KING'S UNIVERSITY COLLEGE Finance Department. A Guide for Faculty to Funding at. King's University College

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1 KING'S UNIVERSITY COLLEGE Finance Department A Guide for Faculty to Funding at King's University College Updated September 2008

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3 Table of Contents Introduction... 1 Professional Development Fund... 2 Computer Fund... 3 Example I Computer Purchase... 3 Travel and Conference Funding... 4 Research Grant Funding... 6 Fiscal Year... 7 Example I Material Purchases... 7 Example II Conferences/Travel... 8 Example III Materials Purchases... 8 Claiming Expenses... 9 Supporting Documentation Requirements Travel Advances Foreign Currency Expenses GST Rebates Example I Book Purchase Example II Hotel Receipt Part Time Faculty Members Additional Tips Contacts Endnotes... 14

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5 Introduction This manual answers some of the most commonly asked questions that the Finance Department receives about claiming expenses using Professional Development (PDF), Computer (CF), Travel and Conference (T&C) or Internal Research Grant (RG) Funding. Within you will find information regarding documentation requirements, foreign currency transactions, accounting considerations, how to make a claim and how to get the most out of your funding within each fiscal year. Please refer to this manual first if you may have questions regarding the eligibility or reimbursement of expenses that you wish to claim using any one of these sources of funding. This manual serves as a guideline for processing of reimbursements. It does not supersede or alter the negotiated documents. The Salary and Benefit document has been negotiated by representatives of the Faculty Association and any questions or concerns about the content within should be addressed to the Faculty Association directly. 1

6 Professional Development Fund In order to provide a context for the preceding information, it is important that you become familiar with the negotiated agreement between King's University College and Faculty Association. The paragraph pertaining to professional development funding can be found in section X of the , Faculty Association Salary Agreement. The section outlines expenses that may be claimed as well as available funding and is as follows; The College shall provide funds for the professional development of each full-time member of faculty. This Professional Development Fund provides assistance to full-time faculty members to attend meetings of Learned Societies, equivalent conferences or programmes of professional development, to purchase books and for other research-related expenses. In the case of travel to conferences and professional development programmes, this fund may be applied to conference fees; the lesser of return economy airfare or automobile expenses reimbursed at the rate applicable at the time; hotel convention rate; and a food allowance (not more than 50% of the hotel convention rate). Prior approval of the Department Chair and Academic Dean is required for travel expenses only. Receipts for travel and hotel expenses, books and research tools are required. All expenses are understood to be net of any GST rebate available to the College. The Professional Development Fund will be available each year and will be made for the period May 1 to April 30 of each year and will lapse as of April 30th each year. For the Professional Development Fund available for each full-time member of faculty shall be $2,148. For the Professional Development Fund available for each full time member of faculty shall be $2,220. In order to maintain the validity of the PDF and CF, expenses must be related to one s role at the College or research agenda. Receipts for items of a personal nature or related to business external to College operations will be returned to the individual without reimbursement. Please note that unused funds expire at the end of the fiscal period. Expenditures related to events or receipt of items which occur after the fiscal year end will be attributed to the fiscal year s PDF in which the event or receipt occurs regardless of actual payment date. 2

7 Computer Fund So as to facilitate the purchase of a computer or computer equipment a Computer Fund has been included within the Salary Agreement. The College shall provide an Information Technology Fund from which computer hardware will be provided for full-time faculty. The funds granted any full-time faculty member under this clause shall neither exceed $520 per year, nor $1,560 in any prospective three-year period. The special three-year provision within the clause allows eligible faculty members the opportunity to borrow money from future fiscal years and available CF to make their purchase without using up PDF for the current fiscal year in order to do so. Example I Computer Purchase Computer and operating software purchase made in this fiscal year for $2000, which is over the current year $520 CF limit. Provided that this purchase meets all of the requirements discussed as it pertains to the fiscal year and physical ownership (see Fiscal Year), the purchaser may draw on this year s funding as well as the funding for the next two years. Computer Fund Year Amount $ $ $520 Total available in current year $1560 Amount needed from PDF to cover remainder $440 Total reimbursed to Faculty Member $2000 Once computer funding has been drawn from future years you will not have computer funding available to you until the fiscal year after the last for which you spent the funds. In the example above that year would begin May 1, 2011 ( fiscal). Please note that unused Computer Fund allotments are not carried forward and expire at the end of the fiscal period. 3

