Guidelines Regarding Gratuities from University Suppliers Procure to Pay Services Updated 2/1/2012 Table of Contents

Table of Contents (Page 1 of 2) General Information Gifts of Negligible Value Valuable Gifts Using Gifts As Awards Meals & Entertainment Travel Expenses (Page 1 of 2) Travel Expenses (Page 2 of 2) Discounts to Ohio University Employees When A Gratuity is Offered Next

Table of Contents (Page 2 of 2) Gifts That Are Sent in the Mail Gifts of Clothing Free Gift With Your Order Winning A Contest Free Samples From A Supplier Supplier Sponsored Events At Conferences Ohio Revised Code Any Questions? BackNext

General Information It is state law. Don't accept or solicit gratuities from University suppliers! Gratuities are defined as gifts, entertainment opportunities, meals, discounts, etc., from University suppliers. It sounds simple, but following this directive can be difficult at times, particularly during the holiday season. Table of Contents

Gifts of Negligible Value Is it o.k. that a sales rep gave me a plastic ballpoint logo pen? –Yes, a good practice for dealing with gifts of minimal value, that are given infrequently, is to put the pen, calendar, etc. to business use, rather than use it personally. –Gifts of any significant value should not be accepted, nor should a pattern of gift-giving develop. Table of Contents

Valuable Gifts Is it o.k. to accept a valuable gift? –No. The bottom line: Don't accept gifts of value that can substantially or improperly influence your business decision – or might appear to have done so. What constitutes a valuable gift? –The law does not provide a dollar amount for such “gifts of value” but here are some recent examples: A state employee was successfully prosecuted for accepting two hams (with a total value of $45) from a supplier with whom he did state business. He lost his job, paid a hefty fine, and did community service. Another state employee, who awarded approximately $30 million worth of business to various suppliers over the course of a year, was successfully prosecuted for accepting less than $1,000 worth of gifts from suppliers, over the course of that year (in the form of gifts and entertainment outings). Table of Contents

Using Gifts As Awards What if I plan on using the gift(s) as awards? –Though they used them as door prizes at an annual employee luncheon, a state employee was prosecuted for committing wrongful acts by accepting items such as: $25 restaurant gift certificates Tins of cookies Holiday gift baskets –Do not use supplier gifts to provide personal gifts to University employees. If you want to provide an employee award, buy it outright, per the guidelines provided in the University's Employee Recognition Policy (40.011).University's Employee Recognition Policy (40.011) Table of Contents

Meals & Entertainment Should I let a sales representative pay for my lunch or take me out to an entertainment event? –No. Do not accept personal invitations. Pay for your own meal / entertainment event. Table of Contents

Travel Expenses (Page 1 of 2) Is it o.k. for a supplier to pay for my airline tickets, hotel, or conference registration for an event or seminar? –That depends. All the following must be true, for it to be o.k.: All events being paid for are directly work-related. If you are interested in attending any extraneous entertainment events that are being offered at the conference, you should pay for those personally. The supplier’s offer could not be interpreted, by any reasonable person reviewing the event, as an attempt to influence your business decisions. Ask yourself: Am I in a position to influence a decision to buy from this supplier? Avoid accepting offers from suppliers when the offer might be interpreted as the supplier trying to influence your business decision. Also avoid accepting anything that provides personal benefit. Table of Contents

Travel Expenses (Page 2 of 2) What if I am to be a trainer or presenter, and the supplier offers to pay all my expenses in return? Again – that depends. –If the supplier is following through on a contractual agreement, then you may accept the offer. –If the conference registration fees, travel, meals, lodging, or related expenses being offered are not of such a character as to manifest (or appear to manifest) a substantial or improper influence upon you with respect to the performance of your job duties: You may accept the offer. In order to determine this, consider the source. Is the party making the offer doing, or seeking to do business with, the University? If the answer is NO, then you may accept the offer. –If the conference registration fees, travel, meals, lodging, or related expenses being offered are of such a character as to manifest (or appear to manifest) a substantial or improper influence upon you with respect to the performance of your job duties: only the conference registration fee waiver may be accepted, and then only if the supplier is waiving such fees for all presenters, and the request for the presentation is a valid request, and not a subterfuge for providing registration fees for University employees. Table of Contents

