Meal, Entertainment, and Alcohol Policy

I. Policy Statement

This policy combines the previously separate University of Georgia Foundation (Foundation) policies for Employee-Only Meals to Facilitate University Business, Entertainment (including Athletic Tickets), and Alcohol Expenditures.

Foundation funds may be used for payments to vendors or reimbursements to individuals for expenses related to meals and entertainment incurred by University of Georgia (UGA) employees while conducting official University Business (defined in Section II). Whether for a business meeting with University personnel or for entertainment or events involving individuals external to the University, costs associated with these activities should be reasonable and appropriate, and attendees should be limited to those necessary to achieve the University Business purpose.

All expenses paid by the Foundation must be in accordance with the governing fund agreement from which costs are to be paid. The respective Dean, Vice President, or Director is responsible for determining whether expenses are appropriate, reasonable, and in support of institutional goals or programs prior to submission to the Foundation for processing.

Employees and non-employees who act on behalf of UGA are expected to be good stewards of Foundation funds. As such, Foundation leadership reserves the right to deny payment or reimbursement for expenses deemed excessive in nature (frequency, number of participants, and/or cost). Documentation must make it clear that the expense is appropriate, reasonable and related to University Business.

A summary chart of limits and requirements for submission of payment and reimbursement requests is provided in section VII.

II. Definitions and Examples

This section includes definitions and examples for the three categories of meals and entertainment to provide clarity for applying this policy.

University Business: includes activities carried out by UGA faculty and staff in furtherance of UGA’s mission of teaching, research, and service.

Employee Business Meetings and Other Per Diem Activities: are typically conducted during normal UGA business hours and include meals, non-alcoholic beverages, and/or snacks. Alcohol cannot be served or consumed. Employee Business Meetings are generally limited to UGA employees where the primary reason for the meeting is to conduct University Business. An attendee list and agenda are required. Other Per Diem Activities generally refers to exceptions to UGA ‘s Food and Business-Related Entertainment Policy. These activities may include providing food to volunteers when a quid pro quo relationship exists, as well as to students and individuals being recruited as prospective students. For Other Per Diem Activities, attestation to the number of attendees is required. (UGA employees should be listed by name and relationship to the University.) Employee Business Meetings and Other Per Diem Activities are subject to spending limits that are set forth in Section III below.

Business Entertainment: includes meals and entertainment that may involve one or more individual(s) external to UGA (e.g., donors, prospects, prospective employees) for the purpose of conducting University Business, specifically to build or maintain relationships with identifiable individuals. Additionally, meals and entertainment involving only UGA employees where the primary purpose is camaraderie, team building, and boosting morale are considered Business Entertainment. Alcohol is permitted to be served and consumed. An attendee list must be provided. An agenda is not required. Business Entertainment is subject to spending limits and approvals that are set forth in Section IV below.

Event/Function: is a planned, large-scale, and programmatic gathering that may include a meal and/or entertainment and is intended for a broader audience and typically involves individuals external to UGA (e.g., donors, prospects, alumni) for the purpose of conducting University Business. An Event is typically recurring and includes a preplanned budget. Alcohol is permitted to be served and consumed. An attendee list must be provided. If a confirmed attendee list is not available, an invitation list may be submitted in its place. An agenda is generally required, except for fundraising, alumni, and ticketed events.

 

* See Section IV(B)

III. Employee Business Meetings and Other Per Diem Activities

Employee Business Meetings should be held only to facilitate the effective and efficient operation of the departments involved, and attendance should be limited to those necessary to achieve the University Business purpose. Note: Solo meals for individuals should follow UGA’s Travel Policy and are required to be reimbursed on a per diem basis through UGA processes.

A. General Approval

The purchase of meals for Employee Business Meetings and Other Per Diem Activities must be approved by the Dean, Vice President, Director, or his/her designee and must include:

• The purpose of the meeting or gathering
• The cost of the meal per person
• Employee Business Meeting
  • A formal agenda
  • A list of attendees and relationships to the University
• Other Per Diem Activities
  • Attestation to number of attendees (UGA employees should be listed by name and relationship to the University)

See the Foundation’s Signature Authority and Delegation Policy for additional information regarding approvals.

B. Spending Limits

The spending limits for Employee Business Meetings and Other Per Diem Activities that include meals are $25 for breakfast, $40 for lunch, and $70 for dinner per person, including taxes, gratuity, and fees.

IV. Business Entertainment

Entertainment, whether for UGA employees only or for individuals external to UGA, can be a useful way to conduct University Business, but should be appropriate and professional, and costs incurred should remain reasonable. Further, attendees should be limited to those necessary to achieve the University Business purpose.

Alcoholic beverages are allowed when such beverages are reasonable and appropriate considering the facts and circumstances of the meal or outing. When alcohol is included, discretion should be exercised to maintain professional conduct.

