Policies and Procedures

Transcription

1 I. PURPOSE The Port of Oakland has established this Hosting Policy ( Policy ) to document the approval process, requirements, responsibilities and limits for Port employees hosting external events on official Port business. Hosting events and meals among Port employees only are not allowed unless pre-approved by the Executive Director. II. INTRODUCTION A. A Port employee may host potential business partners, existing tenants and other business partners and community and governmental officials and agencies on behalf of the Port if the following criteria are met: Provides significant value to the Port; and Utilizes Port funds in a prudent, cost-effective and reasonable manner and in accordance with this Policy; and (iii) Utilizes Port funds that have been included in the Port s approved budget; and (iv) Does not violate applicable laws; and Meets one of the following objectives: a. Promotes the use, continued use or increased use of Port services, facilities and properties that yields revenue for the Port; b. Provides the opportunity to gather information on the business climate of existing tenants or other business partners or to discuss outstanding issues or concerns of existing tenants or other business partners; or c. Advances the advocacy and communication objectives of the Port. B. Pre-approval on the Hosting Authorization Form (see Exhibit 430-A) is required for all hosting in excess of $1,000, exceptions to Allowable Hosting Expenses as stated in this Policy and (iii) hosting events and meals among Port employees only. C. Where more than one Port employee participates in a hosting event, the Port employee at the highest level of authority should report the expense, except in the 430.1

2 limited circumstances described in the next sentence. For special events that are organized and hosted by a particular division, the most senior Port employee in that division may incur the expense for the event, even though the Executive Director, Deputy Executive Director or Director from another division attends the special event. D. All expenses incurred for Port hosting must comply with the terms set forth in this Policy; otherwise the expense will be the responsibility of the Port employee and will not be reimbursed by the Port or if paid with a Port Purchasing Card, reimbursement by the Port employee is required. E. Request for reimbursement of out-of-pocket expenses incurred for Port hosting must be submitted to the Accounts Payable Department within 30 calendar days of the conclusion of the hosting event and in accordance with this Policy. Payments made with a Port Purchasing Card must be submitted in compliance with the Port s Purchasing Card Use Policy (AP 511). F. When incurring hosting expenses on behalf of the Port, the Port employee must recognize that the Port is a public entity and that all expenses involve the use of public funds. Expense Reports will be audited from time to time and are public records under the California Public Records Act. G. Port employees must comply with the Port s Travel Authorization and Reimbursement Policy (AP 406) if the Port employee is traveling in connection with hosting. H. Port employees must comply with the Port Employee Code of Conduct while hosting on behalf of the Port. III. ROLES AND RESPONSIBILITIES A. Hosting Port Employee Responsibility - Port employees who host are responsible for: Understanding and adhering to this Policy. If applicable, receiving documented authorization to host prior to hosting (see Section IV.B. Exceptions to Allowable Expenses )

3 (iii) Making certain that the business related expenses they incur are ordinary, reasonable, and necessary for the purpose of the hosting and in compliance with this Policy. (iv) Submitting complete, accurate and detailed expense reimbursement claims within 30 calendar days from the conclusion of the hosting event and in accordance with this Policy. Payments made with a Port Purchasing Card must be submitted in compliance with the Port s Purchasing Card Use Policy (AP511). Returning to the Port within 30 calendar days any reimbursement or payment issued by the Port which was subsequently refunded to the Port employee. B. Approving Official Responsibility - An Approving Official for a Port employee must be a Manager or higher level employee for which the Port employee reports to in the same division and within the Port employee s chain of command. An Approving Official must have knowledge of the Port employee s daily functions at the Port and be able to certify reasonableness and business reason for the hosting expenses. The Approving Official is designated to approve hosting expense reimbursement claims. The Approving Official is responsible for: Understanding and adhering to this Policy. Ensuring expense reimbursement claims are ordinary, reasonable, necessary, and supported by a business purpose or justification, as appropriate and in compliance with this Policy. (iii) Validating, to the extent possible, that the expense reimbursement claims were actually incurred by the Port employee and that appropriate supporting documentation is attached. (iv) Approving/denying payment of the expense reimbursement claims in a timely manner. Denying expense reimbursement claims not directly related to Port business. (vi) Providing timely turnaround of approval requests; typically no more than three (3) business days for each level of approval

