"Per Diem" vs. "Actual Cost Method" of Travel Reimbursement

Per Diem Method of Travel Reimbursement

The Per Diem method of travel reimbursement is reimbursing travelers for a specificied amount for lodging, and a specificed amount for Meals and Incidental Expense (MI&E).

Actual Cost Method of Travel Reimbursement

This method reimburses the travel for actual cost incurred for expense reimbursement. It almost always has a limitation tied to the Per Diem's available to that location.

Government Preference

There are many opinions and discussions around what method the government prefers. Many argue that the government and DCAA prefers the Per Diem method, as that is what they are used to. Others argue, that the government prefers the actual method, as travelers will eat a McDonald's and pocket the rest of the money, or use it for alcohol and entertainment. The opinions and discussions are academic. The government does not have a preference, and if it did, it would be published. Different individuals within the government, and within agencies may have a preference, but that preferance is with the individual. Again, it is purely academic, it does not matter what the government prefers, as it allows both methods to be utilized in the reimbursement of costs.

The Key to Reimbursing Travel Costs

The key to travel reimbursement is: