Official Functions and Expenses

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Policy Number:
UW-3075
Old Policy Number:
340
Responsible Office:
Accounting Services, Division of Business Services

University Policy

Rationale/​Purpose:

Official functions can actively promote the university’s mission, support community value, and recognize and reward exceptional performance and service. However, the university must govern the use of the specific funds used to pay for official functions and ensure the appropriateness and reasonableness of all official functions and expenses.

Definitions:
Approving authority
The chancellor, vice chancellor, dean, division chief financial officer (CFO), or delegated division business office executive.
Official function and expense
A reasonable and moderate expenditure directly associated with a university official function that may have a social component but substantially advances or contributes to the university’s mission.
Purely social function
A function that does not have a university business connection or does not substantially add or contribute to the university’s mission.
Shared Financial System (SFS)
The PeopleSoft enterprise resource system.
Student group or organization
A student group or organization officially recognized by the university. See the list of official student organizations.
Wisconsin Foundation and Alumni Association (WFAA)
An entity that raises, invests, and distributes funds for the benefit of UW–Madison.
Scope:

Applies to employees of all UW–Madison schools, colleges, and auxiliary divisions including, but not limited to deans, directors, financial officers, and other campus leaders.

Policy:

An approving authority may make reasonable and moderate expenditures directly associated with a university official function that may have a social component but substantially advances or contributes to the university’s mission. An approving authority, in advance of expenditures being made, must formally authorize in writing expenditures related to an official function. The approving authority’s advance authorization can only be provided by completing an Official Functions and Expenses Pre-Approval Form to be attached to any request for payment or reimbursement. The source of funds for expenses related to this official function or expense is a gift, program revenue, or trust fund such as 161, 233, 136, and 131 funds and not general-purpose revenue (GPR) or sponsored funds (grants).

Alcoholic beverage expenses are allowable as part of an approved Official Function but must be charged to Wisconsin Foundation and Alumni Association funding. Alcoholic beverage expenses pursuant to this policy will not be paid or reimbursed by the Wisconsin Foundation and Alumni Association without a properly executed Official Functions and Expenses Pre-Approval Form.

It is incumbent on the approving authority to know and understand the nature and full extent of any restrictions or requirements associated with the expenditure and the related allowed uses of the proposed funds, including consideration of donor intent, university purchasing policies, and Wisconsin Foundation Alumni Association purchasing policies. The approving authority must document the justification for authorization. The approving authority must be prepared to defend the approval of a university official function or expense should there be an open record or audit-related inquiry.

Examples of functions and expenses that may be considered appropriate are (not a comprehensive list):

  • Functions for parents of preregistering students.
  • Inauguration ceremony for a new chancellor.
  • Functions for graduating classes and their parents.
  • Functions for community leaders, prominent visitors, legislators, officials, or leaders of educational programs.
  • Functions for Board of Visitors or officials from other public or private institutions.
  • Functions related to the opening of new facilities and dedication ceremonies.
  • Functions for officially recognized student groups. Link to University Official Student Groups.
  • Recognition functions to honor distinguished faculty, staff, and students for significant, meritorious achievements.
  • Faculty, staff, and student recruitment events.
  • Travel expenses for spouse/significant other/companions to accompany an applicant on a UW-Madison job interview trip.
  • Employee recognition and morale/team building events such as honoring an employee retiring or separating from the university with at least five years of service and annual holiday/general appreciation events.
  • Nominal gifts—excluding gift cards and cash equivalents—related to employee major life events such as weddings, births, or death in a family. Nominal gifts must be:
    • Flowers; or
    • UW-logoed items less than $50.00.
  • Meal expenses associated with an official function up to $150.00 per person including alcohol expenses paid by the Wisconsin Foundation Alumni Association. Exceptions to the $50/person alcohol limit and $150/per person meal limit must be requested in writing to the Associate Vice Chancellor of Business Services. Approval must be obtained prior to report submission, attached to the expense report, and will be billed to UW-Foundation.
  • Lodging expenses for non-university employees attending an official function that exceed the university’s lodging maximums for the location.
  • Airfare expenses for non-university employees attending an official function are not restricted to economy/coach class fares.

Other Official Function Requirements

  • Any expense associated with a spouse/significant other/guest attending an official function is allowable if supported by a documented business purpose for the attendance of the spouse/significant other/guest and the cost of attendance is proportional to the value added to the event by the spouse(s)/significant other(s)/guest(s) attendance.
  • Any purchase of alcohol pursuant to this policy must be reimbursed through the Shared Financial System, charged to Account Code 6240, and billed to the Wisconsin Foundation and Alumni Association or via check request to the Wisconsin Foundation and Alumni Association.

Expenses for university-related foundations or affiliated organizations’ board of directors meetings and expenditures for purely social functions for faculty, staff, and students are not considered appropriate charges to any source of funds administered by the UW System.

Consequences for Noncompliance

Failure to comply with this policy may result in non-payment of the official function or expense, employee personal financial responsibility for the cost of the official function or expense, or disciplinary steps up to and including dismissal.

Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:

Policy Administration

Approval Authority:
Vice Chancellor for Finance and Administration
Policy Manager:
Associate Vice Chancellor for Finance
Contact:
Travelers and departmental staff should contact their respective Divisional Business Office for policy questions. -- Divisional Business Officers may contact, uwtravel@bussvc.wisc.edu
Effective Date:
07-01-2019
Revised Dates:

07-01-2022, 06-27-2023, 04-05-2024, 11-07-2024

Retrieved:
11-17-2024 01:25:10