4 C. Accounts Payable Responsibilities A department of the Financial Services Division; Accounts Payable is responsible for processing approved expense reimbursement claims submitted by Port employees. The Accounts Payable department is responsible for: Reviewing/auditing for compliance with this Policy. Verifying appropriate Approving Official. (iii) Ensuring appropriate documentation is submitted. (iv) Denying expense reimbursement claims not directly related to Port business or not in compliance with this Policy and reporting such event to the Controller and/or Chief Financial Officer as deemed necessary. Processing expense reimbursements claims and payments. IV. PROCEDURES A. Hosting Authorization: A Hosting Authorization Form (see Exhibit 430-A) approved by an Approving Official is required prior to hosting for all Port hosting events in excess of $1,000. See Section II of this policy for Criteria for Hosting. Requests for approval of Hosting Authorization Form, when possible, should be submitted to the Approving Official at least one (1) week prior to the hosting event. B. Allowable Expenses Meals: a. Meals must be reasonable and prudent and commensurate with the time of day. A maximum of $80.00 per person for dinner and a maximum of $50 for lunch and $30 for breakfast (including drinks, taxes and tips) will be reimbursed. b. Alcohol is reimbursable up to a maximum of two drinks per person. Alcohol charges are included in the meal maximum set forth in Section IV.B..a. Alcohol is not reimbursed for meals or events during business hours

5 c. Whenever possible, Port employees are encouraged to use restaurants operating on Port property. d. Itemized receipts (when customarily available) are required to be submitted with Expense Reports and Purchasing Card Reconciliation Statement (if the Port employee has a Port Purchasing Card). Meal expenses placed on a Port Purchasing Card in excess of the Maximum Reimbursable must be reimbursed to the Port when the Purchasing Card Reconciliation Statement is submitted. Entertainment/Special Events a. Expenses for reasonable and customary entertainment and special events are reimbursable up to a maximum of $80 per person. b. Expenses for Port-sponsored travel and lodging for hosted guests are subject to the same limitations for Port employees as set forth in the Travel Authorization and Reimbursement Policy (AP406). (iii) Promotional Items a. Expenses for promotional items of nominal value ($25 or less per person) given in connection with a hosting event are reimbursable. Examples include items of nominal value carrying the Port logo, such as t-shirts, pens, mouse pads, and notebooks. b. Personalized plaques or trophies with an individual value of less than $250 given to commemorate a special event are reimbursable. (iv) Non-Reimbursable Expenses: The following expenses will not be reimbursed by the Port except for very limited circumstances pursuant to Section IV.B.: a. Any personal items. b. Any expenses of family members or friends at hosted events. c. Any expenses incurred with vendors or consultants who are not currently engaged by the Port and who are soliciting business from the Port (regardless of which party initiated the invitation)

6 d. Any expenses incurred among Port employees only. e. Any expenses at a concert, theater, spectator sporting event, amusement park or loud entertainment venue, such as a night club. f. Any expenses at an adult entertainment venue. g. Any expenses for a meeting with a group that includes persons who are not business associates (such as family and friends), at places where there are substantial distractions that would prevent an employee from actively conducting business (such as at cocktail lounges, country clubs, athletic clubs or vacation resorts). h. Any hosting expenses of representatives from the same company in excess of six times per year. Exceptions to Allowable Expenses: Any exceptions to Allowable Expenses require written pre-approval as stated on the Hosting Authorization Form (see Exhibit 430-A) An expense in excess of what is permissible under this Policy will be deemed a personal expense and will not be reimbursed if the Port employee failed to obtain appropriate pre-approval. In no event may exceptions be allowed for items a and f in Section IV.B.(iv). V. Compliance with Laws, Including the Foreign Corrupt Practices Act Port funds may not be used for any unlawful purpose. Because the Port sometimes does business with companies owned or controlled by foreign governments, Port employees must be particularly mindful of the requirements of the Foreign Corrupt Practices Act (FCPA). A. Foreign Corrupt Practices Act (FCPA) The FCPA prohibits corrupt payments to foreign officials to obtain or retain business. The most obvious example is a bribe. But the broad wording of the law requires that persons representing the Port pay attention to all payments and offers of payment that could benefit representatives of foreign governments and state-owned companies. Some of the key points to be aware of are as follows: 430.6

7 The term foreign official includes employees and representatives of not only foreign governments but also companies owned or controlled by a foreign government. If you are unsure if a particular company is state-owned, consult the Port Attorney s Office for guidance. A payment can be cash or anything else of value, regardless of size, and can include an offer or promise of future payment or benefits. (iii) A corrupt purpose is the intent to induce an official to misuse his or her position -- to direct business wrongfully or to fail to perform his or her official duties -- or otherwise provide the payer an illegitimate business advantage. (iv) The law does not prohibit payments made for a non-corrupt purpose, which includes reasonable expenditures for business entertainment and gifts offered to build legitimate business relationships and to properly promote the merits of the Port s facilities and services. If Port employees honor the dollar limitations set forth in this Policy, expenditures for ordinary business entertainment and promotional gifts for a foreign official are unlikely to raise issues under the F. Nonetheless, since the facts and circumstances of a particular situation can render a payment or benefit to a foreign official illegal regardless of the size, persons representing the Port are encouraged to consult the Port Attorney s Office for guidance as needed. VI. How to Obtain Reimbursement for Hosting Expenses A. General All expenses must be in compliance with this Policy in order to be reimbursed. If a Port Purchasing Card is used, expenses not in compliance with this Policy must be reimbursed to the Port by the Port employee. Timely Reimbursement: Port employees seeking reimbursement for out-of pocket expenses must submit an Expense Report within 30 calendar days of the completion of the hosted event. Expense Reports submitted after 30 calendar days will not be reimbursed

