Oscar R. Contreras - Page 3

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          expenses, as described in those policies, incurred for authorized           
          business activity (allowable reasonable expenses).  The allowable           
          reasonable expenses included:  Air transportation paid by the               
          employee, hotel/lodging, ground transportation, employee meals,             
          and business meals/entertainment.  With respect to allowable                
          reasonable expenses for ground transportation, the FedEx policies           
          used the prevailing Internal Revenue Service (IRS) mileage rate             
          (IRS standard mileage rate) as the basis for reimbursing employ-            
          ees who used their personal vehicles for authorized business                
          activity.4  The FedEx policies required management approval for             
          all reimbursements for allowable reasonable expenses.                       
               In order to be reimbursed under the FedEx policies, FedEx              
          Worldwide Services required employees, inter alia, to provide               
          receipts, as follows:                                                       
               Original receipts are required for all travel and                      
               entertainment expenses of $10 or more.  An original                    
               receipt is documentation prepared and given by the                     
               service provider.  Receipts must include the date and                  
               dollar amount of the provided service.  Receipts are                   
               subject to the following rules:                                        
               •    Original credit card receipts should be used to sub-              
                    stantiate expenses.  Where credit card receipts are not           
                    available, a receipt prepared by the provider is suffi-           
                    cient if it bears the provider’s name, date, and ex-              
                    pense amount.                                                     
               •    Receipts must not be altered.  (Tips must be noted                

               4Under the FedEx policies, employees did not receive reim-             
          bursement for gasoline expenses for personal vehicles used for              
          authorized business activity or for mileage, parking fees, and              
          tolls incurred in commuting to and from work.                               





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Last modified: May 25, 2011