Procurement Services

Entertainment Policy for USM

The business of the university requires that some on-campus entertainment expenses be incurred. These expenses should be for university business only. All transactions involving entertainment expenses must have the following documentation referenced on a Business Related Expense Form:

• a statement of purpose for the expense, as well as the benefit to the university. (General phrases such as “Entertainment Expense” and “Business Lunch” are not adequate explanations and will be returned, thereby delaying processing.)
• a list of all persons in attendance, including their relationship to the program to be benefited and any other relevant details
• the date, time and place of the entertainment
• approval of the appropriate signature authority

NOTE: Accounts Payable reserves the right to request itemized receipts at any time, under any circumstance or when deemed necessary.

ALLOWABLE EXPENDITURES

Entertainment of prospective employees is considered an appropriate expenditure. When they are invited to visit the campus, all reasonable expenses, including travel, are allowable. Expenditures for the meals of such prospects as well as others in attendance should be for only those people essential to the interview process. The cost of such meals should be reasonable and the number of university employees should be kept to a minimum. Allowance for the entertainment expense of an employee’s spouse will only occur when it is deemed that his or her attendance is required (when the candidate’s spouse attends, etc….)

Entertainment of official university guests is also considered an allowable expenditure when there is a clearly documented business purpose or benefit to the university. As stated earlier, the cost of such meals should be reasonable and the number of university employees should be kept to a minimum. These types of entertainment expenses should normally be incurred by administrative officials, deans, and department heads. Examples of official guests include, but are not limited to, visiting lecturers and performers, visitors from other universities, and business and community leaders.

Entertainment expenses for meals involving only employees (staff meetings, discuss research, etc.) are not ordinarily considered allowable expenditures. In rare instances where it may be necessary to have a meeting over lunch or dinner, the employee must give the reason the meeting could not be held during regular business hours; and also must provide documentation for the purpose of the meeting and a list of all personnel in attendance. Departmental social functions in celebration of an event, a holiday, or to promote fellowship among employees are NOT reimbursable. Examples include introduction of new staff and holiday parties.

Expenses for official university functions and receptions honoring employees, students, alumni, distinguished guests, and friends of the university may be paid for using university funds as long as a detailed statement of the purpose is attached. The president of the university holds most receptions of this nature.

Meal or refreshment expenses associated with conferences, workshops, meetings, and seminars conducted by the university will require assurance, through appropriate documentation, that the function is essential to the operation of the university and that provision of meals/refreshments must be incidental to the function rather than the primary purpose of the function. Meals held subsequent to a business function are not allowable uses of university funds.

University funds may be used, at the department head’s discretion, to purchase refreshments for employee retirement receptions. However, all university employees must be invited to attend and must be approved by the President prior to the function. University funds cannot be used to purchase gifts for retiring employees.

NON-ALLOWABLE EXPENDITURES

Expenses associated with other departmental social functions such as seasonal gatherings, holiday meals, birthday parties, wedding and baby showers, and social gatherings are NOT allowable expenditures of university funds. This includes luncheons to promote fellowship among employees.

Flowers purchased for individuals and/or their families for retirement functions and awards ceremonies are not allowable expenses. Flowers purchased on behalf of the university for funerals or for decorative purposes for an official university function are allowable. These purchases are handled by the President’s Office.

An employee may not accept an honorarium, gifts, or fees, excluding travel reimbursements, in consideration for any services performed in his/her official capacity on behalf of the university.

University policy is to refrain from paying for gifts with university funds. The Procurement Services Office is not authorized to pay for gifts charged on the Small Purchase Procurement Card or otherwise, regardless of the source of funds. Gifts should be purchased with private funds, either personal or from the USM Foundation. This includes any items given as a thank-you for services provided (e.g., gift bags, shopping cards, telephone cards, mugs, plaques, etc.).

Holiday greeting cards – purchase, printing or postage for

Departmental holiday decorations

Coffee and refreshment supplies for the office are considered to be personal expenses and may not be purchased using university funds.

Under no circumstance will university funds be used to purchase, or provide reimbursement for, alcoholic beverages, payments for bartenders, golf green fees, and/or boat rentals (unless grant related expense) or entertainment equipment.

Donations and/or sponsorships to outside agencies or institutions (charitable and non-charitable) cannot be made using university funds.

Coffee pots, refrigerators, or microwaves – unless as replacement for original building equipment.

IMPORTANT: This policy is not all-inclusive, nor does it address every situation that may arise. It is intended to help prevent some of the more common mistakes. In order to prevent processing problems, questions about specific situations not addressed in this policy should be directed to the Accounts Payable at 266-4131 to determine if it is within university guidelines.