All the sign of poor leadership and worse management. If it costs $70 for the submitter to prepare the reimbursement request and even half of that to review it and process it for payment, that is roughly $100.
If you go through all of that to catch somebody who had an extra vodka with their dinner, you haven't saved particularly much.
This is also why many businesses have shifted to a per diem system and do not require receipts for the items covered by the per diem. So long as the per diem is fair, most employees tend to like it because it lets them shift things around to their eating habits.
This, of course, does not work for people who have business development responsibilities as their expenses are both unpredictable and possibly ought to be high end.