POLICY AND PROCEDURES FOR PAYMENT OF BUSINESS EXPENSE
CLAIMS (Inc TRAVEL AND SUBSISTENCE)
1. EXECUTIVE SUMMARY
The aim of this document is to ensure a consistent approach to
the reimbursement of costs necessarily incurred by employees
(including governors) of the University of Westminster, and to
ensure that the principles of transparency and disclosure are
upheld. It sets out what can, and can not, be reclaimed and
describes the expenses claim process in detail.
2. INTRODUCTION
As an organisation largely funded by public money, the
University has an obligation to ensure economic and effective use
of those funds. Furthermore, it aims to ensure appropriate levels
of authorisation are obtained in respect of reimbursed expenditure
which will satisfy the University (and any external entity) that it
has achieved value for money and that budgetary guidelines have not
been breached. At the same time, it is expected that employees will
be aware of the need to minimise the costs of travel and
subsistence to the University, but in a way consistent with its
mission.
Expenses should only be claimed for business travel expenses
which are incurred by the employee over and above their normal home
to office travelling expenses. This means that if the University
requires an employee to travel to somewhere other than their normal
place of work, or base, the University would expect to reimburse
them at the most economical available rate for the difference or
additional travel. This includes travelling to a different site for
meetings or other business purposes.
The University wishes to ensure that all employees travel in,
and are accommodated in, a safe manner.
Reimbursement of expenses should be claimed only for incidental
business expenditure; expense claims should not be used for general
purchasing other than in exceptional circumstances. A general rule
of thumb is that any purchase transaction that generates an invoice
(as opposed to a simple receipt) will probably be more
appropriately handled through Agresso as a requisition item. Goods
and services should be requisitioned through Agresso using the
current University purchasing procedures, which can be viewed at
http://www.wmin.ac.uk/page-1991
No individual may authorise reimbursement of his or her own
expenses
All expense claims should be authorised by the claimant's line
manager or, if different, the budget holder being charged with the
costs.
The source of funding (ie funds generated from research
activities or other income-generating initiatives) is immaterial -
any expenditure coded to the University of Westminster chart of
accounts is subject to the terms of this policy.
Purchase of any item which may be deemed to be a taxable benefit
must be notified to Payroll, and a tax receipt obtained.
Reimbursement will not be made for claims not supported by a valid
tax receipt.
This policy accords with guidelines disseminated by the HEFCE
Audit Service.
The University reserves the right to decline to reimburse
expenses claims in cases where the procedure has clearly been
abused.
3 WHAT CAN, AND CAN NOT, BE CLAIMED VIA THE EXPENSES
PROCEDURE
3.1 WHAT CAN BE CLAIMED
Bona fide travel and subsistence costs incurred in the course of
official University business and in accordance with the currently
published rates
Business expenses that cannot be paid through Agresso
Travel bookings, ie flights, hotels bookings, that genuinely
cannot be made via the University's designated travel management
company, Key Travel Ltd, or can be obtained more economically by an
alternative method (please note that you are required to direct the
booking to Key Travel in the first instance, and may only use an
alternative provider if it can be proven that a cheaper fare can be
obtained - the procurement unit may ask to see documentary evidence
in such circumstances)
3.2. WHAT CAN NOT BE CLAIMED
Items that would be more appropriately processed through Agresso
using existing suppliers
Electrical equipment - computers, computer accessories
Stationery and Computer consumables
Subscriptions (please note that personal subscriptions to
professional bodies cannot be reclaimed - see http://www.wmin.ac.uk/page-5808)
Payments to individuals for services rendered (this includes
payment by voucher or any other reward or incentive - there may be
tax implications in making such payments)
Items with a direct cash exchange value, ie foreign currency,
travellers cheques etc
Any punitive interest, fines or compensation charges incurred by
an individual
The above is intended to set out the general principles, is not
intended to be exhaustive, and may be revised, expanded or amended
from time to time, at the University's discretion.
4 CASH ADVANCES
4.1 The old cash advance system was withdrawn
in April 2007. Staff travelling overseas on University business
should consider the following alternatives:
Book costly expenditure (ie flights, hotel accommodation) in
advance through Key Travel, via Agresso
Pay routine expenses using cash or personal credit card and
reclaim via expenses
Apply for a purchasing card, if you are a regular traveller (for
details click on this link http://www.wmin.ac.uk/page-10098)
5 TRANSPARENCY AND DISCLOSURE
You should be aware that, as a (largely) publicly funded
organisation, the University is subject to scrutiny of its
expenditure streams and must promote financial transparency. Under
the Freedom of Information Act we are required to disclose details
of staff expenses payments. You are asked to bear this in mind when
making purchases that you intend to subsequently reclaim.