8 Travel and Conference Funding When making travel arrangements, "value for money" considerations must be paramount. Careful consideration of costs, mode of travel, travelling time and convenience will realize the most economical and effective use of all resources. In order to further assist you in your academic activities, King's University College will reimburse travel and conference expenses at which you are chairing or presenting a paper. As per Section XIII A of the , Faculty Association Salary Agreement, In addition to the Professional Development Fund, there will be an additional fund from which all reasonable travel expenses (limited to three days attendance in Canada and the United States) or partial expenses for trips abroad, will be reimbursed in the cases of full-time faculty members chairing a session or presenting a paper at a learned society. Prior approval of the Department Chair and Academic Dean is required, as are receipts for travel and hotel expenses. The amount of this fund for shall be $106,000 and in the amount shall be increased by CPI. The funds granted any full-time faculty member under this paragraph shall not exceed $6,500 in any two-year period, subject to availability. The maximum amount allowed per conference shall be $2,500. For these amounts will be increased by CPI. Below is the typical course of events that follows the approval of your Department Chair as well as that of the Academic Dean for the conference you wish to attend. 1. Submit any expenses incurred pre-conference to the Office of the Academic Dean for approval. For example, expenses related to flights or conference registration. Note that booking hotel reservations do not typically result in a charge to your credit card, however should an expense arise, you may wish to include this with your claim. Once approved, your request will be forwarded to Accounts Payable for reimbursement normally within 15 days of valid submission. 2. Before leaving on your conference you should become familiar with the King's University College Board of Director s Procedure for Travel Reimbursement 1. Please pay particular attention to the limits and restrictions that are applied to meal expenses while traveling. 4

9 3. Attend the conference. Be sure to obtain all original receipts relevant to the conference you are attending. 4. Upon your return, submit all relevant expenses as well as supporting documentation to the Office of the Academic Dean for final approval. Once approved, your request will be forwarded to Accounts Payable for reimbursement within 15 days of valid submissions. If you have any questions regarding T&C Funding available to you or your current active balance, please contact the Manager of Administrative Affairs in the Academic Dean s Office at extension 4304 or ejacob@uwo.ca. 5

10 Research Grant Funding Internal Research Grant Funding is available to full-time members of Faculty as per Section XIV of the , Faculty Association Salary Agreement, The College shall provide research funds, exclusive of computer costs, to be distributed by the Academic Dean on the recommendation of the Research Grants Committee of Faculty Council. It is agreed that in the amount will be $106,000 and in the amount will be increased by CPI. The funding limit on individual projects will be $2,550 in and will increase by CPI in An additional $500 per project may be paid above these limits based on availability of funds in the total research fund. Please review the Guidelines for Research Grants 2 for the complete information and details regarding research grants. External Research Grants are governed by the granting institution. The Finance Department will reimburse funds to individuals that have been awarded both internal and external Research Grants, following the Board approved policies for travel and accommodation and any other approved reimbursement policy as outlined in this guide. Please note that requests for payment for internal grants must be approved by the Academic Dean s office prior to being sent to the Manager of General Accounting. The Finance office will track individual research grant balances, internal or external and process the payment through Accounts Payable accordingly. If you have any questions about research grant funding please contact the Manager of Administrative Affairs in the Academic Dean s Office at extension 4304 or ejacob@uwo.ca. 6

