Purchasing and Accounts Payable

Accounts Payable

Accounts Payable Processing

Policy No: 
5.5
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to provide guidelines on the Accounts Payable processes and payments for the Institute, while also ensuring compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement: 

Accounts Payable is responsible for the processing of all Institute payments, other than student financial aid/awards and employee payments for salary/wages.

Scope: 

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting payments to Accounts Payable for the Institute.

Procedures: 
4.1 Payments  
Trade Vendor Payment for Goods/Services

Invoices are to be sent with a valid Georgia Tech PO number to apinvoices@gatech.edu.

Non-PO Payments All requests that do not require a purchase order are to be submitted via the Institute’s Financial System along with supporting documentation justifying the payment.
Recurring Payment for Stipends, Non-GT Students Supplier invoice requests to be submitted for three payments or less. Recurring supplier form (Workday Recurring Form) to be submitted for three or more recurring payment requests of the same amount and emailed to apinvoices@gatech.edu
Wire Transfer Payment

Wire transfers are restricted to international payees. Invoices with purchase orders are to have the banking information on the invoice.

The wire payment form is to be submitted with a supplier invoice request (SIR) for non-PO payments.

4.2 Reimbursements  
Reimbursements and Refunds for Employees

Employees claiming reimbursement for expenses incurred on behalf of the Institute are to submit an expense report via the Institute’s Financial system.

Reimbursements and Refunds for Non-Employees Departments are to submit an expense report for non-employees via the Institute’s Financial system.
Policy History: 

Revision Date

Author

Description

12/2020

Accounts Payable

Editorial updates to align with Workday

02/2011

Accounts Payable

New Policy

Document Management and Archive Retention

Policy No: 
5.5.4
Type of Policy: 
Administrative
Effective Date: 
February 2011
Review Date: 
July 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to provide guidance on retention procedure for documents scanned and linked to the Institute’s Document Imaging System.

Policy Statement: 

Georgia Tech is a unit of the Board of Regents of the University System of Georgia (USG).  The Institute follows the official USG Records Retention guidelines.

Georgia Tech Business Services retains electronic imaged documents as the official Institute record for invoices, Check Requests, Purchase Orders, vendor documents, and receipt documents for expense reimbursements. In addition to supplier invoices, a rendered e-invoice is created for all invoice data that is received electronically from suppler.

Campus departments and Document Processing Team should retain the original documents until they have been scanned and linked into the document imaging system. The original can be destroyed after the document has been digitized. Providing the digitized document reflects the information as originally created and can be accessed electronically for later reference through the ImageNow Access Request Form.

P-Card, Electronic Cost Transfer (ECT) and other subsidiary expenditure documentation is to be maintained at the local unit level.

Documents will be maintained in the document imaging system for the required USG retention period of 5 years.

Fiscal Year-End Encumbrances

Policy No: 
5.5.2
Type of Policy: 
Administrative
Effective Date: 
February 2011
Review Date: 
July 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Policy Statement: 

Beginning with the fiscal year ending June 30, 2001, Georgia Tech adopted a new policy regarding the accounting for open purchase orders at fiscal year-end. Both state and non-state orders remain encumbered obligations of the budget year in which the orders are placed. This reserves monies to pay for the orders and at the same time it allows the Institute to account for funding in accordance with state appropriation guidelines (i.e., the funding is an obligation of the year in which the order is placed, not the year the obligation is paid).
(Note that prior to June 30, 2001, the Institute “expensed” open state funded purchase orders to obligate funding. This facilitated state budgetary reporting, but it was a violation of Generally Accepted Accounting Principles (GAAP). This variance from GAAP was noted in the Institute’s annual audit. Under the new practice, this disclaimer to our financial statements will be removed.)
To better understand how the new process works, know that each purchase order placed is associated with two different “year” designations. One of these is the “budget year”. This maps expenses and encumbrances to the state’s/BOR’s approved budget for Georgia Tech. The second designation is “fiscal year”. This indicator tracks expenses for GAAP (as opposed to budget) reporting. Most management reports developed for the campus track to the “budget year” automatically, since the budget is the primary management tool in place to control spending. In most instances, the budget and fiscal years are the same for a procurement transaction; however, for carry forward orders the encumbrance and expense will be reported as obligations of the old budget year, not the current budget year.

Procedures: 

For prior budget year orders, units should approve invoices for payment once goods are received and forward the approved invoices to Accounts Payable (AP). AP will make payment to the vendor using the prior year funding. If insufficient funding is available on the prior year order to pay the invoice, a new distribution line using the same accounting information will be added for the overage in the current budget year. If there is a remaining balance of state funds on a prior budget year purchase order after all invoices have been paid, they will be lapsed to the Institute’s unreserved fund balance (surplus). This lapsed funding is not available to the unit. If there are remaining non-state funds available on a prior budget year order after all invoices have been paid, it will be released from the budget year obligated and moved to the current budget year as available funds.

Reports
There are reports available in the Institute's Financial System for campus management to review procurement activity and funding availability. The reports recommended for prior budget year procurement management are the Open Obligation Campus - CR Report (formerly Open Encumbrance Campus - CR) and the Open Obligation by Company - CR Report. If you need assistance running reports, please forward a request for help via https://gatech.service-now.com/home.

Policy for Lapsing
Orders for sponsored sub-agreements and construction contracts may span two years without justification. Other purchase orders should be completed no later than the year following the year in which the order was placed, unless justified.

Request for Stop Payment of AP Checks

Policy No: 
5.5.5
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to provide guidelines on requesting stop payments of Accounts Payable checks for the Institute, while also ensuring compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement: 

A stop payment is a request by the Institute to our bank to refuse the processing of a check upon presentation. The most frequent reasons for stop payments are a lost, stolen, or damaged check. The associated action is a request to reissue the payment via a new check. A stop payment is made to prevent two checks being presented for payment. Checks within 10 days of issue from check date are considered to be en route to the payee.

A stop payment request may be submitted if the check was:

  1. Lost, stolen or damaged,
  2. Payee  has not received the check at least 20 business days from the date check was issued, to allow for check audit and mail delivery,
  3. A check was sent in error,
  4. Check has not been cashed for more than 180 days since the check issue date.
Scope: 

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting payments to Accounts Payable, and all suppliers (trade vendors for goods and services) submitting payments for conducting business with Georgia Tech.

Policy Terms: 

Stop Payment

A stop payment is a request by the Institute to our bank to refuse the processing of a check upon presentation.

Void and Reissue Payment

A void/reissue is a request by the department to void a check that has been mailed to a payee and reissue (replace with) a new check.

Procedures: 

5.1 Stop Payments

Status of Accounts Payable Check

The status of Accounts Payable check payments are to be checked prior to submitting a request stop payment checks. Payment status can be reviewed via the PO Payment Inquiry tool on the Procurement website. Checks that have cleared the GT bank account will reference the date in the ‘DATE CLEARED’ field. Checks that have cleared the Institute’s bank cannot have a stop payment request placed.

Requests for stop payment of Accounts Payable Checks

All requests request for stop payments are to be submitted to the AP Accounting Team via ServiceNow Accounts Payable or via the Institute’s Ticketing System.

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

12/2020

Accounts Payable

Updated to align with Workday

08/2017

Accounts Payable

General updates

02/2011

Accounts Payable

New Policy

Vendor Invoice Submission and Payment Matching

Policy No: 
5.5.1
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to provide guidelines on the submission of invoices for payment by Suppliers (trade vendors for goods and services, consultants, independent contractors) conducting business with the Georgia Institute of Technology, while also ensuring compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement: 

All invoices submitted for payment by Suppliers must be sent directly to Accounts Payable with a valid Georgia Tech purchase order number.

Scope: 

All Suppliers conducting business with Georgia Tech, and all Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the Supplier.

Policy Terms: 

Supplier

Trade vendors for goods and services, consultants, or independent contractors conducting business with Georgia Tech.

Procedures: 

5.1 Invoice Submission

Invoice Submission

Invoices are to be sent with a valid Georgia Tech PO number to apinvoices@gatech.edu.

Invoice Submission for Office of Sponsored Programs(OSP)

Invoices are to be sent with a valid Georgia Tech PO number directly to Office of Sponsored Programs (OSP).

5.2 Payment Terms

Payment Terms

Payment Terms are net 30 days from date of invoice, receipt of goods, or receipt of correct invoice, whichever is later, unless stated otherwise in the supplier’s agreement.

Responsibilities: 

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the Supplier are to ensure invoices are submitted with a valid Georgia Tech PO number to apinvoices@gatech.edu.

Enforcement: 

Suppliers who are found in violation of the policy are at risk of delayed payment or not receiving payment for goods or services rendered.

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

12/2020

Accounts Payable

Updates to align with Workday

02/2011

Accounts Payable

New Policy

Employee Reimbursements (Non-Travel Related)

Policy No: 
5.5.1.7
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to provide guidance to Georgia Tech Employees submitting employee payments requests through the Institute’s Financial System for non-travel related activity, in a timely and efficient manner while also ensuring compliance to regulations for the Institute.  

Policy Statement: 

The Institute Financial System is designed to request payments to employees for non-travel related activity. Employees are to take an attestation that they are eligible for the requested expenses incurred as described for performance of official business on behalf of Georgia Tech.

 

Employees should submit all expenses for reimbursement and reconciliation within 10 days incurred expense but no later than 45 calendar days. Expenses submitted more than 60 calendar days after completion of the trip or event, if reimbursed, maybe considered taxable income.

Scope: 

All Tech employees, (includes faculty, staff, students and employees) who have incurred expenses on behalf of the Institute and seeking reimbursement.

Procedures: 

4.1

Employee Reimbursements (Non-Travel Related)

All non-travel related expenses incurred by employees on behalf of Georgia Tech requests are submitted to be submitted on an expense report via the Institute’s Financial System.

4.2

Refund of Personal Funds for Institute Expenses

Refunds are processed for employees who are due a personal refund for key deposits, study abroad deposit, BUZZ card, parking refunds, payroll STRAP, etc). The original Georgia Tech receipt should be included or may be referenced on the form with the receipt# and deposit date. Refunds should be charged to the same account used for the original deposit of funds.

Reimbursement for Food/Group Meal Expenses

A supplemental form, the Food/Group Meal Summary Documentation Form, must be included for reimbursement of any food or group meal expenses, with the exception of reimbursements exclusively using Georgia Tech Foundation Funds. If sponsored funds are used, the sponsor must specifically authorize use of funds. In all case a list of the attendees must be included regardless of the funding source. Approved Georgia Tech caterers must be used for all on-campus events, unless an exception is approved by Auxiliary Services. State of Georgia per person meal per diems limit the amount that can be spent for each participant. See Food/Group Meal policy for specific policy guidance.

Program Advance

- Study Abroad

-  Participant Research

 

 

The program coordinator may request program advance or reimbursement for program expenses when the scope of the project requires small dollar cash disbursement to participants where check payment would be impractical, an administrative burden, or payee identity is confidential. A statement of project scope, budget of proposed advance, and project dates must be included. Program advances are requested via the Institutes Financial System

Within 15 business days of project end, a summary of expenses must be submitted that references the original campus ref# and provides original receipts and/or a participant roster that documents receipt of funds. If additional funds are due, they can be requested via the Institutes Financial System. If all funds are not used, the program coordinator will return unused funds via a personal check (made payable to Georgia Tech) attached to the post-event summary of expenses. A program advance that is not substantiated with documented receipts and a business purpose that supports Georgia Tech will be classified as a taxable stipend and reported as income on the employee’s W-2.

Any individual payee/project participant that receives $600 or more per year will receive a 1099-misc. The campus unit is responsible for notifying Accounts Payable by January 10th for any payments for the prior calendar year that reach this limit. An IRS W-9 form must be submitted and a individual will need to be registered as a supplier via the Institute Supplier Portal.

Responsibilities: 

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the supplier are to ensure invoices are submitted with a valid Georgia Tech PO number to apinvoices@gatech.edu.

6.1. Employee

Employee is responsible for ensuring that any expenses claimed are accurate and that they are eligible for the requested expenses incurred in support of official business on behalf of Georgia Institute of Technology.

6.2. Expense Preparer

The preparer prepares the expense report on behalf of the employee and is responsible for ensuring appropriate incurred expense and all required receipts and supporting documentation is submitted.

6.3. Approvers

Manager/Supervisor
Employee’s Manager/Supervisor is responsible for reviewing the expense report prior to approval to validate the appropriateness, business purpose of the incurred expense, expense is allowable, cost reasonableness, and ensuring all receipts required supporting documentation is submitted.

Delegates
Delegates act as proxies on behalf of the manager/supervisor and have the same responsibilities as the supervisor.

Department
Department administration is responsible for reviewing the expense report prior to approval to validate availability of funds, the appropriateness and business purpose of the incurred expense, validate expense is allowable, cost reasonableness, and ensure all required receipts supporting documentation is submitted.

Enforcement: 

All Georgia Tech employees, (includes faculty, staff, students and employees) incurring expenses on behalf of the Institute are to adhere to the Employee Reimbursement Policy. Employees who are in violation are at risk of not receiving reimbursement expenses incurred.

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

12/2020

Accounts Payable

Updated to align with Workday
02/2011 Accounts Payable New Policy

FedEx and UPS Accounts

Policy No: 
5.5.1.8
Type of Policy: 
Administrative
Effective Date: 
April 2012
Last Revised: 
April 2018
Review Date: 
May 2019
Contact Name: 
Jeanette Smith
Contact Title: 
Procurement Coordinator
Contact Email: 
Purchasing.ask@business.gatech.edu
Reason for Policy: 

This procedure applies to the request for, assignment of, and use of UPS and Federal Express Accounts. UPS is on a mandatory State Contract and should be used as the primary shipping vendor. Fed Ex should only be requested if shipping dangerous chemicals or if required for shipments per sponsors.

Policy Statement: 

The authority to make purchases of freight is delegated to the administrative departments. This authority is vested in the Purchasing Department and administrated under the State Purchasing Rules and Regulations.

Procedures: 

Establishment of Account
One or more accounts per delivery address may be established. A UPS Employee Agreement Form or a FedEx Employee Agreement Form should be completed and approved and sent to the Georgia Tech Purchasing Department if an employee is acting as the accountholder. The Purchasing Department will establish the account with UPS and Federal Express, based upon available account numbers. The department should take care in releasing the UPS and FedEx Account number as they will be responsible for charges associated with that account.

Payment of Invoices
All UPS and FedEx accounts can be invoiced to the department or set up with a Pcard for autopay. This set up is the responsibility of the accountholder.

Redistribution of Charges
Departments should the Concur system to redistribute charges if necessary for accounts linked to a Pcard. Multiple lines can be allocated for an ePayment request.

Disputed Charges

It is the cardholder’s responsibility to resolve discrepancies and ensure credits are received. When a cardholder discovers an incorrect amount has been charged or a questionable purchase appears on the monthly statement, the cardholder must immediately seek to resolve the problem directly with the vendor by calling UPS Customer Service at 1-877-289-6418 or FedEx Customer Service at 1-800-463-3339. Any communications should be documented on the statement (or attachment) including dates, persons involved, and a brief description of the problem.

 

Policy History: 

 

Revision Date Author Description
May 2015 P-Card Manager Added UPS to approved charges
April 2018 Procurement Coordinator Updated payment methods

Invoice Approval

Policy No: 
5.5.1.5
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to provide guidelines on the approval of invoices submitted for payment by Suppliers (trade vendors for goods and services, independent contractors) conducting business with Georgia Tech, while also ensuring compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement: 

All invoices submitted for payment by Suppliers must be sent directly to Accounts Payable with a valid Georgia Tech purchase order number. The department is responsible for the approval of invoices prior to payment.

Scope: 

All Suppliers conducting business with Georgia Tech, and all Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the Supplier.

Policy Terms: 

Supplier

Trade vendors for goods and services or independent contractors conducting business with Georgia Tech.

Procedures: 

5.1 Procedures

Invoice Overview

All invoices require a valid Georgia Tech Purchase Order (PO) in order to be processed for payment. The PO number is to be is referenced on the invoice. Supplier invoices that reference a Georgia Tech PO are entered directly by Accounts Payable into the Institute’s financial System. Invoices that do not reference a valid PO number will not be processed until a PO is provided by the supplier or the department that has requested the order for goods or services. The PO number should have sufficient funds available and once processed via Accounts Payable, the auto- matching process in the Institute’s financial System will match the invoice to the PO and the receipt (for orders $3000 and over).

Invoice / PO Tolerances

 

Match exceptions may be created that prevent invoices from being processed for payment payment. Match exceptions have to be cleared from the Institute’s Financial System by the Financial Administration personnel within the department in order for an invoice to be matched and processed for payment.

Invoices may be in match exception for the following reasons:

  • Insufficient funds available on the purchase order
  • Quantity on the invoice does not match the quantity received in the Institute’s Financial System
  • Invoice cost is plus or minus 5% of the PO amount.
  • Orders greater than $3,000 that have not be received in the Institute’s Financial System
  • Sales tax included on the invoice
Responsibilities: 

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the Supplier are to ensure invoices are submitted with a valid Georgia Tech PO number to apinvoices@gatech.edu.

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

12/2020

Accounts Payable

Updated to align with Workday

Payment Approval Authorization

Policy No: 
5.5.1.2
Type of Policy: 
Administrative
Effective Date: 
February 2011
Review Date: 
February 2020
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Policy Statement: 

This policy documents the signature approval and authorization requirements necessary to commit Institute funds for the payment of goods, services and other non-payroll expenditures through Accounts Payable.

Procedures: 

Delegation of Approval Authority
The Dean, director, or department heads may delegate the authority to approve payments, but not the primary responsibility of the approver. Delegated signers should always sign their own name, rather than sign the name of the dean, director or department head. Once a signature delegation is provided, it is valid until cancelled by the unit.
 

Responsibility of Approver
The approver must verify the following prior to approval of payment:

  • Receipt of goods or performance / completion of services
  • Confirmation of payment and shipping terms
  • Purchase is appropriate for fund source
  • Purchase matches order including item description, quantity, and unit prices
  • Sufficient funds to make payment are in the indicated amount

The approver is responsible for submitting an approved invoice or Check Request Form for payments to Accounts Payable within ten business days of receipt of merchandise / services or receipt of invoice, whichever is later.

