Expense Reimbursement Handbook

Expense Reimbursement Handbook Regulations and Guidelines Business Operations Physical Plant Building 2500 University Drive NW Calgary, Alberta, CANADA T2N 1N4 Last Updated: 16 July 2007

Preamble The following Expense Reimbursement Regulations and Guidelines were established by the Vice- President (Finance and Services) and are intended to assist University staff members and approving authorities with determination of reimbursable expenses, preparation of expense claims and provision of general guidelines on expense reimbursement related matters. These regulations and guidelines apply to all University related expenses, including travel, entertainment and related expenses from all funds administered by the University including operating, research, trust and restricted accounts. When external granting agency regulations differ from the University regulations, the agency's regulations shall take precedence. An overview of Tri-Council (CIHR, NSERC, and SSHRC) and CFI requirements are available below. Should a discrepancy arise between the overview in this policy and the granting agency s requirements, the granting agency s requirements shall take precedence. As a publicly funded institution, the University should endeavour to use its resources wisely and effectively. Staff should exercise care and judgment when incurring expenses. Under no circumstances are personal expenses, personal travel expenses or personal entertainment expenses to be charged to any funds that are administered by the University. 1

Expense Reimbursement Guidelines Approval and Signing Authority The intent of this Policy is to decentralize the general review and approval of expense claims to the Faculty Deans and Department Heads, so that these officers, or their delegates, have the authority to determine the overall reasonableness of the claims and to make exceptions to the normal guidelines when circumstances warrant such action. Without exception, all expense reimbursement claims must be approved by one administrative level higher than the claimant (one-over approval). No employee can approve his or her own expense claims. If the signing authority is the person to be reimbursed, then the claimant s immediate supervisor must approve the claim. If the signing authority is not the immediate supervisor of the claimant, then the claimant must obtain his or her immediate supervisor s approval. As an exception, Professional Expense Reimbursement (PER) claims are reviewed and approved by Business Operations. Once approved, original receipts must be remitted to Business Operations with a printed copy of the expense reimbursement claim. Expense Reimbursement Claim Requirements An expense claim may be delayed or rejected (and returned to the claimant) for any of following reasons: The purpose of the expenditure is not clearly stated. For travel, the description does not identify one-way or return flights and contain the dates, departure location and destination. Foreign currency amounts are not converted to Canadian dollars (CAD). Cash Advances are not entered. Original receipts are not provided (should be in chronological order). Credit Card receipts/statements (without detail) are submitted without associated original receipts (with detail). For conferences, a copy of the conference registration form and events schedule is not provided. When charged against a Research & Trust Account, the relationship of the claimant to the trust account is not indicated. Employee Reimbursements Employees will be reimbursed only after the appropriate requirements have been submitted and approved online through PeopleSoft Expenses and the original receipts have been reviewed by the appropriate signing authority. Before processing can commence, all supporting documents (original receipts, conference events schedules, etc.) must be submitted with a printed copy of the Expense Reimbursement Claim to Business Operations either by inter-office mail or drop-off at the Physical Plant main reception. 2