A. Alcohol Ratio and Spending Limit

When hosting guests for meals, drinks only, or drinks with non-meal items, the alcohol ratio guidelines and spending limits apply to the food and alcohol costs (excluding taxes, fees for servers, bartenders, gratuity, corkage fees, and room usage fees).

Meals

1. Alcohol Ratio: Alcohol should be no more than 30% of the food and alcohol costs [Alcohol ÷ (Food + Alcohol)].
2. Spending Limit: The subtotal [Food + Alcohol] should not exceed $75 per person.
3. An itemized receipt that clearly identifies food versus alcohol is required with all payment requests for meals and alcohol.

Drinks Only/Drinks with Non-Meal Items (e.g., Appetizer)

1. Hosting guests for drinks-only and drinks with non-meal items should occur on a limited basis and may only take place at restaurants that serve food. For example, this type of meeting might be used when a prospective donor has limited time and cannot meet for a full meal. The subtotal [Food + Alcohol] should not exceed $75.
2. An itemized receipt is required with all payment and reimbursement requests when hosting guests for drinks-only and drinks with non-meal items.

B. Additional Approval Requirements

• Exceptions: In the event the alcohol ratio threshold (30% of the food and alcohol costs), spending limit for meals, or spending limit for “drinks only” is exceeded, the Dean, Vice President, or Director must approve the payment or reimbursement. This authority may not be delegated. Documented approval of the exception must be submitted with the payment or reimbursement request. The Foundation reserves the right to request additional documentation and/or an explanation.
• Employee Business Entertainment/Team Building: Employee Business Entertainment requires documented pre-approval by the Dean, Vice President, Director or his/her designee, which must be submitted with the payment or reimbursement request.

Multiple Payment Documents

If multiple payment documents are submitted to the Foundation and/or UGA for the same meal, then a copy of all documentation related to the meal must be included for review of the alcohol vs. food ratio.

V. Business Entertainment and Events/Functions: Compliance with UGA Policy

When alcohol is purchased or provided, the Foundation requires compliance with the guidelines set forth in UGA Policy 01.07.004  (the “UGA Event Alcohol Guidelines”). When requesting reimbursement for expenditures that include alcohol, the requestor must attest that the UGA Event Alcohol Guidelines were followed.

UGA units are prohibited from storing alcohol for future use, because it would create risk for UGA and those responsible for storing alcohol.

VI. Gratuity

When gratuity is customary, the general guideline is 20% of the bill, including taxes and fees. If gratuity exceeds 25%, the Dean, Vice President, or Director must approve the reimbursement or payment. This approval authority cannot be delegated. Written documentation of approval must be attached to the reimbursement or payment request.

VII. Summary Chart: Requirements for Meals and Entertainment

* UGA Employees should be listed by name and relationship to the University.

** If a confirmed attendee list is not available for an Event/Function, an invitation list may be submitted in its place.

VIII. Process

The Meetings, Entertainment, & Events Form for vendor payments and employee reimbursements must be submitted in UGAF@Work with reimbursement and payment requests for meals and entertainment incurred by University of Georgia (UGA) employees while conducting official University Business. For additional information regarding the submission of reimbursement requests, see the UGAF@Work Expense Process. For additional information regarding vendor payment requests, see the UGAF@Work Procurement Process.

For entertainment expenses incurred when a Dean or Academic Vice President is a participant and an approver for the related governing fund, please route requests through the Senior Vice President for Academic Affairs/Provost for approval. If there is an exception to this policy, the request must include an acknowledgement and explanation from the Dean or Academic Vice President.

IX. Certain Gift and Ticket Purchases

A. Gifts of Alcohol or Tobacco

It is recommended that alcohol or tobacco not be purchased as a gift or give-away item. However, if reimbursement is requested for these items, the Dean, Vice President, or Director must approve each instance. The approval cannot be delegated. It is the responsibility of the UGA employee requesting payment from the Foundation to provide the Foundation with written documentation of the approval in the payment request. For additional information regarding gifts, please refer to the Foundation’s Unique Purchasing and Payments Policy.

B. Tickets: Athletic and Other Events

When Foundation funds are used to purchase tickets for athletic or other events, an approved Ticket Usage Form must be submitted with the payment request.

The Foundation follows Internal Revenue Service Publication 15-B Employer’s Tax Guide to Fringe Benefits (as revised annually) for employees that do not have a specific business purpose for attending an event. The Foundation provides a report of taxable benefits to the University of Georgia Payroll Department for inclusion in the employee’s taxable income reported on their W-2. See the Foundation’s  Fringe Benefits to Employees Policy for additional details.

The Foundation follows IRS’s guidelines for issuance of Form 1099 MISC for non-employees and corporations without a specific business purpose. See the Foundation’s Tax Reporting Policy for additional details.