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HomeMy WebLinkAboutFIN 030-002 Expense and Mileage Claim ReimbursementProcedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 1 of 11 Procedure Procedure Title: Expense and Mileage Claim Procedure Procedure Number FIN 030-002 Reference FIN 030 – Financial Control Policy Resolution #240/20 Date Originated (m/d/y) June 2009 Date Revised (m/d/y) June 6, 2011 February 24, 2020 May 01, 2026 Pages 14 Approval: Chief Administrative Officer Point of Contact Supervisor, Accounting Services Procedure Objective To provide procedures for the submission of mileage claims and expense reimbursements to Accounts Payable for processing and payment. Index 01 Definitions 02 Allowable Expenses for Reimbursement 03 Approval of Allowances and Expense Claims 04 Submission of Expense Claims Appendix 1 Mileage Reimbursement Claim Form Appendix 2 Expense Reimbursement Form Appendix 3 Missing Receipt Declaration Form 01 Definitions 01.01 Expense Reimbursement Claim Form – the City’s expense claim form is only to be used by employees to submit expense reimbursement claims manually when the employee does not have an SAP user ID. 01.02 Mileage Reimbursement Claim Form – the City’s mileage claim form is only to be used by employees to submit mileage Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 2 of 11 reimbursement claims manually when the employee does not have an SAP user ID. 01.03 Missing Receipt Declaration Form – the City’s missing receipt declaration form is only to be used by employees when an original receipt for a legitimate business expense cannot be obtained or has been lost. This declaration serves as a substitute record for reimbursement purposes after all reasonable efforts to retrieve the original receipt have been exhausted. 01.04 My Travel and Expenses – the SAP selection found under the grouping “My Reimbursement” used for employees to submit their expense and mileage reimbursement claims electronically. Any employee with an SAP user ID must submit their expense and mileage claims using the online SAP submission process. 02 Allowance Expenses for Reimbursement As a general principle, employees will be reimbursed for all reasonable expenses that are incurred, necessarily, and exclusively in the performance of City business. All claims shall demonstrate respect for taxpayer dollars and be justifiable to a reasonable and impartial observer. Supporting documentation should accompany each claim to ensure transparency and facilitate prompt processing. 02.01 Conferences, Conventions, Seminars and Courses: a) Directors may authorize funds for travel in Canada by departmental staff and within the limits of the approved current budget. b) A Director may approve funding of the total cost for an individual attending a conference, convention, or other similar event that is consistent with the mandate and policies of Council, subject to funds being available in the current budget. c) International conferences, conventions, or other similar events must adhere to the approval process found in the Financial Control Policy (FIN 030). 02.02 Transportation: a) Whenever possible, arrangements should be made to use a City vehicle for business travel. b) The mode of transportation chosen to attend the conference or convention is at the discretion of the individual. Air travellers should request the lowest available rate at the time of booking. c) Expense reimbursement claims for electronic airfare tickets should be Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 3 of 11 supported with the email notification and boarding pass as verification. d) If a person, as a matter of personal convenience, travels by a means other than air, the amount claimed for transportation costs cannot be greater than if the person had traveled by economy air. e) Reimbursement for the use of personally owned automobiles will be made at the rate that is approved by Council on an annual basis. The rate is calculated by the Treasurer and is effective as of the date indicated in the notification provided to all departments. f) When two or more staff travel together in a personally owned automobile, only one staff person will be allowed to claim reimbursement for the use of the vehicle. g) Actual expenditures for ground transportation to and from airport, train or bus station may be claimed. Receipts are to be provided. h) The use of rented vehicles for transportation from location to location may be authorized where, in the opinion of the Director, this method of travel is economical, practical and in the best interest of the Corporation. An explanation of why vehicle rental was necessary is to be provided in writing with the travel claim. 