Accounts Payable Gift Cards & Prizes

Awards, Prizes & Cash Equivalents

DEFINITIONS
Award

For the purposes of this policy, an award is a cash equivalent given, usually to an employee or student, in recognition of past accomplishments. The recipient has made no formal entry or submission and the recipient did not undertake the recognized activity primarily for the financial benefit of the award (see Prize below).

Departments are to charge employee awards to spend category code SC0089 (Recognition Awards). Departments are to charge student awards to SC00297 (Awards).

Business Gift

For the purposes of this policy, a business gift is a cash equivalent given to an individual to express gratitude or appreciation for support of the University’s mission. The recipient performed no service nor provided other consideration in exchange for the gift.

Departments are to charge business gifts to spend category code SC0089 (Recognition Awards).

Cash Equivalents

Cash equivalents are stored-value products such as gift certificates and gift cards. The IRS specifically defines these instruments as cash equivalents and states that their value is considered taxable income to the recipient, regardless of dollar value.

Gift Card or Gift Certificate

A gift card or gift certificate entitles the recipient to receive goods or services of a specified value from the issuer.

Prize

For the purposes of this policy, a prize is a cash equivalent presented as a result of participation in a contest, drawing, or judged competition (see Award above).

Departments are to charge all prizes to spend category code SC0150 (Prizes).

Research Participant Payment

For the purposes of this policy, a research participant payment is a cash equivalent offered to an individual (including a study subject) as incentive to participate in a research study.

Departments are to charge research participant payments to spend category code SC0124 (Research Subjects).

Substitute W-9

A Substitute W-9 is a form the IRS allows as a substitute for IRS Form W-9. WSU uses the Record of Distribution and Request for Taxpayer Number and Certification (Substitute W-9). (See BPPM 45.53).

Allowable Uses

University personnel are to use cash equivalents in only the circumstances outlined in the Allowable Uses of Cash Equivalents table.

ALLOWABLE USES OF CASH EQUIVALENTS

Allowable uses of cash equivalents and appropriate funding sources are presented in the table below. No other use of gift cards or other cash equivalents is authorized without the Controller’s specific, written approval in advance of the purchase of the cards. (Table 1)

Funding Source?
Use Spend Category Appropriated Funds

FD001, FD087, FD025, FD068, FD069, FD070, FD071, FD072, FD073, FD122, FD035, FD036, FD037, FD038, FD039, FD040, FD041, FD042, FD085, FD076, FD078

Donated Funds

FD095, FD049, FD089, FD050, FD051

Sponsored Programs

FD043, FD044, FD045, FD046, FD085, FD047, FD048

Self-Supporting Programs

FD026, FD080, FD053, FD050, FD098, FD054, FD088

Auxiliary Funds

FD077, FD055, FD060, FD056, FD057, FD058, FD115, FD105, FD106, FD107, FD108, FD109, FD116, FD115, FD061, FD053, FD062, FD105, FD033, FD110, FD063, FD111, FD112

Research participant incentive payments (See BPPM 45.53.) SC00124
(Research Subjects)
No, except in conjunction with functions FN013, FN014, FN015 institutional research. Yes, but only where such use is in accordance with the organizational mission, gift use agreement, and donor intent. Yes, but only where human study subjects are an integral part of the research, incentive payment is included as a line item on the project budget and Sponsored Programs has approved in advance. No, except fund FD026 in conjunction with functions FN013, FN014, FN015 institutional research. No
Awards in recognition of student accomplishment or contribution

Contest prizes

SC00297 (Awards)

SC0150 (Prizes)

No Yes, but only where such use is in accordance with the organizational mission, gift use agreement, and donor intent. No Yes, but only where awards or prizes are an integral part of the program mission and included in the approved program budget. Yes, but only where awards or prizes are an integral part of the program mission.
Awards in recognition of employee accomplishment or contribution SC0089 (Recognition Awards) Yes, but only in strict accordance with BPPM 55.56. Yes, but only where such use is in accordance with the organizational mission, gift use agreement, and donor intent. No Yes, but only where awards or prizes are an integral part of the program mission and included in the approved program budget. Yes, but only where awards or prizes are an integral part of the program mission.
Incentive for participation in a WSU sponsored activity

Payments to students for participation in student surveys

SC0124 (Research Subjects) No Yes, but only where such use is in accordance with the organizational mission, gift use agreement, and donor intent. No Yes, but only where incentives are an integral part of the program mission and included in the approved program budget. Yes, but only where incentives are vital to achieve the program mission.
Please see BPPM 70.44 for additional information.