Operating Policies and Procedures Manual

Purpose

To outline allowable relocation costs and to clarify nonallowable costs.

Policy

Arkansas Code 19-4-522 (5) (e) allows the payment of employee moving expenses from state funds by institutions of higher education. Within the fiscal limitations of departmental units of Arkansas University a dean, director, or department head may pay an amount equivalent to up to 10% of the annual salary in moving expenses for new faculty or professional staff employees. The President, Chancellor, or a Vice Chancellor may authorize payments greater than this amount. The terms of agreement for payment of moving expenses should be included in the letter of appointment. The University's obligation applies to the movement of a "household" and does not constitute a separate allowance to each member of a family employed by the University.

1. Allowable Costs:
   1. Moving the employee's household goods and personal effects.
   2. Travel, including lodging but not meals, from the former residence to the new residence. This includes one night of lodging upon arrival at the new home destination. Subsequent nights of lodging are the responsibility of the employee.
   3. Since it is often more economical to ship books by parcel post, individuals should investigate this possibility and should keep receipts to submit with their request for reimbursement.
   4. If the faculty or professional member elects to move himself/herself (U-Haul, etc) rather than utilizing commercial movers, receipts should be kept for vehicle or trailer rental charges, gasoline and oil purchases, toll charges, and special labor charges (other than the faculty or professional himself/herself) required in assisting with loading and unloading.
2. The University does not share in the following costs:
   1. Storage of personal effects at either end of the move.
   2. Additional insurance coverage over and above than normally carried by commercial moving companies.
   3. Moving of household effects and personal books, not professional books, from an address other than the home address from which the individual is moving.
   4. Any subsequent moves from temporary to permanent housing not made within 6 months of the original move, nor agreed to upfront in writing as part of the employment offer.

The university has contracted with a moving company, whose use is preferred, but not mandatory. Move scheduling should be done as soon as possible upon acceptance of employment, within one year from start of employment. If the University’s contracted moving company is not used, three written moving estimates must be secured, one being from the contract holder, and justification provided if the firm with the lowest estimate is not selected.

Payment will be made directly to the moving company by the university, or reimbursement for moving household goods and personal effects may be made to the employee, up to the amount authorized for the move. Original receipts are required for all reimbursements.

Procurement Services will not resolve any problems encountered with any moving companies other than the vendor ASU has a contractual agreement with. If other moving companies are used, the employee may not have adequate protection for damage or leverage required to resolve problems. Regardless of how the employee manages a household move, moving expense payments to vendors of ASU employees must follow University Policies and Procedures.

During the move, the moving company may ask for guidance from the employee being moved. The employee being moved must understand that verbal instructions to the moving company may constitute a contract. ASU will not pay for verbal charges outside the written contract, and the employee will be solely liable. The moving employee needs to exercise caution to avoid this personal additional expense. When in doubt concerning a request from the moving company, call Procurement Services at 972-2028 for assistance.

THE FOLLOWING STEPS SHOULD BE FOLLOWED WHEN HOUSEHOLD GOODS MOVING SERVICES ARE REQUIRED.

1. Inform your new employee in writing of the allotted amount the department is willing to pay for moving expenses and of the university preferred provider.
2. If the new employee does not wish to use the preferred provider they must attain three bids. Once they have received the cost estimates and selected the moving Company, they should contact their ASU department with the information. The department should then follow through with an approved requisition to Procurement Services with the following information:
   1. Name and phone number of employee moving;
   2. Name of contracted moving company and quote number, if applicable
   3. Date of move and any pertinent particulars needed to ensure a successful move;
   4. Copies of cost three estimates, if not using the preferred provider. If the employee is using the preferred provider, they should get a written quote for submittal, and assure that it is within the authorized budget before the move takes place. Any questions should be directed to Procurement Services before the employee signs the contract.
   5. Location employee is coming from and moving to.
3. For detailed information on Moving Expenses, see Federal Publication #521.

Revised on October 1, 2009.

This page is maintained by Cassey Tune
Last updated on 10/12/2009