6 TRAVEL - UK
Employees will normally be fully reimbursed for the cost of
travel undertaken by train, tube
and bus, if this has been undertaken for business purposes. The
purpose of travel should be clearly stated on the claim.
Unless prior approval is given in writing by the primary or
secondary budget holder(s), only the cost of the standard class
rail fare (evidenced by a ticket or receipt) will be reimbursed by
the University. It should be noted that savings can usually be
achieved by booking rail journeys in advance (via the University's
designated travel agent).
Staff who already possess a travelcard covering journeys to and
from work will be expected to use that for business and inter-site
travel whenever possible.
6.1 "Home to office" travel
It is the employee's responsibility to get themselves from home
to their normal place of work and the University does not pay home
to office expenses; this would be a taxable benefit.
6.2 Travel Between University of Westminster
Sites
In cases where an employee is required to travel between sites
to carry out their duties, the University will reimburse the cost
of the most economical means of travel, including the cost of a
travelcard if this can be shown to be cheaper than buying
individual fares. The cost of travelling by taxi between sites will
not be reimbursed unless there are exceptional circumstances
justifying their use.
6.3 Use of Private Transport
The reimbursement of car expenses will be limited to the mileage
undertaken for business purposes at the mileage allowance rate
prevailing at the time the journey was made (see the HR intranet
site for prevailing rates, here: http://www.wmin.ac.uk/page-431).
The reclaimable amount for car and fare expenses will be based on
the lesser of the miles from the employee's place of work to their
business destination or their home address to their business
destination. Rates of mileage allowances are issued by the Human
Resources Department annually and cover the period 01 August to 31
July.
The use of a private car must be approved in writing in advance
of the business journey by either the primary or secondary budget
holder (or their line manager) and should only be allowed in
exceptional cases, e.g. transporting bulky goods, or the avoidance
of costs associated with an overnight stay.
Employees may prefer, however, to use a motor vehicle in
preference to other modes of transport, but in such instances they
will be restricted in reclaiming only the equivalent cost of the
most economical standard class fare from their place of work (ie
London or Harrow) to the business destination.
It is the responsibility of the employee to ensure that they
have adequate insurance in place to cover the use of a motor
vehicle for business purposes. Most motor policies provide cover
for private and home to office use, and can usually be extended at
little or no additional cost to provide cover for a limited amount
of business use).
Employees may also use domestic air travel to fly to business
destinations if it can be proven that this would be cheaper than
incurring the total cost of an overnight stay and standard class
train fare, or would result in substantial savings of the
individual's time. Budget holder approval must be given in writing
in advance of such a mode of UK travel.
6.4 Taxis
The University's sites are considered to be well served by both
bus and underground and, hence, the use of taxis will not be
reimbursed for journeys between each site unless exceptional
circumstances exist. Such circumstances should be entered on the
claim form when requesting reimbursement and authorised by the
primary or secondary budget holder.
Taxi fares are acceptable when employees require transport
between the railway station and their business destination, though
public transport should be used wherever this is feasible. Receipts
should be obtained wherever possible, as reimbursement will not
ordinarily be made without one.
As stated in the general principles, the safety of employees is
considered of paramount importance and occasions may arise when
employees have to travel late at night from London or Harrow to
their home. The University will reimburse the cost of the taxi fare
from the employee's nearest serviceable station to their home
address on such occasions.
7 TRAVEL - Overseas
The process for authorising staff travel overseas has recently
changed. Full details can be found at the dedicated
Staff
Travel Overseas intranet pages. Please ensure that you
check these pages before making any overseas travel bookings.
The University's travel policy is currently under review but the
old version may be found here:
http://www.wmin.ac.uk/docs/Travel%20policy%20(New%20-%20Jan06).doc
The following key points should be noted:
In order to enhance our reputation as a socially responsible
organisation staff should only travel when necessary and use the
means of transport which is most cost effective and, where
possible, has least impact on our carbon footprint . By default,
staff will be required to travel Economy class. Under no
circumstances will first class travel be permitted. Premium Economy
may be used but supplementary evidence must be provided and
approved by the relevant authorised signatory specifying the
reason.
Where a clear business case exists for the use of Business class
(whether funded directly by the University or indirectly through
external grants for specific University led projects),
this must be authorised in writing by the Director of
Finance and supported by a statement specifying the reason
for Business class travel. Authorisation must also be supported in
writing by the primary budget holder (or their line manager when
they are a claimant).
It is expected that most travel-related expenditure (hotel
accommodation, air fares etc) will be requisitioned through the
University's nominated travel agent, Key Travel / Ian
Allen via Agresso. In cases where this route has not been
followed (ie purchase by purchasing card etc) travellers will be
expected to explain the reasons, and to demonstrate that best value
has been achieved.
