POLICY LIBRARY
http://www.policy.ku.edu
Financial:
Reimbursement;
CATEGORY:
Personnel: Workplace
Rules & Guidelines
POLICY STATUS: DRAFT
POLICY TITLE:
Reimbursement of Entertainment Expenses
POLICY ADDRESS:
TBD
POLICY PURPOSE:
To provide guidelines for reimbursement of expenses incurred by
University or affiliated corporation employees for business-related
meals, alcoholic beverage service, and related events.
APPLIES TO:
Employees of the University of Kansas and of the following affiliated
corporations: Kansas Athletics, Inc. (KAI), the KU Memorial Unions
(Unions), the University of Kansas Medical Center Research Institute,
Inc. (KUMCRI), University of Kansas Center for Technology
Commercialization dba KU Innovation and Collaboration (KUCTC dba
KUIC) and the KU Center for Research, Inc. (KUCR).
POLICY
STATEMENT:
It is essential for the University to maintain a sound and defensible reimbursement policy for
business expenses related to entertainment. The University is committed to maintaining integrity
and fiscal responsibility in the approval and accounting of benefits provided to employees,
including meals or entertainment expenses that are funded by the University or by one of the
University’s affiliated corporations for business purposes. The affiliated corporations
(corporations) covered by this policy include Kansas Athletics, Inc. (KAI), Kansas Memorial
Unions (Unions), the University of Kansas Medical Center Research Institute, Inc. (KUMCRI),
University of Kansas Center for Technology Commercialization dba KU Innovation and
Collaboration (KUCTC dba KUIC) and the KU Center for Research, Inc. (KUCR). Such expenses
paid for the benefit of employees require consideration of state ethics requirements, federal tax
laws, reasonableness of cost, and appropriateness of expenditure. For purposes of this policy,
University resources include funds on deposit with the State, the Kansas University Endowment
Association (KU Endowment), KUMCRI, KUCR or other affiliated corporations, although not all
University funds reimburse in the same manner. The Lawrence and Medical Center campuses
have policies that dictate which funds can be used for specific expenses.
Definition of business purpose:
A business purpose is defined as one that supports or advances the goals, objectives, and
mission of the University; and adequately describes the expense as a necessary, reasonable,
and appropriate business expense for the university.
Meal Expenses
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Meal expenses while entertaining others that are to be paid directly or through reimbursement to
employees, whether incurred on or off campus, will be allowed only for substantiated University
business purposes. (Note related policies listed below in this document for purposes of payment
of employee travel expenses.)
Reimbursement for entertainment meal expenses will be limited as described below. The meal
expense limit encompasses food, alcohol, gratuity, and sales tax expenses associated with each
meal, and is calculated as follows: three times the current state per diem rate for the city,
prorated 25% for breakfast, 25% for lunch and 50% for dinner. For example, if the state per diem
rate for Lawrence were $50, the maximum allowable daily amount would be $150, broken out as
$37.50 each for breakfast or lunch, and $75 for dinner. The calculated expense limit for the
current fiscal year will be posted on the KU policy website.
FY 2014 Entertainment Reimbursement Table: Meals
Location
Breakfast
Lunch
Dinner
In-state
$35.25
$35.25
$70.50
Out-of-state, regular
$35.25
$35.25
$70.50
Out-of-state, high-cost
$37.50
$37.50
$75.00
Borough of Manhattan and D.C.
$48.75
$48.75
$97.50
International
$50.25
$50.25
$100.50
Listing of High Cost and Special High Cost Areas available here.
In order for an employee to obtain reimbursement for the meal expenses of a non-employee
guest such as a visiting scholar or a candidate for a University position, there must be an
established business purpose for the guest’s participation in the activity. When seeking
reimbursement, the employee hosting the guest must provide a clearly stated and established
business purpose including why his or her attendance was necessary.
Individual Meal Expenses for Spouses and Family Members
In order to avoid even the appearance of an impropriety, business meals for spouses and other
family members of employees are normally not reimbursed. In rare cases a spouse or family
member’s meal may be reimbursable if a bona fide business purpose is established when the
spouse’s or family member’s presence serves an unquestionable University business interest and
when the spouse or family member actually spends a substantial amount of time assisting in
accomplishing the employer’s purpose. Mere performance of social functions does not
sufficiently meet these requirements. The presence of the spouse must be essential, and not just
beneficial, to the employee’s ability to carry out his/her business purpose for the University.
Examples of scenarios in which an employee spouse could be serving a university business
purpose:
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Spouse of the chancellor, Executive Vice Chancellor, or a dean when meeting alumni or
engaging in fund-raising events.
The spouse of an employee who is hosting a visiting lecturer who travels to the University
to make a presentation at which the visiting lecturer’s spouse is present.
Meals associated with recruitment of a prospective faculty member whose spouse is in
attendance.
University events held at the employee’s home when the spouse participates as a host.
