Loading...
HomeMy WebLinkAboutEmployment Expense Reimbursement Policy Cape Breton Regional Municipality 320 Esplanade Sydney,NS BIP 7139 Title Employment Expense Reimbursement Policy Implementation Approved by Council January 21,2025 Date Revision Date Replaces Travel Expense Policy for Elected Officials last amended January 26, 2021,and originally adopted June 12, 1996 Travel Expense Policy for Staff last amended January 26,2021, and originally adopted June 27, 2001 Cape Breton Regional Municipality Hospitality Policy last readopted January 26, 2021, and originally adopted November 20,2018 Get Well and Bereavement Acknowledgement Policy last amended March 15, 2016,and originally adopted August 18, 1998 1. Title Employment Expense Reimbursement Policy. 2. Legislative Authorities&Related Policies The Nova Scotia Municipal Govemment Act Department of Municipal Affairs and Housing, Financial Reporting and Accounting Manual:A Regulation pursuant to the Municipal Government Act Sections 451 and 520 CBRM Corporate Credit Card Policy Code of Conduct for Elected Officials of the Cape Breton Regional Municipality CBRM Procurement Policy 3. Policy Statement It is the policy of the municipality to reimburse elected officials for reasonable and necessary expenditures incurred while conducting official municipal business. 4. Objectives The objectives of this policy are to: • Establish a process for those travelling on municipal business or engaging in hospitality activities to be repaid for allowable, legitimate expenses incurred. • Provide an accountability framework to guide the effective oversight of public resources, including rules for the approval, reimbursement, payment, and disclosure of travel expense, hospitality expenses,and working session expenses. • Provide a means for evaluating whether the Policy is effectively ensuring public funds are being used appropriately. • To comply with provision in the Nova Scotia Municipal Government Act,Section 23(3)(4),and 65D which requires a policy for reimbursement of a reportable municipal expense incurred. 5. Scope This policy applies to all employees,as well as every reportable individual (elected officials, and CAO or designate) of the Cape Breton Regional Municipality. No claims will be accepted from individuals who are not employees or elected officials of the Municipality. If there is a difference between allowance provisions in this policy and those contained in an employee's collective agreement,the collective agreement provisions will be applied. Employment Expense Reimbursement Policy 1 6. General Expense Provisions 6.1. Expense claims must be reconciled by the first working day of every month for the prior month. 6.2. Allowable expenses are outlined in Section 13 of this policy. 6.3. Allowable expenses are on an actual cost basis; or per diem rate set by Council or the appropriate committee. 6.4. Expenses are subject to disclosure under the Municipal Government Act of Nova Scotia, Part XX and as part of routine disclosure following each regular audit committee meeting and must be claimed using the correct general ledger accounts for proper tracking. 6.5. All expense claims are subject to review and audit verification. 6.6. Expenses for Directors,the CAO, and elected officials will be presented at each regular Audit Committee meeting. 6.7. Expenses are subject to budget restrictions. 6.8. Expenses incurred by non-municipal officials will not be reimbursed. 6.9. Claimants may only submit expenses for themselves; not on behalf of others. 6.10.No individual acting on behalf of the Cape Breton Regional Municipality is allowed to authorize their own expense claim. 6.11.Expenses reconciliations must be completed monthly. Expenses that remaining unreconciled may not be reimbursed at the discretion of the CAO. 6.12.Credit cards must be reconciled monthly in accordance to the CBRM Corporate Credit Card policy. 6.13.Claims for reimbursement of actual travel expenses,other than for kilometers or per diems, must be accompanied by detailed invoices and/or receipts showing proof of payment with all taxes detailed. 6.14.Debit/Credit card transaction records are not acceptable as receipts and will not be reimbursed. Only detailed/itemized receipts are accepted. 6.15.Finance will review,amend, and process approved expense claims to align with reporting requirements as required. 6.16.All expense claims, including travel, must be validated, and authorized prior to submission to Finance for reimbursement. 6.17.Support for claim submission,and travel arrangements for elected officials is provided by the Administrative Assistants for Mayor and Council. 6.18.Refer to the CBRM Corporate Credit Card Policy for additional information on purchase and travel card expenses. 