Travel and Expense Policy

Effective March 10,2010

Revised September 27, 2012

Overview

Bay Equity reimburses approved associates for travel, entertainment and related expenses incurred while traveling on Company business, and for expenses incurred on behalf of the Company. The expenses must be properly authorized, and submitted upon completion of the project or business trip. Payment of these expenses is the responsibility of the individual associate. All expenses must be approved by a Managing Director or Director with management authority over the individual employee. Any exceptional or extraordinary expenses must receive prior approval by a Managing Director.

The following procedures have been designed to provide you with a comprehensive guideline regarding business expenses. These procedures will ensure timely repayment of business related expenses, provide adequate and necessary documentation of these expenses for the IRS, and provide accurate information for budgeting.

Employees that are approved to submit expense reports are responsible for adhering to Bay Equity’s Travel and Expense Policy.

Travel Authorization

All travel is to be authorized by a Managing Director or Director with management authority over the individual employee prior to making any travel arrangements. All travel is to be arranged by the San Francisco Corporate Receptionist. Please send all travel requests to to request travel.

All reservations should be made at least 14 days in advance when possible in order to obtain the best rates for airfare and hotel accommodations. Travel arranged in less than 14 days must receive approval from a Managing Director or Director.

Business Expense Report Guidelines

Please use the current Bay Equity Expense Report Form, for all travel meals and entertainment, as well as other types of expenses for which you are seeking reimbursement. The Expense Report Form can be found on the Shared C Drive in the Accounting Folder, or on Sharepoint.

The following employees are approved to submit expense reports for reimbursement: Directors, ASMs, RSMs. All other employees should receive approval from a Managing Director or Director with management authority over the individual employee prior to incurring travel or business expenses on the company’s behalf.

Expense reports are paid every Friday. If your expense report is received by Accounts Payableby the end of the day on Tuesday your expenses will be reimbursed on Friday, otherwise they will be paid on the following Friday. To ensure prompt receipt of your reimbursement, send in your completed expense report, including all necessary authorization, to Accounts Payable in San Francisco.

Employees who are seeking reimbursement for any expense including travel, meals or entertainment must complete a Bay Equity Expense Report Form as stated above. Original receipts for all expenses are required and should be attached to the Expense Report Form.

All expenses must be submitted within 30 days from the date the expense was incurred. Those reports not submitted in that time frame will not be reimbursed. All expenses must include the business reason for the cost.

Employee Compensation:

Exempt employees will be paid their normal salary while traveling for business.

Non-exempt employees will be paid their normal hourly rate during travel times while traveling for company business. Travel time includes actual time spent traveling for work, including air, train or car travel. Travel time does not include traveling to an airport or train station, or time spent taking a break from travel in order to eat, sleep, sightsee or engage in other personal activities.

Automobile Expense:

  1. Reimbursable auto expenses include the following:
  1. Parking fees, tolls
  2. Mileage for the use of your personal automobile for business purposes, including travel to and from airports in excess of your normal commute, will be reimbursed at the current IRS standard rate. Mileage expense will not be reimbursed to Account Executives, Loan Officers, or Branch Managers for mileage used in normal sales functions.
  3. Authorized car rental expenses include gas.
  1. When traveling away from home all employees are asked to consider the cost of a taxi versus that of a rental car and chose the more economical.
  1. Similar cost consideration should also be made in regards to transportation to the airport (i.e. use public transportation (i.e.: BART) instead of a taxi, or driving)
  1. Non-reimbursable auto expenses include the following:
  1. Collision or personal accident insurance on rental cars
  2. Gas for personal cars for business purposes, and repairs and maintenance for personal cars
  3. Parking tickets and traffic violations of any kind
  4. Membership to preferred customer car rental programs

Overnight Lodging:

  1. The San Francisco Corporate Receptionist will book all lodging. Contact the Receptionist at 415-632-5150 or send to to make travel requests
  1. Hotel reservations should be made for under $199per night whenever possible. Hotel reservation greater than $199must have prior approval by a Managing Director.
  1. Reimbursable lodging expenses include the following
  1. Single room rate and applicable taxes
  2. Reasonable tips
  1. Non-reimbursablelodgingexpenses include the following:
  1. Personal items such as: haircuts, manicures, toiletries, clothing, shoe shines, newspapers, magazines, etc.
  2. Personal forms of entertainment such as movies, pool or health club fees, sports equipment etc.
  3. Expenses incurred for failure to cancel guaranteed hotel reservations (Note: It is the employee’s responsibility to cancel hotel reservation. When you cancel your reservations, obtain the cancellation number for your protection against erroneously billed charges.)
  4. Hotel memberships
  5. Laundry services

Airfare:

The associate should strive to find the most cost effectiveairfare available.All reservations should be made at least 14 days in advance when possible in order to obtain the best rates. Travel arranged in less than 14 days must receive approval from a Managing Director or Director.

