POLICY - PROFESSIONAL SUPPLEMENT FUNDS

Transcription

1 EMPLOYEES POLICY - PROFESSIONAL SUPPLEMENT FUNDS 1. PURPOSE This policy establishes the guidelines for the use of professional supplement funds for expenses incurred on University business in relation to teaching, research, professional or general university duties, while maintaining controls for accountability. Professional supplement funds are intended to enhance an employee's work performance, ability or effectiveness and contribute to the overall success of the University of Lethbridge. 2. DEFINITIONS 2.1 Depreciable property is an item of a physical nature having a continuing value to the University of greater than one year, such as furnishings or equipment. 2.2 Incidental is a very small portion, generally meaning 10% or less. 2.3 Encumbered means the estimated amount required to fund the expense is set aside and recorded as a future obligation against the professional supplement entitlements. 3. POLICY 3.1 A Professional Supplement entitlement is a non taxable benefit given to eligible employees for reimbursement of expenses related to the performance of teaching, research and professional duties. 3.2 Expenditures may be claimed against Professional Supplement funds if the following general conditions are met: i. Expenses must relate to and support the performance of teaching, research, professional or general university activities; ii. Claims must be made using the online personal reimbursement system unless otherwise noted (Refer to Appendix A). Payments through the University procurement card are not acceptable; AUTHORITY: RESPONSIBILITY: EFFECTIVE DATE: RELATED POLICIES: Board of Governors Vice-President (Finance & Admin) December 16, 2010 Supersedes policy dated July 1, 2003 Travel and Business Expense Policy and Procedures Hospitality Expense Policy Gift and Recognition Expenditure Policy

2 University of Lethbridge: Policy - Professional Supplement Funds 2/15 iii. Reimbursements relate to actual expenditures and not the payment of an allowance; iv. Expenses must not have been previously reimbursed from any source; v. Expenses must have one over one approval; vi. Title of ownership to any depreciable property acquired with the funding remains with the University of Lethbridge; and vii. Does not result in any personal benefit or if any, it is incidental to the main benefit to the University of Lethbridge. 3.3 Reimbursement of expenses, as a non taxable benefit, is subject to acceptance by Canada Revenue Agency (CRA). Should reimbursement of expenses be deemed taxable by CRA, the University of Lethbridge will not be held responsible or liable for any claim whatsoever arising there from. 4. ELIGIBLE EMPLOYEES 4.1 Each academic year professional supplement entitlements are available for eligible employees as described in 4.2. An academic year is July 1 st to June 30 th. 4.2 Professional Supplement entitlements are classified as: i. Professional Supplement Reimbursement of expenditures relating specifically to the performance of teaching, research and professional duties ii. Professional Allowance The same attributes as professional supplement funds with the addition of reimbursement of expenditures relating to the performance of general university duties, including public relations and entertainment expenditures. Employees must have advanced authority, either as a clear condition of the position held (senior administration) or from a Dean or Executive Director, to incur public relations or entertainment expenses on behalf of the University. Professional Supplement Faculty/Professional Librarians Professor Associate Professor Assistant Professor Qualifying Term Faculty per contract Professional Librarian Excludes Sessionals Professional Allowance Senior Administration President Vice Presidents Associate Vice Presidents Deans Associate Deans Executive Directors

3 University of Lethbridge: Policy - Professional Supplement Funds 3/15 Professional Supplement Academic Assistants Professional Allowance Administrative Professional Officers (APOs) Continuing Probationary Sessional Part time Excludes casual APOs Exempt Support Staff 5. ELIGIBLE EXPENDITURES 5.1 Typical Expenditures Professional Supplement Books Subscriptions Travel Professional memberships Materials and supplies Registration for courses/conferences Communications Charges (business use only) Equipment Refer to Appendix A for complete listing Professional Allowance Books Subscriptions Travel Professional memberships Materials and supplies Registration for courses/conferences Communications Charges (business use only) Equipment Refer to Appendix A for complete listing Public Relations (non partisan in nature) Hospitality of staff or stakeholders Professional Development of Others 5.2 Hospitality and Public Relations Expenses Business expenses, which may include hospitality and public relations incurred by employees in support of the University's mission, will be reimbursed provided the expenses are authorized, reasonable, and appropriately documented. The types of hospitality and public relations expenses incurred for University business may include food, beverages, gifts and social or recreational activities. Employees must have advanced authority to incur entertainment expenses. Refer to Section 4.2 ii.