Payment Terms

Policy No: 
5.5.1.11
Type of Policy: 
Administrative
Effective Date: 
April 2011
Review Date: 
July 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Policy Statement: 

General trade vendor payment terms for orders will be net 30 days. Days are calculated from date of invoice, date of receipt of goods/services, or date of receipt of accurate invoice, whichever is later.

General payment terms for employee and non-employee reimbursements is three to five business days. Official guests, visitors, and most other payments paid via the Institute’s Financial System with a Supplier Invoice Request (SIR) do not have payment terms and follow the standard payment turnaround processing time of being processed for payment within five business days from receipt of departmental approval and all other necessary requirements. Construction contractors and OSP sub-agreements will be paid as per the payment terms of the contract.

Payment Turnaround

Policy No: 
5.5.1.3
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
August 2017
Review Date: 
August 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Policy Statement: 

Governor's Executive Order - Prompt Payment of Invoices
Georgia Tech is mandated by Executive Order of the Governor of the State of Georgia to pay vendor
invoices within 30 days from the latter of:

  • Invoice date
  • Date the invoice is received by Georgia Tech Accounts Payable
  • Date goods and/or services are received by Georgia Tech
Procedures: 

Departmental Approval Turnaround
Invoices are entered by Accounts Payable and processed against the PO referenced on the invoice. Invoices that are delivered directly to the department by the supplier must be sent to Accounts Payable at apinvoices@gatech.edu immediately to ensure timely record of invoice delivery. Departments are responsible for entering receipts for all POs $3000 and over and are responsible for managing all invoices that are in match exception status. Delays in approval or receipt entry should be noted in the comments of the applicable fields of the invoice; for example, “Goods received damaged 06/30/2011, replacement anticipated 07/05/2011.”

Accounts Payable is unable to pay invoices that do not reference a valid PO number. The department will be contacted for invoices that do not reference a valid PO, if the department contact is provided on the invoice.
 

Payment Request Turnaround
Accounts Payable is responsible for processing invoices within five business days of receipt of departmental approval and all other necessary requirements, to ensure prompt payment of invoices. It may however be necessary in certain instances that additional processing time is required if all requirements to process an invoice for payment are not met. Therefore, departments should allow at least ten business days for processing an invoice for payment. Should this not be possible, see "Rush Payment Requests". If Accounts Payable cannot process the payment due to missing or incorrect information, Accounts Payable is responsible for alerting department within ten business days. Department will be informed of problem and provided with instructions regarding what is needed to complete the transaction.

Processing Credit Memos and Refund Checks

Policy No: 
5.5.1.10
Type of Policy: 
Administrative
Effective Date: 
April 2011
Review Date: 
July 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Procedures: 

Credit Memo Instructions
Vendors issue credit memos for returned goods as well as pricing discrepancies. If a credit memo is anticipated, for overpayments, exchanges, etc., the department should hold the original or final invoice until it receives the corresponding credit memo. The credit memo and the invoice should be approved and submitted to Accounts Payable for payment. In the event an invoice is processed prior to receipt of the corresponding credit memo, the department can approve the credit, referencing the original campus reference # and account distribution, and submit to Accounts Payable for processing. Future invoice payments from any department will offset credit memos. If the corresponding invoice has been paid, and the department does not anticipate doing additional business with this vendor, the department is responsible for requesting a refund check in lieu of a credit.

Refund Check Instructions
When a department receives a refund check, the associated PO number and account number must be referenced on the check stub and submitted to Accounts Payable.

Suppliers are to mail refund checks to the following address:
Georgia Institute of Technology
ATTN: Accounts Payable
711 Marietta Street, N.W.
Atlanta, GA 30332-0253

Accounts Payable will apply the refund to the appropriate account and deposit it with the Bursar's Office. For state projects, if the refund applies to a current year payment, use the current year account number. If the refund applies to a prior year payment, the surplus account will be credited.

Rush Payment Requests

Policy No: 
5.5.1.4
Type of Policy: 
Administrative
Effective Date: 
March 2017
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable and Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to provide guidance on requests for rush payments and to ensure compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement: 

Accounts Payable is responsible for processing payment requests within five business days of receipt of request, with the exclusion of peak periods. In order to allow efficient processing of all payments, requests should be submitted in a timely manner to allow adequate time for processing.

There will be instances, however, that the campus unit is unable to do this due to circumstances beyond their control. Rush payment requests should only be used in those situations. Additional time and effort goes into providing campus with additional services such as rush payments. Campus units should follow the rush payment request procedures to ensure the payment is processed, and received by the vendor in the necessary time frame. In all cases, suppliers must be registered on the Institute’s Supplier Portal for payments to trade vendors and all payments for rents, royalties, and services.

Same-day checks are not feasible, due to payment processing production schedules. Rush payment requests received by noon, if approved, will be processed within 48 hours.

Procedures: 

3.1 Types of Rush Payments

Supplier Invoice Request (Non-PO Requests)

 

Submit Supplier Invoice Request (SIR) via the Institute’s Financial System using the handling code “RUSH” and provide justification. Comments should also indicate the rush payment.

Additional approval in work flow is required.

Invoices with Purchase Order

 

Submit a ServiceNow request to Accounts Payable with rush request form attached and invoice.  ‘RUSH PAYMENT REQUEST’ must be in the subject line to ensure priority payment processing.

5.2 Rush Payment Process

Procedure for Rush Payments

All rush payment requests require a valid justification as to why an exception should be granted outside the standard processing time. Any rush forms with incomplete information or insufficient supporting documentation will not be processed and will be returned to the requestor.

The Accounts Payable Manager will initially review to ensure all required fields on the payment request form have been completed and sufficient documentation has been provided.

All rush payment requests must be approved by the Director of Accounts Payable & Travel prior to being processed.

Invoice Payments

The invoice must be approved and have an appropriate PO reference and sufficient encumbrance balance to cover the payment. If the PO is $3000 or greater, a receipt must be entered in the Institute’s financial system delayed. Submit the invoice with the approved rush payment request form as a ServiceNow request to Accounts Payable with ‘RUSH PAYMENT REQUEST’ in the subject line to ensure priority payment processing.

Responsibilities: 

Departments are responsible for submitting rush payment request with valid justification and appropriate approvals.

The Accounts Payable Manager will initially review to ensure all required fields on the payment request form have been completed and sufficient documentation has been provided.

All rush payment request must be approved by the Director of Accounts Payable & Travel prior to being processed.

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

12/2020

Accounts Payable

Updated to align with Workday
     

Student Payments

Policy No: 
5.5.1.9
Type of Policy: 
Administrative
Effective Date: 
April 2011
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to ensure that all Georgia Tech Student payments (fellowships, stipends and awards) processed through Accounts Payable are in compliance with the taxation rules and regulations of Internal Revenue Service (IRS).

Policy Statement: 

All payments to Georgia Tech students for research training grants, participant support, and scholarship/fellowships must be approved by Accounting Services Financial Aid Team prior to payment by Accounts Payable. Payment requests for students will be forwarded to the Office of Scholarships & Financial Aid prior to payment by the Accounts Payable Team. Accounts payable process payments to students for awards or activities that are unrelated to employment.

The Internal Revenue Service (IRS) Publication 970: Tax Benefits for Education covers the rules for the taxation of student scholarships and fellowships. The publication states that the part of any grant, scholarship, or fellowship that represents payment 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 required by federal law to withhold taxes on fellowships that require the student to perform services (past, present or future) to receive the award. Students that are required to perform a service as part of the fellowship agreement, must be classified as employees and payments are processed through the Payroll process. The consequences of not properly withholding the taxes may cause the Institute to incur serious financial penalties. The department is responsible for determining if a student’s fellowship/trainee award requires that a service be performed. The Office of Human Resources can assist departments that need clarification regarding proper employee classification.

Scope: 

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting student payment requests.

Procedures: 

4.1 Student Payments

Student Payments – Georgia Tech Students

 

Students are to be set up as suppliers in the Institute’s Financial System in order for their payment request to be processed via Accounts Payable. Payment requests for student payments are to be submitted as Supplier Invoice Request via and submitted via the Institute’s Financial System. Accounts Payable will report payment to the Office of Scholarships and Financial Aid appropriate for compliance review and approval before processing for payment. This additional review should be taken in to consideration as it may increase the turnaround time for processing the payment. Allow 10 business days before contacting AP to inquire on the status of payment

Stipends for Participant Support – Georgia Tech Students

Accounts Payable will process the following student payments:

  • Award/Prize
  • Honoraria/ Performer
  • Student Group Officer
  • Advisor/Student Mentor
  • Research/Survey Participant
  • Human Subject Payment

Payment via Payroll

Students who perform any of the following type of services for Georgia Tech are to be on boarded as employees, and the payments are to be routed to Payroll:

  • Campus Recreation Center (CRC) –
  • Graduate Research or Teaching Award –
  • Note Takers –
  • Technique Newspaper –
  • Wreck Radio

Foreign Student Payments

  • Non-US tax residents are required to have an appropriate visa classification that permits payment of honoraria. These classifications include Visa Waiver, B-1, B-2, or J-1 visas. Students receiving payments for an award or for participation in a research/survey are required to have a F-1 or J-1 visa.
  • Payee set-up forms are initiated through the Georgia Tech GLACIER system for all payment requests $75 and over. Departments are to initiate this process by providing the payee's full name and email address and submitting a ServiceNow request to AP Accounting.
  • Tax withholding at 30% applies to most payments that are not classified as reimbursements. Contact Ap Accounting by submitting a ServiceNow request for further information regarding the appropriate visa classification to be used for payments to Non-US tax residents

Tax Implications

Student payments are reportable to the Internal Revenue Service (IRS) as non-employee compensation.  This compensation will be reported on Form 1099-misc box 3 or 1042-s (non-US tax residents), where required.  Students should consult a tax professional for advice and counsel to ensure these payments are reported correctly when taxes are filed.  

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 requires services to be rendered before receipt of payment.

Accounts Payable is responsible for ensuring appropriate taxes are withheld prior to payments processed for students through Accounts Payable.

Policy History: 

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday
04/2011 Accounts Payable New Policy

Supplier Invoice Request (SIR)

Policy No: 
5.5.1.6
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The purpose of this policy is to provide guidelines on the submission of Supplier Invoice Request (SIR) process used for payments that do not require a purchase order in accordance to the University System of Georgia, Department of Administrative Services (DOAS), and Institute payment policies.

 

State regulations do not permit payment prior to receipt of goods and services, with the exception of subscriptions, institutional memberships, or postage, shipping, or where specifically required by the contract/agreement. Consequently, campus units should not use the Supplier Invoice Request (SIR) for pre-payment of goods and services, unless approved by the Purchasing Director.

Policy Statement: 

All payments that do not require a purchase order are to be submitted on a Supplier Invoice Request (SIR) via the Institute’s Financial System. Official invoices require a valid Georgia Tech purchase order number before payment can be processed and are not be submitted.

Scope: 

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting requests for payment on behalf of the Supplier.

Policy Terms: 

Suppler Invoice Request (SIR)

Payments that do not require a purchase order and submitted via the Institute’s Financial System.

Payee Information

Name of recipient (organization or individual) payment is payable to.

All payees for supplier invoice requests must be set up as suppliers in the Institute’s Financial System before payment can be processed.

Procedures: 

5.1 Supplier Invoice Request Submission

Supplier Invoice Request (SIR)

All requests that do not require a purchase order are to be submitted via the Institute’s Financial System along with supporting documentation justifying the payment.

5.2 Payment Types

Affiliate Transfer, (formerly Inter-Agency Transfer) Affiliated Organization Joint Staffing

Transfers to the Georgia Tech Foundation, GTRC, GTAA, and other state agencies. These may be for expenses related to joint-staffing arrangements, co-sponsored events, or authorized transfers between affiliated organizations.

Department of Homeland Security

Processing fees associated with visas and associated expedite fees. The individual’s name must be included; however, back-up documentation is not required for standard H-1B processing fees.

The following information must be provided:

 Invoice# = LAST NAMEmmyy(Last name +month and year)

Honorarium

One-time payments for short-term services with no expected deliverable, payable to individuals. Short-term is typically defined as nine business days or less within the last six months. Services over a longer period must be contracted and will require purchase order. Honorariums should typically not be greater than $5,000 unless a special exception has been granted by the Director of Accounts Payable.

Legal Settlements

Submitted along with supporting documentation justifying the payment.

This does not include payment for legal services. Payments to attorneys must be authorized by the Georgia Tech Office of Legal Affairs and require an invoice and a purchase order.

Non-Georgia Tech Student Training Stipends

Supplier invoice requests to be submitted for three payments or less. Recurring supplier form (Workday Recurring Form) to be submitted for three or more recurring payment requests of the same amount and emailed to apinvoices@gatech.edu.

Postage/ Shipping/ Mailing Services

           And

Telecommunication/ Utilities/ Services Paid to Provider

Invoices payable to the service provider for these types of services can be processed using a supplier invoice request and submitted via the Institute’s Financial System. For recurring monthly invoices, ensure that the approved amount is the current monthly charge and does not include a prior month’s un- posted payment.

Registration Fees (Conference or Workshop)

Payment of registrations fees are only permissible for employees, students, or official guests/visitors. A registration form must be included as supporting documentation and Accounts Payable will send a copy with the check. Registration associated with college courses for credit cannot be processed via a supplier invoice request.

Subscription, Membership or Certification Fee

A subscription or membership form, estimate, or order form must be included to support the payment request.

Memberships and Certifications must be related to job function and must provide services beneficial to Georgia Tech.

Student Payments

The supplier invoice request is to be used to request payments to students for awards or activities that are unrelated to employment.

Student performing a service are to be on-boarded as employees via Office of Human Resources.

Student Center Performer/Service Provider

Payments to performers and artists as specified in the Ferst Center performance contract may be paid with a supplier invoice requests. A copy of the agreement but be submitted as supporting documentation.

Foreign Payments

A supplier invoice request may be submitted for non-purchase order expenses only.

Wire Payments

A supplier invoice request may be submitted for foreign/international non-purchase order expenses only.

Responsibilities: 

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting Supplier invoice requests for payment on behalf of the supplier are to ensure payments are allowable and supporting documentation is submitted. Payment for goods or services rendered require an invoice and a valid purchase order, and are not to be submitted as a supplier invoice request(SIR) through the Institute’s Financial System.

Enforcement: 

Supplier invoice requests submitted without required information or do not meet the requirements outlined in this policy are at risk of delayed payment or not receiving payment for goods or services rendered.

To report suspected instances of Ethical Violations with this policy, 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

12/2020

Accounts Payable

Updated to align with Workday, policy title change
08/2017 Accounts Payable General updates

2/2011

Accounts Payable

New Policy

Types of Payments

Policy No: 
5.5.1.1
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
November 2020
Review Date: 
November 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Procedures: 

Payments processed by Accounts Payable for goods and services may generally be classified into the following types:

Payment Type Description
EFT EFT payments are made as a direct deposit for all active employee reimbursements. Establishment of EFT Detail is through TecWorks via One USG Connect Employee Self-Service. .
ACH ACH payments are available for all non-employee payments. Establishment of ACH Is through Georgia Tech’s Bank of America PayMode system. A registration link is available on the Procurement & Business Services website located on the Suppliers webpage
Check The standard payment process is via a paper check mailed to the remit address on the invoice or supplier invoice request.
Wire Transfer International payees can receive funds in US or foreign currency by the completion of the Wire Transfer Request Form. The is to be attached to the payee request at the time of submission.
PCard The PCard can be used for payment by Institute employees for authorized business purchases within the delegated authority limit. For further details refer to the P Card policy located on the Procurement & Business Services website.

Vendor Registration, Maintenance and Inquiries

Policy No: 
5.5.3
Type of Policy: 
Administrative
Last Revised: 
April 2012
Review Date: 
April 2020
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable/Travel
Contact Email: 
Vendor.help@business.gatech.edu
Procedures: 

New Vendor Registration
A new trade, service, individual, or consultant vendor may be set up upon submission and approval of a Georgia Tech Vendor Profile Form. The Vendor Profile Form includes data required for IRS, State and Federal, and SBA reporting (note: registration vendors must supply FEI/EIN on the registration form, otherwise a Vendor Profile Form will need to be submitted). In rare cases, as italicized below, IRS Form W-9 may be submitted in lieu of a Vendor Profile Form (legal settlements, estate checks and various government entities). Form W-8 and the Foreign Vendor Profile Form must be submitted for all foreign companies, partnerships, organizations, institutions, and individuals. Links to the Vendor Profile Form can be found on the Vendor/Supplier Information Bank. IRS W-9 and W-8 forms and instructions can be accessed via the irs.gov website.
Exceptions for the requirement for submission of a Vendor Profile Form, W-9, or W-8 are listed below:

  1. Human Subject Participants with expected annual payments of less than $600. The department financial administrator or PI will maintain appropriate documentation to determine if $600 reportable IRS income has been attained in any calendar year and contact Accounts Payable with details.
  2. Non employee expense payable vendors based on supporting documentation provided on the Check Request Form or Travel Expense Statement. Examples include student key deposit refunds, expense reimbursements for faculty candidates and other official guests/visitors, and parking refunds.
  3. Subscriptions

Vendor Maintenance for Established Vendors
A new Vendor Profile Form or a W-9 is required whenever critical information on the form changes. Critical information includes a change in the vendor name, tax ID, SBA classification, or conflict of interest indicators. A new form is not required to update phone numbers or address information. Please forward notification by e-mail, fax 404-894-8552 or mail to:
Georgia Tech Accounts Payable
711 Marietta Street
Atlanta, GA 30332-0253

Vendor Review and Approval Process
All new vendors are subject to approval prior to establishment in the Business Services vendor database. A vendor must be registered before it can be selected for BuzzMart purchase orders.

Conflict of Interest, Ethics and Unlawful Actions
Georgia Tech subscribes to the State's Code of Ethics for Governmental Service. All procurements are subject to the Georgia Vendor Manual, in particular, Chapter 9, Ethics and Unlawful Actions. Any apparent or potential conflict of interest between the vendor and a Georgia Tech Employee must be defined. If the conflict would not disqualify the vendor for obtaining business under certain conditions or circumstances, an understanding of those conditions or circumstances must be part of the vendor record.

Employee vs Independent Contractor
If the prospective vendor is an individual or a sole proprietor that is performing a service, Procurement Services, with the assistance of the Human Resources Department, will make a determination of the proper classification status. Retired or ex-employees that return to Georgia Tech to perform a service similar to that performed when they were an employee, will be classified as an employee through Payroll. For more information regarding this topic, please see "consultants individuals and firms".

