Table of Contents for Travel and Entertainment Guidelines

Number of Pages Number 16 201 Title: Best Practice Guidelines Originator: Vice-President, Corporate Services & Chief Financial Officer Approved By: Travel and Entertainment Guidelines Effective Date President s Council Replaces April 12, 2005 October 1, 2002 Table of Contents for Travel and Entertainment Guidelines 1.0 Introduction 1.0.1 Purpose 1.0.2 Application and Responsibility 1.0.3 Non-compliance 1.0.4 Approvals 1.1 Travel Guidelines 1.1.1 General 1.1.2 Business Meals and Entertainment - External 1.1.3 Air Travel Guidelines 1.1.4 Air Travel Insurance 1.1.5 Air Travel - Frequent Flyer Programs 1.1.6 Hotel Accommodations 1.1.7 Ground Transportation - Taxis, Parking 1.1.8 Ground Transportation - Car Rentals 1.1.9 Ground Transportation - Personal Vehicle 1.1.10 College Corporate Card 1.1.11 Insurance - Personal Travel and Accident 1.1.12 Insurance - Automobile 1.1.13 Meals and Entertainment Expenses 1.1.14 Telephone Charges 1.1.15 Other Reimbursable and Non-reimbursable Expenditures 1.1.16 Documentation

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 2 1.2 Travel and Entertainment Procedures - Before You Go 1.2.1 Obtain Travel Authorization 1.2.2 Make Travel Arrangements 1.3 Travel and Entertainment Procedures - While Enroute 1.3.1 Use Itinerary as Reference Document 1.3.2 Manage Receipts and Other Documentation 1.3.3 Obtain Cash Advance on Diners Club MasterCard for Out-of- Pocket Expenditures 1.3.4 Be Aware of Hotel Policies 1.3.5 Carry Personal Identification 1.4 Travel and Entertainment Procedures - When You Return Appendix 1.4.1 Submit Expense Claim Report A B Synopsis of Forms Rate Schedules B1 Rates - Current Rates effective October 1, 2004 B2 Rates - Effective October 1, 2004 to September 30, 2005 2

Best Practice Guidelines Travel and Entertainment- April 12, 2005 Page 3 1.0 INTRODUCTION 1.0.1 Purpose Travel and entertainment represent a significant business expenditure. The purpose of this travel and entertainment policy is to ensure the College achieves the best value for such expenditures. This will be done by: Enlisting the cooperation and good judgement of all staff incurring such expenditures and all staff reviewing such expenditures; Applying the procedures and guidelines outlined in this travel and entertainment policy; and Requesting that travellers utilize the Diners Club MasterCard Corporate Card to pay for travel-related expenditures wherever possible. 1.0.2 Application and Responsibility These guidelines apply to all employees of Red River College and cover local and out-of-province travel and entertainment expenditures. Travel status is defined as an absence of the employee from his or her headquarters area (24 kilometers around the employee s headquarters) on College business involving travel and/or accommodation with the approval of the Employer. These guidelines are subject to applicable provisions of the Collective Agreement and the Terms and Conditions of Employment for Staff Excluded from the Bargaining Unit. Special circumstances for overseas travellers may require alternate practices. Please consult with the College s Controller for advice and guidance. This policy does not apply to internal meals and entertainment. This would include recognition events for long service, retirement, praise and planning. A separate policy will cover these types of expenditure. The guidelines provide minimum parameters within the College. Each Division may enforce stricter parameters at their discretion.

