Expense policy template

Travel and Expense Policy

Responsible Owner: CEO, CFO or Equivalent

Last Updated: MM/DD/YYYY

Purpose: To clarify the expectations and parameters relating to employees’ use of their [Company] credit card and submission of reimbursement requests for business-related expenses.  This includes guidelines for which expenses are and aren’t appropriate, and the process by which employees can use their [Company} credit card or request reimbursement.

Roles & Responsibilities

Policy Exceptions: All exceptions to this policy must be approved by either the CEO, CFO or Equivalent

Department Heads: These leaders play a key role in approving significant business expenses for their respective departments. If you’re not sure what is appropriate within this policy, please consult your Department Head.

• [Department A] - Department Head Name
• [Department B] - Department Head Name
• [Department C] - Department Head Name
• [Department D] - Department Head Name

Business Expense—General Process

1. Employees are expected to use their [Company] credit card for business-related expenses.
   • Transactions for less than $X do not need a receipt.
   • All transactions <$XX require a receipt and a note describing what the expense was for.
   • All transactions between $XX-$XXX require a receipt and a note describing what the expense was for.  These expenses will require direct manager approval.
   • All transactions >$XXX require a receipt, a note describing what the expense was for, and a list of the attendees/participants. These expenses will require both direct manager and Finance approval.
2. If you cannot use a [Company] credit card for any reason, you may request reimbursement for the expense.  The same approval requirements outlined above for [Company] credit cards will apply to reimbursement requests.

Business Travel

Business Travel refers to travel undertaken by employees for the purpose of conducting company-related activities that are outside their regular place of work.

The travel must be undertaken for specific business activities such as attending meetings, conferences, client engagements, training sessions, or other events directly related to the company's operations.

‍Business travel must be approved by the employees Department Head prior to booking.

The travel must involve moving from the employee’s primary or semi-remote work location to a different geographical area. This can include travel to other company offices, client locations, industry events, or other destinations not part of the employee's regular work routine. 

Business travel does not include regular commuting expenses or personal travel.

Airfare

1. Booking Procedures
   • Advance Booking: Employees should book flights as early as possible, ideally at least 14 to 21 days in advance, to secure the best rates.
   • All employees are to use [Travel Platform] to book all business-related travel.
   • If your travel needs can not be accommodated within the [Travel Platform], please work with your department head to find a suitable alternative.
2. Class of Service
   • Economy Class: Generally, employees should book economy class tickets for domestic and international flights unless pre-approved otherwise.
3. Travel Restrictions and Limits
   • Fare Types: Employees should select the lowest logical fare that meets their travel needs. This includes non-refundable tickets if they are more cost-effective.
   • We encourage employees to book direct flights when possible (and if they desire) to minimize the physical burden of travel.
4. Changes and Cancellations
   • Change Fees: If a change is necessary, employees should choose the lowest-cost option. Fees for changes or cancellations should be justified by business needs.
   • Refunds: Employees should seek refunds for unused tickets where possible and document any exceptions.
5. Reimbursement Procedures
   • Receipts: Employees must provide detailed receipts or e-tickets showing the fare, date of travel, and any fees, even when [Travel Platform] is used.
   • Expense Reports: Submit airfare expenses within a reasonable period after travel (e.g., within 30 days), accompanied by a completed expense report form.

Meals

1. To ensure consistency and control over travel expenses, the following per diem rates for meals have been established for common [Company] travel destinations. These rates are intended to cover breakfast, lunch, and dinner while on business trips.
   • Destination #1: $XXX per day
   • Destination #2: $XXX per day
   • Destination #3: $XXX per day
   • Destination #4: $XXX per day
   • For destinations not listed above, please consult with the finance department for applicable per diem rates.
2. Expenditures exceeding the per diem limits may not be charged to a [Company] card unless exceptional circumstances are documented and approved by the employee’s Department Head.

Lodging

1. Booking Requirements: All employees are to use [Travel Platform] to book all business-related hotels or lodging. 
2. Duration: Employees should book enough nights to feel comfortable and effective in fulfilling the business purposes of the travel.  Personal extensions to business travel are not eligible to be charged to a [Company] credit card or reimbursed.
3. Room Type: The company will cover the cost of a standard room or the most economical room class alternative if standard is not available. Upgrades to suites or additional rooms for personal use cannot be charged to a [Company] card unless pre-approved.
4. Exceptions: If suitable accommodations are not available on [Travel Platform], employees can book alternate options using their [Company] credit card with prior Department Head approval. Documentation supporting the need for exceptions should be provided.

