Collaborative Stakeholder Group. Payment of Honoraria and Reimbursement of Expenses Policy

Transcription

1 Collaborative Stakeholder Group Payment of Honoraria and Reimbursement of Expenses Policy As 15 th October

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3 Contents 1 Policy Purpose 1 2 Policy Statement 1 3 Scope 1 4 Guiding principles 2 5 Criteria for the use of the Fund 2 6 Approval process 3 7 Method of payment 3 8 Tax considerations 4 Schedule A Rules and limits for payment of honoraria and reimbursement of expenses 5 Schedule B CSG Honoraria and reimbursement of expenses application form. 6 Schedule C CSG Chairperson Contact Details and 7 Schedule D Bank Account Details Form 8 Collaborative Stakeholder Group 8 Schedule E IR330 Tax declaration form 9 Doc # Page i

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5 1 Policy Purpose To ensure the Collaborative Stakeholder Group ( CSG ) Honoraria and Reimbursement of Expenses Fund ( the Fund ) is used for appropriate purposes and to state the necessary criteria which an application must fulfil in order to qualify for payment from the Fund. 2 Policy Statement For the purposes of this policy: a) Reimbursement of expenses refers to a payment that is made to a CSG member to reimburse their actual costs incurred participating in CSG activities or attending CSG meetings, where those costs are not paid for, or entitled to be paid for, by another organisation. These payments will likely not be subject to tax, refer to section 8 for more detailed tax information. b) Honorarium refers to a payment that is made to a CSG member in recognition of their services participating in CSG activities or attending CSG meetings, where the CSG member is not paid, or entitled to be paid, for those services by another organisation. These payments will likely be subject to withholding tax, refer to section 8 for more detailed tax information. The Fund is limited. Therefore, a detailed policy is required to ensure that the use of the Fund is sustainable over the lifetime of the project. 3 Scope This policy will provide parameters that will help to ensure the use of the Fund is appropriate and related to CSG business. The Fund is only to be used for the following purposes: a) To reimburse actual expenses incurred by CSG members in attending CSG meetings or CSG led engagement activities, where those expenses are not being reimbursed by, or are not entitled to be reimbursed by, another organisation. b) To compensate CSG members for their services in attending CSG meetings or CSG led engagement activities, where those members are not being paid, or are not entitled to be paid, by another organisation. The Fund must not be used for other purposes and any other costs must be funded by alternative means. As a general rule, commercial sector CSG representatives will likely not receive an honorarium for attending CSG meetings and non-commercial sector representatives may be eligible to receive an honorarium. Commercial sector CSG members are defined as any CSG member that is representing a sector primarily because of the potential impact that the project may have on that sector s business and/or financial interests. Non-commercial sector CSG members are defined as any CSG member that is representing a not-for-profit sector s interests or is a community representative. However in some exceptional circumstances this general rule may not hold true. All payments from the Fund will occur at the discretion of the CSG Chairperson and the Project Manager. Doc # Page 1

6 4 Guiding principles The use of the Fund is a privilege, not a right. Its use must be able to withstand the test of public scrutiny. Approval of any expenditure is at the discretion of the CSG Chairperson and Project Manager. All expenditure decisions must adhere to the following principles: a) the expenditure must be an actual and reasonable expense; b) the expenditure must contribute to CSG aims and activities; c) the expenditure must be authorised by the CSG chairperson and the project manager; d) the expenditure must be made with integrity; e) the expenditure must be moderate and conservative in the circumstances; f) the expenditure will be subject to the tax considerations outlined in section 8; g) the decision must be transparent; and h) the expenditure must be both perceived and actually be appropriate (taking into account both the individual transaction and the total amount of expenditure in that area). 5 Criteria for the use of the Fund Before incurring any expenditure a CSG member must have made a determination that the costs to be incurred are both appropriate and justifiable in the circumstances. When making this determination, the CSG member shall have regard to: a) the guiding principles listed in section 4 of this policy; b) Schedule A to this policy: Rules and limits for honoraria and reimbursement of expenses; c) the availability of funds remaining within the Fund; and d) the actual or perceived private benefit that the public may consider has occurred as a result of the proposed expenditure. Wherever practicable, approval for use of the Fund must be obtained before the expenditure is incurred. The term CSG led engagement activities refers to potential engagement with farming and local communities and community and general public stakeholders. As described in the Stakeholder Engagement Strategy, engagement with these stakeholders will be determined and led by the CSG. Hence as these activities are yet to be determined and will occur at variable intervals, they are by nature separate to the day-to-day business of the CSG and are therefore treated differently to the CSG meetings. Specific criteria relating to the purposes for which the Fund can be used is outlined below. Purpose 1 - Reimbursement of expenses incurred by CSG members attending and participating in CSG led engagement activities and CSG meetings It is expected that any expenditure incurred by CSG members under this purpose will be of a small scale and as a consequence of their participation in the engagement activities or CSG meetings, and will be limited to: a) Travel costs; b) Accommodation costs; and c) Meal costs. Reimbursement of expenses from the Fund may involve any combination of the above costs depending on the circumstances of the engagement activity and CSG member in question. Expenses will not be reimbursed where those costs are being reimbursed by, or are entitled to be reimbursed by, another organisation. Page 2 Doc #

