Business Expense Reimbursements, Travel & Hospitality Procedure

1. Purpose

Loyalist College is accountable for the sound management of public funds and the management of its business expense budget in a fiscally responsible manner. Loyalist College guides the effective oversight of public resources by approving its business expenses through an open, fair, and transparent process.

The purpose of this procedure is to outline the process of reimbursement for approved business expenses to ensure the expenditure of college funds is properly authorized and supports college business, initiatives, and goals.

2. Application

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

This procedure also applies to the reimbursement of funds from research grants. In cases of reimbursement of research funds that fall outside of the scope of the FIN 504 Business Expense Reimbursements, Travel and Hospitality Policy, please 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

Business Expenses – Reimbursable debts incurred by individuals during activities that have a clear business purpose and are consistent with the mission of Loyalist College.

Approver – A person with the authority to make approvals under the FIN 504 Business Expense Reimbursement Policy.

Claimant – Anyone making a claim under the terms of the FIN 504 Business Expense Reimbursement Policy.

Consultants and Contractors – Individuals or entities under contract to the College providing consulting or other services.

Employee – An individual employed by the College whether full or part-time or temporary contract.

Itemized receipt – Original document identifying the vendor with the date and amount of each itemized expense item 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.

4. Roles and responsibilities

Individuals Making Claims (Claimants)

The claimant is responsible for:

• obtaining all necessary pre-approvals from the employee they report to or from the outlined approver within FIN 504 Business Expense Reimbursements, Travel and Hospitality Policy before committing college funds.
• claiming reimbursement of expenses that are allowable under FIN 504 Business Expense Reimbursements, Travel and Hospitality Policy.
• obtaining and remitting itemized receipts for all expense claims.
• ensuring all claims are submitted using Appendix C Expense Form.
• submitting claims within three months of the incurred expense or prior to the fiscal year end. Claims cannot be reimbursed if the fiscal year has ended.
• repaying any overpayments, as these are considered debts to the government.
• maintaining appropriate documentation.
• filing any expense claims prior to leaving college employment.

Individuals Approving Claims (Approvers)

The person authorized to approve the expenses is responsible for:

• approving expenses that were necessarily incurred in the performance of college business.
• approving expenses only for employees that are designated to seek their approval for expense claims, and never providing approval for their own expenses or their approver’s expenses.
• approving reasonable expenses that fall within the guidelines of FIN 504 Business Expense Reimbursements, Travel and Hospitality Policy.
• ensuring appropriate documentation is included in instances where managerial authority has been exercised to approve an expense.
• ensuring appropriate documentation is included and attached to the claim to support the claimed expenses.

Board of Governors Chair

The Board of Governors Chair is responsible for the pre-approval of the President and CEO’s travel and the approval of any claimed expenses.

Financial Services

Financial Services is responsible for:

• providing the college community with advice and guidance relating to the reasonability of expenses and the processes for seeking reimbursement.
• reviewing expense claims for accuracy and compliance with the FIN 504 Business Expense Reimbursements, Travel and Hospitality Policy.
• ensuring proper documentation for audit and verification purposes, including additional documentation for instances of the use of managerial authority and instances of absent itemized receipts.
• promptly processing properly approved and documented claims for payment.
• withholding reimbursement that contravenes college policies and remitting the claim to their supervisor for direction.

5. Making a claim for business expense reimbursement

• Step One – Before undertaking a business expense, the claimant should ensure that the expense aligns with FIN 504 Business Expense Reimbursements, Travel and Hospitality Policy and that appropriate pre-approval has been received:
  • For pre-approval of travel, employees must use Appendix B Approval to Travel Form.
  • For pre-approval of travel outside of Ontario, employees must use Appendix D Travel out of Province Form, in addition to Appendix B Approval to Travel Form.
  • For approval of designated business expenses requiring pre-approval, employees must seek approval with the appropriate manager/supervisor and ensure that any spending falls within the scope of the employee’s authorized limits.
• Step Two – The claimant must retain all itemized and dated receipts associated with the business expense, ensuring that they are legible.
• Step Three – The claimant should submit their claim to their designated approver in a timely fashion using Appendix C Expense Form and ensure all relevant receipts/documents are attached.
• Step Four – The approver will review the receipts and the claim to verify accuracy and whether the expenses are aligned with the college’s business operations and policies.
  • Certain instances require additional documentation by the approver for ensuring transparency of records for audit purposes. A rationale and/or further details are required in instances of approvals with the use of managerial authority or an absent itemized receipt.
• Step Five – Once approved, the business expense claim will be forwarded to the Finance Department for review. The finance team will confirm that the claim aligns with all applicable policies, directives, and legislation.
• Step Six – Upon review and approval by Financial Services, the claim will be processed within 30 days of receipt.

6. Related documents or links

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

7. References

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