TRAVEL MANAGEMENT AND GENERAL EXPENSES PROTOCOL FN 2.0

TRAVEL MANAGEMENT AND GENERAL EXPENSES PROTOCOL FN 2.0 In Effect: June 15, 2012 Approved by: Executive Group, June 8, 2012 Responsible Office(s): Administration, Finance Responsible Officer(s): CAO, Director of Finance 1.0 Protocol Statement/Rationale This document establishes the principles, mandatory requirements and guidelines for acquiring travel services including: ticketed transportation, accommodation and car rental requirements and for reimbursing individuals for travel, accommodation, meals and hospitality expenses incurred on behalf of NOSM. It also includes procedures for obtaining reimbursement of expenses incurred on behalf of NOSM for travel, accommodations and meals. Travel Management Protocol ensures fair and consistent treatment of individuals required to travel on behalf of NOSM. This protocol establishes guidelines for ensuring that travel and business expenses are valid, necessary, and in adherence with accounting procedures at NOSM and the Province of Ontario Broader Public Sector Expenses Directive. 2.0 Applicability This protocol applies to all faculty, staff and other individuals engaged in NOSM business, and who intend to receive travel reimbursement from NOSM. NOTE: For OPSEU Unit 1 members, where sponsors or funding agencies (for research accounts) have their own travel expense policies, the policies of these bodies will have precedence, providing the School is notified of this arrangement in advance. If sponsors or funding agencies do not have travel expense policies or if certain matters are not included in their policies, this NOSM Travel Management and General Expenses Protocol will prevail save in the case of Unit 1 Members traveling on non-nosm funds that do not have specific travel policies in which case the tri-council policy on eligible expenses shall apply and the per diem, mileage and other rates for such travel shall be the rates established and amended by the National Joint Council Travel Directive. Where all or a portion of travel expenses are to be paid by a third party, the employee or his/her supervisor should provide appropriate details to the Finance Unit Accounts Receivable, who will prepare and forward a NOSM invoice to the funding organization. In Effect June 15, 2012 Page 1

3.0 Responsibility Unit Managers and Supervisors are responsible for: Ensuring the principles and requirements in this protocol are adhered to within NOSM. Ensuring the travel claims they approve are reasonable and in adherence to the standards set by NOSM. Contract personnel and other individuals traveling on NOSM business are made aware of this document. When exercising discretion, the rationale must be documented and filed with the claim. Approvers are accountable for their decisions which must be made subject to good knowledge of the situation, exercised in appropriate circumstances and comply with the principles and mandatory requirements set out in this Protocol. Claimants are responsible for: Planning the travel required and obtaining the necessary authorizations. Either using the NOSM Travel Services Provider to arrange for travel and accommodation or for making your own arrangements. For those who book their own travel, when flights are cancelled, if you have not booked with a travel agent, your booking could go to the bottom of the rebooking list. You should consider purchasing travel insurance when not using a travel agent. Requesting and accepting the lowest fare practicable via the most direct route. Utilizing their corporate card or personal credit card for payment of travel related expenses. Submitting original, itemized receipts with all claims in a timely fashion. 4.0 Cognizant Office/Getting Help Queries regarding interpretations of this document and resolution of issues should be directed to: Chief Administrative Officer 807-766-7333 or Director of Finance 807-766-7307 In Effect June 15, 2012 Page 2

5.0 Authority This protocol delegates to Unit Managers and supervisors authority in administering these expenses within the provisions of this protocol. 6.0 Principles The following principles should form the basis for employee travel decisions: Expenses associated with employee s duties should minimize costs and maximize benefits. Employees should be reimbursed for legitimate work-related expenses authorized by supervisors. Reimbursable expenses should support objectives of NOSM. Employees must make the most practical and economical arrangements for travel, meals and hospitality. In evaluating travel options, employees should consider total costs including the costs of transportation, accommodation, meals and salaries. Employees should make the maximum use of NOSM teleconferencing and videoconferencing facilities to reduce the need for employee travel for business meetings. Only a minimum of travel should be approved. Where approved, travel should directly meet program needs or needs for training and development. Employees travel related expenditures shall not be charged to the procurement card. In exceptional circumstances where it is not practical or cost effective for the employee to meet mandatory requirements, the responsible supervisor must give approval. Exceptional circumstances will be at the discretion of the employee s immediate supervisor. 7.0 Auditing Requirements Reimbursements to employees for travel and other business-related expenses are subject to examination by external auditors, including Revenue Canada. If NOSM reimburses expenses that are subsequently found not to comply with this protocol, the employee will be required to repay such amounts. In Effect June 15, 2012 Page 3

