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Utah Valley University
Policies and Procedures

Title Courtesy Vehicles Number 406
Section Facilities, Operations, and Information Technology Approval Date Apr 12,2007
Subsection Safety, Security, and Vehicles Effective Date Apr 12,2007
I. Purpose
This policy is to insure that the acquisition and use of courtesy cars by institutional employees is handled in a manner consistent with Internal Revenue Service guidelines. The institution is also needed to ensure that such use complies with all financial and state risk management guidelines.
II. Terms
Courtesy Car A vehicle supplied by entities other than the institution for the business and personal use of an institution employee.
III. Policy
The appropriate Vice President will approve the acquisition and use of courtesy vehicles. The use of courtesy vehicles will be limited to the purposes designated by the dealer. In no instance is such a vehicle to be used for any purposes inconsistent with the best interests of the institution, in terms of institution policies, State Governing Board regulations, and practices related to maintaining a favorable public image for the institution. Each individual to whom a vehicle is assigned must document business miles driven. The documentation must include the date, business, mileage, and business purpose. All business mileage must be supported by written records (logs, calendars or other means). Personal use of courtesy cars is taxable income, according to IRS regulations. The Business Office will calculate the Annual Lease Value of the car, deduct the amount used for business purposes, and include the amount on the individuals W-2 for the year based on the documentation received. The individual to whom the vehicle is assigned is responsible for retaining copies of all written records to be presented upon demand in the event of internal or external audits. These records are to be maintained for 5 years from the year in which the mileage was reported.
IV. Procedures
  1. Acquisition and Documentation The appropriate Vice President or their designee will be responsible for maintaining a complete and current record for each vehicle.
  2. Responsibility and Utilization Employees of the institution will treat courtesy vehicles with meticulous care and in a manner intended to be pleasing to the dealer. Institutional employees will be expected to be familiar with this provision. In instances when a courtesy vehicle is to be used by more than one employee, the individual to whom the vehicle is primarily assigned will have the responsibility and authority to establish use priorities and schedules for the vehicle. If the vehicle has been designated for general institution use, the appropriate Vice President will assign it to a particular department, to a particular individual, or to the motor pool. If the vehicle is assigned to the motor pool, scheduling will be the responsibility of the motor pool supervisor, consistent with normal motor pool practices.
  3. Expenses The cost of licensing, insuring, gas, oil and maintenance for the courtesy vehicles will be the responsibility of the individual to whom the vehicle is assigned.
  4. Insurance coverage for the vehicle will be retained through the Division of State Risk management program.
  5. Coverage will include:
    1. Combined single limit liability$ 1,000,000 Limit per accident
    2. Personal injury protection $ 3,000
    3. Uninsured motorist B1 single $ 1,000,000 Limit per accident
    4. Comprehensive deductible $ 250
    5. Collision deductible $ 500
  6. The $500 collision deductible will be the responsibility of the employee to whom the vehicle is assigned. The employee will be charged the annual insurance costs. This amount will be divided into 24 equal payments which will be deducted from the employee's paycheck. The institution will reimburse employees for mileage in the conduct of official institutional business as submitted on the Travel Reimbursement Form. The reimbursement rate established for courtesy vehicles will be 50% of the standard mileage reimbursement rate per UVU guidelines. Reimbursement requests must be made on a UVU Travel Reimbursement Form with the "Courtesy Vehicle" notation. All courtesy vehicles will be leased directly to the Institution with a signed agreement between the dealer and the Institution. Registration and licensing of each vehicle will be by the dealer. The registration form will indicate the Lessee as Utah Valley University.
    1. Reporting The individual to whom the vehicle is assigned is responsible for submitting the make, model, year of the car, the date received, and beginning mileage on the odometer to the Business Office within 5 days of receipt. When thevehicle is returned the ending odometer mileage, and the date returned must be submitted to the Business Office within 5 days of return. The Business Office will maintain the courtesy car information on a Vehicle Control Sheet. (Attachment I)
    Examples of institutional activities appropriate for business:
    1. driving to and from meetings (including breakfasts, luncheons, dinners) having to do with official business and/or representing the institution.
    2. driving to and from locations to deliver items having to do with official business
    3. driving to and from locations required to carry out official job responsibilities.
    Examples of personal activities:
    1. driving between an individual's residence and work.
    2. digressing from route to or from a business trip for a personal reason, i.e., shopping, running errands while traveling to or from a business related activity.
    3. operating vehicle during general personal activities, i.e., vacations, weekends, evenings, etc.
    4. any driving activity that does not fulfill an official business purpose.
  7. At the end of the reporting period, the employee must complete the Courtesy Car Declaration Form (Attachment II) for all vehicles used during the reporting period. The employee should submit the completed form to the Business Office by the 10thday of the month following the end of the reporting period. Reporting periods and due dates are as follows:
    1. January 1stthru March 31st due April 10th
    2. April 1stthru June 30th due July 10th
    3. July 1stthru September 30th due October 10th
    4. October 1stthru December 31st due January 10th
  8. Attachment I
    1. Vehicle Control Sheet (for Courtesy Vehicles)
      Employee Name: Department Name:
      Car Make/Model/Year Date Received Date Returned Beginning Mileage Ending Mileage
      ( 1)
      ( 2)
      ( 3)
      ( 4)
      ( 5)
      ( 6)
      ( 7)
      ( 8)
      ( 9)
      (10)
      (11)
      (12)
Cara O'Sullivan, Policy Officer | mailto:cara.osullivan@uvu.edu | (801) 836-7355
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