1027. Board of Directors Expense Reimbursement Policies and Procedures

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1 Table of Contents Definition... 1 Introduction... 2 Scope of Policies and Procedures... 2 Policies Board Members Travel for Business Reasonable and Necessary Expenses Payment Methods Reimbursements Allowances Exceptional Expenses Expectations Expense Reports Receipts Personal Cars Entertainment and Business Meetings Non-Reimbursable Expenditures Related Policies and Procedures... 6 Forms... 6 References... 6 Version Information... 6 Definition Travel. Off-site (off-campus) expenses incurred in transport to/from an approved location for the purpose of 49er Shops business, including but not limited to transportation, overnight accommodations, meals, and other incidentals such as parking fees and tolls. Page 1 of 6

2 Introduction The Board of Directors (Board) of the Forty-Niner Shops, Inc. (Company) recognizes that Board members may be required to incur expenses from time to time to conduct Company business and to further the Company s mission. In accordance with annual budget plans and strategic directives, local and distance employee travel to training, conferences, exhibits, trade shows, and more are a part of the planned educational development of the business of this company. The purpose of these policies and procedures is to ensure that (a) adequate cost controls are in place and (b) expenditures are appropriate and (c) to provide a uniform and consistent approach for the timely reimbursement of authorized expenses incurred by Board members. Scope of Policies and Procedures These policies and procedures apply to all Company Board members. Policies 1. Board Members Travel for Business. All Company Board member travel for business purposes is to be pre-approved by the Board chairperson or General Manager/CEO before departure and will meet the following conditions: 1.1. The most economical means of transportation and other costs will be used Travel expenses associated with approved travel will be pre-paid to the venue or reimbursed to the Board member in alignment with budget allowances and the allowances defined in the Allowances section of this policy. 2. Reasonable and Necessary Expenses. It is the Company s policy to reimburse only reasonable and necessary expenses actually incurred by Board members Business Related Meals Meals taken in combination with business meetings when business cannot be done at any other time. 3. Payment Methods Pre-Payment: When possible, payment arrangements are made to pay-inadvance to travel vendors Credit Card: Typically used for airfare, hotel, and rental car payments Company Check: Can be used for hotel or rental car with pre-approval from the vendor. Page 2 of 6

3 Cash Advances: Cash advances may be given to a Board member to cover anticipated travel costs. 4. Reimbursements. Board members will be reimbursed within 14 days of submission of expense receipts to Accounting. When traveling, only pre-approved expenses will be reimbursed. 5. Allowances The Company will reimburse for travel expenses that cover: tips/gratuity, toll fees, gasoline, parking fees, and meals and snacks Board members must submit all receipts for expenses to Accounting to be reimbursed Hotel Overnight accommodations of the most reasonable economical price, are an allowable travel expense when the purpose for travel is more than 50 miles from CSULB and the business will last longer than 8 hours Mileage/car expense Mileage will be reimbursed at the current rate recognized by the IRS, which can be found at Meals When a meal or meals are included as part of a conference or other travel cost, Board members should not submit expenses for meals Entertainment The Company will not cover any costs of entertainment while traveling, unless the entertainment is part of a meal or part of a paid conference/workshop. 6. Exceptional Expenses Any anticipated expenses separate from those outlined in the approved travel plan, must have the verbal or written approval of the Board chairperson or General Manager/CEO to be eligible as an expensed item Unforeseen expenses are to be managed in alignment with the guidelines of this policy for approved expenses. Approval is to be sought as soon as safely possible from the Board chairperson or General Manager/CEO. While expenses incurred before an approval cannot be guaranteed for a reimbursement or allowable expense, exceptions will be considered on a case by case basis as to the necessity for the expense. Page 3 of 6

4 7. Expectations. When incurring business expenses, the Company expects Board members to: 7.1. Exercise discretion and good business judgment with respect to those expenses Be cost conscious and spend the Company s money as carefully and judiciously as the individual would spend his/her own funds Report expenses, supported by required documentation, as they were actually spent. 8. Expense Reports. Expenses will not be reimbursed unless the Board member requesting reimbursement submits a written expense report. The expense report, which shall be submitted at least monthly or within two weeks of the completion of travel, if travel expense reimbursement is requested, must include: 8.1. The individual s name If reimbursement for travel is requested, the date, origin, destination and purpose of the trip, including a description of each Company-related activity during the trip The name and affiliation of all people for whom expenses are claimed (i.e., people on whom money is spent in order to conduct the Company s business) An itemized list of all expenses for which reimbursement is requested. 9. Receipts. Receipts are required for all expenditures billed directly to the Company, such as airfare and hotel charges. No expense in excess of $25.00 will be reimbursed to Board members unless the Board member requesting reimbursement submits with the expense report written receipts from each vendor (not a credit card receipt or statement) showing the vendor s name, a description of the services provided (if not otherwise obvious), the date, and the total expenses, including tips (if applicable). 10. Personal Cars. Personnel are compensated for use of their personal cars when used for Company business. When individuals use their personal car for such travel, including travel to and from the airport, mileage will be allowed at the currently approved IRS rate per mile. In the case of individuals using their personal cars to take a trip that would normally be made by air, i.e., Long Beach to Sacramento, mileage will be allowed at the currently approved rate; however, the total mileage reimbursement will not exceed the sum of the lowest available round trip coach airfare. Page 4 of 6

5 11. Entertainment and Business Meetings. Reasonable expenses incurred for business meetings or other types of business-related entertainment will be reimbursed only if the expenditures are approved in advance by the Chairperson or General Manager/CEO and qualify as tax-deductible expenses. Board members must provide detailed documentation for any such expense, including: Date and place of entertainment Nature of expense Names, titles and corporate affiliation of those entertained A complete description of the business purpose for the activity including the specific business matter(s) discussed Vendor receipts (not credit card receipts or statements) showing the vendor s name, a description of the services provided, the date, and the total expenses, including tips (if applicable). 12. Non-Reimbursable Expenditures. The Company maintains a strict policy that expenses in any category that could be perceived as lavish or excessive will not be reimbursed, as such expenses are inappropriate for reimbursement by a nonprofit, charitable organization. Expenses that are not reimbursable include, but are not limited to: Travel insurance First class tickets or upgrades When the Company has arranged lodging accommodations and the individual elects to stay elsewhere, reimbursement is made at the amount no higher than the rate negotiated by the Company. Reimbursement shall not be made for transportation between the alternate lodging and the meeting site Limousine travel Movies, liquor or bar costs Membership dues at any country club, private club, athletic club, golf club, tennis club or similar recreational organization Participation in or attendance at golf, tennis or sporting events, without the advance approval of the chairman of the board or his designee Purchase of golf clubs or any other sporting equipment Spa or exercise charges Clothing purchases. Page 5 of 6

6 Business conferences and entertainment that are not approved by a Board officer Valet service Car washes Toiletry articles Expenses for spouses, friends or relatives. If a spouse, friend or relative accompanies Board members on a trip, it is the responsibility of the Board member to determine any added cost for double-occupancy and related expenses and to make the appropriate adjustment in the reimbursement request Overnight retreats without the prior approval of the Board chairperson or his/her designee. Related Policies and Procedures Forms References Board of Directors Conflict of Interest Policies and Procedures Board of Directors Request for Travel Authorization Expense Report Template Internal Revenue Service, Tax Code, Section 501 (c)(3) Version Information Policy Version Date Author Description (If applicable) Approved Distribution /08/13 Don Penrod New policy created. 03/08/13 Electronic, Manual Page 6 of 6