Business Expense Reimbursements, Travel and Hospitality Policy

1. Introduction and Purpose

Loyalist College is accountable for the sound management of public funds and its business expense budget in a fiscally responsible manner. Therefore, the college endeavours to ensure all business expenses are approved through an open, fair, and transparent process.

The purpose of this policy is to set out rules and principles for the reimbursement of business expenses to ensure fair and reasonable practices. This policy establishes an accountability framework to effectively guide college employees with respect to the reimbursement of expenses, as well as provide transparency of the college’s travel and hospitality policy.

2. Application

This policy applies to all college employees, volunteers, board members, and students authorized to travel for college business and/or training. It also includes all consultants and contractors engaged by the college.

This policy also applies to the reimbursement of funds from research grants. In cases of reimbursement of research funds that fall outside of the scope of this policy, refer to the FIN 515 Financial Administration of Research Funds Policy. In the event of any conflict between the granting agency’s policies and those of Loyalist College, funds will be administered in accordance with the more stringent financial policy of the two.

This policy does not prevail over legislation, collective agreements, or other terms and conditions of employment between the college and its employees, in the event of any conflict or inconsistency.

3. Definitions

Approver – The claimant’s supervisor with the authority to approve expense claims.

Alternative Work Location – A work location other than the employee’s primary work location.

Broader Public Sector (BPS) Agencies/Organizations – Broader Public Sector (BPS) organizations include those organizations that receive government transfer payments to provide services to the public; for example: colleges, universities, school boards, hospitals, long-term care facilities, community care access centres and children’s aid societies. 

Claimant – Any individual making a business expense claim under the terms of this policy.

Consultants and Contractors – Individuals or entities under contract to the college in the provision of consulting or other services. 

Delegation of Authority – A written assignment by which a person who has power, duty, function, or responsibility under this policy authorizes another person (identified by name or by position title) to exercise an aspect of their power, duty, function, or responsibility.

Designated Off-Site Location – An employee’s home or place of residence.

Expense – Out-of-pocket expenditures incurred by a claimant in support of college business activities.

Primary Work Location – The location designated as the main campus/college location whereby in part or all work functions are completed by an employee. Each employee will have a primary work location, also known as a home campus, identified.

Hospitality – The provision of food, beverage, accommodation, transportation, and other amenities paid out of public funds to people who are not engaged in work for any designated Broader Public Sector agency under the Broader Public Sector Accountability Act.

International Travel – Travel to any country other than Canada.

Itemized receipt – Original document identifying the vendor, the date, and the amount of each expense item listed (itemized) paid by the claimant.

Managerial Authority – The administrative authority to make decisions and choices with some degree of flexibility, while maintaining compliance with this policy.

Travel – Authorized business travel. For the scope of this policy, travel does not include commuting between a claimant’s home or place of residence and the claimant’s primary work location at Loyalist College.

4. Policy Statement

Loyalist College is committed to ensuring that all expenditures incurred within the course of the college’s operations are transparent and in support of its business objectives. Claimants and approvers are expected to use integrity, prudence, and good judgment in the application of this policy.

Individuals should neither personally gain nor lose due to incurred out-of-pocket expenditures on behalf of the college. Loyalist College will reimburse business expenses that are legitimate, fair, reasonable, and appropriate for the business activity undertaken and that meet the terms and conditions set out by this policy and the funding source used to pay for them.

5. Reimbursement

1. It is the responsibility of the claimant to complete and submit all necessary approvals and claims to the appropriate supervisor.
2. All business expenses claimed for reimbursement must be accompanied by the appropriate itemized documentation/receipts. Credit card statements or debit card receipts do not qualify as itemized receipts. Good record-keeping practices must be maintained for verification and audit purposes.
3. To ensure the timely recording of expenses, Loyalist College reserves the right to reject reimbursement claims after the closure of the fiscal year. Claimants should submit expenses in a timely manner, within three months of incurring the expense and prior to the fiscal year end.
4. Expenses for a group can only be claimed by the most senior person present.
5. An individual cannot claim expenses incurred by their approver.
6. For expenses incurred in dollar amounts other than Canadian dollars, the expenses must be converted to Canadian funds and substantiated either by exchange rate receipt or credit card statement attached to the claim report.
7. If leaving employment with the college, the claimant must submit any claims for expenses prior to leaving the organization.

6. Non-Reimbursable Expenses

The college may reject any expense claims that are considered unreasonable or not in compliance with college policies, initiatives, values, or business objectives.

