CORPORATE EXPENSE CARD POLICY

INDEX
1.0
2.0
3.0
4.0
5.0
6.0

7.0

8.0
9.0
10.0
11.0
12.0

PAGE NO.
Purpose ............................................................................................................................ 2
Applicability ....................................................................................................................... 2
General Information .......................................................................................................... 2
Program Overview ............................................................................................................ 3
Business Unit Related Policy and Administration .............................................................. 3
Policy on Use for Procurement ......................................................................................... 3
6.1 General Criteria ......................................................................................................... 3
6.2 Procurement Process................................................................................................ 4
6.3 Acquiring an Expense Card ...................................................................................... 6
6.4 The Ordering Process ............................................................................................... 6
6.5 Proof of Purchase Documentation ............................................................................ 7
Policy on Use for Business Travel and Entertainment ...................................................... 8
7.1 General Criteria ......................................................................................................... 8
7.2 Travel Services ......................................................................................................... 8
7.3 Required Documentation .......................................................................................... 9
7.4 Lodging ..................................................................................................................... 10
7.5 Meals ........................................................................................................................ 10
7.6 Entertainment............................................................................................................ 10
7.7 Air Travel................................................................................................................... 12
7.8 Ground Transportation .............................................................................................. 13
7.9 Telephone ................................................................................................................. 15
7.10 Cell Phone ................................................................................................................ 15
7.11 Business Gifts ........................................................................................................... 15
7.12 Travel Expense of Spouses at Meetings or Conventions .......................................... 16
7.13 Miscellaneous ........................................................................................................... 17
Restricted Purchases or Prohibited Transactions ............................................................. 18
Misuse of the Expense Card ............................................................................................. 19
Canceling an Expense Card ............................................................................................. 19
Lost or Stolen Expense Cards .......................................................................................... 20
Cardholder Resources ...................................................................................................... 20

Appendix I - Manager Approval Form

Effective March 1, 2011

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CORPORATE EXPENSE CARD POLICY

1.0

PURPOSE
1.1

2.0

APPLICABILITY
2.1

3.0

The purpose of this policy is to provide guidance regarding the use of Corporate Expense Cards
(herein referred to as the Expense Card') for purchasing goods and services and for travel and
entertainment expenses incurred by employees in the conduct of Saint-Gobain Corporations
(hereinafter referred to as the Company) business. The aim is to provide equitable and effective
standards for properly controlling and documenting the use of such cards and the related
expenses. This policy is also intended to facilitate compliance with Internal Revenue Services
(IRS) requirements and other regulatory authorities with respect to business related travel and
entertainment costs. This policy is not intended to replace nor circumvent existing purchasing
policies and procedures but rather to supplement such policies and take advantage of new
technology, improve compliance with Company policy and preferred supplier lists, and to facilitate
the managers review. Specific internal controls have been developed to limit the potential for
irregularities arising in connection with the use of Corporate Expense Cards and local procedures
should be developed by the business units to support this policy.

This policy is applicable to all Saint-Gobain North America locations. Specific procedures with
respect to purchases and/or travel performed in conjunction with government contracts and when
purchasing goods from vendors outside of the US and Canada should be obtained at the business
unit level.

GENERAL INFORMATION
3.1

The Companys Corporate Expense Card program helps to increase the effectiveness of the
purchasing, accounts payable and business travel & entertainment reimbursement functions, and
provides an efficient means of procurement for employees. Saint-Gobain has consolidated the
administration of the Expense Card program and will use the Expense Card Management Services
(hereinafter referred to as TECC) to review and audit all Expense Card statements.

3.2

Purchases of goods and services and/or travel and entertainment for business purposes, whether
purchased via the Expense Card or traditional methods, are to be made using Procure suppliers
and other preferred suppliers/vendors as approved by the business unit.

3.3

The use of an Expense Card is a privilege and convenience. Expense Cards are assigned to a
specific individual (hereinafter referred to as the Cardholder) and may not be assigned to multiple
users. Expense Cards may not be loaned to any other individual. The Cardholder is the only
person authorized to use the assigned Expense Card and is responsible for all transactions.

3.4

The Expense Card should always be treated with the same level of care as a personal credit card.
The Expense Card should be kept in a secure location, accessible only to the Cardholder. The
Cardholder should guard the Expense Card number carefully.

3.5

The Companys online system for reimbursement of all Expense Card expenditures is the Concur
Travel & Expense (hereinafter referred to as CTE) system. The CTE system may be accessed at

Effective March 1, 2011

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CORPORATE EXPENSE CARD POLICY

http://www.concursolutions.com/default.asp . CTE is to be utilized for submission of all business
related expenditures via the electronic expense report (hereinafter referred to as the Expense
Report).
4.0

5.0

6.0

PROGRAM OVERVIEW
4.1

The Saint-Gobain Corporate Expense Card for North America is a MasterCard issued by
Citigroup (hereinafter referred to as the Bank). The cards are assigned to authorized Cardholders
in order to allow purchasing of goods and services and/or travel and entertainment expenditures for
business purposes. Consolidation of the program under the same system platform will allow for
reporting at all levels of the organization, help assure compliance to preferred suppliers, and
capture spend data for use in future negotiations with suppliers.

