Purchase of Alcohol, Awards, Flowers, UPPS No. 03.01.03
Food, or Refreshments Issue No. 7
Effective Date: 12/14/2012
Review: June 1 E5Y
01. POLICY STATEMENTS
01.01 This policy sets forth guidelines for the
purchase of alcohol, awards, flowers, food, and refreshments for allowable
activities by Texas State University-San Marcos (Texas State).
01.02 The Texas State University System Board of
Regents (Board of Regents), has determined that the expenditure of institutional
funds, that are not otherwise restricted, for the purchase of alcohol, awards,
flowers, food, and refreshments, assists the university in carrying out its
educational functions, promotes education in the State of Texas, and provides an
important public purpose.
01.03 Accordingly, the Board of Regents authorizes
Texas State to use such funds for the purchase of alcohol, awards, flowers,
food, and refreshments in accordance with the guidelines set forth in this
policy.
01.04 The Texas State University System Rules and
Regulations, Chapter III; Section 6.8, authorizes the president to implement this
policy through appropriate directives and delegation. Those requesting authorization
and approval of specific expenditures must document the request in accordance
with the requirements of Section 06.05. Documentation may occur on the Alcohol, Awards, Flowers, Food, or
Refreshments Expense Authorization Request form, a procurement card
log when purchases are made in accordance with the applicable UPPS governing
the use of the procurement card, a purchase requisition, or a Form AP-1.
01.05 Expenditures must have a clear business
purpose and meet one or more of the following criteria:
a.
The
recognition or promotion of academic achievement, athletic achievement,
scholarship, or service to Texas State or the state at officially recognized
events;
b.
The
promotion or communication of intellectual ideas or exchange of administrative
and operational information on programs or allowable activities of the
institution among students, faculty and staff, administrators, and
representatives of the public. Approved activities under these criteria do not
include business meal reimbursements. See Business Meal
Reimbursement Procedure, for further guidance;
c.
The
support of student events and activities that are sponsored by Texas State;
d.
The
recruitment of highly qualified students, faculty, and staff. Spouses of prospective faculty and staff candidates
may be included in recruitment meals;
e.
The
promotion of the exchange of ideas with business and community leaders
regarding the role of Texas State in support of economic development, cultural
enrichment, and partnerships within the community;
f.
The
assistance of the Board of Regents, accrediting agencies, officials from other
universities, or public officials in inspecting and reviewing facilities and
programs;
g.
The
support of a continuing education program sponsored by Texas State; and
h.
The representation of the university to significant
external constituents by one of the primary offices charged with such duties. The
Office of the President, offices of Cabinet-level officers, the office of the
Associate Vice President for Research, offices of academic deans, and the Dean
of Students Office are the primary offices charged with these duties.
01.06 Specific exemptions from the requirement of Section
01.05 include the following:
a.
Purchases
of food for use in academic laboratories;
b.
Purchases
of food or alcohol for resale;
c.
Purchases
of food or feed for consumption by animals;
d.
Reimbursement
of meals associated with official employee or
prospective employee travel under Texas State travel rules and
regulations;
e.
Allowances
for food for athletes, athletic recruits, and food purchases associated with
game expenses paid by the Texas State Athletic Department;
f.
Payments
for student travel on educational field trips when students pay for the travel;
g.
Purchases
of awards, flowers, food, and refreshment from agency funds;
h.
Reimbursement
to a non-employee in the course of providing services to the university;
i.
Purchases
for the operation of the Texas State Child Development Center;
j.
Expenditures
for food or refreshment for camps and continuing education or professional
development conferences, seminars, and short courses if fees also covered the
cost of these items in the registration fees assessed;
k.
Student
events which are officially sponsored by the division of Student Affairs; and
l.
Purchases
of bottled water up to and including five-gallon bottled water and water cooler
rental, as well as coffee and tea.
01.07 The current General Appropriation Act,
Internal Revenue Service Code rules and regulations and the following govern
achievement awards:
a.
