.00). How much of the taxes are allowable?

1. Twenty-four dollars ($24.00)
2. Thirty dollars ($30.00)
3. Fifty dollars ($50.00)
4. Zero dollars ($0.00)

9. Which of the following GovCon Travel costs, with supporting documentation, is allowable?

1. Lodging 75 miles from the traveler’s home during a 12-hour trip
2. Lodging within 60 miles of the traveler’s home and within 15 miles of the traveler’s permanent duty station (or company business location), during travel of more than 12 hours
3. Extra night’s lodging to save airfare, when the difference between planned-departure day and next-day airfare is less than the extra night’s lodging
4. Extra night’s lodging to visit a relative, while in town

10. Which of the following is adequate supporting documentation for allowable costs?

1. Airline receipt for two checked bags for a three-day trip
2. Receipt for two “mini-bar” bottles of wine
3. Verifiable (including supplier address or phone number) receipts for taxicab charges to and from the hotel to applicable business-purpose location
4. A credit card receipt for total (not itemized) hotel conference-room charges

Made you think! If you answered all 10 correctly, you’re a GovCon Travel rock star! If you got at least eight answers correct (and for the right reasons), you’re an asset to future DCAA audits of your employer’s cost proposals, Accounting System, and customer billings. Train others! If your guesses did not measure up, consider asking an outsourced consultant for help implementing compliant Policies and Procedures on GovCon Travel… And well before the next audit!

ANSWERS:

1. b. – Employees charge their time to the Job (for the contract) that benefits. The two hours have a direct benefit to Contract EFG, and were required for (the deliverable) report – regardless when or where she performed the work.

2. c. – M&IE per diem for the first day and the last day is $59.25 ($59.25 x 2 = $118.50). Per diem for each of the three middle days is $79 ($79 x 3 = $237). A $36 dinner and an $18 breakfast were provided (- $54). Yes, the entire meal amount is subtracted, even though only 75% of the first and last days’ per diem is added. $118.50 + $237 – $54 = $301.50.

3. d. – DCAA considers one stop to be reasonable. Regulations state that circuitous flights (of two or more stops) exceed “reasonable” and need not be considered. The difference between a non-stop (unless adequately supported as necessary) and one stop is unallowable.

4. a. – A receipt from an establishment that offers lodging for its normal course of business is required for reimbursement of lodging up to the per diem amount. A lodging receipt is always required, regardless savings from an alternative source.

5. b. – A receipt for lodging is always required (regardless amount). Customer Auditors and Reviewers require a receipt, to preclude allowing the lodging per diem rate for travelers’ stays with friends or colleagues. The receipt must be verifiable (i.e., show address and/or phone number) and from a source that provides lodging as routine business. Note that C. can be done, with adequate explanation (for an audit trail) on both Travel Expense reports; however, this option is not required or preferred.

6. c. – The new charger is an allowable cost, whether or not on travel. This is a normal business expense, unrelated to Travel Expenses. All other answers are included in M&IE and are not allowable as double-charged costs.

7. d. – None of the above. Each of the situations (A. through C.) are allowable, with adequate documentation to explain the excess-of-compact costs.

8. a. – One hundred dollars ($100.00) of the one hundred twenty-five dollars ($125.00) lodging (or 80%) is allowable. Thirty-five dollars ($35.00) taxes times 80% equals twenty-four ($24.00) allowable.

9. b. – Regulations limit travel costs to trips of more than 12 hours, but do not specify distance from home or permanent duty station (work address).

10. c. – For a trip of one week or less, DCAA and Reviewers consider one carry-on and one checked bag reasonable. For a longer trip, more checked bags are reasonable. For documented circumstances (such as items that are the subject of a destination meeting), additional bags are considered for reasonableness. A totaled credit card receipt is never adequate (for anything). DCAA and Reviewers do not verify “that” the money is spent; they evaluate “on what” the money is spent. Detailed receipts show entertainment, alcohol, and other unallowable costs.