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

Georgia Tech currently uses four types of account numbers:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

Payment or reimbursement for licenses, certification fees, specialized training, or other similar expenses are generally not allowable as the primary beneficiary is the employee rather than the Institute. 

The Institute may pay for certain professional licenses, certifications, or specialized training when required to perform the duties of a position related to health, safety, or legal compliance or required by an external third-party provided it is allowable per the funding source (see “Source of Funds”). 

The Institute may pay for expenses in certain cases where the license, certification, or specialized training is not required to perform the duties of the job as indicated above, but a documented, specific, and direct monetary benefit to the Institute exists. This is generally not common. 

The requirement for a license, certification, or specialized training to perform the duties of the job or the justification of the direct monetary benefit to the Institute must be documented on the “Justification for Payment or Reimbursement of Professional Licenses, Certifications or Specialized Training” form. Requests for payment to a vendor or reimbursement to an employee should be processed via the financial management system for Georgia Tech, Georgia Tech Foundation (GTF), Georgia Tech Research Corporation (GTRC) or Georgia Tech Applied Research Corporation (GTARC), as appropriate. The required form, which includes unit leadership approval, must accompany the payment or reimbursement request. Employees should seek management approval prior to incurring a personal expense for a professional license, certification, or specialized training that may not be approved for reimbursement. 

Specialized training should not involve course credit that is applied toward a degree program. For information on potential reimbursement for degree programs, diplomas, and certificates, please refer to the Institute’s Staff Tuition Reimbursement Assistance Program (STRAP) Policy or the USG’s Tuition Assistance Program (TAP) Policy. The University System of Georgia (USG) offers “Critical Skills Retention Incentive” compensation under the HRAP Policy on Incentive Compensation and Rewards. This allows the Institute to hire and retain employees with job-related industry-specific credentials if certain criteria are met. Employees are not eligible to receive compensation for critical skills under the USG program and to receive reimbursement or payment for the same professional license, certification, or specialized training under this policy.

Source of Funds 
Institute general operating funds (GenOps) including State Appropriations, Tuition, Indirect Cost Recovery, Auxiliary Services, and Department Sales and Services funds, may be used for payment or reimbursement of employee licenses, certifications and specialized training that are required to perform the duties of a position related to health, safety, or legal compliance or required by an external third party. Discretionary funds including GTF, GTRC or GTARC funds, must be used for payment or reimbursement of licenses, certifications or specialized training that are not required to perform the duties of the job as indicated above. A documented, specific, and direct monetary benefit to the Institute must exist and these expenses must be allowed by the funding source. Sponsored funds may be used for specific licensing, certification, or specialized training expenses that are relevant to the sponsored agreement, allowed by the sponsoring entity and approved in the sponsored award budget. 

Approval 
Payment or reimbursement for licenses, certifications or specialized training that meet the criteria above must be approved by a unit level manager such as a chair, dean, department head, director, or vice president via the justification form. 

Taxability 
Licenses, certifications, and specialized training paid for by the Institute, an affiliated organization (i.e., GTF, GTRC or GTARC), or sponsored funds are generally not taxable to the employee. See IRS publication 5137 (Fringe Benefit Guide) and consult a tax professional for additional details.

Payments or reimbursements are allowable for Institutional Memberships in professional organizations provided they are allowable per the funding source. See definition of Institutional Membership in the definitions section below. 

If an Institutional Membership is not available and the Individual Membership is required to perform the duties of a position related to health, safety, or legal compliance or is required by an external third party, the membership fees or dues can be paid for or reimbursed by the Institute if it is allowed by the funding source (see “Source of Funds”). 

The Institute may pay for expenses in certain cases where the membership is not required to perform the duties of the job as indicated above, but a documented, specific, and direct benefit to the Institute exists. These memberships should provide access to professional development activities or publications directly related to the employee’s position and they should support the Institute’s strategic objectives. 

The requirement for a membership to perform the duties of the job or the justification of the direct benefit to the Institute must be documented on the “Justification for Payment or Reimbursement of Professional Memberships in the Name of an Individual” form, which requires department leadership approval. Requests for payment to a vendor or reimbursement to an employee should be processed via the financial management system for Georgia Tech, Georgia Tech Foundation (GTF), Georgia Tech Research Corporation (GTRC) or Georgia Tech Applied Research Corporation (GTARC), as appropriate. The required form must accompany the payment or reimbursement request.

Employees should seek management approval prior to incurring a personal expense for membership that may not be approved for reimbursement.

Source of Funds
Institute general operating funds (GenOps) including State Appropriations, Tuition, Indirect Cost Recovery, Auxiliary Services, and Department Sales and Services funds, may be used for the payment or reimbursement of memberships fees or dues that are in the name of the Institute, or for individual memberships that are required to perform the duties of a position related to health, safety, or legal compliance or required by an external third party. 

Institute general operating funds (GenOps) including State Appropriations, Tuition, Indirect Cost Recovery, Auxiliary Services, and Department Sales and Services funds, may also be used for the payment or reimbursement of memberships fees or dues not required to perform the duties of the job, but a documented, specific, and direct benefit to the Institute exists. 

Discretionary funds including Georgia Tech Foundation (GTF), Georgia Tech Research Corporation (GTRC), or Georgia Tech Applied Research Corporation (GTARC) funds can be used for memberships meeting either criterion above. Sponsored funds may be used for specific professional membership expenses relevant to the sponsored program, allowed by the sponsoring entity and approved in the sponsored award budget. 

Approval 
Payment or reimbursement for membership fees or dues that meet the criteria above must be approved by a unit level manager such as a chair, dean, department head, director, or vice president via the justification form.

Taxability 
Membership fees or dues paid for by the Institute, an affiliated organization (i.e., GTF, GTRC, or GTARC), or a sponsor are generally not taxable to the employee. See IRS publication 5137 (Fringe Benefit Guide) and consult a tax professional for additional details.

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.

Guidelines & Policies
The Georgia Tech Office of Budget Planning and Administration (the “Budget Office”) is required to follow an established set of guidelines and policies set forth by the State of Georgia, the Board of Regents, and the Institute. These guidelines require an annual operating budget be prepared for each budgetary unit of the Institute.

