Hospitality FAQs and Examples

Hospitality FAQs

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1. Our department needs to hold a meeting which is administrative in nature and the meal is a necessary and integral part of the business meeting. Is that allowable?

This activity falls under “Meals and Light Refreshments (non-alcoholic) for business meetings and events attended ONLY by employees of the same work location where the participants are required to work through the meal period (campus)” and is permitted if the meal is integral to the business function, infrequent and modest. Meals or light refreshments (limited to no more than 12 times per year, per group) provided in the course of an event may not exceed the maximum per person rate for breakfast ($40), lunch ($60), dinner ($90) and light refreshments ($40). These rates are inclusive of food, beverages, labor, sales tax, delivery fees, other service fees and gratuity (20% maximum).
2. Does “light refreshment” include hors d'oeuvres?

Yes.
3. Which category would I use for a faculty/staff social event with a business purpose, or “Faculty/staff picnics & holiday gatherings with business purpose?”

Recognition Events including employee morale functions and employee team-building events (must serve a bona fide business purpose).
4. We have a recruitment interview, where the panel will be required to stay in the room all day. Is providing lunch allowable?

Yes, this activity falls under “Food and beverage for business meetings and events attended by official guests and by employees of the same work location where the participants are required to work through the meal period (campus)” and is permitted if the meal is integral to the business function, infrequent and modest. Meals or light refreshments (limited to no more than twelve times per year, per group) provided during an event may not exceed the maximum per person rate for breakfast ($40), lunch ($60), dinner ($90) and light refreshments ($40). These rates are inclusive of food, beverages, labor, sales tax, delivery fees, other service fees and gratuity (20% maximum).
5. Can I send gift or flowers?

To employees, no. For non-employees, and for state funds, typically, no. Gifts or flowers are not permissible when there is solely a personal benefit. There may be justification if the intended business purpose complies with campus, CSU, IRS, and Government Code restrictions. See Table 1. General Expense Matrix.
6. I would like to meet with my colleague over lunch to discuss a business topic, can I be reimbursed?

Reimbursement for meals is not permissible when there is solely a personal benefit. In general, business meetings with individual colleagues are not permitted when the meeting can take place during business hours.
7. Can I provide lunch for an all-day meeting?

Meals and light refreshments for business meetings and events attended only by employees of the same work location are permissible if the participants are required to work through the meal period. Meals and light refreshments for business meetings attended by official guests can be permissible.
8. Can I use state funds to have a retirement party?

Parties are not allowable with state funds. An employee can be recognized and issued an award for their service – minimum of 5 years. For Auxiliary funds, see Table 1. General Expense Matrix.
9. For employee morale purposes, I would like to use state funds to provide a departmental welcome breakfast each time we bring on a new employee. Is this permitted?

Public expenditures that are driven solely by personal motives are not permissible with state funds.
10. I would like to purchase coffee and water for my department to consume. Is that allowable with state funds?

Refreshments solely for personal use are not permitted with state funds. This may be allowable for areas who host suppliers, donors, etc. For Auxiliary funds, see Table 1. General Expense Matrix.
11. What examples would NOT be permissible with state funds?

a. Gift cards, flowers, non-cash gifts as a thank you to consultants, guest speakers, etc.
b. Gifts for employee birthdays, weddings, baby showers, etc.
c. Farewell gatherings and retirement parties.
d. Bereavement or sympathy gifts.

For Auxiliary funds, see Table 1. General Expense Matrix.
12. Events and Conference Services is managing my event. Who completes the hospitality forms?

The hospitality form is the responsibility of each department. Each department is responsible for providing what budget accounts they will be using for food and are accountable for all applicable guidelines pertaining to their budget or special project.
13. We want to donate to a local non-profit organization and wonder if this is an allowable expense.

This is not an allowable Hospitality expense.

Excerpt from CSU Policy. “The California gift of public funds doctrine set forth in the California Constitution, article XVI §6, prohibits the giving or lending of public [state] funds to any person or entity, public or private, unless there is a public purpose.”
14. My event is already approved, but my headcount has increased. My actual costs will be more than initially estimated. Do I have to submit another Hospitality form?

Only if the increased headcount causes your cost per person for a meal to increase. If you are adding additional services that were not included on the original Hospitality form, then a new Hospitality form is in order. Also, if additional costs exceed more than 10% of the original Hospitality cost a new form should be done.
15. Should my blanket Hospitality form include totals?

Yes, even though you may not have finalized costs you have estimated costs and a budget. Every effort should be made to show how the budget associated with your Blanket Hospitality will be utilized.
16. Are we allowed to purchase graduation stoles/sashes, cords, or medallions for students, and are they considered Hospitality?

If the item(s) is given only to select students as an award for an exemplary accomplishment with specific eligibility criteria (honors, participation/completion of specialized programming), it is an allowable Hospitality, and a Hospitality form is needed. (Simply graduating is not considered an exemplary accomplishment in this case.)

If the item(s) is given to all students (no particular accomplishment - simply graduating does not count) and the students paid a fee that includes a cord or sash, it is allowable and considered a program expense/fee. This is not a Hospitality expense; therefore, a Hospitality form is not needed.

