As a major public institution, the University of Florida is held to a high level of accountability for its business practices. Numerous stakeholders, including students, taxpayers, alumni, the State of Florida and the federal government, have an interest in how the University spends its money.
The University is committed to maintaining integrity and fiscal responsibility in the approval and accounting of expenditures, including University employee and guest meals or entertainment expenses that are paid by the University for business purposes. It is essential for the University to maintain a strong, clear and solid expenditure directive for business expenses related to hosted business meals, University functions, and entertainment.
A clear business purpose must exist when expending any University funds. To ensure that resources are being used appropriately and that we are being good stewards of the funds entrusted to us consider these questions:
The intent of this directive is to provide guidelines to ensure the business purposes of entertainment, hospitality, and recognition are reasonable, and to set clear limitations for expenses. Proper stewardship of University funds is an obligation of all faculty and staff. All expenditures must also comply with additional restrictions of the fund type (i.e. donor intent, research contract, etc.).
Individual members of the Board of Trustees, independent contractors (including consultants) and volunteers are subject to the restrictions of this directive.
This directive supplements the University’s Travel and Disbursements Directives & Procedures. All those seeking reimbursement or paying for such expenses are responsible for reading and complying with all University policies and directives. Failure to comply with applicable directives may result in expenditures that are considered ineligible for payment or reimbursement by the University.
A business purpose is defined as one that supports or advances the goals, objectives, and mission of the University; the expense must be a necessary, reasonable, and appropriate business expense for the University.
Every expenditure transaction must be supported by a bona-fide business purpose.
To ensure proper internal controls for expenditures related to business meals, University functions or entertainment, the authorized approver must be the supervisor (or higher level) of the employee requesting reimbursement or paying for such expenses. An individual should not approve the reimbursement of expenses for a person to whom the individual directly reports.
When multiple employees from the hosting department or unit are present, the most senior position from the hosting department should pay. Exceptions to this should be documented.
Note that the directive described in this document does not pertain to typical meals during travel. Daily meal allowances during travel for non-business meals (not meeting the criteria below) are governed by Florida Statute sec. 112.061 and can be found in the Travel Directives & Procedures. If a “business meal” takes place during travel, reimbursement will be at the limits defined below.
The University may pay or reimburse for properly documented meals whose primary purpose is a business discussion. “Properly documented” consists of, at minimum, an itemized receipt and list of attendees. Under this directive, expenses (excluding gratuity and tax) associated with business breakfasts or business lunches are limited to $30.00 and $50.00 per person, respectively. Expenses (excluding gratuity and tax) associated with business dinners are limited to $125.00 per person. If prevailing market conditions in a city (based on GSA rates) exceed these limits, an exception may be approved by the appropriate dean or vice president.
Based on state guidance, gratuities should not exceed 20% of the bill subtotal before tax. In some cases, tips on meals may exceed 20% where there is an automatic gratuity charged by the venue.
To qualify as a business meal under this directive:
Business Meal expenses exceeding the limits above require approval per the requirements in the “Exceptions” section below.
University funds may be used to provide food at a seminar, retreat, workshop, orientation, or other University function.
Examples of University functions:
University functions are limited to $200 per person each day of the function, including all expenses ($125 maximum per person for food and drinks, and $75 maximum for venue rental, service charges and other associated expenses).
All payments or reimbursements for these expenditures should include a description of the gathering’s business purpose and a list of attendees.
Large gatherings, such as those associated with graduation, the Superior Accomplishment Awards, or other University-wide events, as well as any event held at a restricted university venue (University House, Dasburg House, Touchdown Terrace and the President’s Box) are not subject to the limits above. Expenses for these events should be reasonable, prudent, appropriate to the occasion, and consistent with the University’s mission. Invoices, payment requests, or PCard receipts for these expenditures must include a description of the gathering’s business purpose and estimated number of attendees.
University Function expenses exceeding the limits above require approval per the requirements in the “Exceptions” section below.
The University may pay or reimburse expenditures relating to entertainment when the purpose is:
Examples of entertainment expenditures include food, beverages, admission charges, flowers, and other miscellaneous expenses. These expenses must be reasonable, prudent, appropriate to the occasion, and consistent with the University’s mission.
Entertainment expenses should not exceed $125 per person (excluding tax and gratuities). The cost should be appropriate for the type of meal or event, and this limit applies to all venues including restaurant expenses and entertainment at private residences.
Based on state guidance, gratuities should not exceed 20% of the bill subtotal before tax. In some cases, tips on meals may exceed 20% where there is an automatic gratuity charged by the venue.
Entertainment expenses exceeding the $125 limitation require additional justification as to the potential benefit to the University, following the requirements in the “Exceptions” section below.
The limitation for expenditures is 30% alcohol and 70% food of the total bill, prior to tax and gratuity, unless meeting a donor, prospect, or other business guest for a “drinks only” meeting. In this situation, every effort must be made to stay within an expenditure limit of $75 per person.
Ancillary fees related to serving alcohol (e.g. corkage fees) are considered an extension of serving alcohol and are only allowed if the total cost of the alcohol and ancillary fees are within the limits established in this directive.
Note: If multiple payment documents are submitted for the same event and alcohol is paid separately, then a copy of all documentation related to the event should be included to verify that alcohol is not greater than 30% of the total of all bills.
Employees of the University of Florida are obligated to be good stewards of University funds. As such, University leadership reserves the right to deny payment or reimbursement for excessive expenditures.
University funds generally may not be used for expenses associated with alcoholic beverage service unless the alcohol is purchased from and served by a licensed caterer or restaurant.
An exception may be made for off-campus events at department/unit or college representatives’ homes at which only beer and wine are served. All other alcohol rules should be followed, including the reasonable expenditure guidelines detailed above.
More than two of these in a year are considered an exception, subject to the requirements in the “Exceptions” section below.
In order to avoid even the appearance of impropriety, business meals for spouses, partners, and other family members of employees are generally not allowed. A spouse, partner or family member’s meal may be allowed if the individual has a significant role in the success of the event and constitutes a bona-fide business purpose. The presence of the spouse, partner or family member must be essential, and not just beneficial, to the employee’s ability to carry out a business purpose for the University.
Examples of scenarios in which an employee spouse, partner or family member could be serving a University business purpose:
The expenditure should include documentation (e.g. an event or meeting agenda, letter of invitation requesting the presence of spouses or domestic partners, etc.) to show that the attendance of the spouse, domestic partner, or family member complies with the requirements for expenditure.
As stated in “University Functions,” attendance by spouses, partners or family members at holiday or beginning of the academic/fiscal year events is allowed and not subject to the limitations of this section.
Exceptions to the limits or other requirements in this directive require documented justification and approval by the dean or vice president. Exceptions for department chairs, deans and vice presidents require additional higher-level approval.
If a donor or prospect whose restaurant selection or menu selection results in the bill being more than the allowable limits, submit the reimbursement and indicate that the donor/prospect chose the venue and/or menu items. University employees should still adhere as closely to the allowable limits as practical for your meal selections when this occurs.
If the donor or prospect invites guests, submit the reimbursement and indicate on the receipt the number of attendees invited by the donor or prospect. Generally, donors or prospects should only invite individuals that directly influence the decision to make a gift.
Disbursements: (352) 392-1241
University Controller’s Office: (352) 392-1321