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 4 1.0.2.1 Traveller s Responsibility The traveller is responsible for keeping expenses to a minimum and using good judgement to ensure the most economical and reasonable expense alternatives are obtained. Each traveller must receive approval from the appropriate staff member (see approvals section) prior to taking any business trips. The traveller is required to report all expenses at the completion of each trip with the required documentation and approval. Each traveller must adhere to policy for all expenses incurred on behalf of the College. 1.0.2.2 Authorizing Signatory s Responsibility 1.0.2.2.1 Pre Travel All travel involving air transportation and/or other out of province travel must be approved prior to the employee making travel arrangements. The authorizing signatory should ensure that travel is for legitimate College purposes and complies with College travel and entertainment guidelines. The budget centre manager is responsible for ensuring that there are sufficient budget dollars available to cover the travel/business related expenditures. 1.0.2.2.2 Post Travel Approval of the employee s expense report indicates that he/she has read and is familiar with the travel and entertainment policy and guidelines and that all expenses being submitted are within those guidelines and properly documented. 1.0.2.3 Travel Agent and Accounts Payable It is the responsibility of individual departments to arrange transportation/accommodations for travel related to business or staff development. Travelers who require assistance with all of the details may use a Travel Agent to research all sources, including the Internet, for the best schedules, fares and routes, make air, car and hotel bookings, and look after transfer services, seat selection, room preferences, frequent flier/guest numbers, preferred rates, etc. A reasonable Professional Fee for Agent- Assisted Services is reimbursable for these bookings Accounts Payable (A/P) is responsible for processing all expense claims to ensure the employees are reimbursed promptly and to audit for travel guideline compliance. Auditors from sponsoring agencies and corporations, Canadian Customs and Revenue Agency and the Colleges Auditors routinely review travel and other transactions for adequate documentation, approval and compliance. A/P will notify the Chair/Manager or Dean / Director / Vice-

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 5 President of deviations from guidelines; however, it remains the responsibility of the Chair/Manager and Dean / Director / Vice-President to administer the travel policy. The management of travel expenditures is considered part of managers responsibilities under their budget accountability. 1.0.3 Non-Compliance The College will reimburse employees for all reasonable and necessary expenses while traveling on authorized company business. The College assumes no obligation to reimburse employees for expenses that are not in compliance with these guidelines. 1.0.4 Approvals The College will utilize a one-over-one approval process for all travel and entertainment expenses as a minimum. All travel authorization and reimbursement claims must be signed by the claimant and approved by the signing authority for the budget centre to be charged. Employees may not authorize their own travel or approve their own reimbursement claims. For example, normally instructors claims will be approved by their Chair, Chairs by Deans and Deans by the Vice-President Academic. On the administrative side, support staff will be approved by the manager with responsibility for the budget centre to be charged, the manager by the Director / Vice-President to whom they report, and the Director / Vice-President by the President. In academic divisions where travel and staff development budgets are centrally held, instructors claims will be approved by the Dean.

Best Practice Guidelines Travel and Entertainment- April 12, 2005 Page 6 1.1 TRAVEL GUIDELINES 1.1.1 General Only travel for business purposes is reimbursable. It must be time and cost effective relative to available alternatives (e.g.: teleconferencing, video conferencing) and expected benefits. Should employees add personal travel to a business trip or choose a mode of travel that is not the most economical in the circumstance, all additional costs and arrangements shall be the responsibility of the employee. The number of employees attending the same meeting or professional development activity should be kept to a minimum. 1.1.2 Business Meals and Entertainment - External Business meals and entertainment must be solely for business purposes. Business meals and entertainment are those undertaken with guests and/or business associates of the College, during which a specific business discussion takes place. The most Senior College staff member present should pay for the business meal/entertainment expense. When requesting reimbursement of such expenditures, employees must provide the following information, and must request reimbursement via an approved expense report: Business discussion topic Meeting attendees 1.1.3 Air Travel Guidelines Travellers are to obtain the most economical airfare suitable in the circumstances. Employees may use personal vehicles to travel but may only claim the lower of the most economical airfare and mileage reimbursement. The following are considerations in obtaining desired costing: Cost/benefit of stay over on a Saturday night (College will reimburse hotel and meals) Flexibility in departure and arrival times and dates Use of alternate airports where applicable Use of discount fares which are non refundable or have cancellation/change penalties A flight that makes a stop or connection enroute

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 7 1.1.4 Air Travel Insurance Trip cancellation insurance on discounted airfares should be declined. The cancellation insurance is non-reimbursable. 1.1.5 Air Travel - Frequent Flyer Programs Frequent flyer points accumulated while on College business travel are the property of the employee. (Please note personal tax implications are the responsibility of the employee to research and document). Any costs associated with these programs are the responsibility of the employee. The traveller s airline preference for the purpose of accumulating points shall not be an influencing factor when making airline reservations, unless there is no cost differential. 1.1.6 Hotel Accommodations The traveller shall determine the most logical/economical hotel to be booked in the circumstances. All hotel accommodations should be reserved by utilizing the employee s corporate travel card and should be guaranteed for late arrival (after 4:00 PM). The traveller should be aware of the hotel s cancellation policies. If the room must be cancelled, the traveller must process the cancellation to cause the minimum (if any) cost to the College. The traveller should determine whether late checkout would be required and make the necessary arrangements when on-site. 1.1.7 Ground Transportation - Taxis, Parking Airport bus, hotel bus or shared limousine services should be used in preference to taxis whenever practical and convenient. Taxi fares between home and airport, or airport parking fees for the duration of the trip are reimbursable. Parking fees for business trips are reimbursable. 1.1.8 Ground Transportation - Car Rentals Car rentals should be used only when they are the most economical means of transportation relative to need. Appropriate explanation must accompany the Travel and Entertainment Expense Statement. Car rentals should be reserved by utilizing the traveller s corporate card. By using the card, the traveller obtains, at no additional cost, Primary Worldwide

