Updated in 3/2016 Technical Instruments TRAVEL POLIC Purpose The objective of these guidelines is to provide Technical Instruments(TISF) travelers and travel arrangers with the policies and procedures for reporting and approving employee's expenses incurred when on Company business. Scope This policy shall apply to all employees of Technical Instruments and is subject to change at the sole discretion of the TISF management group. Policy TISF s policy is to reimburse all employees for travel and related expenses incurred on behalf of the Company for essential business purposes. Travel on behalf of the Company should not result in a cost to the employee, nor should it result in a profit. In the interest of fairness and uniform treatment of all employees, the Company has embraced the following travel policy. Excessive expenses may not be reimbursed. Disciplinary action, as indicated in the employee handbook, may be taken for misrepresentation or falsification of reported expenses, including: The improper recording of expenses or supporting documentation (receipts, bills, etc.) The improper direct billings to TISF Corporate Page 1
Responsibility For travel and entertainment expenses to be properly controlled, the following guidelines for responsibility should be observed: All employees are responsible for: Exercising good judgment and discretion in spending Company funds; Timely submission of reimbursable company travel expenses; Completing expense reports in such a manner that expenses are properly substantiated in accordance with TISF and the IRS s legal requirements. (Inquiries regarding these requirements may be made through the Accounting department.)- Please see the attached Expense report examples and guidelines Non-compliance with this policy will be considered sufficient reason to deny or delay reimbursement of the expenses. All members of management are responsible for: The reasonableness, propriety and necessity of expenses, which they approve; For seeing that the employees under their jurisdiction are knowledgeable and fully aware of the Company and reimbursement procedures; Auditing, reimbursing and accounting for expense reports in accordance with Company policy; HR Manger will be responsible in counseling employees on interpretations of the Company. Travelers seeking reimbursement should incur the lowest reasonable travel expenses and exercise care to avoid impropriety or the appearance of impropriety. Reimbursement is allowed only when reimbursement has not been, and will not be, received from other sources. If a circumstance arises that is not specifically covered in this travel policy, then the most conservative course of action should be taken. Corporate Page 2
AIR TRAVEL Flight Information Travelers are expected to obtain the lowest available airfare that reasonably meets business travel needs. Airfare may be prepaid by the business office. Travelers are encouraged to book flights at least 30 days in advance to avoid premium airfare pricing. Corporate Rebate Programs Employees are required to use the company s rebate program when booking flights as described below. United Airlines PerksPlus: https://unitedperksplus.united.com/ -Account ID: R6703 Southwest SWABIZ: https://www.swabiz.com/ -Company ID: 99528914 Delta Airlines: https://delta.com -SkyBonus ID: US0068276 Fares Employees should make travel arrangement in advance, in order to take advantage of any special rates offered by the airlines. Pre-planning for 21, 14, or 7-day advance-purchase airline tickets are substantially less than full, coach class fares. Authorization is needed if flights are booked on short notice of 5 days or less. Please note that accepting a flight with multiple connections or use of alternate airports (i.e.: flying out of X city instead of city, or flying into Newark instead of LaGuardia) or back-to-back ticket may result in substantial savings and should be evaluated against traveler s time and reason for travel. Keep in mind that numerous changes or cancellations result in a cost each time a change is requested and cancellations or penalty fees may be quite substantial. Back-to-back ticket: Purchasing two tickets that result in a lower fare than purchasing one round-trip ticket. Lowest Available Airfare: All airline tickets must be booked at the lowest available airfare. The following criteria will be utilized to determine lowest available airfare. The flight s departure or arrival time is within two hours before the requested departure or arrival time; One stop or connecting flights must be booked if savings of $200 or more can be achieved; Travelers may not specify a preferred carrier if a significantly lower cost fare is available. Baggage Fees: Baggage fees will be reimbursed. Rebooking Fees: Rebooking or change fees will be reimbursed for emergency situations only and require authorization. Corporate Page 3