7.1 Travel Insurance
Employees are expected to use the University's travel insurance
cover, and claims for other individually arranged travel insurance
cover will not be reimbursed by the University. The University's
block travel insurance policy provides cover for staff while
travelling on official business. Details of the cover, and an
online booking form, may be found here: http://www.wmin.ac.uk/page-2005.
Travel to certain areas may be deemed unsafe. The University
(and its insurers) follow the advice of the Foreign and
Commonwealth Office. Country-specific travel advice is published on
the FCO website (www.fco.gov.uk). Failure to heed such
advice may invalidate your travel insurance cover. Seek advice from
the Procurement Unit if in doubt.
If a doctor has advised you not to travel, then you should be
aware that your travel insurance will probably be invalidated
should you decide to travel against that advice.
Employees should also seek advice, where applicable, in respect
of any inoculation treatment that is required.
The University will not reimburse costs incurred by spouses or
partners who accompany a travelling employee.
7.2 Alternatives to Travel
The University encourages employees to look at alternatives to
travel which save both money and the employee's own time and
energy, e.g. video conferencing.
8 SUBSISTENCE AND HOSPITALITY
'Subsistence' is defined as the cost of accommodation, meals and
incidental expenses incurred when a member of staff is working away
from their home or usual place of work.
'Hospitality' is defined as expenditure incurred in offering
meals and refreshments to external visitors to the University.
8.1 Catering
This policy is aimed at ensuring the University only uses public
funds to support a reasonable catering and hospitality provision
for both its employees and external visitors in pursuance of the
day to day core business of the institution.
8.2 Refreshments (ie Tea, Coffee, Biscuits and
Sandwiches)
These can be provided, at the discretion of the organiser, for
meetings likely to be in excess of two hours. These will be
provided by the University's contracted in-house caterer,
Chartwells, and should be ordered in advance, via Agresso.
8.3 Meals
In-house. These will only be provided in the form of "working
lunches" with a maximum allowable per person at the rate issued by
the Human Resources Department, on advice from UEB, on an annual
basis. Alcoholic beverages will not normally be allowable. The
service will be provided by Chartwells, and should be ordered in
advance, via Agresso.
In addition to the date, time and venue, details of the
participants and the reason for the working lunch must be clearly
shown on the Agresso catering requisition, which is automatically
forwarded to the caterers.
9 Hospitality and Entertainment
‘Entertainment’ is defined as follows: "the provision of certain
goods and services, free of charge to the recipient, designed to to
foster goodwill and enhance the business relationship between the
University and a customer, academic or business partner, or such
other third party as may be deemed appropriate"
provision of food and drink;
provision of accommodation (such as in hotels);
provision of theatre and concert tickets;
entry to sporting events and facilities;
use of University-owned assets such as meeting rooms, sports
facilities or vehicles for the purpose of entertaining.
Entertainment should, wherever possible, be carried out at the
University's own facilities, and requisitioned via Agresso.
Entertainment expenditure may only be an appropriate use of
University funds and avoid tax liability if it is incurred wholly,
necessarily and exclusively for University purposes. A schedule
must be included with the claim giving details of the organisation
being entertained (including the names of the individuals
concerned) and the purpose of the entertainment.
The authorisation and submission of a claim for entertaining is
a declaration that the cost was incurred wholly, necessarily and
exclusively for University purposes. Only on this basis can the
claim be paid in full without deduction of tax.
In authorising entertainment expenditure, budget holders are
also undertaking that, if in any case tax is subsequently levied,
any cost which is not recoverable from the individual beneficiaries
will fall on the budget concerned.
9.1 External Hospitality
The University will support meals wholly and exclusively in
pursuance of the business requirements of the institution. It is
expected that budget holders will use such restaurants so as to
minimise the outlay. The maximum amount per person which will be
reimbursed by the University will be at the rate issued by the
Human Resources Department, on advice from UEB, on an annual basis
(see the HR intranet site for prevailing rates, here: http://www.wmin.ac.uk/page-431)
All expenditure in excess of this amount must be borne by the
diners.
The University will reimburse a reasonable amount of expenditure
on alcohol consumed with the meal (a figure of £5 per head is
suggested).
Details of the names of the external participants and reasons
for the meal must be clearly set out when requesting a
reimbursement of expenditure, or the claim may not be
reimbursed.
9.2 Accommodation
The University will fully reimburse its employees for
expenditure incurred on accommodation in respect of journeys
undertaken on University business. Wherever possible, employees
must return on the day of their business activity, but when this is
deemed impractical due to the length of the journey or the need to
attend meetings, etc, they should book into an economical class of
hotel. This is defined as a three star hotel in the UK and the
equivalent class in overseas locations.
Employees must ensure the University achieves value for money by
either using the University's nominated travel agent (currently Key
Travel Ltd) or booking with hotels on the University's approved
list or those subject to special agreements as notified to Agresso
requisitioners from time to time.
