Expenses Policy and Protocol

EXPENSES POLICY AND PROTOCOL

(including ePay expenses)

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CONTENTS

1. INTRODUCTION
2. PURPOSE
3. SCOPE
4. DEFINITIONS
5. RESPONSIBILITIES
6. GENERAL PRINCIPLES
7. TRAVEL
8. AIR TRAVEL
9. RAIL TRAVEL
10. TAXIS
11. CYCLING
12. ACCOMMODATION
13. SUBSISTENCE
14. OVERSEAS TRIPS
15. SPOUSE /PARTNER TRAVEL & HOSPITALITY
16. SUBSCRIPTIONS
17. TELEPHONE EQUIPMENT
18. STUDY LEAVE
19. RELOCATION
20. INTERVIEW EXPENSES
21. HOW TO CLAIM
22. APPROVAL OF CLAIMS
23. TAX
24. TRAINING REQUIREMENTS
25. REFERENCES AND ASSOCIATED DOCUMENTATION
26. EQUALITY IMPACT STATEMENT

APPENDICES

Appendix 1 Mileage Distance rates – AfC staff

Appendix 2 Mileage Distance rates – Medical staff

Appendix 3Subsistence Allowance –

QUICK REFERENCE GUIDE

This policy must be followed in full when developing or reviewing and amending Trust procedural documents.

For quick reference the guide below is a summary of actions required. This does not negate the need for the document author and others involved in the process to be aware of and follow the detail of this policy.

1. The purpose of this Expenses Policy is to set out the processes, allowances and requirements for receipts when PHT staff submit expenses claims. It has been produced at this time to provide a framework and consolidated guidance for staff as the system for electronically claiming expenses (expenses) is rolled out across the Trust.

1. All staff will submit their expenses claims using an electronic system called ePay.

1. ePay is an application which allows you to enter travel and expense claims online. You must go through a registration process and your registration must be approved by your Manager before you can access the system.

1. There are a series of guides for ePay which comprises of :

• ePay – Registration Guide which explains how to register on the system, approve registration where appropriate, register vehicle details and how to re-set a forgotten password.
• ePay – Expenses Guide which explains how to enter and approve claims for expenses.

Clink link for ePay Expenses Guides

1. INTRODUCTION

1.1This policy must be followed when an employee claims expenses. It applies to staff of Portsmouth Hospitals NHS Trust (“the Trust”).

1.2The overriding principles relating to the reimbursement of expenses are that the employee, in the course of their duty, necessarily incurs the costs; they reflect actual receipted expenditure by the employee and the expenditure is consistent with standards the employee would normally apply at their own expense.

1.3Please be aware that expenses claims are under continual scrutiny by Finance and discrepancies will be passed to the Local Counter Fraud Specialist

2. PURPOSE

2.1The purpose of this policy is to enable the Trust to manage expenses which may be claimed by individuals who are undertaking travel and/or staying overnight on Trust business, notably for such purposes as attending meetings, training courses, conferences and/or in the case of medical staff, performing clinics.

3. SCOPE

3.1 This document summarises:

policy in relation to travel and related expenses

the basis on which expenses may be reimbursed

recommended best practice to ensure optimum value of public funds

3.2The Trust will withhold payment of any expenses incurred not in accordance with this policy and seek reimbursement of any invalidly paid expenses. Deliberate, negligent or repeated disregard of the process will result in action being taken in accordance with the Trust’s Disciplinary Policy/Procedure.

3.3This policy applies to all employees engaged to undertake travel on approved Trust business and related research activities. Any specific terms relating to non medical employees are referenced under Agenda for Change Terms and Conditions. The specific terms relating to medical and dental employees are referenced in their applicable Terms and Conditions of Employment.

3.4Relocation and removal expenses are covered in the Relocation Policy.

4. DEFINITIONS

 Business travel: Travel for a necessary business purpose between one workplace and another - i.e. travelling by an employee in the performance of their duties as long as the journey is not ordinary commuting or private travel.

 ePay: Application which allows employee’s to enter travel and expense claims online

 Allowable expense: A necessary, reasonable, and appropriate expense incurred for the primary benefit of Trust business and therefore permitted to be reimbursed or directly charged based on the permission of the Trust.

 Necessary expense: Minimum purchase or service required to achieve a particular business objective.

 Original Receipt: The original merchant receipt or invoice issued by the supplier or service provider to document and substantiates the business transaction. When the original receipt is not available or does not contain adequate information, credit card receipt, supplier statement, or a paid notice will be accepted.

 Reasonable Expense: An expense that is ordinary and reflects a prudent decision to incur the expense on behalf of Trust business. Not extreme or excessive.

 Substantiation: Written documentation to support an incurred business expense that includes the original receipt,documentation of business purpose, names of persons in attendance, and appropriate expense reportor voucher for the incurred cost.

5. RESPONSIBILITIES

Staff

5.1It is the responsibility of all claimants to ensure they only claim for allowable expenses and allowances actually incurred and only up to the maximum allowed by AfC terms and conditions and supplemented by the Trust’s own terms and conditions

5.2Claimants will ensure that no item being claimed is more than 3 months old. (expenses has been configured to prevent old claims.) The only exceptions are where staff are on long-term sick leave.