• General Policy
  The Board of Regents (BOR) annually allocates funds to each institution at its April meeting or next regular meeting following the approval of the appropriations act or as soon after as practical every year. The BOR approves the budgets of the institutions and Office of the Board of Regents at its regular May meeting each year, or as soon thereafter as practical.
  The Board of Regents is the only medium through which all formal requests are made for appropriations from the General Assembly and the Governor of Georgia.
• Operating Budgets
  Each institution in the University System prepares an Operating Budget for educational and general activities of the Institution for the fiscal year within the limit of funds allocated, plus estimated internal revenue. In addition, a budget is prepared forAuxiliary operations that are supported by fees and other revenues.
• Sources of Revenue
  There are five basic sources of revenue for the Institute Resident Instruction operating budget:1) State Appropriations; 2) Internal Revenue; 3) Sponsored Operations; 4) Departmental Sales and Services; and 5) Georgia Tech Research Corporation (GTRC) and the Georgia Tech Foundation (GTF).
  1. State Appropriation
     Annual allocation of funds from the Board of Regents' legislative appropriation, funded by the State of Georgia.
  2. Internal Revenue
     Derived primarily from tuition and fee income and recoveries of indirect costs from research conducted atGeorgia Tech. (Note: Direct cost is anything that is directly related to a sponsored project, such as salaries and work supplies. Indirectcost recovery refers to the funds used to pay for administrative and support costs of the Institute, such as administration, facilities, and the Library.)
     • Tuition and Student Fees
     • Gifts and Grants
     • Indirect Cost Recoveries
     • Sales and Services of Educational Departments
     • Other Sources
  3. Sponsored Operations
     Revenues from sponsor reimbursement of direct costs of sponsored research, instruction and other sponsored institutional activities.
  4. Departmental Sales and Services
     Revenues collected on behalf of a specific program to be used solely for that program, such as students are charged a computer fee to be used to maintain the computer facilities they use and colleges charge fees for non-credit courses offered to businesses and the community.
  5. GTRC and GTF
     Limited resources are available from the Georgia Tech Research Corporation and from the unrestricted (not designated for specific purposes) endowment of the Georgia Tech Foundation.
• Distinctions in Sources of Revenue
  Sponsored operations and departmental sales and services revenues are collected to support a specific project or program and therefore are limited in their use to that project or program alone. GTF funds are generally used to support students, faculty and staff in non-research activities. GTRC funds are generally allocated to students, faculty and staff for research purposes. State appropriations and internal revenue, on the other hand, can be used for any part of the Resident Instruction program, including state-funded research activities.

   

  Separate processes are used to allocate the funds from the different sources. Resident Instruction funding is usually placed in a unit's budget and forms the base budget for the next year. Additional money added to the base is called "new workload" funds. Generally, the base plus new workload forms the base for the following fiscal year. Funds from the Foundation and the Georgia Tech Research Corporation, on the other hand, are more likely to be treated as one-time grants.

The budget for each department or project should be amended to reflect the current estimate of expenditures and income (if applicable) for the fiscal year. The following list shows some, but not all types of transactions that would require a budget amendment:

1. Establish a budget amount or change the amount budgeted for non-personal services expenditures, such as travel, operating supplies and expense, and equipment.
2. Establish a budget amount or change the amount budgeted for anticipated income (revenue and departmental sales and services) for the fiscal year.
3. Establish or change the amount budgeted for a vacant position.
4. Make an approved increase or decrease to your original budget amount.

Capital projects, generally those costing more than $1 million, are funded from various sources. These sources, which include State of Georgia, Board of Regents, Georgia Tech Foundation, and campus funds, usually dictate who has administration of the project.

The State of Georgia funds the construction of buildings and the Georgia State Finance and Investment Commission (GSFIC) coordinates the project and disburses the funds.

The Board of Regents (BOR) receives an allocation from the state legislature referred to as Major Repair and Rehabilitation (MRR) funds. The MRR Fund is generally used for projects costing less than $1 million. The Board of Regents allocates these funds to the various units of the University System. These funds may be funneled through GSFIC if they are bond funds. The administration of the project may be handled by GSFIC or Georgia Tech depending on the type of project.

The Georgia Tech Foundation (GTF) funds various capital projects on campus. GTF retains administration of some of the projects and the facilities office/plant operations administers the remainder. These GTF projects require prior approval from the Board of Regents.

Some projects are funded by resources held by Georgia Tech, i.e. discretionary endowment funds and Auxiliary Enterprises reserve funds. These projects are controlled by Georgia Tech personnel after receiving Board of Regents approval.

Commitment Accounting Requirements - General
Georgia Tech departments are required to:

• Review and reconcile salary and fringe benefit data in a timely manner,
• Establish position funding for filled positons,
• Submit, review, and approve transactions in a timely manner.

If a department is awaiting funding from internal or external awards, salary and fringe benefits must be allocated to the undesignated driver worktag, or another discretionary funding source. Departments should not allocate salary and fringe benefits from delayed funds to the suspense worktag for their Department, or another grant.

Change Position Funding (CPF)
When salary and fringe benefit distribution for a future pay period needs to be updated, Departments must follow the requirements outlined below to execute a CPF transaction.

Express Direct Retro (EDR)

If the salary and fringe benefit distribution for a prior pay period within the current fiscal year needs to be corrected, Departments must follow the requirements outlined below to execute an EDR transaction.

Late EDR - Special Documentation Requirements and Limitations for Externally-funded Sponsored Awards and Cost Share

Per 2CFR §200.431, EDR salary distribution changes that add salary charges to externally-fundedsponsored awards and cost share worktags must be accompanied by a written (or system-recorded) justification statement at an appropriate level of detail. Specific reasons for the transfer must be provided in the explanation. Cost transfer requests of this type that are not properly documented with an acceptable justification statement will be moved to the unit's sponsored undesignated worktag number by the Commitment Accounting central office and must be reallocated off of undesignated by the end of the fiscal year.  

EDR salary cost transfers to externally-funded sponsored projects beyond 90 days of the original expense posting will not be allowed under normal circumstances. Exceptions to the 90 day limit must be approved by the Commitment Accounting Manager (Institute Budget Planning and Administration Office) , Sr. Director of Grants and Contracts Accounting (Grants and Contracts Accounting Office), and Vice President for Research Administration (Georgia Tech Research Corporation). Exceptions will be considered when:

• Initial or continued sponsor funding is delayed beyond 90 days after the effective date, and the transfer is requested within the reporting period of the sponsored award (typically 60-90 days after the expiration date of the award).
• The terms and conditions of the sponsored agreement provide for acceptance and payment of the expenses covered by the proposed cost transfer and appropriate supporting documentation is provided.
• Other exceptions will be reviewed on a case-by-case basis by the Senior Director of Grants and Contracts, and/or the Vice President for Research.

