Global Travel, Entertainment & Business-Related Expense Policy

Transcription

1 Global Travel, Entertainment & Business-Related Expense Policy JUNE 2015

2 EXPENSE POLICY Purpose... 3 Exceptions... 3 Objectives... 3 Safety... 3 Responsibility and Expectations... 4 Internal Audit... 4 PAYMENT AND EXPENSE REPORTING... 4 Corporate Card... 4 Unavoidable Use of the Corporate Card... 5 Cash Advances... 5 Expense Reporting and Reimbursement... 5 Receipts... 6 Expense Payment Responsibility... 7 Limited Supervisor Discretion... 7 DESIGNATED REGIONAL TRAVEL PROVIDERS... 7 Employee Profiles 7 Class of Service... 7 Lowest Logical Airfare... 8 Cancellations/Unused Tickets... 8 Insurance... 8 Frequent User Programs... 8 Travel Clubs... 8 Personal Travel Considerations... 8 Fare Share Travel Option... 9 GROUND TRANSPORTATION... 9 Automobile Rentals... 9 Personal Car Use... 9 Rail and Ferry Transportation LODGING MEALS AND ENTERTAINMENT Personal Meals and Entertainment Business Meals and Entertainment Tipping TELECOMMUNICATION AND MOBILE DEVICE CHARGES MISCELLANEOUS INCIDENTAL EXPENSES NON-REIMBURSABLE MISCELLANEOUS EXPENSES June

3 GLOBAL TRAVEL, ENTERTAINMENT & BUSINESS-RELATED EXPENSE POLICY Purpose This policy covers the reimbursement of expenses typically incurred during travel, entertainment, and other business related activities when conducting Company business. This Policy applies to all Huntsman employees. Exceptions Generally, any reimbursement an employee receives that is subject to withholding or payroll taxes is not covered by this Policy. Objectives The objectives of this Policy are to: Provide our employee business travelers with a safe and reasonable level of service and comfort at the lowest possible cost. Ensure all employees have a clear and consistent understanding of expectations and procedures when incurring travel, entertainment, and business-related expenses and their reimbursement, consistent with the established Business Conduct Guidelines and Conflict of Interest Policy and any other company policies. Maximize the Company s ability to negotiate discounted rates with preferred suppliers and ensure, where possible, that all rates are competitive. Safety The health and safety of every Company employee is of paramount importance and every employee is expected to conduct themselves in a manner that is consistent with Huntsman s health and safety principals while they are engaged in work related travel or entertainment activities. Nothing we do is worth getting hurt for. In support of employee safety, the Company strives to contract only with safe and reputable companies. This is particularly paramount in the airline, hotel, and car rental industries. The Company has and will continue to establish relationships with companies that have proven safety records and high customer service ratings. The Company has partnered with Europ Assistance to provide assistance for employees when they are traveling on Company business. More information can be found on the dedicated travel-related web page on the Huntsman s Corporate Intranet (Home>>Shared Services>>Travel). June

4 Responsibility and Expectations Employees and approving supervisors are expected to read and thoroughly understand the approval, reporting, and reimbursement requirements to ensure that only acceptable expenses are incurred while traveling or entertaining for business. Employees and supervisors are both responsible in any expense submission/approval process for mistakes, misuse, or abuse. Both employees and their supervisors are required to exercise prudent and professional judgment when incurring expenses related to business travel or entertainment. This includes obtaining prior approval from the appropriate management level when an expense may be significant, such as those expenses involving air travel, overnight stays, or entertainment for large groups, or to ensure the expenses are consistent with our professional environment. Employees who incur expenses and those supervisors approving such expenses are expected to use good judgment and diligence to limit all expenditures to only those necessary and directly related to business travel or entertainment. For example, if travel is being considered, employees and their supervisors should first question the necessity of traveling. Employees should consider whether a less expensive alternative for conducting Company business, such as teleconferencing and video-conferencing, could be just as effective. Other considerations are whether it is possible to combine two or more business trips into one, thereby lowering costs. All employees are expected to exhibit professionalism and accountability while travelling or attending entertainment for the Company. Any misappropriation, misuse, abuse or violation of the Business Conduct Guidelines, this policy, or any other policy or procedure related to business expenses, travel or entertainment, may subject an employee to discipline up to and including immediate termination of employment. All employees must complete and remain current on the on-line training provided related to this policy ( Concur and the Travel Policy ). A course is available to employees via the Company s electronic training tool. Local HR representatives can provide more information on the on-line training upon request. Internal Audit All expense submissions are subject to internal audit review on a regular basis. This requires the employee and the supervisor to be diligent and timely in submitting, reviewing, approving and retaining complete expense records and related receipts for the required retention periods. Corporate Card PAYMENT AND EXPENSE REPORTING The Company has a dual payment system for expenses. There are some exceptions to this process, so please refer to your local Purchasing or HR representative for more information. With the exception of certain low-cost budget airlines, all air travel June

5 expenditures will be charged to an AirPlus (the Corporate Service Provider) air-travel account. All other expenses should be charged to an individual s Company-issued credit card ( Corporate Card ), where such has been provided. Employees should request, via their supervisor, a Corporate Card if there is a reasonable likelihood they will have a need to travel more than twice per year. All Corporate Card requests must have signed approval from the employee s supervisor in order to be granted. U.S. employees requiring a Corporate Card should follow the instructions and complete the Travel and Expense Corporate MasterCard Application on the Corporate Intranet (HOME>>SHARED SERVICES>>TRAVEL>>AMERICAS). (APAC & EMEA: contact your Finance or HR manager for assistance.) Personal debit and credit cards should not be used as payment for Company expenses unless the employee does not have a Corporate Card due to infrequent travel or if the Corporate Card is not accepted in the location where the charge is incurred. Cash may be used in small amounts in instances of convenience such as tipping, tolls, etc. Unavoidable Use of the Corporate Card A Corporate Card is not to be used for personal expenses. The only exception to this may be when an employee, during the course of business travel, finds themselves in a situation where their own lack of cash or funds on their personal credit card leaves them with no other alternative but to use the Corporate Card to settle the charge. Any personal use of a Corporate Card should be reported by the employee to their supervisor as soon as possible, which should be no later than three (3) business days after its use. Any personal use of the Corporate Card must be repaid immediately upon the employee s return to their regular business location or no later than fourteen (14) days after its use, whichever date is sooner. Cash Advances The Company does not allow the use of a cash advance feature on any Corporate Card. Any exceptions to this policy must be approved by an HR Manager (APAC: Finance or HR manager) with sufficient DOA authority. Expense Reporting and Reimbursement The Company has implemented Concur, a web-based expense reporting and reimbursement tool, for use by all employees to file expense reports. Concur may automatically populate expense reports from a feed of detailed transaction data received from both the AirPlus air-travel account and the individual employee Corporate Card. If AirPlus has been configured within Concur for your region, then Airfare charges will appear as pre-paid expenses on the employee s expense reports in the Concur system. Every employee has the responsibility to confirm that air travel detailed on the expense report is in accordance with the flight(s) booked and the corresponding charges are appropriate and have been included in their Concur expense report for reconciliation purposes. Out-of-pocket expenses are to be added to the report by the employee and upon completing the report, it should be electronically submitted to the employee s supervisor June

6 for approval. Approved out-of-pocket expenses will be reimbursed directly to the employee. It is the responsibility of the employee and the supervisor to ensure that all expenses submitted are in accordance with this Policy. It is also essential that the employee submits the expense report timely and it is approved promptly. Failure to timely submit an expense report could lead to late payment charges, which remain the employee s responsibility to pay if late submission by the employee caused the delay. Since each submitted expense report costs the Company a fee, where appropriate and without incurring late payment charges, travel for multiple trips should be combined into one monthly report. Reports should be submitted no more frequently than one per month. For locations that are not on Company direct pay, employees will be reimbursed directly by the Company. Employees receiving direct reimbursement are responsible for ensuring full and timely payment to the card provider. Employees should review and maintain close vigilance of their Corporate Card statement to ensure all transactions detailed are actually those which the employee has incurred and ensure that payment dates are not missed. Employees are required to note or annotate, within the line item entry comment section in the Concur tool, any expense that requires clarification or could create an ambiguity. These comments will aid the supervisor in approving the expense and should provide clarity in the event the expense becomes subject to internal audit. Receipts Employees are to submit all receipts as is required by the location in which they reside. Concur generally will prompt the employee for any or all receipts, as needed. If an original receipt is lost, this must be clearly noted or annotated with the expense description, amount, date, and vendor in the individual expense comments box available for each line item entry in Concur. Supervisors should regularly review submitted receipts to ensure they match the expenses being reported. All original receipts must be kept by employees for a minimum of 36 months, whether or not Concur prompts the employee for a receipt. In some locations, receipts must be held for longer periods or sent to a regional accounting shared service center. Employees should refer to the Corporate Record Retention Schedule for any specific retention requirements. Only original receipts are considered supporting documentation for tax and audit purposes. Restaurant tear tabs are not considered an original receipt and should not be accepted for support of an expense charge. Statement invoices or billings and/or original billings that exclude expenditure or payment details also are not proper documentation; expense charges with such support should be denied. In addition, lost receipts over USD$25 (or local currency equivalent) will not be reimbursed without proper supporting evidence or supervisor s approval. June

