TRAVEL & EXPENSES POLICY

Transcription

1 SEE ALSO Hard Rock Portal, Cellular Phones (CO-13) POLICY: This policy applies to corporate employees, field employees and casual temps who are required to incur expenses as part of their role with the organization. We have outlined, in detail, most of the instances that normally occur; however, if we have not addressed a specific topic, contact the Vice President of Finance or the Vice President of Human Resources, or Hard Rock s Global Travel Manager, for direction on how to handle the expense prior to incurring. It is the responsibility of all employees to obtain, understand and comply with this policy. Please note that travel and expense reimbursement is for those expenses incurred that directly affect you. All other expenses for Hard Rock International should be billed directly and processed through Accounts Payable (A/P). If you are unsure of what should be billed and what should be expensed, please contact A/P for direction. It is Hard Rock International s policy to reimburse employees for necessary expenses to conduct business on behalf of the company. This policy is not designed to provide financial gain or create a financial burden to the individual. The policies set forth for travel and expenses are necessary for cost control, IRS compliance, efficient use of company resources and applies to all employees, franchise owners or anyone spending money on behalf of the company. It is the company s policy to comply fully with all travel and expense related laws and requirements. Additionally, this Policy enables the consolidation of airline purchases and hotel and car rental services to secure the most economically appropriate rates and available discounts while meeting the traveler s business travel/expense needs, delivering high quality and secure services. It is important that everyone utilize the company s designated travel agency and on-line booking tool for business travel. In order for Hard Rock to provide duty of care to its employees; maintaining their wellbeing, security and safety when working, it must know every traveling employee s whereabouts in case of an emergency or accident. If a traveler cannot use the designated services, prior approval from Hard Rock International s CEO or VP of Human Resources should be obtained, and travel details need to be sent to the DH in order to maintain duty of care. Contact Hard Rock s Global Travel Manager if you experience any service issues that would deter you from using the designated travel management company. DETAILS: GENERAL & APPROVALS For the purposes of this policy, the terms Travel & Expenses (T & E) and Department Head (DH) shall be used and applies to the following: General Managers Directors of Operations Corporate Directors and Senior Directors Vice Presidents President & CEO The Vice President of Finance or the Sr. Director of Finance may be used as backup for travel approvals in the event the DH is unavailable. Page 1 of 14 July 2014

2 TRAVEL All procedures and guidelines set forth in this policy are related to travel originating both domestically and internationally. All airline, rail, hotel, and auto rental reservations should be made via our corporate on-line booking tool (preferred method) or an agent from our Travel Management Company. Specific contact information is found in the Travel Portal. Commingling personal travel with business travel is permitted as long as there is no incremental cost to the company, and the traveler s business time and purpose are not compromised. All personal aspects of commingled travel are the financial responsibility of the employee. Prior approval from the DH should be obtained if an individual travels with family or a guest, while on business. AIR TRAVEL When booking flights, employees should choose the lowest logical fare and take advantage of discounted fares, including restricted and non-refundable fares. Lowest logical fare parameters are based on: Routing requiring no more than one additional interim stop each way. Departure/arrival times within two (2) hours of requested time. When not choosing the lowest fare, the reason for this decision should be noted. The company does give consideration to nonstop flights based on fare differences as it relates to the length and nature of the trip. North America - all flights exceeding $500 will require an authorized approval before ticketing. EMEA all flights require an authorized approval before ticketing. All employees are expected to plan trips in advance and should ticket no less than seven (7) days from planned travel (few exceptions apply). In the US, the most savings can generally be realized if international flights are booked twenty-one (21) days out and domestic flights are booked fourteen (14) days out. In Europe, for international travel with definite dates, it is best to book as early as possible; otherwise the 7 14 day rule should be followed. Travelers are required to use preferred carriers whenever possible. First consideration should be given to these carriers but if you are presented with a fare that is at least $/ / 100 less than the preferred fare, you may opt for another carrier. You will be informed of who our preferred carriers are when you book via an agent or on Concur. Page 2 of 14 July 2014