Without limiting the forgoing list, the following expenses are not reimbursable under this policy:

• Items purchased for personal use.
• Service charges related to the late payment of a credit card or any other surcharges relating to an expense which the claimant ought to have avoided but failed or refused to complete in a timely manner.
• Charges related to fines for parking violations, traffic related offences, or border crossing violations.
• Additional costs related to voluntary changes to existing travel arrangements or ‘no show’ charges unless such charges are incurred due to business-related circumstances or extenuating personal circumstances.
• Any expense savings realized with the use of coupons, personal travel rewards points or expenses covered by a vendor/external research funding agency/insurance company.
• Additional charges for hotel movies, games, in-room bar services, etc.
• Home internet.
• Expenses related to insurance, gas, repair and maintenance, and roadside assistance membership for personal vehicles.
• Food, hospitality, or any incidental expenses for consultants and contractors, unless their contract specifically provides for such expenses.

7. Expense Claim Reimbursement Approvals

The approver is responsible for ensuring that expenses claimed are for college purposes and are in accordance with college policies.

Approval shall only be granted for claims with all mandatory and appropriate documentation included.

Approvers are prohibited from approving their own expenses. The expenses of the President and CEO will be approved by the Board of Governors.

Managerial Authority

Managerial authority is the administrative authority to make decisions with some degree of flexibility in fulsome knowledge of a claim situation, while maintaining compliance with this directive and the rules outlined to ensure the best interests of the college.

When a situation arises and discretion must be exercised, approvers should consider whether the request is:

• Able to stand up to the scrutiny of auditors and members of the public.
• Properly explained and documented.
• Fair and equitable.
• Reasonable.
• Appropriate.

When an approver is exercising discretion, the rationale must be documented and filed with the claim to ensure transparency. 

The President and CEO and/or the College Executive Team have the authority to establish additional rules regarding expenses. Any additional rules should be consistent with those laid out in this policy and be necessary to meet specific operational needs. These additional rules must be made accessible to everyone covered by the new rules.

8. Professional Development

Expenses related to professional development may be reimbursed when they have been pre-approved. Conferences, seminars, courses, and other professional development activities may be covered.

9. Hospitality

9.1 Hospitality Event Parameters

Hospitality expenses are limited to the provision of food, beverage, accommodation, transportation, and other amenities provided to people who are not engaged to work for the college, any other Broader Public Sector (BPS) organizations, or any of the other Ontario government ministries, agencies or public entities.

Functions involving only people who work for the college are not considered hospitality functions and cannot be reimbursed. This means that hospitality may never be offered solely for the benefit of anyone covered by this policy and procedure, or in cases of events with only Loyalist College employees in attendance. Examples of functions that are not reimbursable would be, but are not limited to: office social events, retirement parties, flowers, donations, gifts, memorials, and holiday lunches.

Hospitality may be extended in an economical and consistent manner when it:

• Facilitates college business;
• Is in pursuance of donor stewardship and/or cultivation; or
• Is considered desirable as a matter of courtesy or protocol.

Hospitality may only be provided when it does not obligate, appear to obligate, or inappropriately influence the recipient and is provided in support of the college’s initiatives and goals.

Expenses that do not fit the definition of hospitality provided and have not been pre-approved will not be reimbursed.

9.2 Alcohol provided within a Hospitality Event

Reimbursement for any alcohol-related expense claim falling within the hospitality rules under Section 9.1 Hospitality Event Parameters will require approval from the President and CEO. Where the claim is made by the President and CEO, the Chair of the Board of Governors will be required to approve the expense claim. These approval powers cannot be delegated.

Alcohol served within the directives of an approved hospitality event will be provided in a responsible manner, adhering to appropriate liquor licenses and laws.

10. Meals

Employees may be reimbursed for approved, necessary, and reasonable business meal expenses. Business meals are those taken with guests, professional colleagues, or donors during which business discussions take place.

Meal expenses are allowed if they are pre-approved, or if the claimant is on college business and working continuously for more than three hours prior to and/or beyond their normal work hours, if food is not provided.  

Reimbursement is for purchased restaurant/prepared food only. Reimbursement will not be provided for meals consumed at home or meals included in costs of transportation, accommodation, seminars, or conferences.

Meal expenses will be reimbursed based on the rates in FIN 504 Appendix A Business Expense Reimbursement Rates. Meals will be reimbursed at the established meal reimbursement rates, regardless of the actual meal costs. Taxes and gratuities are included in the meal reimbursement rates.

