Financial Policies

FN10 Other Business Expenses and Activities

Policy Status
Active
Subject Matter Expert
Strategic Finance Partners, https://budgetandfinance.psu.edu/contact-staff, AskGURU@psu.edu
Policy Steward
Associate Vice President for Budget and Finance & Controller

TABLE OF CONTENTS

Purpose

This policy establishes principles and requirements governing the use of The Pennsylvania State University (University or Penn State) funds for other business expenses and activities, including University-sponsored events, gifts and awards, charitable contributions, and other miscellaneous expenses, to ensure appropriate stewardship, legal compliance, and accountability.

Scope

This policy applies to all Penn State campuses, colleges, departments, or units conducting business in the name of The Pennsylvania State University and to all individuals who approve or process such transactions.

This policy does not apply to events or activities for which no University funds are expended.

Penn State Health and its subsidiaries and The Pennsylvania College of Technology, each having their policies, are exempt from the requirements of this policy.

Definitions

Alcoholic Beverages
Beer, wine, liquor or any other drinks that are considered “alcoholic beverages” by the Pennsylvania Liquor Control Board (PLCB).
Awards
Merit recognition of notable achievement, including retirement. Door prizes and other prizes are awards for purposes of this policy.
Gifts
Tokens of appreciation or consolation.
Licensed Public Venues
University-owned, occupied or leased property licensed by the PLCB as a “public venue.” These include the Bryce Jordan Center (BJC), Beaver Stadium, Pegula Ice Arena, and any other University location approved by the University’s Board of Trustees and licensed by the PLCB as a “public venue.”
Public Event
Any event at a Licensed Public Venue at which alcoholic beverages are sold to the general public.
University Property
All property owned, occupied, or leased by The Pennsylvania State University
University-Sponsored Event
An event, function or activity for which University funds are paying all or a portion of the cost of the event sponsored by the University or a University department, organization, or group. For purposes of this policy, a University-Sponsored Event does not include a Public Event.

In the event of a conflict between this policy and any related procedures, guidelines, or operational documents, this policy shall govern. Procedures and supporting materials are intended solely to operationalize this policy and may not override or supersede its requirements.

Policy

Budget executives and administrators are stewards of University funds under their authority and are accountable for ensuring expenditures are reasonable, mission-related, and compliant with applicable laws, regulations, donor restrictions, and University policy.

The Controllership and Financial Planning, Analysis, and Coordination (FPAC) shared services teams are responsible for ensuring that transactions comply with University policy and supporting procedures, including external legal and regulatory requirements.

Appropriateness of expenditures must consider the source of funds, including but not limited to general funds, restricted grants and contracts, endowments, gifts, and unrestricted donor funds.

Procedure FN2010 Other Business Expenses and Activities Payment Processing contains detailed operational requirements, including approvals, documentation, processing, and compliance controls.

University-Sponsored Events

In the conduct of business, the University sponsors many events, including group meals, meetings, conferences, retreats and receptions. A University-Sponsored Event is one for which University funds are paying all or a portion of the cost of the event.

Alcohol Beverages

The use of University funds for alcoholic beverages is restricted and permitted only under limited circumstances consistent with University Policy AD18 Possession, Use, and Distribution of Alcoholic Beverages and applicable law.

Entertainment, Flowers, and Decorations

Entertainment and decorative items may be appropriate for certain University-sponsored events but are limited to allowable funding sources and must be reasonable and justifiable.

Gifts and Awards

Gifts and awards may be provided in limited circumstances to recognize achievement, service, or support of the University, subject to fund source restrictions and tax reporting requirements.

  • Gifts or awards to employees are generally prohibited, except as permitted under formally established University programs
  • Gifts and awards may not be paid from federal or state grants or contracts.
  • Cash gifts and awards are taxable to the recipient.
  • Scholarships are governed by Policy FN09 Scholarships, Awards, and Grants and are excluded from this policy.

Detailed tax reporting and processing requirements are established in the supporting procedure.

Charitable Contributions

Direct charitable contributions using general funds are prohibited. Contributions or expenditures that benefit non-University entities may be permitted only when they advance University interests and comply with applicable fund restrictions.

Contributions or expenditures that directly or indirectly support political parties, candidates, or elected officials are prohibited.

Other Business Expenses

Other business expenses must support a legitimate University purpose and be reasonable in nature and cost. Certain expenses may be restricted or prohibited based on fund source or expense type.

Risk Management

University-sponsored events and activities must be conducted in a manner that manages risk and protects the safety of participants. Additional requirements for events, including those involving alcoholic beverages, are established in supporting procedures and guidelines.

