POLICIES & PROCEDURES

Transcription

1 Subject: Expenses Reimbursable to Employees Scope: All IDEX Business Units Worldwide Number: POLICIES & PROCEDURES Last Reviewed: June 25, 2009 FIN-WW Last Updated: June 25, 2009 Administration: This document is maintained and updated by the IDEX Corporate Office. Inquiries regarding interpretation or revisions of the policy/procedure should be made to the Corporate Controller. CONTENTS 1.0 General Policy 2.0 Pre-Authorization Approvals 3.0 Cash Advances 4.0 Expense Reporting Process 5.0 Credit Card Policy 6.0 Reimbursable Expenses 7.0 Receipt Policy 8.0 Timing of Submittal 9.0 Policy for Approvers 10.0 Record Retention 11.0 Purchase Cards 12.0 Employee Moving and Relocation 1.0 GENERAL POLICY 1.1 Applicability this policy applies to all IDEX locations. The policy includes specific instructions for those Business Units using the Concur expense reporting process, defined in Section It is the Corporation s policy to pay on behalf, or reimburse employees, for authorized and reasonable expenses incurred which are necessary and incidental to the accomplishment of corporate business objectives. Costs incurred because of personal negligence or carelessness, such as fines, damage to personal effects, etc., are not reimbursable. Employees are expected to use discretion and good judgment in all areas where Company funds are expended. 1.3 All employees that incur reimbursable expenses are accountable to be fully familiar with and comply with this policy. All approval level employees are also accountable to assure that such approvals are for expenditures and supporting data that complies with this policy 2.0 PRE-AUTHORIZATION APPROVALS 2.1 Business Unit Presidents have the option of requiring formal structured pre-travel authorizations for all employees in their unit, using an optional Travel Authorization feature within Concur. 3.0 CASH ADVANCES

2 3.1 Cash Advances are not allowed, except for unusual circumstances as determined by the local controller. The availability of company credit cards will negate the need for most, if not all, cash advances. 4.0 EXPENSE REPORTING PROCESS 4.1 An on-line web based system hosted by Concur Technologies, will be used to process business expenses incurred by employees. This process includes preparation of the expense report, submission via fax of required receipts to an imaging service, supervisory approval, accounting review, and back end processing. 4.2 The following general guidelines pertain to use of Concur: Business Units are to use the system as configured by the Company Use exclusively no alternative or duplicate paper or alternative systems to be used Concur to be used for credit card and cash transactions - employees that do not receive company credit cards must still use Concur 4.3 Business Units not using Concur will continue to use FIN-WW A Expense Report Form.xls which is available on IDEXonline. 5.0 CREDIT CARD POLICY (Business Units Using Concur Only) 5.1 The Company has designated US Bank One Card as the exclusive IDEX credit card. The designated card will be issued to employees that travel on a regular basis, with issuance and limits at the discretion of the local controller. The credit card will be issued in the employee s name and approved charges will be paid by the Company. The following applies to all company cardholders: Cards are registered in the employee s names and cardholders are expected to maintain the card in a secure manner and keep account in a current condition by timely submission of incurred expenses Use is mandatory for all business expenses where such card is accepted, including low value transactions Personal use is not allowed except where unavoidable, such as a personal item on a business hotel folio. If personal expenses are incurred, the employee must designate such expense as personal in Concur, and make payment for personal expenses directly to US bank. IDEX will not remit payment for personal expense IDEX will remit payment to the card provider for all business expenses following an approved expense report Cardholders are responsible for late fees due to untimely and/or incomplete submission of expense reports Cardholders are subject to card suspension for accounts overdue by 60 days, and card cancellation for accounts overdue by 90 days 6.0 REIMBURSABLE EXPENSES 6.1 The general policy is that all costs should be reasonable and appropriate for the business at hand. However Concur will be configured to flag not to exceed spending amounts for the following expense types: Airfare greater than $1, Client/3 rd party meals and events greater than $ per attendee Company employee recognition goodwill greater than $75.00 per attendee Company employee only meals and meetings greater than $75.00 per attendee Hotels lodging and tax greater than $ per night

