Policy - Director and Officer Expense Guidelines Home
Purpose
The purpose of this policy is to establish clear guidelines for the reimbursement of reasonable and necessary expenses incurred by Directors and Officers of Scots of Canada in the performance of their duties. This policy ensures transparency, accountability, and compliance with the Canada Revenue Agency (CRA) guidelines and the organization’s bylaws.
Scope
This policy applies to all Directors, Officers, and Committee Members of Scots of Canada who incur expenses while conducting official business on behalf of the organization.
General Principles
1. Accountability: All expenses must be directly related to the organization’s charitable activities and mission.
2. Transparency: Expenses must be documented, reasonable, and approved in accordance with this policy.
3. Compliance: Expenses must comply with CRA guidelines and the Income Tax Act to maintain the organization’s charitable status.
4. Fiduciary Responsibility: Directors and Officers must act in the best interest of the organization and avoid conflicts of interest.
Eligible Expenses
Reimbursement will be provided for reasonable and necessary expenses incurred while conducting official business, including but not limited to:
1. Travel Expenses:
- Economy-class airfare, train, or bus tickets.
- Mileage reimbursement for personal vehicle use at the current CRA-approved rate.
- Taxi, rideshare, or public transportation fares.
- Reasonable accommodation costs (e.g., mid-range hotels).
- Meals and incidental expenses (per diem or actual costs, subject to limits).
2. Meeting Expenses:
- Costs associated with attending Board meetings, committee meetings, or special events.
- Venue rental, catering, or meeting materials.
3. Professional Development:
- Registration fees for conferences, workshops, or training relevant to the organization’s mission.
- Travel and accommodation costs for attending such events.
4. Communication Expenses:
- Reasonable costs for phone calls, internet, or postage related to official business.
5. Other Expenses:
- Any other expenses pre-approved by the Board or Executive Committee.
Non-Eligible Expenses
The following expenses will not be reimbursed:
- Personal expenses unrelated to official business.
- First-class or business-class travel (unless pre-approved for exceptional circumstances).
- Alcohol or entertainment expenses (unless directly related to a charitable event and pre-approved).
- Expenses incurred by family members or guests (unless pre-approved).
Pro-rated Claims for Blended Usage
Claimed expenses should be reasonably pro-rated when other business or personal use is included.
Expense Approval and Reimbursement Process
1. Pre-Approval:
- Expenses exceeding $100 must be pre-approved by the Board Chair or Executive Committee.
2. Submission:
- All expenses should be submitted within 90 days of being incurred and must be submitted no later than 30 days before the fiscal year end.
- A completed Expense Reimbursement Form must be accompanied by original receipts or documentation.
3. Review and Approval:
- Expenses will be reviewed by the Treasurer or designated Board member or other designated person for compliance with this policy.
- Approved expenses will generally be reimbursed within 30 days of submission.
4. Record-Keeping:
- All expense records will be maintained for a minimum of seven years as required by CRA guidelines.
Conflict of Interest
Directors and Officers must disclose any potential conflicts of interest related to expenses (e.g., using a family member’s business for services). Such expenses must be pre-approved by the Board and documented.
Amendments
This policy may be amended by a majority vote of the Board of Directors. Any changes will be communicated to all Directors and Officers in writing.
Compliance
Failure to comply with this policy may result in the denial of reimbursement and could be considered a breach of fiduciary duty.
Acknowledgment
All Directors and Officers are required to acknowledge receipt and understanding of this policy on acceptance of appointment and after any amendment.
Effective Date. This policy is effective as of April 21, 2025 and supersedes any prior policies regarding Director and Officer Expense Guidelines.
Revision. (YY/##). 2501