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    SM&A Travel Policy SM&A Travel Policy Document Transcript

    • ` Subject SM&A Travel & Expense Policy Date 1 July 2006 Policy Number 002 Approved by Cathy McCarthy & Jim Eckstaedt Effective Date 1 July 2006 Revision 12 SM&A Confidential Internal Use Only
    • SM&A Travel & Expense Policy 1 EFFECTIVE PERIOD This policy is effective 1 July 2006. The Executive Group must approve all modifications to this policy. Any other written or oral agreements, unless reconfirmed in writing by the Executive Group after the date of this policy, are voided. 2 PURPOSE This policy is intended to provide standardized guidelines, procedures and inform- ation for all SM&A employees in the initiation of travel plans and the substantiation and reimbursement of business expenses incurred. 3 ELIGIBILITY This policy applies to all SM&A employees. 4 POLICY It is SM&A policy that employees will be reimbursed for all expenses incurred in connection with authorized business. These expenses must be compliant with this policy or that of the contract with our client. Travel is one of SM&A’s largest controllable expense items. Managers and employees share a common duty to use good business judgment when incurring, approving or reimbursing these expenses. Advance planning is the key to controlling costs. 5 DEFINITIONS unless otherwise stated, includes both Direct and Employee Indirect Personnel employees of SM&A whose time is billable Direct Personnel employees of SM&A whose time is not billable Indirect Personnel CEO and CFO Executive Group a designated travel agency representing SM&A Travel Agency 1 July 2006 SM&A Confidential Page 2 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy 6 ADMINISTRATION OF POLICY Responsibility and authority to implement and enforce this policy is placed with all managers. This responsibility includes effective communication of the policy and related procedures to all personnel affected. Responsibility for interpretation of the provisions of the policy and interpretation of the applicable client travel terms and condition resides with the CFO. 7 IMPLEMENTATION OF POLICY/RESPONSIBILITY 7.1 EMPLOYEE It is the employee’s responsibility to control business travel expenses as much as possible while not significantly minimizing SM&A’s or the employee’s effective- ness. The employee is responsible for completing the following steps in accord- ance with the detailed guidelines within this policy: Coordinate travel plans with the appropriate project/program/proposal man- ager in advance, and make every effort to procure air travel tickets as far in advance as is practical. Travel through the assigned SM&A travel agency is optional Professionally managing expenses during the business trip; and Processing the related reimbursements in a timely basis 7.2 TRAVEL AGENCY (OPTIONAL) Effective February 1, 2005, the SM&A approved travel agency is: First Class International Travel 27156 Burbank Foothill Ranch, CA 92610 Information Telephone Numbers Reservations 1-800-222-9968 Hours Monday – Friday, 6 a.m. to 5 p.m. PST First available agent Extension 200 After Hours Emergency 1-800-500-1741, code P61B 1 July 2006 SM&A Confidential Page 3 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy If you choose to use the travel agency, it is the agency’s responsibility to manage the employee’s travel arrangements and expenditures by completing the following steps in accordance with the detailed guidelines within this policy or client contract: Identifying the most feasible travel arrangements for airfares, car rentals, lodging, etc. Proposing arrangements to the employee for their approval Confirming and booking travel per guidelines and all required approvals Providing cumulative travel report summaries for management reporting and tracking of expenses for the entire company; and Provide maximum utilization of planning arrangement time and ensure SM&A policies are followed. Agencies are provided with employee travel preferences and profiles. Employees are expected to accept the agency’s recommended travel itinerary providing reasonable flexibility of time and compliance with this policy. If the employee does not accept the agency’s recommended travel itinerary, an authorization will be requested by the travel agency to the Corporate Controller requesting override authority. Upon receiving approval, the travel itinerary will be recorded. 7.3 MANAGEMENT (DIRECT SUPERVISOR) For indirect travel, it is the responsibility of the manager, and for direct travel, it is the Corporate Controller’s responsibility to monitor the employee’s travel arrange- ments and expenditures. Where appropriate and practical, the Corporate Controller may elect to institute a process by which the VP Operations, or the Corporate Controller, will approve all expenses prior to submission of the employee’s travel expense report. 7.4 CORPORATE CONTROLLER It is the responsibility of the Corporate Controller to oversee and approve any travel arrangements that do not align with this policy. 1 July 2006 SM&A Confidential Page 4 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy 8 GENERAL POLICY – APPROVALS FOR EACH TYPE OF PAYMENT 8.1 TRAVEL AUTHORIZATION REQUEST It is the policy of the company that all employees book air travel as far in advance as practical to obtain the lowest fare possible for SM&A and its clients. 