4.2

The Expense Card is embossed with the Cardholders name and includes the corporate name of
Saint-Gobain Corporation. The Cardholder is responsible for ensuring that the Expense Card is
used in accordance with the Corporate Expense Card Policy and any local procedures of the
business unit which help to supplement the policy and its adherence. Saint-Gobain may cancel the
Expense Card at any time should it have cause to believe that the Expense Card is not being used
for the stated and authorized business purposes.

BUSINESS UNIT RELATED POLICY AND ADMINISTRATION

5.1

TECC is the expense card administrator (hereinafter referred to as the Expense Card
Administrator) who is responsible for the coordination and administration of the Expense Card
program across the Company.

5.2

The site-controller or business-unit controller is responsible for establishing local procedures for
accurate general ledger coding of Expense Card charges. This may be performed on a default
basis or manually for each charge, but must be sufficiently controlled to ensure accurate account
coding. If default coding is selected, then local procedures should be developed to ensure that
there is an adequate review process in place to review the account coding.

5.3

The charges made to an Expense Card are subject to the same sales tax regulations as any other
accounts payable transaction. If the required sales tax is not charged at the point of sale, the
business must accrue for the tax. Procedures should be put in place to ensure that these charges
are accrued and reported appropriately.

5.4

On a semi-monthly basis, and no later than within twenty-one (21) calendar days of your Expense
Card purchase, the Cardholder shall create an Expense Report within CTE. Any disputes with the
Bank should be handled independently by Cardholder and payments should not be withheld, not
withstanding disputed amounts that have been reported to the Bank.

POLICY ON USE FOR PROCUREMENT

6.1

General Criteria
6.1.1

Effective March 1, 2011

The Expense Card should be used for authorized procurement business transactions
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totaling $500 or less and is the strongly recommended form of payment for the purchase
of goods and services (i.e., procurement) that cost less than $1,000. The Expense Card
is the only approved method of payment for all business related travel and entertainment
purposes, except in the rare instances where it may not be accepted.

6.2

6.1.2

It is Company policy that Cardholders may use the Expense Card for business
transactions only and may not be used for items of a personal nature and other prohibited
card transactions described hereinafter. Use of the Expense Card for personal purchases
is strictly prohibited and subject to disciplinary actions in accordance with Section 9.0 of
this policy.

6.1.3

Certain Merchant Category Codes (MCC) have been restricted by the Company to
prohibit the use of the Expense Card with designated types of merchants. The Expense
Card may be used with suppliers accepting the Expense Card in accordance with the
MCC supplier limitations established by the Company. This control helps to prevent the
inappropriate use of the Expense Card. All requests for additional MCC should be first
approved by the business unit controller, and then forwarded to TECC. Depending on the
MCC requested, additional approvals may be required.

Procurement Process
6.2.1

The Expense Card simplifies both the procurement and disbursement processes. When
you make a purchase, in person, by phone or over the internet, the vendor requests a
purchase authorization at the point of sale. The transaction is then validated against preset limits established by the Company, based on input from the business unit leadership
(controller, general manager, president). The Expense Card Administrator, at the
instruction of the business unit leadership, has the capability to modify limits within the
context of existing delegation of authority at a local level and local purchasing policies.

6.2.2

Cardholders are authorized to use the Expense Card with Procure program suppliers and
Saint-Gobain preferred suppliers, as approved by the Company or business unit.
Transactions with suppliers not designated as pre-qualified under the Procure program or
as a preferred supplier may be subject to additional reporting requirements and should
first be approved by the Delegation Procurement group. Purchases of this nature
identified during the audit process will be reported back to the cardholder and the
business for corrective action.

6.2.3

Transactions are instantaneously approved or declined based on the following Expense

Card authorization criteria:

6.2.4

Effective March 1, 2011

Credit card spending limit

Approved MCC

When the Bank pays the vendor for these transactions, the charges are loaded into the
CTE system and can be viewed immediately within your CTE account.

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6.2.5

Each Cardholder must obtain original invoices, itemized receipts, order confirmations, or
other supporting documentation (documents detailing price, quantity and payment
method) to substantiate each purchase (hereinafter referred to as Receipts) and submit
with their Expense Report created in CTE.

6.2.6

On a semi-monthly basis, and no later than within twenty-one (21) calendar days of your
Expense Card purchase, the Cardholder shall create an Expense Report within CTE:

For those transactions where the line item does not provide a clear description of
the purchased item, the Cardholder shall insert the description within the line
item under Comments.

For the following purchases, each Cardholder is required to enter the name of
the individual that requested the purchased item within CTE under Comments.

