InstyMeds Corporation
Travel Policy
INDEX
Statement of Purpose 2
Responsibilities and Enforcement 2
Receipts/Documentation 3
Travel Arrangements 4
Air Travel 4
Motor Vehicle Travel 4
Lodging 5
Meals & Business Entertainment 5
Cellular Phones 6
Gratuities 6
Saturday Night Stay and Spouse Travel 7
Non-Reimbursable Expenses 8
Expense Report Procedures 9
Reporting Guidelines and Helpful Hints 9
Statement of Purpose
This document establishes guidelines and policies governing the reimbursement of travel and entertainment expenses incurred during the conduct of InstyMeds business. The Company will reimburse an employee ordinary, necessary and reasonable travel expenses when directly connected with, or pertaining to the transaction of InstyMeds business. When submitting expense reports to claim reimbursement, employees are expected to neither gain nor lose financially.
The following policies and guidelines are intended to assure maximum cost control for InstyMeds, while maintaining a high level of quality and consistency in services and accommodations for our travelers.
This document serves as the standard travel policy and guideline for all InstyMeds employees. In all cases, employees are expected to exercise prudent judgment regarding travel and entertainment expenses covered by these guidelines. Cost, convenience and comfort must be balanced in making travel decisions. The quality of travel accommodations, entertainment and related expenses should be governed by what is reasonable and appropriate to achieve the business purpose of the trip. Employees submitting expenses that are not in compliance with this policy risk delayed, partial, or forfeited reimbursement. Cases of significant abuse will result in disciplinary action, up to and including termination.
Certain items may be discussed in more than one place in this document as the item relates to various areas of the overall policy.
Responsibilities and Enforcement
InstyMeds Employees who incur travel and entertainment expenses are responsible for complying with this policy. Whenever possible the expense report should be submitted for reimbursement after the completion of a business trip. Company will reimburse employees for authorized approved business travel and entertainment expenses which are received by Accounts Payable within 90 days of the expense date. However, if the charge is reimbursable by a client, expenses must be received by Accounts Payable within 30 days.
The use of our preferred suppliers is of paramount importance. Only with your cooperation will we maintain the integrity and optimal pricing of our programs as well as those that Blue Ribbon Business Travel International are making available to us. Please provide a current ravel profile to Blue Ribbon in the Rearden Personal Assistant online system.
The employee’s signature certifies that all expenditures listed on the expense report are clearly and correctly described, actual amounts in all instances are shown, and expenses are supported by receipts (where possible) in accordance with this policy. Employees and their manager are jointly accountable for T&P policy compliance.
Receipts / Documentation of Expenses
Documentation of expenses is required for reimbursement for InstyMeds and IRS purposes. All travelers should make it a practice to support all expenses, regardless of the amount, with a receipt. The following are guidelines for submission of supporting documentation.
– A receipt or other appropriate documentation should support all expenses submitted for reimbursement. All expenses over $10 require the submission of an itemized receipt or other appropriate supporting documentation for reimbursement.
– All air travel receipts/itineraries must be submitted with the related expense report. Support for any other transportation expenses (i.e., cab, bus, etc.) must be provided.
– All business meals in excess of $10 and all entertainment meals, regardless of cost, require an itemized receipt. The $10 limit has been established to assist travelers by not requiring a receipt for all small, quick meals. Remember, even if a receipt is not required or provided, only the exact actual amount of the meal should be submitted for reimbursement.
– A receipt for all hotel charges must be provided for reimbursement. "Mini bar" and in-room movie charges are not reimbursable expenses.
– A receipt must support all other miscellaneous costs if at all possible.
In general, travelers should submit a receipt for all items on an expense report if a receipt was provided. The $10 limit has been set to provide an added level of convenience to our travelers and should not be interpreted that no expense under $10 requires a receipt.
Travel Arrangements
To the fullest extent possible, all travel arrangements (to include airline, lodging, rental car, etc.) should be arranged through Blue Ribbon Business Travel International. The choice of transportation should be based on the most efficient use of an employee’s time and cost to the Company. Cost effectiveness and negotiated discounts, resulting in savings to the Company, can be monitored only if an authorized InstyMeds travel agency handles all business travel.