4 University of Lethbridge: Policy - Professional Supplement Funds 4/15 Public accountability as well as limited budgets requires employees to exercise particular care when incurring and approving hospitality or public relations expenses. Normally, acceptable purposes for hospitality involve a University guest, visitor, or benefactor. 6. ENTITLEMENT AMOUNT 6.1 Annual professional supplement entitlements are provided in accordance with the applicable underlying agreement or employment contract (i.e. Faculty Handbook, APO Policy and Procedures Manual, etc.) 6.2 The entitlement amount is prorated for term and part time employees. 6.3 Where eligibility exists for a portion of the academic year the entitlement will be pro rated on the basis of the amount of time served. 7. CLAIMS 7.1 Submission All claims must be submitted using the online personal reimbursement system (exceptions listed in Appendix A by expense), and within 36 months of the invoice/receipt date. 7.2 Claim balances Only amounts up to the professional supplement fund balance may be claimed (except for depreciable property refer to Section 10). Employees are encouraged to minimize the number of claims submitted during the year by amalgamating expenses to reduce processing costs. Expenses incurred during a period when entitlements are depleted may be claimed at a later date when additional entitlements become available, provided they are claimed within 36 months of the invoice/receipt date, and the individual continues to be in the employ of the University in a position entitled to professional supplement funds. 8. SUPPORTING DOCUMENTATION 8.1 Documentation Claims must include appropriate supporting documentation providing proof of the expense and proof of payment or the claim will be disallowed. The original receipt must be submitted with the claim. Photocopies are not acceptable.

5 University of Lethbridge: Policy - Professional Supplement Funds 5/ Examples The supporting documentation could include: a cash register receipt an invoice credit card receipt credit card statement money order receipt cancelled cheque confirmation Note: The supporting documentation must provide both proof of the expense and proof of payment. For example, it may be necessary to combine an invoice with a credit card statement to provide adequate supporting documentation. In the case of orders placed over the phone by credit card, the credit card statement is accepted as proof of payment. If the order is placed online provide printed documentation to verify reasonability of the expense and the credit card statement to show proof of payment. A receipt by fax is acceptable for car rental where the vehicle is returned after business hours. The receipt must be in the claimant s name. Receipts in another individual s name will require the addition of proof that the claimant reimbursed the purchaser. All original receipts will be retained by Financial Services. Claimants requesting that the original receipt be returned after the claim is processed must provide a detailed explanation. 9. UNSPENT BALANCES 9.1 Carry forward Eligible staff members may carry forward any unused balance of previous years' Professional Supplement entitlements indefinitely, provided the employee remains in a position that is entitled to professional supplement funds. 9.2 Unused balances Upon termination unused balances are forfeited and transferred as follows: Faculty/Professional Librarians xxxx 9601 Academic Assistants xxxx 9601 Administrative Professional Officers xxxx 9601 Exempt Support Staff xxxx 9601 Executive Directors xxxx 6111 Senior Executives xxxx 6111 Unused balances are distributed periodically as per the relevant employee handbook/manual.

