Corporate Policy Manual Category: Finance Title: Effective Date: September 1, 2008 Policy Number: FI100 Revision Date: December 18, 2012 1.0 PURPOSE To provide guidelines to assist employees in abiding by the company s travel policies, thereby maximizing the control of company expenses; as well as to ensure that travelers are provided with a high level of service while traveling on behalf of the company. 2.0 SCOPE PPS Incorporated and its affiliates CPS, IPS, CPS MedManagement, LLC, CPS MedManagement Puerto Rico, Inc and any other affiliates 3.0 POLICY PPS Incorporated and its affiliates CPS, IPS, CPS MedManagement, LLC, CPS MedManagement Puerto Rico, Inc and any other affiliates (hereinafter known as CPS) will reimburse employees for reasonable business travel expenses incurred while on assignments away from the normal work location. A. CPS employees who incur travel and entertainment expenses shall comply with this policy. B. Employee expense reports must have manager review and approval for reimbursement. C. CPS shall reimburse employees for approved business travel and entertainment expenses, which are received by Accounts Payable within 30 days of the expense date. CPS may not reimburse business travel and/or entertainment expenses that are over 30 days old. Failure to submit expense reports within 30 days may also result in loss of privilege to use the corporate American Express (AMEX) card. D. Employees who submit expenses, which are not in compliance with this policy, shall risk a delay in, partial, or forfeited reimbursement. Cases of significant abuse may result in disciplinary action, up to and including employee termination. E. It is the expectation of CPS that the most cost-effective mode of travel is employed. Expenses unrelated to company business and other unnecessary expenses may be denied reimbursement unless pre-approved. F. Travelers shall always use company preferred vendors where applicable and available. CPS Corporate Policy Manual Policy No. FI100 Effective: Page 1 of 7
4.0 PROCEDURE 4.1 Expense Report Form & Receipt Documentation A. Frequent travelers (more than three times a year) shall authorize detailed electronic receipts, where applicable, for airfare, hotels, car rental, entertainment, and other reimbursable expenses for the purpose of using Concur Travel & Expense system. When e-receipt is not provided by the vendor, fax receipt or attach scanned image of receipt for upload to Concur. The Fax receipt cover page can be printed directly from Concur Expense and should be faxed to 866-428-9026. B. Infrequent expense report filers (three times per year or less) may utilize manual expense reports, by completing the CPS expense report within 1 week of a business trip and attaching an original receipt for all expense items submitted. Employee signature on the hard copy expense report is required. Field employees shall send the completed Travel & Expense Form to their manager for approval. C. A valid receipt must contain: 1. The name of the company or person who provided either the items or service purchased 2. The date of the purchase 3. The amount spent 4. The method of payment 5. Tear-tab receipts, where the employee writes in the amount of the expense, are not acceptable documentation of entertainment expense. 4.2 Corporate Charge Card A. CPS utilizes Corporate American Express (AMEX) card as the method of payment for all business related travel and entertainment expenses. B. Employees shall always use the AMEX where accepted to pay for all business expenses including, but not limited to airfare, car rental, hotels, entertainment, meals and other reimbursable expenses. C. Employees shall not use the corporate card for personal expenses.. D. The cardholder shall be responsible for the validity of all charges.