02.03 Accommodation, Meals, and Incidental Expenses: a) The purpose of this direction is to ensure that expenses are appropriate and strike a balance between economy, health and safety and efficiency of operations. b) Expenses for accommodation, meals, parking, and other incidentals, such as personal long-distance calls (one per day) will be reimbursed based on actual receipts submitted. c) Personal travel insurance and credit card service/late charges are not eligible expenses for reimbursement. d) Where a person leaves the day before an event outside the Greater Toronto Area or returns the morning following same, actual accommodation, meals and incidental expenses will be reimbursed at the discretion of the Director. e) If a person, as a matter of personal convenience, travels by a means other than by air, the amount claimed for accommodation, meals and incidentals cannot be greater than if the person had travelled by air using economy. f) When arranging accommodation, employees must prioritize personal safety. While location and cost remain key factors, the selection of hotels Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 4 of 11 should primarily ensure a safe and secure environment for the traveller. Employees are expected to choose accommodation in reputable areas and, where possible, opt for hotels with established safety standards and positive reviews. Once safety is assured within reason, employees should then consider proximity to work-related activities and seek the most economical rates available. g) The standard for meals is a restaurant in a business class hotel or other equivalent quality. Employees should refrain from exceeding this standard to ensure meal expenses remain appropriate and aligned with City guidelines. h) Tips provided for meals and services shall be calculated between 15% and nothing greater than 18% of the total bill. Any amount exceeding this limit will not be reimbursed and the employee should only claim within the procedure limits. This policy ensures consistency and fiscal responsibility in gratuity practices. i) The City will not reimburse any expenses incurred by staff for alcoholic beverages including those consumed with a meal. Employees are responsible for any alcohol-related expenses incurred during business activities. Please see section 04.02 for exceptions. 02.04 Mileage and Parking Expenses: a) The City of Pickering reimburses employees for expenses associated with the use of personal vehicles while conducting City business. Parking fines or traffic fines are not eligible expenses for reimbursement. b) Insurance coverage is a personal responsibility and employees operating personal vehicles are not covered under the City’s insurance policies. c) Nonetheless, employees should have insurance coverage of at least $2 million for both personal and third-party liability. d) Mileage paid is based on the actual distance travelled less the normal distance travelled to work. An employee travelling between home and a business engagement or workplace other than their regular workplace must deduct the distance between home and their regular workplace from the total distance travelled. Mileage is based on the lesser of from home or from normal workplace to destination. e) When an employee travels directly from home to a business engagement or location other than their regular workplace and chooses to use public transit instead of driving, the City will reimburse the actual transit fare required to attend the business event. Normal commuting deduction does not apply to public transit fares in these situations, as public transit is often the more economical and sustainable option. Reimbursement for transit Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 5 of 11 shall not exceed the reasonable equivalent cost of driving and parking from the regular workplace to the business destination, ensuring cost effectiveness while supporting the City’s sustainability objectives. f) Travel to and from regularly scheduled and/or overtime work at the employee’s regular workplace, or to courses which are not required by the City and which are taken on the employee’s own time, are considered personal use of the vehicle, and therefore not compensated. g) The rates of reimbursement are reviewed annually by the Treasurer and are approved by Council. 02.05 Professional Association Fees: a) Employees may be reimbursed for payment of professional association fees. The City of Pickering recognizes three types of professional fees: i. obligatory fees are those paid to a governing body, which allows the individual to perform the required duties in Ontario or Canada. Examples are fees paid to a legal or medical society; ii. professional fees are those paid to an accrediting body, which requires current membership to retain a recognized professional designation. Examples are fees paid for accounting or engineering designations; and, iii. optional association fees are paid to organizations or associations, which benefits the employees and the Corporation, through membership. b) Obligatory and professional fees, as identified by Director, are fully reimbursable. Reimbursement of optional association fees is at the Director’s discretion and subject to inclusion in the annual current budget for approval. c) The City of Pickering advises employees to use the PCard or provide an invoice, when possible, for professional fees to be paid directly through the Accounts Payable process. d) The City reserves the right to recover a prorated portion of any professional fees if the employee resigns before the end of the period covered by the payment. The prorated repayment will be calculated based on the remaining months in the membership year at the time of resignation. Employees who retire with a minimum of ten (10) years of service are exempt from repayment and will not be required to reimburse any portion of the professional fees paid for that year. Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 6 of 11 02.06 Tuition and Registration Fees: a) Employees may be eligible for reimbursement for tuition or registration fees when they enroll in either job-related courses, or courses, which are a requirement of a formal program of study leading to a degree, diploma, certificate, or professional designation. b) This section is to be read in conjunction with Human Resources Training & Development Education Assistance Policy. c) All permanent, salaried, and hourly, union, and non-union employees may be eligible for tuition and/or the course reimbursement. New employees must complete their probationary period; however, the Supervisor may waive this requirement if the completion of the course is an immediate priority. d) Reimbursement under this program is limited to tuition or registration fees, and any examination fees. Costs of books and materials, late registration, graduation, or lab fees are the responsibility of the employee and are not reimbursable. e) Reimbursement is made on successful completion of the course. The original invoice or receipt for the fees paid and a copy of the grade report must be submitted with a request for reimbursement. f) Approval, before enrolment, from both the employee’s Supervisor and the Director or designate are required to ensure that the program of study is eligible for reimbursement. Approval of the initial course does not automatically guarantee approval of subsequent courses. Each course must be approved to ensure funding is available, and that the study program still meets the needs of the employee’s overall development plan. g) The Supervisor and the Director may approve prepayment of up to fifty per cent of fees only when extenuating circumstances exist. Proof of course registration must be provided before prepayment can be made. h) Overtime/lieu time will not be paid to employees taking courses outside the normal working day. 03 Approval of Allowances and Expense Claims 03.01 A Director or individual with delegated signing authority shall authorize all allowances and expense claims of their respective employees. 03.02 The individual approving an employee’s mileage and/or expenses for reimbursement, is responsible for determining whether the expenses are reasonable in the circumstances, adequately supported and are charged against the correct accounts in the City’s general ledger. Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 7 of 11 03.03 Individuals who have delegated signing authority to approve an expense claim on behalf of the Director shall not sign for their own expense. 03.04 Travel expenses that are claimed by Directors shall be authorized by the Chief Administrative Officer, and those by the Chief Administrative Officer, Mayor and Councillors shall be authorized by the City Clerk. 03.05 The electronic submission through SAP workflow requires the signing authority to review and approve the employee’s Travel & Expense claim. The employee’s submission is sent to the signing authority’s My Inbox for authorization. 03.06 Paper submissions are to be signed by the authorized signing authority and delivered to finance. 04 Submission of Expense Claims 04.01 Mileage and Parking Expenses: a) To make a claim for mileage and parking expenses, an employee completes the process in SAP through the My Travel and Expenses selection, found under the My Reimbursements grouping (see the SAP Travel & Expense guide found on the City of Pickering intranet). Alternatively for employees without an SAP user ID, to make a claim for mileage and parking expenses, a Mileage Reimbursement Claim Form (see Appendix 1). b) Claims should indicate the point of departure, destination and any intermediate points, kilometers travelled, and the reason for the trip. Employees who are required to travel all day as part of their jobs need only report total distances each day. c) The “Purpose of Trip” should always be completed by identifying which conferences, seminars, meetings, etc., staff attended during the period. Acronyms should be spelled out for clarity. For travels made to purchase program supplies and materials, the corresponding program for which the supplies are to be used should likewise be identified. d) Destination “to” and “from” and any intermediate points should be clearly and completely noted avoiding the use of acronyms and other forms of shortcuts. For staff using “MapQuest” or other online direction finders as reference for distance travelled, make sure to use kilometres as the unit of measure. e) Per Revenue Canada’s guidelines, mileage between work and home is not eligible for reimbursement. Therefore, mileage claims should always be the shorter between your point of origin and destination or place of work and destination. Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 8 of 11 f) Other travel-related expenses incurred, such as transit fares and parking fees, should be input as additional expenses in the claim being submitted through SAP under the My Travel and Expenses selection. Alternatively, other travel related expenses incurred can also be indicated on the “Other Travel” column in the Mileage Reimbursement Claim Form with the corresponding receipts attached upon submission. Also, note that copies of daily travel logs are acceptable backups for regular mileage claims. g) For travel between City facilities and the Civic Complex, the following standard one-way distances should now be used for claiming mileage: i. 0.4 km – Chestnut Hill Developments Recreation Complex ii. 5.0 km – Operations Centre – Clements Road iii. 4.1 km – Don Beer Arena iv. 3.7 km – Dunbarton Pool v. 1.8 km – East Shore Community Centre vi. 13.0 km – Greenwood Community Centre vii. 2.7 km – West Shore Community Centre viii. 12.7 km – Greenwood Museum ix. 12.7 km – Dorsay Community & Heritage Centre x. 5.4 km - Fire Hall #1 (HQ): 1700 Zents Dr xi. 5.0 km – Fire Hall #2: 553 Kingston Rd xii. 16.3 km – Fire Hall #4/Dr. Nelson F. Tomlinson Community Centre and Library: 4941 Old Brock Rd xiii. 3.0 km – Fire Hall #5: 1616 Bayly St xiv. 2.3 km – Fire Hall #6: 1115 Finch Ave xv. 4.7 km – George Ashe Library & Community Centre xvi. 10.7 km – Animal Shelter (Services) xvii. 2.1 km – 1101 Kingston Road (Satellite Office) xviii. 4.2 km – 2460 Brock Road (Seaton Office) Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 9 of 11 h) Employees identify the correct cost assignment to charge, enter date(s), purpose/comment, and applicable attachments prior to submitting for approval. The automated workflow will be routed through SAP and sent to the employee’s immediate Supervisor for their review and approval prior to being sent to Accounts Payable for processing. i) If the Mileage Reimbursement Claim Form is used, employees are to identify the appropriate general ledger accounts to charge, include date(s) and their signature. Other staff/Supervisors must not sign on behalf of the employee. The employee forwards their Mileage Claim Form with attached receipts to their immediate Supervisor with signing authority for approval. Once approved, the employee’s immediate Supervisor forwards the Mileage Claim Form to Accounts Payable in the Finance Department for processing. j) Mileage Reimbursements are required to be submitted, at a minimum, monthly. 04.02 Expense Reimbursement: a) To make a claim for expense reimbursement, an employee must complete the process in SAP through the “My Travel and Expenses” selection, found under the “My Reimbursements” grouping (see the SAP Travel & Expense guide found on the City of Pickering intranet). In SAP, the employee creates a new expense report, enters the applicable From and To dates, specifies the Destination, enter details for the Purpose/Comments and add the Cost Assignment. Each expense related to the claim is added using the + Add Expense option, and ensure supporting receipts are attached. b) Alternatively, employees without an SAP user ID may complete an Expense Reimbursement Form (see Appendix 2) to itemize expenses and amounts incurred. Ensure to include a clear description for the “Type of Expense” column as to why an expense is being claimed. c) If expenses are incurred while attending an event, identify the name of the event itself. Acronyms should be spelled out for clarity. d) Common types of expenses, such as meals, hotels, materials and supplies, should include the name of the meeting, conference, seminars, workshops, etc., where the expense was incurred. e) The City will not reimburse any expenses incurred by staff for alcoholic beverages including those consumed with a meal. Any exceptions, for example for events and meetings deemed of a corporate nature, will only be considered with the approval of the appropriate Director/Treasurer Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 10 of 11 and/or the Chief Administrative Officer. f) When entering expenses in SAP, please ensure the correct tax code is selected. Reference material for tax coding is available on the intranet through Resource>SAP>Tutorials>Finance>Tax Code Assignment coding for PCard, T&E and Invoicing (includes Appendix A&B). Incorrect tax code allocations will be rejected, and the reimbursement process will be required to restart. For the Expense Reimbursement Form, taxes paid on the expense should always be reported in the respective column found on the form. In rare instances where only the total amount is shown on the receipt, use the formula 13/113 x total amount, to get the HST. Note that this formula changes with the applicable HST at the time. For instances when a meal with a tip is expensed, ensure the detailed receipt is included to identify the HST. g) All expense reimbursement claims must have actual detailed receipts attached to support the amounts being claimed. Indicate in the comment field in SAP, or, if using the form on the back of the receipts the purpose and any other persons attending. h) If the expense was paid with a debit or credit card, both the detailed receipt and the credit or debit card receipt (as proof of payment) should be provided, where possible. Debit or credit card receipts alone are not sufficient as they do not provide adequate details of the expenses claimed or applicable taxes. i) Receipts provided by establishments which are on thermal paper should be photocopied with the original stapled to it upon submission. j) Prints on these types of receipts fade over time resulting in a significant loss of information. Although the effect would be the use of more paper, the proper maintenance of financial records for audit purposes is more important. When submitting a thermal receipt as an attachment in SAP, the image or scan will be sufficient and additional printed copies are not necessary. k) When purchasing items over the Internet, telephone or fax, ensure that proof of