Air Travel
a. All domestic business air travel will be by coach/tourist/economy class. Upgrades are allowed at the traveler's personal expense. (If there is no increase to Company expense, upgrade to first class is allowed.)
b. All airline reservations should be made at least 1 day in advance. Reservations made less than 1 day in advance require Senior Managers approval prior to ticketing.
c. When making airline reservations, employees are required to accept flights that utilize Lowest Logical Fare Routing. This includes alternate airlines such as ATA, Frontier, Southwest etc. Employees may be required to take a connecting flight, a direct flight or go to an alternate airport if the savings to the Company or customer is greater than $100.00, and the routing does not increase the one-way total elapsed trip time by more than two hours. If lost savings to the Company or customer is greater than $100, Senior Management approval is required prior to ticketing.
d. Frequent Flyer program benefits must in no way influence flight selection.
e. Ticketless Travel/e-Tickets - Employees must retain receipts/itineraries provided by Blue Ribbon Business Travel International.
g. The Company will reimburse for nonrefundable tickets canceled due to changes in business plans. Nonrefundable tickets can be used toward the purchase of another ticket for a service fee. Tickets are valid for exchange for a minimum of one year. If you had an e-ticket, notify the travel agency of your change in plans and they will make the necessary notation in your profile.
Motor Vehicle Travel
a. Parking: Parking at the airport or while visiting customers will be reimbursed to a reasonable level. Employees should use off-site parking when possible. Keep in mind that the cost of a taxi may be less expensive than airport parking for an extended trip.
b. Public Transport (Bus/Shuttle/Taxi)
The cost of public transportation to and from places of business, hotels, or airports in connection with business activities is reimbursable. Actual cost of transportation used plus tips not exceeding 15% of total bill will be reimbursed.
c. Rental Car
i) Employees should rent cars only when other means of transportation are unavailable, more costly or impractical. The use of a rental car must be justified as a business need and not as a matter of personal convenience.
ii) Decline additional insurance, the Company’s coverage applies to all travelers.
iii) All rental cars should be intermediate or smaller, unless a larger car is needed due to entertaining a client or traveling with more than three (3) employees. Any charges incurred for renting a larger vehicle may become the responsibility of the employee.
iv) Every reasonable effort must be made to return the rental car to the original rental location (unless approved for a one-way rental). Cars must be returned on time to avoid additional hourly charges (late fees begin to accrue after a one-hour grace period).
v) Employees are expected to refuel rental cars prior to returning them to the vendor.
vi) Gas purchased for the rented vehicle at a service or gasoline station is a reimbursable expense.
vii) Any employee traveling on behalf of the Company (in a leased vehicle, rented vehicle, or in their personal car) involved in a car accident should immediately contact the CFO for information regarding the procedures to follow.
viii) All employees are responsible for obeying all federal, state, and local governmental laws, including motor vehicle laws. The Company will not reimburse employees for penalties involving moving, traffic, parking or other motor vehicle violations while performing Company business.
d. Personal Vehicle: The Company will reimburse employees for business use of their personal vehicle for trips to/from the airport and meetings at the rate per mile allowed by the IRS (minus standard commute miles). This rate will be reviewed annually.
e. Sedan/Limousine Services: This service should only be used in rare instances and should be approved by the CEO or CFO.
f. Employees should consider using a rental vehicle when the meeting site is more than 150 miles from their starting point (i.e.: home, office). This should only be done when the rental cost plus gas is less than the mileage reimbursement.
Lodging
a. When business travel takes an employee out of town overnight, employees are expected to use, reasonably priced hotels or motels that provide a corporate discount rate. All hotels should be booked through the designated travel agency, NOT directly through the hotel. An employee should strive to obtain a cost below $100 per night (excluding taxes).
b. If the employee chooses to stay with family or friends while traveling, the Company will reimburse a reasonable gratuity (i.e. flowers, meal) to thank them for their hospitality and inconvenience.
c. Employees are responsible for canceling hotel rooms and must do so through the designated travel agency. Employees will be held responsible for requesting and recording the cancellation number and will not be reimbursed for “no-show” charges.
d. Frequent guest programs may in no way influence hotel choice.
e. Avoid using hotel phones to avoid their high surcharges. Cell phones should be used whenever possible.
