Michigan State University
Controller's Office

305 Administration Bldg
East Lansing, MI 48824
517 355-5020

SECTION 46: Food and Lodging Purchased on Campus Charged to University Accounts

Last updated: May 2002
  1. General
  2. Meal Purchases from Residence Halls
  3. Lodging Arrangements with University Housing
  4. Purchases from Crossroads Food Court, Kellogg Center, Take-5 Snackbars, MSU Union (See Section 206 on MSU Union), MSU Union Catering, and University Club
  5. Alcoholic Beverages
  6. Exhibits/Forms

I. General

This section sets forth the procedures to be followed when charging meals, lodging or refreshments to University accounts. These procedures apply to purchases made at University facilities and the University Club. These purchases must be made in accordance with the Expenditure Policies and Guidelines for Food, Lodging and Beverages, Section 45.

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II. Meal Purchases from Residence Halls

Meal tickets purchased for meals in a Residence Hall cafeteria by an MSU department will be charged to the department by an eJVE. The department must develop a log for maintaining the required documentation of the business expenditure.  The log should contain the following required documentation:

  1. When five or less tickets are used, the user should list the ticket numbers, the names of the ticket users, and the date of the meal.
  2. When more than five tickets are used, the user should list the ticket numbers, the name or purpose of the group, and the date of the meal.
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III. Lodging Arrangements with University Housing

  1. As a general rule, and in order to comply with federal tax withholding requirements, University accounts cannot be charged directly for the costs of University housing (Residence Halls and University Apartments).  A department can make housing arrangements or reimburse individuals for housing expenses incurred as noted below in item C.  Payment for housing should be made by the individual receiving the housing either through a direct payment by them or through a payroll deduction.
  2. There are two exceptions where the cost of the housing can be directly charged to an account on a JVE (see exhibit 46-G; departments may make copies of exhibit 46-G to use for this purpose):
    1. When an individual meets the following federal tax rules which state that housing provided to employees is nontaxable if all of the following three conditions are met:
      1. The lodging is furnished on the business premises of the employer.
      2. The lodging is for the convenience of the employer.
      3. The employee must accept the lodging as a condition of employment.

        All departments that provide housing or make payments for housing, on behalf of an individual who meets the above criteria, must have prior approval and documentation on file with the Office of Financial Analysis (355-5029).
    2. When an individual is in travel status. An individual is considered to be in travel status when away from their regular place of employment for business purposes.  This would cover most individuals employed by other universities who are here as visiting scholars or visiting researchers as long as they are not on MSU's payroll.  Enrolled MSU students and MSU employees are, by definition, not considered to be in travel status.  NOTE: Nonresident alien visitors must have appropriate visa status to permit University payment of lodging expenses.  For example, visitors entering the U.S. with a J1 or B1 visa status are eligible while those entering with B2 visa status must be in conformance with the limitations imposed by the Immigration and Naturalization Service.  If lodging is provided to visitors with B2 visa status, a completed copy of the MSU form "Certification for International Visitors Entering the U.S. With B1/WB1 or B2/WB2 Visa Status" Exhibit 77-D) must be attached to the JVE submitted (Exhibit 46-G).
  3. When a contract or agreement states that housing will be provided to an individual, and the individual does not meet the exceptions noted above, the fair market value of the housing should be determined and paid to the individual as follows:
    1. Employees (anyone on the University payroll system) - Process on an Additional Payments Form through the payroll department (in calculating the amount, keep in mind the tax withholdings that may be processed against the payroll). If the lodging is being temporarily provided for a new employee, see Moving Expenses, Section 53.
    2. Students - For graduate students under a fellowship, process as part of their fellowship award (see Section 23). For undergraduate students and graduate students covered by a scholarship, process as part of their scholarship award through the Office of Financial Aid.
    3. All Others - Contact the Office of Financial Analysis (355-5029).
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IV. Purchases from Crossroads Food Court, Kellogg Center, Take-5 Snackbars, MSU Union (See Section 206 on MSU Union), MSU Union Catering, and University Club

  1. A prenumbered charge slip is to be used to make interdepartmental charges for food services and/or lodging (see exhibits 46-B through 46-F for examples of charge slips for each of the above).
  2. The prenumbered charge slip must contain the following information:
    1. Name of department making the charge.
    2. Account number to be charged.
    3. Date of the charge.
    4. Name of person(s) served. The name(s) of any non-University person(s) should be further identified by listing their affiliation(s). If more than five people are involved, names need not be listed. Simply indicate the name or purpose of the group and the number of people in the party.
    5. Specific business purpose of the expense.
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V. Alcoholic Beverages

  1. Alcoholic beverages may be charged to conference accounts when consumed by conference attendees and when reimbursement is made by participants or sponsors of the conference.
  2. Reimbursement for alcoholic beverages is limited to business functions involving non-employees of the University (see item II) and to recruiting (see item III).
    1. Alcoholic beverages must be purchased and served through licensed establishments except for home entertainment where bulk purchases are permitted.
    2. Bills which include alcoholic beverages, must charge the alcohol portion to a discretionary gift account or account number pre-approved by the Controller's Office and must use object code 112 – Alcohol.  All other bills or portions of a voucher that do not contain alcoholic beverages may be charged to an appropriate fund and account and should use object code 111 – Business Entertainment
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VI. Exhibits/Forms

  • Exhibit 46-A. University Housing Meal Ticket Record
  • Exhibit 46-B. Crossroads Food Court International Center MSU Interdepartmental Transfer Form
  • Exhibit 46-C. Kellogg Center Interdepartmental Transfer Form

  • Exhibit 46-D. MSU Union Interdepartmental Transfer Form

  • Exhibit 46-E. MSU Union Hospitality Services/Catering Form
  • Exhibit 46-F. University Club of MSU Interdepartmental Transfer/Hospitality Services Form
  • Exhibit 46-G. Journal Voucher Lodging Arrangements With University Housing Form
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