Accounting

Accounting jbarber32 Tue, 05/29/2012 - 15:23

General Information - Accounting

General Information - Accounting jbarber32 Tue, 05/29/2012 - 15:25

The following policies in this policy book provide guidance to schools, colleges, departments or units of the Institute regarding general accounting functions. Other functions such as Payroll, Accounts Payable, Purchasing, Budgets, Grants and Contracts and Equipment Management are in separate policy books in the policy library.

Account Number Structure

Account Number Structure
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 15:27
Policy No
1.2
Review Date:
Policy Owner
Controller's Office
Contact Name
Amy Herron
Contact Title
Controller
Contact Email
amy.herron@business.gatech.edu
Reason for Policy

The object of this procedure is to provide a basic explanation of the account numbering systems of Georgia Tech.

Policy Statement

General Guidelines
A thorough explanation of the Board of Regents Account number can be found in the Accounting Procedures and Instructions Manual - Revised (BPM-1) provided by the Board of Regents of the University System of Georgia. An explanation of values comprising the Chart of Accounts can be obtained by contacting the Accounting Services Department. The Board of Regents Chart of Accounts is authorized by the Board of Regents of the University System of Georgia. However, values for some segments of this account are internal to this Institution. As such, they gain authority from the Senior Vice President for Finance and Administration.

Georgia Tech currently uses four types of account numbers:

  1. Board of Regents Account Number
    The "official" account number of Georgia Tech is the Board of Regents (BOR) account number. This number is based upon account definitions in the Business Procedures Manual, Revised (BPM-1), of the University System of Georgia. It is, therefore, known at Georgia Tech as the Board of Regents (BOR) Account Number. This account number is used for all official reports and for the financial statements.
    The structure of the BOR Account Number is the same for all types of accounts (balance sheet, revenue, and expenditure); but the fields, or components of the accounts, vary according to the type of account. The differences will be shown graphically in pages 3 through 6 of this procedure.
  2. PeopleSoft Account Number
    The PeopleSoft Account Number is comprised of five Chart Field components that exist within the baseline of the PeopleSoft product. The SpeedType is a short, user-friendly number that is used primarily for data entry and inquiry. The Chart Field components and the SpeedType composition are described in pages 6 and 7 of this procedure.
  3. MSA Account Number
    In 1985, the Business Office at Georgia Tech implemented a new financial system for the General Ledger, Accounts Payable, and Purchasing functions. These functions were to be executed on an IBM mainframe computer and would operate under MSA software. In order to accommodate this software, a new account structure was developed, from the existing BOR account number. This new structure became known as the "MSA Account Number." The segments of the MSA number are derived from actual segments of the BOR number. The order and the length of the two account numbers differ. The Accounts Payable and Purchasing Departments operate with the MSA number.
  4. Old (Short) Account Number
    A numbering scheme that has existed for many years is now referred to at Georgia Tech as the "Old Account Number." This number is familiar to the campus because it is the shortest of the account numbers used, and because it has some meaning built into it. The Old Account number is used for such systems as Budgeting, Payroll, Grants & Contracts Accounting, Physical Plant Job Order System, and the Chemistry Stockroom.

Chart of Accounts Report
The Chart of Accounts report lists all account numbers. Translation programs are used to "link" each account to the others. These reports may be sorted by any of the four account types and within each account type they can be sorted numerically, alphabetically, or numerically by Organization within any one of the types.

Procedures

Board of Regents Account Segments
Following is a brief description of the segments comprising the Board of Regents Chart of Accounts.

  1. Fund Group
    Fund Group is an accounting entity with a self-balancing set of accounts consisting of assets, liabilities and fund balance.
    The Fund Groups used by departmental units are as follows:
    • Current Operating Fund Group
      • Fund Number 10 - Resident Instruction
      • Fund Number 21 - Georgia Tech Research Institute (GTRI)
      • Fund Number 22 - Continuing Education
      • Fund Number 23 - Center for Rehabilitation Technology (CRT)
      • Fund Number 24 - Advanced Technology Development Center (ATDC)
      • Fund Number 25 - Economic Development Institute (EDI)
      • Fund Number 40 - Restricted Funds - Resident Instruction
      • Fund Number 41 - Restricted Funds – GTRI
      • Fund Number 42 - Restricted Funds - Continuing Education
      • Fund Number 43 - Restricted Funds - CRT
      • Fund Number 44 - Restricted Funds - ATDC
      • Fund Number 45 - Restricted Funds – EDI
      • Fund Number 48 - Restricted Funds – Plant Funds
      • Fund Number 50 - Auxiliary Enterprises
      • Fund Number 95 - Student Activities
    • Loan Funds
      • Fund Number 70 - Loan Funds
    • Endowment Funds
      • Fund Number 75 - Endowment Funds
    • Plant Funds
      • Fund Number 80 - Unexpended Plant Funds
      • Fund Number 82 - Renewals and Replacements
      • Fund Number 85 - Investment in Plant
    • Agency Funds
      • Fund Group 90 - Agency Funds - Private Trust
  2. Function
    The Function is a group of related activities having as their purpose the accomplishment of a major service or program for which the institution is responsible. A two-digit, numeric code is used to designate this.
    • Functions and their numbering ranges can be categorized as follows:
      • Instruction 10-19
      • Research 20-29
      • Public Service 30-39
      • Academic Support 40-49
      • Student Services 50-59
      • Institutional Support 60-69
      • Operation and Maintenance of Plant 70-79
      • Scholarships and Fellowships 80-89
  3. Source
    The Source is a one-digit, numeric code that indicates the origin of revenue funds. Current codes are as follows:
    • Research Consortium Funds (State)
    • General or State Funds
    • Special Initiative Funding
    • Lottery Funds (State)
    • Departmental Sales and Services
    • Sponsored Operations
  4. Cost Center
    The Cost Center is a two-digit, numeric code that describes the organizational unit (usually a department) originating financial transactions.
  5. Sub-Cost Center
    The Sub-Cost Center is a three digit, numeric code used to divide specific cost centers into sub-sections. This allows for the identification of individual accounting units within a given cost center.
  6. Project
    The Project designator, a five-digit, alphanumeric code, identifies the sponsored project originating financial transactions. The exception, however, is that some non-sponsored Olympic accounts are also established with a project identifier of "Y."
  7. Sub-Project
    The Sub-Project is a three digit, alphanumeric code used to show the various sections into which a project has been divided. The sub-project allows a distinction between the main project and a sub/CO-project, while concurrently functioning as an indicator of project duration.
  8. Object
    The five digit, numeric Object Code provides a method of classifying expenditures according to what is received in return for the expenditures, e.g., personal services, travel, operating supplies and expense and equipment.
    Refer to Appendix A for a complete listing of object codes. The numbering of object codes proceeds as follows:
    • 50000-59999 Personal Services Expenditures
    • 60000-69999 Travel Expenditures
    • 70000-79999 Operating Supplies and Expense
    • 80000-89999 Equipment

Board of Regents Account Number Structure
Each Account is grouped into eight principal fields that may contain up to five characters as follows:

  1. Balance Sheet Account
    • Includes: Fund Group and Object Code
    • Example: 10-00-0-00-000-00000-000-11800
    • Fund 10: Resident Instruction
    • Object Code 11800: Cash in Bank - Demand Deposits
  2. Revenue Account
    • Includes: Fund Group, Function, Cost Center, Sub-Cost Center, and Source
    • Example 1: 10-00-0-00-000-00000-000-40310
    • Fund 10: Resident Instruction
    • Source (Account) 40310: State Appropriation - General
    • Example 2: 50-10-0-10-133-000-00000-40910
    • Fund 50: Auxiliary Enterprises
    • Function 10: Student Housing
    • Cost Center 10: Student Housing
    • Sub-Cost Center 133: Harris Dormitory
    • Source (Account) 40910: Dormitory Rents
  3. Expenditure Account (Financial Accounts)
    • Includes: Fund Group, Function, Source Code, Cost Center, Sub-Cost Center, Project, Sub-Project and Object Code
    • Example 1: 10-11-1-16-200-00000-000-71410
    • Fund 10: Resident Instruction
    • Function 11: Instruction
    • Source 1: General or State Funds
    • Cost Center 16: Aerospace Engineering
    • Sub-Cost Center 200: Instruction in Aerospace Engineering
    • Object Code 71410: Supplies and Materials
    • Example 2: 10-24-6-16-600-R56780-0A0-71410
    • Fund 10: Resident Instruction
    • Function 24: Sponsored Research
    • Source 6: Sponsored Operating Revenue
    • Cost Center 16: Aerospace Engineering
    • Sub-Cost Center 600: Sponsored Research in Aerospace Engineering
    • Project Number R5678: GTRC Project Number 5678
    • Sub-Project Number 0A0: No additional years of funding
    • Object Code 71410: Supplies and Materials

PeopleSoft Account Number
There are five Chart fields that comprise the number that exists with in the baseline of the PeopleSoft product. They are: Fund, Organization, Program, Subclass, Project and Account.