When a request doesn’t meet the one of the exceptions above, the Vice President of Finance and Planning (Administration and Finance Office) may also be required to approve the over 90 days EDR request.

Transfers between grants associated with the same sponsored award and sponsored gifts not identified as cost share projects funded by the Georgia Tech Foundation and Georgia Tech Research Corporation are not subject to special documentation requirements or the 90 day limitation.

Invalid Funding / Suspense

Departments must run and review the Invalid Funding Report daily and correct entries found on the report prior to payroll processing for the pay period. In order to correct the invalid funding entries, a change position funding transaction must be submitted and approved.

Failure to correct invalid funding entries before the payroll is processed for the period will cause the allocations to post to a suspense worktag. If suspense transactions are not corrected in a timely manner, the transactions will be transferred to departmental undesignated driver worktags or cost overrun.

Major Categories of Fees.  Georgia Tech levies the following two major types of fees:

• Other Elective Fees and Special Charges – fees and charges that are paid selectively by students;
• Mandatory Fees – fees that are assessed to all students, all undergraduate students, or all full-time undergraduate students on one or more campuses. These fees are NOT governed by this policy.  See the following Institute policy: Mandatory Student Fee and Budget Review. 

Review and Approval Process.  Approval by the President of Georgia Tech is required for all elective fees and special charges per the Board of Regents (BOR) policy but Georgia Tech must annually report to the Chancellor any new fees or adjustments to existing fees. All fee changes are implemented in the following academic year, beginning with the fall semester. The following are four exceptions to the president’s autonomous approval authority:

Fees for All Students in a Grade Level – approval by the BOR, following the same approval process as for mandatory student fees, of any fee or special charge that is required to be paid by any subgroup of students categorized solely by grade level or previous credit hours earned, such as a fee that applies to all freshman (no fees in this category currently in place at Georgia Tech);.

Fees for Students in a Specific Degree Program – approval by the BOR of an elective fee or special charge required for all students in a specific degree program or in a specific course, with the exception of laboratory fees and supplemental course material fees;

Housing and Food Service Fees – approval by the USG chief fiscal officer of housing fees for on-campus facilities and fees paid by students who choose a campus food service plan.

General Guidelines for Review of Elective Fees.  Increases in all elective fees should be kept moderate and gradual. Fees approved under this policy must be reviewed by the Bursar's Office to determine the most appropriate way to assess and collect these fees; all approved fees must be administered and collected directly by the Bursar’s Office. Elective fees and special charges are reviewed on an annual basis to determine use, effectiveness, and appropriateness for continuation.

Services Funded through Fees.  Departments and schools are expected to cover normal instructional costs within their General Operations budgets, and elective fees and special charges should be needed only in exceptional situations. The financial needs of the department or school must be weighed against the impact of the fees on students and the cost of administering the fees (assessment and collection costs). The purpose of assessing an elective fee is to fund specific, unique costs that are the result of an educational choice made by the student. Fees must be used to augment, rather than replace, general budgeted funds for departmental instructional costs.

The following are examples of what may be funded through elective fees and special charges:

• Cost of providing course materials to be consumed, retained or used by the student;
• Special costs associated with the use of Institute-owned tools and equipment for non-mandatory, special supplemental academic programs or educational experiences that directly benefit students;
• Cost of other materials, equipment, or services necessary to provide a special supplemental educational experience or program of direct benefit to the student;
• Salary and fringe benefit cost of laboratory assistants for the time spent in a specific lab for which lab fees are charged;
• Doctoral binding fees and transcript fees.

This policy specifically excludes the following cost items to be paid through elective fees:

• Salaries, wages, and employee benefits of faculty involved in course instruction;
• Instructional equipment located and utilized in classrooms and labs primarily during scheduled periods of instruction;
• Reproduction of copyrighted materials or course syllabi.

Some grants and/or contracts awarded to the Institute are considered “firm fixed price” contracts. For these types of contracts, a unit will produce a product for a pre-set price. (Most other grants and contracts are based on reimbursement of actual expenditures.) If a product is delivered and not all the sponsor funds have been utilized, the department may request the remaining funds.

Georgia Tech allocates 30% of the Resident Instruction F&A (facilities and admin) indirect cost recoveries generated by academic units back to those units. This includes all colleges. Depending on actual performance, a unit may generate additional or reduced budget allocations each fiscal year. Incentive allocations are approved by executive staff, subject to availability of funds. The allocation is made to the college level (not the department level), and funds are distributed at the discretion of each dean.

The Georgia Institute of Technology Mandatory Student Fee Advisory Committee (“Committee”) is created to implement the provisions of Board of Regents Policy 7.3.2.1 and thereby to ensure student input on changes to mandatory student fees. The Committee shall make recommendations to the President on changes to existing mandatory student fees or on any new mandatory fees. Fees considered by the Committee shall exclude elective fees that are paid by the students who choose to receive specific services. “Mandatory student fees” are defined in the Board of Regents' Policy manual as follows: “… fees that are assessed to all students, all undergraduate students, or all full-time undergraduate students on one or more campuses of a USG institution.”

Committee Members

The Committee shall be composed of twelve voting members selected as follows:

• Eight students appointed by the Graduate and Undergraduate Presidents of the Student Government Associations (SGA);
• Two faculty members appointed by the Provost;
• The Executive Director, Institute Budget Planning and Administration (IBPA), or his/her appointee (permanent member of Committee);
• One additional staff member appointed by the Executive Vice President, Administration and Finance (EVP A&F).

The two faculty members and the second staff member shall serve two year terms. The Committee is co-chaired by one of the eight student members appointed by the SGA Presidents and by the Executive Director, IBPA or his/her appointee. The IBPA Office provides staff assistance to the Committee and submits the required documentation to the BOR in support of Georgia Tech’s fee recommendations.

In addition, there shall be non-voting, ex officio members of the Committee as follows, unless these individuals are appointed as part of the twelve voting members. The ex-officio student Committee members shall be the Presidents of the Graduate and Undergraduate Student Government Associations, the Editor of The Technique, the Vice President for Finance and Chair of the Joint Finance Committee, and any other students appointed by the Student Government Association Presidents. Ex-officio faculty and staff Committee members shall be the Vice President for Student Life, the Vice President for Campus Services, and up to two faculty or staff appointed by the Provost or Executive Vice President, Administration and Finance.  Ex-officio members may fully participate in all business of the Committee except that they shall not have voting privileges. 

