Loading...
HomeMy Public PortalAboutHospitality Policy_P-100_Effective 2021-02-25Municipality of the District of Chester ospila '1.7fi�f'aiDI�; L y rO Effective Date: February 25, 2021 ■ Policy P-100 — Hospitality Policy Page � 2 MUNICIPALITY Ur THE DISTRICT OF CHESTER POLICY P-10o - HOSPITALITY POLICY 1. PURPOSE 1.01 The Municipality of the District of Chester recognizes that gifts and hospitality related activities are, at times, appropriate and legitimate expenses to support the Municipality's strategic and business objectives. The offering of gifts and hospitality will be done in such a manner to reflect the prudent stewardship of public funds and should be a reasonable expense based on the circumstances. Expenses incurred by the Municipality in offering hospitality for purposes of diplomacy, protocol, business development, or promotional advocacy are acceptable providing they satisfy the standards and procedures outlined in this Hospitality Policy. 1.02 This Hospitality Policy provides direction and guidance to Council and the Chief Administrative Officer (CAO) in determining appropriate hospitality expenses that support the objectives of the Municipality while in accordance with the following standards and procedures of this policy, which include: (a) Clearly identifying the circumstances for which hospitality expenses may be permitted. (b) Establishing the expenditures that may qualify as a hospitality expense. (c) Establishing the approval process for authorizing hospitality expenses. 1.03 Authority for the Hospitality Policy is derived from Section 23(3),(5), (6), and (7) along with Section 65D (3), (4), (5), and (6) of the Municipal Government Act. Section 23(3) directs the adoption of a hospitality policy; Section 23(5) states the minimum requirements for such a policy; Section 23(6) stipulates an expense may only be reimbursed if authorized by a hospitality policy; Section 23(7) states that the hospitality policy must be reviewed and adopted following each regular election and Section 65D outlines requirements for hospitality expense reporting. 1.04 This policy does not apply to expenses associated with events for Municipal employees only, such as retirement ceremonies or staff appreciation events. 2. PRINCIPLES 2.01 The following underlying principles inform this policy: (a) Any hospitality related activity must be provided in an accountable, economical, and consistent manner that facilitates government business in the areas of diplomacy, protocol, business development or promotional advocacy. Notice of Intention to Adopt: Council —January 28, 2021 (2021-057) First Notice: Council —February 11, 2021 (2021-076) Second Notice: Council —February 25, 2021 (2021-095) Effective Date: February 25, 2021 Policy P-100 — Hospitality Policy Page I 3 (b) Any hospitality related activity must serve a clear strategic or business purpose for the Municipality and not provide any personal benefit to Reportable Individuals or employees of the Municipality. (c) Public funds are used prudently and responsibly with a focus on accountability and transparency. 3. POLICY Signing Authorities (a) The following are the Signing Authorities responsible for administering this policy with respect to the individuals in those positions. Position Member of Council CAO Employees of the Municipality Signing Authority CAO or designate Warden or Deputy Warden Immediate Supervisor or CAO (or designate) (b) The CAO may designate a secondary Signing Authority. The designation of a secondary Signing Authority will be in writing and will state the name and position o f the designate. (c) All Signing Authorities are prohibited from authorizing payment of a hospitality expense incurred on their own behalf. Hospitality Events (a) A hospitality event is a reception, ceremony, conference, or other event that involves hosting individuals from outside the Municipality. Hospitality may be offered under the following circumstances in accordance with this policy: i. hosting foreign dignitaries; ii. engaging in official public matters with representatives from other governments, hosting business, industry/labour leaders, or other community leaders; iv. sponsoring or hosting conferences; v. hosting ceremonies / recognition events; and vi. other official functions, as approved by either Council or CAO (or designate), as appropriate. Notice of Intention to Adopt: Council —January 28, 2021 (2021-057) First Notice: Council —February 11, 2021 (2021-076) Second Notice: Council —February 25, 2021 (2021-095) Effective Date: February 25, 2021 Policy P-100 — Hospitality Policy Page 14 Hospitality Expenses (a) Hospitality expenses include, but are not limited to (pending prior authorization procedure as outlined in Section 5.01), the following: i. meals/catering (including gratuities); ii. beverages; iiis accommodation; iv. professional serving staff; and v. gifts Serving Alcohol (a) While the standard for hospitality is the provision of non-alcoholic beverages, the provision of alcohol in the context of hospitality for reasons of diplomacy, protocol, business development, or promotional advocacy is deemed an acceptable expense in limited circumstances. Any request for approval to serve alcohol at a hospitality event requires prior approval by either Council or CAO (or designate), as appropriate. (b) All Reportable Individuals and