Indiana University Northwest
notice
Office of Fiscal Affairs

Office of Fiscal Affairs

Hospitality Procedures

Hospitality Procedures

  1. Complete the Hospitality Request Form for all hospitality-related expenses. This form should be completed online, printed, and signed by the required approvers at least two (2) weeks prior to incurring the hospitality expense.  For auditing purposes, a written explanation must be provided for any Hospitality Request Form that is received less than two weeks prior to the scheduled event date. 
  2. The NW campus limits for candidate recruitment are as follows:

    • Breakfast:  $11.50 per person
    • Lunch:  $11.50 per person
    • Dinner:  $23.00 per person
    • Table of 4:  candidate and 3 others


    Any additional expenses should be funded by the Indiana University Foundation. Contact the Office of Development for additional information.

  3. Follow the University Policy I-50 relating to Allowable Hospitality Expenses available in full form. The below information is excerpts from this policy and is provided as a brief overview.

    Examples of allowable hospitality:

    • Recruitment of faculty, staff or students
    • Receptions with primary purpose of benefitting students
    • Refreshments for training sessions when training is provided by campus Human Resources, campus faculty development offices, or is facilitated by an external training consultant
    • Meal expenses for university employees and outside reviewers required for accreditation
    • Meals or refreshments for formally organized departmental/organization employee business meetings (not lunch only meetings-must be of at least one-half day duration)
    Examples of unallowable hospitality:

    • Alcohol cannot be purchased using campus funds and can only be reimbursed using Indiana University Foundation funds. Contact the Office of Development for additional information.
    • Flowers not related to the allowable functions as stated in Policy I-50
    • Charitable donations to any organization
    • Gifts of any kind, to any individual, whether or not university personnel
    • Items utilized by a university employee in the entertainment of university guests that would be of a personal nature, e.g. golf clubs and memberships in social organizations
    • Hospitality related to fundraising expenses where the revenue from the development goes to an IU Foundation account
    • Meals and refreshments for employees except as stated in Policy I-50 allowable expenses
    • Meals and refreshments for the entertainment of local, state or federal government officials
    The above list is not intended to be exhaustive and does not cover all unallowable expenditures.
  4. Object Code 4025 should be used unless the following exceptions apply:
  • Conferences & Workshops-Conferences hosted by university personnel for which registration/vendor fees are charged, can incur hospitality expenses not to exceed total revenues of the conference. However, in this case, the hospitality expenses should not be charged to object code 4025 (hospitality expense). Object code 4026 should be used for conferences and workshops.
  • Auxiliary & Service Units- Auxiliary and service units can incur promotional expenses related to the good or service that the auxiliary is providing. Such promotional events or expenses must be for the benefit of the unit's client base. Object code 4868 should be used for promotional expenses. Actual auxiliary hospitality expenses (non-promotional) should be charged to object code 4025.
  • Designated Other Funds (23) Accounts Funded by External Sales-University accounts in the Designated Other Funds Group are allowed to incur promotional expenses as necessary and appropriate for the revenue generating activity of that account. These promotional expenses are not to exceed the revenue generated by sales of the good or service the account activity is providing. Object code 4868 should be used for promotional expenses.
  • Student Activity Fee Accounts University accounts funded by student activity fees are allowed to incur approved student activity expenses. Student activity hospitality should be coded as appropriate: object code 4028 (Student Activity Fee Hospitality Expense), or the appropriate recruitment object code.
  • Contract and Grant Accounts should use object code 4027 for hospitality.
Process: 

Hospitality on a Disbursement Voucher (DV):

  1. Initiate the disbursement voucher as per instructions.
  2. Unless FMS Tax Area defaults to the document, select FMS-Bloomington as the Documentation Location for all disbursement vouchers except those created using the following payment reasons:

