TRAVEL AND EXPENSE REIMBURSEMENT POLICY 1. SUMMARY OF WHAT YOU NEED TO DO FOR TRAVEL:

Transcription

1 TRAVEL AND EXPENSE REIMBURSEMENT POLICY 1. SUMMARY OF WHAT YOU NEED TO DO FOR TRAVEL: 1. Complete a Business Travel Profile with Accent Travel 2. Review Fallbrook Travel and Expense reimbursement policy (below) 3. Get authorization from your Supervisor prior to booking the trip 4. Contact Accent Travel to make travel arrangements. Accent Travel s contact information is as follows: a. (512) or (800) (Monday-Friday 7:30am-6:00pm Central Time) b. Or fallbrooktech@accent-travel.com 5. Complete reimbursement request (expense report) with proper original receipts and other supporting documents promptly when you return from your trip a. All expense reports must be signed and approved by your manager prior to submitting to finance department for reimbursement. b. Approval levels are as follows: 2. GENERAL POLICY < $5,000 Supervisor <$100,000 VP,CFO,COO,CTO,CLO < $10,000 Manager <$200,000 CEO < $25,000 Director >$200,000 Board of Directors It is the policy of Fallbrook Technologies Inc. (Fallbrook) to reimburse staff members for travel and business expenses incurred, while traveling and/or conducting official Company business, which are reasonable, appropriate, necessary, and incidental to further the Company s objectives if the expenses are incurred and reported in accordance with this policy. Fallbrook will only reimburse reasonable business expenses with adequate supporting records in order to safeguard the Company s assets (cash) and to protect the Company and employees in case of an IRS audit. If the IRS deems an expense that was reimbursed to an employee to be a fringe benefit to the employee and has no business benefit to the Company, the Company would have to report the value of the fringe benefit on the employee s W-2 Form as additional compensation and the employee would be taxed accordingly. When submitting a business expense for reimbursement, the employee is accepting all responsibility in paying any employee s portion of the taxes that may be levied by the IRS associated with that reimbursed expense. Revised 2/4/2013 1

2 Fallbrook only reimburses under the IRS defined accountable plan, which must meet the following requirements. Each employee must: 1. Have paid or incurred deductible expenses while performing services as your employee, 2. Adequately account to you for these expenses within a reasonable period of time, and 3. Return any excess reimbursement or allowance within a reasonable period of time. Employees shall not be authorized to approve expenditures which they have initiated or incurred. 3. AUTHORIZATION AND REPORTING Employee travel and the expenses associated with it will be authorized only in circumstances, which are clearly consistent with the mission of the Company. It will be the responsibility of each manager to ensure that all employee travel meets this objective and that reimbursement be made only for actual, reasonable business expenses in connection with authorized travel as defined in this document. Before booking any travel, the employee should ask him/herself: 1. Does the trip directly benefit Fallbrook? 2. Would a video conference (via Skype) or teleconference achieve most of the objectives of a physical trip? 3. Is there a definitive outcome of a physical meeting (e.g. signing an agreement, observing manufacturing process)? 4. How many people are going? Avoid having more people going to the same meeting/conference than necessary. 4. AIR TRAVEL Please book flights sufficiently far in advance to ensure the availability of the lowest reasonable airfare. Coach class service should always be used when flying on domestic (including Mexico and Canada) or international business. The Company CEO or CFO must authorize business or first class service for international flights. Upgrades for air travel are not reimbursable. If an employee wishes to upgrade, it is done at the employee s expense. In recognition of the inconvenience created by frequent travel, employees who qualify for airline frequent traveler status will retain all benefits that accrue to them. However, additional costs to the Company must not be incurred for the purpose of acquiring frequent-flyer benefits or for upgrades. Travelers may not book additional Revised 2/4/2013 2

3 legs or miles to increase their points if this results in a higher fare or unnecessary waste of Company time. Airline tickets are to be treated as cash and should be handled accordingly. Lost tickets are the responsibility of the employee. Assure that passports are current and determine whether or not visas are necessary for the country to which you are traveling. Arrangements for obtaining or updating these documents should be coordinated with an Administrative Assistant who will work with you to provide these services. Initial passports must be applied for in person. It is important to allow sufficient time for processing passport renewals and visa applications. 5. AIRPORT TRANSPORTATION AND PARKING You are expected to use airport shuttle services (not including chauffeured limousines) or buses, and hotel shuttles, where available, between airports, hotels, and business areas. The use of airport shuttle services is also encouraged when the cost of such service is less than the cost of airport or terminal parking. 6. CAR RENTAL All rental cars charged to the employee s personal credit card will be reimbursed in the usual manner through an expense report. Mid-size or smaller vehicles should be reserved, except when three or more travelers/business associates are traveling together. Employees should refuel rental cars prior to returning them to the agency. Gas purchases to refuel the car must be documented by an appropriate receipt. In those cases where a car rental is necessary, you should always make the reservations with the car rental agency offering the lowest rate for the location you are visiting no matter whether or not the agency is located in the airport terminal. Collision or accident insurance should be declined on all domestic car rentals, but should be accepted for international car rentals. Traveler should include Fallbrook Technologies as part of the renter name on the rental agreement. This will cover domestic rentals by the corporate collision insurance policy. If traveler is involved in an accident while on Fallbrook business, please report the accident to the local police, the car rental company, and the Human Resources Department. 7. GROUND TRANSPORTATION Employees shall always acquire receipts for taxis hired during business trips; taxi travel without receipts will not be reimbursed. 8. HOTEL ACCOMMODATIONS Hotel itemized receipt must be submitted for reimbursement on your expense report. Hotel rooms should be pre-booked and guaranteed for late arrival. Employee is responsible for cancelling any necessary room cancellations. Employee should Revised 2/4/2013 3

