Business Class Policy Changes

Transcription

1 TO / DESTINATAIRE : Board of Directors FROM / EXPÉDITEUR : David Lafleur CC: Scott Simmons Senior Management Team Audit & Risk Management Committee DATE : 4/4/2012 RE / OBJET : Business Class Policy Changes Business Class Policy Changes With the introduction of the new Travel Policy there have been some changes to the Business Class Travel Policy as well. The changes are summarized as follows: 1. The formal Business Class Policy document has been eliminated and key points merged into sections 5.3 International (Overseas) Travel and 5.4 Spousal Travel of the new Travel Policy. 2. Section 5.3 of the new Travel Policy indicates business class travel is not permitted for any travel overseas with the exception of the President, in which case Board approval is still required prior to the trip. This approval is typically provided during a Board meeting at the beginning of the year. 3. Section 5.4 of the new Travel Policy indicates the CFO is required to approve ticket purchases for spouses accompanying the President and/or CEO to special events. As the purpose for the trip is typically to accompany the President or CEO to dinners where meals are usually included, Golf Canada will not cover additional expenses during the trip. 1

2 Policy: Golf Canada Travel Policy Policy Number: Administrative Policy Date Created: March 27, 2012 Last Date Reviewed: Committee/Department: Finance and Administration Authority for Approval: Management Table of Contents 1.0 General Policy and Guidelines Responsibilities of Employees Submitting Expense Reports Approval of Expense Report Credit Cards Golf Canada Guidelines and Regulations Concerning Business Expenditures Automobile Expense Air Travel International (Overseas) Travel Spousal Travel Traveler Profiles Parking Hotel/Motel Accommodations Rental Cars Telephone/Cellular Phone Expense Tips and Gratuities Meals Business Entertainment Subscriptions, Books and Other Printed Matter Risk Management Immunizations Alternatives to Travel Consultants and Contractors Other... 11

3 1.0 General Policy and Guidelines 1.1 It is the policy of Golf Canada to reimburse employees for all reasonable and necessary expenses that they incur in the authorized conduct of business and are in accordance with the approved travel itinerary. 1.2 Expenditures made by employees, to be approvable, must support the achievement of a valid business purpose. In addition to any other tests which might apply, a business purpose, to be valid, must be lawful in every respect and consistent with the high standards of business ethics generally required in the conduct of all Golf Canada business activities and relationships. 1.3 Any accounting by an employee to Golf Canada for expenditures of company funds must be based upon, and limited to, expense actually incurred, unless a fixed per diem or other similar arrangement has been specifically approved by management to apply in a particular situation. 1.4 Negligence in reporting and properly substantiating business expenditures, or in adhering to any other provisions of company policy, may result in appropriate disciplinary action. Any diversion or use of company funds by an employee for personal or private purposes is improper and constitutes serious misconduct. The deliberate and wilful falsification of expense records or claims, or participation in any other fraudulent or deceptive actions, will make an employee subject to summary discharge, responsible for financial loss and appropriate legal action. Any gross negligence or other serious misconduct on the part of those responsible for approving expense reports, and other related documents will also result in disciplinary action up to and including termination, where warranted, and the initiation of any legal actions which may be justified by the circumstances. 2.0 Responsibilities of Employees Submitting Expense Reports Employees who submit expense reports are responsible for seeing that all entries fully comply with established Golf Canada policy and procedures, particularly those requiring that expenditures serve a valid business purpose. When submitting expense reports to claim reimbursement, employees are expected to neither gain nor lose financially. Employees who submit expense reports are also responsible for the timeliness of such submissions and for their completeness and accuracy. Each traveller is expected to complete the expense report as follows: - TIP - Go directly to the shared drive every time you fill out an expense report to ensure you are always using the most up-to-date report. S:\Expense Report Template - Print and sign the expense report and attach all original receipts in order - TIP - For all entertainment expenditures, pick entertainment category, attach a

