SOP # Revision: Prepared by: R.

OLone
Effective Date: July 1 !""# $pproved by: J. Di%ianca
Title: TRAVEL, ENTERTAINMENT AND BUSINESS EXPENSES
Policy: All reservations required for business travel and entertainment will be made by the
employee or through the Office Manager. Expenses are to be within established
company guidelines and will be reimbursed with proper documentation.
Employees are expected to spend the Companys money as carefully and
udiciously as they would their own.
!he Company recogni"es that employees who travel far from home to represent
the Company#s business interests must forego their living accommodations and
may forfeit personal time. Accordingly$ the Company will ma%e efforts to provide
comfortable and secure accommodations for lodging$ meals and travel for
employees. &owever$ these items are not intended to be perquisites and the
Company reserves the right to deny reimbursement of expenses that are considered
lavish or extravagant.
Purpose: !o provide guidelines for travel and entertainment expenses as they were actually
spent$ account for all advances promptly and accurately and to communicate the
procedures for reimbursement.
Scope: !his procedure applies to all departments and individuals who travel or entertain
for the company.
Responsibilities:
Employee is responsible for ma%ing arrangements needed for business travel$ for
acquiring preapproval for specific expenses outlined in this policy$ to submit their
expense report on a timely basis$ and for acquiring the proper approval after
completion of their report in accordance with their 'irectors requirements.
Accounting 'epartment will receive and review the expense report documentation
and process necessary employee reimbursement.
'irectors are responsible for preapproving specific expenses outlined in this policy
and for approving the final expense report for employees in their division.
Procedure:
1.0 TRAVEL ARRANGEMENTS / TRANSPORTATION EXPENSES
!ransportation expenses shall be reimbursed based on the most economical mode of
transportation and the most commonly traveled route consistent with the authori"ed
purpose of the trip. !ransportation expenses include the following( charges for
commercial carrier fares) travel agency service fees) car rental charges) private car mileage
allowances) overnight and day auto par%ing) bridge and road tolls) taxi and public
!ravel$ Entertainment and *usiness Expenses page + of ,
transportation fares) and all other charges for transportation services necessary to
accomplish the official business purpose of the trip.
+.+ All arrangements required for business travel are to be made by the employee or the Office
Manager when necessary.
+.- .or maximum savings on airfares$ the employee should arrange airline reservations at least
+/ days in advance unless an emergency trip is required.
+.0 1t is preferable that all employees travel during non2wor%ing hours to maximi"e efficiency.
+.3 &ravel $dvances 2 !o help ensure accurate and timely expense report preparation and
reduce the additional paperwor% required to process and trac% !ravel Advances$ the
Company generally discourages travel advances unless special circumstances apply.
Employees are encouraged to use credit cards with a grace period to provide float time
between incurring the expense and receiving reimbursement from the company.
1f an employee requires a travel advance$ the amount should be completed on the Chec%
4equest .orm with a supporting explanation for the advance. !he Chec% 4equest form
must be forwarded to the appropriate 'irector for approval and then forwarded to
Accounting for processing.
5hen a travel advance is received$ the employee will include their total expenses on their
expense report and Accounting will deduct the amount of the travel advance from their
total. 1n the case where the travel advance exceeds the expenses for the report submitted$
a chec% must be forwarded with the expense report to the Accounting 'epartment for the
amount owed.
+./ Direct %illin's 2 'irect billings to the Company from motels$ restaurants$ etc. are not
permitted unless previously authori"ed.
2.0 EXPENSE GUIDELINES
-.+ Air !ravel 2 !he employee will ma%e airline reservations based on the following criteria(
Expediency( 6etting the employee to their destination in an expedient way. 7'irect
flights when possible or connecting flights if necessary for faster flight schedules8.
Cost( Employees will fly coach class unless extenuating circumstances apply.
Employees must use regularly scheduled airlines and obtain the lowest 7discount8 fare
available. !his may mean that employees will fly at times that are not always the most
convenient for them.
Air Carrier( An employee#s preferred airline can be utili"ed as long as expediency and
cost factors are equal.
'ocumentation and explanation must be provided for the airline expense 9 7ex( .A: +;<
training$ !E1 Conference$ etc8.
