Travel and Expenses Policy and Procedure Overview

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Travel and ExpensesPolicy and Procedure Overview

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Responsibilities

• It is the responsibility of claimants, internal
  controllers and one-over-one approvers to ensure
  adherence to the University policy and procedures
  (UAPPOL)
• To review the Universitys policy on Travel and
  Expenses, see the SMS website at
  www.sms.ualberta.ca / click the Travel
  Information link

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Timeliness

• Remission for expenses should be within the same
  budget/fiscal year that the expenses were
  incurred

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Hosting

• Hosting (account 503261) expenses are expenses
  incurred when conducting business on behalf of
  the University and hosting someone external to
  the University
• A detailed receipt must be submitted. The
  receipt should include the names of the attendees
  and the purpose of the meeting

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Staff/Internal Business Activity

• Internal Business Activity expenses (account
  503301) are incurred when provided for staff who
  are internal to the University (i.e. retirement
  or employee appreciation function)
• Detailed receipts are required and it is
  recommended that you provide a list of the names
  of the attendees along with the purpose of the
  event

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Catering

• Catering expenses (account 502167) are used when
  the host of the function is a department or
  faculty and the guest list could include people
  both internal and/or external to the University
• The signature of the Financial Authority is
  required

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General Expenses

• General expense or out of pocket expenses must
  be supported by original detailed receipts as
  provided by the supplier
• One-over-one approval, account authorization, as
  well as the signature of the claimant are
  required

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Airline Tickets

• Reimbursement is for airline tickets occurs only
  after the travel has occurred and is for
• actual fares paid
• economy airfare via the most direct route
• It is recommended that you purchase airline
  tickets using a TAP form. TAP forms are
  available on the SMS website at
  www.sms.ualberta.ca in the Forms Cabinet
• A copy of the ticket (paper or electronic) and
  proof of purchase is required

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Business or First Class

• Business or First Class tickets must have prior
  approval of the VP (Academic) Provosts Office

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Vehicle Expenses

• Vehicle rentals should be for a compact,
  mid-sized or full-size vehicle only (depending on
  need)
• Rental reimbursement includes
• Rental Fee
• Fuel Expenses
• Rental cars are covered by the Universitys
  Insurance Policy in Canada and USA

• Private automobiles expenses used for University
  business will be reimbursed at a rate of 39
  cents/kilometer
• Private automobiles used for University business
  are not covered by the Universitys Insurance
  Policy

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Ground Transportation

• Ground transportation expenses are for taxis and
  public transportation to and from airports,
  hotels and meeting places
• Receipts are required for transportation in
  excess of 25/per trip
• It is recommended that you provide a breakdown of
  trips taken if submitting claim for multiple trips

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Meals

• The per diem allowance is
• 45 CAD per day 66 CAD (outside Canada/USA)
• Breakfast 10 Breakfast 15
• Lunch 10 Lunch 15
• Dinner 25 Dinner 36
• The actual cost of meals and gratuities may be
  claimed if documented by original receipts

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Accommodation

• Reimbursement for accommodation will be limited
  to the single occupancy rate for standard
  accommodation
• Original itemized receipts are required

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Reimbursable expenses

• Work-related phone calls
• Gratuities for service other than meals (i.e.
  bellhops, redcaps)
• Laundry and valet charges if travel exceeds 7
  days
• Special visas to enter a country
• Flight cancellation insurance
• Expenditure for off-campus parking
• Conference/Seminar registration fees
• Foreign exchange fees to convert travelers
  cheques etc.
• Excess baggage charges as warranted by need

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Non-reimbursable expenses

• Personal travel insurance
• Expenses of a traveling companion
• Business or first class air travel
• Personal phone calls
• In-room mini bar and movies
• Laundry and valet charges
• Interest charges on corporate or personal credit
  card
• Cancellation fees for failing to cancel
  transportation or hotel reservations
• Additional private auto insurance
• Optional conference activity fees
• Child/dependent care
• Passports and passport pictures

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GST

• Receipts must show the GST registration number
  and the GST charged (5 effective January 2007)

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Travel Expense Reminders

• Remember that.
• When combining business with personal travel, the
  Universitys portion is limited to the related
  reimbursable expenses
• Reimbursement cannot take place until the trip
  has been completed

