CHED Finance

Allowances for 2010 (Acting Allowances, HoDs, Deputy Deans, Cell Phones etc.) have been processed at the 2009 rates, though unfortunately allowances for January will not be paid until February.

The Dean will review all such allowances when we have an agreed overall salary increase figure for 2010. 

David and Leigh are busy preparing financial reports for the 2009 year, which are due for submission to Bremner on 12th February.  An early view of the figures suggests that we should be pretty much on track, with the only significant variance to our faculty target being the monies we had to pay over to the other faculties in respect of the Third Term activities.  We will be happy to provide reports to individual areas later in February.

Somebody in SARS must be really short of work to do. Whatever . . . . . effective 1st March we now have country specific limits to the amount of subsistence available for travel outside of South Africa. Always remember that these rates are the MAXIMUM allowed without tax consequences. The actual rate claimed is at the fund holder's discretion.

UCT has taken the opportunity to revise its own policy on subsistence and travel. In particular

• the reference to 3* hotels (or equivalent) has been expanded (section C)
• the UCT policy now includes a statement that the day of departure and arrival can, at the fund holders discretion, be included in the S&T claim (section D)
• form FM032 has been split into the S&T allowance/advance, with a new form FM033 to be used to clear all advances (i.e. travel, sundry or fieldwork advances)

UCT has a problem of an ever increasing list of Catering vendors being used across campus (invariably being paid as One Time vendors, which poses special risks and costs to the University.)

Procurement Services have created a list of preferred catering vendors, and we are asked to use these if at all possible. If you encounter any problems with these caterers, whether it's bad service or anything else, please advise Linda Harrower. 

In accordance with the allowable SARS rates, the local subsistence and travel rates applicable to UCT business trips have increased with effect from 1 March 2009:

New rates:

Local - Incidental costs only: R80

Local - Meals and incidental costs: R260

NB: These rates are the MAXIMUM allowed without tax consequences. The actual rate claimed is at the fund holder's discretion.

Abu Adams has kindly circulated some advice based on recent consultations with UCT's tax advisers.

• The individual circumstances of each payment will finally determine our tax risk.
• As long as we pay reasonable amounts for academics coming to participate genuinely in the academic enterprise then we should be reasonably safe.
• Wording of award must not include honorarium, remuneration, fees, per diem, etc.
• UCT should pay for the transport in and out of the country.
• UCT should pay for reasonable accommodation for a reasonable period of time: economy boarding and lodgings.
• If the stay is longer than 3 months (confirm with Cheryl Samuels of HR) then a work permit is required and payments will have to go via UCT's payroll system.
• S&T contribution to the balance of costs of the visit:  R430? per day
• UCT still to agree on what is a reasonable amount to pay if accommodation not paid separately by us.
• UCT still to agree on what is a reasonable amount to pay if the academic arranges the airfare, accomm and rest of cost of visit.
• As soon as we pay him/her a fee for lectures/seminar/etc delivered there are tax implications.