Fees Reviewed by Committee

Below are the fees for which the Committee provides recommendations to the President, along with the organizations that provide recommendations to the Committee:

• Technology Fee – Technology Fee Committee (for recommendations on total fee amount only and not on projects to be funded)
• Transportation Fee – Parking and Transportation Advisory Committee
• Student Health Fee – Student Health Advisory Committee
• Student Activity Fee – Student Government Association
• CRC (Campus Recreation Center) Operations Fee – CRC Advisory Committee
• Student Center Operations Fee – Student Center Advisory Board
• Athletic Fee – Georgia Tech Athletic Association
• Recreation Fee – covers debt service on Campus Recreation Center (fixed fee for term of lease on CRC).

In addition to input from the advisory organizations listed, the SGA is encouraged to solicit input on mandatory fees from students through other means, including surveys and town hall meetings. Excluded from the Committee’s review are any “general purpose fees” approved by the BOR, as stated in BOR policy 7.3.2.1. Other offices or student organizations also may propose new fees to the Committee. It would be up to the Committee Co-Chairs and the SGA presidents whether such proposals are to be considered.

Committee Operations

The Committee is responsible for reviewing proposals for rate changes to current mandatory student fees and any newly proposed mandatory fees, and to review budgets funded from the fees. Following its review and votes on the fees, the Committee provides its recommendations to the Georgia Tech president, who submits the requests to the Chancellor of the University System of Georgia for review and final consideration by the Board of Regents. The Georgia Tech president’s recommendations to the Chancellor may differ from the Committee’s recommendations.

The following guidelines shall govern voting by the MSFAC:

1. The Committee votes on all mandatory fees, whether changes are proposed or not, and on proposals to add any new fees or to reduce existing fees.
2. Where a staff Committee member works in a program funded through a fee, he or she must recuse him/herself from the vote on that particular fee.
3. When a Committee member is absent from a meeting, a substitute may be requested for that member, subject to approval of the co-chairs.
4. In no case shall the number of voting student members at a meeting fall below one-half of the total voting Committee members.

The Committee meeting schedule must provide recommendations to the President in sufficient time for submission of proposals to the Chancellor in accordance with the BOR calendar. Accordingly, the Committee should strive to complete its review and prepare a preliminary recommendation prior to the end of the fall semester. The staff chair will coordinate with BOR staff to ensure that fee recommendations are made on a timely basis. Submitting organizations are responsible for preparing the forms required by the BOR and by Georgia Tech to support fee submissions, with the assistance of the Office of Institute Budget Planning and Administration.

For each mandatory fee program the submission shall include the following documents for review by the Committee.  These shall be available to the members in advance of committee meetings. 

• Overview of the fee, including the following: (a) current and proposed fee levels, (b) the previous year’s revenue generated, (c) the fee review/advisory organization, and (d) the current uses of the revenue’
• All required BOR forms, including the fee request form, financial data form, and detail of revenue projection’
• Presentation that includes the following:
  • Detailed description of services provided, including utilization data
  • Budget summary for the current and following fiscal year
  • Fee increase request, if appropriate, with a description of how the students will benefit from the increase and the impact if the increase is not approved
  • If there was a fee increase for the current year, how the new funding is being used, compared to the proposal to the prior year’s Committee
  • How the program has either generated cost savings or additional revenue outside of the student fee and, if requested by the Committee, how the program would absorb a reduction in the student fee;
  • Evidence of students’ satisfaction in the services provided by the unit.

The President of Georgia Tech, within the constraints established by the Board of Regents, ultimately determines Georgia Tech’s internal budget allocations within the constraints imposed by sponsoring organizations, donors, and the Board of Regents (BOR) of the University System of Georgia. Georgia Tech's internal budget process requires all campus units to develop requests on the basis of the Strategic Plan of Georgia Tech and their own strategic plans. Institute executive staff receive input from the college deans and directors of other units and also from committees that make recommendations on fees for the coming year.

The following factors enter into decisions about resource allocations to colleges and other units:

• Revenue projections, including the level of expected state funding and tuition and fee and other revenue
• Budget requests from the units
• Expected impact of requests on Georgia Tech’s overall strategic plan and on individual unit plans
• Committee recommendations

The process begins in the fall with a review by executive staff and division heads of performance metrics that are to be used to help determine budget allocations. The process also involves the review of mandatory and elective fee increase requests from Auxiliary and other units funded through student fees and development of tuition recommendations to be provided to the BOR. In the first half of the fiscal year, units are required to prepare budget requests for the following fiscal year. Budget proposals address funding above base budgets and, if required, reallocations or reductions. Requests include the assignment of unit specific priorities and an explanation of how the requests address their strategic plans. 

• Departments are allowed to “pre-budget” up to but not exceeding the total actual revenue earned in the prior fiscal year. Actuals information is provided by the Bursar’s Office. The 5% administrative overhead retained by the Institute should not be included in the department’s budget. It is the responsibility of units to submit a budget amendment in September to receive their early allocations.
• The Bursar’s Office will report to units the actual Fall and Spring differentials and studies abroad revenue earned. Fall totals will be reported no later than the first work day of December, and Spring totals no later than the first work day of May. Units will be required to adjust any pre-budgeted September amount to the actual differentials/study abroad revenues earned in the current fiscal year. For departments that chose not to take advantage of the “pre-budget” opportunity in September, the current year actual revenue amount must all be budgeted no later than the May budget amendment. Board of Regents policy requires that available allocations must be expended during the same fiscal year that the revenues are earned.
  • When students are enrolled in dual degree programs with differentials, both programs will receive a portion of the total differential paid. The distribution is determined by the ratio of differentials to each other between two programs. A template for calculating the split of such differentials is available on the Budget Office website (See Appendix A for a sample).
  • Summer semester revenues: Units receive 60% of the upcoming summer revenue in the current fiscal year. The remaining 40% will be budgeted for the following fiscal year. This split coincides with requirements for reporting Summer tuition & fees from all sources to the Board of Regents. If desired, a carry-forward of the current year’s 60% may be requested via e-mail to the unit’s assigned budget analyst, no later than May 31. For purposes of estimating the 60%, the maximum allowed carry-forward is 60% of the PRIOR summer’s revenue. A ‘true up’ opportunity is provided in the next fiscal year after Summer semester ends and information about actual revenue earned is provided by the Bursar’s Office in September (See Appendix B for an example of budgeting adjustments).

Units should contact their assigned analysts with any questions or concerns regarding the procedure. To look up the contact information for the analyst assigned to a division/department, go to "Institute Budget Planning & Administration Staff" and click on the link “Budget Analyst Assignments” below the list of Budget Development & Management staff.