3 Airport Parking North America The use of offsite parking is strongly encouraged over paying high fees for onsite airport parking. Refer to the Travel Portal for details about the current, nationally contracted service provider. Offsite parking reservation fees are reimbursable. Ancillary Baggage, Internet and Seat Assignment Fees It is the traveler s responsibility to consider all ancillary fees when booking travel and seek to minimize such fees whenever possible. Seat assignment fees on low cost carriers (Southwest, Spirit, easyjet), who do not pre-assign seats upon purchase, are reimbursable. The purchase of a preferred seat is also reimbursable in the event the traveler is assigned a middle or less than optimal seat. This must be notated on the expense report. Class upgrades are NOT reimbursable. Only the first checked bag is reimbursable unless the trip exceeds seven (7) days or the traveler s job requires packing extra equipment. Additional baggage due to personal travel will not be reimbursed. In-flight wifi fees are reimbursable for flights exceeding 2.5 hours only. It is also more economical to pre-purchase wifi during the booking process than during the flight. TRAVEL CLASS Service other than coach is authorized only in certain circumstances These circumstances are not on a regular travel basis and only limited to Directors and above. Reference: Attachment A. EXECUTIVE TRAVEL To assure the continuity of our operations is not lost in an air disaster, the President & CEO, CFO and VP Business Affairs are not permitted to travel on the same plane without advance notification and approval of the President & CEO. TRAVEL EXPENSES Please refer to the expense section of this policy for expensing and reimbursement details and procedures. DIRECT BILLING Direct billing is against company policy, with the exception of arrangements for MIT s and when a block of rooms is contracted for a company planned meeting or event. The charges may still be dispersed back to the traveler s budget, with prior notification. Page 3 of 14 July 2014

4 INSURANCE The company provides Emergency Medical, Business Travel Accident & Identity Theft coverage for ALL employees traveling for business purposes (coverage types may vary by position). The business travel policies and applicable member ID cards are available on the Hard Rock Portal under Support Center- Human Resources Shared Documents Travel Safety. Any additional purchase of business insurance is a personal expense and not reimbursable. Reference: Attachment B What if my passport is stolen while traveling? If you are a victim of theft or loss of your personal or financial documents while traveling on business, a single toll-free call to Identity Theft Protection Services, 24 hours a day, seven (7) days a week, will start the proactive steps needed to defend against the fraudulent use of your information. A copy of this card is available on the Hard Rock Portal under Support Center Human Resources Shared Documents Travel Safety Chubb Business ID Theft Card. Reference: Attachment B FREQUENT FLYER BENEFITS The accumulation of benefits for participating in a frequent user program offered by t h e airlines, hotels, or rental car agencies are retained by the employee for personal use; however, any membership fees are the responsibility of the employee. Participation in these programs must NOT influence flight/vehicle/hotel selection that would result in an incremental cost to the company beyond the lowest available rate offered. AIRPORT FAST PASS Sr. Directors and above, as well as eligible frequent travelers, are authorized to subscribe to their local airport s security fast pass program. Only one program will be reimbursed per traveler. AIRLINE CLUBS Membership fees for airline clubs are not reimbursable. TRAVEL REQUESTS Before any search for travel itineraries begins, you must obtain approval from your DH, advising them of the business purpose. Once approval is given, you can then proceed with researching and booking travel. Go to CONCUR via a link on the Portal or directly to to book your travel. You will need to create a profile, if it has not already been done. If your trip has multiple stops or is complicated, contact an agent for assistance. All agent contact information is located on the Travel Portal. The agents will need: Originating airport, destination, dates of travel, arrival/departure times (give a window of time you are willing to travel), car or hotel requirements and purpose of trip. It is the responsibility of each traveler to review and confirm all the details of the itinerary received from the travel agent. All necessary changes should be communicated directly to the travel agent as soon as possible. A transaction fee is charged for processing and changing tickets. Reference: Attachment C. Page 4 of 14 July 2014

5 What if I need to arrange travel without advanced notice? While last minute travel should be kept to a minimum, a situation may arise that requires the traveler to book a flight at the last moment. Should this happen, the traveler must obtain approval from the DH prior to making arrangements. The traveler is not to purchase tickets directly over the counter without the agent s assistance as it incurs a higher cost to the company. You should use the after-hours service if during non-business hours. AFTER-HOURS TRAVEL ASSISTANCE North America If the travel office is closed, your call will automatically roll over to the After Hours service (8 pm 8 am EST). There is an $18.00 fee for calling after hours, plus any transaction fees. Europe Your call will automatically roll over to the After Hours service (6 pm 8:30 am GMT). There is a 30 fee for calling after hours, plus transaction fees. Basically, this service should ONLY be used in emergency situations. CAR RENTAL U.S. travelers are required to utilize the currently approved car rental agency listed on the Travel Portal (the discount can also be used toward personal rentals). Unless previously approved by the DH, the rental of luxury cars will not be reimbursed. When cost effective, taxi service is recommended. U.S. Car Rental Insurance Within the U.S., Zurich covers rentals used for business, but subject to deductibles. When completing the car rental agreement, travelers must decline both the Collision Damage Waiver and Personal Accident Insurance as this is covered by our Corporate automobile insurance. International Car Rental Insurance For territories outside the U.S. and Canada, the insurance program only includes liability coverage, not physical damage. When employees travel outside the U.S. and require a rental car, they should purchase any coverage offered by the rental company. Full Tank upon Return The traveler should return the rental car with a full gas tank as the rental agencies charge an extra premium for refueling whether pre-paid or not. Company will not reimburse any pre-paid fuel fees. What if I have an accident? Accidents must be reported to the Risk Manager at the Corporate office, by noon (12:00 pm) the next business day. Page 5 of 14 July 2014

