Travel Expense of Members; Proration of the Daily Subsistence

Subject:

Requested By: Henry L. Bridges State Auditor

Question: Is the proration of the daily subsistence allowance as promulgated pursuant to G.S. 138-6(a)(3) by the Division of State Budget, for the reimbursement of State employee for expenses incurred for lodging and meals when travel involves less than a twenty-four hour period, applicable to Occupational Licensing Board Members?

Conclusion: Yes. G.S. 93B-5, which authorizes reimbursement of travel expense of Occupational Licensing Board Members in an "amount not to exceed that authorized under G.S. 138-6(a)(1)(2) and (3) for officers and employees of State departments", incorporates by reference the prorated amounts authorized for reimbursement for expenses incurred for lodging and meals when "travel involves less than a full day (twenty-four hour period)" as promulgated by the Division of State Budget pursuant to G.S. 138-6(a)(3).

An audit of the expenditures of the Electrical Contractors Licensing Board by the State Auditor reveals that in the prior fiscal year, Board Members were paid a flat fee in the amount of $12.00 for subsistence (meals) when travel involved a period less than twenty-four hours. Regulations promulgated by the State Budget Division contain a schedule for maximum reimbursement of subsistence expense which prorates the daily maximum reimbursement among each meal and lodging. This proration is applicable when travel involves less than a twenty-four hour period. The Board advised the State Auditor that the Budget Regulations promulgated pursuant to G.S. 138-6(a)(3), do not apply to the Board as it does not bank with the State Treasurer. The auditor inquired of this Office as to the applicability of the Budget regulations to the Occupational Licensing Boards.

G.S. 93-5(b) provides that Occupational Licensing Board Members shall be reimbursed for necessary travel expense in an amount not to exceed that authorized under G.S. 138-6(a)(1)(2) and (3) for officers and employees of State departments. G.S. 138-6(a)(3) provides for reimbursement for subsistence of a stipulated rate "per day" and further provides that "when travel involves less than a full day (twenty-four hour period), a reasonable prorated amount shall be paid in accordance with regulations and criteria promulgated by the Director of the Budget." Pursuant to G.S. 138-6(a(3), the Director of the Budget promulgated in Section 5.9 of the Budget Manual a schedule with a proration of the statutory daily rate to be applied "when travel involves less than a full day (twenty-four hour period)". Pursuant to the regulations, State employees, when travel involves less than a twenty-four hour period, are reimbursed expenses for lodging when traveling overnight and for breakfast, lunch and dinner in accordance with the schedule.

In cases where the travel involves a period less than twenty-four hours, G.S. 93B-5, in authorizing reimbursement of travel expense of Occupational Licensing Board Members of an amount NOT TO EXCEED THAT AUTHORIZED BY G.S. 138-6(a)(3) (for subsistence), incorporated by reference the schedule prorating the daily rate, promulgated by the State Budget Division pursuant to opinion that where the travel involves a period of time less than twenty-four hours, the amount of subsistence that Occupational Licensing Board Members are authorized to be reimbursed cannot exceed the amount produced by applying the schedule of the State Budget Division containing the daily subsistence rate prorated, to the lodging and meals involved in the travel of the Board members.

The Executive Budget Act, Article 1 of Chapter 143, provides for the preparation and administration of the State Budget. "State funds" within the definition of the Executive Budget Act" includes those funds collected by Occupational Licensing Boards. G.S. 143-1. However, the General Assembly has not included these Occupational Licensing Boards within the appropriation acts and these boards do not bank with the State Treasurer. Therefore, the Budget Division has no jurisdiction or control over these boards and except as indicated in this opinion the Budget Regulations do not apply to those Occupational Licensing Boards.

Rufus L. Edmisten Attorney General

Eugene A. Smith Special Deputy Attorney General