Hosting

Rule

Flag hosting costs associated with indirect cost recovery excluded (ICRX) activities, such as:

• Alumni activities
• Commencement
• Entertainment
• Fundraising
• Lobbying
• Public relations
• Student extracurricular activities

Exception

Do not flag costs of light refreshments at university meetings (e.g., coffee, cookies, or doughnuts).

Examples

Your department is hosting Professor Lopez as poet-in-residence for a semester. The department chair and spouse take Professor Lopez and spouse to dinner at L'Escoffier and to the theater. They drink two bottles of wine while waiting for their table.

1. What is the correct way to handle the dinner and theater costs?

   Costs of the meal, theater, and alcohol for Professors Nobel and Lopez are budgeted in a sponsored award. Expenses budgeted for Professors Nobel and Lopez were budgeted on a sponsored award. Charge the costs to the sponsored award and do not flag them. The expenses for the spouses are not allowable on the sponsored award. Use departmental discretionary funds as follows:

   • Meal costs: Flag all the meal costs because they fail the test of reasonableness.
   • Theater costs: Flag theater costs with the appropriate X Class because the theater costs are entertainment.
   • Wine costs: Flag all costs of alcoholic beverages with the appropriate X Class.

   If none of the costs were budgeted in a sponsored award:

   • Meal costs: Flag all the meal costs because they fail the test of reasonableness.
   • Theater Costs: Flag theater costs for the chair and the two spouses with the appropriate X Class because the theater costs are entertainment.
   • Wine: Flag all costs of alcoholic beverages with the appropriate X Class.

Your department chair asks Assistant Professor Cross to have dinner with a potential faculty member.

1. Do the dinner costs require an X Class?

   No. Faculty recruitment is an allowable cost.

Reminder: Alcoholic beverages are always ICRX and require an X Class.