Employee Expenses Policy

This policy sets out the rules and key principles in relation to the incurring, claiming, approving, and processing of expenses for employees.

As a charitable organisation the University has an obligation to ensure all funds are spent in a reasonable and cost-effective manner. This policy is designed to ensure clarity and consistency of application across the University. 

Compliance with this policy is mandatory, in accordance with the University’s Financial Regulations 11.2 (Section D, Income and Expenditure) and 31.3 (Section J, Salaries and Staff Appointments). Any permitted exceptions to this policy are set out in the Finance Procedures Manual, Chapter 5b Employee expenses procedures.

In addition, the processed claims must also comply with:

• research sponsors’ or funding bodies’ terms and conditions where they are more prescriptive than those of the  University
• tax legislation
• insurance requirements to ensure that the University maintains its duty of care to its employees
• the University policies on Anti-Bribery and Corruption, and Anti-slavery and Anti-trafficking

This policy applies to all employees of the University of Cambridge, working under a contract of employment, including employees on international assignments.

This policy applies to all University funds, regardless of source.

This policy is owned by the Director of Finance on behalf of the Finance Committee.
Heads of Institution are responsible for ensuring that all expense claims are in line with this policy, the Annex: How to apply the policy, and the related information contained in FPM5b. They may delegate approval tasks, in writing, but they remain accountable for decisions taken by their approvers.

Institutions are required to include expense claims authorisation and chain of approval within their Delegated Authority document, which contains a register of authorised signatories and their authorisation levels. The chain of approval must ensure that:

• approvers cannot approve their own expense claims
• claims must always be approved by an employee senior to the claimant, unless specific approval has been delegated by the Head of Institution

The Delegated Authority document must be made available to the Finance Division upon request.

Approvers must ensure they have sufficient authority and permission to approve all items within the claim (that is, under their institution Delegated Authority document).

Claimants must ensure that all claims are accurate, appropriate and in accordance with this policy and the related annex. 

All expenses must be incurred in accordance with the following five key principles:

Best use of University funds

Expenses are only to be incurred and reclaimed by employees, where:

• the expenditure is the best way of achieving the proposed objectives
• where practical, institutions must book accommodation and travel or other expense directly with the supplier and pay via an invoice 
• appropriate prior authorisation has been given
• they comply with research sponsors’ and funding bodies’ terms and conditions if these are more prescriptive than this policy

Evidence of expenditure

Only actual and evidenced costs are reclaimable. Receipts are the principal evidence of expenditure and, if available from a supplier, must be provided. If a receipt is not available, alternative evidence will be required for all items £5 or more.

Business purposes only

Expenses may only be reimbursed where the costs are incurred wholly, exclusively, and necessarily during University business. Where business costs are charged to an employee’s personal payment card, the University will not reimburse any interest or other penalties incurred.

Value for money

The University’s resources are to be used responsibly, and all claims must represent value for money regarding:

• Safety and security - employees should expect to travel and be accommodated in safety with reasonable comfort. When deciding whether an expense is appropriate, consider factors such as location, time, and duration
• Cost effectiveness - individuals are expected to choose, and institutions expected to fund, the cost option consistent with the University’s principles and policies on safety, security, and sustainability
• Sustainability - employees are encouraged to consider environmental impacts. Typically, this will involve an election to travel by public transport in preference to a car or short haul flight. Institutions should recognise that this may result in using a more expensive form of travel

Reimbursement, not reward

The purpose of the policy is to reimburse staff for legitimate expenses incurred. Employees must avoid incurring any costs that lead to them, their family or friends gaining a financial or other material benefit.

Employees must not claim reimbursement for expenses from the University where they are expecting to be reimbursed by another party, for example, a sponsor or conference organiser. They may claim the difference between the total allowable spend and what the third party is prepared to pay.

Claims must be submitted via the Concur system approved by the Finance Division.

Claims for out-of-pocket reimbursements, for example paid for using a personal payment card, must be submitted no later than three months from the date the expenditure was incurred. Where a long trip prevents this, claims must be submitted within one month of returning.

Claims for transactions on a University credit card must be submitted within one month of the expenditure being incurred.

Any deviations from the policy must adhere to the key principles and be authorised by the Head of Institution. A record of the extenuating circumstances must be kept for audit purposes.
Serious and intentional breaches of this policy may result in disciplinary proceedings or be considered fraudulent.

Failure to adhere to this policy may result in reimbursement being delayed or refused.

This policy is non-contractual and therefore can be withdrawn or modified at any time.

The Annex to this policy provides additional information for claimants, setting out details of expenses that are appropriate to incur whilst on University business.

The Financial Procedures Manual, Chapter 5b, gives further information and possible tax implications.

The University policies on Anti-Bribery and Corruption and Anti-slavery and Anti-trafficking must be observed.

All institutions are required to complete the Delegated Authority document, ensure it is up to date and reviewed on an annual basis.

The Guidelines for Sustainable Business Travel lists considerations relating to the environmental impacts of travel.

For queries contact the UFS helpdesk