Foreign Vendor Exclusion List
The Department of Treasury's Office of Foreign Assets Control (OFAC) maintains a list of individuals and organizations that we are prohibited from doing business with. Please refer specific issues regarding vendors that may appear on this list with the Office of Legal Affairs.

Vendor Inquiries
The Accounts Payable department will answer inquiries from vendors regarding the status of delinquent invoices. Accounts Payable will serve as a liaison between the campus department and the vendor. Georgia Tech must strive to maintain and promote a satisfactory credit standing with suppliers. Prompt payment of invoices and responses to inquiries is necessary in order to achieve this goal. Vendor inquiries for invoices over 30 days old will be referred to the campus unit for action. Georgia Tech's Credit Reference Letter, tax exemption forms, and Georgia Tech's IRS W-9 are available on the Vendor/Supplier Information Bank: from Accounts Payable via e-mail or 404-894-5000.

Contracts

Policy No: 
5.4
Type of Policy: 
Administrative
Last Revised: 
December 2020
Review Date: 
December 2023
Contact Name: 
Ajay Patel
Contact Title: 
Director of Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Reason for Policy: 

To provide an understanding of who is authorized to execute contracts on behalf of Georgia Tech.

Policy Statement: 

All contracts entered in the name the Georgia Institute of Technology are subject to the Policies and Procedures of the Board of Regents. In addition, many of Georgia Tech’s contracts are subject to State purchasing regulations as well as other legal restrictions and requirements for State contracts.

Few people within the Georgia Tech community are authorized to sign contracts on behalf of Georgia Tech. The Delegation of Presidential Authority Memorandum lists the authorized signatories and the type of contract that said signatory may execute.    No person may sign a contract on behalf of Georgia Tech without specific written authorization from the President or other legal authorization. State law provides that persons who are not authorized to enter into contracts on behalf of Georgia Tech or who do not comply with all applicable State laws and regulations may be personally liable for the contractual obligations including but not limited to all costs.

Georgia Tech’s purchasing authority for Construction and Public Works has been delegated by the Board of Regents (BOR) of the University System of Georgia. Georgia Tech is exempt from Department of Administrative Services (DOAS) purchasing regulations for Construction and Public Works contracts; however, Georgia Tech must comply with all applicable BOR policies and regulations. Construction and Public Works purchases are managed by the Georgia Tech Facilities Management Department.

Scope: 

This policy applies to all Georgia Tech faculty and staff members.

Policy Terms: 

Contract

Any document that creates an obligation, right, or liability for the Georgia Institute of Technology.

Construction or Public Works

"Construction" or "public works" projects and services includes contracts for design, engineering, construction, alteration, modification, demolition, maintenance and repair of fixed assets, as well as consultant contracts relative to such activities. Public works contracts also include all public contracts that are covered by the statutory requirements for a payment or performance bond. As a general rule, if the contract is to be performed on public property and involves a fixed asset, the contract is a public works contract.

Responsibilities: 

It is the responsibility of the Georgia Tech Facilities Management Design and Construction Department to determine if a project or service meets the definition of “construction” or “public works” in order to conduct the purchase in accordance with the applicable rules and regulations.  The President of Georgia Tech shall determine who may sign these contracts. 

It is the responsibility of the Procurement Office to determine the signature authority given to staff in the Procurement and Business Services Department. This determination shall be made based upon the authority delegated from DOAS and by the President of Georgia Tech. 

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

Gift Card Policy

Policy No: 
5.6
Type of Policy: 
Administrative
Effective Date: 
March 2014
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Business Services
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable and Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

This policy addresses gift card usage, as a form of payment to employees and students, for the purpose of incentives, awards, door prizes, gifts for personal accomplishments, and compensation. This policy ensures compliance with IRS tax reporting requirements for employee ‘cash equivalent’ payments and codifies the Institute practice that prohibits distribution of gift cards to employees.

Policy Statement: 

Gift card usage, as a form of payment to employees and students is prohibited for the following purposes:

  • Incentives
  • Awards
  • Door prizes
  • Gifts for personal accomplishments, including retirements
  • Holiday or graduation gifts
  • Compensation

This policy applies to both direct payment for gift cards and reimbursement for the purchase of gift cards, using all funding sources through Georgia Institute of Technology. This policy does not apply to gift cards provided using personal funds. This policy applies to payments made through the Georgia Tech Foundation on behalf of the Institute. Employees that receive allowable extra compensation can be compensated through Payroll through either the Awards and Prizes Form payment process (Policy 10.12) or payment request where appropriate. For further information on this please contact the Office of Human Resources.

Gift card usage is allowable for the following purposes:

  • Research participants that participate in sponsored research activities
  • Students that participate in student surveys or activities

In all cases, use of an appropriate funding source is required. Gift cards cannot be purchased with state funds. The use of sponsored funds (if specified in grant), Georgia Tech Professional Education, Georgia Tech Foundation and GTRC funds are allowable for the purchase of gift cards for the above purposes only. The selection of gift cards, as a method of payment, should be used only when the gift card is the most economical and efficient payment method.

Scope: 

This policy applies to all Georgia Tech staff, faculty, students and researchers.

Policy Terms: 

Gift Card

A preloaded debit card or certificate that allows the cardholder to use it for the purchase of goods or services at either a specific retailer or anywhere that accepts major credit cards.

Procedures: 

5.1 Gift Card Purchase

Payment of Gift Cards

 

Where allowed by the Institute’s Procurement Policy, gift cards can be purchased using an established supplier that accepts a Georgia Tech purchase order. The Georgia Tech PCard cannot be used for the purchase of gift cards.

Reimbursement for Purchase of Gift Cards

 

Where allowed by the policy, an employee may purchase gift cards and seek reimbursement through the Institute’s Financial Management System. IRB approval and protocol number along with a detailed description of the research study is to be provided as supporting documentation. The reimbursement will be processed via Accounts Payable.

Tax reporting for Georgia Tech employees

 

Employee payments related to research or participation are not classified as employee compensation and will be reported through the Accounts Payable 1099-misc form reporting process if the employee receives $600 or more in any calendar year.

Tax Reporting for non-Georgia Tech Employees

 

Payments to recipients is to be reported through the Accounts Payable 1099-misc form reporting process if the payee receives $600 or more in any calendar year.

Responsibilities: 

The recipients of gift cards are ultimately responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS.

Department is responsible for keeping track of when recipients of gift cards reach the $600 threshold within a calendar year, and reporting this to Accounts Payable for 1099 Misc. tax purposes.

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
12-2020 Accounts Payable Updated to align with Workday
09-2018 Accounts Payable General updates
03-2014 Business Services New policy

Overview and Procurement Authority/Responsibility

Policy No: 
5.1
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
August 2020
Review Date: 
February 2023
Policy Owner: 
Business Services
Contact Name: 
Frans Barends
Contact Title: 
Sr. Director, Business Services
Contact Email: 
frans.barends@business.gatech.edu
Reason for Policy: 

To provide an understanding of the main responsibility of the Procurement and Business Services Department as well as where and how the Georgia Tech Procurement Office receives its purchasing authority for supplies, materials, and services exclusive of public works services.

Policy Statement: 

Procurement & Business Services under the direction of the Sr. Director of Procurement & Business Services is responsible for supporting all activities related to the procurement and payment of goods and services, assets and insurance in support of Georgia Tech’s instructional, research and public service programs. Procurement & Business Services is comprised of Accounts Payable/Travel, Business Systems/Analytics, Insurance/Property Control, Logistics/Surplus Property and Purchasing.

  • Accounts Payable/Travel is responsible for the prompt and accurate payment of the non-salary expenditures of the Institute that are within the regulatory framework established by federal, state and Institute authorities.
  • Business Systems/Analysis is responsible for functional system support of all Business Services applications, user support, data reporting and analysis and application testing and implementation.
  • Insurance/Property Control is responsible for the accurate recording and insuring of the Institute’s assets.
  • Logistics/Surplus Property is responsible for the transfer, sale and disposal of Institute property.
  • Purchasing is responsible for procuring affordable quality equipment, supplies and services in a timely manner within the guidelines established by federal, state and Institute policies.

Guidance for the performance of these functions and responsibilities is provided from several sources. The primary authorities are:

  • The Department of Administrative Services (DOAS), the agency empowered by the Purchasing Act, State of Georgia annotated Code 50-5
  • State Accounting Office
  • State of Georgia Purchasing Manual
  • Board of Regents Policy Manual
  • Georgia Institute of Technology Administrative Policies and Procedures
  • Federal Acquisitions Regulations/OMB
  • State of Georgia Department of Audits

The Sr. Director of Procurement & Business Services, The Director of Accounts Payable/Travel and the Director of Purchasing will establish and maintain policies and procedures to provide for the efficient and responsible conduct of all procurement and disbursement activities.

No employee of the Institute, except as authorized by DOAS or the President’s letter of delegation, is empowered to incur any obligation or make any commitment on behalf of the Institute for the procurement of products, services or equipment unless approved in writing by the Director of Purchasing.

Officers or departments other than Purchasing that have been delegated the responsibility for procurement of certain goods and services must procure those goods and services in accordance with Federal, State, USG and Institute procurement policy.

All procurements must be made for the purpose of Institute-related activities. Purchasing any goods or services for personal use or benefit is prohibited.

Procurement & Business Services is responsible for maintaining records of all procurement, disbursement, asset, disposal and insurance transactions. Institute departments, faculty and staff who have been authorized to use the PCard (see procurement cards "PCard") are responsible for maintaining records of all procurement credit card transactions.

 

Scope: 

This policy applies to all Georgia Tech faculty and staff.

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

8/2020

Procurement & Business Services

Updates to Policy

Procurement of Goods and Services

Procurement of Goods and Services

Policy No: 
5.2
Type of Policy: 
Administrative
Effective Date: 
July 2012
Last Revised: 
January 2021
Review Date: 
January 2024
Policy Owner: 
Purchasing and Procurement
Contact Name: 
Ajay Patel
Contact Title: 
Director of Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Reason for Policy: 

This policy provides guidelines regarding the Institute’s process for procuring goods and services.

Policy Statement: 

Purchasing authority is granted to the College and University Procurement Officer (CUPO) at Georgia Institute of Technology by the State Department of Administrative Services (DOAS), State Purchasing Division (SPD) and the Board of Regents (BOR). In accordance with O.C.G.A Section 50-5-69, SPD may, at its discretion, delegate purchasing authority to state entities to permit those state entities to make purchases on their own behalf.

In all procurement instances, the Order of Precedence should be followed as described in the Georgia Procurement Manual Section 1.3 unless the goods or services are exempt (see Georgia Tech Policy 5.2.1.2 Exempt Procurements) or procurement requirements have been waived.

The Georgia Tech E-Procurement System and the GT PCard are the Institute’s approved buying methods for procurements from external suppliers. Use of the appropriate buying tool must be in compliance with Institute policies and procedures.  Learn more here. All procurement related questions should be sent to the procurement mailbox via ServiceNow.

Access to the Georgia Tech E-Procurement System may be contingent upon training and/or role responsibility.

All purchase requests must be approved by a financial and spend approver (or equivalent). GT employees may have more than one role in the Georgia Tech E-Procurement System; however, each requisition must be submitted and approved by at least two separate individuals.

The official Institute process for the procurement of goods and services is categorized into the following types unless identified in Policy 5.2.1.2 Exempt Procurements:

  • Purchases within the scope and limits of a Georgia Tech or State of Georgia contract
  • Non-contract purchases less than $25,000 which are delegated to the departments/units
  • Non-contract purchases $25,000 or greater which require formal bidding or publicly posted sole source justification (must be done by the Purchasing Department)
  • Exempt purchases defined in Policy 5.2.1.2 Exempt Procurements may at the discretion of the Purchasing Department, require bidding/sole source justification

A quote from the vendor/supplier should be attached to the requisition for all non-catalog purchases.  For low dollar purchases of items found on vendors/suppliers websites, the Purchasing Department may accept alternate documentation in lieu of a formal quote.  Please contact the Purchasing Department in these cases for acceptable alternative documentation.

Scope: 

This policy applies to all Georgia Tech faculty and staff members.  

Policy Terms: 

Georgia Tech E-Procurement System

Georgia Tech’s E-Procurement System is utilized to establish all purchase requests. Within the e-procurement system, a purchase request is called a requisition. Requisitions must be utilized for all purchases that are not allowable under one of the other purchasing methods (i.e. PCard, check request, or petty cash).

Responsibilities: 

It is the responsibility of the Sr. Director of Procurement and Business Services and the Director of Purchasing to verify that purchases made under their purview are compliant with Georgia Tech, Board of Regents, State and Federal procurement policies and procedures.

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

1/2021 Purchasing Department Updated to align with 2 C.F.R. § 200
12/2020 Purchasing Department Policy updated to comply with Workday and consolidate information

07/2012

Purchasing Department

New Policy

Exempt Procurements

Policy No: 
5.2.1.2
Type of Policy: 
Administrative
Effective Date: 
July 2012
Last Revised: 
November 2020
Review Date: 
November 2023
Policy Owner: 
Purchasing and Procurement
Contact Name: 
Ajay Patel
Contact Title: 
Director, Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Reason for Policy: 

This policy outlines requirements for exempt goods and services that may or may not be reviewed by the Georgia Tech Purchasing Department.

Policy Statement: 

The State Accounting Office (SAO) provides guidance to state entities on when a purchase order is expected in the procurement of goods and services. A purchase order is required for all purchases of goods and services more than $2,499 except as noted in this Policy. For more details, see the State Accounting Office’s Statewide Purchase Order Policy.

For purchases requiring a purchase order, the following are exempt from procurement bidding requirements outlined in Policy 5.2 Procurement of Goods and 5.3 Procurement of Services. These exempt purchases are reviewed by the Georgia Tech Purchasing Department for amounts greater than $2,499 when processed via Georgia Tech E-Procurement System. The Purchasing Department reserves the right to require competitive bidding or sole source justifications on exempt purchases.

  • Exempt goods and services identified by DOAS by NIGP code and posted on their website.
  • Exempt goods and services identified in the State Purchasing Act
Scope: 

This policy applies to all Georgia Tech employees.

Responsibilities: 

Requesting Department/End User
It is the responsibility of the requesting department/end-user to follow any institute, BOR, and state-related policies and procedures regarding exempt procurements.  

Procurement Professional
It is the responsibility of the procurement professional to determine if the exempt procurements reviewed by the purchasing department meet the requirements outlined in any institute, BOR, and state-related policies and procedures.

Policy History: 
Revision Date Author Description
11-2020 Procurement and Business Services Update to policy
07-2013 Procurement and Business Services Update to policy

Procurement of Group Meals for Employees, Students, and Official Visitors

Policy No: 
5.2.1.9
Type of Policy: 
Administrative
Effective Date: 
July 2010
Last Revised: 
November 2020
Review Date: 
November 2023
Policy Owner: 
Accounts Payable
Policy Owners: 
Accounting Services
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Policy Statement: 

Allowable Funding Sources for Purchase of Food and Meals
Institutional funds include all funds to which the Institute holds title, such as student fees, auxiliary revenues, state appropriated funds and departmental sales/service, revenue. The funding source should match the supported program and participants. For example, student activity funds might be used to purchase water for a volunteer event sponsored by a student group. Sponsored funds may be used where specifically permitted in the sponsored agreement. Institutional funds cannot be used to purchase alcohol. Funds collected by the sponsoring institution for intra-institutional events are normally collected in and expended from an agency account created for that purpose.

Employees with responsibility for administering institutional funds and employees requesting reimbursement from institutional funds should ensure that funds are spent only for legitimate business purposes and not for the personal benefit of the employee or other individuals. The misuse of institutional funds may result in both employment termination and various civil and criminal penalties.

Food purchases and reimbursements for group meals/food should be charged to the appropriate spend category for meals within the Institute’s Financial System to ensure compliance with 1099-misc reporting. These accounts will be subject to special audit scrutiny, to ensure that such expenditures are infrequent, rather than routine.

Spend category:
SC727710 - Group Meals - Employees
SC727730 - Group Meals - Students
SC727720 - Group Meals - Non-employees

Procedures: 

I. Georgia Tech Employee Business and Training Meetings using Institutional Funding
Under certain infrequent circumstances, employees may be required to remain at the work site during mealtime. Such circumstances include emergency situations such as natural disasters or significant public safety events, but may also include intra-departmental meetings or training sessions, where the meeting or training session continues during the meal and the employees are not permitted to leave the premises of the meeting site. The following standards will be used when deciding whether a meal may be purchased under this policy:

Group meals should be held only to facilitate the effective and efficient operations of the departments involved. For example, it may be that scheduling an intra-departmental meeting or training session is the most effective and efficient use of employees’ time given teaching schedules, other meeting commitments, etc. In this instance, requiring employees to participate in a meeting over lunch may be the best means available to get the required participants in the same place for the period of time required.

Group meals should only be provided in those instances where the meeting lasts for at least four (4) hours. A meeting less than four hours could generally be scheduled prior to or after a normal meal without significantly impacting employees on different work schedules. The PCard may be used to purchase meals for employees in this scenario.

Group meals held at the start and/or finish of a meeting are not eligible for payment under this policy. Purchase of a group meal is authorized solely as a convenience to the employer and in those instances where employees may not leave for a normal meal due to the time constraints associated with the meeting or training session. Those events not starting until the normal meal time should be delayed until after the normal meal time, or employees may bring employee-purchased food (“brown-bag”) to the meeting.

Authorized group meal expenditures are limited to the purchase of meals only and do not include snacks. Purchase of group meals are to be approved by the Director, Department Head, or his/her designee, prior to the date of the event (for non-emergency situations). The Food / Group Meal Event Documentation Form will be used to document event details and ensure compliance with this policy. All of the documents that were a part of the approval process should be submitted with the payment request.

Meal limits outlined in Georgia Tech Travel Policy "Meals and Incidental Travel Expenses", must be followed. Meal limits apply to the actual food and drink purchased for the meal. Set-up and delivery costs associated with the group meal are allowable and shall not be included in the meal limit calculation.

II. Food and Group Meals for Students, Volunteers, Visitors, and Participants Using Institutional Funding
The purpose of this section is to clarify those instances when food may be purchased for consumption by students, potential students, volunteers and employees using institutional funds. Food includes meals, beverages, snacks, etc., but specifically excludes alcohol as an allowable food expense.

