POLICY
No.: A-08
Date: July 24, 2008
Section: General
Supersedes
Unit:
All
Units
No.: A-08
Subject:
Travel and Related Expenses Policy
Date:
July 1, 2008
Travel and Related Expenses Policy
Table of Contents• Scope and Objectives
o Scope
o Policy
• Responsibilities and Enforcement
o Responsibilities o Enforcement • Payment Method o Corporate Card • Expense Procedures o General
o Expense Report filing timing
o Receipts / Documentation
o Currency Exchange Rates
o Credits / Refunds
o Non – Employee Travelers • Approvals
o General Approvals
o Pre-Trip Approvals
o First Level Manager / Cost Center Manager Approval
o Second Level Manager or Sr. Management Team Approvals • Travel and Related Expenses Categories
o General
Preferred Travel Arranger
o Air Travel
Air Travel Procedures Airfare class of service policy Air Travel Restrictions Frequent Flyer Mileage
Lost, Unused, Changed, and Reissued Airline Tickets
o Ground Transportation Rental Vehicles
Private Car and Shuttle Services Personal Vehicles
Rail
o Lodging
o Meals and Entertainment General
Meals and Entertainment – Individual and Internal Partners (Jarden Employees) Meals and Entertainment – Jarden External Partners (Suppliers, Customers, etc)
o Medical Emergencies – International Travel
o Laundry and Dry Cleaning
o Tips and Gratuities
• Policy Exceptions - Non Reimbursable Expenses
o Air Travel
o Car/Car Services
o Lodging
o Personal Expenses / Entertainment
o Other Non – Reimbursable Expenses • Appendix
o Questions
Scope and Policy Objectives
ScopeThis Travel and Related Expense Policy (“Policy”) applies to employees of Jarden Corporation (Jarden) and its divisions / subsidiaries (the “Company”), and replaces all previous travel policies.
The Jarden Senior Management Team (defined as President, CEO, COO, CFO, and Senior Vice Presidents of the Jarden business segments) and the Officers of the company may grant exceptions, in writing, to this Policy or issue more restrictive guidelines for their respective areas with concurrence of the CEO, or his designee.
The Policy is located on the Jarden Intranet and the Jarden Corporation Travel Website ( www.travizon.com/jarden ). Policy Objectives
Travel and related expenses represent a significant expense area for Jarden Corporation. Alternate means of communication, such as video or teleconferencing, is recommended, in lieu of travel, whenever cost effective and appropriate.
All employees who incur approved business travel and related expenses are eligible for reimbursement. This Policy establishes procedures for employees incurring business travel and related expenses on behalf of the Company. The objectives of this Policy are to:
Ensure employees have a clear and consistent understanding of policies and procedures for business travel and related expenses reimbursement.
Ensure expenses are legitimate and business related. Ensure expenses are cost effective.
Enforce compliance to maximize the Company’s ability to renegotiate discounted rates with preferred suppliers, ultimately reducing costs.
Ensure compliance with the Internal Revenue Service (IRS) guidelines.
Responsibilities and Enforcement
Responsibilities
Global Supply Chain is responsible for establishing this Policy with the concurrence of the Sr. Management Team. Future addendums require review by Global Supply Chain. This Policy may be modified at the Company’s discretion at any time, for any reason, with or without notice. Business managers and approvers are responsible for enforcing this policy.
The approving manager is responsible for reviewing expense reports for compliance with the Policy and verifying the legitimacy and accuracy of charges. The Sr. Management Team will review exceptions to the Policy.
Employees are responsible for complying with the Policy. The Company assumes no obligation to reimburse employees for expenses incurred and submitted that are not in compliance with this Policy.
FAILURE TO COMPLY WITH THE ESTABLISHED POLICY OR FALSIFYING AN EXPENSE REPORT MAY RESULT IN DENIAL OF REIMBURSEMENT AND OR APPROPRIATE MANAGEMENT ACTION UP TO AND INCLUDING
TERMINATION.
Enforcement
Expense reports & travel arrangements will be subject to audit. Employees may be charged back or required to repay any monies incorrectly reimbursed to them, in accordance with the Policy and applicable law.