Responsibilities

Budget Executives are accountable for ensuring that expenditures are appropriate, reasonable, and aligned with University policy, funding source restrictions, and institutional objectives.

The Controllership and FPAC shared services teams are responsible for overseeing compliance with this policy and supporting procedures, including applicable legal and regulatory requirements.

All individuals who initiate, process, approve, or record transactions are responsible for complying with this policy and the associated procedures.

Detailed roles and operational responsibilities are defined in the supporting procedure.

Sanctions and Non-Compliance

Violations of this policy or related University policies may result in administrative action and/or referral to appropriate disciplinary or legal authorities. The Office of the Senior Vice President for Finance and Business is responsible for administration and enforcement.

Further Information

For questions or additional details, please contact the business area Strategic Finance Partner team.

Additional support is also available from the Policy and Procedure Office by submitting a Technical Support Request form.

Cross References

Policy Status

Most Recent Changes

  • July 13, 2026 - Editorial changes: Policy AD26 Sale and Serving of Food and Beverages at University Locations expanded to Sale and Serving of Food and Beverages at University Locations and Vended Services.

Revision History

  • May 5, 2026 – policy rewritten to define the business process as it pertains to the shared-services business model:
    • Improved readability and usability for a broad University audience
    • Ensure policy content remains stable, durable, and principle-based
    • Relocate operational details to Procedure FN2010 Other Business Expenses and Activities Payment Processing where updates can occur without frequent policy revisions
    • Strengthening alignment with internal controls, audit expectations, and risk management practices
    • Support ongoing financial system modernization and future operational changes
  • February 24, 2026 – Editorial changes:
    • Temporary statement regarding the new finance shared services business model impacting policy revisions added
    • Financial Officer references changed to Strategic Finance Partner teams
    • All Central Procurement policies renumbered from BS to CP nomenclature
  • March 11, 2025 - Editorial changes - website source code changes - definition tag formatting added and all links verified and/or updated.
  • December 11, 2024 - Editorial changes to the Events Involving Students section:
    • Approval of the budget executive, for events involving graduate students, and the Vice President of Student Affairs, for events involving undergraduate students requirements removed as the request by the Senior Vice President for Finance and Business
  • May 2, 2024 - Editorial changes: references to Policy Guideline FNG04 updated to Policy FN30
  • October 1, 2023 - Editorial changes:
  • June 5, 2023 - Editorial changes per the directive of the Senior Vice President for Finance and Business:
    • Events Involving Employees subsection:
      • First paragraph amended to in reasonable in amount and occurrence and approved by the budget executive.
      • Standing exception eliminated.
  • February 15, 2023 - Editorial changes - changed all references to the Associate Vice President for Finance and Corporate Controller to Associate Vice President for Budget and Finance, per the directive of the Senior Vice President for Finance and Business.
  • September 16, 2019 - edits to remove "TIPS" training verbiage from Alcohol sections and to increase the Non-Cash Awards for Students from $100 to $425 in accordance with NCAA policy. JAVA Catering was replaced with Campus Catering.
  • November 8, 2018 - Subject Matter Expert added.
  • September 13, 2018 - Editorial changes to update the Cross References section and to remove redundant; Date Approved, Date Published, and Effective Date information.
  • July 31, 2017 - edits to the "Alcoholic Beverages" portion of the UNIVERSITY SPONSORED EVENTS section, in conjunction with changes to policy AD18 Possession, Use and Distribution and Sale of Alcoholic Beverages.
  • February 3, 2016 - In the OTHER EXPENSES section, the addition of a subsection entitled Theft or Loss of Personal Property to specify the University's position regarding personal property lost, stolen or damaged on University property or elsewhere while on University-affiliated travel.
  • November 9, 2015 - Editorial change in the GIFTS AND AWARDS section under "Gifts and Awards to Employees" increasing the amount permitted for clothing items from $50 to $100.
  • May 27, 2015 - Editorial change in the GIFTS AND AWARDS section under "Gifts and Awards to Students" to clarify processing as it pertains to travel or research support to students.
  • March 30, 2015 - Editorial change in the UNIVERSITY-SPONSORED EVENTS (GROUP MEALS/MEETINGS, ALCOHOLIC BEVERAGES, ENTERTAINMENT) section under "Alcoholic Beverages" (3rd paragraph; added a new bullet) to provide additional guidance for the serving of alcoholic beverages at University events, as it pertains to alcoholic beverages being ordered/served at, or prior to, 3:00 P.M.