4 detailed restaurant chit fill out details in entertainment detail section of expense report - state purpose of trip or description of expenditure in descriptive section of expense report - TIP - Differences between Meals and Entertainment expenses on Expense report - Meals this category is only used when claiming meals for yourself - Entertainment this category is used when claiming meals for you and for internal staff, customers and other external contacts. Also the most senior staff member must claim the entertainment expenditure when dining out with other staff members/and or external contacts. 3.0 Approval of Expense Report The Managing Director is normally the authorized approver within his or her authority and is expected to review and approve the expense reports of all personnel reporting directly to them. Items that do not meet Golf Canada s Travel Policy or are not adequately documented or explained will not be approved or paid. 4.0 Credit Cards 4.1 All employees who travel should carry a general-purpose credit card (Visa, MasterCard, American Express, etc.). 4.2 Any fees associated with the issuance or use of a personal card are the responsibility of the employee. These expenses are not reimbursable by the company. This includes annual fees and interest charges on unpaid balances. 4.3 Credit card receipts are required for all expenditures. 5.0 Golf Canada Guidelines and Regulations Concerning Business Expenditures 5.1 Automobile Expense A. The use of personal autos for company business is reimbursable at the rate of 50 cents per km. The measurement of the KM claimed, is the lesser of: distance from Golf Canada s office or distance from employee s residence to destination. B. The following automobile related expenses are not reimbursable unless authorized by the Executive Director or the Chief Finance: tickets for parking or traffic violations valet parking

5 repair or maintenance of employee owned automobiles, including road maintenance, service calls, car wash and wax C. Employees receiving a monthly car allowance may not expense mileage. Authorized exceptions may apply. D. Any mileage reimbursement to an employee for the use of their personal auto on a business trip is not to exceed the cost of air travel and other transportation expenses that would otherwise have been incurred. A quote must be obtained by AMEX of the potential airfare saved as a result of using a personal automobile. Staff should obtain a quote from AMEX at least 14 days prior to the date of their trip. This quote, must be approved by the Controller prior to the trip taking place. 5.2 Air Travel Employees who travel on company business are responsible for arranging their own travel requirements only through AMEX online system at All air travel must be booked at least 14 days in advance of the trip. AMEX has been provided with our corporate travel guidelines as described below and will book your travel arrangements accordingly. Any requests to deviate from these guidelines will be authorized by the Controller or Chief Financial Officer directly to AMEX. A. Travel itineraries or travel pre-approval must be approved prior to arranging flights on AMEX. B. AMEX online system will quote a minimum of 2 flight options per request within 2 hours before or after your requested departure time. C. Flights will be quoted in Tango fare for Air Canada flights and economy fare for West Jet flights. Seat selection is optional. Staff members are encouraged to decline seat selection and opt to select their seat upon check-in. 24 hour advanced online check in is available with both Air Canada and West Jet. D. Travelers are required to book the lowest logical airfare that is determined using the following search criteria: Routing requires no more than one additional interim stop each way. Time Window: Departure/arrival must be no more than 2 hours before and 2 hours after the requested time. One stop & single connection flights are treated the same as non-stops for itinerary purposes, fare calculations, and lowest fare identification. E. In determining the lowest logical airfare, the low fare alternatives considered will include, but not be limited to, the following: Preferred Carrier Alternate airports Specially negotiated fares Saturday night stay-over Non-refundable fares Advance purchase fares Penalty fares Connecting and one-stop flights Group / meeting / training zone fares Lower cost non-preferred carriers

6 F. Golf Canada will not be responsible for upgrades in travel class or increased costs due to extended stays for personal reasons. Differences in fare will be invoiced separately. G. Travelers may retain frequent flyer program benefits for personal use. Participation in a Frequent Flyer Program must not influence flight selection that would result in incremental cost to Golf Canada beyond the lowest available airfare, as required by this policy. The traveler is responsible for the record keeping, redemption and income tax implications of program rewards; Golf Canada will not intervene to resolve any frequent flyer program concerns, issues, etc. Any membership costs associated with a Frequent Flyer program are not reimbursable by Golf Canada. H. Employees will be reimbursed for excess baggage charges only in the following circumstances: When traveling with heavy or bulky materials or equipment necessary for business. The excess baggage consists of company records or property. When traveling for more than 14 days. In cases where airlines charge for all bags, Golf Canada will only reimburse you for your first bag. I. Airline tickets will be charged directly to Golf Canada s credit card. J. Employees are personally responsible for any costs of flight changes exceeding $150 (inclusive of change fee) unless approved in advance by the Controller or Chief Financial Officer 5.3 International (Overseas) Travel A. Employees are not permitted to fly business class or first class while traveling overseas (Coach only). B. Exceptions to this may be allowed under extenuating circumstances. These exceptions must be approved by the CFO or Controller prior to purchasing/upgrading the flight. Upgrades not approved are to be paid for personally. C. There are specific flights pre-approved by the Board where the President is permitted to purchase a business class ticket. Any business class travel request outside of the pre-approved flights must be approved by the Treasurer in advance of booking. 5.4 Spousal Travel A. Costs for spouses who accompany an employee on a business trip are not covered by Golf Canada. B. In some situations it is reasonable to expect a spouse to accompany the President and CEO/Executive Director to events while on a business trip. In these circumstances, Golf Canada will pay for the spouse s flight. No other travel expenses will be covered. These trips should be preapproved by the CFO prior to booking.