  1. Fund
    Fund identifies a balancing entity within a set of books in PeopleSoft. Each five-digit fund in PeopleSoft maps to a two-digit GEAC fund. In the new PeopleSoft fund structure, "roll-up" account numbers that end in "000" exist but are not currently used. These fund numbers will be used for reporting purposes after PeopleSoft GL replaces GEAC GL
    PeopleSoft Fund Number Description Legacy Fund Number
    Funds
    01000 GEAC Control Account 01
    10000 Cur Unrestricted - E & G N/A
    10010 Cur Unrestricted - Resident In 10
    11000 Cur Unrestricted - Other Org N/A
    11021 Cur Unrestricted – GTRI 21
    11022 Cur Unrestricted - Con Ed 22
    11023 Cur Unrestricted – CRT 23
    11024 Cur Unrestricted – ATDC 24
    11025 Cur Unrestricted – EDI 25
    12000 Cur Unrestricted – Auxiliary N/A
    12050 Cur Unrestricted – Auxiliary 50
    13000 Cur Unrestricted - Student Act N/A
    13095 Cur Unrestricted - Student Act 95
    20000 Cur Restricted - E & G N/A
    20010 Cur Restricted - Resident In 10
    20040 Cur Restricted - Resident In 40
    21000 Cur Restricted - Other Org N/A
    21021 Cur Restricted – GTRI 21
    21022 Cur Restricted - Con Ed 22
    21023 Cur Restricted – CRT 23
    21024 Cur Restricted – ATDC 24
    21025 Cur Restricted – EDI 25
    21041 Cur Restricted – GTRI 41
    21042 Cur Restricted - Con Ed 42
    21043 Cur Restricted – CRT  43
    21044 Cur Restricted – ATDC  44
    21045 Cur Restricted – EDI  45
    21048 Cur Restricted - Unexp Plant  48
    30000 Loan – Federal  N/A
    30070 Loan – Federal  70
    31000 Loan – Institutional  N/A
    31070 Loan – Institutional  70
     40000  Endowments – Endowment  N/A
     40075  Endowments – Endowment  75
     41000  Endowments - Term End  N/A
     41075  Endowments - Term End  75
     42000  Endowments - Quasi End  N/A
     42075  Endowments - Quasi End  75
     50000  Plant – Unexpended  N/A
     50080  Plant – Unexpended  80
     51000  Plant - Renewal & Replacement  N/A
     51082  Plant - Renewal & Replacement  82
     52000  Plant - Investment in Plant  N/A
     52085  Plant - Investment in Plant  85
     60000  Agency - Funds on Deposit  N/A
     60090  Agency - Funds on Deposit  90
     61000  Agency-Designated Scholarships  N/A
     61090  Agency-Designated Scholarships  90
     62000  Agency - Payroll Operations  N/A
     62090  Agency - Payroll Operations  90
  2. Organization
    Organization represents the cost and sub-cost fields of the BOR Account number. The Organization Number will be the same as the Accounts Payable number assigned to every organization. Organizations will be allowed to subdivide to meet reporting or hierarchy needs if necessary. However, if the organization is subdivided, budgeting and expending must be done at the sub-level
    All GTRI Organizations have been coded to begin with "0" for ease of identification and transition.
    Org Code Organization Name
    Some examples of Organization Numbers are listed below:
    221 Con-Ed Distance Learning
    320 Biology
    515 International Affairs
    764 Accounts Payable
    911 Real Estate & Space Planning
  3. Program
    The Program Code will replace the Function Code of the BOR Account number. It is used to identify expenses into major categories. The first digit of the Program Code will denote the major GAAP Categories. They are: 1 – Educational and General, 2 – Auxiliary, 3- Hospitals (i.e. Instruction, Research, Public Service, etc.) These codes are standardized and controlled by the Regents Central Office.
    Program Number Program Description
    Below are some examples of program codes
    11000 Instruction
    12000 Research
    15910 Intramural Athletics
    17700 Suspense Plant
    21000 Housing
  4. Subclass
    The Subclass Chart field is a partially enhanced, partially new account component. The legacy Fund Source, which was one character in length, could not adequately account for new or special allocations such as Research Consortium Funding, Special Initiative Funding , or Lottery Proceeds. The Subclass code will now be 5 digits in length to accommodate the needs of the Institution.
    When Subclass codes are assigned to a PeopleSoft Account Number only "State" Subclasscodes should be used with "State" fund numbers and only "Sponsored"Subclass codes should be used with "Sponsored (Restricted)" fund numbers. All Sponsored Subclasses begin with the legacy Fund Source identifier "6" for ease of transition.
    Subclass Code Sub-Classification Description State or Sponsored
    Below are examples of Subclass Codes
    11000 General Operations State
    11680 Undesignated Spons Research State
    12000 Research Consortium State
    14000 Lottery Funds State
    41000 DS & S - General Departmental Sales and Service
    63000 Sponsored Operation - Local Sponsored
    63439 Fed Flow - NASA Sponsored
    64010 Georgia Tech Foundation Sponsored
    64100 Sponsored Private Sponsored
    64050 Georgia Tech Research Corp Sponsored
  5. Account
    The account chart field will equate to balance sheet, revenue and expenditure object codes in the BOR account number.

Speedtype
The five Chart fields described make up a very complex baseline number. To simplify the use of the PeopleSoft General Ledger, a shorter number called a SpeedType was developed to "point" to the baseline number. To access or input account information within the PeopleSoft system, the user need only know the SpeedType.

Balance Sheet and Revenue Accounts
The Speed Type number for balance sheet accounts contains the letter Z followed by the existing Old Account Number (example: Speed Type Number Z1011800 = the old Account Number 10-11800).

Expenditure Accounts
Expenditure SpeedTypes vary in length from 7 to 9 digits depending upon the type of account. Expenditure SpeedTypes are comprised of the following digits:

  • High level organization identifier (1 – 3 digits).
    Note: All GTRI projects will begin with the Organization Identifier "0" and are followed by the entire Old Account Number.
  • High level fund source identifier (1 digit from MSA and BOR Account Numbers)
  • Portion of the existing Old Account Number (3 or 5 digits)
    Note: All Con Ed, EDI, ATDC, POD, and Student Activity Expenditure SpeedTypes will use all five digits. Plant Funds (Renewal & Replacement and Unexpended Plant) will use the alpha characters A = Renewal and Replacement and P = Unexpended Plant Funds followed by the last 4 digits of the Old Account Number (example: Speed Type Number 9004A7108 = the Old Account Number AX-87108). All other organizations will use the last 3 digits in their Expenditure Speed Types.

Restricted Fund Accounts
The Restricted Fund Speed Type is the same as the Old Account Number.

Agency Fund Accounts
The Agency Fund Speed Type Number consists of the following:

  • 3 Digit Organization Number
  • 1 Digit Source of Funds Number (from MSA and BOR Account Numbers)
  • 5 Digit Cost and Subcost Number (The Cost and Subcost Number is derived from the BOR Account Number)

Examples of SpeedTypes:

Org Identifier Fund
Source
Old Account Number Portion
7631123 Accounting Services
7 6 3 1 1 2 3    

Organization Identifier: 763 (Accounting Services)
Fund Source: 1 (State)
Old Account Number Portion: 123 (The old account number is I-71-123)

Org
Identifier
Old Account Number Portion
0A1004136 USAF/Eglin AFB (GTRI)
0 A 1 0 0 4 1 3 6

Organization Identifier: 0 (GTRI)
Fund Source: N/A
Old Account Number Portion: A-100-4136 (Use entire old account number)

Org Identifer Fund
Source
Old Account Number Portion
290610606 Army Intergovernmental (EDI)
2 9 0 6 1 0 6 0 6

Organization Identifier: 0 (GTRI)
Fund Source: N/A
Old Account Number Portion: A-100-4136 (Use entire old account number)

Org Identifier Fund
Source
Old Account Number Portion
1606538 Daniel Guggenheim Endowment
1 6 0 6 5 3 8    

Organization Identifier: 160 (Aerospace Engineering)
Fund Source: 6 (Sponsored)
Old Account Number Portion: 538 (The old account number is E-16-538)

Cash Receipts and Accounts Receivable

Cash Receipts and Accounts Receivable jbarber32 Tue, 05/29/2012 - 16:47

Cash Handling Procedures

Cash Handling Procedures
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 16:56
Policy No
1.4.4
Review Date:
Policy Owner
Bursar’s Office
Contact Name
Gloria J. Kobus
Contact Title
Bursar
Contact Email
gloria.kobus@business.gatech.edu
Reason for Policy

This procedure provides general guidelines for the handling of cash receipts by campus units.

Procedures

Each department/unit is responsible for the funds it receives for the Institute. Cash receipts must be officially recorded on a cash register, approved validating equipment, or in official pre-numbered receipt books. If the receiving location receives an average of $250 per day in cash or checks through the mail, mail receipts should be listed on a checks received log form by someone other than the person who prepares the deposit slip.
The list should be updated with the number of the deposit slip which includes the checks on the list.
All checks in payment of amounts due the Institute must be made payable to "Georgia Institute of Technology." Checks should not be made payable to departments, department heads, or any Institute officials or employees designated by name. If checks are received with the payee improperly designated, but yet deemed acceptable for deposit to Georgia Tech, they should be appropriately endorsed as payable to Georgia Institute of Technology so that they can be properly endorsed to the credit of the Institute by the Bursar. If checks of a repetitive nature are received without the proper payee designation, the drawer should be informed to make future checks payable to "Georgia Institute of Technology."

Separation of Duties
Duties of employee should be appropriately separated between the receiving of Institute receipts and the record keeping and preparation of deposits with the Bursar's Office. No one person should be responsible for all these functions.

Custody and Safekeeping of Receipts

  1. Department heads should make certain that proper safekeeping facilities are available and that proper safeguards are taken to protect Institute funds until they are appropriately deposited with the Bursar's Office or as otherwise designated. Cash or checks payable to the Institute should never be transmitted through campus mail. The number of employees having access to Money stored in a department or unit should be limited. Cash should not be left unsecured overnight. If unusually large sums are on hand after normal hours, arrangements should be made for use of a night depository. A security officer may be requested to accompany the deposits to their destinations.
  2. Cash register procedures should be prepared by departmental personnel in the form of written documentation and approved by Accounting Services. These procedures should contain over-ring documentation, documentation of change fund counts by cashiers, proper check-out policies and documentation, cash register tape retention plans, and other policies as deemed necessary in each situation by management. Cash register tape retention practices and proper references of deposits to daily cash register totals are subject to review and/or audit by authorized personnel in the General Accounting Department or the Internal Audit Department.
  3. Locations which operate cash registers or have average daily receipts over $250 should prepare a daily cash report. This report should include receipt numbers used and/or register totals, amount to be deposited, and cash overages and shortages. These reports should be retained in date order in the receiving location for a period of three years. Receiving locations which currently have cash reconciliation forms which contain the same basic information may continue to use them.

Daily Cash Deposits

Daily Cash Deposits
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 16:50
Policy No
1.4.1
Last Revised:
Review Date:
Policy Owner
Bursar’s Office
Contact Name
Trina Hall
Contact Title
Assistant Director - Student Account Services
Contact Email
trina.hall@business.gatech.edu
Reason for Policy

To provide guidance to schools, colleges, departments or units of the Institute as it relates to depositing funds received.

Policy Statement

Normally, all funds received by a unit should be deposited no later than the next business day following the date of receipt. For instances in which a unit receives small amounts of cash or checks (total less than $100) which would not warrant a daily trip to the Bursar's Office, the funds may be held no more than five business days. Each unit must establish operating procedures to ensure compliance with the daily or weekly deposit requirements. All deposits should be hand delivered to the Bursar's Office in order to comply with the twenty-four hour deposit requirement. The Bursar's Office is open daily from 8:30am to 4pm.

There are a limited number of departments on campus who have been authorized by the Institute to transmit cash to the bank for their department. Although they do not go through the normal process, they are still responsible for submitting information related to funds received to the Bursar’s Office so it can be posted to the Institute’s ledger.