    • Travel Payment for a Non-employee
    • Travel Payment for Non-employee with Honorarium
    If one of these two payment reasons is chosen, then select Travel Management as the Documentation Location.
  3. Print the cover sheet.
  4. Do not print and include a copy of the Disbursement Voucher with the documentation to IUAP.
  5. Include the approved Hospitality Request Form in the supporting documentation submitted to IUAP.
  6. Only original, detailed (with date, name of vendor, itemized list of items purchased, cost of each item, etc.) receipts will be accepted.
  7. Tape all small receipts to an 8-1/2" x 11" sheet of paper. It is acceptable (and desirable) to fill a single sheet of paper with as many small receipts that will fit. A rule of thumb for defining a "small receipt" is any receipt that is smaller than 8-1/2" x 5-1/2". If the receipt does not fit on the page, cut the receipt (not destroying any information) and tape to the same sheet of paper.
  8. Under no circumstances is the payee's social security number to appear on any documentation forwarded to IUAP.
  9. Write the disbursement voucher document number on all supporting documentation.
  10. Forward documentation to IUAP via one of the following options:

    Option 1 (upload)

    Scanning the documentation and uploading the document using the FMS AP Documentation Upload Tool for DV and P-Card Paperwork Only

    Use the User Guide - Procurement Card Paperwork Submission Best Practices for P-Card Supporting Paperwork Upload for any questions.


    In choosing Option 1, the unit is responsible for retaining original paperwork for one (1) fiscal year plus the current fiscal year.

    Option 2 (mailing)

    • Make and keep complete, high quality copies of the documentation forwarded to IUAP.
    • Paper clip all receipts/supporting documentation to the printed coversheet. DO not use a stapler.
    • Mail paper documents to:

                    Indiana University Accounts Payable
                    Poplars 016
                    Bloomington

     
  11. Tax-related documentation should be forwarded to IUAP separately in support of creating a DV type vendor in EPIC. If either a PO type vendor or a DV type vendor exists, then no additional W-9 documentation should be collected unless a trade name not yet documented is being documented or a tax ID is being corrected. An EPIC search should be conducted first. Then if the vendor/payee/tax ID does not exist in EPIC "Create a vendor" link will be used to create the vendor. That process generates a cover sheet that instructs the initiator where to send tax documentation. (Other than creating a vendor or documenting a change, tax documentation should not be collected and should not be forwarded.)

Hospitality on a Procurement Card (as approved by Purchasing):

  1. Include the approved Hospitality Request Form in the supporting documentation submitted to IUAP.
  2. Only original, detailed (with date, name of vendor, itemized list of items purchased, cost of each item, etc.) receipts will be accepted.
  3. Organize and number the documentation in the order in which the charge appears on the US Bank statement.
  4. Tape all small receipts to an 8-1/2" x 11" piece of paper. It is acceptable (and desirable) to fill a single sheet of paper with as many small receipts that will fit. A rule of thumb for defining a "small receipt" is any receipt that is smaller than 8-1/2" x 5-1/2". If the receipt does not fit on the page, cut the receipt (not destroying any information) and tape to the same sheet of paper.
  5. Number the P-card statement to correspond with the numbered documentation.
  6. Forward documentation to IUAP via one of the following options:

    Option 1 (upload)

    Scanning the documentation and uploading the document using the FMS AP Documentation Upload Tool for DV and P-Card Paperwork Only

    Use the User Guide - Procurement Card Paperwork Submission Best Practices for P-Card Supporting Paperwork Upload for any questions.

In choosing Option 1, the unit is responsible for retaining original paperwork for seven (7) fiscal years plus the current fiscal year. Departments choosing to submit procurement card supporting paperwork via the upload tool will retain the original papers for audit requirements for the retention period upon which time the paper should be purged in a secure manner.

    Option 2 (mailing)

  • Make and keep complete, high quality copies of the documentation forwarded to IUAP.
  • Paper clip all receipts to the printed statement. Do not use a stapler.
  • Mail paper documents to:

             Indiana University Accounts Payable
             Poplars 016
             Bloomington