Prepared by D.T. Carter and M. MacInnis
Garfield College is a private high school. The College sent Tom Blanchard, C.A., a young accounting teacher, to represent the school at the annual Independent Schools of North America Conference in Arizona. Blanchard arranged for travel and accommodation for the conference with the understanding that the school would reimburse him. It so happened that March Break coincided with the conclusion of the conference, so Blanchard figured he would take advantage of his good fortune to stay in Arizona another week and work on his golf game. He reasoned that this would not be a problem, since he would pay for his extra week at the hotel and the College had to pay his way back anyway; it didnt matter when he returned, just as long as he was back for the resumption of classes.
By staying an extra week, however, Blanchards return flight coincided with the rush back from March Break and the return part of the fare was $200 more. Blanchard did not think to check how much less it would have cost to leave right after the conference. Blanchard discovered the difference when he examined his ticket as he prepared his expense report. He submitted his travel reimbursement request and said nothing. The College caught this discrepancy upon remittance of his expense report and the headmaster of the school was subsequently notified. The headmaster then discussed this with Pat Smith, CA, a member of the School Advisory Board.
What should the college do?
Other Not-for-Profit cases: