Business & Finance

Business & Finance srodriguez31 Thu, 03/22/2012 - 13:38

Accounting

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

General Information

General Information
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 15:25
Policy No
1.1
Last Revised
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

To provide guidance to schools, colleges, departments or units of the Institute as it relates to general accounting functions.

Policy Statement

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.

Scope

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

Responsibilities
  • Controller’s Office
Enforcement

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

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

Account Number Structure

Account Number Structure
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 15:27
Policy No
1.2
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

Georgia Tech currently uses four types of account numbers:

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

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

Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

Examples of SpeedTypes:

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

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

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

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

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

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

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

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

Cash Receipts and Accounts Receivable

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

Cash Handling Procedures

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

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

Procedures

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

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

Custody and Safekeeping of Receipts

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

Daily Cash Deposits

Daily Cash Deposits
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 16:50
Policy No
1.4.1
Last Revised
Review Date
Policy Owner
Bursar’s Office
Contact Name
Interim Contact: Zong Yang
Contact Title
Administrative Professional Senior
Contact Email
zong.yang@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

Scope

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

Procedures

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

Form Instructions

SECTION ONE

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

SECTION TWO

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

SECTION THREE

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

SECTION FOUR

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

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

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

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

Enforcement

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

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

Gift Deposits

Gift Deposits
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 16:53
Policy No
1.4.2
Last Revised
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

Scope

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

Procedures

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

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

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

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

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

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

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

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

Departmental Sales and Services (DSS)

Departmental Sales and Services (DSS)
Type of Policy
Administrative
abruneau3 Fri, 04/18/2014 - 15:18
Policy No
1.11
Review Date
Policy Owner
Controller's Office
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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.

Policy Statement

Overview
Georgia Tech has accounting requirements related to departmental sales and services (DSS) funds and the ability to carry eligible funds forward in the next fiscal year. DSS accounting 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 (includes GT Affiliates)
  • External to GT and GT Affiliates
  • External Sponsored Projects.

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:

  • General Public
  • Faculty/Staff/Students
  • Direct payments from Other Institutions/Agencies
  • Agency Funds
  • GTPE Revenue

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

  • Federal Sponsored Projects (USAF, DOE, DOD, NASA, etc.)
  • State of Georgia Sponsored Projects
  • Local Sponsored Projects
  • Private Industry Sponsored Projects

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:

  • The activity must generally be self-supporting.
  • The activity should not use State-Appropriated or other General Operations funds.
  • Revenue and associated expenses for each DSS activity should be readily identifiable; e.g., by class code, department, project indicator, 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.

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:

  • Self-Supporting Revenues - Service center annual recoveries should typically be sufficient to fund the annual operating costs of the center. Operating costs include allocable salaries, fringe benefits, supplies, equipment maintenance, equipment replacement, and other facilities and administrative costs applicable to the center.
  • Local Administrative and Financial Support - The unit/department must be equipped to manage the additional accounting and reporting requirements of the Center. These activities include separate accounting for expenses and revenues (recoveries) and precise tracking of utilization for charge-out purposes.
  • College and Institute Level Approval – The “Service/Recharge Center Request & Approval Form” must be completed and approved by the appropriate School or Department Head and the appropriate College or Institute level officer prior to being submitted to Grants and Contracts Accounting for consideration. The form can be found on the Grants and Contracts website: http://www.grants.gatech.edu/admin_standard_blank_forms.php

 

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 activity must be self-supporting.
  • The activity should not use State-Appropriated or other General Operations funds.
  • Revenue and associated expenses for each DSS activity should be readily identifiable; e.g., by class code, department, project indicator, etc.
  • Surplus revenues must be attributable to the Center’s cost of facilities (in whole or part) as defined by OMB Circular A-21 (2 CFR 220) and as supported by individual Service Center cost studies. Facilities costs include equipment depreciation and maintenance expenses.

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:

Scope

This policy applies to all Georgia Tech staff, faculty, and researchers who generate revenue from departmental sales and services.

Policy Terms

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

Procedures

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.

Responsibilities

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.

Enforcement

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/media/en/gui/7508/index.html

Policy History
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.

  

 

 

GT Foundation Awards

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

GT Foundation Award Accounting

GT Foundation Award Accounting
Type of Policy
Administrative
jbarber32 Thu, 05/31/2012 - 09:24
Policy No
1.8.1
Last Revised
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

Management of GTF and Financial Aid Projects

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

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

Grants & Contracts: Sponsored Project Budget Revisions

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

Scope

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

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

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

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

Georgia Tech Foundation Award Project Number Assignment

Georgia Tech Foundation Award Project Number Assignment
Type of Policy
Administrative
jbarber32 Thu, 05/31/2012 - 09:28
Policy No
1.8.2
Last Revised
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

Scope

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

Procedures

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

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

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

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

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

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

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

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

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

Non-Student Accounts Receivable

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

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

Procedures

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

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

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

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

 

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

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

Billing Disputes

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

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

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

Responsibilities

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

Policy History

 

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

Petty Cash

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

Petty Cash Fund General Guidelines

Petty Cash Fund General Guidelines
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 16:58
Policy No
1.5.1
Effective Date
Last Revised
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

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

Allowable Transactions
The transactions are allowable using petty cash funds:

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

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

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

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

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

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

Scope

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

Policy Terms

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

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

Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Petty Cash Reimbursement Procedures

Petty Cash Reimbursement Procedures
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 17:00
Policy No
1.5.2
Effective Date
Last Revised
Review Date
Policy Owner
Bursar’s Office
Contact Name
Interim Contact: Zong Yang
Contact Title
Administrative Professional Senior
Contact Email
zong.yang@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

Scope

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

 

Procedures

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

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

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

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

 

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

Departmental Petty Cash Fund Procedures

Departmental Petty Cash Fund Procedures
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 17:02
Policy No
1.5.3
Effective Date
Last Revised
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

Scope

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

Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Departmental Petty Cash Fund Checking Account Procedures

Departmental Petty Cash Fund Checking Account Procedures
Type of Policy
Administrative
jbarber32 Tue, 05/29/2012 - 17:04
Policy No
1.5.4
Effective Date
Last Revised
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

Scope

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

Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Scholarship and Fellowship Projects

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

Establishing Scholarship and Fellowship Projects

Establishing Scholarship and Fellowship Projects
Type of Policy
Administrative
jbarber32 Thu, 05/31/2012 - 09:33
Policy No
1.9.1
Last Revised
Review Date
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

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

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

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

Processing Scholarship, Fellowship and Other Student Payments

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

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

Policy Statement

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

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

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

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

Scope

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

Procedures

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

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

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

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

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

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

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

Tax Implications for Student Receiving Scholarships, Fellowships or Traineeships

Tax Implications for Student Receiving Scholarships, Fellowships or Traineeships
Type of Policy
Administrative
jbarber32 Tue, 06/19/2012 - 16:53
Policy No
1.9.3
Last Revised
Review Date
Policy Owner
Controller's Office
Contact Name
Carol Gibson
Contact Title
Controller
Contact Email
cgibson@gatech.edu
Reason for Policy

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

Policy Statement

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

Scope

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

Procedures

Scholarships, Fellowships, and Traineeships

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

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

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

 

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

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

 

Scholarships, Fellowships, and Traineeships for Non-Resident Aliens

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

Responsibilities
5.1.Student

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

5.2. Institute

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

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

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

Enforcement

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

Policy History
Revision Date Author Description
1-07-2021 Controller's Office Updates to verbiage.
10-03-2014 Controller’s Office Updates to verbiage. Removed obsolete portions. Updated title.

Student Prizes and Awards

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

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

Policy Statement

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

Scope

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

Procedures

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

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

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

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

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

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

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

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

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

Policy History

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

Revision Date Author Description
10-03-2014 Carol Gibson

Budget

Budget jbarber32 Wed, 06/27/2012 - 16:03

Annual Operating Budget (Proposed Budget)

Annual Operating Budget (Proposed Budget)
Type of Policy
Administrative
jbarber32 Fri, 06/29/2012 - 12:00
Review Date
Policy Owner
Budget, Planning and Administration
Contact Name
Jamie Fernandes
Contact Title
Executive Director
Contact Email
jamie.fernandes@business.gatech.edu
Reason for Policy

The Georgia Institute of Technology budget expresses in terms of dollars the funded programs and plans of the Institute for the specific budget (fiscal) year. Revenue estimates are also identified to support these programs and plans. Budgetary approval by the Board of Regents (BOR) of the University System of Georgia (USG) and by the Institute administration constitutes authorization to expend the funds as budgeted and to collect the anticipated revenue. The approved budget is the primary instrument of fiscal control and must contain all revenue and expenditures of the Institute.

Institute revenue or program support derives from State Appropriations and Internal Income such as Student Fees, Indirect Cost Recoveries from Sponsored Projects, Gifts and Grants, Sales and Services, and Sponsored Operations. Each year the State of Georgia Legislature appropriates funds to the University System of Georgia for support of all Institutions in the system. The BOR in turn allocates state funds to each institution on the basis of a funding formula and specific guidelines established in the state Appropriations Act.

Policy Statement

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.

Procedures

Applicable Forms
Forms to be used in preparing the Annual (Proposed) Operating Budget are specified each year in the guidelines and instructions provided to campus units. See the Budget Office web site for current forms.

Budget Amendments

Budget Amendments
Type of Policy
Administrative
jbarber32 Fri, 06/29/2012 - 16:11
Review Date
Policy Owner
Budget, Planning and Administration
Contact Name
Jamie Fernandes
Contact Title
Executive Director
Contact Email
jamie.fernandes@business.gatech.edu
Reason for Policy

The Office of Institute Budget Planning and Administration (“Budget Office”) is responsible for the development, implementation, maintenance, and control of Georgia Tech’s non-sponsored budgets, based on allocations approved through appropriate academic and administrative processes. The budget consists of funding from general, departmental services, special funding initiative, research consortium, lottery, sponsored, auxiliary, student services, and agency operations. In addition, budgets are maintained for a large number of capital projects.

Policy Statement

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.
Procedures

Steps in Budget Amendment Process

  1. Log into the IBS System
    • Enter your Operator ID (GT ID number).
    • Enter your password.
    • Click “enter.”
  2. Check Totals
    • Go to Totals Page
    • Verify approved budget for all funding sources.
  3. Check Amendment
    • Go to Review and Submit Page
    • Check Salary Planning and Distribution for any changes automatically generated by IBS.
    • These changes are driven by and reflect the SPD system the day the amendment was run. Delete/correct accordingly.
    • If increasing or decreasing budget, make adjustments to your personal services and/or non-personal services to reflect the change. After each entry is made make sure you click “Save.”
    • Complete “Amendment Notes” and “Comments” fields (see “Use of Comments Fields” section below)
    • If there is no change to the “bottom-line” budget and funds are being transferred between personal services and non-personal services, there must be a zero balance.
  4. Check Request Prior to Budget Submission
    • Go to “Review and Submit” page.
    • Verify funding source totals for any increases or decreases.
    • Verify total.
    • Make sure funding is not transferred from one source to another. For example, do not move funds from General Operations to Departmental Sales and Services (DSS).
  5. Budget Submission
    • Click “Submit” button.
    • Your department is locked out to allow the Budget Analyst to process your changes.
    • An e-mail is generated and sent to the Budget Office to process your request.
    • Your budget amendment is updated. An e-mail notification is sent to you that your budget amendment is ready to print.
  6. Printing Reports
    1. Go to “Reports” page.
    2. All reports are available in MS Excel.
    3. Note that Bud802 and Bud805 are generated after the BA is submitted.
    4. Print report for use by your unit’s financial administrators in review of authorized monthly budget activity.

Use of Comment Fields in the Amendment Process
Department Level Comments – provide a description of your budget changes.

  • This page differs from the detail level comments on the Personal Services and Non-Personal Services pages in that here you must include any high-level description to document why you made budget adjustments. The description should be similar to the information previously provided on the cover sheets.

Detail Level Comments (on Personal Services and Non-Personal Services pages)

  • Your department is either receiving or giving out a mixture of funding (example: both Tech Fee and Research Consortium funding).
    • Enter totals by funding source in comment.
  • Funding to or from more than one other department/project.
    • Enter each of the other departments’ org numbers and amount in comment. Don’t just enter a lump sum total by department.

Actions that result in a NET change to your department’s budget require comments

  • SPD adjustments or transfers from one account to another within a department do not require comments. Within comments, always include the project number org # or the name of the department that is either providing additional budget to your department or receiving funds from your department. Your analyst can help you with the transition to paperless documentation within amendments.

Any BA submitted with a net change in a department’s budget but without any documentation in the comment fields will need to be corrected before it will be processed

  • Your analyst will contact you to request that you submit the missing information and resubmit the amendment.

