FREESTORE FOODBANK TRAVEL AND BUSINESS EXPENSE POLICY

FREESTORE FOODBANK TRAVEL AND BUSINESS EXPENSE POLICY POLICY OVERVIEW Purpose The Travel and Business Expense Policy has been developed to enable individuals to make substantial contributions to the profitability of their departments and the Freestore Foodbank ( the Company ). The Travel and Business Expense Policy establishes equitable standards and effective procedures to reduce cost and to ensure consistent and fair treatment of all individuals who travel on business on behalf of the Company. It also provides direction and guidelines, which govern the scope of reimbursable expenses in connection with travel, entertainment, and other business related expenses and the reporting and accountability associated with such expenditures. Objectives 1. To ensure all those traveling on behalf of the Company and being reimbursed for travel expenses by the Company and those approving such travel have a clear and consistent understanding of the policies and procedures for arranging, approving, vouching and reimbursement of business travel, entertainment, and other business expenses 2. To provide travelers with a reasonable level of service and comfort at the lowest possible cost 3. Improve controls and minimize expenses Scope of Policy This policy applies to all employees, board members, contractors, etc of the Company and all divisions and subsidiaries thereof. Policy Compliance Responsibilities The Company intends to reimburse employees for all reasonable expenses, which they incur on behalf of the Company in carrying out the assigned duties of their positions. Reimbursement of business expenses is not, nor should employees consider it to be, either direct or indirect compensation of any sort. The Company assumes no obligation to reimburse employees for expenses not in compliance with this policy. Employees are responsible for: 1. Ensuring the accuracy and completeness of all expense reports 2. Exercising proper business judgment regarding travel and entertainment expenses 3. Ensuring actual business travel expenses have been reimbursed 4. Paying excess cost incurred beyond those considered reasonable under the guidelines of this policy, unless management determines that the circumstances surrounding the excess cost were outside of the employee s control 5. Ensuring expense reports for travel are submitted in a timely manner. Managers are accountable for: 1. Monitoring the individual travel, entertainment, and other business related spending of employees in their department 2. Reviewing and approving expense reports within five business days of receipt to ensure expenses are proper, reasonable, and supported by appropriate documentation 3. Rejecting any non-reimbursable or inappropriate expenses outlined by this policy 4. Knowing and adhering to the policies and ensuring employees in their department understand and comply with these policies. Revised 12/18/2015 Page 1

GROUND TRANSPORTATION Local Travel Mileage Reimbursement Employees may need to use their personal vehicle from time to time, especially if a company vehicle is not available and if it is less expensive than renting a car. 1. When driving a personal vehicle, drivers are reimbursed for miles traveled for business purposes. The mileage reimbursement rate is calculated on a yearly basis by the federal government and covers all transportation and operating costs of the vehicle, including gasoline and insurance. 2. Travel from employee s residence to work and from work to employee s residence, even if the employee is called to come to work on a non-scheduled work day, is not eligible for mileage reimbursement. 3. Employees are not reimbursed for travel from their residence to their first place of business or from their last place of business to their residence if the first place of business is within 25 miles of employee s normal work location. Examples: a. Employee is out-of-office for the day on business and travels to and from the business location which is less than 25 miles from their normal work location. No miles reimbursed. b. Same as scenario A above but business is more than 25 miles from normal work location. Miles reimbursed to and from normal work location to meeting location. c. Employee travels to their normal work location at start of day, then to off-site meeting, and then home. Miles reimbursed one-way from their normal work location to off-site meeting. d. Employee travels to normal work location at start of day, then to off-site meeting, then back to normal work location. Miles reimbursed to and from meeting location. 4. Additional allowable expenses include turnpike tolls, bridge tolls and reasonable parking fees. 5. A driver will not be reimbursed for parking tickets, fines, moving violations or vehicle towing charges. No reimbursement will be made for vehicle repair costs regardless of whether it results from the traveler's acts or acts of others. 6. Employees utilizing private vehicles for company business are responsible for providing primary vehicle insurance coverage. Employees will be asked to keep their insurance up to date as a responsibility of their job requirements. Insurance coverage will be checked periodically by Human Resources. The Company will not be responsible for damage of any kind to the employee s vehicle. 7. Reimbursement between sites- Maximum mileage reimbursement between sites are as follows: a. Liberty St./Central Parkway and Tennessee Ave. 8 miles b. Central Parkway and Liberty St. No reimbursement unless it is a recurring trip made more than two times per week 1 mile c. Tennessee Ave. and Giving Fields 21 miles d. Liberty St./Central Parkway and Giving Fields 14 miles e. Liberty St/Central Parkway and NKY Warehouse 10 miles f. Tennessee Ave and NKY Warehouse 17 miles g. Giving Fields and NKY Warehouse 8 miles Out-of-Town Travel Employees are expected to use the most economical mode of transportation appropriate under the circumstances. 1. Employees traveling 250 miles or more roundtrip must rent a car if less expensive than mileage reimbursement. 2. The standard class of rental is an intermediate/mid-size vehicle. Rental of full size vehicles or SUVs should only be used to accommodate three or more people or when the intended use requires it (i.e. promotional materials, equipment, etc.). Revised 12/18/2015 Page 2