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 8 Car Rental Collision Loss and Damage Insurance up to the full value of the vehicle. Therefore, additional insurance coverage should be declined and is not reimbursable by the College. Compacts and intermediates are to be used unless four or more employees are traveling together. Always refill the gas tank prior to returning the car to the vendor. 1.1.9 Ground Transportation Personal Vehicle Employees may use their personal vehicles on business trips; however, reimbursement will be the lower of the equivalent airfare and the mileage reimbursement. Use of personal automobiles for business use is reimbursed at the rate provided in Appendix B. To obtain reimbursement for personal vehicle mileage, complete an Expense Claim form (Available on Public Folders). 1.1.10 College Corporate Card The College utilizes Diners Club MasterCard as the corporate card for travel and entertainment expenditures. These cards have the MasterCard brand mark and hologram on them and should be identified as a MasterCard when booking by phone or on the Internet. A staff member should obtain a card if they will incur any of the following costs: Airline tickets (Charges are reimbursable before actual travel takes place when supported by an approved staff development and expense claim form) Cash Advance (accountable advances will not be issued) Car Rental Hotel Accommodation The traveller should charge business and entertainment expenditures to the corporate card. This will allow the College to obtain data to initiate favourable vendor discounts in the future. Management of your corporate card is as follows (additional information is available in the brochure): The card is issued in the name of the applicant. Detailed monthly statements are sent to the cardholder s home address and the cardholder must pay Diners Club MasterCard directly. Payment of the statement is required within sixty days from the statement date in order to avoid interest charges. The College does not make payment to Diners Club MasterCard but will reimburse travel expenses within 10 working days of receiving a completed Expense Claim form in Accounts Payable. Interest charges due to late payment of the statement are non-reimbursable.

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 9 The standard College cash advance package allows you to withdraw up to $500 per day and $1,000 per week. The transaction fees resulting from business-related cash advances are a reimbursable expenditure. The card may be used for personal use. Personal charges are the sole responsibility of the individual and are not reimbursable. The College will reimburse the applicant for the approved/policy compliant travel expenses submitted on the Expense Claim Form within 10 working days from receipt of the claim. An employee may use their personal credit cards or cash versus the corporate card if they choose; however, there shall be no additional cost to the College as a result of that decision. 1.1.11 Insurance - Travel and Accident Insurance Medical travel insurance should be obtained if the traveller does not already own that type of coverage. This cost is reimbursable. 1.1.12 Insurance - Automobile All auto insurance should be declined, noting the following: Primary Worldwide Car Rental Collision Loss and Damage Insurance up to the full value of the vehicle is obtained through payment of the car rental by the Corporate Card. RRC employees traveling outside Canada and the US are covered by the College s Comprehensive General Liability Insurance which insures against all sums which the College and its employees shall become obligated to pay, based upon legal liability, for death or injury to persons or damage to the property of others. The coverage applies worldwide, including excess liability for rental vehicles in Canada, or abroad. 1.1.13 Meals and Entertainment Expenses 1.1.13.1 Personal meals Personal meals are defined as a meal expense incurred by the traveller when dining alone on an out-of-headquarters business trip. There are two options for claiming meal expenses. 1. Receipts Provided Reimbursement of personal meals, including tips/room service, would normally be the lesser of actual meal expenses or the Daily Meal Maximum as per Appendix B. Original Receipts must be provided for all meals (Credit card slips are not acceptable backup).

