Directives

Purpose

This policy sets forth the guidelines for allowable travel, meal and hospitality expenses to ensure the expenditure of College funds is properly authorized and supports College business, initiatives and goals and is of an appropriate standard.

Scope

This policy applies to all College employees, Board of Governors members, appointees, volunteers, and all consultants and contractors engaged by the College.

Definition

Broader Public Sector (BPS) Organizations:

Broader Public Sector organizations include those organizations who receive government transfer payments to provide services to the public. These include: colleges, universities, school boards, hospitals, long-term care facilities, community care access centres and children’s aid societies.

Hospitality:

The provision of food, beverage, accommodation, transportation and other amenities to people who are not engaged to work for the College, any other Broader Public Sector (BPS) organizations, or any of the other Ontario government ministries, agencies or public entities.

Meeting Expenses:

The provision of food, beverage, transportation, room rental and other related expenses to College employees, any other Broader Public Sector (BPS) organizations, or any of the other Ontario government ministries, agencies or public entities for business purposes.

Light Refreshments:

Includes beverages such as coffee, tea, bottled water, juice or soda, and food items such as fruit, cookies, pastries or chips when not served as part of a meal.

Original, Itemized Receipt:

A document from the vendor itemizing the goods and/or services received, and the cost per unit of each good and/or service. A “tear-tag” showing the total charge is not considered a receipt. Credit card and charge slips are only considered a receipt if they provide the detailed itemization mentioned above.

Policy

1.   Rules and procedures surrounding expenditures and employee reimbursement of expenses are based on four principles:

a.    Accountability. All travel and expense claims submitted by employees, or expenses incurred by the College must be the result of College business activity.

b.    Transparency. All rules and policies surrounding travel, meals and hospitality and employee reimbursement for these expenses are available to employees and the public on the College web site. http://www2.algonquincollege.com/directives/working-ac/

c.    Value for Money. College funds must be used prudently and safeguarded. All expenses incurred must be in support the College’s objectives, must be economical with due regard for health and safety, and must have appropriate approvals before being spent.

d.    Fairness. Legitimate and authorized expenses incurred by employees while on College business will be reimbursed. An employee should not incur a financial loss as a result of providing authorized College business.

This policy aligns with the Broader Public Sector Expenses Directive, issued by the Management Board of Cabinet. http://www.fin.gov.on.ca/en/bpssupplychain/documents/bps_expenses_directive.html

2.   EMPLOYEE REIMBURSEMENT

2.1   Employees must obtain approval from the appropriate authority before incurring any expenses on College business. Authority levels are outlined in Appendix 4: Accountability and Signing Authorities.

2.2   Employees seeking reimbursement for expenses must provide original, itemized receipts for all items being claimed.

2.3   Employees approving expense claims must ensure that the expenses being claimed are the result of approved College business and that all original, itemized documentation is present before providing an authorizing signature.

2.4   Employees cannot approve their own expenses. Approval at the next, higher level must be obtained before the claim can be processed.

2.5   In situations where expenses are incurred for a group of employees, only the most senior person present at the event may make a claim for the expenses.

3.   TRAVEL

3.1   The College will pay legitimate travel expenses of persons travelling on College business. Travelling expenses are allowed for the employee only. Any share of expenses applicable to the employee’s spouse or other relatives shall not be reimbursed.

3.2   Whenever possible, travel will be arranged for the day of the meeting/appointment and all associated costs incurred, while on College business, will be of the most economical means available.

3.3   It is intended that College staff members shall be afforded travel and accommodation which are comfortable and of good quality, but neither sumptuous nor substandard.

3.4   The Travel and Advance Authority form must be completed and signed by the appropriate authorities before any expenses are incurred. All travel allowances as stipulated in this policy are in terms of Canadian currency unless otherwise stated.

3.5   Travel advance overpayments are considered a debt owing to the College and any overpayment will be deducted from the employee’s pay, or if the employee has left the College, the employee will be billed for the amount owing.

