Entertainment

In your role as president or senior-level staff, you may need to host entertainment events. The University may pay for expenses related to entertainment, provided the following criteria are met.

  • The entertainment is appropriate in the conduct of official University business.
  • The expenses per person would be considered prudent and reasonable to the public.
  • The entertainment is properly approved by you or the campus/institute chief business officer (CBO).
  • The purpose and the individuals being entertained are identified, in addition to other required information as noted below.
  • Documentation is obtained to support the entertainment expenses, as specified below.

Note: The CBO (or designee) must approve expenses over $1,000 per function and expenses exceeding $100 per person.

 

Restrictions

  1. Events hosted primarily for UT faculty and staff include banquets, retreats, receptions, employee picnics and recognition events, group working meetings (not at a restaurant), committee or other statewide staff meetings, and training events. Note: These are considered “group-arranged events”.
     
  2. When alcoholic beverages are part of entertainment events, the cost must be separately identifiable on the receipts and supporting documentation and charged to restricted funds, such as a gift fund.
     
  3. Tips are a reimbursable expense but should not exceed 20 percent of the total.
     
  4. Entertainment is not permitted on federally sponsored grants and contracts.
     
  5. State law prohibits official University activities in facilities that use discriminatory practices. University employees may not be reimbursed for using these facilities.

 

Entertainment Budget

Your chief business officer is the best source to help determine the funds available for entertainment events and the amounts customarily spent.

Because UT is a state institution, entertainment expenses are subject to scrutiny and you should be prudent and conservative in planning events. The cost per person is a rule of thumb used to judge the acceptability of the cost of an event.

Consider using funds from your expense allowance to defray some of the cost whenever the location, event, or number of attendees make the cost per person appear excessive.

 

Catering Services

Food service contracts may prevent your campus or institute from using other caterers on UT premises. Because vendors and terms may vary, contact your CBO for guidance.

If your campus does not have a food services provider on contract, University policy requires such services to be obtained through a competitive process if the cost is $10,000 or more per purchase or if you plan to spend $10,000 or more annually with a particular caterer. The CBO or purchasing department can assist with this process.

You may not use University employees or materials for planning, catering, or conducting personal entertainment events, even if you offer to reimburse the University. Use of employees in this manner could result in tax liabilities for the University and may violate UT policies. If your campus has a contract with a food services provider, you may use the provider for personal catering services if the following criteria are met.

  • The provider offers catering services to all employees.
  • The fees and rates charged to you are not less than those charged to all other employees.
  • Proper state sales taxes were applied.
  • You pay the provider directly from personal funds.

 

Payment or Reimbursement of Expenses

  1. Expenses for approved entertainment and group-arranged events are handled in the following ways:
    • UT procurement card for expenses up to $1,000 per function (also for entertainment items exceeding $1,000 but less than $10,000 if pre-approval has been obtained from the CBO)
    • Petty cash
    • Direct bill to the University
    • Reimbursement of expenses

     

  2. An official, itemized receipt issued by the vendor (restaurant, caterer, ticket office, etc.) should be obtained. Itemization includes the date, vendor, description of items purchased (meals/beverages), and total.

    Non-itemized credit card receipts are not acceptable for reimbursement.

    The following additional information should be included on the receipt, invoice, or an attachment:

    • Purpose of function
    • Date of function
    • Number of individuals being entertained (list the names when fewer than 15 and estimate the number for larger groups if the actual number is unknown)
    • Average cost per person, including beverages and tips (may estimate the number of attendees if the actual number is unknown)
    • Cost center/WBS element/general ledger account to be charged

     
    Note: The number of individuals being entertained and date of function are not required on invoices related to items maintained for guests and visitors to your office, e.g., coffee, soft drinks, and bottled water.

 

For more details on entertainment requirements, see Policy FI0715.