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- Entertainment Expenses: Expenses incurred for official occasions and entertainment may be reimbursed according to the Entertainment and Official Occasion Expenditure Policy Chart for the appropriate type of expense. Entertainment expenses are not allowed on state funds (14-accounts), Available University Funds (AUF) (20-accounts), indirect cost (19-accounts), or service center funds (18-accounts). For a complete list of the account types that are allowed for entertainment expenses, refer to the chart.
- Entertainment Limits
- The entertainment limit is an average of $75 per person including food, alcohol, tax, and gratuity. 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 a private residence.
- Units will not be required to get a per person cost when there is a negotiated agreement with a vendor for a total package price that includes food and non-food expenses.
- Gratuities are allowed within reasonable limits. Gratuities should not exceed 20 percent of the bill subtotal before sales tax. For more information, refer to section 9.1.1.M.1.h.
- Expenses for alcohol may not be the primary expenditure, that is, greater than the total food expense. Note: If multiple payment documents are submitted for the same event and alcohol is paid separately, then a copy of all backup documentation related to the event must be included to verify alcohol expense is not greater than food expense.
- Exceptions to the above policy and limit require justification documented on the Official Occasion Expense Form (OOEF) and approval by the dean, vice president, or vice president equivalent. Official delegates may not approve these exceptions. For more information about the OOEF, refer to section 9.1.1.M.1.a.
- Invitations and Holiday/Greeting Cards: Invitations should clearly indicate that the event is a university function. Holiday and greeting cards must be issued in the name of the sending department or office.
- Deadline for Submitting Invoices and Receipts: In accordance with the Prompt Payment Act, vendor invoices must be submitted for payment within 30 days of the event in order to avoid accrued late interest fees.
- State Sales Tax: The university is exempt from state sales tax, so faculty and staff must follow the Texas Sales and Use Tax Exemption Certificate Instructions and present the exemption certificate (Texas Sales Tax Exemption Certificate) to the vendor at the time of purchase. However, if paid with personal funds, employees can be reimbursed for sales tax on business meals. For tax charged on goods and services, refer to 9.1.2. Other Reimbursements, for guidance.
- Alcoholic Beverages:
- Total food expense must be more than half of the total alcoholic beverage expense. Occasional Exception: With the Dean's approval signature on the OOEF, alcoholic beverages may be more than half.
- Only food can be compared with alcoholic beverage cost - Room fees, sodas, etc. cannot be included in the food expense.
- When serving alcoholic beverages at campus events, the event planner must request and receive approval for a bartender. Planner must ensure that a TABC/Texas Alcoholic Beverage Commission-licensed bartender will serve alcoholic drinks.