(A) Overview.
(1) This rule is intended
to provide direction to employees with regard to the manner and extent to which
the university may expend resources for the purposes of business meals and
hospitality. For the purposes of this rule, the term employee refers to
university of Akron faculty, staff and professional staff. This rule also
applies to anyone conducting university business, including students. All
employees shall adhere to this rule and shall submit for reimbursement only
those expenses eligible for reimbursement under this rule. Proper documentation
shall accompany the reimbursement submissions and be maintained in accordance
with university rules and policies.
(2) Business-related
expenses are defined as food, beverages, and incidental costs associated with
the conduct of university business. As a public institution, the university
must ensure that resources are used judiciously and appropriately in support of
university business; due diligence must be given in reviewing expenditures.
Additionally, the department of purchasing's policies and procedures shall
be followed.
(3) In cases of sponsored
programs or restricted discretionary funds, the terms of the grant, contract,
or donor's limitations may be more restrictive than the university's
policy, and those terms shall be followed. In cases where these limitations are
less restrictive, the university's guidelines shall apply.
(4) One-time exceptions
to this policy may be granted on a case-by-case basis in accordance with the
department of purchasing's policies and procedures under extraordinary
circumstances and in no case constitute precedent.
(B) Business expenses.
(1) Business expenses
will generally be deemed acceptable and appropriate for payment by the
university provided that:
(a) They were incurred as part of ordinary and necessary
university business and have a clear business purpose, with substantial
business discussion during, directly before, or directly after the meal or
event;
(b) They were properly authorized, reviewed, and
approved;
(c) They are properly documented;
(d) They are not personal in nature; and
(e) For business meals only, that they were not more than three
times that meal's cost allowance, including tip [according to the current
federal standard meal allowance schedule located on the U.S. general services
administration's website].
Additionally, business meals almost always
need to include non-university personnel to be considered business-related.
Non-university personnel include individuals that are not employed by the
university, such as:
(i) Candidates for
employment;
(ii) Colleagues from
other higher education organizations; and
(iii) The
president's or other administrators' spouses in support of official
university responsibilities, including attendance at employee recognition
events, participation in recruiting, fundraising, and promotion of the
university, and hospitality for university guests.
(2) Business-related
expenditures in excess of one hundred dollars per person (including alcohol,
but excluding tips) require documented pre-approval by the responsible dean or
vice president.
(C) Additional guidelines.
(1) The provision of food
to employees on a regular or similar ongoing basis is generally not
appropriate. Food may be provided on an occasional and irregular basis during
working meetings, when personal time is given up for a formal business
discussion and in accordance with the department of purchasing's policies
and procedures.
(2) As a general rule, meal and
hospitality expenses for spouses and guests of university employees shall not
be charged to university funds. In exceptional cases, expenditures for spouses
and guests of university employees require written documentation of business
purpose and are subject to the department of purchasing's policies and
procedures. Exceptional cases may include:
(a) Attendance at employee recognition events.
(b) Participation in recruiting, fundraising, and promotion of
the university, and hospitality for guests of the university, where
appropriate.
(c) Attendance at athletic events as a member of the
university's "designated group."
(D) Allowable expenditures.
(1) This rule grants
authority to the vice president for finance and administration and chief
financial officer to adopt, administer, and implement a chart for allowable
university business related expenses that outlines business-related expenses
and whether or not they may be deemed acceptable charges based on the account
used: standard university accounts or the university of Akron foundation
accounts.
(2) University employees
shall carefully read and follow the details regarding each account type when
expending the account's funds and shall expend the funds in accordance
with the vice president for finance and administration and chief financial
officer's chart for allowable university business-related expenses. Funds
included in standard university accounts are provided and described in
paragraph (F) of this rule. The university of Akron foundation accounts must
also follow the rules provided in the vice president for finance and
administration and chief financial officer's chart for allowable
university business-related expenses.
(E) Unallowable funds for
business-related expenses.
The following funds shall not be used for
business-related expenses:
(1) Specialized 2xxxxx
speedtypes - These funds shall not be used for business-related expenses. These
funds are allocated for a specific purpose within the general fund.
Expenditures from these funds are restricted to the purpose of the account.
This includes, but is not limited to, fees (course fees or technology fees),
faculty research grant accounts, start up accounts, and departmental cost
sharing.
(2) Plant funds - These
resources shall not be used for any type of business-related expenses. This
includes all 7xxxxx speedtypes.
(F) Accounts.
(1) Standard university
accounts.
(a) Standard university accounts are described in this paragraph.
These accounts shall follow the standard university accounts rules in the vice
president for finance and administration and chief financial officer's
chart for allowable university business-related expenses. The description for
each account should be carefully read and the details regarding each account
type shall be followed when expending the account's funds.
(i) General operating
accounts. These resources are provided to the university primarily through
student tuition and the state share of instruction (i.e., funded by the
taxpayers of the state of Ohio). This includes most 2xxxxx
speedtypes.