7 When travelling in Europe, employees are required to collate and be prepared when requested to send all original receipts that have incurred Value Added Tax (VAT) to their regional accounting shared service center and retain a copy of the receipts for their own administration. The original receipts will be used to recover the VAT paid on all European expenses. Expense Payment Responsibility For any type of approved expense and where more than one Company employee is in attendance, the highest ranking employee within the same reporting line is responsible for paying the bill or settling the charge. In those situations where a junior employee may have a local credit card with an additional discount available or the more senior person present does not have sufficient local currency to settle the charge (some rural locations in developing countries accept only cash) then the junior employee may settle the bill, however, a line item entry explaining this must be entered in Concur. Additional clarification is provided under Business Meals and Entertainment described later in this Policy. Limited Supervisor Discretion Supervisors may in limited circumstances use reasonable discretion in the approval of non-routine expenses and should fully document the reasons for discretion in the Concur line item comments box. DESIGNATED REGIONAL TRAVEL PROVIDERS All business travel must be facilitated and booked through either the local travel management company (TMC) or an approved on-line booking tool. The use of any unauthorized TMC is not acceptable. The list and contact details of current TMCs for your region can be provided by your regional travel manager. Employee Profiles Employees are required to create and maintain traveler profiles. Accurate, up-to-date traveler profiles ensure accurate travel reservations, reporting, invoicing, and, communications with the traveler in case of travel plan disruptions or emergency situations. Class of Service All employees are expected to travel economy class (i.e., coach). For any published flight times in excess of five (5) hours in duration, employees may travel in business class. Senior management in certain locations may have agreed to an exception to this Policy and employees should check with their regional travel manager for such exceptions before making any reservations June

8 Lowest Logical Airfare All airline tickets must be booked and expensed at the lowest available airfare as determined by the TMC, or any approved on-line tool. Whenever possible, airline reservations should be booked on the Company s preferred airline contracts and as far in advance as possible to take advantage of available discount/ special low market fares. Cancellations/Unused Tickets The employee should contact the TMC immediately if they have to change any part of their itinerary and utilize unused or partially used tickets with continued value during future travel. Insurance When travel is booked using the Company AirPlus Card, travel accident insurance is provided to employees as part of our agreement. In some locations, additional insurance may be provided Travelers should consult with their local HR representative for more information if they desire additional insurance. Frequent User Programs All rewards from third party providers, including but not limited to, those for frequent travel, hotel stays, or car hire, belong to the employee so long as such provider is used because they are a Company-approved provider and because they offer the lowest appropriate cost to the Company. The routing of air travel and the choice of business hotel or car hire provider should not in any way be utilized solely to benefit a frequent user program. The choice of provider should be accepted based upon safety principles and the preferred contracts in place as well as in strict accordance with this Policy. Travel Clubs Fees associated with travel clubs are the responsibility of the employee and are not to be expensed or paid for by the Company. Personal Travel Considerations An employee who desires to combine personal travel with a business trip must obtain prior approval from the appropriate Vice President. In all instances, the business portion of the trip must receive priority in making the travel arrangements. Any excess charges or other miscellaneous expenses incurred as a result of personal travel associated with the business travel remains the responsibility of the employee. Employees choosing to use personal modes of travel between cities serviced by regularly scheduled airlines will be reimbursed based on an equivalent least expensive airfare or their actual expenses, whichever is the lower. June

