Business Meals and Entertainment

Business Meals

Business meals for faculty and staff. Business meals are meals with a clearly substantiated business purpose that are directly associated with the active conduct of University business. At a business meal the business discussion is the primary purpose of the meal. A meal that directly precedes or follows a substantial and bona fide business discussion also meets this criterion.

Examples of business meals include meetings with business associates, professional colleagues, students and others at which a bona fide business discussion takes place.

Entertainment

Entertainment encompasses those expenses incurred in conjunction with a meal or event that is business related but social or celebratory in nature. Entertainment expenses and all alcohol purchases in conjunction with entertainment related activities must be charged to 5214. Expenses incurred for business-related entertaining include catering, decorations, alcohol, location rentals and musical (or other) groups that have been contracted to provide entertainment.*

Recommended Meal Thresholds

Meals with a guest speaker or lecturer. These meals should be limited in terms of number of attendees and total cost. The cost of these meals should not exceed $35 per person for lunch or $80 per person for dinner (including alcohol, taxes and gratuities).* In certain circumstances, these guidelines can be exceeded, but special circumstances must be documented in writing on a Reimbursement Justification form and approved by the head of the school or center (or designated representative).

When seeking reimbursements for business meals, itemized receipts are required (along with credit card receipts) for any amount over $25 in order to ensure that costs are allowable in indirect cost allocation.

Meals with a prospective faculty, staff or student recruit. These meals are expected to be limited in number of attendees and total cost. The cost of these meals should not exceed $35 per person for lunch or $80 per person for dinner (including alcohol, taxes and gratuities).* In certain circumstances, these guidelines can be exceeded, but special circumstances must be documented in writing on a Reimbursement Justification form and approved by the head of the school or center (or designated representative).

Meals with other Penn colleagues in local restaurants are generally not reimbursable. Local meals with colleagues should be considered a personal expense unless the business being conducted is such that it cannot be done in the office. An explanation of the reason as to why the meeting could not take place in the office must be provided on the Reimbursement Justification form.

* Note: Schools/centers and departments may, at their discretion, elect to establish lower per person limits.

Check Policy 2361 for additional information on meals and entertainment.