Status: Approved Custodian: Director: Finance and Administration Date approved: 2012-03-17 Implementation date: 2012-03-18 Decision number: SAQA 0795/12 Due for review: 2015-03-07 File Number: 2
Table of contents 1. Mega process: financial accounting 3 2. Major process: management of business travel 3 2.1 Introduction 3 2.2 Scope of this policy 3 2.3 Coordination and authorisation 3 2.4 Domestic travel 4 2.5 International travel 4 3. Sub-processes 4 3.1 Air travel 5 3.2 Accommodation 5 3.3 Daily allowances 7 3.4 Travel advances 8 3.5 Reimbursement upon return 8 3.6 Hired vehicles 9 3.7 Privately-owned vehicles 10 3.8 SAQA-owned vehicles 10 3.9 Insurance 10 3.10 Foreign exchange 11 3.11 Feedback upon return 12 Procedure for business travel 13 3
1. Mega process: financial accounting 2. Major process: management of business travel 2.1 Introduction 2.1.1 SAQA shall pay the cost of transportation and other reasonable and necessary travel expenses of any member of the Board, employee or member of a body/committee appointed by SAQA for official travel, which comprises business travel and other appropriate travel when, in the opinion of the Chief Executive Officer, there are compelling reasons for SAQA to pay such costs 2.1.2 The Board shall not entertain any requests for private travel arrangements. 2.2 Scope of this policy This policy governs all business travel noted below: 2.2.1 air travel 2.2.2 accommodation 2.2.3 daily allowances 2.2.4 travel advances 2.2.5 refund/reimbursement upon return 2.2.6 hired vehicles 2.2.7 privately-owned vehicles 2.2.8 SAQA-owned vehicles 2.2.9 insurance 2.2.10 feedback upon return 2.3 Coordination and authorisation 2.3.1 The levels of authorisation for all business travel are included in the Financial Procedures Manual on Delegation of Authority. 2.3.2 The Directors of the relevant directorates must ensure compliance with the stipulated budget. 4
2.3.3 All travel, accommodation and car hire arrangements must be made by the appointed officials within each directorate. 2.3.4 A travel requisition must be used for both international and domestic travel bookings. 2.3.5 SAQA may make use of an appointed travel agent to make complex international bookings. All other travel bookings must be made by the internally appointed staff members in each Directorate. 2.3.6 By making bookings internally and paying with SAQA s credit card, SAQA is able to take advantage of discounts, advance bookings or other special rates. 2.3.7 All travel arrangements must be made well in advance of the trip to allow sufficient time to ensure proper authorisation and finalisation of the travel arrangements, whether they be airline tickets, vehicle hire, accommodation or any other arrangements. 2.3.8 It is the responsibility of the individual who requested the travel arrangement to inform the designated official to cancel the arrangements if necessary. 2.3.9 Costs incurred by SAQA as a result of travel arrangements not being timeously cancelled, shall be for the account of the individual concerned, should the Finance Committee find that the costs were incurred due to the negligence of the individual. 2.3.10 Any travelling costs incurred by or on behalf of a non-member of the Board or a person not appointed by SAQA to a body/committee or a SAQA employee (e.g. spouses, family and friends of any staff, Board member or member of a committee or body appointed by SAQA) shall be for the personal account of that person and not for the account of SAQA. 2.4 Domestic travel Domestic travel shall include all travel within South Africa and the following countries that border South Africa: 2.4.1 Botswana 2.4.2 Lesotho 2.4.3 Namibia 2.4.4 Swaziland 5
2.4.5 Mozambique 2.4.6 Zimbabwe 2.5 International travel International travel shall include all travel outside the countries mentioned in 2.4 above. 3. Sub-processes 3.1 Air travel 3.1.1 The Chief Executive Officer and the Chairperson of the Board may travel in business class and therefore also qualify to make use of the business lounges at airports. 3.1.2 All other members of the Board, employees or members of a body/committee appointed by SAQA shall travel in economy class. 3.1.3 Should the individual wish to upgrade to a higher class than is stated above, this shall be at his or her own cost and must be paid by him or her before the trip is undertaken. 3.1.4 A person travelling with the Chief Executive Officer or the Chairperson of the Board may be upgraded to business class, unless the Chief Executive Officer or the Chairperson of the Board elects to travel economy class with the person. 3.1.5 All individuals must ensure that they arrive at the airport in good time before the flight departs. 3.1.6 The normal route for air travel must be the most direct and economic route. An alternative route shall only be approved when, in the opinion of the Chief Executive Officer, it is in the best interests of SAQA. 3.1.7 Should travel be via an indirect route due to personal preference, the individual shall be responsible for any extra costs. 3.1.8 Individuals are urged to plan their travel to take advantage of lower-cost fares when available, provided that schedules meet the needs of the traveller. 3.1.9 Should a person be able to fly to a meeting but prefers to drive, he or she should obtain approval beforehand from the relevant Director and ensure that the cost of driving shall not exceed the cost of flying. 6
