Wikimedia Eesti/Procedure for compensating expenses
This is an English translation of the procedure for compensating expenses of Wikimedia Eesti, approved at the meeting of the management of the NPO Wikimedia Eesti on 19 November 2013. The Estonian original can be found on the Estonian homepage of Wikimedia Eesti.
Procedure for compensating expenses of Wikimedia Estonia
The purpose of establishing this procedure for compensating costs is to establish uniform and clear guidelines in the non-profit organisation (NPO) that are used as a basis for compensating expenses incurred by a member of the organisation, member of management, volunteer or employee in the organisation’s interests and in direct connection with the management, activities or projects of Wikimedia Eesti.
Uniform rules apply to compensating expenses regardless of whether this concerns members of the organisation, members of management, volunteers or employees.
In the case of contracted work, expenses may be calculated as part of payments under contract.
Expenses are compensated to a reasonable extent, relying on the budgets of projects or activities and the approval of members of management.
Preliminary conditions for expenses to be compensated
All expenses of a member of the NPO, member of management, volunteer or employee which are sought to be compensated must be:
- approved with a decision of the management, agreement of a member of management or approved project or activity budget prior to incurring the expense;
- documented properly, pursuant to the laws of the Republic of Estonia, the procedural rules of accounting of the NPO and the rules of formalising documents of expenses; and
- reasonable, i.e. conform to the goals, activities and projects of the NPO and the valid market price of the corresponding goods or service.
- Acquiring tangible fixed assets (i.e. item with a value exceeding 639.12 euros) must have a prior corresponding decision of at least the management or the general meeting.
Types of expenses to be compensated
Direct expenses for projects or activities shall be compensated according to the budget of the project or activity.
Local transport expenses shall be compensated according to the rules for compensating travel expenses.
Travel expenses shall be compensated according to the travel policy of the NPO.
Management expenses and other ongoing expenses of the NPO shall be compensated to a reasonable extent based on the criteria of reasonable expenses.
Applying for compensation
To apply for compensation for expenses, the management or a member of management of the NPO must be provided with the basic document formalised pursuant to the rules for formalising expense documents, which forms the basis for the expense to be compensated.
Upon applying for compensation of expenses, the corresponding application and the proper basic document must be submitted to the management or a member of management of the NPO within 30 calendar days of incurring the expenses.
Upon submitting a consolidated document, the term for submitting an application and the necessary documents extends to 60 calendar days from the incurring of the first expense to be compensated.
An application for compensation of expenses must be in writing. A corresponding application form is recommended to be used.
Incomplete applications for compensation of expenses shall be returned to the applicant for completion.
If an application for compensation of expenses is returned to the applicant for completion, it must be resubmitted with improvements within 30 calendar days of the application being returned.
Reviewing applications for compensating of expenses
Applications for compensation of expenses shall be reviewed by the management or a member of management of the NPO.
Applications for compensation of expenses are checked for:
- expenses incurred being approved and in conformity with corresponding budgets or decisions;
- the basic documents appended to the application for compensating expenses being properly provided with the necessary information pursuant to the rules of formalising expense documents;
- the sum to be compensated being in conformity with the submitted expense documents; and
- management costs and other ongoing costs to be compensated being reasonable.
Compensating or not compensating expenses
If the content and form of the application for compensation meet the necessary requirements, the responsible member of the management shall forward the basic documents of expenses to accounting to enter the expenses in accounting and shall organise the payment of compensation for the expenses to the person who incurred the expenses within 30 calendar days.
If the expenses are not eligible for compensation, the member of the management responsible for the application shall arrange a corresponding notice to the person who incurred the costs within 30 calendar days with a written explanation regarding the ineligibility of the expenses for compensation.