POLICIES Page: 1 of 17 Category: Compensation Policy: Travel Policy 5-10 Policy Marine Atlantic Inc. recognizes that employees may be directed and/or required to incur travel away from their normal place of work in the performance of employment duties. When such travel is incurred they shall be reimbursed in accordance with this policy. For employees covered by a collective agreement, where applicable, special provisions provided for in the collective agreement shall override this policy. Travel covers a large spectrum of legitimate activities that are necessary to support delivery of services to our customers and key stakeholders. Travel supports the direct delivery of the core mandate and operations of the corporation and its departments. Travel may also support other corporate objectives and priorities. Trips taken in the normal course of MAI business and not involving air travel require pre-approval based upon the limits outlined in Appendix A. This would include, but is not limited to: Trips onboard MAI vessels taken in compliance with this policy as regards lodging and per diems; Trips that are implicit or explicit to an employee s ability to assist in direct delivery of the core mandate and operations of a department; Trips taken by employees whose presence is required in an emergency situation Travel, whose purpose is outside the normal course of MAI business or the core mandate of the corporation and its departments, or where other exceptions apply, requires pre-approval at the VP level or above. This would include but is not limited to: Trips where air travel is required; Trips outside MAI s normal areas of operation, specifically Sydney, North Sydney, Port aux Basques, St. John s and Argentia; Training and Manager s Forums
Page: 2 of 17 1.0 DEFINITIONS The following definitions apply for the purpose of this procedure: 1.1 Appropriate documentation: all relevant approval forms, legible receipts, statements and other forms of expenditure support required for Marine Atlantic expense document retention and Canada Revenue Agency requirements. 1.2 Approver: all travel must be pre-approved at the appropriate level as outlined in Appendix A. Post travel approval is required if the total cost exceeds: (1) the pre-approved amount by 20% or (2) the original Approvers limits as outlined in Appendix A. Individual managers will continue to approve all other travel and expense claims. 1.3 Blanket Travel Authority (BTA): authorization for travel which is continuous or repetitive in nature, with no variation in the specific terms and conditions of trips and where it is not practical or administratively efficient to obtain prior approval for each individual trip. Any exceptions to the blanket travel authority (BTA) parameters shall require that the individual trip be specifically approved, prior to travel status, where possible. BTA does not apply to groups of employees. Employees may have more than one BTA simultaneously. 1.4 Claimant: any person making a claim under this policy and procedure terms 1.5 Employee: any Marine Atlantic employee 1.6 Group pre-approval: a group of employees that are required to travel for the same purpose on a single authorization. 1.7 Travel Plan: a departmental level travel plan listing anticipated itemized travel costs for a specified period of time. Travel plans may be utilized in situations where departments and managers can predict in detail who will need to travel, and when and where. A travel plan should include sufficiently detailed travel cost estimates and a rationale, as set out in Appendix B (Table 1 Checklist of Trip Authorization Elements), where the approved plan is to be used to confer expenditure initiation approval for travel. Travel plans can be produced on a monthly, quarterly, semi-annual or annual basis, depending on departmental operational needs. 1.8 Training Plan: a training department plan listing anticipated courses as well as the costs associated with each course. This plan is signed off annually by the CEO and Board of Directors.
Page: 3 of 17 2.0 RESPONSIBILITIES 2.1 VP Finance shall: a) Oversee and implement the policy and procedure within the organization; b) Be accountable for the development and implementation of an approval/authority model for the organization regarding travel expenses; c) Monitor travel costs for the organization and seek ways to reduce cost, where possible; and d) Support the Internal Audit Department, where required, to facilitate periodic reviews of management and employee expenses. 2.2 Executives, Directors and Managers shall: a) Endorse and communicate the policy and procedure to employees; b) Ensure that the manager with the delegated authority, in consultation with the employee: i. determines whether travel is necessary, ii. ensures that travel arrangements are consistent with the provisions of this policy and procedure, and iii. ensures employees who have self-identified a disability and require accommodation, that these needs are met, where practical. c) Ensure budgets are controlled and variance explanations are provided, as required; d) Verify travel expense claims as required before reimbursement applying due diligence when authorizing, reviewing and approving expenses; e) Encourage accommodation at corporate residences, apartments, private non-commercial accommodation or government and institutional accommodation for periods of travel status of more than thirty consecutive calendar days at the same location; f) Approve only claims that include all appropriate documentation (see section 3.5); g) Question expenses which are not reasonable and do not appear to comply with the policy and procedure; h) Not approve own expenses; i) Comply with all policy and procedure requirements for own travel and submission of travel expenses; and j) Support the Internal Audit Department, where required, to facilitate periodic reviews of management and employee expenses.