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Travel Advances

• Requests for a travel advance should be made two
  weeks prior to date of departure
• Travel advances require one-over-one approval
• It is recommended that travel advances to be
  reconciled to the actual expense claim within 2
  weeks of the completion of the trip

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Payment Information

• After approvals are provided, a payment is
  generated for the next scheduled payment batch
• Payment batches are run every Monday and Thursday
• Payments
• Non-employees receive a printed cheque
• Employees receive direct deposit to bank account
  (Direct deposit received within 4 days (depending
  on banking institution))

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Approvals

• Internal control reviews for original detailed
  receipts, signatures and correct SpeedCode, GST
  coding and compliance with funds restrictions
• One-over-One approves the expense claim and as
  the ultimate signing authority can overrule the
  recommendation (s) of the Internal Control
  regarding compliance
• Financial Authority or account holder approves
  expenses (if other than the one over one)

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Approvals for Specific Funds

• Specific funds such as research projects or
  contracts will have their own guidelines that
  must be followed
• It is important to review of the agency policy
  guide book or terms of the contract to determine
  expenses that are reimbursed by those funds

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Source Documentation

• For audit purposes, you must retain all travel
  and expense forms along with supporting
  documentation for six years plus the current year

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Out of Pocket expenses

• Recommended Purchasing Methods 
• Preferred Supplier Agreements
• Corporate Card
• LDP less than 5000
• Over 5000 a Purchase Order To be issued
• Foreign Source Goods (Including US) greater
  than 1600 Canadian (contact Nicole Smereka)

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Compliance Audit at the Department

• INCLUDES THE REVIEW OF
• Corporate Purchasing Card transactions
• Travel claims Expense reimbursements
• Delegation of Signing Authority forms
• During the review of the above systems, other
  more specific areas are looked at

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Corporate Purchasing Card

• Compliance expectations are
• Organized files and monthly reconciliation of
  Purchasing Card statements
• Receipts for all transactions
• Authorizing signatures for each statement
• Correct GST coding and GST amounts
• Compliance of the Corporate Purchasing card
  system agreement
• Customs Compliance on Corporate Purchasing Card
  purchases

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Corporate Purchasing Card

• Compliance expectations
• Receipt retention, original receipts not
  MasterCard Chits or un-priced packing slips
• Authorizing Signatures, cardholder signature,
  internal control signoff and one/one for travel
  and hosting transactions
• Correct GST coding and GST amounts, assure
• non GST transactions have no GST amount or GST
  code N
• Purchases of books have GST code book
• Any purchase that have less than the full GST
  amount are overridden with the correct GST amount
• (I.e. Tipped purchases or grocery items)
  continued

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Corporate Purchasing Card

• ...Correct GST coding GST amounts (continued)
  ..
• Tipped purchases restaurants and hosting
• Hosting Example January 15,2008 MasterCard
  charge at Fiores Restaurant in the amount of
  115.00 (92.50 4.63 GST 97.13) plus tip of
  17.87
• - System defaults GST of 5.48 on this
  transaction based on the total charge of
  115.00- override with the actual GST amount of
  4.63
• If the receipt is inclusive of GST and you
  want to know what portion of the 97.13 is
  GST, then take the amount that
• includes GST multiply by 5 then /105 GST
• 97.13 5 / 105 4.63 GST
• override with the actual GST amount of 4.63
  continued

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Corporate Purchasing Card

• .Correct GST code GST amount (continued)..
• Tipped purchases taxi fares
• Taxi Fares Example on March 1, 2008 a MasterCard
  charge for Yellow Cab in the amount of 27.00
  appears on the statement. The total receipt
  includes a tip of 5.00 but the GST is not shown
  separately (22.00 plus 5.00 tip). Receipt
  states a registration number that GST is
  inclusive.
• We need to determine the GST amount included in
  the 22.00 as the system will default the GST
  amount based on the total charge of 27.00.
• Take the net amount including GST multiply by 5
  and divide by 105
• 22.00 5 / 105 1.05 override the system
  defaulted GST with the actual GST amount of 1.05

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Corporate Purchasing Card

• Compliance of Purchasing card agreement
• Site coordinator - monitors cardholders
  compliance with CPS Manual
• Completing monthly reconciliations and using
  appropriate accounts
• Adhering to the Corporate Purchasing Card
  restricted purchases list
• Compliance Auditor looking for compliance of the
  Corporate Purchasing System agreement. i.e.
• split transactions to circumvent card limits
• personal transactions
• adherence to the restricted purchases list

