BUSINESS EXPENSE CLAIMS (inc TRAVEL AND SUBSISTENCE)
1
EXECUTIVE SUMMARY
1.1
The aim of this document is to provide further guidance to supplement section
D9 and 10 of the Financial Procedures. The guidance outlines the
University’s approach to the reimbursement of costs necessarily incurred by
employees (including governors) to ensure that the principles of transparency
and disclosure are upheld. It sets out what can, and cannot, be reclaimed
and describes the expenses claim process in more detail. The Bribery Act
2011 may also be relevant in relation to this guidance, particularly with regard
to hospitality and entertaining. Employees should be aware that the making or
offering of a bribe or requesting, receiving or accepting a bribe are offences
under the Act. Separate guidance on the implications of the Bribery Act will
be available.
2
INTRODUCTION
2.1
As an organisation partially 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.
2.2
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 additional travel. This includes travelling to a different site for
meetings or other business purposes.
2.3
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 Oracle as a requisition item. Goods and services should be
requisitioned through Oracle using the current University purchasing
procedures.
2.4
No individual may authorise reimbursement of his or her own expenses
2.5
All expense claims must be signed by an authorised signatory within the
School/Directorate Approval Hierarchy.
2.6
The source of funding (i.e. funds generated from research activities or other
income generating initiatives) is immaterial - any expenditure coded to the
Cardiff University chart of accounts is subject to the terms of this policy.
2.7
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. The University reserves
the right to decline to reimburse expenses claims in cases where the
procedure has clearly been abused.
3
WHAT CAN, AND CANNOT, BE CLAIMED VIA THE EXPENSES
PROCEDURE
3.1

WHAT CAN BE CLAIMED


3.2

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 Oracle.
Travel bookings, i.e. flights, hotels bookings, that genuinely cannot be made
via the University's designated travel management company, Co-operative
Travel Management, or can be obtained more economically by an alternative
method (please note that Co-op Travel Management should be used in the
first instance although alternative providers may be used if it can be
evidenced that a cheaper fare can be obtained).
WHAT CANNOT BE CLAIMED
Items that would be more appropriately processed through Oracle 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 Financial Procedures 10.47)
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, traveller’s
cheques etc
Any punitive interest, fines or compensation charges incurred by an
individual
3.3
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
Cash advances (minimum £100) for travel and subsistence can be requested
by completing an EXP4 expense claim form. Advances must be reconciled
within 60 days of the return date, and additional advances will not be issued if
you have an outstanding un-reconciled advance.
5
TRANSPARENCY AND DISCLOSURE
5.1
You should be aware that, as a 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
6.1
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. The cost of the
standard class rail fare (evidenced by a ticket or receipt) will be reimbursed
by the University – see Financial Procedures 10.12. 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.
"Home to office" travel.
6.2
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.
Travel Between Cardiff University Sites
6.3
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 and
appropriate 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 should be a last resort and used only in exceptional
circumstances.
Use of Private Transport
6.4
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 Financial Procedures 10.16). The reclaimable
amount for car and fare expenses will be based on the additional mileage
from the employee's place of work to their business destination or their home
address to their business destination.
6.5
The use of a private car must be approved 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, the avoidance of costs associated with an overnight stay or if the
cost of hiring a car would be more expensive. 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 and the vehicle has a MOT
certificate where applicable. 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 advance of such a
mode of UK travel.
Taxis
6.6
The University's sites are considered to be well served by bus and the use of
taxis should be used only in exceptional circumstances. The University has
contracts with local taxi firms (information available from the Purchasing
Section). If your School/Directorate has an account, taxis should be booked
through your Finance or equivalent function and a log is kept of all journeys
undertaken and the reason why. If taxis are being claimed via expenses, the
reason should be entered on the claim form when requesting reimbursement.
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 in all cases.
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 Cardiff 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
7.1
The following key points should be noted:
Permission to travel overseas should be sought in advance of any bookings
being made. An EXP4 for should be completed and approved by the Head of
School/Directorate. This will automatically generate a travel insurance
certificate which will be valid for any other work related travel for the current
financial year. See 7.2 Travel Insurance.