All checks payable to Georgia Institute of Technology must be deposited to the Institute’s bank account. Funds should never be deposited to an individual’s bank account or to a bank account which has not been specifically authorized by Treasury Services as belonging to the Georgia Institute of Technology. Checks and cash must be kept in secure locations at all times.

Scope

This policy applies to all schools, department, and units of the Institute.

Procedures

Transmittal Cash to Bursar’s Office
The Deposit Remittance Form should be used as a transmittal sheet for deposits. Forms are available from the Bursar's Office. These forms may be copied for use by units at Georgia Tech.

Form Instructions

SECTION ONE

  1. Go to Page 2 of form and enter check date, check number, remitter's name, amount, and total amount of checks listed.
  2. Go to Page 1 of form
  3. Enter today's date on Page 1.
  4. Enter total amount of Checks listed from Page 2.
  5. Enter total amount of Checks listed on attachment sheets, if applicable.
  6. Enter total of all Checks.
  7. Enter total of any Credit Cards (authorized units only).
  8. Enter total of any Currency.
  9. Enter total of any Coin.
  10. Enter total amount to be deposited.

SECTION TWO

  1. Enter brief description of deposit (30 characters max).
  2. Enter Project Number and Account to which funds should be deposited.
  3. Distribute amount to be deposited for each Project/Account combination.
  4. Enter total distribution amount for this deposit. This figure must be equal to the total of the deposit.

SECTION THREE

  1. Describe the source of funds and/or provide an explanation of the deposit.

SECTION FOUR

  1. Enter signature of the person who prepared deposit transmittal.
  2. Enter the telephone number of the person who prepared the deposit transmittal.
  3. Enter printed name of the person who prepared the deposit transmittal.
  4. Enter title of the person who prepared the deposit transmittal.
  5. Enter the name of the department transmitting the deposit.
Forms
Responsibilities

Campus Schools, Colleges, Departments or Units are responsible for timely remittance of funds to the Bursar’s Office and establishing operating procedures to ensure compliance with the daily or weekly deposit requirements

The Bursar’s Office is responsible for timely remittance of funds to the Bank

Controller’s Office is responsible for timely reconciliation of the Institute’s Bank Accounts

Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
10-03-2014 Controller’s Office Minor updates to contacts, verbiage, etc. Policy reassigned to Bursar’s Office

Gift Deposits

Gift Deposits
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 16:53
Policy No
1.4.2
Last Revised:
Review Date:
Policy Owner
Controller's Office
Contact Name
Amy Herron
Contact Title
Controller
Contact Email
amy.herron@business.gatech.edu
Reason for Policy

To provide guidance to schools, colleges, departments or units of the Institute as it relates to receiving and depositing gifts of funds to the Institute.

Policy Statement

Georgia Tech requires all donors to make gifts to Georgia Tech payable to the Georgia Tech Foundation Inc., a charitable corporation that receives and manages contributions made for the benefit of Georgia Tech. The Foundation is a 501(c)(3) organization, qualified to receive tax deductible contributions under the Internal Revenue Code. Anyone soliciting support for the Institute should request that gifts be made to the Georgia Tech Foundation Inc., rather than the Institute.

Scope

This policy applies to all schools, colleges, departments, and units of the Institute.

Procedures

Gifts Payable to Georgia Tech
All checks and securities intended as gifts to the Georgia Institute of Technology should be routed to the Office of Development for acceptance and acknowledgment. Those funds should then be deposited into the Institute's bank account. If related documentation indicates the donor intended to direct the gift to the Foundation, the funds will be transferred after appropriate review. No attempt should be made to deposit a check to any entity other than the Payee. Under no circumstances should a check be modified to change the Payee.

The primary exception to this policy is for gifts of equipment or other tangible property which may more effectively be made directly to the Institute. However, even gifts of equipment or other tangible property are to be reported to and acknowledged by the Office of Development.

It is the policy of the University System of Georgia Board of Regents (BOR) that all gifts to the Institute exceeding $100,000 in value must be officially accepted by the BOR. Conditional acceptance and acknowledgement of gifts, however, may be issued at the discretion of the Vice President for Development and his/her designee.

Gifts Payable to the Georgia Tech Foundation (GTF)
All checks received at the Institute but made payable to the Georgia Tech Foundation (GTF) should be forwarded via campus mail to the GTF office via mail code 0182.

If related documentation indicates the donor intended to direct the gift to Georgia Tech, the funds will be transferred after appropriate review. No attempt should be made to deposit a check to any entity other than the Payee. Under no circumstances should a check be modified to change the Payee.

Responsibilities
  • Campus Schools, Colleges, Departments or Units are responsible for notifying the Office of Development in advance of any gifts that are intended for Georgia Tech.
  • The Office of Development is responsible for accepting and acknowledging any gifts made to Georgia Tech.
  • Controller’s Office is responsible for ensuring all Institute gifts are properly reported on the Institute’s books.
  • The Property Control Department is responsible for ensuring gifts of equipment or tangible property are properly identified and added to the Institute’s capital asset records.
Enforcement

To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Hotline, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
1-07-2021 Controller's Office Updates to verbiage
10-03-2014 Controller’s Office Updates to verbiage

Departmental Sales and Services (DSS)

Departmental Sales and Services (DSS)
Type of Policy
Administrative
abruneau3 Fri, 04/18/2014 - 15:18
Policy No
1.11
Last Revised:
Review Date:
Policy Owner
Controller's Office
Contact Name
Amry Stanley
Contact Title
Financial Compliance Program Manager
Contact Email
amry.stanley@business.gatech.edu
Reason for Policy

This policy addresses accounting requirements for Departmental Sales and Services (DSS) charges and enables the Central Office Units and Campus Units to easily identify carry forward eligible funds. This policy also helps to ensure Institute and Board of Regents (BOR) policy requirements for Service Centers and Departmental Sales and Services funds are met.

Policy Statement

Overview
Georgia Tech has accounting requirements related to Departmental Sales and Services (DSS) funds and the ability to carry eligible funds forward in the next fiscal year. DSS accounting in the Georgia Tech financial system requires DSS driver worktags to correctly point to a non-lapsing fund which then allows campus units to carry forward eligible funds. Certain requirements must be met by the unit to carry forward funds. DSS accounting also requires specific revenue ledger account and revenue category (RC) codes to be used for Quasi/Internal revenue (includes GT Affiliates), revenue External to GT and GT Affiliates and revenue External Sponsored Grants/Awards. The ability to carry forward funds enables revenue centers to better manage their operations and plan ahead for future commitments. Financial administrators and managers are responsible for managing carry forward funds for their unit.

Exclusions
Revenue and expenses for continuing education program fees and sales support program costs are tracked in DSS fund (FD) worktag FD14000. However, management of continuing education fees and costs are excluded from this policy.

Revenue and expenses for study abroad program charges are tracked in DSS fund worktag FD14100. Since study abroad programs must be managed according to section 21.0 of the University System of Georgia’s Business Procedures Manual (BPM), they are excluded from this policy.

Funds and Balancing Units
To ensure compliance with University System of Georgia (USG) and state audit requirements, DSS activity is required to be established using a fund worktag in the FD14xxx range. The Balancing Unit (BU) worktag should be used to maintain carry forward balances for DSS. For more information on balancing units, please visit the DSS Knowledge Article.

Fund and Balancing Unit worktags are assigned to the DSS Driver Worktag (i.e., Designated or GTRI Charge Code) as a Related Worktag at setup. This will ensure these values are associated with the operational transaction or journal when the worktag is assigned. Revenue Categories and Ledger Accounts For revenue to be tracked in a DSS fund (FD14xxx), at least 50% of the revenue source must be from external sources (e.g., student, faculty, staff, general public, grantors, other institutions/agencies, etc.). If less than 50% of the revenue source is from external sources, the activity must be tracked in FD10600 (Other General – Education and General) using Class Code CL11305 (Other General – No Fringe). FD10600 is a lapsing fund and activity tracked in this fund cannot be carried forward into the next fiscal year.

Quasi/Internal and External DSS revenue must be distinguished in the financial system for reporting purposes. This is accomplished by the use of specific revenue categories and revenue ledger accounts. DSS revenue is broken down into three categories:

  • Quasi/Internal (includes GT Affiliates)
  • External to GT and GT Affiliates
  • External Sponsored Grants/Awards

For more details on DSS revenue categories and accounts, please visit the DSS Knowledge Article.

Split Funded Transactions
When DSS activities are charged to multiple driver worktags (i.e., Designated, Gift, Grant, etc.), the revenue recognized by the service unit should be allocated to the appropriate DSS revenue categories and ledger accounts based on the percentage each driver worktag is paying for the service.

Lapsing Funds Exemption
Departmental Sales and Services are exempt from the state law concerning Lapsing Funds. Therefore, DSS surplus balances may be carried forward into the next fiscal year if certain requirements are met. The requirements per section 2.2.1 of the University System of Georgia’s Business Procedures Manual (BPM) (modified for GT financial system terminology) are as follows:

  • The activity mus generally be self-supporting
  • The activity should not normally use state-appropriated or other general operations funds
  • Revenue and associated expenses for each DSS activity should be readily identifiable; e.g., by class, cost center, driver worktag, balancing unit, etc.
  • At least 50% of the revenue source must be from external sources; e.g., student, faculty, staff, general public, grantors, other institutions/agencies, etc.

Salaries and the accompanying fringe benefits should be charged to each DSS driver worktag in proportion to the effort of employees providing the goods or services for that activity.

The Office of Grants & Contracts Accounting will provide assistance as needed in confirming that the above requirements for service centers have been met.

General Operations vs. DSS Funds
DSS funds are in a separate fund category from General Operations Funds per the University System of Georgia. Funds in distinct categories cannot be combined and their balances cannot be used to offset balances in the other fund. Therefore, a surplus in a DSS fund or in a General Operations fund cannot be used to cover a deficit in the other fund. DSS funds/balancing units with a deficit at year-end are required to have a funding plan to clear the deficit in the next fiscal year(s). This plan should be documented and retained in the unit.

Contact Information
For assistance with this policy, please enter a ServiceNow request at www.services.gatech.edu > Financials > Financial Accounting. Specific questions can also be directed to the groups below as needed.

  • Budget Office - Questions related to DSS budgeting should be emailed to the units Budget Analyst.
  • Financial Accounting (Controller’s Office) – Questions related to DSS revenue categories, revenue ledger accounts and DSS accounting.
  • Grants (Grants & Contracts Accounting) – Questions related to Georgia Tech “Resident Instruction” Service Centers
Scope

This policy applies to all Georgia Tech staff, faculty, and researchers who generate revenue from Departmental Sales and Services.

