Guidelines for the Disbursement of Funds

Alcoholic Beverages

Alcoholic beverages are restricted to certain local funds. Prior to purchasing or attempting to pay for alcohol, determine if the department has funds which will allow it. To determine if an account can pay for alcohol, look at the sub code edit section of the account attribute tab in Canopy or screen 8 in FAMIS. Look for 6341 with a Y in the match column. All continuing education accounts (25XXXX) allow for alcohol to be purchased, but they will not show 6341 in the sub code edit section of screen 8 in FAMIS or in the sub code edit section of the account attribute tab in Canopy.

It is extremely important to identify and classify the alcohol purchased. It must be listed/categorized separately from the food or other beverages purchased, and must be coded using expense object code 6341. The IRS requires "who, what, when, where and why" documentation for the purchase of alcohol. The IRS considers this entertainment and, if not documented properly, it will be considered a tax-reportable benefit to the employee. Accounts funded from contract and grant residual accounts (235XXX), concessions or investment income, and gift accounts not restricted by the donor (50XXXX and 51XXXX) may be used to purchase alcohol for entertainment purposes with written recommendation from one of the following based upon who has authority over the account: Provost and Executive Vice President for Academics, Chief of Staff to the President, Vice President for Finance and Chief Financial Officer, Executive Associate Vice President, and the Vice President for Student Affairs.

Contract and grant funds for legitimate scholarly research and/or testing that requires the use of alcoholic beverages may purchase alcohol if the guidelines stipulated in the grant or contract are followed.

No accounts under the control of the Athletic department may be used to purchase alcohol.

Study Abroad programs and international field trips should review Texas A&M University Rule 21.01.03.M0.01: Guidelines for the Use of Working Funds for Student Programs Conducted Outside the United States, section 3.4. 

All alcohol purchases must be in support of events and activities that further the mission of the institution or agency as determined by the Chief Executive Officer, approved by the Chancellor, and reported to the Board of Regents. Such events and activities, as well as locations, were confirmed by the Board of Regents on September 23, 1994 in Minute Order 294-94.