OCE Travel and Business Expense Policy Introduction

OCE Travel and Business Expense Policy Introduction This policy outlines the procedure and practices for the reimbursement of business and travel expenses incurred for the purpose of conducting OCE Inc. business. This policy will be administered by the Vice President of Finance, Programs and Administration with direct responsibility to the President and CEO. Responsibility It is the responsibility of all employees, agents, consultants, Board members, or other authorized individuals ( Claimants ) who incur expenses on behalf of OCE Inc. to adhere to the policies contained herein. Definitions I. Policies: provide instruction, direction, establish basic philosophies and limits and determine the major values upon which OCE should operate. II. Procedures: are the prescribed means of accomplishing policy. Their intent is to ensure uniformity, compliance and control of all policy related activities. Objectives i) To ensure the propriety of all business and travel expenses / activities. ii) To strike a balance between the prudent, accountable and cost effective use of OCE resources and the need to ensure employees are properly reimbursed for work related expenses. iii) To increase the amount of discretion and latitude for Claimants and approval managers to act in a fair and reasonable manner. Policy OCE will reimburse Claimants for reasonable costs incurred while undertaking authorized company business. In general expenses should be necessary, reasonable under the circumstances and when appropriate, approved in advance such as for major travel and conference related instances. Receipts are required unless otherwise noted and all amounts are in Canadian dollars unless otherwise specified (for expenses in other currencies use the amount on your credit card statements; for cash transactions use the rate actually received). 1. Transportation The most economical mode of transportation should be used keeping in mind the purpose and urgency of the trip. Consider alternatives to travel such as teleconferencing and video conferencing where available. Whenever practical, advantage should be taken of excursions or other discount fares. Employees who have been issued an OCE Corporate Amex card should use it to make all travel arrangements. Page 1 of 6

a) Air Travel Travel at the lowest possible airfare (usually economy class). Book as far in advance as possible in order to take advantage of fare discounts. Significant discounts may be available provided you are staying a Saturday night. In cases where travel is extended by a weekend (before or after a business trip) to achieve a lower overall net cost, OCE will absorb the added hotel and meal expenses. Return any unused tickets (to the travel agent) and request that OCE Inc. be refunded the cost. Seat selection fees are not reimbursable. Reasonable travel arrangement change costs outside the Claimant s control will be reimbursable; preference is for fixed travel dates rather than openended tickets. The provision for travelling economy class also applies to overseas travel. While encouraged to travel economy class, on an exception basis and with senior management approval (via the OCE Travel Authorization process) Claimants may request business class service on any flight that exceeds 5 hours flight time. N.B. Travel points accumulated as a result of business travel may be considered a taxable benefit by the Canada Revenue Agency. b) Car Rentals Use rental cars or personal car for ground transportation unless other means of transport such as taxis or limousines are less expensive. Car should be refueled before dropoff where possible to avoid rental company fuel charges. Extras are generally not reimbursable (e.g. GPS unit rentals). Coordinate travel with colleagues. Choose rental car size that is most appropriate under the circumstances from economy through to full size. Premium and higher are not appropriate. OCE has collision insurance coverage in Canada and the United States for employees where the rental car is valued at less than $50,000. OCE has personal liability coverage in Canada and the United States. Employees need not purchase additional liability coverage over and above that required by local laws when renting vehicles. Outside of North America employees must acquire the appropriate collision and liability insurance. c) Personal Car Use Employees who are required to use their personal car for OCE Inc. business will be reimbursed at a rate of $0.48 per kilometer; this covers all costs of use of the vehicle including gas. Please make sure to enter the total mileage of a round trip as one number. This will enable the system to calculate the correct amount of reimbursement as per the policy. For trips greater than 500 km return, reimbursement will be at $0.48 per kilometer for the first 500 kilometers and $0.265 for each kilometer above 500km. This will approximately equalize the cost difference between rental and personal use in the situation(s) where the employee/manager chooses not to rent for out of town travel. Employees using their own cars for business use must have a minimum $1 Million personal liability insurance and their insurance coverage permits the use of a personal vehicle for business purposes. Bridge, ferry, highway tolls and necessary parking fees are reimbursable and should be supported by receipts. The use of a transponder for the 407 electronic toll road is encouraged and is reimbursable if it is more cost effective to do so than to pay video toll charges. Claimants will not be reimbursed for penalties levied in respect of traffic violations. Page 2 of 6

