It encompasses all expenses related to travel, external professional development activities and other related business expenses.

Transcription

1 Policy TITLE: TRAVEL AND RELATED EXPENSES POLICY STATEMENT: Red Deer College (RDC) recognizes the need for employees to travel on College business in the performance of their academic or administrative duties. It is understood that expenditures, while traveling on approved College business, shall be incurred in a cost efficient manner with due regard for accountability. PURPOSE: The purpose of this document is to set standards for booking all travel requirements including air transportation, ground transportation and accommodation and to establish standards to reimburse RDC employees for reasonable travel and related expenditures when conducting authorized College business. SCOPE: This Policy and the procedures associated with it apply to all employees and officers of RDC traveling on College business and professional development activities. It encompasses all expenses related to travel, external professional development activities and other related business expenses. PRINCIPLES: RDC is committed to protecting the legal and financial interests of the institution as well as the interests of its faculty and staff. This Policy is consistent with the laws of Canada and the Province of Alberta, with collective agreements in force with the bargaining units of the College, and with other policies in the College, the Asset Protection Policy EL-C3 in particular. DEFINITIONS: Administrative supervisor: exempt employee in a supervisory role. Business travel: Movement on official business of the College from one s normal place of employment to another destination, and return from there to one s normal place of employment. Includes professional development related travel for faculty and staff, paid from RDC funds or which involve RDC vehicles for transportation. Commuting between one s home and regular place of employment does not constitute business travel. Detailed receipt: A receipt provided by the vendor or supplier which itemizes the goods or services purchased, indicates the date, name of facility, amount of taxes charged and a total. Economy class without restrictions: The lowest air fare allowing advance seat selection at no extra cost. In-province travel: Travel within the Province of Alberta. Travel and Related Expenses Policy Page 1 of 11

2 Most economical mode of travel: The most practical mode of travel taking into consideration time of the traveler, impact on the productivity of the traveler, cost of transportation, allowances and subsistence required for the duration of a trip. Out-of-province travel: Travel to a destination outside the Province of Alberta. Senior leader: Exempt employee at the Dean/Director level and higher. GUIDELINES: 1. RDC reimburses all travel expenses necessarily incurred by employees of the College in performing work duties. 2. Employees are reimbursed for all applicable taxes charged on allowable expenses. Allowances are deemed to have Goods and Service Tax included in the amount. 3. When employees receive a discount or credit for travel that reduces the original travel cost, only the net expense may be claimed. 4. The selection of the mode of transportation shall be based on cost, duration, convenience, safety and practicality. PROCEDURES: I. General A. Authorization 1. College travel, including a destination, purpose, mode of transportation and an estimate of related expenses must be pre-authorized on an approved form by a: Direct administrative supervisor in case of out-of-province travel within Canada. Direct administrative supervisor and a respective Senior Leader in case of transborder and international travel. 2. Actual expenses are reviewed, reconciled to a pre-authorized trip budget and approved by the employee s administrative supervisor with signing authority or the respective professional development signing designate in case of professional development related expenses. 3. Signing authorities authorizing payment or reimbursement of expenses have the responsibility to ensure: Expenses were incurred and claims made in accordance with this and other applicable Policies. Actual expenses incurred for the trip are within the approved trip budget. Correct budget code is charged for the expenses. Documentation submitted is complete and will prove satisfactory to internal and external auditors. 4. Where members from the same department share an expense (e.g. meals or taxi fare), a member in the most senior position pays for the expense. Names of all attendees should be listed on the receipt. Travel and Related Expenses Policy Page 2 of 11