3 6.2 In many instances, spending should be well below the not to exceed amounts. If the threshold amounts are exceeded, a satisfactory explanation must be added to the expense report prior to submitting for approval. 6.3 Air Travel Employees and business units are encouraged to use American Express Business Travel and the Cliqbooks online booking tool accessed thru Concur. Reservations should be made online whenever, practical as agent-assisted booking incurs a significantly higher booking fee Ticket selection must be based on lowest available coach class pricing. Generally, non-refundable tickets should be purchased, unless a very high probability of itinerary change is anticipated Business class travel should generally not be considered for any trip less than 8 hours non-stop. Business class ticketing requires pre-approval by the Business Unit President or Group Executive Preferred vendors, as communicated by the Company should be used wherever practical for air, car rental and lodging The use of personal aircraft or aircraft piloted by employees is strictly prohibited. Chartering private aircraft is not permitted unless prior written approval is received from the CEO s office The company will not reimburse fees for airport clubs and lounges. 6.4 Personal Auto The use of personal autos for company business purposes is reimbursable at a mileage rate established by the corporate office based on IRS prevailing guidelines. The prevailing rate will be hard coded into Concur. 6.5 Rental Cars All business-related car rentals should be made via Avis, IDEX s preferred car rental agency, because of special pricing and enhanced international insurance coverage arrangements. When completing the Travel Preferences section of Avis enrollment, employees should decline all insurances. However, employees will need to take the minimum statutory liability coverage and collision damage coverage when renting Avis cars in the following countries: Australia, Bahamas, Guam, Jamaica, Korea, New Zealand, Turks and Caicos Islands, U.S. Virgin Islands and Puerto Rico. Additionally, if renting a car outside of the US and Canada through a vendor other than Avis is necessary, employees will need to purchase the minimum statutory liability coverage and collision damage coverage Intermediate cars should be booked for all business travel, unless a strong business reason exists to reserve beyond the intermediate car default Employees should not opt for Fuel Service (automatic purchase of a full tank of gas) as a default preference in their Avis profile Employees should not opt for GPS Navigation as a default preference in their Avis profile. 6.6 Lodging Use the itemize feature in Concur for the hotel lodging expenses. Expenses must be itemized per day, not aggregated The following expenses are generally not reimbursable: movies, health club fees, gifts, dry-cleaning, in room mini-bar alcohol or other nonessential items.

4 6.7 Meetings, Meals, and Events Individual breakfast, lunch or dinner - Reimbursement will be made for your personal meals when you are traveling Client/3rd party meals and events - This category should be used for meals or entertainment when guests include non-idex individuals at the meal or event. Names and titles of attendees should be included on the expense report and items discussed. Whenever possible the most senior employee in the group should pay the business expenses to ensure proper review and approval Company employee only meals and meetings - This category should be used for all costs associated with Company business meetings (i.e. meals, audio visual equipment, room rental, etc.) some examples are internal business meetings, holiday office party and the global leadership meeting. Names and titles of attendees should be included on the expense report and items discussed. Whenever possible the most senior employee in the group should pay the business expenses to ensure proper review and approval Company employee recognition goodwill (excluding holiday party reported above) - This category should be used for all costs associated with Company employee recognition events (i.e. meals, audio visual equipment, room rental, etc.). Some examples are recognition events (i.e. service recognition or retirement), team building or sporting events. Names and titles of attendees should be included on the expense report and items discussed. Whenever possible the most senior employee in the group should pay the business expenses to ensure proper review and approval. 6.8 Membership Dues and Meetings Cost of memberships and annual dues in professional and trade associations will be reimbursed by the Company where such affiliations have been selectively approved by the Business Unit President or Group Executive as being clearly contributory to the interest of the Company Costs incurred by an employee's attendance at area or national meetings of professional, civic, and service organizations will be reimbursed by the Company where such affiliations have been approved by the Business Unit President and the Vice President - Group Executive. 6.9 Travel for Spouse on Company Business On unusual occasions where spouses may be important to a business relationship or spouses are invited to a professional association or business meeting, and with the express approval of the Business Unit President and appropriate Vice President - Group Executive spouse may accompany the executive on business travel at the company s expense. Since the cost of the spouse's travel is not an allowable deduction for U.S. tax purposes, the expense type Travel Spouse should be selected and explanatory comments must be added to the expense report 7.0 RECEIPT POLICY 7.1 Concur Processing Receipts are required for all company credit card transactions of $75 or greater and for all hotel/lodging expenses. Receipts are also required for all non-company credit card transactions of $10 or greater. Do not submit receipts that are not required by policy.

