Policy on Reimbursive Expenditure Status: Approved Custodian: Director: Finance and Administration Date approved: 2012-03-17 Decision number: SAQA 0795/12 Implementation date: 2012-03-18 Due for review: 2015-03-07 File Number: Policy on Reimbursive Expenditure
1. Mega process: Financial accounting 2. Major process: Management of reimbursive expenditure 2.1 Introduction In general, the reasonable and necessary travel expenses of any member of the Board, employee or member of a body/committee appointed by SAQA which are necessary to accomplish the official business purpose of a trip, are eligible for reimbursement. 2.2 Costs covered SAQA shall reimburse all travel expenditure incurred by a traveller, including but not limited to: 2.2.1 Business telephone calls and faxes 2.2.2 documentation and immunisations 2.2.3 taxi, train and bus fares 2.2.4 subsistence including meals and non-alcoholic drinks 2.2.5 incidentals 2.3 Costs must be incurred Costs must be incurred, which means that the notional costs of, for example, free accommodation with friends or relatives, cannot be claimed. 2.4 Combining business costs with personal costs 2.4.1 While it is permissible in certain circumstances to combine business travel arrangements with personal and family travel, the costs relating to SAQA business must always be kept separate. 2.4.2 Reimbursement of costs of a personal or family nature constitutes unauthorised use of SAQA funds. 2.5 Authorisation It is the responsibility of the relevant Director to assess the reasonableness of the claim and the validity of the supporting documents before approving the claim for payment. Procedure for Business Travel
2.6 Payment of reimbursive expenses 3. Sub-processes All expenses incurred by an individual on behalf of SAQA shall be reimbursed, subject to the conditions set out in this policy, by an electronic funds transfer as part of the payroll run, directly into the personal bank account of the individual or by petty cash. 3.1 Credit cards 3.1.1 The CFO will be issued with a credit card in the name of SAQA, to be used mainly for flight bookings. 3.2.2 All valid expenses incurred by an individual on behalf of SAQA shall be reimbursed via the normal procedures of submitting an expense claim and payment requisition form within two months of incurring the costs (for overseas travel, within two months of return). 3.2 Personal expense claims 3.2.1 Tips for waiters, included in bills for meals are refunded with the cost of the meal, but are limited to 10% of the total charge. The excess shall be for the account of the individual (see 3.2.3 below). 3.2.2 The following expenses may not be claimed: 3.2.2.1 liquor, except at the Directors discretion and only when entertaining SAQA stakeholders 3.2.2.2 personal phone calls (see the Telephone Policies And Procedures Manual) 3.2.2.3 private travelling 3.2.3 The following expenditure is refundable via the expense claim and payment requisition procedure: 3.2.3.1 private calls to a person s home telephone while away on business for a maximum duration of 10 minutes per day (see Telephone Policies And Procedures Manual) 3.2.3.2 parking costs at airports, hotels and conferences, to a maximum of five days 3.2.3.3 entertainment, including business lunches, if the cost is duly approved by a Director 3
3.3 Travel claims 3.2.3.4 business telephone calls and faxes hotel telephone bills must be attached to the claim form and business calls must be highlighted 3.2.3.5 taxi fares to and from airports 3.2.3.6 airport taxes, visas and commission on cashing traveller s cheques 3.2.3.7 tollgate fees 3.2.3.8 accommodation (see Business Travel Policies and Procedures Manual) 3.2.3.9 vehicle hire (see Business Travel Policies and Procedures Manual) 3.2.3.10 cost of meals while travelling 3.3.1 Travel costs may be claimed if a person is required to use his or her own vehicle to carry out the business of SAQA. Refer to paragraph 3.7 of the Policy on Business Travel for use of privately owned vehicles. 3.3.2 No claims shall be approved for travel within a 5-kilometer radius of the office. 3.3.3 All travel kilometres claimed must be based on the shortest distance between the office and the destination. 3.3.4 Google maps can be accessed on the web to determine the distance from SAQA to the point of travel. This provides a guideline when determining actual kilometres travelled. 3.3.5 In cases where persons travel directly from home and this distance is shorter than from the office, the distance actually travelled must be claimed. 3.3.6 If the claimant makes any detours for personal reasons, these may not be claimed. 3.3.7 Travel costs for employees travelling between home and SAQA shall not be reimbursed, except on weekends when an employee has been requested to work overtime with the prior approval of the relevant Director. 4
