CSUSM FAS:

Hospitality Policy
Definition:
In general, California State law does not allow making a “gift of state funds” (California State Constitution, Article 16). Historically, it has been the determination of the State Controller’s Office that, except for a few circumstances, the purchase of food and promotional items constitutes a gift of state funds, and therefore is not allowable. However, hospitality expenses may be paid with university funds to the extent that the purchase and use of these services and items is consistent with the mission and fiduciary responsibilities of the university. This policy applies to activities that promote the university to the public and the provision of hospitality in connection with official university business and specifies that university funds may be used for such purposes.
Scope:
This policy applies to the use of funds set forth in Executive Order 761.
Responsible Division:	Finance and Administrative Services
Approval Date:	2/2/2001
Originally Implemented:	1/31/2001
Implementation Date:
Revised Date:
Policy Status:	Active
Authority:	California Code of Regulations, Title 5, Division 5, California Code of Regulations; Section 41600, 41601; California Education Code Sections 66600, 89030, 89035, 89044; HR96-11 and Executive Order 761
Signature Page:	http://www.csusm.edu/fas/Policies&Proc/HospitalityExpenses.pdf
PDF version of the applicable procedure:	http://lynx.csusm.edu/policies/procedure_online.asp?ID=79

Hospitality Procedure
Related Policy:	Hospitality Expenses
Responsible Division:	Finance and Administrative Services
Approval Date:	2/2/2001
Originally Implemented:	1/31/2001
Implementation Date:
Revised Date:	9/9/2003
Procedure Status:	Active
Signature Page:
Notes:

I. Purpose

In order to facilitate the acquisition of hospitality related items, such as: food, beverages, awards, gifts, etc.,
the following procedure has been developed to provide guidance to university personnel and to assure
service providers of payment.

II. Requirements

     A. The issuance of a University Purchase Order is required in advance for both on-campus and off-campus
         events. The Hospitality Form ( must be attached to the Purchase Requisition and processed under the
         following criteria:

            1. The event must adhere to the California Code of Regulations, Title 5, Division 5, California Code of
                Regulations; Sections 41600, 41601; California Education Code Sections 66600, 89030, 89035,
                89044; HR96-11; Executive Order 761 (http://www.calstate.edu/EO/EO-761.pdf); and the California
                State University San Marcos policy and procedure “Alcoholic Beverage Use on Campus”
                (http://lynx.csusm.edu/policies/policy_online.asp?ID=104) and
                (http://lynx.csusm.edu/policies/procedure_online.asp?ID=88).

            2. By his/her signature on the Hospitality Form, the Divisional Vice President, as the President’s
                designee, certifies the criteria have been met. The Vice President cannot delegate this responsibility
                to any other officer, and the signature must be an original.

            3. Food services for on-campus events must be selected from the CSUSM Foundation approved
                Caterer list
                (http://www.csusm.edu/foundation/policies_procedures/Approved%20Caterers%202%20web.pdf)

     B. Hospitality expenses may be paid from various university fund sources, subject to the rules outlined below
         and defined in Table I (see below). There are two types of funds available for the payment of hospitality
         expenses: General Fund Appropriations and Special Funds.

1. General Fund Appropriations

                General Fund Appropriations may not be used to pay for alcoholic beverages, tobacco products,
                gifts, or awards.

                General Fund Appropriations may not be used to pay for food and beverages for business
                meetings attended only by employees of the same work location. (i.e. CSUSM representatives:
                CSUSM, ASI, or Foundation employees)

2. Special Funds

                Special Funds may be used to pay for alcoholic beverages, tobacco products, gifts, or awards
                to the extent these purchases are not restricted by other applicable laws, regulations,
                or agreements.

                Special Funds may be used to pay for food and beverages for business meetings attended only
                by employees of the same work location.

                Special Funds may be used to pay for food and beverages for business meetings attended only
                by employees of the same work location.

III. Definitions

A. Award – a gift of tangible personal property in recognition of service or achievement directly benefiting
the university.

B. General Fund Appropriations- funds approved by the state legislature to support expenditures of the
university.

C. Gift – something of value given or bestowed upon an individual, group, or entity with the expectation of
benefit accruing to the university.

     D. Hospitality – provision of food, refreshments, promotional materials, gifts, awards, and travel expenses
         of official guests of the university. Includes expenses for activities that promote the university to the
         public, usually with the expectation of benefits accruing directly or indirectly to the university.

E. Official Host- a university employee who hosts a meeting, conference, or event.

     F. Official Guest- a person invited by an official host to attend a university meeting, conference, reception,
         or event. Examples of official guests include employees from another work location, members of the
         community, or media representatives. Employees of the university are not considered official guests.

     G. Promotional Materials – a gift of tangible personal property that is distributed to promote the name or
          image of the university, to provide information, or enhance university productivity. Promotional items
          are of minor value and bear the logo or other icon or information identifying the university such as a pen,
          folder or clothing.

      H. Special Funds- funds authorized for support of activities that are supplemental to the primary mission
          of the university and not paid for by fees and revenues other than general tax revenues. Special funds
          include, among others, Reimbursed Programs, Continuing Education Revenue Funds, Lottery Education
          Funds, Auxiliary Enterprise Funds, Trust Funds, and Special Project Funds.

       I. Work Location- the place where the major portion of an employee’s working time is spent or the place
          to which the employee returns during the working hours upon completion of special assignments. This
          includes all satellite locations of CSUSM.