Policy Terms

Departmental Sales and Services (DSS)
Transactions generated from the sales of goods and services by one campus unit to another campus unit or to an entity outside of Georgia Tech.

Quasi/Internal Revenue
Quasi/Internal revenue is defined as income from sources internal to the Institute. DSS occurs when one campus unit (service unit) provides goods or services to another campus unit (receiving unit) and subsequently charges the receiving unit for the goods or services. The service unit books revenue to recognize income for the goods or services provided and the receiving unit is charged an expense to recognize the cost of the goods or services received.

DSS Revenue from External Sponsored Grants/Awards
DSS revenue earned from External Sponsored Grants is defined as income where the funding source is external to the Institute and its affiliated organizations. Because the Institute recognizes grant revenue based on expenses as part of the monthly closeout process, revenue from DSS activities charged to sponsored grants must be recognized by the unit as Quasi/Internal revenue. This will ensure revenue is not double counted for financial reporting purposes.

DSS Revenue from Entities External to GT and GT Affiliates
DSS revenue earned from entities External to GT and GT Affiliates is defined as income from sources external to the Institute and to its Affiliated Organizations.

Carry Forward or Non-Lapsing Funds
Funds appropriated or collected that do not lapse and are not required to be returned to the State if balances remain unexpended and not contractually obligated at year-end per State of Georgia Official Code of Georgia Annotated (O.C.G.A.) 20-3-86 a. These funds can be moved from one fiscal year into the next fiscal year for expenditure if all State of Georgia, USG, and Georgia Tech requirements for carrying forward funds have been met.

Lapsing Funds
Funds appropriated or collected that lapse and must be returned to the State if balances remain unexpended and not contractually obligated at year-end per State of Georgia O.C.G.A. 45-12-89. These funds cease to be available to the Institute at this time.

Procedures

Campus Units
Campus units will utilize the new financial system structure (i.e., Driver Worktags, Revenue Categories, Ledger Accounts, Balancing Units, reports, etc.) for DSS to more easily identify revenue and carry forward funds.

Responsibilities

Campus Unit
The unit is responsible for following the guidelines in this policy as well as initiating requests to set up new DSS Designated and balancing unit worktags. The unit is also responsible for reconciling transactions in the DSS worktag and creating and maintaining a funding plan for deficit balances.

Budget Office
The Budget Office is responsible for setting up DSS Designated and Balancing Unit worktags and working with campus units to ensure eligibility to carry forward DSS funds is met.

Controller’s Office
The Controller’s Office is responsible for working with campus units as it relates to DSS accounting and ensuring campus units understand the policy.

Policy History
Revision Date Author Description
12-3-2013 Controller's Office and Budget Office Minor revisions to verbiage
3-26-2014 Controller's Office and Budget Office Updated document exclude GTPE revenue from this process. Minor revisions to verbiage. Updated Procedures section.
9-22-2022 Controller's Office and Budget Office Editorial updates for Workday implementation
6-29-2023 Controller's Office Updated exclusions for continuing education and study abroad; updated carry forward and lapsing funds definitions, updated policy layout.

  

 

 

GT Foundation Awards

GT Foundation Awards jbarber32 Tue, 09/04/2012 - 15:47

GT Foundation Award Accounting

GT Foundation Award Accounting
Type of Policy
Administrative
jbarber32 Thu, 05/31/2012 - 09:24
Policy No
1.8.1
Last Revised:
Review Date:
Policy Owner
Controller's Office
Contact Name
Amy Herron
Contact Title
Controller
Contact Email
amy.herron@business.gatech.edu
Reason for Policy

To provide guidance to schools, colleges, departments and units of the Institute as it relates to the accounting for grants awarded to the Georgia Tech Foundation (GTF) and administered by the Institute.

Policy Statement

This policy provides provide guidance to schools, colleges, departments and units of the Institute as it relates to the accounting for grants awarded to the Georgia Tech Foundation (GTF) and administered by the Institute.

Management of GTF and Financial Aid Projects

GTF and Financial Aid projects are managed by the Accounting Services Department. All other sponsored awards (including sub-projects) are managed by the Office of Grants and Contracts Accounting. GTF awards are handled in the same manner as other sponsored projects) as described in the Policies and Procedures referenced below.
Grants & Contracts: General Information
Grants & Contracts: Plan-Confirmation
Grants & Contracts: Undesignated Sponsored Accounts
Grants & Contracts: Unallowable Expenses
Grants & Contracts: Unbillable Sponsored Projects
Grants & Contracts: Cost Transfer Requests

Grants & Contracts: Write-off Requests
Grants & Contracts: Project Set Up in Grants Master
Grants & Contracts: Project Close-out in Grants Master
Grants & Contracts: Establishing a Sub-Project Account

Grants & Contracts: Sponsored Project Budget Revisions

Allowable Expenditures
All allowable expenditures relating to the grant will be processed through the Institute. Any expenditures determined to be unallowable by the Institute, but allowable to the grant, may be paid directly by the Foundation. Any such charges must be communicated to the Controller’s Office where a memo entry will be made to the project accounting records in order to properly accumulate and report costs incurred.

Scope

This policy applies to all schools, colleges, departments, and units of the Institute.

Forms
Responsibilities
  • Campus Schools, Colleges, Departments or Units are responsible for managing GTF funds assigned to their unit.
  • The Controller’s Office and Bursar’s Office are responsible for overseeing GTF funds allocated to the Institute.
Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
08-2013 Policy Library Fixed Unbillable Sponsored Projects link
10-03-2014 Controller's Office Updates to verbiage. New gift transmittal form

Georgia Tech Foundation Award Project Number Assignment

Georgia Tech Foundation Award Project Number Assignment
Type of Policy
Administrative
jbarber32 Thu, 05/31/2012 - 09:28
Policy No
1.8.2
Last Revised:
Review Date:
Policy Owner
Controller's Office
Contact Name
Amy Herron
Contact Title
Controller
Contact Email
amy.herron@business.gatech.edu
Reason for Policy

To provide guidance to schools, colleges, departments and units of the Institute as it relates to establish project numbers for grants awarded to the Georgia Tech Foundation (GTF) and administered by the Institute.

Policy Statement

This policy provides provide guidance to schools, colleges, departments and units of the Institute as it relates establishing new sponsored projects in the accounting records of the Georgia Institute of Technology (GIT) where the Georgia Tech Foundation (GTF) is the sponsoring entity. Effective February 1, 1999, all business transactions financed by GTF funds are to be processed through GIT in accordance with generally accepted business practices and processes; therefore, a GIT sponsored project is to be established for GTF awards. For additional information, see the Business and Finance – Foundation Funds section in the Policy Library for a complete description of the policies and procedures for Solicitation, Acceptance and Expenditure of Georgia Tech Foundation Funds.

Scope

This policy applies to all schools, colleges, departments, and units of the Institute.

Procedures

Project Establishment
The Controller’s Office is charged with the establishment of sponsored projects in accounting records of the Georgia Institute of Technology upon receipt of properly completed GTF Gift Request Form.

Upon receipt of a gift or budgetary allocation, the Georgia Tech foundation will establish a GTF account number for the funds. GTF will transmit the account number, dollar amount, restricted use of the funds, and any effective or expiration dates for the funds to the Controller’s Office, using the Gift Transmittal Form. All funds reported on this form will be budgeted in the “Other Memo” category. If specific budget details are required, the budget information should be entered on the second page of the Form using the spaces provided. The GTF Gift Request Form must be approved by authorized personnel at the Georgia Tech Foundation.

When gifts and/or awards are received initially by the operating units, a GTF Gift Request Form should be prepared by the unit and forwarded directly to the Foundation with all supporting documentation. Requests received by the Controller’s Office without a properly completed GTF Gift Request Form will be forwarded to the Georgia Tech Foundation for action.

Unit Notification
The unit responsible for management of the account will be notified of the GTF account number and the corresponding GIT project number This notification will also identify the available funding (budget), and any restrictions associated with the use of funds that are reported by the Foundation.

Sub-Projects
Sub-Projects that are required by the managing units should be established using the published procedure governing the establishment of sponsored Sub-Projects (Grants & Contracts: Establishing a Sub-Project Account).

GTF and Financial Aid sponsored sub-projects are managed by the Accounting Services Department. All other sponsored awards (including sub-projects) are managed by the Office of Grants and Contracts Accounting.

Responsibilities
  • Campus Schools, Colleges, Departments or Units are responsible for managing GTF funds assigned to their unit.
  • The Controller’s Office and Bursar’s Office are responsible for overseeing GTF funds allocated to the Institute. The Controller’s Office is also responsible for setting up GTF projects and sub-projects.
Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
10-03-2014 Controller’s Office Updates to verbiage. Title update

Non-Student Accounts Receivable

Non-Student Accounts Receivable
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 17:08
Policy No
1.6
Last Revised:
Review Date:
Policy Owner
Bursar’s Office
Contact Name
Gloria J. Kobus
Contact Title
Bursar
Contact Email
gloria.kobus@business.gatech.edu
Policy Statement

The Bursar's Office is responsible for billing and collecting for goods and services to external parties for units of the Institute such as IPST and Facilities.

Procedures

When requesting a billing, the college, department, or organizational unit must provide the following information on the Non-Student Invoice Request Form at this link: http://www.bursar.gatech.edu/sites/default/files/pdf/Non-Student_Invoice_Request.pdf

  1. Name of originating office
  2. Name and telephone number of contact person in originating office.
  3. Name and address of customer to be billed.
  4. Telephone number of customer (if possible).
  5. Detailed description of services to be billed including any supporting documentation – See below
  6. Dollar amount to be billed.
  7. Revenue/expense account to be credited
  8. PeopleSoft project #

Supporting Documentation
A purchase order, authorization letter from the company, bill of lading, and any other documentation that supports the validity of the bill meets this requirement.
Please send the Non-Student Invoice Request Form and the supporting documentation to NonStudentInvoicing@gatech.edu. It can also be mailed to the following adresss:

Bursar's Office
Attn:  Non-Student Invoicing
Suite 111 Lyman Hall
Mail Code: 0255

 

Accumulated Invoices Less than $25.00
Due to the cost of processing billings, charges should be accumulated until they reach a minimum of $25.00 per customer before being submitted for billing: However, these bills should not be accumulated for more than one calendar quarter without submission. Units having special requirements should contact the Bursar's Office at NonStudentInvoicing@gatech.edu for advisement.

Billings Internal to the Institute
Billings between or within departments of the Institute should not be forwarded to the Bursar's Office. Internal billings should be handled with journal entries.