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 10 2. No Receipts Provided Alternately, the collective agreement provides for a per diem meal allowance that may be claimed for travel within the province of Manitoba. Under the College travel guidelines this per diem meal allowance is also extended to cover travel to any destination. No receipts are required when claiming this allowance. See Appendix B for the current amount. 1.1.13.2 Business Meals and Entertainment 1.1.14 Telephone Charges Business meals are meals taken with business associates or guests of the College during which a specific business discussion takes place. This does not include meals with only other College personnel. Entertainment expenses include events such as theatre and sporting events, whereby a business discussion with business associates or guests take place during immediately before or after the event. This does not include other College personnel. Business meals and entertainment are reimbursable provided the expense is reasonable under the circumstances. Expenses must be receipted and properly document on the Expense Claim form. Telephone calls for College business are reimbursable. Personal calls when on out-of-town business are reimbursable provided they are reasonable. Upon arrival at your hotel, inquire into the hotel billing policy as some hotels are adopting a policy of billing telephone calls at Independent Rates and in some instances charge up to a 70% mark-up. In such instances, avoid, if possible, making telephone calls directly from the hotel room. For frequent travellers, College calling cards may be issued. Please contact the College Communications Coordinator for further information. 1.1.15 Other Reimbursable and Non-Reimbursable Expenses The following list of reimbursable and non-reimbursable expenses is not allinclusive. Any non-reimbursable expense included on the expense claim will be deducted from the amount claimed by the employee. Reimbursable: Laundry/pressing charges if the traveller is away in excess of four consecutive nights.

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 11 Per day reimbursement for employees who stay with relatives or friends (see Appendix B for daily rate). Visa, passport, inoculations for International travel. Travel Health Insurance (if not already owned). Baggage handling and storage, where appropriate. Exchange rate expenses. Per Diem for miscellaneous out-of-pocket costs (see Appendix B for daily rate). Non-reimbursable: Mileage travel between home and office. Expenses of a personal nature such as barbering, toiletries, and shoeshine. Luggage and briefcases. Personal Entertainment. Airline Club Dues. Traffic Fines. Expenses when paid for, reimbursed or provided by an outside organization. Expenses for non-business travel partners. Expenses resulting from vacation extensions to a business trip. Expenses for sporting events, theatre, etc. unless they qualify under the Business Meals and Entertainment section. 1.1.16 Documentation Following is a list of the proper and original receipts to be attached to the expense report: Airfare Original boarding passes and the e-ticket or travel agent invoice. Because air fares are usually paid in advance, employees may submit an expense claim with a copy of the e-ticket or travel agent invoice for reimbursement before travel. The Original boarding passes must then be included with the expenses (as an attachment only) claimed after travel is complete. Be sure not to include it on the expense claim for reimbursement more than once. Hotel accommodation Original hotel bills plus card member copy of charge card slip. Car Rental Original car rental agreement plus card member copy of charge card slip. Meals/Entertainment - Original receipt detailing expenses. Other expenses - Original receipt or paid invoice detailing expenses. Originals will be site-stamped and retuned after processing if required. Original receipts in a foreign language must be translated. Claims should be submitted as soon as possible after returning from a trip; however claims must be made within 3 months of returning or 1 week after fiscal year end, whichever is sooner.

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 12 The claimant must sign the Travel Expense Claim form. The signature on the form indicates that all expenditures incurred are related to College business, that expenditures are in accordance with the College travel policies and that the claimant has personally paid for all expenditures being claimed. In addition, the following should be provided with the expense report: Itinerary; Explanation in the absence of original receipts; Documentation to support exchange rate(s); and Documentation to support card member cash advance charges.

Best Practice Guidelines Travel and Entertainment- April 12, 2005 Page 13 1.2 TRAVEL AND ENTERTAINMENT PROCEDURES - BEFORE YOU GO The following procedures apply to all trips involving air travel and/or overnight accommodations both in Province and out of Province. 1.2.1 Obtain Travel Authorization To obtain travel authorization, complete a Staff Development and/or Business Travel Application Form (Appendix A) and obtain approval signature. It is advisable to obtain this approval at the earliest point possible to allow the traveller to take advantage of the lower cost travel arrangements that can be made if sufficient lead-time exists. 1.2.2 Make travel arrangements If a Diners Club MasterCard is required send requests to Accounts Payable in the Controller s Office. There is no charge for the card unless the Rewards Package is purchased. Send Conference Registration, with an approved Staff Development form, to be processed by Accounts Payable. If registration has been prepaid be sure to indicate on the form to prevent a double payment. Air and car rental reservations should be booked with the Diners Club MasterCard to obtain the insurance benefits. Check with Materials Manager if renting a car for travel from Winnipeg. Ask for CAUBU rates for hotel accommodations. Be aware of the hotel and airline policies regarding itinerary changes. Review the Travel Update document in Outlook Public Folders under Accounting Accounts Payable for Travel Agency options.

