Topic: | Financial and Operations |
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Approval Date: | June 25, 2012 |
Effective Date: | June 25, 2012 |
Last Revised: | April 18, 2024 |
1. Purpose
This procedure establishes guidelines so that hospitality expenses incurred on University business are incurred in an appropriate and reasonable manner.
2. Scope and Application
2.1. This procedure applies in respect of all hospitality expenditures paid from University operating, capital, ancillary, special purpose, or research funds.
2.2. Hospitality expenses paid from externally established research accounts or other external sources may only be incurred if they are permitted by the terms and conditions of the funding agreement, award, or contract.
3. Definitions
For the purposes of this Procedure:
3.1. Hospitality is the provision of food and beverages, social or recreational activities, events and functions, and gifts which are purchased in support of the educational, research or service activities of the University.
3.2. Internal Hospitality is hospitality organized principally for the benefit of York University employees, students and/or governors.
3.3. External Hospitality is the hospitality organized principally for the benefit of individuals who are not employees, students, or governors. Examples would include guests, donors, alumni, representatives from external organizations, etc.
3.4. Reasonable Cost is cost of expenditures deemed to be reasonable determined based on sound judgement and moderation, reflecting consideration of accountability, business purpose, efficiency, and value for money.
4. Guiding Principles
4.1. The University is accountable for the effective and efficient use of its resources. Hospitality, whether internal or external, is accepted as having an appropriate business purpose and is appropriate to the University’s circumstances.
4.2. While expenditures on celebrations of personal events in the lives of employees may not be paid from University funds, this procedure does not intend to discourage these events or expressions from taking place. There is a venerable tradition at the University of faculty and staff voluntarily contributing personal funds for such celebrations. Where appropriate, the University allows the use of its facilities for such celebrations subject to availability, operational requirements, and prior approval of the relevant department head.
4.3. Where appropriate, the University encourages use of vendors operating on campus.
5. Approval
5.1. Hospitality expenses (excluding catered business meals and large functions) shall be approved in advance by the supervisor of the most senior employee in attendance at the function.
5.2. Catering or meals provided for business meetings occurring during a normal working day shall be approved by the signing authority of the cost centre to be charged, or the supervisor of the signing authority, if the person with signing authority is a participant in the business meeting.
5.3. Functions with fifty people or more shall be approved by the signing authority of the cost centre to be charged, or the supervisor of the signing authority, if the person with signing authority is a participant in the business meeting.
5.4. Additional approvals may be required as outlined in the Guidelines below.
6. Exceptions
6.1. Any departure from this procedure shall be made only after written pre-approval from a Vice-President or the President upon written justification.
7. Guidelines
7.1. The following guidelines should be reviewed and implemented in conjunction with the Hospitality Policy.
7.2. Eligible Hospitality
a. Appropriate hospitality charges include:
i. events hosted or sponsored for the purpose of promoting the University’s work or enhancing its image, reputation and overall standing;
ii. meals at a Reasonable Cost at which University business related matters are discussed;
iii. hosting other employees in circumstances where the nature and sensitivity of the University business discussion requires privacy; and
iv. expenses that are permissible under the external funding agency guidelines, if applicable.
b. Other reasonable expenditures allowable for hospitality are those incurred:
i. In the recruitment of faculty and staff, including expenses of the principal individuals involved in the decision-making process;
ii. in hosting students or student organization leaders, in supporting leadership, developing affinity, or recognizing contribution;
iii. in hosting prospective students and parents for recruitment and advancement related activities;
iv. in recognizing job performance;
v. for volunteer recognition events;
vi. for donor cultivation and recognition;
vii. for public relations events;
viii. for University sponsored receptions;
ix. for receptions to acknowledge long service or other awards to faculty, staff, students, and alumni for outstanding accomplishments;
x. for receptions to host or honour visitors, guests, or dignitaries;
xi. for receptions for official openings of buildings, art exhibits, etc.; and
xii. for ceremonies such as convocations or public announcements.