Billing Disputes

If an invoice is disputed by the customer, the Bursar's Office will contact the originating department for verification/direction. Copies of all pertinent information and communications with the customer as needed will be forwarded to the office that originated the billing. The originating office will be requested to provide any information relevant to the dispute within a ten day period. At that point, the originating office should either authorize to reverse the billing entry, confirm that the invoice is correct, or provide details regarding modification of the original bill. The Bursar's Office will contact the customer with the information received from the originating office.

If the Bursar's Office does not receive a response from the originating office within 30 days, the revenue credited to the originating office will be reversed and all documentation will be returned to the issuing department.

Note: Disputed invoices which cannot be resolved through the process defined above will be handled as necessary by the Bursar with the appropriate parties. When necessary, collections and/or legal action may be taken to collect past due invoices.

Responsibilities

Units sending information to the Bursar's Office for invoices to be created are required to implement procedures internally to avoid accepting payment within the unit. Any such payments for invoices created by the Bursar’s Office received by the unit should be forwarded to the Bursar's Office for posting.  They should not be deposited through a Daily Cash Transmittal Form.

Policy History

 

Revision Date Author Description
March 2015 Bursars Office Update policy contact information
March 2018 Bursars Office Update contact information, Bursar's Office e-mail addresses, and forms

Petty Cash

Petty Cash jbarber32 Tue, 05/29/2012 - 16:57

Petty Cash Fund General Guidelines

Petty Cash Fund General Guidelines
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 16:58
Policy No
1.5.1
Effective Date:
Last Revised:
Review Date:
Policy Owner
Controller's Office
Contact Name
Amy Herron
Contact Title
Controller
Contact Email
amy.herron@business.gatech.edu
Reason for Policy

To provide guidance to schools, colleges, departments or units of the Institute as it relates to purchasing items and receiving reimbursement for such purchases via Petty Cash funds. This policy and procedure will detail the authorized use of petty cash funds and restrictions on purchases.

Policy Statement

Petty Cash Fund
A petty cash fund is used by campus departments to reimburse employees for small dollar purchases. Funds may generally be classified into one of two types:

  1. Departmental Petty Cash Funds
  2. Bursar's Office Petty Cash Fund

Allowable Transactions
The transactions are allowable using petty cash funds:

  1. Purchases for small dollar needs
  2. Purchases for which the goods are received at the time of purchase

Typical allowable transaction types include office supplies, lab supplies, telephone reimbursements, local parking reimbursements, mailing services, copy and photo services.

No single petty cash fund transaction should exceed $250. Reimbursement exceeding $250 must be made via the Institute’s Travel and Expenses system. For more information, please see policy 5.2.1.5 – Reimbursement for Purchases Made Using Personal Funds.

Unallowable Transactions
The following transactions and purchases are not allowed to be processed with petty cash funds:

  1. Items covered by State or Institute contracts
  2. Entertainment
  3. Travel reimbursements (meals, lodging, taxi, airfare)
  4. Per diem and fees and other service payments
  5. Gifts, awards, prizes
  6. Memberships
  7. Personal check cashing and loans
  8. Food, beverages, catering (for more information related to purchasing food, please see the policy 5.2.1.9 – Procurement of Group Meals for Employees, Students and Official Visitors.

Any items that are unallowable via the Institute's Purchasing department are also unallowable to be purchased using petty cash funds. Please see the Institute’s Allowable Cost Matrix at www.controller.gatech.edu/allowable-cost-matrix for additional information on allowable and unallowable Institute purchases. Also, items that are required to be purchased through the Purchasing department may not be purchased with petty cash funds even if the shipment of the item has been delayed or it is out of stock. Violations of petty cash policy may result in non-reimbursement or fund closure.

Scope

This policy applies to all schools, colleges, departments, and units of the Institute.

Policy Terms

Departmental Petty Cash Funds
Departments may request approval to establish departmental petty cash funds to reimburse petty cash expenditures. Change Funds are used to give change to customers when they are paying for goods or services. Please refer to "Departmental Petty Cash Fund Procedures" for specific information regarding departmental petty cash procedures or "Departmental Petty Cash Fund Checking Account Procedures" for specific information regarding petty cash checking account procedures.

Bursar’s Office Petty Cash Fund
Departments that do not have their own petty cash funds may use the Bursar's Office petty cash fund for reimbursement of petty cash purchases. Please refer to "Petty Cash Reimbursement Procedures" for specific information regarding the use of the Bursar's Office petty cash fund.

Procedures

Petty Cash Guidelines
Petty cash must be held in a locked cash drawer or locked cash box. (Security recommends a smooth metal finish box for fingerprinting purposes.) A primary key to the drawer or box must be held by the custodian while a secondary key should be held by the department head or delegate for emergency purposes.

In the event the fund custodian has a scheduled absence, a temporary custodian can be assigned by the department head. The funds must be counted in the presence of the authorized custodian before the leave period begins and again once the custodian returns. This procedure is used when the petty cash fund is greater than $200.

In the event the fund custodian has an unscheduled absence, a temporary custodian can be assigned by the department head. The funds must be counted in the presence of the department head or his designee before the funds are used. A similar cash count must be performed upon the return of the regular fund custodian. The department should maintain the cash count verifications until the next cash count is performed. This procedure is used when the petty cash fund is greater than $200.

The total amount of the petty cash fund should always equal the cash on hand plus any unreimbursed amounts. If the Department Head or Financial Services feel it is warranted based on circumstances surrounding a shortage, Internal Auditing may be contacted for investigation. Internal Auditing will notify Risk Management. If Internal Auditing determines the custodian was negligent in their duty to safeguard the petty cash, the custodian may be held liable for replacement of uninsured losses. Shortages exceeding $200.00 should always be reported to Internal Auditing.

Unannounced cash counts should be performed quarterly by someone other than the custodian. The individual should be selected by the Department Head, preferably not the same person each quarter. The cash count should be recorded on the Cash Count Form. The completed forms should be retained in a Departmental file. Unannounced cash counts may be performed by Internal Audit. Account balance verification will be performed at year-end by the Controller's Office.

Department petty cash "change funds" should be counted daily.

Petty cash funds should always be kept separate from other cash receipts. To discourage thefts, avoid dispensing money from the petty cash box in the presence of the person requesting money.

Where possible, keep locked box in limited access locked drawer, safe or file cabinet. Funds must be secured each time the custodian leaves the office. The keys to the box and file cabinet, safe, or drawer should be kept in the possession of the custodian, not left in desks or in the office overnight. The custodian and department head may be held jointly liable for uninsured losses that occur as a result of negligence.

In the event of a theft of petty cash funds, the custodian should immediately notify the Georgia Tech Police Department and the Internal Audit Department. Police Department incident reports will be distributed within three days of the theft to the Department Head, Risk Management, the Controller's Office, and Internal Auditing. The Internal Audit Department will communicate to the Controller's Office whether loss is insured or loss is a result of negligence.

Upon departure/termination of custodian or department head, keys to secured petty cash area must be returned to the appropriate departmental authority. A change of custodian requires submission of a new Petty Cash Fund Request/Maintenance Form. A final count and submission for replenishment should occur prior to the new custodian assuming responsibility. The new custodian receipts the cash at the Bursar's Office and signs Section Five of the new Petty Cash Fund Request/Maintenance Form.

Criminal Background Checks and Credit Checks
New Petty Cash Custodians are required to have criminal background check and credit check prior to becoming the custodian of any cash funds.

Existing Petty Cash Custodians as of October 1, 2010 are required to have a criminal check if they do not have one on file. Once the results of the criminal and consumer credit checks have been emailed to the department the email should be forwarded to accounting.ask@buisness.gatech.edu. If the employee does not pass the criminal and/or consumer credit check the department will need to submit criminal and consumer credit checks to the Office of Human Resources for the replacement custodian. The Petty Cash Fund Request/Maintenance form will need to be submitted to the Controller's Office for the new custodian. The department is responsible for the cost of the criminal and consumer credit check.

If an applicant is a current employee and the background investigation report reveals adverse information which constitutes grounds for termination, OHR will initiate the appropriate termination procedure. OHR’s Employee Relations unit will draft a formal letter to the employee notifying him/her of the circumstances. The formal letter will include the rationale for the actions taken and information regarding the employee's option to contest the accuracy of his/her background investigation report. The employee will be given an appropriate and reasonable amount of time to contest the accuracy of his/her background investigation report before formal termination is initiated.

Please also see OHR Policy 8.1 Pre-Employment Screening for further information on the background check process.

Reimbursement Requests
Please see Petty Cash Reimbursement Procedures, Departmental Petty Cash Fund Procedures, or Departmental Petty Cash Fund Checking Account Procedures for reimbursement requirements.

Forms
Policy History
Revision Date Author Description
10-03-2014 Controller’s Office Updates to verbiage

Petty Cash Reimbursement Procedures

Petty Cash Reimbursement Procedures
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 17:00
Policy No
1.5.2
Effective Date:
Last Revised:
Review Date:
Policy Owner
Bursar’s Office
Contact Name
Trina Hall
Contact Title
Assistant Director - Student Account Services
Contact Email
trina.hall@business.gatech.edu
Reason for Policy

To provide guidance to schools, colleges, departments or units of the Institute as it relates to reimbursement of items purchased that meet the criteria for being reimbursed via Petty Cash funds from the Bursar’s Office.

Policy Statement

Petty cash expenditures made by an individual in a department that has its own petty cash fund should be reimbursed via the petty cash fund in the department.

Petty cash expenditures made an individual in a department that does not have its own petty cash fund are reimbursed by the Bursar's Office. Please refer to "Petty Cash Fund General Guidelines" for specific information regarding allowable petty cash transactions.

Scope

This policy applies to all schools, colleges, departments, and units of the Institute.

 

Procedures

Reimbursement Procedures
Departments should submit a completed Petty Cash Replenishment/Reimbursement Request Form along with supporting documentation to the Bursar's Office within ten (10) working days following a purchase. If the reimbursement is needed during year end closeout, the reimbursement must be received by the published cutoff date for the Bursar’s Office. Failure to turn in receipts promptly may jeopardize reimbursement if the funding source has lapsed.