Computer software, hardware, and accessories

Camera and electronics

Power and hand tools

Any item considered unusual in nature

Mail completed Expense Report, along with original receipts, for review and audit
to TECC. Mailing address is:
Saint-Gobain Corporation TECC
125 SW 3rd Place, Suite 311
Cape Coral, FL 33991

If there is a discrepancy with any purchase, the Cardholder is responsible for

resolving any unidentifiable transactions or discrepancies directly with the
supplier/vendor. If Cardholder is unsuccessful in this effort, they will need to
begin the dispute process with the Bank. All discrepancies should be resolved
within 30 days upon receiving the statement of account. If a discrepancy is not
resolved timely the Cardholder might be liable for the interest and fees charged
to the card.

6.2.7

In the rare case where a receipt is lost or unavailable, the Cardholder must note in the
Comments section of the expense line item an explanation of the expense and the reason
for the missing receipt.

6.2.8

TECC will review each Expense Report to ensure that adequate supporting
documentation has been submitted and that policy is being followed. Repeated
deviations from the policy or misuse of the Expense Card may result in consequences
including but not limited to suspension of card privileges and/or termination (see Section
9.3).

6.2.9

Once approved by TECC, the Cardholders manager/supervisor must approve the

Expense Card purchases, using the CTE system. The manager/supervisor shall review

Effective March 1, 2011

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and approve all purchases for (i) legitimacy of business purpose (i.e., does the charge
appear consistent with a business need/purpose particularly as it relates to the individuals
job function); (ii) reasonableness of expenditures (i.e., given the user and the business
need/purpose, does the amount of the expenditure appear reasonable); and (iii)
agreement with charged amounts. If a business unit requires additional approvals by a
functional department other than the Cardholders department, local procedures will be
required to accommodate this additional approval requirement.
6.3

6.4

Acquiring an Expense Card

6.3.1

Saint-Gobain employees, who routinely purchase for the Company, can be designated by
their manager/supervisor to receive an Expense Card as should personnel who travel on
Company business or entertain for business reasons. Contract employees are prohibited
from obtaining an Expense Card.

6.3.2

Individuals must complete the online application form and sign a Cardholder Agreement
Form before they can receive their card. The Cardholder is required to read the Corporate
Expense Card Policy and agree to adhere to all Saint-Gobain Corporate Expense Card
policies and procedures.

6.3.3

Newly hired employees or infrequent travelers who have not yet been issued an Expense
Card must have airline and train tickets purchased by their manager using his or her
Expense Card. The manager must then submit an Expense Report for reimbursement.

The Ordering Process

6.4.1

Effective March 1, 2011

The Expense Card may be used to purchase goods in person at the suppliers site, over
the phone or Internet, via fax, or by mail. When placing your order:

Identify yourself as a Saint-Gobain employee and that you are using a Company
Expense Card.

Inform the supplier that they are not to send a bill or invoice to accounts payable,
but to provide such documentation to the Cardholder to substantiate the
purchase.

Provide Cardholder name.

Provide individual Expense Card number.

Provide expiration date on the card.

Provide delivery address.

Provide description of goods to be ordered and confirm prices.

Confirm that the total order including shipping and handling does not exceed
your single-purchase limit.

Provide any other information necessary to make the purchase.

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Note: For phone/catalog orders, always ask the supplier to include a sales receipt in the
package.

6.5

6.4.2

Upon receipt of your order, keep the documentation received from the supplier (typically a
sales receipt or packing slip with pricing information) for CTE expense reporting (refer to
Proof of Purchase Documentation in Section 6.5 below).

6.4.3

Cardholders will have immediate access to a listing of completed transactions via the CTE
system. Check this report against your sales receipts and packing slips to ensure that
you have received everything for which you have been charged prior to submitting with
your Expense Report for reimbursement.

6.4.4

It is the responsibility of each Cardholder to verify the accuracy of the charges. The
Cardholder is also responsible for ensuring receipt of goods, and for following up with the
vendor to resolve any delivery problems, discrepancies or damaged-merchandise
concerns. All documentation pertaining to the purchase (receipts, invoices, packing slips,
shipping docs, etc.) must be retained and submitted with your Expense Report.

Proof of Purchase Documentation

6.5.1

With the authority to purchase comes the responsibility for maintaining adequate
documentation at the source of the transaction.

6.5.2

Original documentation must support the legitimate business purpose of all transactions
made with the Expense Card. Documentation must include the name of the supplier,
location, date, dollar amount and payment method. The following are examples of
supporting documentation:

detailed cash or sales receipts

packing slips with a dollar amount

statement of work reports from suppliers, including quantities and pricing

photocopies of software mail-order forms or order confirmations, including

quantities and pricing

6.5.3

Adequate documentation must be maintained to substantiate the transaction, including

quantities and pricing, as well as the business purpose. Cardholders must forward all
supporting documentation (including credits to the Expense Card) to TECC. These
Receipts assist in the verification of the online transaction and proper allocation of the
purchase. Failure to meet audit standards may result in the loss of Expense Card
privileges.

