McMaster University shall reimburse its business travellers for reasonable and necessary expenses incurred by them in the course of carrying out their University responsibilities.

 
A "business traveller" is defined as any employee, student or visitor who is being reimbursed travel-related expenses by McMaster University.

A "reasonable expense" is deemed to be based on sound judgement and moderation.  Refer to

below for further detail on reimbursable expenses.
 

Scope
This policy applies to all University travel, regardless of the ultimate source of funding, unless specifically indicated otherwise by the funding source. Where funding regulations are different from University regulations, the funding regulations will take precedence.

If a circumstance arises that is not specifically covered in the procedures below, the traveller or signing authority must adopt the most conservative course within the "spirit" of this policy or consult Accounts Payable.
 

Responsibility
McMaster University is responsible for maintaining appropriate controls and checks as part of its accountability.

The traveller is responsible for ensuring that claims for reimbursement are accurate, conform with the University's Travel Policy and Procedures and, where applicable, funding agency rules, and that all expenditures are supported by original receipts as required. The traveller is encouraged to submit reimbursement claims within 15 working days and not later than twelve months from completion of the trip.

The authorized approving officer is responsible for ensuring that claims are for legitimate University activities, are within the conditions of the Travel Policy and are being charged to an appropriate account. Outlined below are the authorizations required when claiming travel expenses.

For claims to be reimbursed from research grants, the authorized research office is responsible for ensuring that funding is available and that expenses conform to those allowable under the guidelines of the sponsor.

It is the role of McMaster Travel Services, the preferred travel agency, to provide an efficient, cost-effective and user-friendly travel program to assist the University's business travellers. McMaster Travel is responsible for negotiating favourable rates with travel suppliers and making travel arrangements.

The Accounts Payable Department is responsible for developing and maintaining administrative processes relating to travel, processing travel reimbursements in a timely manner and ensuring that claims for reimbursement are in compliance with the McMaster University Travel Policy and Procedures.
 

Authorizations
The following authorizations are required to request and report on an accountable advance and to claim travel expenses:

1. The signature of the claimant/traveller.
2. Approval by an authorized approving officer as outlined below.

Note: When the account to be charged is a research account (ledger 5 or 8), the authorized approving officer's signature of the Department Chair may be delegated to his/her administrative co-ordinator/department manager. The ultimate responsibility for the expenditures approved by the delegate rests with the Chair. This exception is permitted since research account expenses are also approved by the Research Office.

Authorization Required

President	Chair of the Board of Governors or Vice-Chair of the Board of Governors or Chair of the Finance Committee
Vice-President	President or, in his/her absence, Provost and Vice-President, Academic
Dean Associate Vice-President Assistant Vice-President	Provost and Vice-President, Academic or in his/her absence, President
Department Chair Associate Dean	Faculty Dean
Department Chair (Health Sciences) Associate Dean	Dean and Vice-President, Health Sciences or, in his/her absence, Associate Dean (Academic) or Associate Dean (Research)
Travellers charging research accounts	Principal Investigator. When the principal investigator is the claimant, the authorized approving officer must be a minimum one level above the claimant (i.e. for faculty members, this would be the Department Chair or his/her delegate).
Travellers charging non-research accounts	The authorized approving office must be the account signing authority, and must be a minimum one level above the claimant.

3. If the account to be charged is a research account (5 or 8), the applicable research office must authorize.

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PROCEDURES

Making Travel Arrangements
Travellers are encouraged to make their travel arrangements through the preferred travel agency, McMaster Travel Services, in order to take advantage of negotiated discounts. When using the preferred travel agency, purchases will be prepaid automatically by the University (e.g. airfare, vehicle rentals, hotel, rail, etc.) and committed to the traveller's University account.

A traveller may conduct travel business with any other travel agency but the University cannot pay these travel agents via the automatic advance arrangement.
 

Methods of Payment
It is not intended that a faculty member, staff member, visitor or student use personal funds to finance University business travel costs. Travel expenses should be paid using the following options:

• University Corporate Travel and Expense Cards
• University Account
• Personal credit card
• Cash advance
• Accountable advance

 

 
 
 
 
 
 
 
 
 
 
 

Corporate Credit Cards
This is the preferred method of payment. McMaster University currently uses two major corporate travel and expense cards. Travellers are encouraged to use a corporate card for travel-related expenses. The annual card fee is absorbed by the University. Statement balances are the responsibility of the traveller. Accounts Payable can pay the supplier of the Corporate Travel and Expense Card upon submission of the traveller's completed Payment Request form including a copy of the cardholder's statement and supporting documentation.