An individual may be subject to different rules depending on the capacity in which they are participating in an event. For example, volunteers might include employees or students if the individual is operating in a capacity separate from their employee or student role. An employee or volunteer attending a student event in the capacity of a student would be considered a student. A student worker participating in an event while being paid as an employee would be considered an employee.

Note: Employees working additional hours in their own area, using work time to provide volunteer service, or otherwise participating in activities expected of employees, are not volunteers for the purposes of this policy.

III. Business Entertainment Meals and Alcohol Purchases using Agency Fund, Foundation or GTRC funding
Institute related entertainment charges and meals purchased for business development include business related breakfast, lunch or dinner, catered meeting, fund-raising or alumni event, etc. Entertainment, individual professional achievement/milestone receptions, holiday and end-of-year receptions, retirement events, faculty recruitment entertainment and extraordinary development activities must be processed directly through the GT Foundation or GTRC.

Business related entertainment charges may only be processed using the funding sources listed below:

  • Custodial funds
  • Routine development activity using Foundation or GTRC funds

Employee business and training meetings are not restricted by the meal per diem limits (see the Promotional Funding for Meals and Entertainment section for additional guidelines) or the 4 hour minimum meeting length that is required for use of Institutional Funds. The Food/Group Meal Documentation Form is required for all payment requests processed through the Institute’s Accounts Payable Team. Alcohol is an allowable expense only if specifically permitted by the funding source or for conference programs that specify receptions in the conference agenda and are funded by participant registration fees, such as the GT Executive Masters program and DLPE conferences.

Link to GT Foundation policy
GTRC policy requires a copy of the invitation or agenda and the number of guests.

Promotional Funding for Meals and Entertainment
Meals and entertainment to conduct official Institute business with external person(s) or for Institute functions with a clear business purpose should be reasonable and appropriate to the occasion. The selection of meal sites and/or catering vendors should be consistent with the image of Georgia Tech and not excessive regardless of funding source. While situations vary for business meals, a guideline maximum for meals involving external parties is $90 per person (includes beverage, tax, and tip). A guideline maximum for a required business meal involving only Institute personnel is $75 per person (includes beverage, tax, and tip). For meal expenses that may exceed the aforementioned guidelines, please discuss the appropriateness of the anticipated cost with your supervisor prior to the event. If GTF funds will be used, request approval by submitting the Foundation Expenditure Exception Request Form outlining the reasons for exceeding the per person threshold. The form can be found at http://www.policylibrary.gatech.edu/files/exception form draft 3_5_14.doc. If GTRC funds will be used, request approval by submitting the GTRC/GTARC Expenditure Request Form found at https://gtrc.gatech.edu/other-forms and include and explanation of the reasons for exceeding the per person threshold.The GT Alcohol Policy should be followed when alcohol is provided.

 

IV. Food and Group Meals Using Sponsored Grant/Contract Funding
Sponsored funding will be treated the same as Institutional funding for the purpose of food and group meal purchases.

As the Institute must comply with federal cost accounting standards, which require consistency in the treatment of costs, the Institute typically cannot use sponsored funds for business related entertainment since Institute state accounts do not specifically allow the purchase of business related entertainment. Therefore, discretion must be exercised when charging such expenses to sponsored restricted accounts. As such, the cost of purchased meals or food within 50 miles of the Georgia Tech headquarters will normally not be allowed as a direct charge to a sponsored restricted project because the Georgia Tech employee or trainee is not "traveling" and the cost is normally considered a personal expense. See below for special circumstances.

In special situations such as all day seminars or meetings when a food, beverage, or meal cost meets the three criteria of allowable, allocable and reasonable to the specified sponsored project, the PI may provide written justification of the business purpose of the expenditures and how they relate to the specific sponsored project including purpose of the meeting, list of attendees, a formal written agenda, and the beginning and end times of the meeting. To be allowable:

  1. Meal or food expenses must be included in the budget and approved by the sponsor.
  2. An agenda must be provided with the request
  3. Must specify each participant on the Food/Group Meal Documentation form
  4. Must be attended by non-Georgia Tech personnel. Meetings comprised of all Georgia Tech personnel are more often designated as an employee business meeting (See section I of policy).
  5. Meal per diem limits are imposed, unless sponsor provides an exception in writing.

Examples of allowable food charges:
Lunch and refreshments provided for periodic all-day meeting of collaborators on a program project (with formal agenda and participants from different locations).
A post-doc being recruited to fill an open position on a research grant. Meal may be charged to the grant since they are on official travel status.
Sponsored projects which specifically allow for business related entertainment

Examples of unallowable food charges:

Meals for lab personnel meeting weekly to discuss progress on the grant

PI has lunch/dinner with a colleague and discusses research

While these expenses may not be allowable on sponsored restricted accounts, they may be reimbursed from discretionary type restricted accounts or directly from the Georgia Tech Foundation.

V. Meals and Receptions Provided in Conjunction with Professional Education Conferences and Institute-sponsored Conferences and Camps
Meals and receptions provided for participants of conferences, workshops, and campus events that are funded by registration fees can be paid through the Institute using participant revenue funds if the meals are specifically noted on the conference agenda and/or registration material. Meal per diem limits are not imposed. The source of funds must be primarily external to the Institute. Campus training designed primarily for Georgia Tech employees must comply with the employee business and training meeting policy, section I.

VI. Meals for Employees, Students, and Guests on Official Travel
Employees who are on official overnight business travel, are eligible for meal reimbursement, according to Institute travel regulations. See Travel policy 6.4 Meal Allowances for detailed policy and procedures.
 

VII. Purchase of Bottled water, Coffee/beverage Service, and Office Snacks
Water and other beverages purchased as part of a group meal are allowable, but the cost of the beverage is rolled into the meal per diem limit. Beverage service and office snacks are not classified as group meals. Institute funds cannot be used the purchase of water and beverage service or snacks purchased for general departmental use. An allowable exception is water/hydration products that are used in compliance with OSHA or for safety related to environmental or workplace conditions. If Foundation funds are used, payment can be processed through Accounts Payable and the Food/Group Meal Documentation Form is not required.

Documentation Requirements and Compliance with Per Diem Limits at Group Events
The Food / Group Meal Event Documentation Form is used to provide documentation for all group meal purchases funded with institutional, sponsored, and Foundation funds processed through Accounts Payable or via the PCard. This form serves to document details of the event, participants, and the approval signature of the department head that is required for employee business meetings using Institutional funds. The original receipt or invoice must accompany all payment requests and/or PCard documentation.

While the meal per diem limits also apply to group events where food is purchased on a group basis of more than 15 participants (pizza parties, buffets, etc), departments are not required to document the actual numbers or names of participants; However, an estimate of the number of participants should be noted to certify that the appropriate per diem limits were followed.

In the event that an employee expends funds in excess of the authorized State of Georgia per diem (see "Meals and Incidental Travel Expenses"), then the amount spent in excess is considered a personal expense and is not reimbursable to the employee or payable to the catering vendor.

Meal per diem limits apply only to food purchased with institutional funds. Food purchased by outside organizations does not fall under the scope of this policy. However, employees must comply with the provisions of BOR Policy 8.2.18.4: Gratuities as it pertains to receiving gifts.

Payment Process

  • Reimbursement for employees are to be claimed on an expense report and submitted through the Institute’s Financial System using the appropriate spend category for Group Meals
  • Invoices should reference a valid GA Tech PO number and are to be submitted directly to apinvoices@gatech.edu
  • P-Card (only for group meal expenses that comply with meal per diem limits and employee meeting length restrictions. No bottled water, coffee/beverage service or snacks). Review PCard policy 5.2.1.8 for specific requirements.

Regardless of payment method, documentation of the purchase must be submitted as outlined above in support of the payment. Itemized, original receipts are required.

Payment for entertainment and extraordinary development activities, including the purchase of alcohol will be via the Foundation or GTRC Check Request process processed directly through the Foundation or GTRC. Original, itemized receipts are required in addition to the other documentation (invitation, agenda, etc) to support the request.

Payments made directly through Georgia Tech Accounts Payable or via the Pcard are exempt from sales tax. Payments made through the GT Foundation and GTRC are subject to sales tax.

Authorized Caterers for Events on Georgia Tech Campus
University System of Georgia policies grant exclusive rights to provide food services on campuses to Auxiliary Services. See the Catering Providers Policy for details regarding authorized caterers and policy details.
 

The Food/Group Meal Procurement form, and links to related policies are available via the Business Services Web Site: http://www.procurement.gatech.edu/payables/food-policy

 

Policy History: 
Revision Date Author Description
09-2021 Accounts Payable Editorial Updates
11-2020 Accounts Payable Updated terminology and process to align with Workday implementation
09-2013 Accounts Payable Update to policy
08-2013 Policy Library Updated link to Procurement Forms

 

 

Reimbursements for Purchases Made Using Personal Funds

Policy No: 
5.2.1.5
Type of Policy: 
Administrative
Effective Date: 
September 2017
Last Revised: 
November 2020
Review Date: 
November 2023
Contact Name: 
Ajay Patel
Contact Title: 
Director of Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Reason for Policy: 

This policy outlines the expectation that individuals that have a procurement need will utilize the Institute’s procurement tools and processes to verify compliance with state, federal and Institute purchasing policies, and minimize institutional risk.

Policy Statement: 

The Institute will reimburse employees for out-of-pocket expenses incurred during the execution of Institute business. Substantiation of reimbursable expenses must detail who incurred the expense, what was purchased, where the transaction occurred, the date the transaction occurred, and the business purpose of the expense.

Convenience and/or a lack of proper planning are not legitimate reasons to circumvent standard institute procurement processes. Use of personal funds, up to $500 per day or event, is allowed only when logistical or extenuating circumstances occur that preclude use of the Georgia Tech E-Procurement System procurement process or PCard. All reimbursements should be submitted within 45 days of incurring the expense and must be allowable by the funding source being charged.  Allowable exceptions to this policy are noted below. Any other exception must be approved by the Director of Purchasing in advance.  Any requests for reimbursements that do not meet the criteria specified in this policy may not be reimbursed.

Reimbursement for Purchase of Supplies, Equipment
Use of personal funds for the purchase of goods incurs additional cost due to sales tax and non-contract pricing, in addition to the loss of procurement data metrics necessary for strategic sourcing activities. Reimbursements for goods and supplies should only be made for small dollar items less than $500 where it is not practical or possible to make the purchase using standard institute procurement processes. Purchases over $500 that have not been approved by the Director of Purchasing may be classified as personal purchases and may not be reimbursed. 

Reimbursement for Payments Related to Personal Services, Rentals, and Royalties
Payments for personal services (consultants, temps, awards and prizes, rentals, royalties, and honoraria) must be processed through the Institute via the Procurement and Business Services’ procurement process, regardless of dollar amount, to ensure compliance with IRS and other federal regulations.

Allowable Exceptions

  • Travel expenses for individuals
  • Conference and meeting registration fees
  • Cell phone/internet expenses (mobile and home use) Note: This does not include mobile device purchases
  • Agency fund (as defined in the chart of accounts) purchases
  • Study abroad expenses incurred during overseas activity
  • Small dollar research participant payments (< $75/person) where check payment is not practical or possible
  • Allowable restaurant meal purchase associated with an official GT conference/event/meeting
  • Staff Tuition Reimbursement Assistance Program (STRAP) tuition reimbursements
  • Campus Recreation Center (CRC)/Outdoor Recreation Georgia Tech (ORGT) reimbursements for trip leaders (Alaska, National Parks, etc)
  • Allowable food/beverage supplies purchased at retail store
  • Business center supplies/printing/shipping incurred while on travel status
Scope: 

This policy applies to all Georgia Tech faculty and staff members. 

Procedures: 

Reimbursement to Employees

Expenses
Employees may be reimbursed via Expenses in the Georgia Tech E-Procurement System for supplies and allowable expenses up to $500. Reimbursement requests for the allowable exceptions, referenced previously, are allowable for amounts over $500, if approved by the unit financial approver. Reimbursements associated with program and participant research advances are processed via Expenses.

Reimbursements
Reimbursements for employees that pay for meal expenses for official guests/visitors, or seek reimbursement for food/group meals, may also be reimbursed via Expenses in the Georgia Tech E-Procurement System. In that case, documentation requirements include the Food Group Meal Documentation Form, list of attendees (if less than 15), an agenda and an itemized receipt. Employees should not pay for travel-related expenses on behalf of other GT employees, due to state reporting requirements. In all cases, the receipt is to be the vendor's normal and customary receipt. The receipt must reflect the vendor's name, date of purchase, quantity, description, price of items purchased and the total amount paid.

Reimbursement to Non-Employees

Supplier Invoice Request (SIR)
Non-employees (including Students) will be reimbursed through Accounts Payable via the Supplier Invoice Request in the Georgia Tech E-Procurement System for approved reimbursements up to $500. Allowable exceptions outlined above apply to non-employees.

Petty Cash Replenishment/Reimbursement Request Form
Reimbursements for students, up to $250, may also be made through the Bursar’s Office petty cash process by using the Petty Cash Replenishment/Reimbursement Request Form.

Policy History: 
11/2020

Purchasing Department

Updated to align with Workday implementation.

04/2019

Purchasing Department

Policy updates.

09/2017 Purchasing Department New Policy

Unallowed Procurements or Sensitive Procurements

Policy No: 
5.2.1.3
Type of Policy: 
Administrative
Effective Date: 
May 2018
Last Revised: 
November 2020
Review Date: 
November 2023
Policy Owner: 
Purchasing and Procurement
Contact Name: 
Ajay Patel
Contact Title: 
Director of Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Policy Statement: 

A purchase that is contrary to the rules and regulations established by State Purchasing Division or Board of Regents shall be void and of no effect. Any official of a state entity or institution who willfully purchases or causes to be purchased any materials, supplies or equipment contrary to the rules and regulations will be personally liable for the cost thereof. If paid for from state funds, the amount may be recovered in the name of the state. (O.C.G.A. Section 50-5-79)

Procurements for Personal Use Using State Funds

It is unlawful to make procurements for the personal use of an employee. While it is difficult to define specifically all such goods and services, the following list includes examples of items which have been denied (by State Purchasing, other state agencies and Georgia Tech) on the grounds that the apparent end-use is primarily personal in nature:

  • Holiday decorations and cards
  • Cut flowers/plants
  • Entertainment and recreational activities
  • Alcoholic beverages
  • Bottled water, coffee and beverage service, snacks
  • Watches, groundbreaking shovels and other items to be granted as a donation or gratuity in favor of a person, corporation or association
  • Dues to a Chamber of Commerce
  • Clothing, such as tuxedos, used for commencement services or other personal use
  • Personal moving expenses, other than authorized relocation expenses
  • Airline club memberships
  • Gifts and gift cards

Procurements by Employees

The Board of Regents (BOR) Policy Manual, Statement 7.7.2 states the following:

  • Employee Purchasing: Absent a specific and approved exemption in state law or as approved by the Chancellor, USG employees shall not purchase goods or services for personal use through channels used in the purchase of goods and services for USG operations. 
  • Printing for Charitable Campaign
    • In September 1992, the Chancellor’s Office of the Board of Regents made a ruling to allow the printing of the Charitable Campaign material from state funds.
  • Animals for Research
    • Animals procurements for research and teaching activities must have prior approval by the Georgia Tech Institutional Animal Care and Use Committee (IACUC)
  • Radioactive Materials
    • All procurements of radioactive materials/isotopes and any X-Ray generating devices are governed by the GT Radiation Safety Committee (GTRSC) to maintain compliance with the Georgia Department of Community Health or the license granted by the Georgia Department of Natural Resources. All procurements of radioactive material/isotopes and any X-Ray generating devices must be approved by the GT Office of Radiological Safety. The Office of Radiological Safety procedures and forms can be found at www.ehs.gatech.edu/radiation.
Scope: 

This policy applies to all Georgia Tech faculty and staff members.

Procedures: 

Unauthorized Purchase
If a purchase request/requisition has been submitted in the Georgia Tech E-Procurement System and the buyer ascertains that the purchase has already occurred or that work has commenced, the requisition may be subject to rejection and the purchaser required to follow unauthorized purchase procedures.

Procurement Cards (PCard)

Policy No: 
5.2.1.8
Type of Policy: 
Administrative
Effective Date: 
April 2017
Last Revised: 
August 2020
Review Date: 
August 2023
Policy Owner: 
Purchasing and Procurement
Contact Name: 
Ajay Patel
Contact Title: 
Director of Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Policy Statement: 

The Georgia Tech Procurement Card (PCard) is a purchasing card that may be used by Institute employees for authorized business purchases within the delegated authority limit. The Pcard is a tool for purchases of non-equipment, business related items under the cardholder’s single transaction limit in the approved PCard Plan (for vendors who are not currently setup in Georgia Techs's E-Procurement System or for vendors with whom we expect to only make one purchase). Effective, April 1, 2017, the State of Georgia PCard Policy changed which requires all State Agencies participating in the Card Program to have an approved PCard Plan. This PCard Plan was signed off by the Institute's President and the Institute's Chief Financial Officer (Chief Business Officer) and approved by the Department of Administrative Services in conjunction with the Office of Planning and Budgeting at the State level. Cardholders must follow State of Georgia (DOAS), Board of Regents (BOR), and Georgia Tech purchasing policies and strive to obtain the maximum ultimate value for each dollar of expenditure. Additionally, Institute employees and officials assigned PCard responsibilities should familiarize themselves with the provisions of public law governing PCards to include Title 50, Chapter 5, Article 3 of the O.C.G.A. at:

To view text click here: § 50-5-83. Definitions; requirements for state purchasing card program

The use of the card is beneficial to the individual purchaser, the purchaser's department, the Institute, and the suppliers. It simplifies the purchasing and payment process and expedites receipt of goods. The PCard provides significant cost savings to Georgia Tech while providing electronic control and accountability. Any vendor that accepts Visa will accept the PCard.

Scope: 

This policy applies to all employees.

Policy Terms: 

General Information & Definitions

Approver - The non-subordinate employee designated by the unit to review and verify cardholder transactions.

Billing Address - The campus billing address of the individual cardholder. Address should include mail code. The Billing Address may be requested by vendors for order verification.

Procurement and Business Services – The Georgia Tech organization responsible for the overall administration of the PCard Program.

Billing Date (Bank Posted Date) – The date the vendor transmits your purchase information to the bank for posting to your PCard account (Not necessarily the date you made the purchase). Visa’s vendor contract requires account billing upon shipment of an order.

