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Travel, Entertainment, Expense Reporting Policy

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Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

Travel, Entertainment,

Expense Reporting Policy

For the Employees of

Effective March 1, 2007

Page 1 of 11


Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

TABLE OF CONTENTS

Objective and Overview .................................................................................................... 3

Approval Prior to Travel ………….…...……………………….………………………………. 3

Air Travel........................................................................................................................…3

Lodging ............................................................................................................................. 5

Rental Car and Personal Car Use .................................................................................... 6

Telephone Usage.............................................................................................................. 6

Meals and Entertainment .................................................................................................. 7

Miscellaneous Travel …………………………………………….……………………………...8

Group and Meeting Travel ……….………………………………………………………….….8

Gift Policy ………………………………………………………………………………….…..…9

Non Allowable Expenses ...................................................................................………….9

Expense Reporting ..........................................................................................………….10

Necho expense report creation and submission - please refer to the Necho expense report

process document in Outlook: Public Folders, All Public Folders, National, Travel.

Effective March 1, 2007

Page 2 of 11


OBJECTIVE AND OVERVIEW

Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

The company policy on business expense reimbursement is designed to be fair and equitable and to follow

all pertinent tax regulations. To be reimbursable, expenses must have a clear business purpose consistent

with the image of a professional organization. Good judgment is expected before incurring any expense on

behalf of the Company and employees are expected to use discretion and “do the right thing” if a situation

arises that is not covered by this policy.

This policy clearly defines the process required for travel and entertainment expense reimbursement to

insure that expenses incurred are within Company good business standards, properly supported with

required documentation, appropriately approved by management and reimbursed in a timely manner.

Failure to comply with the requirements of this policy may result in delays or withholding of reimbursement.

Accuracy in reporting and documenting expenses is essential. Employee business expenses must meet

extensive record keeping requirements imposed by the Internal Revenue Service. The IRS can disallow a

deduction for a business expense if the employee fails to submit adequate records to support the expense

resulting in taxable income to the employee and in some cases the employee held liable for the expense.

The company assumes no obligation to reimburse employees for expenses NOT in compliance with this

policy or deemed not to be a necessary business expense. Any questions, concerns or suggestions

regarding this Travel, Entertainment and Expense Reporting Policy may be directed to the EMSC VP and

Controller or National Director – Purchasing.

AUTHORIZATION PRIOR TO TRAVEL

No employee is authorized to incur travel expenses on behalf of the company without prior approval from

the appropriate level of management before committing the company funds.

At the discretion of the AMR-DCOO, travelers below GM level may be required to obtain pre-trip approval

via a travel authorization request (TAR). The TAR is for budget control purposes only – it will NOT be

required by the NRC as support documentation submitted with the expense report.

AIR TRAVEL

TravelFocus is the contracted travel management company for all employees; as such ALL travel

arrangements must be booked through TravelFocus -- AASI flight crews are exempt from this

requirement. See our Travel Portal http://www.travelfocus.com/emsc_portal/index.htm for

current contact numbers and link to the online booking site.

TravelFocus directly bills the company for all company business airfare. Travelers must establish and

maintain a current travel profile with TravelFocus to insure the airfare is charged to the proper G/L. Airfare

for consultants, contracted doctors, interviewees, etc must be booked through TravelFocus but will require

prior approval from the responsible Travel Administrator or Scheduler.

Travelers are expected to book the lowest airfare based on the following criteria:

• Book airfare as early as possible to take advantage of advance purchase discounts. Early booking

discounts begin at 3 days prior to departure and increase incrementally at 7, 14 and 21 days.

• Nonrefundable tickets are preferred as they provide the lowest fare.

• Consider alternate airports (within 50 miles), one connection that does not exceed 90 minutes and

departure / arrival times within 2 hours (before or after) the original times requested. Savings should

be at least $150 to offset scheduling inconvenience.

Effective March 1, 2007

Page 3 of 11


Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

TravelFocus offers two methods for making travel arrangements.

• On-line booking tool (ResX) is the preferred method as it offers the lowest service fee and

includes our negotiated rates with airlines, hotels, rental car companies. The site is

www.travelfocus.com/X. Hotel and car arrangements should be booked at the same time as the

airfare. But, if hotel and car reservations are made after the airfare is booked, reopen the existing

airfare record to add the hotel and car as this will prevent an additional service fee.

