Purchasing
Please use this chart to determine what type of approval you need before making a team purchase.
Read below for more detailed protocols.
Purchasing Protocols
Only the Business Manager is allowed to make purchases or submit RTP order requests (they can be filled out by other team members, but emailed from the Business Manager).
Purchases are made with either a p-card (the team’s card for purchases under $100 or the SCOPE Office’s card for larger ones) or, in the case of local purchases, on personal credit cards by team members (submit a reimbursement form). These should be $100 or less.
The use of personal credit cards is limited to paying for small, approved purchases bought locally when the Business Manager isn't present or, in the case of remote teams, when it is necessary for .
NOTE: The Business Manager will need to fill out an RTP and email to the Program Manager except for approved purchases less than $100 (please see the Purchasing Authorization Chart--above--for details on other amounts). If the item is not in the approved budget, the Business Manager should get advisor approval before submitting to the SCOPE Program Manager.
Items over $500 require three vendor quotes attached to an RTP.
If there is only one vendor for an item, the Business Manager must provide documentation on the Sole Source Form.
Do not use expedited shipping unless the SCOPE Program Manager has approved it in advance.
Team Pcards
The team p-Card limit is $1,000 per month unless the Program Manager and Business Manager agree to override that limit for a specific reason (i.e. sponsor visits). The request should be submitted through the Wells Fargo website.
More information about SCOPE Pcards can be found here.
Tax Exempt Status
Olin tax exempt forms- Because Olin is a tax-exempt institution, state tax should not be charged on any purchases. In some instances, the vendor may require you to send the tax-exempt form. Make sure you include the tax exempt form with all orders.
You are responsible for making sure that tax is not charged on Amazon purchases.
TWO OPTIONS FOR AMAZON TAX EXEMPT PURCHASING:
The Olin policy on using an Amazon account linked to your Olin email address for SCOPE purchasing is here:"If you will be purchasing items on behalf of your SCOPE team using an Amazon.com account, we recommend that you set up an account that uses your Olin College email address. This Olin Amazon account should only be used for purchases of items that will ultimately be paid for by Olin (either by p-card or reimbursement). Personal purchases should be made on a separate account, using a different email address. It is your responsibility to ensure that only business-related transactions are charged to the account to which the tax exempt certificate is uploaded, because once a certificate is uploaded, there is no way to differentiate business purchases from personal purchases.
How to request a tax refund AFTER making an Amazon purchase is here. Amazon collects taxes on items shipped to Massachusetts. If you have not uploaded Olin’s tax exempt forms and use your account for purchasing items other than those for SCOPE, the Business Manager can request a tax refund after placing each order. Do not use the Amazon Tax Exemption Program to do this, as it is linked to your email address, not the specific credit card you use.
Use of Gift Cards to Compensate Users
In past years, some teams have given gift cards to participants in user surveys. This is no longer allowable. According to the IRS, gift cards are a cash equivalent, regardless of the amount. What this means is that anytime we provide a gift card to an individual, it is essentially the same as us writing a check to that person, and it needs to be taxed accordingly. All gift cards are always taxable to the recipient, regardless of the amount. Financial Affairs will require the Social Security number of any gift card recipient(s), in order to properly report the taxable income. The recipient should also be notified of the tax treatment when they are given the card.
In the extraordinary circumstance where some kind of recognition does need to be given to an individual, there are other options that the IRS does not consider taxable, such as a small de minimus (normally defined as under $25) gift. In order to be non-taxable, the gift must be tangible personal property, worth less than $25, and cannot be gift cards or other cash equivalent. For gifts worth more than $25, the excess of the value over $25 is taxable to the recipient. Options for small non-taxable gifts include candy, a holiday plant, or a small token from the Olin Gear store.