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FPM 8.5 Lodging

Effective Date:
October 20, 2017
Last Revised Date:
July 1, 2026
Responsible Unit(s):
Finance & Budget - Travel, Expense & Card Services
Responsible Unit Email(s):
FNAB-Travel-Expense@arizona.edu
Manual:
Financial Policies Manual
Status:
Active

Purpose and Summary

To provide the requirements and guidelines for lodging expenditures for employees, students, Designated Campus Colleagues (DCCs), and vendors while traveling to conduct University business.

Scope

This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international. 

Definitions

  1. Accountable Plan: A method used to reimburse University employees for business-related expenses that satisfy Code of Federal Regulations (CFR) and Internal Revenue Code (IRC) requirements. See FPM 8.3 Accountable Plan.
  2. Commercial Lodging: Includes any business enterprise that offers its services to the public and charges an advertised rate, including accommodations offered by online rental services such as Airbnb and VRBO and other offerings.
  3. Designated Campus Colleagues (DCCs): Individuals classified as affiliates, associates, volunteers, or interns, as defined by Human Resources.
  4. Duty Post: The employee’s primary designated work location, as identified in University records, that serves as the employee’s official work location for purposes of travel status and reimbursement eligibility regardless of whether the employee is working remotely, on-site, or temporarily at another University location.
  5. Lodging Limit: The maximum lodging expense payment or reimbursement limit established by the State of Arizona, also known as the State’s lodging rate or Rack Rate. Lodging rates are “room” or “rack” rates; other charges that are imposed by the applicable government authority, such as taxes, may be reimbursed in addition to the lodging limit amount.
  6. Traveler: Individual traveling on University of Arizona business to include employees, students, and Designated Campus Colleagues.
  7. Travel Cash Advance: A cash advance issued to a Traveler seven days in advance of the trip to ease the burden of out-of-pocket expenses while conducting University business. The amount is determined based on a budget assessment of the trip. See FPM 8.2 Travel Payment & Funding for additional details and alternative payment methods.  
  8. Travel Expense Report: A document that reconciles business travel costs in the Travel & Expense System. It consolidates out-of-pocket purchases, University Card transactions, and travel allowances (such as per diems) so that employees can be reimbursed and the University can track spending. See Travel & Expense Training Page.
  9. Travel Request: A request completed in the Travel & Expense system utilized to document and budget University travel. The Travel Request serves as the official University record of the business trip regardless of funding source. 

Policy

General

  1. Traveler must be on authorized University travel at least 35 miles from their designated Duty Post to be eligible for reimbursement or direct payment to the vendor for lodging. Lodging rates are designated by the State of Arizona Accounting Manual, Topic 50, Section 95, to provide suitable and safe, but not luxurious or high-end accommodation, and travelers should request the lowest available rate.
  2. Lodging costs incurred within 35 miles of the traveler’s designated duty post or residence is not allowed unless extenuating circumstances make local lodging necessary for a documented business purpose and the lodging either meets the allowable local lodging rates or there is an approved contract agreement. Supporting documentation must include an itemized billing statement from the lodging venue and an explanation describing the extenuating circumstances and business needs for local lodging.  
  3. Reimbursement or direct payment of lodging costs incurred within 35 miles of the traveler’s designated duty post or residence constitute taxable income unless it qualifies for exclusion under applicable tax laws. 
  4. A clear and thoroughly documented University business purpose is required for all trip-related lodging expenses, detailing how the University benefited from the expenses incurred.
  5. Under no circumstances shall expenses for personal travel be charged to, or temporarily funded by, the University. Only business lodging costs will be incurred by the University. The Traveler is responsible for additional lodging expenses while on personal travel.
  6. Designated lodging may exceed maximum lodging limits and is allowable without additional justification when documentation identifies the designated lodging establishment and applicable rate.
  7. Lodging reimbursement is based on the maximum allowable rate for a single‑occupancy room. When a traveler rents a multi‑room home share or similar accommodation without a documented business need for additional bedrooms, reimbursement will be limited to the pro‑rated cost of one bedroom, not to exceed the applicable State of Arizona lodging rate.
  8. Resort fees and booking fees are allowable when they are mandatory, routinely charged by the lodging establishment, and do not cause the total daily lodging cost to exceed the maximum reimbursement rate. Fees that increase the single room rate above the lodging limit require justification with a business purpose.
  9. Lodging costs, excluding taxes and other mandatory government-imposed fees, may not exceed the maximum lodging rates established by the State of Arizona. Requests to exceed the maximum lodging rate must include a documented business purpose explaining why the lodging was selected, along with two cost comparisons for comparable lodging.
  10. Additional lodging expenses for upgraded room features, personal items, or Traveler convenience that are not for the primary benefit of the University are not reimbursable and may not be charged to University funds.
  11. Cancellation fees, early check-in fees, and late checkout fees are discouraged but may be reimbursable when incurred as the result of a documented business need or due to a serious unpredictable or unavoidable circumstance. Such determinations are at the discretion of department leadership. Fees incurred for personal reasons or circumstances that could reasonably have been avoided are not allowable.
  12. Business-related telephone, internet, and communication charges, including those incurred at a hotel business center, are allowed when documented by original receipts or on the itemized lodging receipt, and supported by a business purpose.
  13. Rates for Alaska, Hawaii, and the US Territories are located on the Defense Travel Management Office website.
  14. Rates for international travel lodging and meals are located on the US Department of State Office of Allowances rates website.
  15. Travel related expenses submitted by vendors, contractors or other non-employees must follow the University Travel policy designated by the State of Arizona when conducting state business. Exceptions include when a written agreement or contract is in place and signed by a University designee with signature authority.  

