300-25 Entertainment and Meeting Expense
|
Effective
Date: |
|
Office
of Origin:
Accounting Office
|
I. Purpose
This policy was developed
to ensure that on occasions when judicious extension of hospitality is in the
best interest of the University, University-controlled funds for entertainment
and meetings are expended prudently and in a manner compatible with the
University's use of public funds.
II. Definitions
Entertainment: the provision of meals or
light refreshments.
Exceptional entertainment: entertainment for which
the cost exceeds the per-person amounts authorized in Section III. E. Also, any
expenditure or occasion that might be considered a personal rather than an
official responsibility (see Section III. B below).
Non-exceptional
entertainment: the provision of meals or refreshments for the types of
University-sponsored events identified in Section III. A and for which the cost
does not exceed the per-person amounts authorized in Section III. E.
Official guest:
a person not otherwise
employed or compensated by the University, who renders a service to the
University and/or is present at the invitation of a person authorized to make
expenditures of funds for entertainment on behalf of the University.
III. Policy
A.
Allowable Entertainment
The
use of University-controlled funds to defray the costs of meals or light
refreshments may be approved for, but is not limited to, the following types of
University-sponsored events and circumstances:
1. administrative meetings directly concerned with the welfare of the University in which meals are an integral part and not supplied solely for personal convenience;
2.
meetings with prospective academic or staff appointees;
3.
meetings with official guests;
4.
meetings between faculty or administrators and students;
5.
meetings of a learned society or organization.
With
the exception of item 2 above, the expenses of spouses of University employees
ordinarily shall not be paid by the University. All claims for spousal
expenses, including meetings with prospective appointees, must be approved as
an exceptional entertainment item (see Section III. F.2).
B.
Other Events and Expenditures
If
not prohibited by fund restrictions, expenditures incurred in conjunction with
occasions that normally would be of a personal rather than an official capacity
may be reimbursed only if approved at the appropriate level as an exception to
policy regardless of the level of spending (see Section III.F.2 for required
authority). Examples of such occasions include, but are not limited to,
Christmas or other holiday events, departmental picnics and retreats,
retirement and service award celebrations, and attendance at theatrical and
athletic events.
C.
Meeting Expenses Other Than Food or Refreshments
1.
Conference room expenses directly related to an official University-sanctioned
event, as defined above, may be authorized and paid in accordance with this
policy, as well as through the regular purchasing process. However, only those
expenses provided by and billed by the hotel, conference center, etc., are
covered by this policy.
2.
Lodging and other subsistence expenses are normally claimed individually
through the travel reimbursement system. However, direct payment to the
establishment will be allowed when the University has contracted for master
billing of lodging costs (room and tax only) for official University guests,
and when payment is requested in accordance with this policy.
3.
All other materials or services provided by vendors or persons other
than the conference facility must be secured through the regular purchasing
process.
D.
Funding Sources
Official
entertainment in conformity with the regulations outlined above may be financed
from various University fund sources, subject to the specific limitations
indicated below.
1. State funds
General
funds (19900) and special state appropriations (205XX) may not be used to
reimburse that portion of the meal expenses that is in excess of the allowable
rates listed in Section III.E.
Purchases
of alcoholic beverages, tobacco products, and tickets to theatrical and
athletic events for entertainment purposes may not be made with general funds
and special state appropriations.
2. Federal funds
a)
Terms of contract and grant awards may not authorize expenditures which
are not in accordance with this policy.
b)
Guidelines regarding the charging of entertainment costs to federal
contract and grant funds, including capitation grants for medical schools, are
covered in two sections of
Office
of Management and Budget Circular A-21 as excerpted below.
1)
Section J-12 - "Entertainment costs. Costs incurred for amusement,
social activities, entertainment, and any items relating thereto, such as
meals, lodging, rentals, transportation, and gratuities, are unallowable."
2)
Section J-22 - "Memberships, subscriptions, and professional
activity costs. Costs of meetings and conferences, when the primary purpose is
the dissemination of technical information, are allowable. This includes costs
of meals, transportation, rental of facilities, and other items incidental to
such meetings or conferences."
The
above represents a general position on costing by the federal government. Most
federal agencies allow payment of the expenditures described in Section J-22
only if specifically authorized in the contract or grant award or in compliance
with their published regulations (e.g., Public Health Service Grants Policy
Statement, National Science Foundation Grant Policy Manual).
If
required by contracting and granting agencies, written approval from the agency
must be obtained prior to incurring an expense for entertainment. Any questions
concerning the allowability of expenditures of this
nature should be directed to Accounting--Extramural Funds.
3)
Other non-state funds
Various
non-state funds under University control (e.g., endowments, gifts, etc.) may be
used to finance official entertainment in accordance with this policy subject
to restrictions, if any, on the funds.
c)
Purchases of alcoholic beverages or tobacco products may not be made
with federal funds unless such purchases are specifically authorized in writing
by the granting agency.
E.
