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PROCEDURE NO.
INTEGRATED MOBILE, INC.
OPERATING PROCEDURE
SUBJECT
FIN-001
DATE EFFECTIVE
TRAVEL & ENTERTAINMENT
March 19, 2007
DATE REVISED
Forms attached
GENERAL POLICY
July 30, 2007
The Company will reimburse employees for all reasonable and necessary expenses directly attributable to the performance of Company business. Except for unusual circumstances, deemed by the Company to be beyond the control of the employee, this policy will be applied without deviation and consistently in every case. Every employee who incurs expenditures while on Company business is required to make an accounting of such expenditures on the Integrated Mobile Expense Report (“Expense Report”). An electronic version of the Expense Report is attached. PURPOSE These instructions define the policies of the Company with respect to travel and entertainment expenses. In addition to providing the means for controlling these expenditures and insuring that employees are reimbursed on a timely basis, they are designed to assure the substantiation of such expenses as required by the Internal Revenue Service. USE OF COMPANY CREDIT CARDS Each employee who is determined to potentially have reoccurring travel expenses has or will be issued an Integrated Mobile Business American Express Card (AMEX Card). While it is not mandatory that employees exclusively utilize the AMEX Card, it is recommended. The AMEX Cards are set up for the monthly invoicing and responsibility for payment directly to the employee. It is the responsibility of each employee to insure that payments are made on a timely basis, through the submission of Expense Reports and subsequent remittance to American Express as indicated. Employees will be sent an e-mail shortly after issuance of the AMEX Card with instructions and options for the delivery of monthly statements and payment options. Any employee who becomes past due on payments on the AMEX Card will first be sent a reminder from the Company to correct the past due status, followed by possible termination of the AMEX Card if the past due status is not corrected. Each employee is strongly encouraged to keep current with the submission of Expense Reports so that the payment of the monthly AMEX Card bill does not require the use of personal funds. 1
RECORDING AND REPORTING TRAVEL AND ENTERTAINMENT EXPENSES 1. General Each employee of the Company who incurs expenses for travel or entertainment in the performance of the duties or responsibilities of their job is required to report such expenses on an Expense Report (Exhibit A). Expense Reports can be submitted either typewritten or electronically and all expenses must be itemized according to the specific captions printed on the report form. The Expense Report format is constructed to accommodate weekly submissions. While employees are not required to submit Expense Reports on a weekly basis, it is recommended. Whenever several Company employees are involved in any meal or entertainment expense, it is mandatory that the highest ranking Company individual participating incur the expenses and ultimate submission of the expenses for approval. This will allow for proper review and expense control. 2. Travel Expense An employee who reports expenses for travel in connection with Company business must include an explanation of the business purpose of the trip on the Expense Report. The explanation must clearly define the expected benefit to the Company. In general the Company has found that booking arrangements through Hotwire (www.hotwire.com), Expedia (www.expedia.com), Travelocity (www.travelocity.com) and Orbitz (www.orbitz.com) offer the best value(s). When utilizing Hotwire to schedule any hotel or car rental reservations, you must be reasonably sure that your trip will not be cancelled as any unused reservations are forfeited per Hotwire policy. Please familiarize yourself with carrier, hotel, and car rental company policies as they do differ. 1) Below are some general guidelines on transportation, whether billed directly to the Company or paid by the employee: i. Drive distances are that that can be traveled within 1 to 4 hours. It is discouraged to rent a car to drive any distance longer due to loss of work time. Any travel over 4 hours should be by air, train or rail. Southwest Airlines offers, in the general research by the Company, the best values and the most flexible schedules and is the recommended carrier. The purchase of any international airline tickets may be made only with the prior written approval of the Chief Financial Officer. 2
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Automobiles may be rented up to an Economy size four door class. An employee, who is not covered under the Company Automobile Allowance Program, and uses their personal automobile for transportation in connection with Company business, must record on the Expense Report the number of miles traveled each day for business purposes. The employee will be reimbursed for such mileage at the rate approved by the Company. Employees utilizing employee– owned automobiles used for business purposes must have a valid driver’s license and the vehicle must be covered by a comprehensive insurance policy, including liability coverage.