• Agent assisted booking is recommended for multiple destination travel, changes to a ticketed

itinerary, or if the traveler is more comfortable dealing directly with an agent.

Traveler Profiles

All travelers are expected to have a current travel profile on file with TravelFocus. Travelers are

responsible for updating their profile whenever changes occur, i.e. G/L accounting code, credit card

number, travel preference, etc. Traveler profiles can be updated at http://www.travelfocus.com/x.

Travel profiles contain:

o Personal Info: Name, title, address, phone number, etc.

o G/L code for airfare charges. The home business unit G/L code will be the default. If travel

is to be charged to a different G/L code, notify the travel agent at time of reservation.

o Credit card numbers for hotel, car and misc. charges

o Award numbers for airfare, hotels, cars, etc.

o Requirements / preferences: medical restrictions, special meals and seat preferences.

NOTE: Enter your name in the travel profile as it appears on your driver’s license. Your charge

card and award accounts should also show the same exact name.

Class of Service

Travelers are expected to fly in coach class at all times. Upgrades to business or first class may be

allowed in the following instances:

• When approved by the Company CEO

• When a medical condition requires it and documentation from the doctor is presented to proper

management level pre-approving the trip.

• At the employee’s personal expense or by redeeming frequent flyer mileage as long as a lower fare is

not rejected and a full fare taken in order to facilitate the upgrade

• When first class fare is not more expensive than the lowest available coach fare.

Reimbursement for airline clubs requires approval from the EMSC, COO.

Electronic Ticketing

Travelers are expected to use E-tickets. TravelFocus will send itineraries through an email link to Virtually

There. The Electronic Invoice or E-Ticket Receipt in Virtually There will serve as the receipt and must be

submitted with the expense report to substantiate the trip and for reconciling the direct bill statement. This

E-ticket receipt will remain available for 71 days from the date of issue.

Effective March 1, 2007

Page 4 of 11


Emergency Travel Procedures

Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

TravelFocus is open for business from 8:30 am to 8:00 pm CST. After regular business hours, there is an

Emergency 24-hour Travel Hotline 1-800-987-9872. The Emergency Travel Hotline will ask travelers

for the EMSC membership ID, which is N2O0 - EMSC (Nancy 2 Oscar 0).

Cancellations and Unused Tickets

Should travel plans change, call TravelFocus immediately to cancel or modify the reservation as tickets

may be voided for a full refund depending on the airline’s cancellation policy. If the ticket is not refundable

or able to be voided, TravelFocus will place the ticket in the “ticket vault” for future use. Travelers should

promptly use these tickets toward future travel as they expire within 12 months.

LODGING

Making Hotel Reservations

Use TravelFocus for hotel reservations to take advantage of negotiated rates. Travelers are required to:

• Use hotels where the Company or TravelFocus has a negotiated rate;

• Stay in the moderate price range -- average cost per night of $120,

• Ask about promotional or special rates including AAA, AARP, etc. at the time of check in.

Hotel Charges

Movie rentals, video game rentals, mini bar charges, honor bar charges etc. are not business expenses

and will NOT be reimbursed as such. Hotel fitness clubs are an exception and in the interest of employee

health, reasonable hotel fitness club fees will be reimbursed.

Room Guarantee and Hotel Cancellation Procedures

Hotel rooms should be guaranteed for late arrival and cancellations should be made before the time limit

shown on the itinerary (usually between 4:00 p.m. – 6:00 p.m. local time of the property) to avoid “no show”

charges. Trip cancellations may be out of the employee’s control. Thus, reimbursement for “no-show”

charges will be on a case-by-case basis and require approval by appropriate level of management.

Hotel Payment Procedures

Hotel expenses should be paid using the traveler’s personal charge card. The detailed hotel receipt (hotel

folio) that itemizes charges must be submitted with the expense report. No addendum will be accepted

for a hotel receipt, as the IRS requires an actual hotel receipt. If a receipt is lost or not available at the

time of check out, the employee must contact the hotel to obtain an actual receipt.

Effective March 1, 2007

Page 5 of 11


RENTAL CARS AND PERSONAL VEHICLES

Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

Rentals should be made through TravelFocus to insure the Company is billed at the contracted rate.