If the item(s) is given to all students (no particular accomplishment - simply graduating does not count) and the students DID NOT pay a fee that includes a cord or sash, it is considered a gift and gifts using state funds are not permissible.
17. I understood the first right of refusal for the bookstore applies to items with a ��Ů logo. Is that still the only condition?

It applies not only to logo items but anything with ��Ů lettering and anything that implies association with ��Ů.
18. How do I calculate the cost per person for the meal I am providing at my event?

The per person cost for a meal should include food, beverage, service charges, tax, and gratuity divided by the number of anticipated participants.
19. I have a workshop/training that will take place over several non-consecutive days. Is this considered a blanket hospitality event or a single hospitality event?
This is considered a single hospitality event since it is a continuation of your original event and not a completely new event.
20. We are doing a faculty search to fill a vacancy within our department. The interviews for this position will take place over several days with several candidates. Do I need to do a blanket hospitality for this event?
Faculty/staff searches that take place over multiple days with multiple candidates are considered one event as long as the search is to fill a single vacancy.
21. What is the difference between a donation and a sponsorship?
a. Donations are considered a gift of public funds, with nothing received in return, thus not allowable using state funds.

b. Sponsorship always has benefits to the campus – like advertising in a program, during a presentation, or a logo on banners, etc. Sponsorship is allowable using State funds.
- A sponsorship is a contribution to the cost of an event in return for advertising or promoting the University. This includes the cost of a vendor table at external events.
- All sponsorship payments must include as backup a document from the vendor or from their website showing the requested sponsorship level and the benefits to be received.
- Additionally, a sponsorship payment that includes attendance at a community relations activity or fundraising event is considered Hospitality and must include documentation of the individual names, affiliations, and direct or indirect benefit to the University to be derived from the expense on the Hospitality form.Donations are considered a gift of public funds, with nothing received in return, thus not allowable using state funds.
22. Are campus departments able to pay for Extended Learning classes (professional development) for students using Stateside operational funds?

This would be considered a scholarship, and Stateside operational funds may not be used for scholarships. Financial Aid would need to be consulted to see if this is something that could be done using either Corporation or Foundation funding.

Hospitality Examples

Following are examples of situations that meet the guideline requirements:

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1. Donor Cultivation and Appreciation
When the University hosts an event for the purpose of generating the goodwill of alumni, donors and prospective donors, the cost of meals or light refreshments may be reimbursed.
2. Meetings of an Administrative Nature
When meetings of an administrative nature that are directly concerned with the welfare of the University are held, the cost of meals or light refreshments may be reimbursed. These may include CSU systemwide meetings of functional offices, Board of Director’s meetings, meetings of the Academic Senate, extended formal training sessions, conferences, and/or meetings of appointed workgroups and committees. Strategic Planning events must have an agenda, purpose, and deliverables.
1. No reimbursement will be allowed when two or more employees from the same work location choose to go to lunch together to continue their business as an incidental part of the meal, or when the meeting could have been scheduled during normal working
2. On rare occasions, meals may be provided to certain employees during work hours as a non-taxable For example, a meal may be provided when an employee is required to stay on premises during their entire work shift either because the person is required to work during that period or is on-call.
3. State-Supported Events

The cost of light refreshments may be reimbursed for state-supported events only when the meal is “essential” to the business objective, as defined above (section 2- b). Examples may include receptions held in connection with conferences, the launch of a campus initiative, systemwide training and fundraising
4. Employee Recognition

Includes length of service awards presentations - When an individual has achieved a superior accomplishment (a team implemented a new program, a director led an initiative to great success, or 5-, 10-, 15-year Service Awards), the cost of light refreshments may be
5. Employee Morale

University may pay for or reimburse costs associated with official employee morale-building and appreciation activities that serve a business Under no circumstances may University funds be used for occasions such as employee birthdays, weddings, anniversaries, holiday gifts, or other occasions of a personal nature. Examples include the President’s Picnic and Division Functions.
6. Awards
Examples of established award programs are ��Ů Employee of the Month, Brakebill, Ernest & Leslie Zomalt Service Award, Kerri Mowen, etc.

Examples of Unallowable Awards and Gifts
- Gift cards/Cash equivalents for
- Recreation
- Season tickets to sporting or cultural
- Gifts provided to employees in connection with birthdays, weddings, anniversaries, holidays, farewells, graduations, and other occasions of a personal
To pay for food and beverages or entertainment services that do not serve a bona fide business purpose.

Examples of expenditures that are not considered Hospitality and do not require a Hospitality Form:
- Integral Grant Expenditures - Expenditures for food and related items integral to a grant, e.g., a training grant that includes lunch for students or a "food bank" type of operation, are not hospitality expenditures.
- Supplies - Expenditures for items such as water, paper products, etc. for outside visitors are exempt from this policy. These items are considered supply-related expenditures.
- Research Incentives for Sponsored Projects
- For gift cards for ��Ů Corporation Research Participation Incentives, a hospitality form is not required, please refer to the ��Ů Corporation Research Incentive Payments Policy and the ��Ů Corporation Gift Card Purchasing Procedures for more information.

Need Assistance?

For assistance, please email hospitality@csusm.edu

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Hospitality FAQs and Examples

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