Accurate meal expense reporting during university business travel means knowing when to claim per diem versus hosted business meals. Understanding this distinction ensures compliance with U-M policy and prevents errors, especially regarding meals paid by other employees.
Per diem meals
While traveling on university business, meal expenses are typically covered by a per diem allowance based on GSA rates (SPG 507.10-1). Per diem is for personal dining and does not require receipts. When employees dine together during travel, it is considered personal (covered by per diem) unless there is a documented business purpose. “Travel” alone is not a valid business purpose.
Hosted/business meals
Hosted or business meals may be claimed as a business expense instead of per diem when there is a specific business purpose for the meal. If a hosted or business meal is claimed, each attendee must reduce their per diem allowance—the meal should be marked as provided.
Valid business purposes
- Meeting with external guests, partners, stakeholders, or donors
- Structured meetings with an agenda advancing university objectives
- Hosting non-employees as part of official job duties
Common scenarios
- Team dinner after a conference day
After the day’s conference sessions, several colleagues dine as a group during personal evening time. Some colleagues may opt out. Conference and work-related topics may arise informally.
➡️ This is a personal meal. Each attendee pays their own way—or reimburses the payer—and claims per diem. - Early arrival breakfast
Two colleagues eat breakfast at a nearby restaurant before conference sessions begin.
➡️ This is a personal meal and should be covered by per diem. - Approved hosted meal
While traveling, an employee hosts external partners for a planned lunch with a documented business purpose.
➡️ This may qualify as a hosted/business meal, and the meal should be deducted from the employee’s per diem allowance.