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Policy and Procedure ManualChapter 330, Financial Management and Services Responsible Department: Accounting
and Financial Services Exhibit A, Rates for Entertainment This section outlines policy and procedures governing the manner and extent to which the University may extend hospitality for business purposes. Additional regulations for UCDHS departments are available in UCDHS Hospital Policies and Procedures Section 1833. Additional information and definitions of terms used in this policy can be found in UC Business and Finance Bulletin BUS-79. A. Event coordinator--the individual responsible for ordering the supplies/food for an event in support of the official host. B. Official host--the individual responsible for the business purpose of the event, the selection of the invitees, and hosting guests at the event. C. Work location--the campus where an employee spends the major portion of work time or returns during work hours following special outside assignments. A. Expenses for entertainment and hospitality must be directly related to or associated with the active conduct of official University business (see IV, below). B. The expenditure of funds for entertainment or hospitality shall be cost effective and in accordance with the best use of public funds. C. Entertainment expenses shall be evaluated based on the importance of the event in terms of the cost that will be incurred, the benefits to be derived, the availability of funds, and available alternatives that would be equally effective in accomplishing the desired objectives. IV. Allowable and Unallowable Expenses A. Entertainment and hospitality expenses are allowable for the following (see UC Business and Finance Bulletin BUS-79 for complete descriptions and definitions): 1. For prospective donors, employees, and student appointees for the purpose of generating goodwill. 2. For visitors, guests, and volunteers when it is necessary to the conduct of official business. 3. At business meetings within the following parameters. a. Hospitality provided at business meetings must be infrequent (meals averaging no more than once per month for the same group; light refreshments no more than twice per month for the same group) and may not occur on a routine basis. b. The meal must be a working portion of a meeting taking place over an extended period of time and reflected on an agenda or similar documentation. c. Reimbursement shall not be allowed when colleagues from the same work location choose to conduct business over the lunch hour when the business could have been conducted during regular work hours. 4. On-the-job meals for certain employees required to remain at their work station during meal time. 5. Certain meals provided to students in support of a University educational program. B. Entertainment and hospitality expenses are allowed by exception for the following (see UC Business and Finance Bulletin BUS-79 for complete descriptions and definitions): 1. Employee morale-building activities. 2. Tickets to a sporting, theatrical, or musical event furnished to a prospective donor or employee. 3. Entertainment or hospitality expenses for the spouse/domestic partner of a guest or official host when attendance of the spouse/domestic partner serves a bona fide business purpose. 4. Cash contributions included in a fundraiser fee. 5. Expenses above the allowable per-person rates (see Exhibit A). Note: Exceptional entertainment expenses cannot be charged to state funds. C. The following expenses are never allowable: 1. Expenses that are lavish or extravagant under the circumstances. 2. Expenses that represent taxable income to an employee or student under IRS regulations. 3. Monetary contributions to a political campaign or candidate. 4. Expenses for employee birthdays, weddings, anniversaries; or farewell gatherings for employees with less than 5 years of service. 5. The purchase of property or services for non-business reasons. 6. Expenditures using restricted funds that are not permitted under the terms governing those funds. A. Department heads must approve entertainment expenses that fall within the list of allowable events (see IV.A, above) and per-person spending limits (see Exhibit A). This authority generally should not be redelegated (see Section 330-10 for restrictions on reassigning approval authority). B. Department heads cannot approve their own entertainment expenses. If the department head is the official host, the individual to whom he/she directly reports must approve the entertainment expense. C. Exceptional entertainment expenses (see IV.B, above) require approval by the department head and the Associate Vice Chancellor--Finance/Controller (Davis campus) or Vice Chancellor--Human Health Sciences (UCDHS) or their designees (see UCD DA 130). Exceptional expenses that exceed 200% of the allowable per-person rates must be approved by the Chancellor. VI. Roles and Responsibilities A. The Official Host is responsible for: 1. Verifying that the expenditure is the best choice among the alternatives available to achieve the desired business objective. 2. Securing any advance approvals required for the event. 3. Reimbursing any expenses charged to the University that are later disapproved by the department head/authorized approver. B. The EEV preparer is responsible for: 1. Verifying that all parts of the EEV are completed. 2. Verifying that appropriate supporting documentation is submitted for review. 