  1. The San Francisco Corporate Receptionist will book all airfare. Contact the Receptionist at 415-632-5150 or send to to make travel requests.
  1. The company has a policy of only reimbursing for coach class airfareAirline. Class of service upgrade fees will not be reimbursed
  1. Airline change fees and baggage fees will be reimbursed only if they are reasonable and necessary.
  1. Airline club fees will not be reimbursed
  1. Travel times should be arranged to minimize disruption and maximize normal business hours when possible.

Meals:

Meals should be identified separately on your Expense report if they are included in your Hotel bill.

  1. Bay Equity will reimburse up to a maximum of $71 per day. Receipts must be provided to support expenses. Only actual, documented expenses will be reimbursed. Below is a guideline of expense level to follow to meet the $71 maximum.

$12Breakfast

$18Lunch

$41Dinner

  1. Tips should be made within a guideline of 15% of the total bill
  1. Expenses incurred for cover charges, liquor or entertainment when not accompanied by a customer or client is considered personal and therefore not reimbursable.
  1. Meal expenses incurred while attending seminars or conferences in the metro area where you normally work are not reimbursable.
  1. Meals require documentation of who was present and the purpose of the business meal.
  1. Meal receipts must be the original restaurant receipt, not just the credit card voucher receipt

Entertainment:

  1. Reimbursable entertainment expenses include the following:
  1. A Bay Equity associate and client must be present to qualify as a reimbursable entertainment expense. A clear business purpose must be documented, including names of individuals, dates and reason it is a business expense such as recruiting etc.
  1. Non-reimbursable entertainment expenses include the following:
  1. Expenses incurred by individuals for gifts to associates relating to personal events such as a birth, illness or death.
  2. Expenses for personal gifts, meals, or treats for otherassociates such as promotion or congratulation functions, transfers, holiday parties, birthdays, etc.
  3. All prizes or gift certificates to associates are taxable and must be processed by the HR/Accounting department. They must be approved in advance and in writing by a Managing Director and HR.

Business Gifts:

  1. The giving or receiving of gifts should generally be avoided and discouraged by associates.
  2. No gift, regardless of value, is permitted to be given to any government or quasi-government entity or its employees. This includes GNMA, FNMA, FHLMC, FHA, VA, HUD, etc.
  3. Any request for reimbursement of a business gift must be accompanied by the name and affiliation of each recipient.
  4. Any gift given by an associate in excess of $35 will require the written approval of a Managing Director.

Travel Advances:

  1. Payroll advances will not be made
  2. Travel advances will not be made

Expense Reports

Please remember the following when completing your Expense Report

  1. All expenses must include the business reason for the cost.
  2. Meals with clients must indicate the business reason and who was present.
  3. Mileage will be reimbursed at the current IRS approved rate. Mileage must indicate business reason, where the travel was to and from and include the number of miles driven in excess of your normal commute.
  4. All expense reports require the written approval of a Managing Director or Director with management authority over that individual. Signing the expense report means the authorizing manager has reviewed the expense report for accuracy (computations are correct) and for compliance with this policy. All expense reports will be reviewed by a Managing Director prior to payment to the employee.
  5. Managing Directors must have their expense reports approved by another Managing Director
  6. If expense reports are not completed correctly they will be not be paid and will be returned to the associate. The associate can then resubmit a corrected expense report for reimbursement.

Non-reimbursable Expenses

Quick List

The following items are not eligible for reimbursement

  • Airline Club fees
  • Annual fees for personal credit cards/travelers checks
  • Collision or Personal accident insurance on rental cars
  • Gas for personal cars used for business purposes
  • Parking tickets and traffic violations
  • Memberships to preferred customer car rental programs
  • Personal items such as: haircuts, manicures, toiletries, clothing, newspapers, magazines, etc.
  • Personal entertainment such as: movies, pool or health club fees, etc.
  • Expenses incurred for cover charges, liquor or entertainment when not accompanied by a client
  • Hotel memberships
  • Laundry services
  • Hotel cancellation fees
  • Personal gifts, meals, or treats for other employees such as promotions or congratulation functions, transfers, holiday parties, birthdays, etc.
  • Gifts to employees relating to personal events such as birth illness of death
  • Meal expenses while attending local seminars.
  • Airline class of service upgrade fees
  • Cell phone expense

Travel and expense policy 2012.docrev. September 26, 2012Page | 1