The University will pay for ordinary and necessary expenses to entertain business guests in accordance with IRS regulations.
For entertainment expenses to be reimbursable and not subject to
taxes the entertainment must be ordinary and necessary and one of the
following tests must be met:
Entertainment includes any activity generally considered to provide
entertainment, amusement, or recreation. Examples include entertaining
guests at social, athletic and sporting clubs; at theaters; or at
Business guests include, but are not limited to:
To be directly related, all conditions below must be met and you must show that:
To meet the associated test, both conditions below must be met and you must show that the entertainment is:
Generally you must show that you had a clear business purpose for
having the expense. For example, to solicit gifts or to encourage the
continuation of an existing business relationship.
In general, a business discussion will not be considered substantial
unless you can show that you actively engaged in the discussion,
meeting, negotiation, or other business transaction to get income or
some other specific business benefit.
Entertainment includes the cost of a meal (including beverages, taxes, and tips) you provide to a business guest.
Board members or any member of faculty or staff can incur
entertainment expenses on behalf of the University provided the expenses
are related to official University business, are substantiated, are not
disallowed by University or regulatory policy, and are approved by the
cognizant University official or employees supervisor.
Note: When several University personnel are present at an event, it
is customary for the most senior individual to "pick up the tab."
Entertainment expenses are reimbursed on an Authorization for Payment form or paid on a procard.
Original receipts or bills must be attached to the Authorization for
Payment form or procard statement and the following must be indicated:
Note: If the group entertained is large, attach separate listing to Authorization for Payment form or procard statement.
The following additional information is available on the Internet at https://www.pulse.pacific.edu/about-pacific/administration-offices/business-and-finance-division/about/controllers-office/policies-and-procedures/business-policies-and-procedures-index-page/bpandp-procurement.html
Expenditure Authorization Policy, Procurement Policy, Travel Policy.
Contact Accounts Payable for additional information.
Expenditure Authorization Policy
Authorization for Payment Form