Official Occasion Expense Guidelines

This document supplements and highlights parts of the University’s entertainment policy and applies to all departments and units in the College of Liberal Arts. Official Occasion Expense Forms (OOEFs) are required for all entertainment and official occasion expenses. Unit heads may implement more but not less restrictive internal policies. This list is not meant to be exhaustive, but to highlight some of the most common issues and questions related to OOEFs.

General Guidelines

• In accordance with UT and COLA policies and procedures, all entertainment expenditures must serve an acceptable and verifiable business purpose.

• Ensure that the expenses are permitted on the account that is being used. Reference HBP 9.1.1 and the policy exception chart.

• Check DEFINE to ensure that the account currently has sufficient funds to cover the expense in the account’s free balance. Otherwise, a transfer is needed prior to submittal (or) a different account should be used.

• Per Person Expenses – These are dependent upon the participant information and the type of occasion. See details outlined below. Units will not be required to get a per person cost when there is a business contract with a vendor for a total package price that includes food and non-food expenses.

Types of Expenses

Alcohol: 

• Alcohol expenses at dinner are reimbursable, if the meeting or event is for recruitment or a developmental purpose and/or donors or distinguished guests are in attendance.

• Alcohol is not reimbursable for business meetings conducted during breakfast or lunch.

• Alcohol will only be reimbursed up to 50% of the food and drink subtotal before tax, tip, & fees. Per UT policy, Alcohol expenses more than 50% of the subtotal before taxes, fees, and tips, will not be paid using UT funds.

  • Narrow exceptions allowed in the HBP Policy (See: 9.1.1.4.2 Maximum Permitted Amounts)

• Serving Alcohol at Events in a Non-licensed Venue including a Private Residence: The vice president for legal affairs recommends that a TABC licensed caterer or bartender be used for all events.

  • University employees should not be used as servers at an event unless it is in their official job description (even if they are TABC certified).

  • If undergraduate students will be in attendance, a licensed TABC bartender is required.

  • The college will not reimburse alcohol for events held at private residences.

• Alcohol on Campus: Generally, alcoholic beverages cannot be served on property and in buildings owned or controlled by The University of Texas System or UT Austin. See Board of Regents’ Rule 80102 and HBP 9.1.1 for additional details.

  • To request to serve alcohol on campus at a non-licensed venue, submit an exception request in advance of your event.

  • Review the guidelines to request an exception and see the list of licensed venues HERE

• Students: If the event is considered a student event, alcohol is not permitted. That is, alcohol is restricted on accounts with Centrally Funded Fringes (CFF) report codes. These funds must be used to support student academic services, events, or materials. Meals and refreshments are not allowed unless for events in support of student and/or academic services where most of the attendees are students. These accounts can never be used to purchase alcohol. Academic Excellence funds can be used for general entertainment (but no alcohol) expenses.

Tax:

• An exemption certificate is available for state sales tax and mixed beverage sales tax.

• Sales tax can be reimbursed for an employee who paid for a business meal with personal funds. Otherwise, sales tax is not reimbursable.

Delivery/Fees:

• Includes delivery fees and any non-standard charge(s) not applicable to the Food & Misc. category.

• Includes room & equipment rental fees.

Tips / Gratuity / Service Charges:

• Tips/gratuity are reimbursable up to 20% of the pre-tax subtotal.

• Service Charges are most often meant to be a guaranteed minimum “Tip” required by the venue/vendor. Some vendors automatically charge a guaranteed amount for events or for a large number of guests, and some others charge a guaranteed minimum regardless of the number of guests. Review closely to avoid duplicating gratuity or conversely, not adding a gratuity if warranted. There is no need to add a manual tip if one is automatically charged as a “service fee.”

  • This is not always clear, as not all service fees are guaranteed gratuity. [Example: a service fee may be for items such as plates, utensils, etc.]; use your best judgement and/or confirm with the vendor what is included.

• If the venue charges a guaranteed minimum service charge that is greater than the allowable 20% gratuity, this is an unavoidable cost. Best practice is to document in the NOT section of the payment voucher.

Reimbursements

• Entertainment Reimbursements should be processed within 30 days in accordance with the Prompt Payment Act but must be processed within 60 days of the event. Because of the time required for document processing, both within the department and in accounting, it is recommended to submit requests no later than 45 days after the event.

  • Reimbursements past 60 days will no longer be approved and will be the employee’s responsibility.

  • Exceptions will be considered for significant life events and must be approved by the Dean. An exception form is required.

• The college will not reimburse alcohol for events held at private residences.

