The Deputy Governor’s Office has on Friday, 19 July, 2013 released a comprehensive policy on travel by civil servants.

In its own words, the 17-page document aims to implement service-wide standards, with regards to assessing whether travel is required, and helping to manage expenditure. It also has the full support of the Premier and Ministers.

Going forward civil servants who travel to conduct Government business, or attend events or conferences on Government’s behalf, must demonstrate that they have considered alternative means to achieve their business or training objectives.

Examples of options other than travel might include: teleconferencing, use of local resources, or online training.

The policy also sets out proposals for reducing travel-related expenses. It suggests planning airfare, transport and accommodations as far in advance as practical, and recommends the use of public transport where readily available.

Furthermore civil servants must use coach or economy class tickets on flights under five hours. Premium economy is restricted to senior managers on flights in excess of five hours, excluding layovers. Meanwhile before civil servants can travel in business class, they must establish a business case and receive prior approval.

Appropriate length of travel, per-diem allowance rates by country of travel, criteria for reimbursement, health-care, driver’s licences and automobile insurance are among other topics that the policy covers.

Commenting on the rationale behind the policy development, the Deputy Governor and Head of the Civil Service, Hon Franz Manderson states: “Our goal is to ensure that we manage the costs of official travel consistently across the Civil Service. This policy ensures that the public’s money is spent only when it is absolutely necessary.

These new rules are in keeping with our policy of ensuring value for money in everything that we do.”

Expressing support for the policy, the Premier, Hon. Alden McLaughlin, states: “The Ministers and I have already travelled in accordance with these guidelines. My Government is committed to reducing expenditure and we congratulate the Deputy Governor for developing this extremely useful document.”

OFFICIAL TRAVEL POLICY

1. 1.0 INTRODUCTION

This policy contains guidelines for official travel by Civil Servants (the “Employees”).

1.1 PURPOSE

The purpose of the policy is to implement service wide standards for:

Assessing whether travel is required; and

Managing travel expenditures.

1.2 SCOPE

This policy applies to travel where a Civil Servant has been authorised to conduct business on behalf of the Cayman Islands Government or to attend an event or conference as a representative of the Cayman Islands Government.

1.3 Review

This policy will be reviewed annually by the Portfolio of the Civil Service, specifically including the Official Travel Rate Sheet (Appendix 1).

 

This policy does not set out guidelines for hospitality and entertainment. Details of allowable and disallowable expenses are included in Appendix 4.

2. RELEVANT LAWS AND REGULATIONS

The Public Service Management Law, Personnel Regulations, the Public Management and Finance Law (as amended from time to time).

3. ASSESSING WHETHER TRAVEL IS REQUIRED

3.1.       TRAVEL ALTERNATIVES

The Cayman Islands Government is seeking to reduce the demand for  official travel by promoting alternatives to travel such as tele-conferencing, audio and/or

video  conferencing,  web  conferencing,  etc.  Departments  are  encouraged  to explore alternate means of communications to achieve the business objective.

3.2.       TRAINING

Where official travel is required to obtain training, determine whether the training can be provided through alternate means.  Is similar training available online or within the Cayman Islands? Is the identified training required for a cluster of jobs (e.g. continuing education for CPAs or similar licensed professionals, etc.)?  If so, explore whether such training can be facilitated on-island at reduced costs per participant – e.g. contact your Ministry, the Civil Service College, etc. Even without a reduced overall cost it is advantageous to CIG to retain more of the expenditure in the economy and reduce lost traveling time by Civil Servants.

There are numerous benefits of reducing official travel including the following: cost savings, faster decision making1, more environmentally sustainable operations (by virtue  of  reduced  transport  emissions),  and  increased  staff  productivity  (by reducing absence from work associated with physical travel times).2

3.3 ALTERNATE LOCATION

Where there is no alternative to face to face meetings, business partners maybe encouraged   to  travel   to  Cayman.     Although   this  may  not  decrease   the expenditure made by the Cayman Islands Government, it does retain those funds in the country.

Other locations should also be proposed to participants where that will significantly reduce expenditure or time required to complete the official travelling.

3.4 BUSINESS CASE

Having considered the above matters, the Department must justify any need to travel in order to effectively achieve their business objective, as opposed to using a travel alternative. This should be documented on the Application for Official Travel form.

