Travel & Expense Reimbursement Policy

Travel & Expense Reimbursement Policy

PURPOSE STATEMENT

The Business Travel Policy and Standards (referred to as the Policy) set out the requirements for managing business travel. This document supports the Safeguarding Company Assets Policy.

Statement of Purpose and Responsibilities

PROFESSIONAL UTILITIEShas developed this Travel Policy and Procedure Manual to provide our Business travelers with a reasonable level of service and comfort at the lowest possible cost. This document establishes policies governing the reimbursement of travel, entertainment and other business expenses incurred during the conduct of Organization business, as well as the issuance and use of credit cards.

  • It is the Organization’s policy to reimburse employees for ordinary, necessary and reasonable expenses when directly related to the transaction of Organization business.
  • Directly related expenses are those in which there is the expectation of deriving some current or future benefit for the Organization, the employee is actively engaged in a business meeting or activity necessary to the performance of the employee’s job duties, or, in the case of entertainment, there is a clear business purpose.
  • Employees are expected to exercise prudent business judgment regarding expenses covered by this Policy.
  • Reimbursement for expenses that are not in compliance with this Policy requires the prior written approval of the Organization’s Chief Financial Officer (CFO).
  • Organization employees are responsible for complying with this Policy. Employees submitting expenses that are not in compliance with this policy risk delayed, partial or forfeited reimbursement.

Documentation

Requests for reimbursement of business expenses must be submitted on the appropriate expense reimbursement request form. Each expense shall be separately identified. Forms shall be dated and signed by the employee.

The Company complies with IRS regulations, which require that all business expenses be substantiated with adequate records. This substantiation must include information relating to:

  1. The amount of the expenditure;
  2. The time and place of the expenditure;
  3. The business purpose of the expenditure; and
  4. The names and the business relationships of individuals other than the employee for whom the expenditures were made.

Requests for reimbursement lacking complete information will be returned to the requesting employee.

Reimbursement requests shall be promptly submitted, and in no event more than thirty (30) days after the expense. Reimbursement requests more than thirty (30) days old may be rejected


Approvals

Expense reimbursement forms, together with required documentation, must be submitted to the employee’s immediate supervisor for review and signature approval. The CFO may approve expense reimbursement in the absence of the employee’s supervisor.

Supervisors approving expense reports are responsible for ensuring that the expenses reported are proper and reimbursable under this Policy, the expense report has been filled out accurately and has the required documentation; and the expenses are reasonable and necessary.

Reimbursable Expenses

The following are reimbursable expenses, as long as they are in compliance with the applicable provisions of this Policy, and are for business purposes:

  1. Hotel or motel charges and related tips
  2. Airfare, train fare, bus fare, taxicabs, and related tips
  3. Meals, including tips between 15 and 20%
  4. Business telephone calls
  5. Car rental expenses
  6. Personal mileage, if using own vehicle
  7. Toll and parking charges
  8. Conference and convention fees
  9. Business center costs (i.e., copying, faxing, etc.)
  10. Reasonable business entertainment expenses
  11. Other reasonable and necessary business expenses, not specifically excluded by this section

The following expenses are not reimbursable:

  • Airline club dues
  • First class airfare
  • In-flight movies/refreshments
  • Hotel room movies and other forms of personal entertainment
  • Child care costs
  • Barbers/hairstylists
  • Traffic fines
  • Meals including only company employees, unless travelling on company business or approved in advance by the CFO
  • Parties and gifts for Organization employees
  • Reimbursement for personal miles in excess of the cost of airfare to the same destination

No policy can anticipate every situation that might give rise to legitimate business expenses. Reasonable and necessary expenses, which are not listed above, may be incurred. Each employee and supervisor must use his/her best professional judgment in determining if an unlisted expense is reimbursable under this Policy.

Air Travel

All employees are expected to travel coach class, and are encouraged to search for the lowest available restricted but changeable fare, rather than the fully-refundable fare.

The cost of cancelling and/or rebooking of flights is not reimbursable, unless it can be shown that it was necessary or required for legitimate business reasons (such as a changed meeting date). All unused airline tickets are to be returned to the CFO promptly. Employees must identify and pay for all personal flights, even if such flights are incorporated into a flight schedule that serves business purposes.

Lodging

Prudent judgment should be used when selecting a hotel or motel. A single room with a private bath in a moderately priced business class hotel or motel is the Organization’s standard.

For all lodging expenditures, hotel receipts must be submitted; credit card charge slips do not represent adequate supporting documentation.

The Organization will not reimburse an employee for separate travel costs associated with his/her spouse or partner. However, the cost of a shared hotel room need not be allocated between an employee and his/her spouse or partner for purposes of this Policy.

Policy Exceptions

Generally, any exception to this policy must have the prior written approval of the employee’s supervisor and the CFO. Requests for exception should document extenuating circumstances or proposed overall savings to the Organization.

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