Attendees

Student Attendees:

• Food for Organized Courses: Routine food costs for organized courses (listed in the registrar catalog) are not allowed.

• Student Events: Events that are primarily students should be processed using object code 1309 (OFFICIAL STUDENT OCCAS), instead of 1347.

• Alcohol: Should not be served at student events.

Families/Guests of Students: 

• If the event includes students and their families, such as for a graduation reception, reimbursement is permitted.

UT Employee Attendees:

• Entertainment expenses involving only UT employees (faculty & staff) and for special/infrequent occasions, which may involve both employees and student employees (both graduate and undergraduate) should not exceed $100.00 per-person (including food, beverage, tax, and gratuity).

• Frequency of special gatherings involving food/entertainment expenses should be limited to no more than three times yearly (e.g., start-of-year, holidays, end-of-year, etc.)

• Regularly recurring meetings, including faculty and staff meetings, should not include food/beverage.

• Business Meetings: Meal expenses for a business meeting of two or more UT employees cannot be reimbursed if it could have been scheduled during working hours (not just for convenience).

• Team Building/Group Retreats: Should occur infrequently (i.e., not more than once yearly).

• Employee celebrations (faculty & staff): Should be kept to a reasonable occurrence (e.g., quarterly birthday gatherings, not individual ones).

• Holiday Parties: Endowment accounts may not be used to pay for holiday parties. Use Various Donors/Various Purposes (VD/VP), Excellence, or other non-core (self-sustaining) accounts.

• Retirement Receptions: Chairs/Professorship endowments cannot be used for retirement parties; however, excellence funds endowments may be used to pay for retirement receptions.

• Baby Showers & Other: Non-work-related personal events may not be paid for/reimbursed with university funds.

Donors, Speakers, Special/honored Guests/Companions, and Recruitment Attendees:

• Per-person costs for entertainment expenses directly involving donors and/or special/honored guests, including faculty and staff recruitment related activities, are limited to $100 per person (which includes food, alcohol, tax, and gratuity). Please see HBP 9.1.1 for official policy details and limits.

  • Costs more than this amount cannot be paid using university funds and will not be approved; Employees will be personally responsible for all costs exceeding the $100/person limit.

• The number of reimbursable meals for events associated with the recruitment of prospective employees or receptions for distinguished guests should be limited.

• Meals for Faculty Recruitments should involve no more than four attendees (the prospective employee and three UT affiliates).

  • Family Members/Companions: Reimbursements for meals are not permitted for companions/spouses/family members of university employees, including while on travel.

    • Exception: If a donor/distinguished guest brings a companion, reimbursement for the companion of the host employee’s companion is usually reimbursable.

Other Expense Types

Breakroom Supplies:

• General expenses such as creamers, tea bags, and water for break rooms can only be paid from excellence endowments, VD/VP, and other non-core accounts (self-supporting).

Flowers/Perishable Items:

• Flowers to Employees: Should not exceed $200.00 (including shipping costs).

  • Only excellence fund endowments, VD/VP, and other non-core accounts can be used to pay up to $200 (including shipping costs) for flowers.

  • Tax exempt

Gifts/Awards to Employees:

• Length of service merchandise awards (non-cash) should not exceed $400.00; awards valued more than $400.00 must be included in the employee’s taxable income.

• Employee merchandise awards (non-cash, non-length of service) should not exceed $50.00; awards valued more than $50.00 must be included in the employee’s taxable income.

• Inscribed awards are excluded from taxation requirements since those awards that have been inscribed have a fair market value of zero.

• These are university-wide rules. Read more about this topic in HBP 9.1.8 Awards.

Parking/Transportation:

• Parking and Transportation services (such as Lyft) are not reimbursable on OOEFs.

Social Club Dues:

• Permitted if it pertains to job duties and benefits UT.

Travel &Training/Professional Development:

• Professional Training/Professional Development: Costs for training or professional development events are not considered entertainment expenses. The state defines professional training as instruction, teaching, or other education received by a state employee that is not normally received by other employees and is designed to enhance the ability of the employee to perform the employee’s job. These costs should follow the University’s standard payment procedures.

  • Should any meal expense be incurred during these events, those expenses must follow the entertainment guidelines outlined above.

  • In general, meals are only reimbursable if overnight travel is required.

• Meals while traveling: The traveler may receive either a travel per diem or a separate, itemized meal reimbursement (via OOEF) for meal expenses incurred while traveling on official university business. If by OOEF, please add note that per diem was not received.

Questions?