Administrative Procedure 513

EMPLOYEE BUSINESS EXPENSES

Background

Business expenses incurred by Division employees, in the performance of Division business, shall be either charged to the employee’s purchase card, if a card has been issued to the employee; or reimbursed to the employee. To ensure effective stewardship of funds, employees shall use sound logic and financial responsibility in carrying out their duties.

Individuals incurring business expenses on behalf of the Division shall ensure compliance with Division Administrative Procedures, in particular, the Administrative Procedure 511: Public Sector Purchasing Code of Ethics and Administrative Procedure 515: Procurement and Contracts.

Definitions

Business travel:
refers to meetings with external parties and associated costs including travel, meals and parking.

Professional development:
refers to formal courses, conferences, seminars, and other professional learning events and associated costs including registration, travel, airfare, accommodations and meals.

Professional membership dues:
are dues paid to a professional association on behalf of an employee.

Working sessions:
refers to meetings with internal departments or schools and associated costs including travel, meals, parking, and business insurance on a private vehicle.

Procedures

1. The procedures defined herein shall be in effect for employee business expenses, regardless of the source of funding—school generated funds, school operating budget or department operating budget.
2. Expense Transparency
   1. Employees shall ensure all business expenses are reasonable, appropriate and practical.
      1. Employees shall ensure all business expenses are considerate to the responsible spending of public dollars and ensure all business expenses are able to withstand the scrutiny of auditors and members of the general public. Good judgment means a purchase is not made even when it is not against the rules but it may be perceived by a reasonable outsider as inappropriate.
   2. All business expenses, whether paid by purchase card or the employee, shall be accompanied with original, itemized receipts to support the expense. For example, meal receipts are to list those attending the meal and the business reason for the meal. Travel costs are to include an explanation as to why travel was required, such as the specific meeting topic or name of the conference.
   3. Credit card or debit receipts are not considered sufficient support for expenses. Where an employee is unable to provide the original itemized receipt for a business expense, the Missing Receipt Form (513-2) must be completed and signed by the employee and the employee's supervisor. Excessive use of the form shall result in disciplinary action.
   4. On a quarterly basis, expenses incurred by the Superintendent and Secretary-Treasurer related to working sessions, business travel, professional development and professional membership dues shall be reported online through the Division’s website. The reports shall include:
      1. a summary of the expenses incurred during the previous three months;
      2. a description and rationale for the expenses; and
      3. copies of the detailed receipts with personal information redacted.
3. Payment Methods
   1. Allowable business expenses may be reimbursed if an employee pays the expenses from personal funds. However, the Division requires business expenses are paid directly, when possible, using other procurement and payment methods such as purchase orders, vendor invoices or purchase cards.
   2. Employees who are required to incur business expenses on a frequent basis shall be issued a purchase card to minimize the administrative costs associated with processing employee reimbursements.
      1. Employees who have been issued a purchase card shall charge allowable business expenses to the card.
      2. Any business expenses that are deemed appropriate but where a purchase card is not accepted by the vendor, such as taxi fare, shall be paid by the employee, to be subsequently reimbursed.
   3. When travelling with students outside of the province, such as field trips, at least one employee on the trip shall have a purchase card to be used for emergent expenses—flights home in the case of a health or other emergency.
   4. Purchase cards shall not be used for personal expenses, regardless of the employee's intent to reimburse the Division.
4. Authorization of Expense Claims
   1. Approvers are accountable for their decisions and shall ensure employee business expenses are properly explained and documented, are reasonable, appropriate, practical, considerate to the responsible spending of public dollars, and able to withstand the scrutiny of auditors and members of the general public.
   2. Employee business expenses shall be approved by the employee’s direct supervisor, or the next appropriate level in the organization structure that has the necessary signing authority as per Administrative Procedure 514: Signing Authority and the Signing Authority Matrix (Appendix 514-A).
      1. Principals’ expenses shall be approved by the Secretary-Treasurer or Associate Superintendent, as assigned.
5. Submission of Expense Claims
   1. Business expense claims shall be made using the Employee Expense Reimbursement Form (513-4) and as per the Financial Process Manual (Appendix).
      1. Business expense claims shall be submitted by the end of the month in which the business expense was incurred, but no later than quarterly throughout the school year in a time and manner determined by the Secretary-Treasurer.
      2. Payments shall be made by direct deposit to the same bank account identified by the employee for payroll purposes. Manual cheques may be approved at the discretion of the Director of Financial Services in circumstances of emergency or system failure.
   2. If it is subsequently determined the employee has falsified a business expense claim, any overpayment shall be recovered and disciplinary action shall be taken against the employee.
6. Travel Authorization
   1. Travel may be authorized when reasonably required or when other means of communication limit accomplishment of objectives.
      1. Requests for local travel shall be made to the employee’s direct supervisor for consideration.
