Expense Reimbursement -
10 Ways to Protect Your Organization
Leavin' on a Jet Plane...
I'm prepping for the ACFE conference this month in Orlando, FL. As I prepare for my trip and consider the expenses that will be incurred (i.e. taxi, meals, etc), I am reminded of a trip to Detroit only a few summers ago.
A trip that resulted in the uncovering of a $2 million dollar expense reimbursement scheme perpetrated by the three top executives of a large corporation.
These professionals didn't see a problem having the company pay for their kids' swimming lessons, their wives' trips to the spa, and yes, even their Thanksgiving Dinner!
Expense reimbursement schemes are very simple, and often, very easy to perpetrate. Here are 10 ways to protect your organization:
1. Maintain a travel reimbursement policy
2. Require original documentation (i.e. receipts)
3. Use expense reimbursement forms
4. Ensure proper approvals have been noted before processing payment
5. Routinely question expenditures
6. Require usage of corporate charge cards (instead of reimbursements of out of pocket expenses)
7. Receive credit activity statements timely (i.e. on a monthly basis)
8. Annually audit a sample of employees' expense reports
9. Treat reimbursement activities consistently
10. Prosecute offenders
