Expenses policy

Purpose

The purpose of the policy is to:

• Provide a clear policy for the reimbursement of necessary and reasonable company related expenses to employees;
• Set out criteria, conditions and the method whereby expenses may be reimbursed and;
• Ensure consistency in the reimbursement of expenses.

It is recorded that the Company expects all employees to exercise common sense and good judgement while incurring expenses on behalf of the Company. Expenses should at all times be within reasonable limits.

It is NML's policy that employees are reimbursed the actual cost of reasonable and approved expenses incurred in the performance of their duties and on behalf of the Company.

Application

This policy applies to all New Media Labs (Pty) Ltd, hereinafter referred to as "the Company," employees.

Definitions

Employee An individual employed for salary by the Company Expense claim form Document containing details of the expense incurred and accompanied by valid tax receipts. The expense claim form can be found under the Claims tab on your Payspace profile Valid tax receipt Original receipt containing a VAT number from the business where the expense was incurred.

Flight expenses

Flights are booked by the Office Manager and details will be communicated with the relevant employee. Employees must ensure that their private medical insurance is made aware of the fact that they are travelling and that they have sufficient cover for the period and area of business travel.

Accommodation

• Lodging is booked by the Office Manager
• When travelling in a group, it may be expected of employees to share rooms.

Allowances

The daily food allowance (outside of client meetings) is R150.00 per day. Breakfast will be included in your accommodation and lunch is provided at the office.

Qualifying expenses

Costs must be incurred, which means that the notional costs of free accommodation with friends or relatives, cannot be claimed.

Here follows a list of eligible expenses:

• Transport for business purposes (excluding the journey between your house and the NML office)
• Subsistence, including meals, non-alcoholic drinks and parking costs related to client meetings
• Office supplies
• Software required for work
• Professional certification/membership fees (prior approval from the relevant Department Head is mandatory)
• Tips for waiters, included in bills for meals are refunded with the cost of the meal, but are limited to 10% of the total charge. The excess shall be for the account of the individual.

This list is by no means exhaustive. However, employees should always consult with the Office Manager before incurring a work expense.

Internal entertainment

The allowance for internal entertainment is established as part of the budgeting process.

For celebratory team lunches the maximum allowed spend is R250 per employee. However, the Company expects all staff to be reasonable in incurring costs, always considering the purpose of the event from the perspective of an objective third-party observer.

Any further questions regarding internal entertainment should be directed to the Office Manager.

Personal expenditure on such items as medication, leaving presents, and cards are not reimbursable under any circumstances.

Mileage allowance and car usage

When travelling for work, the Company's preference is that employees make use of the NML Uber account. In instances where groups of employees travel together, the Office Manager will arrange for a rental car.

Where use of a personal vehicle is made, an expense claim form has to be completed and submitted via the "Claims" tab on PaySpace.

The cost of fuel used for business purposes should be submitted using the expense claim forms as follows:

• Date of journey
• Reason for journey
• Starting point, places visited and end point
• Km's travelled

Details must include the names and addresses of the persons visited and the addresses must be sufficiently precise to enable a check to be made on the kilometers incurred. The expense claim form should be accompanied by the AA fuel cost calculation for your vehicle (https://aa.co.za/vehicle-rates-calculator/). Download the calculation in pdf and upload it on to PaySpace when you submit the expense claim.

Employees must keep a personal travel log showing where business journey commenced and ceased and the number of kilometers travelled. It is the employee's responsibility to provide these records to SARS should they be requested. Employees who wish to use their own private car on Company business should ensure that their vehicle insurance cover extends to business use.

NML does not provide company cars.

Non-qualifying expenses

There are certain expenses that NML will not be held responsible for, including:

• Lost personal property
• Unauthorized meals/entertainment (eg. mini-bar drinks, magazines or film hire)
• Fines incurred for traffic violations
• Unauthorized flight upgrades, accommodations, etc.
• Expenses for spouses who accompany employees on business trips
• Car washing and car valeting services

Reimbursement procedure

Expense claim forms should be submitted via the "Claims" tab on PaySpace to the Office Manager to be reimbursed directly into your bank account. Employees should ensure they keep a copy of the expense claim form and supporting documents, as these may be required for self-assessment purposes by SARS.

Original VAT receipts must support all expense claim forms. Credit/Debit card statements or authorisation slips will not be accepted or reimbursed. The employee must date the expense form, after which the form must be authorised according to the guidelines set out in the "Approval of Expense Claims" section. The completed forms should then be submitted via PaySpace to the Office Manager who will ensure that it will be kept on record for five years.

Any attempt to falsify an expense claim will be treated as fraud and/or gross dishonesty, which are among the most serious of disciplinary offences.

Approval of expense claims

A completed expense claim form, accompanied by valid expense receipts has to be submitted to the Office Manager for review and reimbursement.

It is the responsibility of the employee to ensure that the expense claim is mathematically accurate and filled in correctly prior to submitting the claim for payment.

The employee should be able to answer any questions the Office Manager or Accountants have regarding the expense claim.

Reimbursement conditions

Reimbursement will only be made upon completion and approval of a claim form that is accompanied by valid receipts or invoices containing a VAT number. All expenses must be claimed within two months of the employee incurring the expense.

General

The information contained on the expense claim form is not only used for our own internal purposes but it is also reported to government authorities and can be subject to audit.

In the event that an expense claim is completed in respect of an item not included in this policy, or an employee has a query relating to the payment of expenses, the matter should be referred to the Office Manager for guidance.

It is Company policy that an advance is not given to employees to cover expenses.

No employees are authorised to travel first or business class, whatever the circumstances.

The Office Manager must sign and date (date of reimbursement) each form and supporting documentation to ensure that documents are not submitted more than once.