Avid Corporate Policy
Category: / Travel and EntertainmentPolicy: / Travel and Business Expense Reimbursement Policy
Policy No: / TE 3.0
Effective Date: / November 1, 2013
Travel and Business Expense ReimbursementPolicy
Scope
This document provides policies, proceduresand guidelines for all employees, consultants, contractors and employment applicants of Avid, unless such employee, consultant or contractor has a written agreement with Avid that provides for reimbursement of certain business related expenses outside of this policy. This policy applies globally, subject to local laws and regulations.
All employees, consultants, contractors and employment applicants subject to this policy, are referred to as a “Traveler” in this policy.
Purpose
This document defines the specific policy to be followed when traveling on Avid business and when incurring expenses on behalf of Avid, as well as employee accountability for Company funds.
These policies and procedures are designed to have consistent, standard and clear guidelines for travel and entertainment expenses. They are intended to provide the appropriate level of accounting and business controls for Avid to ensure that expenses are appropriate and reasonable. At their discretion, managers may impose more restrictive guidelines for budgetary or control reasons, but they may not be less restrictive than the guidelines stated in this policy.
Policy
All travel and business related expenses must be pre-approved by the employee’s immediate manager, except for quota carrying sales and pre-sales personnel, who must obtain pre-approval for travel within 7 days of the request. Pre-approval for travel should be obtained via Avid’s on-line Travel on Demand reporting tool. Avid’s policy is toreimburse employees for all out-of-pocket expenses incurred while on business that would not otherwise be incurred. Expenses that are of a personal nature or expenses that would be incurred whether or not theemployee was on business are not eligible for reimbursement. Avid expects employees whomust travel to do so with a reasonable level of service and comfort at the lowest possible cost. Travelersare expected to travel via the least expensive, most direct, and efficient means available. It is recognizedthat the nature and amount of expense may vary with the objectives of the employee’s assignments, thesurrounding circumstances and geographical location.
Good judgment on the part of each employeeremains the most effective control over expenses. A lack of restraint or an attitude of laxity orextravagance while incurring expenses on behalf of Avid is not acceptable.
Responsibility
The traveler is responsible for complying with Avid’s travel policy. Travelers who do not comply with this policy may be subject to delay or denial of reimbursement. Individuals who incur business expenses should neither gain norlose personal funds as a result of their travel. The traveler is responsible for submitting all out-of-pockettravel and entertainment expense reports along with all documentation and receipts when required in accordance with this policy. The traveler may delegate responsibility for preparation of the forms to an associate but will alwaysretain accountability for travel expenses. Direct managers who approve the expense reports are responsiblefor accurately reviewing expense reports for compliance. No employee is authorized to approve his/herown, or a peer’s travel expense report.
Pre-Approval
With the exception of quota carrying sales and pre-sales personnel, all travelers must obtain pre-approval prior to traveling. Request for travel should be initiated through the SAP Travel on Demand system. Non-refundable travel reservations should not be made until trip is approved by traveler’s manager. For quota carrying sales and pre-sales personnel, any travel with the next seven day period must obtain approval from two layers up in the organization (ie, traveler must obtain approval from his/her manager’s manager.)
Effective Date and Transition
This policy is effective as of November 1, 2013. Unless otherwise noted, any expenses incurred on or subsequent to November 1, 2013 are subject to the provisions of this policy.
Key Roles
Executive Leadership Team (ELT)
Approves this policy
See Appendix D for list of current ELT
Executive Vice President – CAO/CFO or Designee
Approves any exceptions to this policy over $50. Exceptions under $50 may be approved by the traveler’s manager.
Manager (this includes Project Managers managing a project budget)
Approves travel
Reviews travel expense report and certifies compliance with Avid policy
Employee/Traveler
Complies with this Travel Policy
Accounts Payable/ T&E administration
Performs audits on expense submissions to ensure compliance with policy
Process payments to travelers
Travel Management
In the interest of obtaining the lowest fare or generating volume discounts, Avid has contracted with a travel management company (TMC) to facilitate our employees and contractors travel activities. Please refer to Appendix C for the list of our TMC partners by geography. The value of the travel agency is optimized when all Avid business is consolidated through one agency. Therefore, all travel on behalf of the Company including: air, car rental and hotels should be booked through the local TMC.
