UVA Financial & Administrative Policy

Policy: VI.C.3x2 (inactive)	Issued: March 25, 1994
Owner: Human Resources	Latest Revision: October 10, 2001

MOVING EXPENSE: REIMBURSEMENT LIMITS

**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

1.0 Purpose
2.0 Policy

2.1 Total Reimbursements
2.2 Travel Expenses (Move to new job location and house-hunting)
2.3 House-hunting Expenses
2.4 Transportation of Household Goods and Personal Effects
2.5 Non-Reimbursable Expenses
2.6 Storage of Household Goods and Personal Effects
2.7 Temporary Quarters
2.8 Home Sale
2.9 Cancellation of Lease
2.10 Home Purchase

1.0 Purpose

This policy describes the general limits for moving expense reimbursements.

2.0 Policy [Top]

2.1 Total Reimbursements

The total dollar limit for gross reimbursement for all expenses other than for transportation and storage of household goods is $11,000.00. Gross reimbursements (i.e., actual reimbursements received by the employee and paid to third parties on behalf of the employee) include any taxes withheld on these reimbursements. Self-move expenses are included in the $11,000 maximum.

Direct payments by the University or the employee to a licensed moving agent are not included in the $11,000 maximum, nor is a limit placed on costs related to use of a common carrier for transportation and storage.

To be eligible for reimbursement, an expenditure must be reasonable, necessary, and incurred after the employee executes an Employment Agreement. All reimbursements for travel and mileage will be at the rates in effect at the time of the travel.

2.2 Travel expenses (Move to new job location and house-hunting)

Employees may be reimbursed for travel expenses related to moving and relocation in the following circumstances:

· The initial trip, after employment to the new duty station;

· Trips for the purpose of finding a permanent residence (house-hunting); and,

· The final trip to bring family and belongings to the new residence (temporary or permanent).

Automobile rental is not a reimbursable expense, except for house-hunting purposes.

2.3 House-hunting Expenses

Reimbursable house-hunting expenses include the following for employee and spouse while traveling:

· cost of transportation (including car rental);

· meals; and

· lodging

The number of trips for house-hunting that are reimbursable is limited to three (3) for the employee and three (3) for the spouse. The maximum number of nights of reimbursable lodging is fifteen (15). A night of combined lodging for both the employee and spouse counts as one night.

2.4 Transportation of Household Goods and Personal Effects

Common Carrier: The actual costs paid for common carrier transportation of the employee's household goods and personal effects from the former principal residence to the residence at the new work location are reimbursable. If the new employee uses common carrier transportation, the amount of actual costs is allowed in addition to the $11,000 limitation. The employee is required to obtain three (3) bids for common carrier transportation. The lowest of the three (3) bids should be used for the moving of personal effects from the former residence. Copies of the three (3) bids should be provided to the department prior to a formal commitment to utilize the common carrier. When at all possible, the employee should utilize a common carrier based in Virginia. When outside of the Commonwealth of Virginia, employees should contact Virginia common carriers to inquire if they are able to match the bid submitted by the out-of-state firms.

Self-Move: If the employee chooses to move himself/herself, the amount of the actual costs allowed will be included in the limitation. The following actual costs are reimbursable, within the $11,000 total limitation, with appropriate documentation:

· Moving vehicle rental – costs of renting a moving van, truck, trailer, hand truck, or other appropriate moving equipment, vehicles, and supplies are reimbursable with rental company receipt. Purchase of such a vehicle or equipment is not reimbursable. The purchase of moving supplies, such as packing paper, boxes or cartons, may be reimbursed with appropriate receipts. The amount of such purchases must not exceed $200. Gas used by a rental truck during the move is reimbursable with proper receipts.

· Labor used during the move - reimbursement is limited to a reasonable hourly wage with the maximum total of $250. Labor provided by the employee or immediate family member(s) is not reimbursable. A receipt from the individual employed, with amount paid and signature, must be attached to the reimbursement request.

· Mileage - if a personally-owned or borrowed moving vehicle is used in the move, reimbursement will be allowed at the mileage rate specified in the current Appropriation Act. Reimbursement will not be allowed to cover the "rental value" of the personally-owned vehicle. A car or truck with a trailer in tow will also be reimbursed at the mileage rate specified in the current Appropriation Act.

· Tolls- tolls paid during the move are reimbursable provided the name of the facility (road, bridge, tunnel) is provided.