Payments for all Expense Reimbursement Claims to University employees will be processed via electronic funds transfer (EFT) directly to the employee s bank account used for Payroll deposits. PeopleSoft Expenses allows for an alternate bank account to be set up by the employee specifically for expense reimbursements. Please allow 2-5 business days following the receipt and approval of the Claim and supporting documents (receipts, etc.) by Business Operations for the payment to be processed. Non-employee Reimbursements All expense reimbursement claims for non-university employees must be properly entered and approved in the appropriate non-employee expense reimbursement form on the Business Operations website (www.ucalgary.ca/busops). Before processing can commence, all supporting documents (original receipts, conference events schedules, etc.) must be submitted with a printed copy of the Expense Reimbursement Claim to Business Operations either by inter-office mail or drop-off at the Physical Plant main reception. Payments for all Expense Reimbursement Claims to non-university employees in Canadian (CAD) or US (USD) funds will be processed on the next regular cheque run following the receipt and approval of the Claim and supporting documents (receipts, etc.) by Business Operations. Payments in other currencies will be processed by wire-transfer or bank draft. Please allow 2-3 weeks for processing. Tri-Council (CIHR, NSERC, SSHRC) Requirements Canadian Institutes of Health Research (CIHR), Natural Sciences and Engineering Research Council of Canada (NSERC) and Social Sciences and Humanities Research Council of Canada (SSHRC) have the following specific requirements relating to travel reimbursements, approvals and documentation: The trustholders must approve all expense claims for those other than themselves. This authority cannot be delegated. All expense claims for the trustholder and any visiting researchers must be approved by the trustholder s department head or dean. If a department head is submitting a claim as a trustholder, then the Dean must approve the claim. For travel reimbursement, the purpose of the trip must be stated clearly and in detail. Single word explanations such as research or conference are not sufficient. Descriptors such as conference name, date and location, field trip to (location), meeting with research collaborator (with collaborator s name and institution, etc.) should be included. If the traveler is someone other than the trustholder, then the relationship of the traveler to the trustholder must be indicated on the claim. The event schedule or materials with details and dates of the event or conference must be submitted to the approver of the claim. All receipts, including meal receipts greater than the University s per-diem allowances, must be substantiated with original itemized receipts that show all items purchased. Credit card slips by themselves are not acceptable, because they do not provide a detailed listing of charges. Reimbursement for any kind of alcoholic beverage is not permitted. The number of travel days reimbursed within any 12-month period shall not exceed 125 days per person. It is the trustholder s responsibility to ensure that this maximum is not exceeded. CFI Requirements CFI operates on the principle that its funds must be used effectively, economically, and in Canada s best interest, including its research enterprise. CFI funding is based on an approved budget that is specific for each project. CFI strongly encourages funded institutions to seek the best possible prices for all cash expenditures. 3

If travel has been approved as part of the original budget for a project, then travel expenses will be reimbursable, and generally, the standards of the University will be followed. However, where CFI regulations differ from University regulations, CFI regulations shall take precedence. Advances In order to reduce the need for advances for trips of short duration, employees are expected to cover travel expenses with the use of credit cards, and to submit an expense claim for reimbursement through PeopleSoft Expenses immediately upon their return. An advance, for a reasonable amount that is consistent with the nature and duration of the trip, will be issued upon submission of an advance request in PeopleSoft Expenses that has been appropriately approved to Accounts Payable. Requests for early payment of advances (more than 6 weeks prior to the date of commencement of travel) are to be explained (e.g., advance registration fee payment, airfare booked and payable well in advance of trip, etc.). Advances processed through PeopleSoft Expenses will be remitted to the employee via electronic funds transfer (EFT). Advance Repayment Advances are to be accounted for by the submission of the expense claim through PeopleSoft Expenses, along with the provision of a personal cheque (not cash) for repayment of any remaining portion of the advance, to the signing authority within two weeks of journey completion. Where this requirement is not complied with, the Director of Business Operations may authorize deduction of the outstanding advance from the individual's salary entitlement and/or a withholding of subsequent advances. 4

