Travel Expenditure Policy
ITA – Premium: Strategy & Planning Tool

Introduction: How to Use This Tool

This policy is meant as a guideline, and should be supplemented by travel expense procedures and processes currently in place at your organization.

To use this template, simply fill in the blanks indicated by [square brackets] and delete all introductory and explanatory text in dark grey.

Purpose

The purpose of this policy is to establish guidelines for the travel-related expenses of [company name] employees for business-related purposes. The intent is to ensure that traveling employees are aware of what is considered an acceptable expense and expenses that will be eligible for reimbursement by [company name]. This policy is designed to protect the employee from loss of personal funds, as well as protect [company name] from incurring unnecessary costs.

Scope

This policy applies to any [company name] employee who is traveling for business reasons, for [company name] employees who make travel arrangements, and should be used by employees who review, approve, process, or record travel documentation.

Senior managers, supervisors, and departmental managers are responsible for assuring, within their business units or departments, that:

  • Proper authorization for travel is obtained before travel commitments are made.
  • Any travel expenditure over [specify dollar amount]is supported with detailed receipts.
  • Time and expenses required for the trip are justified and other methods of more cost-effective communication (i.e. teleconferencing) have been assessed.
  • Funds are available within the budget to meet travel arrangements.
  • Any other responsibilities the Company deems relevant.

General Procedures Prior to Travel

All employees must have their travel plans approved by their supervisor or departmental manager prior to commitment of travel plans.

Travel Authorization forms (if applicable) must be completed and signed by the supervisor or departmental manager. This eliminates problems pertaining to insurance coverage and regulations by ensuring travel is for authorized [company name] business purposes. This form should include destination, length of stay, an outline of the trip agenda, and estimated costs.

Payment of spouse/companion/family travel costs will not be covered. If business travel is combined with personal travel ventures, [company name] is responsible only for reimbursing the business portion of the trip.

Travel Expenditures

Approved expenses will be reimbursed through [company name] funds to the traveling employee after completion of travel and submission of an approved expense report and supporting documentation. If no corporate credit card or cash advance is supplied, the traveling employee is expected to incur the cost until reimbursement by [company name].

Specify acceptable receipts to be submitted.

Lodging

Travel arrangements can be made either by the company, the company’s travel agency of choice, or the traveling employee. The following guidelines apply in regards to lodging:

  • Travelers should stay in moderately priced accommodation providing reasonable security, proximity, and comfort.
  • If accompanied by a personal companion or spouse, the claim must be submitted as a single room rate. The only exception is when this companion or spouse is similarly there on [company name] business, or otherwise has been considered an exception by a supervisor or departmental manager.
  • If the traveler is able to stay with relatives or friends, a hospitality gift can be given not to exceed the value of [specify amount].
  • It is the responsibility of the traveler to cancel any lodging reservations that they will not be requiring. The company may not be responsible for cancellation fees, and will expect a written explanation for any failure to cancel in a timely fashion.

Itemized lodging receipts must be attached to the expense report. Non-reimbursable expenses should be deducted from the total before entering the final number on the expense report.

Meals and Entertainment

Reasonable meal expenses (excluding alcohol) will be reimbursed at actual cost, including gratuities. These meals should be selected using common sense and best judgment. Meals viewed as lavish or extravagant will not be reimbursed.

Company may choose to insert a guideline with acceptable meal amounts for breakfast, lunch, and dinner.

Receipts for all purchased meals must be provided with the expense report. A traveling employee paying for someone else’s meal while conducting [company name] business will be reimbursed after submitting a small report with the receipt that includes date, name of the establishment, nature of the business conducted, and names and affiliations of all present.

Transportation

Coach or tourist rates for airline or train may be authorized for [company name] travel. [Company name] may choose to reserve the appropriate tickets through its chosen travel agent, or prefer that the employee make his or her own arrangements with a travel agency. Any upgrades to first class will not be reimbursed by [company name], unless approval has been granted prior to travel. [Company name] will not be responsible for additional ticket purchases for missed departures.

A company car or rental car may be used for regional travel upon successful enquiry on vehicle availability. [Company name] vehicles, or rented vehicles, should not be used for any non-business purpose. The company may have accounts with specific rental agencies and may receive discounts based on these relationships. Investigate this possibility before making arrangements with an agency of your choice. Full insurance coverage must be purchased when renting a vehicle for business use.

An employee may use his or her own car for transportation, with mileage and gas to be reimbursed by [company name] at the approved rate of [specify amount per mileage].

Fines for parking or traffic violations will not be reimbursed by [company name].

Other Expenses

The following expenses can also be eligible for reimbursement when used for business purposes:

  • Telephone calls.
  • Parking and tolls.
  • Shuttle bus, taxi, or subway fares.
  • Laundry and valet.
  • Company may provide a specific amount per day for personal entertainment, based on number of days traveling.
  • Company may choose to assign per diem rates for specific instances of travel.

Claim Submission

The employee shall submit an expense report, with all required trip approval documentation, to [specify person and position] within [specify number of days] after completion of travel. Expense report forms can be obtained from [specify location of forms], and should include all applicable expense receipts, and an approval signature from the employee’s supervisor or departmental manager. If a travel advance was issued, the employee must return any unused funds with their expense report, or [company name] will deduct these funds from the reimbursement total.

Describe the company’s intended schedule and form of reimbursement.

Enforcement

Any employee who is found to have violated this policy may be subject to disciplinary action, up to and including termination of employment.

Travel Expense Policy Agreement

I have read and understand the Travel Expense Policy. I understand my responsibilities as explained herein, and will be responsible for any costs incurred on travel that are not considered reimbursable by this policy.

______

Employee’s Name (print)

______

Employee’s SignatureDate

______

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