Reimbursement Documentation
The Petty Cash Replenishment/Reimbursement Request Form must include the following information and attachments:

  • Original of the vendor's customary receipt which includes:
    • Vendor name
    • Date of purchase
    • Items purchased (to be completed by department if not on receipt)
    • Price per item
    • Total price for the quantity received
  • Appropriate accounting distribution
  • Signature of the individual authorized to approve departmental purchases must be on the Petty Cash Replenishment/Reimbursement Request Form
  • Departments may require the individual purchaser to sign or initial the receipt(s)
  • A copy of the current signed monthly departmental self cash count, evidencing that a count has been performed within 30 days and is being completed in a manner consistent with "Departmental Petty Cash Fund Procedures".
  • Upon verification of the completed form and receipts, the petty cash expenses will be reimbursed by the Bursar’s Office cashier.
Responsibilities
  • Campus Schools, Colleges, Departments or Units are responsible for submitting timely reimbursement requests to the Bursar’s Office.
  • The Bursar’s Office is responsible for reimbursing small dollar purchases for department that do not have a petty cash fund.
Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

 

Policy History
Revision Date Author Description
10-03-2014 Controller’s Office Updates to verbiage

Departmental Petty Cash Fund Procedures

Departmental Petty Cash Fund Procedures
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 17:02
Policy No
1.5.3
Effective Date:
Last Revised:
Review Date:
Policy Owner
Controller's Office
Contact Name
Amy Herron
Contact Title
Controller
Contact Email
amy.herron@business.gatech.edu
Reason for Policy

To provide guidance to schools, colleges, departments or units of the Institute as it relates to Departmental Petty Cash funds.

Policy Statement

This procedure describes the methods required to establish and maintain a petty cash fund along with procedures for the operation and replenishment of the fund. Please refer to "Petty Cash Fund General Guidelines" for specific information regarding allowable petty cash transactions.

Scope

This policy applies to all schools, colleges, departments, and units of the Institute.

Procedures

Fund Establishment
To establish a departmental petty cash fund, Section one and three of the Petty Cash Fund Request/Maintenance Form is to be completed and submitted to the Controller's Office for approval and establishment of the account.

If approved, the Controller's Office will establish the petty cash fund account number and forward the information to the Bursar's Office for processing. For funds established for $500 or less, the Bursar's Office will provide cash to the custodian for the amount of the fund. Upon acceptance of the funds, the custodian will receive the cash and sign Section Five of the Petty Cash Fund Request/Maintenance Form. For funds established for more than $500, the Bursar will forward the information to Accounts Payable for check preparation and Accounts Payable will notify the department when the check is ready. Upon acceptance of the funds, the custodian will receive the check and sign Section Five of the Petty Cash Fund Request/Maintenance Form at the Bursar's Office.

If changes to the established fund amount become necessary, a new Petty Cash Fund Request/Maintenance Form must be submitted to the Controller's Office noting the existence of the current petty cash fund and the request for an increase or decrease of funds and/or change of custodian. (Changes are noted in Section Two of the Form.)

Reimbursement Requirements
Departments should submit original receipts for petty cash purchases (see "Petty Cash Fund General Guidelines" for specific information on allowable purchases) to the fund custodian. To improve financial reporting, we recommend that the reimbursement request submitted within ten (10) working days following a purchase, or, if at year end, by the published cutoff date. Failure to turn in receipts promptly may jeopardize reimbursements if the funding source has lapsed. Prior to reimbursement, the fund custodian should ensure that the following information and attachments are included with the reimbursement request:

  1. Original of the vendor's customary receipt which includes:
    • Vendor name
    • Date of purchase
    • Items purchased (to be completed by department if not on receipt)
    • Price per item
    • Total price for the quantity received
  2. Appropriate accounting distribution
  3. Custodian may require purchaser to sign or initial original receipts.

Upon receipt of completed information, the petty cash expenditures will be reimbursed by the fund custodian.

Replenishment Requirements
Fund replenishment requests should be submitted to the Bursar's Office on the Petty Cash Replenishment/Reimbursement Request Form. The form must be completed in full and signed by approved Departmental representative. Requests should include a summary of all charges by account number. The summary should include each unique accounting distribution only once with the total of all charges for the account. Replenishment requests along with two copies of the request (form only) should be attached to supporting original receipts and submitted to the Bursar's Office. The requests for Fund replenishment should be submitted in a timely manner and allow ample time for processing. Cashiers may not be able to provide immediate replenishment upon presentation by Department at certain times of the school year (registration). Specific monetary denominations can be arranged for larger reimbursements by contacting the Cashier's Office via phone at (404) 894-5542.

Monthly Maintenance Requirements
Each month a cash count of the petty cash fund should be performed by a supervisor or department manager (someone with reporting authority over the custodian). This cash count should always be done in the presences of the custodian, and when completed should be documented and signed by the performer as well as the custodian. Any over/shorts should be reported to the Controller's Office for proper recording and the Bursar's Office to correct the cash position. This document should be maintained with the petty cash fund as it must be available during any surprise cash counts performed by Internal Auditing.

Closing the Fund - Voluntary
In the event that a fund is to be closed voluntarily, the following steps are to be followed by the custodian:

  1. Notify the Controller' Office and the Bursar's Office of the intent to terminate the account.
  2. Prepare final replenishment request.
  3. Submit all cash on hand and final cash count to the Bursar¹s Office.

The Bursar's Office will review the final cash count and provide information to the Controller's Office, who will close the general ledger account for that fund. Termination of the funds will be noted on the original establishment form and a copy will be forwarded to the custodian by mail.

Closing the Fund - Involuntary
Repeated violations of petty cash procedures can result in termination of the fund. The fund will be closed by the Controller's Office and replenishments will no longer be processed. The petty cash custodian is ultimately responsible for the disposition of funds.

Forms
Responsibilities
  • Campus Schools, Colleges, Departments or Units are responsible for managing departmental petty cash funds per the guidelines and procedures in this policy.
  • The Controller’s Office is responsible for establishing the petty cash fund account number on the ledger.
  • The Bursar’s Office is responsible for replenishing departmental petty cash funds as requested.
Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
10-03-2014 Controller’s Office Updates to verbiage

Departmental Petty Cash Fund Checking Account Procedures

Departmental Petty Cash Fund Checking Account Procedures
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 17:04
Policy No
1.5.4
Effective Date:
Last Revised:
Review Date:
Policy Owner
Controller's Office
Contact Name
Amy Herron
Contact Title
Controller
Contact Email
amy.herron@business.gatech.edu
Reason for Policy

This policy was created to provide guidance to schools, colleges, departments or units of the Institute as it relates to Departmental Petty Cash Fund Checking Accounts.

Policy Statement

This policy describes the methods required to establish or maintain a petty cash fund in a checking account. Please refer to "Petty Cash Fund General Guidelines" for specific information regarding allowable petty cash transactions.

Scope

This policy applies to all schools, colleges, departments, and units of the Institute.

Procedures

Fund Establishment
To establish a petty cash checking account, a completed Petty Cash Request/Maintenance Form should be submitted to the Controller's Office for approval. The Controller's Office will notify the department head once the fund is approved. The department head will notify the custodian and ask that he/she request the following information from the local bank:

  1. Signature cards
  2. Checking account information
  3. Bank contact person

This information should be forwarded to the Controller’s Office so that the initial checking account can be set up. The custodian will then be forwarded the following information from the Controller's Office:

  1. Bank contact for the account
  2. Procedures for reconciling the bank account
  3. Copy of agreement with the bank and Georgia Tech
  4. Copy of authorized check writers (signature card)
  5. Any other pertinent information required to establish this account

Departmental Responsibilities
The department head or designee will be responsible for handling the following information related to the checking account:

  1. Updating the fund custodians as they change
  2. Ordering checks as needed
  3. Updating the Controller's Office on any unresolved problems with the bank
  4. Maintaining the account on a daily basis
  5. Ensuring that the account is not overdrawn

If changes to the established fund amount become necessary, a new Petty Cash Request/Maintenance Form must be submitted to the Controller's Office noting the existence of the current petty cash fund and the request for an increase or decrease of funds and/or change of custodian.

Account Controls (new section)
Three basic controls must be incorporated into each petty cash account that establishes a banking account.

  1. Of the signers on the account, at least two representatives of Administration & Finance that are also signers on the Institute’s primary operational checking accounts must always be signers on Petty Cash checking accounts.
  2. Departments must determine the maximum dollar amount of any written check, and file that information with the bank via an “Account Reconcilement Services Positive Pay Authorization form” (or other similar applicable bank form from the current banking provider) in order to prevent fraudulent checks for a larger amount from clearing. (Maximum amount can be changed on an as needed basis.)
  3. Accounts should establish a positive pay methodology with the bank. Any account that chooses not to implement a bank established positive pay, must document why they will not implement positive pay, and must be willing to fund any operational losses that occur from potential fraudulent activities. (Positive pay is an automated fraud detection tool that matches the account number, the check number, and the dollar amount of each check presented for payment against a list of checks previously authorized and issued by the company.)

Fund Maintenance
Each petty cash checking account custodian will be responsible for reconciling his/her petty cash bank account. The custodian should request two copies of the monthly petty cash checking account statements. One statement should be sent directly to the custodian along with the canceled checks while the other should be sent directly to the Controller's Office without attachments.

The custodian will be required to forward completed reconciliations and other supporting documentation to the Controller's Office by the third week following the statement date. The Controller's Office will then review the reconciliation for accuracy and work with the department to correct any errors. Delinquent reconciliations will result in a hold on account replenishment requests until the reconciliation is received.

Reimbursement Requirements
Employees should submit original receipts for petty cash purchases (see Petty Cash Fund General Guidelines 1.5.1 for specific information on allowable purchases) to the departmental fund custodian. To improve financial reporting, the reimbursement request should be made within ten (10) working days following a purchase, or, if at year end, by the published cutoff date. Failure to turn in receipts promptly may jeopardize reimbursements if the funding source has lapsed.

Prior to reimbursement, the fund custodian should ensure that the following information and attachments are included with the reimbursement request:

 
Vendor name
Date of purchase
Price per item
Total price for the quantity received
  1. Original of the vendor's customary receipt which includes:
  2. Appropriate accounting distribution
  3. Signature of the individual authorized to approve departmental purchases on the reimbursement request only.
  4. Custodian may require purchaser to sign or initial original receipt.

Upon receipt of completed information, the petty cash expenditures will be reimbursed by the fund custodian.

Replenishment Requirements
Fund replenishment requests should be submitted to the Accounts Payable Department on the Petty Cash Replenishment/Reimbursement Request Form. Requests for fund replenishment should be submitted in a timely manner and should allow ample time for processing.

  1. Requests should include a summary of all charges by account number. The summary should include each unique accounting distribution only once with the total of all charges for the account.
  2. Replenishment requests require an approval signature by the authorized departmental representative. Accounts Payable will return unsigned replenishment requests to the originator.
  3. Replenishment requests along with one copy of the request (form only) should be attached to supporting original receipts and submitted to Accounts Payable. Upon receipt of completed information, the Accounts Payable Department will return a check to the department for the amount of the request.