8.0 Definitions/Terms Business travel: Travel authorized by the appropriate level of authority. Such travel meets the requirements for payment or reimbursement. Corporate Card: Credit card issued by NOSM for use by employees when incurring travel and other-business related expenses on behalf of NOSM. Headquarters: Hospitality: An employee s regular place of business: The location noted on the employee s business card, where the employee has an office, desk, computer, etc. The provision of food and beverage, accommodation, transportation or other amenities at NOSM s expense to persons who are not employed by NOSM. Personal Vehicle: A vehicle owned, borrowed, or rented/leased personally by an employee. Receipt: Travel Status: An original document, or carbon or certified copy showing the amount and details of the expenditure, the date, and indicating proof of payment. An employee s status while away from home and headquarters and outside the metropolitan area where he or she normally works and conducting approved NOSM business. An individual is considered on travel status one hour before their scheduled departure and one hour after their return if using a commercial carrier or from the time they leave their residence or office if driving. 9.0 Related Documents/References Travel Expense Statement Canadian Currency Travel Expense Statement Foreign Currency Travel Authorization Outside of Canada All of the above are found on the NOSM external website at: http://www.nosm.ca/about_us/organization/administration/general.aspx?id=2002 or on the NOSM intranet: https://www.mynosm.ca/organization/administration/finance/forms/ In Effect June 15, 2012 Page 4

10.0 Travel Suppliers and Services NOSM is a member of the Canadian Association of University Business Officers (CAUBO), which through its National Procurement Committee, negotiates national agreements for products and services on behalf of its members. 10.1 Rental Car Agencies When rental arrangements are made outside the local area, consult the CAUBO listing. Preferred rental agencies and rates are found at: http://caubo.ca/supplier_contracts/car_rentals 10.2 Preferred Hotels/Motels Employees shall consult and consider using the preferred hotels/motels listed at: http://caubo.ca/supplier_contracts/hotels whenever possible. 10.3 Corporate Card NOSM uses the US Bank Visa Corporate Credit Card for travel related expenses. Employees are personally and solely responsible for charges incurred against the Corporate Card and for paying US Bank Visa directly upon receipt of the monthly statement. The timely submission of an approved and authorized NOSM Travel Expense Statement, including proper receipts, will ensure that you receive prompt reimbursement of expenses. Requirements for corporate card holders are included in documentation distributed by NOSM Finance. 11.0 Travel Authorization 11.1 Travel Inside Canada Approval by the supervisor of the Employee Travel Expense Statement Canadian Currency is considered as the authorization and approval for the travel expenses incurred. 11.2 Travel Outside Canada Travel outside Canada must be: Consistent with work plan and/or learning plan approved by your immediate supervisor or Unit Manager. Consistent with NOSM priorities. Likely to produce a high benefit for NOSM. In Effect June 15, 2012 Page 5

Approval for Outside Canada travel is required from the employee s immediate supervisor or Portfolio Associate Dean and one of the following, the Chief Administrative Officer, the Senior Associate Dean or the Dean, using the Travel Authorization Outside of Canada form. The form must be accompanied by supporting documentation, such as a letter of invitation or international conference itinerary. Per Article 4.7 of the OPSEU Local 677 Unit 1 Collective Agreement travel authorization is not required for travel undertaken for professional development and/or research purposes, no matter what the source of funds. Unit 1 Members traveling shall do so in compliance with Article 3.13 (Absence-General) of the Unit 1 Collective Agreement. 12.0 Expense Claims/Reimbursements Save for Unit 1 Members traveling for professional development and/or research purposes as per Article 5.2, employees shall retain copies of the approved travel authorization form for travel outside Canada to support their expense claims. NOTE: Authorization must accompany expense claim when sent to the Finance Unit. Original itemized receipts (credit slips are not sufficient) must be retained and submitted with the expense claim. If there is not an itemized receipt, a written explanation must be submitted to explain why the receipt is unavailable and a description itemizing and confirming expenses must be provided. Submit claims by the end of the quarter following the quarter in which the expense was incurred; a written explanation is required if not submitted within this time frame. 13.0 Advances Travel and Other Business Expenses All employees will be given the opportunity to apply for a corporate travel card. Cash travel advances will not be given to employees unless the funds are required for goods and services that cannot be paid for by the corporate card. In exceptional circumstances, where employees are required to undertake emergency travel or new employees who do not have a corporate card, travel advance cheques may be issued. These cases should be reviewed on a case by case basis. Each such advance should be accounted for separately and the balance repaid upon completion of the event or end of the trip. Requests for travel advances, with supporting documentation, should be forwarded to the Finance Unit by employee s immediate supervisor for processing at least ten (10) working days prior to the travel occurring. In Effect June 15, 2012 Page 6

