Reimbursement- But For What?

Many professionals work on a flat fee, plus reimbursement of expenses basis. If you’re a fan of Jim Rockford from the 70’s “Rockford Files” TV show, he always charged $200 a day plus expenses. But what are those expenses?
Recently, a political consultant was accused of stealing more than $220,000 from a campaign fund in St. Louis. How? “According to the criminal complaint, he falsely charged the (campaign) committee on four separate occasions. In one instance, he charged the committee for $218,715 for postage…bank accounts and other records show he only paid $116,200 for postage.” The same type of activity is alleged with printing and canvassing staff. His “contract said he would be paid a fee of $30,000 plus reimbursement of expenses”. The prosecutor explains, “He wasn’t supposed to get any mark-up for his printing or mailing”.
How could this have been prevented? Many agreements I have seen require the company to provide receipts to support the reimbursement of expenses.
The Lesson: Require any expense reimbursement to be supported by receipts.
Your Homework: Do you make it a practice of asking for receipts before paying people you hire? If you don’t, because you feel it’s too time-consuming, would this situation spur you to change you procedure?
(Source: “Consultant held in case that turns on misuse of moeny”, St. Louis Post Dispatch, 7/25/07)