This downloaded copy is unofficial. Check www.mun.ca/policy for the official version.

Memorial University of Newfoundland

  Memorial University of Newfoundland

Vehicles - Employee Owned

Approval Date: N/A

Effective Date: 1996-01-01

Review Date: 2021-05-01

Authority:

Vice-President (Administration and Finance)

Purpose

To provide for proper control and reimbursement of vehicle expenses incurred by employees who use their own vehicles on University business.

Scope

Employees who are required to use their vehicle on University business as a condition of employment, and those employees who are required to use their vehicle occasionally for University business.

Definitions

Vehicles — Automobiles and/or snowmobiles.

Policy

All vehicle operators coming under this policy are required to provide business liability insurance coverage on their vehicles at a minimum of $500,000 personal liability and property damage. The University will not be responsible for any vehicle costs in excess of the current allowances outlined in this policy. In the event of a breakdown where an employee's vehicle requires maintenance or repair, it is the responsibility of the vehicle owner to provide an alternative vehicle; however, the allowance will be applicable to the vehicle requiring maintenance or repairs. The University will periodically review the allowances referred to in Automobile Allowances.

Automobile Allowances

Extensive Use - Where employees are required to have an automobile at their disposal as part of their job, and when the kilometres driven on behalf of the University exceed 12,000 in the fiscal year, reimbursement is:
    a) $75.00 per month allowance.
    b) 34.75 cents per kilometre with a guaranteed minimum of $900.00 per annum, effective April 1, 1989.
    c) Business insurance on the vehicle equal to difference between personal and business insurance.
    d) Parking allowance of $3.00 per week.

Moderate Use - Where employees are required to have an automobile at their disposal as part of their job, and when the kilometres driven on behalf of the University are less than 12,000 in the fiscal year, reimbursement is:
    a) $55.00 per month allowance.
    b) 34.75 cents per kilometre with a guaranteed minimum of $900.00 per annum, effective April 1, 1989.
    c) Business insurance on the vehicle equal to difference between personal and business insurance.
    d) Parking allowance of $3.00 per week.

Automobile Casual Allowance

Employees who are not required to have an automobile at their disposal, but who are required by the University to use their automobile on University business, shall be reimbursed at the rate quoted in the Schedule of Reimbursable Expenses.

Snowmobile Allowance 

Extensive Use - Where employees are required to have a snowmobile at their disposal as part of their job, and when the kilometres driven on behalf of the University exceed 2,000 in the fiscal year, reimbursement is:
    a) $75.00 per month allowance.
    b) 34.75 cents per kilometre, effective April 1, 1989.
    c) Business insurance on the snowmobile equal to the difference between personal and business insurance. Snowmobiles may be carried jointly on an automobile policy.

Moderate Use - Where employees are required to have a snowmobile at their disposal, as part of their job, and when the kilometres driven on behalf of the University are less than 2,000 in the fiscal year, reimbursement is:
    a) $55.00 per month allowance.
    b) 34.75 cents per kilometre, effective April 1, 1989.
    c) Business insurance on the snowmobile equal to difference between personal and business insurance. Snowmobiles may be carried jointly on an automobile policy.

Related Documents

Enterprise Risk Management policy

Procedures

For inquiries related to this policy:

Financial and Administrative Services 709-864-8222

Sponsor: Vice-President (Administration & Finance)

Category: Finance


Procedure for Employee-owned Vehicle

Approval Date: 2014-07-25

Responsible Unit: Department of Financial and Administrative Services

a. Claims are to be made monthly using the Travel Claim Form.

b. Each vehicle operator will declare on his/her first travel claim the name, make and licence number of his/her vehicle, and will provide proof of insurance coverage. Subsequently, as conditions change, this information must be updated.

c. Each vehicle operator is to provide to the Unit Head or equivalent a monthly report of vehicle availability and distance travelled on University business so that he/she may certify the accuracy of travel claims. A log book system must be used so that kilometres travelled on University business can be accurately recorded.

d. The log book referred to in (b) above is required by Revenue Canada if vehicle expenses are claimed on the employee's annual tax returns. The Department of Financial and Administrative Services will supply a completed T2200 for such purposes during March of each year.

e. Any application to deviate from these guidelines and to cover costs not provided in the given allowances must be made to the Vice-President (Administration and Finance) through the appropriate Vice-President.

f. It is the responsibility of the Unit Head or equivalent to ensure that the correct procedures and guidelines are observed.