(a) General. Travel costs are the expenses for transportation, lodging, subsistence, and related items incurred by the employees of the recipient or subrecipient who are in travel status on official business of the recipient or subrecipient. Such costs may only be charged to a State or federal pass-through grant based on an adopted policy by the recipient’s or subrecipient’s governing board. Absent a policy, the recipient or subrecipient must follow the rules of the Governor’s Travel Control Board or the Higher Education Travel Control Board, whichever the granting agency follows. No policy can exceed federal travel regulations.
     (b) Lodging and subsistence. Costs incurred for travel, including costs of lodging, other subsistence, and incidental expenses, must be considered reasonable and otherwise allowable only to the extent such costs do not exceed charges normally allowed by the Governor’s Travel Control Board or the Higher Education Travel Control Board, whichever is the appropriate travel board. If the recipient or subrecipient does not have an adopted travel policy, the recipient or subrecipient must follow the rules of the Governor’s Travel Control Board or the Higher Education Travel Control Board, whichever the granting agency follows. No policy can exceed federal travel regulations.