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Gift Cards and Near Cash Items:

Incentives such as gift cards and other near cash items (e.g. bus passes, train passes, etc.) can present challenges in adequately safeguarding and sufficiently supporting costs associated with the issuance of these incentives.

Policies and Procedures are required to be in place to safeguard gift cards and similar near cash items funded with grant funds, regardless of the funding stream. In order to sufficiently support these types of grant-funded costs, the elements listed below should be included in a grantee's gift card and other near cash items policy:

• Gift cards and near cash items must be maintained in a secure location.
• Access and issuance of gift cards and near cash items is limited.  Positions/individuals authorized to access and issue gift cards and near cash items should be documented.
• Gift cards and near cash items should be inventoried and reconciled on a regular basis.
• The balance of gift cards and near cash items on hand must equal the gift cards and near cash items authorized and obtained.  If a shortage is determined, it must be reported to organization's financial officer immediately.
• Gift cards and near cash items must be used for the purposes represented and budgeted for in the grant application.
• Gift card and near cash item distribution must be adequately documented.  Documentation should include the following information at a minimum:
• Date of distribution
• Printed name and signature of person issuing disbursement
  
• Printed name and signature of person authorizing disbursement
  
• Recipient Name (printed)
• Recipient Name (Signature)
• Amount of gift cards and near cash item
• Purpose of payment
  

Grant recipients and subrecipients must keep documentation to support all reported expenditures on file and provide it to PCCD upon request. PCCD will request this documentation when monitoring grantees for compliance. 

Should you have any questions regarding this or any other similar financial issues, please email the PCCD Grants Management resource account at RA-PCCDGrantsMgmt@pa.gov or you may also contact the PCCD fiscal contact listed on your grant in Egrants.