2.5 Non-Reimbursable Expenses

Costs related to moving and relocation not specifically allowed in these regulations are not reimbursable. The following expense items shall not be considered as valid moving and relocation expenses and will not be reimbursable:

· Insurance in excess of bulk rate coverage provided by the common carrier;

· The cost to transport recreation vehicles or boats;

· Laundry or dry cleaning while in temporary quarters; and,

· The cost to move a pet.

2.6 Storage of Household Goods and Personal Effects

The expense for a maximum of thirty (30) days temporary (in-transit) storage of household goods is reimbursable if the employee cannot move directly into the new residence. This amount is not included in the $11,000 limitation.

2.7 Temporary Quarters

Reimbursement for reasonable lodging or rent may be claimed for a period of ninety (90) days from the first day of work at the new location. Reasonable residential parking fees will be reimbursed during the ninety (90) days of temporary quarters. Expenses for meals may be claimed for the first thirty (30) days of residence in temporary quarters. Such expenses must be reasonable and necessary.

2.8 Home Sale

Actual expenses of real estate commissions on the sale of the former principal residence and those customary closing and legal costs incurred in the sale of that residence, as listed below, shall be reimbursable. Reimbursement for home sale expenses is limited to $11,000. A copy of the "Closing Statement," signed by the closing attorney, the realtor, or the seller, must be included as supportive documentation when requesting reimbursement.

The following expenses related to the sale of the principal residence due to moving and relocation are reimbursable:

· Actual expense of real estate commission;

· Attorney fees;

· Escrow fees;

· State or local transfer taxes; and

· Pest inspections.

The following expenses are not reimbursable:

· Sales commissions and similar expenses if the employee acts as a selling agent (closing and legal costs are allowed);

· Advertising and "fix-up" costs;

· Loss sustained on sale of residence;

· Real estate and capital gains taxes;

· Payment and repayment of interest;

· Points or loan payment charges that are negotiable;

· "Carrying" costs (maintenance fees, utilities, principal, etc.);

· Mortgage penalties; and

· Buyer's closing costs, including Virginia fees.

2.9 Cancellation of Lease

The settlement of a lease in the former residence is reimbursable if the settlement is due to moving and relocation.

2.10 Home Purchase

Expenses related to the purchase of a replacement home, which is the employee’s primary residence, are reimbursable for the specific items listed below and are subject to the $11,000 limitation. In order to qualify for this reimbursement, the relocated employee must have owned a primary residence at his prior location, which due to relocation, has been sold. This reimbursement is not allowed for the purchase of a second residence, investment property, business property, or resort/vacation property at the new work site.

The following expenses related to a home purchase are reimbursable:

· VA funding fee;

· Loan origination fee, or lease processing fee;

· Mortgage survey;

· Appraisal fee;

· Credit report;

· Title search;

· Recording fee;

· Title Insurance;

· Attorney fee;

· Home Inspection; and

· Notary fees.

All of the above expenditures must be related to the purchase of the primary residence. Documentation clearly identifying these expenses is required. In order for the expenses related to a home purchase to be considered for reimbursement, the replacement of the prior primary residence, must be accomplished (closed) within twelve (12) months after the official starting date of employment.

The Chief Human Resources Officer (University employees) or the Associate Director of Finance (for Medical Center employees) may grant extensions for up to an additional 12 months if there is a finding of extenuating circumstances resulting in the twelve (12) month period expiring prior to purchase (closing) of a replacement home. Requests for extensions after this period may be presented to the State Comptroller for review.

Costs related to the purchase of a primary residence not specifically listed above are not reimbursable.

Examples of some expenses that are not reimbursable are as follows:

· Utility deposits and/or connection fees;

· Real estate taxes, prepaid or otherwise;

· Capital gains taxes;

· Mortgage loan differential;

· Realtor fees related to purchasing;

· Remodeling or decoration expenses;

· Points, discount fees, or loan payment charges;

· Repair and maintenance costs;

· Homeowner insurance;

· Homeowner warranty fees;

· Private mortgage insurance;

· Permit fees such as building, sewer, and zoning; and

· Deposit for rent.

3.0 Definitions [Top]

4.0 References [Top]

5.0 Approvals and Revisions [Top]

Previous version in effect from 3/25/94 to 3/28/00 available in policy archive.