6 GROUND TRANSPORTATION Taxis and other available transportation should be used in lieu of rental cars when the daily cost will be less. Receipts must be submitted for all ground transportation cost reimbursements. HOTEL ACCOMMODATIONS The company has negotiated and designated favorable hotel rates in our most frequently traveled cities. In order to meet the volume requirement on which the rate has been negotiated, the designated hotels should be used by all travelers. The traveler is encouraged to voice opinions on their hotel accommodations, as negotiations are an ongoing process with hotels. A traveler should not and is not expected to stay at a hotel that he/she considers unsafe. Upon check-in, employees should verify that their rates match their confirmation documentation. Employees submitting expenses for lodging from a non-designated hotel are subject to the refusal of reimbursement. Employees are discouraged from the use o f hotels that are not on the authorized list, as this prevents the company from maximizing its purchasing power in negotiating future rates. In those areas where the company does not have designated hotels, accommodations should be comfortable, not luxurious, and should be within the reasonable price range for the area. Accommodations should not exceed $ (pre-tax) per night. In more costly areas (i.e. Boston, New York, London) a reasonably priced hotel should be selected. International accommodation rates should be reasonable and any questions regarding reasonable should be discussed with your DH. Hotel reservations will be guaranteed against the traveler s credit card on file. To avoid a no-show charge, it is imperative that unnecessary reservations be canceled. It is the responsibility of the traveler to notify the hotel of a cancellation. No-show charges are not a reimbursable item. PERSONAL TRAVEL The travel agency provides excellent service for individual personal travel. All personal travel must be billed against an employee s credit card. Personal and business travel should not be combined without prior approval of the DH. If travel is a combination of business and personal, expenses must be allocated accordingly. Meals, lodging and all transportation resulting from the personal portion of a trip is not subject for reimbursement. Do not use Concur to book personal travel as it may require your DH s approval and will be reported as business travel. Page 6 of 14 July 2014

7 TRAVEL BUDGETS Each department will have a pre-approved budget and set of guidelines for all travel for each accounting period. It is the responsibility of the appropriate DH to manage all travel for their department within the approved guidelines and overhead budgets are monitored monthly to ensure adherence. The Corporate Accounting Department will provide reports to the DH on a period end basis to assist in the monitoring of the department s overhead budget and the Travel Manager will provide reports on each traveler s activities with flights booked vs. lowest fares offered. BUSINESS EXPENSES AND EXPENSE REPORTING All procedures and guidelines set forth in this policy are related to both Domestic and International expenses. CORPORATE CREDIT CARD Hard Rock International provides a Corporate credit card for those that have extensive business travel needs. It is not required to use a Corporate credit card for travel expenses. It is provided for the employee s convenience as well as the company. All payment obligations are the employee s responsibility as an individual and any late payments will accrue to their credit history. The reimbursement process has been adjusted to facilitate the timely return of expense checks. Interest and finance charges will not be reimbursed. An employee may accrue all benefits as an enrolled member of the credit card company such as Membership Miles, Rewards, etc. However, the employee is responsible for any enrollment fees as they are NOT reimbursable. EXPENSE REPORTING PROCESS The company respects the integrity of each individual employee and accordingly, expects each person to prepare an expense report honestly and accurately. Expenses should be submitted on an approved, current expense report and in accordance with the policies set forth for submitting this form. Expense reports should be submitted once every thirty (30) days to coincide with billing cycles. Individuals that have multiple trips can submit one consolidated report for the month. Any receipts submitted beyond sixty (60) days of the imprinted date will require the approval of the Vice President of Finance for reimbursement. All employees must submit original, itemized receipts with their expense reports, including those with VAT (value added tax) in order for claims to be filed appropriately. If original, itemized receipts are not submitted, a bank statement can be accepted, otherwise, the Vice President of Finance or the Sr. Director of Finance will determine if payment is appropriate. The expense report MUST include names of people entertained, the detailed business purpose, where entertained and amount of expenditure. Page 7 of 14 July 2014

