To provide guidance to schools, colleges, departments or units of the Institute as it relates to general accounting functions.
The following policies in this policy book provide guidance to schools, colleges, departments or units of the Institute regarding general accounting functions. Other functions such as Payroll, Accounts Payable, Purchasing, Budgets, Grants and Contracts and Equipment Management are in separate policy books in the policy library.
This policy applies to all schools, department, and units of the Institute.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Controller's Office | Updates to verbiage |
The object of this procedure is to provide a basic explanation of the account numbering systems of Georgia Tech.
General Guidelines
A thorough explanation of the Board of Regents Account number can be found in the Accounting Procedures and Instructions Manual - Revised (BPM-1) provided by the Board of Regents of the University System of Georgia. An explanation of values comprising the Chart of Accounts can be obtained by contacting the Accounting Services Department. The Board of Regents Chart of Accounts is authorized by the Board of Regents of the University System of Georgia. However, values for some segments of this account are internal to this Institution. As such, they gain authority from the Senior Vice President for Finance and Administration.
Georgia Tech currently uses four types of account numbers:
Chart of Accounts Report
The Chart of Accounts report lists all account numbers. Translation programs are used to "link" each account to the others. These reports may be sorted by any of the four account types and within each account type they can be sorted numerically, alphabetically, or numerically by Organization within any one of the types.
Board of Regents Account Segments
Following is a brief description of the segments comprising the Board of Regents Chart of Accounts.
Board of Regents Account Number Structure
Each Account is grouped into eight principal fields that may contain up to five characters as follows:
PeopleSoft Account Number
There are five Chart fields that comprise the number that exists with in the baseline of the PeopleSoft product. They are: Fund, Organization, Program, Subclass, Project and Account.
| PeopleSoft Fund Number | Description | Legacy Fund Number |
|---|---|---|
| 01000 | GEAC Control Account | 01 |
| 10000 | Cur Unrestricted - E & G | N/A |
| 10010 | Cur Unrestricted - Resident In | 10 |
| 11000 | Cur Unrestricted - Other Org | N/A |
| 11021 | Cur Unrestricted – GTRI | 21 |
| 11022 | Cur Unrestricted - Con Ed | 22 |
| 11023 | Cur Unrestricted – CRT | 23 |
| 11024 | Cur Unrestricted – ATDC | 24 |
| 11025 | Cur Unrestricted – EDI | 25 |
| 12000 | Cur Unrestricted – Auxiliary | N/A |
| 12050 | Cur Unrestricted – Auxiliary | 50 |
| 13000 | Cur Unrestricted - Student Act | N/A |
| 13095 | Cur Unrestricted - Student Act | 95 |
| 20000 | Cur Restricted - E & G | N/A |
| 20010 | Cur Restricted - Resident In | 10 |
| 20040 | Cur Restricted - Resident In | 40 |
| 21000 | Cur Restricted - Other Org | N/A |
| 21021 | Cur Restricted – GTRI | 21 |
| 21022 | Cur Restricted - Con Ed | 22 |
| 21023 | Cur Restricted – CRT | 23 |
| 21024 | Cur Restricted – ATDC | 24 |
| 21025 | Cur Restricted – EDI | 25 |
| 21041 | Cur Restricted – GTRI | 41 |
| 21042 | Cur Restricted - Con Ed | 42 |
| 21043 | Cur Restricted – CRT | 43 |
| 21044 | Cur Restricted – ATDC | 44 |
| 21045 | Cur Restricted – EDI | 45 |
| 21048 | Cur Restricted - Unexp Plant | 48 |
| 30000 | Loan – Federal | N/A |
| 30070 | Loan – Federal | 70 |
| 31000 | Loan – Institutional | N/A |
| 31070 | Loan – Institutional | 70 |
| 40000 | Endowments – Endowment | N/A |
| 40075 | Endowments – Endowment | 75 |
| 41000 | Endowments - Term End | N/A |
| 41075 | Endowments - Term End | 75 |
| 42000 | Endowments - Quasi End | N/A |
| 42075 | Endowments - Quasi End | 75 |
| 50000 | Plant – Unexpended | N/A |
| 50080 | Plant – Unexpended | 80 |
| 51000 | Plant - Renewal & Replacement | N/A |
| 51082 | Plant - Renewal & Replacement | 82 |
| 52000 | Plant - Investment in Plant | N/A |
| 52085 | Plant - Investment in Plant | 85 |
| 60000 | Agency - Funds on Deposit | N/A |
| 60090 | Agency - Funds on Deposit | 90 |
| 61000 | Agency-Designated Scholarships | N/A |
| 61090 | Agency-Designated Scholarships | 90 |
| 62000 | Agency - Payroll Operations | N/A |
| 62090 | Agency - Payroll Operations | 90 |
| Org Code | Organization Name |
|---|---|
| 221 | Con-Ed Distance Learning |
| 320 | Biology |
| 515 | International Affairs |
| 764 | Accounts Payable |
| 911 | Real Estate & Space Planning |
| Program Number | Program Description |
|---|---|
| 11000 | Instruction |
| 12000 | Research |
| 15910 | Intramural Athletics |
| 17700 | Suspense Plant |
| 21000 | Housing |
| Subclass Code | Sub-Classification Description | State or Sponsored |
|---|---|---|
| 11000 | General Operations | State |
| 11680 | Undesignated Spons Research | State |
| 12000 | Research Consortium | State |
| 14000 | Lottery Funds | State |
| 41000 | DS & S - General | Departmental Sales and Service |
| 63000 | Sponsored Operation - Local | Sponsored |
| 63439 | Fed Flow - NASA | Sponsored |
| 64010 | Georgia Tech Foundation | Sponsored |
| 64100 | Sponsored Private | Sponsored |
| 64050 | Georgia Tech Research Corp | Sponsored |
Speedtype
The five Chart fields described make up a very complex baseline number. To simplify the use of the PeopleSoft General Ledger, a shorter number called a SpeedType was developed to "point" to the baseline number. To access or input account information within the PeopleSoft system, the user need only know the SpeedType.
Balance Sheet and Revenue Accounts
The Speed Type number for balance sheet accounts contains the letter Z followed by the existing Old Account Number (example: Speed Type Number Z1011800 = the old Account Number 10-11800).
Expenditure Accounts
Expenditure SpeedTypes vary in length from 7 to 9 digits depending upon the type of account. Expenditure SpeedTypes are comprised of the following digits:
Restricted Fund Accounts
The Restricted Fund Speed Type is the same as the Old Account Number.