Payment Method
All expenses, business and travel related expenses, must be charged to the employees’ Jarden Corporate Card account (effective October 1, 2008). Personal credit cards should not be used for business travel and related expenses. Failure to comply could result in non reimbursement for the incurred expenses. Unauthorized expenses as outlined in this Policy will not be reimbursed.
Corporate Card
All employees who travel on Jarden Corporation’s behalf need to obtain a Jarden corporate card and use it for all business travel and related expenses. Another credit card or cash may be used in those limited circumstances where the supplier or service provider does not accept the Jarden Corporate Card.
To apply for a Jarden corporate card please see the Jarden Travel website (www.travizon.com/jarden or Jarden Intranet site for the Corporate Card application form.
Jarden will not reimburse employees for any fees associated with the use of a personal card. The corporate card is not to be used for personal purchases.
An employee’s failure to use the corporate card in accordance with this Policy or pay the corporate card bills timely may result in the cancellation of the corporate card and/or disciplinary action up to and including termination.
Rewards points accrued from business travel and related purchases on the Jarden corporate card may be retained by the employee and should be redeemed for personal consumption. The enrollment fee (if applicable) is the responsibility of the employee and is not a reimbursable expense. Points are non-transferable to other cards and must be used during the term of the employment with the Company.
Expense Procedures
General Expense reports must be used only by employees for business expenses incurred by the employee.
If more than one Jarden employee is present at an event, the most senior level individual with the department or business unit must pay for the expense. This does not apply to pre-scheduled events (e.g. off-site management meetings, team building events, interlocks, etc.), which have been pre-approved.
All Expense reports must be submitted on the approved Jarden Corporation expense report template. (Available on the Jarden Intranet)
Pre-Trip approval with one level of approval may be required for air travel related expenses (Per Corporate Direction); Second level management pre trip approval requirement for all international business class travel. Some business segments may require pre trip approvals for all travel, please confirm with your manager prior to booking the trip to see if pre trip approval is required. Authorized Pre-Trip Approval must be submitted with all expense reports and must include an estimate of total trip cost including airfare, lodging, transportation, meals, and other expenses.
Expenses must be detailed by category and date (e.g., lodging, meals, phone, etc) and recorded under the correct general ledger and cost center account numbers.
All lodging related expenses must be categorized. Lodging expenses on bill must be itemized by expense type (e.g. meals, telephone, wireless, etc.).
Meals / entertainment items must be indicated as breakfast, lunch, or dinner, and noted as individual meal or a meal with an internal (Jarden employee) or external (supplier, customer) partner(s).
Employees must keep copies of their expense reports and receipts submitted until the expenses are reimbursed by the Company. Individual expenses may require longer records retention periods.
Completed expense reports must be signed by the submitting employee prior to submission for management approval as required by this Policy.
Expense Report Filing Timing
Expense reports must be submitted no later than 30 days after returning from trip or incurring a business expense.
Expense reports submitted after the 30-day period may require respective second level manager or Sr. Management Team’s signature approval.
Expense reports submitted 60 days or more after returning from a trip or incurring a business expense must be approved by the respective Sr. Management Team.
Receipts / Documentation
The following documentation must be attached to the expense report before reimbursement will occur: Original receipts for expenses equaling $25 and above.
All receipts for high speed internet and wireless access regardless of dollar amount, as required by the IRS. Airfare documentation must contain an airfare invoice, and a “passenger receipt” indicating proof of payment. An
acceptable “passenger receipt” is the corporate card statement or travel itinerary clearly stating travelers name and flight information.
An itemized hotel bill.
Any required pre trip approval for trips requiring air travel.
Any other supporting documentation if applicable (e.g., Sr. Management Team approvals, etc.)
Corporate Card Statement reflecting charges for submitted expenses (you may be required to access your card statement online in order to expedite the processing of the expense report.)
Lost receipts: Expenses missing a required receipt must be noted as a “lost receipt” on the expense report and initialed by the employee’s manager.
Currency Exchange Rates
International expenses will be translated on the corporate card statement. For expenses paid in cash, a receipt for the foreign currency exchange rate or other proof of the cash conversion exchange rate should be included with the expense report submission.
Reasonable bank service transaction fees will be reimbursed for obtaining cash from ATM’s for incidental business expenses while travelling abroad.