Line Management

5.4Managers who approve travel claims for staff will need to have had sight of the valid driving licence, insurance policy document (with class 1 business cover) and also avalid MOT certificate if applicable, to ensure that staff are adequately covered in accordance with the Policy. They will need to do this before they can approve a claim. This document check will then need to be repeated annually when staff renew the expiry dates of their documentswithin the e-Pay system.

In reviewing claims from staff it is the responsibility of line managers to ensure that items within the claim represent expenses that have been legitimately incurred or allowances, which may be legitimately claimed in accordance with this policy, including the requirement to examine receipts and other supplementary documentation provided by the claimant.

HR Directorate

5.5The Directorate is responsible for ensuring this policy is periodically reviewed, including making amendments to reflect changes in rates issued nationally.

Finance Directorate

5.6The Directorate is responsible for monitoring information from expenses to ensure that claims are being appropriately examined and only legitimate claims are being authorised for payment.

6. GENERAL PRINCIPLES

6.1The Trust’s policy is to reimburse any ‘out of pocket’ expenses which are reasonably, wholly, exclusively and necessarily incurred in the performance of duties for the Trust.

6.2In the circumstance, where expenses are incurred by a Trust employee, whilst the employee is conducting activities which are of benefit to another organisation and not the Trust, then individuals must secure reimbursement for those expenses from the outside organisation in advance of undertaking any activities. If the sponsoring organisation is prepared for the employee to travel at an enhanced standard of fare i.e. first class rail travel, then the Trust would require assurance in advance that they are willing to meet this cost.

7.TRAVEL

7.1Travel should be by the most cost effective and environmentally friendly effective means, having regard for:

Time and duration of journeys (and connecting travel)

Requirement for flexibility of itinerary

Our commitment to reduce carbon emissions

Booking as early as possible to attract discounts

7.2If an employee can find a cheaper option online the employee must notify his line manager, but no booking must be made by the employee

7.3Journeys booked will be paid directly by the Trust. Where required, a requisition must be completed showing the name of the employee(s), date of journey, place visited and the reason for the journey. A copy of the requisition must be retained by the requesting directorate.

7.4The employee is expected to book travel arrangements as quickly as possible once formal approval has been given. Any cancellation costs incurred may be recharged to the employee’s Directorate/Department.

Use of Own Vehicles

7.5The Trust is committed to a significant and sustained reduction in its carbon emissions. Use of private cars for long distance journeys will normally be the highest carbon option and is discouraged. In addition, individuals must consider health and safety implications before undertaking long journeys. Nevertheless, it is recognised that the use of private cars will often be the most cost effective option for short journeys, particularly if more than one person is travelling.

7.6Claims should provide full details of the journey including starting point, places visited en-route, the point at which the journey ended and total business mileage. Users of private cars, bicycles or motorcycles on Trust business must ensure that they have insurance for business use, that they hold a valid, clean driving licence and must ensure they accept full responsibility for their actions when driving, including due care of the vehicle and the health and safety of themselves and their passengers. Any cost associated with this will be met by the employee.

7.7Mileage incurred whilst on Trust business will be reimbursed at the rates detailed in the appropriate section of the relevant NHS Terms and Conditions of Service Handbook. (see appendix 1) or the specific terms relating to medical and dental employees are referenced in their applicable Terms and Conditions of Employment. (see appendix 2)

7.8An additional allowance per mile will be paid to all employees who take a colleague in their own car as a passenger whilst travelling on official business. The additional allowance will be paid in accordance with the standard rates detailed in the appropriate NHS Terms and Conditions (see appendix 1 & 2)

7.9A key change to note with E-Pay is that the system is set up to pay fastest route (as per the AA road time stats) between postcodes. This is not always the shortest or longest route. If claiming via a paper claim form then the shortest journey from destination A to B should be still recorded.

7.10 The cost of toll bridges and tunnels will be reimbursed if they form part of a business journey. Parking costs incurred in the course of travelling away from home and the normal place of work may be claimed. The cost of parking at your normal place of work may not be claimed. If travel by air has been agreed, then individuals should make appropriate arrangement to get to the airport in the most cost effective way for example, public transport. Parking, speeding fines and any similar charges are not reimbursable. Consideration will be given as to whether an employee receiving a parking or speeding penalty constitutes a conduct issue. If so, the matter will be dealt with in accordance with the Trust’s Disciplinary Policy.

Home to Work

7.11Journeys between home and normal place of work are regarded as private journeys and the cost of such journeys cannot be reclaimed except when required to work outside of ‘normal’ working hours. Journeys away from the Trust on business are regarded as business journeys. Your normal place of work is the start and finish location for travel claims except where it is more economical for the claim to start at your home address. For medical and dental employees there may be specific exceptions and will be referenced in their applicable Terms and Conditions of Employment.

