8116.7     COMPLIANCE 
(New 9/91)

The intent of the revised travel expense policies and procedures is to avoid reporting travel advances as taxable wages or compensation by deducting it from an employee's payroll warrant if the reasonable period of time provisions for an accountable plan are not satisfied.  In State Government, unlike in private industry, a travel advance is never provided as additional wages or compensation which is a gift of State funds.  The gift of State funds is prohibited by the Constitution of California.

If a department fails to satisfy the reasonable period of time provisions as well as other accountable plan requirements, IRS penalties could occur.  Any IRS assessed penalties and interest for non-compliance will be paid from the department's support appropriations.