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FISCAL MANAGEMENT OPERATIONS GUIDE

When A Business Expense Form is Necessary

The purpose of the Business Expense form is to shield the employee from having expenditures classified as income by the IRS. It should be completed for any expenditure that might be construed as entertainment.

The form must have the date the event occurred and that date should agree with the invoice provided by the vendor. One Business Expense form per event. The form should have the names of the participants and their business relationship or title. If a group can be defined by a title, such as "11 members of the Board of Regents", that will suffice. However, "members of staff" is too general. If there are fewer than 10 participants, they should be listed individually with corresponding titles (if employees of the UT System) or other business relationship. There must be a business purpose for the expenditure and it must be stated in a specific and concise statement. There must be an original signature of the individual certifying the expenditure and requesting payment. It must be approved by that individual's department head or other authorized signer on that account.

All business luncheon or breakfast expenditures must have a Business Expense form. Expenditures for flowers for a funeral do not require a Business Expense form. On the other hand, flowers used as a centerpiece for a business meeting do require a Business Expense form.