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Employees - University of Cumbria home page

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Employees - University of Cumbria home page

    EMPLOYEES TRAVEL AND BENEFITS

    POLICY AND PROCEDURES

    August 2007

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    EMPLOYEES TRAVEL AND BENEFITS

    POLICY AND PROCEDURES

    CONTENTS

    TERMINOLOGY ............................................................................................................. 4

    INTRODUCTION ............................................................................................................ 5

    EXPENSE REIMBURSEMENT PROCEDURE ........................................................................ 6 Policy and General Claims Procedure .................................................................... 6 Expenses ........................................................................................................... 6 Authorisation of Expense Claims .......................................................................... 7 Petty Cash Claims ............................................................................................... 7 VAT ................................................................................................................... 7 Advances ........................................................................................................... 7 Timescale .......................................................................................................... 8

    TRAVEL AND SUBSISTENCE EXPENSES REIMBURSED BY THE UNIVERSITY ....................... 8 Travel Expenses ................................................................................................. 8 Authorisation ...................................................................................................... 8 Executive Team ...................... Error! Bookmark not defined. Travel by Vehicle ................................................................................................ 8 Calculating Mileage ............................................................................................. 9 Employees‟ Personal Vehicle Insurance:................................................................ 9 Rates of mileage claim ...................................................................................... 10 University Cars ................................................................................................. 10 Fixed Penalty Notices and Other Fines ................................................................ 10 Rail Fares ......................................................................................................... 10 Railcards .......................................................................................................... 10 Air Fares .......................................................................................................... 11 Subsistence ...................................................................................................... 11 Hotel Accommodation ....................................................................................... 12 Directors .......................................................................................................... 12 External Examiners and Advisers ........................................................................ 12

    STAFF BENEFITS ......................................................................................................... 12 Courses and Conferences .................................................................................. 12 Faculty/ Services Training Days or similar events ................................................. 12 In-house training Courses ................................................................................. 13 External Training Courses .................................................................................. 13 Hospitality and Entertainment ............................................................................ 13 Publications (Books/Journals) ............................................................................ 14 Uniforms .......................................................................................................... 14 Professional Subscriptions ................................................................................. 14 Home Telephone Costs and Home Access to Internet ......................................... 14 Mobile Telephones ............................................................................................ 15 Personal Digital Assistant (PDA) ......................................................................... 15 Vans ................................................................................................................ 15 Car Parking ...................................................................................................... 15

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    Insurance - Business Travel ............................................................................... 15

    Equipment Used Outside the University's Premises .............................................. 15

    Relocation Expenses ......................................................................................... 16

    Accommodation Provided as part of a Contract of Employment ............................. 16

    Child Care Vouchers .......................................................................................... 16

    Staff Use of the University‟s Sports Facilities ....................................................... 16 APPENDIX 1: FINANCE AND ENTERPRISE CONTACTS (AWAITED) .................................. 17 APPENDIX 2: DEFINITION OF UNIVERSITY BUSINESS TRAVEL ...................................... 18 APPENDIX 3: VEHICLE REQUEST FORM ........................................................................ 1 APPENDIX 4: UNIVERSITY VEHICLES AND HIRE CARS (AWAITED) ................................... 2 APPENDIX 5: APPROVED TRAVEL AGENTS (AWAITED) .................................................... 3 APPENDIX 6: APPROVED MILEAGE RATES ...................................................................... 4 APPENDIX 7: APPROVED SUBSISTENCE RATES .............................................................. 5 APPENDIX 8: CHARITY LINE (AWAITED) ........................................................................ 7 APPENDIX 9: UNIFORMS .............................................................................................. 8 APPENDIX 10: EMPLOYEE TRAVEL & SUBSISTENCE CLAIM FORM (AWAITED) .................. 9 APPENDIX 11: MILEAGE BETWEEN SITES .................................................................... 10 APPENDIX 12: DRIVE AND VEHICLE INSURANCE FORM (AWAITED) ............................. 102

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TERMINOLOGY

1. The University

    The term University relates to the University of Cumbria and its subsidiary companies

2. The University Board

    The University Board is collectively the group of individuals ultimately responsible for the

    financial, legal and all other affairs of the University.

3. Director

    A Director is an individual member of the University Board or the Board of Directors of the

    University Subsidiary companies. The Directors must manage the University or Company‟s

    affairs in accordance with its articles of association and the law.