Billing Phone Number - The campus phone number of cardholder. May be requested by vendors for order verification.

Cardholder - Employee who has been issued a PCard.

Card Issuer - Bank of America, the bank issuing Georgia Tech’s PCard.

Concur – Web based software that contains the online monthly company billed statement. Statements are approved via automated approval workflows. Project redistributions and account itemizations are completed in Concur and documentation is uploaded to each transaction that posts.

Cycle Cutoff - The date the monthly statement is issued, the 27th of each month

Department Head - For purposes of these instructions refers to the VP, Dean, Director, or Department Head with budget authority for unit. This authority cannot be delegated.

Director of Purchasing – Responsible for the acquisition of goods and services at Georgia Tech. Serves as the Institute’s primary liaison with the Georgia Department of Administrative Services (DOAS).

Employee Agreement Form - The written agreement between Georgia Tech and the cardholder.

Forms and Manuals – Forms and user manuals are available online at the Procurement and Business Services website at www.procurement.gatech.edu . Revisions to the forms and manuals may be frequent. All employees should check the website often for current versions.

Georgia Tech E-Procurement System - Web-based software that contains online record of Pcard transactions, which are verified and reconciled by cardholders. Transactions are then approved via automated approval workflows.

PCard Administration – Procurement and Business Services unit that manages the day-to-day operations of the Institute’s PCard Program.

PCard Program Manager - Procurement and Business Services representative responsible for PCard program. Serves as the Institute’s official liaison with State Cards Program Manager.

PCard Administrator – Procurement and Business Services representative that assists PCard Program Manager administer PCard program.

PCard Coordinators - Department representatives responsible for facilitating the Procurement Card Program within their departments.

PCard Helpdesk – PCard Administration point of contact to assist with questions/concerns, available via phone at 404-385-5578 or e-mail at pcard.ask@business.gatech.edu.

Procedures: 

General Guidelines
The purpose of this PCard Policy is to provide Institute guidelines for the issuance and use of the PCard along with instructions for reconciliation and review of transactions. The Policy will be reviewed for adequacy by the Institute’s PCard Program Manager annually.

Safeguarding of the Institute's Assets

  • Rebates or refunds from vendors shall be the property of the Institute and shall be paid promptly into the Institute’s accounts.
  • Criminal and consumer credit checks will be performed in accordance with BOR and DOAS policy. The Institute will ensure that the results of background checks are provided the privacy protections required by law.
    • New cardholders, are required to have criminal and consumer credit checks prior to being issued a PCard. Additionally, credit checks must be done again at the time of card renewal.
  • Cardholders will be required to personally reimburse the Institute for purchases made that are not appropriately documented.  Approving officials may be required to reimburse the Institute if the approving official approved the purchase.
  • Habitual loss of receipts/documentation may require personal reimbursement by the cardholder and/or approver and may also result in termination of the PCard.
  • Items of value purchased for distribution to students are allowed only in support of the educational objectives of the Institute.  Additionally, the cardholder must maintain sufficient documentation to identify the individual receiving an item.  The requirement to track individual recipients does not apply to items of de minimis value.
  • Departments must ensure that PCards are promptly cancelled upon employee transfer or termination.

  • PCard purchases can only be shipped to GT addresses. Items shipped to non-GT locations must have written approval from the cardholder’s supervisor and the PCard Administrator.

Card Issuance

  • PCards may be issued to “permanent, regular-status” employees only. No student employees, affiliates or Tech Temps may be issued cards. Only one card is allowed per employee.

  • Authorization - A PCard Request Form is completed by/for the employee and then signed by Department Head to indicate authorization, cardholder spending limits, and cost allocation information. Spending limits should be determined based on the cardholder’s job responsibilities, anticipated card usage levels, historical spending patterns, and budget limitations. The completed form with the required signatures is submitted to PCard Administration by the PCard Coordinator.  After all background checks have been verified, the request will then be reviewed and approved by the CFO. Upon approval by the CFO, the PCard Administrator will order the card from the bank and maintain the form in a cardholder file.

  • Distribution – PCard Administration will notify the cardholder and appropriate PCard Coordinator when the card has been received. Cards will be distributed to employees after completion of appropriate background checks, cardholder training and submission of the signed Employee Agreement Form.
  • PCard Administration will review cardholder accounts annually to identify and close unused or low-usage cards for which there is no longer a business need.

Employee Agreement Form

Before being issued a PCard, a completed Employee Agreement Form, signed by the employee and Department Head must be submitted to Business Services. By signing the form, the employee acknowledges:

  • Receipt of training and understanding of the regulations for use and protection of card.
  • Understanding of responsibilities in reconciliation process and billing disputes.
  • Understanding and acceptance of consequences for PCard violations.

Card Limits

  • Since Georgia Tech, not the individual employee, will pay for the purchases made with the card, additional controls have been added to the card accounts. These limits are imposed at the point of sale when the card is swiped.

  • Institute Limits – The PCard may be used for purchases not to exceed the cardholder’s single transaction or cycle limit in the PCard Plan. The cardholder’s Department Head working with the PCard Coordinator may identify additional limits based on card usage and budget limitations. These limits should be noted on the approved Request Form and kept in the cardholder’s file.
    • Increased Limit PCards may be used by department buyers and other specifically designated and pre-approved cardholders for purchases requiring increased limits on an as needed basis. Requests for transaction increased limits must be approved by the Department Head and submitted to the PCard Program Administrator for review and approval. The PCard Program Administrator will coordinate with the State Cards Program Manager when an exception to State PCard Policy is required. Increased Limit cards may not be used to circumvent the State’s no-bid limit.
  • Cardholder Spending Limits – Adjustable limits per card are:
    • Dollar amount limit per transaction
    • Dollar amount limit per cycle (month)
  • Changes to Limits - Requests for changes to card limits should be submitted on the “Limit Change Request” form by the Department Head or PCard Coordinator via email to PCard Administration. Change requests will be kept in the cardholder’s file. Additional information can be found at the link to PCard Requisition Instructions and Exceptions for the requisition process and limit increases. The form is available online in the Forms section of the Business Services website at: http://www.procurement.gatech.edu
  • Merchant Activity Type Limits - Specific types of businesses identified by a Merchant Category Code (MCC) are restricted on the card. If you have difficulty using your card with any particular vendor, please contact your department PCard Coordinator or the PCard Help Desk.
  • Policy Limits - In addition to the limits that are controlled at the point of sale by the card, Georgia Tech limits the use of the card through policy. The card may be used only for purchases that are made under delegated authority or items exempt from review and approval by the Purchasing Department.

Authorized Uses of PCards

All purchases made with a PCard must be for official Institute business.  Cardholders and approving officials are designated as Institute purchasing agents and are subject to the provisions of O.C.G.A. § 45-10-1 et.seq. (State Employee Code of Ethics, Conflicts of Interest, etc.). 

The PCard may be used for:

  • Equipment: Single units under the cardholder’s single transaction limit Equipment over $3000 (single unit) is considered a capital asset and should be purchased via the Georgia Tech E-Procurement System.
  • Supplies, Materials, and Services may be purchased for less than the cardholder’s single transaction limit.  The Institute will monitor activity for purchases for the same supplies, materials, or services from the same vendor so as not to exceed $9,999.99 per year unless competitively procured as detailed in Georgia Tech, DOAS regulations and BOR policies and procedures.  Supplies and materials purchased may also include items purchased for resale.
  • Purchases from Statewide and Agency Contracts are permitted. 
  • Conference Registration Fees for Institute personnel on official Institute business with the requirement that employees not request reimbursement for meals paid with the conference registration fees.
  • Departments must ensure that conference registration fees for employees paid pursuant to this section are recorded as required by Institute Travel Regulations.  Departments should require employees to capture the aforementioned registration expenses on the employee’s travel expense statement. Care should be taken to ensure that the employee clearly identifies those items paid with the PCard versus those items requiring reimbursement.
  • Student food, student travel, and food for instructional uses is permitted as outlined in the Institute Business and Finance Manual (BFM) Sections 5.2.1.9 and 6.16 subject to the documentation requirements outlined in this policy.  Additionally, food purchased for sponsored research use as approved by an Institutional Review Board (IRB) is permitted.
  • Employee food may be purchased with a PCard only when an employee is participating in a Group Meal or an on-campus academic program/on-campus sanctioned event as described in BFM Section 5.2.1.9. Employees participating in off-campus events or in a travel status must request reimbursement. 
  • Repairs and maintenance are authorized for Institute vehicles.  All costs associated with vehicle repair and maintenance must be reported in accordance with DOAS fleet management regulations using the Maximo system.

Note: Exceptions may be granted by the PCard Manager.

Prohibited Uses of PCards

The PCard may not be used for:

  • Personal items.  The use of the PCard for personal expenditures is strictly prohibited.  Cardholders who violate this rule must reimburse these funds and, if the violation is determined to be intentional, may be subject to both losses of employment and criminal penalties.
  • Employee Travel expenses (lodging, transportation, meals).
  • Entertainment expenses (must be done as a reimbursement through the Foundation or GTRC).

  • Alcoholic beverages or tobacco products.
  • Motor vehicle fuel (except for authorized rental vehicles for official student program group travel).
  • Professional services as listed in BOR Business Procedures Manual (BPM) Section 3.1.2 including certified public accountancy, architecture, professional engineering, doctors & registered nurses, lawyers, and veterinary medicine.
  • Gift cards, funding the GT BuzzCard, stored value cards, prepaid cards, calling cards, gift certificates, or other cash equivalent items.
  • Food except as authorized under BFM Section 5.2.1.9.(PCard cannot be used for purchases of bottled water, beverage/coffee service, snacks, or entertainment)
  • Cash advances, cash refunds, or “store credit.”
  • Memberships and/or fees to wholesale shopping clubs or “warehouse type” retailers.(e.g. Sam’s, Costco, Amazon Prime)
  • Agency (funds held on deposit) or affiliated organization expenditures except as permitted for Study Abroad Programs as detailed in BPM Section 21.4.
  • Purchases made from units of the Institute. No internal Institute charges are allowed on the PCard. This includes, but is not limited to, OIT printing services, Library, and Parking. Please note: The PCard may be used for official Institute business at outsourced businesses including the GT Bookstore, VWR, and Aramark.

  • Split purchases. Dividing one purchase into two or more to circumvent the single transaction limits and procurement requirements previously enumerated is not allowed.(more than one transaction to the same vendor on the same day which exceeds the single transaction limit of the cardholder) 
  • Sales tax.  Sales tax should not be paid for purchases made from vendors within the State of Georgia using institutional funds.  Institutional funds used to further institutional business purposes are not subject to sales tax as outlined in O.C.G.A. § 48-8-3 (8).  Sales tax may be paid when required for vendors out of state.
  • Please reference the Georgia Tech Reference Guide for PCard allowable and unallowable purchases found on the PCard page of the Procurement and Business Services website. 

Limitations on Vendors

High Risk Vendors:

  • Georgia Tech does not encourage the use of high risk vendors such as PayPal. If no other form of payment is accepted by the vendor, then the PCard High Risk Vendor Purchase Authorization Form (high risk vendors are listed on the form) must be completed, signed, and approved prior to each purchase and appended with the receipt as part of the accountable documentation for the PCard Statement. Violations of policy will be evaluated as noted in the Violations of Policy section of this policy.

Additional Restrictions:

  • Cardholder must not make PCard purchases from vendors where the cardholder has a financial interest.
  • Cardholder must not accept any gift or gratuity from any source when it is offered, or appears to be offered, to influence your decision-making regarding PCard purchases. 

Cost Allocation

Each card will be assigned a default project ID, as identified on the PCard Request Form, to which transactions will be automatically charged. Charges must be redistributed to the appropriate general ledger expense account, as well as the appropriate Project ID if necessary, through the Institute’s web based PCard approval system, Concur. PCard transactions are loaded to Concur daily by the bank and remain available for review and redistribution for 10 calendar days before being posted to the General Ledger (GL). Changes identified after the transactions are initially posted to the GL may be accomplished by completing a CPC (Campus PCard) journal entry in the General Ledger, effective June 28, 2017. 

Training
Department PCard Coordinators are required to complete the annual PCard Training and Certification online training tutorial. Cardholders are required to complete the “PCard Cardholder Training & Certification” online training tutorial prior to receiving a card.

Cardholders are required to re-certify annually. Failure to re-certify will result in card suspension until the re-certification is completed.Departments must ensure that Approvers complete the “PCard Cardholder Training & Certification” online training tutorial initially and annually thereafter.

Georgia Tech's E-Procurement System Training
Cardholders and Pcard Cost Center Managers must complete the Georgia Tech’s E-Procurement System Pcard Training module prior to taking on either role.

Departments are responsible for ensuring Cardholders and Approvers are trained in internal departmental PCard policies and procedures. Departments should ensure that non-procurement personnel are acquainted with small value purchase procedures.

Card Security

The cardholder should use basic security measures, as outlined below, to prevent unauthorized use and limit the potential for fraud.

  • Sign the card as soon as you receive it.
  • Always keep PCards and account numbers in a secure place.
  • Safeguard the PCard as you would your personal credit card.
  • Be aware of your surroundings when using the card.
  • Monitor card activity in Georgia Tech's E-Procurement System.
  • Reconcile and submit monthly statements in a timely manner.

Lost or Stolen Cards

  • Lost, stolen, or fraudulently used PCards must be reported to the Bank of America at 1-888-449-2273 as soon as possible after discovering the loss, theft, or fraudulent use.  The cardholder’s approving official and the PCard Coordinator must also be notified. Evidence of fraudulent use may be requested to include transaction detail. Lost or stolen cards require card cancellation. Failure to report the loss, theft, or fraudulent use of the PCard may result in increased financial loss to the institution.
  • The PCard Coordinator has the responsibility for communicating the information to PCard Administration.

Surrendering the PCard

  • The Pcard is the property of the State of Georgia. The cardholder is to surrender the PCard to the PCard Coordinator upon request, retirement, termination, or transfer to another department.
  • The PCard Coordinator should destroy (cut up) the card and notify PCard Administration via email to cancel the PCard.

Documentation Requirements

Requisition Form:
Unless covered by an approved exception, every purchase requires two prior approvals prior to purchase.  These prior approvals must be documented via a requisition form designated by Procurement and Business Services. If the purchase is approved, the cardholder may make the purchase. The signed requisition form must be appended to the receipt image prior to the submission of the statement for approval.

Receipts:
For each transaction, accountable documentation (i.e. a sales draft or receipt) must be obtained as proof of purchase. This documentation will later be used to verify the purchases shown on the cardholder online statement in Concur. The documentation must contain line item description and line item pricing for the purchase. The documentation should include:

  • Vendor name
  • Transaction amount
  • Date of the purchase
  • Itemized list of items purchased
  • Other information as required by the department

If a sales draft or receipt does not provide a description, the cardholder should write the description on the document. For items such as subscriptions and registrations, where a receipt is not normally generated by the merchant, a copy of the ordering document may be used so long as it contains a description and price. Copies or facsimiles of the original receipt may be acceptable if the original is not available.

If the documentation for a transaction has been lost, it is the cardholder’s responsibility to obtain a duplicate from the vendor. If a duplicate cannot be obtained, the cardholder should complete the PCard Receipt Replacement Form for to serve as the receipt. The PCard Receipt Replacement Form should contain the itemized information for the transaction, as listed above, and describe the cardholder’s attempt to obtain a duplicate from the vendor. PCard Receipt Replacement Forms may only be used on an exception basis. Excessive use of the form (defined as more than three times in one fiscal year), may result in suspension of card privileges.

Receipts are attached to each transaction in Georgia Tech's E-Procurement System by uploading the receipt and attaching it to the transaction.

Maintaining PCard Documentation

Documentation will be retained in accordance with records retention and fund requirements.  For transactions posted on or after October 28th, 2017, this documentation will be housed in Concur and/or in Georgia Tech’s Imaging system.  For transactions prior to 28 October 2016, statements with documentation must be kept by the Department

Original receipts must be kept by the cardholder or department for 1 year per DOAS Policy (rolling 12 months).

The documentation must be made readily available for review/audit if requested.

Using the PCard - Making the Purchase

The PCard can be used to make purchases over the counter, by mail, by fax, by telephone, or by Internet at any vendor that accepts Visa. The following procedures should be followed for PCard purchases.

Obtain Best Value

When accepting a PCard, the cardholder becomes an authorized purchaser for the Institute with specific responsibilities for expending public funds. The cardholder should ensure the purchase is appropriate and in accordance with all Institute and State rules and regulations. Additionally, PCard purchases must comply with requirements of the Georgia Procurement Manual concerning Order of Precedence and Competitive Bidding. When purchasing goods or services, the order of precedence that should be followed in selecting the appropriate vendor is: (1) Statewide Mandatory Contracts, (2) GT Agency Contracts, (3) Georgia Correctional or Georgia Enterprises, and then (4) Statewide Convenience Contracts and the open market.

After verifying the item is not available on a Statewide or Agency contract, the cardholder must utilize lowest cost based on requirements, quality, and availability to obtain the maximum value of each dollar expended.    

Vary the suppliers to give fair treatment to all suppliers and to assure that the price obtained is reasonable. Transactions you make may be on behalf of Federal sponsors. Purchasing on behalf of government clients requires special sensitivity on the part of the purchaser to obtaining fair and reasonable prices, spreading purchases among many suppliers including small, small-disadvantaged, and women-owned businesses, and adhering to strict ethical conduct. 

Sales Tax

When using the PCard, the cardholder should inform the vendor that the purchase is for official State of Georgia purposes, and therefore, may not be subject to Georgia state or local sales tax. If requested by the vendor, cardholders must present an “AP - Sales & Use Tax Certificate of Exemption / Georgia Form”. The form is available online in the Forms section of the Business Services website at:  http://www.procurement.gatech.edu

If sales tax is erroneously charged by the vendor, cardholders should make every effort to obtain a credit directly from the vendor. Documentation of attempts to obtain credits should be maintained with the transaction receipt by appending to the receipt. Please note: Sales tax may not be disputed through the bank.