Budget Amendment Close-Out Process

  • Budget Office balances the changes to the Original Budget.
  • The files are processed and submitted to update the PeopleSoft General Ledger.
  • The Budget Office notifies the unit budget contacts that IBS is available for your use and the next budget amendment due date.

Please contact your Budget Analyst if you have any questions about these policies and procedures.

Related Documents

Capital Budgets

Capital Budgets
Type of Policy
Administrative
jbarber32 Fri, 06/29/2012 - 16:29
Review Date
Policy Owner
Budget, Planning and Administration
Contact Name
Lisa Godfrey
Contact Title
Dir-Institute & Capital Plan Budget Mgt
Contact Email
lisa.godfrey@business.gatech.edu
Policy Statement

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.

Procedures

State of Georgia Funding
Each year a "Five-year Capital Outlay Budget Request" is prepared by the units of the University System of Georgia and submitted to the Board of Regents. The Board of Regents examines all requests and prepares a consolidated priority list. Only a portion of the list is funded by the legislature's allocation. The unfunded projects normally remain on the priority list the following year. Funds for the approved projects are transferred to GSFIC for disbursement and project administration. These projects are defined as new buildings, building additions, and building renovations estimated to cost $1,000,000 or more.

Board of Regents Funding
The Board of Regents receives a special allotment from the State of Georgia called Major Repair and Rehabilitation (MRR) funds. Each unit of the University System submits to the Board of Regents a prioritized list of repair/renovation projects estimated to cost less than $1,000,000 each. At Georgia Tech this list is prepared by the Space Administration Committee. The Board of Regents reviews each submission and decides which projects will be funded from the MRR allocation. The Board of Regents assigns a project number and authorizes GSFIC to make disbursements from the MRR allocation if the source is bond proceeds. Occasionally projects in excess of $1,000,000 will be funded from MRR funds. When this happens they are usually funded in phases.

Georgia Tech Foundation Funding
GTF funds special projects as determined by the President of Georgia Tech and the Board of Trustees of GTF. These projects may be coordinated by GTF or the funds may be transferred to Georgia Tech and handled by Georgia Tech personnel.

Campus Funds
These are discretionary funds held by Georgia Tech consisting mainly of endowment funds and Auxiliary reserve funds. The use of discretionary endowment funds must have the President's approval or his designee prior to establishing a project budget. The Auxiliary Reserve funds are used to renovate existing Auxiliary Enterprise facilities, construct new Auxiliary Enterprise facilities, and purchase equipment needed by Auxiliary Enterprise units.

Unexpended Plant Funds
This fund group is used to account for the construction or acquisition of physical properties, renovation of existing properties, and purchase of inventories and non-inventoried equipment.

Expenditures in this fund group are categorized as follows:

  • Land
  • Buildings - New
  • Buildings - Additions (Cost a minimum of $5,000 and a useful life of more than three years)
  • Buildings - Renovations (Cost a minimum of $5,000 and a useful life of more than three years)
  • Improvements Other Than Buildings - landscaping, parking lots, fences, etc.
  • Equipment/Inventories - items costing $1,000 or more; (items made of glass or other fragile materials are supplies)
  • Equipment items costing $5,000 or more are capitalized and depreciated
  • Equipment/Non-inventoried - items costing less than $1,000 are considered supplies

Applicable Forms
Capital Budgets Form
The Capital Budgets Form is used to establish plant fund projects and is provided to the units by the Budget Office. The project account numbers for new projects will be assigned by the Budget Office after the project has been approved. If discretionary endowment funds are shown as the source, the President or his designee must approve the project. All plant fund projects must have the Board of Regents' approval.

Commitment Accounting

Commitment Accounting
Type of Policy
Administrative
kcross8 Fri, 08/28/2020 - 10:40
Effective Date
Review Date
Policy Owner
Institute Budget, Planning and Administration
Contact Name
Terryl Barnes
Contact Title
Commitment Accounting Manager
Contact Email
terryl.barnes@business.gatech.edu
Reason for Policy

This policy outlines the requirements of Commitment Accounting at Georgia Tech in compliance with USG financial systems and processes.

Policy Statement

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.

Scope

This policy applies to all departments of Georgia Institute of Technology.    

Policy Terms

Actuals

The actual amount of the encumbered portion that has been spent to date. An encumbered amount becomes an actual when an encumbered amount is paid. Actuals represent salary and fringe benefit expenses.

Change Position Funding (CPF)

The process of assigning or updating future pay period salary and fringe benefit distribution to a position by percentage and effective date.

Commitment Accounting

The Commitment Accounting business process enables departments to budget for salary and fringe benefit expenses and track actual salary and fringe benefit costs.

Encumbrance

A claim against funds; a projection of future expenses.

Express Direct Retro (EDR)

An Express Direct Retro is the retroactive redistribution of salary and fringe benefit costs.​

Invalid Funding Report

The invalid funding report displays positions with an error for future pay periods that have not been processed.

Provisioned Initiator

A Provisioned Initiator is a security role which gives an individual access to complete transactions for positions, position funding, EDRs, and other tasks for departments. Information regarding training to become a Provisioned Initiator can be found here.

Suspense

A Suspense is a combination code that allows for the review and resolution of errors, to track payroll costs that do not have position funding, and to track when funding ends in the middle of an earnings period.

Procedures

5.1 Change Position Funding Procedure Requirements

Submission

A CPF transaction must be submitted by a user with appropriate access to update future pay period (encumbrance) postings of gross salary distributions.

Review

Provisioned Initiators must identify if the employee for which the CPF is being processed is funded from multiple departments or awards. If employees are funded from multiple departments or awards, all departments must approve the CPF transaction. If all required departments are not included in the approval workflow the transaction will be denied.

5.2 Express Direct Retro Procedure Requirements

Submission

EDR requests must be submitted by a user with appropriate access to correct actual payroll postings of gross salary distributions.

Documentation

An Employee Cost Detail report and supporting documentation are required to be attached to each transaction. Failure to attach the required documents to the transaction will cause the transaction to be denied.

Review

Provisioned Initiators must identify if the employee for which the EDR is being processed is funded from multiple departments. If employees are split funded, all departments must approve the EDR.

Timing Requirements

The accounting date of the EDR transaction must be approved at all levels within the current accounting period in order to post the transaction to workday. The monthly cutoff for EDR transactions is determined by the Workday month end schedule. If the accounting date of the transaction is outside of the current accounting period, the transaction will be denied.

Example: the transaction was initiated on May 1st with the same accounting date, however the transaction was not approved until June 10th. This transaction will be denied because Workday closed for May prior to the approval date. The user will need to resubmit the transaction with a June accounting date and ensure the transaction is approved within the same month.

Late EDRs

An EDR request over 90 days past the original payroll posting date, where funding is being moved to a grant requires additional documentation and approval by the Commitment Accounting Manager, and the Sr. Director of Grants and Contracts Accounting. When a request doesn’t meet the one of the exceptions noted in the Policy Statement above, the Vice President of Finance and Planning (Administration and Finance Office) may also be required to approve the over 90 days EDR request. Users must complete the transmittal form, attach the employee cost detail report, supporting documentation and submit the request to the GT Financials Service Now.

Responsibilities
8.1 Institute Budget Planning and Administration – Commitment Accounting Team

The Commitment Accounting team in Institute Budget Planning and Administration is responsible for:

  • Managing, reviewing, and approving all commitment accounting related transactions,
  • Submitting EDR transactions over 90 days on behalf of campus users,
  • Correcting fringe benefits and tuition errors
  • Verifying transactions post to Workday general ledger

 

8.2. Departmental Initiators/Approvers/Reviewers

Departmental Initiators/Approvers/Reviewers are responsible for:

  • Verifying position funding,
  • Verifying salary, flate rate fringe benefits, and tuition remission distributions are accurate,
  • Reconciling transactions,
  • Reviewing transactions in a timely manner and ensuring transactions are approved or denied.
Enforcement

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

Policy History

Revision Date

Author

Description

10/20/2020

Institute Budget Planning and Administration

New Policy

Elective Fees and Special Charges Approval and Budget Review Policy

Elective Fees and Special Charges Approval and Budget Review Policy
Type of Policy
Administrative
jbarber32 Mon, 07/09/2012 - 14:12
Effective Date
Last Revised
Review Date
Policy Owner
Budget, Planning and Administration
Contact Name
Justin White
Contact Title
Budget Program Manager
Contact Email
justin.white@business.gatech.edu
Reason for Policy

The purpose of the Georgia Institute of Technology’s Elective Fees and Special Charges policy is to:

  • Ensure Georgia Tech meets the requirements of BOR Policy 7.3.2.2 for establishing and managing elective fees and special charges;
  • Provide guidance and consistency for the approval and management of the fees/charges;
  • Ensure students are not burdened with costs that should be covered by tuition or state funds;
  • Inform the Georgia Tech community about the review and approval process requirements.
Policy Statement

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.
Scope

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

Procedures

All elective fees and special charges must conform to this Georgia Tech policy. Departments may not assess and collect course-related or any other fees not previously approved under this policy.

4.1

Proposal Format and Submission

To request a new elective fee for an upcoming academic year, a department must complete the New Student Fee Proposal Form on the Budget Office’s website. 

Requests for Fee Change

Current fees are updated annually in late fall for the following fall. The Budget Office contacts all of the departments with existing fees and requests confirmation of the fee for the following fiscal year. Changes may be made at this time. To make a change or for questions, unit financial managers should contact the Budget Program Manager, Revenue and External Funds.

Review Process

All requests to establish a new elective fee/special charge or an adjustment to an existing fee must follow this approval process. These requests are annually reviewed and submitted for approval to the Georgia Tech President and/or the BOR for implementation during the upcoming academic year. Separate fee requests are not required for courses taught during the summer if they have already been approved for the fall and spring. The approved fee is automatically assessed during the summer if the course is offered under the same course number and course description.

Guidelines for Allowable Costs

When proposing new fees, departments must adhere to the following guidelines:

 

  • Departments must apply a test of reasonableness to ensure funding has not already been provided to the department or school for the stated need through other fund sources, such as state or tuition funds.
  • The types of items that may be included in the fee are: art materials, course packets/kits, software/videos, special equipment, materials integral to the course or program, travel to off-campus learning sites, specific student experiences/events, and the cost of professional examination/certification required as a part of the class and procured by the institution under a group purchase. 
  • Only direct costs (not overhead/indirect costs) may be included in the computation of the fee amount, and departments must fully and accurately document the cost of salaries and fringe benefits, supplies, consumables, and support services associated with each elective fee.
  • Each proposed fee must provide program or course-specific cost information.
  • If equipment needs are included in the fee, the cost of the equipment must be allocated over the useful life of the equipment and cannot be fully expensed in the year of acquisition. For the calculation of course materials fees, “equipment” is considered to be tangible property having a useful life of more than one year.
  • If the fee is assessed for a course or program during the summer, as well as the academic year, the expected costs and revenue associated with the summer session should be included in the calculation of the overall fee. Alternatively, departments may request a different fee for the summer.

 

Designation and Collection of Elective Fees and Special Charges Revenue

The Budget Office will assist in establishing each fee in the appropriate fund, project, and account and contact the Bursar’s Office to set up the BANNER detail code to be used. All approved course fees will be assessed through BANNER to all students enrolled in a specific course at the time of registration. The published tuition and fee deadlines for each term will be in effect for these fees. For all other type fee approvals, a review will be made by the Bursar’s Office to determine the most appropriate method for assessment and subsequent collection.

Utilization of Elective Fee Revenue

Revenue from each individual elective fee and special charge must be expended only for the purpose(s) specified in the calculation of the approved fee. Revenue cannot be used for other needs and should not be used as a profit generating mechanism.

Enforcement

The Provost’s Office, Budget Office, and Bursar’s Office are responsible for applying the policy and ensuring adequate campus oversight of all fees. This responsibility includes review of fee proposals, review of the costing and proposed fee levels, reporting fees to the BOR, and the appropriate distribution of collected fees.

Firm Fixed Price (FFP) Residual Balances

Firm Fixed Price (FFP) Residual Balances
Type of Policy
Administrative
jbarber32 Mon, 07/09/2012 - 14:06
Review Date
Policy Owner
Budget, Planning and Administration
Contact Name
Lisa Godfrey
Contact Title
Dir-Institute & Capital Plan Budget Mgt
Contact Email
lisa.godfrey@business.gatech.edu
Policy Statement

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.