Credits / Refunds
If an employee receives a refund or credit from a supplier for an item that was previously expensed and reimbursed by the Company, this refund / credit must be returned to the Company. Examples of this include airline credits for business trips not taken, pre-registration fees for cancelled training courses, etc.
Credits received must be deducted against the next expense report with documentation of the credit noted. If you do not expect to file an additional expense report within 90 days of receipt of the credit, or the credit exceed expected business expenses, the employee should refund the monies by writing a personal check to the individual’s business unit’s accounts payable department.
Employees that have a corporate card credit balance will only receive a cash refund after requesting it through the Corporate Card Administrator.
Non-Employee Travelers
Expenses related to travel for a spouse, significant other, dependent, or other individual accompanying an employee will not be reimbursed by the Company, except for valid business reasons as approved by the appropriate Sr. Management Team. Approved travel expenses (e.g., airfare, lodging, meals, etc) for these individuals are generally taxable income to the employee, per the IRS guidelines. Jarden’s Human Resources Department should be contacted for additional questions and procedures related to taxability
All authorized non-employee travel that will be reimbursed by Jarden Corporation should be arranged through Jarden’s designated travel agency. This includes reservations for applicants, consultants, meeting attendees and other third parties doing business with or visiting Jarden per any contractual agreements. Job applicants should be reimbursed for their expenses using the standard expense process.
Consultant: Expenses for authorized consultants should not be directly billed to the Company or reimbursed on an
employee’s expense report. A consultant can only be reimbursed for expenses per the terms and conditions of the contractual agreement with the Company.
Approvals
General ApprovalApproval must be obtained from the employee’s manager for business travel and related expenses in order to be reimbursed by the Company prior to incurring the expenses.
An employee’s manager or the cost center manager whose budget the expenses are being charged should approve the expense reports upon submission. A manager’s approval signifies that the expense report is compliant with the policy and that the charges have been verified as legitimate business expenses.
Pre-Trip Approvals
Employees may be required to obtain a Pre-Trip Approval prior to business travel and related expense transaction. The authorization is to be submitted with the employees completed expense report. Email from your manager stating that the trip is approved is an acceptable Pre Trip authorization. While pre trip approvals may not always be required, it is always best practice to confirm with your manager prior to incurring the expense that it is budgeted and in line with the demands of the business. In instances where Pre-Trip Approval’s are used it will significantly help to expedite the Accounts Payable reimbursement process.
First Level Manager / Cost center manager Approval
All Expense reports must be signed by both the employee and either the employee’s first level manager or the cost center whose budget the expense is being charged.
Second Level Manager or Sr. Management Team Approval
Second level manager or Sr. Management Team member must approve expense reports submitted later than 30 days after returning from a trip or incurring a business expense.
Second level manager of Sr. Management Team member must approve an expense report if the Policy limit for meals and entertainment – individual and internal partners (Jarden employees) is exceeded.
The COO must approve all use of non-commercial airline travel.
Travel and Expense Categories
Preferred Travel ArrangerAll business travel arrangements or reservations must be made utilizing the Company approved travel service provider (e.g., Travizon.). Simple, domestic, single destination arrangements must be made using the provider’s on-line booking tool (Res – X). The Company’s approved designated travel agency shall be used in all instances. Travel booked outside of the approved agent must be pre-approved bySecond level management. Seminars or Conferences with pre arranged accommodations would be excluded.
General
All employees who travel will be required to create a “Traveler Profile” to be kept on record with the approved designated travel agency. When completing the profile, the required fields must be completed. The required fields include but are not limited to: Employee Full Name, Passport Information, Employee ID Number, Cost Center or G/L code, Manager’s name, corporate card information, and emergency contact information. It is every employee’s individual responsibility to keep his or her profile current and updated.
Employees with a known medical condition should consult their physician prior to travel to assure that travel will not be hazardous to their health. Travelers should carry more than the necessary supply of medications in the event of any travel delays. All medications should be kept in a carry-on bag and not in checked luggage that could be lost during the trip. Employees should also contact the Jarden Travel Manager for any travel advisories or bulletins 48 hours prior to departure
for information on any developments that may have arisen since the purchase of the tickets. Air Travel
Arrangements for domestic air travel must be booked through the automated on-line booking system as administered by the designated travel agency.