4. AUTHORISATION

All  Official  Travel  must  be  authorised  by  the  Accountable  Officer  on  the

Application for Official Travel Form (see Appendix 2).

In the case of Employees appointed by His Excellency the Governor, the accountable officer is the Governor.

In the case of Employees appointed by the Deputy Governor, the accountable officer is the Deputy Governor.

In the case of other Employees, the accountable officer is the respective Chief Officer (or their delegate) and such an application should be supported by the Appointing Officer (i.e. Head of Department where this is not the Chief Officer).

Where official travel is sponsored by an external agency (eg. Commonwealth Secretariat, CDB, etc.), those sponsors may have alternate travel conditions/restrictions which are applicable.

1 JMP Consultants Limited. ‘A Review of Government Travel. Sustainable Travel Engaging the Public Sector – Main Report’ May 2009. London, England.  www.jmp.co.uk

2  http://www.dft.gov.uk/topics/sustainable/alternatives-to-travel

5. MANAGING TRAVEL EXPENDITURES

5.1.       EXPENSES RELATED TO OFFICIAL TRAVEL – PREPAYMENT

Official  travel  must  be  applied  for  on  the  Application  for  Official  Travel  Form. Airfares, accommodation, ground transportation, conference registration fees, and per  diem  expenses  set  out  on  the  Application  for  Official  Travel  form  will  be prepaid. Where expenses are being paid by a third party, they should not be included on the Official Travel Form nor claimed as an expense from CIG.  This includes  items  covered  by  the  per  diem  allowance  in  this  policy.    Applicable policies and methods of payments for these prepayments follow.

Airfares: –Travellers are encouraged to book flights at least 30 days in advance to obtain  the  lowest  available  airfare.  Airfares  should  be  prepaid  via  cheque, purchase order or using a CIG issued credit card.

Short Duration Flights:  Coach class or economy tickets must be purchased for short duration flights (i.e. flights whose duration is less than 5 hours excluding layovers).

Senior managers at or above Grade G on the Civil Service Salary Scale are entitled to fly premium economy (where available) for flights lasting 5 or more consecutive hours (excluding layovers).  Other Employees are entitled to fly Economy/Coach class  except where an  Accountable Officer has  authorised  Premium  Economy upon a valid business case.

Any  employee  on  a  flight  that  is  more  than  5  consecutive  hours  (excluding layovers) who propose to fly business class must first submit a business case for doing  so  and  obtain  the  written  approval  from  the  Chief  Officer  or  his/her designate on the Application for Official Travel Form.  Such explanations might include unavoidably commencing official business early the following morning.

The class of travel must be included on the Official Travel Form.

Ground Transport:

Public Transport Where public transport (taxi, bus, train etc.) is readily available, it should be used as the standard transport option unless there are extenuating circumstances. Where ground transport fees are anticipated to be higher than could reasonably be covered in the per diem (e.g. Airport/Hotel transfers), such items may be claimed separately from the per diem.  However; short trips such as intra-city travel of low value are treated as part of the per diem expense.

Rental Cars: In certain situations, the use of a rental car might be more practical and economical (for business purposes, rather than personal convenience) and applications may be made using the Application for Official Travel Form. Arrangements for rental cars must be made as far in advance as possible. Automobiles should be rented from internationally recognized rental agencies and travellers should purchase the Collision Damage Waiver (CDW) or Liability Damage Waiver (LDW) offered by the rental agencies. Travellers will not be reimbursed for specialty rental vehicles (e.g., luxury, sports utility, convertible, etc.) or upgrades.

Car Services:  In certain situations, the use of a car service might be more practical and economical (for business purposes, rather than personal convenience).  Where this is proposed, there should be a business case included in the Application for Official Travel.

Hotel/Accommodations: Reservations must be made as far in advance of travel as possible and room rates should comply with this policy.       The maximum rates that can be spent on accommodations are outlined in the Official Travel Rate Sheet (see Appendix 1) and are dependent on the region.  Accommodations which exceed the prescribed maximum rates require a business case.  Valid exceptions may include, for example, where a particular accommodation is linked to a conference/event venue.

Conference Registration Fees: Conference registration fees should be prepaid. Business related banquets or meals that are considered part of the conference can be paid with the registration fees but may be deducted from the daily per diem.

