Question:
Gift cards were discussed at the last A/P seminar I attended. It is my understanding that they are not appropriate. It was also my understanding that the purchase of gift cards, to be used as "thank you" gifts was not to be done. Please advise.Response: Because student body funds are to benefit students as a group and not individuals, awards can be allowable but only if they are utilized as discussed below. We’ve taken this information straight from FCMAT’s Accounting Manual and Desk Reference which can be found on-line at fcmat.org if you do not already have a copy. Questions often arise about the giving of gifts, which has a personal as opposed to public character. Contrary to what often occurs in the field, gifts are not allowable, even if the amount is small, so this includes "thank you" gifts which you are asking about. Gift certificates are ordinarily characterized as gifts of public funds even when purchased for an event with a public purpose, because they confer a tangible private benefit on an individual. To avoid making a gift of public funds with gift certificates, ask merchants or individuals to donate gift certificates. Some school districts do allow gift certificates per board policy, and if that is the case in your district, that’s the answer to your question.
While some administrators may feel that the school site or district has a benefit from positive relationships established by sending gifts to students, parents, board members or others, the real public relations value is of primary benefit to the respective individual leaders involved, not to the school district itself as an institution. If students want to give gifts, use private funds, not public ones.
Awards
Education Code section 44015 authorizes awards to employees for exceptional contributions and to students for excellence. If items are intended as some form of employee or student award, it also requires the governing board to adopt rules and regulations concerning such awards. Such awards shall not exceed $200 unless a larger award is expressly approved by the governing board. Awards to community members are not considered authorized.
The governing board of a school district may make awards to employees who do any of the following:
Propose procedures or ideas that thereafter are adopted and effectuated, and that result in eliminating or reducing district expenditures or improving operations.
Perform special acts or special services in the public interest.
By their superior accomplishments, make exceptional contributions to the efficiency, economy, or other improvement in the operations of the school district.
The governing board of a school district may also make awards to pupils for excellence.
Thus, if a governing board adopts rules and regulations prior to any awards being made, a district or ASB can recognize superior accomplishments of any employee or student within the guidelines and provisions contained in the applicable district policies, rules and/or regulations. In the absence of applicable policies, rules and/or regulations, no district official can make the award and no one can legitimately purchase the award.
Life transition events such as birthdays, weddings, funerals, holidays and other similar circumstances can happen to anyone and so cannot be considered superior accomplishments, or merit an award.
Awards are often signified by letters of commendation, board resolutions, trophies, certificates, plaques, medals, badges, pins and the like, but may also be in the form of a gift certificate or a scholarship, within the statutory monetary limits and subject to IRS reporting requirements. The board may also approve an expenditure for flowers or candy as part of an award, which is appropriate only if the school district’s board policy on awards complies with the education code and IRS regulations.
Mugs, cards and similar items given to promote good will or positive relations between either the district and its employees or between staff and students, are not considered awards. The expenditure of public funds to promote positive employer-employee and/or staff-student relations does not serve a direct and/or substantial public purpose, so would likely violate the gift of public funds provisions contained in the California constitution.
5/29/08