In reviewing meal reimbursement claims, approvers should be mindful of whether the amount of the claim is reasonable and appropriate within the circumstances surrounding the event. Reimbursement will not be provided when attending conferences where meals are provided.

11. Alcohol

Alcohol cannot be claimed and will not be reimbursed as part of business travel or a meal expense. For rules regarding reimbursement for the service of alcohol as part of an approved hospitality event, see Section 9, Hospitality.

9. Travel Approval

Request for Approval to Travel

Prior to requesting approval to travel, employees must determine whether other options for meetings would be more practical under the circumstances.  Audio, web, or video conferencing methods should be considered. The method of travel, the type of hotel accommodations chosen, meal expenses, and any other related expenses incurred during travel must balance cost-effectiveness with practicality given the entire context of the trip. 

Approval for travel must be obtained prior to incurring any travel expenses. Delegation of authority with respect to travel approvals is prohibited. Claimants must complete FIN 504 Appendix B Approval to Travel Form and if appropriate, FIN 504 Appendix D Travel out of Province Form. Claimants are required to utilize the chart below to ensure submission of the completed forms to the correct approver.

Position	Within Ontario	Within Canada	International
Board Chair	Vice Chair	Vice Chair	Vice Chair
President and CEO	Board Chair	Board Chair	Board Chair
College Executive Team	President and CEO	President and CEO	President and CEO
Employee	Dean/Director	Dean/Director	President

Travel Expense Reimbursement

An approval to travel is not an approval for expense reimbursement. Claimants must collect itemized receipts during their course of their travel and submit an additional form for travel expenses using FIN 504 Appendix C Business Reimbursement Expense Form within two weeks of the completion of the trip.

13. Accommodation

Itemized receipts for accommodation costs are required. Receipts will require a detailed breakdown of any lump sum charges (i.e., incidental expenses and room service charges). Reimbursement will be made for a single accommodation in a standard room.

There will be no reimbursement for extra costs associated with hotel suites, executive floors, or concierge levels when travelling unless it is required for hosting outside guests or represents a more effective and economical alternative than paying for other hotel facilities or services. Claimants will not be reimbursed for movie or game rentals, bar services, and other hotel services such as health clubs, personal grooming, spa services, etc. Such costs, if incurred, should be set out in a separate invoice from any expenses to be reimbursed.

If the employee chooses to stay with relatives or friends, they may claim an amount per night in lieu of accommodation costs, outlined in FIN 504 Appendix A Business Expense Reimbursement Rates. No receipt is required to claim this amount, but a submission of a completed FIN 504 Appendix C Expense Form by the claimant is necessary.

14. Telecommunication

College-issued cellular phones may be used for business purposes when travelling.

Claimants without a college-issued cellular phone are expected to arrange a travel package for their personal phone or select the least expensive means of communication while travelling and seek reimbursement accordingly.

15. Dependent Care

Meals purchased during travel will be reimbursed to a maximum amount per meal. All claims for meals must be accompanied by an itemized receipt.
An employee may incur adult or child-dependent care costs while on college business travel. College employees should neither gain nor lose personal funds because of additional dependent care costs when undertaking college business.

The college will consider reimbursing dependent care costs when:

• The employee is required to be absent from their residence on authorized college business travel.
• The usual caregivers are unavailable or not scheduled to provide care.
• Expenses incurred due to business travel are in addition to expenses the employee would incur when not travelling.

Pre-approval of additional dependent care expenses is required. Original receipts must include the following: the dates and times the services were rendered, the caregiver’s name/business, the caregiver’s contact information, and the total cost.

The college may consider reimbursing other costs incurred for the provision of dependent care (e.g. dependent’s airfare) when appropriately justified, pre-approved, and documented as part of a travel claim.

16. Travel Requirements and Health Insurance

The cost of any required immunizations or visas for pre-approved international travel will be reimbursed.

Out-of-country medical and health insurance is covered for employees travelling on college business, if not covered by existing employee benefits. It is the traveller’s responsibility to consult their SunLife benefits for specific details of the coverage that is provided.

17. Transportation

For the purposes of this policy, travel does not refer to a person’s regular commute to their primary work location. Each employee will have a primary work location assigned. Expenses related to a person’s regular commute from their designated off-site location (i.e. home or place of residence) to their primary work location are not reimbursable.