General Operations Funds
At the beginning of each fiscal year, an expense budget is established for General Operations funded projects. These budgets are funded by the following revenue streams: State Appropriations, Indirect Cost Recoveries, Tuition, and Other General. During the year the Institute may allocate additional budget authority to units, depending on need and funding availability. At year end budgets should equal expenditures plus encumbrances (total expenses). When a college or other division’s spending exceeds or is less than the final amended budget, either an adjustment must be made to balance the total Institute budget or a documented carry forward plan must be in place.

Departmental Sales Funds
Please refer to the DSS policy for DSS carry forward requirements and request forms; http://www.policylibrary.gatech.edu/business-finance/departmental-sales-and-services-dss  

Operating Deficits
Audit guidelines state that Institutions shall not overspend their Board of Regents approved budget authority, nor will expenses exceed revenues. When budgets are overspent or expenses exceed revenues, an operating deficit is created. Before the fiscal year can be closed, the operating deficits must be corrected. To help facilitate more effective management of the Institute’s budget as a whole, divisions will be responsible for any year end deficits that are not previously approved by the administration.

Surplus
A division may request the return of surplus funds at year-end for use in the next fiscal year, often referred to as a “carry forward of funds.” To meet the needs of the division, the Office of Institute Budget Planning and Administration (“Budget Office”) must manage the carry forward in the year of close and in the following year as well. Because of the restrictive state rules governing carrying forward funds and year-end closing, surplus/carry forward arrangements must be documented and reviewed to ensure proper accounting and budgeting methods have been followed. This policy establishes carry forward guidelines to ensure that all requirements are met.

Non-Inventoried Supplies and Materials
All supplies, materials and equipment, regardless of value purchased through the Institute is the property of the state, federal government, or private grantor agency. As such, it cannot be sold, surplused, or transferred from Georgia Tech without the prior written approval of the appropriate federal sponsoring agency and/or the Institute Logistics (Surplus). Property that is considered valueless may be disposed of by cannibalization, recycling, or waste disposal provided an Affidavit of Disposal  is obtained by the Institute's Logistics (Surplus) prior to disposal.
Building maintenance, repair and operation items are not required to have an Affidavit of Disposal. They may be disposed of by cannibalization, recycling or waste disposal if, in the judgment of the installing mechanic and/or his superior, that the economic value is such that transporting and storage of the property is not practical.

Inventoried Equipment and Materials
Equipment, inventoried, with a value of $3,000 or more purchased through the Institute is the property of the state, federal government, or private grantor agency. As such, it cannot be sold, surplused, or transferred from Georgia Tech without the prior written approval of the appropriate federal sponsoring agency and/or the Institute Logistics (Surplus).

Non-Inventoried Equipment and Materials
Equipment, with a value less than $3,000 is the property of the state, federal government, or private grantor agency. As such, it cannot be sold, surplussed, or transferred from Georgia Tech without the prior written approval of the appropriate federal sponsoring agency and/or the Institute Logistics (Surplus). For non-inventoried equipment, Cost Centers can utilize the Non-Inventory Property Surplus Report form. A Non-Inventory Property Surplus Report Form may be obtained by downloading it from the following site:

http://www.procurement.gatech.edu/logistics  

Instructions for completion of the form:

All necessary information must be entered on the Non-Inventory Property Surplus Report Form. This will include:

1. Your name and phone number or the designee’s name and phone number
2. The department’s unit number and name
3. Today’s date
4. Completion of all applicable fields in the tabled area:
   • a) Quantity - like items can be combined (i.e. desks, chairs, printers and even computers), if they are non-inventoried items. Please make sure that you validate equipment that still have an asset tag (i.e. RFID tag with  black and white Georgia Tech Campanile logo) before grouping them with other equipment. If you inform Property Control that an asset is still showing “In Service” in your inventory and was a part of a previous surplus request in as a grouped item, Property Control will advise you to mark the asset missing because it does not have a proper audit trail for the asset record.
   • b) Description – give an adequate description for the item(s)
   • c) Model Number- optional field
   • d) Serial Number – optional field
   • e) Current location and room number for asset
   • f) State the condition of the asset(s)
5. Submit a copy of the completed form to Logistics via email or fax as indicated on form.

Requirements for Data Security
To comply with Georgia Tech's data security policies
and the State of Georgia 's Electronic Scrap Disposal Policy. (See Chapter 14: Electronics Disposal in the Georgia Surplus Property Manual.)
Surplused computers (PCs/CPUs) will have their hard drives removed and shredded. Logistics (Surplus) will formulate and issue instructions on pick up procedures to comply with these requirements. (effective 07/01/06)

Exempt Property
Under the authority of OMB Circular A-110 "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations" and the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306), equipment purchased using federal grant/contract funds by Georgia Institute of Technology is considered to be "exempt" property. Based on these regulations, should a Federal awarding agency not establish conditions, title to exempt property upon acquisition vests with the Institute without further obligation to the Federal Government.
A-110 "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations"
OMB Circular ___ Definitions Section . .....
(n) Exempt property means tangible personal property acquired in whole or in part with Federal funds, where the Federal awarding agency has statutory authority to vest title in the recipient without further obligation to the Federal Government. An example of exempt property authority is contained in the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306), for property acquired under an award to conduct basic or applied research by a non-profit institution of higher education or non-profit organization whose principal purpose is conducting scientific research.
___ Property Standards Section .33 "Federally owned and exempt property" .....
(b) Exempt property . When statutory authority exists, the Federal awarding agency has the option to vest title to property acquired with Federal funds in the recipient without further obligation to the Federal Government and under conditions the Federal awarding agency considers appropriate. Such property is "exempt property." Should a Federal awarding agency not establish conditions, title to exempt property upon acquisition shall vest in the recipient without further obligation to the Federal Government.
Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306)
___§ 6306. Authority to vest title in tangible personal property for research
The head of an executive agency may vest title in tangible personal property in a nonprofit institution of higher education or in a nonprofit organization whose primary purpose is conducting scientific research—

1. when the property is bought with amounts provided under a procurement contract, grant agreement, or cooperative agreement with the institution or organization to conduct basic or applied scientific research;
2. when the head of the agency decides the vesting furthers the objectives of the agency;
3. without further obligation to the United States Government; and
4. under conditions the head of the agency considers appropriate.

Asset movement must be recorded in Workday when there is a permanent change in the asset location or physical custody (e.g., from one Cost Center to another). If the asset is temporarily loaned or relocated and the intention is to reclaim the item in the near future, the asset record need not be changed.