Change of Work Base

7.12Unless superseded by a local partnership agreement, Whitely Council Agreement or referenced under Agenda for Change Terms and Conditions, staff who are required by the Trust to change their base of work will be paid the additional mileage required to be travelled over and above the previous, normal home to base mileage, if the mileage exceeds 5 miles per single journey, for a period of up to 12 months from the date of transfer. This payment will not apply to staff that are contracted to change work bases.

8.AIR TRAVEL

8.1If it is more cost efficient to do so, air travel may be considered. Prior approval from your Director should be sought. Budget airlines should be used in preference to full-fare airlines where there is a choice of carriers. First class air travel should never be used for business purposes.

9.RAIL TRAVEL

9.1Advantage must where possible be taken of all types of ‘discounted’ tickets, including any discounts that may be obtained through the use of railcards. Individuals should notify their manager to make them aware that they possess such a discount when contacting them to arrange their travel. Journeys at the Trust’s expense should normally be standard class. Costs or savings made as a result of holding a discount railcard will not be reimbursed.

10.TAXIS

10.1The cost of taxis will be reimbursed if this is the cheapest or most appropriate means of reaching your destination. For example, this may be when public transport: is unavailable, either very early in the morning or late in the evening; and/or would add significantly to the journey

11.CYCLING

11.1In order to help reduce the Trust’s ‘Carbon Footprint’, eco friendly methods of travel are actively encouraged. Cycling where ever reasonable practicable is a useful way to achieve this. Any mileage covered using the employee’s own bicycle will be paid in accordance with the standard rates detailed in the appropriate NHS Terms and Conditions. (See appendix 1 & 2)

12.ACCOMMODATION

12.1The Trust will reimburse reasonable accommodation and meals on production of receipts. (see appendix 3)

12.2All accommodation may be booked through the Procurement Team, who can be contacted via the Supplies Department (current extension number available on the Trust Intranet telephone directory) (For M&D staff see Schedule 21 – Expenses)

12.3Items of a personal nature, such as, alcoholic mini bar items, pay per view TV, etc, will not be reimbursed. Where these are included in the bill, the costs must be deducted prior to submission of the bill for reimbursement.

13.SUBSISTENCE

13.1Any costs incurred for meals, etc., whilst on Trust business will be reimbursed at the rates detailed in the appropriate section of the relevant NHS Terms and Conditions of Service Handbook. (see appendix 3)

14.OVERSEAS TRIPS

14.1Where accommodation and meal costs are claimed for visits abroad, authorisers will need to satisfy themselves of the reasonableness of claims. When working outside the UK, incidental expenses may be claimed with receipts to the appropriate level contained in the appropriate section of the relevant NHS Terms and Conditions of Service Handbook. Details of the Trust’s insurance arrangements are available from the Company Secretary.

15.SPOUSE /PARTNER TRAVEL & HOSPITALITY

15.1The Trust will not reimburse expenses incurred by a spouse or partner accompanying an individual on business travel. The employee must reimburse the Trust for any tickets purchased through the Procurement Team and any other costs paid by the Trust for a spouse or partner travelling with you.

16.SUBSCRIPTIONS

16.1The Trust does not permit payment, either by reimbursement or direct from the service, of employee’s personal subscriptions to professional organisations and clubs.

17.TELEPHONE EQUIPMENT

17.1Reimbursement of telephone expenses shall only be made where the Trust considers that it is essential for the efficiency of the service that the employee should be available outside normal working hours and the telephone is the only practicable method of communication in these circumstances.

17.2 It is recognised that employees who need to be contacted at short notice i.e. Directors, medical staff and other non-medical employees with on-call commitments, may require the use of a mobile phone. In such cases provision will be made for these employees to be provided with a Trust mobile telephone or pager, in accordance with the Trust’s Telecommunications equipment policy or may reimburse the fixed line telephone rental costs until the requirement for the fixed line telephone line no longer exists. The cost of the line rental is treated as earnings, because the employee benefits from having access to the telephone for private use and is therefore taxable.

17.3Personal mobile phones should not normally be used to make business calls. Mobile phone tariffs can be complex and it is not always easy to determine the actual cost of a business call. Some tariffs include a certain amount of free time in the rental charge. In these cases there may be no cost in the itemised bill to be claimed. Any itemised costs incurred for telephone calls relating to Trust business whilst on Trust business will be reimbursed. Personal calls made during time away on Trust business will not be reimbursed.

18.STUDY LEAVE

18.1The Trust has discretion to grant payment or part payment of:

course and conference fees travelling expenses (where the use of the reserve rate is not applicable, then car mileage at the reserve rate may be considered)

subsistence allowances (paid at the current rate, excludes alcoholic drinks)

examination fees

18.2All study leave expenses for M&D staff will be paid in accordance with the Trust’s Management & Reward Framework for Consultants – Schedule 18.

19.RELOCATION

19.1The Trust has discretion to grant payment or part payment of relocation expenses. This will be subject to agreement and in line with the Relocation Policy.

20.INTERVIEW EXPENSES

20.1 The Trust has discretion to grant payment or part payment of interview expenses.