Procedures

Procedures for obtaining FFP Residual Balances

  1. Request documentation of FFP residual balance amount from Grants and Contracts.
    Note: Units only receive the direct portion of the residual balance.
  2. Obtain approval of funds transfer from Budget Office. This may be done via email. Please contact the Director of Budget Planning and Administration, copy to the Associate VP of Financial Services. Include Grants and Contracts documentation as an attachment.
  3. Once approved, the Unit may include the new funding in the next monthly budget amendment.
  4. The Budget Office will establish a unique project number for these funds and post the appropriate budget amount.
    Note: The revenue generated by this transaction is unique. The BOR classifies these funds as either Indirect Cost Recoveries or Other Miscellaneous Income, depending on details of the transactions. Expenditures must be charged to the same fund as the revenue. Budget amendments to these projects are not allowed.

Indirect Research Support Allocation

Indirect Research Support Allocation
Type of Policy
Administrative
jbarber32 Mon, 07/09/2012 - 14:10
Last Revised
Review Date
Policy Owner
Budget, Planning and Administration
Contact Name
Lisa Godfrey
Contact Title
Dir-Institute & Capital Plan Budget Mgt
Contact Email
lisa.godfrey@business.gatech.edu
Policy Statement

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.

Procedures

Original Budget Allocation
Each academic unit’s Original Budget for the next fiscal year contains an F&A base. This base is 30% of the Office of Grants and Contracts' revenue estimate for the current fiscal year as of March 30. The Institute Budget Planning and Administration Office provides estimates to the units of their allocations during the budget development process to permit them to plan their expenditures and budget accordingly.

Mid-Year Budget Allocation
Mid-year permanent budget allocations may be approved by executive staff based on changes to F&A recoveries during the fiscal year. If approved, the allocations will be based on the most current Office of Grants and Contracts' revenue estimates for current fiscal year.

Reconciliation
After the close of the fiscal year, the allocations will be re-computed based on actual earnings for the previous year. These funds will be distributed as permanent additional or reduced budget adjustments in the first budget amendment of the new fiscal year. This will make the units whole for recoveries from the prior fiscal year.

Institute Budget Preparation Authority and Amendments

Institute Budget Preparation Authority and Amendments
Type of Policy
Administrative
jbarber32 Wed, 06/27/2012 - 16:21
Last Revised
Review Date
Policy Owner
Budget, Planning and Administration
Contact Name
Jamie Fernandes
Contact Title
Executive Director
Contact Email
jamie.fernandes@business.gatech.edu
Reason for Policy

The purpose of this policy is to define the Institute’s basic budget preparation and management requirements, which are governed by the University System of Georgia. The Georgia Tech Budget Office (Office of Institute Budget Planning and Administration) manages the budget process under the direction of the President and the Executive Vice President for Administration and Finance. The office’s functions are to plan, prepare, maintain, monitor, and report on all institutional budgets at Georgia Tech according to established institutional and University System of Georgia (USG) policies.

The Georgia Tech budget presents the priorities of the Institute in terms of dollars and services provided. The Institute establishes an annual operating budget and a capital budget, which span the state-established fiscal year of July 1 through June 30.

  • The operating budget contains funding for recurring programs such as instruction, research, public service, and support services. The operating budget contains revenue from all sources, including tuition, student fees, state appropriations, and sponsored (grants and contracts) revenue.
  • The capital budget contains major investments in fixed assets, including land, buildings, and equipment, is funded by various earmarked sources. In many cases projects funded in the capital budget span two or more years.

The Board of Regents (BOR) annually approves the Institute’s operating and capital budgets, as well as its tuition rates, mandatory and selected other fees, and state allocations. Any allowable budget changes made during the fiscal year must be processed through an amendment process managed by the Budget Office.

The Board of Regents (BOR) of the University System of Georgia (USG) assigns to the Georgia Tech President the responsibility for planning and administering all programs and the related Institute budgets, as indicated in the BOR Policy Manual Section 2.6.1. The President delegates the budget and planning responsibilities to the Provost, Executive Vice Presidents, and Vice Presidents. This responsibility is further delegated to these executives’ direct reports, including deans and other division heads. The Executive Vice President for Administration and Finance serves as the Institute’s Chief Financial Officer.

Original Budget Preparation and Approval

The Budget Office is required to follow an established set of guidelines and policies set forth by the State of Georgia and the Board of Regents. The BOR guidelines are found in Section 7.2 (“USG Budget”) of the Board of Regents’ policy manual and Section 8.0 (“Budget Process”) of the USG Business Procedures Manual (BPM). A summary of key portions of the BOR policy and business procedures pertaining to the Original (base) Budget follows:

BOR Policy Manual 7.2.3 – Operating Budgets – annual preparation and submission of an annual budget to the Chancellor with funding from all sources;

BPM 8.5.3 – Budget Preparation at the Institutional Level – institutional development of the proposed budget by personal services, fringe benefits, and other expenses to the BOR following establishment of internal priorities;

BPM 8.5.4 – Submission of Proposed Budget – budget submission by the following major categories (fund groups): 

  • Education and General – budgets that are not any of the categories below
  • Auxiliary Services – business-like service organizations such as housing, dining, and transportation
  • Student Activities – funded by separate, mandatory student fees for campus recreation, the student center, and student organizations
  • Capital – major capital expenditures including land and land improvements, buildings and building improvements, and infrastructure;

BPM Section – 8.5.5 Board Approval of Institution’s Original Budget – June approval by the BOR of the final institutional budgets by the major categories listed in BPM 8.5.4. 

Budget Amendments

As funding circumstances change during the fiscal year, the Institute implements internal budget amendments, in close coordination with Institute operating units. Any amendments involving an increase or decrease in the overall Institute revenue must be approved by the President. These amendments are initiated by the Budget Office or by campus units, with subsequent approval by the Budget Office.

The Budget Office consolidates all internal Institute amendments for each quarter for submission to the Board of Regents on a summary basis. It is critical that the “expenditure authority” approved by the BOR be consistent with the official Georgia Tech budget, including an accurate breakdown of the budget between personal services and non-personal services. Failure to maintain this consistency may result in an audit exception. It is critical for every Institute unit to maintain a budget that closely resembles the expected year-end spending, including the distribution of dollars between personal services and non-personal services. The following are excerpts from key USG Business Procedures Manual sections (USG Business Procedures Manual Chapter 8.6)

8.6 Budget Amendment – The budget amendment process is critical to ensuring that expenditures made during the course of the fiscal year are supported by budgets. Failure to amend budgets to meet changing circumstances may result in an over-expenditure of funds and lead to audit findings.

8.6.2 Revenue Adjustments – Throughout the fiscal year, various factors necessitate the adjustment of revenue estimates within the budget system. For example, if fall semester tuition were to exceed the original budget estimate, the institution would amend its budget to reflect the increased revenues. Revenue estimates are reviewed and amended on a quarterly basis to reflect projections of either increased or decreased revenue collections during the fiscal year.

8.6.3 Appropriation Amendments – The definitive expenditure authority within the financial system resides at the appropriation level; expenditure authority cannot be exceeded. At a minimum, allocations are in place for personal services and operating expenses.

NOTE:  See Georgia Tech’s “Budget Amendments” policy and the links in the next section for more information.

Mandatory Student Fee and Budget Review

Mandatory Student Fee and Budget Review
Type of Policy
Administrative
jbarber32 Mon, 07/09/2012 - 13:56
Last Revised
Review Date
Policy Owner
Institute Budget, Planning and Administration
Contact Name
Isabel Lynch
Contact Title
Budget Manager and Lead Analyst
Contact Email
isabel.lynch@business.gatech.edu
Reason for Policy

All mandatory fees (defined below) are annually approved by the Board of Regents (BOR), upon the recommendation of the President of Georgia Tech. This policy implements the following Board of Regents policy pertaining to mandatory student fees: Board of Regents Policy 7.3.2.1 – Mandatory Student Fees. The BOR policy requires that an advisory committee comprised of at least half students provide recommendations to the President on any new mandatory fee or any change to an existing mandatory fee. 

Policy Statement

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.
Scope

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

Resource Allocation and Overall Budget Process

Resource Allocation and Overall Budget Process
Type of Policy
Administrative
jbarber32 Wed, 06/27/2012 - 16:53
Policy Owner
Budget, Planning and Administration
Contact Name
Jamie Fernandes
Contact Title
Executive Director
Contact Email
jamie.fernandes@business.gatech.edu
Policy Statement

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. Early in the calendar 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‐wide priorities and an explanation of how the requests address their strategic plans. In most years the President's Office conducts meetings on unit budget priorities.

The attached flow chart summarizes the budget process, explained in more detail as follows.

Procedures

Allocation Schedule
The process for determining resource allocations for the following fiscal year generally follows the following schedule:

  • July through January
    • Institute Planning Activities
      The Office of the President, which includes the Provost, Executive Vice President for Research, and the Executive Vice President for Administration and Finance, review the Institute’s strategic plan and the related action plans and also review performance metrics of the Institute’s academic and administrative units. The President establishes unit operating and capital budget request guidelines, Institute operating budget request priorities, capital plan guidelines, operating budget allocation policy and guidelines, and capital plan priorities.
    • Unit Strategic Planning Activities
      Each Georgia Tech unit reviews its strategic plan, including strategies, objectives, and action plans accompanied by resource requirements. Also, each unit reviews its performance metrics from the previous fiscal year and projections for the current year, to be used in developing budget requests for the following year.
    • Preliminary Central Budget Analysis
      Offices of the Institute Planning and Resource Management (IPRM) team perform preliminary planning activities, including revenue estimates, preparation of fee and tuition recommendations, and determination of mandatory cost increases anticipated for the following fiscal year. The IPRM office coordinating this effort is the Office of Institute Budget Planning and Administration (IBPA, or “Budget Office”).
    • Tuition and Fee Recommendations
      The following four efforts proceed during the November through January time period related to tuition and fee review and approval:
      • IPRM staff prepare recommended graduate and undergraduate tuition recommendations on the basis of comparisons of Georgia Tech with its peer institutions. The primary office conducting this work is the Office of Institutional Research and Planning (IRP).
      • The Mandatory Student Fee Advisory Committee receives recommended fee changes from the following units partially funded through such these fees paid by all students: transportation, student activities, technology, student health, and athletics. The Committee recommends the fee levels to the President, who in turn recommends mandatory fees to the Board of Regents. See the separate policy describing this fee process, which is coordinated by the Budget Office.
      • Units that administer fees may recommend changes to these fees for the following year to the Budget Office for review. Except for the mandatory fees noted above, the President approves new fees or changes to existing fee levels. See the separate policy on non-mandatory fees.
      • Academic units may seek approval of tuition differentials for professional masters programs. These are submitted to the Budget Office for initial review and must be recommended by the President to the Board of Regents, which approves all tuition differentials. See the separate policy on tuition differentials.
  • January through March
    • Central Budget Analysis Activities
      Preliminary allocation figures and detailed budget instructions, including salary administration guidelines, are distributed to units. Revenue and institutional expense estimates are updated on the basis of preliminary information from the Board of Regents and the status of the state appropriations act. The General Assembly is scheduled to complete the appropriations act by the end of March each year.
    • Budget Request Activities
      College deans and other division heads prepare budget requests for the following fiscal year based on guidelines issued by the Budget Office. Requests must be linked to the Institute and unit strategic plans and must reference performance metrics to justify the requests. The requests could involve reallocation of existing resources or budget reduction plans, depending on the Institute’s expected budget status and the guidelines provided by the President. The Office of the President reviews the Institute budget situation with input from IPRM and holds budget meetings with the major division heads. The Office of the President establishes priorities for the Institute budget following consideration of unit requests and projections of resources available.
    • Preliminary Resource Allocation Decisions
      The Office of the President determines preliminary allocations and/or budget reductions based on expected resource level information available at the end of March. These decisions are made on the basis of a review of the Georgia Tech Strategic Plan and previous and projected performance data such as student enrollment.
  • April and May
    • Resource Allocation Activities
    • The Board of Regents is scheduled to approve the following at its April meeting:
      • Tuition rates
      • Mandatory fee rates (fees paid by all students such as student activities, student health, transportation, and athletics)
      • Budget allocations to Georgia Tech on the basis of the approved appropriations act.
      Budget letters with allocations and guidelines are issued to the campus units by IBPA per instructions from the Office of the President. These include pay raise guidelines based on the Legislature’s and the Board of Regents’ guidelines.
    • Detailed Budget Preparation
      Campus units prepare detailed “Original Budgets” within the resource allocation and pay raise guidelines. The tool used for this preparation is the Internet Budgeting Solution (IBS).
  • May and June
    • Final Budget Activities
      The individual unit budgets are reviewed and incorporated into the Institute's budget. This final Original Budget is sent to the Board of Regents.
    • Establishing and Executing Approved Original Budget
      The Budget Office works with campus units to establish final budgets for implementation in the new fiscal year.