6.5.4

Expense Card charges to third-party payment providers (like PayPal) require a statement
of business purpose and inclusion of the originating order paperwork. Note in your
Expense Card report what the expense entailed and why it is a Company expense, along
with the suppliers name if it is not included on the Receipts. While it is company policy to

Effective March 1, 2011

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purchase from Procure suppliers and other preferred suppliers as designated by the
business unit and Company, it is understood that sometimes Expense Card holders must
use on-line auction sites and other merchants using third-party payment providers if such
goods are not directly available from preferred suppliers.
6.5.5

7.0

Foreign exchange/currency conversion rates associated with international charges will be

reflected in your transaction list. This conversion rate may facilitate reconciliation of
expenses. If you need assistance with obtaining this information sooner, you may contact
the Expense Card Administrator.

POLICY ON USE FOR BUSINESS TRAVEL AND ENTERTAINMENT

7.1

General Criteria
7.1.1

7.2

It is Company policy that only travel and/or entertainment expenses that meet the
following criteria will be reimbursed:

The expenses are ordinary and necessary to the conduct of Company business.

The expenses are reasonable and neither lavish nor extravagant under the business
circumstances and left to managers discretion.

The expenses are supported by proper documentation and receipts as defined in the
policy.

The expenses are submitted for reimbursement within 21 days of being incurred.

7.1.2

In order to ensure timely payment of Expense Card charges, an Expense Report should
be submitted semi-monthly or no later than 21 days after expenses are incurred. [Do not
submit multiple Expense Reports on the same day (expenses and/or trips should be
combined whenever possible).]

7.1.3

For purposes of the business travel and entertainment portion of this policy and its
application within the Company, business travel is defined as a business related trip
(outside of the normal daily commute) requiring (i) the employee to travel 100 miles or
more in one day and/or to stay overnight at least one night, or (ii) to incur expenses in the
pursuit of company business over and above the normal expenses the employee would
incur.

Travel Services
7.2.1

Effective March 1, 2011

Saint-Gobain has implemented an online travel booking system called Concur Cliqbook
Travel (hereinafter referred to as Cliqbook). The web link for this service is
http://www.concursolutions.com/default.asp . It is expected that travelers will use this tool
for all point-to-point round trips and uncomplicated itineraries, as there is a significant
discount on the agency fee for online booking. For complicated itineraries, it is
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recommended that travelers book their travel through the Company-approved travel
agency.
7.2.2

BCD Travel (hereinafter referred to as BCD) is the Company-approved travel agency for
all North America-based locations. BCD is known worldwide and has a network of
locations - Company-owned and affiliated - to service the travel needs of employees
located throughout North America. The telephone number for BCD is 866-787-7511
(business hours of operation of 8:00am-8:00pm ET, Monday Friday).
All business travel must be arranged through either the Saint-Gobain Cliqbook online
system or BCD. Airline tickets purchased by any other means will not be reimbursed. Due
to ever increasing security issues and the need to locate employees in the event of
emergency or natural disaster it is important that business travel be arranged through
Cliqbook or BCD.

7.2.3

7.3

A travel agency reservation fee will be charged directly to the Expense Card of the
traveler for each airline or train ticket arranged through either the Cliqbook online system
for domestic air travel or by calling BCD for complex travel arrangements. As of August
2013, the fees are $10.75 and $37.00, respectively for the US; 20.91 CAD and 50.85
CAD, respectively for Canada. The travel agency reservation fee will appear at the bottom
of each e-mailed invoice and on the monthly Expense Card statement. Either will be
acceptable as receipt for the agency reservation fee.

Required Documentation
7.3.1

Reimbursement claims for travel and entertainment must be made using CTE and must
be supported by proper documentation, including original itemized receipts and proof of
payment receipts or e-receipts containing the date of expense as well as the name and
location of the establishment or service provider, and complete explanations of expenses
incurred. Regardless of the dollar amount, original receipts must be submitted for every
expense that was paid for by any means other than the Expense Card. For Expense Card
expenses under $25.00:

U.S. Cardholders require no documentation.

Canadian Cardholders are required to submit original tax receipts for all
expenses submitted within the system due to Canadian VAT, GST and PST
tracking and reclaim requirements.

An itemized receipt shows each individual item comprising a bill and, generally, the
corresponding charge for each item. For example, the itemized receipt for a meal shows
each item of food or drink ordered, as well as taxes and service charges, if applicable.
7.3.2

Effective March 1, 2011

In addition to the documentation requirements noted in Section 7.3.1, all entertainment

expenses must be supported by a complete description of the nature of the expenses;
names and affiliations of the people involved; purpose of the entertainment; and name
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and location (city and state/province) of the establishment to which the payment was
made.

7.4

7.5

7.3.3

In the rare case where a receipt is lost or unavailable, the traveler must note in the
Comments section of the expense the reason a receipt was not available. Failure to
provide this notation may delay and/or preclude reimbursement.

7.3.4

Certain expenses including but not limited to travel and/or entertainment of spouse;
Company-leased vehicle repair and/or maintenance; customer trips, outings and/or award
trips (subject to the Business Gifts Policy); business phone/ISP expenses and in-home
entertainment require written manager and/or business unit president approval. This
approval must be documented on the Manager Approval Form available in Appendix I of
this policy or through e-mail communication and through CTE. Failure to supply an
approval with the related Expense Report may delay and/or preclude reimbursement.