  • February 24, 2015 - Editorial change. A link to the newly created Alcoholic Beverages Decision Tree was added to the UNIVERSITY-SPONSORED EVENTS (GROUP MEALS/MEETINGS, ALCOHOLIC BEVERAGES, ENTERTAINMENT) section under "Alcoholic Beverages" to provide additional guidance for the serving of alcoholic beverages at University events.
  • August 18, 2014 - Major edits made throughout the entire policy. Edits have been made throughout the UNIVERSITY-SPONSORED EVENTS section: Events Related to Events and Events Involving Employees, to clarify acceptable practices and parameters for such events. Updates to the GIFT AND AWARD section: specifically, Gifts and Awards to Students, clarifying the three ways to provide travel support to students; Support to Student Groups was renamed Support to Recognized Student Organizations, and verbiage edited to clarify process. In OTHER EXPENSES, Office Furniture was added as a category, and parameters were clarified for the purchase of furniture beyond standard office furniture. All sections of the ADDENDUM: RISK MANAGEMENT GUIDELINES FOR EVENTS, were updated to reflect current operations.
  • September 25, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.
  • September 7, 2011 - Verbiage added to the Alcoholic Beverages section of ADDENDUM: RISK MANAGEMENT GUIDELINES FOR EVENTS (last 2 paragraphs) to reflect changes to the PLCB law (effective July 27, 2011) which now permit liquor licensees to sell alcohol off their premises.
  • January 19, 2011 - Add-back of the section entitled "Support To Student Groups" (previously removed) to clarify the parameters by which University departments may provide support to student groups. Additionally, a note has been added to the section entitled "Charitable Contribution and Fundraising Events for Non-University Entities," clarifying that University entities may NOT conduct raffles, restricting such practices by University-affiliated groups if any University funds are involved, and defining the parameters by which recognized student organizations may conduct raffles.
  • August 5, 2010 - Editorial change; "Serv-Safe Alcohol Training" added to the Alcoholic Beverages section of ADDENDUM: RISK MANAGEMENT GUIDELINES FOR EVENTS as another acceptable certification for bartenders serving alcohol at events covered by this policy.
  • January 15, 2010 -Revisions in OTHER EXPENSES, specifically in the section entitled "Office Food and Drink Service," to clarify the types of allowable and unallowable expenditures.
  • April 29, 2009 - Revised "Gift and Awards to Students," to better explain handling when giving cash awards or non-cash awards.
  • April 1, 2009 - Major rewrite of the policy, which incorporates the concepts of accountability and stewardship discussed with the Academic Leadership Council and President’s Council in 2008.
  • April 03, 2007 - Major changes to all sections of the policy. "Bottled Water" section removed; "Gifts" and "Awards" sections combined. New section added, entitled "Support To Student Groups."
  • October 18, 2002 - When reporting group meal expenses, the use of a title of the committee or group in lieu of individual names is valid only for groups exceeding 12 individuals. Individual names must always be provided for groups of 12 or less, and the names and affiliation of all non-employee guests regardless of the size of the group. When the title of the committee or group is used in lieu of individual names, the Financial Officer reserves the right to clarify the identity of attendees before approving the group meal expense.
  • May 9, 2002 - Editorial changes: in light of the provisions for group meals/meetings and the Group Meal Support Form, clarified that a receipt detailing the alcoholic beverages is always required.
  • May 22, 2001 -
    • Under the Group Meeting/Group Meal Expenses section, clarified the condition under which spousal expenses are permitted.
    • Under the Gifts section, added a provision to allow budget executives to distribute holiday greeting cards if approved by the Provost.
    • Under the Awards section, added a link to policy guideline FNG04.
  • January 24, 2000 - Substantial changes; policy rewritten.
  • January 13, 1993 - Added a section on Alcoholic Beverages and a section on Nittany Lion Inn group meetings and meals.
  • June 11, 1991 -
    • Advance approval of the appropriate budget administrator or budget executive is required prior to an event being scheduled.
    • Expenses for spouses of University employees are not approved from general Funds.
    • The costs incurred for group meetings/meals must be prudent, reasonable, and in the best interest of the University.
    • Introduced the form "Request for Reimbursement of a Group Meal."
    • Prohibited raffles.
    • Changed the purchase of flowers to also include lease/rental.
  • August 31, 1989 - Under the Group Meeting Expenses section, indicated that the policy applied regardless of the source of funds.
  • April 10, 1989 - New Policy - chiefly from old policy TR7 and an August 1, 1960 policy titled Reimbursable Entertainment Expenses.
Date Approved
Date Published
Effective Date