4.   EXCEPTIONAL CIRCUMSTANCES AND PER DIEMS (pending approval from the Ontario Broader Public Sector Supply Chain Secretariat of the Ministry of Finance)

4.1   Employees may claim per diem expenses, without receipts, in some exceptional circumstances. These include when an employee is travelling internationally due to fulfilment of a contract with an external agency or organization (the agency or organization cannot be the recipient of public funds). Other circumstances include other international travel where receipts are not easily available. In these cases, a per diem may be granted to the employee at the discretion of the appropriate Vice President; written approval for per diems must be obtained and submitted with the expense claim. Per diems should be set in accordance with the meal rates outlined in the Treasury Board of Canada Travel Directive (appendices C and D) which can be found at: http://www.njc-cnm.gc.ca/directive/travel-voyage/index-eng.php

5.   HOSPITALITY

5.1   Hospitality expenses are limited to the provision of food, beverage, accommodation, transportation and other amenities provided to people who are not engaged to work for the College, any other Broader Public Sector (BPS) organizations, or any of the other Ontario government ministries, agencies or public entities.

5.2   Hospitality may only be provided when it does not obligate, appear to obligate or inappropriately influence the recipient and is provided in support of the College’s initiatives and goals.

5.3   Hospitality events should use College-owned facilities whenever available and appropriate. Off-site hospitality events (including those in private residences) must be approved, in writing, by a member of the President’s Executive Committee.

5.4   Hospitality does not include office social events, staff holiday parties/lunches, flowers, donations, gifts, or memorials. These expenses will not be reimbursed.

5.5   Contractors and consultants are not eligible for hospitality expense reimbursement.

6.   ALCOHOL

6.1   Alcohol can only be served at hospitality events when prior, written approval has been obtained from the President.

6.2   If a department of the College deems the service of alcohol to be integral to their business (such as the service of alcohol at events promoting some hospitality programs), the department may apply for special status that would allow the Board of Governors to approve the service of alcohol at hospitality events for the academic year. Special status would have to be requested and approved annually. Only the Board of Governors can grant approval for special status.

6.3   The serving of alcohol must be done in a responsible manner (food must also be served).

6.4   The department hosting the event is responsible for obtaining any required liquor licenses and complying will all Federal and Provincial laws.

6.5   Alcohol cannot be claimed as a meeting expense, or as part of travel meal expenses.

6.6   Employees will not be reimbursed for alcohol served or consumed at events in which only College employees, Broader Public Sector (BPS) organizations, and any of the other Ontario government ministries, agencies or public entities are present.

7.   MEETING EXPENSES

7.1   Meeting Expenses are allowed when the meeting is due to College business and the meeting is not a regularly scheduled departmental meeting. Other examples of meeting expenses include activities and events provided to College staff and/or other BPS employees which advance the College’s strategic directions, or staff professional development events.  All meeting expenses require prior written approval by the appropriate supervisory staff member.

7.2   The College may also provide support including meals and refreshments when hosting staff from other institutions, including BPS agencies and provincial ministries or agencies, during discussions or conferences on issues of mutual interest and/or cooperation  that seek to further either institutional or governmental objectives. Such expenses may be claimed as meeting expenses provided approval is obtained from the appropriate Vice-President.

7.3   The President may also approve College-wide events for business purposes or where the event is considered desirable as a matter of protocol or courtesy.

7.4   Meeting Expenses do not include office social events, staff holiday parties/lunches, flowers, donations, gifts, or memorials. These expenses will not be reimbursed.

7.5   Meals served to employees as part of a meeting are only allowable in cases where the meeting falls over a regular meal period and the meeting could not be accommodated at any other time. If an employee submits a claim for reimbursement of meeting expenses, original, itemized receipts must accompany the claim as well as proof of the business nature of the meeting, such as the agenda from the meeting.

7.6   Light refreshments may be served at staff-only meetings where the meeting is in excess of 2 hours, or when the meeting involves non-staff members.

8.   GIFT GIVING

8.1   Appropriate token gifts of appreciation may be offered in exchange for gifts of service or expertise to people who are not engaged in work for the College. Cash and gift cards cannot be given as token gifts, and appropriate receipts must accompany any claim for reimbursement.

9.   FAILURE TO ADHERE TO POLICY

9.1   Should an employee fail to adhere to the Travel, Meals and Hospitality Policy, the supervisor of the employee will take appropriate corrective action. If necessary, written notification from Financial Services will be issued to the employee and their supervisor. Other actions may include the review of the employee’s authorization to travel.