Agency Fund Accounts
The Agency Fund Speed Type Number consists of the following:
Examples of SpeedTypes:
| Org Identifier | Fund Source |
Old Account Number Portion | ||||||
|---|---|---|---|---|---|---|---|---|
| 7 | 6 | 3 | 1 | 1 | 2 | 3 | ||
Organization Identifier: 763 (Accounting Services)
Fund Source: 1 (State)
Old Account Number Portion: 123 (The old account number is I-71-123)
| Org Identifier |
Old Account Number Portion | |||||||
|---|---|---|---|---|---|---|---|---|
| 0 | A | 1 | 0 | 0 | 4 | 1 | 3 | 6 |
Organization Identifier: 0 (GTRI)
Fund Source: N/A
Old Account Number Portion: A-100-4136 (Use entire old account number)
| Org Identifer | Fund Source |
Old Account Number Portion | ||||||
|---|---|---|---|---|---|---|---|---|
| 2 | 9 | 0 | 6 | 1 | 0 | 6 | 0 | 6 |
Organization Identifier: 0 (GTRI)
Fund Source: N/A
Old Account Number Portion: A-100-4136 (Use entire old account number)
| Org Identifier | Fund Source |
Old Account Number Portion | ||||||
|---|---|---|---|---|---|---|---|---|
| 1 | 6 | 0 | 6 | 5 | 3 | 8 | ||
Organization Identifier: 160 (Aerospace Engineering)
Fund Source: 6 (Sponsored)
Old Account Number Portion: 538 (The old account number is E-16-538)
The Institute follows the University System of Georgia’s policy for custodial funds. The USG requirements can be found at: https://www.usg.edu/business_procedures_manual/section14/.
For more information on custodial funds, including instructions on how to request a new custodial fund, please visit the Controller’s Office website.
To provide guidance to schools, colleges, departments or units of the Institute as it relates to depositing funds received.
Normally, all funds received by a unit should be deposited no later than the next business day following the date of receipt. For instances in which a unit receives small amounts of cash or checks (total less than $100) which would not warrant a daily trip to the Bursar's Office, the funds may be held no more than five business days. Each unit must establish operating procedures to ensure compliance with the daily or weekly deposit requirements. All deposits should be hand delivered to the Bursar's Office in order to comply with the twenty-four hour deposit requirement. The Bursar's Office is open daily from 8:30am to 4pm.
There are a limited number of departments on campus who have been authorized by the Institute to transmit cash to the bank for their department. Although they do not go through the normal process, they are still responsible for submitting information related to funds received to the Bursar’s Office so it can be posted to the Institute’s ledger.
All checks payable to Georgia Institute of Technology must be deposited to the Institute’s bank account. Funds should never be deposited to an individual’s bank account or to a bank account which has not been specifically authorized by Treasury Services as belonging to the Georgia Institute of Technology. Checks and cash must be kept in secure locations at all times.
This policy applies to all schools, department, and units of the Institute.
Transmittal Cash to Bursar’s Office
The Deposit Remittance Form should be used as a transmittal sheet for deposits. Forms are available from the Bursar's Office. These forms may be copied for use by units at Georgia Tech.
Form Instructions
SECTION ONE
SECTION TWO
SECTION THREE
SECTION FOUR
Campus Schools, Colleges, Departments or Units are responsible for timely remittance of funds to the Bursar’s Office and establishing operating procedures to ensure compliance with the daily or weekly deposit requirements
The Bursar’s Office is responsible for timely remittance of funds to the Bank
Controller’s Office is responsible for timely reconciliation of the Institute’s Bank Accounts
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Controller’s Office | Minor updates to contacts, verbiage, etc. Policy reassigned to Bursar’s Office |
To provide guidance to schools, colleges, departments or units of the Institute as it relates to receiving and depositing gifts of funds to the Institute.
Georgia Tech requires all donors to make gifts to Georgia Tech payable to the Georgia Tech Foundation Inc., a charitable corporation that receives and manages contributions made for the benefit of Georgia Tech. The Foundation is a 501(c)(3) organization, qualified to receive tax deductible contributions under the Internal Revenue Code. Anyone soliciting support for the Institute should request that gifts be made to the Georgia Tech Foundation Inc., rather than the Institute.
This policy applies to all schools, colleges, departments, and units of the Institute.
Gifts Payable to Georgia Tech
All checks and securities intended as gifts to the Georgia Institute of Technology should be routed to the Office of Development for acceptance and acknowledgment. Those funds should then be deposited into the Institute's bank account. If related documentation indicates the donor intended to direct the gift to the Foundation, the funds will be transferred after appropriate review. No attempt should be made to deposit a check to any entity other than the Payee. Under no circumstances should a check be modified to change the Payee.
The primary exception to this policy is for gifts of equipment or other tangible property which may more effectively be made directly to the Institute. However, even gifts of equipment or other tangible property are to be reported to and acknowledged by the Office of Development.
It is the policy of the University System of Georgia Board of Regents (BOR) that all gifts to the Institute exceeding $100,000 in value must be officially accepted by the BOR. Conditional acceptance and acknowledgement of gifts, however, may be issued at the discretion of the Vice President for Development and his/her designee.
Gifts Payable to the Georgia Tech Foundation (GTF)
All checks received at the Institute but made payable to the Georgia Tech Foundation (GTF) should be forwarded via campus mail to the GTF office via mail code 0182.
If related documentation indicates the donor intended to direct the gift to Georgia Tech, the funds will be transferred after appropriate review. No attempt should be made to deposit a check to any entity other than the Payee. Under no circumstances should a check be modified to change the Payee.
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
| Revision Date | Author | Description |
|---|---|---|
| 1-07-2021 | Controller's Office | Updates to verbiage |
| 10-03-2014 | Controller’s Office | Updates to verbiage |
This procedure provides general guidelines for the handling of cash receipts by campus units.
Each department/unit is responsible for the funds it receives for the Institute. Cash receipts must be officially recorded on a cash register, approved validating equipment, or in official pre-numbered receipt books. If the receiving location receives an average of $250 per day in cash or checks through the mail, mail receipts should be listed on a checks received log form by someone other than the person who prepares the deposit slip.
The list should be updated with the number of the deposit slip which includes the checks on the list.
All checks in payment of amounts due the Institute must be made payable to "Georgia Institute of Technology." Checks should not be made payable to departments, department heads, or any Institute officials or employees designated by name. If checks are received with the payee improperly designated, but yet deemed acceptable for deposit to Georgia Tech, they should be appropriately endorsed as payable to Georgia Institute of Technology so that they can be properly endorsed to the credit of the Institute by the Bursar. If checks of a repetitive nature are received without the proper payee designation, the drawer should be informed to make future checks payable to "Georgia Institute of Technology."
Separation of Duties
Duties of employee should be appropriately separated between the receiving of Institute receipts and the record keeping and preparation of deposits with the Bursar's Office. No one person should be responsible for all these functions.
Custody and Safekeeping of Receipts
To provide guidance to schools, colleges, departments or units of the Institute as it relates to purchasing items and receiving reimbursement for such purchases via Petty Cash funds. This policy and procedure will detail the authorized use of petty cash funds and restrictions on purchases.
Petty Cash Fund
A petty cash fund is used by campus departments to reimburse employees for small dollar purchases. Funds may generally be classified into one of two types:
Allowable Transactions
The transactions are allowable using petty cash funds:
Typical allowable transaction types include office supplies, lab supplies, telephone reimbursements, local parking reimbursements, mailing services, copy and photo services.
No single petty cash fund transaction should exceed $250. Reimbursement exceeding $250 must be made via the Institute’s Travel and Expenses system. For more information, please see policy 5.2.1.5 – Reimbursement for Purchases Made Using Personal Funds.
Unallowable Transactions
The following transactions and purchases are not allowed to be processed with petty cash funds:
Any items that are unallowable via the Institute's Purchasing department are also unallowable to be purchased using petty cash funds. Please see the Institute’s Allowable Cost Matrix at www.controller.gatech.edu/allowable-cost-matrix for additional information on allowable and unallowable Institute purchases. Also, items that are required to be purchased through the Purchasing department may not be purchased with petty cash funds even if the shipment of the item has been delayed or it is out of stock. Violations of petty cash policy may result in non-reimbursement or fund closure.
