Representation Expenses and Staff Catering

See also Receptions 

The costs incurred must have relevance to the university's activities - whether it is the cost of representation expenses or staff catering.
 
A distinction is made between:

1. Representation expenses
2. Staff Catering 

1. Representation expenses
Definition: Representation expenses are costs of meals, eating out, drinks, gifts and tokens of respect to external parties, the holding of anniversaries and other events externally with external participation, which are organized to promote the university's activities and are intended for persons who are not employed by the university or otherwise participate in its management. Birthdays should be regarded as private events, and are thus irrelevant for the university - irrespective of the participants.
 
Representation expenses therefore have the character of tokens of respect or commercial hospitality extended to external relations.
 
All costs associated with a representative arrangement are attributable to representation expenses, even though there are staff present (e.g. KVL’s anniversary, Årsfesten).
 
Cover charges
The key to deciding cost level is that the expense must be matched to the purpose and participants. The Rector's annual dinner with the Minister is held at one cost level, while the economy manager's dinner with the auditor has a different (lower) cost level. The cost level of the rector's dinner (food and wine) with the Minister was 750 DKK as of 2007.
 
The University of Copenhagen has set tariffs for cover pricing in connection with representation expenses. There must be a reasonable and appropriate relationship between the occasion and the associated costs. Tariffs are upper limits.
 
Tariffs
Valid from 1/1 2008 for representation expenses at the University of Copenhagen:

Dinner incl. beverages	600 DKK per cover
Lunch incl. beverages	400 DKK per cover
Reception incl. beverages	75  DKK per cover
Gifts, flowers, wreaths, etc.	500 DKK per cover

 

It is not permitted to use funds to purchase tobacco products for use in meetings or for representative purposes see Ministry of Finance Budget Guide 2006, paragraph 2.4.14. There can be no dispensation from this rule.
 
Dispensation
For special occasions dispensation from KU's tariffs may be permitted. The dispensation must be given in writing by ones immediate superior. The dispensation must explain why the tariffs are exempted, and the dispensation must accompany the expense receipts. The dispensation is to be scanned and attached when using e-invoices.
 
In the exceptional and isolated cases in which KU's tariffs are exceeded, expenses must be kept well below 1.000 DKK per cover for dinner incl. beverages, and proportionately less for other meal types. If the ceiling of 1.000 DKK is exceeded, this could lead to a conviction for criminal breach of trust - see the Brixtofte case.

 

Documentation

• Invoice / expense documents (including date and nature of the expenses shown):
• Occasion (if possible with attached agenda / invitation / program)
• Participators names

Use the representation expenses form, if required
 
For larger events such as anniversaries and receptions it may be difficult to provide names of participants, but an invitation list, if available, can be attached to the appendix.

 

Charging and accounting
Representation expenses are, from 2008, to be charged to:

31411	Internal canteen meals (no tax deduction)
31412	Hotel and restaurant, local (6.25% tax deduction)
31413	Hotel and restaurant, abroad (no tax deduction)
31420	Gifts, flowers, wreaths (no tax deduction)
31430	Other representation expenses (no tax deduction)

 

 
2. Staff Catering
Definition: Staff catering expenses etc. are expenses incurred with respect to staff care, for KU's staff. These may cover coffee, cake and fruit for meetings, dinners held to improve the working atmosphere, other meals, internal receptions, gifts and flowers etc. Birthdays should be regarded as private events, and are thus irrelevant for the university.
 
All expenses for staff meals, etc. are to be assigned to staff catering expenses, if the occasion and the target are internal, even though there are external participants present. This could for example be a working meeting at a Department with participants from DTU, or a management meeting of the Finance & Personnel Department with the participation of auditors from PriceWaterhouseCoopers. The presence of external participants does not change the fact that there is an internal cause and an internal audience, and therefore, all costs are charged as staff catering expenses.
 
The following types of staff catering expenses, each with its own tariff, are distinguished between:

 

1. Staff catering at the University of Copenhagen
2. Staff catering outside the University of Copenhagen (specific documentation requirements)

Cover charges
The key to deciding cost level is that the expense must be matched to the purpose and participants. The Head of Department's annual dinner with the Rector is held at one cost level, while dinner in connection with overtime has a different (lower) cost level. Currently (in 2007) the level of the annual Deans dinner (food and wine) was almost 700 DKK.
 
The University of Copenhagen has set tariffs for cover pricing in connection with staff catering. There must be a reasonable and appropriate relationship between the occasion and the associated costs. Tariffs are upper limits.
 
Tariffs
Valid from 1/1 2008 for staff catering etc. at the University of Copenhagen:

	Event held at KU	Events held outside KU
Dinner incl. beverages	300 DKK per cover	500 DKK per cover
Lunch incl. beverages	150 DKK per cover	300 DKK per cover
Reception / meetings incl. beverages	75 DKK per cover	75 DKK per cover
Gifts, flowers, wreaths, etc.	500 DKK per person	500 DKK per person

 

It is not permitted to use these funds to purchase tobacco products for use in meetings or for representative purposes see Ministry of Finance Budget Guide 2006, paragraph 2.4.14. There can be no dispensation from this rule.
 
Dispensation
For special occasions dispensation from KU's tariffs may be permitted. The dispensation must be given in writing by ones immediate superior. The dispensation must explain why the tariffs are exempted, and the dispensation must accompany the expense receipts. The dispensation is to be scanned and attached when using e-invoices.
 
In the exceptional and isolated cases in which KU's tariffs are exceeded, expenses must be kept well below 1.000 DKK per cover for dinner incl. beverages, and proportionately less for other meal types. If the ceiling of 1.000 DKK per cover is exceeded, this could lead to a conviction for criminal breach of trust - see the Brixtofte case.
 
Documentation
If the event takes place at KU, only original receipts are returned (as for other operating costs).
 
If the event takes place outside KU, the documentation must conform to documentation requirements in connection with representation expenses:

 

• Invoice / expense documents (including date and nature of the expenses shown):
• Occasion (if possible with attached agenda / invitation / program)
• Participators names

Use the representation expenses form, if required
 
Charging and accounting
As of 2008. staff catering is to be charged to:

32890

Personaleforhold i øvrigt