Class of Service It is TISF s policy that only the logical lowest fare in discounted tourist/coach class is used for all travel both domestic and international. Coach class or economy tickets must be purchased for domestic or international flights (defined as flight time totaling less than five consecutive hours excluding layovers). A higher-priced coach ticket cannot be purchased for a subsequent upgrade in seating. First-class tickets are not reimbursable. A less-than-first-class ticket (i.e., business class) may be purchased at Technical Instrument s discretion for domestic or international flights (defined as flight time exceeding five consecutive hours excluding layovers). Frequent Flyer Miles Frequent flyer miles are the property of the employee. Employees are expected to choose airfare based on the lowest cost flights and not on frequent flyer memberships. Weekend Stays If an employee elects to extend a trip over part of a weekend to qualify for a discounted fare, the cost of claimed expenses will be reimbursed provided they do not exceed the amount saved from the original ticket and must be pre-approved by your Supervisor. Changes in Travel Plans while en route Should the traveler change the itinerary while en route (domestically or internationally) and the adjusted fare is $250.00 or more than the original ticketed fare, the Company must deem the change reasonable before reimbursement will take place. TISF reserves the right to disallow any change in excess of $250.00 that is deemed unreasonable. Tickets Electronic Tickets (E-Tickets) Employees are encouraged to accept an E-Ticket, if offered by the airline/agent. E-Tickets save time and money by eliminating lost ticket application fees and hassles caused to the traveler. Prepaid Tickets Prepaid tickets (fee assessed) allow a traveler to have a ticket waiting for them at the airline counter at their departure city. Management approval must be obtained before a prepaid ticket may be purchased. Exchanged Tickets If you should exchange a ticket, you must thoroughly document the additional charges associated with this transaction. Corporate Page 4
OTHER MEANS OF TRANSPORTATION Personal Automobile Mileage for the use of an employee's personal automobile on company business will be reimbursed at the current corporate rate. All mileage is figured from departure point to destination point. In addition, parking expenses and toll charges incurred by employees when traveling on company business are reimbursable, provided a receipt is submitted. Automobile Rental Use of rental automobiles is limited to circumstances where other transportation is either more expensive or impractical. Find the best rate available or use one of the TISF preferred contracts as listed below; AVIS Reservations: 800-331-1551 -Wizard Number: 413847 -PIN:7JR615 Budget Business Program -Budget Corporate Discount (BCD): 135435 Hertz -Corporate Discount (CDP):2098641 When renting a car DOMESTICALL (United States) and in CANADA, additional automobile rental insurance (collision damage waiver) should be declined as TISF employees are insured while on company time. INTERNATIONALL (Excluding Canada), AUTOMOBILE RENTAL INSURANCE SHOULD BE PURCHASED. Obtain the Company discount by using the corporate discount number assigned to TISF by the contracted automobile rental agencies. The class of automobile booked may be intermediate or smaller. Groups of 4 or more company personnel may upgrade one size. Before returning the automobile to the rental agency, employees are expected to fill the gas tank since rental companies assess a costly surcharge for this service. Employees are also expected not to purchase prepaid gas. Taxi/Bus/Shuttle Bus/Shuttle service should be given preference whenever available, unless a taxi can be shared at a lower cost or time is a critical factor. The traveler must obtain a receipt for taxi fares before being reimbursed, no matter what the level of expense. Corporate Page 5
LODGING Hotel and motel expenses incurred when traveling on Company business are reimbursable. Accommodations should be obtained, whenever possible, at a moderately priced, respectable hotel or motel. The cost of overnight lodging (room rate and tax only) will be reimbursed to the traveler if the authorized travel is 45 miles or more from the traveler s home or primary worksite. TISF company hotel selection policy is 3 star rated hotels where it is located at safe and convenient locations, in U.S. and Canada, unless there is a special need. Regardless of any preferred rate, every effort should be made to obtain the best rate possible. A single room with private bath in a suitable, moderately priced hotel is the Company standard - balancing quality, price and security. TISF will reimburse lodging expenses at reasonable, single occupancy or standard business room rates. When the hotel or motel is the conference or convention site, reimbursement will be limited to the conference rate. Only single room rates are authorized for payment or reimbursement unless the second party is representing the agency in an authorized capacity. If the lodging receipt shows more than a single occupancy, the single room rate must be noted. If reimbursement for more than the single room rate is requested, the name of the second person must be included. Reservations should be guaranteed for late arrival. In the event a no-show charge cannot be waived, the traveler is responsible for incurred charges. Corporate Page 6
MEALS Reimbursable Costs Employees will be reimbursed in accordance with the actual reimbursement policy as described later. Personal Meal expenses are those incurred by those traveling on TISF business when dining alone. Personal meals must be itemized by meal and will be reimbursed up to $60/day and include breakfast, lunch, dinner and any snacks, drinks, etc. Amounts incurred in excess of the per diem will be the obligation of the traveler. Meals between Employees If another TISF employee pays for your meal, you may not claim your meal. The cost of business meals between employees requires approval of VP or higher, if the amount per person exceeds company reimbursement policy. Business meals Travelers are required to follow TISF expenditure policies when requesting reimbursement for business meals. Original itemized receipts are required. ENTERTAINMENT Within departmental guidelines, reasonable and properly documented entertainment expenses are reimbursable. These items will include business meals with customers, in-house business meetings, and for prospective employees being interviewed for job openings. To be reimbursable, the expense report must detail the following: Date of the entertainment Type of entertainment Place Name of guests entertained Business purpose of the entertainment Pre-approval by a VP or higher, if the amount is higher than $100.00 Corporate Page 7