3.1.10 Individuals shall not reduce the class of travel they are authorised to use: in order to provide for the travel of others, or to extend travel for personal reasons. SAQA shall only pay for the class of travel authorised. 3.1.11 Excess baggage costs incurred because SAQA goods are carried are for SAQA s account. Charges for personal excess baggage shall be for the account of the employee. 3.2 Accommodation When individuals are required to perform duties away from their normal place of work, SAQA shall provide accommodation or compensate them for accommodation as set out below: 3.2.1 No accommodation shall be provided by SAQA should the venue at which attendance is required, be within 80 km of the normal place of business, except if attendees are expected to stay over. 3.2.2 As far as is practical, SAQA shall directly arrange and pay for accommodation on a bed, breakfast and dinner basis. 3.2.3 To the extent that the individual actually pays for these costs, he or she must claim them through the expense claim system subject to approval. 3.2.4 Members of the Board may stay in a four-star hotel or equivalent Bed and Breakfast, while accommodation for employees and members appointed to a body/committee by SAQA shall be accommodated in a three-star hotel or equivalent Bed and Breakfast, unless other arrangements are agreed to by the Chief Executive Officer. 3.2.5 The area to which a SAQA employee is travelling shall be taken into account when accommodation is booked, to ensure that it is adequate and reasonably priced. 3.2.6 Where hotel accommodation is not available, accommodation of a comparable standard shall be arranged. 3.2.7 Accommodation can be prepaid by SAQA, provided that this is arranged at least one working week (for domestic travel) or two weeks (for overseas travel) prior to the trip being undertaken, to allow for all necessary arrangements. 3.2.8 All members of the Board, employees or members of a body/committee appointed by SAQA are personally responsible 7
for settling all extras on the hotel bill, such as telephone, laundry and liquor, prior to checking out. 3.2.9 All members of the Board, employees or members of a body/committee appointed by SAQA are responsible for checking hotel bills for accuracy and signing them off prior to checking out. 3.2.10 Accommodation shall only be provided for the duration of the conference or event taking place, as well as one day before and after such event should circumstances necessitate this. Should an individual request to stay longer at a particular venue/hotel, the costs shall be for the personal account of the individual (for example if a workshop is on a Monday and the individual prefers to travel on the Friday, then the costs for Friday and Saturday nights shall not be borne by SAQA). 3.3 Daily allowances Where an individual is required to spend nights away from home for business purposes, the individual may claim subsistence allowance on the following basis: 3.3.1 The individual shall be paid a subsistence allowance for each night away from his or her usual place of residence when travelling internationally. 3.3.2 All individuals shall be subject to the same daily allowance. 3.3.3 The subsistence allowance covers incidentals such as snacks, newspapers, telephone calls, internet connection, tea and coffee, laundry, room service and travel costs up to $20 per day. 3.3.4 Incidentals are generally defined as small costs for which the employee is unable to provide documentary proof of expense. 3.3.5 The individual does not have to account to the Board for these expenses and the allowance shall be paid as part of the normal expense claim system. 3.3.6 No daily allowance shall be claimable for work undertaken in South Africa and the countries stated in 2.4 above. 3.3.7 This allowance is tax-free and no employees tax shall be deducted from it. 8
3.3.8 The expense claim and payment requisition form must reflect the number of nights spent away from home and the total amount claimable. 3.3.9 Expenses covered by the daily allowance may not be claimed on the expense claim and payment requisition form to be reimbursed, i.e. the intention is to avoid duplicating the reimbursement of any expense incurred. 3.3.10 The amount of the subsistence allowance for each night away from usual place of residence for both domestic and international travel is included in the Financial Procedures Manual on Delegated Authority. 3.3.11 The rates for the above allowances have been determined taking into account the rates allowed by the South African Revenue Services (SARS) for the benefit for the individual. These rates shall be revised regularly in accordance with the rates determined by SARS. 3.3.12 The expense claim and payment requisition form is included in the Financial Procedures Manual on Delegated Authority. 3.4 Travel advances 3.4.1 Requests for advances 3.4.1.1 Travel advances shall be granted in instances where the individual is required to travel on a business trip out of town for a period that necessitates an advance to assist the individual with his or her cash flow. 3.4.1.2 Requests for advances must be lodged at least three working days (domestic travel) and five working days (overseas travel) before the journey is undertaken. 3.4.1.3 Requests for travel advances must be reasonable in relation to the estimated expenditure. 3.4.1.4 The request for the travel advance must state the purpose, date and duration of the trip, the destination and the nature of the proposed expenditure. 3.4.1.5 The request for the travel advance must be handed in to the appointed officials within each directorate of SAQA on the prescribed form together with the request for travel form and approved itinerary. 9
