5.1 Business Expenses

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This online version is for convenience; the official version of this policy is housed in the University Secretariat. In case of discrepancy between the online version and the official version held by the Secretariat, the official version shall prevail.

Approving Authority: Board of Governors

Original Approval Date: June 25, 2015

Date of Most Recent Review/Revision: November 14, 2024

Office of Accountability: VP: Finance and Administration

Administrative Responsibility: Office of Financial Resources

1.00 Purpose

1.01 The purpose of this policy is to provide a framework of accountability and transparency to guide the effective oversight and use of public resources and business expenses.

2.00 Definitions

2.01 Arm’s Length Transaction: refers to a situation where the parties involved in the transaction act independently and without any relationship or influence over each other that could sway the terms of the deal. It ensures that the transaction is conducted fairly and objectively, as if the parties were strangers.

2.02 Broader Public Sector (BPS): BPS refers to the organizations that receive funding from the Government of Ontario, they are not, however, a part of the government itself (e.g. hospitals, universities, colleges, and school boards). The BPS Accountability Act establishes the requirements in the areas of compensation, expenses, perquisites, business documents and procurement directives; designated to improve accountability and transparency across the BPS.

2.03 Business Expense: an expense incurred during the course of University Business or research activities for which the funds are intended. This includes research expenses.

2.04 Claimant: any individual or organization claiming a Laurier Business Expense for reimbursement or through use of a Laurier Corporate card.

2.05 Consultant: any individual or entity providing professional expertise or strategic advice or related services for consideration and decision-making, even if it is free.

2.06 Contractor: Any person(s) providing services or goods to the University under a contract or other agreement not paid as an employee through the University’s payroll system.

2.07 Employee: A person who performs work for wages in any capacity for the University.

2.08 Member(s) of the University Community: Persons who currently live, work, or study on any Laurier campus. Members include students (including student groups), Employees, adjunct and visiting faculty, and volunteers (including Board Members) at Laurier.

2.09 Out-of-Pocket: an expense paid for with a Claimant’s personal funds.

2.10 Signing Authority: Policy 5.7 Signing Authority identifies the individual(s) within the University with authority to review, recommend and sign a contract that commits the university to a legal relationship and contractual obligations or benefits. Individuals with Signing Authority are set out in Section 3.0 of Appendix A: Procedures for Signing Authorities for Contracts.

2.11 University Business: the various administrative, financial, and operational activities and functions that support the overall mission, values and vision of the university.

3.00 Jurisdiction/Scope

3.01 This policy applies to all individuals incurring Business Expenses while carrying out University Business from all funds administered by the University irrespective of payment method. Such individuals include Members of the University Community, Consultants, Contractors and others.

3.02 This includes all reimbursements including but not limited to Out-of-Pocket expense reimbursements, direct pay invoices and university provided purchasing and travel & entertainment corporate credit cards.

3.03 In the presence of external funding agency regulations, the funding agency regulations will take precedence; recognizing that where a funding agreement is silent on a subject, Laurier policies and procedures will apply.

4.00 Policy

4.01 Laurier is part of the Broader Public Sector (BPS) of Ontario, and subject to the rules that govern accountability and transparency for the BPS, as set out in legislation and in directives issued under legislation. These rules and principles apply to all expenses, regardless of the source of funds, incurred while conducting University Business.

4.02 As a publicly funded institution, Laurier endeavors to use its resources prudently and responsibly, with a focus on accountability and transparency.

4.03 The University and individuals claiming, reviewing or approving Business Expenses have a responsibility to ensure that expenses incurred are a necessary, effective and economical use of university resources as per the Expense Handbook.

4.04 For an expense to be eligible, it must:

Be in accordance with federal and provincial legislation.
Align with Laurier’s values, vision and mission.
Support objectives and contribute to the business or research activities for which the funds are intended.
Not result in personal gain and be an Arm’s Length Transaction (no conflict of interest).
Include sufficient supporting documentation and approvals as per the Expense Handbook and Signing Authority Policy (5.7).
Adhere to Laurier policies and procedures, in addition to applicable funding source restrictions.
External research funds must not be used to support expenditures when Laurier provides the same or similar expenditure free of cost to Employees.

4.05 All expenditures require approval in alignment with the Signing Authority Policy. See Expense Handbook for details on who can submit an expense and how. For details on reimbursement of Board of Governors expenses see Board Members Expense Reimbursement Procedures.

4.06 All Contractor and Consultant engagements must follow the Signing Authority Policy and allowable expenditures must be clearly outlined in the contract to be eligible. See Expense Handbook for details.

4.07 The Claimant is responsible for confirming that the relevant Signing Authority is aware and in agreement with the intended expenditure(s) in advance; Claimant should ensure they understand Signing Authority’s expectations before incurring an expense.

4.08 Researchers must operate in compliance with the relevant agency guidelines. No one may initiate or authorize expenditures from a research fund without the authority of the researcher or their delegated authority. Laurier has the right and responsibility to withhold and withdraw approval of expenses that contravene the Agency’s policies.

4.09 All Members of the University Community who incur and/or approve travel and related expenses should be aware of the policies and procedures the University has adopted herein prior to initiating any travel or related expenses. For details, see Expense Handbook.

4.10 Exceptions
Exceptions to BPS legislation are not permitted. In instances where an exception to Laurier’s expense
guidelines may be appropriate, the approver shall document the situation and other factors to support a deviation from the guidelines.

4.10.01 If the approver is uncertain or believes the claim isn’t appropriate, they may consult with Accounts Payable who if needed will obtain an approval from the level three (3) or four (4) Signing Authority. If the situation requires further review, the Assistant Vice President (AVP), Financial Resources will review and determine if approval will be provided. For research claim exceptions, an additional approval from the AVP, Research is required.

4.10.02 Expense claims must be accompanied by the exception request, which provides the details of the exception, supporting documentation, and all required approvals as per the Expense Handbook.

4.11 Noncompliance
Noncompliance will result in rejection of an expense. Payment does not, in itself, constitute ultimate
approval of an expense and may be subject to subsequent audit adjustment. Appropriate investigation and consultation will determine the course of action should fraud or misappropriate use of funds be confirmed. See 5.18 Fraud Policy for details.

Relevant Legislation

Broader Public Sector Accountability Act