4 obtain a cancellation number and the name of the hotel employee assisting with the cancellation. No-Show charges may be incurred if reservations are not canceled by the pre-determined hotel cancellation time. This is usually hours prior to check-in. No-show charges are not reimbursable. In-room movies and other unreasonable charges will not be reimbursed. 9. LAUNDRY SERVICE Actual and reasonable laundry expenses will be reimbursed. Receipts must be provided. This applies only after the employee has been away from home for five (5) consecutive days, or if the trip has been unexpectedly extended. 10. MEALS Fallbrook will reimburse employees for reasonable meal expenses incurred on business trips or while conducting business to benefit Fallbrook. Employees are required to be reasonable and submit receipts for all meal expenses. Meal expenses should reflect the guidelines listed below. Meal Employee Only Meals Breakfast $12.00 Lunch $18.00 Dinner $36.00 In order to be reimbursed for meal expenses, the following information must be submitted in order to be reimbursed: 1. Restaurant receipt that includes name and location of restaurant, date and amount of the expense 2. The names of all people whose meals are being reimbursed. Include company name and title of non-fallbrook attendees 3. Purpose of the meeting All meal expenditures submitted for reimbursement will be reviewed as to reasonableness and necessity. Actual, reasonable and necessary costs for meals will be reimbursed. Excessive alcohol related expenses will not be reimbursed. Extravagant meal expenses will not be reimbursed. Upon review of the supporting documentation, the Company may decide to reimburse only the reasonable portion of such expenses. Revised 2/4/2013 4

5 11. TELEPHONE Employees will be reimbursed when using their personal cellular telephone or home phone for business related phone calls which are reasonable for conducting business. Only Fallbrook business-related cell phone charges will be reimbursed with adequate support. Adequate support includes monthly cellular phone statement that shows total phones on the plan and total service charges. 12. ENTERTAINMENT All entertainment expense is intended to have a business purpose and there are strict IRS requirements regarding this activity. Quoting IRS regulations, The entertainment must directly precede or follow substantial and bona fide business discussion for the purpose of obtaining income or other specific trade or business benefit. The Company must be prepared to document this requirement when reporting entertainment expense: 1. Date and place of entertainment 2. Name and affiliation of business guest(s) 3. Nature of business discussion 4. Original receipts for entertainment/business meals The Company may decide to not reimburse entertainment expenses if the employee cannot provide sufficient evidence to support for an IRS audit. 13. EXPENSE REPORTS - All employees traveling and/or entertaining for the Company are required to submit an expense report. - Original receipts are required. Copies of personal credit card statements are not acceptable documentation. - Expenses for lodging must have the detailed hotel receipt showing the breakdown of all charges. - Cell phone expenses submitted for reimbursement must include monthly statement pages that summarize total service fees and number of phones on the plan. - Meal receipts must include: 1. Name of establishment 2. Amount 3. Date 4. Name attendees, including guests company name and title 5. Purpose of meeting - Please make every effort to submit an expense report for within three (3) business days after each month end for expenses incurred in the previous month. - If you are traveling or are not able to submit an expense report within three (3) business days after the month end, please the Controller your estimated Revised 2/4/2013 5

6 travel expenses and purpose of your travels/expenses, including the project name(s) (i.e. bike, CVAD, etc.). - Any expense report(s) submitted for payment six (6) months or more after the date of travel will be reported as income as it no longer counts as an accountable plan and is subject to income taxes. - Submission of complete expense reports frequently and quickly after incurring the expense will ensure frequent and prompt reimbursement. - Incorrect or incomplete expense reports will be returned to the approver for completion and will result in delay or non-reimbursement of specific items. 14. NON-REIMBURSEABLE EXPENSES Non-reimbursable expenses include, but are not limited to: - Airline club dues - Rental car club membership fees - Airline head set or entertainment rental - In-room movies and other in-room unreasonable expenses - Fines for traffic violations - Insurance on life or personal property while traveling - Purchase of clothing and/or other personal items (e.g. medicine, toiletries) - Expenses for family, child, pet, home and property care while on a trip - Excessive personal phone calls while traveling for Fallbrook business - Any personal phone calls while not traveling for Fallbrook business - Meal/travel costs for personal guest(s) - Personal funds lost while on Company business - Credit card and bank finance charges (e.g. late fees, service fees) 15. RESOURCES Questions regarding this policy may be directed to accountspayable@fallbrooktech.com. Revised 2/4/2013 6