We really only did it once, at the end of final year we had a mini film festival with BBC reps etc. in attendance to showcase our work. Afterwards, the uni paid for free wine and snacks for half the day.
Even our faculty receiptionist was wasted. I remember her talking to us about the films and said to me "Oh...are you the one who made that one with all the blood?", "Yes", "Okay....you can hand your work in ANY TIME." Made me laugh.
After that we hit the local Wetherspoons with our tutor and took the **** out of him for most of the evening. Was good fun, nobody saw our lecturers/tutors in any lower light but also learned that they're certainly capable of having fun.