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Group Meal Expenses Associated with Employee and Graduate Student Recruitment
When hosting candidates, search committees are charged with portraying the University of
Kansas in the best light while demonstrating fiscal accountability and appropriate stewardship of
University resources. Meal expenses involving members of the search committee are
reimbursable from KU Endowment and other authorized funds. Candidates’ meal expenses
incurred while traveling or while on their own time (e.g., breakfast in the hotel before interviews)
will be reimbursed with other related travel expenses included in a Contractual Services
Agreement. Reimbursement of meal expenses will not be authorized for spouses or for faculty
and staff who are not directly involved in the search or recruitment process. Reimbursement for
employee and graduate student recruitment meals generally will be limited to three members of
faculty, staff or student body plus the candidate.
Events
School or departmental events:
Regular: University schools and departments host many events that have a clear business
purpose: e.g., receptions for new faculty and students at the beginning of the academic year,
staff appreciation and recognition, team building, donor and alumni recognition events. Regular
events that do not need pre-approval are:
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Events associated with graduation
Holiday or beginning of the academic year events
New faculty receptions
Recruitment or development events
Staff development or morale. For reasons of employee training and/or morale and team
building, it can be beneficial for divisions/departments to provide food and beverages for
staff at retreats, celebrations or team building events.
Retirement events held on campus
Spouses at regular events:
A department or school must obtain advance approval from the appropriate dean, vice
provost/chancellor, or provost/EVC if spouses are to be invited to regular events for which
University resources are to be expended. The following events do not need approval but
more than three of these a year in which spouses are invited are considered excessive and
will trigger additional scrutiny.
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Holiday events if all department faculty and staff are invited.
New faculty/administrator receptions, especially when the faculty member/administrator
and spouse are moving from out of town and the purpose is to provide a social network
for the faculty member and spouse.
Events designed as recruitment or development events that are specifically targeted
toward employee spouses.
A department dinner to recognize a distinguished professor who is new to the
department.
All other school, center or departmental events:
 Pre-approval should be sought for events that fall outside of this policy. Such approval
should be sought from the appropriate provost/EVC (or designee). Lawrence campus and
its reporting units should use Part B of the Alcoholic Beverage and Reimbursement PreApproval Request Form to collect approval (link to updated form will be included). This
pre-approval should be attached to the reimbursement documentation when submitted
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for payment.
University-wide events: Events that are held for the entire University such as opening convocation
and graduation are planned centrally, seek approval directly through the chancellor’s office.
Distinguished Professor Recognition Dinners
Dinners held in conjunction with the recognition of new distinguished professors are hosted
and organized by the provost at Lawrence or the EVC at KUMC. These events generally will
be limited to one or two per semester and may be held on campus or off campus. These
recognition dinners are considered to be in furtherance of official University business and
reflect the University’s underlying mission of cultivating distinctive scholarship.
The distinguished professor who is being honored may invite up to four guests. Other
participants from the individual unit involved may be invited to bring their spouses to the
recognition dinner.
Alcoholic Beverages:
University funds (including KU Endowment, KAI, Unions, KUMCRI, and KUCR funds)
generally may not be used for expenses associated with alcoholic beverage service unless
the alcohol is purchased from and served by a licensed caterer (KU Memorial Unions for
service on the Lawrence campus or an external licensed caterer or a restaurant for service
elsewhere). An exception may be made for off-campus events at Departmental or School
representatives’ homes at which only beer and wine are served. Use of this exception for offcampus events does not need further approval, but more than two of these a year are
considered excessive and will trigger additional scrutiny.
.
EXCLUSIONS OR
SPECIAL
CIRCUMSTANCES:
This policy does not apply to the employees of the Kansas University
Endowment Association (KU Endowment) and of the Kansas University
Alumni Association (KUAA).
CONSEQUENCES:
Meal or alcohol reimbursements from University funds will not be
approved if the procedures described here are not followed.
CONTACTS:
Responsible Office:
Business and Financial Planning
Contact:
Chief Business and Financial Planning Officer
785-864-4868
[add email]
APPROVED BY:
APPROVED ON:
EFFECTIVE ON:
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Chancellor
REVIEW CYCLE:
Annual
RELATED
DOCUMENTS:
Add link to state per diem table from Katrina
Food and Beverage Purchases with University Funds (Hospitality
Policy) (Comptroller, Lawrence campus)
General Travel Information Policy (Comptroller, Lawrence campus)
Need KUMC link to Official Hospitality Policy
KUMC Travel Audit website
DEFINITIONS:
University Resources include funds on deposit with the State of
Kansas, KU Endowment, KUMC RI, KUCR, or other affiliated
corporations.
KEYWORDS:
Reimbursement, meals, entertainment
REVIEW/CHANGE
HISTORY:
Prior to receiving final approval from the Chancellor, this policy was
reviewed by Business and Financial Planning, KUMC Vice Chancellor
for Administration, KU-L Vice Provost for Administration and Finance,
and General Counsel as well as leaders of KU’s affiliated corporations.
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