Closing the Fund - Voluntary
Fund replenishment requests should be submitted to the Accounts Payable Department on the Petty Cash Replenishment/Reimbursement Request Form . Requests for fund replenishment should be submitted in a timely manner and should allow ample time for processing.

  1. Requests should include a summary of all charges by account number. The summary should include each unique accounting distribution only once with the total of all charges for the account.
  2. Replenishment requests require an approval signature by the authorized departmental representative. Accounts Payable will return unsigned replenishment requests to the originator.
  3. Replenishment requests along with one copy of the request (form only) should be attached to supporting original receipts and submitted to Accounts Payable. Upon receipt of completed information, the Accounts Payable Department will return a check to the department for the amount of the request.

Closing the Fund - Involuntary
Repeated violations of petty cash procedures can result in termination of fund. The checking account and the general ledger account will be closed by the Controller's Office and replenishments will no longer be processed by the Accounts Payable Department. The fund custodian is ultimately responsible for the disposition of funds.

Forms
Responsibilities
  • Campus Schools, Colleges, Departments or Units are responsible for managing departmental petty cash fund checking accounts per the guidelines and procedures in this policy.
  • The Bursar’s Office is responsible for replenishing departmental petty cash funds as requested.
  • The Controller’s Office is responsible for reviewing requests for petty cash fund checking accounts and setting up the initial checking account with assistance from Treasury Services.
Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
10-03-2014 Controller’s Office Updates to verbiage. New section added by Treasury Services.

Scholarship and Fellowship Projects

Scholarship and Fellowship Projects jbarber32 Tue, 09/04/2012 - 15:48

Establishing Scholarship and Fellowship Projects

Establishing Scholarship and Fellowship Projects
Type of Policy
Administrative
jbarber32 Thu, 05/31/2012 - 09:33
Policy No
1.9.1
Last Revised:
Review Date:
Policy Owner
Controller's Office
Contact Name
Amy Herron
Contact Title
Controller
Contact Email
amy.herron@business.gatech.edu
Reason for Policy

This procedure is intended to explain the method of establishing a new scholarship or fellowship project number and account maintenance in the accounting records of the Georgia Institute of Technology.

Policy Statement

The Accounting Services Department is charged with the establishment of scholarship and fellowship project numbers in the accounting system to allow expenditures by the Georgia Institute of Technology upon receipt of properly authorized/approved budgetary and invoicing documentation. The Accounting Services Department is also responsible for budget entry and review of expenditures incurred and payments received from donors/sponsors for scholarship and fellowship accounts. Each authorization should be initiated by an award notification from the donor/sponsor and approved by authorized personnel in the Office of Student Financial Planning and Services or other units that may control distribution of awards to the Institute. Additionally some requests are received resulting from proposals submitted through the Office of Sponsored Programs. Requests received by the Accounting Services Department without sufficient will be returned to the appropriate unit for further action.

Procedures
  1. Upon receipt of a request for a new scholarship or fellowship project, the Accounting Services Department will assign the project number within the appropriate range of numbers (997xxxxx for Scholarships / 998xxxxx for Fellowships) and updates the accounting records of the Institute.
  2. If “deliverables” (e.g. progress report, financial report, etc.) or a contract/agreement mutually signed by the sponsor and the Institute (either GTRC or GIT), the award documents should first be forwarded to the Office of Sponsored Programs (OSP) for review. OSP takes necessary steps to execute the agreement and requests project assignment from the Office of Grants & Contracts Accounting (GCA).
  3. If a scholarship or fellowship project is to be created as a sub-project under an existing project number, the department is required to submit an online budget revision request through the Grants Management System (Establishing a Sub-Project Account). This request should include the proper department/organization number (997 for scholarships, 998 for fellowships) PI name, start/end date, project name, amount and specific explanation in remarks before submitting the revision.
  4. The Accounting Services Department (or GCA as required) notifies the requesting unit of the project number. This notification is the first opportunity for allowable expenditures related to the scholarship/fellowship award to be recorded to the accounting records of the Institute.
  5. Requests for payments from scholarship or fellowship awards require various approvals based upon the specific award's guidelines. The award package is maintained by the Office of Student Financial Planning and Services or other designated campus administrative office.
  6. Copies of award documents requiring invoicing should be forwarded to the Accounting Services Department for action with the request for project number assignment. This will help the proper accounting office maintain complete account files and insure timely invoices to donor/sponsors.

Forms
There is no specific form used to request new scholarship or fellowship projects. The request should include at a minimum the following information:

  1. An award letter from the donor/sponsor.
  2. Source of funding (i.e. GTF account number, external sponsor, etc. to be invoiced) for costs incurred.
  3. Effective and expiration dates in the donor/sponsor award.
  4. Campus contact for questions regarding the award.
  5. If funded by a GTF or GTRC project, a signature of authorization/approval line should be included in the request for a project assignment prior to transmittal to the Accounting Services Department. If not funded by GTF or GTRC, billing instructions or collection instructions should be provided with account request.
  6. Requests received without approval will be forwarded to the Georgia Tech Foundation, the Georgia Tech Research Corporation or other appropriate campus unit.

There is no specific used to request payments from scholarship or fellowship project. The request should include at a minimum the following information:

  1. The awardee's name and GT ID number
  2. Source of funding (997xxxxxx or and 998xxxxxx)
  3. Description of the expenditure (account code and purpose such as payment of tuition and fees, stipends, etc.) to be charged to the scholarship or fellowship account.
  4. Amount and distribution date(s) for payment(s) to awardee.
  5. If funded by a GTF or GTRC account, scholarship and fellowship expenditures will be automatically invoiced to those entities on a monthly cost-reimbursable basis. Adjustments made to invoices will be reviewed and reconciled by the Accounting Services Department. Notification will be forwarded to the Office of Student Financial Planning and Services or other unit authorizing expenditures to request a cost transfer for expenditures in excess of funding or expenditures not authorized by the sponsor's award document.

Processing Scholarship, Fellowship and Other Student Payments

Processing Scholarship, Fellowship and Other Student Payments
Type of Policy
Administrative
jbarber32 Thu, 05/31/2012 - 09:35
Policy No
1.9.2
Last Revised:
Review Date:
Policy Owner
Bursar’s Office
Contact Name
Gloria J. Kobus
Contact Title
Bursar
Contact Email
gloria.kobus@business.gatech.edu
Reason for Policy

To provide guidance to Georgia Tech colleges, schools, departments and units as it relates to processing scholarship, fellowship other student payments.

Policy Statement

The Internal Revenue Service (IRS) Publication 520 covers the rules for the taxation of student payments. The publication states that the part of any grant, scholarship, or fellowship that represents payments for teaching, research or any other service is taxable to the student. Colleges and universities are obligated to withhold taxes on any award that represents compensation for services. Nonresident alien students may have taxes withheld on awards that do not represent compensation for services. Their tax obligations are governed by their visa status, United States (US) tax laws, and/or the tax treaty between the US and their country of residence.

The Institute is responsible for withholding payroll taxes on the portion of a fellowship or traineeship award made to a student (U. S. Citizen, Resident Alien, or Nonresident Alien who is not claiming an exemption under the provisions of a tax treaty), which represents payment for services required to be performed in order to receive the award. Failure to withhold the taxes when required may create unexpected tax liabilities for Georgia Tech students and cause the Institute to incur serious financial penalties. The Institute will provide the student with a Form W-2 at year-end, which will report to him/her income earned and taxes withheld. The student is responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS. The department is responsible for determining if a student's scholarship, fellowship or other award is requires services to be rendered before receipt of payment. The student, however, is responsible for providing sufficient information to the department to enable a determination of status. Ultimately, it is the student’s responsibility to determine his/her tax liability and file a tax return with the Internal Revenue Service each year.

For more information related to the responsibility of the student in determining his/her own tax liability, please visit the Office of Scholarships and Financial Aid (OSFA) Tax Information website.

This policy is not applicable to payments made to graduate student assistants (GSA's), graduate research assistants (GRA's), and graduate teaching assistants (GTA's).

Scope

This policy applies to all schools, colleges, departments, and units of the Institute.

Procedures

Scholarship – Trainee - Fellowship Payment Grid
The Scholarship – Trainee – Fellowship payment grid provides detailed information on processing student payments. That information includes the following:

  1. Type of Program/Student
  2. Program Description (Training Grant, Award, Schl, Fell)
  3. Account Code
  4. Project ID (997 project, 998 project or other project)
  5. Routing Information (Financial Aid, Bursar, AP, Payroll, etc)
  6. Forms Required (Check Request Form, Vendor Profile Form, Bursar’s Special Payment Form, etc)
  7. IRS Reporting Requirement for US Students and Non-US Students

Institute Policy for Scholarship/Fellowship Payments and the Payment of Prizes/Awards to Students
For additional administrative information about student payments and the definitions of the different types of student payments, please see Institute Policy for Scholarship/Fellowship Payments and the Payment of Prizes/Awards to Students.

Bursar’s Office Website
Additional information related to student payments may also be found on the Bursar’s Office website at http://www.bursar.gatech.edu/content/forms.

Responsibilities
  • The student is responsible for providing sufficient information to the department to enable a determination of status. The student is also ultimately responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS.
  • The department is responsible for determining if a student's scholarship, fellowship or other award is requires services to be rendered before receipt of payment.
  • The Bursar’s Office, Accounts Payable and the Payroll Office are responsible for ensuring timely payments to students.
Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
10-03-2014 Controller’s Office Periodic review and verbiage update. Policy Number change. Assignment change to Bursar’s Office.

Tax Implications for Student Receiving Scholarships, Fellowships or Traineeships

Tax Implications for Student Receiving Scholarships, Fellowships or Traineeships
Type of Policy
Administrative
jbarber32 Tue, 06/19/2012 - 16:53
Policy No
1.9.3
Last Revised:
Review Date:
Policy Owner
Bursar’s Office
Contact Name
Gloria Kobus
Contact Title
Bursar
Contact Email
gloria.kobus@business.gatech.edu
Reason for Policy

This policy was created to provide general information regarding potential federal income tax liability to students receiving scholarships, fellowships or traineeships.

Policy Statement

The taxability of scholarships/fellowships/traineeships is determined under provisions of the Internal Revenue Code. Any tax liability under this law is the responsibility of the student. Each scholarship, fellowship or traineeship recipient is responsible for determining how the tax law applies to his/her particular circumstances. The procedures provide general information about how federal income tax law applies to scholarships, fellowships and traineeships.

Scope

This policy applies to all colleges, schools, departments, and units of the Institute.