7 5.5 Traveler Profiles A. All travellers are required to maintain an up-to-date Traveler Profile, which should be reviewed on an annual basis for any status change. B. The profile form can be completed on-line or obtained through American Express Business Travel Services by contacting C. The traveler is responsible for reporting / updating all personal travel information changes. This will include charge/credit card numbers, address, phone numbers (including mobile, emergency contact), title, medical restrictions, special meal requirements, Frequent Flyer membership number, other loyalty plan membership accounts and seat preferences. D. Every effort will be made to adhere to the traveller's preferences and reservation requests, as detailed in the traveller profile, but the traveller must recognize that the supplier, i.e., air carrier, hotel property, car rental agency, etc., is ultimately responsible for the final assignment and there may be circumstances when a traveller's request cannot be fulfilled exactly as requested. 5.6 Parking o Parking fees will be reimbursed when incurred during business travel. o Golf Canada will reimburse for parking at the airport while away on a business trip o Airport parking charges will be reimbursed for personal car used to and from the airport when this is the most cost-efficient means available. o Original receipts with date and fee must be retained in order to request reimbursement. o Short-term parking is allowed if at the airport for 48 hours or less. o In cases where you are away for more than 48 hours, you should use one of the following options, depending on which is the lower cost: a) Park n Fly (rather than Airport Long term) b) Taxi to and from the airport c) Relative or Friend driving you to and from airport ($.50 per KM) 5.7 Hotel/Motel Accommodations A. Travelers are required book their hotel on AMEX online system to ensure they get the best rate possible. B. When overnight travel is required, modest rate hotel/motels should be used. C. Travelers are required to reserve Standard rooms only. Travelers may accept room upgrades to suites or executive floor rooms ONLY if the upgrade is at no additional cost to the company. D. It is the traveler s responsibility to confirm upon check-in that the rate charged is the same or lower than that listed on your travel itinerary E. Actual room charges, including taxes, should be listed on the expense report. The detailed hotel/motel receipt must be attached to the expense report.

8 F. The following lodging related expenses are not reimbursable: In room movies when there is an additional charge Room service charges unless used as a main dinner Dry cleaning and laundry services, unless trips are in excess of 4 days Drinks or snacks from mini-bars G. Hi-Speed internet access offered at hotels is a reimbursable expense if the service was used primarily for business purposes. H. If an employee stays overnight at the home of a friend or relative during the course of an authorized business trip in lieu of a hotel/motel, the cost of a gift or token of appreciation may be included on your expense report. A receipt should be attached to the expense report to support this type of claim. For guidance in this area, the employee should contact the Controller. I. If two full time employees room together in one room at a hotel, they are both entitled to a $25 daily travel incentive. 5.8 Rental Cars Common sense rules apply to the use of rental car, whether for extended or local travel. Intermediate size cars are the standard that should always be used when renting a car, unless there is specific business case to rent a larger vehicle (e.g. transporting materials for tournaments or transporting other Golf Canada personnel). Most hotel/motel chains offer a courtesy car or limousine service between the hotel/motel and the airport. This service is usually free or available at a nominal charge. It is recommended that the employee check with the hotel/motel for availability of service before using a taxi or renting a car. A. Travelers are required to book their car rental on AMEX online system to ensure they get the best rate possible. B. Golf Canada has agreements with three different car rental agencies; Thrifty Car Rental, Budget/Avis Car Rental and National Car Rental. Travelers are not required to use one of these car rental agencies, but should pick based on the best rate that the AMEX online system provides. C. In Canada, additional insurance should not be purchased when renting a car. Our company insurance policy covers collision damage on your rental vehicle for periods of 30 days or less. The Golf Canada name and address must be added to the car rental contract along with your name when you pick up your vehicle. You should also inform the car rental agency that the company s insurance policy is with AVIVA Insurance company, policy no This will only cover the business portion of your rental period. Any personal portion should be covered under your own personal insurance policy. D. For any rental cars outside of Canada (I.E. United States), you must use the Golf Canada corporate credit card as U.S. Car rental companies do not

