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Policy On Representation Allowance

This document outlines a representation allowance policy for executives at Kasagana-ka Synergizing Organizations. It provides an allowance of PHP 25,000 for the CEO/General Manager and PHP 5,000 for the Operations Manager to cover business expenses incurred while performing duties. Allowable expenses include gasoline, parking, tolls, representation dinners up to PHP 5,000 per month, office supplies, and reference materials. Executives must submit receipts to validate expenses. The purpose is to allow executives to incur costs for networking and partnerships without using personal funds.

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Celine Pascual-Ramos
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1K views10 pages

Policy On Representation Allowance

This document outlines a representation allowance policy for executives at Kasagana-ka Synergizing Organizations. It provides an allowance of PHP 25,000 for the CEO/General Manager and PHP 5,000 for the Operations Manager to cover business expenses incurred while performing duties. Allowable expenses include gasoline, parking, tolls, representation dinners up to PHP 5,000 per month, office supplies, and reference materials. Executives must submit receipts to validate expenses. The purpose is to allow executives to incur costs for networking and partnerships without using personal funds.

Uploaded by

Celine Pascual-Ramos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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POLICY ON

REPRESENTATION
ALLOWANCE
BACKGROUND
The Php 25,000 was provided to the then CEO and President of
KDCI, due to performing both CEO and president roles and as such
additional compensation was provided.
The only requirement is to submit receipts to cover the amount,
thereby, making it seem to be almost a tax exempt additional pay
(like a tax shield).
As practiced, GM submitted monthly "auditable" ORs for said
amount. This include transportation receipts (gasoline, parking fee,
toll fee), pantry supplies (grocery items), and restaurant receipts.
BACKGROUND
Some expenses are incurred by the GM doing official
duties, others are for compliance purposes i.e., to cover the
amount provided by the board
No further reimbursements are made for items bought for
the office, materials and supplies.
RATIONALE
To provide an allowance for those who are in executive
positions whose main function is to create network and
partnerships for the organization to cover the expenses they
incur while in the performance of their duties.
PURPOSE
To provide guidelines for the treatment of the
transportation, representation and other business expenses
incurred by those who are in executive positions
To provide clear definition of business-related and
representation expenses
To identify allowable items for expenditure
AMOUNT OF ALLOWANCE
POSITION AMOUNT
General Manager / CEO Php 25,000
Operations Manager / Php 5,000
GENERAL GUIDELINES
The representation allowance is NOT part of the regular
compensation of the executives. It is based on actual
expenses they incur in the performance of their duties and
functions.
Business-related expenses are expenses that is necessary,
reasonable, appropriate, and allowable non-compensation
expense incurred for the purpose of fulfilling the mission of
Kasagana-ka Synergizing Organizations.
GENERAL GUIDELINES
Representation expenses are those incurred while in the actual
performance of the duties of the position and for the purpose of
furthering the interests of the organization.
Representation allowances are intended to cover allowable items of
expenditure primarily by executive positions, whose official positions
entail responsibility for establishing and maintaining relationships of
value to the organization.
Under no circumstances can the allowance be construed as a
supplement to executive compensation or be used for personal
benefits, explicit or implied.
ALLOWABLE ITEMS FOR
EXPENDITURE
Gasoline (of up to Php5,000 a month)
Parking (for official meetings and functions)
Toll fees
Representation (restaurant receipts of up to Php5,000 a month, for
official occasions only ie for guests and staff)
Supplies and materials for use in the office
Reference materials (books, academic journals and magazines)
Services hired in the exercise of official function (ie driver)
VALID REIMBURSEMENTS
This three components must be met:
The expense must be considered an allowable business
expense
There must be substantiation of the expense with receipts
The expense should cover official expenses only

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