This policy applies to all schools, colleges, departments, and units of the Institute.
Departmental Petty Cash Funds
Departments may request approval to establish departmental petty cash funds to reimburse petty cash expenditures. Change Funds are used to give change to customers when they are paying for goods or services. Please refer to "Departmental Petty Cash Fund Procedures" for specific information regarding departmental petty cash procedures or "Departmental Petty Cash Fund Checking Account Procedures" for specific information regarding petty cash checking account procedures.
Bursar’s Office Petty Cash Fund
Departments that do not have their own petty cash funds may use the Bursar's Office petty cash fund for reimbursement of petty cash purchases. Please refer to "Petty Cash Reimbursement Procedures" for specific information regarding the use of the Bursar's Office petty cash fund.
Petty Cash Guidelines
Petty cash must be held in a locked cash drawer or locked cash box. (Security recommends a smooth metal finish box for fingerprinting purposes.) A primary key to the drawer or box must be held by the custodian while a secondary key should be held by the department head or delegate for emergency purposes.
In the event the fund custodian has a scheduled absence, a temporary custodian can be assigned by the department head. The funds must be counted in the presence of the authorized custodian before the leave period begins and again once the custodian returns. This procedure is used when the petty cash fund is greater than $200.
In the event the fund custodian has an unscheduled absence, a temporary custodian can be assigned by the department head. The funds must be counted in the presence of the department head or his designee before the funds are used. A similar cash count must be performed upon the return of the regular fund custodian. The department should maintain the cash count verifications until the next cash count is performed. This procedure is used when the petty cash fund is greater than $200.
The total amount of the petty cash fund should always equal the cash on hand plus any unreimbursed amounts. If the Department Head or Financial Services feel it is warranted based on circumstances surrounding a shortage, Internal Auditing may be contacted for investigation. Internal Auditing will notify Risk Management. If Internal Auditing determines the custodian was negligent in their duty to safeguard the petty cash, the custodian may be held liable for replacement of uninsured losses. Shortages exceeding $200.00 should always be reported to Internal Auditing.
Unannounced cash counts should be performed quarterly by someone other than the custodian. The individual should be selected by the Department Head, preferably not the same person each quarter. The cash count should be recorded on the Cash Count Form. The completed forms should be retained in a Departmental file. Unannounced cash counts may be performed by Internal Audit. Account balance verification will be performed at year-end by the Controller's Office.
Department petty cash "change funds" should be counted daily.
Petty cash funds should always be kept separate from other cash receipts. To discourage thefts, avoid dispensing money from the petty cash box in the presence of the person requesting money.
Where possible, keep locked box in limited access locked drawer, safe or file cabinet. Funds must be secured each time the custodian leaves the office. The keys to the box and file cabinet, safe, or drawer should be kept in the possession of the custodian, not left in desks or in the office overnight. The custodian and department head may be held jointly liable for uninsured losses that occur as a result of negligence.
In the event of a theft of petty cash funds, the custodian should immediately notify the Georgia Tech Police Department and the Internal Audit Department. Police Department incident reports will be distributed within three days of the theft to the Department Head, Risk Management, the Controller's Office, and Internal Auditing. The Internal Audit Department will communicate to the Controller's Office whether loss is insured or loss is a result of negligence.
Upon departure/termination of custodian or department head, keys to secured petty cash area must be returned to the appropriate departmental authority. A change of custodian requires submission of a new Petty Cash Fund Request/Maintenance Form. A final count and submission for replenishment should occur prior to the new custodian assuming responsibility. The new custodian receipts the cash at the Bursar's Office and signs Section Five of the new Petty Cash Fund Request/Maintenance Form.
Criminal Background Checks and Credit Checks
New Petty Cash Custodians are required to have criminal background check and credit check prior to becoming the custodian of any cash funds.
Existing Petty Cash Custodians as of October 1, 2010 are required to have a criminal check if they do not have one on file. Once the results of the criminal and consumer credit checks have been emailed to the department the email should be forwarded to accounting.ask@buisness.gatech.edu. If the employee does not pass the criminal and/or consumer credit check the department will need to submit criminal and consumer credit checks to the Office of Human Resources for the replacement custodian. The Petty Cash Fund Request/Maintenance form will need to be submitted to the Controller's Office for the new custodian. The department is responsible for the cost of the criminal and consumer credit check.
If an applicant is a current employee and the background investigation report reveals adverse information which constitutes grounds for termination, OHR will initiate the appropriate termination procedure. OHR’s Employee Relations unit will draft a formal letter to the employee notifying him/her of the circumstances. The formal letter will include the rationale for the actions taken and information regarding the employee's option to contest the accuracy of his/her background investigation report. The employee will be given an appropriate and reasonable amount of time to contest the accuracy of his/her background investigation report before formal termination is initiated.
Please also see OHR Policy 8.1 Pre-Employment Screening for further information on the background check process.
Reimbursement Requests
Please see Petty Cash Reimbursement Procedures, Departmental Petty Cash Fund Procedures, or Departmental Petty Cash Fund Checking Account Procedures for reimbursement requirements.
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Controller’s Office | Updates to verbiage |
To provide guidance to schools, colleges, departments or units of the Institute as it relates to reimbursement of items purchased that meet the criteria for being reimbursed via Petty Cash funds from the Bursar’s Office.
Petty cash expenditures made by an individual in a department that has its own petty cash fund should be reimbursed via the petty cash fund in the department.
Petty cash expenditures made an individual in a department that does not have its own petty cash fund are reimbursed by the Bursar's Office. Please refer to "Petty Cash Fund General Guidelines" for specific information regarding allowable petty cash transactions
This policy applies to all schools, colleges, departments, and units of the Institute.
Reimbursement Procedures
Departments should submit a completed Petty Cash Replenishment/Reimbursement Request Form along with supporting documentation to the Bursar's Office within ten (10) working days following a purchase. If the reimbursement is needed during year end closeout, the reimbursement must be received by the published cutoff date for the Bursar’s Office. Failure to turn in receipts promptly may jeopardize reimbursement if the funding source has lapsed.
Reimbursement Documentation
The Petty Cash Replenishment/Reimbursement Request Form must include the following information and attachments:
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Controller’s Office | Updates to verbiage |
To provide guidance to schools, colleges, departments or units of the Institute as it relates to Departmental Petty Cash funds.
This procedure describes the methods required to establish and maintain a petty cash fund along with procedures for the operation and replenishment of the fund. Please refer to "Petty Cash Fund General Guidelines" for specific information regarding allowable petty cash transactions.
This policy applies to all schools, colleges, departments, and units of the Institute.
Fund Establishment
To establish a departmental petty cash fund, Section one and three of the Petty Cash Fund Request/Maintenance Form is to be completed and submitted to the Controller's Office for approval and establishment of the account.
If approved, the Controller's Office will establish the petty cash fund account number and forward the information to the Bursar's Office for processing. For funds established for $500 or less, the Bursar's Office will provide cash to the custodian for the amount of the fund. Upon acceptance of the funds, the custodian will receive the cash and sign Section Five of the Petty Cash Fund Request/Maintenance Form. For funds established for more than $500, the Bursar will forward the information to Accounts Payable for check preparation and Accounts Payable will notify the department when the check is ready. Upon acceptance of the funds, the custodian will receive the check and sign Section Five of the Petty Cash Fund Request/Maintenance Form at the Bursar's Office.