Page: 4 of 17 2.3 Employees shall: a) Familiarize themselves with the provisions of this policy and associated procedures; b) Consult and obtain the proper authorizations and pre-approvals, including, recurring individual or group travel pre-approval in accordance with the policy; c) For persons with disabilities, inform the organization or its suppliers of their needs that may require accommodation; d) Complete and submit travel expense claims with necessary supporting documentation within 45 days of travel completion or as otherwise required if travel advance provided; and e) Cancel reservations as required, safeguarding travel advances and funds provided, and making outstanding remittances promptly. 2.4 Payroll Department shall: a) Ensure Pre-Approval form is attached to the expense claim form b) Ensure appropriate sign-off of the expense claim form is received before processing the claim c) Process only expense claim forms that include all appropriate documentation (see section 3.5) 3.0 ADMINISTRATION 3.1 General Considerations When travel is necessary employees (or individuals making the arrangements) are to consider the following: a) Travel must be completed in the most cost effective and efficient manner that enables the employees to secure guaranteed and acceptable travel arrangements; b) Travel should be booked as far in advance as possible to avoid unnecessary cost to the organization; and c) Travelers shall consult the MAI Intranet for preferred/contracted vendors (hotels, rental cars, etc.) with Government of Canada or Marine Atlantic negotiated rates. Employees are required to use preferred vendors unless it is impractical to do so. Where preferred vendors are not used, the employee must document why an alternative vendor was selected.
Page: 5 of 17 3.2 Authorization a) Employees must obtain a signed pre-approval travel form. The request shall include purpose of travel, destination and anticipated duration. The travel authorization shall be attached to the Travel Expense Claim Form prior to submission to the Payroll Department or Approver as required. b) Employees are permitted to obtain a BTA pre-approval for the duration of the fiscal year (e.g., executive monthly meetings, project travel, and committee). This BTA pre-approval must be attached to each expense claim submitted. c) To facilitate the pre-approval process the use of Travel Plans and/or Blanket Travel Authorities are recommended. d) To facilitate the travel requirements for Training and/or Vessel Refits when more than one employee has to travel to the Training or Vessel Refit location Group Pre-Approvals are the preferred route for travel authorization. To obtain Group Pre-Approvals for travel the organizer must complete a Group Travel Pre-Approval Form (Appendix E) and send it to his/her Department VP for approval. e) To facilitate the pre-approval needs of the Training Department a Group Travel Pre-Approval form will be completed for each training session by the Training Department. The Group Travel Pre-Approval form will require approval from the department VP and will show the link to the Travel Plan approved by the CEO and Board of Directors. f) An employee is required to complete a Travel & Conference Pre-approval Form (Appendix C) for all conferences or professional development seminars not organized by the Corporation. The completed form must be submitted to the employee s Vice President and/or President and CEO to obtain written approval prior to enrolment. The approved Travel & Conference Pre-approval Form must be attached to the Travel Expense Claim Form in order to process the expense claim. 3.3 Travel Advances a) A travel advance may be permitted subject to the approval of the appropriate Divisional head (CEO, VP s and CIO). b) Employees are required to complete a Travel Advance Form (Appendix D). 3.4 Expense Entry and Submission a) Employees are responsible for all expenses incurred during the course of their travel and must complete the travel expense claim form for reimbursement. b) Employees incurring expenses during the course of approved travel are responsible to submit a Travel Expense Claim Form to the Payroll Department or approver with signed Pre-Approval form and all supporting
Page: 6 of 17 documentation within 45 days from the completion of their travel. The CEO, Vice Presidents and CIO or his/her delegate are the only individuals authorized to approve exceptions to this procedure. c) When travel has been pre-approved by an employee s direct supervisor and meets all three of the following conditions the Travel Expense Claim Form does not require separate approval by the supervisor and can be submitted directly to the payroll department: (1) the total cost does not exceed the pre-approved amount by 20%; (2) the total cost does not exceed the original Approvers limits as outlined in Appendix A; and (3) the claim does not contain requests for reimbursement of expenses that are exceptions to this travel policy. d) An employee is not permitted to submit a claim for a meal or other expense when the meal or expense is paid by another