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Gift Cards cash advance


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									                           Gift Cards/Bank Card Policy
Gift cards may only be procured for the following purposes:

   o Compensating individuals participating in research studies/trials approved by the
     University’s Institutional Review Board (IRB).

   o Compensating individuals participating in University approved surveys.

Gift cards must not be charged against grant or state funds when purchased in advance of
the services being rendered. Effective April 1, 2010, gift cards and bankcards can now be
purchased in advance of the service with the following guidelines:
        The purchase order or journal voucher (JV) to purchase the cards in advance must
be charged to an index of 2-9 or an unrestricted local fund.
        A JV to charge the grant must be completed within 60 days or the JV to move the
charges will not be approved. Therefore, the service must be completed in this timeframe
since the grant cannot be charged until the service is performed.
        An inventory of cards cannot be kept in the department. You should only
purchase the number o cards that will be used in the current phase of the study.
        Substitute W9 forms, with a copy of the purchase order or JV must be
submitted to the Manager of Accounts Payable once the service is performed. See
3b and 3c below for reporting instructions if no Social Security number is provided.

The Internal Revenue Service (IRS) considers gift cards monetary in nature; therefore,
the principal investigator or study/survey coordinator is required to collect tax
information, including social security number, for IRS reporting purposes by having the
study participant complete a Substitute W-9 form Petty Cash Substitute W-9 Form.
As such, notice must be provided to research participants about the tax implications of
accepting a gift card as compensation for participating in the study or survey.

In circumstances where research subject participants will not provide their social security
number but their participation in the study or survey is critical due to a unique population
required for the study the following options may be offered:

   1. The participant may select a specific item from a gift catalog provided by the PI.
      See Attachment A for instructions for the use of gift catalogs.

   2. The participant may be offered a gift certificate for a specific item.

           Gift catalog items and gift certificates that do not exceed $50 are considered
           non-monetary compensation and therefore not IRS reportable.

   3. The participant may be issued a gift card for participating but the following steps
      must be followed:

           a. A substitute W-9 form must be completed for the participant, absent the
              social security number.

                                                                   01/01/2009 revised 4/1/2010
           b. In compliance with IRS regulations, the principal investigator must submit
              to Accounts Payable an index, either 2-9 or an unrestricted local fund, to
              pay the 28% backup withholding that is required in the absence of a social
              security number for all payments over $10. The PI must submit a
              spreadsheet with the Substitute W-9, providing a non-grant funded index
              to charge the 28% withholding, the participant’s name, address, gross
              amount, net amount and amount of backup withholding. This information
              will be submitted to the IRS. The 28 percent withholding form will
              automatically calculate the withholding. Enter only the net amount
              (amount of the gift card). The gross amount and 28% columns will
              automatically populate.

           c. Requests for gift cards or bankcards to participants that do not provide a
              social security number must be submitted to your VP for approval. The
              entire payment request package, including both participants with SSNs
              and those without, must be submitted.

    Below are the three methods of obtaining gift cards: (Instructions above must be
followed in all cases. Substitute W9s must be submitted at time of payment for completed
services, or within 60 days for advance purchase of cards.)

A. Treasury Services - Wachovia provides banking services for the University and
offers a prepaid card that can be used wherever Visa debit cards are accepted. The cards
cannot be reloaded or used at ATM’s for cash withdrawals. The cards are available
wholesale (20 or more) in whole-dollar amounts from $25 to $100 each. There is a $1.95
fee per card. However, if a participant is paid more than $100, payment must be made to
the participant by check.
In order to place an order for the Wachovia VISA Gift Cards, a Request for Gift Card
Order Form must be completed and sent to Treasury Services, Box 843031. Please allow
10 days for processing.

Gift cards may only be picked up by the principal investigator, study coordinator or
approved designee at the University Cashier’s Office at 809 W. Broad St. A University
ID must be presented at the time of pick-up.

B. Purchase Order - Gift cards may be purchased from retail stores, e.g. Target, Wal-
Mart, etc. when the Wachovia VISA Gift Card is not appropriate for the study, i.e.
payment is less than $25. To obtain gift cards from retail vendors, create a Purchase
Order in eVA to the appropriate vendor, and submit the P.O., to Procurement and
Payment to the attention of the Manager of Accounts Payable.
Under no circumstances should an individual purchase gift cards and request

C. Petty Cash - Gift cards may be purchased using Petty Cash funds as these
expenditures are not charged to the grant (or other indexes) until the Petty Cash fund is
replenished. Substitute W-9 forms must be attached to the Direct Pay form, after the
service is performed, when submitting to Accounts Payable for the replenishment of
Petty Cash funds. If the social security number is not provided, VP approval is required
and a spreadsheet as described above (3.b) must be submitted.

                                                                 01/01/2009 revised 4/1/2010
The principal investigator, study coordinator, or designee has sole responsibility for
safekeeping, maintenance and proper usage of gift cards. Gift cards must be
safeguarded and accounted for the same as cash. The principal investigator or study
coordinator must maintain all records regarding the study participants.

Upon receipt of the gift cards, a log of all the gift card numbers should be maintained. At
a minimum, the log must include the gift card unique number, gift card value,
participant’s name and address.

The principal investigator or study coordinator should verify gift cards and/or receipts on
hand weekly. A written monthly reconciliation of gift cards and receipts or log should be
prepared for internal records. The total of the documented receipts or log plus gift cards
on hand must always equal the original disbursement amount.

Gift cards and supporting documentation are subject to review by Audit and/or Treasury
Services, similar to a petty cash account.

                                                                  01/01/2009 revised 4/1/2010

Gift Catalog Ordering Process

The Office of the Vice President for Research provided the following information:

Departments can research and find their own vendor but we are working with a company
called Select-Your-Gift (SYG)

Company Website:
Company Phone: (630) 954-1287
Non-registered eVA vendor – RO2
SYG Tax ID# : 363848345

Ordering procedure:

Go to SYG Website and:

Complete a “Paying by Credit Card Form” or complete a “Credit Application”

           Send SYG a copy of VCU’s - Commonwealth of VA sales and use tax
            certificate of exemption.

           Send to vendor to process: Once you are established with vendor you are
            ready to order.

Shipping Method: If you have a Federal Express account you can complete the shipping
method section and provide your FEDEX account number to be charged or SYG will bill
freight charges.

   1.       Complete order form
   2.       Under “Select your Letters & Seal” – please note quantity ordered beside the
            letter selection.
   3.       Fax completed form to SYG
   4.       Email will be received confirming order

If your departments plan to exceed $7500 per quarter (3 months), complete a requisition
for the review of Purchasing.

                                                                01/01/2009 revised 4/1/2010

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