Equipment Transfer Request Procedures:
Moving ownership of an asset from one Cost Center to another is a Workday process. Information can be found here. The Cost Center with current ownership of the asset must contact the new Cost Center to obtain the new driver worktag. The Cost Center with current ownership of the asset can initiate the transfer.

The new Cost Center property coordinator will generate an approval for the transfer, and will need to assign the following items to the transferred asset: location, worker (custodian), and coordinating Cost Center.

Please Note:

• The Asset Transfer Event is only available to assets in "In Service", "Issued" or "Registered Status."
• This request process is not used for transfer of equipment to another State Agency or the disposal of equipment to the Department of Administrative Services' Surplus Division.

The State of Georgia General Statutes requires the Institute to be accountable for all equipment under its control. The Institute must also comply with the provisions of the Approval of Management, Budget Circulars A-21, Revised, SAS 112 (Federal Audit Guidelines) and A-110 to assure proper reimbursement of federally funded research and training projects.
The maintenance of a perpetual inventory of equipment is necessary to achieve correct financial reporting for the institution, to provide the basis for suitable insurance coverage, and to assist departments in accountability for their equipment.

Equipment received as a gift by Georgia Tech becomes the property of the Georgia Tech/Board of Regents. As such, it cannot be sold, surplussed, or transferred outside the Board of Regents, without the prior written approval of the Georgia Tech Surplus Property Manager (Logistics Unit).

Equipment owned/managed by the Institute may be used at a remote site or at home by Georgia Tech faculty/staff employees, provided the following criteria are met:

1. The equipment is used for Georgia Tech business and in compliance with the Acceptable Use Policy.
2. Use of the equipment off-campus or at home will not interfere with the operational needs of the college/department.
3. Home use is approved by the appropriate Dean/Director/Cost Center Head.

All Georgia Tech equipment, which is stolen, must be reported to the campus police, Georgia Tech Insurance & Claims Management and the Property Control (for removal from the Asset Management System).

All Georgia Tech equipment traded in must be deleted from Workday, and the replacement item must be valued correctly within the system. To accomplish this, follow the procedure outlined below.

Equipment, which is the property of the state, cannot be given away to an individual under any circumstances. It may not be sold or transferred to an entity outside the Board of Regents for the University System of Georgia without the prior written approval of the State Surplus Property Officer.

This procedure is to be used to establish a new sponsored project 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 Processing and Use of Georgia Tech Foundation Funds(Georgia Tech Policies And Procedures-Business and Finance) for a complete description of the policies and procedures for Solicitation, Acceptance and Expenditure of Georgia Tech Foundation Funds.

This procedure is to be used to establish a new sponsored project in the accounting records of the Georgia Institute of Technology (GIT) where the Georgia Tech Foundation (GTF) is the sponsoring entity. Business transactions financed by GTF funds are to be processed through GIT in accordance with generally accepted business practices and processes, as provided in these procedures.

The use of all funds held by the Georgia Tech Foundation (GTF) must be in accordance with the restrictions or intent of the donor and with Georgia Institute of Technology (GIT) policies and procedures. GTF funds intended to benefit a function of GIT(instruction, research, service, and supporting functions) are to be recorded on Institute financial records. All transactions financed by GTF funds are to be made through GIT in accordance with generally accepted business practices and procedures except where there are specific prohibitions on the use of Institute funds, or when prior approval of individual transactions has been received from the Office of the President. These standard operating procedures are designed to minimize costs and duplication, and to enhance accountability.

1.0 General Policy Statement

After payment of GTRC and GTARC (the Research Corporations) operating costs, residual funds may be made available for expenditure by GIT departments as unit allocation or grant funds by vote of the Research Corporations’ Boards of Trustees. The use of all unit allocation and grant funds held by the Research Corporations must be in accordance with the restrictions or intent of the allocation or grant and with Georgia Institute of Technology (GIT) policies and procedures. Expenditures of Research Corporation funds in support of GIT operations are to be recorded in Institute financial records. All transactions financed by Research Corporation allocations and grants are to be made through GIT in accordance with GIT business practices and procedures using GIT systems, except where there are specific prohibitions on the use of Institute funds or when prior approval of an individual transaction has been received from the the Executive Vice President for Research. These standard operating procedures are designed to minimize costs and duplication of effort and to enhance accountability.

From OMB 2 CFR Part 200.403: The factors affecting allowability of costs under these principles are:

• They must be necessary, reasonable, and allocable;
• They must conform to any limitations or exclusions set forth in the principles or in the Federal award as to types or amount of cost items;
• They must be consistent with policies and procedures that apply uniformly to both Federally-financed and other activities of the non-Federal entity;
• They must be accorded consistent treatment as either a direct or indirect cost;
• They must be determined in accordance with generally accepted accounting principles (GAAP);
• They must not be included or used to meet cost sharing or matching requirements of any other Federally-financed program; and
• They must be adequately documented

If any activity/expense cannot meet the above criteria, it may not be charged directly or indirectly to a sponsored project, regardless of its purpose.

Below is a list of costs normally considered unallowable.  This is not an all-inclusive list, and, depending on the project scope and the sponsor specific agreement, some costs that are generally unallowable may be allowable for a specific project. 

• Office supplies
• Telephone toll charges / hand-held communications device charges
• Administrative or clerical salaries*
• Postage
• First Class or Business Class travel
• Entertainment, including alcohol

* Salaries of administrative and clerical staff may be charged directly only if all of the following conditions are met:

1. They are integral to the award or activity;
2. Individuals involved can be specifically identified with the award or activity;
3. Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and
4. The costs are not also recovered as indirect (F&A) costs.

The following expense types are typically allowable as a direct charge to a sponsored award (2 CFR Part 200.453):

In the specific case of computing devices, charging as direct costs is allowable for devices that are essential and allocable, but not solely dedicated, to the performance of a Federal award.

Certain non-sponsored expenses may be unallowable for inclusion in the F&A Cost reimbursement rate, which is applied to eligible direct expenses on sponsored funds. Examples include fines/penalties, commencement expenses, and fund-raising activities. Unique ledger account or worktags are used to identify unallowable activities.

This cost accounting policy is based on OMB Uniform Administrative Requirements, Section 200.468 (2 CFR 200) which states: "The costs of such services, when material, must be charged directly to applicable awards based on actual usage of the services on the basis of a schedule of rates or established methodology".