      2. Requests for travel outside of Alberta shall be presented to an employee’s direct supervisor for consideration, and shall then be forwarded for consideration to the Superintendent using the Outside of Alberta Travel Request Template (513-3).
   2. Should an employee choose, for personal reasons, to extend the length of time required for a business trip, additional time shall be considered as vacation or leave without pay. Additional expenses above those required for the business portion of the trip shall be paid by the employee.
   3. Costs for travel outside Canada shall be reimbursed in Canadian currency plus the applicable exchange rate, for authorized expenditures that are supported by the appropriate documentation described in the Expense Reimbursement Schedule (Appendix 513-A).
7. Medical Insurance and Medical Expenses
   1. An employee who is required to travel outside Canada on Division business shall have emergency medical travel insurance.
      1. If medical travel insurance is needed, the employee shall be reimbursed as prescribed in the Expense Reimbursement Schedule (Appendix 513-A), for the portion relating to the duration of business travel, as supported by an itemized receipt including proof of payment and reason for the business travel.
   2. Emergency medical expenses incurred during international business that are not covered by medical travel insurance are not eligible for reimbursement.
8. Accommodation
   1. Lodging expenses related to travel on Division business are reimbursable.
      1. The actual cost of accommodation shall be reimbursed up to a maximum of the rate charged for a standard room, as prescribed in the Expense Reimbursement Schedule (Appendix 513-A), supported by an itemized receipt including proof of payment and the business reason accommodations were required.
9. Meals
   1. Meal expenses related to travel on Division business are reimbursable.
      1. The actual cost of meals including gratuity of not more than 20 per cent shall be reimbursed, supported by itemized receipts including proof of payment, and listing the people attending the meal and the business reason for the meal.
      2. Should the employee choose substitute meal(s) at a conference or sponsored group dinner, the employee is not entitled to reimbursement for the substitute meal(s).
      3. Alcohol is not an eligible expense and cannot be claimed through a purchase card nor an expense reimbursement.
   2. An employee who is authorized to work overtime of more than two consecutive hours immediately following a regularly scheduled shift on a normal workday, who purchases a meal during a break or immediately following completion of the overtime period shall be reimbursed the actual cost of the meal including gratuity of not more than 20 per cent, supported by an itemized receipt including proof of payment and the business reason for the overtime.
   3. Reimbursement for meals may be authorized, at the supervisor’s discretion, for an employee who is required to work during emergency and other call-out situations. The employee shall be reimbursed the actual cost of the meal including gratuity of not more than 20 per cent, supported by an itemized receipt including proof of payment and the business reason for the meal.
10. Transportation
    1. An employee who is required to travel on Division business may make a business expense claim for transportation costs.
       1. The most reasonably direct, economical, and logical mode of transportation available shall be utilized.
          1. Should an employee choose to utilize a mode of transportation outside of these parameters, reimbursement shall be made as if the prescribed mode of transportation was utilized.
       2. The actual cost of transportation, including airfare; public transportation such as bus and LRT, taxi fare, automobile rental and insurance, and parking charges, shall be reimbursed as prescribed in the Expense Reimbursement Schedule (Appendix 513-A), supported by itemized receipts including proof of payment and the business reason travel was required.
       3. The cost of air travel shall not exceed regular economy class rates and may include seat assignment and one checked bag.
       4. In the event an employee rents an automobile, in order to limit the Division's exposure to risk and liability, the employee shall enter into the rental contract under the name “The Board of Trustees of Elk Island Public Schools”—if the rental company allows use of a company name—and shall purchase the maximum amount of rental insurance available to limit exposure to risk and liability.
       5. Parking tickets or Traffic Act violations incurred by the employee are not eligible business expenses and shall not be reimbursed.
    2. Whenever possible, two or more employees travelling to the same destination shall share transportation.
       1. In instances where more than one employee shares transportation, only one employee shall submit a business expense claim for transportation costs.
11. Communication Devices
    1. An employee may be assigned a Division communication device to use in completing the duties of his or her role—iPhone, iPad, wireless air card.
       1. Division devices are intended for use primarily for Division business.
       2. Division device usage and long-distance charges incurred by the employee in the course of carrying out his or her duties shall be charged to the applicable school or department operating budget.
       3. Division device usage and long-distance charges of a personal nature that have exceeded the reasonable amount permitted shall be reimbursed by the employee to the Division.
       4. An employee required to use his or her Division device while travelling on Division business is permitted to use his or her Division device for personal reasons, within a reasonable amount.
       5. If an employee travelling outside Canada for Division business or personal reasons—vacation for example—has been advised by his or her supervisor there is no business requirement to use his or her Division device, travel-related charges incurred during the trip shall be the responsibility of the employee.
       6. Employees required to use a Division device when travelling outside North America shall set up a roaming plan or pre-purchased call time by contacting the Director of Information Technologies.