If changes to the established fund amount become necessary, a new Petty Cash Fund Request/Maintenance Form must be submitted to the Controller's Office noting the existence of the current petty cash fund and the request for an increase or decrease of funds and/or change of custodian. (Changes are noted in Section Two of the Form.)
Reimbursement Requirements
Departments should submit original receipts for petty cash purchases (see "Petty Cash Fund General Guidelines" for specific information on allowable purchases) to the fund custodian. To improve financial reporting, we recommend that the reimbursement request submitted within ten (10) working days following a purchase, or, if at year end, by the published cutoff date. Failure to turn in receipts promptly may jeopardize reimbursements if the funding source has lapsed. Prior to reimbursement, the fund custodian should ensure that the following information and attachments are included with the reimbursement request:
Upon receipt of completed information, the petty cash expenditures will be reimbursed by the fund custodian.
Replenishment Requirements
Fund replenishment requests should be submitted to the Bursar's Office on the Petty Cash Replenishment/Reimbursement Request Form. The form must be completed in full and signed by approved Departmental representative. Requests should include a summary of all charges by account number. The summary should include each unique accounting distribution only once with the total of all charges for the account. Replenishment requests along with two copies of the request (form only) should be attached to supporting original receipts and submitted to the Bursar's Office. The requests for Fund replenishment should be submitted in a timely manner and allow ample time for processing. Cashiers may not be able to provide immediate replenishment upon presentation by Department at certain times of the school year (registration). Specific monetary denominations can be arranged for larger reimbursements by contacting the Cashier's Office via phone at (404) 894-5542.
Monthly Maintenance Requirements
Each month a cash count of the petty cash fund should be performed by a supervisor or department manager (someone with reporting authority over the custodian). This cash count should always be done in the presences of the custodian, and when completed should be documented and signed by the performer as well as the custodian. Any over/shorts should be reported to the Controller's Office for proper recording and the Bursar's Office to correct the cash position. This document should be maintained with the petty cash fund as it must be available during any surprise cash counts performed by Internal Auditing.
Closing the Fund - Voluntary
In the event that a fund is to be closed voluntarily, the following steps are to be followed by the custodian:
The Bursar's Office will review the final cash count and provide information to the Controller's Office, who will close the general ledger account for that fund. Termination of the funds will be noted on the original establishment form and a copy will be forwarded to the custodian by mail.
Closing the Fund - Involuntary
Repeated violations of petty cash procedures can result in termination of the fund. The fund will be closed by the Controller's Office and replenishments will no longer be processed. The petty cash custodian is ultimately responsible for the disposition of funds.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Controller’s Office | Updates to verbiage |
This policy was created to provide guidance to schools, colleges, departments or units of the Institute as it relates to Departmental Petty Cash Fund Checking Accounts.
This policy describes the methods required to establish or maintain a petty cash fund in a checking account. Please refer to "Petty Cash Fund General Guidelines" for specific information regarding allowable petty cash transactions.
This policy applies to all schools, colleges, departments, and units of the Institute.
Fund Establishment
To establish a petty cash checking account, a completed Petty Cash Request/Maintenance Form should be submitted to the Controller's Office for approval. The Controller's Office will notify the department head once the fund is approved. The department head will notify the custodian and ask that he/she request the following information from the local bank:
This information should be forwarded to the Controller’s Office so that the initial checking account can be set up. The custodian will then be forwarded the following information from the Controller's Office:
Departmental Responsibilities
The department head or designee will be responsible for handling the following information related to the checking account:
If changes to the established fund amount become necessary, a new Petty Cash Request/Maintenance Form must be submitted to the Controller's Office noting the existence of the current petty cash fund and the request for an increase or decrease of funds and/or change of custodian.
Account Controls (new section)
Three basic controls must be incorporated into each petty cash account that establishes a banking account.
Fund Maintenance
Each petty cash checking account custodian will be responsible for reconciling his/her petty cash bank account. The custodian should request two copies of the monthly petty cash checking account statements. One statement should be sent directly to the custodian along with the canceled checks while the other should be sent directly to the Controller's Office without attachments.
The custodian will be required to forward completed reconciliations and other supporting documentation to the Controller's Office by the third week following the statement date. The Controller's Office will then review the reconciliation for accuracy and work with the department to correct any errors. Delinquent reconciliations will result in a hold on account replenishment requests until the reconciliation is received.
Reimbursement Requirements
Employees should submit original receipts for petty cash purchases (see Petty Cash Fund General Guidelines 1.5.1 for specific information on allowable purchases) to the departmental fund custodian. To improve financial reporting, the reimbursement request should be made within ten (10) working days following a purchase, or, if at year end, by the published cutoff date. Failure to turn in receipts promptly may jeopardize reimbursements if the funding source has lapsed.
Prior to reimbursement, the fund custodian should ensure that the following information and attachments are included with the reimbursement request:
Upon receipt of completed information, the petty cash expenditures will be reimbursed by the fund custodian.
Replenishment Requirements
Fund replenishment requests should be submitted to the Accounts Payable Department on the Petty Cash Replenishment/Reimbursement Request Form. Requests for fund replenishment should be submitted in a timely manner and should allow ample time for processing.
Closing the Fund - Voluntary
Fund replenishment requests should be submitted to the Accounts Payable Department on the Petty Cash Replenishment/Reimbursement Request Form . Requests for fund replenishment should be submitted in a timely manner and should allow ample time for processing.
Closing the Fund - Involuntary
Repeated violations of petty cash procedures can result in termination of fund. The checking account and the general ledger account will be closed by the Controller's Office and replenishments will no longer be processed by the Accounts Payable Department. The fund custodian is ultimately responsible for the disposition of funds.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Controller’s Office | Updates to verbiage. New section added by Treasury Services. |
The Bursar's Office is responsible for billing and collecting for goods and services to external parties for units of the Institute such as IPST and Facilities.
When requesting a billing, the college, department, or organizational unit must provide the following information on the Non-Student Invoice Request Form at this link: http://www.bursar.gatech.edu/sites/default/files/pdf/Non-Student_Invoice_Request.pdf
Supporting Documentation
A purchase order, authorization letter from the company, bill of lading, and any other documentation that supports the validity of the bill meets this requirement.
Please send the Non-Student Invoice Request Form and the supporting documentation to NonStudentInvoicing@gatech.edu. It can also be mailed to the following adresss:
Bursar's Office
Attn: Non-Student Invoicing
Suite 111 Lyman Hall
Mail Code: 0255
Accumulated Invoices Less than $25.00
Due to the cost of processing billings, charges should be accumulated until they reach a minimum of $25.00 per customer before being submitted for billing: However, these bills should not be accumulated for more than one calendar quarter without submission. Units having special requirements should contact the Bursar's Office at NonStudentInvoicing@gatech.edu for advisement.
Billings Internal to the Institute
Billings between or within departments of the Institute should not be forwarded to the Bursar's Office. Internal billings should be handled with journal entries.
Billing Disputes
If an invoice is disputed by the customer, the Bursar's Office will contact the originating department for verification/direction. Copies of all pertinent information and communications with the customer as needed will be forwarded to the office that originated the billing. The originating office will be requested to provide any information relevant to the dispute within a ten day period. At that point, the originating office should either authorize to reverse the billing entry, confirm that the invoice is correct, or provide details regarding modification of the original bill. The Bursar's Office will contact the customer with the information received from the originating office.
