ADMINISTRATIVE GUIDELINE
There are occasions when the judicious extension of hospitality in connection with official university business is in the best interest of the University. This guideline outlines the University policy and procedures governing the manner and extent to which the university may extend hospitality for business purposes only, provides maximum per person rates authorized for meals and refreshments, and specifies the University funds that may be used for such purposes.
This guideline applies to all hospitality expenses incurred by the University, the Foundations and all other Auxiliaries including the Forty-Niner shops and Associated Students Inc. regardless of the source of funding. The auxiliaries and departments may choose to implement more restrictive policies.
Travel and Lodging expenses are not covered under this policy. Please refer to Campus Policy and Procedures Governing Travel and Relocation Expense Reimbursement at CSULB Travel Procedures.
This policy was initially adopted pursuant to Executive Order 761 issued by the Chancellor's Office and continues under ICSUAM Policy 1301.00.
The guideline set forth is issued under the authority of the Vice President for Administration and Finance. Implementing procedures are delegated to the Associate Vice President of Financial Management.
A person to whom authority has been delegated in writing to approve hospitality expenses and to approve exceptions to the hospitality guideline.
The Approving Authority is responsible for determining whether Hospitality Expenses serve a bona fide University business purpose.
Official hospitality expenses may be paid from various University funding sources. The Table in Appendix B summarizes funding sources for payment of Hospitality Expenses.
In the event of a conflict between the terms of the fund (e.g. funding source) and University policy, the stricter of the two policies shall apply.
Allowable Funds - Funds allocated to the University to be used in conjunction with the University’s instructional mission. Funds include CSU Operating Fund (GF001). Other eligible funding sources for e Housing, Parking, External Revenue, CCPE and other funds as indicated by their trust agreement or setup documentation.
Auxiliary Organization Funds - Funds maintained by the Auxiliary Organizations
Unallowable Funds - Funds not listed above are excluded from use with hospitality expenses.
Expenses for hospitality must be directly related to, or associated with, the active conduct of Official University business. When a University employee acts as an official host, the occasion must, in the best judgment of the approving authority, serve a clear University business purpose, with no personal benefit derived by the official host or other University employees. In addition, the expenditure of funds for entertainment should be cost effective and in accordance with the best use of public funds.
The procedures in this guideline are intended to conform to the Internal Revenue Service regulations related to entertainment expenses. Accordingly, any payment made to an employee in connection with hospitality must not result in taxable income to the employee. In order to conform to IRS regulations, the expenses that are reimbursed must meet one of the following tests:
When determining whether a hospitality expense is appropriate, the approving authority must: evaluate the importance of the event in terms of the costs that will be incurred, the benefits to be derived from such an expense, the availability of funds, and any alternatives that would be equally effective in accomplishing the desired objectives.
Following are examples of situations that meet the guideline requirements:The following hospitality expenses shall not be charged to the CSU Operating Fund (GF001). They may be charged to other funding sources provided it can be demonstrated that such an expense serves a University business purpose and there are no restrictions on the other funding sources that disallow the expense.
Approval for all Official University hospitality expenses must be obtained at the appropriate level. Individuals with delegated approval authority shall not approve requests for expenses of events for which they were the Official Host.
In order to ensure that the approval of hospitality is entirely independent, individuals with delegated approval authority shall not approve the expenses of a person to whom they directly report. The approving authority is the next highest level of the Official Host.
Delegation of Approval Authority
The approval authority for hospitality expenses follows the campus administrative guideline for signature authority.
Signature Authority Guideline
Exceptions to the Hospitality Guideline
When and exception is present, the Hospitality Payment Request form must include a written justification as to why adherence to policy was unavoidable and necessary to achieve a University business purpose. The fact that actual costs exceed the authorized rates is not, in itself, adequate justification for an exception request.
If adequate justification exists and provided such costs are deemed to be ordinary and necessary under the circumstances, an exceptional expense may be approved. Reimbursements of hospitality expenses shall be limited to the actual costs incurred.
This delegation of exceptions does not extend to the following:
Expenses that constitute taxable income to the recipient.
The current maximum rates may be found in Appendix A.
Maximum rates allowed for hospitality include food, beverage, tax, gratuity and service charges.
The maximum rates do not include additional expenses such as the rental of meeting or conference facilities, flowers, linens, equipment rental, or miscellaneous supplies.
Under Internal Revenue Service regulations, an entertainment (hospitality) expense will be considered taxable income to an employee if:
The above types of expenses are not allowable under this policy.
Officially Recognized Events Hosted by the University or Foundation
Payment or reimbursement for award banquets, recognition dinners and other special events or celebrations not hosted by the University or Foundation but in which employee attendance is considered appropriate as support to or from the community shall not be charged to the CSU Operating Fund. These events are not considered hospitality expenses for purposes of this policy.
Vice Presidents, Associate Vice Presidents, Deans of Colleges, Executive Assistant to the President, the Director of Athletics and the Auxiliary Chief Executive Officers, may approve these expenditures, as reimbursements or direct payment. This authority may not be delegated any further.