3.4.1.6 All requests for travel advances must be authorised by the Executive Office. 3.5 Refund/reimbursement upon return 3.5.1 An expense claim and payment requisition form must be completed within 10 working days of returning from a trip. Expenses must be properly explained and all supporting documents must be attached. 3.5.2 If a travel advance was granted, the unutilised portion must be refunded upon return. 3.5.3 In the case of overseas trips, all unused travellers cheques must be sold to the bank directly by the individual and the deposit slip must then be attached to the expense claim and payment requisition form. 3.5.4 The expense claim and payment requisition form is included in the Financial Procedure Manual on Delegated Authority. 3.5.5 Should the expenses incurred exceed the advance granted, the difference shall be paid as part of the normal expense claim system. 3.5.6 If no advance was granted, expenses incurred shall be reimbursed as part of the normal expense claim system. 3.5.7 Refer to the Policies and Procedures on Payments. 3.5.8 The advance shall be deducted in full from the individual s next salary, should he or she fail to submit documentary proof of the utilisation of the travel advance granted. 10
3.6 Hired vehicles 3.6.1 Circumstances where a vehicle may be hired 3.6.1.1 An individual may hire a vehicle for travelling while away on SAQA business. 3.6.1.2 All vehicle hire must be arranged by the appointed official within each directorate. 3.6.1.3 Hired vehicles shall under no circumstances be used for private purposes. 3.6.1.4 Individuals who need to hire a vehicle must be in possession of a valid driver s licence. 3.6.1.5 If approved international car hire is used, accounts must either be prepaid or settled in the country where the vehicle was hired. 3.6.1.6 SAQA shall not pay for traffic offences. If fines are received, SAQA shall recoup the money from the employee. 3.6.2 Specific regulations 3.6.2.1 A type-b vehicle or less must be hired, unless more than four people are travelling to the same venue and a type- Y(kombi) or the like needs to be hired. 3.6.2.2 A chauffeur / shuttle service that is not pre-approved by SAQA shall be for the personal account of the individual who arranged such service and shall not be reimbursed by SAQA, unless approved by the Chief Executive Officer. 3.6.2.3 Any individual who receives a travelling allowance as part of his or her remuneration package may not hire a vehicle unless he or she travels by air and needs to hire a vehicle at the destination, or unless the cost of hiring a vehicle / shuttle service will be more cost effective to SAQA than paying the re-imbursed travel claim and / or any associated parking costs. 3.6.2.4 The general rule which applies to hiring vehicles shall be that one car must be booked for every four people travelling to the same destination at the same time, unless a shuttle service would be more suitable. 11
3.6.2.5 Should it happen that more than one individual is visiting the same town/city as another SAQA person, but did not originally travel with him or her (e.g. both travelled by plane but on different occasions), those individuals should coordinate their travelling during the period in which they are both in the same town/city, i.e. they should not book a vehicle each. This should be coordinated by the appointed official within each directorate. 3.7 Privately owned vehicles 3.7.1 In the case of a person using his or her personal vehicle for business purposes, he or she shall be reimbursed based on the kilometres travelled. 3.7.2 Refer to the Financial Procedure Manual on Delegated Authority for the applicable rates at which kilometres travelled are reimbursed. Refer to the Policy on Reimbursive Expenditure for further detail on travel claims. 3.7.3 SAQA shall not be liable for any expenses incurred because the vehicle used is not registered, licensed or roadworthy. The same ruling shall apply to any employee not having an unendorsed driver s licence. 3.8 SAQA-owned vehicles Refer to the Vehicle Policy Manual. 12
3.9 Insurance 3.9.1 General 3.9.1.1 SAQA shall take out insurance cover in respect of all sudden, unforeseen medical expenses incurred while a person is away on a business trip. 3.9.1.2 If an individual is required to take precautions such as malaria tablets (not covered by medical aid) when travelling to an affected area, these expenses can be claimed back as part of the normal expense claim system. 3.9.1.3 Additional cover required, such as life insurance, must be arranged by the individual for his or her account. 3.9.1.4 Contingent liability cover must be taken out by SAQA to provide indemnity cover against possible third-party claims resulting from an accident. This cover excludes damage to the person s own vehicle. 3.9.2 Hired vehicles 3.9.2.1 Insurance cover must be taken out on all hired vehicles. 3.9.2.2 In case of an accident or any damages which result in a loss, the driver is liable for refunding such losses to SAQA (including the insurance excess) if it is proved that the driver was negligent. 3.9.3 Privately owned vehicles 3.9.3.1 Persons who use their own vehicles for official trips must ensure that their vehicles are insured for private as well as professional purposes. 3.9.3.2 Individuals are required to provide proof that vehicles are adequately insured. 3.9.3.3 Where professional cover increases the premium of an individual, reimbursement of such extra amount shall be considered by SAQA on an annual basis against sufficient proof of the extra amount payable. 3.9.3.4 Individuals must submit a proposal for consideration of payment of the additional amount by SAQA before the finalisation of such insurance, since SAQA shall not 13