8 These are necessary for the Corporate Accounting Department to ensure IRS compliance in addition to accurate claims and preventing duplicate reimbursement. Approved expense reports with original receipts submitted to the Corporate Accounts Payable Department prior to Tuesday, 2:00 pm (EST), will be processed and checks distributed on Thursday afternoon. Checks for expense reports submitted to Corporate A/P after Tuesday, 2:00pm (EST) will be cut and distributed the following Thursday. Any exceptions must be approved by the Vice President of Finance or the Sr. Director of Finance. All employees must have their expense reports signed by their DH before submitting for reimbursement. Refer to Delegation of Authority Master in Finance section of the Portal for approval levels. The Vice President of Finance shall approve Vice Presidents expense reports in the absence of the President/CEO. Receipts are not required on expense reports for miscellaneous tips under ten ($10.00) dollars (i.e. gratuities for cab drivers, housekeeping, bellmen, etc.). Although a receipt is not required, it is required that each tip be itemized on a daily basis on a piece of paper and the total sum can be submitted on the expense report itself. ed, faxed, and hand-written expense reports are not accepted. ENTERTAINMENT Entertainment expenses are allowed for business purposes only and reasonableness should prevail. questions regarding reasonableness should be discussed with your DH in advance of the expenditure. Any MEALS Travel meals are defined as meals for an employee while traveling for business purposes. Expenses should be reasonable based on the geographic location. Travel meals will be reimbursed at total cost, plus tip with original itemized receipt. Business meals may be provided for guests or other business associates, for the purpose of a business discussion. We strongly urge, when possible, to dine at a Hard Rock Cafe, and the total bill should be paid by cash or credit. Employee discount should not be applied. Reimbursement will then be processed via the regular expense report. Tips should be limited to 20%. Any amount above 20% will be paid by the individual. Can I expense meals for my co-workers? Meals may only be purchased for other employees of the company in certain business circumstances. Reimbursements should be limited to occasions related to business purposes. THE MOST SENIOR MEMBER OF MANAGEMENT PRESENT should pay the bill. Page 8 of 14 July 2014

9 PER DIEM Per diem will be paid to Managers in Training (MIT) and opening staff only, and should be determined by the DH and/or Director of Operations prior to the commencement of travel. Opening Staff A daily per day rate shall be decided based on length of travel and geographic location; details are outlined in the opening team letter. Per diem is not to exceed $35.00 per day. MIT - Paid at a daily rate of $30.00 per day when out of town. (If MIT is training in home unit, there's no per diem). This is designed to cover meals and any incidentals, i.e. phone calls, taxis, etc... However, most meals should be eaten at the Cafe in an effort to save on costs and become more familiar with the entire Cafe menu. Employees being paid a per diem allowance are paid based on the total number of hotel nights for each business trip. Employees paid per diem cannot also be reimbursed for meals purchased. GIFTS Gifts are generally not reimbursable. The Vice President of Finance must approve any exceptions. Flowers for illnesses, congratulations and deaths, must be approved by the DH and limited to $ One arrangement should be sent on behalf of Hard Rock International and not an individual. Also, one arrangement per occasion, from the respective department. In extreme circumstances where additional consideration should be given regarding gift, flowers, etc. outside the above guidelines, the Vice President of Human Resources should be consulted for guidance and coordination of efforts. MILEAGE Mileage is expensed any time you use your personal vehicle for business purposes. The rate is determined by current IRS guidelines. Employees shall not be reimbursed for the cost of commuting between their home and their job. In those geographic areas where subway, tolls, parking, and commuter transportation are necessary, these expenses may be reimbursable with prior, written approval from the DH. Mileage is reimbursable by filling out a mileage report and submitted as backup to an expense report. Mileage to and from the airport is reimbursable if the mileage from home to the airport is greater than mileage from home to the office (i.e. mileage from home to office is ten (10) miles; from home to airport is fifteen (15) miles reimbursable amount is for five (5) miles). PHONE CALLS When traveling, calls should NOT be made from hotels but on a personal cell phone. The company recognizes the need to stay in contact with family when traveling. However, personal calls should be kept to a reasonable length and cost. Reference: Cellular Phones (CO-13). Page 9 of 14 July 2014