Procedures

  1. Lodging reimbursement rates are based on the location where the traveler spends the night, as supported by the approved travel itinerary. Steps to identify the allowable lodging reimbursement rate are as follows: 

    Domestic:

    • Use the State of Arizona Accounting Manual lodging reimbursement rate table . 
    • Locate the state, then the city. Review the lodging column for the room rate limit to make reservations. 
    • If the specific city is not listed, use the rate applicable to the county in which the lodging occurs. 
    • If neither city nor county is listed, use the default rate listed at the beginning of the table. 
       

    International:

  2. When an allowable business purpose exists, the business unit should use one of the following options:
  3. Supporting documentation for non-employee Travelers must include citizenship or US residency status of the Traveler(s) to ensure requirements for payment(s) to and on behalf of a foreign visitor are followed.
  4. When travelers share lodging while on University business, each Traveler can pay their portion with their individual University Card or out-of-pocket; each Traveler should obtain a separate receipt from the hotel.
    • When the establishment is unable or unwilling to split separate receipts, one University Card can be used. The original receipt should be marked “Shared Lodging,” and identify the Travelers’ names in the Lodging Attendees section of the Travel Expense Report.
    • The second Traveler should submit a copy of the same receipt marked “Shared Lodging” indicating their costs were paid and cross-reference the transaction in their Travel Expense Report.
    • Documentation must include the names of all Travelers sharing the room. Shared lodging with multiple Travelers on University business should not exceed the actual costs incurred, subject to lodging limits per occupant.  
    • Reimbursements must include full details of University business conducted and a breakdown of expenses for auditing purposes.
  5. Upon return from travel, prepare a Travel Expense Report  following post-trip instructions. Provide all supporting documentation for reimbursement and include the business purpose for all expenditures to align with University policy.
  6. Examples of non-reimbursable expenses are generally those incurred by the Traveler that are personal in nature and not for the primary benefit of the University. Examples may include, but are not limited to, the following:
    • Lodging upgrades unless supported with a business purpose.
    • Movies, alcoholic beverages, water, juice, and snacks that are available in the room.
    • Valet parking for the convenience of the Traveler.
    • Internet, Wi-Fi, or hot spot unless supported with a business purpose.
    • Health club charges, unless medically required by Traveler’s physician.
    • Room Service (Meal Travel Allowances will be reimbursed).
    • Pets or Child Care Services.
    • Tips to baggage porters, maids, and service personnel, as these are inclusive of Meal Travel Allowance.
    • Expenses incurred to conduct personal activities or for the personal preference or convenience of the Traveler.

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