If the Bursar's Office does not receive a response from the originating office within 30 days, the revenue credited to the originating office will be reversed and all documentation will be returned to the issuing department.
Note: Disputed invoices which cannot be resolved through the process defined above will be handled as necessary by the Bursar with the appropriate parties. When necessary, collections and/or legal action may be taken to collect past due invoices.
Units sending information to the Bursar's Office for invoices to be created are required to implement procedures internally to avoid accepting payment within the unit. Any such payments for invoices created by the Bursar’s Office received by the unit should be forwarded to the Bursar's Office for posting. They should not be deposited through a Daily Cash Transmittal Form.
| Revision Date | Author | Description |
|---|---|---|
| March 2015 | Bursars Office | Update policy contact information |
| March 2018 | Bursars Office | Update contact information, Bursar's Office e-mail addresses, and forms |
This policy addresses accounting requirements for departmental sales and services (DSS) charges and enables the Budget Office and Campus Departments to easily identify carry forward eligible funds. This policy also helps to ensure Institute and Board of Regents (BOR) policy requirements for Service Centers and Departmental Sales and Services funds, respectively, are met.
Overview
Georgia Tech has accounting requirements related to departmental sales and services (DSS) funds and the ability to carry eligible funds forward in the next fiscal year. DSS accounting requires DSS project numbers to correctly point to a non-lapsing fund code which then allows campus units to carry forward eligible funds. Certain and requirements must be met by the department to carry forward funds. DSS accounting also requires specific revenue account codes to be used for Internal (includes GT Affiliates), External to GT and GT Affiliates and External Sponsored Projects. The ability to carry forward funds enables revenue centers to better manage their operations and plan ahead for future commitments. Department financial administrators/managers are solely responsible for managing carry forward funds for their unit.
Exclusions
Revenue received for continuing education courses offered by Georgia Tech Professional Education (GTPE) is excluded from this process.
Project ID’s
To ensure compliance with Board of Regents (BOR) and state audit requirements, DSS project ID’s are required to be established in the 14xxx fund code range for Departmental Sales and Services.
Fund Codes
Each Resident Instruction department with DSS activity will be assigned a fund code in the 142xx DSS fund code range. Georgia Tech Research Institute (GTRI) DSS activity will be assigned to fund code 14321 and Enterprise Innovation Institute (EI2) DSS activity will be assigned to fund code 14325. At year-end close, DSS projects meeting the carry forward requirements will be flagged and will not be included in the departmental year-end balance calculation. The remaining DSS projects will be used to determine the deficit or surplus balance for each DSS fund. Deficit balances in DSS funds for each entity at year end is required to be covered by the entity using General Operations funding.
Accounts
DSS accounts must clearly distinguish external DSS revenue from internal DSS revenue. This is accomplished by the use of specific accounts for DSS revenue transactions. DSS revenue is broken down into three categories;
Internal DSS revenue is defined as income from sources internal to the Institute. DSS occurs when one campus department (service department) provides goods or services to another campus department (receiving department) and subsequently charges the receiving department for the goods or services. The service department books revenue to recognize income for the goods or services provided and the receiving department is charged an expense to recognize the cost of the goods or services received.
Transactions between Georgia Tech and its affiliated organizations are also considered Internal DSS. By definition, affiliated organizations are legally separate corporations that partner with Georgia Tech to fulfill its mission. Georgia Tech’s affiliated organizations are listed at http://larm.gatech.edu/affiliated-organizations.
All internal DSS revenue must be charged to revenue account 471900.
DSS revenue that is External to GT and GT Affiliates is defined as income from sources external to the Institute. All DSS revenue External to GT and GT Affiliates must be charged to account 452900. Examples of DSS revenue that falls into this category include:
DSS revenue from External Sponsored Projects is defined as income from sponsored projects where the funding source is external to the Institute and its affiliated organizations. All DSS revenue from External Sponsored Projects must be charged to account 452800. Examples of DSS revenue that falls into this category include
Both internal and external revenue may be posted to a DSS project number, however the account must correctly reflect the type of revenue: Internal (account 471900), External to GT and GT Affiliates (account 452900) and External Sponsored Projects (452800).
Split Funded Transactions
When DSS transactions are charged to multiple funding sources, the revenue recognized by the service department should be split between DSS revenue accounts based on the percentage each funding source pays for the service. For example, if 25% of the purchase is funded by a Georgia Tech Foundation (GTF) project (DSS - Internal) and 75% of the purchase is funded by a National Aeronautics and Space Administration (NASA) Sponsored project (DSS - External Sponsored Project), 25% of the revenue recognized by the service center should be charged to account 471900 (Internal DSS) and 75% of the revenue recognized by the service center should be charged to account 452800 (External Sponsored Project).
Cost Share Funds
DSS transactions charged to Cost Share projects should be treated as Internal DSS and charged to account 471900.
Start Up Funds
DSS transactions charged to Start Up projects should be treated as Internal DSS and charged to account 471900.
Georgia Tech Professional Education (GTPE) Revenue Transfers
DSS revenue transferred to departments by GTPE should be treated as revenue External to GT and GT Affiliates and charged to account 452900. Since the original source of the revenue is “External to Georgia Tech and Georgia Tech Affiliates”, the revenue is considered external.
Georgia Tech Research Institute (GTRI) Funds
DSS transactions charged to non-sponsored GTRI funds should be treated as Internal DSS and charged to account 471900.
Enterprise Innovation Institute (EI2) Funds
DSS transactions charged to non-sponsored EI2 funds should be treated as Internal DSS and charged to account 471900.
Auxiliary Services Funds
DSS transactions charged to Auxiliary Services Funds should be treated as Internal DSS and charged to account 471900.
Student Activities Funds
DSS transactions charged to Student Activities funds should be treated as Internal DSS and charged to account 471900.
DSS Surplus Balances
Departmental Sales and Services are exempt from the state law concerning lapsing funds. Therefore, DSS surplus balances may be carried forward if certain requirements are met. The requirements per section 2.2.1 of the University System of Georgia’s Business Procedures Manual (BPM) are as follows:
Source: http://www.usg.edu/business_procedures_manual/
Salaries and the accompanying fringe benefits associated with DSS activity should be charged to each DSS fund in proportion to the effort of employees providing the goods or services.
Service Centers
All salary and other expenses included in approved Service Center charge rates must be recorded to the appropriate DSS fund and project number. Due to the administrative requirements of managing centers of this type, there must be a clear business-case for establishing and renewing internal and external charge rates. The requisite business-case includes the following basic parameters:
Policies and procedures related to Georgia Tech “Resident Instruction” Service Centers are available in the Policy Library - Administrative Policy 3.14:
http://www.policylibrary.gatech.edu/cost-service-centers
As DSS funds, surplus balances for approved Service Centers may be carried forward in accordance with the requirements of BPM Section 2.2.1 (noted above). Surplus balances for Centers with less than 50% external revenue will be managed under existing procedures for requesting carry forward of year-end fund balances. Procedures and related forms are available on the Institute Budget Planning & Administration web-site: http://forms.budgets.gatech.edu/view.php?id=13450.