10 CASH ADVANCES Cash advances are not part of our standard police. If a cash advance is necessary due to a highly unusual, or extenuating circumstance, prior approval must be obtained from the Vice President of Finance. The advance should be paid by use of expense report. If a balance is left over, the employee should submit a check for the difference to the Corporate Human Resources Department along with the expense report. MISCELLANEOUS What if I purchased an airline ticket that I do not use? If you are reimbursed or issued a credit for the purchase of an airline ticket that goes unused, it is the employee s responsibility to pay back the company, via the Corporate Accounts Receivable Department or deduct the amount from the next expense report submission. Can I expense my laundry during business travel? Reasonable laundry service is reimbursable when traveling for more than six (6) consecutive days or planned trips are extended unexpectedly. What expenses are NOT reimbursable? This is not intended to be a comprehensive list of non-reimbursable items. If you are unsure of something, contact the Corporate Accounts Payable Manager or the Global Travel Manager. Personal meals in home town day of travel or day of return, unless at airport. Mini bar charges. Personal reading materials. Clothing and toiletries (personal hygiene products, gum, etc.) Hotel movies and video games. Hotel spa and gym services. Airline change fees (resulting from personal reasons). Auto trains. Baby-sitting/day care, pet care. Credit card delinquency fees. Excess-weight luggage fees, unless business reasons dictate. Frequent flyer miles or any loyalty program points or fees. GPS devices (for personal car or rental car). Hotel room upgrades. Parking tickets, traffic violations, auto repair. Personal gifts. Page 10 of 14 July 2014

11 What other expensing policies should I be aware of? No Hard Rock International business unit may; (a) make any political contribution or expenditure of any nature (including but not limited to cash contributions, tickets, advertisements, donation of Corporate assets, services or personnel, and expenditures to the media intended to affect political decisions); (b) encourage individual employees to make any such contributions or expenditures; or (c) reimburse an employee for any political contribution or expenditure. For International travel expenses, the daily currency rate should be utilized for the day of the expenditure. If a currency exchange receipt was not obtained, please refer to or the Wall Street Journal. The commission fee is reimbursable. If credit card was used, enter the exact dollar amount on the statement and submit statement with original receipts on an expense report. Page 11 of 14 July 2014

12 ATTACHMENT (A) Guidelines for Directors and Sr. Directors Economy Class, with lowest logical fare, should always be booked when traveling for business. For international flights, travelers should consider arriving at their destination one day in advance to adjust to time changes. Incurring an extra night of hotel stay is more cost effective than flight status upgrades. This also allows the traveler personal time to maximize their travel experience. If time does not allow for an additional travel day prior to work duties, Premium Economy Class can be considered for flights exceeding eight (8) consecutive hours (this does not include the legs before or after the 8 hour flight). If Premium Economy is not available, Business Class will be considered with prior approval from the department Vice President. Guidelines for Vice Presidents Premium Economy Fares (if available) or Business Class Fares are permitted for all flights exceeding eight (8) consecutive hours (this does not include the legs before or after the 8 hour flight). This does not allow for First Class. All other travel is by coach service with the least expensive fare. Guidelines for President & CEO The President & CEO has the discretionary opportunity to fly First Class on International and Domestic flights. He/She must use discretion when booking, by evaluating the price and amenity differential between first and business class to determine necessity. Page 12 of 14 July 2014

13 GENERAL ATTACHMENT (B) Page 13 of 14 July 2014

14 GENERAL ATTACHMENT (C) Transaction Fees: Travel Inc & Chambers What is a transaction fee? A fee charged by travel agencies to process or change airline tickets. What are the specific costs for transaction fees? North America $23.50 transaction fee will be charged for every agent assisted new ticket issued. $6.50 transaction fee will be charged for every Concur (on-line) ticket issued. $13.00 fee will be charged if an agent must make any adjustments to an on-line booking. $18.00 fee will be charged each time a call is made after hours (8 pm 7:59 am) Your DH will receive immediate notification for any flight changes after ticketing. Any changes made prior to actual ticketing no fee. Voids and refunds no fee. Europe 20 transaction fee for UK domestic flights if agent assisted. 26 transaction fee for European flights if agent assisted. 30 transaction fee for International flights if agent assisted. 10 transaction fee for UK, Europe, and International if booked via Concur. 30 fee will be charged each time a call is made after hours (6 pm 8:29 am). EXCHANGES Once you have been ticketed, any changes made to date of travel and/or time of travel a transaction fee will be assessed and a notification will be sent to your DH as changes should not be made without prior approval. VOIDS No transaction fee. REFUNDS Given if flight is cancelled within 24 hours (depending on airline), but transaction fee is still assessed. Page 14 of 14 July 2014