9.2   If an approver exercises discretion in making an exception to this policy, in order to ensure proper record keeping for audit purposes, written documentation detailing the exception must be made by the claimant and signed by both the approver and the appropriate Vice President, or President, as appropriate, and must accompany the claim.

9.3   Since expenses are subject to audit, ineligible expenses identified through audit shall be reimbursed to the College by the claimant.

Procedure

These are the steps to be followed before, during and after travel and for non-travel related expense reimbursement:

1.    Before Travel

1.1    Travel and Advance Authority

For the employee travelling:

1.1.1    Complete the Travel and Advance Authorization form prior to incurring any expenses if the expected cost of travel is in excess of $250. If the expected cost is less than $250, completion of the Travel and Advance Authorization form is still recommended.

1.1.2    Ensure all necessary approvals have been completed prior to travel. Additional approvals may be required for out of province and/or out of country travel. See Appendix 4 for listing of required approvals for specific geographic regions.

1.1.3    Travel advance requests must not exceed the estimated amount of the proposed travel being approved and will not be less than $400.00. All travel advances will be issued as a cheque in Canadian funds.

1.1.4    If a travel advance is being requested, the Travel Advance and Authority form must be submitted, complete with all approvals, a minimum of 5 working days before the advance is required in order to produce a cheque. Travel advances for Perth and Pembroke staff will be sent through the College mail system for delivery.

1.1.5    A second travel advance will not be issued while any other travel advance for the same employee remains outstanding.

1.2    Air / Train Travel Tickets

For the employee travelling:

1.2.1    Travel will normally be by the most economical class. Employees travelling on College business on flights longer than 6 hours are permitted to travel business class. Tickets purchased through the College’s preferred travel agency will be emailed directly to the employee.

1.2.2    All arrangements for air/train travel can be made directly with the College’s preferred travel agency. The preferred travel agency will bill the College directly for these costs.

1.2.3    Travel arrangements may also be made by the employee, with their manager’s approval, by using online services such as Expedia.ca or by contacting the airlines such as Porter, Westjet, or Air Canada directly. Employees are encouraged to use their department’s Procurement Card to pay for tickets, but may use their own personal credit card and submit a travel expense claim for reimbursement.

1.2.4    The airline/train ticket receipt (boarding pass) must be included in the Travel Expense Claim submission.

1.3    Travel by Vehicle

1.3.1    Employees are encouraged to rent a vehicle under the College’s name rather than use their own vehicle when travelling on out of town trips.   A general rule of thumb is to rent a vehicle if travelling more than 200 kilometres.

1.3.2    Employees travelling together or to the same destination will share automobiles where practical.

1.3.3    A list of preferred vehicle rental agencies is available from Purchasing. Arrangements can be made through the College’s preferred travel agency, Purchasing, or directly with the College’s preferred vehicle rental agency.

1.3.4    When renting a vehicle for College business travel, employees must ensure that they rent the vehicle under the name, “Algonquin College of Applied Arts and Technology” and not the employee’s name. This ensures that the College’s commercial insurance policy provides coverage.

1.3.5    No vehicle rental insurance should be purchased from the vehicle rental agency when travelling on College business.

1.4    Travel Insurance

1.4.1    The College’s extended health care plan provides limited out of country coverage for hospital and medical expenses.  Employees travelling outside of Canada on College business are strongly encouraged to purchase additional out of country health insurance.  The College will reimburse the cost of the premiums for such coverage if supported by appropriate receipts.

1.4.2    Trip cancellation insurance will be covered by the College, but does not include change of mind.

1.5    Accommodation

1.5.1    Accommodation will be the most economical (Government or Corporate rate where available).

1.5.2    Accommodation arrangements can be made through the College’s preferred travel agency.

1.5.3    Hotel guarantees will be billed to the College’s corporate credit card, or to the traveller’s personal credit card.

1.5.4    Non-College employees travelling on College business should be provided with a letter from the travel approver indicating that they are travelling on College business and are entitled to receive the Government or Corporate rate where available.

1.5.5   Private accommodation with relatives or friends may be arranged by the employee travelling. An allowance of $25.00 per night may be claimed in lieu of a charge for commercial accommodations, provided the funds are used for a gift, or token of gratitude for your host. Instead of a receipt, you must submit a written explanation describing the purpose of your trip, identifying the host and the number of days you stayed.

