CRICOS No. 00213J a university for the world real R FINANCE ESSENTIALS PART 2 Session 2 TRAVEL PROCESSES

CRICOS No. 00213Ja university for the worldrealR

FINANCE ESSENTIALSPART 2

Session 2

TRAVEL

PROCESSES


Presenters

Tracey Hodgkin, Manager,

Accounting Operations

Vesna AteljSupervisor,

Accounts Payable


Objectives of Session

• Provide an overview of the processing of Travel claims from an Accounts Payable perspective

• Gain an understanding of Travel Policy and Procedures• Provide some general information on how to process

travel claims and terminology used

• Provide basic guidelines for claiming expenditure

• Outline how to find information on the FRP website• Reporting requirements of Travel


Travel: Basic Guidelines

All Travel must be approved prior to any travel being undertaken

Staff travelling Overseas to complete the

Overseas Travel Application form

Staff and Student Travel Overseas Protocol – can be found at the DAS website at:

http://www.das.qut.edu.au/information/ostravel/index.jsp


Travel: Policy & Procedures

•Manual of Policy and Procedures (MOPP) - G/5.5 Travel policy

http://www.mopp.qut.edu.au/G/G_05_05.jsp

•Financial Management Practice and Procedures Manual (FMPPM) - Chapter 3(C) - Travel Approval and Bookings

http://www.frp.qut.edu.au/services/policy/financial_management_manual/chapter3/chapter3c.jsp


TRAVEL: CLAIMS

There are several ways that a claim can be made for Travel.

They include:

Travel

Allowances PDL LAFHA

Advances

Reimbursements


TRAVELALLOWANCES


Travel: AllowancesWhat are you entitled to?• The ATO publishes agreed rates each financial year. These rates

are the MAXIMUM allowance that can be paid to a person without taxation implications.

http://law.ato.gov.au/atolaw/view.htm?Docid=TXD/TD201019/NAT/ATO/00001&PiT=99991231235958

NB: However, it is very important to note that these are just guideline rates which can be modified as a faculty or division determines to meet budgetary or business requirements.

DO YOU NEED TO RECONCILE OR REFUND AN ALLOWANCE?

NO – allowances do not need to be reconciled or refunded if not fully spent.


Travel: How to Claim Allowances

• Travel allowances are claimed by completion of the On-Line Payment Claim Form found on the FRP website. The form needs to be completed and submitted with the correct documentation.

http://www.frp.qut.edu.au/forms/

AP PROTOCOL:

Accounts Payable generally hold all travel allowance claims until around two weeks prior

to the departure date. Any claims sent in to AP in advance of travel date will be held.


Travel Allowance: Documentation

• What to send with the Claim:

For International or Domestic Travel Allowance claims include : Reimbursement claim form Travel calculator Airline itinerary Conference registration (if applicable) Travel approval if travel exceeds 6 nights, a Travel Diary Conference registration fees

(To be scanned as one document in the above order).


Travel: How to work out an Allowance

The Travel Calculator makes up part of the on-line payment claim form

When the correct information is entered into the form, it automatically calculates the payment due depending upon whether it is for accommodation, meals, sundries or a combination of all of these

The following demonstration outlines the process for completing a Travel Allowance Claim form:

Filling out the Travel Allowance Claim:Step by Step Guide: How to Process and Claim a Travel Allowance claim (pdf document)

PDF Document available at FRP website at:http://www.frp.qut.edu.au/services/training/PayablesOnline/guides.jsp


Travel: What to deduct from an Allowance claim


Travel: What is an IncidentalIncidentals claims need to be guided by the Australian Tax Office’s definition –

Incidentals cover expenses that are reasonable and would be considered deductible

This means that any expenses that are being claimed as ‘incidentals’ that would be unable to be claimed as genuine business expenses in a general tax return, cannot be reimbursed as incidentals.

YES:Some common expenses considered claimable are:otaxi fares (if other modes of transport were not available and it was reasonable to take taxis)olaundry expenses (where the length of stay justifies clothing needing to be laundered)

NO:Such uncommon expenses considered not claimable are:•headache medication, books to read while waiting at the airport, toothpaste, cough medicine The reasonable amount paid as incidentals applies in full to each day of travel covered by the allowance, without the need to apportion for any part-day travel on the first and last day.