Payment or reimbursement for award banquets, recognition dinners and other special events or celebrations not hosted by the University or Foundation but in which employee attendance is considered appropriate as support to or from the community shall not be charged to the CSU Operating Fund. These events are not considered hospitality expenses for purposes of this policy.
Vice Presidents, Associate Vice Presidents, Deans of Colleges, Executive Assistant to the President, the Director of Athletics and the Auxiliary Chief Executive Officers, may approve these expenditures, as reimbursements or direct payment. This authority may not be delegated any further.
Integral Grant Expenditures
Expenditures for food and related items integral to a grant, e.g. a training grant that includes lunch for students or a "food bank" type of operation, are not hospitality expenditures.
Supplies
Reimbursement or direct payment requests for items such as snack foods for the childcare center, food for farm or lab animals, items used in research, or beverages for the President's visitors are exempt from this policy. These items are considered supply related expenditures.
A Request for Payment/Reimbursement of Hospitality Expenses form shall be submitted to the appropriate Accounts Payable department.
When more than one person or one supplier is to be reimbursed or paid for expenses related to a single event, it is the department’s responsibility to ensure that the total cost for the event did not exceed the allowable rates provided in this guideline.
To assure compliance with Internal Revenue Service regulations, the completed form must include the following information:
An original itemized receipt or invoice for expenses of $50.00 or more per occasion must be submitted. A credit card receipt alone is not sufficient. Itemized receipts are not required for amounts less than $50.00.
For payment of invoices, the vendor's original itemized catering contract must be provided if the original invoice does not provide the details of the charges.
For large events when it is difficult to provide or obtain the name of all the attendees (e.g. Convocation) the persons in attendance need not be individually identified by name and title. Anyone of the following could be substituted for the attendee list and attached:
All original documentation supporting the business purpose of the expense should be attached to the request.
The request must include a certification by the official host that the expenses were incurred for Official University business purposes and are in accordance with Internal Revenue Service guidelines and University guidelines.
Employees and vendors are encouraged to enroll in electronic transfer/direct deposit with the accounts payable department. Checks from Accounts Payable will be distributed via the US mail.
Payment amounts up to $100.00 exclusive of sales tax may be reimbursed via the Cashier’s window with properly approved documentation.
Subject | Contact | Phone | |
---|---|---|---|
Primary Guideline Contact | Tammy Connors | (562) 985-2697 | tammy.connors@csulb.edu |
Subject Matter Expert | Annette Harris | (562) 985-5430 | annette.harris@csulb.edu |
Meal Type | Maximum Rates* |
---|---|
Breakfast | $30 |
Lunch | $40 |
Dinner | $75 |
Light Refreshment | $20 |
Hors d'oeuvre (hot or cold appetizers, in lieu of dinner meal service) | $30 |
*Footnotes:
Hospitality Policy | CSU Operating Fund | Special Funds* | Auxiliary Organization Funds* |
---|---|---|---|
Alcoholic Beverages, including tax, gratuity and service charges | NO | YES | YES |
Commencement and Other Fee Supported Functions | YES | YES | YES |
Commencement: Non-Fee Supported Events | NO | YES | YES |
Convocation – University Wide Events | YES | YES | YES |
Convocation – Departmental Events | NO | YES | YES |
Exceptions Due to Overage of Maximum Rates | YES | YES | YES |
Exceptions to Policy other than Overages – | YES | YES | YES |
Expense with no supporting documentation | NO | NO | NO |
Faculty/Staff Picnics & Holiday Gatherings with business purpose | NO | YES | YES |
Faculty/Staff Social Events (birthdays, anniversaries, etc. with business purpose) | NO | YES | YES |
Food and Non-Alcoholic Beverages | YES | YES | YES |
Frequent and reciprocal business meals | NO | NO | NO |
Hospitality not directly related to employee's job (no business purpose) | NO | NO | NO |
Lavish or extravagant expense for the circumstances | NO | NO | NO |
Meetings Attended by Official Guests and Official Hosts | YES | YES | YES |
Meetings Attended by Only Employees of the Same Work Location - Meal is incidental | NO | NO | NO |
Meetings Attended by Only Employees of the Same Work Location - Meeting could have be held during normal work hours | NO | NO | NO |
Meetings of a Learned Society or Organization | YES | YES | YES |
Meetings of an Administrative Nature when the meal is a necessary and integral part of the business meeting | YES | YES | YES |
Meetings of an Administrative Nature when the meal is NOT a necessary and integral part of the business meeting | NO | YES | YES |
Official Guest Expenses | YES | YES | YES |
Official Host or other employee not present | NO | NO | NO |
Prospective University Donors and Donor Cultivation | YES | YES | YES |
Receptions (light refreshments only) | YES | YES | YES |
Recruitment Interviews | YES | YES | YES |
Retirement Celebrations (light refreshments only) | YES | YES | YES |
Spouse or Significant Other Hospitality expense with bona-fide business purpose | YES | YES | YES |
Spouse or Significant Other Hospitality expense without bona-fide business purpose | NO | NO | NO |
Student Meetings (light refreshments only) | YES | YES | YES |
Student Recognition Events | YES | YES | YES |
Third-Party Events (award banquets, recognition dinners not hosted by University) | NO | YES | YES |
Tobacco Products | NO | NO | NO |
*Footnote: