Effective Date: March 1, 2016 /
Approvals
JBPCO VP/Corporate Controller
JBPCO VP Supply Chain
BU Human Resources Leads / Distribution: JBPCO and All BU’s / Supersedes: Any and All Policies related to T & E before the above date for all JBPCO companies.
1.0 Purpose
The purpose of this policy is to explain fully the Company’s policies with respect to the reimbursement of expenses incurred in the conduct of company business and to establish procedures to ensure the accurate reporting of such expenses.
2.0 Policy
It is policy to reimburse team members for actual expenses incurred by them on behalf of J. B. Poindexter & Co., Inc., its associates and affiliate companies (“JBPCO”) while engaged in authorized company business, unless forbidden by this policy or applicable laws. Expenses must be normal and reasonable in the circumstances and each team member must use his or her best efforts to minimize company expenses and use discretion and good judgment in incurring such expenses. This policy supersedes all previous policies issued by the Company.
Team members will be reimbursed for actual allowable expenses upon submission of timely proper and completed approved expense reports.
3.0 Scope
The policy applies to all team members of JBPCO who are authorized to incur travel, entertainment and business expenses.
4.0 General
4.1 All travel will be supported utilizing company issued bank cards to maximize JBPCO’s rebate benefit for the Company.
4.2 Travelers are required to use the Company’s preferred suppliers.
4.3 All airline, lodging and car rental arrangements for business travel will be made through the Company’s chosen travel agency utilizing Concur, if available.
5.0 The following are covered expenses for travel and entertainment:
5.1 Airline, rail, or bus fares
5.1.1 Airfare - Employees are expected to book the lowest logical airfare (LLA) base on the following parameters:
· Routing requires no more than one stop with one change of planes for each way of a round trip and the routing does NOT increase the one-way total elapsed trip time (origin to destination) by more than two (2) hours.
· Supplier decisions should be based on “lowest available” or “lowest applicable” and not on the traveler’s personal airline preference.
· Travelers should first consider purchasing a non-refundable airfare if the trip dates are fixed and there is a low probability of a change in plans; this may save 30-60% off a refundable fare. Frequent travelers should always consider non-refundable fares when there is a high probability the unused funds (credit) will be used for travel within the expiration period.
· The use of alternate airports is encouraged if it makes economic sense in regards to the individuals’ fare cost, time, mileage, parking and other considerations.
5.1.2 All airline, rail or bus reservations will be made as far in advance of travel as possible in order to obtain lowest logical air/rail or bus fare. By booking in advance, the Company can save 40-60% off of fees. This is the single greatest opportunity to save on travel.
5.1.3 Air travel will be by coach or economy class. All travel must be booked at least two (2) weeks in advance, unless there’s a business requirement and two (2) weeks’ advance booking cannot be made. Functional department head approval is required when advance booking is not feasible.
5.1.4 Purchase of travel insurance by team members will not be covered.
5.1.5 The cost of tickets purchased for individuals outside of the Company, other than prospective team members traveling to an interview, will not be covered without approval by the respective BU President or JBPCO Corporate Officer.
5.1.6 The cost of airline internet service will not be covered for flights of less than 3 hours duration.
5.1.7 The cost of seat upgrade will not be covered without prior approval by the respective BU President or JBPCO Corporate Officer.
5.1.8 Where feasible, when multiple executives are flying to the same destination, then they should try and utilize different flights to help prevent a catastrophic loss in any business in the unfortunate event of an accident.
5.2 Ground Transportation
Amounts spent on ground transportation when a team member is engaged in authorized company business are covered expenses. Team members should use the least expensive transportation whenever practical. Airport bus or shuttle services are to be utilized rather than taxis or rental cars, whenever practical. Ride sharing services such as Uber, Lyft, etc. is approved for individuals in the United States. Seat belts should be worn in all rows of vehicles. Circumstances such as the number of persons in a party or the urgency of arrival at the team member’s destination should be evaluated in choosing the appropriate transportation. Travel of 200 miles or less each way should be made by automobile, and when available a company-owned vehicle should be used.
Although a list of activities that could be considered distractions while driving a vehicle would be too numerous to mention, the Company prohibits the use of the following devices by the driver while the vehicle is in motion:
• Texting with a cell phone or PDA
• Cell phone use, unless coupled to a hands-free device
• Televisions and CD players
• Use of stereo/radio headphones
• Electronic games
• Any device in violation of any local ordinance, state or federal statute
Cell phone conversations should be limited to conversations related only to the delivery task. While animated and argumentative conversations are sometimes unavoidable, they are to be delayed until the vehicle can be parked in a safe and legal parking area. The Company also prohibits driving while impaired mentally or physically, including driving while in a fatigued state. When fatigued, your ability to operate the vehicle safely is significantly reduced. If you find yourself in any of these conditions, please find the next safe place to legally park and get some rest.
5.3 Auto Rental
5.3.1 An automobile with the preferred vendor at the best possible rate may be rented when public transportation is not practical.
5.3.2 If there is more than one person traveling in the same area, team members are required to share the same rental car.
5.3.3 Compact or intermediate sized automobiles should be selected, except a full-sized automobile is permitted when personnel are entertaining business clients or prospects, when team members are carrying materials which require a full-sized car, or when a number of team members are traveling together.
