Hosting Expense Procedures
– February 13, 2012
Page 1 of 7
HOSTING EXPENSE PROCEDURES
Procedure
Type:
Management
Initially
Approved:
January 1, 2011
Procedure
Sponsor:
VP, Finance &
Administration
Last
Revised:
February 13,
2012
Administrative
Responsibility:
AVP, Finance and
Commercial
Operations
Review
Scheduled:
May 2024
Approver:
Executive Leadership Team
A.
PURPOSE
Based on the principles stated in the Hosting Expense Policy, the purpose of this document is to
guide the hosting activities initiated on behalf of the University and address the payment or
reimbursement of related expenditures. The provisions contained in this document are mandatory
to ensure employees are appropriately reimbursed; and, direct the appropriate considerations and
authority for hosting events, taking into consideration the expectations of a publicly funded
institution.
B.
PROCEDURES
1.
ADMINISTRATION
1.1
Authorization
a.
The Expense Approver of the Employer have the responsibility to
authorize and initiate hosting and to ensure that all related arrangements
are consistent with the principles of the Hosting Policy and as spelled out
in this document.
b.
The review and approval of expense claims is to be carried out by Vice-
Presidents, Associate Vice-Presidents, Deans, Directors, Department
Heads, or designated Managers/Chairs for each respective area. These
individuals have the authority and are responsible/accountable for
determining the overall reasonableness of the claims and for making
exceptions to the normal guidelines when circumstances warrant such
action. All exceptions are to be in keeping with the guiding principles of
this Policy. In all circumstances, reimbursement claims must be approved
by one administrative level higher than the claimant (one-over approval).
c.
Reports and reimbursement claims for expenses incurred by the President
require both the review and approval of the Vice-President, Finance &
Administration as well as the approval of the Chair of the Board of
Governors.
Hosting Expense Procedures
– February 13, 2012
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1.2
Level of Expenditure
a.
The Hosting Expense Policy requires that all claims be reasonable, reflect
prudence, good judgment, due diligence and be defensible to an impartial
observer.
b.
The impartial observer to whom we, as a public institution, can anticipate
having to defend the reasonableness of our claims may include: auditors,
internal or external, representing any of the funding organizations that
support activities at the University and Provincial level; and, members of
the public and any form of media who wish to scrutinize specific activities
by query or through the means offered in the Government of Alberta's
Freedom of Information and Protection of Privacy Act.
1.3
Receipts
a.
A detailed receipt is that provided by the vendor or supplier which
demonstrates the individual items or services purchased. A slip
demonstrating the total paid and the tender type (cash, debit card, credit
card, etc.) is not considered a detailed receipt.
b.
Reimbursement for all Hosting activities shall be made only upon the
presentation of complete documentation of the expenses including:
i.
Detailed receipt including: itemized expenses incurred,
date, and name of supplier (i.e., restaurant, caterer, venue).
ii.
Purpose of the event.
iii.
List of attendees:
•
For events where meals and/or beverages are ordered and
provided individually; where individuals are specifically invited
to participate; or for gatherings which do not meet the
following description of large social events, a specific list of
individual attendees including name, department or external
organization represented, is required.
•
For large social events where meals are not ordered or
provided individually and involving large groups of people
where capturing individuals in impractical (i.e., involving
several departments, entire Divisions, or the University as a
whole and/or large external delegations), a list of the groups
invited along with an estimate of the number of persons that
actually attended is sufficient.
1.4
Use of University Purchasing Cards (P-cards) for Hosting Activities
a.
Where available, employees may use University P-cards for hosting of
meals and related costs. All such expenditures incurred must adhere to
the University policies.
b.
Where the Hosting activities include the provision of alcohol, those
charges must be clearly distinguishable from or within the balance of the
bill being charged.
1.5
Loyalty Programs
a.
Individuals may join loyalty programs and retain benefits offered for
business or personal use provided that there are no additional costs to the
Hosting Expense Procedures
– February 13, 2012
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University. If an Employee is using any form of affinity card (i.e., AirMiles,
Aeroplan, etc.) for University expenditures, it is the Employee's
responsibility to declare a taxable benefit upon redemption of their affinity
points earned from Employer paid expense per tax legislation as dictated
by the Canada Revenue Agency (CRA) under Income Tax Bulletin --
IT470R -- Employee Fringe Benefits.
2.
