Purchase of Food, Refreshments, Alcohol or Achievement Awards

Texas State University-San Marcos
Official UPPS No. 03.01.03
Issue No. 5
Effective Date: 10/18/00
Review: June 1 E5Y

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01. POLICY STATEMENTS

01.01

We at Texas State are committed to providing sound financial stewardship through accounting, budgeting, monetary management systems, and fundraising activities which maximize the institution's fiscal posture. This procedure contributes to the implementation of this policy.

01.02

The Board of Regents, Texas State University System, determined that the expenditure of institutional funds that are not otherwise restricted for the purchase of food, refreshments, and achievement awards assists the universities in the System in carrying out their educational functions, promotes education in the State of Texas, and provides an important public purpose.

The President is delegated the authority to implement a policy for the expenditure of institutional funds that are not otherwise restricted for the purchase of food, refreshments and achievement awards under the guidelines in Regents Rules, Chapter III, Section 6.8.

01.03

Expenditures must have one (1) or more of the following guidelines as a direct purpose:

a.

The recognition or promotion of academic achievement, athletic achievement, scholarship, and/or service to the University or State.

b.

The promotion of the communication of intellectual ideas among students, faculty and staff, administrators, and/or representatives of the public.

c.

The support of student events and activities which are sponsored by the University.

d.

The recruitment of highly qualified students, faculty, and staff.

e.

The promotion of the exchange of ideas with community leaders regarding the University role in the community.

f.

The assistance of the Regents, accrediting agencies, officials from other universities, and/or public officials in inspecting and/or reviewing facilities and programs.

g.

The support of the University's program of continuing education.

01.04

Specific guidelines and limitations on the expenditures for food, refreshments, and achievement awards from certain types of auxiliary funds are as follows:

a.

Funds expended for continuing education conferences, seminars, and short courses must have been included in the continuing education registration fees assessed.

b.

Funds expended which were received from university concessions, student services fees, student organizations, and other auxiliary funds must have been previously budgeted therefor.

c.

Other locally generated income and auxiliary funds not restricted to administrative, education and general research plant expansion, loan, endowment, or scholarship programs may be used to the extent that they have previously been budgeted therefor.

d.

No funds under the control of intercollegiate athletics may be used to purchase alcoholic beverages.

01.05

All achievement awards must be made in accordance with the Internal Revenue Code.

a.

An employee achievement award is an item of tangible personal property (a pen, a crystal bowl, a clock, etc.) given to an employee for a length of service (an award will not qualify for length of service if it is received during the employee's first five (5) years of employment or if the employee has received a length of service award in the previous four (4) years) or safety achievement, but only if awarded as part of a meaningful presentation. The presentation need not be elaborate, but must be a ceremonious observance emphasizing the employee's achievement in the area of safety or length of service. Items that will not qualify for achievement awards are: cash, gift certificates, tickets to the theatre or sporting events, vacations and real property. The award should not be given at the same time annual salary adjustments are made or the IRS may claim that this is disguised compensation. The maximum amount that can be excluded from an employee's wages for an employee achievement award is $400 per tax year.

b.

The Scholarship Coordinator must be notified of achievement awards for students.

01.06

Agency funds are exempt from this policy.

02. FUNDING SOURCES FOR PURCHASE OF FOOD AND REFRESHMENTS

02.01

Accounts that may be used for the purchase of food and refreshments are listed in Attachment I (see section 05, guidelines for purchase and payment of purchases):

a.

Education and General Funds - only if purchase is directly used in an academic laboratory for research and teaching (e. g., Family and Consumer Science, Agriculture, and Biology). Expenditures may also be made for ROTC commissioning ceremonies or similar activities.

Account numbers x-1000 through x-2999 (which include indirect cost accounts) may not be used other than that previously mentioned.

b.

Designated accounts (account numbers x-3000 through x-3499).

Food for Continuing Education conferences, seminars, and short courses offered at Texas State must be included in the continuing education registration fees assessed.

c.

Auxiliary accounts (account numbers x-3500 through x-4900). Funds expended which were received from university concessions, student service fees, student organizations, and other auxiliary funds must have been previously budgeted.

d.

Restricted accounts (account numbers x-5000 through x-5999 and x-8000 through x-8999) with the following exceptions:

1)

External grant and/or contract funds are only acceptable if the expenditure has been included in the budget and is allowed by the funding agency.

2)

Scholarship funds, endowment funds, and loan funds may not be used.

e.

Discretionary Funds (accounts 4-3281, 4-5702, and 4-5740) - A limited amount of funds are allocated annually by the president for meals, refreshments, or achievement awards at functions such as faculty receptions, commencement, retirement receptions, award banquets, school receptions, division receptions, and receptions for important guest speakers. These funds are maintained by Finance and Support Services. See FSS/PPS 03.01.11 for additional information.

03. FUNDING SOURCES FOR ACHIEVEMENT AWARDS

03.01

State law permits use of education and general funds for awards for professional achievement and other outstanding service (e. g., safety) for current employees, volunteers and retirees, the cost of which shall not exceed $50.00 per employee (i. e., lapel pins, plaques, engraved certificates, etc.). The voucher must list type of award and name of individual receiving award.

03.02

Designated, auxiliary, and restricted accounts may be used to purchase achievement awards in excess of $50 per current employee, volunteer and retirees.

03.03

Refer to section 01.05 for IRS regulations regarding achievement awards.

04. FUNDING SOURCE FOR ALCOHOL

04.01

Only discretionary funds specifically designated for this purpose may be used to purchase alcohol (see section 05.03).

04.02

No funds under the control of intercollegiate athletics may be used to purchase alcoholic beverages.

05. GUIDELINES FOR PURCHASE AND PAYMENT OF FOOD, REFRESHMENTS, OR ACHIEVEMENT AWARDS

05.01

A budget line item for food, refreshments, or achievement awards should be included in the annual budget.

05.02

Purchase orders should be prepared for all purchases including food, alcohol, refreshments, and achievement awards, except when petty cash is used. The purchase order must be approved by the account manager and then forwarded to the Director of Procurement Services for approval and handling of the order. The account manager will assure that budget guidelines are not exceeded. Requests for payment of purchases will then follow normal purchasing/accounting procedures.

05.03

In extraordinary circumstances in which processing a purchase order is not feasible, reimbursement for expenditures made from personal funds may be requested. Reimbursements to employees for food, refreshments and alcohol may only be made upon completion of the Texas State payment request, Form #AP-1 (Attachment II).

05.04

Any catered event must be in conformance with UPPS No. 05.03.02, Catered Events.

06. MAJOR RESPONSIBILITIES ASSOCIATED WITH THIS UPPS

06.01

Major responsibilities for routine assignments associated with this UPPS include the following:

Position		Section		 Date

Asst. Vice President	Review		 June 1 E5Y
for Finance & Support
Services Planning

Director, Special	Review		 June 1 E5Y
Projects

07. 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.

Ms. Nancy Nusbaum, Assistant Vice President for Finance and Support Services Planning; senior reviewer of this UPPS

Mr. Kevin Gilley, Director, Special Projects; reviewer of this UPPS

Mr. Bill Nance, Vice President for Finance and Support Services

Dr. Jerome Supple, President