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Official Explanation :

The sentence is correct as written. The pronoun its may seem awkward because some may assume it is a pronoun referring to the plural noun, directors. However, it refers to the board of directors which is a singular, collective noun.

Choices (B) and (C) are incorrect because their is a plural pronoun and does not agree with the singular, collective noun board of directors.

Eliminate (D) because the present verb is spending does not match the time sense of the sentence reflected by the past tense verb questioned.

Finally (E) is incorrect because although changes the meaning of the sentence. The correct answer is (A).
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