Hospitality

WHAT

TVA offers hospitality, including meals, refreshments, etc., to official visitors, present and prospective customers, and other invited guests, and contractor employees as a part of its business activities when it is determined to be in TVA's best business interests. Provision of hospitality to stakeholders and others is an appropriate activity for TVA to engage in as part of its business activities; however, it must always be based on a sound business need, be prudent and appropriate to the occasion and circumstance, and be consistent with the need to maintain public confidence that TVA resources are used only for the benefit of the public which it serves.

Hospitality provided and paid for by TVA may include:

Meals.
Refreshments.
Banquet and food services.
Room and equipment rental (associated with hospitality).
Lodging, meals, and travel expenses for visitors, other invited guests, and interviewees.
Entertainment and non-cash gifts associated with TVA-sponsored events.

Activities appropriate for hospitality include:

TVA-sponsored events such as open house, site celebrations open to the general public, meetings and conferences with present or prospective customers and other stakeholders, and suppliers.
Procurement of alcoholic beverages as appropriate for the occasion, but of a pre-determined quantity and value (no open bars).

Activities not appropriate for hospitality include:

Any activity which due to its nature, location, timing, participants, expense, or other factors would likely be perceived by a reasonable member of the public as an improper or inefficient use of TVA resources. Such activities include golf/country club or other social club individual memberships, sky boxes, corporate suites or similar type arrangements for sporting or other public events; and receptions or meetings held at unnecessarily lavish locations or settings.
Expenditures for TVA contributions to charitable, civic, and other non-profit organizations must be handled in accordance with Business Practice 21, Contributions.

WHO

Contractor employees, if appropriate for the circumstance/event (for example, in connection with appreciation or celebration activities).
Official visitors and other invited guests.
Customers, stakeholders, general public, and suppliers.

WHY

Providing hospitality to official visitors, other invited guests, customers and contractor employees is necessary and beneficial to TVA's business interests and to its communication with, support of, and recognition of customers, stakeholders, and suppliers.

HOW

HOSPITALITY GUIDELINES

Employs TVA control procedures in regard to:

The types of hospitality expenses typically approved.
Monetary limits.
Supporting documentation and approval required.
The format used to report hospitality expenses and apply for their reimbursement.
The method used to pay hospitality expenses.

All employees providing or authorizing hospitality ensure that prudence and good judgment are exercised. Hospitality shall not be lavish, inappropriate to the circumstances or occasion, or likely to reasonably be perceived as an improper or inefficient use of TVA resources or for the private benefit of any employees or other parties.

APPROVAL REQUIREMENTS

Pre-approval by the Chief Executive Officer is required for any hospitality events or expenditures costing $5,000 or more. Pre-approval by an officer reporting directly to the Chief Executive Officer is required for any hospitality events or expenditures costing more than $2,000 but less than $5,000 (includes approval by Executive Vice Presidents reporting to the COO). Pre-approval by an officer (Vice President or above) is required for any hospitality events or expenditures costing more than $500 up to $2000. Officers may delegate approval authority for hospitality events or expenditures costing $500 or less to senior managers. No further delegation of this authority is authorized. (Please note that splitting transactions to circumvent approval requirements is prohibited.)

Requests for hospitality funding falling outside this business practice require the approval of the Chief Executive Officer.

All employees who have the authority to approve hospitality expenditures are required to participate in training on TVA's policies in this area.

DISCIPLINARY ACTION FOR ABUSE

Employees who violate the requirements of this Business Practice or implementing control procedures are subject to disciplinary action, up to and including termination, in accordance with TVA's Employee Discipline policy.

ACQUISTION/PAYMENT OF HOSPITALITY EXPENSES

TVA provides various credit cards to employees for use in paying hospitality expenses (see the Principles & Practices, Business Practice 3, Credit Card ).

The VISA Gold credit card is the preferred method of acquisition/payment for hospitality. As a general rule, at restaurants and similar events, the highest ranking TVA official in attendance should charge the expenditure to his/her VISA Gold credit card. Approval of hospitality expenses will occur as a part of the normal credit card approval process. Additionally, TVA's Expense Reimbursement System (ERS) may be used to obtain reimbursement of out-of-pocket or hospitality expenses obtained using the travel card by any TVA employee authorized to purchase hospitality.

Prior approval of hospitality by the Controller is also required when payment of hospitality is requested by sub-voucher (Form TVA 4161). These requests result in actual payments made by Electronic Funds Transfer (EFT), preferably, or by U.S. Treasury check or Agent Officer checks. (Note: Checks must meet waivers provided by Debt Collection Improvement Act of 1996.) The employee making arrangements to provide hospitality services should check with his or her supervisor or approving officer, if necessary, to determine which payment method is most appropriate. Evidence of compliance with the hospitality approval requirements should be included with the sub-voucher. Convenience Checks may also be used, but only if the merchant/service provider is not a Visa merchant or cannot accept payment via electronic funds transfer (ETF)--ref CFO-SPP-13.9.1

DELEGATION

TVA officers have the authority to approve requests for hospitality funds for their respective organizations, consistent with the approval requirements and limitations in this Business Practice. Approval authority for hospitality events and expenditures of $500 or less may be further delegated to senior managers as provided herein.

The Inspector General will develop a hospitality policy for the Inspector General's office.

ROLES

Employees

Use hospitality funds prudently, in accordance with TVA guidelines.

Approving Supervisors

Ensure that requests for hospitality are prudent and in accordance with TVA policy and budgetary constraints.

Organizations

Implement, and communicate TVA procedures for approval of and proper use of hospitality funds, and the reporting and recording of hospitality expenses.

RESOURCES

Organization Business Managers
Disbursement Services
Procurement
Human Resource Representatives

BUSINESS
PRACTICE 7

Hospitality

Last Revised 03/08