5 7.1.2 Required receipts only are to be affixed via the imaging service prior to submitting expense reports for approval. Upon completion of an on-line expense report, a bar-coded receipt cover page must be printed. The cover will indicate the required receipts and instructions for faxing. See Section 10 for receipt retention requirements. Do not submit receipts that are not required per policy 7.2 Business Units Not Using Concur Processing Receipted bills normally provide in the ordinary course of business must be attached, including those representing expenses charged directly to the Company. However, all individual expenditures of $50.00 or more whether charged to the Company or paid directly by the employee must be supported by a paid receipt or an invoice. The cost of meetings, meals or events and the related gratuities are to be considered as separate transactions so shown on the expense report. 8.0 TIMING OF SUBMITTAL OF EXPENSE REPORTS & REIMBURSEMENTS 8.1 Concur Processing Expense reports are to be submitted on-line for supervisory approval, after receipts are affixed via the receipts imaging service Timing is dependent on all credit card charges populating Concur; this usually takes 3-5 business days. Expense reports should be submitted within 5-10 business days following the last charge Frequent or daily travelers can submit all cleared charges weekly Multiple event travel within a weekly period may be reported on one expense report and include commentary explanations covering the entire itinerary Expense reports may be submitted prior to actual travel for tickets or other fees that were incurred well in advance of the planned trip. This will prevent late payment issues If tickets are not used that have been submitted for payment the traveler is responsible to cancel the reservation prior to departure date. Credits for tickets that are refundable will be issued and should be reported via the Concur system. Employee is responsible to use tickets that are not refundable, but can be used for future travel. Note the amount reported in the Concur system for these transactions should be the change fee and any additional ticket charges Reimbursements to employees will be made via payroll Payments for company credit card charges will be made by IDEX after expenses are reported and approved 8.2 Business Units Not Using Concur Processing Reimbursement is obtained by submitting a signed, itemized expense report promptly at the end of each week or immediately following the completion of longer trips. Expense reports submitted later than one week following completion of a trip raise concern because of one s inability to recall precise details of expenditures with the passage of time. 9.0 POLICY FOR APPROVERS 9.1 The approver for all units using Concur will be the employee s direct supervisor. Approver can delegate approval to same level or higher during an absence. The required approvers for units not on Concur are the employee s direct supervisor and Business Unit controller. The Business Unit Controller may reimburse the Business Unit President for each personal expense report as submitted, provided the test of the policy is satisfied for those Business Units not on Concur. However, the Business Unit President shall then submit all personal expense

6 reports in the original forms, on a quarterly basis, for approval by the appropriate Vice President Group Executive or Senior Vice President operation who in turn will notify the Business Unit President and Controller of any adjustments deemed necessary. 9.2 Approvers should ascertain that the incurred expenses were appropriate and that the desired business benefits were achieved. Approvers should then review the expense report and ascertain policy compliance prior to final approval. 9.3 Approvers should review receipts for company card transactions. 9.4 Approvers must notify employees that use of personal cards for company business must cease immediately. Likewise, employees that incur cash transactions where the company card would have been appropriate must also be notified by approvers to cease such activities. IDEX receives cash rebates based on company card use and also has opportunity to leverage spend by capturing such expenses through the company card. 9.5 Expense reports received for approval should be reviewed and approved or sent back to submitters no later than two workdays after receipt RECORD RETENTION CONCUR PROCESSING ONLY 10.1 The Concur system is IRS compliant regarding record retention. As such, neither employees nor local accounting should maintain any paper records of expense reports and/or original receipts. The only exception is that original copies of receipts that have a potential for a VAT refund claim must be kept in accordance with instructions from the local controller. Employees may destroy all paper original receipts, other than VAT refund eligible transactions, after the corresponding expense report is approved PURCHASE CARDS 11.1 Each unit controller is responsible to assure that a written policy is in place and enforced in regard to P card transactions. The Concur process accommodates P card transactions. Therefore, all P cards should be converted US Bank One Card and processed via Concur. Petty cash funds, and or excessive manual check writing for small transactions, are to be discouraged and replaced with a P- card process EMPLOYEE MOVING AND RELOCATION 12.1 The Concur process accommodates relocation expense reporting. Refer to separate IDEX policies for employee moving and relocation requirements.

7 AMENDMENT HISTORY CP Rev Date Description of Change Originator Approved By CP /1/1996 Initial Release CP /6/2006 Updated to reflect Concur changes CP- WW /1/2009 Reformatted and renumbered policy (from CP2.120 to CP- WW-8-100) to align with new standard IDEX Corporate Controller s Office IDEX Corporate Controller CP- WW /25/2009 Incorporates covenants of new AVIS car rental program. D. Wolfe H. Morgan, J. Ryan