Corporate Travel Policies
and Procedures
May 2008
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I. Introduction
This document establishes Independent Health's policies governing the reimbursement of
travel, conference, training, and entertainment expenses incurred during the course of
conducting company business. It is Independent Health's policy to reimburse employees
for ordinary, necessary and reasonable travel expenses when directly connected with or
pertaining to the transaction of company business once the employee has returned from
their trip and has filled out the necessary expense reports. Employees are expected to
exercise prudent business judgment regarding expenses covered by this policy. When
submitting expense reports for reimbursement, employees are expected to neither gain nor
lose financially.
Reimbursement for expenses that are not in compliance with this policy requires the written
approval of the President or an Executive Vice President.
II. Responsibilities and Enforcement
Independent Health employees who incur travel expenses are responsible for complying
with this policy. Employees submitting expenses that are not in compliance with this policy
risk delayed, partial or forfeited reimbursement.
Executive management/senior management with pre-established approval authority are
responsible for assuring that all Independent Health policies detailed herein have been
adhered to prior to approving employee expense reports. Any deviations must be
explained on, or attached to the expense report with the approval of the reviewer indicated.
It should also be noted that reimbursement of these expenses might be delayed or denied
as a result of an audit of such expenses.
The accounts payable department of each Independent Health entity is responsible for
ensuring that any expenses reimbursed or paid for by Independent Health are in
compliance with this Independent Health Travel Policy. In the same regard, each
department head/senior manager should also be aware of what they are approving
Development of this travel policy, including ensuring its distribution to all travelers, travel
coordinators, senior management, newly-hired employees expected to travel, and accounts
payable staff, is the responsibility of the Executive Assistant/Travel Coordinator.
Independent Health's Travel Policy has been discussed with its preferred travel agency,
and they have been instructed to see that it is followed.
Any questions or concerns regarding this travel policy should be addressed to the Travel
Coordinator, at 716/635-3723.
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III. Travel Arrangements
All transportation (air, car, rail) and lodging reservations, (with the exception of lodging
associated with conferences and seminars) including en route changes must be booked
through Independent Health's designated travel agency, The Travel Team, Inc. (unless
prior approval from the travel coordinator has been received) (See Attachment I). Lodging
for conferences/seminars may be booked by the administrative assistant for the traveler.
The Travel Team may, at their discretion, contact the traveler directly to verify information,
discuss itineraries, etc.
The Travel Team, Inc. is also the sole authorized source for making arrangements for
group or meeting travel. Any department planning to sponsor group or meeting travel
involving ten or more participants should identify the event to the Travel Coordinator to
ensure that available negotiated discounts are applied.
All employees expected to travel at least twice per year should submit a completed
Traveler Profile form (See Attachment II) to Independent Health's travel department to
ensure that pertinent details and preferences are adhered to in the reservation process.
This information will be relayed to The Travel Team, Inc. and will be held in strict
confidence.
Please note: Reservations made through any other source requires the prior
approval of the travel coordinator since it may cause the company to lose valuable
management information, as well as anticipated funds from its financial arrangement with
The Travel Team, Inc. Submission of expenses for reimbursement of reservations
made through alternative sourceswithout prior approval are subject to denial.
IV. Air Travel
All employees are expected to travel in coach class. All airline tickets must be booked and
expensed at the lowest available airfare as determined by The Travel Team, Inc. The
following criteria will be utilized to determine lowest available airfare:
Consideration will be given, but not guaranteed, when employees
specify a preferred carrier.
One stop or connecting flights may be required if substantial savings
can be achieved.
The flight's departure or arrival time is within one hour before or after
the requested departure or arrival time.
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Administrative assistants are required to give the travel coordinator up
to three (3) alternatives, in order of preference, utilizing any of the
following websites or websites of comparable nature:
www.travelocity.com, www.orbitz.com, or www.expedia.com.
Employees traveling on behalf of Independent Health may retain airline frequent traveler
program benefits, and are encouraged to apply for these traveler programs. However,
participation in these programs may not result in any incremental cost to Independent
Health beyond the "lowest available airfare," as defined above.
Airline tickets must be charged to the central air travel card accounts as set up by
Independent Health's travel department with the assistance of The Travel Team, Inc. The
passenger coupon (receipt) of the airline ticket must be attached to the employee
expense report on which related trip expenses are detailed, to show that the ticket
has been used.
