HomeMy Public PortalAboutHospitality Policy_P-100_Effective 2021-02-25Municipality of the District of Chester
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Effective Date: February 25, 2021
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Policy P-100 — Hospitality Policy
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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