6 University of Lethbridge: Policy - Professional Supplement Funds 6/ Termination If an employee leaves the University he/she must submit any outstanding claims within one month following termination of employment. 9.4 Extension beyond termination The employee's supervisor (Dean/Executive Director/VP/President) may grant an extension of the use of the funds to complete any remaining assignment for the University. Extensions generally do not exceed one year. Written approval for this extension must be provided to Human Resources (Pension and Benefits). 10. PURCHASES OF DEPRECIABLE PROPERTY 10.1 Borrowing Ahead i. For a single item of equipment (excludes furnishings) purchased for $1,000 or more that exceeds the current professional supplement balance, the employee may allocate up to a maximum of three years future entitlements toward the purchase. No interest will be assessed on the allocation of future years' entitlements. Current year entitlements will be applied as a first call against the allocation of the future years' entitlements on an academic year basis (every July 1 st ). ii. If the employee leaves the University he/she is required to repay the greater of the amount of future entitlements taken or the net book value of the item Methods of Purchasing Equipment (excludes furnishings) i. Personally Pay for the equipment personally and submit a claim using the online personal reimbursement system. The employee may be asked to bring the equipment to Financial Services for bar coding before the claim will be processed. ii. Through Materials Management For a piece of equipment of $1,000 or more, cellular phone or site license software, prepare an online requisition. Check the box for Professional Supplement Claim in the Special Plans section of the form. The requisition is routed to Financial Services for approval of eligibility of the expenditure and verification of funds available. Financial Services will obtain one over one approval before the requisition will be processed. If approved, Financial Services will then forward the requisition to Materials Management for processing. Please allow Materials Management a reasonable period of time to complete the order.

7 University of Lethbridge: Policy - Professional Supplement Funds 7/ Method of Purchasing Furnishings (excludes equipment) Through Facilities Online Work Request For furnishings on campus only; discuss the request with your faculty or department office first. To proceed with the purchase obtain one over one approval, forward confirmation of approval to Financial Services and prepare a Facilities online work request. Furnishings for home office/studio are not eligible Employees on Leave Purchases of depreciable property cannot be made by an employee while on leave without pay Funding Purchases of depreciable property may be made with professional supplement funds or in combination with research or departmental funds. If research or departmental funds are used to partly fund the purchase then the employee relinquishes the right to acquire the property personally at a later date. The property may not be purchased through combining the funds of professional supplement with personal funds or professional supplement funds of another employee. Professional supplement funds may not be used for Life Cycle purchases or in combination with Life Cycle funding Ownership of Depreciable Property i. University owned All items of depreciable property are being purchased on behalf of the University and remain the property of the University if the employee leaves the employ of the University (exception: Section 10.6 iv.). ii. iii. iv. Barcoded Depreciable property will be issued a barcode and be recorded as University property. Maintenance The maintenance, repairs and insurance costs are the responsibility of the employee. Eligible expenditures may be claimed against professional supplement funds. Buyout Employees may purchase equipment (excludes furnishings) from the University any time after the date of purchase, if prior approval is received from the employee's supervisor. The purchase price will be calculated as the net book value of the equipment. The purchase does not result in any reinstatement of any portion of professional supplement funds that was previously assigned to the purchase of the equipment. Furnishings purchased using professional supplement funds remain University property and cannot be purchased by the employee.

8 University of Lethbridge: Policy - Professional Supplement Funds 8/15 v. Buyout Price April 1, 2005 Effective April 1, 2005 the buyout price for equipment (excludes furnishings) with an original purchase price of less than $5,000 will be determined as follows: After 12 months, 50% of original purchase price After 24 months, 30% of original purchase price After 36 months, 10% of original purchase price After 48 months, no buyout required, ownership may be transferred to employee The buyout price for equipment of $5,000 or more will be the net book value according to the Banner Finance system. vi. vii. viii. Buyout Price Prior to April 1, 2005 For equipment (excludes furnishings) purchased prior to April 1, 2005 the buyout price after 36 months is 1% of the original purchase price. Taxable Benefit If through mutual agreement between the employee and supervisor, the equipment is purchased at a value lower than the net book value, the difference will result in a taxable benefit to the employee. Returned Equipment If an employee leaves the University and does not wish to buy out the equipment then the equipment purchased is turned over to the employee's supervisor. The employee cannot keep any portion or component of the equipment. The applicable department must submit an Equipment & Furnishings Declaration form to Financial Services to transfer it from a Professional Supplement asset to an asset of the department. This is completed to ensure that the inventory system is properly updated. 11. EXCEPTIONS The Vice President (Finance and Administration) has the authority to approve exceptions to this policy.