Amounts Authorized
The
maximum amounts allowed for meals are listed below. Exceptions cannot be made
to authorized maximum rates for meal allowances
charged to state general funds. When adequate justification exists and the
funding source is other than state general funds, exception may be granted by
the appropriate approving authority (see III.F.2 below) to reimburse expenses
at rates in excess of those given below.
|
Amounts Authorized Per
Person for Non-Exceptional Entertainment |
|
|
Meal |
Amount |
|
Breakfast |
$26.00 |
|
Lunch |
$38.00 |
|
Dinner |
$64.00 |
|
Light
refreshments |
$17.00 |
|
Buffet
reception |
Same
as the applicable meal allowance associated with the type of buffet. |
NOTE:
University employees who serve as official hosts or participate at the request
of the official host and who are on travel status shall deduct the appropriate
travel meal allowance from their travel expense claim for any meal paid for
under this policy; see
Administrative
Policy 300-37, General University Travel.
F.
Approval Authority for Payment
Individuals
may not approve payments to themselves, nor to individuals to whom they report
either directly or indirectly. In these instances, approval must come from a
higher level, or by a delegate approved by the Chancellor.
The
expenditure of University-controlled funds for entertainment and meetings shall
be approved only when, in the judgment of the approving authority, the occasion
is significant to the affairs of the University and is not of the type that
individuals would normally undertake in a personal rather than an official
capacity. Approval of such expenditures will be based on careful evaluation of
costs to be incurred, the anticipated benefits, and the availability of funds.
The appropriate approval levels for entertainment and meeting expenses are
given below. The only exceptions allowed to the stated approval authority shall
be those approved, in writing, by the Chancellor.
1.
Non-exceptional entertainment and meeting expenditures
Department
heads have authority to approve non-exceptional entertainment expenditures and
meeting expenditures. This authority may be redelegated
to one high-level staff employee (e.g., chief administrative officer/department
manager) and must be documented by a properly completed signature authorization
form.
NOTE:
For purposes of this policy, department heads include the Chancellor, vice
chancellors, deans, Medical Center Director, and those heads of departments
(e.g., department chairs) who report directly to them.
2.
Exceptional entertainment
In
addition to the above authority, the Chancellor, vice chancellors, deans, and
Medical Center Director have the authority to approve exceptions to the
entertainment policy within their areas of responsibility. This authority may
be redelegated only with the written approval of the
Chancellor or the appropriate vice chancellor.
G.
Use of On-Campus Caterers
Department
heads are responsible for compliance with this policy when using campus
catering services.
H. Accounting for Expense - Object Coding
|
Type of Expenditure |
NCA Code |
|
Rental
cost of room or facilities used for University business meeting or conference
held primarily for the dissemination of technical information. |
433210 |
|
Rental
cost of equipment (e.g., audio visual) used for University business meeting
or conference held primarily for the dissemination of technical information. |
433230 |
|
Food
and beverage (other than alcoholic beverages) costs of University business
meetings or conferences held primarily for the dissemination of technical
information. |
433510 |
|
Costs
of alcoholic beverages and other costs of amusement, diversion, and social
activities and any directly associated costs such as tickets to shows or
sporting events, meals, lodging, rentals, transportation, and gratuities. |
433525 |
I.
Entertainment While on Travel Status
Entertainment
expenses incurred while on travel status must be reported and claimed on the
travel expense voucher (Form U85) for that trip. Travelers who are eligible for
and claim per diem reimbursement shall deduct from their claim the per diem
allowance for any meal paid under this policy. Documentation and approvals
consistent with this policy must be provided on the travel expense voucher.
J.
Purchase from an Employee-Vendor
Approval
by the Vice Chancellor–Administration and Finance is required as an exception
to policy for any purchase from an employee-vendor. An employee-vendor
relationship may exist when purchasing is from a vendor owned (or partially
owned) by an employee or by a near-relative of an employee. If there is a
question whether the purchase involves an employee-vendor relationship,
Materiel Management – Purchasing should be contacted.
K.
Payment/Reimbursement
Payment
to vendors and reimbursement to employees for official University entertainment
expenses is accomplished by submitting a properly completed and approved Check
Request for Entertainment/Meeting Expenses (Form U5/G-2) to Accounting.
Required attachments are:
1.
original invoices for all expenses (a copy of the signed rental agreement
may be submitted in lieu of an invoice for off-campus facility rental charges);
2.
original receipts or canceled checks for all paid items
(for reimbursement claims).
L.
Advance Payments
A
Check Request for Entertainment/Meeting Expenses Form must be used to request
an advance payment or deposit. Such payments will be charged to the requesting
department, which is fully responsible for ensuring that full credit for the
payment is given by the supplier upon settlement. Advance requests should be documented
by a signed agreement or letter from the supplier, and, if such documentation
is not provided, must be approved as an exceptional entertainment item (see
Section III.F.2).
IV. Responsibility
Contact
Office of Origin (see above) with any questions.
V. Related Policies
VI. References