7. Authorization Levels 7.1. All employment expense claims must be validated and authorized in the CBRM Expense Claim website prior to submission to Finance for reimbursement using the following authorizations: Claimant Authorized Signatory for All Expenses Mayor CAO, CFO Council CAO, CFO Chief Administrative Officer CFO Directors CAO, CFO Managers Directors, CFO Supervisors Managers, Directors Non-management employees Manager Employment Expense Reimbursement Policy 2 7.2. Travel Expenses Requiring Pre-authorization Travel outside of Atlantic Canada must be pre-approved as follows: Claimant Authorizer Mayor CAO Council Mayor, CAO Chief Administrative Officer Mayor, CFO Directors CAO Managers Directors Supervisors Managers, Directors Non-management employees Manager Travel and related expenses outside of Canada or exceeding seven days for all employees or elected officials must be pre-authorized by the CAO for reimbursement prior to travelling. Of note: Entitlements for the Federation of Canadian Municipalities(FCM) and Nova Scotia Federation of Municipalities(NSFM)convention funds are authorized by Council.Attendance at the annual FCM convention is limited to no more than half of Council members,with priority given to those who did not attend the conference in the previous year. 8. Reimbursement 8.1. Claims will only be reimbursed when the following conditions are met: • Claim is consistent with policy. • Expenses claimed were necessarily incurred in the performance of municipal business • Appropriate receipts are provided when required and support the claim and claim documentation is appropriately filed. • In considering an expense claim for payment,the CAO, CFO or designate may request additional explanations or justifications from the claimant and may refuse to approve any claim or expense they deem unreasonable or not in compliance with this policy. 8.2. Where proper documentation has been provided, payments will be processed the week following the submission date(the first day of each month). 9. Reporting Requirements 9.1. Pursuant to Section 65D of the Municipal Government Act, the CAO shall ensure that: (a) Within 90 days of the end of each fiscal quarter,the expense report for elected officials and reportable employees is prepared and posted on the Municipal website. (b) Reportable employees include the Chief Administrative Officer, Directors, staff in Council employment,and any other employees deemed reportable by Council. (c) Reportable expenses include travel and travel related expenses, including transportation accommodation and incidentals,meals, and training and education. (d) The annual summary report on expenses for the preceding fiscal year that is compliant with the requirements of the Department of Municipal Affairs and the requirements set out in the Financial Reporting and Accounting Framework is prepared and submitted to the Minister of Municipal Affairs by September 30th of each year. 10. Travel Related Cancellations Employment Expense Reimbursement Policy 3 10.1.Claimant must notify the CFO, and their authorizer as outlined in Section 7.2. 10.2.A reason e.g., medical, emergency, urgent matter must be provided 10.3.Flight credits must be transferred to the CFO in trust on behalf of the Cape Breton Regional Municipality to be reallocated if possible 10.4.Where there is insufficient reason for cancellation,the claimant may be personally responsible for fees associated with the cancellation including but not limited to: • Deposits • Conference fees • Flight related fees e.g., baggage,etc. • Hotel cancellation fees 11. Fraud,Misuse or Misappropriation of Municipal Funds 11.1.An irregular use in the expense claim submitted by an individual,or any other misuse or misappropriation of public funds, may result in disciplinary and/or legal action, not excluding termination. 11.2.Should there be suspected misuse or misappropriation of public funds,the following actions are to be taken: • Bring the item to the attention of the Chief Administrative Officer and the Chief Financial Officer. • The CFO,at the direction of the CAO, reports suspicious activity and potential misuse of funds to Council for their determination. • At the direction of Council,any file that has been reported may be referred to the Department of Municipal Affairs and Housing and/or legal counsel for direction which may result in referral to civil or criminal proceeding or other determination. 12. Policy Review Requirements 12.1. Annually; and 10.2 By January 31s'immediately following a regular election held under the Municipal Elections Act. 13. Expense Details Expense: Personal Vehicles Details Requirements Kilometer Rates: While operating a private automobile on municipal business, individuals are responsible for all vehicular Kilometer allowances are that of the Nova costs(e.g.registration, insurance,safety inspection, Scotia Federation of Municipalities(NSFM)established repairs,fines,etc.). rates,adjusted annually,effective the first day of the fiscal year—April 1. Incidental per diem shall only be The purpose of travel,destination, kilometers and paid on travel dates requiring overnight dates must be recorded on the form in the CBRM accommodation in hotels. Expense Claim website. Individuals travelling directly from their place of residence for municipal business,will be reimbursed Individuals are responsible for insuring their for kilometrage from either their employer worksite or automobiles(at the owner's expense) against third their place of residence,whichever is less. party liability for bodily injury and property damaged. Employment Expense Reimbursement Policy 4 Individuals using their personal automobile for It is the responsibility of each individual to keep business travel,will be reimbursed the current detailed records of their claims and to track their applicable kilometrage rate while on municipal kilometre usage and apply the correct rate of business. reimbursement. Individuals will not be reimbursed for standard Claims must be submitted in the CBRM Expense Claim commuting costs between their residence and their website. designated employer worksite. When safe and practical, individuals are encouraged to car-pool when travelling to the same destination for the same purpose. Nonlocal travel -No reimbursement for mileage