Handbook of Operating Procedures > Series 400 Budget, Finance and Operations > 4.6.7 Payments - Business, Recruiting, University Development and Entertainment Expenditures

4.6.7 Payments - Business, Recruiting, University Development and Entertainment Expenditures

A. Purpose

This policy sets forth the general rules governing The University of Texas at Tyler’s (University) expenditures incurred for official business, recruiting University development and entertainment activities and the payment of such expenditures whether requesting payment directly to a vendor or as a reimbursement to an employee or other authorized individuals conducting official business on behalf of the UT Tyler campuses and the Health Science Center campuses.  

B. Persons Affected

This policy applies to all employees and other authorized individuals who conduct official business requiring business meals, employee recruiting activities and University development efforts, including gifts for special occasions, etc. on behalf of the University.  Additionally, certain expenditures by the President are also covered by Regents’ Rules and Regulations Rule 20205: Expenditures for Travel, Entertainment, and Housing by Chief Administrators. Any exceptions to this policy must be approved by the Chief Business Officer (CBO).C. Policy and Procedures

C. Policy

1. Expenditures should be made in a prudent manner, help carry out the University’s mission, and must be related to one or more of the following purposes:
   1.  recognition or promotion of academic achievement, athletic achievement, scholarship and/or service to the University;
   2. promotion or communication of intellectual ideas and/or exchange of administrative and operational information on University programs or activities;
   3. support of University sponsored student events, research, and activities;
   4. recruitment of students, faculty, and/or staff;
   5. assistance to the Regents, accrediting agencies, officials from other Universities, and other similar activities; or
   6. support a program of continuing education.
2. All purchases of goods and services should be made in accordance with University purchasing guidelines.  Payments of expenses for business meals or refreshments will be permitted only when such expenditures are of demonstrable benefit to the University.
   1. Allowable expenditures may include business meals, food, refreshments, flowers, event tickets/registration fees and similar costs for University sponsored events.
   2. Alcoholic beverages are allowed when dispensed in conjunction with University-related business and approved by the appropriate Vice President or Dean. When alcoholic beverages are purchased in conjunction with meals, the maximum reimbursement rate for that meal will apply.
   3. Expenses for flowers should be reasonable, not to exceed $100 including taxes, wiring and delivery fees.  All flower purchases require approval by the appropriate Department Chair, Vice President, Dean, or above.  Prior approval by the appropriate Vice President, Dean, Provost, the President, or the President’s designee is required for all flower expenditures exceeding $100.
   4. Internal holiday and special events may not exceed $20 per full-time employee in attendance at the event. This rate covers all expenses associated with the event. All holiday and special events must be pre-approved by the appropriate Vice President or Dean.
   5. Expenses may be paid from federal, state, or local Grant contracts if the program guidelines provide for such expenditures. The Office of Research and Scholarship must authorize these expenditures before goods or services are ordered or received.

D. Restrictions

1.  Payments for the following purposes may only be made from donated unrestricted gift funds and/or institutionally generated income.  State appropriated funds may not be used.
   1. contributions to charitable organizations (must have prior approval from the President, or the President’s designee);
   2. honoraria;
   3. out-of-state student recruitment;
   4. awards or gifts;
   5. dues or membership fees to organizations; or
   6. gratuities on meals or other entertainment/business meeting related services
2. Reimbursement may not be approved when two or more employees choose to have a meal together or conduct business as an incidental part of the meal, or when the meeting could have been scheduled during regular working hours.
3. Exceptions to the policy require approval by the appropriate division Vice President or Dean.  

E. Procedures

Procedures for detailed State, System, and internal policies and expense limitations can be found on the University campuses websites.

F. References

Regents’ Rules and Regulations, Rule 20205: Expenditures for Travel and Entertainment by Chief Administrators

Texas State Comptroller: Expendit

Internal Revenue Code 132(a)(4) De Minimus Fringe Benefits

Internal Revenue Service Publication 15-B, Employer’s Tax Guide to Fringe Benefits

G. Review

This policy shall be reviewed every five years or as legislation changes.