Selected Financial Transactions that Are Exceptions
to Policy and Require Deans' Office Approval in L & S
This page was updated in February 2007. Any questions on policy interpretations and procedures outlined below can be directed to the L&S Deans' Office Manager, Roia Ferrazares at 643-2252. Please note: The L&S Deans' Office is not the department of record for payment requests originating in L&S Departments. Should Departments wish a copy of the signature page sent back to them, they should include a self-addressed campus envelope when routing a payment request through the Deans' Office.
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Entertainment
Refer to Business
and Finance Bulletin BUS-79 and Accounting
Manual.
Events that involve only University employees and/or students should adhere to the following allowable per person spending limits set by University policy:
- Breakfast $26/person
- Lunch $38/person
- Dinner $64/person
- Light Refreshments $17/person
(Note: The reimbursement for a buffet reception cannot exceed the applicable per person meal allowance associated with the type of buffet, i.e., breakfast, lunch, or dinner.)
Events that involve only University employees or students that exceed the standard per person limits above are considered exceptional and should receive prior approval by an L&S Dean, when possible. Payment requests that exceed the standard limit by 50% should be routed to the Divisional Dean for review and will be routed to the office of the Executive Vice Chancellor & Provost (EVCP) for final approval. In the case when a prior approval is secured, and the final event does not exceed the estimated per person amount, then the pre-approval memo can be attached and the payment request can be sent directly to disbursements for payment. (Note: Prior approvals normally take the form of a memo or letter with the specifics of the event such as the food cost estimate, the names of the caterers that have been considered, and the justification for the higher cost. They should be signed by the Department Chair.)
Events that involve donors, invited speakers or faculty under recruitment may be reimbursed up to 50% above the standard limits without prior approval from the Dean. The payment request and documentation should be routed to the Divisional Dean for approval subsequent to event.
- Events with food costs between 50% and 200% above the standard limit:
- Seek prior approval when possible. A memo stating the request for prior approval from the Dean and EVCP should be sent to the Divisional Dean and will be routed by the Deans' Office to the EVCP. In the case when a prior approval is secured, and the final event does not exceed the estimated per person amount, then the pre-approval memo can be attached and the payment request can be sent directly to disbursements for payment.
- Payment requests without prior approval should be routed to the L&S Deans' office for review and will be routed to the office of the EVCP for final approval.
- Exception to the standard per person limits are limited to 200% of the rates and must be due to circumstances which are unavoidable or necessary to accomplish a University business purpose. The fact that actual costs exceeded the authorized rate is not in itself justification for the higher reimbursement rate. Events with food costs which exceed the standard limits by more than 200% should always have prior approval, whenever possible. Prior approval and payment requests should be sent for initial review to the Divisional Dean and will be routed for final approval to the office of the Chancellor.
Also considered exceptional are:
- entertainment of a spouse (or equivalent) of a host or a guest
- tickets to entertainment or sporting events
- faculty or staff picnics, holiday parties, or any event that falls under the event type "Employee Morale-Building Activities" (Note: Reimbursement is not permitted for employee birthdays, weddings, births/adoptions of children, anniversaries, farewell gatherings (other than retirement), Secretary's Day, etc.)
- payment for ANY event for which the Department Chair was the host. For situations where the Chair is seeking reimbursement for entertainment expenses incurred see Chair Reimbursement category below.
If the Department is able to anticipate in advance of the event that expenses will fall in the category of exceptional, prior approval should be sought through a letter or memo to the Dean.
What the Deans' Office Looks for:
- Event date, event purpose and justification for higher costs are required for approval. The description of the event purpose must include a justification as to why the higher costs were unavoidable and necessary to achieve a University business purpose. Describe the activity (administrative or student-oriented meeting, prospective (or former) donor, reception, host to official guest, etc. (TIP: When submitting a BFS purchase order, this information added manually in either the line comments or in the "Add Comments" window, can reduce the amount of time it takes to process your request. Entertainment and Travel (E&T) reimbursement requests should include this information as an attachment)
- PO should note the number of participants and the per person cost. The per person rate is calculated on the basis of food, tax, service, and delivery charges. (TIP: When working in BFS, place the number of attendees in the PO Quantity field, and the total expense for food, tax, service and delivery charges in the Amount field, and the per-person price should automatically be calculated for you.) Any costs associated with rental of meeting or conference facilities, equipment rentals, decorations, and other items should be broken out on a separate line on the PO.