8.2 EXPENSE REPORTS For all expenses, employees must submit a time and expense report weekly via the standard time and expense reporting application. Expenses will be paid based on the fax submission. The Expense Report must be faxed, with receipts, no later than 9.00 a.m. Pacific time on the Tuesday following the week being claimed. The fax submission must be followed up with original receipts for audit purposes. The original receipts must be securely taped to 8½” x 11” sheets of paper. Failure to provide the original receipts within five (5) working days will lead to a delay in processing your reimbursement. 9 LABOR HOURS Labor hours shall be entered into the relevant day on the time sheet report for the assigned project in ¼-hour increments. Travel and commute time shall not be included unless traveling from one client location to another at the request of the client, e.g. visiting the client’s customer. 10 ITEMS TO BE REIMBURSED 10.1 MEALS & INCIDENTAL EXPENDITURE Meals and incidental expenses (M&IE) per diem for all direct and indirect per- sonnel will be paid in accordance with Federal Travel Regulations (FTR). Specific contractual agreements with clients may supersede FTR published rates. SM&A may also negotiate M&IE rates on a “by proposal” basis. M&IE amounts represent compensation for additional expenses for meals, etc., incurred by the employee due to being away from home. Receipts are not required for M&IE. Account Executives and Strategic Account Managers should use actual expense, not per diem. Per diem should be used as a guide for what is considered reason- able. Actual meal receipts under $35.00 are encouraged, but not required. The published FTR rates can be obtained from the US General Services Admini- stration (GSA) website. M&IE is not provided for travel to the client’s location if it is within 50 miles (or the distance specified by the SM&A client contract) of the employee’s home or the employee’s SM&A office if applicable, unless an overnight stay is authorized. 1 July 2006 SM&A Confidential Page 5 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy Only 75% of the M&IE per diem rate can be claimed for travel days: see §301-11.101 of the FTR. If SM&A or the client provides any meals, that portion of the expense, as allocated in the FTR should be deducted from the M&IE amount: see §301-11.18 of the FTR. M&IE can be claimed on weekends when the employee does not travel home, but may not be claimed for days taken as personal time off, including illness. 10.2 LODGING 10.2.1 Hotels Hotel reservations can be made through the travel agencies (except as stated in 7.1 above) and will be guaranteed for late arrival by using the employee’s personal charge card. Extra costs for room upgrades, or executive suites or floors will not be reimbursed. Hotel no-show bills will not be reimbursed, unless there are exten- uating circumstances that are adequately explained in the expense report. The travel agency will apply the stated guidelines and the approved Travel Auth- orization Request to arrange lodging accommodations. If hotel accommodation at or below the FTR Continental US (CONUS) maximum rate is not available, add “Cheaper lodging not available” in the “Notes” section of the T&E Report. Hotel accommodation, comprising room rate and taxes, should be shown on the T&E Report daily. Room service, telephone calls, restaurant, in-room movies, etc. shall not be included. 10.2.2 Long Term Rentals Upon the request of the employee, renting a home, room, apartment, recreational vehicle, trailer or mobile home for the duration of the assignment is allowed if the employee is able to demonstrate that this option would be at a lower cost to SM&A and its client. The employee enters into any form of lease at their own risk, and SM&A is not liable for any costs or charges incurred if the full term of the lease is not fulfilled. The employee is also responsible for the provision of the security deposit and the security deposit shall not be a reimbursable expense. Long-term accommodation rentals should be shown on the T&E Report biweekly or monthly. 10.3 HOME TRIPS For employees assigned to a client engagement, the number of “home trips” or “family visits” is according to client contract terms although the maximum period between trips home shall not be required to exceed 21 calendar days for contiguous CONUS assignments. Schedules for home trips must be coordinated in advance with the appropriate program/project/proposal manager. 1 July 2006 SM&A Confidential Page 6 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy Travel to any location other than home, except at the express written consent of SM&A or the client, will not be reimbursed. Travel by spouse will also not be re- imbursed unless approved in advance, in writing, by an authorized representative of the client. Typically, in the US, associates are allowed “home trips” every two weeks, and international associates, once a month. Home leaves may not be banked or accum- ulated unless approved by the Account Executive. Contract terms and conditions may supersede these SM&A guidelines. 