EXPENSE POLICY Policy Type: Corporate Authorizing Title: Vice President, Finance and Chief Financial Officer Effective Date: 04/01/2010 Section 6.1 Purpose Statement This policy has been developed to provide clear guidelines on business expenditures incurred by employees in the fulfillment of their work related responsibilities. The following types of expenditures fall within the ambit of this policy: Travel; Business Entertainment; Local Expenses; Computer and Related Expenses; Cash Advances; Expense Reimbursements. This policy applies to hospital, research or trust accounts that are funded from Hospital based funding. When research or trust funding is from other sources, payments must adhere to the terms of reference of the grant or trust account. Additionally, physicians and staff are bound by research grant and/or trust guidelines and Canadian Medical Association guidelines. Definitions: Authorization The approval of an expense reimbursement and business travel claim by the appropriate person with adequate signing authority. Generally, authorization requires the immediate supervisor s approval as long as the expense claim amount is within their signing authority. Consultants persons providing services to the hospital on an independent contractor basis, and who are not employees of the hospital. For greater clarity, consultants are not to be considered staff ; that term is defined below. Receipt An original document, or carbon or certified copy, with the details of the expenditure, the amount, the date and indicating proof of payment. Expense Policy Page 1 of 5
Staff For the purposes of these Guidelines, staff includes all hospital employees, credentialed staff, volunteers, faculty, Board Trustees, outsourced service staff and other individuals engaged in hospital business and who intend to receive travel and expense reimbursement under this policy. The following expense policies and procedures apply to all staff. Any questions should be referred to the Finance Department. Principles The following principles should form the basis for staff expenditure decisions: Staff should be reimbursed for reasonable and actual expenses incurred by them when on hospital business; Reimbursement expenses should support the objectives of the hospital; Expenses should be reimbursed providing they are supported with original receipts and/or documentation; Expense reports that do not comply with policies and procedures will be returned to the employee and not processed until corrected; Expense reports must be submitted in a timely manner. Any expenses submitted past the accepted timeframe (one year from date incurred) may not be reimbursed and an explanation indicating reasons for the delay in submission must accompany the request for reimbursement; Expenses should strike a balance among economy, health and safety and efficiency of operations; Staff are expected to make the most practical and economical arrangements for travel, meals, hospitality and corporate expenses; Staff expenses should be approved by the appropriate manager, director, vice president or the president. No individual can approve his or her own expenses, or that of a subordinate that has paid for travel, meal, etc., expensed for their benefit; the highest ranking member of staff should pay and seek reimbursement for the related expenditures and; The person approving the expense report is responsible to ensure all claims are correct, reasonable and in accordance with the expense policy; reasonable gratuities will be reimbursed. Travel Expense: All travel should be approved in advance by the claimant s manager; requests may not necessarily be approved. Pre-approval should be documented (e.g. e-mail) and attached to the travel claim. Air Transportation The Hospital reimburses airfare for coach class. Upgrades to business/first class will not be reimbursed. Travel can typically be planned weeks in advance. By doing so, low cost airfare and discounts can be taken advantage of. When travelling with a companion, all related additional expenses, i.e. meals for a second person or conference attendance are considered personal and will not be reimbursed by the Hospital. All air travel tickets must be purchased through the Hospital s approved travel agency; unless it can be demonstrated that a less expensive alternative was obtained through an alternative Expense Policy Page 2 of 5
source. It is the staff member s responsibility to work with the travel agent to find the most economical flight that is reasonable. The original used ticket/e-ticket and boarding pass must be attached to the expense report for reimbursement. All unused tickets should be returned immediately to our travel agent for air travel. Lost tickets are the personal responsibility of the traveller. Any lost ticket should be reported immediately by the traveller to the travel agency to arrange for a credit. Airport Car Services Car services at standard rates may be used between suburban locations and airports. Rental Cars The Hospital discourages the rental of cars as most travel is at conferences where accommodation is in close proximity to the conference site. In certain circumstances, car rental could be justifiable. In these circumstances the Hospital would expect the staff member to rent a compact vehicle with prior approval