Appeal Process to 90% Per Diem Policy

In the past program leaders were eligible to claim up to 100% of the U.S. Department of State lodging rates and were reimbursed according to the actual receipted lodging expense (see details in the 2007-08 Study Abroad Faculty Handbook ). This policy will remain in effect, but leaders are strongly encouraged to find accommodations that will help to keep the program fee at the lowest possible level.

Likewise, leaders were previously allowed 100% of the U.S. Department of State Meals and Incidental Expenses (M&IE) allocation. Recommendation # 33 of the 2007-08 Study Abroad Task Force Report states, “Per diem amounts to MSU faculty should be limited to 90% of the maximum State Department.” Therefore, effective with the 2009 spring semester, all study abroad program budgets will reflect a maximum 90% M&IE amount. The only automatic exception will be for Freshman Seminar programs because these leaders collect no, or limited, compensation for their leadership. Should leaders stay in a location that includes meals, the per diem will be adjusted accordingly.

M & IE is paid in lieu of actual expenses and eliminates the need to keep receipts for every incidental transaction. It is intended to cover such things as meals, laundry and dry cleaning, fees, tips to waiters/porters/hotel maids, etc., faxes, telegrams, telephone calls for reserving hotel rooms, transportation between places of lodging and business or where meals are taken. According to the MSU travel policy, these items are covered under M&IE and cannot be claimed separately. However, OSA will accept and consider receipts for items not included in this list.

Since the State Department uses hotel and restaurant surveys to establish the per diem rates, they vary according to geographic location and are sensitive to currency fluctuations and cost of living. (See http://aoprals.state.gov/web920/per_diem.asp ). Foreign per diem rates are updated monthly and are effective the first day of each month. Taxes are included.

The Office of Study Abroad recognizes that in some cases this 90% M & IE may be insufficient. Therefore, program leaders may appeal the process, and exceptions may be made in the following cases:

• When staying in a location for two weeks (14 days) or shorter. The rationale is that when staying for brief periods, leaders are commonly forced to stay in hotels or facilities that do not allow cooking, therefore requiring that they eat at restaurants for all meals.
• When staying in “Other” locations as defined by the U.S. Department of State. The State Department identifies key cities in a country and clumps all other cities into the “Other” category, ranging from cities immediately outside of metropolitan areas to those in remote rural areas. Therefore, based on where the “Other” location is situated, leaders may be entitled to the full per diem.

Leaders wishing to appeal this policy based on these two exceptions, should inform Amy Moeder at the time of budget planning. Adjustments will not be done automatically.

Thank you for helping to provide the lowest possible study abroad program fees as we strive to make study abroad accessible to all students.