In the GTA cab use is reimbursable for employees who do not normally drive; TTC tokens are available and should be used when practical and cost effective. d) Rail Travel Economy class travel is permitted when this is the most practical and economical way to travel. 2. Meals Where a Claimant is hosting business associates or incurring meal expenses while traveling on OCE business there should be an adherence to the general policy of reasonableness and compliance within the spirit of the OCE Travel and Business Expense policy. It is the responsibility of the approval manager to assess whether these expenses adhere to policy, taking into account the circumstances (e.g. nature of discussions and business associations of person(s) attending). Receipts are required for any meals claimed. The amounts are inclusive of taxes and gratuities. The name(s) of persons attending and purpose of the meeting are to be written on the back of the receipt. If more than one OCE employee is present the most senior OCE employee should submit charges for approval and reimbursement. Employees should use either their corporate or personal credit card wherever possible to pay for meals. Both the credit card and original restaurant receipt should be provided when submitting claims for reimbursements. a) Meals incurred as part of conducting OCE Business Meals taken with outside business associates or clients for the purpose of conducting business and in an atmosphere conducive to a business discussion are reimbursable. Meals where the only attendees are OCE employees are generally not reimbursable. Exceptions would be working sessions during normal meal times conducted on OCE premises. Meals which are a part of a business program, or which are officially sponsored by business or professional associations and are considered directly related to the active conduct of business are reimbursable. b) Meals incurred while traveling on OCE Business (applies to Canada and U.S travel guidelines are in local currency) Personal meals incurred when traveling on OCE business where it is reasonable under the circumstances will be reimbursed (e.g. day trips to visit a client or attend conferences that exceed a distance of 150Km round trip from the base office). Breakfast $10.00 before gratuities and tax (receipt must be attached). Lunch $15.00 before gratuities and tax (receipt must be attached). Dinner $35.00 before gratuities and tax (receipt must be attached). Alcohol is not reimbursable. Consultants may not be reimbursed for any hospitality, incidental, or food expenses. However, reasonable expenses for travel, air, rail, car or hotel accommodation in accordance with OCE s Travel and Business Expense Policy may be allowed by the VP provided that the contract stipulates this is allowable. Page 3 of 6

3. Accommodation Claimants should utilize OCE preferred hotels where available (contact local Office Coordinator). Otherwise employees should stay at moderately priced hotels. The original hotel bill, itemizing room and other charges should be attached with the OCE expense report. Nonroom charges should be entered separately on the OCE expense report and also be supported by original receipts (e.g. restaurant receipts). Outofpocket expenses up to a maximum of $50.00 per night may be claimed in lieu of accommodation charges when an employee stays with friends while traveling. 4. Incidentals Certain other costs are reimbursable up to $10 per day (without receipts) if incurred while traveling on OCE business. These include reasonable expenditures for: Tips/gratuities (guideline is 15%) Laundry minimum five days (four nights) must be spent away from home Other miscellaneous items Reasonableness is based on applicable circumstances and will be your manager s responsibility. The following expenses are not allowable and will not be reimbursed: Hotel convenience charges (health clubs etc.), Mini bar charges Movies Admission to sports events, theatre tickets or use of recreational facilities (i.e. golf course charges) Magazine / Books Personal care items (grooming, over the counter drugs etc.) 5. Telephone & Internet Use Reasonable calls to an employee s home while away for business are reimbursable. Try to utilize least cost alternatives, as hotel room charges can be significant. a) Telephone Please refer to OCE s Mobile and Wireless Device Policy (version 3, Jan 2013) for more details regarding all calls made from home, personal or OCE cellular phones. b) Internet Use Claimants should inquire about internet use charges prior to using any hotel facilities; internet use for business purposes will be reimbursed. Page 4 of 6

6. Corporate Credit Card OCE Inc. employees who incur businessrelated expenses on a regular basis may be provided with a corporate AMEX credit card after probation. By accepting this card, employees agree that this card is to be used for business purposes only. Employees are bound by the Corporate Cardholder Agreement. Currently copies of Amex statements will be provided to you by the accounting department. All employees will also have access to their AMEX statement online account to review expenditures. Additional benefits available using the OCE Corporate Amex Card includes: Travel Accident Insurance Flight and Baggage Delay Insurance Hotel and Motel Burglary Insurance Car Rental Theft and Damage Insurance 24 Hour Travel Emergency Assistance Employees are responsible for ensuring that all items on the monthly AMEX statement have been included on an expense report. Submit original receipts as back up to all AMEX expense report items. If the card is lost or stolen, the employee should notify AMEX immediately. The employee will take responsibility for reviewing and notifying AMEX of any disputed items charged to the card. Finance should also be notified of disputed expenses. 7. Expense Reporting Procedure Claimants are responsible for submitting expense reports to their managers on a monthly basis using the standard OCE Expense Report in MIS and must submit expenses no later than 30 days after the end of the month in which the expense was incurred. The following guidelines apply: Original receipts are required for all expenses. In circumstances where receipts are not issued for small amounts (i.e. parking meters, toll booth fees etc.); expenses will be reimbursed without a receipt. All expense reports must be reviewed and approved by the employee s immediate supervisor or other appropriate approval for all Claimants (or higher authority if required) prior to submission to the Finance Department. For International and any out of province travel, a copy of the approved Travel Authorization Form should already be on file with Finance. Claimants are responsible for identifying any expenses which are billable to another organization, and notifying Finance. Page 5 of 6