Travelers may rent a car when:

• Entertaining customers,

• More than 2 employees are traveling together,

• The cost of a rental car is less than public transportation.

Class of Service

Travelers are expected to rent cars in the intermediate category. Full size may be rented when:

• Entertaining customers or two or more company employees are traveling together,

• Transporting excess baggage such as trade show booth displays.

• Cars in the authorized category are not available and traveler can be upgraded at no extra cost

The Company has discounted contracts with both Hertz and Avis – Hertz is primary and Avis is

secondary. Enrollment into the Hertz Gold Club program and Avis Preferred programs is free to company

travelers. Contact TravelFocus or your Travel Administrator for an application.

The Company is self-insured; therefore travelers should DECLINE all rental car insurance coverage

provided by the rental car company. Before accepting a vehicle, inspect it for damage and note damage on

the contract before leaving the lot. Renters are expected to return the car to origin to avoid drop-off

charges and refill the tank prior to return to reduce the cost of fuel.

Personal Vehicle

Travelers may use their personal car for business purposes to save significant time and/or expense, but

adequate insurance coverage should be in force for employee and passenger protection. Travelers will be

reimbursed for business use of personal cars based on the IRS rate per mile at the time of the expense.

The Company will NOT reimburse an employee for any repairs resulting from business travel, for normal

commute mileage, or for fuel purchased for their personal car.

For reimbursement of personal car use for business, travelers must complete the mileage reimbursement

log to record the date, destination, business purpose and mileage for each trip. Submit the mileage

reimbursement log along with related receipts for tolls and parking with the expense report.

TELEPHONE USAGE

Employees will be reimbursed for personal cell or home phone when used for business calls. A copy of the

front side and backside of the phone bill showing the call detail with an “X” beside the business calls must

be submitted for reimbursement.

Travelers will be reimbursed for one personal call for each day away from home on AMR business: Not to

exceed $10.00 for domestic travel or $20.00 for international travel.

Use of air-phones is strongly discouraged due to the high cost. Travelers may use an air-phone if an

emergency or critical business issue is involved.

Travelers should avoid hotel phone surcharges by using the local Company office phone, an 800 number,

their cell phone, charge card, calling card, or public phone.

Effective March 1, 2007

Page 6 of 11


MEALS AND ENTERTAINMENT

Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

The company will reimburse reasonable business entertainment expenditures incurred in fulfilling the

responsibilities of an employee’s position. When entertaining customers or when multiple employees are

present at a business function, the MOST SENIOR level employee must pay and expense the bill. Officer

approval is required to expense a spouse involved in entertaining guests of the company.

Meals and entertainment expenses should be paid for with the employee’s personal charge card. To

comply with IRS substantiation rules, the following information must be detailed on the expense report:

• Name and business relationship of person(s) entertained

• Business purpose and/or subjects discussed

• Name of establishment, date of entertainment / meal, and amount

Every entertainment expense must have a clear-cut business purpose and meet the IRS requirement that it

be “ordinary and necessary”. There must be a business relationship between the company and all persons

entertained whether existing or potential; and the IRS requires that a bona fide business discussion

precede or follow any entertainment.

Concerts, theater, sporting events, tennis court fees, golfing green fees, meals and beverages consumed

at an event or company function are reimbursable customer entertainment expenses. Reasonable limits

should be placed on alcohol cost and consumption – employees are expected to keep alcohol consumption

below legal limits for safe driving purposes.

Business Meals with Fellow Employees

Employees will be reimbursed for business-related meals with other employees when:

• A customer is also present or at least one company employee is from out of town.

• Confidentiality reasons require business to be conducted off company premises.

• Pre approved by management for miscellaneous purposes

Business meals with other employees are suggested at the following limits with a cap of $60 per day:

• $10 per employee for breakfast, including tip.

• $15 per employee for lunch, including tip.

• $30 per employee for dinner, including tip.

IRS requires that all names be listed individually if less than 10 employees are present and if more than 10

employees are present each department and number of employees per department is required.

Personal Meal Expenses

Travelers will only be reimbursed for personal meal expenses when an overnight stay is involved or when

traveling out of town for the day. The daily meal reimbursement is capped at $60 per day including

snacks and tips. This is not a per diem, just a guideline: $5 for Snacks, $10 for Breakfast, $15 for Lunch,

$30 for Dinner).