Travel and Entertainment Regulations Contracted Travel Agencies Business Operations manages the airline and travel agency contracts for the University of Calgary. The University has negotiated contracts that include preferred corporate rates for air, car rental and hotel bookings. In order to benefit from the terms of these contracts, University travelers are encouraged to book their travel through the contracted agencies. Please visit the Business Operations website for more information (http://www.ucalgary.ca/busops/). Transaction or user fees charged by travel agencies may be claimed by attaching the agency invoice. Airfare Requirements Whenever possible, employees are expected to take advantage of advanced purchase excursion fares, seat sales, etc. and are encouraged to use the University's contracted travel agencies. The maximum level of reimbursement should not exceed the equivalent of economy airfare by the most direct route. Staff members who have arranged fares at less than economy, e.g. excursion fares, which necessitate staying over a Saturday night or longer than the event or meeting require, may claim the additional accommodation and meal costs, provided that there are overall cost savings when compared to flying on preferred dates at economy rates. These savings should be clearly outlined on an attachment that is provided to the signing authority. Additional airfare for stopovers and other costs that are not related to university business, or do not result in cost savings to the University, are considered to be personal expenses of the claimant. Business or First Class, or other amounts in excess of economy airfare, are considered to be personal expenses of the employee and are not reimbursable. Exceptions may be allowed only if they involve a longer continuous time-in-the-air (5 or more hours), and the traveler is expected to begin work at the destination soon after arrival, with no time for adequate preparation or rest. Approval in advance is required for these exceptional cases from the appropriate Dean, Director, Vice-President, President or Chairperson. Travelers who use e-tickets normally receive a fax or email that contains a Passenger Itinerary/Receipt as confirmation of their reservations that outlines the itinerary, cost and applicable taxes and fees from either the airline or travel agency. This Passenger Itinerary/Receipt should be submitted for reimbursement. For hardcopy tickets the original passenger copy of the ticket is required. If the Passenger Itinerary/Receipt or original passenger copy is unavailable, a written explanation for the absence of a ticket/receipt should be submitted to the signing authority, along with a travel agency invoice, credit card statement or other documentation that indicates the cost of the ticket. Where consolidator fares have been booked and the shown amount on the original passenger copy of the ticket or invoice is not the amount paid, only the actual out-of-pocket expense may be claimed. Trip Insurance Trip cancellation insurance (for illness) is a reimbursable airfare travel expense that may be claimed through PeopleSoft Expenses. The University's extended health care plan is sufficient to cover most out-of-country medical emergencies. For questions on the University's health coverage, call Alberta 5

Blue Cross customer service at (403) 234-9666. Additional out-of-country medical insurance, flight insurance (life, accident, etc.) and other similar insurance coverage are normally considered to be personal expenses of the claimant. However, complimentary air flight accident insurance coverage can be provided when a University of Calgary American Express Corporate Travel Card (contact 1-800- 243-0198) is used for payment of the airfare. Automobile Transportation Private Automobile Requirements Reimbursement for the use of private automobiles while on University business is based upon the number of kilometers driven, multiplied by the current rate of 39 cents per kilometer. For conversion of miles to kilometers, multiply the number of miles by 1.6 (one mile = 1.6 kilometers). Note: Under the terms and conditions of the University's Relocation Policy, incoming new faculty are reimbursed at the rate of 22 cents per kilometer. Where a private automobile is used, only one person may claim reimbursement of the rate per kilometer. Additional passengers traveling in the automobile may not claim a reimbursement per kilometer or the cost of equivalent public transportation. In general, where a claimant travels by private automobile outside the province of Alberta, the expense claim is to be prepared on the basis of the lower of: or i) What it would have cost by equivalent economy airfare by the most direct route. ii) The automobile rate per kilometer plus accommodation and meals en route. However, the Department Head, Dean or delegated signing authority, may approve exceptions. Automobile Rental Requirements Automobile rentals, when necessary or cost-justifiable, are a reimbursable expense. Rented automobiles should normally be non-luxury and of standard, compact or sub-compact size. The claimant's original automobile rental and related gas receipts are to be submitted to the signing authority. Where possible, staff members are encouraged to rent an automobile through the University's contracted travel and vehicle rental agencies in order to take advantage of corporate or other reduced rates. The University's contracted travel agencies have negotiated corporate discount rates with certain Canadian and U.S. rental agencies. CAUBO/AUCC (Canadian Association of University Business Officers/Association of Universities and Colleges of Canada) has also negotiated preferred rates for university staff members (http://www.ucalgary.ca/busops). Vehicle Insurance Requirements Although employees may use their personal automobiles while on University business, the University's insurance policies do not provide coverage. Compensation is deemed to be within the current reimbursement rate per kilometer, and therefore, the cost of additional endorsements is the personal expense of the car owner. In advance of the travel, car owners are advised to check with their own insurance agents in order to secure appropriate endorsements to their policies if necessary. While on University business, the insurance cost of rented vehicles is a reimbursable expense, and staff members must ensure that rented automobiles are properly insured. If there is any doubt concerning insurance coverage on a rental vehicle, the traveler should take the coverage provided by 6