SERVICES Business Expenses Business expenses, including faxes, photocopies, Internet charges, data ports and business telephone calls incurred while on travel status can be reimbursed. Original itemized receipts are required. Telecommunication Charge Costs incurred by employees for telecommunication charges in accordance with acceptable business purposes are reimbursable. When travelling internationally, it is recommended to use internet instead of phone. When using phone, the total call minutes must be reasonable (i.e., 10 minutes a day). International calls may incur higher charges. Submit an itemized list if $100 is exceeded. TISF reimburses cell phone charges up to $100 a month. Laundry, Dry Cleaning, and Valet Service Reimbursable only if the trip extends beyond five calendar days or suit pressing for trips of three days or more. Movies Movies, either on the airplane or in the hotel room, are not reimbursable. Health Clubs The Company will not pay for hotel health club facility charges. Spouse/Guest/Personal Travel Combined with Business Travel expenses for family members or guests are not reimbursable. However, a guest may share accommodations as long as there is no additional cost to TISF as a result. Miscellaneous Expenses Other reasonable and necessary expenses incurred by employees when traveling on Company business are reimbursable. THESE EXPENSES MUST BE FULL EXPLAINED AND DOCUMENTED WITH DESCRIPTION, DA, AMOUNT, AND A REFERENCE TO THE SALES ORDER FOR WHICH THE EXPENSES WERE NEEDED. Corporate Page 8
NON-REIMBURSABLE EXPENDITURES The Company will audit expense reports for compliance with Company policy and will identify and explain to the employee those expenses that are non-reimbursable. The management group will review disputes over non-reimbursable expenses. The following are examples of non-reimbursable expenses but is not limited to: Expenses that lack required documentation; Expenses that demonstrate no clear business purpose; Expenses that are unreasonable as to the amount; Incremental expenses associated with spouse travel unrelated to business; Expenses not actually incurred; Personal expenses, i.e. amusements, clothing, haircuts, movie rentals, excessive expenses, tobacco, travel risk insurance and alcoholic beverages (other than for entertainment for business purposes); Traffic fines and parking tickets. Commuting between home and the primary work location Corporate Page 9
Receipts requirements are as below. Expense Category Airfare Auto Expenses Car Rental Shuttle & Taxi Mileage- Personal Car Railroad Travel Booking Fees Lodging Meals & Entertainment Travel Meals Breakfast Travel Meals Lunch Travel Meals Dinner Computer Supplies Internet Office Supplies Postage Seminars & Training Telephone Building Maintenance Shop Supplies Sales Demo Expenses Exhibitions/Trade Shows Advertising Sales Literature/Brochures Cash Tips-All Credit Card Late Fees Memberships, Dues, & Subscriptions Personal Expense Miscellaneous-Job Related Parts Job Related Freight Job Related RECEIPTS Receipts Required Cash Expense N N N N Any receipts required expenditure that is not supported by a receipt must be fully explained and is subject to audit approval. Corporate Page 10
PAMENT METHODS AND EXPENSE REPORTING Temporary Cash Advances Temporary cash advances are available, but must be approved by your departmental supervisor. The Company will reimburse employees for expenditures to the extent they exceed the advances; however, the Company requires the return of cash to the extent that expenditures were less than the advance. Each temporary advance and expense relating to the trip must be accounted for completely when the employee returns. NO UNUSED CASH ADVANCES MA BE CARRIED OVER TO A SUBSEQUENT REPORT. To receive a cash advance, the proper area in the expense report for the upcoming paycheck must be filled out properly. Expense Report Processing and Audit Expense reports should be prepared by the employee and submitted to his/her supervisor for approval. The following is a time guideline for completion of expense reports: All expense reports to be approved by the departmental supervisor, along with cash owed to the Company, should be submitted WITHIN ONE MONTH of completion of the trip for audit of compliance with Company Policy. Payment to the Company for any money owed may be made in the form of a personal check or cash. Reimbursement for cash payments will be made to the specified bank account or by company check to the employee. Corporate Page 11