V. Lodging
Independent Health and The Travel Team, Inc. negotiate preferred rates with certain
hotels. Employees are required to utilize these hotels whenever possible. The Preferred
Hotels List (See Attachment III) will be distributed, as necessary, to all traveling
employees. This list will be reviewed annually and updated as necessary. When
Independent Health employees travel to destinations where negotiated rates are not
available, The Travel Team, Inc. will recommend quality, moderately priced hotels.
Independent Health will reimburse its travelers for the cost of a single room with a private
bath in a moderately priced business class hotel. Reimbursement for other than a single
room requires written permission from the traveler's immediate supervisor as well as the
next higher level of management prior to incurring the expense. Employees with an
American Express corporate credit card should provide a tax exempt form upon arrival and
checking in at the designated hotel to avoid unnecessary taxes charged on the bill. Prior to
travel, the administrative assistant should fax over the tax exempt form for the traveler to
the hotel.
With regard to trade conferences (e.g., AAHP), where a discount arrangement has been
made by the trade association with a particular hotel(s), Independent Health will reimburse
the conference attendee for the cost of a single room at the conference hotel. In the case
where space is no longer available at the conference hotel, Independent Health will
reimburse the conference attendee for a single room in a moderately priced hotel within a
reasonable distance from the conference hotel as recommended by the Travel Team. It is
Independent Health's policy to guarantee hotel rooms for late arrival. Consequently, the
traveler should provide a credit card number when completing the Traveler Profile
form. Employees must cancel the room reservation by 6:00 p.m. (or as per hotel policy) to
avoid a "no show" charge. Cancellations may be made by calling The Travel Team, Inc. If
the cancellation is made directly with the hotel, employees should request and retain a
"cancellation number" as documentation of the transaction. "No show" charges are not
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reimbursable.
Lodging charges are to be billed to employee-held charge cards and reported on the
Independent Health expense report form. The hotel folio bill detailing all charges is
required documentation for reimbursement of lodging charges.
VI. Car Rentals
Cars should be rented by Independent Health employees only when other means of
transportation are unavailable, more costly, or impractical. The use of a rented car must
be justified as a business need and not as a matter of personal convenience. All rentals
should be for intermediate size cars or smaller, unless four or more people are traveling
together. All car rentals must be with the company's preferred vendor or with another car
rental company if a lower rate is available:
AVIS Car Rental
Rate: Intermediate size cars - $56 (Buffalo); $56 (Albany); $75
(LaGuardia) per day, unlimited mileage. Supplemental
charges may apply in certain cities.
However, in the case of conference travel, a regional vendor/off site travel company will be
considered in order to reduce costs. Please note that optional insurance coverage
charges are not reimbursable.
Employees who are allowed use of automobile rentals, must provide a copy of a valid
driver’s license prior to travel and these will be kept on file with the travel coordinator in
accordance with Independent Health’s driving policy.
Independent Health employees are encouraged to refuel rental cars prior to returning them
to the vendor as it will reduce the gasoline cost associated with the car rental charge.
Car rental charges must be documented on the employee's expense report, and the
original car rental contract must be attached to the expense report.
VII. Other Transportation
Independent Health employees may utilize personal cars for business travel when other
transportation is unavailable or uneconomical. The use of personal cars for business will
be reimbursed at the standard rate prescribed by the IRS (as of January 2008 $0.505 per
mile). This mileage allowance covers all auto costs (e.g., gasoline, repairs, insurance,
etc.) other than parking and tolls.
All rail transportation must be in economy class and must be booked by The Travel Team,
Inc. Sleeping accommodations, when necessary, are limited to a roomette or equivalent.
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The cost of taxis to and from places of business, hotels, airports or railroad stations in
connection with Independent Health business activities is reimbursable. Use of taxis is
authorized only when more economical services (hotel vans, shuttles, etc.) are not
available. Receipts are required in order to be reimbursed.
VIII. Meals
Personal meal expenses are those incurred by employees when dining alone on an out-oftown business trip. Personal meal expenses will be reimbursed up to $64 per day.
Variances will be reviewed on a case by case basis.
Local Business meals are those meals taken with clients, prospects or
associates during which a business discussion takes place.
All meal and entertainment expenses must be supported by an original itemized receipt
attached to the Independent Health expense report. (It is the employee’s responsibility to
obtain an itemized receipt).
To be in compliance with IRS regulations, the following information must be included on
employee expense reports as support for all business meal and entertainment expenses:
Name, title and company of all attendees
Name and location of the establishment where the event took
place
Amount and date of expense
Specific business topic discussed (nature of business)
IX. Spouse/Significant Other Travel
Any incremental costs incurred when the spouse/significant other accompanies the
employee on a business trip or conference are the sole responsibility of the employee.