HOSTING AND BUSINESS EXPENSES (EXTERNAL AND INTERNAL)
Hosting activities of the University are carried out to facilitate business operations and
celebrate institutional milestones. At all times, Hosting activities should be planned and
carried out with due consideration of the principles of this Policy.
2.1
External Hosting
a.
The cost of hosting individuals external to the University and related to the
conduct of University business may be reimbursed. The Hosting
expenses may include food, beverages, social or recreational activities
and tokens of appreciation in the form of gifts of modest value. Expenses
should be kept to a reasonable costs, exercising professional discretion,
and involve only those expenses appropriate to the objectives and/or
significance of the event and respectful hosting of the external party.
b.
Alcohol provided will be limited to prior to or during a luncheon, dinner, or
reception, where food and refreshments are provided and only where 50%
or more of the hosted gathering are external to the University. All such
gatherings must be directly related to the promotion and advancement of
the University. Where alcohol is made available it shall be carried out in
adherence with the law and any licensing requirements.
c.
In keeping with the principle of one-over approval of Hosting expenditures,
the most senior person in attendance from the Hosting unit is to pay and
expense the related costs. It is important to distinguish between the most
senior attending member of the University and that of the Hosting unit.
This is to say that if the President of the University attends a function as
an invited guest of the Hosting unit, it is appropriate that the most senior
attendee from the Hosting unit cover and expense the Hosting costs, not
the President. However, if the Office of the President is the Host and the
President is in attendance, the President should pay and expense the cost.
d.
As required by law due to the University's status as a registered charity,
no reimbursement may be made to any University employee or member
of the Board of Governors for the attendance or expenditure at University
or Foundation fund-raising events.
University officials or representatives are free to attend political fundraising
dinners or events as a guest. All university employees are free to attend
such events at their own expense. In the event a university official or
representative finds it necessary to purchase a ticket for business
conducted on behalf of the University, the expense will be reimbursed in
accordance with the limits stipulated in the Alberta Election Finances and
Contributions Disclosure Act:
Hosting Expense Procedures
– February 13, 2012
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Fund-raising Functions
23(1) In this section, "fund-raising function" includes any social function
held for the purpose of raising funds for the registered party, registered
constituency association or registered candidate by whom or on whose
behalf the function is held.
(2) The gross income from any fund-raising function must be recorded by
the chief financial officer of the registered party, registered constituency
association or registered candidate that held the function or on whose
behalf the function was held.
(3) If an individual charge by the sale of tickets or otherwise is made for a
fund-raising function held by or on behalf of a registered party, registered
constituency association or registered candidate, then for the purposes of
this Act,
(a) if the individual charge is $50 or less, it shall not be considered
as a contribution unless the person who pays the charge
specifically requests that it be so considered, in which case 1/2
shall be allowed for expenses and 1/2 shall be considered as a
contribution to the registered party, registered constituency
association or registered candidate, as the case may be, and
(b) if the individual charge is more than $50, $25 shall be allowed
for expenses and the balance shall be considered as a
contribution to the registered party, registered constituency
association or registered candidate, as the case may be.
(4) The price paid by a person at a fund-raising function in excess of the
market value at that time for goods or services received is considered to
be a contribution to the registered party, registered constituency
association or registered candidate, as the case may be.
e.
In planning Hosting activities, if there is any doubt on the appropriate level
of expenditure or the provision of alcohol at the University's expense, the
organizer should obtain prior approval from their respective Vice-
President.
2.2
Internal Hosting
– Small Group
(i.e., Department or Individual Recognition and Working Sessions)
a.
From time to time, Division Heads, Associate Vice-Presidents, Deans,
Directors, Managers and Chairs may incur meal expenses for the
purposes of individual or small group recognition and/or working sessions.
b.
The Hosting costs associated with such activity are to be paid and the
expense claimed, by the most senior person of the operating group hosting
the gathering.
c.
University reimbursement or expenditure for alcohol is not permitted for
internal hosting of small groups for department, group or individual
recognition or for working committees such as retreats and hiring
committees. In rare or exceptional circumstances, the President may
waive this restriction through approval prior to the function. Where alcohol
is made available via cash bar on site for internally hosted functions, such
Hosting Expense Procedures
– February 13, 2012
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provision shall be carried out in adherence with the law and any licensing
requirements. The service fee charged by the food services provider for
the provision of a cash par is an acceptable University expense.
d.
Members of the Board of Governors or a Program Advisory Committee
who are not current employees of the University are deemed external to
the University.
2.3
Internal Hosting
– Large Social Functions
(i.e., University-wide or Division-wide, Christmas reception)
a.
