What is an affidavit?

Key principles of an affidavit:

1. What is the purpose of an affidavit?
Provides a legally binding declaration to support an expense claim when original documentation is lost or unavailable.

2. What should an affidavit include?
Includes details of the expense, such as the date, amount, nature of the expense, and an explanation of why the original documentation is missing.

3. What is a legal status?
A legal status is a sworn statement where the employee confirms the information is true to the best of their knowledge, under penalty of perjury.

4. Should a company approve an affidavit as an expense claim? Subject to review and approval by the company’s finance or compliance department to ensure it meets policy requirements.

5. When is an affidavit used in the expense process?
Typically, an affidavit should be used sparingly and only when no other documentation is available.

Example of an affidavit

An employee loses a receipt for a business meal. To validate the expense, they submit an affidavit detailing the date, amount, purpose of the meal, and attendees, explaining that the receipt was misplaced.

The benefits of using an affidavit

• Accountability – Ensures employees are legally responsible for the expenses they claim.
• Compliance – An affidavit helps maintain alignment with internal policies and external regulations when a document is lost.
• Integrity – An affidavit provides a method to validate expenses even when documentation is missing, reducing the risk of fraudulent claims.

Using affidavits appropriately helps maintain transparency in expense management while ensuring compliance with financial regulations.