3 B. Receipts 1. A detailed receipt is required where a reimbursement claim is for an expense other than a stated allowance. 2. Original receipts are required to avoid duplicate payments and to ensure proper claiming of GST input tax credits. 3. Where the traveler certifies that the receipt was lost, accidentally destroyed or unobtainable, a personal declaration may replace the receipt. For all expenses in excess of $5.00 where original receipts are not supplied, a Lost Receipt Declaration form is completed and signed by the employee s administrative supervisor. C. Travel Advances 1. Where a cash advance is required to cover meals, taxi and incidental expenses, an approved payment request estimating the amount required needs to be received by Financial Services at least ten (10) working days prior to the intended departure. 2. Where an advance has been issued to the employee, the employee provides an approved expense claim to Financial Services within ten (10) working days following the applicable travel. 3. Where the amount of the advance exceeds expenses, the employee reimburses the College for the difference. A cashier receipt must be attached to the expense claim. Where expenses exceed the amount of the advance, the employee is reimbursed for the difference. D. Expense Claims 1. Travel preapproval form must be completed and approved before out-of-province travel is arranged and the trip commenced. 2. Employees will itemize by date all expenses using RDC Travel and Expense Claim and Trip Summary Report form, describing expenses in detail, including a purpose of the expense and persons or organizations visited. 3. The Travel and Expense Claim and Trip Summary Report form must be completed and submitted to Financial Services within one (1) month following the event or return date, or by June 30, whichever comes first. E. Travel Outside of Canada 1. RDC pays all costs associated with visas, exit fees and recommended inoculations for international travelers. The cost of obtaining a valid passport is the responsibility of the individual traveling and is not reimbursed. 2. Expenses related to travel outside Canada are paid on the basis of: Actual cost in Canadian dollars evidenced by credit card statements. Cost to buy related foreign currency, evidenced by bank receipt. Travel and Related Expenses Policy Page 3 of 11

4 In the absence of evidence of exchange rate used in the transaction, an appropriate rate is determined based on published exchange rates for dates during which travel occurred. F. Allowances 1. Allowances cover daily travel expenses related to the College business for the use of one s personal vehicle and incidental expenses. 2. Allowance rates are regularly reviewed and revised as needed. Schedule of the current rates is outlined in the Appendix B to this Policy. 3. An incidental allowance on a per night basis is provided for overnight trips to cover expenses such as laundry, local telephone calls, tips and gratuities. 4. For the purpose of mileage reimbursement, it is deemed that the place of departure and return is the employee s normal place of employment. 5. Travelers claiming incidentals in a foreign country are reimbursed in Canadian dollars at a Canadian rate. G. Emergencies, Illnesses and Injuries Reasonable and necessary costs incurred as a result of an illness or accident occurring while in travel status can be claimed as an expense when the costs are: Proven to be additional to costs normally incurred when not travelling. Not otherwise payable to the employee under an insurance policy or other authority. H. Combining Business and Personal Travel 1. When personal activities and family travel are combined with business travel, the College only pays expenses: Based on the most economical method of travel. Related to the business activities associated directly with the College. Related to the days associated directly with College business. Related to the employees of the College authorized to travel on this trip. 2. Air travel expenses are reimbursed according to the following standards: If the stay at a business location is extended either prior to or after the business mission, the entire ticket may be reimbursed. If any other destination that does not pertain to the business purpose is included on the ticket, other than normal connecting airports, reimbursement is at the lower of: a) The actual cost, and b) The cost to/from the business destination. An expense claim needs to include a written quote obtained prior to the travel, at the time the airfare is purchased. Travel and Related Expenses Policy Page 4 of 11

5 I. Travel Incentive Program 1. Provided that there are no additional costs to the College, employees travelling on College business can join loyalty programs. Travel incentive points earned by employees while traveling on College business may be retained by the employee for personal use; however, employees may not select one carrier versus another to obtain points if the result is a higher fare. 2. RDC does not reimburse employees for the value of travel vouchers or incentive points used to pay for business travel. J. Interpretations and Non-Compliance 1. The Chief Financial Officer provides a definitive interpretation of the application of this Policy. 2. Expenses resulting from misinterpretations of procedures or mistakes are individually reviewed and assessed for eligibility by the Chief Financial Officer and decision communicated back to the claimant and the respective senior officer. 3. Expenses resulting from non-compliance with this or any related policies are not eligible purchases and RDC is not responsible for the payment. If non-compliance is determined after the payment is made by the College, the person who incurred the cost is responsible for reimbursing the College for the related amount. 4. When external granting agency regulations differ from RDC policies and procedures and the funding agreement explicitly requires that their regulations apply to all activities, the agency s regulations take precedence. 5. A consistent pattern of non compliance with any part of the Policy and associated procedures, observed by Financial Services, is addressed in a progressive manner and may result in disciplinary action up to and including dismissal. II. Travel Management 1. RDC has contracted with a preferred travel agency to provide travel services. It is expected that these travel services be utilized when arranging College travel related to business and professional development. 2. The travel agency will arrange air travel, hotel and car rentals and will maintain confidential traveler profiles on all College business travelers to facilitate future travel arrangements. 3. The confidential traveler profiles will be used by the travel agency to collect and regularly update relevant information as an element of the College s risk mitigation strategy. 4. The College s credit card will be utilized for all air travel booked through the travel agency and will be expensed to the appropriate budget code (FOAP). Refer to Appendix A for details on the preferred travel agency and for booking travel arrangements. Travel and Related Expenses Policy Page 5 of 11