International travel must be booked directly with the designated agency unless otherwise specified.
The designated agency will confirm the lowest available airfare for the travel route(s) and travel time(s) requested by the employee. Tickets purchased outside of the Policy (e.g., internet travel sites, airline travel sites, etc) will not be reimbursed except with prior Sr. Management Team written approval. Should a lower fare become available in the period between booking and the travel date, the designated approved agency will use all commercial reasonable efforts to obtain the lower cost fair and rebook the ticket at the lower fare.
All air travel shall be by commercial airlines, except for airline charter services approved by the COO. Air Travel Procedures
Employees are required to accept preferred carriers offered by the designated travel agency.
Tickets should be booked at least 10 days in advance, if possible, to take advantage of booking discounts. The chosen fare must be within $100 of the lowest available fare offered through the approved agency or online booking tool. Employees must book air travel through the approved automated booking system or authorized agency.
Non-refundable but exchangeable discount fares should be strongly considered for air travel when there is a low probability of cancellation by the employee.
The use of Saturday night stays to reduce air travel cost is permitted provided the additional cost results in overall net savings to Jarden. The Company will reimburse expenses according to IRS guidelines:
o Weekend stays must be in the same city where the business was conducted or will not be reimbursed.
o Weekend expenses must be for the employee only.
o Only eligible expenses (Lodging, meals, and ground transportation) will be reimbursed for weekend stays.
o Supporting documentation for the weekend expense(s) must include a statement showing support details for staying through the weekend.
The employee must pay for any additional airfare incurred for any personal portion of a business trip. Air Class of Travel
Employees must fly Coach Class for flight times less than 6 hours unless the employee is upgraded at no additional cost to the company.
Employees and their managers are responsible for determining best class of service on flights lasting longer than 6 hours in duration. Jarden Corporation does not restrict use of Business Class but only allows its use when it is financially feasible per individual segment or business unit travel budgets.
All employees traveling internationally on flights greater than 6 hours may fly Business Class, pending Pre Trip approval stating the upgrade is approved and within the individual managers travel budget. Under no circumstances may first class be substituted for Business Class unless there is no additional cost to the Company. If Business class accommodations are not available, the employee must travel Coach class.
Under no circumstances may an employee downgrade from any higher class of service (i.e., First, Business, or full-fare Coach classes) in order to obtain personal benefits such as taking family members on business trips, cash reimbursements, etc.
Air Travel Restrictions
Travel together by key individuals is restricted as follows:
Good judgment should be exercised when making travel arrangements for all levels of management as it pertains to shared methods of transportation.
It is the responsibility of the most senior Jarden manager at any Jarden function requiring travel by a group of employees (e.g., annual meetings, team building activities, etc.) to work with the designated travel agent to ensure compliance.
Frequent Flyer Mileage
The employee may retain business-related frequent flyer program benefits. However, participation in these programs must not influence flight selection resulting in incremental cost to the Company beyond the lowest available fare as defined in this Policy. Lost, Unused, Changed, and Reissued Airline Tickets
Electronic ticketing is the preferred method of booking airline travel within Jarden.
Lost paper tickets must be immediately reported to the appropriate travel agency / airline so the appropriate claims may be filled.
Unused nonrefundable tickets must be returned to the designated travel agency. In the case of E-tickets, the agency must be notified within 7 days of the incident.
Changed or Reissued tickets must be booked through the original ticketing agency. Calling the designated agency is required for assistance in completing this activity. For international tickets, they must be reissued or changed in the same manner, except if the trip is in progress and it becomes unmanageable to reissue the ticket through the designated agency in a timely and efficient manner.
Ground Transportation Rental Vehicles
All vehicle rentals must be booked through the automated booking system administered by the designated travel agency Vehicles may be rented when away from your normal place of work where the cost of renting the vehicle is less than the use
of taxis or other forms of transport.
Jarden has a primary agreement with National Rental Car and a secondary agreement with Avis for those instances in which National is unable to support our business requirements. All vehicle rentals must utilize these contracts. Vehicles rented outside the Policy without Second level management approval will not be reimbursed.
