FINAL - ICSUAM 1301.00-Hospitality Policy

September 18, 2018

Effective immediately, the Chancellor’s Office has issued revisions to ICSUAM 1301.00 | Hospitality, please see a summary of the changes listed below. We will be updating our HSU Hospitality website to incorporate these modifications. Please note: the attached FAQ document may address specific questions.

Hospitality – FINAL

It is the policy of the California State University (CSU) that hospitality expenses may be paid to the extent that such expenses are necessary, appropriate to the occasion, reasonable in amount and serve a purpose consistent with the mission and fiduciary responsibilities of the CSU. This policy applies to activities that promote the CSU to the public and the provision of hospitality in connection with official CSU business and specifies the university and auxiliary funds that may be used for such purposes. Each campus and its auxiliaries are required to develop written procedures, consistent with this policy, regarding the payment of ordinary and necessary hospitality expenses.

Summary of Changes:

1.       Renames policy from Hospitality, Payment, or Reimbursement of Expenses to Hospitality.

2.       Renamed auxiliaries to auxiliary organizations.

3.       Section 200-Scope:

a.    Rephrased scope policy governs to use of: State funds, auxiliary organizations, sponsored program administration, private-purpose trust and agency funds.

4.       Section 400: Allowable Expenditures:

a.    Renamed from Allowable Expenditures and Occasions.

b.    401-Employee Meetings: Removed “High level of authorized authorities at the Vice Chancellor/Vice President level or above may approve limited exceptions to the maximum per person rate with a documented explanation”.  Added “Food and beverage provided to employees may be permitted when it serves a CSU business purpose. Meetings that are carried out on a regular or frequent basis are not permitted under this policy.  Additionally, public expenditures that are driven by personal motives are an impermissible use of public funds.”

c.    402-Spouses, Domestic Partners, and Significant Others: Addition of significant others verbiage.

d.    403-Students and Prospective Students: Added “To justify the expenditures of public funds, one must determine that the expenditure is consistent with the mission of the CSU”.

e.    Added 404- Awards and Prizes CSU Campuses may establish an award program to the extent that such expenses serve a purpose consistent with the mission and fiduciary responsibilities of the CSU and aligns with IRS regulations. Cash and cash equivalent items, such as gift cards and gift certificates, no matter how small, are always taxable to the employee as wages. A non-cash award or prize may have a taxable consequence to the employee if it does not meet the IRS definition of de minimis and infrequent. Refer to IRS for tax rules in resources and materials section. Campus’ written procedures shall document the award program, including eligible awards and per person limits.

5.       Section 500-Unallowed Expenditures:

a.    501-Personal Benefit: Removed “Memorial Services, celebrations of retirement, and farewell gatherings for employees separating with at least 5 years of service are permissible”.  Added “The California gift of public funds doctrine set forth in the California Constitution, article XVI §6, prohibits the giving or lending of public [state] funds to any person or entity, public or private, unless there is a public purpose.”

6.       Section 600-Allowable Funding Sources

a.    Funding Sources for Payment of Hospitality Expenses table removed, provided verbiage on allowed funding sources including business purpose requirement for State Funds uses.

b.    601-Operating Funds is now State Funds.

c.    602-Other University and Auxiliary Organization Funds is now Auxiliary Organization Funds.

d.    603-Trust and Agency Funds Held for Third Parties is now Sponsored Programs Administration Funds.

e.    604-Private Trust and Agency Funds added.

7.       Section 700-Approval of Transactions added “The Chancellor, campus president, or designee must approve reimbursement of hospitality expenditures for recreational, sporting or entertainment events.”

8.       Section 800-Definitions: Definitions renumbered and updated

9.       FAQ Section Added