8 (iii) Purchasing Card Holders: The use of a Port Purchasing Card to pay for Port hosting expenses must be in accordance with the Port s Purchasing Card Use Policy (AP 511). Port employees who carry a Port Purchasing Card should use their Port Purchasing Card whenever possible to reduce the chance of the duplicate submission of receipts. B. Itemized Receipts and Documentation The original, itemized, detailed receipts must be provided for all expenditures (other than those items that typically do not provide a receipt, such as: tips, tolls, certain international restaurants). A credit card statement with just the total is not sufficient. Each itemized receipt must be imprinted with the name of the business and date. If the itemized receipt is lost, damaged or otherwise unavailable, the Port employee should contact the supplier or service provider and obtain a replacement itemized receipt. If attempts to obtain an itemized receipt are unsuccessful, the Port employee must provide a written explanation of why an itemized receipt cannot be attached to the Expense Report. Depending upon the circumstances and the explanation of expense, the expense may not be reimbursed. C. Requirements for Completing Expense Report The Expense Report can be found on the Port s intranet at The general requirements of Allowable Expenses are defined in Section IV.B. of this Policy. All expenses must be itemized and include the following information in accordance with best practices and in compliance with IRS regulations: a. Business purpose (general descriptions such as Business Lunch or Business Expense are too vague and not acceptable). b. Date and place incurred. c. Amount of the expense. d. Names, titles and organization of other participants

9 e. Itemized receipt (credit card summary with just the total is not sufficient); see Section VI.B. (iii) Port employee must obtain approval of the Expense Report from Approving Official. (iv) Port employee must include with the Expense Report: a. Itemized receipts; see Section VI.B. b. Hosting Authorization Form (see Exhibit 430-A), if applicable. By signing the Expense Report, the Port employee requesting expense reimbursement will be certifying that he/she: a. Received authorization to host (if applicable). b. Incurred the expense on official business. c. Actually spent the amount for listed expenses. d. Has verified that the amount due is accurate. e. Has not and will not seek reimbursement for (1) a duplicate claim or (2) from any other source. (vi) The Accounts Payable Department will normally process reimbursements within five (5) business days of submittal provided that the Expense Report is submitted with appropriate documentation and approval. D. Authorization of Chief Financial Officer and Port Controller to Deny Reimbursement Claims In auditing the claim for technical compliance with statutory and Port procedural requirements, the Chief Financial Officer and Port Controller are authorized to refuse payment of any expense claims, or portions thereof, which are not properly authorized or documented, or which are not submitted in accordance with the requirements established in this Policy

10 F. Audit and Public Records All expense reimbursement documents will be audited from time to time and, except under very limited circumstances, are considered public records under the California Public Records Act. VII. Failure to Comply with this Policy Failure to comply with this Policy will result in denial of the requested reimbursement and/or disciplinary action up to and including termination. VIII. FORMS: Exhibit 430-A Hosting Authorization Form

11 Exhibit 430-A HOSTING AUTHORIZATION FORM Required Only if Hosting Event >$1,000, Requesting an Exception to Allowable Hosting Expenses or (iii) Hosting Event or Meals for Port Employees Only. Pre-Approval Required. Must Return Original with Expense Report, Request for Check or PCard Reconciliation Statement in order to be Reimbursed by Finance Hosting Employee: Division: Phone: Title: Department: Describe Business Purpose and Value that hosting event will provide to the Port: Hosting Event Date(s): Hosting Location(s): Number of Attendees to be Hosted: Name, Title, Organization of Attendees: Is this event budgeted? Yes No Estimated Expenses: Meal: $ Entertainment/Special Event $ Other $ Total Estimated Expenses $ Description: Are there any exceptions to allowable expenses? Yes No If yes, please fill out exception and justification below. Exception Request: Justification: By signing below, I have read, understand and agree to be in compliance with the Port s Hosting Policy (AP 430), Travel Authorization and Reimbursement Policy (AP 406), and Code of Conduct Policy (A P17). I understand that violation of these policies will result in discipline, including up to termination. Signature of Hosting Employee Date Signature of Employee s Approving Official Print Name, Title Date * Manager Level or Higher Signature of Division Director or DED Print Name Date Signature of Executive Director Print Name Date Signature of Board President, if applicable Print Name Date * Required only if Hosting Employee is a Direct Report of the Board