Can You Expense a Tropical Fish?

What do gambling debts, gardening supplies and golf clubs have in common?

They are all things workers have attempted to get their employers to pay for, according to a recent survey conducted by Robert Half International. Robert Half asked 150 senior executives with some of the nation's largest companies, "What is the most outrageous thing that an employee has tried to pass off as a work-related expense?" Examples ranged from the petty (deodorant and ATM machine fees) to the outrageous (a 60-inch plasma TV and home remodel).

What are some of the odd -- and amusing -- personal items or services that some brazen employees have claimed on their expense reports? Here are 10:

Tropical fish

Traffic tickets

The cost of transporting a pet gerbil overseas

A European excursion to conduct "research"

"Lodging" at a storage facility

Expensive silk sheets and silverware

A trip to The Masters

A digital music player

Healthcare coverage and boarding for a pet

Divorce costs

     
While these examples might make you chuckle, expense report fraud is no laughing matter. More and more companies are taking steps to crack down on employees who stretch the term "work-related" to the extreme or who pad their expense reports with fictitious or embellished charges. According to the American Express 2006 Expense Management Benchmark Survey of U.S financial executives, 63 percent of respondents said their companies scrutinize employee travel and expense reports "much more" or "somewhat more" than in the past.
     
"Many companies in today's day and age can easily monitor their organization on an employee-by-employee basis," says Ken Yormark, managing director of Protiviti, an international provider of independent risk consulting services. "With the right tools, it's an easy process to look at expense report data, and more companies are reviewing that data closely. People need to understand that whether it's $5, $5,000 or $5 million, it's still fraud, and it's unacceptable."

Organizations have good reason to review expense reports more thoroughly and implement zero-tolerance policies. Several surveys and polls conducted in recent years indicate that many professionals believe exaggerating expenses is an acceptable practice.

But it most certainly is not, says John Warren, general counsel for the Association of Certified Fraud Examiners (ACFE), noting that employees who lie on their expense reports, "could find themselves not only out of a job but also subject to prosecution."

"Somebody might say, 'Well, it's only a few dollars, so what's the big deal?' My response would be that if you're willing to compromise your ethics for a few dollars, then how can I trust you when you've got access to a few hundred or a few thousand dollars?" adds Warren, who authored the 2006 ACFE Report to the Nation on Occupational Fraud & Abuse.

To stem reimbursement fraud, some accounts-payable departments now use sophisticated expense-reporting technology that more effectively monitors employee spending and identifies anomalies that could indicate a falsified or inflated charge. The good news for employees is that these automated systems can make it simpler and quicker to fill out expense reports; the bad news is that the software sometimes flags unintentional oversights by ethical workers. This means that it's more important than ever to dot your i's and cross your t's when seeking reimbursement for work-related expenses. Here are some tips for practicing sound expense-reporting habits:

Know the law of the land. Different companies have different reimbursement rules. For instance, some organizations offer a fixed daily amount to cover an employee's costs when traveling on business, while other firms don't cap expenses but require receipts for every purchase. If you're unsure of your company's expense-reporting policies, review the company handbook. If you still have questions, ask your manager or a human resources or accounts payable representative for clarification. It's always smarter to err on the side of caution by asking questions so you don't eat a hefty unreimbursable meal or land in hot water because of an easily avoidable error.

Complete your expense reports in a timely fashion. The sooner you document your expenses, the better. It's wise to complete your expense report while the costs you incurred are still fresh in your mind. If you procrastinate, you're likely to forget expenses or lose receipts. By promptly filing your expense report, you'll help your company accurately track its finances -- and you'll get your money back sooner.

Don't push the limits. If you misplace a receipt, and you're not certain of the amount you paid for the item, consider chalking up the loss to a lesson learned instead of guesstimating. And don't toe the line by rounding up.

In general, use common sense when submitting expense reports. Don't make the mistake of adopting a cavalier "submit it and see" attitude. You risk more than just having the expense report rejected; you could seriously damage your professional reputation, face disciplinary action, lose your job or even be prosecuted. When it comes to requesting reimbursement from your employer, remember these two timeless adages: "Honesty is the best policy" and "It's better to be safe than sorry."


Robert Half International is the world's first and largest specialized staffing firm with a global network of more than 350 offices throughout North America, Europe, Asia, Australia and New Zealand. For more information about our professional services, please visit www.rhi.com.