will exceed the dollar amount of round-trip airfare at the economy rate on a licensed common carrier, plus auto rental or taxi fare at point of destination. If an individual,for their own convenience,travels by an indirect route or interrupts travel by the most economical route,the elected official will bear any extra expense involved. Reimbursement for such travel will only include part of the expense as would have been necessary to travel. No reimbursement for mileage exceeds the dollar amount of round-trip air fare at the economy rate on a licensed common carrier, plus auto rental or tax fare at the point of destination. Elected officials are eligible for reimbursement of actual kilometers travelled for official municipal business pertaining to the following: • Council/Committee meetings • Board/Agency meetings where an elected official was appointed by Council to the Board • Public meetings/hearings • Council Workshop/Training seminars/Conventions • Meetings with representatives of other levels of government • Municipal hosted events • Public events where a councilor has been officially invited as part of their role as a member of Council. • When meeting with municipal employees,the purpose of the meeting is detailed with the expenses(as purpose of travel). Expense: Parking Details Requirements Individuals may only claim parking expenses when it is Actual costs with receipts. related to travel for the performance of municipal business activities. Employment Expense Reimbursement Policy 5 Expense:Ground Transportation and Tolls for Bridges, Ferries Details Requirements Travel between destinations while on municipal Actual costs with receipts business via taxi, bus,or shuttle. Tolls on highways, bridges,ferries,etc. Expense: Meals Details Requirements Personal meal expenses are normally not reimbursed Reimbursement for meals will not exceed the with the following exceptions: per diem meal amounts set out in this policy. • When individuals are required to work past Reimbursement more than maximum meal normal working hours on an unscheduled per diem will only be made if the actual basis as outlined in collective agreements expenses are reasonable and approved by the CAO. • When individuals are required to attend formal full-day conferences, seminars, or 0 Approved meal reimbursements are to be public hearings and meals are not provided itemized on proper"Expense Claim"forms by the event. accompanied by detailed receipts. Meal and incidental per diem allowances shall be that 0 Breakfast may be claimed only when an of the Nova Scotia Federation of Municipalities employee or elected official has been (NSFM)established rates, adjusted annually,effective travelling on municipal business for more the first day of the fiscal year—April 1. Incidental per than one hour before the recognized time for diem shall only be paid on travel dates requiring the start of the day's work. Dinner may only overnight accommodation in hotels. be claimed when the employee or elected official is not expected to return to their residence before 6:30pm. • Meal costs will not be reimbursed where the cost is included in the airfare or in registration fees at conventions,conferences, or training events. (Conference itineraries shall be attached to the expense claim form). Expense:Alcohol Details Requirements The municipality is prohibited from reimbursing Do not submit claims for alcohol. expense claims for alcohol by an individual. *See Hospitality Expenses for alcohol purchases for protocol/special events organized and hosted by the officers of the CBRM's Mayor, Council or CAO. Employment Expense Reimbursement Policy 6 Expense:Travel Advance Details Requirements Advances will only be issued where an overnight stay Travel advances required completion of an approved is required. submission in the CBRM Expense Claim website. Travel advances will be issued by the Finance For travel outside of Atlantic Canada,additional Department based on reasonable estimated costs. authorization is required as outlined in Section 7.2. Advances will not be paid for less than $200. Travel advances must be reconciled against actual costs incurred by submitting an expense claim accompanied by any repayment of advance owing by within 10 days travelled.Any travel advances not reconciled in this time shall be reclaimed through payroll deduction. Travel advances must be approved and submitted no later than five working days prior to the required travel date. Expense: Hospitality Details Requirements Hospitality expenses are eligible for authorization Hospitality events exceeding$500 require pre- when incurred for the following circumstances: authorization as follows: • Hosting foreign dignitaries. Position Signing Authority • Engaging in official public matters with Member of Council CAO representatives from other governments or business, industry, labour, or other CAO Mayor community leaders. Directors CAO • Sponsoring or hosting conferences. • Hosting ceremonies or other recognition Authorization must include rationale/purpose of the Events. event,estimated numbers, reasons for the provision • Other official functions. of alcohol,estimated itemized costs including Hospitality Expenses include, meals, gratuities and supplementary expenses. beverages(including alcoholic Claims for reimbursement of hospitality expenses beverages in the case of the Mayor must be submitted on the form and within the CBRM and CAO),gratuities,set up and tear Expense Claim website. down fees, location rentals, equipment rentals,entertainment