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FPM 6.5 Business Meals

Effective Date:
August 26, 2024
Last Revised Date:
March 31, 2026
Responsible Unit(s):
Finance & Budget - Supply Chain
Responsible Unit Email(s):
FNSV-Purchasing@arizona.edu
Manual:
Financial Policies Manual
Status:
Active

Purpose and Summary

To provide policies and procedures related to expenditures made for meals, light refreshments, non-alcoholic beverages, and related expenses (except for Meal Reimbursement for travelers and meals required to be provided to student athletes). The University is a public institution and has a fiduciary responsibility as stewards of public funds to exercise discretion to pay for these items and to document how each purchase serves a public purpose and benefits the University.

Scope

This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international.

For meals and incidentals incurred while traveling on University business, refer to FPM 8.4 Meal Travel Allowance.

Definitions

  1. Allowable: Expenditures that are Reasonable, Business-Related, have adequate supporting documentation and a University Business Purpose and benefit, and are not prohibited by any policy or law, and are therefore payable from University funds. Note that not all Allowable expenditures are allowed on all funding sources.
  2. Business Meals: Meals, light refreshments, and non-alcoholic beverages, including tax and tip and related services, incurred in connection with meetings or events focused primarily on business relations or dissemination of information. Business Meals do not include Meal Reimbursement.
  3. Food: Food items, non-alcoholic beverages, and water purchased for use in classroom or educational demonstrations (e.g. nutritional education), for research, for patients, or for animal feed. Must be directly related to the teaching, research, and public service mission of the University.
  4. Meal Reimbursement: A specific amount of money limited to University of Arizona travelers to cover meals and incidentals while traveling on University business. The rates are established by the State of Arizona and designated to reduce the administrative burden on travelers to eliminate collecting receipts per meal. These rates are not designed to cover the entire cost of the meal, but to cover the difference between the costs of a meal of which the traveler might otherwise partake when not traveling for the University.
  5. Business Purpose: A statement that justifies how an expense is appropriate and Reasonable, and how it supports and/or advances the goals and objectives of the University.
  6. Business-Related: Ordinary and necessary expenses incurred to conduct University of Arizona business.  These expenses are for the primary benefit of the University over the benefit of an individual.
  7. External Parties: Individuals who are guests of the University such as community leaders, consultants, customers, donors, prospective faculty or staff, visiting lecturers, or vendors, who are not University employees.
  8. Personal: Expenses that are for the primary benefit of an individual over the benefit of the University. Refer to Misuse of University Assets Policy for additional information.
  9. Reasonable: An expenditure is considered Reasonable if:
    1. The nature of the goods or services acquired, and the amount involved reflect the actions of a prudent person under the circumstances,
    2. The expenditure is appropriate given the mission of the University, and
    3. Reimbursement for, or direct payment of, the expenditure is not otherwise disallowed by any University policy.
  10. Unallowable: Expenditures that are not Reasonable or Business-Related, lack a University Business Purpose and benefit, are Personal, or are prohibited by any policy or law, and are therefore not payable or reimbursable from any University funds regardless of payment method.
  11. University-Established Committees: Standing committees that can provide evidence of their continuing status via an established University website.