14.0 Travel Insurance Flight Cancellation insurance is an allowable expense and should be obtained when there is a possibility that the claimant may be unable to travel or when the ticket purchased is nonrefundable. A receipt is required for reimbursement. 15.0 Air Transportation Employees may travel by air (economy) coach class when this is the most practical and economical way to travel. For any other type of fare (e.g. Business class) approval by the Dean, Senior Associate Dean or Chief Administrative Officer is required. Considerations for making decisions should be based on circumstances such as accommodation, length of travel, health and safety considerations, etc. 16.0 Travel Arrangements Commercial Air Travel Employees shall book airline tickets in advance using the Travel Services Provider or make the travel arrangements themselves. When travel plans change, employees shall notify the administrative travel coordinator or airline as soon as possible to arrange the appropriate credit or refund, and shall return unused tickets promptly. Where travel includes a Saturday night stopover to obtain a lower airfare, related expenses (accommodation, meals, etc.) must not be greater than the airfare savings. The original stub of the airline ticket and/or boarding passes must be attached to the travel expense statement. For e-tickets, submit the invoice and boarding pass. Reimbursement will normally be made at the rate for economy class airline tickets only. Where costs exceed economy rates, employees must provide an explanation or proof of prior approval by immediate supervisor. 17.0 Road Transportation Reimbursement for travel to and from the airport should be the least expensive and most practical means of transportation. When road transportation is the most practical and economical way to travel, employees are asked to consider a rental vehicle when more economical than a personal vehicle. Bridge, ferry, highway tolls and necessary parking fees will be paid while driving on NOSM business. Receipts, where possible should be provided. Any traffic and parking violations incurred while traveling on NOSM business are the personal responsibility of employees. In Effect June 15, 2012 Page 7

18.0 Rental Arrangements Employees shall consult and consider using the designated rental car agencies. (See 10.1) for rental car requirements. To minimize rental costs, the size of rental car selected should be the smallest required for the trip tasks. The original receipt from the rental agency must be attached to the expense claim. At pick-up, rental car costs must be charged on the employee-held corporate card or a personal card that allows the daily insurance charge to be waived as part of the coverage provided. The NOSM US Bank VISA allows the daily insurance charge to be waived as it is part of the coverage provided by the corporate card. Note: Vans, trucks or pickup trucks (other than mini-vans) are not covered under this insurance coverage. 19.0 Accident Reporting Accidents shall be reported immediately to local law enforcement authorities, the rental car agency, the employee s immediate supervisor where required (i.e. WSIB) and the corporate or personal credit card company as applicable. 20.0 Personal Vehicles If you use your personal vehicle while on NOSM business, the following apply: The vehicle must be insured at the vehicle owner s expense for personal motor vehicle liability. It is the driver/owner s responsibility to ensure that the motor vehicle insurance includes coverage for business use of the vehicle. NOSM will not reimburse the cost of insurance coverage for business use, physical damage or liability. NOSM is not responsible for reimbursing deductible amounts related to insurance coverage. In the event of an accident, you will not be permitted to make a claim to NOSM for any resulting damages. Employees will be reimbursed for distances driven according to the rates set out in Appendix A Rates and Allowances. In Effect June 15, 2012 Page 8

21.0 Vehicle Insurance The corporate travel card benefits include insurance that covers that cost of repairing the damage to approved vehicle types rented using the travel card. Therefore, if you have a corporate travel card or a personal card that provides insurance coverage you must use it to rent a vehicle and you should decline the collision damage waiver offered by the rental agency. If you do not have a corporate travel card or a personal card that provides insurance coverage, or you rent a vehicle that is not eligible for coverage under the card, you should purchase the collision damage waiver coverage offered by the rental agency. The insurance costs can be claimed as a travel expense. 22.0 Accommodations 22.1 Hotel/Motels Employees who require overnight accommodations shall consider using the preferred CAUBO hotel/motels (See 10.2). Cancellation of reservations must be made as soon as possible when travel plans change to avoid no-show charges. Penalties incurred for non-cancellation of guaranteed hotel reservations are the claimant s responsibility and may be reimbursed only in exceptional circumstance. If family members or friends share accommodations, employees may claim for the single occupancy rate only. Internet access is an allowable expense while traveling on behalf of NOSM. One personal telephone call per night traveling is an allowable expense. 22.2 Private Residences Private stays with friends or family are acceptable, and a cash payment or gift may be provided to the friends or family. A maximum of $30 per night is allowed for accommodation including meals with friends or family, in lieu of commercial accommodation. Instead of a receipt, you must submit a written explanation describing the purpose of the trip, identifying the host and number of days you stayed. The $30 value may be given in the form of a small gift (which must be accompanied by a receipt) or by cash or cheque. In Effect June 15, 2012 Page 9

