BUSINESS EXPENSE GUIDELINES

1999

GENERAL POLICY

  1. An Expense Report must be completed for each applicable employee at least once monthly. The expense report will summarize all expenses for the relevant time period, with supporting receipts attached. No expense will be reimbursed without a completed and approved Expense Report.
  2. Your Division Manager must approve all Expense Reports.
  3. Valid business expenses are reasonable costs incurred by employees in performing company business.
  4. Purchases of gasoline, oil and related automobile expenses should be made using Corporate Credit Cards.
  5. Other expenses should be made using personal credit cards. Cash payments should be kept to an absolute minimum.
EXPENSE REPORTS
  1. Expense Reports must be completed and submitted for each employee with qualifying expenses at least once a month.
  2. Each Expense Report must contain the name of the employee, title or position and their department/division. The person submitting the report shall sign their Expense Report.
  3. An Expense Report should relate to one employee’s expenses only. In the event that an employee must pay expenses of another employee (e.g. new employee, no corporate card yet), those expenses paid for and claimed on his behalf should be initialed by that other employee on the face of the expense report. This is to avoid two claims being made for the same expense.
  4. Our Expense Report form is divided into two sections. The uppers section is used to summarize expenses you incurred while on company business and might include travel costs, lodging and meals.
  5. The lower section of the Expense Report relates to expenses associated with entertaining customers and/or vendors. Expenses incurred in this regard must include details as to the type of expense together with the name and corporate affiliation of the person(s) attending the event.
  6. Receipts must be attached to support all the amounts on the expense report, including credit card receipts. Tear off strips and handwritten receipts are not acceptable forms of proof.
REVIEW AND AUTHORIZATION
  1. Each expense report must be signed and dated by the originating employee
  2. Reports should be checked by an accounting staff member for accuracy and completeness; this must include vouchering the line items on the expense report to the attached receipts, checking descriptions, totals, etc.
  3. Expense reports should be approved and signed by an employee’s Division Manager.
WHAT ARE VALID BUSINESS EXPENSES?

The rule of thumb here is reasonableness. We do not wish to impose strict detailed rules and so have outlined below a few basic guidelines which should be respected.

  1. Accommodation and Meals: - While we do not have a policy on the grade of hotels and restaurants that should be chosen, everyone must be cost conscious. Please use our company contacts in the area to obtain the best rates available to the company.
  2. Telephone calls: - Use company telephones where possible. Where this is not possible, company issued calling cards should be used. Hotel "charge calls" (made directly from your room) and airline “airfones” are prohibitively expensive and should only be used in exceptional circumstances.
  3. Air fares: - Whenever possible, air travel bookings should be made at least 7 days in advance and include a Saturday night stay to take advantage of better rates. Some Internet sites can offer cheaper fares compared with travel agents. The company allows the employee to “keep” any Frequent Flyer miles that may be accrued. The Company shall only reimburse for coach class fares.
  4. Entertainment: -
  • Expense accounts are intended to entertain clients and to promote business;
  • Excessive tipping should not be made at the company’s expenses, and gratuities of fifteen (15%) are customary.
  • Where a number of company employees attend the same business function, the most senior manager present must pick up the tab.
  1. Automobile Expenses
  • Expenses relating to the operation of a company vehicle (such as gas, oil, etc.) should be charged to the company credit card.
  • Repairs (including tires) should be charged using a personal credit card. A copy of the garage receipt that identifies the vehicle and the nature of the repairs must be included with the Expense Report.
  • Incidentals such as mats, bed liners and other expenses not directly related to the operation of the vehicle must be authorized and approved by your Division Manager prior to incurring the expense.