employee, provided by a third party, or provided as part of a corporate function. The employee is responsible for reducing the per diem or daily expense allowance accordingly. e) Purchase of alcoholic beverages is expressly forbidden under this policy. Claims for alcoholic beverages will be disallowed and deducted from Expense Statements. f) Expense Claims may be scanned and e-mailed to the approver in PDF format. Original copies should be kept for two (2) years from date of submission in case they should be requested for review by Payroll and/or our external Auditors during the annual audit of our financial statements. g) Unless otherwise provided, the CEO, Vice Presidents and CIO are the only individuals authorized to approve exceptions to this policy and procedures. Any approval of exceptions requires written documentation in the expense claim. 3.5 Receipts a) Receipts are required for all expenditures. Credit card receipts are not considered acceptable receipts. The receipt must document the date, establishment where the purchase took place and the amount for which reimbursement is being requested. Where relevant, names of individuals in attendance must be listed on the receipt. Receipts for meals are not required when claiming a per diem. b) Receipts must be provided to the Finance department for processing. The documentation will be retained according to the Document Retention Policy. c) When a receipt is lost or is otherwise unavailable, a written statement of the circumstances is to be provided as part of the Expense Statement. The expense report description should note Receipt lost. If the lost receipt appears as a sum on a credit card or other bank statement, it is
Page: 7 of 17 recommended that the relevant section of the statement be provided as additional support. d) Expenses charged on corporate procurement cards or paid otherwise by the organization must not be claimed on Expense Statements. Employees are required to attach a copy of the expense for information purposes. 3.6 Overpayments Amounts reimbursed or paid to employees, which are not in accordance with the terms of this policy and procedure, shall be recovered from the employee in accordance with a debt owing to the company. 3.7 Loyalty Programs Provided that there are no additional costs to the organization, employees may join loyalty programs (airlines, hotel, and rental car) and retain benefits offered by the travel industry for either business or personal use. Such privileges are conditional upon the use of approved services and products. Employees shall use either preferred vendors (e.g., rental car vendor) or vendors based on safety, convenience and cost regardless of the preferred loyalty program. 3.8 Insurance a) Vehicle Insurance i. Marine Atlantic must be recorded on the rental contract as the employer when obtaining a rental car within Canada or the US. Refer to Appendix A.2 for coverage details. ii. Employees must be authorized by law to operate the rental unit. iii. If Marine Atlantic s insurance providers require a driver s abstract, the employee is responsible to provide this documentation directly to the appropriate insurance representative. iv. Any accidents, loss or damage must be reported immediately to the rental organization in accordance with instructions on the rental agreement as well as employee s immediate supervisor and the Risk, Claims, and Insurance Department. v. Employees shall not be reimbursed for personal accident insurance coverage premiums. vi. The organization assumes no financial responsibility for privately owned vehicles other than paying the approved kilometre rate and the supplementary business insurance premium, where required. vii. Privately owned vehicles or other types of transportation used on business travel shall have at least the minimum provincial/country insurance coverage of public liability and property damage. viii. Additional premium costs for public liability and property damage, collision and comprehensive coverage shall be reimbursed for the
Page: 8 of 17 applicable period, when supplementary business insurance for a vehicle is required ix. Use of rental vehicles, under contract to MAI, by spouses and non-mai employees is prohibited under this policy b) Medical i. An employee shall be reimbursed the necessary expenses incurred as a result of illness or accident occurring while in travel status, to the extent that the organization is satisfied the expenses were additional to those which might have been incurred had the employee not been absent from home, and which were not otherwise payable to the employee under an insurance policy, or Workers Compensation. ii. An employee, approved for travel status outside of Canada shall contact the Human Resources Department at least five working days prior to commencing that travel. Where applicable medical insurance coverage will be purchased by Marine Atlantic. iii. Payment for the use of a suitable conveyance, such as an ambulance or taxi, shall be authorized where an employee becomes ill or is injured while in travel status when, in the opinion of the organization, the employee, or the attending medical practitioner, the nature of the illness or injury requires that the employee be transported to a medical treatment facility, the workplace, the travel-related accommodation, or home. iv. When, in the opinion of the attending physician, an employee's condition resulting from illness or injury while in travel status warrants the presence of the next-of-kin or a representative of the family, actual and reasonable travel expenses may be reimbursed, as if that person were an employee. 