4.3 Air Travel A. Ticket Purchase: Travel arrangements shall be made via the Company on-line-booking travel tool, Cliqbook. Travel requests with less than 24 hours notice; made on a Friday for travel prior to Monday; or not available to be booked via Cliqbook, shall be made directly through CPS Travel Department. 1. Business air travelers shall use company preferred airlines. In the absence of a preferred vendor, travelers shall use carriers that provide the lowest logical fare. The lowest logical fare will be defined as the lowest fare within 2 hours of the requested flight departure or arrival time; with no more than 1 connection. 2. Nonstop flights may be chosen over lower fare connecting flights when the additional charge is no more than $50.00 or with manager approval. 3. Employees shall be flexible and consider alternate airports, carrier selection, and fare differentials when planning their travel itinerary. 4. The Regional VP or Divisional VP must approve airline travel booked less than 14 days prior to the actual date of travel or tickets with air fare greater than $600.00. 5. Company paid first class or business class travel for travel is not permitted. 6. Employees shall charge airline tickets to the AMEX card whenever possible. 7. CPS employees shall not use the method of back-to-back ticketing 8. Travelers must cancel any unused reservations prior to flight departure to avoid the potential loss of the ticket value that results on some penalty fares when a passenger no-shows the flights. Where applicable, previous unused tickets should be refunded. Nonrefundable tickets should be utilized at the earliest possible occasion towards the purchase of a new ticket B. CPS shall not reimburse employees for airline club memberships without prior approval of the SVP C. CPS shall provide personal accident insurance coverage for employee business travel. Additional coverage purchased by the employee shall be the responsibility of the employee. D. Frequent Flyer Miles: 1. Employees may use accumulated frequent flyer miles for personal use, including class upgrade provided there is no cost to CPS; however, travelers shall not specify particular airlines to accumulate frequent flyer mileage, benefits or status upgrade. E. CPS shall not reimburse for airfone use unless approved by the Regional VP or CPS Corporate Policy Manual Policy No. FI100 Effective: Page 3 of 7
Divisional VP. Policy FI100 F. Spousal travel that is submitted as a business expense requires prior written approval of the Senior VP. 4.4 Hotel Arrangements A. CPS shall pay actual room costs, which have a supporting hotel bill for each day that lodging away from home is necessary for business reasons. B. The guideline for lodging expense in cities is $110 per night (tax not inclusive) or reasonably equivalent to the cost for the local Holiday Inn. Room rates beyond the specified range require the prior approval of the Regional VP or Divisional VP. C. Cancellations 4.5 Rental Cars 1. Rooms shall be guaranteed for late arrival and employees must cancel the room reservation per the hotel policy, to avoid a "no show" charge, which is not reimbursable to the employee. 2. Employees shall request and retain a "cancellation number" as documentation of the transaction. A. Rental Car Use 1. Rental cars shall be used only when other means of transportation are unavailable, more costly, or impractical and never on the sole basis of personal convenience. 2. Preferred Vendors will be utilized where possible. Intermediate / midsize cars or smaller should be rented. The use of full-size cars is acceptable: 1.) only when two or more employees are traveling together and sharing the rental car 2.) When it is necessary to have a larger vehicle for carrying clients or equipment. 3.) Upgrade coupons or benefits are utilized without cost to CPS. 4.) With manager approval. 3. Employees shall use the company issued AMEX card for payment. 4. CPS will not reimburse electronic location devices, like the Neverlost system from Hertz, without the specific approval of the Regional VP or Divisional VP. B. Car Rental Insurance 1. Employees shall not accept loss/damage or liability coverage for rentals within the United States when using the company issued AMEX for payment 2. Travelers outside of the United States shall accept loss/damage and liability coverage. Cars rented in Puerto Rico shall accept loss / damage and liability insurance.
C. Accident Reporting 1. Employees who are involved in an accident while using a rental car for company business shall obtain a police report when one is filed. 2. The employee shall complete the accident report from the car rental company attached to the rental agreement. D 3. The employee shall call the car rental vendor to replace the car if necessary, or for further assistance if needed. 4. Contact the Human Resources department at CPS to report the accident. immediately. Personal Loss 1. For personal loss due to theft involving a rental car CPS will reimburse employees for reasonable personal losses stemming from theft at 50% of the personal insurance deductible or up to $500, whichever is less. 2. CPS will not reimburse for losses stemming from negligence. 3. CPS will reimburse only for lost items related to CPS business or to travel and only while traveling for company business. E. Rental Car Return 1. Employees will refuel rental cars, if at all possible, prior to returning them to the vendor, which saves as much as 50% of the gasoline cost. 2. If the employee is unable to refuel the rental car prior to returning it, an explanation must be submitted with the expense report. 4.6 Personal Car and Mileage Reimbursement A. Employee Reimbursement 1. CPS shall reimburse the employee for all miles driven that are over and above the employee s usual commute in accordance with the current CPS approved rate. 2. Usual commute is defined by CPS as 30 miles, one way. Mileage from a home office to a facility will be reimbursed for any miles over 30 miles. 3. Parking and tolls for authorized business use of personal cars. 4. The mileage allowance shall cover all auto costs (e.g., gasoline, repairs, insurance, etc.) other than parking and tolls. 5. When parking a personal vehicle at the airport for business purposes, the employee shall make every effort to use the lowest parking rates possible. The use of hourly parking rates is not permissible. B. Personal Property Claims 1. Employees who drive their personal vehicle for business travel must be CPS Corporate Policy Manual Policy No. FI100 Effective: Page 5 of 7
