June 25, 2014
21.4.1062
Background
The grievor, travelled to Country X in order to perform his duties. Following the grievor's return, a travel claim was submitted. The Employer reviewed the claim and issued a reimbursement, representing a difference of $2.38.
In the subject instance, both parties claim to have used the methodology featured in Example 1 of the Foreign Currency Exchange – Conversion Calculation Methodology Communiqué to calculate the total eligible expenses. However, the parties differ in their consideration of factors to be included in the calculation. The Employer's calculation took into account the full amount of a cash withdrawal whereas the grievor is of the view that only funds used from that withdrawal toward travel expenses should be considered.
Following a review of the Employer's calculations it was revealed that a mistake was made in the original calculation resulting in an overpayment of $0.42. The Employer has yet to recover this sum.
Bargaining Agent Presentation
The Bargaining Agent representative indicated that the grievor was on authorized business travel. Therefore, the grievor was entitled to the provisions of the NJC Travel Directive. Section 3.3.4 of the Directive provides two situations, one where receipts are provided and the other where receipts are not provided. When receipts are provided, the employee is to be reimbursed for the "costs incurred to convert reasonable sums to foreign currencies".
The representative explained that after returning home, the grievor submitted a travel expense claim for the period of travel and included a receipt showing the exchange rate utilized for the purchase of funds to cover expenses. The claim was approved by the manager and submitted for payment. Departmental accounting staff audited the claim and readjusted the exchange rate used for the meal and incidental expenses but did not adjust the exchange rate for any other items on the claim. As a result, the amount reimbursed to the grievor was reduced. The grievor submitted a supplementary claim explaining that the receipt provided showed the exchange rate paid, which was spent on meals and incidentals while on government business.
Departmental accounting branch disallowed the payment and maintained that the Department had a directive which directs staff to use the NJC foreign currency calculator, which was not done by the grievor. The grievor subsequently provided his calculations along with an explanation on how they complied with the NJC Travel Directive. The Department sought guidance from the Treasury Board Secretariat, which they subsequently provided to the grievor, indicating that they had followed departmental policy and Treasury Board interpretation, and that in fact an overpayment had occurred.
Departmental Presentation
The Departmental representative indicated that the key issue surrounding this grievance was the methodology used to calculate the currency exchange rate. More specifically, the proper application of the methodology used in Example 1 as outlined in the NJC Communiqué on Foreign Currency Exchange – Conversion Calculation Methodology (effective April 1, 2008).
The representative submitted that with respect to the grievor's travel expenses claim, Example 1 must be used as the total value of foreign currency conversion receipts is higher than the allowable expenses. More specifically, Example 1 uses all foreign currency exchange receipts. In this case, the grievor's credit card statement and the cash withdrawal receipt derive to a total amount. This amount represents the total value of foreign currency conversion receipts which is higher than the allowable expenses submitted by the grievor. As such, the weighted average exchange rate shall be used for the conversion.
The representative also explained that of the allowable expenses an amount was receipt-based and supported by exchange rates documented on the grievor's credit card statement. The remaining allowable expenses were not supported by a receipt-based exchange rate. The grievor believes that only the portion used for expenses from the withdrawal should be used to determine the weighted average exchange rate, rather than the total value of the cash withdrawal. However, there is no provision in the NJC Example 1 methodology to use only part of a currency exchange receipt.
Executive Committee Decision
The Executive Committee considered and agreed with the report of the Government Travel Committee which concluded that the grievor had been treated within the intent of the Directive. The grievance is therefore denied.