4.0 REIMBURSABLE TRAVEL EXPENSES 4.1 Accommodations a) Travel does not refer to a person s regular commute to work; therefore, reimbursement for overnight accommodation within an employee's place of work shall not normally be authorized. b) Hotel accommodation shall be reimbursed at standard hotel accommodation room rates. Corporate rates should be negotiated at the time of reservation. c) Room upgrades offered at higher prices to employees by the hotels should be declined. d) Employees may stay at the home of relatives or friends and will be paid a daily allotment rate as referenced in Appendix A.3. e) When travelling, hotel accommodation must be booked at the lowest
Page: 9 of 17 possible rate offered by the hotel. 4.2 Vehicle Transportation a) The selection of the mode of transportation shall be based on use of approved vendors, safety, cost, duration, convenience, and practicality. b) Expenses associated with the selected mode of transportation shall be reimbursed based on receipts. c) The standard for rental vehicles is mid-size. Rental vehicles beyond the standard shall be authorized based upon factors such as, but not limited to, safety, the needs of the employee should the employee require accommodation for a disability, the number of employees travelling together and the bulk or weight of goods transported. Any exception to this standard must be documented with reason and approved by the appropriate manager. d) When an employee has been authorized to use a private vehicle on company travel, the employee shall be reimbursed as per Appendix A.4. e) Where a receipt is not available, a declaration will suffice. Such expenses include legitimate mandatory transportation service charges and fees, incurred while on travel status, not otherwise paid (e.g. road/bridge tolls). f) Employees shall use the most direct, safe and practical road routes and shall claim only for distances necessarily driven on company travel. g) To avoid extra costs for vehicle fueling, rental cars must be returned to the rental company fully fueled. h) An employee may use their private automobile for approved business travel, provided it is properly insured for business (see Vehicle Insurance) i) Employees who are driven to or picked up from a public carrier terminal shall be reimbursed the kilometre rate based on the distance to and from the public carrier terminal for each round trip. j) Parking charges shall be reimbursed where it is practical and economical to leave a private vehicle at the public carrier's terminal during the period of absence. k) For every day on which an employee is authorized to use a private vehicle on company travel, the employee shall be reimbursed the actual costs of parking/tolls for the vehicle during that period of time. Receipts must be provided, otherwise a declaration will be required as noted in 4.2 e). 4.3 Additional Business Expenses a) The employee shall be reimbursed for necessary business expenses not
Page: 10 of 17 otherwise covered such as photocopies, word-processing service, faxes, internet connections, rental and transportation of necessary office equipment and transportation of required personal effects. b) Reasonable expenditure will be reimbursed for telephone charges for calling home when the employee is away from their normal place of work on company business. c) Laundry and dry cleaning when business travel requires four or more consecutive nights away from place of residence. 5.0 DOMESTIC AND INTERNATIONAL TRAVEL 5.1 These provisions apply when an employee is required to travel away from the workplace to perform their job duties within Canada or an International location. The procedure doesn t include travel between the company s local work locations. 5.2 Meals a) Employees travelling within Canada and who are not on training or acting as trainers in the locations of Sydney, North Sydney, Port aux Basques, St. John s, or Argentia and not otherwise provided meals will be entitled to claim per diem as referenced in Appendix A.5. Receipts are not required. b) When meals are obtained on board the vessels, provided at a conference, at a meeting, paid as a group receipt by another employee, or by a third party, the meal allowance is not permitted. When travel commences following or finishes prior to a specific meal period the meal allowance for that particular meal cannot be claimed. c) For travel outside Canada see Appendix A.5 for applicable rates. 5.3 Air Travel and other Transportation a) The selection of the mode of transportation shall be based on safety, cost, duration, convenience, and practicality. Eligible expenses associated with the selected mode of transportation shall be reimbursed based on receipts, indicating the expense and currency. Such expenses include: i. miscellaneous charge order, for excess baggage/excess weight for commercial, private and/or chartered carriers (written explanation also required); and ii. public carrier ticket "change fee" for legitimate authorized official business purposes. A written explanation is required for all change fees. b) Commercial Airlines i. The standard for air travel is economy class. The airfare appropriate to particular itineraries shall be sought and bookings shall be made as far in advance as possible. Frequent flyer programs must not influence the