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2) The daily charges for hotel room (including tax) must be shown on the Expense Report, and the receipt for these charges must be attached to the Report. The Company established target for hotel rooms is $80 per night. Should the demographics or other conditions of a specific trip require a higher per night amount, an explanation must be provided with the Expense Report. All other charges (e.g., meals, telephone) appearing on the hotel bill must be reported under the correct caption on the Report for the day such expense was incurred. 3) The amount the employee spends for their own meals (including tax and tips) is to be recorded each day in the “Meals-Self” section of the expense report on the day incurred. Generally lunch is not considered to be a travel expense, unless it is necessary while attending seminars or required for business meeting with clients or partners. Employees are encouraged to limit total meal expenses in any given day to $30.00. The Company reserves the right to disallow any meal expense which it considers to be extravagant, giving consideration to the geographic location where the expenses were incurred. Employees are encouraged to take advantage of free breakfasts offered by a majority of hotel chains. 4) The amount paid for all business telephone calls made while the employee is on a business trip, are to be recorded under the proper caption on the Expense Report on the day the expense is incurred. 3. Meals for Persons not Employed by the Company All amounts paid by an employee for meals (including taxes and tips) for persons not employed by the Company, with whom company business is being conducted, are to be recorded in the “Meals – Others” section on the back of the Expense Report. These amounts must be substantiated by recording the name, title, and company or business firm represented by each person for whom a meal was purchased; the name and location of the restaurant where the meals were purchased; and the business purpose or benefit to the Company, 3
accomplished or expected, as a result of the business meal. The cost of meals for other Company employees may be included only if the presence of such employees was necessary to conduct business during the meal. 4. Entertainment All expenditures for the entertainment of persons not employed by the Company must be substantiated in detail, as provided for on the Expense Report. The name, title and business affiliation of each person entertained must be shown. The type of entertainment, the name and location of the place of entertainment and the business reason or benefit to be derived by the Company as a result of such entertainment must also be clearly specified on the Expense Report. A summary of entertainment expenses that could potentially exceed $200 should be submitted to the Chief Financial Officer for prior approval. 5. Other Expenses Other expenses incurred on behalf of the Company should be listed in the appropriate area of the Expense Report with a description of the business nature of the expense, the vendor the goods or services were obtained from and the amount listed. 6. Receipts All receipts must be attached to the Expense Report, or submitted separately in the case of electronic filing, for each item of expense, and for every air travel ticket (boarding pass required), rail travel ticket, car rental and hotel room charge. Please submit all receipts for expenses incurred for a particular trip together on a properly dated expense report (i.e., all food, car rental, air travel, or mileage, etc. for a specific trip should be submitted together. SUBMISSION, APPROVAL, AND PAYMENT OF WEEKLY EXPENSE REPORTS 1. Expense Reports are to be signed by the employee and submitted to their supervisor for approval. For employees submitting Expense Reports who are below the director level, multiple levels of approval will be required up to the Director responsible for that department or division. For employees submitting Expense Reports who are at the Director level or above, their immediate supervisor’s approval will be required. 2. If Expense Reports are submitted electronically, employees should follow up, when reasonably possible, with the required receipts and supporting documentation submitted to the Accounting Department via regular mail or e-mail if scanned copies are available.
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3. Payments of Expense Reports will be made to employee at the provided mailing address via check within two weeks following receipt of an approved Expense Report by the Accounting Department. It is the responsibility of each individual to insure that expense reports are submitted on a timely basis.
4. Adjustments may be made to your expense reports post-submission. In such cases, an email explaining the difference will be sent to the employee. 5. Abuse of this business travel expenses policy, including falsifying expense reports to reflect costs not incurred by the employee, can be grounds for disciplinary action, up to and including termination of employment. SPOUSE/COMPANION TRAVEL 1. The Company will not reimburse travel and entertainment expenses incurred by a spouse or other individual accompanying an employee on business unless: i. There is a bona fide business purpose for taking the spouse or other individual. ii. The expense would otherwise be reimbursable. iii. The prior written authorization of the Chief Financial Officer is received and attached to the Expense Report. AUTOMOBILE ALLOWANCE 1. The Company policy is to provide an automobile allowance for those positions and individuals who use their personal vehicles to conduct required travel for official business purposes on a regular basis. Employees will be classified as eligible based on their job function and the need to travel for their job. 2. Employees classified as travelers will be provided a monthly allowance to cover the cost of gas, maintenance, etc., (exception: any trip that is over two hours in duration (one way), the employee will be reimbursed for the cost of fuel). This amount is determined by the typical amount of travel required to perform individual roles. An employee classified as a traveler will be advised by their manager of the monthly allowance. This allowance covers mileage for business use. Consequently business mileage cannot be claimed for reimbursement. 3. The auto allowance is included in the employee’s regular paycheck, with the established monthly allowance issued in two equal parts, one each pay period, and is reported as taxable income. 5