the rental agency. When renting vehicles outside of Canada and the United States, staff members should purchase the maximum liability, collision and accident insurance that the rental company offers. If you intend to rent a vehicle for longer than 30 days, you must contact the University Risk Management department before entering into any rental agreement. For details related to insuring rented vehicles please refer to the University s Risk Management department website: http://www.ucalgary.ca/uofc/departments/risk/riskmgmt/ Other than an automobile or minivan, other forms of transportation may not be covered by the University's insurance policies. Please ensure that you contact the University Risk Management department prior to undertaking these types of rentals to determine if coverage is available through the university. It is the traveler s responsibility to ensure that he or she understands the car rental agreement. Most rental agreements state that only authorized drivers may drive the vehicle. They also state where you may not drive the vehicle (i.e., off-road, even for SUV s), that the vehicle must be locked at all times, that you cannot drive illegally (i.e., under the influence of alcohol or over the speed limit), etc. Driving rental vehicles in violation of any of the terms and conditions of the rental contract voids the insurance coverage. Additional theft and collision damage insurance is available at no additional cost for automobiles, sport utility vehicles, or 8-or-less-passenger minivans, if an employee uses his/her University American Express Corporate Travel Card to rent a passenger vehicle, and declines the rental company's damage waiver at the time of rental. The insurance provided by the American Express Corporate card will provide coverage during the rental period regardless of whether the vehicle is being used for business or recreation. Meals The University will reimburse employees for actual out-of-pocket meal expenses, provided that such expenses are reasonable and appropriate for the location and purpose of the travel. For travel within Canada actual out-of-pocket meal expenses (including gratuities) may be claimed without receipts for amounts not exceeding the following: Breakfast $10.00 Lunch $12.00 or $45.00 for a full day Dinner $23.00 For travel outside Canada actual out-of-pocket meal expenses (including gratuities) may be claimed without receipts for amounts not exceeding the following Canadian dollar equivalents: Breakfast $14.00 Lunch $17.00 or $63.00 for a full day Dinner $32.00 Itemized receipts that show actual meal and beverage amounts must be submitted with the expense claim for meal expenses in excess of the University s daily allowances. Credit card receipts are not acceptable because they do not provide the details of the expense. Reimbursement of any form of alcoholic beverage costs is not permitted when funded by outside granting agencies. 7

Accommodation Normally, standard hotel room accommodation costs are reimbursable. The Canadian Association of University Business Officers/Association of Universities and Colleges of Canada (CAUBO/AUCC), the State Universities of America (SUA) and the University's contracted travel agencies have listings of hotels at which University travelers receive corporate rates or discounts. When not staying at conference designated hotels, employees would normally be expected to stay at hotels where lower negotiated room rates are available or other equivalent accommodations can be provided. The Business Operations Home Page (http://www.ucalgary.ca/busops) lists CAUBO/AUCC rates for Canadian destinations. When traveling to conferences, it is recognized that staff members normally stay in the conference designated hotels at conference negotiated preferred rates, and that reservations may be made directly by the staff member with the selected hotel/conference organizers. Accommodation expenses are to be listed separately and in detail by day. The original receipts for accommodation (i.e., detailed hotel bill) must be submitted to the signing authority. Credit card slips cannot be used alone for reimbursement, as they do not provide a detailed listing of charges. Accommodation receipts must indicate that payment has been made and/or that no outstanding balance remains. When an employee is provided free accommodation by a relative or friend, a token of appreciation (e.g. hosting a dinner, a gift, etc.) may be claimed in lieu of hotel accommodation, provided that such costs are reasonable, and described in detail. Original receipts must be submitted to the appropriate signing authority. Employee Spousal/Partner Travel Expenses of a spouse, partner or family member who accompanies a staff member are not reimbursable expenses. Dependent Care The University of Calgary will reimburse employees for childcare or dependent adult care expenses up to a maximum of $50.00 per day (minimum of 4 hours) under the following conditions: When employees are required by the University to travel outside normal hours for purposes related to the performance of their duties and they incur child care or dependent adult care expenses as a direct result, such expenses shall be accepted as reimbursable and may be included in the expense claim. When the University requires employees to attend full-day or part-day meetings on days which are not normal working days for purposes that are related to the performance of their duties, and they incur child or dependent adult care expenses as a direct result of the meetings, such expenses may be accepted as reimbursable and can be included in the expense claim. The Department Head or Dean must provide approval for such expenses in advance of the expense claim. Submissions for childcare or dependent adult care expenses must be submitted with appropriate receipts. The receipt should contain the caregiver s name, address and phone number, the amount paid, and the caregiver s signature to acknowledge receipt of the funds. 8

