Expense Reimbursement Policy

1.1 Purpose
This Expense Reimbursement Policy ("Policy") establishes guidelines for expense reimbursement for Automate America contractors and professionals. It ensures fair, consistent, and compliant handling of business expenses incurred in the course of providing services to customers.

1.2 Applicability

This Policy applies to:

• White Glove contractors
• Service Partners with billable expenses
• Contract professionals with pre-approved expenses
• Any individual authorized to submit expenses on behalf of Automate America engagements

1.3 Policy Objectives

• Ensure timely reimbursement of legitimate business expenses
• Maintain compliance with IRS regulations and tax requirements
• Provide clear guidelines to prevent misunderstandings
• Protect both contractors and Automate America from liability

The following categories of expenses are eligible for reimbursement when incurred for legitimate business purposes and pre-approved where required:

2.1 Travel Expenses

• Airfare (economy class, booked 14+ days in advance when possible)
• Ground transportation (rental car, rideshare, taxi)
• Hotel accommodations (standard room at approved rates)
• Parking and tolls
• Airport shuttle or taxi to/from airport

2.2 Mileage

• Personal vehicle use reimbursed at current IRS standard rate
• 2026 rate: $0.72 per mile
• Must provide origin, destination, and business purpose
• Commute miles (home to regular work site) are NOT reimbursable

2.3 Meals & Incidentals

• Per diem rates based on GSA schedules by location
• Actual receipts may be required for amounts exceeding per diem
• Tips are included in per diem allowance (up to 20%)

2.4 Other Eligible Expenses

• Required safety equipment or PPE (when not provided by customer)
• Professional licensing fees (when required for assignment)
• Communication expenses (pre-approved only)
• Required tools or equipment (pre-approved only)
• Training or certification (pre-approved only)

The following expenses are NOT eligible for reimbursement under any circumstances:

3.1 Personal Expenses

• Personal entertainment or recreation
• Alcoholic beverages
• Personal items or clothing (except required PPE)
• Personal phone charges (unless pre-approved for business use)
• Gym or fitness facilities
• Laundry and dry cleaning (except for trips exceeding 5 days)

3.2 Traffic and Vehicle Expenses

• Traffic violations, parking tickets, or towing fees
• Personal vehicle repairs or maintenance
• Vehicle insurance or registration
• Fuel for personal vehicles (mileage rate covers fuel)

3.3 Travel Upgrades

• First-class or business-class airfare (without prior approval)
• Hotel room upgrades
• Premium rental car categories (without prior approval)
• Spouse or companion travel expenses

3.4 Other Non-Reimbursable Items

• Expenses covered by other insurance or allowances
• Lost or stolen personal property
• Expenses submitted more than 60 days after incurrence
• Expenses without proper documentation

4.1 General Requirements

All expenses require:

• Original receipt or digital copy
• Date of expense
• Vendor name and location
• Itemized list of goods/services
• Clear business purpose

4.2 Receipt Thresholds
| Amount | Requirement |
|--------|-------------|
| Under $25 | Receipt not required (but recommended) |
| $25 - $75 | Receipt required |
| Over $75 | Itemized receipt required |

4.3 Digital Receipts

• Photos of receipts are acceptable
• Must be legible and include all required information
• Upload within 7 days of expense
• Retain originals for 90 days

4.4 Lost Receipt Procedures

• Complete a Lost Receipt Affidavit
• Subject to manager approval
• Pattern of lost receipts may result in denied reimbursement
• Maximum 2 lost receipt affidavits per quarter

5.1 Current IRS Rates (2026)
| Purpose | Rate per Mile |
|---------|---------------|
| Business | $0.72 |
| Medical/Moving | $0.24 |
| Charitable | $0.14 |

5.2 Documentation Requirements

• Record starting and ending locations
• State business purpose for trip
• Include date and total miles
• Use mapping software for verification (Google Maps, MapQuest)

5.3 Calculation Rules

• Miles are calculated using standard mapping software
• Round trips count as 2x one-way distance
• Direct route is assumed unless detour documented
• Commute miles (home to regular work site) are NOT reimbursable
• Trips between multiple work sites are reimbursable

5.4 Alternative Transportation

If using personal vehicle is not cost-effective for longer trips, consider:

• Rental car (may be more economical for high-mileage trips)
• Rideshare or taxi (for urban travel)
• Public transportation (fully reimbursable with receipts)

Per diem rates are based on GSA (General Services Administration) schedules for each location.