6 III. Transportation A. Air Travel The standard for air travel is economy class without restrictions by the most direct route. Bookings should be made as far in advance as possible to take advantage of lower fares. Advance seat selection is encouraged to ensure seat availability at the time of travel. B. Ground Transportation It is recommended that RDC employees use either College or rental vehicles, as opposed to using their personal vehicles, when traveling out of town on College business or to attend a professional development activity and when ground transportation is the most economic mode of transportation. Insurance 1. College vehicles are covered by the College s insurance policy. All incidents (including vandalism, hit and run and accidents) involving College-owned vehicles, regardless of the amount of damage, must be reported to: RDC Purchasing in addition to Any required contact with local law enforcement in the jurisdiction of the accident. 2. When renting vehicles for College business in Canada or USA, employees are not required to purchase additional liability and collision insurance offered by the rental agencies as the College s insurance policy extends to rental vehicles. Proof of insurance can be obtained prior to the trip through Financial Services. 3. In the case of an accident in either College or rental vehicles, the respective department is responsible for any deductible amount. 4. Employees renting vehicles outside of Canada and USA are required to purchase rental insurance. RDC recommends a $2 million liability and non deductible collision damage coverage (CDW). 5. Where personal travel is combined with business travel, College s insurance covers only rental periods directly associated with the College business travel. 6. Employees using their personal vehicle on college business are responsible to advise their insurance company of the exact nature and extent of College business travel, as their personal insurance is required to assume responsibility for coverage in the event of an accident. The College does not assume any responsibility for: Any additional liability/damages coverage required for vehicle use on College business. Reimbursement of deductible amounts related to insurance coverage. Increase in insurance premiums following an accident. Travel and Related Expenses Policy Page 6 of 11

7 College Vehicles 1. College-owned vehicles are available to all RDC departments for business purposes and not for personal use. 2. The vehicles are booked through Materials Management on a first come first serve basis, using the Vehicle Requisition form and following the procedures outlined on the form. 3. The college reimburses users for fuel and other related expenses (car wash, windshield washer fluid etc.) with the submission of an expense claim and original itemized receipts. Rental Vehicles 1. RDC reimburses the employee for the actual costs incurred in renting a vehicle that is appropriate for the circumstances. In most cases, a maximum of a full-size vehicle will be considered appropriate. Fuel costs are reimbursed with receipts (Refer to the section I.B. General, Receipts for receipt requirements). 2. It is recommended that car rental reservations are arranged in following manner: Out-of-province travel - through the College s travel agency of choice. In-province travel - through a local car rental agency. Personal Vehicles Where a personal vehicle is used (use of College or rental vehicles is preferred), it is recommended only for in-province business and professional development related travel. 1. A travel allowance (kilometer rate) is provided to cover the cost of fuel, wear and tear, registration and insurance for the use of the personal vehicle while on College business. 2. Employees using their personal vehicles for in-province business travel are reimbursed for the expenses at the kilometer rate effective at the time of travel (for current rates refer to the Appendix B). 3. When employees elect to drive their personal vehicle for out-of-province business travel, they are entitled to reimbursement of the mileage at a rate equivalent to 40% of the current regular mileage rate. This reduced rate applies: To the total distance travelled (departing from and returning to the main RDC campus). For the duration of the trip in relation to the College business (including use of one s vehicle at the business destination). To a maximum of $ Mileage log is to be kept and submitted with the expense claim for reimbursement. This limitation specifically excludes reimbursement of any unrealized expenses, such as airport parking fees, etc. Travel and Related Expenses Policy Page 7 of 11