Only
items of tangible personal property (e.g., a pen, a crystal bowl, a clock,
etc.) are allowable employee achievement awards.
b.
Cash
or cash equivalents, gift cards or certificates, tickets to the theatre or
sporting events, vacations, and real property are not allowable employee achievement
awards.
c.
Unless
excludable from an employee’s wages, the achievement award must be reported as
taxable income to the employee. The maximum amount allowed for exclusion from
an employee’s wages for an employee achievement award is $400 per tax year per
employee. Items of tangible personal
property awarded as achievement awards may be excludable when awarded as:
1)
A
de minimis benefit;
2)
A
length of service award following the employee’s first five years of
employment, but no more often than in five year intervals; or
3)
Safety
achievement awards when given to an employee other than a manager,
administrator, clerical employee, or other professional employee.
d.
Length
of service and safety achievement awards must be awarded as a part of a
meaningful, but not necessarily elaborate presentation.
e.
Texas
State’s scholarship coordinator in the office of Financial Aid and Scholarships
must receive notification of achievement awards for students.
01.08 Under no circumstances are budgets or funds
allocated, or under the control and responsibility of intercollegiate athletics,
used to purchase alcohol.
01.09 The university prohibits spending
institutional funds on flowers, food, or refreshments for personal use or
consumption during routine day-to-day operations, except as outlined in Section
01.06 l. However, if a clear business purpose can be identified, light
refreshments, sodas, and juices, may be provided for visitors, within
reasonable limits.
01.10
The
university prohibits purchasing flowers, food, or refreshments for employees’
spouses, children, and other family members.
01.11
Expenditures
incurred for personal reasons are not allowed.
01.12
Exceptions
to this policy may only be made with approval from the president or the requestor’s
respective Cabinet officer. Approval must be indicated on the payment
document. The approval role cannot be delegated by the Cabinet officer.
02. DEFINITIONS
02.01 “Food” means food for human consumption;
non-alcoholic beverages; and other incidental expenses customarily included on
the food invoice with a formal dinner (e.g., set-up fees, wait staff charges,
etc.).
02.02 “Institutional Funds” include all funds received
or generated by the university other than those held at the State Treasury and
funds held in trust as agency funds.
02.03 “Allowable activities” include student
banquets, refreshments for seminars, meals for faculty recruitment, receptions
for faculty and staff, etc.
02.04
“Agency
funds” are funds held in trust by Texas State for other entities and are not considered
assets of the university.
03. FUNDING
FOR PURCHASE OF FLOWERS, FOOD, AND REFRESHMENTS
03.01 The following conditions apply depending on
the funding source indicated:
a.
The
university prohibits using state-appropriated funds, including education and general
revenue, as well as statutory undergraduate and graduate tuition to purchase flowers,
food, and refreshments for any of the reasons covered under this policy.
b.
The
university allows the use of grant and contract funds to purchase food and
refreshment if the expenditure is necessary and allowable under the grant or
contract and meets the requirements of OMB Circular A-21 and State of Texas
Uniform Grant Management Standards. Contact the Office of Sponsored Programs
for additional information.
c.
The
university prohibits using locally-generated income from course and
instructional fees, physical plant administrative overhead charges, or scholarship,
loan, university endowment and plant fund accounts to purchase flowers, food,
or refreshments for any of the reasons covered under this policy.
d.
The
university allows the use of other locally-generated income for the purchase of
food when not otherwise restricted from such purposes.
04. FUNDING
FOR THE PURCHASE OF ALCOHOLIC BEVERAGES
04.01 The university allows the purchase of alcoholic
beverages with specifically-designated gift funds, including investment
earnings on such funds. These funds
include:
a. Institutional Discretionary Funds (FC
20000110XX / CC 1040100001);
b. The University Fund (FC 4001641000 / CC
1040100001);
c. Merrick-Discretionary (FC 4100201000 / CC
1040100001);
d. Departmental restricted gift funds where
business purpose is consistent with donor restrictions (FC 4XXXXXXXXX / CC
XXXXXXXXXX); and
e.