- For catered events that are above the established per person cost for the type of meal served, multiple catering bids must be secured and included in the documentation for payment.
- All expenses must be supported by original itemized receipts, which must be submitted with the request for payment. Receipts should be taped, not stapled, to a separate sheet of paper. In the case of expenses under $75 in which receipts are lost and all measures to obtain a duplicate receipt have been exhausted, a statement should be provided explaining why such receipts are not being submitted as well as an estimate of the total cost of the expense.
- If the payment request is a reimbursement to a member of the faculty, staff or student body, proof that the payee seeking reimbursement incurred the expense must be provided (one of the below):
- a signed credit card receipt
- a copy of the credit card statement with the line item highlighted
- a cancelled check or
- in situations where cash was used, the payee’s signature on the same page as the receipt stating that s/he incurred the expense, is sufficient.
- A guest list containing the name and title, occupation, or group must be attached to the payment request to establish the business relationship to the University of the participants being entertained. It is not necessary to identify the individuals entertained by name and title for routine meetings with an established participant list or where the group is very large. A guest list need not be furnished only in the case where the meeting is open to the public.
- Secure all required signatures. The host’s signature is always required. In all cases where the Department Chair is NOT the host, a reviewer’s signature is required as well. To ensure proper internal controls, an individual with delegated approval authority may not review or approve the entertainment expenses of anyone to whom he or she directly reports. The reviewer/approver should be the supervisor or (or at a higher classification than) the person claiming the expenditure.
- For example, when the host is the Department Chair or Director, the signature line for reviewer should remain blank until it arrives at the Deans' office. The Department MSO cannot review the entertainment expenses of their supervisor regardless of whether the expenses are exceptional. See the section for Chair Reimbursements for more about this.
- Clarify employee recognition and spouse attendance. Does the entertainment activity serve as a bona fide University purpose? Does the function require the attendance of a spouse? Attendance of a spouse will be approved if
- the event serves a university function and if
- exclusion would be inappropriate given normal hospitality expectations (e.g., faculty recruitment).
- Departments must ensure that the funding source and account number are appropriate.
- o Exceptional entertainment expenses and entertainment expenses which include the purchase of alcohol may not be charged to State funds.
- Federal or local government contract and grant funds may be used to fund entertainment only if such expenses are specifically authorized in the contract or grant, or by agency policy, and only to the extent and for the purpose(s) so authorized.
- Various non-state funds controlled by the University may be used to fund official entertainment, but only within the restrictions, if any, governing the use of the fund and within the policy set forth in University policy.
- Each event type has an appropriate account code that should be used. For a list of entertainment account codes and descriptions visit the travel.berkeley.edu website.
- Entertainment account codes can be used for both food/catering and room rental/conference facilities charges when billed by the same vendor for the same event. Room rental or conference facility charges from a separate vendor should be billed to accounts 56310, 56311 or 56312. (NOTE: since the per person cost does not include room rental/conference facilities charges, equipment rentals, decorations, and other items, these should be a separate line item on the PO, even though they are billed to the same chartstring)
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Memberships
Refer to Business
and Finance Bulletin BUS-79 and Accounting
Manual.
All membership payment requests are considered exceptional and require Deans' Office approval. Memberships are paid on a BFS Purchase Order or, with pre-approval, by Procurement Card. Subscriptions that do not involve a membership are not an exception and can be approved at the department level. Conference registrations and subscriptions which are paid in combination with memberships also require exceptional approval.
Should departments wish a copy of the signature page sent back to them, a self-addressed campus envelope should be included with the documentation.
What the Deans' Office looks for:
- Does the organization support the teaching, research, and administrative or public service objectives of the employee's current position, of the Department or of the campus?
- Organizations of universities and colleges, including professional schools and colleges; organizations of institutional service agencies and administrative officers, scholarly societies and community organizations are acceptable and should be charged to BFS account 57352
- Membership in a social organization can only be used for official University business and requests for payment should be accompanied by a brief justification of why the membership is justifiable. Memberships in social organizations are not chargeable to federal funds and should be charged to BFS account 57353
- Has the appropriate fund and account been charged? Generally, the College prefers that 19900 funds not be used to pay memberships although General Fund start-up or Committee on Research funds may be used for scholarly memberships. Use of 19900 funds for individual memberships will not be approved unless the membership provides a direct benefit to the Department. If research funds are used for scholarly memberships, the Department should maintain internal documentation of the PI's approval.
