Overview

The provision of entertainment and hospitality by University staff to further University objectives is a legitimate professional activity. As a publicly funded body, however, the University must ensure that public sector standards of accountability are maintained.

This Policy, and the Entertainment Expenditure Guideline, aim to provide clear direction to staff in determining the nature and amount of the purchase being considered.

Managers and supervisors must exercise good judgement in deciding on the appropriate expenditure for entertainment and hospitality. The link must be clear between expenditure and the business undertakings of the University.

DEFINITIONS
Catering: the supply of food, drink or provisions by a catering supplier for the purpose of entertainment and/or hospitality.

Contractors:  all legal entities with a contractual relationship with the University, including but not limited to service providers and academic contractors engaged in providing teaching and/or research services.

Controlled Entity: a person, group of persons or body of which the University or the Council has control within the meaning of Section 39 (IA) or 45A (IA) of the Public Finance and Audit Act 1983 (NSW)

Crunch Catering: The catering arm of U@MQ Ltd which is a company that is 100% owned by the University (ie a Controlled Entity).

Entertainment: expenditure for food, drink or recreation and any accommodation or travel associated with these.

Hospitality: the reception and entertainment of guests or strangers with courtesy and kindness.

Staff: continuing, fixed term and casual staff of Macquarie University.

Students: students currently enrolled at Macquarie University.

U@MQ Ltd: A separate legal entity, governed by its own Board of Directors, but also connected to the University legally, financially and operationally.

University Funds: all funds received by the University from any source for any purpose.

Scope

Policy

CATERING
Crunch Catering has exclusive rights to catering on University premises, where University Funds are being utilised.

The use of an external supplier to provide catering on University premises is not permitted under any circumstances.

Where the numbers involved at a working lunch/breakfast do not warrant catering, it is permissible to purchase food and drinks from a Campus Experience (U@MQ Ltd) outlet or tenant.

Where a Special Celebratory Function is held, there is no requirement for it to be catered but if it is catered the caterer must be Crunch Catering where Crunch Catering supplies those services. Where the Special Celebratory Function is not to be catered it is permissible to purchase entertainment supplies from an external grocery/food supplier.

APPROVALS
Expenditure on entertainment and hospitality must be approved in advance by a supervisor with the appropriate financial delegation.
 
Where payment is by Credit Card the most senior staff member present at an external or internal venue must pay the entertainment invoice.

The invoice/credit card reconciliation must be approved by a higher level of authority than the person who paid the invoice.

In the case of lunches/dinners at external venues, the approval authority at the higher level should not have attended the function. 

• for University purposes
• properly documented
• available for scrutiny by both internal and external audit.

Expenditure for the sole purpose of entertaining University staff is not permitted unless otherwise exempted in this Policy. Approval must be sought in advance from a staff member’s supervisor if there is any doubt about whether expenditure is appropriate.

Family and friends
Expenditure on entertainment or hospitality for staff family and friends is only permitted when they have a business connection to the University or it is appropriate that a staff member’s partner attend a University function.

• Staff attendance at official functions
  Expenditure for official functions is permitted when:
  • the number of staff attending an official function is limited to those with a direct involvement in the business being conducted; that is, only those who will be able to advance the University’s business, and
  • the number of staff attending comprise a minor or balanced proportion to external representatives. It should be exceptional that the number of University attendees exceeds the number of external attendees.
    
    
• Working Lunches/Breakfasts
  Expenditure for working lunches and breakfasts is permitted when:
  • the only available time for the meeting occurs during the normal lunch or breakfast period, and
  • the circumstances do not reasonably allow staff to make their normal arrangements for lunch or breakfast, and
  • there are demonstrable cost advantages in holding meetings during the normal lunch or breakfast period, or
  • meetings include external attendees.
    
    
• Lunches/Dinners at Internal Venues
  Expenditure for lunch or dinner is permitted for participants and presenters in all-day meetings, training sessions and seminars.
  Expenditure for lunch or dinner is not permitted for half-day and other short meetings, except where the meeting extends into the normal lunch period.
  

• Lunches/Dinners at External Venues
  Expenditure for lunch or dinner is permitted for official visitors and guests. Prior approval is required from a staff member with appropriate delegation who will not be in attendance.
  

• Special Celebratory Functions
  Expenditure for celebrations is permitted at functions attended by University staff where there are clear benefits in terms of training and/or staff morale such as:
  • reward or recognition of a notable achievement by a Faculty, Office or group of staff
  • a training program provided by one Faculty for other Faculty
  • recognised seasonal holidays, for example, Christmas
  • research expositions for departmental staff or Higher Degree Research students.
  
  The frequency of such functions where University Funds are used is limited to one event per year. The total expenditure from University Funds for these functions is not to exceed $30.00 (including GST) per staff member per year. Once this maximum has been reached, personal funds will need to be used.

• Alcohol
  Stocked alcohol cabinets for small-scale entertainment may be maintained for the purpose of offering hospitality to external visitors and guests of the University.
  
  Alcohol is not to be used for functions exclusively involving University staff and students.
  
  Where alcohol is to be served, a person with a Responsible Service of Alcohol certificate must be present for the duration of the event.
  
  Alcohol purchased from University Funds is not to be taken home.
  
  Prior approval from Property (via the Security Office) must be obtained before alcohol is served.
  

• Tea, coffee, milk, sugar and biscuits
  Stocks of refreshments such as tea, coffee, milk, sugar and biscuits are considered office consumables and are to be purchased using the University’s preferred office supplier. They are to be purchased by a staff member who has the appropriate delegation. Biscuits are to be used for entertaining visitors or for working meetings.

LIMITS ON EXPENDITURE
Entertainment, hospitality and catering expenses must be incurred against Operating Funds unless specifically provided for under the terms and conditions governing expenditure of other funds (for example, research grants).

Although the cost of entertainment, hospitality and catering varies depending upon the venue and nature of the function, staff are required to minimise expenditure.

Where the expenditure relates to official functions involving formal dining, an amount up to the amount in the Australian Tax Office Table 3 of Reasonable Meal Allowance Expense amounts may be used as a guide. A staff member must obtain supervisor approval for amounts in excess of this. For this purpose, the supervisor will usually be the Executive Dean, Head of Office or appropriate delegate as decided by the Executive Dean or Head of Office.

Where the expenditure relates to a Special Celebratory Occasion there is a limit of $30.00 (including GST) per staff member per year.

TIPPING
The University will not meet the cost of tipping for any service provided in Australia. The University will only meet the cost of tipping to a maximum of 10% where the service was received overseas and where tipping is a national custom.

• claims for payment or reimbursement are subject to the normal University requirements for substantiation and must be accompanied by original invoices and/or receipts. A valid Tax Invoice must be provided for all expenses exceeding $50.00
• adequate declarations and documentation must be provided to enable claims to be approved. As a minimum requirement, the following items must be recorded and included in any application for reimbursement of expenditure on hospitality or entertainment:
• explanation of University purpose
• name of all persons attending and external organisations represented
• name of all University staff attending

FRINGE BENEFITS TAX
Fringe Benefits Tax (FBT) is payable on entertainment expenditure by University staff, and is charged back to the Department/Office responsible for the expenditure. The effect of FBT is to double the cost of entertainment and this must be taken into account in any decision to incur entertainment expenditure.

Alcohol and Drugs in the Workplace
Staff Code of Conduct
Credit Card Policy
Entertainment Expenditure Guideline
Financial Delegations of Authority Policy
Purchasing Policy
Travel Policy

Crunch Catering
Responsible Service of Alcohol (NSW)

Form
Non Order Payment Request – Trade Creditor