Reservations for the spouse/significant other can be coordinated in conjunction with the
employee's reservations; however, the travel coordinator will not make any personal travel
arrangements and airline charges for the spouse/significant other will not be billed to
Independent Health's corporate air travel charge card. It is expected that the employee will
provide a personal charge card number/alternate method of payment to The Travel Team,
Inc. for any spouse/significant other travel arrangements if they choose to go with this
travel agency.
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X. Other Reimbursable Expenses
The following incidental expenses, when directly related to business travel, are
reimbursable:
Tips:
18 percent at restaurants; $1 per bag portage
Parking/tolls
Actual cost (receipts required)
Telephone:
Those employees who have been issued calling cards should
plan to use them for all calls; for calls to Independent Health
plan offices, use of the 800 toll free numbers is strongly
encouraged. (1-800-247-1466).
XI. Payment Methods
Independent Health uses a corporate air travel card system as its principal payment
method for air/rail expenses. It is expected that employees will use cash/personal credit
cards for all expenses associated with their business travel (i.e., hotel rooms, car rentals,
meals, etc.), and seek reimbursement from Independent Health for the appropriate
expenses.
Independent Health employees who expect to incur overnight travel expenses at least
three times per year, or who will incur at least $500 per year in local entertainment
expenses, are eligible to receive reimbursement of up to $50 per year for a personal credit
card membership fee, when the card is to be used primarily for business travel. To seek
reimbursement, the employee must complete an expense report form showing the
membership fee (not to exceed $550), and attach a copy of the credit card statement
showing that the fee is due. Those employees who have a corporate American Express
card are not eligible for reimbursement.
Employees are expected to minimize their use of cash for reimbursable expenses.
Temporary cash advances are available to traveling employees who expect to incur out-ofpocket expenses.
Cash advances are generally limited, unless otherwise authorized, in writing, by the
supervisor. (Advances will not be issued to employees that have not settled a
previously issued advance.)
Cash advances must be settled on the first expense report following return from the
business trip. Settlement consists of reporting the advance on the expense report and
deducting the advance from the final balance due.
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XII. Expense Report Processing
Out-of-town travel is to be reported on the Out-of-Area Expense Report form distributed for
the two-week period closest to the date of travel. A copy of the Independent Health
Expense Report form is included (See Attachment IV).
All expense reports must include the signature of the traveler's supervisor and
department head. Such individuals are expected to audit expense reports for
accuracy and compliance with Independent Health’s corporate travel policy.
Once approval of expenses/reimbursement has been received by the traveler's supervisor
and the accounts payable department, Independent Health’s accounts payable department
will issue a reimbursement check to the traveler. ,
Local travel is to be reported on the Local Travel/Miscellaneous Expense Reports
(See Attachment V). The same instructions for completing the Expense Report apply
to this Local Travel/Miscellaneous Expense Reports.
All receipts must be taped to a separate sheet of paper and stapled to the
Expense Forms. Otherwise, they will be returned to the traveler.
If you are
code has to be assigned to the account number. All department numbers and account
numbers are required on all expense reports. See attached account codes list. (See
Attachment VIII).
XIII. Other
A.
Airline club memberships
Airline club memberships (e.g., US Air Club) must be approved by one of the
Executive Corporate Officers.
B.
Changes in Airline tickets
Changes in airline tickets/itineraries resulting in additional charges and made solely
for the convenience of the traveler, are not reimbursable.
C.
Trip authorization forms
All conference travel must be pre-authorized, in writing, in order for the travel
department at Independent Health/The Travel Team, Inc. to process any
reservations (See Attachment VI). A Travel/Conference Authorization Form
(See Attachment VII) must be completed by the traveler and approved by a
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representative of the Executive Team and their immediate supervisor.
D.
Upgrades
Any cost associated with upgrading travel reservations is the sole responsibility of
the traveler.
E.
Weekend travel
If an employee traveling on behalf of Independent Health elects to travel over a
weekend and a reduction in travel expenses results, Independent Health will
reimburse the employee for lodging (single room only), meals, and automobile
rental.
F.
Corporate Forms
All travel/finance forms are located
Resources/Corporate Forms – Finance.
on
the
Insider
under
Corporate
XIV. President's Approval
The President of Independent Health Association, Inc. shall have the right to approve travel
and travel-related expenses, which vary from the above policy. Whenever possible, these
expenses should be approved in advance.
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Name_________________________________________
I am in receipt of a copy of the Independent Health Travel Policies and Procedures. I
have read this document and agree to abide by said policies and procedures.
Signed_______________________________________
Dated _______________________________________