Management Guidelines on the Expenditure of Funds, including
Documentation Requirements and Hospitality Expenditures

  1. Purpose and Authority
    1. These management guidelines implement Corporation Board Policy
      Statements No. 106, Source and Use of Public Relations Funds; No.
      111, Purchasing Policy; and No. 112, Travel Expense Reimbursement
      Policy.
    2. These guidelines also seek to implement the detailed expenditure
      basis and documentation requirements of Section 9.2 et seq.,
      Compilation of Policies and Procedures for CSU Auxiliary
      Organizations, published by the Chancellor's Office, dated February
      2000, and to support and supplement:

      • CSU Executive Order 761- Hospitality, Payment or
        Reimbursement of Expenses, effective October 31, 2000,
      • CSU Executive Order 1000- Delegation of Fiscal Authority and
        Responsibility, effective July 1, 2007, and
      • Cal Poly State University Policy for Payment or
        Reimbursement of Hospitality Expenses from State Funds, dated
        August 28, 2007.
  2. Basis for Any Expenditure from a Corporation Account
    The Corporation's exclusive purpose is to aid, support and supplement
    the instructional, research, and service activities of the University.
    This role permits the University to expand its range of activities by
    increasing the support to University programs. Any expenditure from a
    Corporation-held account must:

    1. Support the educational mission of the University, as defined by
      law, CSU, Corporation and campus policy;
    2. Be allowable for auxiliary organizations, either by law, CSU, or
      Corporation or campus policy;
    3. Conform to applicable Corporation policies, procedures, and
      guidelines, such as travel reimbursement and purchasing;
    4. Conform with state and campus control procedures, including IRS
      regulations related to gifts and awards, and there must not be a
      circumvention of a state or campus policy or procedure resulting
      from use of Corporation funds;
    5. Be specifically or generally authorized in the fund's purpose,
      by other applicable laws, regulations or agreements, and only to the
      extent authorized; and
    6. Be reasonable in nature.
  3. Hospitality Expense Payments and Reimbursements in General
    1. Definitions
      1. "Hospitality" applies to activities that promote the
        university to the public, usually with the expectation of
        benefits accruing directly or indirectly to the university.
        Hospitality is further defined as the provision of meals
        (catered or restaurant) or light refreshments (beverages, hors
        d'oeuvres, pastries, cookies, etc.) for Official Guests or
        employees of the university, and may include promotional
        materials, gifts, awards, and travel expenses.
      2. "Work Location," for university and Corporation employees
        will generally be interpreted as the main campus.
      3. An "Official Guest" is defined as a person invited by an
        official host to attend a University meeting, conference or
        event where the host is a University employee conducting
        University business. Official Guests may include members of the
        community, which also includes students, and employees from
        another work location.
    2. Allowable Hospitality Expense Categories from Corporation-held
      Funds

      1. Food and non-alcoholic beverages for meetings
        attended only by employees of the same work location.

        May be allowable depending on the purpose of the gathering; see
        remainder of policy for specific criteria and restrictions.
      2. Food and non-alcoholic beverages for meetings
        attended by Official Guests
      3. Alcoholic beverages and tobacco products
      4. Gifts
        Something of value bestowed upon
        an individual, group or entity without the expectation of
        benefit accruing to the University or Corporation.
      5. Awards
        A gift of tangible personal
        property in recognition of service or achievement directly
        benefiting the University or Corporation.
      6. Promotional Items
        A gift of tangible,
        personal property that is distributed to promote the name or
        image of the University or Corporation, to provide information,
        to enhance University or Corporation productivity, or for
        another such beneficial purpose. Promotional items are of minor
        value and often bear the logo or other identifying mark of the
        University or Corporation, such as pens, folders, calendars, and
        clothing.
      7. Travel expenses of Official Guests of the University
    3. Expenditure Limits
      1. Hospitality expenses expenditures must be:
        1. directly related to, or associated with, the active
          conduct of official University business, and
        2. reasonable in nature, and
        3. cost effective, and
        4. in compliance with the purpose of the specific funding
          source (particularly employee morale events), and
        5. in conformance with applicable Corporation policy,
          procedures, and guidelines, and state and campus control
          procedures, and
        6. funded by an acceptable Fund Source. (See Section 4
          below).
      2. Expenditures for catered food or beverage service for
        on-campus activities will not be reimbursable or paid unless
        provided by Campus Dining, and unless authorized in writing by
        Campus Dining.
    4. Expenditure Limits related to Alcohol and Tobacco products
      specifically

      1. No alcoholic beverage or tobacco products may be charged to
        federal funds.
      2. Expenses for alcoholic beverages and tobacco products may be
        charged to Corporation funds to the extent these purchases are
        not restricted by other applicable laws, regulations or
        agreements, and are reasonable in nature.
      3. The purchase must be made in conjunction or in connection
        with allowable hospitality activities or expenses.
  4. Fund Sources
    See the attached matrix for
    examples of allowable expenditures per Fund Source.