ATO _ Tax Determination TD-2009/15 (http://law.ato.gov.au/pdf/pbr/td2009-015.pdf)


Travel: Payroll Tax

Does a travel allowances attract Payroll Tax?

YES

An allowance is considered to be like a salary payment to an individual and so is subject to tax

Payroll tax is a state tax and is currently 4.75%

All travel allowances are uploaded at the end of each month and charged to account 5002 (Payroll Tax)

Travel allowances are not subject to FBT

NB: Travel advances and reimbursements do not attract payroll tax


TRAVELALLOWANCES –

PDL


Travel: PDLWhat is PDL & what are the types of PDL?• Professional Development Leave (PDL) - funds allocation for travel trips

both up to and in excess of 21 days. Approval of PDL is managed in two ways:

University Committee: Academics (http://www.hrd.qut.edu.au/staff/benefits/pdl/) Professional (http://www.hrd.qut.edu.au/staff/benefits/pdp/)

Faculty/Division

Types of PDL: Long - travel trips in excess of 21 days

Short – travel trips up to an including 21 days


Travel: PDL

Components of PDL:

University Committee & Faculty/Division Approved

Travel Allowance (meals and incidentals) (via Payroll) Other Travel Costs include:

• Airfares

• Accommodation

• Ground Transport

• Conference Registration Fees

All Travel costs are processed via Invoice IT via a Reimbursement Claim form

PDL Travel Allowances components in excess of 21 days for staff to be processed via Payroll


PDL: How to Claim Travel Costs

• PDL Travel costs are claimed by completion of the On-Line Payment Claim Form found on the FRP website. The form needs to be completed and submitted with the correct documentation.


AP PROTOCOL:

Accounts Payable generally hold all PDL travel claims until around two weeks prior



PDL: Travel Cost Documentation

• What to send with the PDL Travel Costs Claim:

For International or Domestic PDL Travel claims include : Reimbursement claim form Letter of Offer from HR or Faculty/Division Airline itinerary if travel exceeds 6 or more nights, a Travel Diary Additional travel calculator amount Conference registration fees



PDL: Claiming the Travel Allowance

PDL travel allowances for staff are claimed and processed by the Payroll Dept

are require the completion of the following documents:

• Letter of offer (HR website)

• HR employee engagement forms (HR website)

Forms are available from the HR website at the following address:

http://www.hrd.qut.edu.au/hrinfo/hrforms/

All Travel Allowance claims to be sent to Payroll for processing


Travel: PDL ReportingProfessional Development Leave Travel Reporting Requirements:

Staff:

Domestic Faculty/Division level ReportInternational: VCAC Quarterly Int’l Travel Report

Annual Report

Students/Visitors:


Note: Committee approved PDL has its own reporting guidelines


TRAVELALLOWANCES –

Living Away from Home (LAFHA)


Travel: LAFHAWhat is LAFHA? Living Away from Home (LAFHA) – travel trips where continuous travel or

requirement to live away from home for period in excess of 21 days.

Who can claim LAFHA?o Staff o Students or Visitors

How to Determine LAFHA? The LAFHA Decision Tree provides guidance on determining whether a

claim is a LAFHA claim or a Travel claim

http://www.frp.qut.edu.au/services/taxation/fbt/living_away.jsp


Travel: LAFHAComponents of LAFHA:

Travel Allowance (accommodation and meals) (via Payroll) Other Travel Costs include:

• Airfares

• Ground Transport

• Conference Registration Fees

All Travel costs are processed via Invoice IT via a Reimbursement Claim form LAFHA Travel Allowances for students and visitors processed via InvoiceIT

LAFHA Travel Allowances in excess of 21 days for staff to be processed via Payroll.

Living Away from Home Allowance (LAFHA) info available at:http://www.frp.qut.edu.au/services/taxation/


LAFHA Decision TreeIs the Visitor an Academic or employee?

Is the Academic or employee acting in the

capacity as an employee?

i.e. Lecturing, research, teaching and

learning activities(If Yes, must be paid

via payroll)

Is the Visitor a Student?

(If student is also employed by QUT answer No to this

question)

YesNo

No

Is their stay greater than

21 days?

Yes

No

Is this person acting in the

capacity as an employee?