Per diem allowance: A fixed flat daily per diem allowance will be given to cover meals (but not bar), communication, laundry, taxi (where not prepaid as ground transport), and other miscellaneous costs identified in the Explanation of Allowable Expenses Form (see Appendix 4). The amount will be dependent on the region the employee is intending to visit (Appendix 1).   Items covered by the per diem allowance must NOT be changed to official credit cards as this amounts to double compensation.

5.2.      PAYMENT FOR EXPENSES NOT PREPAID

Occasionally it will be necessary for public servants on official travel to incur expenditure not prepaid due to emergencies, travel delays and other unforeseen circumstances. Individuals conducting official business or incurring travel costs at the CIG’s expense are expected to exercise the same care in incurring expenses as a prudent person would in spending personal funds.

Expenses not prepaid associated with the travel must be reconciled and substantiated within seven (7) calendar days of the return date. Such expenses are processed by the employee submitting a completed expense form and returning it to the Accountable Officer via the Ministry’s/Portfolio’s Chief Financial Officer. Failure to submit within the specified time will result in no reimbursement to the employee.

Reimbursements of non-prepaid expenses will be considered in line with this Policy.

Receipts must show the amount, date, place, and essential character of the expense. Employees must always save original itemized receipts to attach with your expense form for the following if they were not prepaid:

•Lodging  expenses: Hotel  receipts  should  show  separate  amounts  for lodging, meals, telephone calls, etc. A fax or email originating from the vendor will be accepted in lieu of the original receipt.

•Car rentals:  The rental agreement and itemized receipt are required.

•Airfare:  original  ticket stubs  or  invoices  should  be  provided  or  receipt copies faxed/emailed directly from the airline.

•Conference Registration Fees: original registration fee receipts must be supplied or copies emailed.

•Business meeting/banquet meals:  Restaurant receipts should be itemized and  show  location  and  name  of  restaurant  and  number  of  people served. This must be pre-approved by the Accountable Officer and the purpose must be disclosed when submitting the Expenses Claim.

Credit card statements or slips and other receipts that do not give details of purchases are not acceptable as a means of justifying expenses. Photocopies of receipts are accepted only with an explanation of why the original is unavailable. However,  credit  card  statements  can  be  used  to  substantiate  the  rate  of exchange.

All employees should review the Explanation of Allowable Expenses Form (see Appendix 4) before spending personal funds for business travel to determine if such expenses are reimbursable.

Reimbursement is allowed only when a reimbursement has not been, and will not be, received from other sources. If a circumstance arises that is not specifically covered in the travel policies, the most conservative course of action should be adopted.

5.3.       TIME ALLOWED FOR OFFICIAL TRAVEL

Wherever feasible, official travel should be conducted on normal business days and within normal business hours.   However; official travel arrangements often require traveling outside of an employee’s normal contracted hours.  The following policies apply to such requirements.

Flights over five hours: Where an employee is travelling on a flight that is more than5 consecutive hours (excluding layovers), they are entitled to arrive at the destination a day prior to the commencement of business.

Flights over seven and a half hours (including layover): Where an employee is travelling on multiple flights with a total duration of over seven and a half hours (from  the  time  of  first  departure  to  final  arrival)  they  are  may  arrive  at  the destination a day prior to the commencement of business at the discretion of the Accountable Officer.

Extended hours on official travel: Business conducted whilst on official travel can often extend beyond normal hours of work (i.e. 7.5 contracted hours).  Examples include breakfast meetings, conference socials, etc. This is an unavoidable aspect of such travel.   Overtime and time off in lieu (TOIL) do not accrue for such time spent.

Travel Required on Weekends and Public Holidays:  Where Official Travel is required during Weekends and Public Holidays, staff are entitled to TOIL on a one to one basis up to a maximum of 7.5 hours per day.

Vacation  in  conjunction  with  business  travel:  In  cases  where  vacation  time  is added to a business trip, any cost variance in airfare, car rental, per diem and/or lodging must be clearly identified and attached to the Official Travel Application form. The additional cost is the responsibility of the employee.

This also applies to persons departing earlier than required and returning later than necessary.     Approval   of  these   timeframes  is  left  to  the  discretion  of  the Accountable Officer.

6. HEALTH CARE

Inoculations – The onus is on a Civil Servant to ensure that s/he has researched the necessity  for  inoculations  during  overseas  travel  for  official  business.  Once  this necessity has been identified, such staff should coordinate with the public health division at the HSA to obtain necessary treatment.  For the avoidance of doubt, should a Civil Servant fail to be adequately inoculated, the responsibility will be theirs and not that of the Cayman Islands Government.

Health Insurance – All employees travelling on official business should carry with them their current CINICO issued health insurance card and emergency contact details.  In accordance with the terms of the provisions of Employees health insurance plan, only emergency  treatment  is  covered  without  a  prior  referral  from  the  Chief  Medical Officer.  If an employee requires emergency treatment, they should present their CINICO card to have such treatment approved by CINICO or its appointed third-party administrator.  If for any reason the employee is unable to contact CINICO during the medical emergency, they may pay for the treatment themselves and then submit a claim for reimbursement. Such claims are subject to the normal claim settlement process including CINICO’s estimation of whether such treatment was necessary and reasonable.

6. PROCUREMENT OF OFFICIAL AIR TRAVEL

All official travel must be booked through Cayman Airways (CAL) as the national airline subject to the following exceptions.   (a) Where CAL does not have available seating at the specified class of travel on the required days of travel the Accountable Officer may authorise booking the ticket through an alternate booking agent (b) Where CAL provides only some or none of the flights on the itinerary, then an Accountable Officer may exercise discretion to approve travel not flown on nor issued through CAL, where the employee has produced documented evidence with the Application for Official Travel Form that an alternative booking arrangement will save at least 10%. .

7. PERSONAL VEHICLE USAGE

The use of personal vehicles for official business can be more expensive, harder to manage and may pose greater duty of care risks than other modes of vehicle travel.

Public servants are encouraged to be cognizant of fluctuating fuel prices, congestion, and increasing costs and thus avoid or significantly reduce their usage of personal vehicles for official business, where possible.

Where the usage of personal vehicles for business travel cannot be avoided, Civil Servants are entitled to reimbursement based on the PSML (2011 Revision), Section 11 (d):

Employees who do not receive a vehicle-use compensation as part of their remuneration, a mileage reimbursement for the pre-approved use of personal vehicles for official purposes, are paid at a per mile rate of 50 cents  on  Grand  Cayman  and  53  cents  on  Cayman  Brac  and  Little Cayman.

7.1 DRIVER’S LICENSE CHECKS

Copies of driver’s license and automobile insurance must be on file if a Civil Servant intends to use his/her personal vehicle, or a rental vehicle, while on official business travel. If this information is not made available, the Government will not provide any reimbursement  for  mileage  or  any  costs  associated  with  the  use  of  a  ‘personal vehicle’.

7.2 AUTOMOBILE INSURANCE (PERSONAL AND RENTAL)

Automobile insurance is required if a personal or rental car is to be used for official business. As such, Employees must ensure that the vehicle is in roadworthy condition and must satisfy insurance conditions. It is the Employee’s personal responsibility to ensure that the required insurance conditions are fulfilled.

When an officer first uses their vehicle on official business, they must declare in writing that they:

a) Know and understand the insurance requirements;

b) Are covered accordingly;

c) Will notify the Department of any change which leaves them with less coverage than required.

The Employees must have an insurance policy that contains either a clause permitting the  use  of  the  vehicle  by  the  policy  holder  in  person  in  connection  with  his/her business, or a clause specifically permitting the use of the vehicle by the policy holder in person on the business of the employing Department.

8. INFORMATION MANAGEMENT

The availability of pertinent business travel information and data will enable CIG to identify  opportunities  for  sustainable  travel  and  to  realize  potential  benefits  of changing working practices. In particular, departments need to manage information on financial expenditure, purpose of travel and other claims for official business travel.

This will enable departments to procure travel services, manage travel, and identify opportunities for sustainable operations.

While traveling, the employee must take care to save all documents required to comply with this policy substantiating the business purpose of the travel, for example, conference registrations, agendas and programs outlining basic activities.

Official Travel Application Forms and Expense Claim Forms (Appendix 3) must be maintained on file in the shared Human Resources network drive for a minimum of 3 years for audit purposes.

9. EXCEPTIONS TO THIS POLICY

Any deviations from this policy must be identified as such and must have the approval of the Chief Officer in writing on the Application for Official Travel Form

10.  DISHONESTY

Dishonesty with regard to expense claims or other significant breaches of this policy will result in disciplinary action.

