Fund Expenditure Guidelines

  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)

Examples of Allowable Expenditures for Corporation-Held Funds

# Expenditure Category Sub Categories & Description Funds Held for Univ. Use; Auxiliary, Agency Funds

1

Social Social entertainment among peers No

2

Alcohol Yes

3

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

Yes
B.
Hosted business meetings attended only by employees of the same work location

Yes

4

Employee Morale
A.
MEETINGS: Meetings or receptions off-campus or on-campus for employee morale

Yes
B.
MEETINGS OF EMPLOYEES OF SAME WORK LOCALE: Meetings or receptions attended only by employees of same work location for employee morale

Yes
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

Yes

5

Related to Official Guests
A.
Campus Hosting of Guests

Yes
B.
Hosting of Official Guests: Hosted meetings or receptions for Official Guests, including in your home.

Yes
C.

Business Meals with Official Guests: Business-related meals with Official Guests.

Yes
D.
Extra Expenses of Official Guests: Non-meal expenses of Official Guests at official functions, including tickets, cap and gown rental.

Yes

6

Organization, Workshop Events
A.
Learned Societies: Hosted or sponsored meetings or receptions of learned societies or organizations

Yes
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.

Yes
C.
Department- or Spouse-HostedEvents: Department-hosted or spouse-hosted meetings or receptions attended only by employees of same work location, if concerning the welfare of the university.

Yes
D.
Service Recognition Events:Hosted receptions for employee or officer (i.e. Board member) service recognition

Yes

7

Job Candidate Extra Meal Expenses: Meals with job candidates beyond meal reimbursement rates. Yes

8

Spouse Travel Expenses Yes

9

Employee Spouse Meals: Employee Spouse Meals for business-related events with required attendance. No

10

Non-Cash Gifts: Gifts of nominal value non-cash items for employees, for employee morale events such as illnesses, family deaths, etc. Yes

11

Non-Cash Awards: Awards (noncash) to employees. Yes

12

Non-Cash Gifts or Awards to Non-Employees: Non-cash Gifts or Awards to non-employees for business/community relations purposes. Yes

13

Promotional Items: Promotional itemswith logos of minor value (t-shirts, buttons, pens, etc.) forgiveaways. No

14

Political Contributions Yes

15

Non-Meal Necessary Expenses of Employees at Official University Functions Yes

16

Decorative Office Supplies Yes

17

Community Association Dues, with Corporation as the Member Entity No

18

Beneficial Organization Membership of Employee Dues Yes

19

Business Items or Services, For Personal Use No

20

Personal Use of Corporation-Provided Vehicle No

Expenditory Category

Social

1

Description

Social entertainment amoung peers

Funds Held for Univ. Use; Auxiliary, Agency Funds

No

Expenditory Category

Alcohol

2

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Business

3

Description

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.

Sub Catergory A

Hosted business meetings attended only by Official Guests and employees of the same work location

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory B

Hosted business meetings attended only by employees of the same work location

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Employee Morales

4

Description

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.

Sub Catergory A

MEETINGS: Meetings or receptions off-campus or on-campus for employee morale

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory B

MEETINGS OF EMPLOYEES OF SAME WORK LOCALE: Meetings or receptions attended only by employees of same work location for employee morale

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory 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

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Related to Official Guests

5

Description

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.

Sub Catergory A

Campus Hosting of Guests

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory B

Hosting of Official Guests: Hosted meetings or receptions for Official Guests, including in your home.

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory C

Business Meals with Official Guests: Business-related meals with Official Guests.

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory D

Extra Expenses of Official Guests: Non-meal expenses of Official Guests at official functions, including tickets, cap and gown rental.

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Organization, Workshop Events

6

Description

Sub Catergory A

Learned Societies: Hosted or sponsored meetings or receptions of learned societies or organizations

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory 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.

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory C

Department- or Spouse-HostedEvents: Department-hosted or spouse-hosted meetings or receptions attended only by employees of same work location, if concerning the welfare of the university.

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Sub Catergory D

Service Recognition Events:Hosted receptions for employee or officer (i.e. Board member) service recognition.

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Job Candidate Extra Meal Expenses: Meals with job candidates beyond meal reimbursement rates.

7

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Spouse Travel Expenses

8

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Employee Spouse Meals: Employee Spouse Meals for business-related events with required attendance.

9

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

No

Expenditory Category

Non-Cash Gifts: Gifts of nominal value non-cash items for employees, for employee morale events such as illnesses, family deaths, etc.

10

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Non-Cash Awards: Awards (noncash) to employees.

11

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Non-Cash Gifts or Awards to Non-Employees: Non-cash Gifts or Awards to non-employees for business/community relations purposes.

12

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Promotional Items: Promotional itemswith logos of minor value (t-shirts, buttons, pens, etc.) forgiveaways.

13

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

No

Expenditory Category

Political Contributions

14

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Non-Meal Necessary Expenses of Employees at Official University Functions

15

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Decorative Office Supplies

16

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Community Association Dues, with Corporation as the Member Entity

17

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

No

Expenditory Category

Beneficial Organization Membership of Employee Dues

18

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

Yes

Expenditory Category

Business Items or Services, For Personal Use

19

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

No

Expenditory Category

Personal Use of Corporation-Provided Vehicle

20

Description

Funds Held for Univ. Use; Auxiliary, Agency Funds

No

Hospitality related expenditures are not allowed for funds held in Endowment, Life Income or Sponsored Programs Funds.