In some cases, travel prepayments for hotel reservations and registrations are made sufficiently in advance, on the Corporate Travel and Expense Card, to take advantage of cost-effective rates. In instances where the charges become due prior to completion of the trip, to avoid interest charges being levied, the Accounts Payable Department will pay the statement directly to the supplier of the Corporate Travel and Expense Card upon submission of an Accountable Advance Request using the Payment Request form.

University Account
When booking through the preferred travel agency, McMaster Travel Services, expenses will be paid automatically by the University and committed to the traveller's University account against his/her Roll 1 employee I.D. number.  These expenses are to be reported through the submission of the Payment Request form.

Personal Credit Card
Personal credit cards may be an alternative to the Corporate Travel and Expense Card. The University does not pay for service charges, interest or annual fees associated with personal credit cards; this is the sole responsibility of the cardholder. If the charges related to travel become due prior to completion of the trip, to avoid interest charges being levied, the Accounts Payable Department will reimburse the traveller upon submission of an Accountable Advance Request using the Payment Request form.

Cash Advance
Cash advances may be obtained within 10 working days prior to departure by using the Corporate Travel and Expense Cards at any Automatic Teller Machine (ATM). When travelling outside of Canada, it is recommended that an ATM be used to obtain cash in the country of destination.

Service charges for cash advances using the Corporate Travel and Expense Cards will be reimbursed by the University. Such cash advances are not to be used to pay for travel agency purchases.

Accountable Advance
If advance payments or cash advances cannot be made by any of the methods above, an accountable advance will be issued against a full-time faculty or employee staff I.D. number. Accountable advances may be requested on the Payment Request form. All accountable advances are to be reported on the Payment Request form within 15 days of the completion of the trip. Delinquent advances will be recovered through payroll deduction after 60 days overdue.  Accountable advances will not be issued if the traveller has any unreported, past due advances.

Expense Reporting
Travel expenses will be reimbursed providing they are reasonable in nature and amount, are properly supported with documentation as described in Receipts below and have been appropriately approved as described in Authorizations above. In order to claim travel expenses, the traveller must submit a Payment Request form within 15 working days of completion of the travel. Claims for expenses that are older than twelve months will not be reimbursed.
 

Receipts
Original receipts are required for reimbursement of all expenses with the exception of the per diems and gratuitous accommodation. When a receipt is required, an original itemized document on company letterhead acknowledging receipt of payment is needed. Neither credit card statements nor credit card slips are acceptable substitutes for original itemized receipts unless approved by the authorized approving officer, and allowed by the granting agency. In instances where an original receipt is not issued or has been lost, submit a copy of the credit card statement or credit card slip together with an explanatory note signed by the traveller.

When a receipt for meals or incidental expenses is unavailable, a per diem may be claimed. An itemized list, signed by the traveller, must be provided with the Payment Request form to support this claim. Current per diem rates can be found in Appendix A..

In cases where the cost of a trip is partially funded by an outside source which requires original receipts, the original receipts must first be submitted to Accounts Payable with the Payment Request form. The Accounts Payable Assistant will stamp and date these receipts and return them to the claimant.
 

Eligible Travel Expenses

Accommodation

• Hotel Expenses

Reimbursement is limited to a single room rate per traveller. Travellers are encouraged to use the Corporate Travel and Expense Card for deposits and hotel expenses.

If reservations must be cancelled, it is the responsibility of the traveller to make sure that cancellation is made in advance so that "no show" charges will not be incurred.
 

• Gratuitous Accommodations

The University recognizes that gratuitous accommodation assists the traveller and the University in maintaining low travel expenses. The intent of this allowance is to reduce hotel costs by encouraging the traveller to lodge with family or friends when possible. The maximum reimbursable rate, when travelling on approved University business, is found in Appendix A. Receipts are not required. This allowance is payable to the traveller only, not to the lodging host.

Air Travel

• Airfare

The cost of coach class airfare is eligible for reimbursement. Travellers are encouraged to obtain the lowest available fare; this can often result in a charge that is lower than the Economy rate. Travellers may wish to take note of negotiated preferred carrier agreements when making decisions regarding airfare bookings. Claims for First Class and Business Class travel will be reimbursed at the coach rate unless special circumstances so warrant (e.g. a medical certificate). Financial penalties which apply to changes and cancellations of non-refundable tickets are reimbursed if the change is made for University business, rather than for personal reasons.
 