7 Purpose 2 - Honoraria for the services of CSG members attending CSG meetings and CSG led engagement activities It is anticipated that participating in CSG led engagement activities and CSG meetings will require a significant time commitment. In recognition of this commitment, in some cases honoraria may be made to CSG members for time attending CSG meetings or CSG led engagement activities. The use of the Fund for this purpose should help to guarantee the membership of the CSG is balanced with perspectives and representatives from all stakeholder groups. Due to the limited funds available, honoraria will not be made to CSG members who are being paid by, or who are entitled to be paid by, another organisation to attend the CSG meetings. CSG member participation in CSG led engagement activities is considered a service to the project and these activities may occur outside of normal working hours. Hence in some cases honoraria may be made to CSG members, for attending CSG led engagement activities, in addition to any payments a CSG member may or may not be receiving from another organisation. This will occur at the discretion of the CSG Chairperson and the Project Manager and may depend on the circumstances of the engagement activity and of the CSG member in question. Nothing stated explicitly or implied in this policy will allow for payments to be made where the payments: do not meet the guiding principles set out in section 4); are not legally allowed to be made; do not meet the other criteria set out in this section; do not receive the CSG Chairperson s approval; do not receive the Project Manager s approval; and would not stand up to the test of public scrutiny. 6 Approval process CSG members are responsible for obtaining approval from the CSG Chairperson and the Project Manager before any Fund expenditure is incurred. For approved expenditure to be claimed, the CSG members must complete the CSG honoraria and reimbursement of expenses form and submit it to the Policy Administrator for the CSG Chairperson and Project Manager to approve. All relevant documentation must be provided to support the application, including: a) original receipts and tax invoices; b) the name of the CSG member involved; and c) the reasons for the expenditure on that CSG activity. The CSG Chairperson and Project Manager have the discretion to not approve an application for payment from the Fund. CSG members will be responsible for any expenditure that has not been approved by the CSG Chairperson and the Project Manager. A copy of the CSG honoraria and reimbursement of expenses application form is attached as Schedule B. 7 Method of payment In order for the payments to be made, CSG members will need to supply their bank account number and fill out an IR330 declaration form. The relevant forms to complete these tasks are included as Schedules D and E of this policy. Doc # Page 3

8 In order for payments to be made, a CSG honoraria and reimbursement of expenses application form with the required supporting documentation will have to be with the Policy Administrator by the 15 th of a given month. Acceptable methods of delivery for the forms include; , postal and physical delivery. All necessary contact details are included as Schedule C of this policy. Payments will be made to the CSG member s designated bank account on the 15 th of the month following the acceptance of their claim for forms received in the previous month. 8 Tax considerations Generally: a) Reimbursement of expenses actually incurred will not be subject to withholding tax; and b) Payment of honoraria will be subject to withholding tax. Taxes on honoraria given to CSG members will be taxed at the current New Zealand withholding tax rate. This rate is currently 33%. However, it is recommended that CSG members take independent tax advice as depending on each individual s circumstances, the payment of honoraria and reimbursement of expenses may give rise to end of year tax liability. Page 4 Doc #