Lodging
7.4.1

Lodging costs should be reasonable for the area visited. Wherever possible,
accommodations where corporate discount rates have been negotiated should be used.
As noted in Section 7.2, all reservations must be made through the Saint-Gobain Cliqbook
online system or BCD.

7.4.2

Travelers must cancel guaranteed reservations by the deadline specified by the hotel to
avoid any penalties for no cancellation. In the absence of appropriate and timely
cancellation the employee may be held responsible to absorb any additional expense.

7.4.3

The original hotel folio showing itemization of the charges as well as the total paid must
be provided in support of lodging.

Meals
7.5.1

The Company will reimburse traveling employees (see Section 7.1.3 for definition of
business travel) for the reasonable cost of meals. Approving managers are responsible for
verifying the reasonableness of reported meal costs.

7.5.2

Entertainment of one employee by another at Company expense must be essential for the
business purpose.
The most senior employee present must assume responsibility for paying the bill related
to such entertainment.

7.6

Entertainment
7.6.1

Effective March 1, 2011

To comply with IRS rules, it is essential that travelers precisely describe the business
purpose of entertainment. As noted in Section 7.3.2, all entertainment must be supported

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by itemized receipts and proof of payment receipts, details regarding names and
affiliations of those attending, and the location at which the entertainment took place.
7.6.2

The IRS limits the tax deduction of expenditures for entertainment to those expenses that
are either "directly related to" or "associated with" the active conduct of the Company's
business.

Directly related entertainment involves a business discussion or negotiation that looks

forward to income or other business benefit at some specific time; business must be
actually conducted during the entertainment period.

Associated entertainment may be deductible if directly preceded or followed by a

substantial and bona fide business discussion with a clear business purpose in
making the expenditure.

7.6.3

There are some forms of entertainment that the Company considers to be inappropriate
and not in keeping with Saint-Gobains global Principles of Conduct & Action as well as
Saint-Gobain North Americas Code of Ethics and Business Conduct Guidelines.
Therefore, expenses incurred at establishments where such entertainment takes place
will not be reimbursable regardless of IRS rules and the employee will be disciplined, up
to and including termination of employment. It doesnt matter who pays for the
entertainmentyou personally, a customer, supplier or co-worker. This kind of activity is
inconsistent with our company values and is not permitted during work hours or while
traveling on company business. Such establishments include, but are not limited to, those
popularly known as "gentlemen's or women's clubs," "adult entertainment" or a place
where movies, videos, shows or dancing that could constitute adult entertainment takes
place.

7.6.4

There are some occasions where it may be appropriate for employees to entertain
business associates at their homes as part of a business meeting. To be reimbursed, the
employee must obtain prior supervisory approval for the specific entertainment in
question. The following procedures must be strictly observed for approved home
entertainment to qualify for reimbursement:

Effective March 1, 2011

The entertainment must be for a Company-related business purpose specifically

stated on the travel expenses report.

The cost must be reasonable and supported by itemized receipts and proof of
payment receipts.

The travel Expense Report must contain at a minimum the date and type of
entertainment; the specific purpose of the business meeting; and the names and
affiliations of all attendees.

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7.7

Air Travel
7.7.1

All domestic air travel shall be booked in the most economical class. BCD has been
instructed to offer the lowest fare available in all cases.
Our partner airlines are US Airways, American Airlines, Northwest, Continental Airlines,
Air Canada and Air France. We have negotiated significant discounts with these airlines
based on estimated volumes; accordingly, they should be used whenever possible. In
addition to routes not serviced by partner airlines, guidelines from Compagnie de SaintGobain allow for the use of non-partner airlines only if the fare savings is greater than
$100 and the employee provides documentation of the savings with the expense report.
All travel must be booked through the authorized travel agencies.

7.7.2

Business class travel for intercontinental or cross-oceanic flights is permitted unless a

more restrictive policy is adopted at the business unit level.

7.7.3

Air travel arrangements shall be made as far in advance as possible to ensure availability
of the most economical fare.

7.7.4

With the exception of those required by itinerary changes, no changes in fare basis or
upgrade while en route shall be made at Company expense. It is no longer possible to
change a nonrefundable ticket at the airport counter without incurring a service fee in
addition to any additional fare the change may create. Contact BCD for any and all ticket
changes.

7.7.5

Frequent flyer awards are considered to be for the benefit of traveling employees.
Employees are, however, required to cooperate with BCD to obtain the lowest cost fares
that meet their reasonable requirements.

7.7.6

The cost of transportation (i.e., air travel and Amtrak) will not be billed directly to the
Company. These transportation expenses must be charged to the traveler's Expense
Card and submitted for reimbursement on a travel Expense Report.

7.7.7

BCD will book airline tickets for infrequent employee travelers who do not have an
Expense Card only if such travel is charged to the managers Expense Card or another
authorized Cardholders Expense Card with managers approval. The manager or
Cardholder must then submit an Expense Report for reimbursement.

