Expenses Policy for Non-employees

This policy sets out the rules and key principles in relation to the incurring, claiming, approving, and processing of expenses for non-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). Any permitted exceptions to this policy are set out in the Finance Procedures Manual, Non-employee expenses procedures (FPM5c).

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
• the University’s insurance requirements to ensure that the University maintains its duty of care to the public
• the University policies on Anti-Bribery and Corruption, Anti-slavery and Anti-trafficking, and Sanctions
• the HR Visitors Agreement

This policy applies to anyone who is not employed by the University of Cambridge, but who has incurred expenses as part of their interaction with the University. University of Cambridge students are included in this policy as are individuals holding a worker’s contract. It applies to reimbursement of actual costs incurred or a per diem if agreed.

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

This policy is owned by the Director of Finance on behalf of the University Council.

Heads of Institution are responsible for ensuring that all expense claims are in line with this policy, its annexes, and the related information contained in FPM5c. 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.

It is the responsibility of all institutions to communicate clearly with individuals prior to their engagement with the University regarding the University’s overarching Non-employees Expenses Policy, with emphasis on the key principles

• what is or is not claimable
• rates and spending limits
• required proof of expenditure (for example, receipts, tickets)
• procedure for claiming, including time frames

Approvers must ensure they have sufficient authority to approve all items within the claim, and these permissions are included in their institution 

Delegated Authority document. Approvers must declare any potential conflicts of interest as per their institution’s policy.

Claimants must ensure that all information is accurate, appropriate and in accordance with the guidance provided.

Best use of University funds

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

Where practical, institutions must book accommodation and travel directly with the supplier and pay via an invoice. 

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

• the expenditure is the best way of achieving the objectives
• 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.

The exception to this is for research participants where a reasonable payment for inconvenience is allowable.

Business purposes only

Expenses may only be reimbursed where the costs are directly associated with, or have arisen because of, the engagement with the University. All visits must have an agreement in place. The University will not reimburse any interest charges or other penalties incurred, unless it can be shown that the University caused an unnecessary delay in processing the claim.

Value for money

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

Safety and security

Individuals 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

Individuals 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 individuals for legitimate expenses incurred. Any costs that lead to them, their family or friends gaining a financial or other material benefit will not be reimbursed.

Individuals 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, or their own employer. They may claim the difference between the total allowable spend and what the third party is prepared to pay.

All claims must be submitted via the relevant system where available. For some categories of non-employees, forms approved by the Finance Division may be used. These are outlined in the non-employee categories table.

Non-employee expense claims are expected to be submitted within 1 month of date of the expenditure incurred. For practical reasons, institutions may agree to a later deadline with the non-employee but must ensure timely accounting.

Expense claims will be paid into the individual’s personal bank account. Where the individual wishes their expenses to be paid into their organisation’s bank account, the organisation must raise an invoice for these costs to the University of Cambridge.

Exceptionally, research participants may be paid in cash, vouchers, or pre-paid card. In these cases, additional controls and security will be needed.

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 be considered fraudulent and result in formal proceedings.

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

• The annex to this policy lists the identified categories of non-employees, provides guidelines for rates, and gives examples of expenses that are appropriate to incur.
• The Financial Procedures Manual, Chapter 5c, Non-Employee Expenses, expands on the policy and gives detailed information for administrators regarding procedures and tax treatment.
• Institutions are to ensure non-employees are aware of and comply with the University policy Against Bribery, Corruption and Fraud and Anti-slavery and Anti-trafficking Policy.
• The Guidelines for Sustainable Business Travel lists considerations relating to the environmental impacts of travel.
• Guidance for visitors using Concur for reimbursement of expenses. Institutions can find administrative guidance in the Using Concur section.
• Cambridge Casual Workers System: information for institutions.
• For queries contact the UFS helpdesk.

• Throughout: 
  • inclusion of sustainable travel guidelines and the use of virtual meetings where appropriate
  • links updated
• Scope: revised sentence structure with no material changes
• Key principles
  • Key principle 1: combined two bullet points to avoid repetition on the Best Use of University Funds
  • Key principle 3: Removed sentence "All visitors must have an agreement in place" as this may not always be the case
• Accommodation
  • removed the two tier rates depending on location and replaced with one flat rate of £140 per night based on staying in Cambridge
  • included staying with friends and family as an allowable expense
  • removal of the paragraph relating to Airbnb and unregulated accommodation
• Subsistence rates aligned with Exmployee Expenses Policy
• Student and casual worker status: clarification of the categories for visiting students and interns as casual workers.