Purpose

The Board of Trustees recognize that they are being afforded educational opportunities through attendance at various seminars or conferences, in order to improve their effectiveness as named fiduciaries of the OP&F. The goal of these forums is to improve the operation and administration of the plan solely for the best interests of its members and beneficiaries. To that end, the trustees will make all efforts to utilize these opportunities to the fullest while minimizing costs.

Authority

Ohio Revised Code chapter 742.08 states, "the members of the Board of Trustees of the Ohio Police and Fire Pension Fund shall serve without compensation but shall be reimbursed for their necessary expenses incurred in the performance of their official duties."

Travel expenses are further discussed under Ohio Administrative Rule 742-16-01. This rule states, "… Board Members may receive reimbursement from the fund for all proper reasonable and necessary expenses actually incurred in the performance of their official duties. Eligible reimbursable expenses include but are not limited to reasonable charges for meals, beverages, tips, lodging, airfare, ground transportation, telephone calls and registration fees." In order to obtain reimbursement of expenses staff recommends that the following process be followed.

Board of Trustee Guidelines

The following changes are incorporated into the travel policy unless pre-approved by the Board of Trustees:

• Meal reimbursement of actual costs does not exceed $60 per day
• Trustees should travel to no more than 3 out-of-state educational conference or seminars in a year with a cap of $6,000 per year on actual and necessary travel costs for each trustee. This figure excludes conference registration charges.
• There will be no more than 3 trustees at any one out-of-state educational conference or seminar. This requirement will exclude any trustee that is on a National committee or speaker for that conference.
• All out of state travel needs to be approved by the Board of Trustees before travel may take place. In the case of emergency travel that has to be completed before the next Board meeting, the Chairman and/or Executive Director must approve trip.
• There will be no reimbursement of alcoholic beverages.

"No person who is a member of the board of a state retirement system, a state retirement system investment officer, or an employee of a state retirement system whose position involves substantial and material exercise of discretion in the investment of retirement system funds shall solicit or accept, and no person shall give to that board member, officer, or employee, payment of actual travel expenses, including expenses incurred with the travel for lodging, meals, food, and beverages."

"Proper, reasonable and necessary expenses" means that the particular service or accommodation was in fact used by, or provided to, the trustee, and was appropriate under the circumstances and within the bounds of prudent judgment for their attendance in official duties at Board and committee meetings, financial/ investment due diligence trips, approved educational meetings, and any other additional duties pre-approved by the Board of Trustees.

Board of Trustee out of state travel expenses are limited to those incurred not more than one day before, during the event, and one day after unless a longer stay before or after the event results in lower airfare and the additional hotel and meal expenses do not exceed the savings differential. OP&F purchasing section will document the savings calculation.

Any travel incident or event that falls outside these guidelines must be brought to the Administration Committee to be considered for reimbursement.

Telephone calls or other electronic transmissions for OP&F business and incidental personal use will be reimbursed to the Trustee.

The Board has analyzed their policy and made these adjustments in establishing guidelines and controls over the travel process. This ties in with the controls already established under the approval and reimbursement process.

Travel Guidelines

Flight:

Allowable class of service:

• Coach Class: Within the Continental US, Canada, and Mexico
• Business Class: Alaska, Hawaii and outside North America

Non-refundable electronic tickets will be purchased by OP&F for travelers. Any changes to airline reservation may result in change fees and difference in airfare. These fees vary depending on the individual carrier. If a change results from a work related incident, the Fund will pay the associated fees. If the change results from non-work related incident the traveler is responsible for the charges incurred. All changes must be documented on the travel change request form submitted to purchasing.

Car Rental:

• Domestic travel: Full-size
• International travel: Full size

Personal Car Usage:

• Mileage rate is established according to the IRS mileage rate. This rate includes usage and gasoline. Please contact Finance Administrative assistant or Purchasing for the actual rate.
• If personal car is used in lieu of flying, reimbursement will be allowed for the lesser of coach airfare or the established mileage rate for the number of miles driven.

Meal Reimbursement:

• Reimbursement for meals, in-state and out of state are made for actual expenses not to exceed $60/day.
• An itemized receipt is required for meal reimbursement. This ensures that OP&F is reimbursing appropriate amount as it relates to this travel policy.
• When more than one trustee or party is included on a bill, a list of who was included along with business affiliation and the purpose of the meeting needs to be documented on the receipt.

Lodging:

• Lodging reimbursement will be made for reasonable amounts in the area traveling. If attending a conference, lodging is permitted at the conference location.
• Reimbursement will be made at the single occupancy rate.
• Rooms should be reserved at the government rate when possible.

Prepaid Calling Card Program:

All travelers will receive a pre-paid calling card with 120 minutes to conduct business/personal calls while traveling. For trips in excess of three days, the traveler will receive two (2) pre-paid calling cards. These phone cards are to be used in place of calling directly from hotel, etc. You may use them at pay phones as well. The Fund is aware that certain hotels will still charge the surcharge for use of room phone. Due to the nominal dollar amount, calling cards may be kept and do not have to be returned to Purchasing upon return.

Non-reimbursable expenses for Travel

• Alcoholic Beverages
• Airline club membership dues
• Earphone usage
• Annual fees for credit cards other than the American Express Corporate Card
• Auto repairs
• Baby sitting
• Barbers and/ or hairdressers
• Clothing/Toiletry items
• Country club dues and/or fees
• Delinquency fees and/or finance charges (unless an error of the fund)
• Frequent flyer membership fees (Any frequent flyer mileage obtained on OP&F business may not be used for personal use).
• Golf Fees
• Helicopter service for airport transfers
• Laundry service for travel fewer than 5 days
• Limousine service (except livery services for a group in a large metro area)
• Loss or theft of cash advance or airline tickets
• Loss or theft of personal funds and/or property
• Lost baggage
• 2nd checked luggage and/or briefcases
• Magazines, books and/or newspapers
• Mini-bar
• Movies (in-flight or hotel)
• No-show charges for hotel or car service
• Optional travel and/or baggage insurance
• Parking tickets or traffic violations
• Pet care
• Personal telegrams
• Personal entertainment including sporting events
• Saunas or massages
• Shoe shines
• Souvenirs and/or personal gifts
• Workout fees

Internal Audit Involvement

Board and Staff travel had been part of the internal audit four-year plan for review. With the changes made above and the events that have occurred, an internal audit review of Board and Staff travel will be conducted semi-annually as part of the audit schedule.