FMOG Update: Hospitality and Entertainment Expenses Financial Representative Meeting (FAR) May 23, 2018 Sheri Hardison, Interim Associate Vice President for Financial Affairs & Controller Office of Financial Affairs (http://www.utsa.edu/financialaffairs/)

Overview Allowable Hospitality/Entertainment Expenses Approvals Exception approvals Changes made to the guideline Financial Affairs Office of the Controller

What is an allowable hospitality/business entertainment expense?

Allowable Hospitality/Entertainment Expenses Administrative/ business meetings Learned society meetings Student-oriented special programs Donor/ fundraising events Official guests (or spouse/ partner) Table sponsorship UTSA sponsored events Employee recognition Official fundraising for non-UTSA events Fee-supported functions On-the-job meals Flowers Parking See specific rules for each in the Guideline

Allowable Hospitality/Entertainment Expenses (cont’d) Must be directly related to, or associated with, official UTSA business Allowable Appropriately funded Benefits UTSA Reasonable

See specific rules for each in the Guideline Disallowed Expenses Lavish entertainment expenses Contributions (political or charitable) Social meals Alcohol (unless following guidelines) Flowers or gifts for personal events like birthdays or baby showers State sales tax Mileage for travel to hospitality- related events Coffee supplies and appliances unless in official break room/ reception area See specific rules for each in the Guideline

What types of funds can never be used for hospitality/ entertainment expenses?

Allowable Funding Sources Official Occasions Some Fund 31xx Cost Center Fee funded cost centers Used for broad community events F&A funded cost centers Auxiliary Funds Unrestricted Gift Funds

Business Entertainment Form BEF = Business Entertainment Form Documents details of event, including cost and attendees Documentation of approval We encourage one BEF per event, not one per payment Allows approver to review total event cost One BEF may be submitted a few different ways with different types of payments EXAMPLE - Held with Procard (special event privileges) log Attached and submitted with Expense Report

Who can approve a BEF? Assistant/Associate Dean Dean Assistant/Associate Vice President Vice President President Exception – Director may approve for student program if expenses are less than $500 An individual cannot approve his/her own expenses – higher level administrator must approve, not a subordinate (exception – university-wide event)

Exception Approvals Event greater than $5,000  VP or Dean approval Exceed per meal per person limit  VP or Dean approval Other exceptions to policy  VP approval Table sponsorships  VP External Relations or designee approval

Changes to the Guideline Per meal per person amounts increased Breakfast/lunch/light refreshments: $25  $35 Dinner: $55  $70 Flowers should not exceed $100 $150, including tax and delivery Added clarification – VP cannot approve his/her BEF exceptions if he/she is the Event Host, unless it is a university-wide event (in section E of the guideline) Financial Affairs Office of the Controller

Changes to the Guideline (cont’d) Clarified that entertainment per person dollar limit is separate from travel per diem limit Both may apply on same day (rare) Partial travel per diem rate should be considered (section E of guideline) Provided example on where BEF should be sent/kept for event with multiple payment types (section H of guideline) Financial Affairs Office of the Controller

See Full Guideline for Details For More, Including… Specific guidelines on allowable and disallowed expenditures Reimbursement procedures & completing a BEF Serving alcohol Account numbers that can be used http://www.utsa.edu/financialaffairs/opguidelines/2.6.4.html Financial Affairs Office of the Controller

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