Funding
received through an external sponsorship for an event governed by an agreement
that specifically authorizes the purchase of alcohol for the event from the
external sponsorship. Sponsorship agreements must be reviewed and approved by one
of the following prior to execution: the divisional Cabinet officer, the
academic dean, or the dean of Students.
04.02 All purchases of alcohol must be in accordance
with UPPS No. 05.03.03, Alcoholic Beverage
Policy and Procedure.
05. FUNDING
SOURCES FOR ACHIEVEMENT AWARDS
05.01 Annually, the President’s Cabinet allocates a
nominal amount of funds for appreciation celebrations or achievement awards at
functions such as faculty receptions, commencement, retirement receptions,
award banquets, school receptions, division receptions, and receptions for
important guests.
a.
Alcohol
is not an allowable cost for these events.
b.
These
funds are maintained by the Finance and Support Services division (See FSS/PPS 03.01.11 “Discretionary
Budgets and Expenditures” for additional information).
05.02 State law permits use of state appropriations including
education and general revenue, as well as statutory undergraduate and graduate
tuition for awards for professional achievement and other outstanding service (e.g.,
safety) for current employees, volunteers and retirees. For allowable awards
paid from state appropriations, the cost per current employee, volunteer or
retiree shall not exceed the amount specified in the most current General
Appropriations Act. Examples of acceptable awards include, but are not limited
to, lapel pins, plaques, and engraved certificates.
05.03 The university allows the use of institutional
funds to purchase achievement awards in excess of the cost per current
employee, volunteer or retiree allowed in the most current General
Appropriations Act.
05.04 Refer to Section 01.07 for IRS regulations
regarding achievement awards.
06. GUIDELINES
FOR PURCHASE AND PAYMENT OF ALCOHOL, AWARDS, FLOWERS, FOOD, OR REFRESHMENTS
06.01 Purchase requisitions are normally required for
acquisitions of alcohol, awards, flowers, food, or refreshments. The account
manager must approve the purchase and then forward it to the Purchasing office
for processing. The account manager is responsible for reviewing and approving
the transaction according to Texas State policy and procedure.
06.02 In extraordinary circumstances in which
processing a purchase requisition into a purchase order is not feasible:
a. A department may request reimbursement for
expenditures if in accordance with Texas State policy and procedure with the completion
of the Texas State University Payment Request, Form AP-1; or
b. The university P-card administrator will give
specific advance approval for use of a university issued P-card to pay for a purchase.
06.03 Any catered
event must comply with UPPS No. 05.03.02, Catered Events.
06.04 Food, excluding
alcoholic beverages, provided with conferences, workshops, and similar events
are allowable when:
a.
The
expenses are for the participants who paid the required fees; and
b.
The
literature (e.g., brochures, advertisements) soliciting participation in the
activity states or infers the expenses as a part of the fee. This literature
and the receipts or invoices must accompany the payment voucher.
06.05 Itemized invoices and receipts should be attached
to each payment document. There should be adequate records or sufficient
evidence of:
a. The amount;
b. The time, place, and description of the
expenditure;
c.
The
business purpose and the benefit to the university; and
d.
The
business relationship of the persons involved.
07. REVIEWERS
OF THIS UPPS
07.01 Reviewers of this UPPS include the following:
Position Date
Associate Vice
President for June 1
E5Y
Financial Services
Director, Purchasing June 1 E5Y
Director, Accounting June 1 E5Y
Director, Sponsored
Programs June 1 E5Y
08. CERTIFICATION
STATEMENT
This UPPS has been
approved by the following individuals in their official capacities and
represents Texas State policy and procedure from the date of this document
until superseded.
Associate Vice
President for Financial Services; senior reviewer of this UPPS
Vice President for
Finance and Support Services
President