The University will reimburse the cost of meals, which should be
in accordance with current subsistence rates, on production of
receipts.
In instances where employees have an over-riding requirement to
attend a certain hotel, ie conferences, events, etc., then the
booking must be placed with the organiser of the event, unless a
cheaper rate can be negotiated.
Any variances from the guidelines shown above must be approved
in advance of the booking by the primary budget holder (or their
line manager when they are the claimant).
10 EXTENSIONS TO BUSINESS TRIPS
Employees may extend their business trips, to a limited extent,
for non-business reasons (e.g. holidays, personal research). In
such cases, it is to be expected that the duration of the personal
part of the trip will not exceed that of the business part. The
University's travel insurance policy currently provides cover at no
additional cost for spouses and partners that accompany staff
travelling on business, however it is the policy of the University
not to meet any costs which are not wholly and necessarily
concerned with University business and consequently expenditure
incurred on behalf of spouses and partners will not be
reimbursed.
Employees must ensure that invoices clearly identify the
non-business element of their trip which will not be met by the
University. In instances where this split is not readily
ascertainable, a proportional split must be made between the
business and non-business element of the trip, with the University
only meeting the business part.
11 MOBILE PHONES AND PERSONAL COMMUNICATION DEVICES (ie
'Blackberries')
Please see the policy posted on the intranet, here:
http://www.wmin.ac.uk/page-2700
12 CHECKLIST
Employees should check the following to ensure they are meeting
the policy and procedures of the University.
Is the journey really necessary and is it wholly and exclusively
for business purposes?
Has prior approval been obtained in respect of the use of a car,
or where an employee requires to travel or be accommodated at a
cost, or class of travel, in excess of the maximum allowed by the
University?
Is it cheaper to travel before a planned meeting economy class
and stay at a hotel overnight than require business class travel to
be fresh on arrival for a meeting?
Have you ensured adequate insurance arrangements are in
place?
Have appropriate precautions been taken regarding any medical
provisions as recommended for the countries that are being visited,
ie inoculations?
Have you booked travel/accommodation through the nominated
agents of the University (Key Travel), or purchasing
schemes/organisations for which the University is a member, to
ensure value for money is being achieved?
If costs are incurred only partially on University business,
then the reclaim of expenditure reflects only the business
portion.
Has the most economical train fare been sought, ie material
savings can be achieved by booking 7 days in advance?
Hs the "non business" element of the trip been excluded when
submitting invoices for settlement?
Have alternatives to travel been considered, e.g. video
conferencing?
13 PROCEDURE FOR THE PAYMENT OF EXPENSE
CLAIMS
The objective of the procedures set out in this document is to
ensure employees are reimbursed for their approved expenditure on
business travel and subsistence within a reasonable time (defined
as a maximum of one month from the date of the submission of the
claim). It is necessary to ensure that guidelines in respect of the
authorisation of such expenditure have been strictly adhered to and
the University complies with statutory regulations in the reporting
of such expenditure, ie taxation rules.
Employees must fill in an Expense Claim Form in respect of
expenditure to be reimbursed with supporting documents attached to
substantiate expenditure where appropriate. No other form of claim
submission will be accepted.
Expense claim forms must be signed by either a secondary or
designated budget holder (or their line manager in respect of such
officials). A budget holder cannot authorise his or her own
expenses claim - their immediate line manager must do this (unless
they are also a participant, in which case a further level of
authorisation will be necessary).
All completed and approved expense claims in excess of £50 must
be submitted to the Payroll section in the Central Finance
Department, Copland Building, for consideration of tax -
reimbursement will be made directly to the individual's bank
account via the Accounts Payable function on Agresso
Expense claims below £50 in value can be reimbursed either by
cash at the two designated Cashiering outlets of the University (at
New Cavendish Street and Harrow) or being submitted to the Central
Finance Office for reimbursement by BACS. Instances where more than
one expense claim form of under £50 are submitted within a week by
the same employee will be rejected and sent to the Central Finance
Department for reimbursement via BACS.
Expense claims must be submitted promptly (ie within 10 working
days of the date expenditure was incurred). The University
undertakes to reimburse claimants within a maximum of one month,
preferably by the weekly BACS transfer. If under £50, expenses may
be paid in cash, if requested, however at the time of writing
(October 2009) this facility is under review and may be
withdrawn.
14 FURTHER GUIDANCE
The HMRC has published some useful guidance on Expenses,
Benefits and Employee Travel, on its website:
A-Z Guide on Expenses & Benefits
http://www.hmrc.gov.uk/paye/reporting-az.htm
Travel & Subsistence - when you can reclaim VAT
http://www.hmrc.gov.uk/vat/managing/reclaiming/travel-subs.htm
Andrew Rance
Procurement Manager
20t September 2009