 An EXP5 form should be completed for the reimbursement of travel and
subsistence expenses incurred in accordance with the Financial Regulations
and Procedures. Documentary evidence must be provided of the foreign
exchange rate used. The EXP5 form has a link to the website of XE.com
which is most commonly used for exchange rates.

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. Premium
Economy may also be used but supplementary evidence must be provided to
the relevant authorised signatory specifying the reason.

It is expected that most travel-related expenditure (hotel accommodation, air
fares etc) will be requisitioned through the University's nominated travel
agent, Co-op via Oracle. 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.
Under only very exceptional circumstances will business or first class travel
be permitted;
Exceptions to these general rules will only be made in the following
circumstances:

When specifically approved by the Vice Chancellor, Deputy VC or DPFR or
nominated deputy, and the reason for this approval is clearly specified.
 Reasonable actual expenses incurred will be reimbursed and the London
overnight rate is used as a guide. However, if a more expensive hotel was
booked because of for example advised by conference organiser then a brief
explanation added to the claim should be attached.
Travel Insurance
7.2
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. Further details of
the cover are available from Stephen Blake (ext. 79071)
blakes@cardiff.ac.uk. The University’s insurers UMAL has a website that
provides useful travel advice including security, health and assistance advice.
Further details can be found on www.umal.co.uk/umal/travel
Travel to certain areas may be deemed unsafe. Country-specific travel
advice is published on the FCO website (www.fco.gov.uk) and this together
with the information on the Zurich site should be checked before travelling.
Failure to heed such advice may invalidate your travel insurance cover.
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 also has kidnap cover for staff, students, volunteers and
alumni travelling with an insured person on University authorised business.
The cover is worldwide except for 4 countries (Afghanistan, Iraq, Yemen and
Somalia) where insurance cover will have to be bought separately if available.
This kidnap cover is for 24 hours per day, 7 days a week and 365 days a
year.
The insurer is Special Contingency Risks and staff should continue to
complete form EXP4 and forward to Stephen Blake prior to travelling.
In the unlikely event of an occurrence which may lead to a claim you should
call Special Contingency Risks on the following numbers immediately.
Office Hours (GMT): +44 20 7088 9111
Outside office hours: +44 769 939 1710 (24 hour emergency line)
Spouses or Partners
7.3
The University will not reimburse costs incurred by spouses or partners who
accompany a travelling employee.
Alternatives to Travel
7.4
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
8.1
'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.
Refreshments (ie Tea, Coffee, Biscuits and Sandwiches)
8.2
These can be provided, at the discretion of the organiser, for meetings likely
to be in excess of two hours. These should be provided by CSERV and
should be ordered in advance through Kinetics. Further guidance can be
found on the Catering website.
Meals
8.3
These should only be provided in the form of "working lunches." Alcoholic
beverages will not be allowable with ‘working lunches’ but a moderate
(around £5) amount of alcohol is allowed with evening meals.
9
HOSPITALITY AND ENTERTAINMENT
9.1
‘Entertainment’ is defined as follows: "the provision of certain goods and
services, free of charge to the recipient, designed 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);
_ use of University-owned assets such as meeting rooms, sports facilities or
vehicles for the purpose of entertaining.
9.2
Entertainment should, wherever possible, be carried out at the University's
own facilities, and requisitioned via Oracle. 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.
9.3
Staff should be aware of the provisions of the Bribery Act 2010 in offering
hospitality or entertainment and should refrain from any action which could be
construed as offering a bribe, unless it can be clearly demonstrated as a
legitimate business requirement..
External Hospitality
9.3
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 guideline amount per
person which will be reimbursed is outlined in the Financial Procedures D9.
9.4
Expenditure significantly in excess of the guideline 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 around £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.
Accommodation
9.5
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 or booking with hotels on the University's approved list.