9 honour Canadian Insurance company coverages for immediate settlement. E. Any employee involved in an accident with a rental car must report it without delay to the Chief Financial Officer who will contact the insurance carrier. F. In general, any employee required to pay a deductible amount as a consequence of an accident with a rental car may claim reimbursement for such payment via an expense report. G. The rental car should be fully fuelled prior to being returned. H. You should use a Golf Canada corporate credit card to provide additional protection that we have under the corporate card. I. Any personal use of Car Rentals must be deducted on your expense report using the Personal Portion field. J. Traveler should inspect the car and note any existing damage on the contract before the vehicle is accepted. 5.9 Telephone/Cellular Phone Expense A. Employees travelling on company business are permitted a reasonable number of telephone calls home. B. When away on business employees should use these three scenarios when making telephone calls: a. Company telephone calling cards should be used whenever possible. Calling cards may be obtained from the Director, IT. b. Cellular phones may be also used when travelling on company business. Employees should check their particular cell phone plans for long distance/roaming charges. c. Hotel phones should only be used as a last alternative since they have the most expensive rates. C. Cellular Phone charges are permissible under these circumstances: a. Outbound Employees A. You are deemed as being an outbound employee. An outbound employee is an employee that is required to travel on Golf Canada business on a regular basis (as outlined on the Employee benefit summary) B. Golf Canada will only reimburse monthly charges plus business related calls. C. The employee is responsible for paying all cell bills in a timely manner and can claim this charge on an expense report, after deducting any personal calls. b. Inbound Employees A. Inbound Employees are eligible for reimbursement in special cases (i.e. working at a tournament site) as preapproved by your Managing Director and the Controller B. Golf Canada will only reimburse business related long distance charges. C. The employee must attach a detailed copy of the cell phone bills indicating business calls being claimed.

10 5.10 Tips and Gratuities The payment of tips and gratuities should be limited to those situations and services where such payments are normal practice. Tips normally should not exceed 15% for restaurants or $10.00 for baggage handling when required Meals A. The company will reimburse employees who travel away from home for one night or more on authorized company business, the actual cost of meals incurred. B. A credit card receipt or a cash register ticket run through a credit card machine (or a restaurant cash register tape if the establishment does not accept credit cards) is required for all meals over the guidelines. All restaurant receipts should be validated (stamped or initialed and dated) by the restaurant. Meals may be charged to your hotel room and documented by the detailed hotel receipt. C. Any food or drinks consumed outside the normal meal schedule are considered non-reimbursable personal expenses unless incurred as a part of a valid business entertainment section. D. When employees are required to assist at Golf Canada operated tournaments, Golf Canada provides a daily perdiem for meals not provided on site. A perdiem is only granted for a period of 5 days or more. Otherwise employees can purchase their meals and fill out a Golf Canada Expense report together with detailed receipts. The perdiem amounts are based on the following: Breakfast - $10.00 Lunch - $15.00 Dinner - $30.00 E. Employees Dining Together - When more than one employee is present at a business meal, the most senior level individual is required to pay and expense the bill Business Entertainment A. All entertainment must be documented on the expense report with the date and place, amount spent, names of people entertained and their positions, and the business purpose of the entertainment. (TIP - fill out the entertainment detail section) B. Detailed restaurant chits are required for all entertainment indicating on the receipt and expense report all parties involved. C. Includes the cost of meals, refreshments, and other necessary expenses incurred in entertaining customers or other persons for the purpose of furthering an essential business relationship or purpose. D. Meals are not reimbursable in the following circumstances: under no circumstances should a meal be claimed when another employee has claimed for the meal or the meal has been provided by someone else during the course of the trip. This includes meals on airlines, meals provided by vendors or other business associates, and meals included in the cost of