Related Documents

Tuition Differentials & Studies Abroad Revenue

Tuition Differentials & Studies Abroad Revenue
Type of Policy
Administrative
jbarber32 Tue, 07/10/2012 - 10:13
Policy Owner
Budget, Planning and Administration
Contact Name
Lisa Godfrey
Contact Title
Dir-Institute & Capital Plan Budget Mgt
Contact Email
lisa.godfrey@business.gatech.edu
Reason for Policy

Units have the option to budget estimated Tuition Differentials and Study Abroad Program revenues for the current fiscal year in September. This allows use of funds before the actual revenues for Fall and Spring are known.

Policy Statement
  • 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.

Procedures

Forms

Year-End Deficits and Division Carry Forwards

Year-End Deficits and Division Carry Forwards
Type of Policy
Administrative
jbarber32 Tue, 07/10/2012 - 10:02
Last Revised
Review Date
Policy Owner
Institute Budget, Planning and Administration
Contact Name
Lisa Godfrey
Contact Title
Dir-Institute & Capital Plan Budget Mgt
Contact Email
lisa.godfrey@business.gatech.edu
Reason for Policy

 

This policy establishes procedures for handling year-end deficits or surpluses incurred by Georgia Tech divisions.  The policy pertains to Resident Instruction General Operations funds budgeted in the following fund numbers: 10010 (State Appropriations), 10015 (Indirect Cost Recovery), 10500 (Tuition), and 10600 (Other General).

Policy Statement

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.

Procedures

Rules and Guidelines
Division Deficits
If, during the fiscal year, a division becomes aware of a deficit situation, the Budget Office should be notified by the division head or chief division budget director as soon as possible. The Assistant Vice President, Institute Budget Planning and Administration will inform the administration of the situation. In some cases, operating deficits may be allowed by the administration due to special circumstances. After the fiscal year closes, the Budget Office will conduct an analysis of budget to actual total expenses. If any division has an unapproved net operating deficit, the division’s current fiscal year budget will be reduced on a one-time basis by the year-end deficit amount in the first budget amendment or an approved re-payment plan will be established.

Division Carry Forwards
If a surplus or excess budget is anticipated for year end, and the college or other division would like those funds returned in the next fiscal year, an online request form must be completed (http://status.budgets.gatech.edu/CarryForward/Index) on or before April 15th (or the next business day if the 15th falls on a weekend). In the request, the division should explain:

  • the explanation of the source of funding
  • the projected amount to be carried forward
  • an explanation of why the funds will be available, and
  • the purpose for which those funds will be used in the next fiscal year.

These will be reviewed by the Assistant Vice President, Institute Budget Planning and Administration, and where appropriate, by executive staff with a final decision to be communicated to the division by May 15th. Requests submitted by individual departments, programs, centers, or schools will not be accepted except for tuition differential or studies abroad 60/40 split of summer semester revenues.

If, prior to June 1st, the division’s estimate of the year-end surplus changes, the Carry Forward Request Editing form (http://status.budgets.gatech.edu/CarryForward/Index) must be used to update the request and notify the Budget Office.  No revisions to carry forward requests will be accepted after May 31st.

The division should keep in mind that expenses funded from carry forward funds are subject to audit. Documentation should be kept to verify that purchases were in accordance with the purpose originally stated.

Approval is subject to the Institute’s generation of an overall surplus of at least the approved amount. These are one-time funds that will not be built into the unit’s permanent base budget. If the unit’s net year-end balance for General Operations is less than the amount requested, only the year-end balance may be budgeted in the upcoming fiscal year. If the net year-end balance exceeds the amount requested, the maximum amount approved per the request may be budgeted in the upcoming fiscal year. The Budget Office will verify final carry-forward amounts with the units in the first budget amendment of the new fiscal year.

 

Policy History
Revision Date Author Description
April 2015 Budget Office Clarification of language/added link to online form

Equipment Management

Equipment Management jbarber32 Tue, 06/12/2012 - 15:19

Disposal of Property

Disposal of Property
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 15:21
Policy No
7.9
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Director of Insurance & Assets
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This procedure explains how Georgia Tech equipment is retired by the Property Control and Logistics (Surplus).

Policy Statement

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.

 

Procedures

Workday is used to report surplus items to the Logistics (Surplus) Procurement & Business Services. A disposal is considered to be the removal of equipment from the custody and accountability of Georgia Tech.

If a Cost Center “disposes” of equipment by providing it for the use of another university or State Agency, this activity is considered to be a transfer, rather than a disposal, of the equipment. Please refer to "equipment transfer within georgia tech" for information regarding the transfer of equipment.

Policy History
Revision Date Author Description
11-2020 Property Control Editorial updates to align with Workday
08-2013 Property Control Update to policy

Equipment Transfer (within Georgia Tech)

Equipment Transfer (within Georgia Tech)
Type of Policy
Administrative
jbarber32 Thu, 06/14/2012 - 12:16
Policy No
7.2
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Director of Insurance & Assets
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This section explains the procedures for updating the Asset Management System when equipment (asset) is transferred from one Institute department to another.

Policy Statement

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.
Policy History
Revision Date Author Description
11-2020 Property Control Updated to align with Workday
08-2013 Property Control Update to policy

Fabrication of Property

Fabrication of Property
Type of Policy
Administrative
jbarber32 Thu, 06/14/2012 - 12:35
Policy No
7.5
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Director of Insurance & Assets
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This procedure outlines the accounting process for fabricated equipment.

Policy Terms

Fabricated Equipment

Fabricated equipment is defined as any piece of equipment with a value of $3,000 or greater, and with a useful life of at least  three years, which has been assembled from parts purchased with supply or non-inventory equipment, Spend Category (SC714127 Supplies and Materials – Fabricated Equipment.  This includes items purchased via a PCARD.

All Georgia Tech equipment that is assembled from parts which were not purchased under an equipment account code must be properly recorded as inventoried equipment (account range SC 743*** and value of $3,000 to $4,999.99) or capitalized equipment (account range SC 84**** and value exceeding $5,000.00) once completed.

Procedures

Instructions for completion of the Fabricated Form:

  1. Enter the scientific name of the equipment, if applicable. Enter the common name of the equipment. Enter which name should be placed in the description field of the inventory records. This is the name, which will appear on equipment reports to the department.
  2. Check if the title to the equipment belongs to the state or another agency.
  3. Enter the name and telephone number of the equipment custodian for the Cost Center.
  4. Enter the various cost components of the equipment. This includes materials purchased, external labor cost, transportation and any other costs involved. Enter the total cost.
  5. Check whether the above costs are for a new item of equipment or is added value (upgrade) to an existing item of equipment.
  6. Enter Georgia Tech CAE Tag number of existing equipment if item is an upgrade.
  7. If federal funds were involved in the construction of the equipment, the amount must be identified along with the sponsoring agency.
  8. Enter the name of the building, the room number and the department, which has physical custody of the equipment.
  9. The form must be signed and dated by the Cost Center Head or his/her designee. Also, enter the phone number of the Cost Center Head or designee.
  10. Forward completed form with supporting documentation and completed Cost Transfer Form to Property Control via ServiceNow. A Cost Transfer Form must be completed in order to correct the Spend Categories.
Policy History

Revision Date

Author

Description

11-2020

Property Control

Updated to align with Workday

06-2008 Property Control New Policy

General Information

General Information
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 17:05
Policy No
7.1
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Director of Insurance & Assets
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This policy provides general information regarding the function and responsibilities for asset management at the Georgia Institute of Technology (Institute). Management of assets is administered by Property Control of the Procurement & Business Services unit.

Policy Statement

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.

Procedures

Threshold Requirements
In accordance with state & Board of Regents guidelines, the current threshold for which an inventory of an asset is maintained is $3000 with a life expectancy of one or more years. Items which do not meet the current threshold may be maintained on the inventory to meet contractual requirements, or to effect proper management of small and/or unique groups of movable personal property. The following items, are required to be inventory controlled without regard to the $3000 minimum cost:

  1. Books and periodicals (Total dollar value shall be capitalized each year)
  2. Firearms
  3. Vehicles

Property Control Department responsibilities:

  1. To be accountable for all equipment under its control as mandated by state and federal regulations. Property Coordinators must complete the “Asset Management for Property Coordinators” training. Click here to learn more.
  2. To provide internal control of capital assets, including proof of existence, ownership, location and proper valuation.
  3. To provide uniform procedures for furnishing information needed for effective analysis and control of capital expenditures.
  4. To provide a database of inventory information to meet equipment management/reporting needs of the Institute.

Unit Head Responsibilities
Colleges and Cost Centers are accountable for all equipment under their control. They have an important role in the maintenance of an accurate, up-to-date inventory system. The custodianship of property purchased by or assigned to a Cost Center is the responsibility of the Cost Center unit head. The responsibility includes ensuring that the physical security is maintained over all property; tagging items valued at $3000 or more; preparing property reports as required; and documenting and reporting all acquisitions, disposals and changes in the status of unit equipment. Fulfillment of these responsibilities on behalf of the Cost Center unit head may be delegated, but the ultimate responsibility remains with the Cost Center unit head. Adherence to the following guidelines helps to ensure that Cost Center inventory records are as accurate and complete as possible.

  1. Correct coding of purchase requisitions and purchase orders. Correct coding by Cost Centers during purchase requisition avoids unnecessary and time consuming corrections after receipt of the equipment.
  2. Proper coding of capital asset expenditures. Equipment purchases must be coded with a SC714400, SC743XXX, SC744XXX, SC841XXX, SC843XXX expenditure account code. Use of an account code other than these increases the possibility that the asset will be omitted from the inventory records.

Benefits of Inventory Systems
The perpetual inventory system provides the Institute with the following key benefits:

  1. Equipment control and accountability through a comprehensive campus-wide inventory system.
  2. Improved equipment utilization through control and identification of capital assets.
  3. Database to meet Institute, state and federal grant, and audit requirements.
  4. Database to meet requirements of proper risk management and provide basis for identifying equipment for the State's self-insurance program.
  5. Basis for management to project and budget future capital replacement requirements.

Procedures
The vast majority of capital asset acquisitions are generated by purchase requisition. Colleges and Cost Centers authorize equipment purchases by initiating purchase requisitions through Workday.

When the equipment is received, the Unit's Property Coordinator enters into the web page the pertinent physical asset information including the “Tag Number” in to Workday.

The asset accounting records are selected from the General Ledger based on the spend category. Property Control makes any corrections to an asset record to accurately reflect the description, cost and other pertinent accounting information. Assets, including Federal Surplust items, are recorded at actual cost.

A report of untagged items is extracted by Property Control. If a matching record is not found, Property Control will notify the Unit via e-mail. The Unit will have 5-days to enter the asset information into the Workday. The cycle is repeated again to match newly entered information.

Property Control is responsible for record retention and ensuring that all taggable assets are identified through internal controls.

Policy History
Revision Date Author Description
12/2020 Property Control Terminology alignment with Workday
08-2013 Property Control Update to policy

Gift of Property

Gift of Property
Type of Policy
Administrative
jbarber32 Thu, 06/14/2012 - 12:53
Policy No
7.8
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Director of Insurance, Claims and Property Control
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This procedure outlines the accounting for gifts of equipment to Georgia Tech.

Policy Statement

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).

Procedures

 

  1. Contact Gift Accounting in the Georgia Tech Office of Development to notify them of the proposed gift. They will guide you through the process to receive the gift. Be aware that they will want to know the nature of the gift, the appraised value of the gift, and any written conditions or provisions, which the donor is attaching to the gift.
  2. The Office of Development will notify the Property Control Department when Georgia Tech officially accepts the gift.
  3. Once officially accepted, Property Control will register the asset in Workday and enter the required information into the Asset Management System. Once completed, the Property Coodinator for the receiving Cost Center should tag the equipment.  for the receiving unit should tag the equipment item and enter the required information into the Asset Management System.

 

Policy History
Revision Date Author Description
11-2020 Insurance and Claims Editorial update for Workday
08-2016 Insurance and Claims Content Update
08-2013 Property Control Update to policy

 

 

Home or Off-campus Use of Property

Home or Off-campus Use of Property
Type of Policy
Administrative
jbarber32 Thu, 06/14/2012 - 12:27
Policy No
7.4
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Dir. of Insurance & Assets
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This policy outlines the steps that should be followed to use equipment off campus at a remote site or an employee's home.

Policy Statement

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.

 

Procedures

Individuals who receive college/Cost Center approval to temporarily remove equipment from the campus must complete an Equipment Loan Agreement Form.

