CST Brands, Inc. Travel and Expense Reporting Policy

Transcription

1 CST Brands, Inc. Travel and Expense Reporting Policy Effective Date: November 25, 2013 Revised Date: March 10, 2014 Policy Owner: CST Human Resources/Travel Department Applicable To: All Employees/Departments of CST Brands and its subsidiaries 1

2 Travel and Expense Reporting Policy PURPOSE: The purpose of the Travel and Expense Reporting Policy is to communicate to employees the basic standards and requirements that apply whenever an employee expends funds for business purposes and makes the necessary accounting to the Company for such expenditures. It is the policy of the Company to reimburse employees for all reasonable and necessary expenses that they incur while conducting corporate business. To be reimbursable, expenditures made by employees must support a valid business purpose. In addition to any other tests that might apply, a valid business purpose must be lawful in every respect and consistent with the high standards of business ethics required in the conduct of all corporate business activities and relationships. In terms of type, scope, and magnitude; all business expenditures must be clearly and appropriately related to the business objective to be achieved, the anticipated benefit to be derived by the Company and the particular duties and responsibilities of the employee involved. Although it is the Company's desire that employees enjoy adequate comfort and convenience while traveling or otherwise pursuing corporate business, as stewards of the Company's resources, it is also expected that they will exercise, at all times, the highest measure of prudence and sound business judgment. Audit Review Expense reports are subject to periodic review by the Internal Audit department to ensure compliance with this policy. Violations to the policy will be subject to disciplinary actions up to and including collection of expenses incurred and termination of employment. Corporate Travel Credit Card U.S. employees who are required to travel will be issued a JP Morgan Chase MasterCard. The Company requires employees to use the corporate travel card when traveling on Company business. This travel card is set up under a consolidated bill; Company pay program in which CST Brands will pay JP Morgan Chase for all charges on the card. Employees who have corporate travel cards are expected to use them strictly for all business expenses and should therefore not obtain a travel allowance. All transactions on the JP Morgan Chase MasterCard must be recorded and approved by submitting an expense report. Personal use of the corporate travel card is PROHIBITED. Violations of the policy will be subject to disciplinary actions up to and including collection of expenses incurred and termination of employment. 2

3 Travel Card Application To apply for the travel card, you must complete the corporate travel card application located on the CST Brands Portal>Employee Tools>Expense and Travel>Travel MasterCard Application. Obtain your manager s approval and submit to Amber Ruiz at AmberRuiz@CSTBrands.com. Applicant must be a full-time CST Brands employee. Contractors are not eligible for corporate travel cards. You should receive your card within 7-10 business days after approval and processing. Travel Agency and Online Booking System The Company has contracted with a third party travel agency, Corporate Travel Planners, Inc. ( CTP ) to arrange business travel for both US and Canadian travelers. Although CTP agents are available to provide full service support, we highly encourage you to use the CST Brands Online Booking System called GetThere to arrange all business air travel, hotel accommodations, and rental cars. Travel costs submitted without proof of documentation (received from CTP s travel agents or online through GetThere) will require an Executive Leadership Team s approval to be reimbursed. For questions, please contact the Travel Department at or GetThere Profile Set Up Employees without a profile in GetThere must complete the registration process by going to CST Brands Portal>Employee Tools>Expense and Travel>GetThere Registration Form. Expense Reports US employees will submit expense reports using the ExpensAble Expense Reporting Application. Employees are responsible for seeing that all entries fully comply with the policy and for their completeness and accuracy, including the insertion of any required documentation and distribution information. Exceptions to the policy will require an Executive Leadership Team Member s approval for reimbursement. The immediate supervisor is normally the authorized approver within his or her limits of authority. All expense reports and detailed, itemized receipts must be submitted to the approving supervisor for review. The supervisor will review and approve such documents in accordance with Company guidelines. The approver is expected to review each line item and check ExpensAble entries against actual supporting documentation and receipts. In no event will an approved expense report be processed for payment without the appropriate documentation and supervisor approval. The following guidelines illustrate the types of employee expenditures that are reimbursable, and procedures and requirements for submitting expense reports. For a detailed list of reimbursable and non-reimbursable expenses, see Appendix A. 3