Making the Purchase - Over the Counter

  • Verify that supplier accepts the Visa. (Note: If not and it is a supplier you will need for future purchases, notify PCard Administration.)
  • Provide the PCard for payment.
  • Inform the clerk that the purchase is for official State of Georgia purposes, and therefore, exempt from state and local sales tax. The PCard indicates sales tax exemption, but cardholder should verify that clerk does not charge sales tax.
  • Verify the dollar amount is correct and no sales tax has been included, then sign the sales draft.
  • Retain your copy of the sales draft and receipt. If the copy does not provide a description of item(s) being purchased, the cardholder should write the description on sales draft or receipt.
  • Follow PCard transaction/documentation process established by the department. 

Making Purchase - Mail, Fax, Telephone, or Internet Orders

  • Provide supplier with requested card information.
  • Inform supplier that the purchase is for official State of Georgia purposes, and therefore, exempt from state and local sales tax.
  • Give supplier detailed shipping instructions. It is recommended that you have the goods shipped directly to your campus address (this would normally be the cardholder’s Billing Address). Please noteGoods should be shipped to official Georgia Tech business addresses only. Occasionally, researchers will be in the field at a sponsor’s site and will need the goods shipped to that location or the location specified, (never a home address). Shipments to an address other than a campus Georgia Tech address must be approved by PCard administration via email from the PCard Coordinator, with the cardholder’s supervisor’s approval included. This documentation should be appended to the receipt as accountable documentation.

  • Retain documentation for purchase. Acceptable documentation includes: a copy of order form, copy of catalog page showing cost, or email/faxed order confirmation showing price along with packing slip, print out of the online order form, print out of the online order confirmation, or a print out of the e-mail confirmation. 

Returning Purchases Made With PCard

If you determine that the material is defective or incorrect, notify the supplier that the item needs to be returned and request an address to ship to, and a Return Authorization Number. Request that the supplier process a credit transaction through the PCard. Document that the goods have been returned for credit and communicate information through proper channels within your unit. Ensure that the credit appears in Georgia Tech's E-Procurement System. If not, process the charge as a Disputed Transaction.

It is a good practice to keep original boxes, containers, and special packaging until you are certain you are going to keep the goods. Some items must be returned in the original packaging.

Disputed Transactions

It is the cardholder’s responsibility to resolve discrepancies and ensure credits are received. When a cardholder discovers an incorrect amount has been charged for goods or services received, or a questionable purchase or transaction appears for verification in Georgia Tech's E-Procurement System, the cardholder must immediately seek to resolve the problem with the vendor. Any communications should be documented and the documentation including dates, persons involved, and a brief description of the problem should be either appended to the receipt or appended to the PCard Dispute Form.

If the cardholder is unable to resolve the problem with the vendor, a PCard Dispute Form should be completed and faxed directly to Bank of America at the fax number on the form. The PCard Coordinator should be notified of the dispute and a copy of the dispute form should be appended to the monthly statement. The cardholder should check the following month’s statement to ensure that credit was received. Please note: Disputes must be submitted within 60 days of the statement date.

Reconciling PCard Transactions
General:
Pcard Transactions post to Georgia Tech’s E-Procurement System for verification on a daily basis. As the transactions post to Georgia Tech’s E Procurement System, the cardholder should review the transactions and attach receipts to the transactions. If the cardholder believes a transaction listed on the statement is incorrect, the procedures outlined in the “Dispute Transactions” section should be followed.

Approval Workflow:
All PCard transactions must be reconciled (verified) in Georgia Tech’s E Procurement System.  All transactions must be submitted for approval by the cardholder.  At a minimum a PCard Cost Center manager must also approve each transaction.

Timeliness and Escalations:
The PCard Office will provide direction on how/when transactions should be reviewed, submitted and approved in the online system. This direction will be provided to ensure that transactions are fully verified and posted to the ledger within sixty days of the transaction post-date.

Delinquency:
Cardholder’s cards whose online transaction verifications have not been submitted and completely approved within the 45 day time-frame may be suspended. Repeated non-compliance will result in card cancellation. Cards will be suspended/canceled as follows:

  • First Offense - PCard(s) suspended 7 days or until written notification (email is acceptable) is received that the reconciliation package is complete and the cardholder is in compliance, whichever is greater. PCard Coordinator notified of suspension.
  • Second Offense - PCard(s) suspended 30 days or until written notification (email is acceptable) is received that the reconciliation package is complete and the cardholder is in compliance, whichever is greater. Cardholder must re-certify by completing the on-line “PCard Cardholder Training & Certification” tutorial. PCard Coordinator and Department Head notified of suspension.
  • Third Offense - PCard(s) cancelled. Department Head may request cardholder be re-instated after 90 days provided written notification (email is acceptable) is received that all reconciliation packages are complete. Cardholder must re-certify by completing the on-line “PCard Cardholder Training & Certification” tutorial. PCard Coordinator, Department Head, and OHR notified of cancellation.

Please note: In extenuating circumstances (such as extended travel, on leave, etc), departments may request that specific cards be exempted from suspension for a brief period.

Reviews/Approvals

Monthly review and approval of PCard transactions is required at the department level. The Department Head/PCard Coordinator will determine who the approvers will be for their departments.

Departments are responsible for reviewing all transactions to:

  • Ensure the appropriateness of purchases and funds being utilized.
  • Verify the completeness of documentation (detailed receipts, disputed transactions, approved requisition forms).
  • Identify any policy violations and take appropriate action. 

Payment

Business Services will receive a consolidated monthly billing statement from Bank of America for all Institute cardholders. The statement will be reconciled and processed for payment, in accordance with a plan on file in Business Services.

Compliance Reviews

Business Service and Internal Audit Reviews:
Transactions will be reviewed online in accordance with plans on file in Business Services and Internal Auditing. Cardholder files will be reviewed in accordance with a plan on file in Business Services. Internal Auditing periodically conducts on-site compliance reviews in each department. These visits will be designed to:

  • Review departmental records and record keeping practices
  • Monitor adherence to policy guidelines
  • Identify opportunities for process enhancements
  • Offer “best practice” procedures

Results of these reviews will be used to enhance Georgia Tech’s PCard processes and will be shared with the Department Heads.

Responsibilities: 

Department Responsibilities:

  • Ensure internal procedures are in accordance with established Institute policy. Your department procedures may be more restrictive than Georgia Tech Policy but not less restrictive. Monitor department program for compliance – identify and address policy violations.
  • Establish coordination procedures between Cardholders, Approvers, and Coordinators to ensure timely transaction reconciliation and accountable documentation.
  • Establish redistribution procedures to ensure expenses are charged to the appropriate fund
  • Develop procedures to ensure the responsible budget holder is required to verify charges to sponsored accounts are appropriate.
  • Ensure documentation is retained in accordance with Institute policy.(A paper copy of the receipts is required to be kept for 1 year per DOAS Policy)
  • Re-evaluate transaction and monthly (cycle) spending limits periodically.
  • Review the ongoing business need for cards issued within the department annually.
Department Head/Dean/Vice President Responsibilities:
  • Ultimate responsibility for a department’s program resides with the Department Head.
  • Department Head may delegate operational responsibility to a PCard Coordinator, but delegation does not relieve the Department Head of program responsibility. This delegation of responsibility does not include the approval of new card requests.
  • Designate unit program officials: Coordinators, Approvers, Cardholders
Approver Responsibilities

There are two types of approvers for PCart Transactions

Requisition Approvers:

  • Requisition approvers review and sign off on requisitions prior to the purchase being made. Two approvers are required for the PCard requisition. Both signatures must be obtained prior to the purchase being made unless the purchase is made under and using the terms prescribed in an exemption approved by DOAS. Instructions and Exceptions can be found on the Procurement and Business Services website. 

Georgia Tech’s E Procurement System Reconciliation Approvers:

  • Review and verify assigned cardholder PCard purchases.
  • Validate and attest that the report and the purchase receipts have been reviewed and are in compliance with Georgia Tech’s Policy.
  • Verify completeness of PCard documentation including business purpose and detailed receipts.
  • Ensure the requisition forms have been reviewed and are in compliance with Georgia Tech’s Policy.
  • Complete the review by approving the report.
Cardholder Responsibilities

Georgia Tech follows the doctrine that the use of and responsibility for PCard procurements rest with the cardholder (employee). The cardholder is accountable for all transactions on their card. To reinforce the doctrine of cardholder accountability with departmental oversight of the PCard:

  • The card is to be under the control of the cardholder.
  • Card-sharing is prohibited. Cardholders may not lend their card or card number to anyone.
  • Use of the card as a “departmental” or “checkout” card is prohibited.
  • All cardholders are required to have training in the use of a PCard. Training deals with both card use and with delegated procurement responsibilities.
  • PCard training specifically reiterates the cardholder’s responsibility and consequences of card misuse.
  • Georgia Tech has implemented a web based interface, Georgia Tech’s E Procurement System, that:
    • Allows cardholders or delegates the ability to review PCard charges and reallocate project numbers and general ledger expense account numbers in near real time.
    • Provides online management reporting capability on all PCard activity.
Enforcement: 

Violations of Policy

Violations of rules governing use of PCards can be classified as minor or major. Violations are evaluated on an individual basis and any action taken is dependent upon the nature and frequency of the violation.

Minor Violations include honest mistakes, such as inadvertently using the wrong card; allowable purchases from Institute funds, but those which are not allowed on the P Card. Minor violations should be addressed as follows:

  • First Offense - The department is to address the violation with the cardholder and provide additional guidance as needed. Actions taken should be documented in writing with a copy sent to the PCard Program Manager.
  • Second Offense - PCard(s) may be suspended for 30 days. Cardholder must re-certify by completing the on-line “PCard Cardholder Training & Certification” tutorial. Department is to ensure that the PCard Program Manager and Department Head are notified.
  • Third Offense - PCard(s) may be cancelled. Department Head may request cardholder be re-instated after 90 days. Cardholder must re-certify by completing the on-line “PCard Cardholder Training & Certification” tutorial. Department is to ensure that the PCard Program Manager and Department Head are notified.

Major Violations are those violations that indicate a willful intent to disregard rules that results in cardholder misuse (i.e. would include knowingly making personal purchases). The circumstances of the violations will determine the appropriate action, which could include termination of employment and criminal penalties. When cardholder misuse is suspected, the department is to immediately notify the PCard Program Manager and the Director of Internal Auditing.

  • The PCard is to be suspended pending further review and investigation by Internal Auditing.

Georgia Tech employees can confidentially and anonymously report suspected PCard misuse to the 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
August 2020 Purchasing and Procurement Updates due to E-Procurement System Update
May 2017 Purchasing and Procurement State policy updates
July 2016 Purchasing and Procurement Update to  policy changes
March 2015 Purchasing and Procurement Added additional compliance measures
July 2013 Purchasing and Procurement Update to policy

Procurement of Services

Policy No: 
5.3
Type of Policy: 
Administrative
Effective Date: 
May 2018
Review Date: 
May 2019
Policy Owner: 
Purchasing and Procurement
Contact Name: 
Ajay Patel
Contact Title: 
Director of Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Policy Statement: 

Payments for services to non-employee individuals and firms will fall into one of the following categories: honoraria, non-faculty instructors or lecturers, consultants, repairs and maintenance, temporary employment agencies, OSP subcontracts, stipends/awards and freelance service providers.
All payments (including expense only reimbursements) to individuals who are not US citizens or residents (green card holders) must comply with the Internal Revenue Service and Homeland Security regulations and requirements outlined in payments nonresident aliens non employees.
Employees may not receive payment for services through Accounts Payable. Consult OHR policies for supplemental pay options and Tech Temp employment options. Employees who have retired from the University System of Georgia may continue to work for Georgia Tech through the OHR Retired but Working program and compensation is through Payroll.

Counterfeit Electronic Part Detection and Avoidance

Type of Policy: 
Administrative
Effective Date: 
September 2018
Last Revised: 
April 2020
Review Date: 
September 2023
Policy Owner: 
Georgia Tech Research Institute (GTRI)
Contact Name: 
Lydia Liford
Contact Title: 
PMO
Contact Email: 
pmo@gtri.gatech.edu
Reason for Policy: 

A counterfeit electronic part is an unlawful or unauthorized reproduction, substitution, or alteration that has been knowingly mismarked, misidentified, or otherwise misrepresented to be an authentic, unmodified electronic part from the original manufacturer. The standard SAE AS6171 further classifies counterfeit parts as components that have been recycled, remarked, overproduced, out-of-specification/defective, received with forged documentation, or  cloned. The United States (U.S.) Congress has directed that the Department of Defense (DoD) take specific actions  to “prevent, detect, remediate and investigate counterfeiting in the DoD supply chain.”

The intent of the policy is to satisfy U.S. Government requirements (DFARS 246.870 and DFARS 252.246-7007) to prevent the proliferation of counterfeit parts while allowing researchers to fulfill their contractual obligations with minimal additional impediment. The policy was developed considering the requirements of the appropriate DFARS clause(s), Defense Logistics Agency standards, industry standards published by SAE, and conference with industry and government representatives.

Refer to Section 9 for reference documents and links as related to this policy.

Policy Statement: 
For some time, the DoD has been addressing the proliferation of counterfeit parts worldwide and their infiltration into the defense supply chain. With the continued increase in counterfeiting, the DoD has issued directives and promulgated regulations for contractors to implement systems to detect, avoid, and report counterfeit parts. The Georgia Institute of Technology (GIT) must develop policy, procedures, and provide training to prevent the   introduction of counterfeit parts used in DoD Weapon Systems, Information Systems, and prototypes. Counterfeit parts pose a threat to DoD system operations. Furthermore, the lack of an effective Counterfeit Detection and Avoidance System (CDAS) will negatively affect GIT research programs.
 
The CDAS will be audited by the government. Failure to maintain acceptable counterfeit electronic part detection and avoidance policies and procedures may result in disapproval of the Institute’s purchasing system by the government’s contracting officer (CO) and/or withholding of payments. With limited exceptions, GIT will not be able to recover the costs of the counterfeit part or any rework or corrective action taken to remedy the inclusion of counterfeit parts in delivered hardware.
 
It is essential that GIT maintain an acceptable Counterfeit Electronic Part Detection and Avoidance Policy (CEPDAP) adhered to by all individuals involved in the acquisition of electronic parts for work on DoD sponsored awards to comply with  DoD mandatory requirements, minimize risk to DoD operations, and maintain an effective and efficient purchasing system. This policy describes the set of controls designed to eliminate or mitigate the risk of utilizing counterfeit electronic components in GIT delivered hardware. DoD contracts that are subject to DFARS 252.246-7007 are required to adhere to this policy. In the event of a conflict with other GIT policies or procedures, this policy shall take precedence.

 

Scope: 
This process applies to electronic components utilized by, or incorporated into, the fabrication, assembly, or test of prototype hardware that is to be provided for evaluation or service to U.S. Government sponsors. This process is also provided as a recommended practice for all programs. This includes electronic assemblies or subsystems that are designed and built to project requirements by third party original design manufacturers (ODMs), as well as hardware that is designed by GIT but then outsourced to a contract manufacturer (CM) for assembly.
 
Excluded from these requirements are electronic components procured for use in equipment intended for internal purposes (e.g. research, development, problem resolution, testing theories, trying new ideas, etc.), and which are not planned to be provided to sponsors. However, GIT still encourages the procurement of parts through approved venders as identified in this policy.
 
Also excluded are unmodified commercial off-the-shelf (COTS) assemblies or subsystems, procured from original equipment manufacturers (OEMs), unless otherwise specified in the project plan or mission assurance plan.
 
Implementation is the responsibility of any individual or organization, internal or external to GIT, which is involved in sourcing such parts in support of program hardware provided to sponsors that is not excluded as called out above. It  is important that unit procedures (e.g. college, school, or GTRI laboratory) reflect the requirements outlined in this policy.

 

Definitions:

Acronym, Abbreviation, or Term

Definition

Authorized Aftermarket Manufacturer (AAM) An organization that fabricates a part under a contract with, or with  the express written authority of, the original component manufacturer based on the original component manufacturer’s designs, formulas,
and/or specifications.
Authorized Supplier Supplier, distributor, or an aftermarket manufacturer with a contractual arrangement with, or the express written authority of, the original manufacturer or current design activity to buy, stock,
repackage, sell, or distribute the part.
C of O Certificate of origin
Contractor-approved supplier (CAS) A supplier that does not have a contractual agreement with the original component manufacturer for a transaction, but has been
identified as trustworthy by a contractor or subcontractor.
CASL Contractor Approved Supplier List
CDAS Counterfeit Detection and Avoidance System
Contract manufacturer (CM) A company that produces goods under contract for another company under the label or brand name of that company.
CO Contracting Officer
COTS Commercial Off-The-Shelf
Counterfeit electronic part An unlawful or unauthorized reproduction, substitution, or alteration that has been knowingly mismarked, misidentified, or otherwise misrepresented to be an authentic, unmodified electronic part from  the original manufacturer, or a source with the express written authority of the original manufacturer or current design activity, including an authorized aftermarket manufacturer. Unlawful or unauthorized substitution includes used electronic parts represented as new, or the false identification of grade, serial number, lot number,
date code, or performance characteristics.
DFARS Defense Federal Acquisition Regulations Supplement
DoD Department of Defense

ECIA

The Electronic Components Industry Association (ECIA) maintains a database of verified authorized suppliers. The ECIA database is an alternative source for verifying authorized suppliers and shall be archived with purchase documentation.

EEE Electrical, Electronic, and Electromechanical

Electronic part

An integrated circuit, a discrete electronic component (including, but not limited to, a transistor, capacitor, resistor, or diode), or a circuit

ERAI

ERAI, Inc. is a global information services organization that monitors, investigates, and reports issues affecting the global electronics supply chain.

GIDEP

Government-Industry Data Exchange Program is a cooperative activity between government and industry participants seeking to reduce or eliminate expenditures of resources by sharing technical information essential during research, design, development, production and operational phases of the life cycle of systems, facilities and equipment.

GIT

Georgia Institute of Technology

GTRI

Georgia Tech Research Institute

Mission Assurance

A process to protect or ensure the continued function and resilience  of capabilities and assets – including personnel, equipment, facilities, networks, information and information systems, infrastructure, and supply chains – critical to the performance of DoD MEFs (Mission Essential Functions) in any operating environment of condition.

NRE

Non-recurring engineering

Obsolete electronic part

An electronic part that is no longer available from the original manufacturer or an authorized aftermarket manufacturer.

ODM

Original Design Manufacturer

Original component manufacturer (OCM)

An organization that designs and/or engineers a part and is entitled to any intellectual property rights to that part.

