Approval topics:

• Entertainment guidelines
• Obtaining approval
• Establishing an approval authority
• Canceling an approval authority
• Approving entertainment

Entertainment guidelines

Before planning and approving entertainment, review the following guidelines:

Subject	Guidelines
Benefits to UCSD	Ensure that the anticipated benefits outweigh the costs. You might explore alternatives to entertainment that would be equally effective in accomplishing the desired objectives.
Frequency of occurrence	Check how often the event takes place in relation to the nature of the event. If it's on a routine basis, it generally cannot be considered entertainment and is not eligible for reimbursement.
Occasions and expenses	Not all occasions qualify as official entertainment. Before authorizing, ensure that expenses are allowable. See a summary of standard and exceptional entertainment.
Funding	Some fund sources may not allow entertainment expenditures, so verify that available funds are appropriate for the expenses.
Appropriate amounts	Expenses should not exceed the per-person maximum for the meal type. The maximum includes tax and tip but not facility or room rental fees, which can be claimed as an additional expense. If expenses exceed the per-person maximum: It is considered exceptional entertainment, which must be approved at the appropriate level. Provide a written justification as to why higher costs were unavoidable and necessary to achieve the UCSD business purpose of the entertainment. While the per-person maximum may be exceeded on occasion, it might trigger a taxable event for both the host and the guests depending on the circumstances and frequency. See tax issues listed below.
Tax issues	The IRS considers entertainment expenses as reportable income to the host under the following circumstances: Expenses are not substantiated with receipts (if for $75 or more, or exceptional entertainment in any amount). The expenses are lavish or extravagant for the type of function. The entertainment is not directly related to the employee's job. The official host (or other designated employee) is not present when the activity takes place.

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Obtaining approval

Standard entertainment: Can be approved by people who have delegated approval authority for entertainment and have filed a completed Approval Authority for University Entertainment (Excel) with Travel, Mail Code 0955. Approval authority varies by department, but in general the following positions can approve entertainment if officially delegated:

• All campus units: The chancellor and the vice chancellor of Business Affairs can authorize entertainment expenses for all campus units.
• Vice chancellor areas: Vice chancellors and directors have authority to authorize entertainment expenses for all units under their jurisdiction.
• School of Medicine: Department chairs, directors of institutes and organized research units, associate vice chancellors for health sciences and administration, and the associate dean of administration have approval authority for entertainment expenses.
• UCSD Medical Center: The director of the UCSD Medical Center has approval authority.

Exceptional entertainment: Entertainment that has either exceeded the maximum entertainment allowance or involves exceptional occasions or spouses requires approval from someone with official delegation. In general the following positions can approve:

• Chancellor (in all instances)
• Vice chancellors (within their areas)

Note: The chancellor must approve further delegation of authority to approve exceptional entertainment. See a sample letter (PDF) and approval form (Excel). Contact Policy and Records Administration for details.

Exceptions: Exceptional entertainment differs from approval for exception to policy. Only the director of Disbursements and Travel can approve exceptions to policy.

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Establishing approval authority

To establish an entertainment approval authority:

• Fill out the Approval Authority for Entertainment form (Excel).
• Make a copy of the completed form, including signatures, for your departmental records.
• Mail the original form to UCSD Travel, Mail Code 0955.

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Canceling approval authority

To cancel an entertainment approval authority:

• Locate the departmental copy of the Entertainment Approval Authority form (Excel). If you can't locate a copy of the form, or if your department didn't retain a copy, contact UCSD Travel.
• Fill out the cancellation section of the form.
• Mail the form to UCSD Travel, Mail Code 0955.

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Approving entertainment

Online using FinancialLink:

• The approval template allows the person with delegated approval authority for entertainment to review and approve online.
• For exceptional entertainment, the online transaction must be printed and routed for written signature. (See guidelines.)

Using the paper form:

• Fill out and submit the Request for Reimbursement of Entertainment Expenses form (Excel). Verify that all necessary signatures have been acquired:
• Host: The person who acted as host on behalf of the university
• Approval for payment: The person who has been delegated signature authority on the fund source
• Approval for authorization: The person who has been delegated the authority to authorize entertainment
• Exceptional entertainment approval: The vice chancellor or chancellor's designee

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Questions? Contact UCSD Travel or an individual Travel Team member.