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Policy - Employee Expense - 20250626 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Policy Corporate Services Contact: Manager, Human Resources, Human Resources, Corporate Services, Manager, Financial Reporting and Revenue / Deputy Treasurer Approval Authority: Chief Administrative Officer (C.A.O.) Effective: January 1, 2024 Revised: June 26, 2025 ______________________________________________________________________________________ Employee Expense Purpose The Corporation of the Town of Aurora (the “Town”) recognizes that employees will incur reasonable expenses when conducting the business of the Town. This policy establishes allowable expenses and the process for claiming reimbursement. This policy addresses the methods and procedures by which employees will be governed when attending to business, related to their respective governing bodies. This includes but is not limited to conferences, conventions, seminars, as well as business and business entertainment expenses either within the Town limits or beyond. Further, this policy provides for the associated compensation entitlements. Scope This policy applies to all employees of the Town. Exceptions in any category must be approved by the C.A.O. This policy covers allowable expenses, meal per diem rates, kilometre reimbursement rates and when these expenses can be incurred. Business related goods and services should be purchased using the Town’s purchasing card (PCard), when not available expenses are to be claimed in accordance with this policy. The focus of this policy is on employee related expenses. Members of council are not employees and expense reimbursement is covered through the Compensation and Support for Members of Council policy. Definitions Accommodation Commercial lodging facilities such as hotels, motels, corporate residences, or apartments. 2 Approver The person responsible for administering this policy, having budgetary control over the general ledger account to be expensed, and having authority over the employees incurring the expenditure as well as the appropriate financial authority to approve the expense. Employee An employee of the Town and does not include any member of council. Employees may be full-time, part-time, contract and / or casual. Expense Report Includes both manual forms (e.g. expense form) and corporate purchasing card statements, as applicable. Incidental / Personal Expenses Includes, but is not limited to gratuities / tips, non-alcoholic beverages, personal phone calls, laundry, and dry cleaning. Receipt Document (electronic or paper) created by a vendor, displaying the name of the vendor, as well as the date, amount and description of the expenditure paid by the employee. Town Business Attending an event as a representative of the Town, to derive a benefit for the Town, or to advance the interests of the Town. Policy General Principles Town employees are reimbursed for reasonable expenses incurred while attending functions or meetings on behalf of the Town or while conducting Town business. A PCard, if available, should be used to cover employee related expenses. The most practical and economical arrangements for expenses is required. Out of province travel must be pre-approved by the C.A.O. for employees. Expenses incurred in relation to a spouse / companion must be deducted prior to submitting an expense report. These costs are the responsibility of the employee. Employees are responsible for the payment / repayment of any expense they incur or authorize that is not in accordance with this policy. A detailed receipt, documenting the item purchased, is required. This policy shall not be taken to alter the terms of any collective agreement, nor shall it authorize any expenditure not covered in the current budget. 3 Expenses of non-union employees that are defined in the collective bargaining agreement will be subject to the limits and eligibility as outlined in the collective bargaining agreement. The costs associated with this policy must be included and approved in the annual budget. Expenses reimbursed by another entity, board, government, commission, etc. are to be deducted from the claim submitted to the Town. Expense claims made by employees must be submitted within 30 days of the expense using the Oracle Cloud Expense. Approval Expense claims must be authorized by an employee’s manager or higher level of authority where the value exceeds the manager’s financial authority limit. Persons with the authority to approve expense claims must ensure that: • Expenses were incurred in the performance of Town business • Expenses are reasonable • Expenses comply with this and any other Town policy • Appropriate receipts are provided • Claims are mathematically correct Advances Advances may be acquired in extraordinary circumstances and with the approval of the employee’s director or C.A.O. Eligible and Ineligible Expenses Travel Wherever possible, the means of transportation used must be the most economical for the Town. It is recommended that a rental car be retained for total (roundtrip) distances exceeding 150 km. The employee should discuss the proposed arrangement with their supervisor prior to travelling to ensure the most economical method for the Town. Employees cannot claim mileage if a rental vehicle is used, however, the direct purchase of fuel for the rental vehicle is considered an eligible expense which may be reimbursed. Employees who use their own vehicle for travel on Town business must document their kilometres driven for each leg of their travel for each day, using the Oracle Cloud Map Service. Employees are expected to use the most direct route to their destination. If an alternative route is used the employee must provide a reasonable explanation, such as a 4 road closure, vehicle accident or construction. Reasonable routing for multiple destinations in a single day is expected, with the actual cumulative distance driven reimbursed. Travel distance to non-Town owned locations shall be the lessor of the below and, if applicable, the distance between two non-Town owned locations: • Employee’s residence to the non-Town owned location; or • Employee’s normal Town owned work facility to the non-Town owned location. Driving beyond the borders of Ontario is to be pre-approved in writing by the C.A.O. prior to travel. Commuting from home to a Town facility is not eligible for reimbursement. Travel between Town facilities shall be reimbursed in accordance with the standard distance in kilometers defined in Schedule A. Senior employees whose compensation includes a monthly vehicle allowance are not eligible to claim per-kilometre reimbursement for business travel except for out-of-Town travel. Per-kilometre reimbursement rate will be set in accordance with the annual prescribed Canada Revenue Agency reasonable rate. No additional reimbursement will be made in relation to accidents, incidents, damages, or losses, including interior or exterior cleaning and car maintenance, subject to the following exception: • Fuel is not considered an eligible expense unless a rental car is used All employees will be designated a base location which will be considered their normal place for reporting to work. Changes to an employee’s reporting work location for determining mileage claims shall be approved by the appropriate director. A designated base location shall be the Town facility that is the employee’s designated work location. If more than one person is traveling in a single vehicle, only the person incurring the expense may claim for reimbursement. Parking: Parking lot charges shall be reimbursed based on paid receipts, to be submitted at the time the associated mileage reimbursement is claimed. Parking fines: Parking fines and other infractions are not reimbursed as these are the direct responsibility of the driver. Naturally, this extends to infractions while driving Town owned vehicles as well as personal vehicles. Exception: Other infractions when driving a 5 Town owned vehicle related to maintenance of the vehicle would be eligible for reimbursement. An employee that has no access to their own vehicle may choose to rent a vehicle for business travel. Reimbursement will be in the same manner as they would have, if they used their own vehicle for the travel or the actual rental costs, whichever is less. Highway 407 Toll Charges: The Town will pay costs of 407 or other highway tolls, where appropriate. Transit and taxi: The Town will reimburse reasonable amounts for appropriate use of transit, taxi, and airport limousines upon presentation of receipts. Air travel: The Town will reimburse costs for appropriate use of air travel. Pre-approval of the director is required prior to confirming flight arrangements. If a director is using air travel, pre-approval of the C.A.O. is required. Air travel shall be by the most economic seating available on the most appropriate commercial airline connections in the circumstances. In no circumstances shall first class or similar premier seating fares be reimbursed. Use of taxi, bus, airport limousine or similar services from the employee’s home to the airport and back will be reimbursed as it is considered a reasonable alternative to driving to the airport and parking an owned vehicle while away. Accommodation Where possible, all accommodations are to be booked at the “government, conference or corporate rate.” Allowable expenses include, parking, accommodation, work-related required telephone calls and / or faxes and Wi-Fi charges if work is required to be performed. Ineligible expenses include entertainment, in-suite service including movies and bar services, alcohol, sightseeing expenses, and incidental charges to access hotel facilities. Conferences (Excludes Training) The Town will cover the actual cost of registration for all conventions, seminars, or other events that employees have been authorized to attend. Entertainment expenses are not eligible. Meals Reasonable costs, will be reimbursed, based on the actual detailed receipts. Cost guidelines, including gratuity are as follows: Breakfast - $20 per person 6 Lunch - $25 per person Dinner - $40 per person Detailed receipts shall be notated with the names of all meal attendees. The most senior member of staff or delegate staff pays for the meal by PCard (preferred method) or by personal funds for claim by expense report. Generally, alcohol is not an eligible expense. Requests to approve alcohol expenses should be pre-approved by the C.A.O. and only in exceptional circumstances where there is a legitimate business reason. Networking Reasonable