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Non-Cash Awards
Refer to March 15, 1999 Finance Bulletin G-41
Certain allowable non-cash awards and sympathy gifts can be given to employees of the University and are subject to approval by the Department Head. Allowable awards (work-related) include:
- Employee recognition: Must be acknowledged by the presentation of an item of tangible personal property of minimal value, or a nonnegotiable gift certificate. Employee recognition gifts and awards up to a value of $75 can be approved by the Department Head. Gifts and awards valued at over $75 require exceptional approval.
- Length of Service: An item of tangible personal property may be presented if given for a length of service achievement; the recipient must have completed at least five years of service; and the recipient must not have received a similar gift in any of the prior four years. A length of service award valued at or up to $400 is allowable; a gift or award for over $400 is not allowable.
- Sympathy gifts: An item of tangible personal property may be presented as an expression of sympathy in the event of the death or major illness of an employee or a member of the employee's family or household. The cost of such gifts is limited to $75. Sympathy gifts valued at over $75 require exceptional approval.
All exceptions must be reviewed by the Dean and the Executive Vice Chancellor and Provost, with subsequent approval by the Chancellor.
What the Deans' Office Looks for:
- Is documentation provided? Documentation must specify the type of award, the purpose of the award, the special circumstances that require such an exception, and the name of the employee for whom the exception will be granted.
- Is the award allowable? Unallowable awards include:
- any award that would be taxable
- awards presented to an employee on a regular or routine basis
- cash or negotiable gift certificates
- parking permits in excess of $175
- transit passes in excess of $65
- length of service or retirement awards in excess of $400 (totaled from all fund sources)
- recreation memberships
- season tickets to sporting or cultural events
- Is the appropriate fund being charged? Expenditures for employee awards may be charged to State funds. Various non-State funds under University control (e.g., endowments or gifts) may be used for employee awards, in accordance with the Finance Bulletin and subject to any restrictions on the funds. State or Federal funds may not be used to pay for sympathy gifts. Length of service or retirement awards may not be purchased with federal funds.
NOTE: Donations or contributions to non-employees are not permitted under University policy. Detailed information may be found in the University Policy on Employee Non-Cash Awards and the University Policy on Gifts Presented to Non-Employees on Behalf of the University.
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Honoraria
See Section D-371-35 of the Accounting Manual
ALL honoraria from L&S departments, regardless of the amount, must be routed to the L&S Deans' Office for review and approval. .
Should departments wish a copy of the signature page with Dean's approval sent back to them, a self-addressed campus envelope should be included with the documentation. The L&S Deans' Office does not retain file copies of approved honoraria.
What the Deans’ Office looks for:
- Honorarium payment cannot be made to UC Berkeley employees or affiliates who make significant instructional contributions to a course, or over several months, such as to visiting scholars.
- Honorarium payments to personnel of other UC Campuses must be paid through a Interlocation Form routed through the Deans' Office. All honoraria paid to University of California faculty must conform to the relevant provisions in the Academic Personnel Manual Sections 660 and 666. For further information on honoraria paid to University of California faculty, please contact the Executive Assistant to the Dean of your Division. The Interlocation form can be found at the UCOP website.
- If the honorarium recipient is not UC-personnel then the purchase order must confirm this in its details (TIP: When submitting a BFS purchase order, this information added manually in either the line comments or in the "Add Comments" window, can reduce the amount of time it takes to process your request.
- If the honorarium recipient is a foreign visitor that requires a wired payment, visit the Financial Operations webpage for forms, instructions, and procedures.
- Documentation should include a copy of the flyer or announcement of speech, panel discussion, etc. If a flyer or announcement is not available, alternative documentation should be included such as an email from the Department Chair or inviting faculty member outlining the speaking event which took place.
