Hosting Policies and Procedures
From Miami University Purchasing and Payment Handbook
Available on line at http://www.miamioh.edu/accountspayable
Hosting regulations are based on IRS guidelines, the Administrative Code of the State of Ohio, and the University's determination of reasonable hosting activities. As a steward of public funds, the University has a responsibility to be conservative in its hosting activities.
1.00 Hosting Definition
Hosting activities funded by the University must be related to University business. Expenditures of a personal nature, unreasonable or excessive expenses, and those not specifically related to the conduct of University business are not allowable. To be considered a business expense by the IRS, meals and hosting expenses must meet the following requirements:
- The expense must be incurred as part of ordinary and necessary University business.
- The expenditure cannot be lavish or extravagant.
- There must be a substantial business discussion during, directly before, or directly after the meal.
2.00 Definition of Discretionary and Nondiscretionary Accounts
Hosting expenses must be charged to an appropriate index code. All Miami University index codes, for hosting purposes, are identified as either Nondiscretionary or Discretionary accounts based on their fund designation. (Refer to chart at the end of this section).
Nondiscretionary accounts are generally those which are funded in whole or in part by money received from the State of Ohio. All expenditures from these accounts must comply with the provisions of the Ohio Revised Code and the regulations of the Ohio Board of Regents in addition to the IRS and University rules. Use of Nondiscretionary funds for hosting is limited to specific purposes as outlined in the following sections of this document.
Discretionary accounts are generally those which are funded through gifts, private and local grants, and private and local contracts. The use of Discretionary funds for hosting must still comply with IRS and University rules, but may be used at the discretion of the department within the guidelines of the account. Those guidelines are documented by the Accounting Manual Sheets for that account and outlined in the following sections of this document.
The following table indicates the various types of accounts for various funds:
|XXX000 thru XXX699
||Education & General Nondiscretionary Auxiliary
|XXX700 thru XXX999
|G # # # # #
||Grants & Contracts
|C # # # # #
|| Cost Share Portion of Grant
|S # # # # #
||Plant Funds-State Funded Capital Improvements
|L # # # # #
||Plant Funds-Locally Funded Capital Improvements
Each expenditure must be recorded with the appropriate account code. The following sections of this document provide guidance as to which account code applies to specific types of expenditures. Appropriate account codes for hosting are:
|Type of Hosting
|University Students (not as student employees)
|University Employees (including student employees)
Flowers, Items of Personal Nature and Celebrations that are not work related (Birthdays, Weddings, Births, etc.) can NOT be purchased from discretionary funds. Flowers for funerals can be purchased from discretionary accounts if done with prudence. The President’s and Vice-President’s Offices purchase funeral flowers on behalf of the University community for current faculty, staff, students, faculty and staff holding emeriti rank, and current or former board members.
Any type of equipment for personal use such as heaters, microwaves, fans, coffee pots, etc. must be purchased from Discretionary funds.
3.00 Hosting of University Guests
Hosting expenses are authorized for fund raising, student recruitment activities, conference marketing activities, lecturers, job candidates, workshop attendees, and consultants. Hosting of University guests may be charged to Discretionary or Nondiscretionary funds as appropriate (See 2.00) using the Account code of 153031.
The following guidelines apply to the hosting of University guests:
- University employees' spouses or significant others may not be reimbursed unless the guest's spouse or significant other is present.
- Receptions may include members of the University community. However, the number of people hosted for meals should be kept to the minimum number appropriate for the nature of the event.
4.00 Hosting of University Students
Hosting expenses for students who are volunteering for University-related activities, acknowledgment of academic achievements, student employment training and development, and achievement recognition are authorized from either Discretionary or Nondiscretionary index codes as appropriate (See 2.00) using Account Code 153011.
Any other student hosting expenditure, such as welcome picnics, refreshments served in meetings, and student entertainment must be charged to a Discretionary account using Account Code 153011. Hosting related to student employment is addressed in 5.00.
Student hosting should follow a "test of reasonableness" for the appropriate amount of expense. Costs of student meals should be comparable to the cost of a similar meal in the dining hall system.
5.00 Hosting of University Employees (including student employees)
Hosting expenses for employee development, training sessions, and achievement recognition may be purchased for Discretionary or Non-Discretionary funds. Employee meals, employee entertainment, celebrations that are work related (Holidays, Welcome Back picnics, end of year parties, retirement parties) and alcoholic beverages may only be charged to Discretionary funds. Hosting of University employees for functions such as routine meetings, social functions, etc. is discouraged and should not be repetitive. These expenses must be charged to Discretionary funds in accordance with the terms of the specific account using Account Code 153021. (See 2.00)
Scholarships, awards, gifts, and gift certificates may not be purchased from Nondiscretionary funds. These expenses must be charged to Discretionary funds in accordance with the terms of the specific account. In accordance with IRS regulations, any award, gift, or gift certificate given to an employee over $50 will be included on the employee's W-2 form as compensation and taxed accordingly. For further information on gifts and gift certificates, see Non-Employee Payments 6.00.
6.00 Hosting Cost Guidelines
Hosting expenses must meet the "test of reasonableness." The following guidelines are applied for the average cost of hosting meals per person:
||$15 per person
|| $25 per person
|| $50 per person
Fund Raising and Job Candidate Hosting
||$15 per person
|| $40 per person
|| $60 per person
These amounts are for the total of the expenditure including tips and/or taxes. Alcohol cannot be charged to a Nondiscretionary account. Alcohol may be charged to a Discretionary account, but must be included in the total allocation for the "test of reasonableness ". Gratuities will be limited to 15% for groups under five people and 18% for groups of five or more people. Exceptions to the hosting guidelines may be requested through the appropriate Dean or Vice President.
7.00 Hosting Documentation and Substantiation
HOSTING FORM IN ADOBE ACROBAT (PDF) FORMAT
PRINTABLE WEBPAGE HOSTING FORM
Documentation requirements are based on the IRS guidelines.
Hosting expenditures may be submitted for payment on a requisition form, LPO form, or intra-University hosting charge slip. The following documentation is required regardless of the form used:
Date, place, and description, including business purpose of expense
- Names and business relationship of persons in attendance (For large functions provide the name of group and number of attendees.)
- Original receipts for reimbursements (credit card statement, canceled check, cash register receipt, or credit card slips)
- Original invoices for direct payment to vendors
- Authorized signature
8.00 Hosting at University Facilities
The University encourages the use of the Shriver Center, Marcum Conference Center & Inn, and the Residence & Dining Halls for hosting meals. Charges for meals at these facilities may be paid by payroll deductions or intra-University charges. Reimbursement for expenses paid by payroll deduction may be requested by submitting a University requisition form. Intra-University charges may be made by the responsible departmental individual by completing an intra-University hosting charge slip.