Original equipment manufacturer (OEM) A company that manufactures products that it has designed from purchased components and sells those products under the company's brand name.
Original manufacturer The original component manufacturer, the original equipment manufacturer, or the contract manufacturer.
OSP Office of Sponsored Programs
PD Project Director
PI Principal Investigators
PM Project Manager
PMO Project Management Office
PO Purchase Order
SAE Society of Automotive Engineers
Subcontractor Any supplier, distributor, vendor, or firm that furnishes supplies or services to or for GIT
Suspect counterfeit electronic part An electronic part for which credible evidence (including, but not limited to, visual inspection or testing) provides reasonable doubt that the electronic part is authentic.
Traceability The capability to track the chain of custody of a procured item(s) through its specific supply chain.
Unit College, School, GTRI laboratory
U.S. United States
Procedures: 
5.1 Employee Training
 

To support this process, the following training requirement shall be imposed upon indicated personnel:

This policy will be the basis for a Counterfeit Electronic Component Awareness Training program to be developed and administered by GTRI, in conjunction with the Office of Sponsored Programs (OSP).

Project Directors (PDs) and Principal Investigator (PIs) are required to determine who within the project team should complete the training.

Personnel responsible for the specification and/or procurement of purchased components for prototypes, as well as personnel who physically handle electronic components or assemblies containing electronic components, are recommended to complete Counterfeit Electronic Component Awareness Training.

The GIT training for this policy can be found here. To access the training module, GIT employees will need to login to the employee training portal and search the course catalog for “Counterfeit Electronic Part Detection and Avoidance Policy Overview”.

5.2 Inspection and Testing
 

It is the responsibility of all personnel who handle electronic components or assemblies containing electronic components at any point in the inspection, assembly, and test flow to be aware of and to report any attribute, feature, or performance parameter that may indicate that the part is not genuine.

GIT procurement sourcing controls are designed to minimize risk of receipt of counterfeit electronic parts. However, there is a possibility that such parts may make their way into department or laboratory storage spaces. To support this policy, GIT will adhere to the following:

  1. Assembly or test personnel shall report any visual or functional anomaly to the PD or PI for counterfeit assessment at any point during receipt of parts. Cosmetic anomalies may or may not be indicative of counterfeit production, but must be investigated as such.
  2. GIT PDs, PIs, and Program Managers (PMs) shall work with the supplier to verify counterfeit determination and shall issue a Government-Industry Data Exchange Program (GIDEP) Advisory (suspect counterfeit part, but confirmed genuine) or GIDEP Alert (confirmed as counterfeit). Such reports are to be issued within 30 days of the initial escalation. For access to GIDEP, please direct any inquiries to the PMO.

Upon receiving an item, a visual inspection must be conducted. If an item is purchased from Category 1 or Category 2, a visual inspection and acceptance will need to be completed. If an item is purchased from Category 3, it will need to be sent to a testing facility as identified on the CASL.

The physical/environmental/electrical/inspection test sequences required for Category 3 electronic parts is dependent on a risk assessment to determine the recommended level of testing to mitigate risk associated with obtaining the parts from an unauthorized supplier. SAE-AS6171 provides a method for establishing risk and appropriate test sequences, and shall be utilized and documented for GT and GTRI for procured Category 3 electronic parts.

Refer to Section 5.5 for supplier category and CASL information.

Refer to Section 5.6 for quarantine procedures if a suspected counterfeit part is identified.

 

5.3 PROCESSES TO ABOLISH COUNTERFEIT PARTS PROLIFERATION
 

All GIT orders for electronic components from any supplier shall request that the total quantity of any individual part be from a single manufacturing lot or date code. In addition to minimizing variation in performance, it is less likely that a single manufacturing lot or date code across the total quantity represents parts from an unauthorized market source.

This policy shall be imposed on GIT subcontractors as described in Section 5.9.

5.4 PROCESSES FOR MAINTAINING ELECTRONIC PART TRACEABILITY
 

GIT PDs, PIs, and PMs are required to add traceability documentation provided by vendors into the document repository of the PD's choice (Box, Sharepoint, etc) upon receipt of components to maintain supply chain traceability. PDs, PIs, and PMs must be aware that the selection of non-approved suppliers are subject to review and audit by the appropriate U.S. Government representative.

When sourcing an electronic part from a supplier, the following requirements apply:

  1. Any order for electronic components from any supplier requires a certificate of origin (C of O), attesting that the supplier acquired those parts directly from the original manufacturer, and that those parts are not returns, nor were they sourced from a non-Category 1, 2, or 3 supplier. This requirement for a C of O must be included on the original PO.
  2. Any order for electronic components from any supplier shall request that the total quantity of any individual part be from a single manufacturing lot or date code.
5.5  USE OF SUPPLIERS
 

GIT is not certified to test suspected counterfeit parts; therefore, GIT shall follow the following guidelines in order to avoid the receipt of counterfeit parts.

GIT will be in compliance with DFARS 252.246 by obtaining electronic parts from one of three categories listed below in sequential order:

1. Category 1:  GIT PDs, PIs, and PMs will obtain electronic parts that are in production by the original component manufacturer (OCM) or an authorized aftermarket manufacturer (AAM). If parts are not in production, obtain from currently available stock in the following order:

a.  OCM of the parts;

b.  OCM-authorized suppliers of the parts; or

c. Suppliers that obtain such parts exclusively from the OCM of the parts or their authorized suppliers.

OCM authorized suppliers shall be verified using one of these methods:

a. Verification of OCM authorized supplier legitimacy prior to purchase shall be documented. OCM websites include the suppliers that are authorized to distribute their components. A screenshot from the OCM website designating authorized suppliers or an email from an OCM verifying an authorized supplier is acceptable verification.

b. The Electronic Components Industry Association (ECIA) maintains a database (https://www.eciaauthorized.com/en) of verified authorized suppliers. The ECIA database is an alternative source for verifying authorized suppliers and shall be archived with purchase documentation.

A supplier’s website should never be solely relied on as a source for OCM authorization to distribute.

2. Category 2:  If electronic parts are not available as provided in Category 1, GIT will obtain electronic parts that are not in production by the OCM or an AAM from suppliers identified by the CASL. The CASL is derived from the DLA certified vendor list, which is included in the workflow attached to this policy. The following three conditions apply to this source of electronic parts:

a.  GIT will comply with GT Procurement processes to identify and approve CASs who adhere to established counterfeit prevention industry standards as mentioned in Section 10;

b. CAS assumes responsibility for the authenticity of parts provided to GIT; and

c. CASL is subject to review and audit by the government CO.

3. Category 3:  If GIT (i) obtains an electronic part from a source other than those identified in Categories 1 and 2 because of nonavailability or from a subcontractor other than the OCM that refuses to accept the flow down of DFARS clause 252.246-7008; or (ii) cannot confirm that an electronic part is new or previously unused and that it has not been comingled in supplier new production or stock with used, refurbished, reclaimed, or returned parts, then the contractor must adhere to the following:

a.  Promptly notify the sponsor CO in writing;

b.  Be responsible for inspection, testing, and authentication by selecting a test resource from the CASL; and

c. Log documentation of inspection, testing, and authentication to make available to the government upon request.

5.6 REPORTING AND QUARANTINING OF COUNTERFEIT ELECTRONIC PARTS
 

When one becomes aware of, or has reason to suspect that any electronic part, component, or assembly containing electronic parts purchased contains counterfeit electronic parts or suspect counterfeit electronic parts, reporting is required to the Government CO and to the GIDEP.

Per standard AS5553C, control suspect counterfeit EEE parts to preclude their use or reentry in to the supply chain by physically identifying and segregating the suspect counterfeit EEE parts from acceptable non-suspect EEE parts and placing in quarantine until dispositioned. Quarantine shall consist of a controlled access space.

PMO can provide guidance about any of these processes in this policy. Please direct any inquiries to PMO.

5.7 METHODOLOGIES TO IDENTIFY SUSPECT COUNTERFEIT ELECTRONIC PARTS
 

Electronic parts purchased from Category 1 or Category 2 suppliers do not require individual component testing.  However, when purchasing parts from a Category 3 supplier, GIT will rely on the identification of suspect counterfeit electronic parts through the use of CASL Testers for inspection and counterfeit testing. 

Refer to the policy workflow attachment for the CASL.

5.8 DETECTION AND AVOIDANCE
 

GIT is committed to the detection and avoidance of counterfeit electronic components in the government supply chain. GIT supports the procurement of electronic components through Categories 1 and 2, and to follow a thorough selection process when vetting Category 3 suppliers.

5.9 POLICY FLOW DOWN
 

All GIT orders for electronic components from any supplier shall request that the total quantity of any individual part be from a single manufacturing lot or date code. In addition to minimizing variation in performance, it is less likely that a single manufacturing lot or date code across the total quantity represents parts from an unauthorized market source.

Subcontractor Flow Down

A subcontractor is defined as any supplier, distributor, vendor, or firm that furnishes supplies or services to or for GIT.

Subcontractors participating in GIT projects at all levels in the supply chain that are responsible for buying and selling electronic parts or assemblies containing electronic parts, or that perform authentication testing are required to comply with the notification, inspection, testing, and authentication requirements as listed in this policy. GIT shall be responsible for ensuring that these requirements are flowed down to subcontractors.

The subcontractor is required to meet one of the two options listed below:

  1. Independent verification of electronic parts used in a subcontracted assembly will consist of a GIT review of the parts list and part sources to confirm that the latter are purchased from Category 1, 2, or 3 suppliers.  In a competitive bid situation, an estimate of the cost to GIT of such a review may be applied to the bids of those subcontractors that lack such a system for source selection purposes.
  2. Confirmation of a subcontractor counterfeit electronic parts control plan that satisfies the requirements of this policy will consist of a review of said plan at the subcontractor’s location, including evidence of its implementation. The subcontractor is to be provided a copy of this policy prior to the review meeting.

In all cases, GIT will work proactively with the subcontractor to ensure a smooth and expeditious resolution that is in the interests of both parties.

 

Purchase Order Flow Down

For COTS products and non-recurring engineering (NRE) initiated through a purchase order (PO), GIT will flow down this policy to ensure counterfeit avoidance compliance.

When sourcing an electronic part from a supplier, the following requirements apply:

  1. Any order for electronic components from any supplier requires a CO, attesting that the supplier acquired those parts directly from the original manufacturer, and that those parts are not returns, nor were they sourced from a non-Category 1, 2, or 3 supplier. This requirement for a C of O must be included on the original PO.
  2. Any order for electronic components from any supplier shall request that the total quantity of any individual part be from a single manufacturing lot or date code.
5.10 CONTINUING EDUCATION ON COUNTERFEIT PARTS
 

GIT will require periodic training of counterfeit parts avoidance trends for applicable employees via online training and conferences.

 

5.11 MONITORING POLICY UPDATES
 

GIT has access to the GIDEP and other credible sources for information pertaining to updated counterfeit parts advisories.

For access to these reports, please direct any inquiries to PMSO.

5.12 CONTROL OF OBSOLETE ELECTRONIC PARTS
 

GIT shall avoid the use of obsolete parts on new designs. All parts lacking traceability shall be considered as obsolete parts.

Frequently Asked Questions

Question: What is an electronic part?

Answer: An integrated circuit, a discrete electronic component (including, but not limited to, a transistor, capacitor, resistor, or diode), or a circuit assembly. The term “electronic part” includes any embedded software or firmware.

Question: What is an electronic counterfeit part?

Answer: A counterfeit electronic part is an unlawful or unauthorized reproduction, substitution, or alteration that has been knowingly mismarked, misidentified, or otherwise misrepresented to be an authentic, unmodified electronic part from the original manufacturer. The United States (U.S.) Congress has directed that the Department of Defense (DoD) take specific actions to “prevent, detect, investigate, and remediate counterfeiting in the DoD supply chain.”

Question: How does this policy pertain to GIT?

Answer: DoD contracts that are subject to DFARS 252.246-7007 are required to develop and execute a counterfeit parts policy in order to prevent counterfeit parts from entering the government supply chain. This policy describes the set of controls designed to eliminate or mitigate the risk of utilizing counterfeit electronic components in GIT’s delivered hardware.

Question: To whom does this policy apply?

Answer: The Counterfeit Electronic Part Detection and Avoidance Policy applies to all GIT Personnel who purchase or specify the purchase of electronic components for use in DoD delivered hardware on contracts that are subject to DFARS 252.246-7007.

This process applies to electronic components utilized by, or incorporated into, the fabrication, assembly, or test of prototype hardware that is to be provided for evaluation or service to U.S. Government sponsors. This process is also provided as a recommended practice for all programs. This includes electronic assemblies or subsystems that are designed and built to project requirements by third party original design manufacturers (ODMs), as well as hardware that is designed by GIT but then outsourced to a contract manufacturer (CM) for assembly.

Excluded from these requirements are electronic components procured for use in equipment intended for internal purposes (e.g. research, development, problem resolution, testing theories, trying new ideas, etc.), and which are not planned to be provided to sponsors. However, GIT still encourages the procurement of parts through approved venders as identified in this policy.

Also excluded are unmodified commercial off-the-shelf (COTS) assemblies or subsystems, procured from original equipment manufacturers (OEMs), unless otherwise specified in the project plan or mission assurance plan.

Question: Who is responsible for the implementation of this policy?

Answer: Implementation is the responsibility of any individual or organization, internal or external to GIT, which is involved in sourcing such parts in support of program hardware provided to U.S. Government sponsors.

Question: What types of counterfeits are there?

Answer: Counterfeit parts may consist of recycled, remarked, overproduced, out-of-specification/defective, cloned, received forged documentation, cloned, or tampered parts.

Question: Are parts other than electronic parts to be covered by this policy?

Answer: This policy currently addresses only counterfeit electronic parts. As future DFARS pronouncements expand the scope of the required Counterfeit Detection and Avoidance System (CDAS) to additional parts categories, the scope of this policy will expand accordingly.

Question: How does this policy affect parts purchased for internal projects or use (IRAD, Testing, RI needs, etc.)?

Answer: Although not subject to DFARS 252.246-7007, the purchase of any electronic parts for internal use can also introduce counterfeit parts into GIT supply and affect the safety and/or quality of assemblies and products.  It is advisable to mitigate this risk by following the purchasing guidelines outlined within this policy.

Question: What is the process for reporting suspected counterfeit parts to GIDEP?

Answer: GIT PDs, PIs, and Program Managers (PMs) shall work with the supplier to verify counterfeit determination and shall issue a Government-Industry Data Exchange Program (GIDEP) Advisory (suspect counterfeit part, but confirmed genuine) or GIDEP Alert (confirmed as counterfeit). Such reports are to be issued within 30 days of the initial escalation. For access to GIDEP, please direct any inquiries to PMO.

Refer to Section 5.6 for quarantine procedures if a suspected counterfeit part is identified and notify PMO.

Question: Is the supplier’s certification, listed on their website that considered reliable?

Answer: No.  GIT Personnel may, however, rely on the original manufacturer’s list of authorized suppliers to gain comfort that electronic parts purchased from that supplier are genuine.  However, any certification must come from the Original Component Manufacturer (OCM), not the reseller.

Question: What is the importance of visual inspections?

Answer: Visual inspection on electronic parts and packaging is important to detect nonconforming and suspect counterfeit characteristics ahead of time, to prevent, investigate, and remediate counterfeiting into the government supply chain.

Visual Inspection is required on projects that purchase electronic components for use in DoD delivered hardware on contracts that are subject to DFARS 252.246-7007. PMO has PM Professionals who are certified component inspectors. Please direct any inquiries to PMO.

Question: What if traceability cannot be established?

Answer: Contact PMO if traceability of parts cannot be obtained.

Question: What should a Risk Matrix for Counterfeit Parts look like?

Answer: The sponsor may have specific requirements of what the Risk Matrix should contain. If no specifics are required, a template is attached to this policy.

Question: Who can help determine the level of risk and associated tests needed if purchasing Category 3 electronic parts?

Answer: Contact PMO for assistance with establishing a risk assessment and test sequence program as prescribed in SAE-AS6171.

Question: How often is the Counterfeit Electronic Part Detection and Avoidance Policy updated?

Answer: This policy is reviewed and updated on a yearly basis.

Question: Who should be contacted for questions or assistance?

Answer: Contact PMO or unit management with any questions or requests for assistance.

Responsibilities: 

It is the responsibility of all personnel who handle electronic components or assemblies containing electronic components at any point in the inspection, assembly, and test flow to be aware of and to report any attribute, feature, or performance parameters that may indicate that the part is not genuine. The unit is responsible for establishing internal requirements for approval and delegation of authority to purchasing electronic parts.

Project Management Office

The Project Management Support Office (PMO-GTRI) is responsible for the implementation of the policy.

Georgia Tech organizational unit management

  • Project Directors (PDs)
  • Principal Investigators (PIs)
  • Program Managers (PMs)

 

Enforcement: 

It is the responsibility of the purchase requestor to be sure that the policy is adhered to during the acquisition of electronic parts.

Related Information

Government Number
Document Number Document Title, Revision, and Date
DFARS 246.870 SubPart 246.8 – Contractor Liability for Loss of or Damage to Property of the Government, Revised October 21, 2016
DFARS 252.246-7007 Contractor Counterfeit Electronic Part Detection and Avoidance System, August 2016
DFARS 252.246-7008

Sources of Electronic Parts

DFARS 231.205-71

SubPart 231.2 - Contracts With Commercial Organizations

Industry Documents
Document Number Document Title, Revision, and Date

IDEA-STD-1010B

Acceptability of Electronic Components Distributed in the Open Market

JEDEC JESD-243

Counterfeit Electronic Parts: Non-Proliferation for Manufacturers

SAE AS5553B Counterfeit Electrical, Electronic, and Electromechanical Parts; Avoidance, Detection, Mitigation, and Disposition
SAE AS6081 Fraudulent/Counterfeit Parts: Avoidance, Detection, Mitigation, and Disposition - Distributors
SAE AS6171

Test Methods Standard; General Requirements, Suspect/Counterfeit Electrical, Electronic, and Electromechanical Parts

Other Reference Items  
CASL

Category 2 List of Suppliers

Category 3 List of Testers

ECIA ECIA  maintains a database (https://www.eciaauthorized.com/en) of verified authorized suppliers. The ECIA database is an alternative source for verifying authorized suppliers and shall be archived with purchase documentation.
ERAI ERAI, Inc. is a global information services organization that monitors, investigates, and reports issues affecting the global electronics supply chain.
GIDEP GIDEP is a cooperative activity between government and industry participants seeking to reduce or eliminate expenditures of resources by sharing technical information essential during research, design, development, production and operational phases of the life cycle of systems, facilities and equipment.
PMO Help Request and Email

Help Request Link

Email:pmo@gtri.gatech.edu

Related Documents: 
Policy History: 
Revision Date Author Description
7/22/2021 GTRI PMO Editorial Updates
09/15/2017 GTRI PMO Transitioned to a GTRI internal memorandum for record
TBD   New Policy

Employee Contractor Policy

Policy No: 
5.2.8
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
December 2020
Review Date: 
December 2023
Policy Owner: 
Purchasing and Procurement
Policy Owners: 
Human Resources
Contact Name: 
Ajay Patel
Kevin Merkel
Contact Title: 
Director of Purchasing
Senior Director Payroll &Total Rewards, HR Services
Contact Email: 
ajay.patel@business.gatech.edu
kevin.merkel@ohr.gatech.edu
Reason for Policy: 

To provide guidelines for contracting with individuals and firms.  Additionally, this Policy clarifies the distinction between an employee and contractor.

