UNIVERSITY of NORTH DAKOTA FINANCE & OPERATIONS POLICY LIBRARY GROUP MEALS formerly Food and Beverage Purchase Approval Policy 2.5, Group Meals Responsible Executive: VP Finance & Operations Responsible Office: Accounting Services Issued: October 22, 2003 Latest Review / Revision: June 11, 2012 POLICY STATEMENT University of North Dakota (UND) departments may pay for meals, beverages (excluding alcoholic beverages), and snacks when hosting dignitaries, guests, seminars, conferences, institutional meetings or employee functions. The group meal must have a documented business purpose and the expenses must be reasonable and not personally benefit University employees. This policy does not apply to team or other group travel payments. REASON FOR POLICY As a public institution, the University must demonstrate the prudent use of funds entrusted to it by its various constituencies. The general public, legislators, students, donors, and granted organizations and individuals must be assured that funds are wisely spent and do not personally benefit University officials and employees. North Dakota State Board of Higher Education (SBHE) Policy 806.1 and North Dakota Century Code (NDCC) 44-08-04 allow for the payment of group meals. Per NDUS Procedure 806.1, any meal that is in excess of 125 percent of the GSA per diem rate per person requires written documentation explaining why the expense is reasonable and justified. SCOPE OF POLICY This policy applies to: President Vice Presidents Deans, Directors & Department Heads Area Managers & Supervisors Faculty All Employees Students Others WEB SITE REFERENCES This policy: http://und.edu/finance-operations/_files/docs/2-5-group-meals.pdf Policy Office: http://und.edu/finance-operations/policy-who-we-are.cfm Vice President for Finance & Operations: http://und.edu/finance-operations/ Page 1 of 6
CONTENTS Policy Statement 1 Reason for Policy 1 Scope of Policy 1 Web Site References 1 Related Information 3 Contacts 3 Definitions 3 Principles (overview) 4 Procedures 4 Food and Beverage Purchases 4 Food and Beverage Purchases with Grants and Contracts Funds 5 Responsibilities 5 Forms 5 Appendices (list) 5 Appendix 1 Examples of Allowable Food and Beverage Purchases 7 Revision Record 6 Page 2 of 6
RELATED INFORMATION Campus Catering/Dining Services GSA Per Diem Rates NDCC 44-08-04 Prepayment of travel expenses of state officers and employees NDUS Human Resource Policy Manual 31 Travel Expense NDUS Procedure 806.1 Payment or Reimbursement of Meals SBHE Policy 806.1 Payment or Reimbursement of Meals and other Travel or Institutional Expenses http://und.edu/student-life/dining/catering/index.cfm http://www.gsa.gov/portal/category/21287 http://www.legis.nd.gov/cencode/t44c08.pdf http://ndus.edu/makers/procedures/hr/?sid=50&pid=252&re=d http://ndus.edu/makers/procedures/ndus/default.asp?pid=460&si D=60 http://ndus.edu/makers/procedures/sbhe/default.asp?pid=27&sid =9 CONTACTS General questions about this policy can be answered by your department s administrative office. Specific questions should be directed to the following: Subject Contact Telephone Department Email / Web Address Policy Content & Clarification Grants & Contracts Allowability Campus Catering Agreement Accounting Services Grants & Contracts Administration (701) 777-2771 (701) 777-4151 Dining Services (701) 777-2256 und.accountingservices@email.und.edu http://www.und.edu/dept/accounts/ http://und.edu/research/research-economicdevelopment/grants-contracts/ http://und.edu/studentlife/dining/catering/index.cfm DEFINITIONS GSA Campus Catering Agreement NDCC NDUS SBHE General Services Administration GSA oversees the business of the U.S. federal government. Its policies covering travel, property and management practices promote efficient government operations. A request/agreement made between an employee/department and Dining Services for catering services including details such as: type of function, location, date, meal served, number of attendees, contact information, and billing information. North Dakota Century Code Codification of all general and permanent law enacted since statehood. North Dakota University System Unified system of higher education entities including two research universities, four regional universities and five community colleges. State Board of Higher Education The policy setting and advocacy body for the North Dakota University System and the governing body for the North Dakota s publicly supported colleges and universities. Page 3 of 6
PRINCIPLES OVERVIEW University of North Dakota (UND) departments may pay for meals, beverages (excluding alcoholic beverages), and snacks when hosting dignitaries, guests, seminars, conferences, institutional meetings or employee functions. The group meal must have a documented business purpose and the expenses must be reasonable, moderate, withstand the test of public scrutiny, and not personally benefit University employees. This policy does not change payment or reimbursement of employee travel expenses, including per diem rates. This policy does not apply to team or other group travel payments. Employees may attend a business related function hosted by another entity, for which the University will pay for if an employee is required to attend by his/her supervisor/employer. If an expense is to be paid from a grant or contract fund, a Grants and Contracts Officer should be contacted prior to incurring the expense. As a public institution, the University must demonstrate the prudent use of funds entrusted to it by its various constituencies. The general public, legislators, students, donors, and granted organizations and individuals must be assured that funds are wisely spent and do not personally benefit University officials and employees. North Dakota State Board of Higher Education (SBHE) Policy 806.1 and North Dakota Century Code (NDCC) 44-08-04 allow for the payment of group meals. Per NDUS Procedure 806.1, any meal that is in excess of 125 percent of the GSA per diem rate per person requires written documentation explaining why the expense is reasonable and justified. PROCEDURES Group meals may