Hospitality FAQs and Examples

Hospitality FAQs

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1. Our department needs to hold an administrative meeting and provide a meal. Is that allowable?
Answer: Yes, but only when the meal is integral to the business function and participants are required to work through the meal period. The expense must be
- Reasonable and infrequent
- Clearly tied to a University business purpose
- Within CSU per-person limits
The event must be:
- Pre-approved in Concur (Hospitality Request)
- Supported by an agenda and attendee list
Meals for routine or convenience purposes are not allowable.
2. Does “light refreshment” include hors d'oeuvres?
Answer: Yes. Light refreshments may include items such as beverages, snacks, and hors d’oeuvres, provided they are:
- Modest in nature
- Appropriate for the event
- Within SU cost guidelines
3. Which category should I use for faculty/staff social events with a business purpose?
Answer: These fall under Employee Recognition, Morale, or Team building/Official Business Meeting, and must:
- Serve a bona fide business purpose
- Be infrequent and reasonable
- Not be primarily social in nature
The business purpose must be clearly documented in Concur.
4. Can meals be provided during a recruitment interviews?
Answer: Yes, when they are an integral part of the recruitment process and participants are required to remain on-site.

Requirements:
- Must meet reasonableness and cost limits
- Must be pre-approved in Concur
- Must include attendee list and business purpose
5. Can I send gift or flowers?
Answer: Generally:
- Not allowable for employees (personal benefit)
- Not allowable with state funds or auxiliary funds for non-employees when solely personal
6. Can I be reimbursed for a one-on-one business meal with a colleague?
Answer: Generally no. These are not allowable if:
- The meeting could take place during normal business hours
- The expense provides primarily personal benefit
Exceptions are rare and must demonstrate:
- A compelling business necessity
- Proper pre-approval and documentation
7. Can I provide lunch for an all-day meeting?
Answer: Yes, if:
- Participants are required to work through the meal period
- The meal is integral to the event
- The expense is reasonable and within CSU limits
Must be pre-approved and documented in Concur.
8. Can state funds be used for a retirement party?
Answer: No, social or celebratory events are not allowable with state funds.

However, service recognition awards (minimum 5 years) may be allowable if:
- Part of an established award program
- Properly documented and approved
9. Can state funds be used for employee welcome events?
Answer: Generally, no, if the purpose is primarily social or personal.

Allowable only when:
- There is a clear business purpose (e.g., formal onboarding session)
- Costs are reasonable and documented
10. Can I purchase coffee or water for my department?

Answer: Please refer to Appendix C of the Hospitality Guidelines. A hospitality form is not required for water purchases that meet the criteria outlined in Appendix C.

Coffee purchases are only allowable when they are tied to a specific, documented hospitality event – not for routine department use and a hospitality form is required.
11. What expenses are NOT permissible with state funds?
Answer: Examples include:
- Gift cards or gifts used as compensation
- Personal celebrations (birthdays, weddings, etc.)
- Farewell or retirement parties
- Items with no clear business purpose
All expenditures must support official University business.
12. Who completes the Hospitality Request if Events & Conference Services is managing my event?
Answer: The department hosting the event is responsible for:
- Completing the Hospitality Request in Concur
- Providing funding information
Ensuring compliance with all guidelines.
13. Can we make a donation to a non-profit using hospitality funds.
Answer: No. Donations are not allowable because they provide no direct benefit to the University.

Sponsorships may be allowable if:
- There is a documented benefit (e.g., advertising, visibility)
- Documentation is attached in Concur
14. My event was approved, but costs increased. What should I do?
Answer: A revised Concur Hospitality Request is required if:
- Per-person costs increases
- Event scope changes
- Total cost increases materially (e.g., >10%)
15. Should blanket hospitality requests include totals?
Answer: Yes. Blanket requests must include:
- Estimated total costs
- Business purpose
- Description of events
Final expense reports must include actual costs and documentation.
16. Are graduation stoles, cords, or medallions allowable?
Answer:
- Allowable as awards if based on defined achievement criteria
- Program expense if included in a student fee
Not allowable if provided broadly with no defined criteria using state funds
17. How do I calculate the cost per person?
Answer:
- Total cost (including food, beverages, tax, service, gratuity) divided by the number of attendees.
- This must be documented in Concur and comply with CSU limits.
18. Is a multi-day workshop considered one event or multiple events?