(ii) Sales and services
funds and auxiliary funds. These resources are for activities conducted
primarily to provide goods, facilities, and services to, and generate revenue
from, students, employees, and the general public. This includes all 3xxxxx
speedtypes.
(iii) Indirect cost
("IDC") speedtypes. These resources are generated from indirect cost
recoveries from sponsored programs and grants.
(iv) Other agency funds.
These resources are received by the university as custodian or fiscal agent for
an organization and are held and disbursed on behalf of the organization. This
includes all 994xxx speedtypes.
(2) Standard university
accounts requiring additional approval or scrutiny.
The funds described in this paragraph follow
the standard university accounts rules in the vice president for finance and
administration and chief financial officer's chart for allowable
university business-related expenses, but require additional approval(s) or
scrutiny of additional documentation, as noted below.
(a) University support for student activities ("EAF"
accounts). These resources shall follow the standard university accounts rules
in the vice president for finance and administration and chief financial
officer's chart for allowable university business-related expenses as a
guideline, but all expenditures require approval through student affairs. This
includes the 990xxx speedtypes.
(b) Research and sponsored program funds. These funds are
provided to the university by federal, state, or local governments;
foundations; or other private entities for very specific purposes. Restrictions
vary on use of these resources but are typically more restrictive than this
rule and the vice president for finance and administration and chief financial
officer's chart for allowable university business related expenses.
Allowable costs which differ from university policies must be specifically
written in the awarding documents. This includes all 5xxxxx
speedtypes.
(c) Restricted discretionary funds and student agency
funds.
(i) Restricted
discretionary funds. Resources provided to the university through gifts and
contributions where restrictions for use may vary. It is the responsibility of
the signature authority to ensure the donor's restrictions are followed.
This includes all 4xxxxx and 6xxxxx speedtypes that are not specifically
earmarked for scholarships, fellowships, or endowed chairs.
(ii) Student agency
funds. These are resources earned by student activities ("SAF"
accounts). All expenditures require approval through student affairs. This
includes the 996xxx speedtypes.
(3) The university of
Akron foundation accounts.
(a) The university of Akron foundation accounts shall follow the
university of Akron foundation policies and procedures, which are available on
the university treasurer's office website. Guidelines for the purchase of
business expenses with the university of Akron foundation accounts are provided
in the vice president for finance and administration and chief financial
officer's chart for allowable university business related expenses.
Questions should be directed to university treasury services. Business expenses
from the university of Akron foundation accounts shall be documented on the
travel expense report. The travel expense report shall:
(i) Include the date of
the meal/event/activity, the name of the person(s) who hosted the
meal/event/activity and location of the meal/event/activity, the business
purpose of the meal/event/activity, names and affiliations of attendees, and
the cost of the meal/event/activity;
(ii) Be properly
authorized by the responsible university official (usually the immediate
supervisor of the person making the request); and
(iii) Be accompanied by
original itemized receipts.
(b) When a university procurement card is used for payment, the
employee's completed travel expense report and original itemized receipts
shall be attached to the employee's monthly transmittal log for university
procurement card purchases.
(G) Reporting.
(1) In all instances,
regardless of payment type, business expenses shall be documented on the
university's travel expense report. The travel expense report
shall:
(a) Include the date of the meal/event/activity, name of the
person(s) who hosted the meal/event/activity and location of the
meal/event/activity, the business purpose of the meal/event/activity, names and
affiliations of attendees, and cost of the meal/event/activity;
(b) Be properly authorized by the responsible university official
(usually the immediate supervisor of the person making the request);
and
(c) Be accompanied by original itemized receipts.
(2) When a university
procurement card is used for payment, the employee's completed travel
expense report and original itemized receipts shall be attached to the
employee's monthly transmittal log for university procurement card
purchases.
(H) Alcohol.
(1) When alcohol is
involved with any event, such event should be managed with common sense and due
care. As a general rule, alcohol cannot be charged against any university fund.
However, in certain circumstances, alcohol purchases for business-related
purposes (i.e., business meals or university events) may be
justified.
(2) These alcohol
purchases must be charged to discretionary funds and must have documented
approval (i.e., signature or direct e-mail) of the president, vice president,
or dean. Discretionary funds are funds held by the university of Akron
foundation and/or the university of Akron research foundation with only a broad
restriction that they be used to benefit the university of Akron or that
particular area within the university. The supervisor's approval certifies
that the fund being used has been designated a discretionary fund by the
donor.
(3) Amounts expended from
discretionary funds for the purchase of alcohol must be reasonable. For
purposes of this rule, "reasonable" is defined as no more than
twenty-five dollars per person, excluding taxes and tip.
(4) Alcohol purchased for
resale by areas with liquor permits or for medical or other research use is not
subject to this rule. Reimbursement or payment for the costs of alcoholic
beverages on sponsored projects is prohibited.
