(A)      Policy statement. This rule establishes the conditions for the use and reimbursement of entertainment expenses, including business meals and food service.

(B)       Eligibility.

(1)       Authorized purposes.

(a)       To establish and maintain effective external communications and relationships for the benefit of the university.

(b)       To assist operationally in the utilization of early morning, noontime, and evening hours in conference activity with external clientele or prospective employees of the university, thus expanding the available working hours for such purposes, with individual guests or small groups of guests.

(c)        To provide appropriate amenities for organized events of the university, such as conferences and academic ceremonies in which friends and clientele of the university are invited guests.

(d)       To provide appropriate food service for formal employee meetings and student functions in university facilities particularly when employees or students give up personal time to participate.

(2)       The authorized purposes of entertainment expenses supported by university funds do not generally include the following:

(a)       Entertainment of colleagues within the university, or spouses or personal acquaintances, except where such persons are inseparably intermingled with official guests at events and pursuant to authorized purposes as listed in Section (B)(1) of this rule.

(b)       Entertainment in personal residences of employees.

(C)       Implementation.

 (1)      The university’s departmental purchasing card is not to be used for entertainment expenses.

(2)       Business meals.

(a)       University funds can be used for properly documented meals if the primary purpose is a business discussion.  Business meals must include at least one non-university employee.  Expenses may be incurred only for those individuals whose presence is necessary to the business discussion.  Amounts should be reasonable and actual.  Using university funds for the costs of alcoholic beverages will not be authorized.  Tips should be reasonable and generally not exceed 15 per cent.

(b)       An itemized receipt is required and should be requested at all times. In addition to an itemized receipt, internal revenue service rules on substantiation of business expenses require documentation of the time, date, place, business purpose, attendees at the meal, and affiliation of attendees.  The documentation requirements apply to all on campus and off campus business meals, regardless of payment method.  Accordingly, all meals charged to departmental accounts through an “interdepartmental charge” (“IDC”) require this documentation.

(c)        The university will deny reimbursement for meal expenses that lack documentation or a clear business purpose.  However, occasional meals provided as part of a university function may be permitted, as described in section (c) of this rule.

(3)       Food service at university functions.

(a)       University funds may be used to provide food and refreshments at a seminar, retreat, workshop, orientation, or other university-sponsored function.  When food service is used, care must be taken to keep the price of food and refreshments consistent with the purpose of the event.  For all meals supporting documentation must adhere to the policies as established in paragraph (3)(b)(i) of this rule.

(b)       Food and refreshments may be provided at meetings of employees and student functions at the discretion of the appropriate executive officer.

(4)       Incidental costs of entertainment. University funds used for incidental expenses, such as gratuities for service, use of entertainment space, room arrangements, or floral or other decorations, shall be reasonable and actual. These incidental costs must be related to the authorized purposes of incurring reimbursable entertainment expenses as outlined in this rule.

(D)       Reimbursements.

(1)       Entertainment expenses are the individual’s personal responsibility and are reimbursed, if allowable, after approval by the appropriate executive officer.

(2)       For all meals, supporting documentation must adhere to the policies as established in section (C)(2)(a) of this rule.

(3)       In the event that a reimbursement was overstated, the individual will be required to reimburse the university.

Effective: August 22, 2008
Prior Effective Dates: April 21, 1992; October 25, 2000; June 1, 2007