9.21 Apparel

Policy Information

Purpose and Summary

To provide policies and procedures related to the purchase of Apparel for official University business. The University is a public institution and has a fiduciary responsibility as stewards of public funds to exercise discretion to pay for these items and to document how each purchase serves a public purpose and benefits the University.

Source

Arizona Revised Statutes , including but not limited to §35-301
Arizona State Constitution, including but not limited to, Article 9 Section 7 
Internal Revenue Code

Scope

This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international.

Definitions

1. Allowable: Expenditures that are Reasonable, Business-Related, have adequate supporting documentation and a University Business Purpose and benefit, and are not prohibited by any policy or law, and are therefore payable from University funds. Note that not all Allowable expenditures are allowed on all funding sources.
2. Apparel: Articles of clothing (hats, jackets, pants, shirts, shoes and the like), safety gear (see FAQ 2), and Uniforms.
3. Business Purpose: A statement that justifies how an expense is appropriate and Reasonable, and how it supports and/or advances the goals and objectives of the University.
4. Business-Related: Ordinary and necessary expenses incurred to conduct University of Arizona business.  These expenses are for the primary benefit of the University over the benefit of an individual.
5. Personal: Expenses that are for the primary benefit of an individual over the benefit of the University. Refer to Misuse of University Assets Policy for additional information.
6. Reasonable: An expenditure is considered Reasonable if:
   1. The nature of the goods or services acquired, and the amount involved reflect the actions of a prudent person under the circumstances,
   2. The expenditure is appropriate given the mission of the University, and
   3. Reimbursement for, or direct payment of, the expenditure is not otherwise disallowed by any University policy.
7. Unallowable: Expenditures that are not Reasonable or Business-Related, lack a University Business Purpose and benefit, are Personal, or are prohibited by any policy or law, and are therefore not payable or reimbursable from any University funds regardless of payment method.

8. Uniforms: Item(s) of clothing meeting the Internal Revenue Service (IRS) definition of Uniforms. Such items are not taxable if they are given to employees. To meet the definition, and not be taxable as wages and reportable on the employee’s W-2:

   1. The clothing must be required to be worn in the performance of an employee’s assigned job duties, and
   2. The clothing cannot be adaptable to general usage as ordinary clothing.

   Note that being uniformly clothed does not make clothing meet the IRS definition of Uniforms. With or without the University logo, hats, jackets, pants, shirts, shoes and the like are called out specifically as adaptable to general usage as ordinary clothing and do not qualify for tax-free treatment if given to an employee.

Policy

1. Purchase of Apparel is only Allowable with a compelling Business Purpose that demonstrates wearing the prescribed Apparel item:
   1. Fosters public safety by making the employee identifiable to the public as a figure of authority or when the employee’s duties require access to property in an official capacity (e.g. law enforcement officers),
   2. Identifies employees in externally facing positions for security reasons (see FAQ 1),
   3. Maintains employee safety (see FAQ 2), 
   4. Prevents employee hardship where the nature of the job soils or destroys clothing more than normal wear and tear (e.g. painters, custodial, maintenance personnel), or
   5. Maintains standards of sanitation such as in the preparation of foods.
2. The University will follow applicable Internal Revenue Service rules that pertain to the tax treatment of employer-provided Apparel and Uniforms.
3. Apparel must be maintained in inventory and loaned to employees for on-the-job wear. The unit is responsible for the collection of loaned items upon termination of employment. Items maintained in inventory are not considered taxable income to the employee, but any items not returned as required become taxable as wages and reportable on the employee’s W-2.
4. For instances where maintaining an inventory is not possible, the unit must contact Financial Services to request an exception. Any exception granted will require approval by Financial Services and the unit’s dean and senior vice president.
5. Allowable Apparel, other than Uniforms, safety gear (see FAQ 2), and items maintained in inventory, is taxable as wages and reportable on the employee’s W-2.  
6. Purchase of Apparel for non-employee students is Allowable with a Business Purpose when it:
   1. Identifies the student as a member of an officially recognized University organization (e.g. marching band),
   2. Is required for University sponsored camps, competitions or performances, or
   3. Is required to be provided to student athletes.

Procedures

1. Refer to 9.01 Determining Purchasing Method to determine the appropriate purchasing method.
2. For instructions on documenting Business Purpose in UAccess Financials, refer to the Business Purpose Guide.

Object Code Usage

3. Use Object Code 5310 Clothing to record purchases of articles of clothing (hats, jackets, pants, shirts, shoes and the like) and associated services.
4. Use Object Code 5315 Safety Gear to record apparel that maintains employee safety (see FAQ 2).

Frequently Asked Questions

1. What are examples of Apparel that identifies employees for security reasons?
   University branded Apparel meets a security identification requirement when there is a need for the public or students to identify the wearer as a University employee. Examples include clothing required to be worn by employees providing services to the public, such as cashiering and food service, or working directly with students for specific events such as required on-field staff at athletic events, guides for tours, student recruiters, or those assisting with move-in days.
    
2. What are examples of Apparel that maintain employee safety?
   Apparel that maintains employee safety, also referred to as safety gear or personal protective equipment, is designed to protect the wearer’s body from injury or infection, and includes items such as coveralls, fire-resistant shirts, gloves, goggles, helmets, safety glasses, smocks, and vests. Safety gear is not adaptable to general usage as ordinary clothing.
    
3. What guidance is there for Apparel for employees in outreach and marketing roles who manage and attend events on behalf of the University?
   Marketing and outreach are not approved reasons to purchase Apparel for employees. Employees should be provided with a sample of acceptable attire to purchase individually.
    
4. Is Apparel for students who help at recruitment events Allowable?
   The purchase of Apparel for non-employee students is Allowable for a Business Purpose when it identifies the student as a member of an officially recognized University organization or is required for University-sponsored camps, competitions, or performances.
    
5. Is Apparel for identification of Commencement staff and volunteers at large public events such as Commencement Allowable?
   This would likely be Allowable based on FAQ #1 if the public needs to identify the wearer as a University employee.
    
6. Is Apparel for employees who deliver programs in local communities and schools Allowable?
   This would be Unallowable unless there is a safety or security element. Employees should be provided with a sample of acceptable attire to purchase individually.
    
7. Is Apparel for student groups that are part of the interdisciplinary Capstone, sponsored/funded by outside funds, Allowable?
   Any funds coming into the University, including sponsored funds, are considered University funds. Purchase of Apparel for non-employee students is Allowable with a Business Purpose when it identifies the student as a member of an officially recognized University organization or is required for University sponsored camps, competitions, or performances.

Related Information

Arizona Revised Statutes, including but not limited to §35-301
Arizona State Constitution, including but not limited to, Article 9 Section 7 
Business Purpose Guide 
Internal Revenue Code 
FSM 9.01 Determining Purchasing Method 
FSM 9.10 General Expenditure Policy 
Misuse of University Assets Policy
Reasonable Expense Guide

* Please note that sections titled Frequently Asked Questions and Related Information are provided solely for the convenience of users and are not part of the official University policy.