9 Schedule A Rules and limits for payment of honoraria and reimbursement of expenses 1. Non-allowable expenditure In no circumstances shall the Collaborative Stakeholder Group ( CSG ) Honoraria and Reimbursements Fund ( the Fund ) be authorised for the following: Expenses that are, or may be perceived to be, lavish or extravagant under the circumstances. The purchase of property, goods or services for personal use or for a reason that is not related to CSG activities. Flight costs for either a CSG member attending a meeting or attending a CSG led engagement activity. 2. Potentially allowable expenditure A list of expenditure that has been identified as being open for approval by the CSG chairperson and Project Manager (in certain circumstances) is set out below: Caution Any expenditure that has been identified below may be approved but must first: meet the guiding principles set out in section 4 of this policy; and have been determined as appropriate and justifiable by the CSG Chairperson and Project Manager in accordance with the criteria set out in section 5 of this policy. Reimbursement of actual expenses incurred by CSG members attending and participating in CSG led engagement activities and CSG meetings Travel Costs: To cover the costs of travel for a CSG member attending and participating in a CSG led engagement activity or meeting. Allowable expenditure: $0.77/km up to a maximum claim of $ per activity or meeting. Accommodation Costs: To cover the costs of accommodation for a CSG member attending and participating in a CSG led engagement activity or meeting. Allowable expenditure: up to a maximum claim of $ per night or meeting. Meal Costs: To cover the costs of lunch for a CSG member attending and participating in a CSG led engagement activity: Allowable expenditure: up to a maximum claim of $25.00 per day To cover the costs of evening meal for a CSG member attending a CSG meeting: Allowable expenditure: up to a maximum claim of $55.00 per day. Honoraria for the services of CSG members to attend the CSG meetings and CSG led engagement activities Honoraria: In recognition of a CSG member s time spent attending or participating in the CSG meetings or CSG led engagement activities. Allowable expenditure: up to a maximum claim of $ per day Honoraria are considered taxable income and are taxed at the withholding tax rate of 33%. Doc # /v9 Page 5

10 Schedule B CSG Honoraria and reimbursement of expenses application form. Name CSG activity Dates Hours How time was spent Expenses Dates Details Amount Meeting Expenses Travel Costs Accommodation Costs Meals - Lunch Meals - Dinner (Not to exceed $225/ day) (Not to exceed $225/ day) (Not to exceed $225/ day) (Not to exceed $225/ day) Subtotal for meeting expenses $0.77/km (Not to exceed $248/day) $0.77/km (Not to exceed $248/day) $0.77/km (Not to exceed $248/day) $0.77/km (Not to exceed $248/day) Subtotal for mileage (Not to exceed $130/night) (Not to exceed $130/night) (Not to exceed $130/night) (Not to exceed $25/day) (Not to exceed $25/day) (Not to exceed $25/day) (Not to exceed $55/day) (Not to exceed $55/day) (Not to exceed $55/day) Subtotal for other expenses Total amount owing to CSG member I have given my bank account details and filled in IR330 form to the Policy Administrator (please tick the box to confirm) Member s signature: Date: Chairperson s signature: Date: Project Manager s signature: Date: Please attach receipts for all listed expenses, sign the form and send to the Policy Administrator via , postal or physical delivery.

11 Schedule C CSG Chairperson Contact Details Name: Bill Wasley bill@wasleyknell.co.nz Phone number: P: M: Postal address: To CSG Chairperson C/O Healthy Rivers Waikato Regional Council 401 Grey St Private Bag 3038 Waikato Mail Centre Hamilton 3240 Doc # /v9 Page 7

12 Schedule D Bank Account Details Form Collaborative Stakeholder Group BANK ACCOUNT DETAILS FOR CSG MEMBERS Bank Account number in full: Name of Bank: Branch: Account Name: Signed: Date: Full Name: Organisation (if any): Postal address: Home phone number: Business phone number: Mobile number: Fax number: An IR330 form needs to be completed in addition to this form. Non completion means a tax rate of 49c.per $

13 Schedule E IR330 Tax declaration form Please click on the link below to access the IR330 tax declaration form. Send the completed form to the Policy Administrator. Contact details for this individual can be found in Schedule C of this policy. Doc # /v9 Page 9