Objective

This procedure states the Institute for Public Service’s thresholds for prior approval under the System Fiscal Policy FI0715—Entertainment.

Scope

This procedure applies to all Institute for Public Service Employees.

Procedure

Group-Arranged Events are hospitality events that IPS hosts primarily for its employees when such take place for a University business purpose. Generally, one meal, such as a box lunch or a similar inexpensive meal, and refreshments, may be provided subject to the approvals and thresholds below, for pre-planned group working meetings of IPS employees. These are typically more efficient than breaking and reconvening. A meeting agenda and list of participants must be attached to the invoice in the ERP system.

1. Per-event threshold:
   1. Agency Directors may approve expenses for Group-Arranged Events up to $9,999.99 per function/event.
   2. Group-Arranged Events valued at $10,000 or more fall under FI0405—Procurement and FI0420—Contracts.
   3. Departments must comply with FI0405—Procurement and FI0420—Contracts at all times, even for events under $10,000.
2. Per-person threshold:
   1. Regardless of the per-event cost, Agency Directors may approve for Group-Arranged Events that will cost up to $99.99 per person.
   2. If a Group-Arranged Event will cost $100.00 or more per person, the department must obtain prior written approval from the IPS Vice President or Chief Business Officer before scheduling the Group-Arranged Event.
3. Nature of thresholds:
   1. The approval thresholds are based on the total anticipated cost of the event and not the cost of each expenditure, if the event will incur multiple expenditures.
4. Alcoholic Beverages:
   1. Alcoholic beverages may be purchased only on gift accounts and where the gift fund agreement, if applicable, does not prohibit the purchase of alcohol.
   2. No federal, state, or local appropriations, tuition, or student fees may be used to pay for alcoholic beverages (TCA § 49-7-3003).
   3. No sponsored project funds may be used to purchase alcoholic beverages, unless specifically allowed by the award document; or explicitly approved in writing by the sponsor.
5. Retirement Receptions:
   1. The maximum amount spent on a Retirement reception may not exceed $1,000.00, whether from one or several University accounts. For clarity, the maximum possible amount that a department can spend is $1,000 per retiree, regardless of the funding source(s). Please refer to System wide Fiscal Policy FI0715 for further information.
   2. The University may not make a charitable donation on behalf of the retiree. State law does not allow the University to make financial donations to non-profits.
6. Unallowable transactions on University funds, including restricted gift funds include but are not restricted to:
   1. Taking your team out for lunch or dinner even if there is a business purpose with the exception of cost for lunch for the IPS HR Manager and new employees on their first day of work at IPS;
   2. More than one meal with the same one-day business related group-arranged event, for example both breakfast and lunch, or both lunch and dinner. This does not apply to meals for those that are on business travel status;
   3. Ordering in a meal even if it is inexpensive, when there is no business purpose;
   4. Christmas parties;
   5. Birthday parties;
   6. Charging partial cost of the events to different accounts to keep the total amount or amount per person under the respective thresholds of $10,000 per event and $100 per person.

These restrictions do not apply to, and IPS employees may pool their personal money together to contribute toward one of these events or a gift to another employee.

Penalties/Disciplinary Action for Non-Compliance

Violations of this procedure might result in adverse human resources consequences. –

Responsible Official & Additional Contacts

Subject Matter	Office Name	Telephone Number	-Email/Web Address
Policy Clarification and Interpretation	Rumira Xhaferaj	865-974-0968	rumira.xhaferaj@tennessee.edu