3. Verifying that the business purpose of the entertainment is adequately described. C. The account manager/DaFIS approver is responsible for: 1. Verifying that the expense is allowable under the fund source. 2. Verifying that funds are available for the expense. D. The Department Head/Authorized Approver is responsible for: 1. Determining if the cost is reasonable, cost effective, and is the best use of public funds. 2. Determining that the expense supports the mission of the University. 3. Verifying the legitimacy of the business purpose for the expenditure. 4. Disapproving any reimbursement requests that do not meet the requirements of this policy. A. Exceptional approvals 1. Expenses for events described in IV.B must be approved using Exhibit B, in advance of the event. a. Requests for approval shall describe the exception requested and the business need for the exception. Exception requests to exceed the allowable per-person rates shall explain why the business objectives cannot be accomplished within the allowable rates. b. Requests should be sent via email to the department head for initial approval, then to the Associate Vice Chancellor--Finance/Controller or Vice Chancellor--Human Health Sciences for official approval before the event. Exceptional expenses that exceed 200% of the allowable per-person rates must be approved by the Chancellor. 2. On rare occasions, the official host may need to request exceptional approval after the event. When this is the case, the official host must explain the reason why approval was not secured in advance. B. Paper form submission for reimbursement Paper form submission can be used to reimburse an off-campus caterer or University employee. 1. Following the event, complete a DaFIS EEV document unless the expenses were charged to a corporate Visa card. 2. Complete the Request for Payment--Entertainment Expense form (available at http://accounting.ucdavis.edu). a. Indicate the DaFIS EEV document number and the employee/vendor to whom payment is due or that the expenses were charged to the corporate VISA card. b. Verify that all expenses are allowable by the fund source listed. c. If the event requires exceptional reimbursement, complete the Request for Entertainment Reimbursement Exception form (Exhibit D) and attach it to the Entertainment Expense Voucher 3. Attach the following supporting documentation to the Entertainment Expense form: a. A guest list that provides the name, title, and occupation or group name of each guest. When the group is very large (e.g., TGFS picnic), the guest list may consist of general guest information rather than individual names. b. Original, itemized receipts for expenses over $75.00 or a Declaration of Lost Evidence form (Exhibit C) if itemized receipts are missing or are not provided. c. For entertainment expenses related to a business meeting, the agenda or equivalent written documentation that verifies the business purpose of the meal. 4. The Entertainment Expense form must clearly describe the business purpose of the entertainment. 5. The official host shall sign the Entertainment Expense form (or the Request for Entertainment Reimbursement Exception if applicable) and acquire approval of the authorized approver. 6. Submit the Entertainment Expense form and supporting documentation to Accounts Payable for processing of payment. For exceptional expenses, submit the forms and documentation to the Associate Vice Chancellor--Finance/Controller (Davis campus) or Vice Chancellor--Human Health Sciences (UCDHS) for reimbursement approval. C. MyTravel electronic submission for reimbursement MyTravel submission can be used to reimburse a University employee only. 1. Complete the entertainment expense report. a. Fax or submit the guest list for the event electronically through the report. b. Fax an itemized receipt for any entertainment expense over $75.00 or Declaration of Lost Evidence Form (Exhibit C) if itemized receipts are missing. 2. Submit the report for automatic routing to the authorized approver. D. Departments who use University Catering services and choose to be charged directly through DaFIS do not need to complete a DaFIS EEV. E. Entertainment expenses while on travel status 1. Legitimate entertainment expenses incurred while on travel status shall be claimed through the procedures described within this policy section. 2. The Entertainment Expense form shall be submitted with the Travel Expense Voucher to ensure proper separation and reimbursement of expenses. A. Serving alcoholic beverages at a University sponsored event requires a UCD Permit to Serve Alcoholic Beverages (see Section 270-21). B. Expenditures for alcoholic beverages cannot be charged to state or federal funds. C. Nonalcoholic beverages and food must be made available during the time alcohol is served. A. Information regarding quantity purchases, funding source restrictions, and tax considerations is available in Business and Finance Bulletin BUS-79. B. Questions should be directed to the Associate Vice Chancellor--Finance/Controller, Accounting and Financial Services. X. References and Related Policies A. UC Business & Finance Bulletins: 1. BUS-79, Expenditures for Entertainment, Business Meetings, and Other Occasions. 2. G-28, Policy and Regulations Governing Travel. B. UCD Policy and Procedure Manual: 1. Section 270-20, Use and Reservation of University Properties and Event Arrangements. 2. Section 270-21, Consumption of Alcoholic Beverages. 3. Section 300-12, Travel Policy--General. 4. Section 300-19, Subsistence Expenses--General. 5. Section 330-10, Approval Authorization. Copyright © 2006 The Regents of the
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