Standard Operating Procedure (SOP): Gift Card Purchasing Requirements

Document Information

Purpose

This procedure provides guidance for purchasing gift cards and implements controls for safeguarding gift cards, maintaining accountability, and ensuring compliance with law.

Gift cards are considered cash equivalent and are thus high-risk items. Their purchase requires a formal process of accountability to prevent misuse or theft and to comply with external reporting requirements.

Procedure

1. Authorization and Purchase of Gift Cards

• All gift cards require prior approval by the VP of Finance.

• A purchaser may use their Pcard if the total purchase is below the single purchase limit.

• For purchases over the Pcard limit, a purchase requisition must be used.

• Gift cards should be purchased at a retailer, or if purchased online, the gift cards must be shipped to the College.

• Gift cards may not be purchased using personal funds or petty cash.

2. Physical Custody of Gift Cards

• The Gift Card Custodian shall safely secure all physical gift cards in a locked space.

  • The gift cards must be maintained separately and not commingled with other gift cards purchased with other funds or for separate purposes.

3. Controls and Reconciliation of Gift Cards

• The Gift Card Custodian shall maintain a log documenting the purchase of the gift cards and recording who they were issued to and the purpose of the gift.

  • The log should contain:

    1. Date of purchase of the gift cards

    2. Quantity and Value of the gift cards

    3. Business purpose

    4. Recipient name

    5. Date given

• The Purchasing Department will verify and reconcile the purchase and distribution of the gift cards.

• Unclaimed gift cards may be remitted to Finance for safekeeping and redistribution.

4. Tax Compliance

• Gift cards provided to employees, regardless of value, shall be reported to Human Resources so that appropriate tax reporting can occur.