11 Fiscal Year The fiscal year for King's University College occurs between May 1 and April 30 at which time annual PD, CF, T&C and RG funding will lapse. Although, keep in mind that T&C and RG funding have special provisions as noted above. Any claims that you make from annual PDF, CF, T&C or RG funding must correspond to the fiscal year in which it occurs. This is in accordance with Generally Accepted Accounting Principles and is outlined in the Canadian Institute of Chartered Accountants Handbook. The Handbook stipulates that Items recognized in financial statements are accounted for in accordance with the accrual basis of accounting. The accrual basis of accounting recognizes the effect of transactions and events in the period in which the transactions and events occur, regardless of whether there has been a receipt or payment of cash or its equivalent. 3 That is, it does not necessarily matter when you pay for the goods or services. If they are to be consumed or carried out in a different fiscal period than the one that they were purchased in, they should be expensed in the period in which they are consumed or carried out. Commonly referred to as the Matching Principle, this concept is an important detail with respect to recognition of expenses and revenues when reporting financial results. In order to clarify some of the potential issues that may arise in the regular course of business, a few examples follow. The examples are provided to illustrate how a purchase would be treated while adhering to the above concept. Example I Material Purchases Materials purchased (i.e. books, supplies, computers etc.) and received within the same fiscal year. This is a typical transaction and can be claimed as an expense in that fiscal year. 7

12 Example II Conferences/Travel Conference expenses (i.e. registration, flight etc.) paid for in one fiscal year while the conference itself is attended in the following fiscal year. In this case the event is taking place in the following fiscal year and therefore would not be an eligible expense in the fiscal year that it was paid for. The expenses incurred would however, be eligible for reimbursement and attributed to the following year s applicable funding. Example III Materials Purchases Materials purchased at or near the end of the fiscal year that are not physically delivered before April 30 (fiscal year end). Material purchases (i.e. books, supplies, computers etc.) must be physically in the possession of the purchaser on or before the end of the fiscal year in order to be an eligible expense in that year. If the goods arrive in the following fiscal year they would be eligible expenses in the following fiscal year rather than the fiscal year in which they were purchased. If you are unsure how a purchase or expense may be handled, please contact Accounts Payable prior to incurring the expense so that you can be sure how it will affect your current/future source of funding. 8

13 Claiming Expenses The funds are accessed on a reimbursement basis. That is, you must have incurred an expense in order to make a claim. Except under rare and unusual circumstances, third parties are not paid directly by King's University College on behalf of a Faculty Member. When claiming expenses please complete and send the applicable form, according to the source of funding, to Accounts Payable. You may request a print or electronic form for any of the sources of funding from Accounts Payable. The form should be completed to the best of your ability, signed and include all applicable supporting documentation (See Supporting Documentation Requirements). Once all of this has been completed, please forward your request to Accounts Payable for reimbursement. Please note that neat and clearly organized claims submitted using a method/format that you are comfortable with are also acceptable. Claims made that are not clear/organized or are missing pertinent information will be returned to you via intercampus mail. Expenses are reimbursed on or about the 15 th and 30 th of every month via direct deposit to your bank account. Requests must be received in Accounts Payable at least 2 full business days prior to the reimbursement dates in order to be processed in time. Requests received after the deadline will be processed on the next cycle. 9

14 Supporting Documentation Requirements The required supporting documentation for all expenses being claimed from either fund includes: Original cash register receipts for travel expenses, meals, supplies, materials and any other expenses for which a cash register receipt can be reasonably expected. Banking or credit card records in conjunction with a statement or invoice, showing the breakdown or nature of goods or services purchased, billed to you from a third party and indicating receipt of payment. When submitting bank or credit card statements you should black out or delete all information that is not relevant to the claim being made. Printed online payment confirmations showing at least your name and date paid. Please note that meal receipts must be an original itemized receipt. A credit or debit card receipt is not acceptable. Meals claimed must exclude any charges for alcoholic beverages. The following are not considered sufficient proof of payment for reimbursement purposes because they do not typically include the details necessary to prove the eligibility or nature of the goods/services to be reimbursed. Neither credit card statements nor credit card slips, on their own, are acceptable substitutes for an original itemized receipt. Packing or delivery slips. A copy of a cheque written to a vendor. 10

15 Travel Advances Travel advances are not permitted except under rare and unusual circumstances. In the event that a travel advance is absolutely necessary, approval must be granted by the Chief Financial Officer. Within 10 days of your return you will be required to submit all relevant supporting documentation, a full reconciliation of expenses and any surplus cash to Accounts Payable in order to settle your outstanding account. If your expenses exceed the amount of the advance and your reconciliation reflects a deficit, you will be reimbursed the difference. Should you fail to meet the above requirements the advance will become a receivable to the College. Foreign Currency Expenses When making purchases in a foreign currency please be sure to do one of the following in order to be reimbursed appropriately. Provide a copy of your credit card or bank statement with the foreign currency receipt in order to be reimbursed the Canadian Dollar equivalent of your payment. Provide a foreign currency exchange receipt with your claim. The exchange rate provided will be used for all cash transactions claimed. Calculate the exchange rate yourself and use the Bank of Canada s daily currency exchange rates to support your calculations. Include all of the documentation with your claim. Any foreign currency transactions not claimed in one of the above manners will be converted using the Bank of Canada s rate on the day that the claim is processed by Accounts Payable. When foreign currency transactions are submitted in a language other than English, a detailed description of the expense is required for each instance. 11

16 GST Rebates All purchases are deemed to be net of GST rebates available to King's University College when the GST registration number is available on the receipt or invoice provided. That is, any GST recovered by King's University College will not be charged to the applicable fund that you are using. Any GST amounts paid by you should be indicated on the reimbursement form in the space provided. The examples below indicate how to get the most out of your funding if all of the correct documentation and receipts are provided when making a claim. As a point of note, this method is an effective way to reduce costs for departmental expenses as well. Example I Book Purchase Book purchase $100 GST $5 Reimbursement to Faculty Member $105 Rebate (100% on books) $5 * 100% = ($5) Charge to PDF $100 Fund savings $5 Example II Hotel Receipt Hotel Bill $1000 GST $50 Reimbursement to Faculty Member $1050 Rebate (67% on goods and services) $50 * 67% = ($33.50) Charge to PDF $ Fund savings $

17 Part Time Faculty Members If you are a Part Time Faculty Member and have a provision for any of the named sources of funding in your contract please note the following. Your eligible expenses must fall into the same period for which your contract is valid. Your expenses must be submitted prior to the end of your contract date or fiscal year end, which ever comes first. As is the case for Full Time Faculty members, at the end of your contact/fiscal year end, the funding will lapse and is not carried forward into a future contract. Additional Tips Do not wait until April to try to spend your funding. You may run into issues related to fiscal year end accounting rules as described above (see Fiscal Year). Check with the Finance Department Buyer about discounts offered by our suppliers to maximize your funding. You may be surprised at the savings available. Whenever possible, provide a credit card statement in conjunction with your receipts when making foreign currency purchases. This will ensure that you are reimbursed the equivalent of what you actually paid in Canadian Dollars. Contacts Jamy Brodt Accounts Payable Officer Extension 4311 jbrodt2@uwo.ca Debbie Gibson Buyer/Secretary to the Chief Financial Officer Extension 4314 dagibson@uwo.ca Phyllis Fidler Manager of General Accounting Extension 4318 pfidler@uwo.ca 13

18 Endnotes 1 King's University College Extranet ( ). Policies and Practices of the College, Section 3.27 Procedure for Travel Reimbursement. Retrieved September 24, 2008, from 2 King's University College Extranet ( ). Policies and Reference Materials for Faculty, Section 5.14 Guidelines for Research Grants. Retrieved September 24, 2008, from 3 CICA Handbook Accounting Standards 1000 Financial Statement Concepts 14