7.7.8

Airfares for conferences or meetings involving several employees should be booked in

advance through BCD whenever possible as significant discounts may be negotiated with
carriers. Generally, trips involving 10 or more employees may qualify for additional
discounts. Contact the Group Air Department at BCD.

7.7.9

The traveler is to ensure that the travel agency is informed of any changes or
cancellations so that proper credits or saved tickets are tracked.

Effective March 1, 2011

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Unused non-refundable airline and train tickets will be stored electronically by the travel
agency for future use. Remember to contact BCD to make any changes to travel plans.
Call the online support number or the traditional number, depending on how the
reservation was booked (see travel internet site for details).
7.7.10 Air travel must be documented by submission of an E-mail itinerary/e-receipt or invoice
sent by Cliqbook or BCD.
7.7.11 In conjunction with the CSG policy, airline club membership fees are not reimbursable
under any circumstances.
7.7.12 Back-to-back ticketing and similar schemes are a violation of airline tariff rules and of the
contracts Saint-Gobain and its travel agencies have entered into with the airlines. Fees
assessed by an airline as a result of back-to-back ticketing and similar schemes are not
reimbursable.
7.8

Ground Transportation
7.8.1

7.8.2

Private Automobile

Personal automobiles should be used for business trips under 100 miles one-way
from the traveler's assigned office/plant location.

Business-related mileage traveled in the employee's personal automobile shall be

reimbursed at the standard Company reimbursement rate, which takes into account
gasoline and all other charges and costs with the exceptions of parking fees and tolls.
Other operating costs for private automobiles are not reimbursable.

Corporate Finance updates the mileage rate in accordance with the most recent IRS
or Revenue of Canada regulations. Travelers should contact their local accounting
department for the current reimbursement rate.

Rail/Bus

7.8.3

Local Transportation

Effective March 1, 2011

Trains or buses are acceptable forms of transportation for business-related travel

where practical.

Airport/hotel shuttles, taxis, and buses shall be used whenever practical. Employees
are expected to use the form of transportation most advantageous to the Company,
considering cost, distance, time convenience, and safety.

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7.8.4

7.8.5

Effective March 1, 2011

Auto rentals

Rental cars should be obtained from Company-designated automobile rental firms

with whom discounted rates have been negotiated for Company personnel. Normally,
this discount must be requested at the rental-originating location by displaying special
identification stickers.

Employees renting cars for Company business should decline collision damage and
personal accident insurance options once they have verified that the rental firm is not
a franchise location. If the rental car location is owned by the rental car firm
(Enterprise or National) and is not an independent franchise, collision damage and
personal accident insurance are covered by the Company's insurance programs. If
the rental location is an independent franchise, employees should accept their
insurance coverage. BCD can identify franchise locations for the traveler. For travel in
Canada and Mexico, the insurance should always be purchased by US-based
travelers. Canadian-based travelers can decline all coverages because use of the
SGC Canadian Citigroup Expense Card carries insurance coverage.

Mid-size cars should be reserved unless traveling in groups of three or more.

Company-designated providers and related rates and requirements may change from
time to time. Please contact the Corporate Fleet and Travel Service Manager for
changes to the vendors of choice and rates. Current, the preferred vehicle rental
vendors are National or Enterprise.

When evaluating use of the fuel purchase option for rental cars, the traveler should
use his/her best judgments, keeping in mind that the fuel purchase options are
generally more expensive than self-fueling. Therefore, travelers are encouraged to
return a fully refueled rental car, the fuel having been purchased at a local gas
station. The gasoline purchase can be submitted for reimbursement.

GPS and EZPass toll transponders are reimbursable costs. Satellite radio fees will
not be reimbursed.

Leased Automobiles

The use of Company-leased automobiles on Company travel is covered by specific

procedures governing Saint-Gobain leased fleet vehicles. Employees using
Company-leased autos will not be reimbursed for mileage.

The repair and maintenance of Company-leased automobiles requires the

appropriate approval of the Fleet Manager utilizing the Manager Approval Form in
Appendix I or other written authorization. Any repair and/or maintenance performed
without this approval will not be reimbursed.

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7.8.6

7.9

7.10

Tolls

For employees with Saint-Gobain fleet vehicles with toll transponders, the
transponder replenishments should be set up against their Expense Card. All
business-related tolls should be classified as tolls in CTE. Any personal use tolls
should be classified as Reimburse Company (Personal Expense) in the Expense
Report

For employees who use their own vehicles on Company business, the specific
charges incurred during business travel should be reported as a "cash" toll. EZPass
or other transponder systems for tolls may be used at the election of the employee.
Transponder replenishments should be set up against a personal credit card (not the
Expense Card). Any business-related tolls should be noted on the monthly toll
transaction statement, classified as tolls on the Expense Report, and submitted for
reimbursement due employee.

Telephone
7.9.1

Telephone charges incurred in connection with Company business are reimbursable

expenses. When business calls are charged to one's personal telephone bill or a calling
card, the original statement and detail must be attached to the Expense Report. With the
exception of reasonable calls home while out of town, personal calls are not reimbursable.

