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Hosting activities funded by the University must be related to University business. Expenditures of a personal nature, unreasonable or excessive expenses, and those not specifically related to the conduct of University business are not allowable. To be considered a business expense by the IRS, meals and hosting expenses must meet the following requirements:

• The expense must be incurred as part of ordinary and necessary University business.
• The expenditure cannot be lavish or extravagant.
• There must be a substantial business discussion during, directly before, or directly after the meal.

Hosting expenses must be charged using appropriate accounting information in Workday (Cost Codes, Worktags, etc.) All ºÚÁÏÉçÇø Cost Codes, for hosting purposes, are identified as either Nondiscretionary or Discretionary based on their fund designation.

Nondiscretionary accounts are generally those which are funded in whole or in part by money received from the State of Ohio. All expenditures from these accounts must comply with the provisions of the and the regulations of the in addition to the IRS and University rules. Use of Nondiscretionary funds for hosting is limited to specific purposes as outlined in the following sections of this document.

Discretionary accounts are generally those which are funded through gifts, private and local grants, and private and local contracts. The use of Discretionary funds for hosting must still comply with IRS and University rules, but may be used at the discretion of the department within the guidelines of the account. Those guidelines are documented by the Accounting Manual Sheets for that account and outlined in the following sections of this document.

Flowers, items of personal nature and celebrations that are not work related (Birthdays, Weddings, Births, etc.) can NOT be purchased from discretionary funds. Flowers for funerals can be purchased from discretionary accounts if done with prudence. The President's and Vice-President's Offices purchase funeral flowers on behalf of the University community for current faculty, staff, ºÚÁÏÉçÇøs, faculty and staff holding emeriti rank, and current or former board members.

*Any type of equipment for personal use such as heaters, microwaves, fans, coffee pots, etc. must be purchased from Discretionary funds.

2.01 Purchases of Alcohol

There may be times when purchasing alcohol during hosting events is appropriate. ºÚÁÏÉçÇø's Alcohol and University Property policy should be reviewed and understood before making any alcohol purchase. The policy details the legal and responsible uses of alcohol for Miami hosted or sponsored events. Please review the remainder of the Hosting Policy in full to ensure proper accounting for any alcohol purchases.

Hosting expenses are authorized for fund raising, ºÚÁÏÉçÇø recruitment activities, conference marketing activities, lecturers, job candidates, workshop attendees, and consultants. Hosting of University guests may be charged to Discretionary or Nondiscretionary funds as appropriate (see section 2.00 above).

The following guidelines apply to the hosting of University guests:

• University employees' spouses or significant others may not be reimbursed unless the guest's spouse or significant other is present.
• Receptions may include members of the University community. However, the number of people hosted for meals should be kept to the minimum number appropriate for the nature of the event.

Hosting expenses for ºÚÁÏÉçÇøs who are volunteering for University-related activities, acknowledgment of academic achievements, ºÚÁÏÉçÇø employment training and development, and achievement recognition are authorized from either Discretionary or Nondiscretionary index codes as appropriate (see section 2.00 above).

Any other ºÚÁÏÉçÇø hosting expenditure, such as welcome picnics, refreshments served in meetings, and ºÚÁÏÉçÇø entertainment must be charged to a Discretionary account. Hosting related to ºÚÁÏÉçÇø employment is addressed in section 5.00.

Student hosting should follow a "test of reasonableness" for the appropriate amount of expense. Costs of ºÚÁÏÉçÇø meals should be comparable to the cost of a similar meal in the dining hall system.

While there are some events where hosting staff is appropriate, specific requirements and limitations will need to be met and honored when doing so.

• Hosting expenses for employee development, training sessions and achievement recognition may be purchased with Discretionary or Non-Discretionary funds.
• Employee meals, employee entertainment, celebrations that are work related (Holidays, ºÚÁÏÉçÇø Back picnics, end of year parties, retirement parties, retreats, etc.) and alcoholic beverages may only be charged to Discretionary funds.
• Hosting of University employees for functions such as routine meetings, social functions, etc. is discouraged and should not be repetitive. (Hosting is considered repetitive when it takes place on at least a monthly (or more frequent) basis. These expenses must be charged to Discretionary funds. (See section 2.00 for further information.)
• When family members (spouses, partners, children, etc.) of Staff or Faculty are invited to be included in an approved hosting event, the cost of their participation may require additional review as it could potentially be a taxable expense to the employee.
• The Hosting Cost Guidelines defined in Section 6.00 are required to be honored for Staff/Faculty hosting and include the cost of any meals/activities included in the event.

