Food and Miscellaneous Expenses Guideline

Allowable Expenses

1. Direct or Indirect Funds
   
   Official Meetings - Modest food and nonalcoholic beverages may be purchased with direct or indirect funds during meetings held to conduct official UCAR/NCAR/UCP business. A meeting agenda explaining the need for food and the number (or estimated number) and the affiliation of each attendee, is required documentation to be included with all requests.

   Examples of meetings for which food and nonalcoholic beverages may be reimbursed include advisory groups, retreats, working groups, training programs, seminars, technical conferences, steering committee meetings and meals for prospective employees during interviews that span a mealtime.
   
   Working Meals - Modest meals and nonalcoholic beverages, including a reasonable tip may be reimbursed with direct or indirect funds for meetings held to conduct official UCAR/NCAR/UCP business.  To be reimbursable, the meeting should take place over an extended period of time, and the agenda should include the meals.  Such meals must be a necessary and integral part of the business meeting, and not a matter of personal convenience. A meeting agenda explaining the need for food and the number and affiliation of each attendee is required documentation to be included with all requests.

2. Indirect Funds Only
   
   Governance Activities - Modest food and nonalcoholic beverages for all participants in meetings related to UCAR governance. A meeting agenda explaining the need for food and the number (or estimated number) and the affiliation of each attendee, is required documentation to be included with all requests.

   Governance activities include meetings sponsored by the UCAR President’s Office or major organizational entities in UCAR (e.g. NCAR, UCP, …).  These activities must be necessary for the conduct of UCAR management or operational responsibilities and in which non-UCAR employees perform a central role.  Examples include Board of Trustees, Members Meetings, and University Relations Committee.
   
   Employee Morale - Modest food and nonalcoholic beverages for employee morale activities are limited to the following:
   
        a. Corporate sponsored years of service award banquet
        b. Activities sponsored by the Employee Activities Committee (EAC)
   

A meeting agenda  explaining the need for food and the number (or estimated number) and the affiliation of each attendee, is required documentation to be included with all requests.

Common Area Amenities - Modestly priced equipment such as coffee pots and microwaves, reasonable kitchen cleaning supplies, and items such as plants, pictures, and lamps to enhance common areas may be purchased with indirect funds.  Examples of common areas include reception areas, conference rooms, kitchens, and hallways.

3. Discretionary Funds
   
   Alcoholic Beverages - All alcoholic beverages including bartender and bar setup fees must be charged to discretionary funds.
   
   Business Function Entertainment - Entertainment expenses during official business functions must be charged to discretionary funds.  For example, live music or entertainment performances during an official conference reception should be charged to discretionary funds.
   
   Cards and Flowers - Any cards and/or flowers given to employees or their families for illness, death, or birthdays must be charged to discretionary funds.
   
   Holiday Parties (other than those sponsored by EAC) and Other Employee Morale Activities - Employee holiday parties or any other morale activities not included in employee morale in Section 2 must be charged to discretionary funds.
   
   Receptions for Employee Retirement or Reduction in Staff - Receptions for employees leaving in the case of retirement or reduction in staff must be charged to discretionary funds.

Unallowable Expenses (regardless of fund source)

• Personal Gain - Use of any UCAR funds that is, for personal gain or gives the appearance of such is prohibited.  Directors and Managers should apply a reasonableness test and request specific authorization from the VP for Finance and Administration when doubt exists as to the appropriate use of funds.

• Work Sites Refreshments - All other types of food, refreshments, condiments, paper ware, and utensils consumed or used by employees, not previously mentioned in this procedure, during the course of the workday, are not reimbursable expenses.

• Personal Expenses - Personal expenses such as tissues, pain relievers, breath mints, or other products for the personal use and convenience of the employee are not allowable and therefore not reimbursable.

• Entertainment Activities - Amusements, diversions, social activities, and related costs that are solely for the purpose of entertainment for employees or visitors and serve no business purpose are not allowable.

• Meals During Local Travel - Meals purchased during local travel as defined in UCAR Travel Procedures are not reimbursable.  For example, local conferences where meals are not part of the registration fee and purchased separately are not reimbursable.

• Gift Certificates - Gift certificates, gift cards, or gift credit cards may not be given to employees as gifts, rewards, or prizes.  Per IRS Regulation 1.132-6(c), cash, gift certificates, charge or credit cards are considered an employee fringe benefit and therefore taxable as income to the employee.  See Employee Recognition Awards Procedures for more information regarding Local Appreciation Awards.

• Fines, Interest, and Penalties - Any fines, interests and penalties incurred by UCAR employees are not allowable reimbursements.  For example, traffic tickets incurred by employees in route to official conferences or between UCAR sites are not reimbursable.

Responsibilities and Exceptions

• The UCAR President is responsible for the allocation of discretionary funds and determines discretionary funds allowances for all purposes, including the Scientific and Technical Opportunity/Risk Mitigation (STORM) funds.  For information on STORM fund procedures, see the UCAR Treasury Operations Web site.

• The Lab, Division and Program Directors are responsible for determining that expenses are properly charged to direct, indirect or discretionary funds.  Directors and Managers should apply a reasonableness test and request specific authorization from the VP for Finance and Administration when doubt exists as to the appropriate use of funds.

• The VP for Finance and Administration is responsible for the interpretation and any exceptions to this procedure.
  

Questions?

Please contact the Shelley Richards-Craig, ext. 8857.