TRAVEL & EXPENSE POLICY
This document ensures that employee travel is consistent with the
business objectives of the Widget Corporation. It also ensures fair and
equitable treatment of employees by defining procedures for authorized
business travel and guidelines for expense reimbursement.
A critical balance must be sought when requesting travel. This is the
company's need for cost effectiveness and the employee's need for
quality services and support. Employee travel should be via the lowest
cost alternative, consistent with good business practices. Neither
luxury, nor sub-standard modes of transportation and accommodations
should be used.
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 company manager to
ensure that all employee travel meets this objective and that
reimbursement made only for actual, reasonable business expenses in
connection with authorized travel as defined in this document. In order
to maintain control over expenditures, any expense submitted which does
not comply with the guidelines of this procedure will not be
reimbursed, unless a accompanied by a valid exception by management.
Expense reports must be submitted in a timely manner.
All travel must be requested using the official company "Travel
Authorization Form" (hereafter referred to as a T/A.), signed by the
appropriate department manager. Subsequent to approval; travel
arrangements, including airfare, rental car, lodging and planning of
meetings can be coordinated through the appropriate departmental
support staff. The company will use a travel management firm to
facilitate the procurement of travel. The designated travel firm will
provide travel management reports. The rationale behind using a single
travel firm is that management reports providing a central data base
of: savings analysis, cost allocation regarding air, car and hotel
expenditures, is valuable information. If there are a multiple booking
sources, this data cannot be complete. All reservations will be made
through the company authorized travel management firm:
WesTrav International, Inc 18562-B Prospect Road Saratoga, Calif. 95070
Phone (408) 446-4886 Toll-Free 800-737-9776 Fax: (408) 446-0912 E-Mail:
3) Implementation & Responsibility:
1. Managers should know current travel policy and inform their
departmental staff of company policy and procedures.
2. Determine is travel is really necessary to acheieve goal.
3. Approve expenses accordance with policy.
4. Notify support staff or designated travel agent as early as possible
of necessary travel arrangements. If you notify the support staff or
travel agent of your travel plans seven (7) days or more in advance,
your trip will, in most cases cost considerably less.
5. If travel is requested less than 7 days prior to departure, a low-
fare airline such as Southwest, Frontier, Air Tran, American TransAir
or America West must be used.
6. Work around customer's schedule when requesting travel arrangements.
Never should you inconvenience a customer, so that you can travel on
your frequent flyer carrier.
7. Incur only expenses that are consistent with the business needs, and
exercise care in determining appropriate expenditures
8. Use company authorized travel agency and vendors the company has
negotiated discount programs with.
9. Submit expense reports as outlined in the expense section on this
policy, on a timely basis (within 60 days). Employee must pay company
credit card balances when due.
4) Travel Authorization & Approval:
Upon determination that a trip is necessary, a "Travel Authorization"
(T/A) form must be filled out and signed by department manager. This
form can then be faxed oe e-mailed to the designated travel agency to
make reservations. Travel agency will not have authorization to issue
airline tickets unless a signed T/A is received. Department Managers
and Executives need not have a signed T/A to procure travel
5) Air Travel:
1.Air travel will be via the most direct and economical means,
accommodating the comfort, needs and preferences of the employee. The
travel agency will advise the lowest fare and routing, determined by
examination of all carriers possible within a one (1) hour window
before and one (1) hour after, the requested departure/arrival time.
Deviations from the lowest fare must have manager approval.
2. You must notify support staff or designated travel agent as early as
possible of necessary travel arrangements. If you notify the support
staff or travel agent of your travel plans seven (7) days or more in
advance, your trip will, in most cases cost considerably less. If
travel is requested less than 7 days prior to departure, a low-fare
airline such as Southwest, Frontier, Air Tran, American TransAir or
America West must be used.
3. Use of "Non-Refundable" airfares is reccomended. These fares are
usually consierably less expensive than refundable un-restricted fares.
In most cases, if the travel must change or the trip canceled all
together, the funds can be used as a credit toward future travel, less
a service charge imposed by the airline.
4. No more than five (5) company employees, or two (2) company
executives will be allowed to fly on the same flight. No exceptions.
5. Employees may fly business class on international flights exceeding
six hours in duration.
If employee will fly coach thereby saving the company substantial
amount of funds, then the company will provide a $400.00 bonus to such
Employees at Vice-President level and above may fly business class for
international flights in excess of six (6) hours. Employees below V.P.
level must fly coach.
Business class travel is not permitted. All employees will fly least
expensive economy class including international flights, as well as
6. Employees may retain all benefits from frequent flyer club
memberships. All dues for such clubs must be paid by employee.
7. Employee choosing to use personal modes of travel between cities
serviced by regularly scheduled airlines, will be reimbursed based on
least expensive airfare or actual expenses, whichever is less.
6) Auto Rental:
1. When a rental car is necessary, XYZ Rent-A-Car should be utilized.
The company's corporate discount number is: # 123456. XYZ Rent-A-Car
has negotiated special lower rates for the company.
2. XYZ Rent-A-Car will include the collision damage waiver and the
personal liability insurance in the price of the daily rental to all
company employees, when the discount number above is advised. Should a
situation arise that you rent a car other than from XYZ Rent-A-Car,
then you must take out the collision damage waiver (CDW).
The company insurance package covers employees while traveling.
Therefore, decline the optional insurance coverage. In the event of an
accident while traveling, you must notify Human Resources immediately.