In order to qualify for carry forward approval, surplus balances for approved Service Centers with less than 50% external revenue must meet the following requirements:
The Office of Grants & Contracts Accounting will provide assistance as needed in confirming that the above requirements for service centers have been met.
Contact Information
For assistance with this policy, please see the contact information below:
This policy applies to all Georgia Tech staff, faculty, and researchers who generate revenue from departmental sales and services.
Departmental Sales and Services (DSS)
Transactions generated from the sales of goods and services by one campus department to another campus departments or to entities outside of Georgia Tech.
Sales and Services Procedures
Campus Departments
Campus departments will utilize the new chart of accounts structure (project ID and Account) for DSS funds to more easily identify DSS revenue and carry forward funds.
Campus Department Requests
Campus departments will make an online request to the Budget Office to carry forward eligible DSS funds in late June each year.
Campus Service Center Requests
Campus Service Centers will make an online request to the Budget Office to carry forward eligible DSS funds in late June each year. Service Center requests will be reviewed by Grants and Contracts Accounting prior to campus department notification.
Budget Office
The Budget Office will determine the carry forward amounts after year end close and communicate that information to campus departments.
Campus Department
The campus department is responsible for following the guidelines in the policy as well as initiating requests to set up new DSS projects ID’s and requests to carry forward DSS funds at year end.
Budget Office
The Budget Office is responsible for setting up DSS project ID’s, processing carry forward fund requests at year end and working with campus units to ensure eligibly to carry forward DSS funds is met.
Controller’s Office
The Controller’s Office is responsible for working with campus units as it relates to DSS accounting and ensuring campus units understand the policy.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/media/en/gui/7508/index.html
| Revision Date | Author | Description |
|---|---|---|
| 12-3-2013 | Carol Gibson | Minor revisions to verbiage |
| 3-26-2014 | Carol Gibson | Updated document exclude GTPE revenue from this process. Minor revisions to verbiage. Updated Procedures section. |
This procedure provides general guidelines for the operation of Studies Abroad Programs.
Approval
An instructor (program director) who is interested in sponsoring a Studies Abroad Program must first prepare a formal proposal. The proposal must reflect all information related to the program including:
In addition to the written proposal, a "Request for Approval for Studies Abroad Programs" form must be completed and submitted to the following persons for approval in the order listed below:
Registration of Students and Payments of Fees
The Program Director is responsible for ensuring that the Studies Abroad courses are properly included on the On-line Student Computer Assisted Registration (OSCAR) system. Also, the Director must properly advise students of any and all special arrangements that must be made in order to participate in the program. The student has the ultimate responsibility for registering for the course that he/she wants to take.
The Office of International Education (OIE) is responsible for submitting all information relating to the registration of students to the Registrar's Office. Georgia Tech credit will be awarded to students who properly register for Studies Abroad courses listed on the OSCAR. If students choose to participate on a non-GT study abroad program, non-Georgia Tech course credits are subject to the college credit transfer policies outlined in the Georgia Tech Catalog.
Fees for the Studies Abroad Program should be paid to the Bursar's Office. The Program Director is responsible for ensuring that the proper projects have been established by the Controller's Office to accommodate deposits made for the respective program. The sponsoring faculty member and/or department should have previously requested the establishment of projects by following instructions in "Establishing An Agency Fund Account". Study Abroad programs that require a Tuition Revenue project should contact the Budget Office to set up the appropriate project.
Cross-registered students from other colleges may not participate in Studies Abroad Programs sponsored by Georgia Tech. Those particular students must apply and be accepted by the Admissions Office as transient students in order to participate in such programs. Acceptance requirements for the cross-registered students should be coordinated between the Admissions Office and the OIE. These students must also pay tuition and fees for the program directly to the Bursar's Office.
Accounting for Revenues and Expenses
To comply with instructions issued by the Assistant Vice Chancellor for Fiscal Affairs at the Board of Regents on June 13, 1994, all Studies Abroad Programs will be accounted for as follows:
An Agency Fund project will be established for each Studies Abroad Program and will be used to collect and disburse funds for the program. These projects will be established by the Controller's Office at the request of the program/department sponsor. A signed copy of the "Request for Approval for Studies Abroad Programs” form should be included as an attachment to the request to establish the project. By agreement between the Board of Regents and the State Audit Department, all funds for a Studies Abroad Program must be expended or transferred within eighteen months from the beginning of the program. Applicable tuition and fees, and any other instructional fees, will be transferred by the Controller's Office to Resident Instruction as initiated or requested by the department. All instructional salaries and benefit costs must be paid from the sponsoring units within Resident Instruction, based upon the approved budget. All other costs can be handled in Agency Funds. Examples of costs processed in Agency Funds include the following: travel, supplies, printing, materials, tours lodging, insurance, rental of meeting places, and exchange rate variance cost. Promotional materials must include a statement indicating the type of expenses that will be paid from program fees. Rules and regulations related to the documentation of travel and reimbursable expenditures shall be followed according to procedures established in "Travel". Reasonable cash advances may be made by the Institute, but they must be supported by appropriate documentation at the conclusion of the program. The fee for each Studies Abroad Program will vary depending upon the feature of a particular program, but all must include matriculation fees and applicable tuition (non-resident) fees. The fee for non-resident students has been established at $250 for all Studies Abroad Programs (except for GT Lorraine's undergraduate program, which has a $3,500 non-resident fee) by the Board of Regents while the matriculation fees will vary depending on the number of credit hours taken. After all expenses for a Studies Abroad Program have been paid, but no later than eighteen months from the beginning of a program, any excess funds remaining in the Agency Fund Project must be transferred to an Institute Project. Any deficit incurred as result of a Studies Abroad Program must be funded by the sponsoring school/department.
This policy applies to all schools, colleges, departments, and units of the Institute.
Definitions:
Terms specific to this Policy. Where possible, use terms from the Master Glossary of terms that apply to this policy.
| Revision Date | Author | Description |
|---|---|---|
| June 2015 | Controller's Office | Language clarification throughout policy |
To provide guidance to schools, colleges, departments and units of the Institute as it relates to the accounting for grants awarded to the Georgia Tech Foundation (GTF) and administered by the Institute.
This policy provides provide guidance to schools, colleges, departments and units of the Institute as it relates to the accounting for grants awarded to the Georgia Tech Foundation (GTF) and administered by the Institute.
Management of GTF and Financial Aid Projects
GTF and Financial Aid projects are managed by the Accounting Services Department. All other sponsored awards (including sub-projects) are managed by the Office of Grants and Contracts Accounting. GTF awards are handled in the same manner as other sponsored projects) as described in the Policies and Procedures referenced below.
Grants & Contracts: General Information
Grants & Contracts: Plan-Confirmation
Grants & Contracts: Undesignated Sponsored Accounts
Grants & Contracts: Unallowable Expenses
Grants & Contracts: Unbillable Sponsored Projects
Grants & Contracts: Cost Transfer Requests
Grants & Contracts: Write-off Requests
Grants & Contracts: Project Set Up in Grants Master
Grants & Contracts: Project Close-out in Grants Master
Grants & Contracts: Establishing a Sub-Project Account
Grants & Contracts: Sponsored Project Budget Revisions
Allowable Expenditures
All allowable expenditures relating to the grant will be processed through the Institute. Any expenditures determined to be unallowable by the Institute, but allowable to the grant, may be paid directly by the Foundation. Any such charges must be communicated to the Controller’s Office where a memo entry will be made to the project accounting records in order to properly accumulate and report costs incurred.