5.3.4 Insurance offered by the rental company should be declined when renting in the United States and Canada. JBPCO is self-insured for collision damage. Collision insurance should be accepted when renting outside of the United States and Canada.
5.3.5 When renting an automobile outside the United States, Canada or Mexico, you must make sure your driver’s license is valid for the country in which you will be using the vehicle prior to renting the vehicle.
5.3.6 If the automobile has E-Z Pass, make sure the transponder is turned on and functional.
5.3.7 Make sure to accurately fill the gas tank of the rental car to where the tank was filled when you picked up the car upon returning it to the rental facility.
5.3.8 When travelling outside of North America, car rentals must be approved by a BU president or a corporate officer of JBPCO before booking. The contract vendor rates for international rentals does not include damage waiver (CDW) and liability (LDW) insurance.
5.4 Automobile Expenses
5.4.1 Team members are only to use their personal vehicle when a company vehicle is unavailable or the anticipated cost is less than a rental vehicle. Only then will mileage be reimbursed.
5.4.2 Team members are only authorized to use his/her automobile if they have both a valid driver’s license and current and minimum required comprehensive auto insurance, including liability as required by the state in which they reside. If all of these criteria are not met, the team member is not authorized to drive for the Company.
5.4.3 When a team member uses his/her personal automobile on approved company business, the Company will reimburse no more than the allowable IRS deductible amount per mile. The Company will also reimburse all actual auto tolls and parking fees. Receipts are required for all expenses.
5.4.4 Mileage from team member’s home to regular assigned work location is not a reimbursable expense. However, if the team member goes directly from home to another work assignment other than the regular work location, and the distance to the work assignment is greater than the distance to the regular work location, the team member can expense the difference in mileage.
5.4.5 In order to receive reimbursement for mileage, the team member must complete an expense report specifying purpose of trip, point of origin, destination and time of trip. A copy of the directions from origin to destination is recommended to support the reimbursement for mileage.
5.4.6 The team member assumes the responsibility for all parking and traffic fines.
5.5 Lodging
5.5.1 All company authorized accommodations must meet industry accepted business travel standards with reference to safety, comfort, convenience and cost. Preferred accommodations are listed in order of preference in Concur, and team members will utilize preferred accommodations for travel. All hotels should be booked on the JBPCO Concur web site to enable JBPCO to consolidate and leverage spend as well as contact travelers quickly in the event of an emergency. Exceptions for exhibitions and shows are acceptable if prior approval is received from the BU president or a corporate officer of JBPCO before time of booking.
5.5.2 The team member is responsible for confirming that the rate being charged is also the rate listed on the travel itinerary. Any discrepancies should be immediately reported to the JBPCO VP of Supply Chain.
5.5.3 All hotel reservations will be guaranteed on the company bank card. It is the team member's responsibility to cancel hotel reservations within the hotel cancellation policy time frame. This can be done by contacting the hotel directly. You must obtain a cancellation number when canceling a hotel reservation. The Company will not reimburse hotel "no-show" fees, unless approved by a department head.
5.5.4 Reimbursement for the use of higher priced rooms or suites is limited to those situations where it is necessary to hold business conferences or meetings in the hotel room or suite. Prior approval for higher priced rooms or suites is required from the BU president or a corporate officer of JBPCO.
5.5.5 Team members who expect to be away from their assigned offices for extended periods of time should arrange lodging at reduced weekly or monthly rates, if possible.
5.5.6 All reimbursable lodging expenses must be supported by a receipt detailing the charges. In cases where lodging includes meals, laundry (reference 5.7.2), phone calls, etc. that have been incurred, all amounts except meals and entertainment should be shown under the category on the applicable expense report form. Meals and entertainment should be shown separately. These expenses must be business related.
5.5.7 If two or more team members are traveling together, each team member should pay for and turn in their expense reimbursement.
5.5.8 Whenever practical, team members should utilize any corporate discounts available to the Company or via Concur.
5.5.9 The cost of personal entertainment such as, but not limited to movie, amusement parks, gym fees, etc., will not be covered.
5.6 Meals
5.6.1 Travel meals are defined as any meals consumed by the team member while the team member is traveling on an out-of-town business trip. Reimbursement of travel meals will commence from the time you leave home until you return. Team members will be reimbursed for travel meals provided they are documented and reasonably priced. In general, travel meals should be taken at the most economical restaurant fitting the occasion.
5.6.2 Business meals are defined as a meal consumed by a team member and other invited attendees when related business is discussed during the meal. Examples of business meals include meeting with the Business Unit President, Senior Vice President and others at which a bona fide business discussion takes place.
5.6.3 The frequency and number of business meals should be limited. The number of persons comprising the group involved in a business meal should if possible be limited to the host, guest and two to three team members.
5.6.4 Team member meals with other team members are not a reimbursable expense unless a business purpose exists. The business purpose must be stated and attendees identified. Routine meals and snacks with team members are limited to special business occasions.
5.6.5 A business meal where there is no significant and necessary business purpose is not reimbursable.
5.6.6 When more than one team member is present, the most senior executive or management member of the group must pay the expense and submit a report for reimbursement.
5.6.7 Receipts for all meals should be obtained as a matter of proper business practice. All receipts for any meal expenditure are required. The maximum per diem per individual expenditure for meals is $75. The business purpose of all meals must be fully explained on the team member’s expense report.