Policy

  1. Business Meals that meet all other requirements to be Allowable, are permitted only when provided at:
    1. Business-Related meetings or events where External Parties are present, and their attendance is necessary for the business being conducted. If hosting prospective faculty or staff, University funds can only be used to pay for a Business Meal for the candidate, a guest of the candidate, and individuals contributing to the hiring decision.
    2. Employee Recognition events that meet the requirements of FPM 6.6 Employee Recognition.
    3. Retiree farewell events that meet the requirements of FPM 6.6 Employee Recognition.
    4. Cross-departmental and intra-departmental professional development workshops and training sessions with 10 or more employees (less than full day [six hours] is limited to light refreshments).
    5. University-approved emergency response.
    6. Meetings of University-Established Committees and shared governance bodies (limited to light refreshments).
    7. Student engagement events with current or prospective students (includes activities linked to the desired outcomes of higher education and what the University does to induce students to participate in these activities).
    8. Student convocation and award events.
    9. Student performances and rehearsals (limited to light refreshments).
  2. Alcohol, including associated tax and tip, is Unallowable.
  3. Business Meals must maintain a Reasonable cost per person, calculated before tax and tip. Business Meals exceeding the following guideline for Reasonable cost require a memo documenting justification signed by a dean or department head and are subject to additional review that will result in processing delays.
    1. Light refreshments $15
    2. Breakfast $30
    3. Lunch $30
    4. Dinner $60
  4. Tipping may not exceed 20% of the total amount.
  5. Business Meals require a valid Business Purpose and the following supporting documentation:
    1. Agenda or program,
    2. Date and location,
    3. Itemized receipt or invoice, and
    4. List of attendees and their relationship to the University.
      A list of attendees is required for meetings or events with defined participants.
      For events that are open to the public or broadly available to all students, an attendee list is not required. In these cases, departments must provide documentation sufficient to demonstrate the intended audience (e.g., agenda, program, event flyer, registration site, or communication materials).
  6. Purchasing an on-hand supply of coffee, tea, or snacks for future meetings or events is not permitted unless there is a demonstrated regular practice of providing these refreshments for external parties and there are documented controls and safeguards that prevent consumption of these supplies by university employees. Reasonable supplies of cutlery are permitted.
  7. All Business Meals, except for water provided in public areas and permitted on-hand supplies, must be for a specific Allowable meeting or event and accompanied by the required supporting documentation above.
  8. Business Meals are not allowed on State funds and are limited on sponsored projects.
  9. Business Purpose and supporting documentation must be included in the transaction within UAccess Financials.
  10. Failure to follow this policy will result in disapproval of Requisitions, non-payment or reduced reimbursement, or suspension or cancellation of the PCard.

Procedures

  1. Refer to FPM 6.2 Determining Purchasing Method to determine the appropriate purchasing method.
  2. Refer to Allowable Expenditure Summary by Fund Source to determine allowable fund types for Business Meals and Food.
  3. For instructions on documenting Business Purpose in UAccess Financials, refer to the Business Purpose Guide.
  4. Refer to FPM 6.3 Independent Contractor Services for additional policy details specific to meal reimbursements for Independent Contractors.
  5. Refer to FPM 6.6 Employee Recognition for additional policy details specific Employee Recognition and farewell events.
  6. Refer to FPM 6.4 Payments to Nonresident Aliens before payment is made to or on behalf of a nonresident alien as some visa types do not allow payments. For additional details on specific situations please contact Tax Services.
  7. For events on Main Campus that include Business Meals and exceed $750, refer to Catering & Alcohol Service.
  8. Refer to FPM 6.1 General Expenditure Policy for procedures related to reimbursements and Requisitions.

Object Code Usage

  1. Business Meals not associated with faculty or staff recruitment should be recorded using Object Code 5175 – Business Meals.
  2. Record supplies, room rentals, and other charges to an appropriate Object Code based on the nature of the expense. Do not record these purchases as a Business Meal.
  3. Business Meals associated with faculty or staff recruitment should be recorded using Object Code 5570 – In State Interviewing and Recruiting Expense or 5571 – Out of State Interviewing and Recruiting Expense.
  4. Do not record Food purchases as a Business Meal. Food purchases should be recorded to an Object Code that explains the reason for purchasing the Food. For example, Food purchases to be used in teaching should be recorded to 5180 – Educational Supplies, Food to feed animals should be recorded to 5110 – Agriculture Supplies – Feed and Seed, and Food used in research should use 5290 – Research Supplies/Medical – Laboratory.
  5. Do not record Meal Reimbursement to travelers as a Business Meal.

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