9 Appendix A - Eligibility of Expenses Claims are made on a reimbursement basis using the online personal reimbursement system unless otherwise noted. Applies to ALL Eligible Expenditures: Supporting Documentation Proof of expense and proof of payment is required with the exception of per diems Description of University business purpose is required Cannot cover a period beyond the period of employment Must not have been previously reimbursed by any source Only the portion related to University business may be claimed Expense Categories and Additional Information (eligible unless otherwise stated): Expenditure Examples Supporting Documentation Office, Phone and Supplies Books Hard cover, paperback Book titles must be provided to verify relevance to position Explanation required for purchases of more than one copy of the same book Communications Cellular charges, Internet Monthly invoices charges Access, Telephone Charges Must be able to justify the business use determination Duplicating Freight by reimbursement Freight through Mail Services Home Office Insurance Interest, bank charges Photocopying DHL Express Purolator Courier Not eligible Professional liability Health insurance for travel outside Canada Flight cancellation Car rental University corporate card (Amex) includes rental car insurance Additional auto insurance required for University business Not eligible Explanation describing what was shipped Mail Services retains supporting documentation Relevance to position must be provided for professional liability insurance Contact Risk and Safety Services regarding insurance Include e books in materials and supplies Business portion of monthly usage charges only Estimate of charges will be encumbered Internet installation and connection fees are not eligible Must be for University business Life insurance is not eligible Employee benefit plans may include health insurance for travel outside of Canada; check with Human Resources In most cases it is not economical to purchase flight cancellation insurance Additional auto insurance only eligible if recommended by Risk and Safety Services

10 University of Lethbridge: Policy - Professional Supplement Funds 10/15 Expenditure Examples Supporting Documentation Materials & Supplies, Supplies Stationery Membership Office Accessories, <$75 (excludes office furnishings see Furnishings) Office Accessories that are not eligible Office Supplies Printing through Printing Services Professional associations Dues or fees which are personal, recreational, athletic or social in nature are not eligible Desktop organizers, magazine files, desk clock, desk lamp, power bar, extension cord, frames for documents related to University business, desk pad, book ends, chair mat, foot rest Not eligible: Throw rugs, personal care, safety supplies, cleaning supplies, materials handling equipment, fans, air cleaners, heaters, other Consumables such as paper, toner, file folders, storage boxes, pens, media storage (CD s, DVD s), stapler, hole punch, computer cables Business cards, posters (excludes printing of instructional material) Printing Services completes internal requisition Instructional material is an operating expense of the department; not eligible for professional supplement Must be used or consumed in the performance of University business Membership cannot extend beyond the period of employment Union dues are not eligible An official tax receipt issued cannot be used for tax purposes if reimbursed For on campus office/studio only accessories for home office/studio are not eligible Must be used primarily for University business Any personal use of these items must be incidental Contact Risk and Safety Services regarding air quality concerns Must be used primarily for University business Any personal use of these items must be incidental Must be for University business Rental Facilities Subscriptions Uniform and special clothing Not eligible Subscription titles must be provided to verify relevance to position Operating expense if employee is required to wear; not eligible for professional supplement