Honoraria are considered exceptional if they meet the following criteria:
- An honorarium to UC personnel (of any of the UC campuses) that is more than $2000 is considered exceptional and requires review by the Dean and subsequent approval of the Office of the President
- An honorarium to non-UC personnel that is more than $7500 is considered exceptional and requires the review by the Dean and subsequent approval of the Executive Vice Chancellor and Provost or the Chancellor.
Exceptional honorarium purchase orders should also include a
memo from the Department Chair or Manager giving justification for the exceptional payment.
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Travel
Refer to Business and Finance Bulletins G-13
and G-28,
UC Accounting
Manual, Academic Personnel Manual Section 560.
Reimbursement for travel is paid on a travel expense voucher created on the UC Berkeley Online Reimbursement System for faculty, staff and students. Travel expense vouchers generally include transportation and subsistence expenses incurred by a University affiliate while on travel status.
- Transportation expenses include the following: charges for commercial carrier fares; travel agency service fees; car and aircraft rental charges; private car mileage allowances; emergency repair to University cars; overnight and day auto parking; bridge and road tolls; taxi and public transportation fares; and all other charges for transportation services necessary to accomplish the official business purpose of the trip.
- Subsistence expenses incurred while on travel status consist of charges for lodging and meals and incidental expenses (M&IE). Incidental expenses include tips and fees for services, e.g., for waiters, baggage handlers, etc. The expenses reimbursed must be ordinary and necessary to accomplish the official business purpose of the trip. Subsistence expenses incurred within the vicinity of an employee's headquarters or residence shall not be reimbursed. To be eligible for reimbursement, actual expenses must be documented with original itemized receipts, and proof of payment, such as a hotel statement which show a zero balance, or a credit card receipt for food. Per Diem for travel within the Continental United States (CONUS) is not allowed. The traveler should give a clear breakdown of M&IE expenses while on travel status. Any reimbursement request that appears to be claiming Per Diem will not be approved.
- When the traveler incurs necessary entertainment expenses during the course of the trip, entertaining guests during a meal for which the traveler was the host and payer, these additional expenses should be broken out and submitted on a separate Entertainment Expense Voucher using "University Employee on Travel Status" as the expense type. Travel and Entertainment Expense Vouchers, for the same trip and traveler, should refer to one another in their comments, as well as be submitted together for approval when possible. In the case where the traveler is not faculty, staff or student, a BFS Purchase Order can be used to process the reimbursement.
See Section XII.B.2 of
Bulletin G-28 for complete documentation requirements. For M&IE and lodging reimbursement caps see
Appendix B of Finance Bulletin G-28. As of February 2007, the M&IE cap is $64 per day.
Exceptions to Policy
- Meal costs in excess of M&IE and Lodging caps are considered exceptional and require Dean's approval, as outlined in Appendix B of Finance Bulletin G-28.
- Business rate or first class air travel requires prior approval of the Dean.
- Reimbursement requests from Chairs or Directors, regardless of whether costs incurred were above caps, must be routed to the Deans’ office for approval.
What the Dean's Office Looks for:
- The exception request must specify the purpose, circumstances or need, applicable dates, and the name of the individual to whom the exception is granted.
- The Department must demonstrate that the use of non-coach class under the following conditions:
- The use of coach class would be more expensive or time-consuming.
- The coach class trip would require circuitous routing, unduly long layovers or not afford the traveler opportunity for a normal rest.
- The traveler requires an accommodation for a disability or other reason which warrants the exception.
- In addition, the Deans' Office may grant an exception to policy if the traveler is participating in a "prestigious" university event (e.g., speaker at an annual lectureship)
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Chair Reimbursement
Refer to Business and Finance Bulletins BUS-79
and G-28,
UC Accounting
Manual
In order to ensure that the approval of entertainment and travel is entirely independent, individuals with delegated approval authority shall not approve their own reimbursements.
All BFS purchase orders and all Travel and Entertainment reimbursement requests, where the Department Chair is the host, or traveler, and which are not exceptional according to Bulletins BUS-79 and G-28, must be routed to the Deans' Office for review.
All BFS purchase orders and all Travel and Entertainment reimbursement requests where the Department Chair is the host, or traveler, and which are exceptional according to Bulletins BUS-79 and G-28, must be routed to the Deans' Office for review and exceptional approval. The Department MSO cannot review the entertainment expenses of the Department Chair or Director.
All policy guidelines pertaining to required documentation spending limits must be followed.
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