10.4 TRANSPORTATION 10.4.1 Transportation – Airlines Use of SM&A’s designated travel agency is optional. Employees should attempt to utilize the lowest reasonable coach airfare. If discounted coach airfare is not avail- able, full coach airfare may be used. Whenever the employee’s schedule allows, the travel agency must identify the best schedule corresponding to the lowest logical fair by using the following parameters: If client contract permits, restricted fares must be accepted if potential savings of $150 can be made Departure or arrival is within three hours of the requested/desired time One stop/change of planes at an intermediate city for coast-to-coast travel Nearest airport is within 20 miles Business class travel is authorized for all transpacific, transatlantic, or other inter- national flights scheduled for six (6) hours or more as specified by SM&A/client contract. When not in violation of government or client obligations, an employee may com- bine personal travel with business travel, with the understanding that the employee is responsible for all additional cost differences. Airfare expenses should be entered into the time and expense report as the total roundtrip price on the first day of travel. If applicable, write, “Ticket purchased in advance to save client money” in the “Notes” section of the T&E report. Valid receipts include: An original ticket showing price A fax or email from the airline or travel agent, showing price An original printout of an e-ticket, showing price In addition, the boarding pass for the flight must always be included in the receipts on the day of travel. 1 July 2006 SM&A Confidential Page 7 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy 10.4.2 Number of Employees Traveling Together To protect the best interest of the Company, limit the number of employees traveling together on a single flight by arranging for: No more than three (3) Board members or Corporate Executives No more than three (3) Vice Presidents No more than three (3) immediate subordinates may travel with each manager on the same aircraft; and No more than (5) employees may travel on the same aircraft 10.4.3 Frequent Flyer Clubs Employees may keep for personal use the mileage benefits offered as an incentive by the airlines, understanding that receipt of these benefits should not be the deciding factor in the selection of itinerary and/or carrier. 10.4.4 Airline Clubs The company does not reimburse for airline clubs for employees. 10.5 TRANSPORTATION – CARS 10.5.1 Use of Personal Cars If a personal vehicle is used to travel to a client’s facility, mileage, parking, and tolls will be reimbursed at the rate established under the FTR provided that the travel is beyond 50 miles (or the distance specified in the client contract) from the employee’s home and employee’s SM&A office if applicable. All employees will be reimbursed at the prevailing rate approved under the GSA for authorized use of their personal car for SM&A business in excess of their nor- mal commutes. Parking and tolls for trips other than normal commutes will be reimbursed for company business with receipts. Mileage and tolls from home to the office are not reimbursable. 10.5.2 Rental Cars Rental cars may be used if other public transportation is not a practical alternative. Compact or intermediate (midsize) cars should be rented unless the size of the group or equipment makes this impractical. When traveling in groups of two or more people, combine usage of rentals unless scheduling requirements make doing so impractical. SM&A WILL NOT reimburse for any additional insurance coverage offered at the time of rental of the vehicle. Therefore, while on business travel in the continental US do not take the optional coverage, such as CDW (Collision Damage Waiver), 1 July 2006 SM&A Confidential Page 8 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy LIS (Liability Insurance Supplement), PEC (Personal Effects Coverage), and PAI (Personal Accident Insurance), as SM&A has corporate coverage for this potential liability. When renting cars outside of the continental US, the CDW should be accepted, but the other coverage should be declined. This is summarized on the reference card “Auto Insurance—Business Rental Vehicles” at Attachment 1 at the back of this policy. Unless otherwise specified under the client contract, rental periods should not exceed thirty days without closing the rental contract and initiating a new rental contract to avoid the potential insurance issues associated with leasing vs. renting. As stated in the “Acknowledgement of Conditions of Employment” all employees must carry in effect automobile liability insurance in the minimum amount of one hundred thousand Dollars ($100,000) combined single limit, or split limits of 100/ 300/50 evidenced by an endorsement from a licensed insurance company, which the employee agrees to furnish to SM&A upon request. Cars should be refueled before return to the rental agency. Savings can be sub- stantial with this effort. Fines for traffic violations or parking violations are con- sidered personal expenses and will not be reimbursed by the Company. Expenses for rental cars should be entered into the time and expense Report on the day that the bill is paid. Gas purchased for rental cars should also be entered on the day purchased. Original receipts are required for both rental car and any gas. 10.5.3 Vehicle Accidents while on Business Travel If you are involved in an accident using your personal vehicle while on business travel, you should immediately report the accident to your personal insurance company. Your insurance company will act as the primary insured, and SM&A’s insurance company will act as the secondary insured. You must also provide SM&A with a copy of the report related to the accident. If you are involved in an accident while operating a rental vehicle for business travel, you are protected under SM&A’s insurance. It is imperative that you immediately report the accident to the Corporate Controller, as well as provide a copy of the report relating to the accident. 