Answer: If it is a continuation of the same program or objective, it is considered one event.
19. Are multi-day recruitment events considered blanket hospitality?

Answer: No. Recruitment for a single position is considered one event, even across multiple days.
20. What is the difference between a donation and a sponsorship?
Answer:
- Donation: Not allowable (no direct benefit to University)
- Sponsorship: Allowable if:
  - There is a measurable benefit (e.g., advertising)
  - Documentation is provided in Concur
  - Attendees and purpose are documented if hospitality is included
21. Can departments pay for student professional development courses using state funds?
Answer: No. This is considered a scholarship or financial aid, which:
- Cannot be funded with state operating funds
- Must be coordinated with Financial Aid or auxiliary funding sources

Hospitality Examples

The following are examples of situations that may meet CSU and CSUSM hospitality requirements. All examples must:

Serve a clear University business purpose
Be appropriate, reasonable, and cost-effective
Be pre-approved in Concur (Hospitality Request), when required
Include supporting documentation (agenda, attendees, receipts)
Follow Delegation of Authority (DOA) and segregation of duties requirements

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1. Donor Cultivation and Appreciation
When the University hosts events intended to build or maintain relationships with alumni, donors, or prospective donors, the cost of meals or light refreshments may be allowable.

Requirements:
- Must demonstrate a direct benefit to the University (e.g., fundraising, engagement)
- Must include attendee affiliation and business purpose in Concur
- Must be reasonable in cost relative to expected benefit
2. Meetings of an Administrative Nature
Meals or light refreshments may be allowable for meetings that are directly concerned with the official business and operations of the University, such as:
- CSU systemwide meetings
- Academic Senate meetings
- Board or advisory meetings
- Formal training sessions or conferences
- Strategic planning sessions
- Appointed committees or workgroups
Requirements:
- Must have a formal agenda, purpose, and expected outcomes or deliverables
- Must be integral to the meeting
- Must be infrequent and reasonable
- Must be documented and pre-approved in Concur
Not Allowable
- Meals where employees choose to meet over lunch for convenience
- Meetings that could reasonably occur during normal working hours without food
Limited Exception

Meals may be provided during work hours only when:
- Employees are required to remain on-site or on-call
- The meal is necessary for operational reasons
- The benefit meets IRS de minimis standards
3. State-Supported Events
Light refreshments may be allowable for state-supported events only when essential to achieving the business purpose.

Examples include:
- Conferences or formal training sessions
- Launch of a University initiative
- Official campus events or receptions
- Fundraising-related activities
Requirements:
- Must clearly demonstrate that food is essential (not incidental) to the event
- Must be reasonable and within CSU cost guidelines
- Must be pre-approved and documented in Concur
4. Employee Recognition
Hospitality expenses related to employee recognition programs may be allowable when tied to documented achievement.

Examples include:
- Length of service awards (e.g., 5, 10, 15 years)
- Formal recognition of exceptional contributions
- Approved campus award programs
Requirements:
- Must be part of an established and documented award program
- Must include defined eligibility and selection criteria
- Must comply with tax reporting requirements (Payroll)
- Must be reasonable and infrequent
- Must be documented and approved in Concur
5. Employee Morale & Team-Building Events.
University funds may be used for employee morale-building or team-building activities when there is a clear business purpose.

Examples include:
- Division-wide events (e.g., President’s Picnic)
- Structured team-building activities
- Organized employee appreciation events
Requirements:
- Must serve a bona fide business purpose (e.g., improving organizational effectiveness, engagement, or retention)
- Must be infrequent and modest in cost
- Must not be primarily social or personal
Not Allowable
- Employee birthdays, weddings, anniversaries, or personal celebrations
- Holiday gifts or purely social gatherings without business purpose
Concur Alignment

Must be categorized under:
- Employee Morale/Appreciation, or
- Employee Recognition, or
- Team Building/ Business Meeting (if structured with agenda)
Must include:
- Business purpose explanation aligned to category
- Attendee list or employee group
- Agenda or description of activity
6. Awards
Examples of established award programs are CSUSM 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 CSUSM Corporation Research Participation Incentives, a hospitality form is not required, please refer to the CSUSM Corporation Research Incentive Payments Policy and the CSUSM Corporation Gift Card Purchasing Procedures for more information.

Need Assistance?

For assistance, please email hospitality@csusm.edu