Rule 3-010A – Expenditure and Reimbursement Requirements has recently been updated with language meant to reduce university payment of Utah Sales Tax. Effective February 1, 2015, Accounts Payable will not reimburse amounts paid for Utah Sales Tax without authorization for exception to this Rule.
These changes to R3-010A have generally been met with support from our campus community, but we have received a couple of questions from users that require the following clarification:
Large Group Business Meals (11 or more participants):
- PCards, authorized for Business Meals by the Dean or equivalent, are the preferred method of payment, although other approved direct payment methods may be used as well.
- Required documentation includes: detailed business purpose, name of association or group attending, Dean or Director (for non-academic areas) signature (in compliance with Policy 3-031).
- Personal forms of payment cannot be used, as these transactions cannot be sales tax exempt.
- Large groups should be planned well enough in advance to ensure these requirements would be met.
Smaller Group Business Meals (for up to 10 participants):
- PCards, authorized for Business Meals by the Dean or equivalent, are the preferred method of payment, although other approved direct payment methods may be used as well.
- Required documentation includes: detailed business purpose, name of individuals in attendance, Dean or Director (for non-academic areas) signature (in compliance with Policy 3-031).
- Every effort should be made to plan smaller group business meals in a way to obtain sales tax exemption, but we understand there is occasional need to host a business meal that is more spontaneous in nature and where a rigid insistence of sales tax exemption inappropriate for those in attendance.
- When PCards are not available, and personal forms of payment are necessary, Staff and Faculty may be reimbursed for the cost of a small group business meal and the association sales tax.
Student, Volunteer and other Non-Employees:
- Departments are responsible to use preferred and direct methods of payment whenever possible. This may require departments to consider changes to their current procedures to comply.
- Departments are encouraged, in situations where an exception may be appropriate, to discuss their situation with central administrative officers. We are interested in assisting in every way possible to find a working solution to these changes.
Petty Cash Transactions:
- Departments are responsible to ensure that petty cash expenditures do not include Utah Sales Tax.
- Petty Cash funds will not be replenished for amounts paid in Utah Sales Tax without exception authorization from the cognizant Dean or equivalent position.