10.6 OTHER TRANSPORTATION Transportation via rail (coach class), airport and hotel limousines, buses, and taxi service should be considered when feasible. Expenses are reimbursable with documentation. In some circumstances, a taxi is more cost-effective. Airport parking will be reimbursed up to an amount equivalent to airport shuttle services or taxi to and from the airport. Original receipts are required in all cases. 1 July 2006 SM&A Confidential Page 9 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy 10.7 ENTERTAINMENT Meals and entertainment provided to clients require proper business receipts and explanation, including client name, attendee names and titles, as well as business purpose of the meals and/or entertainment. This information is required by IRS regulations. 10.8 LAUNDRY AND DRY CLEANING Laundry and dry cleaning expenses are reimbursable under the Federal Travel Regulations for travel periods in excess of three (3) days. SM&A will reimburse dry cleaning expenses incurred on a company paid trip if the employee is traveling over five (5) days for business travel. Original receipts are required for laundry and dry cleaning. 10.9 MISCELLANEOUS Air-phone charges are not reimbursable unless otherwise specified by SM&A/ client contract Gas charges cannot be claimed if an employee is claiming mileage Every miscellaneous expense entered into the “Other” category on a T&E Report must be accompanied by an explanation in the “Notes” section Expenses removed or omitted from a previous T&E Report should be entered into the “Other” category, with an accompanying explanation in the “Notes” section Receipts must be from establishments serving the public. Receipts signed by other SM&A personnel or the employees or consultant’s relatives will not be accepted SM&A WILL NOT reimburse or invoice for Estimated expenses, e.g. car rental contracts Refundable deposits Unreasonable or personal expenses, e.g. movie rental Non-coach airfare or equivalent, except for international travel Rental of a larger than mid-size car—some clients restrict to subcompact car Alcoholic beverages—client entertaining meals are allowed for indirect personnel Expenses disallowed by the client 11 REFERENCE Attachment 1 is a business card-sized reference card for auto insurance. 1 July 2006 SM&A Confidential Page 10 of 11 Rev. 12 Internal Use Only
    • SM&A Travel & Expense Policy ATTACHMENT 1: AUTO INSURANCE – BUSINESS RENTAL VEHICLES AUTO INSURANCE - BUSINESS RENTAL VEHICLES • All employees of SM&A must use the following guidelines when renting a vehicle for business purposes, otherwise SM&A cannot guarantee reimbursement • Employees must maintain personal auto insurance at all times and be prepared to provide proof of this insurance to SM&A • Before rental, check with your credit card company for any automatic insurance coverage WITHIN OUTSIDE Supplement Continental USA Continental USA CDW/LDW decline accept LIS decline accept PEC decline accept PAI decline decline Theft decline accept Foreign Travel: Contact SM&A, (949) 975-1550, before business travel outside the US. We will give you emergency contact information for medical and personal assistance. Claims & Inquiries: SM&A, 4695 MacArthur Court, 8th Floor, Newport Beach, CA 92660 Descriptions: CDW (collision damage waiver) or LDW (loss damage waiver) are options available for an additional daily charge that waive or reduce the renter’s responsibility for loss of or damage to the rental car, provided the car is used in accordance with all terms and conditions of the rental agreement. LIS (liability insurance supplement) is an optional supplement that will increase the limits of liability protection to a combined total PEC (personal effects coverage) is an optional service that provides protection for loss of or damage to covered personal effects of the renter. Some exclusions apply and the maximum coverage per person varies depending on the state PAI (personal accident insurance) is an optional service which covers your accidental death and medical expenses resulting from bodily injury. Total indemnity for any one accident is limited. Theft In some countries outside the US, losses resulting from theft or attempted theft are not included within CDW or LDW. In most countries, separate Theft Protection is available as an option. In some countries, Theft Protection is mandatory. Please inquire at time of reservation or rental for details. Rev. 1, 25 June 2004 © 2004 SM&A. All Rights Reserved 1 July 2006 SM&A Confidential Page 11 of 11 Rev. 12 Internal Use Only