Meals & Business Entertainment
a. Employees are expected to be reasonable, use good judgment and use restaurants and types of entertainment that fit the business purpose.
b. Personal (out-of-town) meals are defined as meal expenses incurred by employees when dining alone on an overnight trip.
c. Business meals are defined as meals taken with other Company employees, potential employees, clients, potential clients, and business partners. Alcohol will only be reimbursed as part of client entertainment in appropriate circumstances.
d. Entertainment expense including such events as theater, sports or nightclubs, where a business discussion takes place before, during, or immediately after the event, will be reimbursed if the person entertained has a potential or actual business relationship with the Company.
e. Actual costs of out of town meals on overnight trips are reimbursable with a maximum of $50 per day. Exceptions are allowed for certain markets (Chicago, New York City, Los Angeles) where the cost of living is significantly higher. Many hotels provide breakfast at no charge. Alcohol is not a reimbursable expense.
f. Extended Day Policy: Any employee shall be entitled to a meal allowance of up to $10.00 if the employee’s work and travel hours (after deducting normal commuting time to and from the office) for one day equals or exceeds 10 hours.
For example, employee leaves for site A at 6:30am, returns home at 6:30pm, 1 hour lunch and 1 hour of normal commuting (12 hours – 1-1=10 hours).
The amount spent should be shown in the appropriate meal column on your expense report. This policy does not relate to employees who make overnight trips. See overnight policy.
g. Meals will be reimbursed for actual expense when a proper receipt is provided with the expense report. A proper receipt is defined as a credit card record of charge with itemized receipt. If you must pay cash, an itemized receipt will be accepted.
h. For business meal and entertainment expenses, the following documentation is required by the IRS and must be included on the expense report:
i) Names of individuals present, their titles and Company name;
ii) Name and location of meal or event;
iii) Exact amount and date of expense;
iv) Specific business topic;
Cellular Phones
The company will provide cell phone reimbursement based on the business needs and estimated usage of a particular employee.
Gratuities
Gratuities for certain services will be reimbursed. The amount of the gratuity should fairly represent the level of service received. The following list is a guideline for all employees to use when paying out gratuities:
Service Amount
Personal Meals 15% - 18%
Business Meals 15% - 18%
Cabs/Shuttle Service 15%
Baggage Handlers $1 per bag
Door Attendants $1 per day/per attendant
Maids $1 per day/per maid
Saturday Night Stay and Spouse Travel
If you travel for business and stay over a Saturday night to save on airfare expenses, you may receive reimbursement of your additional expenses during the extended stay (i.e., hotel, meals, car rental. To use this incentive, the Company requires that you:
a. At the time of booking, ask the travel agent to document on your itinerary the cost of the “lowest applicable business airfare” had you not stayed over a Saturday night. A notation should be made in the “Remarks” section of the expense report indicating the airfare savings for Saturday night stay.
b. Record your hotel, meal, and rental car expenses on your expense report with a notation that they were part of the Saturday night stay savings.
c. Submit your expense report with all receipts, and copy of your itinerary showing the savings, to Accounts Payable.
a. If business warrants staying over a full weekend, the limitations (savings must be greater than costs) which are part of the Saturday night stay policy do not apply.
b. Spouse/Guest Travel: Travel expenses for a spouse or guest are only reimbursable if the trip is made at the Company’s request or if there is a bona fide business purpose for taking the spouse or other individual. All spouse/guest travel must have approval prior to trip commencement by Senior Management.
Non-Reimbursable Expenses
Personal expenses incurred while traveling are not reimbursable. Examples of these expenses include:
a) Annual fees for frequent flyer, frequent guest clubs or car rental clubs
b) Traffic and parking violations, towing charges
c) Hotel expenses incurred from failing to cancel reservations
d) Replacement cost of briefcases and luggage or contents lost/delayed while on Company business (including toiletry articles such as toothpaste, toothbrush, deodorant, etc.) Employees should file claims with the airlines.
e) Hotel room movies
f) Hotel health and fitness center charges
g) Magazines and/or books