    1. Funds Held for University Use
      1. These funds may be used to pay for hospitality expenses if
        the expense is within the fund's purpose. Additionally,

        1. Campus Program Funds: Discretionary Accounts, Restricted
          Accounts, Special Activity Accounts, (Board or otherwise)
          Designated Funds
        2. Conference & Workshop Accounts
        3. Center & Institute Accounts- (may include funds from
          grants, which may have restrictions per below)
    2. Sponsored Program Funds (i.e. funds from grants- federal, state,
      or other)

      1. These funds may be used to pay for hospitality expenses if
        the expense is within the fund's purpose.
      2. Federal or local government contract and grant funds may be
        used to pay hospitality costs only if such expenses are
        specifically authorized in the grant, and only to the extent and
        for the purposes authorized.
    3. Long Term Funds held by Corporation
      1. These funds may never be used for hospitality expenses.
        1. Endowment and Life Income Funds
        2. Investment accounts
        3. Plant funds (i.e. capital replacement reserves)
    4. Other Funds
      1. These funds may be used to pay for hospitality expenses if
        the expense is within the fund's purpose.

        1. Agency Funds
        2. Auxiliary Funds (i.e. commercial accounts from
          enterprises, Corporation operations/accounts or commercial
          units)
  5. Expenditure Documentation
    1. General requirements
      1. Documentation for all expenditures shall be maintained
        consistent with good business practice, and in keeping with
        applicable standards set by agencies with responsibility over
        the funds. Good business practice includes procedures adequate
        to provide for effective internal controls.
      2. Individuals with delegated signature approval authority for
        a fund expenditure may not approve their own expenses, and
        individuals may not approve the expenses of their supervisor.
    2. Special documentation. Special documentation of expenditures
      shall be maintained over funds with constraints specified by the
      source. Such practices are intended to assist in the oversight and
      audit functions. Special expenditure documentation practices apply
      to the following types of funds or transactions:

      1. Funds held for University Use and Auxiliary Funds:
        Documentation shall demonstrate that the uses are made in a
        manner consistent with the intended purposes or restrictions.
      2. Sponsored Program Fund Transactions: Documentation shall be
        as required by the funding source.
      3. Agency Fund Transactions: Documentation shall be as required
        in accordance with Corporation procedures.
    3. Further documentation and review by Corporation. The Corporation
      shall require additional support documentation and additional review
      for transactions not readily apparent as funds expended for goods or
      services that are not a direct cost of a project or activity, or
      expenditures that may not be readily understood to be within the
      University's mission or the purpose/restrictions set by the fund
      source. Such expenditures include campus hospitality and public,
      community, employee, or business relations related activities
      (hosted individual or group meals, meetings, conferences,
      receptions). In these cases:

      1. The Corporation Business Office will consult on a documented
        basis with the University officer designated by the University
        President to determine that the proposed expenditure will not:

        1. Fall outside the University's mission;
        2. Be prohibited for auxiliary organization expenditure by
          law, by CSU or campus policy; or
        3. Be contrary to CSU or campus policies or procedures.
    4. Transaction documentation
      1. The transaction documentation (check request, travel expense
        request) with the expenditure request form shall include:

        1. The name of the person requesting the expenditure;
        2. The names of the persons being hosted, or who attended
          the event;
        3. A brief statement by the person identifying the benefit
          to the University's mission;
        4. A complete description of the item(s) or service(s)
          provided, including hospitality expense category;
        5. The signature of an authorized Corporation employee
          indicating that the expenditure is not restricted or
          prohibited; and
        6. The signature of the designated University official
          approving the expenditure, if necessary.
      2. Where a particular expenditure of this type occurs
        repetitively for a specific program or activity, a pre-approved
        supporting document may be used to support the repetitive
        transactions. Such a document must be cited on the expenditure
        request forms.
  6. Further Interpretations
    As may be determined,
    the Executive Director; or designee may issue further written
    interpretations of these guidelines. Such interpretations shall be
    consistent with Corporation Board policy and these guidelines.
  7. Examples of Allowable expenditures for Corporation-held
    funds

    The matrix below includes representative examples of
    allowable hospitality and non-allowable hospitality expenditures from
    Corporation funds, and through which type of Corporation fund they may
    be allowable as a reimbursable or payable expense. If a person is unsure
    regarding whether an expense may be reimbursable under these guidelines,
    contact Corporation prior to the purchase.