Discounts to Ohio University Employees Is it o.k. to take a discount being offered, to Ohio University employees, on my personal purchase? If the discount is being offered to all Ohio University employees, it can be accepted. Never accept a discount or gift being offered to you, particularly and personally, by a supplier hoping to influence your job-related decisions. Never accept, expect, or solicit special treatment or gifts from suppliers because you are in a position to help direct University business their way. Table of Contents

When A Gratuity is Offered Here are some guidelines to use during the holiday season, and throughout the year: –Do not accept gifts of value if they are sent to you. Return gifts that are left for you or sent to you. Let the supplier know that University employees cannot accept such gifts from University suppliers. When in doubt, always say no. –Report a supplier who makes you uncomfortable by offering extravagant gifts, or by continuing to offer gratuities despite your requests to the contrary. Call Procurement Services or the Internal Audit Office. A supplier who engages such practices can be reported to the Ohio Ethics Commission, and may be subject to cancellation of their purchase orders and contracts with the University.Internal Audit OfficeOhio Ethics Commission Table of Contents

Gifts That Are Sent in the Mail Keep all packaging materials, and use them to mail the gift back. Enclose a simple, polite note, explaining that as a University employee, you cannot accept gifts from University suppliers. Ask them not to send any more gifts. Keep a record of your actions. The department should make every effort to return the gift. However, if the gift is excessively large, heavy, or if it is perishable, and you have concerns about high shipping costs or decay, you may contact Procurement Services. Under no circumstances should a University employee accept and use such items personally, or give them to others as personal gifts. Table of Contents

Gifts of Clothing What about gifts of clothing, like a ball-cap, a t-shirt, etc.? The questions are the same : Is it a gift of value? Might it (or might it appear to) influence your business decisions? –A one-time gift of a simple cloth ball-cap may not be questioned, but a pricey leather jacket is definitely questionable. There are many possibilities in between these two extremes. –Do not let a pattern of gift-giving develop, even with lower-value items. Again: When in doubt, say no. Table of Contents

Free Gift With Your Order Sometimes, a University supplier sends a free gift with the shipment of the order. What should I do? –The simplest thing to do, if you have the option, is to opt out of the gift giveaway, at the time you place the order. –If a free item does come with your order, this item is associated with a University order and it is University property. It should be used for business purposes only – it should never be given to University employees for personal use. Table of Contents

Winning A Contest I entered a contest and won a prize from a University supplier. Is this o.k.? –Contest prizes are almost always gifts of value. But the question remains: Might the prize influence (or appear to influence) business decisions? –If you are someone who is involved in making, or might be involved in making, decisions to make University purchases from the supplier involved, do not enter the contest. If you have entered such a contest and do win the prize, do not accept the prize. Table of Contents

Free Samples From A Supplier What about accepting free samples from a supplier? –Free product samples can be accepted, if there is a legitimate business use for the sample, or a business purpose for evaluating the product. –Do not take the items home or put them to personal use. Table of Contents

Supplier Sponsored Events At Conferences Sometimes, at professional conferences, University suppliers will sponsor events such as meals, receptions, or open houses where food and beverages are served. Can I attend such events? –Yes. Paraphrasing Ohio Ethics Commission Opinion No , you are not prohibited from attending a meal, reception, or open house, at an educational or informational conference, if the meal, reception, or open house is of an ordinary, routine character, and all conference attendees are invited. Table of Contents

Ohio Revised Code Anyone who is in a position that requires them to select suppliers – be it for everyday buying with their Purchase Card, or for high dollar supplier awards as members of a selection committee – should read all the details at the Ohio Ethics Commission website. Ohio Ethics Commission website You can also contact the University's Internal Audit Office or Legal Affairs.University's Internal Audit OfficeLegal Affairs Table of ContentsAny Questions

Any Questions? Please contact us by sending an to: or you can call OHIO (6446). Back to Table of Contents