Hospitality expense claims must include the following: costs,gifts and additional costs as 0 A copy of the signed prior authorization for required. the hospitality event for which the expense was incurred. For employees, only those at the Director • The names and positions of the guests at the level and above are eligible to claim hospitality event. Employment Expense Reimbursement Policy 7 hospitality expenses where it is a 0 The business objective for the expense. functional responsibility of the employee's 0 A detailed itemized receipt for the expense. position to provide hospitality in the conduct of municipal business and where it has been In instances where prior approval of the hospitality pre-authorized by the CAO and/or Mayor. event was not possible,the hospitality expense claim must also provide the information Hospitality Expenses are subject to required above and an explanation legislated disclosure requirements. of why prior approval was not possible. Hospitality expenses incurred by one individual on If no receipt is available for a hospitality expense,a behalf of another must be attributed to the written attestation signed by the Claimant individual for whom those expenses were incurred by must be submitted to explain why the receipt is the individual who benefitted from them. unavailable, and a description itemizing and confirming the expense must be provided. Debit or No hospitality expense claim is paid unless the claim is credit card transaction records are not first approved for payment by acceptable as receipts. those noted in this policy as having signing authority to approve the claim. Before approving an expense claim, a Signing Authority must ensure that: • the claim is consistent with this policy. • the expenses claimed were necessarily incurred in the performance of municipal business. • appropriate receipts are provided to support the claim, and that the claim documentation is appropriately filed. • the expenses claimed have appropriate justification. In considering a hospitality expense claim for payment,a Signing Authority may request additional explanations,documentation or justification from the claimant, and may refuse to approve any claim or expense which did not have prior authorization and that the Signing Authority decides is unreasonable or not in compliance with this policy. Employment Expense Reimbursement Policy 8 Expense:Get Well and Bereavement Acknowledgement Details Requirements To acknowledge the CBRM staff members and their Actual receipts to be submitted via the CBRM families. Expense Claim website. The maximum amount to be expended for each acknowledgement is$150 The officer of the Mayor is responsible for the administration of this fund as it relates to Council. The CAO is responsible for the administration of this fund as it relates to staff members. Directors are responsible to notify the offices of the CAO and the Mayor when acknowledgements are required. Department acknowledgements, if made,are to be done at the expense of individual employees and not through CBRM purchasing options. Qualifications: Get Well Flowers,fruit baskets,etc.,when the recipient is a staff and/or an elected official,spouse or child when there is long-term hospitalization or lengthy illness. Bereavement Flowers, in memoriam donations where there is a death of employee and/or elected official, spouse, child, mother,father,or close relative. 14. Roles and Responsibilities Individual Claimants Individual claimants requesting employment expense reimbursement are responsible for: • Ensuring they are informed and understand this policy. • Exercising integrity and financial responsibility when planning and incurring a business expense. • Completing required reimbursement forms. • Providing appropriate documentation to support reimbursement claims. • Obtaining authorization from the required approver. • Submitting travel claims monthly to ensure accuracy in legislated reporting requirements. Employment Expense Reimbursement Policy 9 Authorizers Authorizers are responsible for: • Reading and understanding this policy, and ensuring expenses claimed comply with requirements of this policy. • Providing authorization for expenses. • Validating the employment expense was necessary to achieve desired results for legitimate business reasons and cost-effective methods were used. • Verifying the reason for the employment expense is adequately documented in the expense claim. • Confirming that an employment expense has not already been claimed. • Maintaining employment expenses with internal budgets. • Ensuring employment expenses are accurately completed,verifying correct coding, and that they are supported with appropriate documentation. Management • In addition to responsibilities outlined for individual claimants and authorizers, Management is responsible for: o Familiarizing themselves with this policy. o Communicating this policy to their employees. Finance Finance is responsible for: • Reviewing and processing submitted documents in a timely manner • Contacting authorizers and/or claimants if claims do not comply with the policy or if supporting documents are missing • Making necessary HST/GST calculations • Reconciling any travel advances with actual final expenses submitted as required • Correcting general ledger accounts for claimed expenses to facilitate appropriate monitoring and reporting of expenses as required • Reporting reimbursements for both quarterly and annual reports as required Employment Expense Reimbursement Policy 10