7.3. Expenditures for Alcoholic Beverages
a. Alcoholic beverages will be permitted expenditures for internal hospitality functions with the written pre-approval of the President or a Vice-President.
b. Expenses will be reimbursed for alcoholic beverages purchased for external hospitality if incurred at a moderate level appropriate to the circumstance.
c. All alcoholic beverages purchase, and consumption must adhere to the Sale, Service and Use of Alcoholic Beverages on Campus Procedure.
7.4. Hospitality Involving Spouses, Partners, or Family Members
Hospitality may be extended to spouses, partners or family members of York employees when approved in advance by a Vice-President or the President.
7.5. Hospitality for Government Officials
Hospitality shall only be extended to government officials pursuant to the Broader Public Sector Expenses Directive issued by the Ontario Management Board of Cabinet as it exists from time to time.
7.6. Hospitality Charged by Consultants and Contractors
In accordance with the Broader Public Sector Expense Directive, in no circumstances can hospitality, incidental or food expenses be considered eligible expenses for consultants and contractors under the rules or in any contract between the University and a consultant or contractor.
Reimbursement for eligible expenses can be claimed and reimbursed only when the contract specifically provides for it.
7.7. Gifts to External Individuals
a. Reimbursement will be made for modest gifts given to individuals as tokens of appreciation for speaking or presenting at University events such as conferences, workshops, panels, or guest lectures.
b. Reimbursement will be made for modest gifts given to individuals where it is a cultural norm to do so, provided that ethical business practices are not compromised.
7.8. Appreciation Items Given to Employees
Reimbursement will be made for gifts, other than gifts of money or gift certificates, given in appreciation of employee efforts beyond normal job responsibilities. Such appreciation gifts should be token (i.e. gifts of small value, such as University crested clothing purchased from the University Bookstore, mugs, plaques, etc.)
7.9. Meals or Refreshments Served at Meetings
Reimbursement will be made for meals and/or refreshments provided at meetings attended by University faculty and staff in person, as long as the purpose of the meeting is work-related (such as planning, education, collaboration, etc.) and the cost per individual is reasonable (including incidentals such as gratuities).
7.10. Retirement Functions
a. Expenses for retirement functions for long-serving faculty and staff will be reimbursed when:
i. hosted at a reasonable cost; and
ii. approved in writing, in advance by a Vice-President or the President.
7.11. Departmental Social Functions
Expenses will be reimbursed to departments for costs of one (1) unit-wide social event per year for its employees when approved in writing, in advance by a Dean, Vice-President or the President.
7.12. Reimbursement of Eligible Expenses
a. Employees who pay for hospitality and entertainment expenses may request reimbursement pursuant to the Reimbursement of Expenses Procedure. These expenses must be paid by the most senior person present at the event. Use of the University’s Travel Card is recommended to facilitate payment.
b. Expenditures for large functions shall be billed directly to the University.
7.13. Documentation
a. To charge the University for hospitality or to claim hospitality expense reimbursement, the following documentation is required:
i. A written account of the business purpose and appropriate justification of the expense;
ii. Number of attendees;
iii. The names and affiliation of the attendees (i.e., the guest’s home institution/organization and his or her position);
iv. Supporting itemized receipts and/or invoices. Credit card receipts and debit card slips on their own are not sufficient support; and
v. Written pre-approval, if required by this policy.
7.14. Ineligible Expenses
a. Expenses incurred in relation to the following are considered the responsibility of the individuals participating or hosting the event:
i. celebrations of birthdays, weddings, births, or other functions; and
ii. expressions of sympathy (including flowers, cards, etc. for bereavements).
7.15. Recovery of Ineligible Expenses
Any hospitality expenditures that are charged to the University and subsequently determined to be ineligible will be recovered from the claimant.
Legislative History: | Reviewed by the President and Vice-Presidents, May 2012. Approved by the Board Finance and Audit Committee, May 28, 2012, and the Board of Governors, June 25, 2012. Procedure revised: April 18, 2024 |
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Date of Next Review: | 2029 |
Related Policies, Procedures and Guidelines: |
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