23.0 Meals 23.1 Meal Rates in Canada Reasonable and appropriate meal expenses may be reimbursed. You may incur a meal expense when you are on NOSM business and you: o o are away from the office area (i.e., at least 24km) over a normal meal period; or have prior approval for the expense (e.g., a business meeting within the office area that must occur over lunch). Employees shall be reimbursed for meal expenses as per rates found in Appendix A Rates and Allowances on submission of detailed receipts. The per diems are guidelines that employees are encouraged to follow with prudent judgment. The rates are not an allowance. They are for individual meals or groceries in lieu of (in cases of dietary needs and special diets). Reimbursement, for the purchase of groceries, for longer than usual stays will include written rationale submitted to the supervisor. In cases where meals are claimed for more than one individual, the names of the individuals must be recorded on the receipt. Detailed receipts must be submitted. Employees are asked to consider charging all meals on the corporate travel card whenever possible. No reimbursement for meal costs shall be made for meals at home prior to departure or on return; meals included in the cost of transportation, accommodation, seminars or conferences. 23.2 Meal Rates Outside of Canada Save for Unit 1 Members as per Article 1.1, meal rates outside of Canada are the same as in Canada. Receipts may either be converted to the Canadian dollar equivalent at the average Bank of Canada rate for the period of travel or the actual amount as per the charge on the credit card statement (A copy of the credit card statement must be provided to substantiate the amount when a credit card has been used). Costs incurred for alcoholic beverages will not be reimbursed. 24.0 Miscellaneous Expenses Employees are eligible for reimbursement of miscellaneous work-related expenses incurred while traveling on NOSM business. In Effect June 15, 2012 Page 10

24.1 Gratuities Employees shall be reimbursed for reasonable gratuities for bellhop, hotel room services, meal services, and taxis and should be claimed as part of the amount included for incidentals. 24.2 Laundry/Dry Cleaning Services Employees who are away from home for more than five consecutive days shall be reimbursed for reasonable expenses for laundry, dry cleaning and valet services. Employees must keep receipts to support expense claims. 24.3 Jury Duty Employees on paid leave for jury duty must return to NOSM all payments received as jurors by submitting a cheque to NOSM. 24.4 Telephone Calls Employees will be reimbursed reasonable costs of one personal call home for each night away. Expenses for telephone calls for business purposes are reimbursable. 24.5 Communication Services Employees shall be reimbursed for the cost of faxes, photocopies, internet connection, courier and mail services related to NOSM business. Appropriate receipts must be provided to support expense claims. 24.6 Non-reimbursable Expenses Personal expenses for recreational purposes, e.g., video/movie rentals, mini-bars, etc. Expenses incurred due to the presence of friends or family members. Traffic and parking violations incurred while driving on NOSM business. In Effect June 15, 2012 Page 11

Appendix A Rates and Allowances NOSM faculty, staff and other individuals engaged on NOSM business are reimbursed in accordance with the following rates. (Save when the National Joint Council Travel Directive or other rates apply as per 2.0 above). When incurring meal expenses the following rates should be used as a guideline only. Actual itemized receipts must be provided in order to be reimbursed for meal costs. Expense Rates Mileage Rates Meals (guideline only) Accommodations For private accommodation provided by friends or relatives Foreign Currency.42 per kilometre Breakfast $12.00 Lunch $17.00 Dinner $27.00 Total $56.00 $30.00 per night For travel anywhere outside of Canada, retain meal receipts and submit to receive the equivalent in Canadian Funds. If charged on a corporate card (strongly recommended), attach a copy of the statement to the expense claim to verify the rate of exchange used. Otherwise, the average Bank of Canada Exchange Rate will be applied. * The above rates are guidelines that employees are encouraged to follow using prudent judgment. The rates are not an allowance. They are for purchased individual meals or groceries in lieu thereof. (See 23.0 above) In Effect June 15, 2012 Page 12