All employees who travel on behalf of the company must complete a Traveler Profile with the TMC. The travel agency will maintain this profile and can be changed at any time by the traveler. Avid is charged a ticketing fee by the TMCbased on the booking option selected. When available, booking your travel reservations via the TMC’s online booking tool will result in a lower fee rather than calling or emailing your request to a travel consultant. TMC fees will be charged to your cost center, therefore, whenever possible, book via the on-line tool. The use of other traditional internet services for booking travel arrangements is not allowed and will not be reimbursed. By using the online booking tool, you are helping Avid save on service fees and time as well as consolidating Avid’s travel spend for maximum negotiating leverage as certain airline/hotel contracts have share requirements that must be met to reach corporate-wide discounts
The travel agency willadvise travelers of compliance with this travel policy when booking travel and in some instances will require pre-approval before booking certain out of policy items such as airline upgrades.
Airline & rail tickets will be direct billed to Avid. Other business related expenses must be submitted for reimbursement via an expense claim/report.
Expense Reporting
Employees must be submittedfor reimbursement via SAP’s online expense system (SAP Travel on Demand). Contractors and consultants should provide a written report in accordance with their agreement with the Company.
Submit request for travel in advance of making travel arrangements, when applicable.
Submit expense claim/report within 30 business days of returning from your business trip
Receipt is required for any expense over the equivalent of USD $25.00
For evidence that travel was booked through the TMC, include the itinerary generated from the TMC with your expense reimbursement submission.
For travel that results in charges outside of your local currency, submit a copy of your credit card statement to verify the exchange rate. For foreign currency cash expenses, please submit appropriate conversion calculation from a currency conversion website such as a recent foreign exchange conversion receipt with your expense reimbursement request.
When traveling abroad, where possible please ask for a tax/VAT (Value Added Tax) receipt so the company can reclaim the tax/VAT back to claim these costs. International tax laws require us to submit original receipts when reclaim foreign VAT taxes. Please send any original receipts from outside the Traveler’s home country of residence to the local Accounts Payable team.
Local/regional laws and regulations must be followed when documentation is submitted for reimbursement
For tax purposes, employees should retail original receipts for their own tax records.
All expense reports and related receipts must be reviewed by your designated manager prior to
reimbursement. It is the responsibility of the manager to be familiar with Avid’s travel and expense policy and to diligently review the report and related receipts.
All expenses must also be in the local currency of the employee’s home office/country.
Intentional falsification of expense report documents and/or fraudulent submissions by the traveler may be grounds for termination of employmentor consulting or contracting agreement.
Airfare:
It is the Company’s policy to reserve the lowest airfare whenever possible. The TMCwill report back to Avid by traveler & cost center the lost savings if the lowest fare is declined.
- Flightsunder6 hours will be reserved at the lowest logical coach/economy class airfare
- Individual flight legsover 6 hoursare eligible for an upgrade to premium economy/ business class with Manager Approval. If you are requesting business class, EVP –CAO/CFOApproval is required
Personal, Chartered & Private Aircraft
While traveling on company business, Avid does not allow employees to:
- Pilot an aircraft
- Authorize anyone to fly their own or leased aircraft
- Charter a plane or be required to incur the cost of the charter unless pre-approved by the CEO or CFO
- Travel on non-commercially scheduled aircraft, including that of a customer or prospect, if you are required to sign a waiver or release of liability
This policy applies whether the trip is for a seminar, Company meeting, customer event or standard business trip.
Alcohol Policy
Employees are expected to act responsibly in relation to alcoholconsumption while on a business trip and reminded to comply with ethical business conduct and the Company’s Code of Business Conduct and Ethics.
Car Rental
Travelersmay rent a car to get to their destination when driving is more cost effective than airline or rail travel. Travelersmay rent a car at their destination when it is less expensive than other transportationmodes such as taxis, airport limousines and airport shuttles. Many hotels have shuttle services to and fromthe airport. This option should be used in lieu ofcar rental whenever possible. Whenevermultiple travelersare traveling together and their destinations are the same or similar, they should ride together unless impractical.
Company’s preferred car rental supplier is to be reserved for all business rentals (when available). Please refer to Appendix A for the preferred car rental supplier.
Travelersmust reserve a car in the mid-size (or lower) category unless a specific business, physical, or medical reasonnecessitates another class of rental. At the time of rental, inspect the car and be surethat any damage found is noted on the contract before the vehicle is accepted. When plans change thetraveleris responsible for canceling or changing rental car reservations.
Avid has obtained a company-wide insurance policy to provide coverage for damage and
Collision for rentals with our preferred providers, therefore you should decline the additional insurance coverage. Additional insurance coverage is not reimbursable. For rentals in instances where our preferred providers are not available (for example, outside of the United States), purchase car rental insurance and submit the expense for reimbursement.