3.10 Foreign exchange consider unreasonable amounts for professional cover on vehicles. 3.10.1 Exchange control regulations must be strictly observed. 3.10.2 The individual must purchase his or her own foreign currency. 3.10.3 The amount taken in traveller s cheques and foreign currency is dependent on business requirements and the approval of the Executive Office. 3.11 Feedback upon return 3.11.1 Individuals who are required to travel internationally for business purposes must provide formal feedback, in writing, to their superior upon return. 3.11.2 The feedback must be made available to the entire organisation. 3.11.3 If a group of members undertake a trip, a combined report signed by all delegates must be submitted. 3.11.4 Where a member of the Board or the Chief Executive Officer undertakes an international trip, written feedback must be given to the Chairperson of the Board. 3.11.5 In the case of the Chairperson of the Board undertaking the trip, written feedback of his or her trip must be given to all members of the Board at an official meeting. 14
Procedure on Business Travel Status: Approved Custodian: Director: Finance and Administration Date approved: 2012-03-17 Implementation date: 2012-03-18 Decision number: SAQA 0795-12 Due for review: 2015-03-07 Procedures on Business Travel
Business travel 1. Introduction Compliance with the Business Travel Policy is the responsibility of every traveller. Ensuring compliance is the responsibility of the relevant Director. Broad responsibilities of all travellers include: familiarisation with the provisions of the policies and procedures ensuring that prior approval and authorisation is obtained from the relevant delegated authorities the exercise of good judgement in respect of expenditure incurred checking the accuracy of accounts and supporting documentation prior to the authorisation of payment reporting on all travel expenditure incurred expeditiously, using the required reporting format 2. Air travel and accommodation 2.1 All approved requests for travel and accommodation must be forwarded timeously to the appointed official within each directorate to ensure that the necessary arrangements are made. 2.2 When an invoice is received from the appointed travel agent or the airline, the invoice must be reconciled to the approved request for travel form prior to any request for payment. 2.3 An approved request for payment must be forwarded to the Finance and Administration Directorate for final payment. 2.4 Refer to the Payment Policy and Procedure Manual. 3. Daily allowances 3.1 The expense claim and payment requisition form must be handed to the appointed official within each directorate, together with the approved request for travel form and the approved itinerary. 3.2 The expense claim and payment requisition form must reflect the number of nights spent away from home and the total amount claimable. 3.3 The approved expense claim and payment requisition form must be forwarded to the Finance and Administration Directorate for payment. 3.4 The payment shall be made by the Finance and Administration Directorate by direct transfer into the employee s bank account. 3.5 Refer to the Payment Policy and Procedure Manual. Procedure on Business Travel 2
4. Travel advances 4.1 The request for a travel advance must be handed to the appointed official within the relevant directorate on the prescribed form, together with the approved Request for Travel form and the approved itinerary. 4.2 The appointed official within the directorate must forward the approved Request for Travel form to the Finance and Administration Directorate for payment. 4.3 The payment shall be effected by the Finance and Administration Directorate by travellers cheques or direct transfer into the individual s bank account, or where this is not possible, by cheque. 5 Hired vehicles 5.1 The appointed official within each directorate shall only arrange for the hire of a vehicle once the travel has been approved by the Director within their Directorate and if applicable, an approved briefing note. 5.2 It is the responsibility of the individual using the hired vehicle to note and agree the opening and closing odometer reading on the vehicle and to officially sign off the accurate reading in order to avoid disputes when the reading is quoted on the invoice. 5.3 The reading (as signed for) must be forwarded to the appointed official within the directorate for notification immediately after the trip has been undertaken, in order to allow the appointed official to match and verify the reading on the invoice once it has been received. 5.4 The statement received from the supplier or appointed travel agent must be reconciled and agreed by the appointed official within the directorate. 5.5 The appointed official within the directorate is responsible for agreeing the details on the approved request for travel to the actual invoice/statement received and investigating any variances before processing the claim for payment. 5.6 An approved expense claim and payment requisition form must be forwarded to the Finance and Administration Directorate for final payment. 5.7 Refer to the Payment Policy and Procedure Manual. 6 Reimbursive travel expenditure Refer to the Procedure Manual on Reimbursive Travel Expenditure. Procedure on Business Travel 3