Best Practice Guidelines Travel and Entertainment April 12, 2005 Page 14 1.3 TRAVEL AND ENTERTAINMENT PROCEDURES WHILE ENROUTE 1.3.1 Use Itinerary as Reference Document for: Airport check-in time information. Airline reservation change requirement instructions. NOTE: If possible, use your old ticket instead of having a new one issued. It is rarely necessary to buy a new ticket, but if this is the case, charge it to your corporate credit card. Examine copies of your charge card refund vouchers and include them with your travel expense report. 1.3.2 Manage receipts and other documentation Retain all receipts for submission with the expense report. Staff traveling together should, to the extent practical, incur their own respective expenses to limit subsequent explanations regarding travel costs per person. 1.3.3 Obtain Cash Advance for Out-of-Pocket Expenditures Go to any ATM to obtain a cash advance against your Diners Club MasterCard. Ensure the amount is reasonable given travel requirements and security issues. 1.3.4 Be aware of Hotel Policies Many hotels charge a cancellation fee for room changes or cancellations. Ensure you manage such changes in the least costly way available. Arrange for a late checkout, if necessary; otherwise you may be charged for an additional night. 1.3.5 Carry Personal Identification Carry identification and proof of citizenship when traveling outside of Canada. Carry College identification to assist in obtaining corporate rates for hotels and car rentals. 1.4 TRAVEL AND ENTERTAINMENT PROCEDURES - WHEN YOU RETURN 1.4.1 Submit expense report Submit expense claim report, complete with appropriate receipts within 5 days of travel. (Appendix A Synopsis of Forms). The claimant is responsible for preparing the claim, ensuring the appropriate signature(s) are obtained and for forwarding the claim to A/P.

Appendix A: SYNOPSIS OF FORMS The Staff Development and/or Business Travel Application Form 1. Is available in Outlook, in Public Folders, under College Forms; 2. Should be completed with estimation of costs before you go on your business trip or attend a course/conference. Travel Update 1. Is available in Outlook, in Public Folders, under Accounting Accounts Payable. 2. Should be used as a reference when planning your business trip or attend a course/conference. Expense Claim Forms There are three different Expense Claim Forms. Please use the appropriate one for your destination and type of currency used. The Canadian Expense Claim Form: 1. Is available in Outlook, in Public Folders, under College Forms; 2. Allows the user to list a maximum of 30 Canadian Currency receipts. The Canadian / Foreign Currency Expense Claim Form: 1. Is available in Outlook, in Public Folders, under College Forms; 2. Allows the user to list a maximum of 30 Foreign or Canadian Currency receipts. The Foreign Currency Expense Claim Form: 1. Is available in Outlook, in Public Folders, under College Forms; 2. Allows the user to list a maximum of 30 Foreign Currency receipts.

Appendix B: Travel and Entertainment Policy Rates - effective October 1, 2004 will be superseded by the most current MGEU Collective Agreement. Description Rate Currency Receipts Required? Personal vehicle mileage rate per km: All areas except those covered by Remoteness Allowance except motorcycles Areas covered by Remoteness Allowance except motorcycles All areas except those covered by Remoteness Allowance Employer authorized use of motorcycles Areas covered by Remoteness Allowance $ 0.368 CDN No $0.41 CND No $ 0.184 CDN No $0.205 CND No Employer authorized use of motorcycles Daily meal maximum 45.00 CDN Yes Daily meal maximum 45.00 US Yes Meals per diem All areas except those covered by Remoteness Allowance 29.05 CDN No Areas covered by Remoteness Allowance 31.15 CDN No Reimbursement for accommodations with relatives / 40.00 CDN No friends Per diem for miscellaneous out-of-pocket expenditures: Commercial Accommodation 3.90 CDN No Commercial Accommodation 3.90 US No Non-commercial Accommodation 2.50 CDN No