9 Fare Share Travel Option (APAC: This is not an option.) If an employee is authorized to fly business class but chooses to instead fly economy class, the Company will pay the employee an amount equal to half the difference between the lowest roundtrip business class ticket and the fare actually paid, up to a maximum of USD$2,000 (gross) or local currency equivalent. A one way trip is eligible for a maximum of USD$1,000 (gross) or local currency equivalent. A maximum of USD$2,000 (gross) or local currency equivalent will be paid for any given travel regardless of the number of trip segments. Payment will be processed via the employee's regular payroll department and is subject to withholding or payroll taxes. Any Divisional President or Functional Head may suspend (either temporarily or permanently) the Fare Share option for their Division, their Function, or any group or part thereof. GROUND TRANSPORTATION Using good judgment and making safety a priority, an employee is expected to use the most economical means of ground transport available. Automobile Rentals All car rental reservations must be booked through the TMC or by using an approved online tool. When renting from the Company-preferred car rental company, the employee must check prior to beginning the trip and determine what insurance is included with the rental. Huntsman has many in-country car rental contracts and the insurance inclusion does vary. Your regional travel manager can provide guidance on this matter. If the preferred car rental carrier is not an option, employees should confirm that LDW (loss and damage waiver) insurance coverage is included in the rental arrangement. International travelers should accept the compulsory liability coverage offered by the rental agency. More information about the preferred car rental carrier is available from your regional travel manager. Personal Car Use Employees desiring to travel by personal automobile on a business related trip must receive prior authorization from their supervisor. Failure to obtain prior authorization may result in only the lowest cost alternative fare option being reimbursed. Subject to any required authorization, employees will be reimbursed for use of their personal automobile by the Company at the current authorized rate. The employee s local HR representative can provide this rate upon request. Employees will be reimbursed for tolls and parking incurred during approved business travel. In order to receive reimbursement, employees June

10 must complete an expense report in the Concur system specifying the time of the trip, point of origin, destination and the business purpose. Employees remain responsible for all traffic or parking fines or tickets incurred during business travel. No Company-sponsored insurance is carried on an employee s personal automobile. Employees who are driven to the airport, train station, etc., and/or are met on the return from the business trip by a personal vehicle can request reimbursement for the round-trip at the prevailing personal car mileage rate. Rail and Ferry Transportation In many places, travel by rail or ferry is a safe, convenient and cost-effective means of transportation. When travel by rail or ferry is appropriate, Company employees are authorized to guarantee themselves a seat by traveling first class. Where possible, all rail and ferry tickets should be purchased in advance from the TMC or an approved on-line tool. LODGING When Company business makes it necessary for an employee to stay away from home overnight or longer, the Company will reimburse the employee for reasonable lodging expenses. The TMC or any approved on-line tool can assist the employee in making hotel accommodation reservations using negotiated hotel contracts or competitive market rate. Since it may be possible to negotiate lower rates upon arrival, employees are encouraged to request a lower rate upon check-in. Actual expenses for lodging will be reimbursed on the basis of standard business level accommodations. Any non-complimentary upgraded accommodation will require prior approval from the appropriate Vice President. Any incremental cost incurred and not subject to prior approval, remains the responsibility of the employee. All charges and bills should be reviewed prior to check-out to ensure the correct rates were charged. When travel plans change, employees must promptly cancel any lodging reservation to avoid a "no-show" charge. In circumstances where through lack of diligence, an employee has caused the no-show charge, the charge remains the responsibility of the employee. If the cause of the no-show charge is not the fault of the employee, the Company will reimburse the cost subject to reasonable evidence provided to the employee s supervisor. Details justifying a no-show charge reimbursement must be noted or annotated in the line item comment section available in Concur. June

11 Personal Meals and Entertainment MEALS AND ENTERTAINMENT Employees traveling away from their regular place of work on Company business can seek reimbursement for reasonable personal meal expenses. As always, prudence should be used in order to control these expenditures. When an employee is away from home over a weekend or for extended periods, certain minor self-entertainment expenses will be reimbursed (for example, a movie or a reasonably priced ball game). These charges should not exceed USD$30/day (or local currency equivalent) and the entertainment must be appropriate for our professional environment. If the employee is detained in a location due to unusual circumstances, then subject to approval by their supervisor, the daily limit may be exceeded. Business Meals and Entertainment Business practice sometimes requires entertaining business contacts outside of the Company offices. Such entertainment should not be excessive or lavish and must be considered reasonable and necessary and be conducted in accordance with the Company Conflict of Interest Policy. If more than one Company employee is in attendance, the highest-ranking employee in the same reporting line for the business or function hosting the event is responsible for the expenditure. A junior employee may pay the expenditure only in non-routine and exceptional circumstances and if there is commercial advantage to the Company. The exceptional reason must be noted in the line item comments section of Concur. For all business-related entertainment, whether the event is with internal colleagues only or includes external guests, the employee must ensure the receipt identifies the establishment, the date on which the entertainment occurred, the name of every individual attending and every company name(s) of those entertained, as well as the business purpose. Tipping In some locations, for example in the US, tipping is a key earning mechanism for service staff. In countries or locations where this is typically the case, employees should follow local guidelines of tipping, provided that such tips do not exceed 15% of meal value, unless required otherwise by local custom. Unusual tips must be noted or annotated in the comments section of the line entry in Concur. For much of the rest of the world, tipping is a method of rewarding exceptional service and, as such, employees should follow local practice and use discretion when tipping service staff. June