Ordinarily, paid amounts to spouses, partners or relatives would not be regarded as claimable expenses. Miscellaneous Travel Expense Reimbursements Taxi, Bus, or Train Taxi fares are a reimbursable expense. However, other less expensive forms of transportation should also be considered (e.g. airport/hotel shuttle service, bus, automobile rentals, etc). Original taxi receipts should be submitted to the signing authority. In cases where taxi receipts are not available (e.g. remote areas, foreign countries etc.) an explanation for the absence of receipts should be submitted to the signing authority. Excess Baggage Necessary and reasonable, business-related excess baggage is a reimbursable expense. The Department Head or Dean must provide approval in advance of the travel. Excess personal baggage is not normally a reimbursable expense but may be reimbursed under certain circumstances with the preapproval of the Department Head or Dean. A detailed explanation will also be required in the PeopleSoft Expense module. Parking Hotel, airport and public parking expenses are reimbursable. Original receipts (where applicable) are to be submitted to the signing authority. Laundry and Dry Cleaning Reasonable laundry and valet charges are reimbursable expenses and would normally apply to trips in excess of four consecutive days. Original receipts and/or hotel bills are to be submitted to the signing authority. Telephone, Cellular Phone, Fax and Computer Connections Actual costs of necessary and reasonable business telephone or cell phone calls, faxes and computer connections are a reimbursable expense. Personal long distance telephone calls may be reimbursed depending on the length of travel, family situation, etc. Where applicable, the original receipts and/or hotel bills are to be submitted to the signing authority. Gratuities Gratuities for meals are to be included in the cost of meals. Other tips and gratuities are reimbursable, if reasonable, and if explained in detail. Where applicable, the original receipts are to be submitted to the signing authority. Conference Registration Fees Conference registration fees are a reimbursable expense. Registration form and events schedule, are to be submitted to the signing authority, along with the original receipts. 9

Travel Field Trips For field trip reimbursement, the nature of the travel and names of the participants must be provided. Corporate Travel Card Program The University has a no-cost Corporate Travel Card Program with American Express to assist employees with travel expenditures. Employees may obtain an application for an American Express Corporate Travel Card by calling Accounts Payable at 220-3108. Under the terms of the Travel Card Program, American Express allows an individual 45 days from statement date before interest charges are levied on a charge. When a University of Calgary American Express Corporate Travel Card is used for payment of airfare, air flight accident insurance coverage can be provided at no additional cost. Also, additional theft and collision damage insurance coverage is available at no additional cost for rental of automobiles, sport utility vehicles, or 8-or-less-passenger minivans, if an employee uses his/her University American Express Corporate Travel Card to rent the vehicle, and declines the rental company's damage waiver at the time of rental. The insurance provided by the American Express Corporate card will provide coverage during the rental period regardless of whether the vehicle is being used for business or recreation. For complete information or questions on insurance coverage provided by the American Express Corporate Travel Card call 1-800-243-0198. Entertainment The University recognizes that entertainment expenses may be incurred in carrying out its teaching, research and service activities. However, staff should exercise care and judgment when incurring these expenses. In general, these expenses would be for the provision of food, beverages, social and recreational activities for the purpose of entertaining University guests, prospective staff, students, benefactors or stakeholders. As a publicly funded institution, the University should endeavour to use its resources wisely and effectively. Entertainment expenses should be reasonable in relation to the number of people that are involved in the event. This policy applies to entertainment expenses from all sources of funding including research and trust accounts, although entertainment costs pertaining to research, trust and restricted funds may be incurred only if they are permitted by the terms and conditions of the grant, award or contract. Purchases of food and refreshments may be reimbursed for entertainment at a University employee's home in cases where it is deemed more desirable and less costly than entertainment at a public facility. Entertainment expenses will be reimbursed up to a maximum of $60.00 per person for meals and beverages for events that are held in public places or up to a maximum of $30.00 per person for entertainment in a University employee s home. Entertainment amounts in excess of these maximums will be the personal expense of the University employee and/or the other persons in attendance. Entertainment During Travel The cost of entertaining while traveling may be claimed, provided that the entertainment function was necessarily incurred and the nature or purpose of the travel was directly related to University business. Entertainment costs should be clearly identified with sufficient detail to identify the person, persons or group being entertained, including names, university or organizational affiliation and the purpose of the entertainment. 10

