Gift Cards

Purpose: To ensure compliance with policies and procedures related to gift cards.

References:

Related Forms/Sites:

Overview

  • Gift card purchases must be approved by the College Business Administrator on a Gift Card Request Form.
  • A gift card custodian must be designated by each department to ensure the following:
    • Keep the cards in a secure campus location (e.g. locked drawer or safe) until distributed.
    • Document the distribution of the gift cards, including date of distribution, name of recipient, and signature of recipient acknowledging the receipt.
      • If the gift cards are for confidential human subject study, the department must retain distribution records in their files for seven fiscal years after the grant expires.
      • Otherwise, distribution records must be uploaded to the P-Card document page in the Finance System when the distribution is complete. The custodian must keep the cards secure, distribute them appropriately, and maintain distribution records.
  • Someone other than the gift card custodian must review the gift card records at least once a month to verify that all distributed and undistributed gift cards are accounted for and will report any discrepancies to the College Administrator.
  • If a department awards a gift card to an employee, the department is responsible for reporting this amount to the Tax Department as the employee's taxable benefit in accordance with SAM 03.D.06.
  • If a department awards a gift card to a non-employee and the total amount received by the non-employee in a calendar year is $600 or more, the department is responsible for submitting the non-employee's W-9 Form and reporting the amount to Accounts Payable, so that the non-employee can be issued a Form 1099-MISC.

Procedure

1. Obtain Approval from the College Business Administrator

  • Submit the completed and signed Gift Card Request Form to the college via the Gift Card web form.
  • The college will review the form, obtain the College Administrator signature, and upload the signed form to the college's Gift Card Log. In the log, the college will add the number of rows corresponding to the number of gift cards requested. These rows will be filled out later by the department gift card custodian with the recipient name and other details as specified in #4 below.

2. Purchase Gift Cards

The department will purchase the cards and the gift card custodian will keep the cards in a secure location until they are distributed.

3. Distribute Gift Cards and Complete Required Forms

  • The department gift card custodian will distribute the gift card(s) and obtain the following documentation:
    • The distribution date, name of recipient, and signature of recipient. See the Gift Card Distribution Log in the UH Survival Guide.
    • Taxable Payments Form (only for employees). Process this form in accordance with SAM 03.D.06.

4. Update the NSM Gift Card Sheet

1. Update the following columns in the sheet:

      • Recipient name
      • Date of Distribution
      • Recipient Type
      • Tax Form Complete? (employees only)
      • Uploaded to PCard or Voucher

2. Upload the signed Distribution Log, copy of the Tax Form and email notification to Tax Office if applicable, to the corresponding row in the sheet.

3. Once all steps are completed, check the "Done" column.

5. Upload Distribution Log/Confirmation of Distribution to the Pcard Expense Report

The department gift card custodian will upload the completed distribution log to the Pcard Expense report or the Voucher, whichever method of payment was used to purchase the gift cards.

  • If the gift cards are for confidential human subject study, the department must retain distribution records in their files for seven fiscal years after the grant expires.
  • Otherwise, for all others, the distribution records must be uploaded to the Voucher or P-Card document page in the Finance System when the distribution is complete. Include the email to the Tax Office as confirmation that the form was submitted.

6. Report gift cards exceeding $600 (prior to end of calendar year)

  • If a department awards a gift card to a non-employee and the total amount received by the non-employee in a calendar year is $600 or more, the department is responsible for submitting the non-employee's W-9 Form and reporting the amount to Accounts Payable, so that the non-employee can be issued a Form 1099-MISC. Department notifies Tax Office per SAM 03.D.06