B-4. Hospitality
Hospitality Expenditures (FIN-ACC-50)
During the course of university business, it might be necessary to incur hospitality expenditures for the purpose of promoting and furthering the mission of the university.
As a public institution, Indiana University is entrusted with funds by various constituencies. In order to carry out its fiduciary duty, university employees must demonstrate prudent judgment when expending funds. Funds must always be used for institutional benefit, never for the purpose of personal benefit or privilege of a university employee. Therefore, all hospitality expenses must meet the criteria of a bona fide business expenditures under the university’s Accountable Plan policy.
Individuals responsible for making decisions concerning hospitality expenditures should exercise prudent judgment and reference this policy, FIN-ACC-50, for guidance and examples about appropriate expenditures.
Examples of appropriate hospitality expenditures include those related to the following activities and purposes:
- Meals or refreshments served during business meetings
- Meals for visitors, guests, donors, prospective employees, or students
- University receptions and functions
Hospitality expenditures that are unallowable or restricted:
- Meals and refreshments for employees where no bona fide business expense purpose is present
- Meals and refreshments for the entertainment of local, state, or federal government officials
- Hospitality expenses are not permitted on recharge accounts in the “66” series in compliance with Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
- Hospitality expenses charged to a contract or grant account must be specifically detailed in the original agency approved budget or must be accompanied by specific written approval granted by the funding agency.
- Hospitality expenses on restricted funds that do not meet the standards of this policy but are compliant with donor intent or agency guidelines will be reimbursed provided they are properly documented.
Hospitality expenses for a single event exceeding $10,000 must have the approval of the Campus and the University Controllers Office prior to the date of the event.
See the Accounting Services website for campus specific hospitality procedures, forms, and object codes.