A receipt is required for all meals or snacks $25 or greater. A receipt is not a tear tab or hand written note.

If a restaurant is unable to provide a receipt with its pre-printed name and address an addendum and proof

of payment is required. More details are listed in the Expense Reporting Procedures section.

Effective March 1, 2007

Page 7 of 11


MISC. TRAVEL

Tipping Guidelines

Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

Waiters: 15 – 20% of the pre-tax amount, include with the meal charge on the expense report.

Taxi/Limo/Shuttle Bus: 10 - 15% of the fare and should be added to the fare on the receipt.

Bellhop/Porters/ Airport curbside check-in: $1.00 per bag

Chambermaid: tipping is not required.

Laundry

Travelers will be reimbursed for reasonable laundry expense if the employee is away from home for at least

five (5) consecutive workdays or when unusual circumstances make these services necessary. Receipts

must be attached for all laundry charges.

Seminars Sponsored by Other Organizations

Fees associated with employee attendance at conventions, meetings and seminars sponsored by outside

organizations are reimbursable with approval from immediate manager or higher authority. Internal

Revenue Service (IRS) rules require that the company report separately the cost of meals associated with

such events. To comply with this regulation, travelers attending such events must complete their expense

reports as follows:

• Record the portion of the cost relating to meals on the “Meals” line.

• Record remaining event costs under “Training, Seminars, Conventions”

• Provide a valid account code for all miscellaneous items.

Cash Advances

Cash advances are granted on a very limited basis. Submit a hard copy check request with appropriate

approvals prior to the trip. The cash advance must be included and reconciled on the expense report

submitted for the trip.

Foreign Travel

When traveling to other countries and foreign currency is used as a form of payment, convert the currency

into US dollars. Print out the conversion rate into US dollars with a date no later than 2 weeks from your

last date of expenses being submitted.

Log into http://finance.yahoo.com/currency or other currency site.

GROUP AND MEETING TRAVEL

Any time travel arrangements are made for 10 or more people traveling to the same destination for a

specific purpose, the Group Expense Report Policy applies to meeting site selection, travel arrangements

for participants and all other aspects of the meeting. All group travel arrangements should be made

through TravelFocus as far in advance as possible to take advantage of the most favorable rates for both

air travel and lodging.

Effective March 1, 2007

Page 8 of 11


Expense Reporting for Group Travel

Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

Whenever possible, each traveler should pay for his/her own travel expenses and submit an expense

report for reimbursement. When expenses are incurred as a group and it is impractical to allocate a share

of the expense to each employee, the region or department must pay for and report the expenditure.

The cost of food and beverages for a group of employees must be reported as “Entertainment” expenses.

All other expenses (i.e., transportation, lodging, etc.) must be reported under the appropriate expense

category. All expense reports associated with a meeting must contain the meeting name (Stars of Life,

Corporate 4 th Qtr Meeting, etc.) or registration number provided by the meeting planner or sponsor.

GIFT POLICY

If an employer gives cash, gift certificates, or similar items that are convertible to cash, the value is

considered additional wages regardless of the amount. (See IRS Regulation 1.132-6(c)). Please refer to

the EMSC Payroll Policy for details on proper handling.

NON ALLOWABLE EXPENSES

SPECIFIC EXPENSES ARE NOT REIMBURSABLE VIA EXPENSE REPORTS:

• No capital expenditures – request via ProcureIT, check request or invoice.

• No purchase of routine goods or services. These items should be handled via ProcureIT or PCard.

The only exception is in the case of an emergency, which must be noted on the receipt.

• No tuition reimbursement – submit proper documentation to HR and they will submit a check request

• No charitable contributions or sponsorships of any kind.

• No rent or extended stay housing payments – set up on recurring payable or submit invoice.

• No supplemental air travel insurance or any other trip insurance.

• No first class upgrades except as stated in this policy.

• No personal medical or dental expenses, barber, manicurist, masseur, etc.

• No personal entertainment: theater, concerts, movies, sporting events, golf, tennis, reading materials,

video games, etc.

• No personal items – clothing, under garments, shoes, socks, briefcases, toiletries, medications, etc.

under any circumstances. This is not considered a business expense even if needed or used while

on business. Tuxedo rental to attend a customer sponsored event that requires EMSC, AMR or

EmCare participation is allowable with appropriate management approval.

• No traffic fines, towing, court costs, etc.

• No replacement or reimbursement of personal property lost, stolen or damaged (sun glasses,

briefcase, cell phone, golf clubs, etc.). Unless otherwise covered under the terms of a current

Collective Bargaining Agreement. This is typically covered by most homeowner’s policies.

• No house, baby or pet sitting fees, no spouse or other family members’ expenses except under certain

circumstances, i.e. relocation.

• No club or other membership dues unless approved in writing by the Company COO.

• No annual fees or any other costs/fees for personal credit cards including any charges resulting from

misuse or lost/stolen cards.

• No costs associated with trip extensions or side trips for personal reasons.

Effective March 1, 2007

Page 9 of 11


EXPENSE REPORTING

Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

Employee business expenses must meet extensive record keeping requirements imposed by the Internal

Revenue Service. The IRS can disallow the deduction for business expense if an employee fails to submit

adequate records in support of the expense. This could result in taxable income to the employee and in

certain cases the employee being held liable for the expense. The company assumes no obligation to

reimburse employees for expenses NOT in compliance with this policy.

Expense reports should be processed via expense report software (NECHO). When this software has

not yet been implemented, the employee needs to submit a manual expense report. All manual

expense reports must have the Employee’s Identification Number to insure proper reimbursement.

• Employees are expected to file expense reports within 15 days after completion of each trip or the

date of the last expense. Do not include multiple trips on the same report, unless the report is strictly

for mileage and meals. Expense reports older than 60 days require COO approval.

• Employee’s immediate manager or the next higher authority must approve his/her expense report.

Employees are NOT authorized to approve their own, a peer’s, or a superior’s travel expense.

• Finance will review each employee’s expense report for calculation accuracy, policy compliance,

business purpose, and proper supporting documents and receipts. All out of compliance expense

reports will be placed on hold and not paid until corrected.

• Employee reimbursement will be processed in the next check run after receipt of the expense report

with accurate information, proper documentation, and appropriate approvals.

• The company paid airfare amount(s) must be recorded on the expense report even though the

employee is not being reimbursed for this amount. The origin and destination city names must be

input in the description field when submitting via NECHO. If more than one flight is being reported use

an additional row to enter the required information.

• All expenses must be clearly and correctly described on the employee expense reimbursement report.

The business purpose of the expense must be clearly stated. When entertaining clients, the name,

title, and their respective company name must be entered in the “attendees” field. If there is not

sufficient room, attach a more detailed description on a separate sheet of paper.

• Receipts must include the name of the vendor, location, date and dollar amount -- restaurant tear tabs

are not acceptable. Receipts must not be altered. If the detail of the receipt is not clear than you must

complete an addendum. The following receipts are acceptable for expense report documentation:

o An itemized hotel receipt (hotel folio) is required for all hotel stays.

o Original receipt completed by the vendor - not hand written. A receipt is required for all meals

and snacks over $25. All tips should be included with that expense – tips for meals added to

restaurant receipt, tips to the cab driver on cab receipt, etc

o Customer copy of charge card slip from vendor.

o Charge card billing statement and personal checks are not acceptable as receipts unless

accompanied by an approved addendum explaining why no individual receipt was available.

o Phone bill per instructions on page 7, “Business Phone Calls”.

o IRS-approved E-ticket Receipt or Electronic Invoice that shows the flight destination/departure

cities, dollar amounts and ticket number(s).

• If a receipt is lost or not available, an addendum explaining the expense, why there is no receipt and

proof of payment MUST be approved by management and submitted with the expense report.

• All internet receipts must indicate proof of payment or an addendum is needed.

Effective March 1, 2007

Page 10 of 11


Expense Report Preparation for Scanning Process

Travel, Entertainment and Expense Report Policy for EMSC, AMR and EmCare

Expense report receipts need to be securely taped on all edges (not stapled) on letter size paper.

• Do not circle or highlight any information on the invoice as it may become unreadable once scanned.

• Print the report in Necho (Expense Report 1 st option) and fax it to the number on the report.

• Make sure information on the expense support documents is legible before submitting.

• Do not submit any unnecessary backup, such as multiple copies of the travel itinerary, multiple copies

of the hotel receipt, etc.

• See Necho expense report processing for additional details.

Effective March 1, 2007

Page 11 of 11

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