University of Tasmania, Australia

This policy provides guidelines to which the provision of hospitality is considered appropriate and the accountability that is applicable to such activities.

The University recognises that in certain circumstances the provision of hospitality is appropriate and potentially beneficial to the University. This Policy has been established to ensure business purpose and associated Fringe Benefits Tax (FBT) issues are appropriately met.

This policy applies to all University staff. Due to the nature and sensitivity of Hospitality expenditure the approval levels detailed in this policy cannot be delegated.

"Senior Manager" is used in this policy to refer to the Vice-Chancellor, Deputy Vice-Chancellor, Executive Director, Finance and Administration, Pro Vice-Chancellor (Teaching & Learning), Pro Vice-Chancellor (Research), Dean of Faculty, Head of CRC, Director of Menzies Research Institute, TAFI and TIAR.

Official hospitality may be provided:
" at events that are wholly, necessarily, and exclusively in the interests of the University and are for a legitimate business purpose; and
" where the overall cost is appropriate, prudent and transparent and is able to withstand external scrutiny.

1. Reasonable Expenditure - Appendix A (PDF File 80.2 KB) outlines the various types of hospitality, provides examples and guidelines for reasonable expenditure, along with approval levels and indicative FBT implications.
2. Attendance - The number of University staff attending a hospitality function should normally comprise a minor proportion of attendees, having regard to external representatives. The number in attendance should be restricted to those able to advance University business or provide a benefit to the University from their attendance. Official hospitality expenditure should only extend to partners of University staff after considering the individual circumstances and cultural issues that are present. Including where their attendance can be considered to provide benefit and/or support to the activities of the University.
3. Accounting Requirements - Where practical, expenditure on official hospitality is to be charged to the University Business Card of the most senior member of the University staff present.
   
   Appendix A (PDF File 80.2 KB) includes general indicative information on when Fringe Benefits Tax may apply to hospitality expenditure.
   
   Hospitality and entertainment expenses should be charged against the School or Section operating account. In no circumstances should such expenses be charged against research accounts without the written approval of the granting body.
4. Self Catering - In the majority of cases, catering for meetings and functions should be provided by an external organisation. However in some instances, it may be beneficial for University staff to procure food supplies to provide catering to University meetings and functions. It is recommended that this self-catering occur only in exceptional circumstances, after considering the: -

• transparency of transactions occurring;
• appropriate utilisation of staff time;
• issues with food preparation and handling;
• appropriate supplies for catering.

A Senior Manager must provide prior written approval for any exception to this policy. The written submission for approval must identify the staff groupings to attend, identify the benefits to the University and demonstrate that the cost to the University is appropriate. A copy of the written approval is to be attached to the relevant supporting documentation and should include the Senior Manager's comments. The original is to be retained by the employee.

Where the Senior Manager requires assistance in their determination, advice can be sought from senior staff within Financial Services. When seeking advice, if unusual circumstances exist an additional notice is required to ensure appropriate consideration and research can be performed.

• Senior Executives
• Heads of Budget Centres
• Faculty Executive Officers
• Administrative Staff

• Evidence of equitable and reasonable expenditure University-wide.
• Number of instances where Internal Audit reports query appropriate expenditure and adequate documentation of expenditure.