UCD Directives

UC DAVIS:  ACCOUNTING & FINANCIAL SERVICES

June 30, 1998

DEANS, DIRECTORS, DEPARTMENT CHAIRPERSONS AND CAMPUS/UCDMC  ADMINISTRATIVE
OFFICERS

RE:  New Policy on Employee Non-Cash Awards

The Office of the President has issued a new policy related to non-cash awards
presented to academic and staff employees for recognition of an accomplishment, 
length of service, retirement or sympathy.  The policy covers non-cash awards
only; cash awards such as professional development awards and the UC Davis
Recognition Awards are governed by existing personnel and financial policies.

Highlights of the new non-cash awards policy are as follows:

  Awards presented under this policy are intended to conform to Internal
Revenue Service regulations in order to be excludable from an employee's
income.  Therefore, any awards that must be included in an employee's income
are not allowable. 
  Gifts as an expression of sympathy may be presented to employees in the
event of death or major illness of an employee or a member of the employee's family
or household.  
     1. Sympathy gifts may not be charged to State or Federal funds.
     2. The value of these gifts may not exceed $75 unless exceptional
approval is obtained.
  Non-cash recognition awards may be presented to employees to acknowledge
noteworthy work-related accomplishments. 
     1. These awards must be part of an established recognition program and
must be an item of minimal value such as flowers, fruit, a book, a ticket
for a
sporting or cultural event, a plaque, or a non-negotiable gift certificate
(i.e., only those that cannot be converted in whole or in part to cash).
     2. Awards in this category are limited to values of $75 unless
exceptional
approval is obtained.
     3. A recognition award of a one month parking permit (limited to a value
of $175) or a one month transit pass (limited to a value of $65) is also
allowable.   
  Length of service awards valued up to $400 may be presented to employees,
subject to these limitations: 
     1. The recipient must have completed five years of service;
     2. The recipient must not have received a similar gift in any of the
prior four years.
  Retirement awards valued up to $400 may be presented to employees upon
retirement.

Excluded from this policy is any award that would be taxable.  This would
include any cash or negotiable gift certificate, parking permits with a value
in excess of $175, transit passes with a value in excess of $65, length of
service or retirement awards with values in excess of $400, recreation
memberships, and season tickets to sporting or cultural events.  These are
unallowable regardless of funding source and they are not eligible for
exceptional approval.

Expenditures for employee awards may be charged to State general funds. 
University-controlled non-State funds may also be used for these purposes
subject to any restrictions on those funds.  

The full text of the new policy is contained in Business & Finance Bulletin
G-41, available on the World Wide Web at
http://www.ucop.edu/uco
phome/policies/bfb/g41.html.  A section for the UC Davis Policy & Procedure
Manual is under development; until it is published, the provisions of Bulletin
G-41 must be used.

For information on cash recognition awards, see Personnel Policies for Staff
Members, UCD Procedure 34.

Questions should be directed to Mary Herman, Accounts Payable, at 7-8541 or to
me at 7-8501.

Anthony B. Flores
Associate Vice Chancellor-Finance
 
98-083

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