12 TELECOMMUNICATION AND MOBILE DEVICE CHARGES Telecommunication and mobile device charges can be very expensive, particularly when travelling abroad. Employees are encouraged to use prudence and diligence when using telecommunications, whether the form of communication is telephone, internet or data connections. Employees are encouraged to use common sense when making such calls/connections and remember that they typically pay for both incoming and outgoing calls when traveling outside of their normal network. Employees should contact IT or Purchasing for advice on preferred ways to make mobile connections to ensure the least expensive method/medium for making/receiving calls and for the electronic transfer of data whether at home or abroad. Expensing telecommunication charges requires supporting receipts consistent with the requirements of this Policy. A complete summary of corporate cell and land-based phone/data policies is available by contacting a local Purchasing or IT representative. MISCELLANEOUS INCIDENTAL EXPENSES If an Employee incurs any expense that is not already covered by this Policy, and such expense is incurred in the regular course of business, travel, entertainment, or other work related duty, they may request approval for payment via Concur and their supervisor. The following are some examples of incidental expenses that may be approved for payment. This list is not comprehensive and should be used for guidance only. Portage tipping: USD$1.00 per bag. In other countries, apply reasonable local practices. Reasonable Laundry/Valet services for business trips of 4 nights or longer. Currency Conversion charges. Postage for business related communications. Office Supplies in support of the business activities that are not otherwise available in the regular course of business. Telecommunication devices and connectivity. Essential clothing and toiletries when these items are lost or missing due to luggage being lost or delayed in transit. Employee should first turn to laundering clothing and will only be reimbursed for purchasing those items considered strictly necessary for the duration of their business travel and that are no longer in their possession due to lost/missing luggage. Any subsequent claim made by the employee against those responsible for the lost/missing luggage, where such loss has been reimbursed by the Company, may be offset against the expenses which have been reimbursed. Company car fuel and maintenance charges and car wash. (Company car washing varies country by country so check this with HR or Purchasing.) Parking and road usage tolls. Mileage reimbursement for personal cars used during Company business. June

13 Receipts are required for all miscellaneous reimbursable expenses over USD$25 or local currency equivalent. Other miscellaneous incidental expenses not included in the above list may be reimbursable only upon approval by the employee s supervisor. NON-REIMBURSABLE MISCELLANEOUS EXPENSES The following are some examples of expenses that generally are not reimbursable. This list is also not comprehensive and should be used for guidance only. The Employee should use good judgment in any expense submission as to what would be deemed as reasonable when requesting reimbursement from the Company. Corporate Card late/delinquency fees. Gifts (Please refer to the Company Conflict of Interest Policy located on the Corporate Compliance and Ethics intranet site). Cigarettes. Baby-sitter costs. Airline club fees. Barber/hairstylist. Traffic fines and parking tickets. In-flight movies/refreshment. Kennel charges. Luggage/briefcases. Toiletry items except when luggage is lost. Over-the-counter medications and/or prescription medication charges. Courier service for personal mail. Financial advisory fees. Training courses, seminars, conventions, professional association fees, memberships, license renewals, notaries, and subscriptions or such similar charges as, if approved as a business related expense, these should be paid for via a Purchase Card or Purchase Order. In cases where neither of these is possible, then subject to supervisor preapproval, the Corporate Card may be used for payment. In locations where Purchase Cards are not available, the employee should seek guidance from a local Purchasing representative. A copy of this Policy remains available to all employees on the Company s Intranet under the Travel section. Any employee without access to the intranet can request a copy of the Policy through their supervisor, local HR, Purchasing, or their regional travel manager. June