3. Gasoline for rental v ehicles is reimbursable and it is requested to purchase this outside of the rental car agency. Receipts are required for gasoline to be submitted along with your rental car documents. 4. Employees are personally liable for fines and penalties imposed for moving or parking law violations while operating rented vehicles. These fines and penalties are not reimbursable. 5. Insurance - When picking up auto rentals, employees should always refuse insurance coverage. Proper coverage is provided under the Company s policy. 6. The most economical mode of transportation is expected to be used to and from Feeding America conferences/trainings, etc. If more than one employee is attending the event, the employees must car pool in order to get fully reimbursed. Any other charges resulting from not car-pooling will not be reimbursed. If nonreimbursable charges are charged to a company credit card, the employee will be required to reimburse the Freestore Foodbank by check or through payroll deduction. Taxi fare in Chicago is reimbursable for business reasons only. 7. Accidents - The reporting of all damage to rental vehicles is required regardless of whether other vehicles are involved. Collisions with animals, fence posts, gates, debris from highway, vandalism, etc. will require immediate notification as described below. All vehicle accidents (leased, owned or rented) require immediate reporting to the immediate Supervisor/Manager and the CFO of the Company. If the accident involves other vehicles, be sure to obtain: Drivers/owner(s) name, license plate numbers, insurance carrier(s), drivers license numbers, names and addresses of witnesses. All incidents involving other vehicles and/or other drivers or pedestrians, must be reported within 24 hours even though no visible damage or injuries may not be evident. AIR TRAVEL Air travel arrangements should be made online by the employee via a travel website such as Kayak.com, Expedia.com or directly with the airline. Employees are expected to: 1. Purchase tickets at least 21 days in advance when practical 2. Accept the lowest available airfare within a $100 range, including: promotional fares, nonrefundable and other reduced fare tickets. 3. Take flights from and into alternative airports when the savings is greater than $200 and travel time is not extended by more than two hours 4. Document expenses with a printout of itinerary with purchase price and confirmation number Airfare Class All employees must fly coach for all travel on behalf of company business. Airline Upgrades Upgrades at the expense of the company are NOT permitted; however, upgrades are allowed at the traveler s personal expense and are the sole responsibility of the traveler. Excess Baggage Most airlines charge for checked bags. Employees are encouraged to not check a bag but if necessary, employees are allowed to check one bag under 50 pounds and get reimbursed. Frequent Flyer and Other Benefits Any discount/frequent flyer coupons accumulated by an employee on business travel, will remain the property of the employee. Employees are not to arrange a more expensive flight to accumulate points. Revised 12/18/2015 Page 3

LODGING Lodging expenses will be allowed for individuals when they are on company business at a distance from their usual place of work and a return home would be impossible, impractical, or not cost effective. The zero balance hotel bill showing an accepted form of payment is required documentation for reimbursement of lodging expenses or for charges to a corporate credit card. Hotel Selection All hotel reservations must be made by the employee or their manager. Employees should stay at good quality, and reasonably priced hotels unless a specific hotel is required for a conference or seminar. Online tools such as Expedia.com or Kayak.com should be utilized to find the most reasonable priced hotel. Any hotel priced over $200 per night needs approval from their manager. Cancellations Hotel reservations are generally guaranteed for late arrival. It is the employee s responsibility to cancel hotel reservations directly with the hotel, noting the cancellation number. Hotel cancellations should be done as soon as possible. No Show bills will not be reimbursed. Charges Lodging charges should be billed to the employee s personal credit card or corporate credit card and reported on an expense report form. The zero balance hotel bill showing an accepted form of payment is required documentation for reimbursement of lodging charges. Expenses incurred for incidentals (meals, room service, phone, etc.) must be itemized in the appropriate section of the expense report and noted on the bill. EMPLOYEE MEALS/ BUSINESS MEALS/ ENTERTAINMENT Employee meals are defined as meal expenses incurred by the traveler when dining alone, or with another employee, on an out-of-town business trip (more than 25 miles from home office). If a meal is provided during a conference or seminar as part of its registration cost or if hotel includes a free meal, an employee will not get reimbursed for that meal if the employee chooses to eat elsewhere. All employees are required to submit itemized receipts for all meals. Employee Meals The maximum daily meal expense for breakfast, lunch and dinner, including tips (not to exceed 20%), should not exceed the amount per the below schedule. All itemized receipts must be attached to the expense report. Breakfast- $10 Lunch $20 Dinner - $30 Example: Employee attends conference where breakfast and lunch are included as part of the conference. Employee spends $50 for dinner. Reimbursement = $30 since the limit for dinner is $30. Alcohol will not be reimbursed. Business Meals The Company will reimburse employees for the reasonable cost of business meals when they are directly related to or associated with the active conduct of business. The check must be paid and reported by the senior ranking member of the group, using the Expense Report Form to record the necessary information for IRS compliance. Please refer to the IRS Requirements section for the proper documentation needed for reimbursement. The actual cost of offsite staff lunches or dinners may be reimbursed provided there is a definite business reason and approval of the dept. VP. Business meal expenses require an itemized receipt and credit card receipt regardless of the amount. Revised 12/18/2015 Page 4