Insurance should be declined when renting cars within the United States of America. For all international car rentals outside the continental U.S., including Canada and Mexico, lost damage waiver (LDW), theft, and liability coverage should be purchased whenever available.
The most economical (mid-size / compact) car consistent with the business need should be rented. Premium or specialty vehicles are not acceptable unless received as part of an upgrade at no additional cost to the Company.
Fuel plans should be declined as employees should make every effort to refuel the vehicle prior to returning the vehicle. Employees renting vehicles for personal use may utilize these rates in the negotiated agreements for vehicle rentals, but
insurance is not covered for these personal rentals. Employees looking to utilize these rates for personal use should consult their insurance company prior to renting.
Private Car and Shuttle Services
Transportation (other than taxi cabs and public transportation) to and from airports must be approved prior to booking through the designated travel agency.
Good business judgment should be used for selecting the most effective transportation method (e.g., private car service (limo), shuttle service, rental car, personal car, etc) with consideration given to the length of trip, cost and travel time. Pre – approval must be obtained for use of private car service.
Car and shuttle services must be charged to employees corporate card. Personal Vehicles
Employees are eligible for mileage reimbursement when a personal vehicle is used for business travel.
The Company will reimburse for mileage to attend a business meeting / function at the Jarden established mileage rate per the Jarden Human Resources Policy guidelines.
The employee is responsible for complying with their residing state financial responsibility rules or maintaining personal auto liability insurance and retaining a valid driver’s license where required when operating a personal vehicle.
Rail
If a business trip requires travel by rail, the employee may use Coach or Business class. The trip must be booked through the designated travel agency where applicable.
Lodging
Lodging reservations must be booked through the automated travel booking system administered by the designated travel agency.
Only actual costs for the lodging that are reasonable and customary for that area will be reimbursed.
Jarden has established a Hotel Directory which reflects all discount rates that are currently available to all Jarden Employees. The Hotel Directory can be accessed via the Jarden Corporation Travel site at www.travizon.com/jarden.
Reimbursement for lodging is limited to the single room rate.
Employees may be required to share a room with another Jarden Employee should room availability or events dictate. While staying at hotels, it is expected that employees will use the most cost effective method of telecommunications. (e.g.,
The company will not reimburse “no show” fees if the employee fails to cancel a guaranteed reservation without a legitimate reason. A cancellation reference number should always be obtained to avoid question.
Meals and Entertainment General
Business meals and entertainment or Company sponsored events are considered “work related” even if conducted outside the workplace and/or during non-work hours. Anytime and anywhere business is conducted or social functions include Company personnel, Company policies and procedures apply.
At events where alcohol consumption is permitted, employees must know when they have had enough and should a problem or issue arise, intoxication is no defense.
Meals and Entertainment – Individual and Internal Partners (Jarden Employee)
The suggested amounts are not an allowance but guidelines for actual costs incurred per meal. Employees should
always try and use good judgment when purchasing meals,
Meal Costs must be reasonable and customary. The Company guidelines are US$85 per day for three (3) meals as noted below:
Breakfast: $15
Lunch: $20
Dinner: $50
Amounts incurred for beverages and appetizers while waiting for a meal are inclusive in the cost of the meal. Tip is included in the recommended amounts. A tip should not exceed 18%.
For employees travelling out of the office, the amount suggested for each meal is a recommended guideline with the requirement that the $85 daily total not be exceeded.
For those employees with partial day travel or not travelling away from the office the individual meal guidelines apply.
Exceptions to guidelines noted above require Second level manager or Sr. Management Team member approval.
Meals with other Jarden employees are subject to specific IRS informational requirements that must be noted on the expense report. These include:
o Amount and description of expense
o Time and Place
o Specific business purpose
o Attendees (name, title, business relationship)
Meals and Entertainment – Jarden External Partners (Suppliers, Customers, etc)
Good business judgment must be used for meal costs incurred in dining / entertaining Jarden customers and other external partners. Expenses should not be extravagant or lavish.