Gift cards may not be purchased for specifically identified ºÚÁÏÉçÇø employees or ºÚÁÏÉçÇøs. See the Gift Card policy for additional information regarding Gift Cards.

Business meals must have a clearly substantiated University business purpose and must be incurred while the employee is performing services as an employee of the University.

Hosting expenses for business meals and activities must meet the "test of reasonableness:"

• The expenses are necessary and ordinary to University business
• The expenses would not be considered lavish or extravagant
• There is substantial business discussion during or directly before/after the meal).

Business meals subject to reimbursement under these hosting guidelines will also typically involve one or more non-Miami employees. An exception is granted when exigent circumstances apply and the meal is provided during emergency situations or when employees are not able to leave and return in a reasonable amount of time during an all-day training class where it is critical that the attendees be present for the entire session.

The amounts below are derived from the maximum allowable reimbursable meal amounts from the U.S. General Services Administration (GSA) per diem tables (reviewed annually). GSA per diem is recognized by the IRS as permissible reimbursement without creating a taxable situation to the employee being reimbursed or being in violation of an entity's accountable plan.

Meals (Per Person)- Effective 10/7/2016

• Breakfast: $20
• Lunch: $40
• Dinner: $70

Gratuity- Effective 4/1/2017

• Limited to 20%

The amounts above are limits for the total of the meal expenditure including tips and/or taxes. Alcohol cannot be charged to a Non-Discretionary account. Alcohol may be charged to a Discretionary account, but must be included in the total allocation for the "test of reasonableness." Gratuities will be limited to 20%. Exceptions to the hosting limits may be requested through the Divisional Vice President in writing.

When hosting Staff or Faculty for approved hosting events that extend beyond providing a meal, the hosting limit (per person) will include the cost of the meal and any additional activities/entertainment being held/paid for by the University, regardless of funding source.

The following documentation requirements are based on the IRS guidelines (each is required regardless of the payment method used):

• Date, place, and description, including the business purpose of the expense
• Names and business relationships of persons in attendance (For large functions provide the name of the group and number of attendees or attach a Hosting Form)
• Original receipts for reimbursements (itemized receipt with proof of payment such as credit card statement, canceled check, or credit card slip)
• Original invoices for direct payment to vendors
• Completed Hosting Form (The form must be completed and signed for all transactions processed in Workday. This includes invoice processing and expense reports. The information can be added to the expense report, but if information is not complete, the Hosting Form must be attached).

Hosting expenditures may be paid with one of the following methods:

• P-Card - (Staff and Faculty)
• Intra-University hosting charge slip - (Staff and Faculty)
• Submitted for payment to an individual in Workday - (For reimbursements to Undergraduate Students who have approved hosting events.)
• Submitted for Reimbursement or P-Card Reconciliation on an Expense Report in Workday - (For Staff, Faculty, and Graduate Assistants/Students who have approved hosting events. Staff and Faculty should utilize a P-Card or Departmental P-Card for hosting when available. Reimbursements to Staff and Faculty for hosting purposes should not be repetitive due to the availability of P-Card use.)

For large events where attendance is not trackable or that are considered to be 'open house,' the cardholder or reconciler must attach an event flyer, invitation, email/web announcement, etc. to substantiate the inability to provide the necessary hosting information.

The University encourages the use of the Shriver Center, Marcum Conference Center, and the Residence and Dining Halls for hosting meals. Charges for meals at these facilities may be paid by payroll deductions or intra-University charges. Reimbursement for expenses paid by payroll deduction may be requested by submitting a University requisition form. Intra-Unversity charges may be made by the responsible departmental individual by completing an intra-University hosting charge slip. They should not be charged to a department P-Card.

Virtual hosting, such as sharing meals over virtual meetings (Zoom, Google Meet, phone meetings, etc.) where all parties involved are not together, in person, is prohibited and non-reimbursable by ºÚÁÏÉçÇø (except for events listed below). Persons who use a University PCard to pay for virtual hosting meetings or events will be required to reimburse the university for the meals.

Exceptions will be made for virtual events held for the following reasons:

• Fundraising (meals with donors)
• Recruitment (meals for new ºÚÁÏÉçÇø recruitment or job candidate interviews)