from their immediate supervisor. Taxis/Shuttle Buses Public taxi expense while travelling is fully reimbursable provided that receipts are submitted which indicate the amount, date, location of acquisition and destination. Parking The hospital discourages staff from taking their car to the airport and parking it there for a week or more. While convenient, it may not be the least expensive alternative. Hotel Accommodations Standard business-class hotels should be used while travelling. Weekend hotel stays will not be reimbursed without an adequate explanation attached to the expense report, such as in the interest of reducing airfare. The complete itemized hotel bill must be submitted for reimbursement. Personal expenses on hotel bills such as movie charges and gift shop charges are not reimbursable. Computer access charges for business purposes and not for entertainment purposes will be reimbursed. It is the traveller s responsibility to cancel any guaranteed room reservation that is not used. No-show charges will not be reimbursed to the traveller unless extenuating circumstances exist. Meal Expense While Travelling All reasonable and appropriate meal expenses while travelling are reimbursable, provided that receipts are submitted for all expenses. Guidelines for reasonable and appropriate expenses are difficult to set and differ between large metropolitan areas and small towns. For each full day away, the guideline is $60.00 for three meals and a snack. Telephone Calls While Travelling Ordinarily, one personal call home is allowed each day while travelling. Hotel surcharges for calls are usually exorbitant and discouraged. A personal calling card or alternative means should be used if possible and costs will be reimbursed. Sundries & Miscellaneous Items No item shall be reimbursed in this category without a proper description of the charge and receipts. Toiletries, newspapers, dry cleaning, clothing, etc. are personal expenses and are not ordinarily reimbursable. Significant purchases without prior approval will be disallowed. Expense Policy Page 3 of 5
Business Entertainment: Meal Expense Business meals are reimbursable, provided that receipts are submitted for all expenses and that the occasion, name of business associates, and business discussed is noted on the receipt. Generally, alcohol is not reimbursed. Refer to the Alcohol Policy. Gifts The purchase of gifts for personal life events (i.e. birthdays, weddings and births) is generally discouraged unless prior approval is obtained from the Chief Executive Officer. In the case of bereavement flowers may be appropriate, managers to apply their own discretion. Local Expenses: Taxis Commuter expenses for travel between home and the Hospital are not reimbursable. Taxis may only be used for transportation to and from business meetings and airports, however, subway use is preferable. Use of our local corporate taxi service (Beck Taxi) is preferred otherwise; public taxi receipts are required and must indicate the amount, date, location of acquisition, and destination. Personal Vehicle Usage Personal vehicles may be used in lieu of taxis. Personal car expenses include parking and mileage at $ 0.45 per kilometre. Personal vehicles used on hospital business must be insured at the vehicle owner s expense for personal motor vehicle liability. Coverage should be equal to or greater than the minimum liability specified in the Insurance Act. Drivers must satisfy themselves whether their motor vehicle insurance coverage should include business use of their vehicles. The hospital will not reimburse staff for costs of collision and liability insurance coverage. For greater clarity, the hospital assumes no financial responsibility for privately owned vehicles other than reimbursing staff for kilometres driven on Hospital business. Those driving a personal vehicle on hospital business cannot make claims to the hospital for damages as a result of a collision. Personal Telephone Use Business use of home telephones is fully reimbursable provided that the itemized call listing is submitted with business calls noted and the reimbursement portion of the service charges and taxes is calculated based on the percentage of the business calling expenses to total calling expenses. Computer and Related Expenses No employee of the Hospital is authorized to directly order computer hardware, peripherals or software for purchase or rental. All requests must be directed to Information Technology Services. Purchases of computer hardware or software made without approval by the Director, ICT Infrastructure, will not be reimbursed. Cash Advance: Cash advances are discouraged. It is preferable that an employee use a personal credit card or other means and file an expense report for reimbursement, which will be promptly paid when properly filed. Expense Policy Page 4 of 5
Expense Reimbursement: The expense report must add and cross add, with correct tax calculations and the correct entity/cost centre/account number combination. It must be signed by the submitter and the individual to which the submitter directly reports to. Any travel advance should be deducted from the claim. Related Policies: Signing Authority Policy Code of Business Conduct Policy Code of Conduct Policy Alcohol Policy - end - Expense Policy Page 5 of 5