7.9.2

The installation and monthly services for a business phone or Internet Service Provider in
the home is reimbursable per the specific business unit policy and may be subject to
manager approval (see Appendix I). Business phones should only be used for Company
business and the complete original statement with all supporting detail must be submitted
for reimbursement. Repairs to business phones or Internet service are not a reimbursable
expense.

Cell Phone
7.10.1 All cell phones for business purposes are to be obtained from the IT department and shall
be covered on the Company sponsored cell phone plan. As such, cell phone related
expenses will not be reimbursable via CTE and the Expense Report without prior
approval.

7.11

Business Gifts
7.11.1 Business gifts are subject at all times to the Companys Code of Ethics and Business
Conduct Guidelines and the Business Gifts Policy.

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7.11.2 Receipts are required for all gifts and for each individual expenditure and must be
attached to the travel Expense Report. Business gifts in excess of $ 25.00 (or equivalent)
per donee per year are not deductible for U.S. federal tax income purposes.
7.11.3 Promotional and/or award trips for customers should be discussed in advance with the
Corporate Tax Department to ensure proper handling of tax issues with respect to
customer and employee participation. Business unit controllers are responsible for
ensuring adherence with these regulations.
7.11.4 See the Controllers Bulletin revised and effective November 1, 2010 for additional
information/guidance surrounding business gifts for employees.
7.12

Travel Expenses of Spouses at Meetings or Conventions

7.12.1 Travel expenses of spouses are not normally covered by the Company except as noted
below:

The attendance by a spouse is necessary for business reasons and is clearly in the
Company's interest.

The convention/meeting invitation clearly and expressly extends the invitation to

spouses.

The prior approval of a business unit president or corporate officer is obtained.

7.12.2 Travel and entertainment expenses of spouses of employees are not tax deductible by the
Company. Business unit controllers are responsible for initially determining the business
purpose of the trip and ensuring that both the employee and spouse complete necessary
documentation to support the determination.
7.12.3 In the US, the total cost of Company-paid spouse travel & entertainment will be reported
as income to the employee. Based on the information supplied in the expense report
process, TECC will submit notice of such nondeductible trips/expenses to the office
processing the employee's payroll. Additionally, the Manager Approval Form should be
utilized when submitting the Expense Report.
7.12.4 Business functions arranged or sponsored by third parties where spouses have been
specifically invited may have appropriate business justification, but attendance requires
the advance approval of the business unit's president or corporate officer.
7.12.5 Business functions arranged and sponsored by a Saint-Gobain organization and including
third parties (e.g., customers or potential customers) where spouses have been
specifically invited may have appropriate business justification. The senior attendee from
the sponsoring organization is responsible for obtaining pre-approvals and for submitting
the expense for reimbursement. For out-of-town functions, each employee must receive
the advance approval of the business unit's president or corporate officer.
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7.12.6 Business justified spousal travel costs should be clearly reflected on the Expense Report
in order for the Company to comply with tax requirements.
7.12.7 Neither babysitting/child care expenses nor expenses related to kenneling of pets will be
reimbursed in connection with employee and/or spouse travel or attendance at business
events.
7.13

Miscellaneous
7.13.1 Laundry charges are generally not reimbursable. The manager should use judgment in
assessing individual situations. For example, if the traveler is away from home for more
than five consecutive days on Company business, reasonable laundry costs may be
submitted for reimbursement.
7.13.2 Hotel movie rental charges and other types of personal entertainment expenses are not
reimbursable. Other examples of non-reimbursable personal expenses include reading
material, sporting events, museums, and theater tickets.
7.13.3 Personal care services - for example, barber, manicurist, shoeshine, massage or other
spa services - are considered personal expenses and are not reimbursable. Similarly,
except in the case of an unplanned overnight stay during which the traveler must
purchase essential personal care products, such items may not be submitted for
reimbursement.
7.13.4 Damage to, or purchasing costs of clothing for personal use, even if associated with a
business trip or function, is considered a personal expense and should not be submitted
for reimbursement.
7.13.5 The choice to purchase airline or other trip insurance is a personal decision, and a
personal expense that will not be reimbursed. Both Citigroup and Saint-Gobain
Corporation programs cover business travelers. Details of the Citigroup program are
available on the Saint-Gobain Corporation intranet page for Travel & Fleet Services.
Details of the Saint-Gobain Corporation program are available from your Human
Resources representative.
7.13.6 Theft, loss or damage to personal luggage or personal effects is a non-reimbursable
expense. If the loss or damage is associated with air travel, a claim should be filed with
the airline. Citigroup may also provide coverage for loss or damage in excess of the
amount reimbursed by the airline. Details of the Citigroup coverage are available on the
Saint-Gobain Corporation intranet page for Travel & Fleet Services.
7.13.7 Reasonable, customary and non-excessive tips, other than those included in or added to
a restaurant charge, must be separately reported. This includes, for example, tips to hotel
employees, parking attendants, or drivers.