appropriately insured and must comply with all applicable vehicle codes and laws in the jurisdiction in which the vehicle will be operated. 2. Employees who use their personal car for company business shall be responsible for damage claims related to an automobile accident. 3. Employees shall report personal injury from such an accident to Human Resources to file Workman s Compensation if the employee was traveling on company business. a. CPS s contingent (legal) liability in connection with the operation by employees of their own or hired automobiles on company business is not covered by CPS insurance. 4.7 Traffic Tickets / Towing Charges A. CPS shall not reimburse employees for traffic tickets, parking citations, towing charges and other citations incurred while driving on CPS business. 4.8 Taxi and Other Out of Town Transportation A. The cost of a taxi to and from places of business, hotels, or airports in connection with business activities is reimbursable. B. The use of taxis is permissible only when more economical services (hotel vans, shuttles, etc.) are not available. C. Limosine use is not authorized unless the use of a taxi would not be less. D. Employees shall submit receipts for all transportation expenses 4.9 Meals A. CPS shall reimburse for actual meal expense (breakfast, lunch and dinner) not to exceed the following: 1. Breakfast, lunch and dinner should not exceed $40/day 2. Plus up to a 15% gratuity B. For Pharmacy Solutions Team Only - CPS shall reimburse employees for meal expenses (breakfast, lunch, and dinner) based on IRS guidelines for M&IE Per Diem rates for the city nearest to the travel site. 1. Food service tips are considered included in the daily Per Diem rate and will not be reimbursed. 4.10 Entertainment Expenses A. Entertainment is permissible for clients, not for other CPS employees. B. Entertainment expenses must be pre-approved by the Regional VP or Divisional VP. C. In compliance with Internal Revenue Service regulations, the following information must be included on an employee's expense report to support all business entertainment expenses:
1. Name and company of all attendees. 2. Name and location of the establishment. 3. Date and amount of the expense. 4. Specific business topic(s) discussed. 4.11 Telephone & Cellular Phone Expenses A. CPS shall issue cellular phones to eligible employees. CPS shall not reimburse employees for personal cell phones. B. CPS shall provide travelers, when requested, with a telephone calling card for business calls, including from hotels. C. CPS employees will be reimbursed for hotel telephone toll fees if no other mode of communication is available in the town (e.g. no cellular coverage) 4.12 Other Reimbursable Expenses A. Laundry Expenses: 1. CPS shall pay for reasonable laundry or dry cleaning charges for employees who travel for more than 5 consecutive nights. B. Tips: CPS shall reimburse reasonable tipping and gratuities: 1. $1 per bag assistance / handling. 2. Up to 15% of the total cab fare. 3. $2 per day for maid service. 4. Up to 15% of the cost for meals C. In-Town Expenses: 1. Employees shall not expense mileage for normal commutes to their office or temporary work place. D. Office Supplies: 1. Office supplies may be reimbursed with prior approval of the Regional VP or Divisional VP. E. Employees should make every effort to utilize carry-on baggage to avoid airline s checked baggage fees. When necessary CPS will reimburse for one checked bag. 4.13 Other Non-Reimbursable Expenses: A. Miscellaneous: 1. Alcohol, including beer or wine. CPS Corporate Policy Manual Policy No. FI100 Effective: Page 7 of 7
2. Barbers/hairdressers. 3. Car washes 4. Employee clothing. 5. Medical expenses including prescriptions. 6. Fees such as airline clubs, baby sitters, health clubs, frequent flyer fees, etc. 7. Hotel "no show" bills unless substantiated that it was beyond employee control. 8. Insurance for airline and/or travel. 9. Kennel costs for pets. 10. Laundry expenses for business trips not exceeding 5 nights. 11. Miscellaneous items such as suitcases, fountain pens, automatic pencils, desk lamps, pocket calculators, etc. 12. Movie rental charges. 13. Personal property insurance premiums or annual charge card fees and/or finance charges. 14. Toiletry articles such as toothbrush/paste and deodorant. 15. Vehicle towing. 16. Traffic and parking violations. 17. Magazines, newspaper, and other publication unless related to company business and only with the prior approval of the Senior VP 18. Home offices and equipment, services and supplies pertaining to home offices without prior authorization of the Senior VP. B. Continuing Education (CE): 1. CPS allows full-time pharmacists up to $300.00 yearly, with prior approval. 2. Other expenses related to education may be reimbursed with prior approval of the Regional VP or Divisional VP. Disclaimer: This policy is intended for Comprehensive Pharmacy Services Staff. Policies are approved by the CPS Executive Team. The information supplied herein may not be provided to parties outside of CPS without the prior written consent of a CPS Senior Management Member.