Entertainment for Staff Recruitment Travel and entertainment expenses related to recruiting of prospective staff are allowable charges to faculty and department budgets. Normally, the entertainment expenses would be for the provision of food, beverages, social and recreational activities. Travel expenses for prospective staff are allowable in accordance with the provisions in the Travel section of the Regulations and Guidelines. Travel expenses for the spouse or partner of a prospective staff member may be allowable at the discretion of the Dean, Director or Department Head. 11

Miscellaneous Expense Regulations Professional Dues and Membership Fees Staff with Professional Expense Reimbursement (PER) accounts are to claim professional dues and membership fees on a PER claim. Original receipts that show the period for which the funds apply, and where applicable, a copy of the Membership form, are to be submitted to the signing authority. Management and Professional staff must submit claims for professional dues and membership fees using PeopleSoft Expenses (requires Human Resources approval). Original receipts that show the period for which the funds apply, and where applicable, a copy of the Membership form, are to be submitted to the signing authority. All other staff must submit claims for previously approved professional dues and membership fees using PeopleSoft Expenses. Original receipts that show the period for which the funds apply, and where applicable, a copy of the Membership form, are to be submitted to the signing authority. Books, Materials & Supplies Purchase of rare books and business-related books are reimbursable expenses. Materials and supplies less than $250 are also reimbursable, if reasonable for the circumstances and explained in detail. The original receipts are to be submitted to the signing authority. Flowers, Cards and Gifts Purchase of flowers, cards and modest gifts are reimbursable expenses, if reasonable, and if explained in detail. The recipient and the occasion must be identified. The original receipts are to be submitted to the signing authority. Software The title and function of the software (less than $250) must be identified. The original receipts are to be submitted to the signing authority. Staff Training Proof of payment for training must be submitted to the signing authority and a description of the training is required for reimbursement. Subject Fee Clinical trial reimbursements require a description of the study and nature of the expense. 12

Subsistence/Living Allowance A description of the nature of the expense is required for reimbursement. 13

Non-employee Reimbursement Regulations Please refer to the Expense Reimbursement Claim Requirements section of this document for information on required details and approvals. Non-employee Travel Reimbursement Travel expenses for prospective staff, visiting lecturers and research associates are allowable in accordance with the provisions in the Travel Regulations section. Visiting scientists or researchers must be identified by their names and the nature of their travel. Non-employee Spousal/Partner Travel Reimbursement Travel expenses for the spouse or partner of a prospective staff member may be allowable at the discretion of the Dean, Director or Department Head. Non- Employee Relocation Expense Reimbursement Relocation expenses for prospective staff are allowable in accordance with the provisions in the Travel Regulations section. The start and end locations must be denoted on the claim. Mileage, if provided, will be compared to the University s standard distance report to ensure accuracy. 14

Non-allowable Expenses: The following expenses are not permitted on employee or non-employee expense reimbursement: Passport expense Interest charges on outstanding credit card balances Traffic and parking fines Expenses for failing to cancel transportation or hotel reservations Excess personal baggage or loss or damage to personal possessions of the traveler Laundry expenses prior to leaving Calgary or for trips of less than 4 days Equivalent dollar reimbursement for non-out-of-pocket costs such as use of airline reward points or other rewards programs Hotel pay movies Rental of formal wear (tuxedos and gowns) Expenses for family members of traveling staff unless pre-authorization has been granted House cleaning expenses for entertainment events in employees homes Annual Parks Canada Passes Individual memberships in the University Club Tickets to University events including staff farewell dinners Alcoholic beverage cost when funding is by outside granting agencies Any other personal or excessive amounts 15