11 seminars and other business functions. E. Business entertainment at a personal residence is reimbursable at the actual cost incurred. This type of entertainment should be used on a limited basis and have prior approval of the employee's Managing Director. F. Business entertainment must precede or follow a business discussion. Given that Golf Canada is a public member-based organization, employees should exercise discretion in their entertainment choices (i.e. not to include race tracks, adult entertainment, casinos, etc.) G. If any entertainment expenses are incurred during a tournament, and a perdiem has been supplied, that perdiem must be deducted from the entertainment expense claimed. (i.e. $100 entertainment expense - $30 dinner = $70 entertainment expense claimed) Subscriptions, Books and Other Printed Matter Normally an approved subscription, book, or other printed matter should be paid directly by the company against an invoice or billing statement. However, where the circumstances justify doing so, these materials which contribute to a valid business purpose may be purchased directly by an employee and accounted for on an expense report (in the miscellaneous section) when authorized by the Managing Director Risk Management No more than two C-Suite members may travel on the same flight. A maximum of three members of the extended senior management group may travel on the same flight. No more than five employee s total, regardless of level or division, may travel together on the same flight. A maximum of three officers of the Board may travel on the same flight Immunizations A. American Express Business Travel Services will advise if immunizations are required based on travel destination. B. The employee based on their medical situation is also advised to contact their personal physician to determine if an immunization or other medical intervention is recommended prior to travel. C. Immunization costs are reimbursable if required for business travel Alternatives to Travel E-Meetings, tele- and video-conferencing are effective alternatives to travel and represent an opportunity to significantly reduce travel costs as well as Golf Canada s impact on the environment leading to climate change. Every potential traveler should consider if the business objective can best be accomplished through the use of an e-meeting, teleconference or videoconference.

12 5.17 Consultants and Contractors If a non-employee (contractor, consultant, employment applicant) is required to incur travel or entertainment expenses at the request of, and for the benefit of, Golf Canada, the guidelines and requirements of the Travel and Entertainment Expense Management Policy will apply to the non-employee to the same extent as imposed on the employees of Golf Canada, with the following exceptions: A. Reimbursement of travel-related expenses not already paid by Golf Canada will be based on an invoice submitted by the non-employee to Golf Canada rather than via the reimbursement procedures outlined for employees in this policy; however, the invoiced amount must be supported by documentation. B. Entertainment expenses of the non-employee incurred in the course of Golf Canada business are not reimbursable unless pre-approved by the Chief Financial Officer or Controller. C. In no circumstance will personal travel expenses of either the contractor/consultant or a companion/spouse be reimbursable by Golf Canada. D. Travel insurance coverage does not extend to the non-employee and Golf Canada will not provide reimbursement for any travel-related insurance premiums Other If an employee is extending their trip for personal reasons the employee is required to book their extended days as vacation. Illness during Business Travel If a traveler becomes ill or is injured while traveling on Company business: They must report the illness/injury to their manager as soon as possible. If an employee incurs medical expenses during a business trip: The employee must advise the Human Resources department in writing, immediately upon return, to determine extent of expense reimbursement. All requests for reimbursement of this nature must be approved in writing. Medical bills incurred during domestic travel are not reimbursable. Alison/Dave should review Insurance All employees traveling on company business are covered by the company's insurance policy. This policy does not cover loss of or damage to personal effects such losses must be claimed under your homeowner content insurance. All rental car insurance should be declined, except liability insurance. All employees who participate in a Company group benefit plan are covered by Global Medical Assistance (GMA), and does not need to purchase other travel medical coverage. GMA coverage is provided anywhere in the world and the coverage is also extended for travel within

13 Canada if you are 500km or more from home. Those traveling on business who are not covered under this plan (i.e. short term contract employees, independent contractors etc.) must ensure they purchase reasonable travel medical insurance prior to departing on business travel. Questions related to travel medical coverage may be directed to Human Resources. Loss/Theft of Valuables While Traveling If a loss of Golf Canada property occurs the incident must be reported to the Human Resources department. If the loss is the result of theft a written report should be made to local law enforcement authorities and a copy of the report submitted to Golf Canada s Human Resources department. For the loss or theft of personal property, employees must file a claim with their personal property insurance company/agent to determine policy coverage. If your baggage is lost by an airline you can call the airline directly to resolve the issues. Within North America, Air Canada can be reached at BAGS (2247), West Jet can be reached at and Porter can be reached at Golf Canada will NOT reimburse expenses for the loss or theft of personal items or valuables while traveling.

14 Business Class Travel Policy 1. A business class ticket may be purchased for use by the President for any budgeted trips that are overseas. 2. Business class travel for any trips that are not budgeted require special approval by the Treasurer or the Executive Committee prior to booking. 3. The spouse of the President is eligible for a business class ticket for overseas travel where he/she is required to attend the trip as part of an invitation to the RCGA. In a normal year, the only qualifying trip that a spouse is expected to attend is the Open Championship in the U.K. 4. Where business class travel is approved it is not acceptable for a governor or staff member to exchange a business class ticket for two or more economy class tickets.