Cost Transfers that are required to correct errors or to achieve the proper, consistent, and equitable distribution of costs to sponsored projects will be allowed, provided adequate justification for the change is furnished by the requesting unit and necessary approvals that certify the accuracy of the charges are received by Commitment Accounting and Grants and Contracts Accounting. Such Cost Transfers should be made as soon as possible after the necessity for the transfer is recognized. A Cost Transfer made within 90 days after the posting date of the transaction will be considered timely. In exceptional instances, Cost Transfers may be required after the 90-day period. In such situations, it is acceptable to process a Cost Transfer beyond the 90-day limit if the Cost Transfer request is properly supported and certified, and adequate documentation is provided (see Non-Personal Service Cost Transfers Requiring Special Approval Authorization below). This policy is applicable to Non-Personal Service Cost Transfers. See Policy 3.2 “Personal Services Reporting Using the Plan Confirmation System” for specific procedures related to retroactive salary distribution changes.

Non-Personal Service Cost Transfers
Georgia Tech authorizes the principal investigator (PI) and the unit designee (financial manager and staff) to have primary responsibility for the management of sponsored agreement funds. Requests for a non-personal service Cost Transfer should originate with the unit that originally approved the charge. The request will require adequate supporting statements that clearly indicate that the costs being moved to sponsored worktag are directly related to the project scope, allowable by the project budget, and incurred in a timely manner such that they benefit project activities.  The designated financial administrator or other responsible party with firsthand knowledge, according to delegated authority within the unit, must review the Cost Transfer for accuracy and appropriateness.

Cost Transfer Request
A request for a non-personal service Cost Transfer involving sponsored awards must be submitted by the appropriate unit personnel in accordance with Institute procedures.  All requests must be approved by at least two authorized employees, unless the request involves moving costs from sponsored onto non-sponsored funds or the transfer is performed by central administration accounting staff. In these instances only one authorized approver is needed. The approval may also only require one approval if an authorized approver initiated the change, or the department has the same person serving in multiple roles in the workflow framework.  Some requests will require additional approval based upon established validations. 

Non-Personal Service Cost Transfers Requiring Special Documentation
For every cost transfer, a valid and complete explanation is required that clearly indicates that the costs being moved to a project are directly related to the project scope, are allowable by the project budget, are allowable by the terms and conditions of the award, and are required to complete the objectives of the sponsored agreement. In addition, any available supporting documentation should be attached to the Cost Transfer Request so that it will be available for subsequent audit review. At a minimum, supporting documentation means that a copy of some form of original documentation (such as a travel expense report, original invoice, etc.) will be provided. Const transfers performed by central staff to move charges to a cost overrun worktag do not require an additional explanation. These transfers are based on reviews by central staff and are normally performed to eliminate budget overruns or charges outside the period of performance.

Cost Transfers onto sponsored worktags are not acceptable under the following circumstances:

•  To correct deficiencies caused by overruns;
• To avoid restrictions imposed by law or by the terms/conditions of the sponsored award;
• To temporarily place charges which will subsequently be transferred elsewhere.  

In addition, costs may not be transferred to a sponsored project merely because there are unexpended funds available that would otherwise be returnable to the sponsor.

All Cost Transfers are to be processed in a timely manner and properly documented. Cost Transfers to externally-funded** sponsored awards beyond 90 days of the original expense posting will not be allowed under normal circumstances unless performed by central staff during closeout.

There are certain circumstances where exceptions to this policy may be warranted. Under these circumstances, consideration for recognition of Cost Transfers beyond 90 days will be addressed by the Grants & Contracts Accounting Office. Examples of Cost Transfer situations that represent allowable exception requests can be found on the Grants and Contracts website. 

If the transfer is requested within the reporting period of the sponsored project (which typically ends 60-90 days after the expiration date of the project) and the terms and conditions of the sponsored agreement provide for acceptance and payment of the expenses covered by the proposed Cost Transfer and appropriate supporting documentation is provided, the Director or Executive Director of Grants & Contracts Accounting or their designee may approve the proposed transfer. Other exceptions will be considered on a case-by-case basis. 

** Excludes sponsored projects funded by the Georgia Tech Foundation and Georgia Tech Research Corporation. Transfers between projects associated with the same sponsored fund (award) are not subject to the 90 day limitation.

This cost accounting policy is based on OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200), Section 200.414 which states: "For major IHEs (Institutions of Higher Education), indirect (F&A) cost must be classified within two broad categories: "Facilities" and "Administration".

This cost accounting policy is based on OMB Uniform Administrative Requirements, Section 200.431 (2 CFR 200) which states: “except as provided elsewhere, the costs of fringe benefits are allowable provided that the benefits are reasonable and are required by law, employee agreement, or an established policy of the institution”.

Georgia Tech developed and implemented a plan in 1996 named the Graduate Student Tuition Remission Plan (GSTRP). This plan was reviewed and approved by the Office of Naval Research (ONR). Since that time annual rate studies have been provided to ONR that are audited by the Defense Contract Audit Agency (DCAA) to produce approved rates for each fiscal year.
The key features of this program are:

1. The Tuition Remission Award is managed through our graduate coordinators in each academic department. Upon approval of the appointment as a Graduate Research Assistant or Graduate Teaching Assistant (GRA/GTA) the home department of the student will enter a waiver code into the student system and then a credit is processed to the student's account for the fee reduction for the academic term (set on an annual basis). All GRA/GTA appointments are processed in this manner. The fee reduction is charged against one of two ledger accounts based on whether the reduction is for in-state or out-of-state tuition.
2. Part of the requirement for the appointment as a GRA/GTA includes the appointment to provide services to GIT at 33% to 50% time, registered for at least 12 credit hours of which 9 are letter grade/pass/fail. GRA/GTA's must be hired in the appropriate job code for a GRA/GTA in Human Resources. These appointments are made by the academic departments and the charges will be made against appropriate benefiting activity.
3. On a monthly basis, the Salary Planning and Distribution (SPD) System identifies the GRA/GTA payroll charges to sponsored projects and charges the sponsored project the approved monthly rate. If the student provides services to multiple projects, the charge is prorated. The charge to the sponsored project is offset by a credit to a Revenue Account- Sponsored Funded Fees.
4. Waivers of GSTRP charges to sponsored projects are considered by the Office of the Provost when required. Any such request should identify the unique features of the sponsored project that might warrant this special accounting treatment.

GT prepares invoices to sponsors based on the information in the Institute's accounting records. The salary and fringe benefit charges that appear on these invoices are calculated by the GT Commitment Accounting System and confirmed in the GT Plan Confirmation System (PCS). Salaries charged to sponsored awards are approved by the PI (and/or their financial staff) in accordance with the terms of the award and:

• Are allocable for the project scope,
• Are allowable by the project budget,
• Are reasonable and have been incurred within the Period of Performance, and
• Have been incurred according to all GT accounting policies and procedures.

