Business-Related Hospitality
and
Entertainment Expenditures
Guideline Changes
OVERVIEW
Guideline Changes were made to:
– Streamline requirements
– Be responsive to issues raised by various
individuals/divisions
– Remove superfluous or confusing language
– Clarify certain requirements
II. Authority
– Added reference to Internal Revenue Service (IRS)
III. University Guidelines
B. Allowable Expenditures
−
Expenditures must meet the IRS definition of
directly-related or associated test
III. University Guidelines (continued)
B. Allowable Expenditures (continued)
– Administrative/Business Meeting – updated
• Removed restriction that disallowed use of university
funds to provide refreshments other than water or
coffee
• Replaced with: Light Refreshments may be
appropriate for certain meetings (but not
necessarily on a routine basis)
• Light refreshments should not exceed the limit
established for breakfast and lunch.
B. Allowable Expenditures (continued)
– Spouse or Partner of a UTSA guest or UTSA host
• Cost of meals may be reimbursed provided event serves a
bona fide University business purpose
• Official functions to which a spouse or partner are invited as
matter of protocol or tradition may be considered a bona fide
business related activity.
C. Student Oriented Special Programs
– Renamed Special Events
• To Student Oriented Special Programs and Events
– Modified Eligibility and requirements
• Allows for recurring special programs and events to complete a
“Blanket” BEF for pre-authorization when the event is student
focused.
• Reduces the BEF paperwork for multiple reimbursements and/or
ProCard charges
• Blanket authorization
–
–
–
–
Completed BEF
Estimate of total expenditures
Anticipated dates of events (or range of dates for similar programs)
List of potential vendors or individuals to be reimbursed
E. Expenditure Limits
– Flowers
• Modified restriction that the expenditure limit will not exceed $100
per individual to
• The expenditure limit generally will not exceed $100 per
individual
F. Disallowed Expenditures and Exceptions
8. Reimbursement for state sales tax
– Tax exemption certificate should be provided to merchant/vendor for
all cash purchases of goods or services;
– Reimbursement may be allowed on supplies & related materials on
an exception basis when individual was required to pay taxes;
– Reimbursement of taxes on restaurant charges for meals are
always allowed.
H. Reimbursement Procedures
– Completed and approved BEF must be submitted within
a reasonable period of time
• Changed for consistency with IRS accountable plan
requirements to review the circumstances surrounding untimely
reimbursement requests.
– UTSA has interpreted a reasonable period of time to be
90 days.
– Past 90 days, must have an explanation based on facts
and circumstances for the delay.
– Requires approval by University Controller or designee.
– Repeat offenders may require Vice Presidential
approval.
H. Reimbursement Procedures (continued)
– Allows one BEF for multiple receipts for multiple events
to one individual
– BEF is no longer required for advertising specialties
and promotional products provided at training
programs, seminars or institutional functions
– If parking is the only expense incurred
• Use the Mileage/Parking Log form
H. Reimbursement Procedures (continued)
3. Certifying the completed BEF
Note: Only one event host and one administrator are
required to certify each BEF – unless additional
approval is required by guidelines
A. Event Host:
−
−
An employee present at the event certifying
expenditures are in accordance with guideline, or
Normally the individual who is requesting payment or
reimbursement. However, that is not a requirement as
often individuals within the department may purchase
items for events to which they do not attend.
H. Reimbursement Procedures (continued)
3. Certifying the completed BEF (continued)
B. Administrator Approval
– Designated approver of entertainment and
hospitality expenses
– Must be either a Assistant/Associate Dean,
Assistant/Associate VP, VP or the President
– Not the same as the account administrator
– President or VP event host, then VPBA must
approve
H. Reimbursement Procedures (continued)
3. Certifying the completed BEF (continued)
C. Additional Approval is required
1. The maximum allowable per person limit is exceeded
– Appropriate VP must approve
– VP signs as administrator – no additional approvals are
required, unless VP is event host
2. The total cost per single event exceeds $5,000
– Appropriate VP approval required
– Additional approval is not required unless VP is event host
H. Reimbursement Procedures (continued)
3. Certifying the completed BEF (continued)
C. Additional Approval is required
3. When requesting other exceptions to policy
− Appropriate VP approval required
− Additional approval is not required unless VP is
event host
4. Expenditures for Table Sponsorships
− Vice President for University Advancement or
designee must approve
I. Accounting Object Codes
• Object Code 1302 – Social Club Dues
– Cost of President/Provost approved individual
social memberships & business related club
dues, such as Rotary
• Object Code 1309 – Official Student Occasions
– Cost of food, beverages, catering charges room
rental and related expenditures associated with
student official occasions
IV. Definitions
– Per IRS regulations §1.274-2 (c) and (d)
• Associated Test
– Active conduct of the employer’s business and
– Directly before or after a substantial business
discussion
• Directly Related Test
– Main purpose is the active conduct of business
– Business conducted during meal period and
– General expectation of deriving income or specific
benefit in the future
IV. Definitions (continued)
– Light Refreshments
• Non-alcoholic and edible items commonly served
between meals, but not intended to substitute for
meals, such as tea, coffee, soda, bottled water,
doughnuts, cookies, fruit or similar items.
• Buffet line, sandwich line, heavy hors d’oeuvres or
similar fare is not considered to be light refreshments
Questions