4 For questions about preparing and submitting expense reports please contact the Accounting Department at Time Guideline for Submitting Expense Reports Expense reports, as a general rule, should be filed at least once per month in conjunction with the Corporate Credit Card billing cycle ending last business day of the month, in which the expenses were incurred. Turning in expense reports for approval two (2) months late is in violation of the Code of Conduct and will require an Executive Leadership Team Member s approval. Required Documentation and Receipts U.S. Internal Revenue Service (IRS) requirements are very precise as to the elements of any expenditure which must be recorded in the employee expense report and its supporting documents. The Company's requirements for documentation and receipts for business expenses are outlined in detail below, and are generally designed to comply with IRS regulations. Documentation and receipts should be organized to facilitate review by approvers and accounting personnel. CST Brands requires credit card transactions to be supported by a receipt. Expense reports that are submitted without required detailed, itemized receipts and documentation will be returned to the employee. If a required receipt or documentation has been lost, the employee should request a copy from the vendor. If a copy cannot be obtained, a missing receipt affidavit must be completed and submitted/attached to support the expense. The missing receipt affidavit can be located on the CST Brands Portal>Employee Tools>Expense and Travel>Missing Receipt Affidavit. Travel-Related Expenses The Company will not pay for any expense associated with personal travel that is extended on to business travel (prior to or staying after). The purpose(s) for business travel must be provided to CTP s travel agents or through the GetThere Online booking tool and documented on expense reports. Guidelines for the various types of travel expenses are detailed below. Air Travel Air travel should be coordinated so that employees traveling in the interest of the Company can conduct business in the most effective, efficient and timely manner. All domestic air travel will be booked at the lowest fare available unless approved by a member of the Executive Leadership Team. Coach will be the default class of ticket for International air travel. Business class tickets will be allowed only on a case-by-case-basis and must be approved by the CEO. First class travel is not authorized. 4

5 Advance reservations for air travel are encouraged to ensure the most economical rates. If a nonrefundable ticket is issued, travelers may incur a penalty for last-minute itinerary changes. If such penalties are incurred, the traveler will be reimbursed. All air travel expenses must be recorded on expense reports to enable expense report approvers to review total travel expenditures. Receipts should also be attached for any fees paid by employees to change travel itineraries. In addition to the receipts, CST Brands Travel s documentation/itinerary must correspond to the expense entry for reimbursement. Hotel Accommodations Employees required to stay overnight away from home on business trips are entitled to use quality, but not lavish or extravagant hotel accommodations that are appropriate for the business purpose. CST Brands has contracted with hotels to provide employees with discounted rates. Employees traveling on Company business are required to use a CST Brands Preferred hotel when available unless there is a compelling business reason. A documented explanation will be required for the exception to the policy. Expenses other than lodging that appear on a hotel bill (for example, meals, long distance phone calls, and internet access) should be separately identified and accounted for on expense reports. Pay-per-view television and items from the mini bar are considered personal and are not reimbursable business expenses. Room service should not be used excessively and these charges should be reasonable. Itemized receipts from hotels or e-receipts are required for lodging expenses. Credit card receipts or statements alone are not sufficient documentation for lodging expenses, as they do not provide all of the information required by expense report approvers. In addition to the receipts, CST Brands Travel s documentation/itinerary must correspond to the expense entry for reimbursement. Rental Cars Employees may rent automobiles while traveling on Company business, provided that less expensive local transportation alternatives are unavailable or impractical. Rentals should generally be limited to mid-size vehicles, unless the amount of luggage or length of the stay makes it necessary to rent a larger vehicle. All rental vehicles should be refueled returning them to avoid the high costs charges by the car rental companies to refuel vehicles. Since the Company's insurance program provides adequate coverage, insurance offered by car rental companies SHOULD NOT BE PURCHASED in the United States and Canada. Itemized receipts or e-receipts are required for car rental expenses. Credit card receipts or statements alone are not sufficient documentation for car rental expenses, as they do not provide all of the information required by expense report approvers. In addition to the receipts, CST 5

6 Brands Travel s documentation/itinerary must correspond to the expense entry for reimbursement. Meals and Entertainment Expenses Employees traveling on business and spending at least one night away from home will be reimbursed for reasonable meal costs actually incurred, up to three meals for each full travel day. When dining in groups, employees are not allowed to split checks. Whenever possible, the most senior employee present should pay and expense the bill. The expensing employee must list all attendees participating in the meal. There are many circumstances in which it may be good business practice to entertain customers or others with whom the traveling employee comes in contact. An employee will be reimbursed for the reasonable expense of business entertaining. Entertainment activities should not be initiated by anyone below the manager level and managers must notify the next level of management of their intention to entertain clients and/or vendors. In addition, the following requirements must be met: The entertainment must have a business purpose. The costs associated with the entertainment must be explained on the expense report, including date, place, purpose, as well as each name of the individual entertained and their business relationship. Itemized receipts are required. Other Travel Expenses Common sense rules apply to taxis, parking, tips and other miscellaneous travel expenses. Employees are expected to take reasonable steps to minimize expenses. Receipts under this expense category are required for any expenditure of $50 or more. When an airport has both long term and short term parking, employees are required to use the long term parking. Laundry and dry cleaning expenses are normally reimbursable only for business trips that exceed three days, and then only as reasonable and necessary. Mobile Communication CST Brands will reimburse costs only to the extent of a clear and documented business need. Employees whose job functions meet one or more of the criteria below may apply for reimbursement: Field Employee- Majority of the employee s primary job function is in the field. As determined by the Department Head, field employees will be reimbursed for voice and/or data service subject to the reimbursement limits. 6