The distribution of salary and fringe benefits to sponsored projects is a sensitive issue in GT’s operation of its sponsored programs; it therefore receives scrutiny by GT officers, sponsor representatives, and federal government contracting officers and auditors. Learn more about Commitment Accounting requirements here.

Compensation for Personal Services
Compensation for personal services covers amounts earned to date for salary and fringe benefits services of employees rendered during the period of performance under sponsored agreements or other institutional activity.  The payroll distribution, which is incorporated into the official records of GT, must reasonably reflect the activity for which employees are compensated by GT, and it encompasses sponsored and all other activities.

Plan-Confirmation System – Employee Salary Charged to External Sponsored Awards and Cost Share
Under the Plan Confirmation System the distribution of salaries and fringe benefits reflects budgeted, planned, or assigned work activity based on the initial annual budget. This distribution is updated throughout the year to reflect any significant changes in work.

Workload Assignment Forms (WAFs)
The WAF, which includes both actual compensation to date and planned compensation (encumbrances) should be reviewed  by employees on a monthly basis. These forms should be retained during the fiscal year until the Annual Statement of Reasonableness of Salary Charges (ASR) is confirmed.  Unit financial managers may also produce copies for review by individual employees upon request. Employees must report workload changes to their supervisor in a timely manner. See “Employee Responsibilities” in Section 7 of this policy.

Significant Changes in Workload Distribution
Commitment Accounting provides for the modification of an individual's salary distribution, commensurate with any significant change in the employee's workload or the ratio of activities comprising the workload. Specific events, which may cause a significant change in workload distribution include, but are not limited to:

• The beginning or ending of work on a sponsored award,
• A material change in the scope of work on a sponsored award,
• An increase or decrease in the number or level of courses taught,
• A new committee or major administrative assignment or relief from a committee or major administrative assignment,
• The beginning or ending of a sabbatical leave, leave without pay, or prolonged sick leave,
• Status changes from part-time to full-time or vice versa.

The system does not require an adjustment in the employee's workload assignment for day-to-day, or short-term, changes in work schedule. However, the Commitment Accounting department does require an adjustment for all significant changes to an employee's workload. As a general rule, a change applicable to a given project or activity of 5% or more of an employee's total effort over the course of the academic term would warrant an adjustment.

Changes in an employee's workload distribution for future periods are generally acceptable but are subject to the standard documentation requirements noted below. Future period workload distributions should be confirmed monthly via the WAF.

Retroactive Changes in Workload Distribution
Retroactive changes to payroll distributions must be subjected to the closest scrutiny. These types of changes indicate a contradiction of previous monitoring reviews and, for that reason, should be limited to the correction of errors. If a retroactive change must be made, it must be approved and documented in accordance with the requirements found in the Commitment Accounting policy.

Standard Documentation Requirements
GT authorizes the principal investigator (PI) and the properly authorized unit designee (financial manager and staff) to have primary responsibility for the management of sponsored awards. The manual/electronic signatures and/or a system password of those individuals is generally considered sufficient documentation to support standard workload allocation changes.

Primary supporting documentation for PCS salary charges during a fiscal year are defined in the Commitment Accounting Policy.

Retroactive changes that cross fiscal years may be made in extraordinary circumstances by journal entry when supported by appropriate documentation, including a revised Annual Statement of Reasonableness of Salary Charges (ASR) signed by the employee or someone with firsthand knowledge and the departmental approver.

Annual Statement of Reasonableness (ASR) of Salary Charges
The Plan-Confirmation System requires an attestation to be completed annually by the employee, principal investigator, or responsible official that:

• compensation is reasonably allocated to all work performed, and
• compensation was charged to sponsored agreements as direct charges, or
• compensation was charged to both sponsored and non-sponsored funding sources, or
• compensation was charged to multiple non-sponsored funding sources.

The Office of Grants and Contracts Accounting will notify employees to complete the ASR certification, following the completion of the fiscal year.

ASR Signatory Requirements – Certification of Effort
The Annual Statement on the Reasonableness of Salary Charges (ASR) is designed for the employee to confirm that the distribution of salary charges represents a reasonable estimate of the work performed during the stated period. ASRs must be completed annually for any individuals with salary charges on sponsored funding sources. In most instances, only the employee has the information required to complete this certification and therefore ASRs should be completed and signed by the covered employee.

The manual ASR does provide a second certification section to be used in limited instances when the covered employee is not available to complete the certification. When the employees is unable to complete the ASR, the certification may be signed by the employee’s supervisor, PI, or other organizational unit head, with firsthand knowledge of all the employee's activities using suitable means of verification that the work was performed. If the responsible official cannot certify that they have personal familiarity with all of the employee's activities, then the employee is required to sign the statement. In some cases, an employee may be involved in a number of activities under different supervisors, and no single person other than the employee has firsthand knowledge of all their activities. In these cases, the employee must sign the documents.

Unit Financial Manager's Certification
The PCS also requires that the appropriate financial manager in each unit review the ASR statements before returning to them Grants and Contracts Accounting. The financial manager should sign and date each ASR to indicate that the review has been done.

The Office of Grants and Contracts Accounting is charged with the financial close-out of sponsored awards in the accounting records of the Georgia Institute of Technology for sponsored activity in Resident Instruction (RI), Georgia Tech Professional Education (GTPE), and the Enterprise Innovation Institute (EII).

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.  These guidelines (including retention periods) can be found at the following web link:

http://www.usg.edu/records_management/schedules/A

After notification by the Office of Grants and Contracts (G&C) Accounting that unbillable costs have been incurred on an externally funded sponsored project, the unit will be given an opportunity to resolve the problem before the expenditure is moved to the unit's cost overrun project.

Undesignated driver worktags should only be used where there exists a high degree of assurance that the award(s) will be approved or where administrative delays have been encountered in the issuance of award documents and the assignment of Award/Grant driver worktags. Undesignated driver worktags are not a budgetary device to cover salaries for which adequate funding has not been identified and only hopes exist to cover them in the future. Undesignated worktags are not to be used as a means of balancing a budget and they should never be used when valid sponsored information is available. Undesignated worktags are to be used for salaries only. Non-salary expenses such as travel or materials and supplies should never be charged to undesignated worktags.  Advance Award/Grant numbers can be assigned under specific circumstances as described in Institute Research Policy 2.7.

Any budgetary unit incurring a cost overrun on a sponsored awards will be solely responsible for its removal.