be hosted by the University at either an on-campus or off-campus location. The hosting department is responsible for ensuring the function is allowable. Contact Accounting Services for clarification prior to making arrangements for the function. For additional information, review Examples of Allowable Food and Beverage Purchases (see Appendix 1). Food and Beverage Purchases CAMPUS CATERING Complete a Campus Catering Agreement at the time the function is booked with Dining Services. The department will be required to provide all necessary information as indicated below: Type of function and purpose Location of function (city and state) Date of function Meal served (breakfast, lunch, dinner, break) Number of actual or guaranteed attendees List of those attending (specify those that are UND employees and those that are not) Written statement providing justification for higher prices on any meals costing over 125 percent of the GSA per diem rate per person After the function, Dining Services will initiate a journal entry to charge the departmental fund indicated on the Campus Catering Agreement. For additional information on booking a UND-catered event, visit Dining Services website. EXTERNALLY CATERED EVENTS OR EVENTS HELD OFF-CAMPUS The department will be required to provide all necessary information as indicated below on the Payment Request E-form. Department will submit this form through the Accounts Payable electronic payment system. Page 4 of 6
Type of function and purpose Location of function (city and state) Date of function Meal serviced (breakfast, lunch, dinner, break) Number of actual or guaranteed attendees List of those attending (specify those that are UND employees and those that are not) Original itemized original receipt/invoice showing what was charged, and a receipt showing proof of payment (if not shown on the itemized receipt). Written statement providing justification for higher prices on any meals costing over 125 percent of the GSA per diem rate per person. Food and Beverage Purchases with Grants and Contracts Funds If a function is to be paid from a grant or contract fund, the appropriate Grants and Contracts Officer should be contacted to discuss whether food and beverage purchases are allowable on the grant or contract fund prior to making arrangements with Campus Catering or another vendor. RESPONSIBILITIES Accounting Services Campus Catering/Dining Services Grants and Contracts UND Departments Process payment for functions not catered by Dining Services Process journal entries for functions catered by Dining Services Initiate journal entry to charge a departmental fund as indicated on a Campus Catering Agreement Work with department to determine if food/beverage are allowed to be paid from a grant or contract fund Contact Grants and Contracts Administration to verify if a function may be paid from a grant or contract fund Complete Campus Catering Agreement at the time an on-campus function is booked Complete Payment Request E-form to request payment of events not catered by Dining Services FORMS Campus Catering Agreement Contact Campus Catering APPENDICIES Appendix 1 Examples of Allowable Food and Beverage Purchases Contact Accounting Services Page 5 of 6
REVISION RECORD 10/22/2003 Policy Implementation 10/30/2008 Revision Put in F&O policy format 01/12/2009 Revision 06/11/2012 Revision Renamed policy as Group Meals (formerly known as Food and Beverage Purchase Approval) Removed Allowable Food and Beverage Purchases section from Procedures as much of this information was made part of the Policy Statement and Reason for Policy. Added reference to NDUS Procedure 806.1 Page 6 of 6
Group Meals Policy 2.5 Appendix 1 Examples of Food and Beverage Purchases Any meal or snack purchased with University funds must have a documented business purpose and when the average cost per person of the meal exceeds 125 percent of the individual GSA per diem rate, written justification for reasonableness must be provided. FUNCTION ALLOWABLE CLARIFICATION/COMMENTS Recruitment of faculty and staff YES Staff members may be reimbursed for meal expenses incurred while recruiting staff and faculty. The expenses for the candidate's spouse/guest and the spouse/guest of the institutional hosts(s) are allowable. Business meetings with University guests YES Purchases of meals or snacks for business meetings attended by University employees and guests such as a speaker, etc. are allowed. Employee retreat YES Purchases of food and beverage are allowable for retreats. Departmental activities, including departmental staff meetings or departmental working lunches/dinners Staff meetings involving multiple departments NO YES Purchases of meals or snacks are not allowable for departmental activities, including coffee breaks, and periodic departmental staff meetings within one department even if the meeting is mandatory for the employees. Purchases of meals or snacks are allowable for staff meetings involving multiple departments. Employee functions YES Expenses associated with hosting receptions, and employee recognition functions are allowed only if open to entire campus. Tickets to University functions honoring employees. YES Tickets may be purchased for the honorees only. Alcoholic beverages NO Alcoholic beverages are not to be paid for from institutional funds regardless of the source of funds. Spouses/guests of employees/nonemployees NO Purchases of meals for spouses or guests of employees/non employees are not allowable, except when the purpose is for recruitment (see above). Purchases of food and beverages are allowable for the President s spouse when they are an official representative of the University. Holiday functions/parties NO Holiday parties are not an allowable expense. An organized banquet/reception or similar event honoring students YES An academic department may pay for a reception to recognize the students enrolled in their program. Payment for food & beverages for guests and family members is allowed. A Chamber of Commerce banquet or similar event YES The employee must be attending as an official representative of the University.