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She should absolutely be reimbursed if she provides proof of expenses.
Her costs were a legitimate cost of the fundraiser. For example, if they sold t-shirts, then the cost of the shirts would be deducted from the amount raised. The only problem I foresee is if the fundraiser did not make enough money to cover these initial costs.
It also does not sound like SAI is refusing to reimburse her - just grumbling because this wasn't taken care of before now. I imagine that perfectly she should have been reimbursed the money BEFORE it was given to SAI.
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