4. Vice-Chancellor

    The person with the ultimate executive responsibility for the organisation, direction and

    management of the University. The Vice-Chancellor is the Designated Officer as identified

    by HEFCE and documented within the Financial Memorandum.

5. Director of Resources, Finance & Enterprise

    The senior administration officer, reporting directly to the Vice-Chancellor for funding,

    business planning and project management, corporate finance and enterprise within the

    University.

6. University Secretary

    The senior administration officer, reporting directly to the Vice-Chancellor with

    responsibility for governance and legal issues, Human Resources, strategic planning and

    secretariat within the University.

7. Budget Holder

    Budget Holder is the generic term for a person who has devolved responsibility for a

    specific budget.

8. Tax Year

    The Tax Year is an accounting period which commences 6 April and ends 5 April of the

    following year.

9. Head of Projects Accounting

    A financial officer of the University, reporting directly to the Director of Resources, Finance

    and Enterprise and is responsible for specific aspects of the University‟s finance including

    compliance, taxation and insurance.

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10. Financial Controller

    A financial officer of the University, reporting directly to the Director of Resources, Finance

    and Enterprise and is responsible for specific aspects of the University‟s finance including

    the payment of staff expenses

11. HM Revenue And Customs (HMRC)

    HMRC is the Government department responsible for collecting tax revenue, ensuring the

    correct tax is paid and paying Tax Credits and Child Benefit.

INTRODUCTION

Budget holders cannot delegate the authorisation of expenditure on staff travel

    and benefits or the authorisation relating to staff travel & benefits.

This policy has been drawn up for the following reasons:

(a) To rationalise the University‟s travel and expenses allowances and procedures.

    (b) To provide guidance to Budget Holders and all staff required to travel on University

    business.

    (c) To inform University staff of PAYE dispensations agreed with the Inland Revenue.

    (d) Within this policy the following words are used in these ways:

    - “must” and “will” denotes mandatory requirements.

    - “should” denotes our view of good practice.

    - “may” indicates ideas worthy of consideration.

The policy is part of the financial procedures.

The information and instructions contained in this policy apply to all employees of the

    University and its subsidiaries and compliance with both the letter and spirit of the policy is

    mandatory. These procedural instructions do not apply to self-employed persons or non-

    University employees seeking reimbursement. The policy is consistent with Income Tax and

    National Insurance Contributions (NIC) regulations and has been prepared in consultation

    with the University‟s tax advisers to meet Inland Revenue requirements and to comply with

    tax legislation.

In the event that an expense claim is contemplated in respect of any item not included in this

    policy, or an employee has a query relating to the payment of expenses under this policy, the

    matter must be referred in the first instance to their authorised signatory who may thereafter

    need to refer to Finance and Enterprise (see APPENDIX 1: FINANCE AND ENTERPRISE

    CONTACTS) for guidance. All contact with HMRC will be conducted via the Head of Projects Accounting.

Under no circumstances should any employee approach the Inland Revenue

    directly regarding the University’s policy & procedures. Any independent approach could compromise those dispensations already agreed with the Inland Revenue.

    This instruction does not, in any way, restrict any employee from approaching the

    Inland Revenue regarding their personal tax affairs.

At the end of each tax year, the University will prepare a P11D or P9D statement in respect of

    each employee who has received taxable expenses or benefits not covered by a University

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dispensation, giving details of all such payments made in that year. A copy of this statement

    will be issued to each employee for their agreement, and to assist in the completion of the

    Self-Assessment Annual Tax Return. The P11D or P9D statement will then be made to the

    Inland Revenue by the University in order that the Inspector of Taxes may collect any tax due

    from the employee.

During the lifetime of this policy amendments may be required as a result of:

? legislation

    ? requirements of HEFCE, TDA, LSC and other agencies funding the University

    ? the operational, administrative and financial needs of the University.

Members of staff are advised that any alleged breaches of this policy may be investigated

    under the Disciplinary Procedure.

EXPENSE REIMBURSEMENT PROCEDURE

Policy and General Claims Procedure

It is the policy of the University that employees are reimbursed expenses incurred wholly,

    exclusively and necessarily in the performance of the duties of their employment. Employees

    are expected to minimise costs without compromising overall effectiveness.

    Reimbursement will be made only on

    ? completion of the correct form

    ? production of receipts or invoices, unless the claim is in relation to

    subsistence allowances or there are exceptional circumstances

    ? approval by the budget holder.

Members of the Executive Team must have their expense claims authorised by the Vice

    Chancellor or his/her nominee. The Vice Chancellor‟s expense claims will be authorised by the

    Chairman of Directors or Director of Resources, Finance & Enterprise.

Expenses

Expenses incurred on behalf of the University are to be recorded in detail on Employee Travel

    & Benefits Claim Form (see APPENDIX 10: EMPLOYEE TRAVEL & SUBSISTENCE CLAIM

    FORM). Claims without receipts will only be accepted in exceptional circumstances. The

    Employee Travel & Benefits Claim Form must be used only for University-approved business

    travel and subsistence expenses. Goods and services must be ordered using a University

    Purchase Order or Purchasing Card.

Where expenses are incurred in foreign currencies, the amounts so incurred must be shown in

    the currency in question. However, reimbursement will be made in ? Sterling. The rate of

    exchange to be used will be the rate in force on the date of the transaction settlement.

The declaration on Employee Travel & Benefits Claim Form (Appendix 10) must be signed by

    the claimant and the form must be authorised under the procedures described below under

    “Authorisation of Expense Claims”. Correct and authorised completed forms, together with all

    supporting documentation (receipts, etc.), must be received by the fifteenth of the month to

    ensure reimbursement with the following month's salary. The supporting documentation will

    be retained centrally for six years.

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Any incomplete or incorrect claim will not be processed but returned to the authorising

    signatory with an explanation as to why it cannot be processed. This may lead to a delay in

    payment. The claim must be corrected and then returned to Payroll for processing.

Authorisation of Expense Claims

Expense claims must be approved by the Budget Holder and coded accordingly. When the

    Budget Holder is the claimant the expenses claim must be approved by his/her line manager.

    The claimant and the Budget Holder must initial any amendments. Correction fluid e.g.

    “Tippex/Snopake” must not be used on expense forms. Under no circumstances will claims

    self-authorised by any staff be paid. Claims must not be authorised by an employee who is a

    close relative - alternative authorisation must be obtained. For these purposes a “close

    relative” is defined as an immediate member of the family i.e. spouse, (including someone

    living with another as their husband or wife), child or parent. Also claims must not be

    authorised by a person who is managed directly or indirectly by the claimant.

Authorised claims must not be returned to the claimant prior to payment.

Petty Cash Claims

Petty Cash Vouchers should only be used for small items of Departmental and Service

    expenditure (not individual's expenses). The maximum amount that should be claimed in

    respect of any single transaction through the petty cash system is ?20. Any item claimed on

    a Petty Cash Voucher must be fully described; claims without receipts will only be accepted in

    exceptional circumstances.

VAT

Employees are reminded of the particular importance of accurately recording VAT on expense

    forms and the provision of VAT invoices with claims, to ensure that the University recovers

    the full amount of VAT to which it is entitled.

Advances

In exceptional circumstances advances may be approved. Advances may be provided after

    appropriate approval by the Budget Holder and the Financial Controller.

Advances against expenses may be claimed subject to the following conditions:-

    (a) Amounts advanced will be limited to the amount of anticipated cash expenditure and

    must be authorised in accordance with the authorisation procedures described above.

    Whenever possible hotel and travel tickets should be pre-booked using the official

    University approved travel agency. Please see APPENDIX 5: APPROVED TRAVEL

    AGENTS for further details.

    (b) An advance will be limited to a maximum of ?1,000 per individual and must be cleared

    by submission of expense claims on Employee Travel & Benefits Claim Form (Appendix

    10) as soon as possible, and in any event not later than two weeks after the date of

    return to the University. No further advances will be made whilst an advance is

    outstanding. The University reserves the right to recover any uncleared advances from

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    any monies owed to the employee. Independent records of advances are kept within

    Finance and Enterprise.

    (c) Advances may be made in foreign currencies where the employee is undertaking an

    International business trip. Application must be made to Finance and Enterprise. The

    amount of a foreign currency advance will not exceed the Sterling equivalent as above

    and all of the remaining conditions above will apply.

Timescale

Claims should normally be made within two months of the expenses being incurred. Claims for

    expenses which are over two months old will be referred to the Financial Controller for consideration.

TRAVEL AND SUBSISTENCE EXPENSES REIMBURSED BY THE

    UNIVERSITY

Travel Expenses

Except as otherwise provided below, employees should claim only the costs of necessary

    University business travel. Business travel is defined in APPENDIX 2: DEFINITION OF

    UNIVERSITY BUSINESS TRAVEL. Wherever possible, employees should arrange rail travel

    through Charity Line, see appendix 8 or the approved travel agents, see appendix 5.

