ZWS ISO 9001:2008 QUALITY MANAGEMENT SYSTEM

PREPARED BY: MR. PATRICK MWASHITA DIRECTOR FINANCE,

ADMINISTRATION AND INFRASTRUCTURE

Report prepared 18 January 2020

Background

Prior to 2017, business mileage was paid to managers based on flat rates according to one’s career
level. Senior and Executive Management (Career level 1 to 5) were paid at US$0.53 per km and
other career levels (Career levels 6 to 8) were paid at US$0.41 cents per km. See attached circular
which was in in use prior to 2017.

Original Business
Mileage Rates

In December 2017, the policy changed where business travel was now to be compensated using
Automobile Association rates. With this system, a member of staff or manager would claim business
mileage attaching the vehicle registration book for proof of ownership as well as engine capacity of
the vehicle. See attached circular on the policy which became effective in December 2017

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According to the Travelling and Subsistence Allowances procedure, where a member of staff or a
manager claims other incidental costs like tollgate fees and parking fees, claims have to be
accompanied by original receipts or approved memo in the event of loss of receipts. In practice,
what has been evident is that, due to ever rising financial costs, some T and S claimants would get
cash for tollgate fares from the Petty Cash system hence their overall T and S claims would not bear
these as they are accounted for separately. Some choose not to claim the fares when they misplace
the tickets avoiding the hassle of making write ups.

In the case of Mr Kuzvinzwa, he did not claim tollgate fees under his claims hence he was not asked
for the receipts.

What went wrong on Mr Kuzvinzwa’s Travel and Subsistence Claim

The policy, as well as the T & S procedure did not make it mandatory to submit tollgate tickets as
these were only required where the incumbent claimed refunds for tollgate fees. This became a
weakness in that in the absence of the tollgate tickets, people could only trust that the claimant has
claimed business mileage for the vehicle used.

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 ZWS ISO 9001:2008 QUALITY MANAGEMENT SYSTEM

Overpayment and Recovery

The overpaid amount will be assessed by comparing rates applied and the correct ones after getting
information on the relevant trips. We will notify him of the assessed amount, post on his account
and clear it when he settles the bill.

How to strengthen the system

Payment of business mileage using AA rates brought in some financial savings as one is paid the
exact rate applicable to the type of car used as compared to using flat rates.

To strengthen the system, every business mileage claim has to bear the tollgate tickets for it to be
processed. Where one would have got cash from the Petty Cash system, copies of tickets have to be
attached on the business mileage claim for information purposes. Some tollgate tickets do not
record vehicle registration number and at times manual tickets are issued; in this instance, the
claimant should endorse the vehicle registration number of the relevant vehicle at the back and sign.

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