For those who have them, Expense Accounts are an annual budgeted line item, set at an amount approved by our Strategic Elder Board and considered a part of an Employment Package. Items charged toward this account may include a variety of expenses related to an Employee’s work activity and the fulfillment of their job description.

Expected uses

Professional Development (i.e. seminars, conferences, books, software, seminary, etc.). The remaining amount will be determined by the Employee’s job description and department.

Proper uses

Because Grace is classified as a non-profit organization, expense accounts are classified as “Accountable” compensation by the IRS, which means every expense must meet certain criteria:

1. There must be a business connection Common examples include:
   1. Meals or food items consumed for the purpose of work as related to an Employee’s job description.
   2. Travel for the purpose of work as related to an Employee’s job description.
   3. Professional or Spiritual Development, as mentioned above.
   4. Technology for the purpose of work as related to an Employee’s job description (cell phone, laptops, tablets, etc.).
   5. Other resources as necessary.
2. Expenses must be substantiated with proper documentation
   1. Receipts for meals must include the purpose of the event and the names of those who attended.
   2. Travel can be reimbursed with the actual expense or on a per-mile reimbursement based on IRS guidelines.

Improper uses

1. A meal purchased and consumed by oneself, or taken recreationally with other employees outside of work, cannot be expensed unless the employee is traveling outside the greater local area.
2. Purchase of an item that does not directly impact an employee’s job at Grace.

Overspending

It is never allowable to overspend an Expense Account. Should this happen, the Employee will be notified by Finance Team and the overage will be deducted from their paycheck.