This policy applies to all schools, colleges, departments, and units of the Institute.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
| Revision Date | Author | Description |
|---|---|---|
| 08-2013 | Policy Library | Fixed Unbillable Sponsored Projects link |
| 10-03-2014 | Controller's Office | Updates to verbiage. New gift transmittal form |
To provide guidance to schools, colleges, departments and units of the Institute as it relates to establish project numbers for grants awarded to the Georgia Tech Foundation (GTF) and administered by the Institute.
This policy provides provide guidance to schools, colleges, departments and units of the Institute as it relates establishing new sponsored projects in the accounting records of the Georgia Institute of Technology (GIT) where the Georgia Tech Foundation (GTF) is the sponsoring entity. Effective February 1, 1999, all business transactions financed by GTF funds are to be processed through GIT in accordance with generally accepted business practices and processes; therefore, a GIT sponsored project is to be established for GTF awards. For additional information, see the Business and Finance – Foundation Funds section in the Policy Library for a complete description of the policies and procedures for Solicitation, Acceptance and Expenditure of Georgia Tech Foundation Funds.
This policy applies to all schools, colleges, departments, and units of the Institute.
Project Establishment
The Controller’s Office is charged with the establishment of sponsored projects in accounting records of the Georgia Institute of Technology upon receipt of properly completed GTF “Gift Transmittal Form” from the Foundation (PDF Version). Please use updated form.
Upon receipt of a gift or budgetary allocation, the Georgia Tech foundation will establish a GTF account number for the funds. GTF will transmit the account number, dollar amount, restricted use of the funds, and any effective or expiration dates for the funds to the Controller’s Office, using the Gift Transmittal Form. All funds reported on this form will be budgeted in the “Other Memo” category. If specific budget details are required, the budget information should be entered on the second page of the Form using the spaces provided. The Gift Transmittal Form must be approved by authorized personnel at the Georgia Tech Foundation.
When gifts and/or awards are received initially by the operating units, a Gift Transmittal Form should be prepared by the unit and forwarded directly to the Foundation with all supporting documentation. Requests received by the Controller’s Office without a properly completed Gift Transmittal Form will be forwarded to the Georgia Tech Foundation for action.
Unit Notification
The unit responsible for management of the account will be notified of the GTF account number and the corresponding GIT project number This notification will also identify the available funding (budget), and any restrictions associated with the use of funds that are reported by the Foundation.
Sub-Projects
Sub-Projects that are required by the managing units should be established using the published procedure governing the establishment of sponsored Sub-Projects (Grants & Contracts: Establishing a Sub-Project Account).
GTF and Financial Aid sponsored sub-projects are managed by the Accounting Services Department. All other sponsored awards (including sub-projects) are managed by the Office of Grants and Contracts Accounting.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Controller’s Office | Updates to verbiage. Title update |
This procedure is intended to explain the method of establishing a new scholarship or fellowship project number and account maintenance in the accounting records of the Georgia Institute of Technology.
The Accounting Services Department is charged with the establishment of scholarship and fellowship project numbers in the accounting system to allow expenditures by the Georgia Institute of Technology upon receipt of properly authorized/approved budgetary and invoicing documentation. The Accounting Services Department is also responsible for budget entry and review of expenditures incurred and payments received from donors/sponsors for scholarship and fellowship accounts. Each authorization should be initiated by an award notification from the donor/sponsor and approved by authorized personnel in the Office of Student Financial Planning and Services or other units that may control distribution of awards to the Institute. Additionally some requests are received resulting from proposals submitted through the Office of Sponsored Programs. Requests received by the Accounting Services Department without sufficient will be returned to the appropriate unit for further action.
Forms
There is no specific form used to request new scholarship or fellowship projects. The request should include at a minimum the following information:
There is no specific used to request payments from scholarship or fellowship project. The request should include at a minimum the following information:
To provide guidance to Georgia Tech colleges, schools, departments and units as it relates to processing scholarship, fellowship other student payments.
The Internal Revenue Service (IRS) Publication 520 covers the rules for the taxation of student payments. The publication states that the part of any grant, scholarship, or fellowship that represents payments for teaching, research or any other service is taxable to the student. Colleges and universities are obligated to withhold taxes on any award that represents compensation for services. Nonresident alien students may have taxes withheld on awards that do not represent compensation for services. Their tax obligations are governed by their visa status, United States (US) tax laws, and/or the tax treaty between the US and their country of residence.
The Institute is responsible for withholding payroll taxes on the portion of a fellowship or traineeship award made to a student (U. S. Citizen, Resident Alien, or Nonresident Alien who is not claiming an exemption under the provisions of a tax treaty), which represents payment for services required to be performed in order to receive the award. Failure to withhold the taxes when required may create unexpected tax liabilities for Georgia Tech students and cause the Institute to incur serious financial penalties. The Institute will provide the student with a Form W-2 at year-end, which will report to him/her income earned and taxes withheld. The student is responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS. The department is responsible for determining if a student's scholarship, fellowship or other award is requires services to be rendered before receipt of payment. The student, however, is responsible for providing sufficient information to the department to enable a determination of status. Ultimately, it is the student’s responsibility to determine his/her tax liability and file a tax return with the Internal Revenue Service each year.
For more information related to the responsibility of the student in determining his/her own tax liability, please visit the Office of Scholarships and Financial Aid (OSFA) Tax Information website.
This policy is not applicable to payments made to graduate student assistants (GSA's), graduate research assistants (GRA's), and graduate teaching assistants (GTA's).
This policy applies to all schools, colleges, departments, and units of the Institute.
Scholarship – Trainee - Fellowship Payment Grid
The Scholarship – Trainee – Fellowship payment grid provides detailed information on processing student payments. That information includes the following:
Institute Policy for Scholarship/Fellowship Payments and the Payment of Prizes/Awards to Students
For additional administrative information about student payments and the definitions of the different types of student payments, please see Institute Policy for Scholarship/Fellowship Payments and the Payment of Prizes/Awards to Students.
Bursar’s Office Website
Additional information related to student payments may also be found on the Bursar’s Office website at http://www.bursar.gatech.edu/content/forms.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Controller’s Office | Periodic review and verbiage update. Policy Number change. Assignment change to Bursar’s Office. |
This policy was created to provide general information regarding potential federal income tax liability to students receiving scholarships, fellowships or traineeships.
The taxability of scholarships/fellowships/traineeships is determined under provisions of the Internal Revenue Code. Any tax liability under this law is the responsibility of the student. Each scholarship, fellowship or traineeship recipient is responsible for determining how the tax law applies to his/her particular circumstances. The procedures provide general information about how federal income tax law applies to scholarships, fellowships and traineeships.
This policy applies to all colleges, schools, departments, and units of the Institute.
