Each depositor insured to at least $250,000 per insured bank

 Non-Billable Fees

• Services of billable individuals who have not been included on the FDIC approved rate schedule attached to your LSA.
• Excessive number of attorneys performing services in a matter.
• E-invoice preparation, review, or for corrections to the E-invoice required by the FDIC Oversight Attorney or Financial Specialist.
• Secretarial or clerical overtime that has not been approved by your Oversight Attorney.
• Hourly fees for time spent photocopying, sending facsimiles, etc.
• Excessive intra-office conferences between attorneys or paralegals for the purpose of providing instruction or status.
• Excessive time spent in “file review.”
• Excessive time spent in “review and revision” of documents that you prepare.
• Educational or development costs for you to become generally familiar with statutory and case law affecting the FDIC.
• Charging attorney time for tasks that should be performed efficiently and effectively at less expense by a paralegal or secretary, or charging paralegal time for tasks that should be performed by clerical workers.
• Hours charged at a more senior attorney rate when a matter should be handled by a less senior attorney.
• Routine budget preparation.
• Charging attorney time for preparing and presenting training to the FDIC.

 Non-Billable Expenses

• Ordinary postage.
• Charges related to word processing.
• Charges other than “actual time” charges for electronic research (e.g., Westlaw or Lexis).  The FDIC Research Bank should be consulted before any legal research is performed.
• In-house photocopying charges at more than $0.08 per copy.
• Clerical time for photocopying, sending facsimiles, filing etc.
• Excessive/unnecessary overnight mail charges.
• Meals, unless you are on approved travel.
• Daily commuting expenses.
• Sales tax (except for lodging) or surcharges imposed by utilities or phone services.
• Tax on services.
• Any costs relating to filing fees in United States District Courts or Courts of Appeal which the FDIC is not required to pay (pursuant to 12 U.S.C. 1819(b)(4)).
• Cell phone roaming charges.
• A service that is customarily included in the normal overhead or administrative expense of running a law firm (e.g., rent, electricity, local telephone charges, HVAC, bill preparation).

7.6 Over Budget E-Invoices
If the full payment of the E-invoice causes the legal matter to exceed the grand total of the approved Budget, the FDIC will notify you.  The E-invoice cannot be paid until an Amended Budget is submitted and approved.  The Financial Specialist will notify the Oversight Attorney that an amended budget is needed.  The Oversight Attorney will work with Outside Counsel to submit an amended budget.  Refer to Chapter 6 for further information. 

7.7 Travel Reimbursement Guidelines
The following guidelines are provided to assist in compliance with requirements to limit expense reimbursement to those costs that do not exceed FDIC travel reimbursement regulations.  The E-invoice file that Outside Counsel submits to FDIC for payment will not include receipts and supporting documentation.  However, for audit purposes, Outside Counsel must prepare an FDIC travel voucher for all travel relating to FDIC matters and the hard copy travel voucher along with original receipts and other supporting documentation must be maintained by the firm.  (See below for more information on preparing FDIC travel vouchers).  The E-invoice description must also contain detailed information about travel expenses as outlined below.

Eligibility for Reimbursement
To be entitled to travel reimbursement, you must be on a temporary assignment that is at least 50 miles in distance from either your office or residence.  If a temporary assignment concludes during the workday and is located within 100 miles of your office or residence, you are expected to return to your residence, rather than remain at the temporary location overnight.

Travel Authorization
You must ensure that all travel on behalf of the FDIC is necessary and approved by the Oversight Attorney.

Air Travel
Air travel should be in coach class only, unless you bear the cost of the difference between coach and business or first class.  Travel should be planned as far in advance as possible to take advantage of discounted fares, especially if reasonable certainty exists that the event will take place.  If a restricted fare is booked and you require a change, a reasonable exchange fee may be claimed. Special approval is required for international air travel.  Original receipts must be maintained in Outside Counsel’s files for audit purposes.  The E-invoice description must include the traveler’s name, ticket number, class of travel, date of travel, and price paid.

Rental Cars
No car larger than a mid-size should be rented, unless there are three or more passengers or a larger vehicle is necessary to transport equipment, files, etc.. Deviations from standard policy should be documented and maintained along with original receipts in Outside Counsel’s files.  The E-invoice description must include the traveler’s name, name of the rental car company, the rental company’s invoice number, the dates of rental, type of car, the number of passengers, miles driven, gas usage, and any other relevant information about the rental..  The FDIC will not reimburse you for Personal Accident Insurance (PAI) or Personal Effects Coverage (PEC).  The cost of Collision Damage Waiver (CDW) coverage is allowed if you do not have insurance coverage for collision damage.