7 24/7 Personnel- The employee is required to be available at times other than regular business hours. Employees identified by Department Heads as requiring 24/7 availability will be provided data service reimbursement subject to the reimbursement limits. Group shared cell phone - In rare circumstances where employees within a department share on-call duties, it is more efficient to have a shared pool cell phone that would move from employee to employee as necessary to meet the on-call business needs of the Company. Department Head must request this service and is subject to Division Head approval. Phone(s) and service will be provided and paid for by the Company. Group shared Broadband PC Card (Aircard) - In rare circumstances, employees within a department are required to access CST Brands Applications remotely, in areas where no other efficient means of data communication is available. Department Head must request this service and is subject to Division Head approval. Aircard(s) and service will be provided and paid for by the Company. The expense reimbursement is for the service only as employees may use their own smart phones or other devices. Therefore, the employee at his/her own expense will typically provide mobile communication devices. However, if you are required to have a mobile devices for business purposes and you do not have a personal device to use, advise your Department Head. An itemized copy of service provider s bill is required for reimbursement. Credit card receipts or remittance forms (summary of current charges) are not sufficient documentation. Employees will submit expense reports using the ExpensAble Expense Reporting Tool. An employee who seeks to apply for expense reimbursement must complete his/her expense report using the ExpensAble Expense Reporting Tool. The request will be sent to the employee s Department Head for approval. Monthly reimbursement will be processed through the Company expense reporting system and approved in compliance with the Travel and Expense Reporting policy. Reimbursement for data service is predicated on use of C-Sync. C-Sync is the only approved method for personal mobile communication devices to synchronize wirelessly with the corporate network. Employees will not set up rules in Microsoft Outlook to auto forward s to any non-cst Brands address. To complete the C-Sync application process and qualify for reimbursement, go to CST Brands Portal >Employee Tools>Policy and Procedures>C-Sync Policy. The employee will remain personally responsible for all costs incurred and payments required, including, but not limited to monthly fees, overage charges, late fees, service charges, activation fees, termination fees, and applicable taxes, associated with ownership and use of the mobile communication device. CST Brands may reimburse the employee for voice and data plan services based on a fixed maximum amount. Special texting plans should be approved by the Department head or are otherwise not reimbursable. Domestic- The amount to be reimbursed will be the documented actual cost incurred, subject to a monthly maximum of $60 for voice service and $50 for data service. 7

8 International- Department Heads may also approve reimbursement for business required international calls and roaming charges. International data plans will be reimbursed for the documented actual cost incurred, subject to a monthly maximum of $65. The rate of reimbursement may periodically change based on voice and data plan service cost trends. Approver has the right to review, question, and limit reimbursement requests. Use of Employee-Owned Vehicles for Company Business When employees use their personal vehicles on Company business, they may be reimbursed at the annual rate set by the IRS. To be reimbursed, business purpose, location and date are required. If a Company pool car is available, it should be used in lieu of a personal vehicle. The personal mileage rate includes reimbursement for gasoline as well as a maintenance factor on the personal vehicle. The standard mileage rate for business transportation or travel expenses will be reimbursed in accordance with the published IRS rate. These rates are automatically populated in the ExpensAble Expense system. Personal mileage may not be claimed on an expense report for the following: 1. Attending volunteer or charity events 2. Taking a customer to lunch 3. Traveling between Corporate Headquarters and the RDC 4. Traveling to/from work and home 5. Traveling to a store to perform Corner Store time Reimbursement for travel to/from an airport on Company business is allowed if the distance from your work location to the airport exceeds 25 miles. Where state law imposes different requirements, the Company will follow the law. If an employee is involved in an accident while driving a personal car on Company business, the employee may request reimbursement for the deductible amount the employee is required to pay under his or her collision insurance policy. Reimbursement will be granted if the circumstances warrant and the incident is properly documented. Use of Company-Owned Vehicles for Company Business The Human Resources department controls and maintains several Company-owned vehicles. These vehicles are available for reservation by employees and can be used while conducting Company business. Vehicles are not for personal use. Please contact Human Resources at to make a reservation. Reservations may be made up to 90 days in advance of check out date for out-of-town travel and 30 days in advance for local travel. Out-of-town vehicle reservations will take priority over local travel pool vehicle reservations and, at times, may void an in-town vehicle reservation. 8