8 Reimbursement for meals and accommodation expenses under this option is limited to expenses related only to the business activity at the destination. 4. Mileage log needs to support all claims for reimbursement of expenses for the personal vehicle use, unless the pre-set allowance amount is claimed (refer to the Travel and Expense Claim Procedures for the Ground Travel Chart and pre-set amounts to select destinations). 5. Employees are reimbursed for cost of parking with receipts. Expenses for towing, traffic and parking violations are not reimbursed. 6. Employees traveling to an airport are reimbursed for one round trip and the actual cost of parking while on College business. Employees that are being dropped off and picked up at the airport are eligible to claim only one round trip. Public Transportation (taxi, bus, train, ferry) 1. The College reimburses expenses related to use of public transportation where this is deemed necessary for the performance of College business. 2. Using their best judgment, employees traveling on College business select the most cost effective mode of public transportation appropriate for the particular situation. IV. Accommodation 1. It is recommended that reservations are made for the business traveler by the College s travel agency of choice, ensuring that RDC has secured discount rates with the selected hotel. 2. Employees traveling on College business are reimbursed for the reasonable cost of accommodation associated with that business, with the submission of original detailed receipts. 3. Expenses such as mini-bar charges, hotel movie rentals and/or gym admissions are not reimbursable expenses. V. Meals 1. Employees traveling on College business are reimbursed for the actual meal expenses with the provision of original detailed receipts. 2. A maximum reimbursement for food and beverage cannot exceed $75 per day, with the cost of one single meal not exceeding $45, inclusive of taxes and gratuities to a maximum of 15%. For the purpose of assessing the daily maximum, expenses in foreign currency, when incurred in USA, are not converted to Canadian dollars. E.g. daily maximum in US would be Canadian equivalent to $75 USD. Maximum meal expenses in other countries and currencies are determined based on the most recent National Joint Council Rates. Travel and Related Expenses Policy Page 8 of 11

9 3. Other than as stipulated in the Hosting Policy, no alcohol can be expensed while traveling on College business. 4. An employee is allowed to claim meal expenses as follows: Breakfast, if time of departure for the activity is earlier or time of return is later than 7:30 a.m. Lunch, if time of departure for the activity is earlier or time of return is later than 1:00 p.m. Dinner, if time of departure for the activity is earlier or time of return is later than 6:30 p.m. OFFICER RESPONSIBLE: VP College Services RECOMMENDING AUTHORITY: Service Council CONSULTATION FOR REVIEW: Deans Council POLICY REVIEW DATE: July 2013 EFFECTIVE DATE: January 1, 2016 REVISION HISTORY: February 1, 2001 June 1, 2006 November 1, 2010 January 1, 2016 RELATED POLICIES: Hosting and Business Expenses CONNECTION TO BOARD POLICIES: All RDC policies support relevant Board of Governors policies. Travel and Related Expenses Policy Page 9 of 11

10 Red Deer College s Preferred Travel Agency Red Deer College s travel agency of choice is UNIGLOBE Beacon Travel. UNIGLOBE Beacon Travel will arrange air travel, hotel and car rentals in accordance with Red Deer College s Travel Policy. UNIGLOBE will maintain confidential travel profiles on all College business travelers to facilitate future travel arrangements. RDC is serviced out of UNIGLOBES s Calgary office located at: 1400 Kensington Rd NW, Ste 200 Calgary, AB, T2N 3P9 For contact and other information, visit The Loop > Services > Financial Services. Travel and Related Expenses Policy Page 10 of 11

11 Allowances (in CAD) Use of private/personal vehicle in-province; kilometer rate $0.50 Use of private/personal vehicle out-of-province; kilometer rate $0.20 applied to the total distance travelled (departing from and returning to the main RDC campus) Incidental allowance per overnight stay $10.00 The Policy states: When employees elect to drive their personal vehicle for out-of-province business travel, they are entitled to reimbursement of the mileage at a rate equivalent to 40% of the current regular mileage rate. This reduced rate applies: o o To the total distance travelled (departing from and returning to the main RDC campus). For the duration of the trip in relation to the College business (including use of one s vehicle at the business destination). o To a maximum of $ Travel and Related Expenses Policy Page 11 of 11