Instructions for completion of the form:

  1. Print name of person using the equipment.
  2. Enter the location (address) where the equipment will be used.
  3. Enter the reason for using the equipment off-campus.
  4. Enter Georgia Tech tag number.
  5. Enter a short description of the asset, including serial number, model and replacement cost.
  6. Sign Form and enter telephone number.
  7. Enter Employee ID Number.
  8. Print Cost Center name and have Dean/Director/Cost Center Head sign and date form. The form should be retained in the unit for audit and insurance recovery purposes. Unit staff should contact Georgia Tech Insurance & Claims Mgt. (4-3483) to obtain information on how to insure the property off-campus.
  9. The Cost Center Head or his/her designee (Property Coordinator) must update Workday to indicate that the equipment item(s) with a Georgia Tech asset tag is now off-campus.
  10. When the equipment is returned to campus, the Cost Center Head or his/her designee (Property Coordinator) must update Workday to indicate that the equipment item(s) with a Georgia Tech asset tag is no longer off-campus.
Policy History
Revision Date Author Description
06-2021 Property Control Editorial Updates
11-2020 Property Control Editorial update for Workday alignment
08-2013 Property Control Update to policy

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Stolen Property

Stolen Property
Type of Policy
Administrative
jbarber32 Thu, 06/14/2012 - 12:50
Policy No
7.7
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Dir. of Insurance & Assets
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This procedure outlines the steps to take to remove a stolen item from the Institute's inventory.

Policy Statement

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).

Procedures

If a Cost Center has an equipment theft, the property coordinator should contact the campus police at ext. 4-2500 to obtain a report of the incident prepared by an officer. Upon receipt of the GTPD incident report, the Cost Center Property Coordinator should notify Property Control via ServiceNow in order to retire the stolen equipment in Workday. No further action is required by the department.

The Incident Report filed with the police department must contain the following information:

  1. GA Tech asset tag number of the equipment.
  2. Serial number and model number of the equipment.
  3. Contact person and telephone number.
  4. Location (building name and room number of equipment).
Policy History
Revision Date Author Description
11-2020 Insurane and Claims Editorial update for Workday alignment
08-2016 Insurance and Claims Minor content revision
08-2013 Property Control Update to policy

 

 

Trade-in of Property

Trade-in of Property
Type of Policy
Administrative
jbarber32 Thu, 06/14/2012 - 12:40
Policy No
7.6
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Dir. of Insurance & Assets
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This procedure outlines the process for accounting for equipment trade ins.

Policy Statement

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.

Procedures

A Trade-In Authorization Request, must be completed and forwarded to Purchasing via ServiceNow prior to submitting a requisition when a piece of equipment is to be traded in. Purchasing will forward a copy of the completed form to Property Control for approval. Once approved, the Cost Center will attache the form to the Workday Requisition. No further action is required by the requesting department except to coordinate the transfer of the old item and the receipt of the new item.
Instructions for completion of the form:

  1. Enter the name of the Cost Center initiating the trade-in.
  2. Enter the Georgia Tech asset tag number of the equipment.
  3. Enter a short description of the equipment, the serial number and the model number.
  4. Enter the condition of the equipment.
  5. Enter the acquisition date and original cost of the equipment, if known.
  6. Enter the amount the vendor is deducting from the cost of the new equipment for the equipment traded in.
  7. Enter a short description of the equipment being purchased, and the price of the new equipment.
  8. Enter the Document Number and Account Number used for the purchase of the new equipment.
  9. The form must be signed and dated by the Cost Center Head or his/her designee.
  10. Send the completed form to Purchasing via ServiceNow.
Policy History
Revision Date Author Description
11-2020 Property Control Editorial updates to align with Workday
08-2013 Property Control Update to policy

Transfer Property (to entities outside GT)

Transfer Property (to entities outside GT)
Type of Policy
Administrative
jbarber32 Thu, 06/14/2012 - 12:22
Policy No
7.3
Last Revised
Review Date
Policy Owner
Property Control
Contact Name
Frederick Trotter
Contact Title
Director of Insurance & Assets
Contact Email
frederick.trotter@business.gatech.edu
Reason for Policy

This procedure explains how to transfer Georgia Tech equipment to other State Agencies.

Policy Statement

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.

Procedures

If a Cost Center has an item to transfer to another state agency, the property coordinator should follow the procedure listed below to complete the transfer.

  1. Submit a written request to  Property Control and Logistics (Surplus) via ServiceNow.
  2. The request should describe the equipment, list the tag number and model number and the location (building and room number) of the equipment.
  3. The request should state name of state agency to receive the equipment.
  4. The request must be approved by the Cost Center Head or his/her designee.

When a request is received that includes all the information noted above, the Manager of the Property Control will coordinate with others at the Institute and the state Department of Administrative Services (DOAS) to facilitate the transfer. Note that approval/contact is required with others at the Institute, DOAS, and the receiving state agency to complete this process. Some time will be required to get all the approvals needed. Once the proper form/authorizations are received from all parties, the transferring Cost Center will receive written authorization from Property Control to complete the transfer.

Policy History
Revision Date Author Description
November 2020 Insurance, Claims, Property Control Editorial updates for Workday
July 2016 Insurance, Claims, Property Control Minor edits
08-2013 Property Control Update to policy

 

 

Foundation Funds

Foundation Funds jbarber32 Fri, 06/08/2012 - 14:36

Expenditure of GTF Funds

Expenditure of GTF Funds
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 15:19
Policy No
11.2.2
Effective Date
Last Revised
Review Date
Policy Owner
Georgia Tech Foundation
Contact Name
Mark DeLorenzo
Contact Title
GTF Chief Financial Officer and Corporate Secretary
Contact Email
mark.delorenzo@gtf.gatech.edu
Procedures

Signature Approval
As with the use of any GIT funds, faculty and staff are to use prudence and good business judgment with the use of GTF funds. Unit management is responsible for assuring the funds are used properly and has the responsibility and accountability for the use of funds consistent with all gift requirements, GIT and GTF policies and procedures, and applicable state and federal laws.
Signature approval of financial documents (purchase orders, travel requests, and direct pay vouchers, etc.) is necessary to indicate that an expenditure of GTF funds is consistent with any applicable restrictions imposed on the specific funds being used and with the purpose and mission of the Institute, and that adequate funds are available in the designated account(s). The approver must be an authorized individual who is knowledgeable of account restrictions, GTF and GIT Gift Accounting procedures.

Expenditures processed through GIT
Business transactions financed by GTF funds are to be processed through GIT in accordance with general business practices and processes. GIT purchasing and expenditure policies and procedures are to be used for these purposes. Expenditures supporting Institute activities that are not permitted with the use of State funds, such as entertainment or special events, certain business meetings, membership dues and some employee moving expenses may be paid directly by GTF.  Exceptions to this policy may be requested by the unit’s school chair, dean or vice provost, with the approval of the provost, executive vice president for administration and finance or the president.  Exception requests need to be preauthorized and must be obtained using a Foundation Expenditure Exception Request Form (see links to the Word and PDF forms below). Expenditure documents for these expenses are to be submitted directly to the Foundation for processing.

Expenditures processed through the Georgia Tech Foundation
Requests for direct expenditures to be made by the Foundation are to be submitted on the Georgia Tech Foundation Check Request form and be supported with appropriate documentation, itemized receipts and original invoices. Signature approval will include a certification by the approver that the expenditure is for Institute business and consistent with the purpose and conditions of the underlying gift. Invoices and requests for reimbursement should be submitted on a timely basis and within the fiscal year in which the expenses were incurred. The check request with documentation is sent to GTF at Mail Code 0182.

Unless permissible for payment by GIT under GIT policies, the following types of transactions may be submitted for direct payment by GTF. All other transactions must be processed through GIT.

  1. Business Meetings and Events
    See "Business and Finance 5.2.1.9 Procurement of Group Meals for Employees, Students, and Official Visitors"
  2. Employee Moving Expenses
    See also refer to Personnel

    6.15 Moving expense payment for New Academic Faculty
    6.16 Relocation Policy for New Faculty, Staff or Researchers
    6.21 Relocation Expenses (Intrastate)

  3. Entertainment and Special Events
  4. Facility Rental
  5. Membership Dues
  6. Other Transactions with approved Foundation Expenditure Exception Request form attached.

Project Expenditure Reports
Project expenditure reports generated by reflect financial activity recorded to both GIT and GTF records. The transaction details and amount of GT Foundation direct expenditures will be reported to the Controller’s Office and GTRI Accounting on a regular basis for entry into the GIT and GTRI accounting system as "Other Memo" expenditures to provide account managers with financial reports that reflect total project costs. Project expenditure and budget reports for these accounts are available on the Web.

Georgia Tech Foundation Account Numbers

Georgia Tech Foundation Account Numbers
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:57
Policy No
3.9.1
Effective Date
Review Date
Contact Name
Policy Statement

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.

Procedures

The Office of Grants and Contracts Accounting is 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 completed GTF Gift Request Form from the Foundation.

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 Office of Grants and Contracts Accounting, or to GTRI Accounting for awards to GTRI units, 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 (back of the Form) using the spaces provided The authorization should 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 Office of Grants and Contracts Accounting 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 by G&C or GTRI Accounting of the GTF Foundation account number, the GIT sponsored project account number and center numbers, which have been assigned to the project. This notification will also identify the available funding (budget), and any restrictions associated with the use of funds that are reported by the Foundation.

Budgetary Changes
Changes in a sponsored account budget will follow the same procedures as those for changes to other sponsored project budgets. GTF will notify G&C or GTRI Accounting of any additions or reductions in funding. Upon completion of processing the required changes, the managing department will be notified of the revised budget.

Sub-Projects
Sub-Projects that are required by the managing units should be established using Grants and Contracts: Establishing Sub-Projects.

Gifts

Gifts jbarber32 Fri, 06/08/2012 - 16:24

Distinction Between Gifts and Sponsored Activities

Distinction Between Gifts and Sponsored Activities
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 16:37
Policy No
11.1.2
Effective Date
Last Revised
Review Date
Policy Owner
Georgia Tech Foundation
Contact Name
Mark DeLorenzo
Contact Title
GTF Chief Financial Officer and Corporate Secretary
Contact Email
mark.delorenzo@gtf.gatech.edu
Reason for Policy

Contributions to GIT must be distinguished from private support, which creates a contractual obligation on the part of the Institute. Generally, funds received for the benefit of the Institute may be classified as "Gifts", "Grants and Sponsored Agreements" or "Contracts" as described below.

Procedures

Gifts
Gifts represent contributions made for which the provider receives no direct benefit and requires nothing in exchange beyond a general assurance that the intent of the contribution be honored. Contributions which are considered "Gifts" should be made to Georgia Tech Foundation, Inc. and accepted and processed as provided for in this document. The following guidelines are to be used to determine if a proposal will result in a "Gift" to the Institute: Key indicators include:

  • No contractual requirements are imposed
  • The award is irrevocable
  • No period of performance is specified
  • No formal financial reporting to donor is required
  • No requirement to return unexpended funds
  • Funds are donative in nature and bestowed voluntarily without expectation

Grants and Sponsored Agreements
Grants and Sponsored Agreements Accepted by Georgia Tech Foundation
Grants and Sponsored Agreements represent awards that have a defined activity to be undertaken with the support provided, with an outcome that either directly benefits the provider or a public purpose. Grants and Sponsored Agreements, or contributions made for a specific project of the Institute, may be received and accepted by GTF if:

  1. the grant agreement names GTF as grantee, and
  2. the obligations of the Foundation under the grant agreement are limited to
    • expenditure of the funds for the described purpose at the request of GIT, and
    • reporting on the expenditure of funds to the donor, but not the status or progress of any project.

GIT procedures require that Grants and Sponsored Agreements awarded to GTF be administered by Grants and Contracts Accounting (or GTRI Accounting for awards to units of GTRI) in the same manner as other sponsored projects. GTF will not accept funds sponsored directly or indirectly by the Federal Government.