6.1 Per Diem Components

• Lodging: Actual cost up to GSA maximum (with receipt)
• M&IE (Meals & Incidental Expenses): Fixed daily rate, no receipts required

6.2 Default CONUS Rates
When location-specific rates are not available:
| Component | Default Rate |
|-----------|--------------|
| Lodging | $107/night |
| M&IE | $59/day |
| Total | $166/day |

6.3 First/Last Day Rule

• First day of travel: 75% of M&IE rate ($44.25 default)
• Last day of travel: 75% of M&IE rate ($44.25 default)
• Full days: 100% of M&IE rate

6.4 Meal Deductions
If meals are provided (by customer, at conference, etc.):
| Meal | Deduction |
|------|-----------|
| Breakfast provided | $13 from M&IE |
| Lunch provided | $15 from M&IE |
| Dinner provided | $26 from M&IE |

6.5 High-Cost Areas
Many metropolitan areas have higher GSA rates. Check the GSA website (gsa.gov/perdiem) for location-specific rates before travel.

7.1 Pre-Approval Requirements

The following expenses require pre-approval BEFORE incurrence:

• All travel expenses over $500
• Equipment or tool purchases
• Training or certification fees
• Conference or event registration
• Communication expenses

7.2 Submission Timeline

• Submit expenses within 30 days of incurrence
• Expenses older than 60 days may be denied
• Late submissions require written justification

7.3 Approval Levels
| Amount | Approver |
|--------|----------|
| Under $250 | Direct Manager/Project Lead |
| $250 - $1,000 | Department Finance |
| Over $1,000 | Executive Approval |

7.4 Processing Timeline

• Initial review: Within 3 business days
• Approval/rejection notification: Within 5 business days
• Payment processing: Within 10 business days of approval

7.5 Rejection and Appeals

• Submitter notified with reason for rejection
• May resubmit with corrections within 14 days
• Appeals go to Finance Director
• Final decision within 10 business days

8.1 Prohibited Activities

The following activities constitute expense fraud and are strictly prohibited:

• Submitting false or inflated expenses
• Duplicate submissions for the same expense
• Altering receipts or documentation
• Claiming personal expenses as business expenses
• Splitting purchases to avoid approval thresholds
• Submitting expenses for services not rendered
• Colluding with vendors to create false receipts

8.2 Consequences
| Offense | Consequence |
|---------|-------------|
| First offense | Written warning and expense denial |
| Second offense | Suspension of expense privileges (90 days) |
| Third offense | Termination of contract |
| Criminal activity | Reported to authorities |

8.3 Detection Methods

Automate America employs the following fraud detection measures:

• Automated duplicate detection
• Receipt verification technology
• Random audit selection
• Pattern analysis
• Vendor verification

8.4 Audit Rights
Automate America reserves the right to audit any expense report and request additional documentation at any time. Failure to cooperate with an audit may result in denial of expenses and suspension of privileges.

9.1 Submission Methods

Expenses may be submitted through:

• FEED platform expense module (preferred)
• Email to expenses@automateamerica.com
• Mobile app upload

9.2 Required Information

Each expense submission must include:

• Contract or project reference number
• Category of expense
• Date(s) of expense
• Amount and currency
• Business purpose
• Supporting documentation

9.3 Currency and Exchange Rates

• Submit amounts in USD
• For foreign expenses, use the exchange rate on the date of transaction
• Provide exchange rate source (e.g., bank statement, xe.com)

9.4 Batch Submissions

• Group related expenses by trip or project
• Submit complete batches rather than individual items
• Include summary cover sheet for batches over 10 items

10.1 Expense Support
For questions about this policy or specific expense submissions:

Email: expenses@automateamerica.com
Phone: (586) 770-8083
Hours: Monday - Friday, 8:00 AM - 5:00 PM EST

10.2 Online Resources

• GSA Per Diem Rates: gsa.gov/perdiem
• IRS Mileage Rates: irs.gov/tax-professionals/standard-mileage-rates
• FEED Expense Portal: automateamerica.com/expenses

10.3 Policy Updates

This policy is reviewed annually. Updates will be communicated via:

• Email notification
• Platform announcement
• Updated effective date on this page

10.4 Automate America Contact
Automate America, Inc.
PO Box 1638
Greer, SC 29652