Attachments: Steps to complete the OCE Expense Report OCE Expense Report_Non Staff OCE Expense Report_Non Staff_Out of Canada OCE Travel Authorization Outside Ontario Approved by: January 21, 2014 Narinder Dehal Date Vice President, Finance, Programs & Administration Page 6 of 6

Steps to Complete the OCE Expense Report In an effort to streamline and accelerate the processing and payment of expenses reports, OCE has implemented online expense reports and electronic approval. The claim form in MIS now has drop down menus that are designed to simplify input. Please follow the steps that the system requires in order to complete the expense report and submit for payment. When the form has been completed, please attach any supporting documentation that you could attach to make it easier for the approver of the report to see what he or she is approving. After completing the certification and date box, hit the Submit button and the report will automatically be forwarded to the appropriate individual for approval. Once it has been approved, the approver will hit the Approve button and the expense report will be forwarded to OCEFinance to start the reimbursement process. Note: Based on the total expenses amount or employee/department setting, second and even third approval may be required prior to sending the final approved expense report to OCEFinance. Supporting receipts should be forwarded to the General Accountant. Please label the envelope with your name and the confirmation number. All small size receipts should be attached to an 8.5 x11 paper. The General Accountant will return the envelope and the receipts if the claimant fails to attach the receipts to 8.5 x11 paper. All employees are required to prepare their expense reports online via MIS and paper based expense reports will no longer be acceptable with the exception of nonstaff. Corporate Amex cardholders should prepare individual expense reports for each accounting period, e.g., if you have expenses for the period from July 15 to August 15, an expense claim should be completed for the period from July 15 to July 31 and a separate expense claim for the period from August 1 to August 15. This will enable OCE to properly reconcile the expense reports with the reports produced by Amex. Note: There is no need of individual expense reports for each accounting period for noncorporate Amex Cardholders but expenses reports are required to be submitted no later than 30 days after the end of the month in which the expense was incurred. Revised Jan 2014

OCE EXPENSE CLAIM For NonOCE Staff Only ALL CHARGES* CANADA (effective January 1, 2014) Name: Claim Period: Address: Address: Reference: City/Town: Province: Postal Code: Telephone: Date Purpose/Explanation Kilometres Travel Accommodation Parking Car Rental Meals Entertainment Other (dd/mm/yyyy) Fares** First 500 KM per Trip @ $0.48; >500 KM per Trip @ $0.265 0.0 0.00 Totals HST Paid for ITC General & Travel Exp. Acct Posting Summary: (*attach receipts) (**airfare, train fare, taxis) Payable to Claimant 0.00 Certification: Authorizations: I certify that all expenses incurred on this expense report are consistent with OCE Travel Policy. We certify that we have reviewed and authorize the expenses above. January 6, 2014 January 6, 2014

OCE EXPENSE CLAIM For NonOCE Staff Only ALL CHARGES* 'OUT OFCANADA' (effective January 1, 2014) Name: Claim Period: Address: Address: Reference: City/Town: Province: Postal Code: Telephone: Date Purpose/Explanation Kilometres Travel Accommodation Parking Car Rental Meals Entertainment Other (dd/mm/yyyy) Fares** First 500 KM per Trip @ $0.48; >500 KM per Trip @ $0.265 0.0 0.00 Totals HST Paid for ITC General & Travel Exp. Acct Posting Summary: (*attach receipts) (**airfare, train fare, taxis) Payable to Claimant 0.00 Certification: Authorizations: I certify that all expenses incurred on this expense report are consistent with OCE Travel Policy. We certify that we have reviewed and authorize the expenses above. January 6, 2014 January 6, 2014

OCE Travel Authorization Outside Ontario Name: Position: Purpose of the Trip: Event Name: (If applicable) Organization(s): (If applicable) Date(s): Location(s): Estimated Total Costs (Provide details): In current year budget? Yes No Are any other OCE staffs attending? Yes No If yes, provide names: Are any members, Industry/Government Partners etc. attending? Yes If yes, provide names: No Value of trip to OCE, provide impact statement and connection to Strategic Business Plan: Impact of not taking the trip: Approval Routing: 1. Email your 'Business Unit Head ' (Tom, Anne W., Claudia, Bob, Narinder, Sharon J.) for approval 2. If approved; Traveler forward email to President and CEO (cc: Executive Assistant) for final approval 3. If approved; Traveler forward email to: OCE General Accountant (Jenny Zheng) cc: Controller (Ghenbot) cc: Business Unit Head Revised Aug 2014