    1. Summary: Hospitality expenses must be (1)
      directly related to, or associated with, the active conduct of
      official university business, (2) reasonable in nature, (3) cost
      effective, (4) in compliance with the purpose of the specific
      funding source (particularly employee morale events), (5) in
      conformance with applicable Corporation policy, procedures, and
      guidelines, and state and campus control procedures, and (6) funded
      by an acceptable Fund Source.
    2. Expenditures for catered food or beverage service for on-campus
      activities will not be reimbursable or paid unless provided by the
      Corporation (Campus Dining), unless authorized in writing by Campus
      Dining.
    3. *Expenditures from Sponsored Program Funds must be allowable by
      the Sponsoring Agency of the project.
    4. May be Allowable (Y) / Unallowable (N)
Expenditure Category Funds Held for Univ. Use; Auxiliary, Agency Funds Endowment, Life Income, Investment, Plant Funds Sponsored Program Funds
Social Social entertainment among peers N N N
Alcohol or
Tobacco
Y N N
Business
Meetings
Business meetings are hosted meetings of
an administrative nature that are directly concerned with the
welfare of the University or the Corporation, and the provision of
hospitality is a necessary and integral part of the business meeting
and not solely a matter of personal convenience. Expenses must
conform to University and auxiliary travel policy.
A. Hosted business meetings attended only
by Official Guests and employees of the same work location
Y N *
B. Hosted business meetings attended only
by employees of the same work location
Y N N
Alcohol or
Tobacco
Y N N
Employee
Morale
A. Meetings: Meetings or receptions
off-campus or on-campus for employee morale
Y N N
B. Meetings of Employees of Same Work
Locale:
Meetings or receptions attended only by employees of
same work location for employee morale
Y N N
C. Department Spouse Sponsored Meetings
of Employees of Same Work Locale:
Department spouse hosted
receptions attended only by employees of same work location for
employee morale
Y N N
Related to
Official Guests
A. Campus Hosting of Guests Y N *
B. Hosting of Official Guests:
Hosted meetings or receptions for Official Guests, including in your
home.
Y N *
C. Business Meals with Official Guests:
Business-related meals with Official Guests.
Y N *
D. Extra Expenses of Official Guests:
Non-meal expenses of Official Guests at official functions,
including tickets, cap and gown rental.
Y N *
Organization, Workshop Events A. Learned Societies: Hosted or
sponsored meetings or receptions of learned societies or
organizations
Y N *
B. Miscellaneous Groups: Hosted
receptions in connection with conferences, fundraising events,
meetings of student organizations and groups, student events such as
commencement exercises, and meeting of other university related
groups such as alumni organizations.
Y N *
C. Department- or Spouse-Hosted
Events:
Department-hosted or spouse-hosted meetings or
receptions attended only by employees of same work location, if
concerning the welfare of the university.
Y N N
D. Service Recognition Events:
Hosted receptions for employee or officer (i.e. Board member)
service recognition.
Y N *
Other Job Candidate Extra Meal Expenses:
Meals with job candidates beyond meal reimbursement rates.
Y N *
Employee Spouse Meals: Employee
Spouse Meals for business-related events with required attendance.
Y N N
Spouse Travel Expenses N N N
Non-Cash Gifts: Gifts of nominal
value non-cash items for employees, for employee morale events such
as illnesses, family deaths, etc.
Y N N
Non-Cash Awards: Awards (noncash) to
employees.
Y N N
Non-Cash Gifts or Awards to
Non-Employees:
Non-cash Gifts or Awards to non-employees for
business/community relations purposes.
Y N *
Promotional Items: Promotional items
with logos of minor value (t-shirts, buttons, pens, etc.) for
giveaways.
Y N N
Political Contributions N N N
Non-Meal Necessary Expenses of Employees at
Official University Functions
Y N *
Decorative Office Supplies Y N N
Community Association Dues, with Corporation
as the Member Entity
Y N N
Personal Use of Business Club Memberships N N N
Beneficial Organization Membership of
Employee Dues
Y N *
Business Items or Services, For Personal Use N N N
Personal Use of Corporation-Provided Vehicle N N N

Revised Date: 7/8/2013