Policy University Management FMPM 700 - FMPM 799 - Expenses FMPM 750 Policy - Hospitality/Entertainment 

FMPM 750 Policy - Hospitality/Entertainment 

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Providing hospitality and entertainment is a legitimate professional activity that can help the University achieve its objectives. This Policy specifies the requirements regarding University expenditure on hospitality and entertainment, and outlines the considerations required to ensure that expenditure on hospitality and entertainment is properly managed, disclosed and meets public sector standards of accountability.


This policy applies to all staff, students and affiliates, where University funds are being used to provide hospitality or entertainment, regardless of funding source.

This Policy does not apply to receipt of hospitality or entertainment that is provided as a gift or benefit. These requirements are detailed in the Reportable Gifts and Benefits Procedure.


Definitions in this Policy, unless otherwise specified below, are as per the FMPM Glossary.


1. Principles

All hospitality and entertainment expenses must be for a legitimate University purpose, meaning they are reasonable and appropriate in the circumstances, and publicly defensible. The expenditure must not be, or perceived to be, excessive and must meet the following principles:

  • Necessary to perform a valid business purpose fulfilling the mission of the University.
  • Reasonable in that the expense is not extreme or excessive, and reflects a prudent decision to incur the expense.
  • Appropriate in that the expense is suitable and fitting in the context of the valid business purpose.
  • Allowable according to the terms of any federal regulation, contract, or University Policy and Procedure.

2. Requirements

2.1 Only those JCU Staff Members who have been granted delegated authority from Council or the Vice Chancellor may approve the expenditure of University funds on hospitality and/or entertainment. Refer to the JCU Delegations Schedule and the JCU Financial Sub-delegations Register.

2.2 Corporate hospitality and entertainment is permitted where it aligns with the University’s objectives. For example,  the facilitation of sponsorship for University activities, enhancing the University’s community engagement activities, fund-raising projects, and staff functions that strengthen morale.

2.3 Expenditure on corporate hospitality and entertainment must be reasonable by community standards and authorised delegates must exercise sound judgment when approving expenses.

2.4 Financial delegates, as nominated in either the JCU Delegations Schedule and the JCU Financial Sub-delegations Register, are responsible for providing details of hospitality/entertainment related expenditure including how the expenditure furthers University objectives, if requested.

2.5 The costs of hospitality and/or entertainment may only be charged to research grant accounts if the conditions of the grant allow such expenditure. In these circumstances, direction outlined in this Policy will apply.

2.6 Adding a modest tip or gratuity to the account in a hospitality or entertainment situation is only permitted where it is the normal custom to do so,for example in some overseas countries. Refer to Schedule 1 Non-Allowable Expenses Guideline for clarification on permitted limits.

2.6 Hospitality and entertainment will not be extended to partners, spouses, or family members of staff unless prior approval is provided by the relevant financial delegate. Exceptions to this are if the partner, spouse or family member is invited to a function or event in their own right, for example, as an alumni member, presenter/speaker or a member of a group receiving an invitation.

2.7 Refreshments provided in the following circumstances are regarded as incidental to the activity being performed and are not considered to be hospitality or entertainment under this Policy:

  • working meals (light lunches/meals on a working day–two courses, no alcohol);
  • eligible seminar of more than 4 hours (excluding meal breaks);
  • meals consumed on work-related travel; and
  • minor incidental expenditure for items such as tea, coffee, biscuits for servicing meeting rooms.

3. Provision of Alcohol

The Chancellor, Vice-Chancellor and University Executive may maintain a liquor cabinet for small-scale entertainment purposes. Stocked liquor cabinets in other offices or locations require approval from University Executive.

Note: This approval does not apply to centrally managed liquor cabinets for functions run by Council and its committees.

4. Receiving Hospitality/Entertainment

4.1     When accepting hospitality or entertainment, care should be taken to avoid any possible conflict of interest - refer to the Conflicts of Interests Policy – University Council and its Committees or the Conflict of Interest Policy, as applicable. It is particularly important that such situations should not be perceived or construed as providing an incentive for any commercial transactions.

4.2     A hospitality or entertainment benefit may be accepted if it complies with the Reportable Gifts and Benefits Procedure.

5. Fringe Benefits Tax

Fringe Benefits Tax is imposed on certain hospitality and entertainment expenditure at the current applicable rate. The tax is applied to that portion of the hospitality/entertainment expenditure which relates to the provision of meals, refreshments, etc. to University staff or associates (i.e. partners or spouses).

Refer to FMPM 730 Policy - Taxation and FMPM 731 Procedure - Fringe Benefits Tax (FBT).

Related policy instruments

Alcohol Consumption on University Property

Code of Conduct

Code of Conduct – University Council

Conflict of Interest Policy

Conflicts of Interests Policy – University Council and its Committees

Financial Management Practices Manual (FMPM)

Financial Sub-delegations Register

FMPM 420 Corporate Credit Cards Policy

FMPM 421 Corporate Credit Cards Procedure

FMPM 710 Procurement Policy

FMPM 711 Procurement Procedure

FMPM 712 Engaging Individuals as Service Providers

FMPM 730 Taxation Policy

FMPM 731 Fringe Benefits Tax (FBT)

Fraud and Corruption Procedure

JCU Corporate Procurement Plan

JCU Delegations Schedule

JCU Enterprise Agreement 2022

Incident Management Policy

Real Estate Dealings Policy

Student Code of Conduct

WHS-PRO-011 Drugs and Poisons Procedure


Schedule 1: Non-allowable Expenses Guideline

Related documents and legislation

Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth)

Competition and Consumer Act 2010 (Cth)

Crime and Corruption Act 2001 (Qld)

Financial Accountability Act 2009 (Qld)

Financial and Performance Management Standard 2009 (Qld)

Integrity Act 2017 (Qld)

James Cook University Act 1997 (Qld)

Modern Slavery Act 2018 (Cth)

Public Sector Ethics Act 1994 (Qld)

Queensland Code of Practice for the Building and Construction Industry

Queensland Government Procurement Guidance

Queensland Procurement Policy

Right to Information Act 2009 (Qld)

Work Health & Safety Act 2011 (Qld)


NOTE: Printed copies of this policy are uncontrolled, and currency can only be assured at the time of printing.

Approval Details

Policy Domain

University Management

Policy Sub-domainFinance

Policy Custodian

Chief Financial Officer

Approval Authority

Vice Chancellor

Date for next Major Review


Revision History


Approval date

Implementation date





Policy reviewed and amended to align with current Policy and Delegations Framework and current policies, addition of Schedule 1.

Manager, Strategic Procurement




Minor amendments to align with current organisation structure.

Quality Standards and Policy




Policy Sponsor and Approval Authority updated to reflect the approved Policy and Delegations Framework

Quality Standards and Policy Unit




Finance Committee (07/11)








Contact Person

Manager, Strategic Procurement