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Conduct and Compliance Procedure - Entertainment
Conduct and Compliance Policy
Entertainment is recognised as necessary to promote the University to commercial and philanthropic benefactors and to engage with staff, colleagues and stakeholders to further the University's strategic objectives.
The University adopts a conservative approach to entertainment to minimise expenditure to the level necessary to achieve stated objectives and to avoid any perception of extravagance, by stakeholders.
Refreshments and meals are provided to staff and guests in a style and location to minimise the imposition of Fringe Benefits Tax, where possible. Entertainment expenses for employees and associates are deemed to be a benefit to the employee and incur the additional cost of FBT, which effectively doubles the cost of the entertainment.
The purpose of this procedure is to advise University staff on the circumstances under which entertainment expenditure is deemed appropriate and to guide staff incurring such expenditure.
This procedure is applicable to all staff of the University's Australian campuses.
Associates: defined as being a relative, partner, spouse or child of a staff member or their partner.
Concur: is the University’s online expense management. It is used for reimbursements and corporate credit card reconciliations
Entertainment expenditure: is the provision of meals, refreshments and recreational activities other than staff amenities, refreshments, and meals whilst travelling and includes:
Fringe benefits tax (FBT): tax payable to the Australian Taxation Office (ATO) by the University on that portion of the expenditure which relates to the provision of benefits to University staff (or their associates). Entertainment benefits include meals, refreshments to University staff (or their associates).The following general rules apply to the determination of “taxable” entertainment.
Meals whilst travelling: is the cost of meals incurred by staff whilst travelling on official University business, unless there is other entertainment such as a floor show, dancing, or live band (refer to Staff International Travel Procedures for Australian Campuses).Staff: a person employed by the University who has an ongoing or fixed term contract under the terms of the Monash University Enterprise Agreement. Past and prospective staff are treated as employees of Monash University for FBT assessment purposes. Contractors are excluded from the definition.
Staff amenities and refreshments: includes non-alcoholic drinks and finger food to be consumed on University premises. This food and drink is provided for morning and afternoon work breaks, business meetings and training sessions. This category includes meals served to employees in an "in-house dining facility" during business hours, except at a social function.
1. Authorisation of entertainment expenditure
Staff members incurring entertainment expenditure are responsible for:
The cost of the entertainment should not exceed $150 per head. If a staff member intends to spend more than $150 per head they must notify their supervisor.
Authorising officers are responsible for ensuring that any claim for payment or reimbursement of entertainment expenditure is:
Where the cost of the entertainment exceeds $200 per head, the Dean/Divisional Director/PVC must provide a written report of the entertainment to the Vice Chancellor on a monthly basis.
2. Payment for entertainment and reimbursement claims
The responsibility for paying the bill on their corporate credit card falls to the most senior staff member present.
Staff should refer to the University FBT and Entertainment (Australia) procedure in or in order to minimise the imposition of FBT and ensure that all relevant details are recorded and appropriate procedures are followed.
FBT will be charged on the whole amount unless the number of employees, associates and non-employees who attended the function is clearly indicated.
All expenses relating to entertainment are to be processed using the Monash Corporate MasterCard, Monash Club account or by seeking reimbursement through Concur. Purchase orders should never be used for processing entertainment expenses.
Staff may incur University entertainment expenditure where they have the express prior approval of their dean or divisional director. Staff incurring entertainment expenditure must read, understand and comply with this procedure.