9.6
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
10.1
Employees may extend their business trips, to a limited extent, for nonbusiness reasons (e.g. holidays, personal research).
10.2
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. If there is a doubt on this advice
should be requested from FINCE prior to trip.
11
CHECKLIST
11.1
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 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?
Has the "non business" element of the trip been excluded when submitting
invoices for settlement?
Have alternatives to travel been considered, e.g. video conferencing?
12
PROCEDURE FOR THE PAYMENT OF EXPENSE CLAIMS
12.1
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, i.e. 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.
12.2
Expense claim forms must be signed by either a secondary or designated
budget holder (or their line manager). A budget holder cannot authorise his or
her own expenses claim - their immediate line manager must do this.
Authorisation of Expense Claims
12.3
It is the responsibility of Schools and Directorates to ensure compliance with
the Financial Regulations and Procedures. All claim forms should be
thoroughly checked to ensure they are completed fully and are clearly
discernable as being for legitimate University business, and supporting
receipts are submitted with each claim. Any claims submitted that do not
comply should b e returned to the claimant.
12.4
UK expenses for staff and students are entered onto Oracle by nominated
staff in Schools and Directorates. Completed forms should be sent to the
Accounts Payable section for payment processing. UK claims for visitors to
the University should be sent to Accounts Payable for processing.
12.5
Overseas travel claims and/reconciliation of advances should be sent to
Accounts Payable for processing, and any forms not adhering to the Financial
Regulations and Procedures will be returned to the School/Directorate and
subsequently delaying payment.
13
INTERNAL AUDIT
13.1
A recent internal audit report on expenses identified a number of examples of
non compliance with the regulations which are outlined in Annex A and
summarised below:-
supporting receipts not always attached to the claim;
inadequate detail/purpose for the claim;
non expense items e.g. books are claimed via expenses when they could
be ordered via Oracle;
claim form not fully completed;
incorrect ex
non-approved supplier used to purchase flights without explanation;
inappropriate items claimed e.g. cigarettes;
meals purchased for others without explanation;
alcohol claimed without a meal.
13.2
It is important that staff processing expenses claim within Schools and
Directorates check compliance with procedures and get further
information/clarification if necessary.
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
ANNEX A
INTERNAL AUDIT REVIEW OF SCHOOLS AND DIRECTORATES – RECOMMENDATIONS
Exchange rates should be checked to the XE.com website to ensure that rates used are accurate.
When exchange rates are provided the rates used should be supported by documentary evidence.
Claims should be submitted without delay and an explanation provided if over 3 months.
If expenses are considered to be incidental an explanation should be provided to support the purchase
and subsequent reimbursement via the expenses system.
Heads of Schools / Directorates and/or Approving Officers should be reminded of the necessity for all
expense claims to be thoroughly checked to ensure compliance with Financial Policies and Procedures,
prior to being submitted for payment.
Books purchased should be ordered via the procurement system.
In exceptional circumstances, ie attendance of a spouse, upgrading of flights etc, written evidence of
prior approval should be attached to the submitted claim. If evidence prior approval is not provided the
claim should be either amended or returned to the claimant.
Claimants should ensure that all expenses are clearly discernable as being for legitimate University
business and adequately explained in order to provide total transparency in respect of expenses
incurred.
Claims identified as not being fully completed should be highlighted to the relevant School
Administrator ensuring that remedial action can be taken to ensure that forms are fully completed in
future
“Request to Travel” forms should be submitted to the Head of School / Directorate for approval prior to
travel and/or travel commitments being initiated.
Claims submitted which include expenses not supported by an adequate receipt or explanation for the
omission of a receipt should be returned to the claimant for amendment by the School Administrator.
Approved supplier should be used to purchase flights or a justification provided.