Purpose: 

This document is intended to provide clarification on common questions about the allowability of swag purchases via the University issued PCards. 

Definitions:

Swag – Products given away for free, often branded with the UMB Logo, for the purpose of promoting UMB or a UMB event

Brand Approval - The Office of Communications and Public Affairs must approve all uses of University logos, including each school logo before a project is printed, published, or produced

Further the Business of the State - A purchase will “Further the Business of the State” only when the purchase: 

a. Is authorized by law, State regulation, and/or by organizational policy and procedures, 

b. Will promote or support the lawful operation of the State agency on whose behalf the purchase is made; and 

c. May be paid by public funds that are currently available to the agency by appropriation, allocation, or other legislative authority (and, where applicable, by allotment) for the purpose of the purchase.

Allowability: 

In some cases, it is allowable to use the University issued PCard to pay for UMB swag. Purchases must comply with all aspects of the PCard User’s Guide, UMB policies and State policies.  It is essential that the purchase can be proven to “Further the Business of the State”. Promoting the University with branded merchandise is typically considered an allowable expense. Unbranded items purchased to promote an event that furthers the mission and values of the school might also be considered allowable. In either situation it is important to document the intent of the swag. 

Allowable Swag: 

Using UMB funds to pay for swag items may be appropriate in the following circumstances:

1.       Items for distribution at events where participant fees offset the cost (e.g., a conference).

2.       Giveaways to promote school spirit/encourage attendance at student events 

3.       UMB branded or event related giveaways that promote UMB mission and values

4.       Tokens of appreciation for distinguished guest speakers, focus group participants, etc. (non-employees)

5.       Giveaway items that are specified as allowable charges under a grant or contract.

6.       UMB branded items with a clear business use (i.e., notepads, pens, etc.)

7.       UMB branded attire intended to identify employees for the benefit of the University.  For example:

a.       Employees working a UMB table at a recruitment fair

b.       Employees representing UMB while working to serve the neighboring communities

c.       Employees canvassing to collect research data/recruit study participants

Unallowable Swag: 

Typically swag purchases are not appropriate when the recipients are employees, and the item does not have a clear business use.  For example:

1.       Giveaways to encourage attendance at optional work events

2.       Employee appreciation gifts/prizes

3.       Party favors at holiday/retirement gatherings 

PCard holder and/or department will be expected to reimburse UMB if they are unable to define the business purpose of the swag. 

Audit Scrutiny/Documentation: 

Itemized documentation is required for every PCard transaction (see User’s Guide Section 5.2). Swag items may be interpreted by auditors as “personal use items” or “gifts” which are explicitly prohibited (see User’s Guide Section 3.5.B), therefore, it is good business practice to take extra effort ensuring swag purchases are well supported. Including a narrative that defines the business purpose of the swag is suggested. Both the cardholder and reviewer are expected to be able to explain what was purchased and why if questioned.

Brand Approval and Resources: 

Consult with The Office of Communications and Public Affairs before pursuing branded swag. The Office of Communications can assist you with brand approval and identifying a vendor who is best equipped to produce the UMB merchandise that you need. Tips and guidance on how to purchase sustainable swag has been made available through the Office of Sustainability. Use this link to learn more.  

PCard Limits: 

Before moving to production, verify that the total charge does not exceed the $4,999 single transaction limit. If orders will be placed for multiple items for the same event/promotional purpose and the total will exceed $4,999 the PCard may not be utilized; contact SSAS for a Purchase Order.  

When in doubt, ask!

Direct questions to the PCard Admin Team  or Management Advisory Services