Lodging
You should make use of government rates whenever possible. Any hotel expenses considered excessive or unreasonable will not be reimbursed.  Original receipts must be maintained in Outside Counsel’s files for audit purposes.  The E-invoice description must include the date, hotel name, type of room, type of rate charged.

Subsistence
On overnight travel status you may only be reimbursed on a per diem basis.  The current FDIC prorated per diem rates allowable are listed below. The current FDIC per diem rates allowable are listed in Section 16.0 of the Contractor Travel Reimbursement Guidelines. Specific per diem rates for different localities may be found on the General Services Administration (GSA) web site. Where the information contained on the GSA web site and FDIC Guidelines differs, the GSA web site controls. When you are on per diem, incidental expenses such as laundry and cleaning are considered to be covered by the per diem.

Per Diem for Overnight Travel
If travel extends into more than one calendar day, prorated per diem for partial days is required. One-fourth of the per diem allowance is payable for each quarter-day or fraction thereof:

If you depart from and/or return directly to your residence, per diem is allowed from the time of departure from your residence until the time of return to your residence. If departure is from and/or return is to your office, per diem is allowed from the time of departure from your official station until the time of return to your official station. Outside Counsel must provide start and return times with their supporting travel documentation to and from the time of departure from your official station until the time of return to your official station. Outside Counsel must provide start and return times with their supporting travel documentation to demonstrate the number of quarters of the per diem allowance they are entitled to receive.

Miscellaneous Meal Expense
If you are in non-overnight travel status and are away from your residence for at least 11 consecutive hours excluding mealtime, you may be reimbursed on an actual expense incurred basis with the meal cost limited to a $10.00 charge (receipt required) or $6.00 without a receipt. 

Long Distance Personal Calls
While on an overnight travel assignment, you may claim the actual amount incurred, not to exceed $3 per day, for personal long distance calls. This is in addition to per diem, if applicable. Itemize your calls on the Law Firm Travel Voucher.   The E-invoice description should include the date, phone number, and charges.

Use of Privately-Owned Vehicle
You may be reimbursed for use of your privately-owned vehicle while on FDIC-related business. The maximum reimbursement rate will be the rate stipulated by the IRS.

If you choose to use your vehicle in lieu of air travel, the maximum reimbursement will be the lesser of the cost of air travel or mileage reimbursement and the additional per diem, if any.  Appropriate documentation should be maintained in Outside Counsel’s files to show the actual cost of coach air travel compared to mileage reimbursement.

Taxicabs
The use of taxicabs is permitted while you are on official travel for FDIC. Reimbursement for taxicab fares (plus the customary 15% tip) is allowed.  The E-invoice description must include the traveler’s name, the name of the taxi service, the to and from location, the date, and the charge.  Original taxicab receipts must be maintained in Outside Counsel’s files for audit purposes. Taxi hire is appropriate when:

• Public transportation, airport limousine service, and/or hotel courtesy transportation is not available or when time or other factors make it impractical to use available public conveyances;
• Traveling between transportation terminals and your residence, hotel or office while on official travel status; or for
• Traveling from your residence to your office to depart on assignment requiring at least one night’s lodging, and from your office to your residence on the day you return from that trip.

Taxi fares for trips used to obtain meals will not be reimbursed.

Non-Reimbursable Travel Expenses
Examples of expenses that will not be reimbursed include the following:

• Alcoholic beverages, entertainment;
• Laundry, dry cleaning and pressing (covered by per diem reimbursement);
• Travel insurance;
• Parking fines;
• Gratuities and tips paid to service staff inside the lodging facility (covered by per diem reimbursement).
• Cost of travel for spouses, other family members, and friends is not allowable under any circumstances.

Travelers will not be reimbursed for excess costs caused by:

• An indirect route as a matter of personal preference;
• Premature departure for personal reasons from a temporary location; or
• Extending a stay for personal reasons.

Law Firm Travel Voucher Completion
After completion of travel, a Law Firm Travel Voucher must be prepared and maintained along with original receipts in Outside Counsel’s files for audit purposes. Indicate the purpose of travel on the first line. Dates and times of each departure from residence or office, arrival at the place of temporary assignment, and arrival at the office or residence must be shown on the Law Firm Travel Voucher - Word (see also the sample Travel Voucher).

Receipts
Except for per diem expenses, you must maintain valid original receipts with the Law Firm Travel Voucher for all travel expenditures regardless of cost. If a receipt is not normally provided for the expense (bus or subway token, etc.) the certification signed by the traveler on the Law Firm Travel Voucher will justify the expense.

