Expenses and Allowances

An expense and allowance policy sets arrangements for employers to cover costs for employees’ travel and other employment related activities.

Expense policies commonly state that pre-authorization is required – that is to say that expenses must be approved (typically by the executive director) before the money is spent. Otherwise, they vary widely reflecting the organization’s needs and resources. Which costs does the organization cover – travel, accommodation, meals, mileage, hospitality, other? What conditions apply to reimbursement – for example, are receipts required? Are amounts specified? Are there maximum limits?