11 University of Lethbridge: Policy - Professional Supplement Funds 11/15 Expenditure Examples Supporting Documentation Equipment, Furnishings and Computers Cellular phone Blackberry, iphone Justification as to relevance to through Materials current position held must be Management provided Computer (See Equipment for monitor, printer) Ergonomic seating Equipment Hand Held, Media Equipment, Office Equipment by reimbursement Remains University property upon termination cannot be purchased by employee Any personal use must be incidental Desktop, Laptop Once every 18 months justification required for purchases prior to 18 months Depreciable property Must be bar coded prior to approaching IT Solutions Centre for set up or assistance Not eligible: Non standard office chair, back rests Monitor, printer, GPS, ebook reader, calculator, PDA, ipod, ipad, camera, projector, scanner, label maker, shredder Justification as to relevance to current position held must be provided Consult with Employee Health and Wellness Coordinator regarding ergonomic assessment Depreciable property Must be used primarily for University business Any personal use of these items must be incidental Equipment through Materials Management Single piece of equipment purchased for $1,000 or more Quote obtained from manufacturer or suggested vendor Depreciable property Computer (Desktop or Laptop) once every 18 months Furnishings: for on campus office/studio only, through Facilities online work request only; not eligible for reimbursement Software by reimbursement Software through Materials Management Desk, work station, under desk pedestal, chairs, bookcase, file cabinet, bulletin board, white board, waste basket, table, keyboard tray Software for which the University maintains a site license Discuss with your faculty or department office Requires one over one approval Recommendation from IT Solutions Centre to submit an online requisition Furnishings for home office/studio are not eligible Remains University property upon termination cannot be purchased by employee The University has site licenses for common software. IT will instruct the user to submit an online Materials Management requisition where necessary Tools (Apprentices) Not eligible Reimbursement for the cost of tools required to perform work is taxable therefore not eligible

12 University of Lethbridge: Policy - Professional Supplement Funds 12/15 Expenditure Examples Supporting Documentation Gifts, Hospitality and Public Relations Refer to Section 4.2 Donations Not eligible University of Lethbridge funds cannot be used to make a donation to another not forprofit charitable organization Gifts (Non employees) Gifts (Employees) Professional Allowance funds only Hospitality Public Relations and Public Relations (Alcohol) Gifts given to a University guest, visitor or benefactor Ethical and proper business practices must not be compromised Appreciation or recognition gifts to employees or sympathy gifts to employees, such as a memento or flowers Hospitality or business entertainment involving an external individual, including food, beverages, gifts and social activities Hospitality or business entertainment involving an external individual such as a visiting speaker, or purchasing a table at an external event Full name of gift recipient Justification for the expenditure Complete a Gift/Recognition Form for taxable gifts Eligible Professional Allowance expense only Full name of gift recipient Justification for the expenditure Complete a Gift/Recognition Form for taxable gifts Detailed receipt List of attendees Explanation of the business purpose Detailed receipt List of attendees Explanation of the business purpose President and Vice Presidents are exempt, by virtue of their position held All sponsorship initiatives are to be managed through the University Advancement office Employees must have advanced authority, either as a clear condition of the position held (senior administration) or from a Dean or Executive Director, to incur entertainment expenses on behalf of the University Refer to the Gift and Recognition Expenditure Policy Cash and near cash such as gift certificates are taxable; complete a Gift/Recognition Form Gifts of alcohol are not eligible May not exceed $500 per individual per year Cash and near cash such as gift certificates are taxable; complete a Gift/Recognition Form Gifts of alcohol are not eligible May not exceed $500 per individual per year Refer to the Gift and Recognition Expenditure Policy Employees must have advanced authority, either as a clear condition of the position held (senior administration) or from a Dean or Executive Director, to incur entertainment expenses on behalf of the University Refer to Hospitality Expense Policy Employees must have advanced authority, either as a clear condition of the position held (senior administration) or from a Dean or Executive Director, to incur entertainment expenses on behalf of the University Refer to Hospitality Expense Policy