Procedures

Scholarships, Fellowships, and Traineeships

Scholarships, Fellowships, and Traineeships for US Citizen or Resident Alien with No Services Required

A student (US Citizen or Resident Alien) who receives a scholarship, fellowship or traineeship award for which he/she is not required to perform services (past, present, or future) may exempt from income taxation the portion of the award that is used for qualified tuition and related expenses (tuition, fees, books, supplies, and other equipment required for courses). Any portion of the award used for other expenses, such as room and board or travel, is considered part of the student's gross income and must be reported on his/her individual tax return. Because the student has no employment relationship with the Georgia Institute of Technology (the Institute), the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the Internal Revenue Service (IRS) or the student.

Please note that the Institute’s Bursar’s Office is required to report scholarships, fellowships and traineeships to the IRS and to the student on Form 1098-T, Tuition Statement.  Form 1098-T is primarily intended to help a student or his/her parents claim an education credit, such as the American Opportunity Credit, based upon qualified tuition and related expenses that are not paid by scholarship, fellowship or traineeship.  See the Bursar’s website listed in Section 7 below for more detailed information about education tax credits.

 

Scholarships, Fellowships, and Traineeships for a US Citizen or Resident Alien with Stipulations on Expenses

A student who receives a scholarship, fellowship or traineeship award in which the terms of the award state that a certain amount cannot be used for tuition, fees, books, supplies or required equipment for his/her courses (i.e. a certain amount must be used for room, board or anything other than tuition, books supplies or equipment) is responsible for reporting that amount as gross income on his/her individual tax return. Again, because the student has no employment relationship with the Institute, the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the IRS or the student.

 

Scholarships, Fellowships, and Traineeships for Non-Resident Aliens

The tax rules applicable to scholarship, fellowship and traineeship awards made to nonresident alien students differ from those applicable to students who are US citizens or resident aliens. The portion of the award that is used for qualified tuition and related expenses is exempt from US tax and is not reportable to the IRS. The remaining portion of the award is subject to tax and is considered part of the student's gross income and must be reported on form 1042-S and on his/her individual tax return. The Institute will withhold tax at the rate of 14% on this taxable portion unless the award is exempt under a tax treaty between the US and the student's home country. The student must supply the Institute with IRS Form 8233 in order to claim the benefit of a tax treaty.

Responsibilities
5.1.Student

The student is responsible for determining  if he/she is required to file an individual income tax return with the Internal Revenue Service .  The portion of a scholarship/fellowship/traineeship award that is used to pay qualified tuition and related expenses is not subject to tax.  For more information related to the responsibility of the student in determining his/her tax liability, please visit the Office of Scholarships and Financial Aid website listed in Section 7 below.

5.2. Institute

The Institute is responsible for issuing a Form 1098-T, Tuition Statement, to a U.S. citizen or resident alien student and to the IRS to report any scholarship, fellowship or traineeship received during the calendar year and to report qualified tuition and related expenses paid during the calendar year not to exceed what was charged for qualified tuition and related expenses during the calendar year.  The Institute is not required to issue a Form 1098-T to a nonresident alien student unless the student requests it. 

The Institute is responsible for issuing a Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, to a nonresident alien student to report any scholarship, fellowship and traineeship even if no withholding is required because of a tax treaty between the U.S. and the student’s home country.  Scholarship, fellowship, and traineeship amounts that do not exceed the student’s qualified tuition and related expenses are not required to be reported.

The Institute is responsible for issuing a Form W-2, Wage and Tax Statement, to any U.S. citizen, resident alien, or nonresident alien student to the extent the student receives a scholarship, fellowship or traineeship in exchange for the performance of services.  The Institute is also responsible for issuing a W-2 to any student who receives compensation (other than a scholarship, fellowship or traineeship) in exchange for services.

Enforcement

To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Hotline, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
1-10-2023 Controller's Office and Bursar and Treasury Services Office Policy owner and contact changed to Bursar and Treasury Services Office.
1-07-2021 Controller's Office Updates to verbiage.
10-03-2014 Controller’s Office Updates to verbiage. Removed obsolete portions. Updated title.

Student Prizes and Awards

Student Prizes and Awards
Type of Policy
Administrative
jbarber32 Thu, 05/31/2012 - 09:27
Policy No
1.10
Last Revised:
Review Date:
Policy Owner
Bursar’s Office
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

This policy was created to explain the method of authorizing payment of a prize or award and establishing a sponsored project in the accounting records of the Georgia Institute of Technology to charge expenditures related to prizes or awards.

Policy Statement

The Office of Grants and Contracts and/or the Controller’s Office are charged with the establishment of sponsored projects in the Chart of Accounts and the accounting records of the Georgia Institute of Technology upon receipt of properly authorized/approved budgetary and invoicing documentation for prizes and awards. The Office of Scholarships and Financial Aid and the Bursar’s Office are charged with the review and approval of prize and award payments issued by the Georgia Institute of Technology. Requests for payment should include a valid Institute project number from which the payment should be made and must include adequate documentation describing the purpose of the payment (e.g. annual staff award, prize for participation in special program, etc.). Funding should come from sources that permit the prize and award payments, such as Georgia Tech Foundation and Georgia Tech Research Corporation, etc. State funds cannot be used to pay prizes and awards.

Scope

This policy applies to all colleges, schools, departments, and units of the Institute.

Procedures

Prize and award recipients who have been employed in the current calendar year should be submitted on the Awards and Prizes Form that can be obtained from the payroll department. Payroll Prize forms should be forwarded to Accounting Services for approval. The following steps will be taken upon receipt of a request for issuance of an award or prize:

  1. The Bursar’s Office will initially verify the purpose of the prize or award. The requesting department must include a description of the reasoning/rationale for the prize on the request form and attach any/all supporting documentation (e.g. attach a notice of annual competition.)
  2. The Bursar’s Office will review the request for an authorized sponsored project number to be charged for the prize and award. If this information is not clearly identified on the request, the initiating unit will be contacted in order to determine the project number. If no funding source can be identified, the request will be returned to the initiating department. If a project does not already exist in the accounting records of the Institute, the initiating department must request to establish a new sponsored project. If funding is from either the Georgia Tech Foundation or the Georgia Tech Research Corporation, instructions for establishing projects should be followed as described in the Policy and Procedure Manual. If funding is from external sources, a sponsored project should be initiated and requested through the Office of Sponsored Programs.
  3. The Bursar’s Office will verify budget availability prior to the approval of prize and award payments. The initiating department is responsible for all costs incurred if payments are not reimbursed from the designated sponsor. The departments should read the instructions carefully on the award and prize forms when calculating the award amount and estimated total department's expenditures. For more information regarding tax withholdings, refer to Payroll procedure “10.12 Employee Awards and Prizes”.
  4. Upon completion of the review of the prize or award request, the approved form will be forwarded to the appropriate office for payment.
    1. Forms for awards and prizes to recipients who have been employed in the current calendar year will be forwarded to the Payroll Department for payment. The Payroll Department will first verify GIT employment for the recipient. Payments will be posted to the accounting records as extra compensation -- account code 511910. The Employer portion of FICA at 7.65% should be included in the budgeted amount for payments to these recipients. Refer to Payroll procedure 10.12 regarding the gross up amount of award if the department is willing to absorb expenses for the employee's income taxes and FICA withholdings. Payment can either be added to the employee's next scheduled payroll or checks will be distributed to initiating departments.
  5. Payments made to prize and award recipients who have not been employed in the current calendar year will be processed through the Accounts Payable Department. A check in the award amount will be issued to the recipient using the account code 751120 for such payments. No tax will be withheld, but the recipient may receive a 1099 form if annual payments meet/exceed certain levels established by IRS guidelines. Recipients that have been classified as “non-resident aliens” may be taxed unless a current tax treaty exists between his/her home country and the United States. The department is required to provide the recipient's GTID on the prize form.

Student Award – No Services Required
A student (US Citizen or Resident Alien) who receives a scholarship, fellowship or traineeship award for which he/she is not required to perform services (past, present, or future) may exempt the portion of the award that is used for qualified tuition and related expenses (tuition, fees, books, supplies, and other equipment required for courses). Any portion of the award used for other expenses, such as room and board or travel, is considered part of the student's gross income and must be reported on his/her individual tax return. Because the student has no employment relationship with the Georgia Institute of Technology (the Institute), the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the Internal Revenue Service (IRS) or the student.

Student Award – Stipulations on Expenses
A student who receives a scholarship, fellowship or traineeship award in which the terms of the award state that a certain amount cannot be used for tuition, fees, books, supplies or required equipment for his/her courses (i.e. a certain amount must be used for room, board or anything other than tuition, books supplies or equipment) is responsible for reporting that amount as gross income on his/her individual tax return. Again, because the student has no employment relationship with the Institute, the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the IRS or the student.

Tax Rules
The tax rules applicable to scholarship, fellowship and traineeship awards made to nonresident alien students differ from those applicable to students who are US citizens or resident aliens. The total amount of a scholarship/fellowship/traineeship award made to a nonresident alien student that does not represent compensation for services is reportable by the Institute to both the IRS and the student on IRS Form 1042S. The portion of the award that is used for qualified tuition and related expenses are exempt from US tax. The remaining portion of the award is subject to tax and is considered part of the student's gross income and must be reported on his/her individual tax return. The Institute will withhold tax at the rate of 14% on this taxable portion unless the award is exempt under a tax treaty between the US and the student's home country. The student must supply the Institute with IRS Form 8233 in order to claim the benefit of a tax treaty.

Institute Responsibility
The Institute is responsible for withholding payroll taxes on the portion of a scholarship/fellowship/traineeship award made to a student (U. S. Citizen, Resident Alien, or Nonresident Alien who is not claiming an exemption under the provisions of a tax treaty) which represents payment for services required to be performed in order to receive the award. The Institute will provide the student with a Form W-2 at year end which will report to him/her income earned and taxes withheld. The student is responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS.

Student Responsibility
The portion of a scholarship/fellowship/traineeship award that constitutes qualified tuition and related expenses is not subject to tax. Ultimately, it is the student's responsibility to determine his/her tax liability and file a tax return with the Internal Revenue Service each year.

Responsibilities
  • The student is ultimately responsible for determining his/her tax liability and filing a tax return with the Internal Revenue Service each year.
  • The Institute is responsible for withholding payroll taxes on the portion of a scholarship/fellowship/traineeship award made to a student as needed.
Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

Updates for responsible party changed from Accounting Services/Controller’s Office to Bursar’s Office. Title change.

Revision Date Author Description
10-03-2014 Carol Gibson