Examples of employee recognition awards include:

• Flowers
• Fruit
• Book or similar item
• Ticket to a sporting or cultural event
• Plaque
• Non-negotiable gift certificate
• Non-negotiable gift cards
• 1-month parking permit (costing no more than $220)
• 1-month transit pass (costing no more than $115)

Requirements: Non-cash employee recognition awards must be awarded:

• As part of an established recognition program with objective award criteria
• To employees on a nondiscriminatory basis
• On an occasional basis, not to exceed 3 awards per year
• Not to exceed $75 in total, for all awards presented in a calendar year, per employee
• Note: Employee recognition awards that do not meet any one of the above conditions do not meet the Internal Revenue Service (IRS) test for a tax exemption and are not allowed.

Approval: Department heads have the authority to approve transactions. A Signature Authorization form needs to be filed in Disbursements to provide the organization information for the approval authority.

Exceptions: The director of Disbursements and travel must approve gifts and awards that exceed the per-person limit. See how to request an exception.

Taxability of awards and gifts: When UCSD policy is followed, non-cash awards and gifts are not taxable to the employee. See limits.

Funding sources: Allowable funding sources include:

• State funds
• Federal funds: Awards must meet the requirements outlined in OMB Circular A-21.
• Other funds: Fund guidelines must allow award expenditures. If a fund's guidelines are more restrictive than UCSD policy, the fund policy prevails.

Payment:

• For reimbursement or direct payment, see How to Pay for a Recognition Award.
• For quantity purchases of gift cards, see guidelines.
• For the purchase of gift cards for use on campus, see How to Pay for Various UCSD Gift Cards.

Questions? Contact Robin Posner.