2.    During Travel

2.1    Meals

2.1.1    Meals taken during travel will be reimbursed to a maximum amount per meal. All claims for meals must be accompanied by an original, itemized receipt. The maximum amounts per meal are not per diem rates. Only meals taken and supported by an original, itemized receipt will be reimbursed.

2.1.2    Maximum meal rates are:

• Breakfast period $12.00
• Lunch period $15.00
• Dinner period $33.00

2.1.3    There may be extenuating circumstances where it may not be possible to purchase a meal within the limits above.  In these situations, the employee’s supervisor may approve reimbursement for a meal greater than the meal rates above.

2.1.4    Where meals are included in the transportation fare, or in the cost of registration fees, no claim for meals may be made.

2.2    Incidental Expenses

2.2.1    For each full day of travel, an employee may claim up to $6.00 for incidental expenses such as gratuities, laundry, dry cleaning, etc. This is not a per diem rate, only expenses incurred and supported with an original, itemized receipt up to the daily maximum rate will be reimbursed.

2.3    Telephone

2.3.1    Long distance phone calls should be of a reasonable duration and frequency kept to a minimum.

3.    Foreign Travel

3.1    Claims for expenditures in foreign currency are to be reported in the local currency and converted to Canadian dollars. Exchange rates are available on the Bank of Canada web-site.  Expenditures made by credit card will be converted on the credit card statement.  For travel outside Canada and the United States, the actual cost of meals and incidentals shall be claimed. Such claims must be substantiated, where possible, by receipts and shall not be unreasonable.

4.    Hospitality While Travelling

4.1    It is recognized that at times it is necessary to entertain clients. Employees are expected to apply a common sense approach with a view to minimizing these expenditures. Supporting documentation is required for employee reimbursement.

4.2    Hospitality cannot be claimed for consultants, contractors or other Broader Public Service employees.

5.    After Travel

5.1    Travel Expense Claim Form

5.1.1    Complete the Travel Expense Claim Form for reimbursement of allowable expenses. This form must be completed if expenses are being claimed, or if a travel advance was issued to the employee.

5.1.2    The Travel Expense Claim form must be submitted within 5 working days of the completion of the trip.

5.1.3    Original, itemized receipts (including Boarding Passes) for all expenses being claimed must be submitted with the Travel Expense Claim Form.

5.1.4    The Travel Expense Claim must be approved according to the Signing Authority Chart in Appendix 4 prior to submission to Finance for payment.

5.1.5    Approvers of Travel Expense Claims must ensure that claims are for legitimate business expenses only and are in compliance with this policy, including all required documentation to support the claim (original, itemized receipts).

5.1.6    An employee cannot approve his/her own expense claim. The employee must obtain approval from the next, higher level of signing authority as outlined in the Signing Authority in Appendix 4.

5.2    Travel Advance Overpayment

5.2.1    Any travel advance overpayments are considered a debt owing to the College. The overpayment will be deducted from the employee’s pay by the payroll department, or, if the employee has left the College, the employee will be billed for the amount owing.

6.    Non-travel Related Expense Reimbursement

6.1    The employee is to complete the Small Dollar Employee Reimbursement form. Only claims under $250.00 will be processed. All forms must be complete with authorizing signatures and original, itemized receipts for all items being claimed and sent to Payroll. Required authorizations can be found on the Signing Authority Chart in Appendix 4 of this document.

6.2    Approvers of small dollar reimbursements must ensure that the expenses incurred were the result of College business and that all original, itemized receipts supporting the claim are present. Approvers cannot approve their own expenses, in these situations approval must be obtained from the next higher level.

6.3    Payroll will process all complete claims. Reimbursement will be processed only through the payroll system.

Supporting Documentation

Appendix 1      Travel and Expense Claim Summary

Appendix 2      Chart of Distances

Appendix 3      Kilometrage Reimbursement Rates

Appendix 4       Chart of Accountability and Signing Authorities

Appendix 5      Forms in Support of Travel, Meals and Hospitality

Related Policies

Purchasing Policies and Procedures Manual

Related Materials

Broader Public Service Expenses Directive:

http://www.fin.gov.on.ca/en/bpssupplychain/documents/bps_expenses_directive.html

Broader Public Service Procurement Directive:

http://www.fin.gov.on.ca/en/bpssupplychain/documents/bps_procurement_directive.html