Policy Statement: 

A consultant or independent contractor is a firm or an individual offering professional or specialized services for a fixed rate or fee. A consultant or independent contractor should be used only when the services are not readily available from existing employees or where the services cannot be performed more economically or satisfactorily through the Institute employment process.

The Institute only controls the direction of the consultant or independent contractors' work with respect to work objectives and desired results and not the methodology for achieving the results. Any individual who performs services for the Institute is presumed to be an employee unless the relationship satisfies the IRS standards for Independent Contractor (see Classification of Independent Contractors versus Employees below).

Firms and corporations that are clearly in the business to offer and sell their services to the public are independent contractors.

A determination must be made to ensure that payments to individuals for services (instructors or consultants) clearly meet the Internal Revenue Service (IRS) definition of Independent Contractor and that the regulations of the IRS and Immigration and Naturalization Service/US Department of State with respect to non-US citizens/resident aliens have been followed.

Scope: 

This policy applies to all Georgia Tech units.

Procedures: 

Classification of Independent Contractors Versus Employees

The department/unit makes the initial determination whether an individual is an employee or independent contractor because of the familiarity of the relationship. Prior to engaging any individual for services as an independent contractor an assessment based on IRS guidelines must be made and documented. The department must complete the “Employee – Contractor Checklist”.

The prospective worker must also complete the “Independent Contractor Checklist” as well as provide a vendor Statement of Work.

Completed forms and vendor Statement of Work should be emailed to Georgia Tech Human Resources (GTHR) at compensation.ask@ohr.gatech.edu for review. If additional review is required, a review committee which will include the Tax Compliance Manager, Procurement and Business Services, and Legal Affairs staff will make a determination.

If approved by Purchasing or Human Resources, the completed checklist must be attached to a requisition in Georgia Tech E-Procurement System for processing. If the consultant is a teaming partner and will be paid from sponsored funds, the agreement must be executed through the Office of Sponsored Programs on a "Request for Sub-Agreement Form".

Groups Usually Paid As Employees:

•Academic Activity – Instruction services provided to enrolled students and for Georgia Tech programs

•Former Georgia Tech Employees – Persons employed by Georgia Tech in any position within the last 36 months

•Graduate Research Assistant, Graduate Teaching Assistant, or Graduate Assistant – Graduate students providing teaching, research, and staff duties

•Individual who performs substantially similar services as those provided by Georgia Tech employees – All individuals, including student workers

•Office management and accounting services – individuals who perform substantially similar services to Georgia Tech employees not hired through an employment agency

•Retired Individuals from University System of Georgia who are receiving benefits – Retired-but-Working classification

•Short-term direct support staff supervised by Georgia Tech faculty or staff – duties often performed by Tech Temps

•Student providing non-skilled services – student assistants

•Support services for programs and activities – includes summer activities/camps, grading papers and other services

•Temporary help – includes event set-up, drivers, errands and various other services

A Pay Classification Matrix has been developed for your reference and the link can be found here and in the Related Information section of this policy.

Travel Expenses
The method for reimbursements made directly to the service provider (consultant, etc.) must be specified in the consultant's contract for services. Travel reimbursements may be made based on state travel regulations. The administrative unit is responsible for determining if charges for reimbursable expenses are proper and reasonable and the amount agreed to cover those travel expenses should be entered as a separate line item on the requisition. Specific requirements for documenting and itemizing those travel expenses will be detailed in the service agreement, but original receipts are not required. All payments to the consultant or firm will be reported on IRS Form 1099-misc or 1042-S, as appropriate. Tax withholding, where required, will apply at time of payment. Direct billing of airfare or hotel is not permitted.

Responsibilities: 

It is the responsibility of the department/unit to initially determine if an individual is an employee or independent contractor based on IRS guidelines.

It is the responsibility of the Georgia Tech Human Resources to review documentation related to the individual to determine if classification of individual is independent contractor or employee.

Policy History: 
Revision Date Author Description
12-2020 Purchasing and Procurement Editorial updates
10-2014 Purchasing and Procurement Updates to verbiage

Honorarium Payments

Policy No: 
5.3.1
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
November 2020
Review Date: 
February 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Policy Statement: 

An honorarium is a one-time payment for short-term services, as outlined in this procedure, where the Institute does not expect a particular deliverable and the recipient will not invoice the Institute for services rendered.. Nonresident Alien individuals may receive honorarium payments with a J-1, B-1, or B-2 visa. Most other Visas do not permit honoraria payment.

  • Honorariums are to be paid to individuals, rather than companies or organizations. Services provided by companies or organizations must be contracted.
  • Honorariums are not be paid to Georgia Tech employees including student employees.
  • State law limits those State of Georgia employees who are eligible to sell their services to other State agencies on a per diem/honorarium basis. Payment is allowed only if the individual is classified in one of the following categories:
    • chaplain
    • fireman
    • any person holding a doctoral or master's degree from an accredited college or university
    • physician
    • dentist
    • psychologist
    • registered nurse or licensed practical nurse

See documentation requirements below for when payee is State of Georgia employee.
 

Procedures: 

When to Use

  • An honorarium must be paid for services provided and cannot be used as a form of payment for an award.
  • The service provided is one where Georgia Tech does not expect a particular deliverable.
  • Examples include:
  • presentation of research results
  • reading of papers
  • participation or leading of colloquiums, workshops, and seminars
  • presentation of lectures
  • The services provided must be short-term in length. Short-term is defined as 9 business days or less. Services over a longer period of time must be contracted.
     

Approval Responsibility

  • Approval by an administrative unit indicates that payment is allowable from funding source. [If state funds, the service should be instruction, research or public service. If sponsored funds, service must be instruction, research, public service or is specifically authorized by grantor.]
  • Approval by an administrative unit indicates that payment is within policy guidelines for honorariums.

Amount Limitations

  • Each honorarium activity should typically not be greater than $5,000 unless a special exception has been granted by the Purchasing Department. Honorarium payments are processed as a direct expense and are not initiated through the requisition process.
  • Amount of honorarium may include payment for services along with amount intended to cover travel expenses.
  • Amount for services (honorarium) may be paid and expenses reimbursed with appropriate receipts and documentation. Payment of honorarium and expenses must be requested at same time.

IRS Reporting
In accordance with Internal Revenue Service regulations, payments to US tax residents, which total $600 or more in aggregate to payee, will be reported as income on a 1099-Miscellaneous Income form.
If recipient is Nonresident Alien, reporting on IRS Form 1042-S will be in accordance with guidelines outlined in separate procedures for payments to Nonresident Aliens.
 

Documentation Requirements

  • An official announcement, invitation letter, flyer, etc. that outlines the need of the service provided must accompany the request for payment of honorarium.
  • In all cases, requests must be accompanied by a Georgia Tech Vendor Profile Form completed by the recipient of the honorarium.
  • If payee is Nonresident Alien, see separate procedures for restrictions and requirements may apply.
  • Receipts for travel expenses if claimed as a separate expense line.
  • If payee is State of Georgia employee, the following must be provided:
    • certification from requesting department of the need for services and why the best interest of the State will be served by obtaining such services from a person not presently employed by the State,
    • certification by department, agency, etc. employing employee that the performance of such services will not detract or have a detrimental effect on the performance of employee's full-time employment .

Procedure Guidelines Forms
Recipients of a honorarium will need to be set up as a supplier. Requests for payment of honorariums should be submitted electronically as a supplier invoice request (SIR) via the Institute’s Financial System. The appropriate spend category for honorariums is to be used.

Expense Account Classification
The appropriate expense category is also to be used for any associated travel expenses. Expenses must be reported by day and travelers must comply with Institute travel policies. Travel expenses that are not supported by receipts, or otherwise do not comply with Institute travel policies will have all expenses classified as honoraria income.
 

Payments to International Vendors and Nonresident Alien Foreign National Consultants, Scholars, and Official Visitors

Policy No: 
5.3.5
Type of Policy: 
Administrative
Effective Date: 
October 2012
Last Revised: 
October 2020
Review Date: 
October 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Reason for Policy: 

The following procedures will provide guidelines for retaining the services of non-employee foreign nationals, including international vendors, consultants, scholars, and official visitors. Policies are made to ensure that contracts and payments are made in compliance with Internal Revenue Service and Department of Homeland Security laws and regulations.

Policy Statement: 

Eligibility for Payments
The U.S. Citizenship and Immigration Services laws and regulations are very specific about what types of payments may be made to each visa type, who may make the payments, and what type(s) of employment verification documents are required for the foreign nationals to receive payments.

An abbreviated list of common visa types, restrictions, and documentation is provided below:

  • B-1 or *VWB or WB (Visitor/Business) - May receive reimbursement for reasonable travel expenses and, under limited circumstances, payments for compensation and honoraria.**
  • B-2 or VWT or WT (Visitor for Pleasure) - Under limited circumstances, may receive payments for compensation, honoraria, and reimbursement of reasonable travel expenses.**
  • F-1 & J-1 Students may receive compensation as well as an award, prize, research participant stipend or scholarship.
  • J-1 (Exchange Visitor - Short term Scholar, Professor, Researcher or Specialist) is eligible to receive compensation and reimbursement payments from the organization and for the period stated on the DS-2019. Visitor must have a Social Security or Tax ID Number for compensation payments.
  • Canadians who enter the United States and are not issued a Form I-94 are considered to be in B status (compensation and reasonable travel expense reimbursement) with permission to remain in the US for up to six months.

*VWB/WB or Visa Waiver for Business is an agreement between the US and certain countries in which the visitor is not required to have a visa. Participants in the program must be present in the United States fewer than 90 days with a valid passport and a nontransferable, nonrefundable round trip ticket.

**The American Competitiveness Workforce Act of 1998 allows payment of honoraria and associated incidental expenses to B-1, B-2, WB, and WT visa holders for “usual academic activity," if paid by a United States institution of higher education, a nonprofit organization affiliated with an institution of higher education, or a nonprofit or a governmental research organization. Under the Act, an academic activity may not exceed nine days at a single institution. In addition, such visa holders cannot accept honoraria and/or incidental expenses from more than five such institutions or organizations in the previous six months.

Federal Tax Treatment
Georgia Tech will withhold taxes in compliance with IRS tax law for all applicable foreign national payments, including honoraria, compensation, consulting fees, fellowships, stipends, awards, participant payments, sub-agreements, services/maintenance, royalties, rents, as well as some reimbursements for travel. Detailed descriptions regarding tax issues for non-US tax residents can be found in IRS Publication 519: US Tax Guide for Aliens.
Tax treaty benefits may be available to the payee, if there is an income tax treaty between the home country and the US. The individual’s US tax residency status, the business purpose of the payment, and payment amount determine whether a particular tax treaty benefit applies. In addition. All claims for tax treaty benefits must include the individuals social security number or an ITIN (Individual Taxpayer Identification Number). See IRS Publication 901: U.S. Tax Treaties. 

Policy Terms: 

A foreign national  is an individual who is not a citizen or a permanent resident (holder of a "green card") of the United States. (U.S. permanent residents are foreign nationals, but by definition are treated the same as U.S. citizens for tax purposes.) A foreign national is admitted to the United States for a temporary stay and for a specific purpose (identified by visa type).

Procedures: 

Georgia Tech utilizes the GLACIER Nonresident Alien Tax Compliance System to collect immigration and tax related information from foreign nationals receiving funds from the Georgia Institute of Technology. All foreign nationals receiving funds from the Institute must have a GLACIER record. GLACIER determines tax residency status and tax treaty eligibility for the foreign national. The system creates all forms required prior to payment, as well as the IRS form 1042-S for annual tax reporting.

The Accounts Payable Website includes payment request checklists to assist the campus administrator with the collection of required documentation for each category of international payment (How to pay an honorarium, How to make a fellowship payment, etc).

Please submit a ServiceNow request for additional guidance regarding payment processing for international payees.

Reimbursable Expenses for Official Guests and Visitors

Policy No: 
5.3.2
Type of Policy: 
Administrative
Last Revised: 
April 2011
Review Date: 
July 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Policy Statement: 

Expense-Only reimbursements are for the travel of non-employees who do not have a contract for services, such as guest lecturers, student candidates, or interviewees for employment. In general, official guests and visitors must comply with the same travel regulations as employees.
See "Non-Employee Travel"

Short-term Instructors or Lecturers (Non-Faculty)

Policy No: 
5.3.4
Type of Policy: 
Administrative
Effective Date: 
February 2011
Review Date: 
July 2023
Policy Owner: 
Accounts Payable
Contact Name: 
Abbie Coker
Contact Title: 
Director of Accounts Payable & Travel
Contact Email: 
abbie.coker@business.gatech.edu
Procedures: 

Individuals providing a service to the Institute as Continuing Education speakers, OPTIONS instructors, CRC instructors, and other short-term instructors may be handled as independent contractors OR employees depending upon the number of payments involved and the "Classification of Independent Contractors Versus Employees" determination. For speakers and instructors employed through independent business firms, refer to the Consultants—(Individuals and Firms) section of the "Procurement of Service" procedures.
If the review of the questions under "Classification of Independent Contractors Versus Employees" (see procedure Purchase of Services -- Consultants –(Individuals and Firms)) indicates that the individual should not be classified as an employee, the payments may be processed through Accounts Payable on a Check Request Form. The individual will receive a Form 1099 at year end. If the instructor is a not a U.S. citizen or resident, refer to the "Payments to Nonresident Aliens (Non-employees)" procedure.
If the review of the questions under "Classification of Independent Contractors Versus Employees" (see consultants individuals and firms) indicates that the individual should be classified as an employee. Refer to Office of Human Resources Procedures for employment through the Tech Temp Program.

Subcontract Processing

Policy No: 
5.3.6
Type of Policy: 
Administrative
Effective Date: 
July 2016
Last Revised: 
July 2016
Review Date: 
July 2019
Policy Owner: 
Purchasing and Procurement
Contact Name: 
Ajay Patel
Contact Title: 
Director of Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Reason for Policy: 

Process to Request a Sub recipient Online-

Principle Investigator or Unit Financial Officers (Departmental Administrators)

  1. Visit OSP Contract System - https://webwise.gtri.gatech.edu/osp/sub/sitemap. Use your GT Kerberos Password or GTRI credentials to access the system.
  2. Under the OSP Contract Information System tab you will find a section for Sub- agreement Management. Click on “make a request for new sub-agreement.”
  3. To complete the "Request for a Sub-agreement" process you will want to have the following information ready:
    -- Detailed budget
    -- Statement of work (including any deliverables/reports)
    -- Short narrative as to why you selected the subcontractor
    -- Cost price analysis
  4. Query on the fund number you wish to issue the subcontract/consulting agreement under.
  5. After completing the required fields, click on “Submit to OSP.”
  6. Print a copy of the request; complete accounting section of the form and route for signatures.

Sub recipient Monitoring- Principle Investigator or Unit Financial Officers (Departmental Administrators)

Unit Financial Officers (UFO’s) should assist PI’s in carrying out their sub recipient monitoring responsibilities. This includes:

  • Reviewing invoices from sub recipients to ensure invoices are within the parameters of the sub-award budget, and questioning expenditures if necessary.
  • Ensure that invoices are approved by the PI or his/her designee and submitted to Accounts Payable in a timely basis.
  • Maintain copies of all invoices that provide evidence of the regular review of invoices by the PI. “Evidence” can be in the form of authorized signature by the PI or his/her designee, PI’s initials, e-mail communications, or notes of meeting between the PI with the department administrator.
  • Maintaining documentation of monitoring efforts (copies of e-mail, phone log, etc.).

Process to encumbering Sub recipient in Buzz mart- Unit Financial Officers (Departmental Administrators)
Create “CONFIRMING ORDER/SUBCONTRACT” requisition cart:

  1. Select Vendor and choose appropriate address.
    • Enter Descriptions details:  Fund Number/Agreement number; PI name; Budget Dates
    • Expense Codes:  753160- 1st $25K  -  753180- over $25K
    • NIGP Code:   95675- Scientific Research Services
  2. Release cart after ICOL notice has been received that sub agreement is complete. Procurement services cannot release encumbrance until agreement is active.
  3. Enter confirming order request annually for each funding year.

Subcontract Invoice Payments:

  1. Review invoices from sub recipients to ensure invoices are within the parameters of the sub-award budget, and questioning expenditures if necessary.
  2. Code invoices with purchase order number and expense code and send to GaTech PI for compliance verification.
  3. Sub recipient invoices must be sent to ospinvoices@osp.gatech.edu for upload into Web Now queue for approval.
  4. Complete the Invoice Payment Approval Form (Worksheet) within the image in Web Now and route the invoice forward to the ‘Sub award Pay’ queue for processing. Subcontract payments are processed directly in PeopleSoft, rather than BuzzMart, so voucher detail will not be available in BuzzMart. Your electronic signature approval on the Web Now approval form certifies that the goods were received and/or services performed, so no additional ‘Receipt’ is required in BuzzMart and vouchers should not create a match exception.
  5. File all invoices with contract packet.

Subcontract Closeout Process:

  1. Audit invoices payment to verify that cumulative expenses submitted by subcontract matches total invoice payments. 
  2. Ensure that final invoice is paid/submitted to OSP so that closeout procedures are initiated.
  3. Verify open encumbrance report and close out any remaining encumbrance if necessary.

Mark subcontract package “complete” and retain packet per file retention guidelines.