Meals with external partners, including customers, suppliers, etc., are subject to specific IRS informational requirements that must be noted on the expense report. These include:
o Amount and description of expense
o Time and Place
o Attendees (Name, Title, Business Relationship)
IRS requires that meals and entertainment with Jarden spouses or significant others must have a clear business purpose for the spouse to be in attendance
Medical Assistance During International travel
Jarden Corporation has contracted with International SOS Emergency Services. International SOS is a service to be used to help locate and find medical assistance when travelling outside of the country. An SOS Medical Card should be obtained prior to any international trip. Please contact Rich DiPietro, Manager, Benefits or your local travel coordinator for Jarden Corporation prior to any international travel for a international medical card.
Laundry / Dry Cleaning
Expenses incurred for laundry and dry cleaning services are reimbursable if the business trip lasts longer than 5 consecutive days. Tips / Gratuities
Gratuities and tips for porters, bellman, housekeeping services, taxis, etc., must be reasonable and customary. Please check with local customs for appropriate tipping and gratuities guidance when travelling abroad. Lavish or unreasonable tips or gratuities will not be reimbursed
Policy Exceptions – Non-Reimbursable Expenses
Jarden will not reimburse the following expenses. Please note that this list is not all-inclusive. If you have questions about an expense, please clarify with your manager before incurring. If you incur expenses related to any of the following, you are personally responsible for the full cost.
Air Travel Exceptions
Business class for domestic flights outside of this Policy
Airline club memberships or lounge fees, unless pre-approved by your manager for those individuals whose jobs require over 50 percent air travel
Flight Information Guides
Upgrade certificates (unless used to purchase ticket upgrades for specific flights to fly Business Class as established by this Policy. Booklets of certificate upgrades will not be reimbursed.)
Expenses related to personal activities (e.g., sightseeing, personal side trips) Non-business related stopover expenses
Air phones (except in emergencies) Frequent Flyer program fees
Personal / private aircraft expenses (unless approved by COO) Helicopter Services
Excess baggage charges unless required for Company business (e.g., bulky materials, equipment, Company records or property)
Additional car insurance (except for international travel as specified in this Policy) Phones in car service vehicles or limousines
Locksmith fees for Company, personal, or rental vehicles Fines or penalties for Law violations
Repairs to personal car used for business activities Car washes for personal cars
Rental of motorcycles Lodging
Additional charges for room upgrades, poolside rooms, or concierge floor In-room movies
Personal / Entertainment
Salon or spa fees (e.g., saunas, massages, treatments, etc.)
Personal entertainment fees (e.g., in-room / flight movies, personal reading materials, etc.) Barber / Hairdresser fees
Tobacco products
Rental of tuxedos or other formal wear (unless required for a Company sponsored event and with prior approval from your manager)
Extravagant entertainment expenses
Entertainment or other expenses that are inconsistent with Jarden’s image (e.g., adult entertainment) Other Non-Reimbursable Expenses
Gifts to customers, suppliers, foreign subsidiary hosts, etc.; unless approved by a Sr. Management team member Cash Advances
Loss / Theft of vehicles
Medical, dental, or prescription services if not covered by Company Insurance (except international emergency medical expenses)
Purchase of clothing, luggage or toiletries (except for emergencies)
Professional licensing fees not directly related to the employee’s position unless preapproved by manager (e.g., state licensing fees for non practicing attorneys, CPA’s, real estate agents, etc.).
Babysitting / Dependent care Pet care expenses (e.g., kennel fees)
Home maintenance expenses while traveling (e.g., house cleaning, house sitting, etc.). Contributions / donations to charitable / other organizations
Personal credit card fees
Corporate Card delinquent payment fees and interest charges
Charges not supported by a valid receipt (e.g., the perforated bottom of a restaurant receipt is not acceptable
Business travel and related expense items charged to anything other than the Jarden corporate card, except in instances where the Jarden corporate card is not accepted
Appendix
Travel and Expense Policy Questions
Questions related to the travel policy should be directed to the Sr, Manager, Global Supply Chain at mtetro@jarden.com
For questions about arranging travel, creating employee profiles, arranging travel please log onto: www.travizon.com/jarden
International SOS Medical Assistance: Contact Jarden Corporation Manager, Benefits at rdipietro@jarden.com Approved:
_________________________________ J. David Tolbert
Senior Vice President, Human Resources and Corporate Risk
