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SM&A Travel Policy
1. `
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
2. 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
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3. 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
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4. 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.
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5. 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.
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6. 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.
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7. 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.
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8. 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),
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9. 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.
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10. 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.
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