Grants and Sponsored Agreements Accepted by Georgia Institute of Technology
If the Grant or Sponsored Agreement is sponsored directly or indirectly by the Federal Government, requires cost-sharing, or requires support in excess of the grant amount, the Grant or Sponsored Agreement must be awarded to Georgia Institute of Technology (GIT) and administered by the Office of Contract Administration. The following guidelines will determine whether a proposal would result in a Grant or Sponsored Agreement to GIT:

  • The award carries terms on the use of funds
  • The sponsor may retain authority to withhold funds pending satisfactory completion of project objectives
  • Unused funds must be returned to the grantor unless waived, in writing, by the sponsor
  • Formal financial accounting may be required
  • Periodic payments may be made by the sponsor
  • Generally, subject to specific restrictions and contingencies

Contracts and Other Agreements with Special Term and conditions.
The acceptance of funds under circumstances which entitle the sponsor to deliverables and/or intellectual property rights, or under which anything of value is conveyed to the sponsor, will create a "Contract" which must be processed through the Office of Contract Administration. Contracts can not be processed through the Georgia Tech Foundation. The operating procedures of the Office of Contract Administration include features designed to address these requirements, and assure compliance with the terms of such agreements. All contracts must be made with the Georgia Tech Research Corporation (Georgia Tech Applied Research Corporation for GTRI contracts) and administered by the Office of Contract Administration. The following guidelines are suggested for determining whether a proposal will result in a "Contract" with the Institute:

  • The award is subject to formal conditions outlined in a contractual instrument signed by both parties
  • The sponsor often places more restrictions upon expenditures allowed in the pursuit of the activity
  • Normally involves the generation of some tangible product or service
  • Financing may be on a cost-reimbursable basis, advance funding, or lump-sum payments as work progresses
  • Sponsor requires periodic progress reports and may include invention, royalty, financial or equipment inventory reports
  • A closing audit is sometimes required

Facilities & Administrative Costs Associated with Account Management

Facilities & Administrative Costs Associated with Account Management
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 16:45
Policy No
11.1.2.1
Effective Date
Review Date
Policy Statement

Facilities & Administrative (Indirect) costs incurred to manage gifts to the Institute are supported by the Institute budget and are not charged to the gift accounts. In recognition of the additional support services required to manage sponsored projects and contracts managed through the Office of Contract Administration, Facilities & Administrative (Indirect) costs are charged to the project operating costs. In certain instances, requests to waive charges for Facilities & Administrative (Indirect) costs are considered by the Vice-Provost of Research according to OSP Policies & Procedures. Refer policy no 45 of this manual.

Gift Processing

Gift Processing
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 16:58
Policy No
11.1.3
Effective Date
Last Revised
Review Date
Policy Owner
Development, Office of
Contact Name
Pat Barton
Contact Title
Director
Contact Email
pat.barton@dev.gatech.edu
Procedures

Gifts of Cash or Securities
All checks or securities intended as donations to Georgia Tech and payable to Georgia Tech Foundation, Inc. should be forwarded with the original letter from the donor and a completed GTF Gift Request Form, if applicable promptly to the Georgia Tech Foundation, Inc. All checks or securities payable to the Institute should also be forwarded to the Georgia Tech Foundation, Inc., which will then process them for deposit by the Institute. Contributions intended for the Foundation but made payable to the Institute or one of its units may be transferred to the Foundation on receipt of written documentation of the donor's intent. 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.

Contributions of securities should also be made to the Georgia Tech Foundation, Inc., either by transfer via DTC (Depository Trust Co.) or transfer of the actual stock certificates to the Georgia Tech Foundation, Inc. Transfer via DTC is the most efficient and preferred method of handling transfers of securities. Questions pertaining to the transfer of securities should be directed to the Georgia Tech Foundation Accounting Office.

In-Kind Gifts of Equipment & other In-Kind Contributions
Gifts of equipment and in-kind contributions are more effectively handled by the Institute. Such gifts include donations of: (a) instructional and research equipment and (b) books and other library materials. The Office of Development’s Gift Accounting Office should receive all documents regarding gifts of equipment and in-kind contributions, including the original letter of transmittal, as well as tax forms and other documents requiring signatures.

The Board of Regents (BOR) has delegated the acceptance of gifts of property (equipment and in-kind contributions) to the President of the Institute who has in turn delegated that responsibility to the Executive Vice President for Administration and Finance.

Donations of in-kind gifts, such as instructional and research equipment, library books, and other library materials, should be made to the Georgia Institute of Technology. The department receiving the gift is responsible for forwarding the gift information to Office of Development’s Gift Accounting Office using the In-kind Gift Report Form.

The Office of Development’s Gift Accounting Office will record the gift information in their database, acknowledge the gift and forward the gift information to the Business Office and the Capital Asset Accounting Services for recording in their database. The department/campus unit receiving the gift is responsible for ensuring that the entire gift pledged is actually received. If, for some reason, a portion of the gift is not received, the department should notify Office of Development’s Gift Accounting Office and Accounting Services so that inventory valuation records may be updated reflecting the revised value of the gift. Accounting Services will notify the President's Office, Administration and Finance.

NOTE: Gifts of Visual Art are governed by Policy No. xxxxxx (# to be assigned, when policy written)

Gifts of Real Estate
Gifts of real estate should generally be made to GT Foundation. The Real Estate Committee of the Foundation will examine any proposed gift of real estate to determine whether there are any conditions that may adversely affect the Foundation's ability to market the property. The Committee usually requires an environmental audit (including inspections for soil and water contamination, asbestos and other hazardous materials or substances) and a title examination to be conducted prior to acceptance of the gift. For more information about accepting a donation of real estate, contact Gift Planning in the Office of Development at (404) 894-8812.

Gift Valuation
Federal income tax regulations require that a donor obtain a written appraisal to substantiate gifts of property worth $5,000 or more. Gifts of property will generally be valued based on the donor's appraisal.

Solicitation of Gifts

Solicitation of Gifts
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 16:18
Policy No
11.1.1
Effective Date
Last Revised
Review Date
Policy Owner
Office of Development
Contact Name
Pat Barton
Contact Title
Director of Gift Accounting
Contact Email
pat.barton@dev.gatech.edu
Policy Statement

Philanthropic support from private sources, i.e. individuals, corporations, foundations, and other organizations, is becoming increasingly important to the continuation of the quality instruction, research, and service functions that are a trademark of the Georgia Institute of Technology. The Office of Development is charged to secure private support to meet the Institute’s strategic goals and objectives.

All Vice Presidents, Deans, School Chairs, Department Directors, faculty, and staff initiating efforts to obtain gifts or private, non-contractual grants must coordinate their efforts with the Office of Development through their respective assigned Development Officer or, where none is assigned, through the Office of the Vice President for Development. Such coordination must begin before making formal contact with a new funding source and will continue on a regular basis after initial contact is made.

Prior to the formal submission of written proposals to private funding sources, the submission should be cleared through the Office of Development.

The Office of Development is responsible to ensure proper acceptance of gifts to the Institute and its affiliated organizations that receive private gifts for the benefit of Georgia Tech, including the Georgia Tech Foundation, Inc. and the Alexander-Tharpe Fund. Private gifts include gifts of equipment and other property as well as cash and securities. Acceptance of most gifts will be routine; however, gifts which may obligate the Institute beyond the approved budget or program of a College, School, or Department should be discussed in advance with the Vice President for Development. The following are NOT considered charitable gifts and are not to be accepted as such.

  • Advertising revenue;
  • Contract revenues;
  • Contributed services;
  • Gifts of intellectual property rights;
  • Governmental funds, whether local, state (including state matching grants), federal or foreign;
  • Investment earnings on gifts, even if accrued during the reporting period;
  • Sale of merchandise;
  • Software licenses where the Institute is exempted from paying annual license or maintenance fees;
  • Tuition payments.

All gifts to Georgia Tech and its affiliated organizations will be acknowledged by the Vice President for Development or his designee. Other acknowledgments are strongly encouraged. Copies of receipts/acknowledgments will be posted in the Donor Database System.

It has been the policy to encourage donors to make gifts designated for academic purposes, excluding gifts of equipment and in-kind contributions, to the Georgia Tech Foundation, Inc., rather than to the Institute proper. Therefore, anyone soliciting support for the programs at the Institute should request that the donation be made to Georgia Tech Foundation, Inc. rather than to the Institute. Gifts of equipment and in-kind contributions are more effectively handled by the Institute. Such gifts include donations of: (a) instructional and research equipment; and (b) books and other library materials. The Gift Accounting Office in the Office of Development should receive all documents regarding gifts of equipment and in-kind contributions, including the original letter of transmittal, as well as tax forms and other documents requiring signatures. In addition, the Gift Accounting Office in the Office of Development should be informed when a GT unit accepts a software license for stewardship and reporting purposes, even when the software license does not qualify as a gift under IRS regulations or CASE (Council for the Advancement and Support of Educations) standards.

Setting up Accounts for GTF Funds

Setting up Accounts for GTF Funds
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 16:05
Policy No
11.2.1
Effective Date
Last Revised
Review Date
Policy Owner
GT Foundation, Inc
Contact Name
Mark DeLorenzo
Contact Title
GTF Chief Financial Officer and Corporate Secretary
Contact Email
mark.delorenzo@gtf.gatech.edu
Policy Statement

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.

Procedures

Account Establishment
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, initial dollar amount, restricted use of the funds, and any effective or expiration dates for the funds to the Unit and to the Controller’s Office or to GTRI Accounting for awards to GTRI units using the GTF Gift Request 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 Controller's Office and GTRI Accounting are charged with the responsibility of establishing sponsored projects in the GIT Chart of Accounts, the Grants and Contracts accounting system and GTRI accounting subsystems, and the preparation and maintenance of accounting records and financial reports for these accounts. Upon receipt of account information from GTF, the Controller's Office determines the type of account to establish and assigns a sponsored account number and general ledger account center number within the numbers assigned for the unit requesting the account. The account number is then submitted electronically for review and update to the Chart of Accounts. The budget for the project will be established in the "Other Memo" category unless specific information is provided on the second page of the Form in detail.

Unit Notification
The unit responsible for the account and GTF are notified by the Controller's Office or GTRI Accounting of the sponsored account and center numbers, which have been assigned to the project, the available funding (budget), and of any restrictions associated with the use of funds.

Budgetary Changes
Changes in an account budget will follow the same procedures as those for changes to other sponsored project budgets. GTF will notify the Controller's Office or GTRI Accounting of any additions or reductions in funding.

Sub-Projects
Sub-Projects that are required by the managing units should be established using the procedure in: "Establishing Sponsored Sub-Project Numbers".

Using GTF Funds - General Policy Statement

Using GTF Funds - General Policy Statement
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 14:37
Policy No
11.2
Effective Date
Last Revised
Review Date
Policy Owner
Georgia Tech Foundation
Contact Name
Mark DeLorenzo
Contact Title
GTF Chief Financial Officer and Corporate Secretary
Contact Email
mark.delorenzo@gtf.gatech.edu
Policy Statement

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.

GTRC & GTARC

GTRC & GTARC kcross8 Tue, 04/06/2021 - 10:07

Expenditures of GTRC and GTARC Unit Allocation and Grant Funds

Expenditures of GTRC and GTARC Unit Allocation and Grant Funds kcross8 Tue, 04/06/2021 - 10:15
Policy Owner
Georgia Tech Research Corp. (GTRC)
Contact Name
Neil Vitro
Contact Title
Interim Director, GTRC & GTARC Accounting and Finance
Contact Email
neil.vitro@gtrc.gatech.edu
Policy Statement

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.

Procedures

2.0 Procedures 

2.1 Signature approval
As with the use of any GIT funds, faculty and staff are to use prudence and good business judgment when expending Research Corporation funds. Unit management is responsible for assuring the funds are used properly and has the responsibility and accountability for the use of funds consistent with all GIT and Research Corporation policies and procedures and applicable state and federal laws. Signature approval of the Expenditure Request Form submitted to the Research Corporations is necessary to indicate that the expenditure is consistent with any applicable restrictions imposed on the specific fund being used, in accordance with the purpose and mission of the Institute, and that adequate funds are available in the designated unit allocation or grant account to fund the expenditure. The approver must be the Dean, Vice President, or Director for the unit to which the allocation or grant was made or their authorized signature delegate.  Please see link below for Signature Authority Delegation Form that must be completed to delegate signature authority.

2.1 Expenditures processed through GIT
With the exception of expenses listed in section 2.2 below, business transactions financed by Research Corporation funds are to be processed through GIT in accordance with GIT policies and procedures using GIT systems. GIT procurement policies may be found at: https://policylibrary.gatech.edu/business-finance/purchasing-and-accounts-payable.

2.2 Expenditures processed through the Research Corporations
Unless permissible for payment by GIT under GIT policies, the following types of transactions may be submitted for direct payment by the Research Corporations using the GTRC & GTARC Unit Allocation and Grant Expenditure Request Form (see link to form below). All other transactions must be processed through GIT.

  1. Business Meetings and Events in support of the GIT research enterprise.  Please reference the following GIT policy: Business and Finance 5.2.1.9 Procurement of Group Meals for Employees, Students, and Official Visitors 
  2. Employee Moving Expenses in support of the GIT research enterprise.  Please reference the following GIT policy: http://policylibrary.gatech.edu/academic-affairs/relocation-assistance-policy.
  3. Membership Dues and Conference Registrations in support of the GIT research enterprise.
  4. Reimbursement of Tuition and Fees for GT employees.  Please reference the following GIT policy: Employee Benefits & Services | Policy Library | Georgia Institute of Technology | Atlanta, GA (gatech.edu)

2.3 Exceptions to expenditure process policies

Any exceptions to sections 2.1 and 2.2 of this policy must be approved by the Executive Vice President for Research in writing prior to the expenditure of funds.