Effective March 1, 2011

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7.13.8 See Section 8.2 for appropriate reporting requirements surrounding personal or prohibited
transactions charged to the Expense Card.

8.0

RESTRICTED PURCHASES OR PROHIBITED TRANSACTIONS

8.1

The Expense Card is not to be used to purchase any commodities from the list below, even if they
are deemed to be Saint-Gobain business related. Should you have any questions pertaining to
these items, please contact your local site controller or business unit controller.
The Expense Card is not to be used for the following:
Personal expenses (see Section 7.13 Miscellaneous for specific examples)
Gift cards and gift certificates
ATM and cash advances
Insurance brokers
Airline club membership fees
Financial institutions
Medical services, child care services and counseling services (does not include service for job

related tests & immunizations)

Massage parlors, dating and escort services or gentlemens clubs

Betting agencies, including lottery tickets
Legal services
Tax payments (restricted to Tax Department use only)

8.2

In the event of a prohibited or personal expense being mistakenly or unavoidably charged to the
Expense Card the following process must be followed when filing the Expense Report:
The personal expense (i.e., movies, late fees, incorrect use of credit card, etc.) must be

expensed under the Personal Expense category using the Reimburse Company (Personal
Expense) expense type within CTE.
For employees submitting an Expense Report with a personal expense amount due to the

Company, when the employee submits the Expense Report and mails the printed report and
original receipts to TECC for review and audit they will also enclose a check or money order
made payable to Saint-Gobain Corporation for the total of the personal expenses identified
within the Expense Report.

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CORPORATE EXPENSE CARD POLICY

Repeated and/or habitual use of the Expense Card for personal expense is deemed to be a

misuse of the Expense Card and may result in disciplinary action (see Section 9.0 Misuse of
the Expense Card).

9.0

MISUSE OF THE EXPENSE CARD

9.1

The Expense Card represents Saint-Gobain's trust in you as a responsible employee who will
safeguard and protect the Companys assets. As a Cardholder, you assume the responsibility for
the protection and proper use of the Expense Card.

9.2

The Expense Card can only be used by the individual whose name appears on the card. Expense
Cards and card numbers must be safeguarded against use by unauthorized individuals within or
outside the Company.

9.3

Expense Card Administrators and site controllers/business unit controllers have the responsibility
to suspend or terminate Expense Card privileges in instances of misuse. Improper use of the
Expense Card may also result in disciplinary action, up to and including termination of employment.

9.4

The following situations are examples of misuse of the Expense Card:

Purchases for the sole benefit of the employee
Assignment or transfer of an individual card to an another person
Use of an Expense Card by a suspended or terminated employee
Lack of proper and timely Expense Report submission of individual Cardholder account

10.0

CANCELING AN EXPENSE CARD

10.1

As stated on the Expense Card Cardholder Application and Agreement form, it is the responsibility
of the Cardholder to return the Expense Card to Saint-Gobain immediately upon termination of
employment for any reason. Expense Card holders should contact the Expense Card Administrator
prior to termination, and arrange to turn over the Expense Card and any outstanding Expense Card
Receipts. Expense Card holders should also contact the Expense Card Administrator in the event
that they transfer to another job within Saint-Gobain. If it is not possible for an Expense Card
holder to perform the cancellation notification process, then the Cardholders manager or the
business units Human Resources manager should assume this responsibility.

10.2

The Expense Card Administrator is responsible for: (1) ensuring that cards are canceled when an
employee terminates upon HR notification, (2) that all outstanding Receipts have been collected,
and (3) appropriate approvals have been obtained. Returned cards should be cut in half by the
Cardholders manager or the business units Human Resources manager.

10.3

Extended Travel or Absence from Saint-Gobain. The Cardholder should notify the TECC
Administrator in writing in the event of extended travel or absence in order to ensure card is not

Effective March 1, 2011

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CORPORATE EXPENSE CARD POLICY

mistakenly deactivated due to untimely filing of Expense Reports and related supporting
documentaiton.
11.0

LOST OR STOLEN EXPENSE CARDS

11.1

12.0

In the event of a lost or stolen card, Cardholders should immediately notify the Bank and the
Expense Card Administrator. Additionally, the Cardholder is also required to report the lost or
stolen card to the Saint-Gobain Hotline (800-548-2088 or 508-795-2736 World-wide). This will
facilitate cancellation and minimize any risk of liability to the Company or the Cardholder.

CARDHOLDER RESOURCES
12.1

To assist individuals with questions or problems they may have relating to the use of the card, each
local unit may designate an Expense Card Administrator. In the absence of a local Expense Card
Administrator, you may contact TECC with any questions (239-693-8322) or e-mail TECC@saintgobain.com .

12.2

Additionally, Expense Card process and procedural details can be found on the Saint-Gobain
intranet under TECC. This is a resource for Cardholders and Cardholder managers and contains
guidelines on how to dispute transactions, how to file semi-monthly expense reports, expense
categories guide, how to use the online system, etc.

Effective March 1, 2011

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