COMMUNICATIONS - PRACTICE 10

Cellular Phone Reimbursement Policy

WHAT

TVA allows employees to use TVA owned cellular phones and Employee owned cellular phones while at work and while traveling on company business. This practice establishes the types of cellular phone calls that TVA will cover the expenses on and the type of cellular phone calls the employees are responsible for payment of.

WHO

This practice is applicable to all full-time TVA employees whose job requires the use of a cellular phone to conduct TVA business.

WHY

Employees must be able to remain in touch with those necessary to conduct business.

HOW

TVA Owned Cellular Phones

All requests for phones must have the appropriate management approvals. Equipment is owned by TVA and must be returned to TVA when the user no longer has a business need for a cellular phone.

TVA-provided cellular phones are to be utilized only when it is the most cost effective, practical or only available means of communication for the following reasons:

• Conducting official TVA business.
• Personal calls required as a result of work related situations, such as necessity to work unanticipated overtime or family emergencies. Employees should keep such personal calls brief and to the point.
• Communicating with home and family to "check in" while in travel status on TVA business.

All other usage will be considered personal. Personal calls are to be minimized and all costs should be reimbursed to TVA as defined below.

TVA Owned Equipment - Reimbursement for Personal Calls

Employees should utilize their monthly detailed billing invoice to identify all personal usage and the associated number of minutes used. The total amount to be reimbursed to TVA is the number of personal minutes used multiplied by .13 cents per minute.

Payment can be made by payroll deduction by submitting a voucher type called "Employee Accounts Receivable" through the Expense Reimbursement System.

Example:	75 personal minutes used
	75 * .13 = $9.75 to be reimbursed to TVA

EMPLOYEE Owned Cellular Equipment

Employee-Owned Equipment - Reimbursement for
Official Business Calls

Users may get reimbursed for business calls placed on an employee owned cell phone by either a pro-rating of the user's personal cellular bill or by a pre-determined and approved reimbursement amount as defined below. For occasional and infrequent use the Pro-ration method is suggested. For consistent use that reoccurs each month then Pre-determined amount should be utilized.

Pro-Ration of Personal Cellular Bill

Users should identify business calls (requires detailed billing) on each month's cellular service bill. The amount to be reimbursed should be calculated by dividing the total monthly bill by the total number of minutes used. This will give the cost per minute. This cost per minute should then be multiplied by the number of minutes identified as business-related to calculate the total amount to be reimbursed to the employee.

Users should request reimbursement through the Expense Reimbursement System. Appropriate documentation and supervisor approval are required.

Example:	Total Bill:	$52
	Total Minutes Used:	350
	Cost Per Minute (52 / 350)	.148
	Total Business Related Minutes Identified:	100
	Total Amount to be reimbursed:	$14.86

(Note: If overage, roaming, or long distance charges are incurred for the business calls the additional charges can be added to the amount to be reimbursed.)

Pre-Determined Reimbursement Rate

This option is available to Management level employees only. Vice President Approval must be given before this type of reimbursement is requested. Requests for this type reimbursement can be made by completing TVA form 17815 "Authorization or Cancellation of Pre-Determined Reimbursement for Cellular Usage". Upon authorization, the employee will continue to be reimbursed the authorized amount one month in arrears on the second pay date of each month until the authorization is rescinded or the authorized amount is changed.

The dollar amounts approved to be reimbursed is determined by the estimated minutes of usage for business purposes. Recommended amounts are:

< 250 Minutes	$30
> 250 < 500 Minutes	$50
> 500 < 900 Minutes	$70
> 900 < 2000 Minutes	$100
> 2000 Minutes	$150

Pre-determined reimbursements will be reported as income on the employee's W-2 Form submitted to the IRS.

Record Retention

Except as may be required by management to determine or verify estimated usage, employees who receive a pre-determined reimbursement are not required to keep a record of their business use of the phone but may desire to do so for their own tax purposes. In all other cases, cellular reimbursement records not associated with travel should be maintained on TVA property for audit purposes for at least three years. Cell phone costs submitted as part of a travel claim must be retained with travel records for six years and three months as outlined in Accounting procedure 15.

ROLES

TVA Employees

Exercise good judgment and remain sensitive to the costs charged to TVA.

Request reimbursement when appropriate

Procurement

Negotiate rates for TVA owned cellular service

Employee Accounting

Process employee requests for reimbursement

Vice Presidents

Approve requests for Pre-determined reimbursement allowance

TVA Management

Approve employees utilization of TVA owned cellular service

Approve employees expense reimbursement requests for business use of employee owned cellular service

RESOURCES

• Procurement
• Employee Accounting

 

Last Revised 03/04