Receipts attached to the Law Firm Travel Voucher should be originals indicating the name of the payee, date paid, amount, and the service rendered. This includes the original Passenger Receipt Coupon of the airline ticket. If an electronic ticket is used, the boarding passes for each flight must be attached to the Law Firm Travel Voucher.

Penalties  

7.8 FDIC E-invoice Review
E-invoice files should be submitted in a timely manner (refer to Section 7.2) and as directed in your referral letter or by your Oversight Attorney. Upon receipt, the FDIC Financial Specialist reviews the E-invoice and forwards it to the Oversight Attorney for review and approval.  The Oversight Attorney performs a substantive review of your E-invoice and approves it for payment. 

7.9 Reconsideration of Disallowances
You must submit all requests for reconsideration of disallowances by preparing a new E-invoice file for the amount to be reconsidered.  The new E-invoice file must have the original invoice number followed by the letter “R” along with justification for reconsideration.  The new E-invoice file should be submitted to the E-billing service provider within 90 days from receipt of notice of disallowance.  The request must include matter number, E-invoice number, and the amount disputed, along with justification for reconsideration (e.g., copies of missing documentation, narrative rationale).

7.10 Audit and Records Retention
Outside Counsel must permit the FDIC, the FDIC Office of Inspector General, the FDIC Legal Division's Risk Management Group, and the Government Accountability Office, or their representatives, to conduct audits or reviews of your FDIC billings, including previously paid Invoice Packages and/or E-invoices, receipts, and supporting documentation.

For purposes of subsequent audits, Outside Counsel must retain the following:

• Copies of all E-invoice file submissions (refer to Section 7.1);  
• Original receipts and underlying support documentation not submitted with the E-invoice file;
• Subcontractor invoices; and 
• Original or electronic time sheets and time and expense adjustment records.  Example of adjustment records includes documentation explaining differences between time sheet hours and invoices hours for billable individuals.

See the Record Retention Guidelines for Electronic Billing (Appendix C) for record retention requirements. The FDIC reserves the right to obtain additional information upon review of any E-invoice or underlying support documentation, including subcontractor invoices and electronic time sheets.

7.11 Frequently Asked Questions
Below you will find answers to questions often raised by Outside Counsel when submitting E-invoices.

May I have expert witnesses hired by my firm call you when they have questions about their payment?
No. Any expert or other entity hired or retained by your firm is a subcontractor and should address all payment questions to you. Their invoices are included as expenses in your E-invoice to the FDIC. The FDIC will not pay them directly.  Outside Counsel must maintain subcontractor invoices, receipts, and proof of payment in Outside Counsel’s files for audit purposes.

When should I submit an E-invoice?
On a monthly basis, if the total equals $500.00 or more. If your total is less than $500.00, submit your E-invoice quarterly, unless this causes undue hardship.

May I bill for clerical or secretarial overtime? 
No, unless such overtime is requested by the Legal Division or occasioned by an emergency situation created by the FDIC. In any case, the Oversight Attorney assigned to your matter must approve clerical or secretarial overtime.

I know I may bill the FDIC for extraordinary postage (e.g. bulk or certified mail). May I also charge for ordinary postage?
No.

What common mistakes should I avoid when submitting my E-invoice?
Make sure you use a different invoice number for each E-invoice you submit unless an E-invoice is rejected and you are asked to make mandatory validation rule changes.  If that happens the corrected E-invoice file should be submitted with the original invoice number.

Do not forget Outside Counsel must maintain all original receipts and other supporting documentation in Outside Counsel’s files for audit purposes.

Make sure your “billing from” and “billing through” dates do not overlap. For example, if an E-invoice covers the period from January 2 to January 16, a subsequent E-invoice should not cover the period from January 10 to January 29.

Be sure to itemize attorney and non-attorney fees separately. 

Our firm charges $0.10 per page for in-house photocopying. May I bill the FDIC for this amount?
No, the maximum charge is $0.08 per page.

What information do I need to include regarding fax and phone charges?
You need to include the date, phone number and charge for each call in the E-invoice description. The bill from the carrier must be retained in Outside Counsel’s files for three years after final payment for audit purposes.

What happens if the E-invoice is rejected by the E-billing service provider?
Outside Counsel will be notified that the E-invoice cannot be processed because certain mandatory validation rules were not met.  Outside Counsel must ensure the E-invoice meets all mandatory validation rules and the E-invoice should be resubmitted to the E-billing service provider.