Entertainment A business discussion must take place immediately before, during, or immediately after the activity. The employee and business customer must attend entertainment activities together. Best business judgment must be exercised to be reimbursed. The check must be paid and reported by the senior ranking member of the group, using the Expense Report Form to record the necessary information for IRS compliance. Please refer to the IRS Requirements section for the proper documentation needed for reimbursement. Entertainment expenses require an itemized receipt regardless of the amount. IRS Requirements To be in compliance with IRS regulations, the following information must be included on the expense reports as support for all business meals and entertainment expenses: 1. Name, title and company of all attendees 2. Name and location of establishment where event took place 3. Amount and date of expense 4. Specific business topic discussed SPOUSE/ COMPANION TRAVEL The company will not reimburse travel and entertainment expenses incurred by a spouse or other individual accompanying an employee on business unless: There is a bona fide business purpose for taking the spouse or other individual; The expense incurred would otherwise be reimbursable. Approval is required by the CFO stating the circumstances and specific business necessity of the spouse/companion s presence. The original approval must be attached to the expense report. COMBINED BUSINESS AND PERSONAL TRAVEL Combined business and personal travel is acceptable when employees pay the incremental cost. Business trips should not be planned solely for the purpose of facilitating personal travel. Employees are responsible for fully documenting the allocation between personal and business expenses. If travel is primarily for personal purpose and business objectives are accomplished, employees may be reimbursed only for expenses directly attributable to business. Basic transportation, lodging and other costs are not pro-ratable or reimbursable. INCIDENTALS Tips Tips to porters, skycaps, bellhops and service personnel are reimbursable provided the tips are reasonable. Standard tip is $1 per bag. Waiter tips should not exceed 20% of the check and should be included with the meal charge on the expense report. Parking/Tolls The costs of parking fees incurred on company business are reimbursable. Acceptable parking charges include fees charged at hotels, offices visited, and airport parking lots. Revised 12/18/2015 Page 5

EXPENSE REPORTING PROCESS Cash and/or Personal Credit Card Expense Reports Expenses must be submitted for reimbursement within sixty (60) days of the date in which the expense was incurred. All reported expenses must be supported by itemized receipts and must be for valid business related expenses. Payment will be remitted directly to the employee via payroll. After review and signature of your manager, forward all expense reports to accounting. Managers are responsible for reviewing the expense reports in depth prior to approving them. All reports with math errors, or proper supporting documentation, will be returned to the employee. The Accounting Department will only be responsible for correcting general ledger coding. Expense reports without receipts, proper math calculations, and other mistakes will be returned unprocessed to the employee. The Accounting Department will only process payment of expense checks for expense reports free of all errors and approved by the Manager. Receipts Required All expense reports must be supported by receipt requirements as outlined in the Travel and Business Expense Policy. Employees should submit all original receipts in the event they are needed for IRS documentation. A full explanation is needed for missing receipts. Expensing Meals by Category Each meal (breakfast, lunch, dinner) must be recorded separately on the expense report. IRS Requirements for Business Meals and Entertainment Name, title, and company of all attendees must be included on all expense reports as support for all business meals and entertainment expenses. Fraudulent Reporting The filing of an expense report containing fraudulent expense data shall be cause for immediate dismissal from the Company. NON-REIMBURSABLE EXPENSES Airline Clubs Memberships to private airline clubs (i.e. Crown Room, Red Carpet or Admiral s Club). Personal entertainment or service, ( i e - movies, mini-bar refreshments, city tours, sport events, etc) Accidents, repairs, maintenance and insurance on personal cars. Air Phone, Rental Car Phone, and Rail Phone. Hotel No Show bills. It is the traveler s responsibility to cancel hotel reservations directly with the hotel Fines/penalties for parking/traffic violations when using a personal/company car for business travel Family expenses on business trips. Theft or loss of personal funds or belongings. In room movies and airline headset rental fees. Personal toiletries, clothing (i.e. socks, pantyhose), gum, candy, magazine, books, alcohol Transportation from home to the office where the employee is based or vice-versa. First Class flights. For this policy to operate successfully, it is essential that all persons who submit or approve expense reports conscientiously follow the outlined policy. Revised 12/18/2015 Page 6