Phrase "pad their expenses"

[Sonichka]

Please, could you tell me what "pad their expenses" mean in this context?

Christina: “Well, you had to do it, Betty. No matter how much you loved the bag. You did the right thing.”
Betty: “I know.”
Christina: “So, then you went and got a bag from the corner guy?”
Betty: “Are you kidding me? No! that thing costs, like, $200. I just kept thinking about what Hilda said about how unfair it was that W. goes to Rio to spend $ 25 000 on props and extras. We couldn’t even effort medicine for my dad.”
Janitor: “Totally, and you have no idea how they pad their expenses. Don’t stop on my account.”

[InsaneMetal]

Isn't it "paid their expenses"?

Also, "we couldn't even effort medicine for my dad", isn't it "we couldn't even afford medicine for my dad"?

[Skrej]

To 'pad' one's expenses is to submit personal or non-business related items on your business expense account.

In other words, you try and get the company to pay for your personal stuff, but thinly disguise it as work-related.
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