employees of the Municipality are expected to act responsibly in the care and well-being of themselves, other employees, and their respective guests with respect to the provision of alcohol. (c) The Municipality will demonstrate good judgment in the reasonableness of the quantity and expense of alcoholic beverages offered to guests. (dl If alcohol is provided at a Municipal hosnitality event. all applicable liauor laws and licensing requirements must be adhered to in addition to the principles of this policy. Food will be served at all events where alcohol is provided for hospitality purposes. (e) Alcohol is not an allowable expense for Reportable Individuals or employees of the Municipality while travelling for Municipal business. Gifts (a) For reasons of diplomacy, protocol, business development, or promotional advocacy, giving gifts to individuals who are not employees or representatives of the Municipality is sometimes appropriate. Any giving of individual gifts exceeding $50 in value requires prior approval by either Council or CAO (or designate), as appropriate. Notice of Intention to Adopt: Council —January 28, 2021 (2021-057) First Notice: Council —February 11, 2021 (2021-076) Second Notice: Council —February 25, 2021 (2021-095) Effective Date: February 25, 2021 Policy P-1o0 — Hospitality Policy 4. SCOPE 4.01 This Hospitality Policy applies to all Reportable Individuals and employees of the Municipality who incur approved hospitality expenses while conducting Municipality of the District of Chester business. 5. PROCEDURES Prior Authorization for Hospitality Event Requests (a) Subject to this policy, all hospitality events require prior aut electronic form Hospitality Event Request) horization. (See the (b) A hospitality event request requires the following information for prior authorization: i. rationale/purpose of the event; ii. estimated number of attendees and their respective affiliations; iiin if alcohol is to be provided at the event, reasons the provision of alcohol is appropriate and warranted in the circumstances; iv. estimated itemized hospitality expenses, including gratuities and supplementary expenses. (c) Hospitality event requests shall be reviewed by either the CAO (or designate) or Council, as appropriate, who shall consider the value and benefit of the proposed event in relation to its cost in deciding whether to approve the hospitality event. (d) In instances where a hospitality event has been held without prior approval, for reimbursement must provide the details outlined above and a document outlining the reasons prior approval was not possible. Submission of Hospitality Expenses claims (a) Hospitality expenses incurred by individuals must be submitted on the electronic Hospitality Expense Claim form that references and links to the already authorized Hospitality Event Request form. The completed expense claim must be signed by the Claimant and submitted to the appropriate Signing Authority within 30 days after the hospitality event. (b) Hospitality Expense Claims must include the following: i. a copy of the signed prior authorization for the hospitality expense was incurred; Notice of Intention to Adopt: Council —January 28, 2021 (2021-057) First Notice: Council —February 11, 2021 (2021-076) Second Notice: Council —February 25, 2021 (2021-095) Effective Date: February 25, 2021 event for which the Policy P-'loo — Hospitality Policy Page I 6 ii. the names and positions of the guests at the hospitality event; iiin the business objective for the expense; iv. detailed, itemized receipts for the expenses to support the claim. (c) In instances where prior approval of the hospitality event was not practicable, a completed Hospitality Expense Claim must be submitted to the appropriate Signing Authority within 30 days of the expense being incurred along with detailed reasoning as to why prior approval was not sought prior to reimbursement. (d) If no receipt is available for a hospitality expense, a written attestation signed by the Claimant must be submitted to explain why the receipt is unavailable, and a description itemizing and confirming the expense must be provided. Debit or credit card transaction records are not acceptable as receipts. (e) Hospitality expenses incurred by one individual on behalf of another must be attributed to the individual for whom those expenses were incurred. (fl No hospitality expense claim shall be paid unless the claim is first approved for payment by the appropriate Signing Authority. Before approving a Hospitality Expense Claim, a Signing Authority must ensure that: i. the claim is consistent with this policy; ii. the expenses claimed were necessarily incurred in the performance of Municipal business; appropriate receipts (or a written attestation as stipulated in Section 5.02(d) of this policy) or invoices are provided to support the claim, and that the claim documentation is appropriately filed; the expenses claimed have appropriate justification; v. a copy of the appropriate liquor licence, if applicable; and vin all requirements for a hospitality expense claim have been fulfilled. (g) In considering a Hospitality Expense Cla request additional explanations, docume im for payment, a Signing Authority may ntation, or justification from the Claimant, and may refuse to approve any claim or expense that did not have prior authorization and which the Signing Authority decides is unreasonable or not in compliance with this policy. (h) The use of petty cash to pay a Hospitality Expense Claim is prohibited. 