YesNo

Yes

Not LAFHANeed to identify nature of payment:•Scholarship or prize Code as ‘5511’ or ‘5512’ •Consultant Code as ‘4304-4309’ •Contractor Code as ‘4320-4321’•Travel Payment Code as ‘5306’or ‘5307’

NoYes

For further information and a calculation on

reasonable limits > CLICK HERE

Cannot pay LAFHARefer to rules for

contractorshttp://www.frp.qut.edu.au/services/taxation/empvscont.jsp

To be paid via PayrollMust Complete:•Letter of offer•LAFHA Declaration•HR employee engagement forms

To be paid Via Accounts Pay. Code as ‘5306’ or ‘5307’Travel Allowance (< 21 days) http://www.hrd.qut.edu.au/staff/salary/allowances/Must complete:- Letter of Offer- Reimbursement claimLAFHA (>21 days) Must complete:- Letter of Offer- LAFHA Declaration - Reimbursement claim

This is a LAFHA Payment.Are they being remunerated and paid via QUT payroll?

No


LAFHA: How to Claim Travel Costs

• LAFHA Travel costs are claimed by completion of the On-Line Payment Claim Form found on the FRP website. The form needs to be completed and submitted with the correct documentation.


AP PROTOCOL:

Accounts Payable generally hold all LAFHA travel claims until around two weeks prior



LAFHA: Travel Cost Documentation

• What to send with the LAFHA Travel Costs Claim:

For International or Domestic LAFHA Travel claims include : Reimbursement claim form Letter of Offer from HR or Faculty/Division Airline itinerary Conference registration details if travel exceeds 6 or more nights, a Travel Diary LAFHA Declaration form



LAFHA: Claiming the Travel Allowance

LAFHA travel allowances for staff in excess of 21 days are claimed and

processed by the Payroll Dept are require the completion of the following

documents:

• Letter of offer (HR website)

• LAFHA Declaration (HR website)

• HR employee engagement forms (HR website)

Forms are available from the HR website at the following address:

http://www.hrd.qut.edu.au/hrinfo/hrforms/

All Travel Allowance claims to be sent to Payroll for processing


Travel: LAFHA ReportingLiving Away from Home Travel Reporting Requirements:

Staff:


Annual Report

Students/Visitors:



TRAVELADVANCES


Travel: AdvancesHow to Claim

• A Travel advance is claimed by completion of the On-Line Payment Claim Form found on the FRP website. The form needs to be completed and submitted with the correct documentation.



Travel: Advance Documentation

• What to send with the Advance Claim:

For International or Domestic Travel Advance claims include : Reimbursement claim form Airline itinerary Conference Registration Fees Accommodation booking (if applicable) Travel approval PDL Letter of Offer from HR (for approved PDL) (accommodation

component)

(To be scanned as one document in the above order)


Travel: Advance Reconciliation Process

Unspent funds need to be refunded via QUT Pay.

Copy of QUT Payment Advice to accompany reconciliation

DO YOU NEED TO RECONCILE OR REFUND AN ADVANCE?

YES – advances need to be reconciled or refunded if not fully spent.

NB: Staff should be aware that failure to provide reconciliation can result in the amount of the advance being claimed from their pay. This is because the onus is on the staff member to prove that they spent the funds as they were meant and if that cannot be done, QUT is entitled to recoup monies. [refer FMPPM - Chapter 3(B) – Advances against expenses -3(B).9.


Travel: Reconciling AdvancesReconciling an Advance is one part of the on-line payment claim form process – Travel Advance Reconciliation Form

When completing a Travel Advance Reconciliation form you will need all your expenditure receipts and invoices and exchange conversion data to complete the form

The following demonstration outlines the process for completing a Travel Advance Reconciliation form:

Filling out the Travel Reconciliation Form:Step by Step Guide: How to Process and complete a Travel Advance Reconciliation form (pdf document)

PDF Document available at FRP website at:http://www.frp.qut.edu.au/services/training/PayablesOnline/guides.jsp


TRAVELREIMBURSEMENTS


Travel: ReimbursementsHow to Claim

Travel Reimbursements are claimed on: return travel and presentation of all receipts, invoices and statutory declarations

