Hubbell Policies

PREPAID EXPENSE POLICY

English

Owner : Vice President, Controller

Last Review: 2016.06.01

FIN – 3 7

Department: Finance

POLICY This policy applies to all prepaid expenses. A prepaid expense can only be established on the balance sheet if the individual expense item exceeds $10,000 USD (or its foreign currency equivalent) . Prepaid expenses that fall below the $10,000 USD threshold (or its foreign currency equivalent) are to be immediately expensed to the income statement. All prepaid expenses must be supported by an invoice that clearly indicates the period covered by the invoice. This policy is to be adopted prospectively as of the effective date (i.e., for all new pre- payments following the effective date). SCOPE The policy applies to all business units. PURPOSE Not applicable PROCEDURE Follow the threshold set forth in the policy when capitalizing prepaid expenses and keep the documentation required by the policy. ADMINISTRATION Roles and Responsibilities. The business unit is responsible for identifying prepaid expenses that comply with the minimum threshold outlined above. Exceptions. Any deviation from this procedure must be approved by the VP, Corporate Controller or Assistant Corporate Controller. ACCOUNTING AND DISCLOSURE None REPORTING Prepaid expenses must be recorded in an appropriate general ledger account that will map to the following Prepaid categories within HFM: Monitoring, Evaluation and Review. Internal audit reviews will be conducted on a discretionary basis.

HFM Acct #

HFM Acct Name Prepaid Insurance Prepaid Pensions

Prepaid Insurance Prepaid Pensions

#1530 #1550 #1560 #1580

Prepaid Rent Prepaid Taxes

Prepaid Rent Prepaid Taxes

132