2.4 Project expenditure reports
Project expenditure reports generated by the Controller’s Office and GTRI Accounting reflect financial activity recorded to both GIT and Research Corporation records. The transaction details and amount of expenditures paid directly by the Research Corporations will be reported to the GIT Controller’s Office and GTRI Accounting on a regular basis for entry into the GIT and GTRI accounting systems as "Other Memo" expenditures to provide account managers with financial reports that reflect total project costs. Project budget and expenditure reports for these accounts are available in the Workday financial system.

Grants & Contracts Accounting

Grants & Contracts Accounting jbarber32 Mon, 06/04/2012 - 15:59

Allowable Expenses

Allowable Expenses
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:36
Policy No
3.4
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

Direct charges to sponsored projects are allowable if they can be identified specifically to a particular sponsored project and are not treated as a facility or administrative (F&A) cost item. F&A cost items, such as office supplies, departmental administration, facility costs, and general purpose equipment are charged to sponsored projects via the appropriate F&A rate. Typical costs charged directly to a sponsored agreement are the compensation of employees for performance of work under the sponsored agreement, including related fringe benefit costs; the costs of materials consumed or expended in the performance of the work; and other items of expense incurred for the sponsored agreement. The cost of materials supplied from stock or services rendered by specialized facilities or other institutional service operations may be included as direct costs of sponsored agreements, provided such items are consistently treated and are charged under a recognized method of computing actual costs. Policies and procedures developed by the Office of Grants and Contracts Accounting are based on the Federal government’s Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR Part 200) Subpart E “Cost Principles”. Individual sponsored awards may contain terms and conditions that are more specific and that are either more or less restrictive than 2 CFR Part 200 Subpart E. In these cases, the individual award/agreement will be used to determine the allowability of expenses posted directly to the associated sponsored project(s). In all cases, expenses must be accounted for in accordance with applicable Georgia Tech operating procedures.

Policy Statement

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.

Policy Terms

Reasonable
…does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost (200.404)

Allocable
…the goods or services involved are chargeable or assignable to that award in accordance with relative benefits received (200.405)

Consistently Treated
…may not be charged as a direct cost if any other like cost has been allocated or charged as an indirect cost (200.403)

Allowable
conforms to limitations or exclusions set forth in the sponsored agreement and these principles as to types or amounts of cost items

The following expense types are typically “unallowable” as a direct charge to a sponsored project (list not all-inclusive):

  • Office supplies
  • Telephone toll charges / hand-held communications device charges
  • Dues and membership fees
  • 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 project or activity;
  2. Individuals involved can be specifically identified with the project 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 costs.

The following expense types are typically allowable as a direct charge to a sponsored project (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.

Facilities and Administrative (F&A) (or indirect) costs are charged to sponsored projects via the Institute’s F&A rate. Typical F&A cost items include office supplies, departmental administration, facility costs, general purpose equipment, and others as listed above (list not all-inclusive). See G&C “Facilities & Administrative Rates” for additional information.
If it is determined that the individual award/agreement allows direct charging of costs normally expensed as F&A costs (e.g., postage, local telephone, office supplies, membership dues, and general purpose equipment), a Cost Accounting Standards (CAS) Exception Form must be completed, certified, and kept on file in the project files of the PI’s home academic department. This form must be properly supported by pertinent award/agreement documentation. The CAS Exception Form can be found on the Grants and Contracts website.
Certain allowable non-sponsored expenses may be unallowable for purposes of the F&A Cost study. Examples include fines/penalties, commencement expenses, and fund-raising activities. Unique project numbers are used to identify unallowable activities.

Procedures

Georgia Tech authorizes the principal investigator (PI) and the properly authorized unit designee (financial manager and staff) to have primary responsibility for the management of sponsored agreement funds. The actions of these authorized individuals are documented using manual/electronic signatures and/or a system password. It is the responsibility of PIs, unit heads and staff delegated signature authority by unit heads to ensure that only allowable charges are posted as direct expenses to sponsored projects. Unit financial managers are in the most knowledgeable position with up-to-date information regarding the status of their respective sponsored projects. As such, local management’s signature approval of a financial transaction indicates:

  • Approval for the action requested
  • Goods or services are directly related to the project scope
  • Charges are allowable according to the approved project budget
  • Charges have been incurred within the project time period
  • Charges have been incurred in accordance with GIT financial and accounting policies and procedures
  • Charges have been incurred in accordance with Terms and Conditions of the sponsored agreement
  • Funds are available in the designated projects

Quarterly Compliance Reviews
The Office of Grants and Contracts Accounting will perform a quarterly “Sponsored Project Allowable Costs” compliance review to accomplish the following objectives:

  1. Provide means for monitoring compliance with 2 CFR Part 200 and implementing adequate internal controls to ensure that departmental business managers are monitoring compliance with respect to expenditures charged to sponsored projects.
  2. Implement systematic queries of sponsored project charges to evaluate the appropriateness of direct costs charged to projects.

The Office of Grants and Contracts Accounting conducts regularly scheduled training sessions pertaining to allowable and unallowable costs.

Contact the Grants and Contracts Accounting Department for specific guidance related to managing sponsored projects at Georgia Tech.

Responsibilities

Each Georgia Tech PI is responsible for effectively overseeing and managing his/her sponsored projects based to a considerable extent upon his/her knowledge of the field of study and his/her capabilities to conduct the projects in an efficient and productive manner. Monthly “PI Sponsored Project Review” reports are provided directly to PIs by the Office of Grants and Contracts Accounting to permit timely reviews and approval/confirmation of all charges posted to his/her assigned sponsored projects. PIs are to perform periodic reviews of these charges to provide proper financial oversight. Additional information pertaining to “PI Sponsored Project Review” reports is available on the Grants and Contracts website.

List the units or individuals who are responsible for aspects of the policy (e.g., colleges, departments, offices, faculty, students, employees, etc.). Summarize the major responsibilities – the “what” not the “how” of the responsibility. Details of “how” should be in the procedures section.

Enforcement

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

Policy History
Revision Date Author Description
12-26-2014 Office of Grants and Contracts Accounting Update to conform to Office of Management and Budget Uniform Requirements issued 12-26-2013

Cost / Service Centers

Cost / Service Centers
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 10:08
Policy No
3.14
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

Service centers are defined as operating units established for the primary purpose of providing specialized service to the educational and research community. Service centers are also known as Specialized Service Facilities and are subject to the terms and conditions of OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR 200), Section 200.468.

Policy Statement

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".

Scope

This policy is applicable to all Cost/Service Centers established at the Institute.

Policy Terms

Specialized Service Facilities (SSF)

Operating units which provide specialized services to the university community, with annual operating budgets in excess of $1,000,000 annually or based on management discretion. Additional procedures related to Service Center rate studies are included below.

Service Centers

Operations with greater than $5,000 in operating expenses annually or any charges to sponsored projects regardless of size where the business-case for establishing a separate service center has been properly justified and is approved in advance by the Sr. Director of Grants and Contracts Accounting and the appropriate College or Institute level officer. Costs for materials/services should constitute a pass-through of direct costs only. Service centers should be able to demonstrate that there is an advantage to the sponsor to justify its existence. Grants and Contracts Accounting is available to provide assistance in developing such pass-through rates.

Facility Usage Rates Rates established with a defined time period for the infrequent and non-recurring use by external entities of Georgia Tech lab facilities that are unique and not commercially available. Grants and Contracts Accounting will develop the appropriate Facility Usage rates in coordination with the requesting department.
Procedures

Basic Requirements
Due to the administrative requirements of managing service centers, there should be a clear business-case for establishing and renewing separate service center charge rates. The requisite business-case includes the following basic parameters:

  1. Self-Supporting Revenues - Service center annual recoveries should typically be sufficient to fund the annual operating costs of the center. Any cost in excess of revenue should be posted to a discrete project so total center costs can be easily identified. Direct costs include allocable salaries, fringe benefits, supplies, equipment maintenance, and maintenance agreements. SSFs also include indirect costs such as building depreciation, equipment depreciation, and building operations and maintenance expenses (including utilities).
  2. Local Administrative and Financial Support - The unit/department must be equipped to manage the additional accounting and reporting requirements of the Center. These activities include separate accounting for expenses and recoveries and precise tracking of utilization for charge-out purposes.
  3. College and Institute Level Approval - The “Service Center Rate Study Request” form must be completed and approved by the appropriate School or Department Head and the appropriate College or Institute level officer prior to being submitted to Grants and Contracts Accounting for consideration. The form can be found on the Grants and Contracts website.

Service/recharge center rates may only be established or renewed after the above basic requirements have been met, documented, and properly approved. Thereafter, rate studies are prepared and billing rates are established and renewed based on the following procedures:

Service Center Rate Studies and Billing Rates

  1. Proposed billing rate studies are scheduled on an annual basis. Estimated rate calculations will be developed based on the most recent completed fiscal year. Estimated rate calculations for Resident Instruction and Units other than GTRI are to be submitted to Grants and Contracts Accounting annually. Rates normally become effective July 1 of the subsequent year. Prior to ONR approval, if required, rates utilized will be considered provisional until subsequently amended.
  2. Billing rates may not be based on what others charge for similar services.
  3. Service rates should include both direct and for SSFs an allocable share of Facilities & Administrative (F&A or indirect) costs. The proposal should consist of prior year historical costs all equipment depreciation costs by specific item, net square footage occupied and any over/under recovery from the prior year if required. The proposal should also contain documented utilization of the cost center from the prior period and a justification of the selected utilization base.
  4. All billings are to be invoiced to a Georgia Tech account/project. Direct expenses applicable to the service center and all offsetting billing revenues should be recorded to worktags established for purposes of reporting and accounting for center activities.
  5. Agreements to conduct services for external entities may be evaluated by the Office of Sponsored Programs (OSP) and should be based on the OSP short form contract document. Billings to external parties are coordinated through the Bursar’s Office after approval is gained via Grants and Contracts.
  6. Service Center rates are validated periodically to ensure that charge rates were at or below cost during the prior period(s). This validation work is scheduled and managed by the Grants and Contracts Accounting Office with significant assistance from the responsible Center or Unit Financial Officer. Accurate tracking and reporting (including detailed supporting documentation) for expenses and revenue entries is critical to the timely performance of service center rate studies and validations.
  7. Existing (previously approved) service centers that do not meet the basic "business-case" requirements noted above will be reevaluated as part of the annual rate validation step. In these cases, Service Center billing rates may be suspended or lapsed until the business-case is reestablished and properly approved via the "Service Center Rate Study Request” form. Grants and Contracts Accounting will notify the responsible Institute, School, Center, and Unit contacts at least 30 days prior to this action.
  8. Existing (previously approved) Service Center billing rates where a significant amount of charges were posted to sponsored projects will be suspended if this validation and renewal process is not completed in a timely fashion. Grants and Contracts Accounting will notify the responsible Institute, School, Center, and Unit contacts at least 30 days prior to this action.
  9. Existing (previously approved) service centers with costs posted to a non-DSS project will require College or Institute level officer approval of support annually.

Service center rates that are not documented, supported, validated, and renewed in accordance with this policy may not be charged to externally-funded sponsored projects.

 

Responsibilities

Contact the Grants and Contracts Accounting Department at gc.ask@business.gatech.edu for additional guidance related to Cost/Service Centers at Georgia Tech.

Enforcement

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

Policy History
Revision Date Author Description
09-20-2021 Office of Grants & Contracts Accounting Editorial Updates to align with Workday implementation.
04-2015 Office of Grants & Contracts Accounting Update with new OMB Requirements
12-30-14 Office of Grants & Contracts Accounting Align with requirements of 2 CFR 200
07-01-12 Office of Grants & Contracts Accounting Administrative review

 

 

Cost Share

Cost Share jbarber32 Tue, 09/04/2012 - 15:56

Cost Share Expenses

Cost Share Expenses
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:56
Policy No
3.9
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

Cost share (Matching) funds are those funds contractually obligated by the Institute to meet the financial requirements specified in a sponsored award. These expenses represent the Institute’s contribution to an externally funded sponsored project. When a cost share obligation is identified in the sponsored agreement, it must be accounted for in the Institute’s accounting records and reported to the sponsor. Cost share expenses should generally be incurred at the same rate as the sponsor’s portion of award expenses.

