Procedure: Selection of Method for Reimbursement for Board-Related Expenses

Under Georgia law, Board members are entitled to receive a "per diem" payment to reimburse them for the cost of meals and lodging associated with Board-related functions. However, in some instances the receipt of "per diem" payments may have unintended tax consequences. Accordingly, two options have been developed for the reimbursement of Board Members for the costs related to Board activities. Please review these two options carefully and select the option that is best for you. Then sign the form at the bottom and return it to Helen Mathis.

If you need additional information, please see your tax advisor. Also, upon request, we can provide you with a copy of legal advice issued on August 3, 1999, to state agencies on this matter by Senior Assistant Attorney General Warren Calvert of the Office of the Attorney General for the State of Georgia.

I have carefully read my options for reimbursement and select the following option:

_____Option 1: I elect to be reimbursed for meals, lodging and travel expenses allowed by the State of Georgia Travel Regulations for all Board activities. I shall be reimbursed for these expenses by completing an Employee Travel Expense Statement. I understand that the Internal Revenue Service considers Board members to be an employee of the Department of Technical and Adult Education, but I shall not receive any wages. Rather, I shall be reimbursed for meals, lodging and travel expenses for Board functions as authorized by the state travel regulations issued by the State Auditor.

_____Option 2: I elect to receive a per diem payment. I realize this payment shall be treated as wages and subject to the withholdings required by law. I understand that if I elect to receive a per diem payment, I would not be able to seek reimbursement for meals and lodging, but may seek reimbursement for transportation and miscellaneous expenses.

Name of Board Member ______________________________________

Date__________________


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Board Member's Signature

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