• Unused tickets

Unused tickets or any portion thereof must be returned to your travel agency as soon as possible for proper credit and processing. It is the responsibility of the traveller to pursue credit for any unused refundable tickets.
 
• Flight Cancellation Insurance

Flight cancellation insurance is an allowable expense.
 
• Frequent Flyer Points

A traveller may choose to enrol in a frequent flyer program. Enrolment fees are not reimbursable and therefore are the responsibility of the traveller. Frequent flyer status is NOT to be a determining factor in the selection of the carrier.  Travellers are not permitted to seek cash reimbursement for airline tickets purchased on frequent flyer points.

Ground Travel

• Airport Limousine/Transportation

For transportation to and from airports, an airport limousine or bus is recommended.
 
• Car Rental

Car rental bookings can be made by the traveller or with the assistance of a travel agency. When making car rental bookings, the traveller is encouraged to obtain the most cost-effective, practical vehicle and to take advantage of corporate and other discounts. When travelling on University business, daily vehicle insurance coverage must be acquired.

Car rentals should be charged to the Corporate Travel and Expense Card as the credit card supplier will cover the collision damage waiver and the roadside assistance service fee. In these cases, the traveller should decline the rental agency insurance charge. Please remember to refuel your rental car prior to its return and save the gas receipts for reimbursement.
 

• Privately Owned Vehicles

When a privately owned vehicle is used on University business, the kilometre allowance is designed to cover vehicle operating costs, including gasoline, insurance, repairs and maintenance.

Persons who choose to drive rather than fly may be paid travel status for a maximum of two days beyond the dates of official business. The reimbursement for kilometrage may not exceed the cost of comparable 30-day advance purchase airfare rates. When completing the Payment Request form, dates, kilometrage and destination must be included.

The Kilometre allowance is reviewed and adjusted from time to time by the University. The current allowable kilometrage rate can be found in

Appendix A

• Parking/Highway Tolls Ferries/Bridge Tolls

Receipts must be obtained for reimbursement purposes where possible.
 
• Rail

The Club Car accommodation for day travel, or standard lower berth or roomette accommodation for overnight travel is acceptable for travelling by rail.

• Taxi / Bus

Taxi or bus transit may be used where this represents an economical means of transportation. Receipts should be obtained for reimbursement purposes.

Meals

• With Receipts

Individuals will be reimbursed for reasonable amounts incurred for meals when travelling on University business.

• Without Receipts

Only meal costs incurred while on University business or during travel for University business should be claimed. For example, a traveller beginning or ending travel midway through a day should not claim the full day's allowance.

To simplify processing, no receipts are required when claiming per diem meal allowances. Refer to

Appendix A

 for the Maximum Per Diem Rates.

Registrations

Registrations should be charged against the traveller's Corporate Travel and Expense Card, whenever possible. An alternative is to requisition a prepayment via an accountable advance request. Proof of payment from the host organization is required to settle this advance request upon completion of the conference/event.

Out-of-Country Travel

Persons travelling outside of Canada may be reimbursed for expenses if they were specifically incurred and necessary for their travel.

Such expenses include, but are not limited to, the costs of:

• visas, passports and other travel documents
• photographs for travel documents
• currency exchange
• airport/departure taxes
• immunization shots

Receipts are required for reimbursement. When claiming expenses on the Payment Request form, state the amount and type of currency used. The exchange rate will be calculated by Accounts Payable unless proof of the exchange is provided. The exchange rate should be the applicable rate on the transaction date. When possible, provide a copy of the cardholder's statement to support exchange rates.

Other Eligible Travel Expenses

The specific nature of miscellaneous expenses are to be detailed on the Payment Request form and original receipts must be provided.
 
• Fax and e-mail charges
• Reasonable Laundry/Dry Cleaning (after seven consecutive days of travel)
• Transaction fees levied by travel agency
• Reasonable Telephone charges*
• Any travel expenses related to physical/medical disabilities of the traveller


* Payment of personal telephone call expenses is at the discretion of the account signing authority.