Scholarships, Fellowships, and Traineeships |
|
Scholarships, Fellowships, and Traineeships for US Citizen or Resident Alien with No Services Required |
A student (US Citizen or Resident Alien) who receives a scholarship, fellowship or traineeship award for which he/she is not required to perform services (past, present, or future) may exempt from income taxation the portion of the award that is used for qualified tuition and related expenses (tuition, fees, books, supplies, and other equipment required for courses). Any portion of the award used for other expenses, such as room and board or travel, is considered part of the student's gross income and must be reported on his/her individual tax return. Because the student has no employment relationship with the Georgia Institute of Technology (the Institute), the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the Internal Revenue Service (IRS) or the student. Please note that the Institute’s Bursar’s Office is required to report scholarships, fellowships and traineeships to the IRS and to the student on Form 1098-T, Tuition Statement. Form 1098-T is primarily intended to help a student or his/her parents claim an education credit, such as the American Opportunity Credit, based upon qualified tuition and related expenses that are not paid by scholarship, fellowship or traineeship. See the Bursar’s website listed in Section 7 below for more detailed information about education tax credits.
|
Scholarships, Fellowships, and Traineeships for a US Citizen or Resident Alien with Stipulations on Expenses |
A student who receives a scholarship, fellowship or traineeship award in which the terms of the award state that a certain amount cannot be used for tuition, fees, books, supplies or required equipment for his/her courses (i.e. a certain amount must be used for room, board or anything other than tuition, books supplies or equipment) is responsible for reporting that amount as gross income on his/her individual tax return. Again, because the student has no employment relationship with the Institute, the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the IRS or the student.
|
Scholarships, Fellowships, and Traineeships for Non-Resident Aliens |
The tax rules applicable to scholarship, fellowship and traineeship awards made to nonresident alien students differ from those applicable to students who are US citizens or resident aliens. The portion of the award that is used for qualified tuition and related expenses is exempt from US tax and is not reportable to the IRS. The remaining portion of the award is subject to tax and is considered part of the student's gross income and must be reported on form 1042-S and on his/her individual tax return. The Institute will withhold tax at the rate of 14% on this taxable portion unless the award is exempt under a tax treaty between the US and the student's home country. The student must supply the Institute with IRS Form 8233 in order to claim the benefit of a tax treaty. |
The student is responsible for determining if he/she is required to file an individual income tax return with the Internal Revenue Service . The portion of a scholarship/fellowship/traineeship award that is used to pay qualified tuition and related expenses is not subject to tax. For more information related to the responsibility of the student in determining his/her tax liability, please visit the Office of Scholarships and Financial Aid website listed in Section 7 below.
The Institute is responsible for issuing a Form 1098-T, Tuition Statement, to a U.S. citizen or resident alien student and to the IRS to report any scholarship, fellowship or traineeship received during the calendar year and to report qualified tuition and related expenses paid during the calendar year not to exceed what was charged for qualified tuition and related expenses during the calendar year. The Institute is not required to issue a Form 1098-T to a nonresident alien student unless the student requests it.
The Institute is responsible for issuing a Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, to a nonresident alien student to report any scholarship, fellowship and traineeship even if no withholding is required because of a tax treaty between the U.S. and the student’s home country. Scholarship, fellowship, and traineeship amounts that do not exceed the student’s qualified tuition and related expenses are not required to be reported.
The Institute is responsible for issuing a Form W-2, Wage and Tax Statement, to any U.S. citizen, resident alien, or nonresident alien student to the extent the student receives a scholarship, fellowship or traineeship in exchange for the performance of services. The Institute is also responsible for issuing a W-2 to any student who receives compensation (other than a scholarship, fellowship or traineeship) in exchange for services.
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
| Revision Date | Author | Description |
|---|---|---|
| 1-07-2021 | Controller's Office | Updates to verbiage. |
| 10-03-2014 | Controller’s Office | Updates to verbiage. Removed obsolete portions. Updated title. |
This policy was created to explain the method of authorizing payment of a prize or award and establishing a sponsored project in the accounting records of the Georgia Institute of Technology to charge expenditures related to prizes or awards.
The Office of Grants and Contracts and/or the Controller’s Office are charged with the establishment of sponsored projects in the Chart of Accounts and the accounting records of the Georgia Institute of Technology upon receipt of properly authorized/approved budgetary and invoicing documentation for prizes and awards. The Office of Scholarships and Financial Aid and the Bursar’s Office are charged with the review and approval of prize and award payments issued by the Georgia Institute of Technology. Requests for payment should include a valid Institute project number from which the payment should be made and must include adequate documentation describing the purpose of the payment (e.g. annual staff award, prize for participation in special program, etc.). Funding should come from sources that permit the prize and award payments, such as Georgia Tech Foundation and Georgia Tech Research Corporation, etc. State funds cannot be used to pay prizes and awards.
This policy applies to all colleges, schools, departments, and units of the Institute.
Prize and award recipients who have been employed in the current calendar year should be submitted on the Awards and Prizes Form that can be obtained from the payroll department. Payroll Prize forms should be forwarded to Accounting Services for approval. The following steps will be taken upon receipt of a request for issuance of an award or prize:
Student Award – No Services Required
A student (US Citizen or Resident Alien) who receives a scholarship, fellowship or traineeship award for which he/she is not required to perform services (past, present, or future) may exempt the portion of the award that is used for qualified tuition and related expenses (tuition, fees, books, supplies, and other equipment required for courses). Any portion of the award used for other expenses, such as room and board or travel, is considered part of the student's gross income and must be reported on his/her individual tax return. Because the student has no employment relationship with the Georgia Institute of Technology (the Institute), the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the Internal Revenue Service (IRS) or the student.
Student Award – Stipulations on Expenses
A student who receives a scholarship, fellowship or traineeship award in which the terms of the award state that a certain amount cannot be used for tuition, fees, books, supplies or required equipment for his/her courses (i.e. a certain amount must be used for room, board or anything other than tuition, books supplies or equipment) is responsible for reporting that amount as gross income on his/her individual tax return. Again, because the student has no employment relationship with the Institute, the Institute is not required to withhold taxes on the taxable portion of the award and has no tax reporting obligation to the IRS or the student.
Tax Rules
The tax rules applicable to scholarship, fellowship and traineeship awards made to nonresident alien students differ from those applicable to students who are US citizens or resident aliens. The total amount of a scholarship/fellowship/traineeship award made to a nonresident alien student that does not represent compensation for services is reportable by the Institute to both the IRS and the student on IRS Form 1042S. The portion of the award that is used for qualified tuition and related expenses are exempt from US tax. The remaining portion of the award is subject to tax and is considered part of the student's gross income and must be reported on his/her individual tax return. The Institute will withhold tax at the rate of 14% on this taxable portion unless the award is exempt under a tax treaty between the US and the student's home country. The student must supply the Institute with IRS Form 8233 in order to claim the benefit of a tax treaty.
Institute Responsibility
The Institute is responsible for withholding payroll taxes on the portion of a scholarship/fellowship/traineeship award made to a student (U. S. Citizen, Resident Alien, or Nonresident Alien who is not claiming an exemption under the provisions of a tax treaty) which represents payment for services required to be performed in order to receive the award. The Institute will provide the student with a Form W-2 at year end which will report to him/her income earned and taxes withheld. The student is responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS.
Student Responsibility
The portion of a scholarship/fellowship/traineeship award that constitutes qualified tuition and related expenses is not subject to tax. Ultimately, it is the student's responsibility to determine his/her tax liability and file a tax return with the Internal Revenue Service each year.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
Updates for responsible party changed from Accounting Services/Controller’s Office to Bursar’s Office. Title change.
| Revision Date | Author | Description |
|---|---|---|
| 10-03-2014 | Carol Gibson |