payment, such as an order confirmation form or an invoice indicating that payment was received, is attached to the applicable expense in SAP or provided with the Expense Reimbursement Form for the expense(s) to be reimbursed. l) In those rare cases where a receipt was lost or not provided, a Missing Receipt Declaration form (Appendix 3) should be completed and attached for the applicable item in SAP or for the applicable line item on the Expense Reimbursement Form. The employee’s Director or Division Head must also sign off on this form for the expense to be reimbursed. Procedure Title: Expense and Mileage Claim Reimbursement Procedure Number: FIN 030-002 Page 11 of 11 m) Under normal circumstances, Expense Reimbursements (submitted through SAP or the Form) are required to be completed within ten (10) business days of the employee returning from the convention, conference, seminar, or course. For other types of expenses incurred, the forms are required to be submitted by the end of the month. n) In SAP, employees must review and save their report before submitting it to their Supervisor for approval. The Supervisor reviews the submission electronically. For the form, the employee dates and signs the form to certify that the expenses were incurred for business purposes. Other staff/Supervisors must not sign on behalf of the employee. o) Claims submitted via SAP will automatically be routed to the employee’s Supervisor whereas for the Expense Reimbursement Form and supporting receipts to their immediate Supervisor with signing authority for approval. p) Once approved, SAP will automatically route it to Accounts Payable whereas for the Form the employee’s immediate Supervisor forwards the Expense Reimbursement Form to Accounts Payable for processing. q) For expenses incurred in a currency other than Canadian dollars, reimbursement will be at the exchange rate incurred on the credit card statement or if not available, the exchange rate in effect on the City’s US bank account for the month when the expenses incurred. Appendices Appendix 1 Mileage Reimbursement Claim Form Appendix 2 Expense Reimbursement Form Appendix 3 Missing Receipt Declaration Appendix 1 Mileage Reimbursement Claim This form should be completed when submitting for mileage reimbursements. All receipts must be attached to this report upon submission. Employee Name Employee Number Date Mayor/Councilors Department Division Section Date Purpose of Trip Destination Kilometers Travelled Other Travel Transit, GO Parking, etc. Accounting Use Only Ext. Add. Checked By Current Kilometers Previous Kilometers YTD Kilometers Total Other Travel (attach receipts) Kms (up to 5000 km.) @ 72 cts. Per km. Kms (over 5000 km.) @ 66 cts. Per km. Total Claim Signed I certify that the expenses listed were incurred by me on business for the City of Pickering. Date Department Approval Acct Distribution G/L # HST Appendix 2 Expense Reimbursement This form should be completed when submitting for expense reimbursements. All receipts must be attached to this report upon submission. If submitting mileage, please attach a Mileage Reimbursement Claim Form. Employee First and Last Name Reference EXP Department Date (m/d/y) Page of Date (m/d/y) Description of Expense G/L Account Net HST Total Total Total Amount Due I certify that the expenses listed were incurred by me on business for the City of Pickering. Signature Date Department Approval For Finance Use Only Ext. & Add. Ckd. By Finance Review CSV 0201-05/00 Revised 16/07/26 Alternate formats available upon request at 905.683.7575. Appendix 3 Missing Receipt Declaration If all measures to obtain the required missing receipt have been exhausted, this Missing Receipt Declaration form must be completed by the employee who incurred the expense and is seeking reimbursement from the City of Pickering. This form is to be used only for an allowable, reimbursable expense (in accordance with FIN 030 Financial Control Policy and FIN 030-002 Expense and Mileage Claim Procedure). The form must be signed by the employee, the employee’s supervisor, and the employee’s Director and submitted in place of the lost receipt. Employee Name Employee Number Expense Report/PO # Date I am missing a receipt/documentation for (description of expense/purchase): I incurred this expense at: Vendor Name: On this date: For this amount: The receipt/documentation was (check one):  Lost  Never Received  Damaged Beyond Use  Other  If “Other” provide explanation: _____________________________________________________________ The form of payment I used was (check one):  Cash  P-Card  Personal Credit / Debit Card  Other  If “Other” provide explanation: ______________________________________________________________ Employee Certification: I acknowledge that a Missing Receipt Declaration may not be used on a routine basis and that excessive use may result in revoking the privilege of providing a Declaration in lieu of a receipt. I certify that the information provided above is accurate, that I have not and will not submit a duplicate claim, and that I have not and will not seek reimbursement for this expense from any other source. I understand that intentional misrepresentation of any information on this form may result in disciplinary action, up to and including termination of employment. Employee Signature Date Supervisor Signature Date Director Signature Date