[Church Name]
1. Purpose
This policy establishes clear guidelines for business expenditures incurred by employees, Board members, or any other approved representatives while fulfilling their work-related responsibilities at [Church Name]. Our expense policy is based on the principles of accountability, transparency, value for money, and fairness.
2. Definitions
- Authorization: The pre-approval or approval of an expense reimbursement or business travel claim by an individual with the appropriate signing authority. Generally, this requires the immediate supervisor’s pre-approval, provided the expense claim amount is within their signing authority.
- Receipt: An original document, or a carbon or certified copy, that details the expenditure, including the amount, date, and proof of payment.
- Staff: For this policy, “staff” includes all employees, volunteers, Board members, contracted staff, and any individuals engaged in [Church Name] business who intend to receive travel and/or expense reimbursement.
- Consultants: Individuals providing services to [Church Name] on an independent contractor basis. Consultants are not considered “staff” under this policy.
3. General Principles
- Reimbursement for Reasonable Expenses: Staff will be reimbursed for reasonable and actual expenses incurred during the performance of their [Church Name] business.
- Alignment with Church Objectives: Expenses should support the mission and objectives of [Church Name].
- Documentation Requirement: Reimbursement requests must be supported by detailed, original receipts and/or appropriate documentation.
- Timely Submission: Expense reports must be submitted within 60 days (or within the current fiscal year). Late submissions require an explanation for the delay.
- Pre-Approval: All expenses must be pre-approved by the appropriate manager or designated authority. No individual may approve their own expenses or those of a subordinate that pertain to their benefit.
- Review Responsibility: The approver of an expense report must ensure that all claims are accurate, reasonable, and in accordance with this policy. Reasonable gratuities will be reimbursed.
- Board Member Claims: Expense forms and detailed receipts for claims submitted by Board members must be sent to the Director for review.
4. Non-Reimbursable Expenses
The following expenses will not be reimbursed:
- Expenses incurred by spouses or other non-employees accompanying an employee on business travel.
- Personal services and purchases (e.g., gifts, clothing, massages, beauty treatments).
- Alcohol.
- Lost personal property.
Note: This list is not exhaustive. Please consult your manager if you have questions about specific expenses.
5. Expense Levels and Approval Authority
- Board of Directors: Any cumulative expense total exceeding $2,500 for an item or project must be approved by the Board.
- Management: Expenses under $2,500 for an item or project require approval from management.
- Employees: Expenses under $500 for an item or project must be approved by the employee’s direct manager.
6. Expense Categories
6.1 Meal Expenses
- Business meals are reimbursable if accompanied by a receipt that includes the date, names of business associates, and details of the business discussed.
- Alcohol expenses are not reimbursable.
- Gratuities are reimbursable up to a maximum of 15% of the meal cost.
6.2 Gifts
- The purchase of gifts for personal life events (e.g., birthdays, weddings, births) is generally discouraged unless pre-approved by the Director.
6.3 Personal Vehicle Usage
- Personal vehicles may be used for approved [Church Name] business travel. Reimbursement is provided at a rate of $0.53 per kilometer for the first 5,000 km, and $0.47 per kilometer thereafter (subject to change as per regulatory guidelines).
- Personal vehicles used on church business must be insured at the vehicle owner’s expense for personal motor vehicle liability, with coverage meeting or exceeding the minimum required by law.
- [Church Name] assumes no financial responsibility for personal vehicles beyond reimbursing eligible mileage. Claims for damages resulting from collisions are not covered.
6.4 Personal Telephone Use
- Cell phone cost coverage is determined on a per-employee basis at the discretion of the Director and the Board.
6.5 Computer and Related Expenses
- Employees are not authorized to directly purchase or order computer hardware, peripherals, or software. All such requests must be directed to the Director.
- Purchases made without prior approval will not be reimbursed.
6.6 Cash Advances
- Cash advances are discouraged. Employees should use personal credit cards or other means and then file an expense report for reimbursement.
6.7 Travel Expenses
- Reimbursable travel expenses include transportation and accommodation costs incurred during approved business trips.
- Eligible expenses include:
- Accommodation.
- Air, train, ship, or other transportation fares.
- Local transportation during trips (e.g., taxi fares, rental cars).
- Other approved minor expenses, such as meals and incidental costs.
- Pre-purchased travel insurance may cover medical care fees resulting from travel-related accidents.
7. Submission and Processing
- Submission: Expense reports must be submitted using the designated expense reporting system and include all required documentation.
- Review: Expense reports that do not comply with these guidelines will be returned for correction or may be denied reimbursement.
- Processing: Once approved, reimbursements will be processed promptly in accordance with our standard accounting procedures.
8. Questions and Further Information
If you have any questions or need further clarification regarding this policy, please contact the Human Resources department or your direct supervisor.
This policy is intended to support the responsible and efficient management of expenses incurred in the performance of [Church Name] business, ensuring accountability, transparency, and fairness for all employees and representatives.