All hospitality and special expenses must withstand the test of public scrutiny. This policy is meant to guide, by examples, those who authorize expenditures. Where there is a proposed expenditure not listed in this policy, the following principles should guide decision making:
- The expenditure must support the mission and purpose of the University.
- If for an event, the event must be an authorized official University event.
- University officials must exercise prudent judgement when determining whether an expenditure is appropriate.
- The expenditure should not be personal in nature.
- The expenditure should not be able to be construed as additional compensation by the IRS, e.g., bonuses, car payments, annual parking, etc.
- The expenditure should not create, maintain, or increase the value of a personal asset.
Special Situations
Expenses except for alcohol relating to functions, which charge a fee specifically to cover expenses for the event, are acceptable, (e.g., University conferences or functions sponsored by registered student organizations).
University Fleet Services may charge departmental nonsponsored or private funds for motor vehicle tickets and fines assessed to university-owned vehicles, but only if they cannot identify or collect from the person who was driving the vehicle when the violation occurred.
The University will impose sanctions on students, faculty and staff who are found responsible for non-compliance. In addition, departments will be held responsible for the actions of their employees when they are the party responsible of record for an event. Among the sanctions that are possible for policy violation is the prohibition against serving alcohol at future events. Additionally, violation of state law may result in legal consequences.
As a public institution, the University must demonstrate prudent use of funds entrusted to it by various constituencies. The general public, legislators, students, donors, and granting organizations and individuals must be assured that funds are wisely spent and do not personally benefit University officials and employees.
See Fund Types for funds included in definition. See Expense Allowability Chart for Expense Allowability by Expenditure Type.
- Non-Sponsored Funds (NS)
- Non-Sponsored funds include: general operations and maintenance, miscellaneous unrestricted, auxiliaries, internal service organizations, federal appropriations, state specials, and miscellaneous restricted. See funds included in this fund type.
- Sponsored Funds (SP)
- Sponsored funds are SPA, whether from governmental sources, individuals, foundations, or corporations. The allowability guidelines (see Appendices) reflect the most restrictive provisions of grantors. Variations from these guidelines may be specifically allowed by the sponsor. See funds included in this fund type.
- Private Funds (PVT)
- Private funds include gifts from University recognized foundations, individuals, business and industry, and unrelated foundations. See funds included in this fund type.
- Non-Current Funds (NC)
- Non-Current Funds include: loan, endowment, and similar plant and agency funds. For purposes of this policy, agency fund expenditures are subject to constituency approval. See funds included in this fund type.
- Private Practice Funds (to be determined)
- Those funds that are established to account for private practice activity. This includes any income earned as a result of clinical or patient care as defined by the Regent's Policy on private practice plans. See funds included in this fund type.
- President
- Delegate responsibility to approve exceptionis to the University Alcohol policy.
- Risk Management and Insurance
- Approve exceptions to the Regents Policy "Alcoholic Beverages on Campus"
- Exec. Director of the Board of Regents, Presidents, Provosts, Chancellors, TC Campus Vice Presidents or designees
- Approve reimbursement expenditures related to official University recognition or reception events. These expenditures must be documented to include the purpose of the event, location, date, nature of the attendees (alumni, donors, etc.), and number of attendees.
- Internal Audits
- If inappropriate expenditures are found, Internal Audits will require the authorizing administrative unit to recover the expenditure from the individual involved.
- Departments
- Document expenses. Complete Form 23 when necessary. Correctly code the expenditure so that expenses that are "unallowable" from a federal A-21 cost perspective are identified. Comply with the terms and conditions on the back of President's Form 23 (page 15).
Will the University reimburse expenses for........?
Q: Monthly Staff meetings (coffee / rolls) or Monthly Staff lunch meeting?
A: Yes, if the business purpose of the meeting is clear. The best way to make the purpose clear is to have a formal agenda.
Q: Reception for conference room dedication?
A: Yes, if:
- On U property, staff residence or off-campus facility on contract list.
- Refreshments or meals provided by on site facility or moderately priced caterer.
- Entertainment limited to intra-U resources.
- $ per individual is reasonable.
Q: Dedicate a day of library fines to charity?
A: No.
Q: Park free for food donation?
A: No.
Q: Contributions by Private Practice groups?
A: No.
Q: What type of employee recognition programs are permitted at the University?
A: The University sponsors a number of formal recognition programs for University employees. Examples include the President's Award for Outstanding Service and the Civil Service Staff Award.
In addition, the University encourages colleges and departments to recognize their employees for contributions to the University in a less formal manner. University Employee Recognition Awards provides a summary of awards and recognition activities that could be implemented by a college or department to recognize the workforce for a job well done. Employee recognition is core to employee satisfaction, retention, and ultimately customer satisfaction with the University.
Federal tax law stipulates that the value of certain prizes and awards made to an employee are generally included in an employee's gross income. However, the law provides certain exceptions to this general rule. The recognition activities described in University Employee Recognition Awards are organized into two categories, nontaxable and taxable, based upon the law and regulations.
Departments offering taxable awards will assume responsibility for ensuring accurate income tax reporting to their employees and will assume the risk of fines and penalties for any failure to report taxable income.
- Amended:
- November 2004 - Updated Procedure 3.16.2.2 - Purchasing Alcohol with University Funds. Added a checklist: Acknowledgement of Laws and University Standards Relatedto Serving Alcohol to the Application to Serve Alcoholic Beverages at an On-Campus Event Form. Responsibilities and Special Situations section updated. Processing of these applications is now the responsibility of Risk Management and Insurance rather than the President's Office.
- Amended:
- July 2003 - Added Hospitality Expense Supplement, Allowability of Club Memberships, Spouse Expenses and Other Expenses Incurred in Donor Development and Faculty Recruitment Activities. The Expense Allowability Chart was updated to reflect these changes.
- Amended:
- September 2002 - Personal memberships in social, non-professional organizations are no longer allowed, regardless of funding source.
Any allowable expenditure of flowers, gifts or awards is limited to $75. Clarified definition of memorial gifts. Added more examples of non-allowable expenses.
- Amended:
- March 2002 - Application to Serve Alcohol on Campus form was made into a fillable pdf document. Fund numbers updated.
- Amended:
- February 2000 - Added Special Situation for Fleet Services charging vehicle fines to departmental accounts. Updated Expense Allowability Chart.
- Amended:
- October 1999 -Added FAQ on employee recognition
- Supersedes:
- Hospitality and Special Expenses, July 1990, May 1991
- Effective:
- June 1995
-
To obtain a copy of a historical policy,
e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.
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