Charges paid for any type of advertising are reportable income and we are required to code payments for 1099 purposes (unless the company is incorporated). If a certain dollar threshold is met during the calendar year, a 1099 form must be generated to the vendor at the end of the year.
Do not pay for advertising and ask for reimbursement. This gives the appearance of avoidance of compliance rules and could result in IRS auditing exceptions. Submit a completed, approved check request with the invoice or on-line printout attached, and payment will be processed directly to the company/organization. Some reimbursements have been processed only after review of the type of company/organization, the dollar amount paid during the calendar year and where it appeared the company would not be paid enough to warrant a 1099 form.
Gift certificates are not to be purchased and given as compensation to any individual (including students, faculty, staff) who gives something (time/value) to the university. IRS views gift certificates the same as a cash payment and the dollar amount as reportable income. We track payments for services for tax reporting purposes. If a certain threshold is met during the calendar year, a 1099 tax form is generated and sent to the individual. When some other form of compensation is given the individual instead of direct payment, we can't track or match the payment from one department with the activity of other departments.
In compliance with IRS regulations, all payments to employees of the university must be processed through payroll. A check request/honoraria form may be submitted for all other individuals.
Food, Alcoholic Beverages, Entertainment and Gifts
No food or alcoholic beverage purchases, entertainment or token items, flowers or gifts are to be paid from state funds. (Subsistence/meals included on travel reimbursement forms may be paid from state funds). Food service invoices cannot be paid from state funds unless the Chancellor or designee was present at the event and unless the Chancellor initiated the meeting and gave written approval in advance (specific rules apply). The Chancellor's attendance at a social event does not constitute use of state funds to pay for the event. No late fees are paid from state funds.
Campus Bookstore Purchases
Tentative guidelines established in consideration of the Umstead Act:
Departments may not purchase from the bookstore unless one of the following exceptions applies:
- Textbook purchases are legal. (Applies to all memo banks)
- Purchases by UNC Asheville Foundation or Agency funds beginning with the digit ‘8’ or ‘9’.
- “Emergency” purchases of non-state contract, non-central store’s merchandise under $25.00 in value.
- Small orders of in-stock UNC Asheville emblematic merchandise. Large quantities of UNC Asheville emblematic merchandise must be ordered through Purchasing.
For quantities of 50 or more logo items, the department needs to submit a requisition to Purchasing, even if the cost is under the $500 limit. A small order of 1,2, maybe up to 10 logo items, may be purchased from the bookstore as long as the dollar amount is $25.00 or under. Over 10 but less than 50 items would depend on the total purchase cost. In this situation, check with Accounts Payable or Purchasing. (As above, funds beginning with 8 or 9 do not have to follow this guideline).
Whether a state fund (2-xxxxx) or a non state fund (3-xxxxx) can be used, depends on the type of merchandise being purchased and the purpose. Items (i.e. an emblematic legal pad cover) being given in lieu of having to make a payment to an individual for participating in some small event, conference, etc., a non state fund must be used for the expenditure. Items purchased for gifts or student awards (i.e. mugs), and all token, entertainment, food and drink purchases must be paid from non state funds. State funds may be used in some instances. Items purchased for promotional purposes (i.e. pencils or other token items used by Admissions), can be paid from state funds. Emblematic bags or totes used and kept in an office or department, or used for educational or training purposes on campus, may be paid from state funds. However, if an emblematic bag or tote is purchased and given to someone as a token gift, or for the purpose of carrying other items, these are payable only from non state funds although any promotional item inside would be payable from state funds.