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Business
enterprises and vendors selling goods and services to the university
periodically provide rebates and other incentives to promote customer
loyalty, branding and purchase volume. Rebates in the form of checks are
normally processed by the Accounting Office with credits applied to the
originating department. Recently, some vendors have changed business
practices resulting in rebate check programs being replaced with
alternative cash equivalent and non-cash incentives including rebate cash
cards; debit cards; point award systems where points can be redeemed for
merchandise; hotel accommodations; conference registrations; gift cards;
and other incentives. These incentives directed at department personnel
may influence purchasing decisions and may not comply with applicable
procurement and income reporting policies. When such transactions occur
at the department level and are not coordinated with the Accounting or
Procurement offices, they may lack proper accounting controls and may
result in misstatement of the actual costs of goods and services to the
university.
It
is the policy of Northern
Illinois University,
the Accounting Office, and Procurement Services to discourage
participation in such program incentives. Instead, the lowest possible
purchase price should be achieved in coordination with Procurement
Services. When vendors offer such incentives or rebates, persons acting
on behalf of the university should request the cash value of the
incentive be sent directly to the university Accounting Office in the
form of a check. Any such rebates received by departments should be
transmitted to the Accounting Office. Individual employees are prohibited
from personally soliciting or accepting cash equivalent rebates or
non-cash gifts in accordance with the State Officials and Employees
Ethics Act . Similarly, individuals may not
solicit nor accept cash or non-cash gifts in the name of the university
or one of its departments without the review and establishment of proper
and effective accounting controls. Where alternative cash equivalent and
non-cash incentive programs exist with vendors (such as those described
above), persons are required to contact the Accounting Office to ensure
that the provisions of this policy have been met.
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