Gasoline for use in rental cars is reimbursable with proper documentation. Receipts for gasoline, other thanfrom the rental agency and noted on bill, must be submitted with the expense report. Refuel the rental carprior to returning it to avoid costly refueling charges.
GPS guidance devices offered by the rental car company is not a reimbursable expense. Travelers should decline this option at the time of taking possession of their rental car.
Cell Phone
Refer to Avid’s mobile device policy regarding cellular telephone usage for employeeswhose job requires the employee to be available to receive phone calls during and outside regular business hours or to conduct business over a cell phone while traveling.
Eligible employees whose positions require permanent on call status, frequent business travel or who’s cell phone business usage is more than 50% of their typical total cell phone usage will be reimbursed up to a maximum amount of up to US$100 (or international currency equivalent) per month for cellular voice and data service charges. In addition, the Company will reasonably reimburse international plans when the employee travels abroad or if an employee’s responsibilities require international calling from their home location.Contractors and consultants will be reimbursed subject to their individual agreements.Eligibility will be based upon an approved list of roles or ELT approval if the person does not hold one of the eligible roles.
With the exception international charges or where local regulations require a receipt/invoice submission, no expense claim needs to be made and no mobile invoices or bills need to be submitted. Eligibleemployees will automatically receive the US$100 monthly reimbursement in their pay. International charges must be approved by that employee’s manager and submitted through the normal travel expense process using SAP Travel on Demand. Practice may vary by geography depending on local tax and regulatory provisions. Please refer to the mobile device policy for more information.
Transitional Note for employees with an Avid owned device: Beginning November 4, 2013, any existing Company owned mobile devices and service will begin to be released to personal liability accounts by Information Services on your behalf.
Transitional Note for employees with personal devices who currently expense their monthly service: This policy will be effective for any monthly billing plans after December 1, 2013.
Approval
The Travel and Expense Administration group will maintain a master copy of approved eligible employees and the levels of reimbursement.
Any exceptions to his policy must be approved by an ELT member to ensure consistent application of this policy across the Company. The company reserves the right not to approve any request for any of the privileges expressed in this policy.
Frequent travelers are encouraged to use WiFi or MiFi devices as a method of connectivity on the road in lieu of hotel/ airport/ other internet services. These devices can be procured from your wireless provider. Plans should be approved by the traveler’s manager and should be limited to employees who travel at least 50% of the time.
Please refer to the Global Mobile policy for additional information of Avid’s full mobile policy.
Frequent Flyer and Hotel Loyalty Programs
Frequent flyer and hotel loyalty program benefits can be retained by the employee, but should not be the basis for switching air schedules, hotel accommodations or car rentals unless such choice is reasonably equal in cost to the lowest acceptable alternative. The Company will not reimburse any membership fees associated with frequent flyer or airport clubs.
Group Travel, Trade Show/Exhibit, Conference or Off Site Meeting
When 10 or more are traveling to the same destination contact o coordinate discounted rates.
Travel expenses incurred while attending a trade show, exhibit, conference or off-site meeting, must be in compliance with Avid’s Corporate Travel Policy for reimbursement.
Hotel
Avid’s policy on hotel accommodations takes employee safety into consideration whenmaking allowances for a choice of lodging. Travelers are entitled to accommodations that are suitably
located and meet reasonable standards for safety, cleanliness and comfort.
Avid maintains negotiated rate agreements with preferred hotels in cities where there is a local presence or a high volume of travel. When possible, apreferred hotel is to be chosen. Please refer to Appendix A for a listing of preferred hotels. If a preferred hotel is not available, or you are visiting a city that does not have a preferred hotel, the expectation is that a “reasonably priced” hotel is selected, comparable to what a preferred hotel would have offered. Avid has established a strategic relationship with the Intercontinental Hotel Group (IHG) and travelers are encouraged to select IHG hotels when specific preferred hotels are not available. Reports on non-compliance to policy in terms of preferred hotels, booking channels and rates are prepared on a monthly basis for management. Keep in mind that any booking not made through TMC or the online tool is subject to not being reimbursed.
For extended residence, the employee should work with TMCto obtain accommodations on a weekly or monthly basis at reduced rates.
All hotel reservations are to be made by the authorized travel agents through TMC or the online tool. Should the employee need to change or cancel the reservation, it is the employee’s responsibility to cancel the reservation in sufficient time to avoid the charge for guaranteed late arrival by either notifying the travel agent, or by calling the hotel directly. The Company will not reimburse any charges by the hotel for a “no-show” due to an employee’s failure to comply with this requirement unless there are extenuating circumstances, and has appropriate manager approval.