Ineligible Travel Expenses
Inclusive but not restricted to:

• Any expenses related to accompanying travel companions
• Child care expenses
• Pet care expenses
• Non-business or personal related expenses
• Parking and other traffic fines
• Personal travel insurance
• Insurance coverage for privately owned vehicles
• Expenses for the repairs of privately owned vehicles
• Expenses related to damages to uninsured rental cars and privately owned vehicles
• Interest charges levied on overdue invoices or credit card statements
• Unnecessary stopovers
• Lost or stolen items
• Meals included in another reimbursable item (e.g. conference fee, transportation    charge, accommodation)

Group Travel
Accounts Payable requires a list of the individuals comprising the group. The individual
overseeing the entire trip is responsible for obtaining and submitting all original receipts.
 

Exceptions to the Policy
At times, special circumstances arise that may warrant exceptions such as deviations from the list of ineligible expenses. In this case pre-approval of the exception, in writing, is required from the authorized approving officer prior to incurring the expense.  That written pre-approval must accompany the expense claim.
 

Expense Reimbursement for the McMaster University Board of Governors and its Committees
The University's Travel Policy shall be extended to cover external members of the Board of Governors and its Committees when they are attending scheduled meetings of these bodies or when they are otherwise engaged on official Board business requiring travel from their usual residence or place of work. In the application of this policy to Board members, the following features should be noted:

1. The Secretary of the Board of Governors is the designated "authorized approving officer". All claims for reimbursement therefore must be submitted to the Secretary in a manner consistent with the policy.

 
2. Expenses will be paid only when the total travel involved is in excess of 40 kilometres.

 
3. Reimbursement does not extend to replacement of wages or salaries lost as a result of attendance at any meetings.

 
4. Members wishing to donate their reimbursement claim to the University should so signify in writing at the time the claim is submitted to the Secretary, who will arrange for the issuance of a charitable donations receipt.

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Appendix A
Travel Expense Reimbursement Rates
(Reviewed Annually)

• Kilometre Allowance:

effective June 1, 2008. The current allowable kilometrage rate is: $ 0.40 per kilometre.
 
• Gratuitous Accommodations:

effective January 1, 1997. The maximum reimbursable rate: $20.00 CDN per night.
 
• Meals Without Receipts - maximum per diem rates :

effective June 1, 2005
• Canada $48.00 CDN ($10 Breakfast, $13 Lunch, $25 Dinner)
• Outside Canada $48.00 USD ($10 Breakfast, $13 Lunch, $25 Dinner)

 
• Incidental Expenses Without Receipts:

effective January 1, 1997. The maximum per diem rate for incidental expenses when a receipt is unavailable is up to $10.00 per day, or a maximum of $50.00 per trip.

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Appendix B
Guidelines on Travel to and from the Downtown Campus

• Policy

It is the policy of McMaster University to reimburse its business travellers for reasonable and necessary expenses incurred by them in the course of carrying out their University responsibilities.

A "reasonable expense" is deemed to be based on sound judgement and moderation.
 

• Responsibilities

The traveller is responsible for ensuring that claims for reimbursement are accurate, and conform with the University's Travel Policy and Procedures.

The authorized approving officer is responsible for ensuring that claims are for legitimate University activities, and within the conditions of the Travel Policy and Procedures, and are being charged to an appropriate account.

• Expense Reporting

Travel expenses will be reimbursed provided they are reasonable in nature and amount, are properly supported with documentation as described in Receipts below and have been appropriately approved as described in the University's Travel Policy and Procedures. In order to claim travel expenses, the traveller must submit an Expense Report to Accounts Payable. When claiming for multiple trips, a list of dates and purpose of trip must be included.  The cost of travelling to or from your home to either main campus or the downtown campus will not be reimbursed.  Claims for expenses that are older than twelve months will not be reimbursed.

• Receipts

Original receipts (where applicable) are required for reimbursement of all expenses with the exception of the per diem and auto allowance rates. When a receipt is required, and original itemized document on company letterhead acknowledging receipt of payment is needed.
 
• Auto Allowance

5 kilometres, one way; or, 10 kilometres, round trip at the University's current allowable rate as stated in the Travel Policy and Procedures.

• Suggestions
• car pool or use public transportation whenever possible;
• limit the number of trips, e.g. teleconferencing;
• plan to schedule meetings back-to-back at either the beginning or end of the day.
Approved by Finance Committee of the Board
May 26, 2005

Effective June 1, 2005

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Contact Department:  ACCOUNTS PAYABLE

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MUFA - pdk
June 2005