• Reimbursement is claimed on completion of the On-Line Payment Claim Form found on the FRP website. The form needs to be completed and submitted with the correct documentation. On return travel and presentation of all receipts is required



Travel: ReimbursementDocumentation

• What to send with the Reimbursement Claim:

For International or Domestic Travel Reimbursement claims include : Reimbursement claim form Valid receipts Currency conversion where transactions are international Valid tax invoices as well as receipts for proof of payment of an invoice Phone bills where applicable Statutory Declaration (if applicable – where no receipt or invoice)

(To be scanned as one document in the above order)


Travel: Claim Timeframes Timeframes for processing a claim

$ limits of processing a claim

Individual claims under $10 will be referred to the AP Supervisor for reasonableness

No receipts – how to claim

Lost or no receipt - a Statutory Declaration must be completed. This can be found on the FRP website:

http://www.frp.qut.edu.au/forms/documents/Qldstatdec.pdf

There are no exceptions to this rule

All claims should be received within the calendar year the expense was incurred No claims processed over 12 months old

(claims over 12 months old need to seek approval from the Manager, Accounts Payable and Receivable and may be declined – case by case basis)

The onus is on the staff member seeking reimbursement to do so in a timely manner


Travel: Claim TimeframesWhen can make a Travel Claim for an Allowance or Advance:

• All claims for either Domestic or International travel for an Allowance or Advance must be made PRIOR to the claimant travelling.

• Claims made AFTER the claimant’s travel trip, will require approval by the Manager, Accounts Payable and Receivable and may be declined (case by case basis)

When can you make a Claim for a Travel Reimbursement:

• All claims for Travel reimbursements for either Domestic or International travel can be made AFTER the completion of the claimant’s travel trip

.


Travel: Meals (not included in Allowance)

• When a staff member claims for personal meals whilst on QUT business:– these costs should be coded to 5300 or 5301 (Travel codes)

• However, if the staff member entertains someone else whilst on QUT business, this is classified as hospitality and: – these costs should be to 5531 or 5532 (Hospitality codes)

FBT Applies to these transactions

NO FBT Applies to these transactions


Travel: Tips & Gratuities

Tipping and giving Gratuitious payments is considered a personal expense and is not an allowable reimburseable expense

Exceptions:• USA• CANADA

(These are the only generally accepted tipping countries - where the

local custom deems tipping to be standard practice)


Travel: 50% Travel PolicyManual of Policy and Procedures (MOPP) – Chapter G/5.5 Travel Policy

5.5.3 Travel costs to be paid by staff

When a staff member is absent for a single period, including weekends, which encompasses business and private purposes and travel costs are incurred by the University, the staff member will normally pay 50% of the travel costs (normally 50% of airfares charged to QUT) when absence for private purposes is 50% or more of the total period of absence.

In certain cases, where the dominant purpose of the travel is for business, and the absence for private purposes exceeds the absence for business travel, application may be made to the Corporate Finance Director for exemption from the above charge.

This needs to be returned via the QUTPay portal:

A copy of the QUT Payment Advice to be emailed to Accounts Payable at [email protected]


Travel: Business Class &Accompanying Persons

Business ClassManual of Policy and Procedures (MOPP) – Chapter G/5.5 Travel Policy

5.5.1 Air TravelClasses of travel for members and Council members:


Accompanying PersonsManual of Policy and Procedures (MOPP) – Chapter G/5.5 Travel Policy

5.5.6 Accompanying persons' travel expenses


QUT will not normally pay for Accompanying traveller’s except in exceptional circumstances where it can be demonstrated that there is a benefit to QUT. This exceptions need to be approved by the Vice-Chancellor or a Senior staff member at Level SSG6


Travel: FRP WebsiteWebsite link: http://www.frp.qut.edu.au/


QUESTIONS

INFORMATION


END OF SESSION

THANK YOU

FOR

YOUR

ATTENDANCE

CRICOS No. 00213J a university for the world real R FINANCE ESSENTIALS PART 2 Session 2 TRAVEL PROCESSES

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CRICOS No. 00213J a university for the world real R FINANCE ESSENTIALS PART 2 Session 2 TRAVEL PROCESSES

Text of CRICOS No. 00213J a university for the world real R FINANCE ESSENTIALS PART 2 Session 2 TRAVEL...