9 A valid driver s license must be presented for pool car usage. It is important to inspect your assigned pool vehicle prior to operation. Visually check for damage, low tires, cleanliness, etc., and report any discrepancies that may cause a safety concern during operation. A vehicle used on a scheduled trip should be returned immediately upon return from the trip for which it was requested. Due to the limited amount of vehicles available for issue, and because of the large demand, vehicles must be returned by the time indicated on the reservation form. Corporate Travel Account Employees without corporate travel credit cards must arrange all business air travel, hotel accommodations and rental cars by calling CTP s full support agents and request to charge all expenses to the Corporate Travel Account (CTA). Employees will have to provide a reason for the trip and approval by supervisors. CTP will request approval from Human Resources for these charges before they are booked and confirmed. Although completing an expense report is not required, the employee is still responsible for obtaining airfare, hotel and/ or rental car receipts and ing a copy to the accounting department at CSTAPTravel@CSTBrands.com. Foreign Travel Special tax restrictions apply in the case of two types of foreign travel on corporate business: (1) travel to foreign conventions (i.e., conventions, seminars, or similar meetings held outside the United States, its possessions, the Trust Territories of the Pacific, Canada, or Mexico), and (2) combined personal/business trips in excess of seven days by Vice Presidents and higher ranking senior officers of the Company. With regard to questions arising in connection with either of the above two categories of foreign travel, the advice of the Corporate Tax Department should be obtained prior to departure. Methods of Reimbursement Payment The required method of expense reimbursement is to complete an employee paid reimbursement in ExpensAble. In order to initiate or change your bank details, please use the direct deposit form located in the CST Brands Portal > Human Resources> Employment Forms. 9

10 Appendix A REIMBURSABLE/NON-REIMBURSABLE EXPENSES The following are examples of reimbursable and non-reimbursable miscellaneous expenses. The examples apply to any form of payment by the employee (e.g., cash, corporate travel card, procurement card, personal credit card). A Management Committee member must approve exceptions. 1. Other Non-Reimbursable Expenses Airline club membership dues Annual fees for credit card membership reward programs Baby-sitting, pet-sitting, house-sitting Barbers and hairdressers Car washes and detailing Clothing (e.g., socks, pantyhose) Corporate charge/corporate credit card delinquency fees/finance charges Department lunches or dinners not business related (e.g., Secretary s Day, Boss s Day, Birthdays, Showers, Graduations, etc.) Excess baggage charges Expenses for spouses/companions, unless approved by a Management Committee member Expenses related to vacation or personal days while on a business trip Flowers (restricted to ordering through Human Resources) Golf fees (when not part of a customer, prospect or client entertainment) Gum, candy, or cigarettes Health club facilities, saunas, massages Helicopter services for airport transfers Home internet Loss/theft of personal funds or property Lost baggage, unless losses exceed airline and corporate card liability Luggage and briefcases General magazines and books Medical bills incurred during travel (though this may be covered by workers compensation or the Work Injury Program) No show charges for hotel or car service Non-compulsory insurance coverage Optional travel or baggage insurance Personal accident insurance Personal entertainment, including sporting events, movies, and pay-per-view 10

11 Personal gifts for CST Brands employees (e.g., Christmas gifts, retirement gifts, Secretary s Day, Boss s Day, illness, etc.) Personal toiletries Season tickets (when not part of customer, prospect or client entertainment) Traffic tickets 2. Other Reimbursable Expenses Air Freight Airfare penalty Becker CPA Review Course no other review course will be reimbursed via an expense report Bus Travel Business gifts up to $25 per recipient per year, recipients being non-cst Brands employees Business office expenses (fax, copy services, etc) while traveling Car washes and detailing for fleet cars and/or pool cars Checked Bag Charges Currency Conversion Fees Extra Leg Room Fee International Travel Only Food and Beverages (must be either Breakfast/Lunch/Dinner or Meals & Entertainment expense types Gasoline for rental cars for Company business GPS devices in rental cars for Company business Hunting Expenses (must be pre-approved) Laundry/dry cleaning/suit pressing for trips exceeding 3 days Newspapers and subscriptions for Company business Office Supplies on an emergency basis only (after document center closed or while traveling) Overnight child care actual cost when a single parent (CST Brands Employee) is required to travel out of town on Company business; must be supported by appropriate documentation Overnight delivery/postage when necessary Overtime meals (subject to approval) Parking for Company business Personal car for Company business (see travel policy) Professional License fee Retirement and Anniversary lunches/dinners for 20+ years service on 5 year increments Room service charges for meals, business meetings, etc. Safety Shoes/Boots Seminar and Conference fees Taxi Travel Telephone and Faxes Tips 11

12 Tolls Towing expenses for rental car mechanical breakdowns Train Travel Visa/passport/consulate fees when required for International Company business Wi-Fi charges in airport and/or hotel For any questions regarding this policy please contact the CST Human Resources Department at