       7. All employees travelling outside Canada shall follow common practices to minimize Division device roaming charges as per Travelling International with EIPS Devices (Appendix).
       8. Charges incurred for downloading device applications, such as iTunes, that have not been approved by the supervisor shall be reimbursed by the employee to the Division.
       9. Invoices significantly exceeding the typical monthly bill for an employee shall be identified by the Director of Financial Services and forwarded to the employee’s supervisor for approval.
       10. The Division shall not reimburse usage charges on a personal communication device. If the employee is required to have a communication device for Division business, a Division device shall be provided.
       11. Reimbursements by the employee for personal use charges shall be paid to the Division within a reasonable period of time. Employees may reimburse the Division by either:
           1. deducting the total expense from his or her business expense claim being submitted in that month—by insertion as a negative or credit expense at the bottom; or
           2. providing a personal cheque in the total amount to the Secretary-Treasurer, indicating the applicable general ledger code, payable to “Elk Island Public Schools.”
12. Mileage
    1. An employee who is required to use a personal automobile to complete Division business may submit a business expense claim for mileage.
       1. An employee shall be reimbursed for mileage costs, not fuel charges, as prescribed in the Expense Reimbursement Schedule (Appendix 513-A), supported by a report of kilometres (km) travelled and an explanation of the reason travel was required. Employees requesting reimbursement for mileage costs to travel between Division schools and Central Office for Division business shall calculate costs using the km standards in the Employee Expense Reimbursement Form (513-4).
       2. An employee requesting reimbursement for mileage costs to locations other than those listed in the Employee Expense Reimbursement Form (513-4), shall track km travelled in the course of completing Division business, using a reliable method—for example, odometer reading, Google Maps.
       3. Mileage shall be paid as follows:
          1. Employees whose duties require them to travel throughout the Division shall be assigned a base worksite from which mileage shall be calculated. This shall reflect their normal worksite assignment.
          2. For employees with one regular worksite, this shall be their normal worksite assignment.
          3. When an employee travels to a different location on their way to or from their home or normal worksite, the employee may only charge the incremental mileage over and above that of their usual route from home to their normal worksite.
          4. When the employee travels to a different location directly from home and does not go to their normal worksite that day, the employee may only charge the incremental mileage over and above the mileage of their usual route from home to their normal worksite.
          5. When an employee starts and ends the day at their normal worksite but travels to various destinations throughout the day they shall be reimbursed for the distance actually travelled.
       4. In instances where more than one employee shares transportation, only one employee shall submit a business expense claim for mileage costs.
13. Business Insurance
    1. An employee who is required to use a personal automobile to complete Division business may submit a business expense claim for business insurance costs.
       1. An employee who is required by an insurance provider to be insured for business use of an automobile for travel on Division business shall be reimbursed as prescribed in the Expense Reimbursement Schedule (Appendix 513-A), supported by an itemized receipt including proof of payment.
    2. To limit Division liability, employees who are regularly required to use a personal automobile to complete Division business and who do not request reimbursement for business insurance may be requested to provide a statement from an insurance provider waiving the requirement for business insurance.
14. Public Relations
    1. The Superintendent, Associate Superintendent(s), Secretary-Treasurer, and other employees may be required to attend official functions or other public events on behalf of the Division.
       1. Executive Team members are regularly required to incur expenses for public relations purposes and shall be reimbursed as prescribed in the Expense Reimbursement Schedule (Appendix 513-A), supported by itemized receipts including proof of payment and details of the event.
       2. Executive Team members may request employees to attend an official function or another public event as a Division designate. Any expenses incurred by an employee in carrying out these duties shall be reimbursed as prescribed in the Expense Reimbursement Schedule (Appendix 513-A), supported by an itemized receipt including proof of payment and details of the event.
       3. Principals and Directors may also make a request for consideration to the Superintendent for themselves or other employee(s) to attend other public events as a Division designate. If authorized, any expenses incurred by an employee in carrying out these duties shall be reimbursed as prescribed in the Expense Reimbursement Schedule (Appendix 513-A), supported by an itemized receipt including proof of payment and details of the event.
15. Special Provisions
    1. The Superintendent has the ability to authorize business expenses that are not expressly listed herein.
    2. Leadership may wish to use their purchase card to sponsor team-building events or other team functions to encourage and support team and employee morale in the Division—for example, a group meal or activity.
       1. Expenses incurred for these functions—meals, beverages, facility rental, activities—may not be expressly authorized herein.
       2. Approval for such expenses shall be authorized according to Administrative Procedure 514: Signing Authority and the Signing Authority Matrix (Appendix 514-A).

References

Section 18, 20, 60, 61, 96, 113, 116, 117 School Act
Section 248L Canada Tax Act
Canadian Income Tax Regulation 6801

Appendix 513-A, Expense Reimbursement Schedule

Last Updated: September 2019