costs associated with attendance at networking events or functions arranged by associations or conference organizers, including sporting or entertainment events, golf tournaments (including when in conjunction with a conference), where attendance or representation at such event is beneficial to the employee’s work effectiveness for Town purposes, is reimbursed, where written pre-approval by the director is obtained. Spousal / Family Member Surcharges When travelling on Town business, where appropriate, a spouse, partner or family member may accompany the employee member. All surcharges and costs associated with such persons must be borne by the employee. Meetings and Town Staff Only Related Expenses Modest expenses for meeting supplies or meetings with employees, where appropriate, will be reimbursed, subject to annual budget allocations. Similarly, the Town’s PCard should be used for these types of expenses. Special Occasions Reasonable expenses for special events, such as the departure of an employee or summer student, or significant graduation, are reimbursed. Birthday celebrations are not considered a special occasion under this section. Business Meeting Expenses Reasonable business meeting expenses are permissible under this policy. Business meetings shall not be claimed when only Town employees are involved for social interaction only (such as birthday celebrations). Business meetings are strictly to be used for the purposes of doing business on behalf of the Town. Any business meeting expenses e.g. lunch or dinner where only employees are involved must be supported with an explanation of the business purpose. 7 Business meeting expenses may be paid for using a Town’s PCard. Memberships The Town will pay membership and association fees for those organizations and professional associations that generate important and current technical and professional information to the Town. The Town will pay for professional membership and association fees for employees who carry a designation and / or certification to perform their duties and responsibilities. Payment of personal professional membership and association fees is to be approved by the employee’s director, or the C.A.O., in the case of a director. Employee Gifts Gifts to employees for retirement or any other type of celebration are not permitted under this policy. Responsibilities All Staff • Read this policy and ensure that they understand their rights and obligations • Explore the most economical and practical mode of incurring expenses under this policy • Obtain approval from the appropriate approval authority if there is a question as to the validity of the expense Approvers • Ensure that they have the financial authority to approve the expense • Be knowledgeable with the requirements of this policy and ensure approvals are consistent with the expectations laid out in this policy Corporate Services and Finance • Develop and update this policy, in consultation with the C.A.O., the Corporate Management Team (C.M.T.) and the Executive Leadership Team (E.L.T.) • Ensure that the principles and mandatory requirements contained in this policy are applied consistently across the Town • Highlight any inconsistences to the appropriate authority Chief Administrative Officer • Ensure that the principles and mandatory requirements contained in this policy are applied consistently across the Town • Approve exemptions, when, in their professional opinion, it is warranted • Authorize expenses for directors 8 Monitoring and Maintenance C.A.O. / directors / managers / supervisors and employees should work collaboratively to resolve issues related to this policy. Any employee found to be disrespecting the terms of this policy other than under exceptional circumstances, emergencies or operational requirement is subject to an investigation and discipline deemed appropriate by their immediate supervisor, Human Resources, the Town Clerk and / or C.A.O. This policy will be reviewed two years from its effective or revision date, in accordance with the Town of Aurora’s policy maintenance schedule. References • Policy – Compensation and Support for Members of Council • Policy – PCard • Canada Revenue Agency Reasonable Allowance Rate 9 Schedule A: Travel Distance in km Between Town Facilities To / From Aurora Community Centre Aurora Cultural Centre Aurora Family Leisure Complex Aurora Public Library Lind Realty Team Sports Dome Aurora Seniors Centre Aurora Joint Operations Centre Stronach Aurora Recreation Complex Aurora Town Hall Aurora Victoria Hall Aurora Town Square Aurora Community Centre N/A 1.3 2.3 1.1 2.1 2.5 3.0 4.7 2.6 1.1 1.2 Aurora Cultural Centre 1.3 N/A 1.7 0.1 1.6 1.8 2.4 4.1 2.0 0.2 0.1 Aurora Family Leisure Complex 2.3 1.7 N/A 1.8 0.1 1.4 0.6 3.6 1.5 1.6 1.6 Aurora Public Library 1.1 0.1 1.8 N/A 1.7 1.9 2.5 4.1 2.0 0.2 0.2 Lind Realty Team Sports Dome 2.1 1.6 0.1 1.7 N/A 1.3 0.8 3.5 1.4 1.5 1.5 Aurora Seniors Centre 2.5 1.8 1.4 1.9 1.3 N/A 2.1 2.7 N/A 1.7 1.7 Aurora Joint Operations Centre 3.0 2.4 0.6 2.5 0.8 2.1 N/A 4.3 2.2 2.3 2.3 Stronach Aurora Recreation Complex 4.7 4.1 3.6 4.1 3.5 2.7 4.3 N/A 2.8 3.9 4.0 Aurora Town Hall 2.6 2.0 1.5 2.0 1.4 N/A 2.2 2.8 N/A 1.8 1.9 Aurora Victoria Hall 1.1 0.2 1.6 0.2 1.5 1.7 2.3 3.9 1.8 N/A 0.1 Aurora Town Square 1.2 0.1 1.6 0.2 1.5 1.7 2.3 4.0 1.9 0.1 N/A