Page: 11 of 17 choice of airline for travel. Reasonable additional costs associated with ensuring seat availability are permitted. ii. Accepted airlines are determined based upon the locations frequently used by the company. Seeking alternatives based upon cost factors is encouraged whenever it is available. iii. Members of the organization s Executive Management Team who are expected to travel outside of North America where continuous air travel exceeds nine hours may travel business class. Continuous air travel starts at the scheduled departure time, and ends with the arrival at destination or with an overnight stop or layover equivalent to an overnight stop. iv. Only in exceptional circumstances, for example when complex flight connections are required, should a travel agent be used (e.g., multiple stops, international travel). v. All flight passes must be purchased and administered by the Finance Department (or designated employee as approved by Finance Department) and be retained under the ownership of Marine Atlantic. Flight passes may not be purchased or expensed by employees, unless authorized by the VP Finance. vi. Flight passes are purchased to provide an alternative method for booking an airfare offering approved employees with increased access to flight options and/or reduced fares compared to posted rates. The Finance Department is responsible for administering the passes. Employees are responsible to provide the appropriate financial coding to the Accounting Department when utilizing the flight pass. 5.4 Surface Travel a) The standard for rail travel is the next higher class after the full economy class. b) Taxis, shuttles and local transportation services are alternatives for local trips. Actual expenses, including reasonable gratuities, shall be reimbursed. 5.5 Telecommunications a) If travelling internationally, an employee must obtain international telephone-card privileges, or international telephone network facilities, which are to be used in a reasonable manner.
Page: 12 of 17 5.6 Additional Business Expense a) When an employee is required to undertake international travel on authorized corporate business, the employee shall make the necessary arrangements for obtaining an appropriate official passport or visa and any required inoculations, vaccinations, x-rays, and certificates of health. The organization will cover the necessary and approved expenses. b) Employees on international travel are entitled to reimbursement of the cost of insurance to cover repairs or a reasonable replacement of lost or damaged luggage while travelling, except where such coverage is provided by the carrier. 5.7 Incidental Expense Allowance An employee shall be paid an incidental expense allowance that covers a number of miscellaneous expenses not otherwise provided for in this policy for each day or part day in travel status. 5.8 Currency Exchange For travel outside of Canada, expenses excluding Per Diems, will be calculated based on the rates as can be proven to be paid or the Bank of Canada rate for the day of the expense. 6.0 NON-REIMBURSABLE EXPENSES 6.1 Credit Cards a) Personal credit card annual fees and other membership reward programs are a personal non reimbursable expense. b) Interest charges and surcharges on credit card accounts cannot be claimed. 6.2 Expenses related to parking tickets, speeding or other violations a) The organization is not responsible for any fines/tickets associated with parking or moving violations. The organization is not responsible for any items stolen from the vehicle. 6.3 Travel for internal social functions is not eligible for reimbursement. 7.0 UPDATING OF POLICY AND : Marine Atlantic is committed to ensuring that this policy and the supporting procedures stated in this document meet our organization s needs and any changing legal requirements. Accordingly, this Policy and procedure will be reviewed as required.
Page: 13 of 17 8.0 INQUIRIES: Inquiries regarding this policy can be directed to your Department Head, or the Payroll Department. 9.0 AVAILABILITY OF POLICY AND : This policy and procedure shall be a) provided to all new employees during orientation; and b) be posted on the intranet 10.0 NON-COMPLIANCE: Non-compliance with this Policy will be addressed in accordance with Marine Atlantic s Progressive Discipline Policy and other applicable policies and procedures.
