Fiscal Operations Manual
Section 400: Expenditures
Oregon State University (OSU) policies and applicable State of Oregon regulations must be followed when providing any recognition to eligible OSU Faculty, Staff, or Student employees.
Employee recognition awards fall within two types: Performance Awards and Service Awards. Follow the guidelines below for the specific type of award.
1. Performance awards recognize extraordinary employee and/or team achievements. These may be given to faculty, academic/administrative unclassified, classified, or student employees.
Payment of these awards is not limited to a specific dollar amount. However, ONLY $50 in a calendar year, per individual, may be from Education and General (E&G) (0xxxxx) funds, State-Wide Public Service (SWPS) 03xxxx, or Designated Operations 05xxxx funds. Note: use of state-wide public service (SWPS) funds is limited to indexes with ‘administrative’ program codes and Designated Operation funds can only be utilized when the award is directly related to the specific Designated Operation fund activity.
The total award, or any amount over the $50 limit noted in the paragraph above, may be from M2xxxx gift, FSxxxx gift, FExxxx, 438xxx, or 1xxxxx auxiliary funds. These awards cannot be paid with grant and contract funds, cost share funds, or SWPS project indexes.
Cash awards will be approved by the Office of Human Resources (OHR) or the Business Center HR Manager (HRM), processed through Central Payroll, and taxed as income. Performance awards cannot be paid through the accounts payable process. Cash equivalents, such as gift cards or certificates, are purchased through the accounts payable payment process but must be reported as taxable income to the recipient through Central Payroll. See FIS 410-27 Gift Cards or Certificates. Other non-cash awards (cameras, pictures, etc.) with a cost of $400 or less per employee, per calendar year are non-taxable to the employee. Reporting is done through the Financial Accounting & Analysis (FA&A) unit in Business Affairs.
2. Service awards are in honor of length of service or retirement.
Service awards may be provided only from non-institutional funding such as M2xxxx gift, FSxxxx gift, FExxxx, 438xxx, or 1xxxxx auxiliary funds. The payment amount is not limited.
E & G (0xxxxx) funds, SWPS (03xxxx) funds, grant/contract funds, or cost share funds cannot be used to pay service awards.
Cash awards will be approved by OHR or HRM, processed through Central Payroll, and taxed as income. These awards cannot be paid through the accounts payable process. Cash equivalents, such as gift cards or certificates, are purchased through the accounts payable payment process and must be reported as taxable income to the recipient through Central Payroll. See FIS 410-27 Gift Cards or Certificates. Reporting is done through FA&A in Business Affairs.
Other non-cash awards (cameras, pictures, etc.) with a cost less than $400 or less per employee per calendar year are non-taxable income to the employee.
3. Account codes:
Cash awards (processed through Payroll)
- 10207 Unclassified/Academic employees
- 10417 Classified employees
- 10507 Student employees
Non-cash awards (processed through accounts payable)–
- 20168 Awards (all employees)
Note: Cash equivalent and non-cash awards handled through accounts payable must be coded appropriately, include the employee’s first name, last name, and the OSU ID number.
4. Retirement/service reception expenses are not an allowable use of institutional funds. Departments wishing to honor employees for outstanding achievements, length-of-service, and retirement must use external funding sources for this purpose. This may be a direct payment by the OSU Foundation (OSUF) or individual donations (See FIS 102-09 Attendee – Paid Funds for Recognition Event). With the exception of specific agency funds, costs for these activities must not be entered on the OSU Financial Information System (FIS)/Banner. FSxxxx funds cannot be used for this purpose.
5. OSU Foundation (OSUF) will process, as a direct payment or reimbursement, non-cash awards with a value/cost of less than $400. Submission is required within 45 days of the date the expense is incurred. To ensure accurate tax reporting, all non-cash awards with a value/cost of $400 or greater and all gift cards or certificates must be processed through OSU.
IRS Publications 15-B, 535