Non-Travel Food and Beverage Expenses

IRS and University rules must be followed when purchasing food and beverage as business expenses. 

• Per IRS guidelines, documentation for all business meals and entertainment must include a statement of business purpose and a list of attendees, regardless of the mode of payment. Business expense documentation requirements are detailed on the Approvals, Documentation Requirements and Exceptions page.
• Food and beverage expenses must be reasonable and appropriate to the purpose and nature of the event (see Maximum Cost Guidelines below)
• Expenses related to meals or functions with alcohol must be in compliance with the standards pertaining to alcohol 
• Sponsoring agency guidelines for the purchase of food should be reviewed carefully prior to charging to sponsored research funds
• Some campuses require that food served at meetings on campus or on property owned or controlled by the University to be provided by campus Dining Services. Please refer to campus policies and procedures for additional details
• Business expense documentation is required for all business expenses incurred by means other than reimbursement that could appear to be dual use or personal. For example: business meals, meetings, gifts

Maximum per person rates for non-travel business meals (rates are not inclusive of tax and tip)

• Meals for employee-only business meetings are allowed when there is an extended agenda such as trainings, workshops, and retreats, or to support emergency operations, or as allowed in collective bargaining agreements   
• Light refreshments (coffee, soda, and other non-alcoholic beverages; pastries, cookies, fruit, snacks, or similar) are allowed for employee-only business meetings and events that are conducted for the educational enrichment of students, postdocs, or medical residents
• Alcohol consumed at a business meal or meeting must be reasonable (generally not to exceed 25% of the total bill or a single beverage per person that is reasonably-priced as determined by the department) and be served in conjunction with a meal. Please refer to the Business Meetings and Events with Alcohol page. 
• Discretionary tips up to 20 percent of the meal cost  

• Departmental non-business meals, dinners, holiday celebrations or other non-incidental food and beverage expenses that involve only University employees and not external business guests are ordinarily not permissible expenses unless special circumstances exist, and the expenditure is pre-approved in accordance with the Approvals, Documentation Requirements and Exceptions
• Meals provided as a matter of personal convenience 
• Alcohol purchased with sponsored research funding 

The approval requirements for food and beverage business expenses are outlined on the Approvals, Documentation Requirements and Exceptions page.

Exceptions can be requested for non-allowable expenses if prior approval is given. See the Approvals, Documentation Requirements and Exceptions page for more information.