3. Employees can request either compact or intermediate size cars.
Rentals for other types of cars are not permitted except with manager
approval. Luxury, premium and specialty car rentals will be reimbursed
only at the intermediate car rate.
4. Wherever possible employee must refill gasoline prior to returning
rental car for drop off. Gas charges at the rental locations average
50% more than independent filling stations.
7) Personal Auto Reimbursement:
1. Employees are only authorized to use his/her automobile if they have
both a valid drivers license and current comprehensive auto insurance,
including liability. If not, the employee is not authorized to travel
for the company.
2. When an employee uses his/her personal automobile on approved
company business, the company will pay .30 cents per mile. Company will
also reimburse all actual auto tolls and parking fees, with a receipt.
3. Mileage from employee's home to regular assigned work location is
not a reimbursable expense. However, if the employee goes directly from
home to another work assignment other than the regular work location,
and the distance to the work assignment is greater than the distance to
the regular work location, the employee can expense the difference.
4. In order to receive reimbursement for mileage, the employee must
complete an expense report specifying purpose of trip, start and finish
odometer reading, point of origin, destination and time of trip.
5. The employee assumes the responsibility for all parking and traffic
1. All company authorized accommodations must meet with industry
accepted business travel standards with reference to comfort,
convenience and cost. Holiday Inn , Hampton Inn, Fairfield Inn, type
overnight accommodations have been set as an acceptable standard for
all company employees. You are free to make other arrangements, however
Widget Company will NOT reimburse for more than $175.00 per night base
rate, unless approved by a manager.
2. Lodging reservations must be placed through the designated travel
agency, or trade show booking office.
3. The employee is responsible for confirming that the rate being
charged is also the rate listed on the travel itinerary. Any
discrepancies should be reported immediately to the travel agency.
4. All hotel reservations will be guaranteed to your personal credit
card. It is the employee's responsibility to cancel hotel reservations
within the hotel cancellation policy time frame. This can be done by
contacting the travel agency or the hotel directly. You must obtain a
cancellation number when canceling a hotel reservation. The company
will not reimburse hotel "no-show" fees, unless approved by a manager.
9) Meals and Entertainment:
1)Actual, reasonable, and necessary costs for meals will be reimbursed.
The employee should be guided by what he/she eats at home.
Reimbursement may include a gratuity of up to fifteen (15%) percent of
the bill, before sales tax. Receipts are required for any meal in
excess of $8.00.
2)Entertainment expenses are reimbursable only with manager approval,
and must meet the following conditions:
a.The employee's specific assignment requires the entertainment of the
company's customers or potential customers, or others as appropriate.
b.The entertainment expense is fully receipted (original receipts
c.Expenses are authorized by the employee's manager
d.The persons entertained, the place and the purpose of the
entertainment must be clearly specified.
e.Gratuities should normally be in the range of 10-12% of the cost of
the services provided. If the quality of services is exceptional, a
gratuity up to a maximum of 15% may be considered.
It should be noted that gratuities must always be calculated before
sales tax is applied. A single gratuity will not exceed $50.00
f.Non-reimbursable expenses include, but are not limited to: Alcoholic
beverages, airline club dues, rental car club membership fees, airline
head seat rental, in-room movies, fines for traffic violations,
insurance on life or personal property while traveling, purchase of
clothing and/or other personal items, expenses for family, child, pet,
home and property care while on a trip.
10) 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
11) Expense Reporting:
The following conditions apply when submitting expense reports:
1. Actual and reasonable expenses are reimbursed in accordance with the
provisions of this policy and procedure
2. Employee must submit expense reports during the week after incurring
the expenses, or upon returning to the office, whichever is sooner.
Failure to submit expense reports within ninety (60) days, will
disqualify the employee from receiving reimbursement for expenses
incurred while traveling on company business.
3. Include the following items in, or attached to, the expense report
when submitting it for payment:
a.Copy of Travel Authorization form signed by department manager
(not applicable to executives).
b.Original or carbon copies of receipts for meal, lodging, air or auto
transportation, tolls, gasoline, and any other business expenses over
c.Explanation of any deviation from policy, unauthorized vendors,
lodging or transportation, and/or charges submitted "in lieu of" normal
d.Check made payable to the company, if repayment of travel advance is
4. International Travel Expenses
a. Please complete expense reports in U.S. currency, during the week
after returning to the office. It is best to convert foreign money to
U.S. currency at the airport when departing a foreign airport.
b.When preparing expense reports, convert foreign expenditures to U.S.
Dollars as follows:
Use the foreign exchange rate printed on the bank exchange receipts for
cash expenditures. Attach exchange receipts to the expense report.
Average the exchange rates when U.S. Dollars are changed to foreign
currency more than once in the same country. For example:
$200.00 to U.K. Pounds at 1.61 one day
$100.00 to U.K. Pounds at 1.65 on another day
The average rate is calculated by the following equation:
2 x (1.61 + 1.65) = 1.623
c. Credit card charges will show actual exchange rates on the monthly
bill. Upon receiving the bill for a foreign trip (this actually takes
one to three months), add up the foreign charges in U.S. Dollars and
compare this to the amount submitted on your expense report. Submit a
new expense report, with credit card billing documents attached,
showing the total difference as either "due employee" or "due company".
d. Employees will be reimbursed for expenses on regular pay days. In
order for this to occur employee must have submitted expense report to
Accounting Department at least 7 working days prior to the next regular