3.4 Other 3.3.8 Employees may not claim taxi fares to work, unless incurred over a weekend when an employee has been requested to work overtime with the prior approval of the relevant Directorate. 3.3.9 Taxi fares when travelling to and from an airport may, however, be claimed. 3.3.10 It is encouraged, wherever possible, to travel together to save on costs, provided that this does not result in demonstrable inefficiency. Where it is more efficient for persons to use their own vehicles, prior approval must be obtained from the relevant Directorate. 3.3.11 If members of the Board or employees have to go to the same venue, they must attempt to travel from the office in one car to reduce travel costs. 3.3.12 Travel costs shall be reimbursed only for trips which have been pre-authorised by the relevant Director. 3.3.13 The rate approved is irrespective of the engine capacity and running costs. 3.3.14 The approved rate per kilometre is included in the Financial Procedures Manual on delegated authority. 3.3.15 Maintenance costs on any privately owned vehicles shall not be reimbursed by SAQA. 3.3.16 No travel claims are allowed for travelling to SAQA-related social or sports functions. 3.3.17 Should taxis be used as transport for business purposes, only the actual taxi fare charged can be claimed and not the travel rate reimbursement for kilometres travelled. 3.4.1 Any other legitimate approved business expenses shall be reimbursed upon submission of valid supporting documentation. 5
Procedure on Reimbursive Expenditure Status: Approved Custodian: Director: Finance and Administration Date approved: 2012-03-17 Decision number: SAQA 0795-12 Implementation date: 2012-03-18 Due for review: 2015-03-07 File Number: 6
1. Purpose To ensure that there is adequate pre-approval and control over reimbursement of expenditure, so it is easier to verify the authenticity of claims. 2. Submission of claims 2.1 The expense claim and payment requisition form must be submitted to the relevant Director and not directly to the Finance Department. 2.2 Claims that are not submitted on the prescribed form shall not be considered. 2.3 A copy of the expense claim and payment requisition form is included in the Financial Procedures Manual on Delegated Authority. 2.4 All claims not submitted within two months of the date on which the expenses were incurred shall expire and shall therefore not be eligible for submission, unless special permission is obtained from the Executive Office with appropriate motivations given before the expenses are reimbursed to the claimant. 2.5 Personal expense claims 2.5.1 All original source documents supporting the claim must be attached to the expense claim and payment requisition form. 2.5.2 Approval by the relevant Director must be attached to the expense claim and payment requisition form. 2.5.3 No credit card slips on their own or paid cheques shall be accepted as valid supporting evidence of costs. 2.5.4 It is the responsibility of the claimant to keep copies of claims and vouchers submitted. If such documentation is lost, the claimant shall be expected to produce copies. 2.6 Travel claims 2.6.1 The destination and an accurate statement of kilometres travelled must be indicated on the expense claim and payment requisition form. 2.6.2 Approval by the relevant Director must be attached to the expense claim and payment requisition form. 2
2.6.3 The rate used must accord with the provisions set out in the Delegation of Authority Procedure, based on average Automobile Association rates. 2.6.4 The applicable rates are included in the Financial Procedures Manual on delegated authority. 3. Authorisation of claims 3.1 It is the responsibility of the relevant Director to review the reasonableness of the claim and the validity of the supporting documents before approving the expense claim and payment requisition form for payment. 3.2 It is the responsibility of the relevant Directors to ensure that the expense claim and payment requisition form is mathematically accurate and filled in correctly and completely prior to approving the claim for payment. 3.3 The relevant Director must sign and initial the expense claim and payment requisition form as proof of having reviewed it, prior to forwarding the claim to the Finance Department for payment. 3.4 The relevant Director can, at his or her discretion, reject claims for expenditure and travel that are not incurred in the best interests of SAQA. 3.5 The Finance Department shall return to the claimant all expense claim and payment requisition forms that are not complete, accurate and duly authorised. 3.6 The Finance Department must process all complete, accurate and duly authorised expense claim and payment forms. 3.7 The Finance Department must stamp each form and supporting documentation as CLAIMED to ensure that documents are not submitted more than once. 4. Payment of claims 4.1 No claims above R500 shall be reimbursed through petty cash. 4.2 All claims except petty cash reimbursements shall be paid via an electronic funds transfer as part of the payroll run, directly into the personal bank accounts of the individual. 4.3 Payments shall be effected with the next payroll run. 3