Ground Transportation

This section outlines the guidelines for reimbursing ground transportation expenses incurred while conducting company business. The goal is to ensure cost-effectiveness and consistency in the use of ground transportation.

1. Rental Vehicles
   • Vehicle Type: Employees should select the most economical vehicle suitable for their needs. Premium or luxury vehicle rentals require Department Head approval.
   • Rental Duration: Rental expenses should align with the duration of the business trip. 
2. Taxis and Rideshares
   • Booking: Rideshares, such as Uber or Lyft, or taxis should be used for business-related travel. Receipts are required.  
   • Tips: A reasonable tip of up to 20% of the fare or less can be put on a [Company] credit card. 
3. Public Transportation
   • Buses, trains, subways, and other forms of public transit that are used to travel for business purposes are eligible to be put on a [Company] card or submitted for reimbursement. Receipts are required for these expenses.
   • Travel Passes: Costs for travel passes or multi-use tickets can be charged to a [Company] card if used for business purposes.
4. Personal Vehicles
   • Mileage Reimbursement: Employees using their personal vehicles for business travel will be reimbursed at the rate of $.XX USD per mile. This rate includes fuel and vehicle wear and tear.
   • Parking: Parking fees incurred during business activities can be charged to a [Company] card. Parking tickets or fines cannot.
   • Tolls: Road tolls incurred during business travel can be charged to a [Company] card with appropriate documentation/receipts.
5. Airport Transfers
   • Airport Parking: Reasonable parking fees for airport terminals can be charged to a [Corporate] card. Long-term parking should be avoided.
   • Shuttles: Costs for airport shuttles or shared rides to and from the airport can be charged to a [Corporate] card or submitted for reimbursement. 

Team Events / Meals

To support team-building, collaboration and camaraderie, this policy outlines the guidelines for team events and meal expenses. It ensures that team activities are planned and executed within budgetary constraints while maintaining consistency and fairness. (Please also keep in mind other applicable policies, such as the Code of Conduct.)

Team Meals

1. Budget Limits: Each team meal is subject to a maximum per person budget of the equivalent per diem cost in the city in which the meal occurs. As an example, if a team of 5 have dinner in Destination #1, the guideline for the cost of that dinner would be $XXX in total ($XXX per day SF per diem x 5 participants).
2. Given that the purpose of team meals is team-building, collaboration and camaraderie, if a team member is not present at the team meal, they may not purchase a single meal for themselves to compensate for missing the team event.  
3. Non-Reimbursable Expenses: Personal expenses or costs not directly related to the team meal (e.g., transportation for non-business purposes, personal gifts) are not reimbursable.
4. Documentation: The meal organizer must provide a receipt, a note describing what the expense was for, and a list of the attendees/participants.
5. Payment: The meal check should be paid by the most senior [Company] employee present, or the Department Head of the department holding the event.
6. Tips: A reasonable tip of up to 20% of the fare can be put on a [Company] credit card.

Team Events

1. Event Approval: All team events must be pre-approved by the group’s Department Head, to ensure alignment with company objectives and budget.
2. Budget Limits: Each team event is subject to a maximum per person budget of 2x the equivalent per diem cost in the city in which the event occurs. This budget includes all associated costs such as venue rental, activities, and entertainment.
3. Planning and Organization: The event organizer is responsible for planning the event, including selecting the venue, coordinating activities, and managing logistics. Efforts should be made to secure competitive pricing and ensure the event aligns with the company’s values and goals.
4. Non-Reimbursable Expenses: Personal expenses or costs not directly related to the team event (e.g., transportation for non-business purposes, personal gifts) are not reimbursable.
5. Documentation: The event organizer must provide a detailed expense report, including invoices, receipts, and a summary of the event, to the Finance Department within 30 days after the event.
6. On-site Payments: All payments made on site should be made by the most senior [Corporate] employee present, or the Department Head of the department holding the event.

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