Carpooling is recommended for multiple people travelling to the same destination.

17.1 Kilometric Reimbursement for Personal Vehicle Usage

Automobile kilometric claims are permitted for authorized travel on college business using a personal vehicle to an alternative work location or other campus location besides the employee’s primary work location. Kilometre claims must be calculated from the claimant’s primary work location (home campus) to the destination, or from the claimant’s designated off-site location (home or place of residence) to the destination, whichever is shorter.

The reimbursement amount per kilometre will be in accordance with the rates as established by the college within FIN 504 Appendix A Business Expense Reimbursement Rates.

17.2 Automobile Insurance

The kilometric reimbursement rate is calculated to cover vehicle expenses, including the cost of insurance.

Staff members must ensure that they have appropriate insurance for their personal vehicles. College insurance does not cover the use of staff-owned automobiles for college business. Therefore, staff members must use their own insurance for any business-related travel. The college will not reimburse the costs of insurance coverage for business use, physical damage, or liability. The college is not responsible for reimbursing deductible amounts related to insurance coverage. In the event of an accident, an employee will not be permitted to make a claim to the college for any resulting damages.

17.3 Rental Vehicles

When travelling, the choice of driving a rental vehicle or personally owned motor vehicle is at the discretion of the employee.

When renting a vehicle, a compact or intermediate model or its equivalent is the standard. Any exceptions must be:

• Documented and approved prior to the rental, if possible; and
• Guided by the principle that the rental vehicle is the most economical and practical size, considering the business purpose, number of occupants, and safety (including weather) considerations.

Receipts are required when submitting fuel purchase claims for rental vehicles.

College insurance covers rental vehicle use for employees on college business within the United States and Canada. For renting vehicles internationally, rental insurance must be purchased and submitted for reimbursement.

17.4 Parking and Tolls

Reimbursement is provided for necessary and reasonable expenditures on parking, as well as for tolls for bridges, ferries, and highways when driving on college business. The appropriate itemized receipts for such costs will be required before reimbursement will be provided.

Parking and toll costs incurred from a person’s regular commute to work will not be reimbursed.

The use of toll highways for travel, including but not limited to Highway 407 (ETR), is acceptable. Employees will be reimbursed for the cost of travelling on the toll road. If an employee does not have a transponder, the cost of the video toll fee per trip will be covered. The college will not reimburse any additional costs related to an employee’s personal account (such as interest charges or late payment fees).

17.5 Taxis and Public Transit

Travel by taxi and public transit (i.e., bus/subway) is permitted where it is the most economical or practical means of transportation. Reimbursement will require itemized receipts, including any paid gratuity.

17.6 Train

Travel by train is permitted when it is the most practical and/or economical way to travel. Train travel within Canada must be made on coach class economy fare. Train travel in countries other than Canada should also be made on coach class economy fare (or equivalent) unless the levels of risk related to health and safety within the country require a higher-class level to be purchased.

17.7 Airplane

Air travel is permitted if it is the most practical and/or economical way to travel.

Economy class seating is the standard approved option, apart from the conditions set out within Section 17.8, International Air Travel. If an airline offers multiple classes within economy, the employee may select a fare that includes options for advanced seat selection and checked bags only. Should there be no fare options within economy, reasonable expenses for luggage and advance seat selection fees are permitted. Any fares that include refund or cancellation options are not permitted.

Any upgrade charge related to air travel is at the personal cost of the claimant. There will be no reimbursement for extra costs associated with air travel such as lounge access, Wi-Fi, movies, headsets, alcohol, etc.

17.8 International Air Travel

Economy class seating is the standard option for international travel. Business class seating may be permitted on international flights with prior written approval from a CET member, if the one-way flight time exceeds 6 hours (not including stopovers), or on flights within Canada and the United States if related to the provision of reasonable accommodation (e.g., health reasons). This approval should be incorporated into the FIN 504 Appendix D Approvals for Travel Out of Province form.

18. Related Documents and Links

• FIN 515 Financial Administration of Research Funds Policy
• FIN 504 Business Expense Reimbursement Procedure
• Appendix A: Business Expense Reimbursement Rates
• Appendix B: Approval to Travel Form
• Appendix C: Expense Form (Portal access required)
• Appendix D: Travel Out of Province Form
• FIN 206 Purchasing Card Policy

19. References

• Broader Public Sector Accountability Act, 2010
• Travel, Meal and Hospitality Expenses Directive – Ontario, 2020