13 University of Lethbridge: Policy - Professional Supplement Funds 13/15 Expenditure Examples Supporting Documentation Recruitment Not eligible Recruitment is an operating expense of the department; not eligible for professional supplement Regalia Regalia rental or purchase Provide explanation regarding involvement in convocation or other University event Social functions Social functions involving employees and their spouses, partners and other family members such as a going away lunch Detailed receipt Explanation of the business purpose List of attendees Employees must have advanced authority, either as a clear condition of the position held (senior administration) or from a Dean or Executive Director, to incur entertainment expenses on behalf of the University Refer to Hospitality Expense Policy Gratuity must be reasonable (maximum 15%) Payments to Others, Research and Rights Payments to others Reimbursement of expenses paid on behalf of others Reimbursement of meal expenses for a visiting researcher Supplement to research funding for eligible expenses Conference registration for an undergraduate student who is presenting research Supplement to research funding for eligible expenses Miscellaneous cheque requisition with one overone approval Cannot claim per diems for another individual; only actual costs may be claimed Must provide detailed justification as to how the expense relates to and supports the claimant s research activities Must provide detailed justification as to how the expense relates to and supports the claimant s research activities Rights Broadcast, film Wages through Payroll Authorization form; not eligible for reimbursement Research Assistant, Student marker Complete a Payroll Authorization form with oneover one approval Estimate of wages will be encumbered Travel, Meals and Training Fines and penalties Not eligible Parking and other traffic fines are not allowable expenses Immunizations Immunizations required when travelling to other countries on University business Proof of travel must be provided

14 University of Lethbridge: Policy - Professional Supplement Funds 14/15 Expenditure Examples Supporting Documentation Meal (Public Relations) Hospitality or business Detailed receipt entertainment involving an List of attendees external individual such as Explanation of the business a visiting speaker, or purpose purchasing a table at an external event Meal (Non Travel) (excludes hospitality or business entertainment) Planning or education session Networking session Community outreach Work related function that the employee is encouraged to attend e.g. Scholarship Dinner Prior approval of the Dean/Executive Director Detailed receipt Explanation of the business purpose Employees must have advanced authority, either as a clear condition of the position held (senior administration) or from a Dean or Executive Director, to incur entertainment expenses on behalf of the University Refer to Hospitality Expense Policy Gratuity must be reasonable (maximum 15%) Cost of employee only An official tax receipt issued for a portion of the cost cannot be used for tax purposes if reimbursed Gratuity must be reasonable (maximum 15%) Passport Not eligible Personal expense per CRA Registration Fees by reimbursement Conferences Registration Fees by invoice or miscellaneous cheque requisition Paid directly in very limited circumstances only such as a volume discount or where payment by wire in a foreign currency is Direct pay invoice or miscellaneous cheque requisition with one over one approval Training Travel Tuition required Specific and general employment related training Accommodations, Airfare, Bus Fare, Car Rental, Daily Incidental (minor out ofpocket expenses while travelling outside of Lethbridge), Fuel, Ground Transportation, Meal (per diem), Meal (travel), Mileage, Parking related to off campus University business, Taxi Specific and general employment related training No receipt required if staying with family or friends (claim Accommodations, per diem) Submit boarding passes upon return Receipt by fax is acceptable for after hours car rental return Meals charged to hotel rooms must be supported by detailed receipts Detailed receipt listing all fees Related to employee s current or future responsibilities Personal interest training not eligible Accommodation limited to reasonable single occupancy rates May not exceed the lowest logical cost of air transportation Cannot claim per diems for another individual; only actual costs may be claimed Where actual meal costs are claimed instead of per diems detailed receipt required Gratuity must be reasonable (maximum 15%) Fees which are recreational in nature are not eligible Personal interest training not eligible

15 University of Lethbridge: Policy - Professional Supplement Funds 15/15 Expenditure Examples Supporting Documentation Visa/ Work Visa Visa for entry into a foreign country Travel costs related to visa application Outbound only, application to work in Canada is not eligible Must be required for University business