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-.- =odging 2 !he employee will ma%e lodging arrangements based on value$ convenience$
and cost and in accordance with what are usual and customary company guide lines.
All hotel reservations should be guaranteed on your personal credit card. 1t is the
employees responsibility to cancel hotel reservations within the hotel cancellation policy
time frame. !he company will not reimburse hotel >no2show? fees$ unless approved by a
'irector.
'ocumentation and explanation for the hotel expense must be provided 9 7i.e.( .A: +;<
training$ !E1 conference$ etc8.
-.0 !ravel Meals@Client Meals 2 Employees will generally be responsible for obtaining their
own meals while traveling. Actual$ reasonable and necessary costs for meals with proper
documentation and receipts will be reimbursed. !he general guideline for meals while
traveling is A+- for brea%fast$ A+/ for lunch and A-/ for dinner. Occasionally it is
necessary@practical to charge a client for a meal while at a client location. 5hen such a
need arises$ proper documentation and approval and receipts must be obtained as follows(
!he date.
!he place 7name and location8.
4eason for expense 7i.e. 9 to discuss client needs$ lunch while attending seminar$ etc.8
Bames of employees who attended.
-.3 Car 4entals 2 Car rentals should be used only when taxis$ public transportation and@or use
of employees car is impractical or too costly. Advance arrangements should be made by
the employee if a car is required at the destination. Cehicle selection will be based upon
the most cost2effective class that satisfies requirements for the employee7s8 and any
demonstration equipment 7compact@economy vehicles as opposed to luxury vehicles8.
5herever possible$ the employee must refill gasoline prior to returning rental car for drop
off.
:upplemental auto insurance coverage offered by car rental agencies is to be declined as
=iability and Collision coverage is provided by the Company#s insurance policy.
-./ Dersonal Cehicles 2 An employee required to use their own automobile for business will be
reimbursed for excess mileage over and above their normal daily commute at the
prevailing rate per tax guidelines for per2mile deductions. Bormal commute is the greater
of -; miles 7round trip8 or actual miles to and from the office. Other reimbursable items
include tolls and par%ing$ provided they are over and above the normal daily commute.
!he employee must provide on the expense report$ documentation including dates$ miles
traveled$ receipts for tolls and@or par%ing and purpose of each trip.
Comprehensive fire$ theft and collision coverage should be carried as part of the
employees overall auto insurance. Dar%ing or speeding violations$ gas or repairs are the
sole responsibility of the employee.
!ravel$ Entertainment and *usiness Expenses page 0 of ,
!he Company will pay up to A-/; for property related incidents that occur while
employees are conducting company business. !he employee is responsible for verifying
that they were conducting company business$ they had acted and responded appropriately
and had ta%en proper precautions in securing their property. Dolice reports must be
included when appropriate. Each case will be reviewed on an individual basis. !he
expense must approved by a 'irector prior to being included on the employees expense
report.
-.E !elephone ( 5hen traveling$ business2related telephone charges on a lodging receipt
and@or telephone charge card should be itemi"ed.
Drincipals and Managers are given company cell phones on an as needed basis as
determined by a 'irector. 1f a Drincipal or Manager should leave the Company$ the phone
and all phone equipment must be returned to the Company on the last day of employment.
.or those employees who do not have a company cell phone$ the maximum wor% related
calls that will be reimbursed is as follows(
Drincipals 9 up to A<; per month with support to verify the expense
Managers 9 up to A/; per month with support to verify the expense
:taff 9 up to A-/ per month with support to verify the expense
!o receive this monthly payment$ prior 'irector approval is required and proper
documentation must be provided with the expense report to substantiate the business use
of your phone.
-.F Entertainment 2 1n order for entertainment to be a valid deductible entertainment expenses
it must be an ordinary and necessary expense directly related or associated with the active
conduct of business. .or tax purposes$ it is very important to properly document
entertainment expenses and substantiate the following elements(
!he date.
!he place 7name and location8.
'escription or type of entertainment.
!he business purpose and the nature of the business benefit expected to be gained by
the Company.
!he business relationship to the Company of the persons entertained 7name$
occupation$ title$ etc.8.