An air journey must be arranged though the approved travel agent or via the Purchasing

    Office. See Appendix 5 for further details.

Authorisation

It is important that Budget Holders are aware of planned travel in advance as this will be a

    charge against their budget and they should judge if a journey is essential.

Travel by Vehicle

Prior to any employee undertaking any business travel as the driver of a vehicle they must

    complete the University‟s Driver and Vehicle Insurance Form, see appendix 12. All staff driving

    a vehicle on University business must possess a full, valid driving licence for that vehicle at

    the time of travel.

All employees will be encouraged to car share when travelling by vehicle on University

    business.

Where a journey is authorised:

Journeys of less than 40 miles

A member of staff may use his/her own vehicle and claim the higher mileage rate only where

    the mileage is not greater than 40 miles. Where the return or round journey is not greater

    than 40 miles, the member of staff may apply for a vehicle from the University (see Appendix

    3

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).

Journeys of greater than 40 miles

    Where the return or round journey is greater than 40 miles, the member of staff should apply for a vehicle from the University; see appendix 3. If no University vehicle is available the higher mileage rate can be claimed.

    If the member of staff does not apply for a University car and the mileage claim is greater than 40 miles then the lower rate must be claimed.

    University conditions relating to the use of own vehicles must be adhered to. A University pool vehicle or hire vehicle may be provided.

Calculating Mileage

    Where the journey begins at the staff member‟s home and ends at his normal base, the normal home to base mileage must first be deducted and if the mileage claim is not greater than 40 miles again the higher mileage rate can be claimed.

    This is also the case where a member of staff does a journey from normal base and ends his journey at home then the normal base to home mileage must be deducted e.g.

     Base Destination Home Base Home

     Total mileage less Home to base mileage

    Travel from home to any permanent workplace is not claimable. Employees may have more than one permanent workplace due to their contract or nature of their work pattern. Please contact the Head of Projects Accounting if clarification is required.

Employees Personal Vehicle Insurance:

    Should it be necessary for a University employee to use their own vehicle on ANY UNIVERSITY BUSINESS WHATSOEVER, their personal vehicle insurance MUST

    provide adequate cover and must comply with the requirements of the current Road Traffic Act(s). Their private motor policy must include a section which provides cover whilst they are driving their own vehicle on business journeys in connection with their employment. This type of cover is usually listed in the 'Limitations as to use' section of the Motor Insurance Certificate. Travelling to or from the normal place of work, or commuting, IS NOT business travel.

    If travelling from the normal place of work, i.e. the base site, or home, to any other place of work, e.g. a school or other campus, this is classed as business use and drivers must be insured accordingly. This type of cover should be checked at each insurance renewal date and/or change of insurer.

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    The responsibility for ensuring that the correct type of cover is used rests entirely with the employee. If in any doubt about having adequate cover, please check with your insurance provider.

    The University will not accept liability for damage to or loss of an employee's vehicle or any part thereof.

Rates of mileage claim

The rates will be as per APPENDIX 6: APPROVED MILEAGE RATES.

University Cars

    Analysis Codes will be charged per mile for the use of University cars and hire cars - See APPENDIX 4: UNIVERSITY VEHICLES AND HIRE CARS.

    Full details of each journey, including date, reason for journey, starting points and destinations. Analysis Codes to be charged must be completed by the driver in the vehicle logbook.

Fixed Penalty Notices and Other Fines

    The payment of any of fixed penalty notices or other fines and charges is the responsibility of the driver and reimbursement by the University cannot be made.

    If any alleged offence is incurred whilst using a pool car the University will, as required by law, provide the name of the driver to the police on request.

Rail Fares

    Tickets should be arranged through the Charity Line or the approved travel agent - see Appendices 8 and 5.

    University staff will normally travel second class (with seat reservations where required) and are expected to investigate the possibility that day return tickets or “savers” may be available at lower cost.

In exceptional circumstances, staff may travel first class provided either

? prior approval is granted which must be given by the Budget Holder

    or

    ? travel costs actually incurred are recovered specifically from a third party

    Details of any rail costs for which reimbursement is sought, should be entered on Employee Travel & Benefits Claim Form (Appendix 10) and receipt attached, as for other public transport expenses.

Railcards

    The University does not normally reimburse the cost of Railcards (Young Persons, Senior Citizens, Family, etc.). However, staff members are encouraged to take advantage of the

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