By the authority of each Division Head, Associate Vice-President, Dean or
Director, and where budgets allow, expenditures for employee social
events may be reimbursed. In planning the frequency and cumulative cost
of internally hosted social events, the Expense Approver is reminded of
their responsibilities to act in a prudent manner in keeping with the nature
of the University as a publicly funded institution as well as the potential for
such cumulative costs for individual recipients to reach the level of taxable
benefits as defined by current Federal and Provincial tax legislation. For
current information on such tax limits, please contact Employee Services
or Finance Services.
b.
University expense or reimbursements for alcohol at large internally
hosted social functions is not permitted. In rare or exceptional
circumstances, the President may waive this restriction through approval
prior to the function. Where alcohol is made available via cash bar on site,
such provision shall be carried out in adherence with the law and any
licensing requirements. The service fee charged by the food services
provider for the provision of a cash bar is an acceptable University
expense.
C.
DEFINITIONS
(1)
Alcohol:
Alcoholic beverages. All provision and consumption of
alcohol on the Mount Royal University premises must be in
adherence to the law.
(2)
Employee:
means individuals who are engaged to work for the
University under an employment contract, including but not
limited to faculty, staff, exempt, casual and management
employees
(3)
Employer:
Mount Royal University, the Mount Royal University
Foundation or the Mount Royal University Child Care
Centre
(4)
Expense Approver:
Means the individuals holding specified positions with the
responsibility and authority to authorize expenditures. The
authority to approve Hosting activity reimbursement claims
may not be delegated below the level of Manager or Chair.
(5)
External Hosting:
Hosting activities carried out to promote University
business and advancement, where 50% or more of the
group being hosted are external to the University; i.e.,
private sector representatives, government officials,
industry officials and/or international dignitaries, etc.
Hosting Expense Procedures
– February 13, 2012
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(6)
Internal Hosting:
Hosting activities carried out to promote University
business and advancement, where 50% or more of the
group being hosted are University employees and/or
students.
(7)
Policy:
means the Hosting Expense Policy
(8)
Prior Approval:
Written approval for hosting activities obtained prior to
making related commitments or expenditures and prior to
the start of the activity.
(9)
Purchasing Card
(P-Card):
a credit card supplied by a financial institution and used by
Mount Royal to enable cardholders to make purchases and
payment of low dollar value purchases, travel and hosting
expenses
(10)
Reasonable
Expense:
An expenditure that is considered to reflect prudence, good
judgment, due diligence and is defensible as a business
activity to an impartial observer.
(11)
Receipt
An original detailed document, provided by the merchant
showing the name and address of the merchant, the CRA
issued business number (if Canadian and applicable), the
date of the purchase, an invoice/receipt number, an
itemized description of the goods or services purchased,
the total amount of tax charged, any shipping charges (if
applicable), and the total amount of the invoice including
taxes and delivery and/or service charges. The submission
of a credit card or debit card receipt indicating payment is
not sufficient on its own.
(12)
Student:
A student of the University currently enrolled in the program
offered at the University. Students are considered internal
to the University community where hosting activities are
concerned.
(13)
University:
means Mount Royal University
D.
RELATED POLICIES
• Hosting Expense Policy
• Public Disclosure of Expenses Policy
• Contractual Signing Authority Policy
• Travel and Expense Policy
E.
RELATED LEGISLATION
• Alberta Election Finances and Contributions Act
• Alberta Freedom of Information and Protection of Privacy Act
F.
RELATED DOCUMENTS
Hosting Expense Procedures
– February 13, 2012
Page 7 of 7
• Canada Revenue Agency Income Tax Bulletin – Employee Fringe Benefits
• Purchasing Card Procedures
• Contractual Signing Authority Procedures
• Travel and Expense Procedures
G.
REVISION HISTORY
Date
(mm/dd/yyyy)
Description of
Change
Sections
Person who
Entered Revision
(Position Title)
Person who
Authorized
Revision
(Position Title)
01/01/2011
02/13/2012
08/24/2017
Editorial
–
formatting; title and
name changes
University Secretary
08/152019
Editorial
– title
changes
University Secretary
12/06/2021
Editorial
– Policy
contact title
Policy Contact
Policy Advisor
General Counsel &
University Secretary
01/19/2022
Editorial
Related Policies
Policy Advisor
General Counsel &
University Secretary
04/18/2023
Editorial
Definitions
Policy Advisor
General Counsel &
University Secretary