Page: 14 of 17 11.0 RECORD OF REVISIONS: No. Date Original 1 May 2002 1 19 Sept 2003 2 8 Sept 2004 3 3 March 2005 4 20 May 2005 5 26 May 2006 6 18 July 2006 7 3 April 2007 8 20 June 2007 9 17 July 2008 10 13 April 2011 11 28 Nov 2012 12 05 Sept 2014 13 09 June 2016 14 18 Jan 2017 Executive Approval Description Original document approved by Executive Management Authorization/Approval/Submission Process; Training Plan; Payroll Department Responsibilities; US Per Diems Board Approval No. Date Description Original 21 June 2002 Original document approved by Board 1 19 September 2003 2 17 June 2005 3 31 July 2012 4 11 December 2012
Page: 15 of 17 APPENDIX A: A.1 Approval Limits Estimated Cost First Approver Second Approver < $1,500 Manager Not Required > $1,500 < $2,500 Manager Director > $2,500 < $5,000 Manager Vice-President > $5,000 < $25,000 Manager CEO > $25,000 Manager Board of Directors Note 1: Any travel outside of Canada requires CEO Approval. Note 2: Any travel included as part of the Training Plan is Pre-Approved at the VP level. A.2 Vehicle Insurance Marine Atlantic has full perils coverage for vehicles up to $75,000 and insurance must be waived provided the value of the rental vehicle is less than $75,000. If the rental vehicle has a value in excess of $75,000 full insurance coverage must be purchased. Optional car rental insurance is not considered a reimbursable expense. A.3 Daily accommodation allotment The Daily accommodation allotment for staying at the home of relatives or friends is $50.00. A.4 Mileage reimbursement When an employee has been authorized to use a private vehicle on company travel, the employee shall be reimbursed at a rate of $0.50 per kilometre. This rate will be reviewed annually.
Page: 16 of 17 A.5 Per Diem rates The following per diem rates have been established for meals and incidentals: Total Per Diem (all-inclusive): $ 70.00 Breakfast: $ 14.00 Lunch: $ 18.00 Dinner: $ 30.00 Incidentals: $ 8.00 These per diem rates will be reviewed annually. For travel in the continental United States of America the allowances are the same as above but paid in US funds. For travel outside of Canada and the continental United States of America, per diem rates will be determined at the rates for the destination country provided for in Appendix D of the National Joint Council Directive on travel. For assistance employees may contact payroll@marine-atlantic.ca or go to the following link http://www.njc-cnm.gc.ca/directive/app_d.php?lang=eng
Page: 17 of 17 Appendix B Travel & Conference Authorization Requirements Checklist of Trip Authorization Elements Element Description A. Objective Detailed reasons for travel B. Category Include the applicable category as noted below. Only include one category C. Virtual presence or Rationale why virtual presence or other remote meeting other remote meeting solutions were not applied solutions D. Expense type Identify the estimated cost and rationale for the use of each expense type (Transportation, accommodations, meals and incidentals) The following categories of travel are to be identified and form part of the travel authorization for expenditure initiation for each proposed trip: 1. Travel that is required in support of the direct delivery of the core mandate or legislative or legal requirements; 2. Travel that is necessary to engage key stakeholders in relation to policy, program or regulatory development or renewal or other matters that support the corporation s ongoing working relationship or operations with such communities; 3. Travel that is necessary to support sound internal governance of the corporation including management meetings and Board Committee meetings, or that is necessary for the recruitment or hiring of employees; 4. Travel to enable the training of employees to meet the assigned duties of their positions; and 5. Other travel. Appendix C Travel & Conference Pre-approval Form As posted on the MAI Intranet Appendix D Travel Advance Form As posted on the MAI Intranet Appendix E Group Travel Pre-Approval Form As posted on the MAI Intranet this form is generally completed by either Crew Calling or the Training Department to facilitate the travel pre-approval process when more than one employee has to travel for training, vessel refits, or similar purposes.