Hospitality Expenses and Holiday Parties
Under University of Minnesota policies on Hospitality and Entertainment of Non-Employees and Business Expenses, expenses for bona fide University hospitality activities, such as donor relations activities or employee recognition events, may be charged to University funds. This should be done in accordance with the Expense Allowability Grid that is an appendix to the policies. These expenses require additional documentation and substantiation to meet IRS requirements, audit standards, and the test of public scrutiny. If your unit will be holding hospitality events, please ensure that the documentation requirements are clearly met.
Most importantly, the cost of employee holiday parties is never an allowable expense under University policy. No expenses for holiday parties can be charged to, or reimbursed from, any type of University funds, public (such as O&M or sponsored) or private (gifts). Events held solely to celebrate any holiday should be paid for by employees from their own personal funds.
For your reference, the Hospitality and Entertainment of Non-Employees and Business Expenses policies, the Expense Allowability Grid, and the documentation requirements and procedures can be found at the following web sites:
- Hospitality and Entertainment of Non-Employees Policy
- Expense Allowability Grid
- Documentation requirements and procedures
- Business Expenses Policy (for situations involving only University employees)
- Food, Care Packages, Gift Baskets
If you have questions, please do not hesitate to contact your Chief Financial Manager or the University Financial Helpline (612-624-1617 or controller@umn.edu) for assistance.
