Adisoft®

600 FINANCE - Expense Reports

ADMINISTERED BY Enter BOLDED, ALL-CAPITAL margin captions and INDENTED [F4] text below.APPLIES TO All company associates.

Accounting Practices. If you have any questions regarding the use of expense reports, call Accounting Practices at ext. 7803 or 7307.

SUMMARY This report states the guidelines and procedures for reporting authorized expenses while on company business.

Refer to the following for additional expense reporting information:

SM-610-4, Expense Reports - Supporting Documentation & Reportable Expenses.

SM-610-5, Expense Reports - Entertainment & Credit Card Charges.

SM-610-7, Corporate Credit Card Program.

GENERAL GUIDELINE & INFORMATION Travel And Entertainment Expenses are generally acceptable as business expenses provided adequate records are maintained to substantiate:

• The amount of the expenditures.

• The time and place of the travel and/or entertainment.

• The business reason and/or the business benefit derived, or expected to be derived from the expenditure.

• The business relationship of the persons being entertained.

Failure to adequately substantiate travel and entertainment expenditures may result in their disallowance.

Company Pays All Necessary Expenses incurred away from your base area of operation while on company business or in connection with securing sales: i.e., travel, lodging, meals, telephone calls, etc.

Base Area Of Operation is defined as that area from which it is practical (not additional burden) to travel home for the night. It is based on locating your living quarters at the most advantageous point of the entire area which you must cover.

Nature & Amount Of Expense May Vary by geographic location and the objective sought. Therefore, use common sense in the disbursement of company funds.

Spouse Travel is not allowed.

Cash Advances. All advance expense funds are considered to be a liability of the associate drawing them until expense reports are submitted and approved. Normally no more than one advance should be outstanding at any given time.

Corporate Aircraft Expenses. Technical Services Accounting charges out the cost of the trip to the department of the associate incurring the expense. This is not to be included in the expense report.

Two Or More Associates On The Same Trip. Where two or more associates incur expenses on a trip taken together, separate accounting of expenses is to be reported.

Meals For Other Kohler Co. Associates will be disallowed if they are within their base area of operation or if there is no apparent business purpose for the expense.

Another Department May Be Charged if the expense report is approved by the recipient department’s manager.

Maintain A Record Of Expenses Daily. All expenses to be reimbursed by Kohler Co. should be maintained on a daily basis. A small notebook can be used for this purpose. Do not depend on your memory.

REPORTING EXPENSES Use Expense Report System. Following an authorized business trip, you are required to complete an expense report to account for all expenses and to receive proper reimbursement for expenses over and above any cash advance given. Receipts must be mailed to your respective Accounting area for reimbursement. Use K-4424 Expense Receipt Record.

Expense Reports Due Following Friday. It is expected that all expense reports will be submitted by the end of the week following the week or weeks for which the advance applied. As agreed to on K-1280, Requisition For Funds, an approved expense report will be submitted no later than 30 days after the conclusion of the trip for cash advances.

Cash Due Kohler Co. If you do not travel on company business the following week, return the Balance Due Kohler Co. to the Cashier for a two-part receipt. Include one of these receipts in the Expense Receipt Record K-4424 before submitting for processing.

Do Not Send Cash Through The Mail. Accounting Practices will not assume responsibility for lost cash. Send only personal checks or travelers checks made payable to Kohler Co. to protect yourself against loss or theft.

Cash Due Associate. When total expenses are greater than any advances provided, you will be reimbursed for the difference.

Approvals. All items are subject to at least your immediate supervisor's approval. Immediate supervisors are not to approve expense reports which request reimbursement of expenses incurred on their behalf. These expenses must be approved by the next highest level of supervision. Some divisions or groups may require additional approvals.

Unacceptable Expenses will be brought to your attention and the approver's attention and will be disallowed. Any disallowed items will be billed to you or deducted from the amount due you.

Reporting Omission: e.g., failure to report airline tickets, will be brought to your attention and to the approver's attention. If the omissions are identified during the processing of the report, the report will be returned to you for correction. If the omissions are identified subsequent to the processing of the original report, a supplementary report will have to be filed to account for the omitted items.

ASSOCIATE Submit expense report to your supervisor for approval.

Submit Expense Receipt Record K-4424 containing:

• Paid receipts

• Other supporting documentation per the instructions on the envelope.

• As required, check in amount due Kohler Co.

Forward receipt envelope to the appropriate accounting area.

IMMEDIATE SUPERVISOR Review for accuracy of content, approve and forward to appropriate Accounting area for processing.
MOVING & RELOCATION EXPENSES Reimbursement Of Moving & Relocation Expenses. A separate expense report is to be prepared for these expenses. See SM-202-10, Reimbursement Of Moving Expenses. Please forward to Personnel for approval.
PETTY CASH FUND GUIDELINES Reimbursement of a Petty Cash fund is processed through expense reports. The following rules apply:

1) Petty Cash disbursements should be for legitimate and necessary business purposes only.

2) Reimbursement of personal expenditures of any kind will not be allowed. This includes, but is not limited to, personal or departmental refreshments, snacks or coffee break supplies, personal health and beauty supplies, decorative supplies and cards or gifts for other associates. Expenditures for meeting refreshments are not covered unless non-associates or associates from outside Sheboygan County are present. Miscellaneous refreshments may be purchased for guests from the vending machines or for larger gatherings, they may be ordered through Administrative Services, ext. 7646.

3) All purchases must be explained with the name and affiliation of user, a description of the item purchased and business purpose together with proper receipt documentation. If refreshments are purchased for guests from vending machines, receipts are not required. This information must be recorded on a Petty Cash Fund - Detail Expenses form K-2083 and submitted on an expense report for reimbursement.

4) Cash should be counted periodically. The amount of cash plus receipts should always total the original amount of the fund. Be aware that the fund you are responsible for is subject to surprise audits by both the Internal Audit staff and the audit staff of Arthur Andersen.

5) For assistance in determining acceptability of expenditures, please call Accounting Practices at ext. 7803 or 7307.

6) Reimbursement for Petty Cash expenditures will be made by check which may be cashed at the Kohler Co. cashier’s counter or elsewhere.

7) All Petty Cash Funds must be authorized by the Kohler Co. Treasurer.