PASSPORT/VISA INFORMATION Obtaining a passport and/or visa may be necessary when traveling on international flights. As the requirements and processing time can vary, it is important that the application be submitted well in advance of travel. Each country has different applications and requires different information. All passports require a photograph as well as most visas. The expense associated with obtaining a visa/passport must be documented on your expense report. Rush fees associated with last minute processing will not be reimbursed, unless the travel was initiated within 30 days prior to departure. FOREIGN CURRENC All expenses must be adjusted to reflect the cost in U.S. dollars and the CONVERSION MUST BE NOTED ON EACH RECEIPT and each day on the expense report in the section provided. The Company will compare the conversion rate used on the employee s expense report with the details supplied by the credit card. Refer to the Internet for a currency conversion website. If an employee charges business expenses on a personal credit card, a copy of the statement showing the conversion rate used, must be submitted with your expense report. MISCELLANEOUS Companion Travel Costs There are times when the employee travels with their companion on a business trip. Even if there is a business requirement pertaining to the companion's travel, all of the companion s costs are personal expenditures. Employees may bring along a companion on a business trip if there is a business purpose or at their discretion. Note: Bringing a companion should not distract from business. All of the companion s incremental costs are personal expenditures and cannot be expensed unless there is a valid business reason for the companion s expenses. Corporate Page 12
APPENDIX EXPENSE REIMBURSEMENT STANDARDS Hotel 3 star hotel in the destination area Meals USA/Mexico Canada UK * Breakfast $10.00 $10.00 $10.00 Lunch $25.00 $25.00 $25.00 Dinner $25.00 $25.00 $25.00 Total $60.00 $60.00 $60.00 Local Working from your home base, where no overnight stay is required. If it is a day business trip and your day starts at 6:00 am or earlier, or ends at 7:00 pm or later, you may be reimbursed for breakfast/dinner, respectively. If you are working out in the field and visiting a local TISF office within 50 miles radius then travel meal reimbursement is not applicable. * Breakfast will be reimbursed only if it is not already included in the hotel rate. If it is included then no breakfast would be reimbursed. The above STANDARDS will be based on actual cost, not per diem. EXPENSE REPORT FORM GUIDELINES Date The date of the expense must be recorded. All expenses that happened on the same date should be recorded consecutively. Each expense should have its own line. Destination Record the place you went for this expense. Corporate Page 13
Mileage If personal car was used, fill out this section to be reimbursed for the mileage used. What you paid for gas should not be recorded. Only the miles traveled between your home and the destination, the office and the destination, and/or back to the office from your destination. If several stops were made, record the total number of miles used for that day. Parking The parking fees paid on this date for this destination should be recorded here. Parking receipts must be attached. Hotel The total hotel expense for this destination should be recorded here. The hotel cost can be placed on date line of the first or last night of the stay. Hotel receipts must be attached. If meals are charged to the hotel room, they must be calculated out of the total and placed in the Meals section. Meals Meals should be recorded here on the date that they were bought. All the meals for each date should be recorded consecutively. Meal receipts must be attached. Entertainment The expenses for entertainment should be recorded here along with a description of the expense in the Purpose/Customer section and the Destination area. Other Expenses This area should be filled out to denote expenses besides parking, hotel stays, and meals. To properly record other miscellaneous expenses, you must first choose a Code from the drop down menu. The codes are detailed at the bottom center of the report sheet right above the signature line. Once a code is selected, select the corresponding description of the code from the drop down menu in the Details area located right beside the Code. Then enter the amount. Codes A. Cabs/Public Transportation-Includes Rental Cars B. Tolls C. Telephone- Phone Bill not to exceed $100-Receipt needed D. Supplies/Postage E. Seminars/Tradeshows F. Airfare G. Customer Supplies/Parts. OTHER- Do not use Purpose/Customer This area needs to be filled out for every expense. This can be the name of the person you met with, the Sales Order for the related work, the event you are at, or reason you are there, etc. For Corporate Page 14
meals please denote if it is breakfast, lunch, dinner, or a snack. If it was a business lunch please put the name of the person/s you treated. Cash Advance This section is to be filled out if you received a cash advance from TISF for any purpose that is stated in the current expense report. This total is deducted from your reimbursement. Transportation Office This section can be filled out IF you recorded your trips between the office and home in the mileage section. It is unnecessary to record your trips between the office and home. This total will be deducted from your reimbursement. Signature and Name of Employee The signature and printed name of the employee submitting the report must be on the document. The current date must be printed next to the name. Receipts A receipt must be given for every expense listed on the report. If the expense for the receipt submitted is not a line item on the expense report, then the receipt will not be counted into the total reimbursement due. If the receipts are smaller than a piece of paper (8 ½ by 11 ), they need to be stapled in consecutive order by date onto a piece of paper (8 ½ by 11 ). Submitting the Expense Report Expense Reports can be submitted by email, mail, or placed in the Accounting Manager s mail box at the office. Expense reports must be submitted monthly. Notice If the Expense Report is improperly filled out or if receipts do not match up to the expenses listed in the report, then the report and the attachments will be sent back to the employee to fix. Corporate Page 15