-., Meals 7Bon2Client@Bon2*illable8 9 5hile the Company generally discourages non2client
meals incurred with other Company employees$ there are occasions when these meals are
permitted. Droper documentation and approval must be obtained as follows(
!he date.
!he place 7name and location8.
4eason for expense 7exp 9 mentoring lunch$ mar%eting lunch$ >welcome? lunch$ etc.8
!ravel$ Entertainment and *usiness Expenses page 3 of ,
Bames of employees who attended.
Bame of 'irector who approved the expense.
-.< Miscellaneous Expenses 2 Any additional expenses that are not categori"ed above
should be documented with all pertinent information to substantiate the expense.
Allowable miscellaneous expenses include the following(
4egistration fees for attendance at conferences$ conventions$ seminars$ etc.
5hen traveling$ business office expenses@supplies such as equipment rentals) fax$
computer or copy services) rental of a room or other facility for the transaction of
official business) and@or purchase of materials and supplies )*en nor+al purc*asin'
procedures cannot be follo)ed) etc. are allowable.
Durchases of supplies$ equipment and@or software should be ordered through the
Company Office Manager or 1! Coordinator to ta%e advantage of volume discounts.
'ues and memberships to professional affiliations such as the A1CDA$ D1CDA$ .E1$
AC!$ .M:$ 1D!$ Bational :ociety of Accountants. Drior approval by a 'irector for
any additional dues or memberships is required. 1t is expected that the employee will
participate in the professional organi"ation by either attending meetings@seminars or
becoming a member of a committee or an officer.
Company sports@events fees or equipment such as referee fees$ balls$ bats$ etc. 7with
prior approval from a 'irector8.
Other ordinary and necessary expenses not included in the above categories.
0.; Bon24eimbursable Expenses 2 :ome expenses are not considered valid business expenses
by the company$ yet may be incurred for the convenience of the traveling individual. :ince
these are not expenses for the business then they are not reimbursable. 7!he following can
be used as a guide of expenses$ which are not reimbursable8
Examples include(
Airline or travel insurance
Airline or travel lounge clubs
Alcoholic beverages
:hoe shine or dry2cleaning 7except for extended travel beyond / days8
Movies or personal entertainment
*oo%s$ maga"ines or newspapers
!heft or loss of personal property
'octor bills$ prescriptions$ or other medical services
!ravel$ Entertainment and *usiness Expenses page / of ,
Dar%ing tic%ets$ traffic tic%ets or car towing if illegally par%ed
Calet services
&ealth club memberships
*aby sitter or Det care fees
*arbers and &airdressers
4.0 EXPENSE REPORT PREPARATION AND REIMBURSEMENT
3.+ All travel$ entertainment and business expenditures incurred by employees of the Company
are reimbursed through the use of the !ime$ Expense G :cheduling :ystem. 71nstructions
can be found in the !ime$ Expense and :cheduling :ystem and Drocedures in :hareDoint8.
Expense reports should be submitted by +;(;; am on the first business day of the
following month after expenses are incurred.
1f you forget to include a legitimate expense on your current expense report$ you may add
it to your next expense report with an explanation included in the memo. &owever$
expenses that are over 0 months from the date of occurrence will not be reimbursed.
Expense report forms must be printed out$ signed and forwarded to the Accounting
'epartment. :canned or emailed copies are unacceptable. 4equired receipts for items
charged must be attached to the report. Any questions regarding completion of the report
should be directed to the employee#s Manager@'irector or the Accounting 'epartment.
3.- 1n order to expedite reimbursement$ the employee should ensure that the report is
completed properly$ required documentation is attached$ proper authori"ation is obtained$
and any unusual items properly explained and documented.
Expense reports will be reimbursed by a company chec%$ normally by the first business day
of the following month after all expense reports are submitted. !he employees expense
chec% will not be released until all proper documentation and a signed original are received
by the Accounting 'epartment.
5.0 ADDITIONAL INORMATION RESOUR!ES
More information is available from the following resources:
!ime$ Expense$ and :cheduling :ystem and Drocedures
!ravel$ Entertainment and *usiness Expenses page E of ,
Revision ,istory:
Revision Date Description of c*an'es Re-uested %y
;
;F@-;@;
<
1nitial 4elease
!ravel$ Entertainment and *usiness Expenses page F of ,
page , of ,