11. FURTHER INFORMATION

For further information on this policy, please contact the Portfolio of the Civil Service.

Please see attachment: CIG Travel Policy

Appendix 4

Official Travel Policy – Explanation of Allowable Expenses

Expenses can be generally categorized as follows:

•Those expenses which can reasonably be expected to be determinable prior to travel and which can therefore be prepaid; and

•Expenses which are normally only determined at the time of usage during the trip and therefore not practical to be prepaid.

ALLOWABLE EXPENSES (REIMBURSABLE IF NOT PREPAID):

The following are travel expenses that would ordinarily be prepaid in advance of travel. The list should be reviewed carefully so that you are aware of what expenses are allowed or disallowed whilst traveling.

Please note that in order for reimbursement to be authorized, proof of prior authorization to travel must be supported by the Head of Department and given by the Chief Officer or their delegate.

•Air travel -May also include change or cancellation penalties imposed by the airlines due to unavoidable circumstances (supporting documentation must be supplied with the Travel Advance Claim form);

•Lodging; most economical room rate available at the time of booking which should be at least 30 days in advance of travel;

•Registration and fees for attendance at approved conferences and seminars;

•Taxes associated with transportation, business banquets and lodging;

•Car Rental (if required as per policy) – daily rate, insurance and taxes;

•Ground transportation- Original receipts are required for taxi, bus, subway, metro and other modes of public transportation if costs are $15.00 or more for each day.

OTHER ALLOWABLE EXPENSES (COVERED BY THE PER DIEM ALLOWANCE): The following types of expenses, if reasonable and necessary, for CIG business purposes, are examples of expenses that are covered by the use of the daily per diem allowances as defined in this Policy.

•Ground transportation including taxi and public transportation fares, parking fees, and tolls;

•Laundry/dry cleaning during trips longer than five calendar days;

•Meals while on official business, including taxes but excluding alcohol;

•Tips associated with lodging, meals, and transportation if customary;

•Travel to and from an airport at reasonable taxi rates;

•Taxi – if less than $15 per day;

•Car rental, gasoline for rental vehicles;

•Telephone Calls- Calls to keep your family advised of your well- being are allowable, but must be kept to a minimum (10 minutes, daily, is maximum);

•Personal Calls:  All other personal calls are the responsibility of the traveller. Do not put your personal calls on your hotel bill. Pay all personal charges out-of-pocket at checkout.

DAILY PER DIEM ALLOWANCES should NOT be used for the following purposes and would have to be paid by the employee. These expenses are NOT reimbursable.

EXPENSES NOT PROVIDED FOR IN THE TRAVEL POLICY:

An officer incurring any of the following expenses (not an exhaustive list) will be personally responsible for meeting that expense, namely:

•Airline club membership fees; annual membership for charge cards; fees, interest, and/or late charges associated with personal credit cards; first class tickets;

•Airline upgrades;

•Car rental upgrades;

•Car washes;

•Clothing; Laundry and dry cleaning for trips of 5 calendar days or less;

•Dependent care; lawn care; maid service; and pet care;

•Excessive tipping; excess of 20% of cost of individual meal;

•Fines or tickets resulting from traffic, parking, or other violations;

•Golf or tennis court fees, membership in country, tennis, or golf clubs, or any sporting equipment, except when part of a pre- authorized group event;

•Life, accident, or flight insurance premiums;

•Lost, broken, or stolen property;

•Luggage or briefcases;

•Meals when traveling on personal business;

•Newspapers, magazines, books;

•Expenses that have been or will be paid or reimbursed by an outside source;

•First class for any flight;

•Costs incurred by traveler’s failure to cancel travel or hotel reservations in a timely fashion;

•Evening or formal wear expenses;

•Haircuts and personal grooming;

•Passports, vaccinations, and visas when not required as a specific and necessary condition of the travel assignment;

•Personal entertainment expenses including in-flight movies, headsets, health club facilities, hotel pay-per-view movies, in-theatre movies, social activities and related incidental costs;

•Travel accident insurance premiums and/or purchase of additional travel insurance;

•Other expenses not directly related to the business travel;

•Excess baggage charges -disallowable unless the staff member has received approval in advance for such charges for legitimate business reasons;

•Entertainment.