5.03 Reporting Requirements Notice of Intention to Adopt: Council —January 28, 2021 (2021-057) First Notice: Council —February 11, 2021 (2021-076) Second Notice: Council —February 25, 2021 (2021-095) Effective Date: February 25, 2021 POlicy P-140 — Hospitality Policy 7 Page I (a) In accordance with the requirements section the CAO shall ensure that Municipality: 65d of the Municipal Government Act, i. prepares a Hospitality Expense Report that describes all the hospitality expenses incurred by the Municipality, including purchases of alcohol, for each fiscal quarter, and posts that report on the Municipality's website within ninety (90) days of the end of each quarter; and ii. prepares an annual report that summarizes the hospitality expense reports for the preceding fiscal year in compliance with the requirements of the Department of Municipal Affairs and Housing and of the Financial Reporting and Accounting Manual, and files that annual summary report with the Minister of Municipal Affairs and Housing by September 30 each year. 5.04 Review Requirements (a) The Municipality's Audit Committee shall review the hospitality annual summary report by September 30 of each year. (b) By January 31 immediately following a regular election held under the Municipal Elections Act, Council shall review this policy and, following a motion by Council, either re -adopt the policy or amend the policy and adopt the policy as amended. 6. REFERENCES AND RELATED STATEMENTS OF POLICY Municipal Government Act Section Financial Reporting and Accounting Manual (FRAM), Department of Municipal Affairs & Housing, Government of Nova Scotia. As of the date of adoption by Council, this Hospitality Policy replaces any related sections of Municipality of the District of Chester policies and procedures concerningthe approval and reimbursement of expenses for hospitality related activities. 7. DEFINITIONS 7.01 means the Chief Administrative Officer of the Municipality of the District of Chester. 7.02 "Claimant" means the individual submitting hospitality expenses claim in accordance with the standards and procedures of this policy. 7.03 "Council" means the elected officials that make up the Council of the Municipality of the District of Chester. Notice of Intention to Adopt: Council —January 28, 2021 (2021-057) First Notice: Council —February 11, 2021 (2021-076) Second Notice: Council —February 25, 2021 (2021-095) Effective Date: February 25, 2021 Policy P=100 — Hospitality Policy 7.04 "Employee" means any person directly employed by the Municipality of the District of Chester. 7.05 "Hospitality Event" means an event or function for purposes and reasons outlined in his policy where the provision of food, beverages, accommodations, or other approved items I provided, at public expense Municipality. 7.06 "Hospitality Event the proposed eve authorization. event to people who are n of engaged in work for the Request" means an electronic form for the submission of details about attendees, estimates costs, and intent to serve alcohol for prior 7.07 "Hospitality Expense Claim" means an electronic form for the submission of details about the completed event, the attendees, and actual expenses incurred, along with receipts and/or invoices, as appropriate. 7.08 "Hospitality Expense Report" means a report on all hospitality expenses incurred by a municipality during a fiscal quarter, including purchases of alcohol, shared on the Municipal website within ninety (90) days of the end of each quarter. 7.09 "Municipality" or "Municipal" means the Municipality of the District of Chester. 7.10 "Reportable Individual" means the Warden, Deputy Warden, Councillor, Chief Administration Officer (CAO), and any employee of the Municipality delegated the responsibilities of the CAO. 7.11 "Signing Authority" means an individual authorized to sign on behalf of the Municipality. 8. ATTACHMENTS 8.01 The Hospitality Event Request and Hospitality Event Expense Claim are forms available electronically to Reportable Individuals and employees of the Municipality. Notice of Intention to Adopt: Council —January 28, 2021 (2021-057) First Notice: Council —February 11, 2021 (2021-076) Second Notice: Council —February 25, 2021 (2021-095) Effective Date: February 25, 2021 Policy P=100 — Hospitality Policy Page I 9 Version Number Amendment Description Policy Editor Policy Sponsor Approval Date 2020-04-16 Policy created CAO and Corporate and 2020/05/07 Deputy CAO Strategic Management 2021-05-25 Policy CAO and Corporate and 2021 /05/25 Amended Deputy CAO Strategic Management Annotation for Official Policy Book Reason for Amendment Requirements of the Municipal Government Act. Notice of Intention to Adopt January 28, 2021 (2021-057) Date of First Notice at Council February 11, 2021 (2021-076) Date of Second Notice at Council February 25, 2021 (2021-095) Effective Date February 25, 2021 I certify, hat this Policy was amended by Council as indicated above. Pamela M. Myra, nicipal Clerk Date Notice of Intention to Adopt: Council —January 28, 2021 (2021-057) First Notice: Council —February 11, 2021 (2021-076) Second Notice: Council —February 25, 2021 (2021-095) Effective Date: February 25, 2021