4.133 Administration & Finance
USE OF UNIVERSITY FUNDS FOR BUSINESS ENTERTAINMENT EXPENSES
Date Adopted/Most Recent Revision: 08/03/07
  1. Purpose and Scope
    The administration of Midwestern State University recognizes that refreshments, business entertainment, and other discretionary expenditures are necessary to the operation of the university. In order to prevent abuse, maintain control, and ensure compliance with all university, state, and federal regulations, policies and procedures governing such expenditures must be set forth. To this end, this policy defines events that qualify as official functions, prescribes guidelines for official functions, and specifies lines of authority for approval of all such discretionary expenditures.


  2. Policy Statement
    Certain university funds may be expended for official functions and discretionary purposes not directly related to the educational process if they can be demonstrated to be of clear benefit to the university and meet the guidelines outlined in this policy. All requests for payment or reimbursement of such expenditures will be subject to individual review and approval and must be paid through departmental funds appropriate to the expenditure. Full documentation and authorization in accordance with this policy must accompany the request. Payment from gift or sponsored-project funds shall be authorized only when the expenditure has been approved in writing by the donor or stipulated in the terms of the contract or grant.

    Expenditures that do not meet the definitions and limits of this document, including approval and documentation requirements, will be considered personal expenditures and become the responsibility of the person who incurred the expenditure.


  3. Definitions
    1. Discretionary Expenses: Those expenditures not directly related to the university’s educational, research, and public service mission. For the purposes of this policy, discretionary expenses include, but are not limited to, all expenditures specifically addressed in this policy.

    2. Entertainment Expenses: Expenditures for food, beverages, tickets for performances or athletic events, and related supplies for events which involve one or more university employees and/or one or more guests.

    3. Official Functions: Those social functions, entertainment events, quasi-social functions, meetings, special events, and conferences that can be demonstrated to provide clear benefit to the educational, research, or community-service missions of the university.



  4. General Provisions
    1. Expenses for business meals, including beverages, tax, and gratuity, may be reimbursed from university funds if the supervisor of the person incurring the expense regards the occasion necessary and the amount reasonable. Proper documentation must be submitted; the supervisor shall signify approval in writing. As a matter of practice, routine staff meetings consisting solely of university employees should be held on campus during regular business hours and should not customarily result in the consumption of meals. To conserve funds, when dining is deemed necessary, staff are expected to use campus dining facilities.

    2. Expenses incurred for meals, beverages, and gratuities not related to university travel expenses and not incurred in the presence of others shall not be paid or reimbursed from university funds.

    3. The use of university funds for departmental/office celebrations or parties is permitted if the expenditures are reasonable, the number of annual departmental/office parties is limited, and the parties are held on campus. Parties and celebrations held off campus are inappropriate. Expenses for off-campus parties will not be reimbursed except with prior written approval of the appropriate vice president, provost, or by the president. University funds should not be used for birthday parties, showers, or similar kinds of activities that are of a personal nature and not related to university business.

    4. Official functions require the advance written approval of the appropriate vice president, provost, or of the president.


    5. Official function costs and discretionary expenditures may be paid or reimbursed from university funds only if the documentation of the expenditure conforms to the regulations set forth in the Midwestern State University Purchasing Manual. Proper documentation and required forms must be submitted and include original, itemized receipts indicating the time, place, and description of the entertainment, the business purpose, the nature of the business benefit expected to be obtained, and the business relationship of the persons entertained, including name, title, and occupation. The names of university employees participating in the event must be included in the documentation. Only employees having a direct, active role in the entertainment of a guest may claim an expenditure for reimbursement. Claims without proper documentation will not be reimbursed.

    6. Food and beverage costs of the spouse of a university employee are allowed when the spouse is performing a university-related business or social role that can be identified and documented.



  5. Specific Provisions Related to Categories of Official Functions and Discretionary Expenditures
    1. Entertainment of prospective faculty and staff and official guests of the university: Expenses may be paid for official functions described as follows:

      1. Entertainment expenses for the recruitment of faculty and staff, limited to the president, provost, vice presidents, deans, department heads, and other faculty and/or staff considered by the president, provost, vice president, dean, or director to be essential to the search process.
      2. Expenses related to events involving official guests of the university, including donors and potential donors, visiting lecturers, visitors from foreign countries, representatives of research organizations, visitors from other universities, uncompensated guests invited to assist in the development of new programs or to evaluate existing ones, alumni, and business and community leaders.

    2. Conferences, workshops, seminars, meetings, or retreats for university employees: Expenditures for meals or refreshments related to group activities composed exclusively of university employees may be paid if the activity can be shown to benefit the university and if the provision of refreshments is authorized in advance by the appropriate vice president, provost, or by the president.

    3. Receptions or functions for university employees that are social in nature: Such expenditures require advance written approval of the appropriate vice president, provost, or the president.

    4. Tickets to concerts, plays, or athletic events; entrance fees to golf tournaments; etc.: Occasions may arise in which the purchase of tickets or the payment of fees of designated employees of the university and/or their external guests is permitted. Tickets may be purchased for such events only when they relate to fund-raising activities for potential university donors, recruitment of faculty or administrative staff, or entertaining other official guests of the university. In all such instances, clear benefit to the university must be demonstrated, expenditures must come from appropriate university funds, and expenditures require advance written approval of the appropriate vice president, provost, or the president.

    5. Club memberships: University funds may be used to pay membership fees as required of a university official when the expenditures are deemed necessary in the performance of the official’s designated duties and responsibilities. Expenditures incurred through such memberships must be business-related and are subject to the documentary requirements noted in the General Provisions section of this policy.

    6. Alcoholic beverages: Expenditures for alcoholic beverages may be paid from only restricted funds (4-4XXXX) unless prohibited by the donor.