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Customs Compliance

• When ordering goods from out of Canada, be
  careful to retain the required customs paperwork
• Order form acknowledgement (amount to be
  declared for customs)
• Packing slip
• Commercial invoice
• Accounts Payable invoice
• If you are doing out of country ordering, our
  customs division can offer assistance by calling
• 492-3435 (Chad) or 492-6829 (Nicole)

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Travel Expenses Compliance

• Many areas are looked at when reviewing a Travel
  Claim or Expense Reimbursement for Compliance
• Authorizing Signatures on claims attestation
  forms
• Original receipts
• GST coding and GST amounts
• One over one authorization on all travel
  expense claims
• Attestation Forms if required
• Boarding Passes on air fare (recommended)
• For US dollar expenses exchange rates shown
• Checking delivery address on computer purchases

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Travel Expense GST coding

• The TE system defaults GST into every expense
  line
• GST is defaulted at 5, with the exception of
  Receipted Meals, Per Diem, Hosting, Admin
  Allowance, and Ground Transportation these are
  defaulted at 4 GST
• Almost all expenses outside of Canada have no GST
  if there is no GST, be sure to check off the no
  GST box
• Be aware of the GST on accommodations and
  airfare!
• Tally up the GST on accommodations (not including
  hotel tax) and put this amount in the GST column.
  
• Airfare outside of Canada is usually less than 5
  GST. Enter the GST amount on the receipt If
  there is no GST is shown, check off the no GST
  box

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GST corrections in TE module

• The following example is of an airfare
  transaction where the GST defaulted, based on the
  total airfare amount and should have been
  overridden with the actual GST amount on the
  receipt.
• The out-of country airfare receipt shows only
  1.80 in GST. Credit back the entry as it was
  keyed in the original report (with the incorrect
  GST amount) and debit the same with the correct
  GST amount

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Delegation of Signing Authority

• Governors of the University, confers authority
  upon Deans, Chairs or Directors of Units to make
  expenditures within the amounts and scope of the
  accounts allotted to them in the budget.
• Signing authority may be delegated to senior
  administrative persons within Units.
• Holders of restricted funds (research, endowment
  spending and other trust funds) may delegate
  signing authority.

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Delegation of Signing Authority

• Delegation is invalid if precluded under
  University policy, or donor/sponsor terms and
  conditions (i.e. one-over-one approval cannot be
  delegated),
• Only the account holder can authorize delegation.
• The account holder may be able to delegate
  responsibility however, the account holder
  cannot delegate accountability.
• Delegation must be in writing.
• Authorization to approve transactions can only be
  delegated to staff with the skill and knowledge
  necessary for the effective exercise of the
  authority.
• The delegator exercises control sufficient to
  ensure the discharge of his/her responsibilities.
• Effective procedures for the regular review and
  approval of the actions of the delegate must be
  in place and adhered to.
• The account holder cannot delegate the signing of
  financial reports.
• A delegate may not authorize disbursements for
  which he/she is the recipient (e.g. the account
  holder must sign payments to a delegated signing
  authority for expenses personally incurred by the
  delegate), or for which the delegate might be
  seen as having received some personal benefit
• https//www.conman.ualberta.ca/stellent/groups/pub
  lic/_at_finance/documents/procedure/pp_cmp_058911.hcs
  pP1_0

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Where to go for help?

• The Travel division of SMS Compliance related
  inquiries
• For interpretation of the guidelines/GST coding
  for TE
• Joyce Assen at joyce.assen_at_ualberta.ca or
  492-3275
• For Compliance inquiries
• Pat St. Jean at pat.stjean_at_ualberta.ca or
  492-2501
• Corporate Purchasing card inquiries Barb Hubbard
  492-7366 barb.hubbard_at_ualberta.ca
• Customs inquiries Nicole Smereka 492-6849
  nicole.smereka_at_ualberta.ca
• Delegation of signing authority UAPPOL online
  policy
• https//www.conman.ualberta.ca/stellent/groups/pub
  lic/_at_finance/documents/procedure/pp_cmp_058911.hcs
  p

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Thank you for taking the Travel and Expense
policy seminarIf you have any
questions/feedback, please email Joyce Assen at
joyce.assen_at_ualberta.ca