Policy Statement

The Federal Government’s Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR 200 – 200.306 “Cost sharing or matching”) indicates that all contributions, including cash and third party in-kind contributions, must be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria:

  1. Are verifiable from the recipient's records.
  2. Are not included as contributions for any other Federal award.
  3. Are necessary and reasonable for accomplishment of project or program objectives.
  4. Are allowable under Subpart E – Cost Principles.
  5. Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching.
  6. Are provided for in the approved budget when required by the Federal awarding agency.
  7. Conform to other provisions of this Part, as applicable.

If any expense cannot meet the above criteria, it is not eligible to be recorded and reported as cost share. In addition to expenses incurred by Georgia Tech, the following types of expenses may be counted as cost sharing if properly approved, documented, and supported:

  • Unrecovered F&A (indirect) costs, including indirect costs on cost sharing or matching, with the prior approval of the Federal awarding agency based on approved rates.
  • Unrecovered tuition remission costs with the prior approval of the Federal awarding agency based on approved rates.
  • Donated supplies, equipment, or property based on current fair-market values and period-of-use requirements [reference 200.434 “Contributions and donations”].
  • Third party contributions of personal services, supplies, equipment, property based on current fair-market value and period-of-use requirements [reference 200.434 “Contributions and donations”].

Generally speaking, only expenses that would be allowable to the sponsored project are allowable as cost sharing expenses. Any exceptions to this rule must be approved and documented (i.e., salaries in excess of the NIH salary cap or waived Tuition Remission expenses).

Scope

All employees engaging in sponsored research activity.

Policy Terms

Unrecovered F&A
The difference between the amount charged to the Federal award and the amount which could have been charged to the Federal award under the recipient’s approved negotiated indirect cost rate.

Internal Institutional support
Internal institutional funding provided to the unit upon successful receipt of a research award, which is not contractually obligated by the sponsored program.

Procedures

The GM System obtains contract information directly from the OSP database. Since all projects with Cost Sharing requirements must be managed by OSP, the GM System receives all authorized Cost Share/Matching information at the time of the award or any subsequent amendment. Upon completion of an agreement by OSP, Project Numbers are assigned. If there is a contractual Cost Sharing requirement a Cost Sharing Project number will be assigned.

The amount of the Cost Sharing requirement is entered into the Project Demographic section of the GM Project files. Cost Share budgets are entered by the departments via the Institute budgeting process into the Institute’s General Ledger System. These budget amounts are subsequently added to the GM project files systematically. The budgets in the GL System will only reflect the amount of funds budgeted by the departments.

The Grants Management (GM) System allows for all companion cost share projects to be linked, summarized, and reported in accordance with applicable requirements. For this reason, all cost share projects should be associated with the appropriate sponsored award/fund within the GM system.

The GM System reports Cost Share Obligation on the "Fund" Demographics Panel. The amount of the budget to be reflected in the cost share project(s) is to represent the funded amount available to spend (plus amounts already expended). A comparison of the total amount budgeted (including State funded cost sharing and GTRC funded projects) to the obligation will indicate the amount of additional funding required.

All related cost share projects are linked to the sponsored project for reporting purposes. Additional companion Cost Share projects may be established by appropriate personnel throughout the life of a sponsored project to properly account for all applicable cost sharing expenditures. When this occurs, the Office of Grants and Contracts Accounting should be notified immediately in order to ensure proper set-up in the GM System.

Projects should not be set up or allocated in the accounting records as cost share projects unless they are contractually required by the sponsor. Internal institutional support that is necessary but not contractually required should be set up by the Budget Office as other State funds outside of the matching fund group of sponsored projects.

Cost Share Documentation Requiring Special Certification and Approval Authorization
On an exception basis, cost share expenses posted to non-companion discretionary projects may be recorded as cost sharing for the applicable sponsored award. In these cases, the Principal Investigator and appropriate unit financial officer are required to complete the cost share certification form, which certifies the project can be used as matching contribution. Source accounting system support and pertinent summary schedules must accompany this certification page.

Documentation and certification of prior fiscal year cost share expenses posted to “non-companion” projects must be approved by the Director of Project Accounting or Senior Director of Grants and Contracts Accounting prior to processing. Requests that exceed 120 days of the initial posting date will follow the Late Cost Transfer process for review and approval.

Federal Salary Limitations (NIH Salary Cap)
The Cost Sharing accounting mechanism referenced above should be used to account for salary limitations applicable to NIH grant and cooperative agreement awards and extramural research and development contract awards. In so doing, the appropriate amount of effort devoted to the NIH award is visible in the accounting records of the Institute.

Refer to the G&C website for Frequently Asked Questions related to cost sharing.
http://grants.gatech.edu/main/wp-content/uploads/2014/03/FINAL_Cost-share-FAQ_1.pdf

Contact the Office of Grants and Contracts Accounting at gc.ask@business.gatech.edu for additional guidance related to sponsored cost transfer requests.

Responsibilities

Principal Investigators, assigned delegates, and unit financial officers are responsible for providing proper oversight and management of sponsored projects during the performance and close-out periods.

Enforcement

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

Policy History
Revision Date Author Description
11-05-2014 Office of Grants & Contracts Accounting Align with requirements of 2 CFR 200
04-01-2014 Office of Grants & Contracts Accounting Administrative review

Cost Transfer Requests

Cost Transfer Requests
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:41
Policy No
3.6
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Joshua Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

The matter of cost transfers is a sensitive issue in a university's operation of its sponsored programs and one which always receives careful scrutiny by sponsors. Accordingly, the following policy has been established pursuant to sound business practice and in order to ensure full compliance with federal regulations, contract and grant terms and other conditions concerning cost transfers for Resident Instruction (RI), Georgia Tech Professional Education (GTPE), and Enterprise Innovation Institute (EII) programs. The Georgia Tech Research Institute (GTRI) has a separate policy in place that is applicable to its projects.

Policy Statement

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 department 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.

All requests for a non-personal service Cost Transfer should originate with the department that originally approved the charge. The request will require adequate supporting statements that clearly indicate that the costs being moved to a project 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 department, must certify the accuracy of the Cost Transfer.  Submission of a Cost Transfer by an authorized unit designee is considered certification of the above.

Cost Transfer Request
A request for a non-personal service Cost Transfer involving sponsored projects must be submitted by the appropriate college and school personnel in accordance with Institute procedures.  All requests must be approved by at least two authorized employees.  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.

Examples of Cost Transfer situations that require special documentation can be found on the Grants and Contracts website.

The matter of cost transfers is a sensitive issue in a university's operation of its sponsored programs and one which always receives careful scrutiny by sponsors. Accordingly, the following policy has been established pursuant to sound business practice and in order to ensure full compliance with federal regulations, contract and grant terms and other conditions concerning cost transfers for Resident Instruction (RI), Georgia Tech Profes The matter of cost transfers is a sensitive issue in a university's operation of its sponsored programs and one which always receives careful scrutiny by sponsors. Accordingly, the following policy has been established pursuant to sound business practice and in order to ensure full compliance with federal regulations, contract and grant terms and other conditions concerning cost transfers for Resident Instruction (RI), Georgia Tech Professional Education (GTPE), and Enterprise Innovation Institute (EII) programs. The Georgia Tech Research Institute (GTRI) has a separate policy in place that is applicable to its projects. sional Education (GTPE), and Enterprise Innovation Institute (EII) programs. The Georgia Tech Research Institute (GTRI) has a separate policy in place that is applicable to its projects.

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.

Non-Personal Service Cost Transfers Requiring Special Approval Authorization
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.

Provisions for exceptions to the 90 day limit will be considered in situations where initial or continuing sponsor funding is delayed beyond 90 days after the effective date of the award. Consideration for recognition of Cost Transfers beyond the limit will be addressed by the Grants & Contracts Accounting Office 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). If 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 Senior Director of Grants & Contracts Accounting 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.

Scope

All employees engaging in sponsored research activity.

Policy Terms

Cost Transfer

A Cost Transfer involves an action in which costs are moved from a non-sponsored project to a sponsored project or from a sponsored project to any other project. Excluded are initial transfers of charges for supplies or services from an inventory account, a cost center, or other similar operations in accordance with established accounting procedures. Also excluded are corrections of processing errors that occur within the Business Office of Finance and Planning accounting systems such that when the correction is made, the accounting records are in agreement with the documentation that authorized the change. Corrections of encumbrances are not considered Cost Transfers, and any such changes are to be processed according to Procurement and Business Services Office procedures.

Procedures

Forms

To obtain hard copy forms, please contact the Office of Grants & Contracts Accounting at gc.ask@business.gatech.edu or go to https://grants.gatech.edu/.

Frequently Asked Questions
Contact the Office of Grants and Contracts Accounting at gc.ask@business.gatech.edu for additional guidance related to Cost Transfer requests.

Responsibilities

Principal Investigator (PI) Responsibilities
Each Georgia Tech PI is responsible for effectively overseeing and managing their sponsored projects based upon their knowledge of the field of study and their capabilities to conduct the projects in an efficient and productive manner. PIs are to perform periodic reviews of charges to provide proper financial oversight as outlined in the PI Project Management Reference Manual.  

Authorized Unit Designee (financial manager, grant manager and staff) Responsibilities
Each Georgia Tech research administrator is responsible for effectively overseeing and managing sponsored award portfolios based upon their knowledge of award terms and conditions and applicable federal, state, and institutional policies and procedures.  Unit Designees are also responsible for the accuracy, allowability and allocability of charges authorized by the PI or their designee and providing adequate documentation in a timely manner.

Grants & Contracts Accounting Responsibilities
The Grants & Contracts Accounting Office approves Cost Transfers meeting approval criteria based on review of the proper authorization, accuracy of the accounting, and adequacy of the supporting documentation in accordance with federal, state, and institutional policies.  Reliance is placed upon the submitting unit, as the level with firsthand knowledge, regarding benefit to the award scope and compliance with award specific terms and conditions.

Policy History
Revision Date Author Description
02-24-2022 Office of Grants & Contracts Accounting

Updated timeline requirements for completing Cost Transfers and removed procedures.

10-01-2015 Office of Grants & Contracts Accounting Updated Non-Personal Service Cost Transfers Requiring Special Approval Authorization for externally-funded Sponsored Projects from 120 days beyond the original expense posting date to 90 days aligning with close-out requirements of OMB 2 CFR 200.
11-05-2014 Office of Grants & Contracts Accounting Align with requirements of 2 CFR 200
04-01-2014 Office of Grants & Contracts Accounting Administrative review

 

 

Establishing Sponsored Sub-Project Numbers

Establishing Sponsored Sub-Project Numbers
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 10:24
Policy No
3.18
Last Revised
Review Date
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Policy Statement

This procedure describes the process to be used by departments and the Office of Grants and Contracts Accounting to establish and distribute project information for new sub-projects under sponsored awards and to redistribute the budgets of existing main and sub-projects. The Office of Grants and Contracts Accounting is responsible for assigning sub-project numbers for externally funded awards and internally funded projects (i.e., Georgia Tech Research Corporation and Georgia Tech Foundation). Georgia Tech Foundation projects are managed by the Controller’s Office.

Procedures

Departmental/Unit Approval for Budget Revision to Sponsored Projects

Staff with the proper approval and authority may initiate a request for a new sponsored sub-project number using the WEB Grants Management system. Users of the web-based Budget Revision to Sponsored Project tool have a responsibility to ensure the accuracy and legitimacy of the sub-project requests they initiate. When Budget Revision requests are submitted, the user must read, confirm, and acknowledge the following:

  1. I have Departmental/Unit authorization to prepare and approve this request for a new sub-project and/or budget revision.
  2. This request for a new sub-project and/or budget revision has been reviewed and approved by the project director.
  3. This request for a new sub-project and/or budget revision complies with all terms and conditions of the supporting sponsored agreement.
  4. This request for a budget revision has been approved by OSP or does not require OSP approval.

The Office of Grants and Contracts Accounting is charged with establishing project numbers for sub-projects in sponsored operations, maintenance of budget information related to sub-projects in sponsored project files, and maintenance of Institute accounting records for Resident Instruction (RI), Georgia Tech Professional Education (GTPE), Enterprise Innovation Institute (EII), and Plant funds (if applicable). Requests to establish a sub-project are to be initiated and approved by the academic or administrative unit of the main project director.

Requests for sub-projects supported by the Georgia Tech Research Institute (GTRI) are to be provided to the Office of Grants and Contracts Accounting with required source documentation as prepared by the GTRI Accounting office.

Establishing Sub-Projects

These procedures address the redistribution of existing budgeted funds from the main project to new sub-project(s).

Requests for sponsored project budget revisions are to be prepared using the Budget Revision to Sponsored Projects feature available on the WEB Grants Management menu. All of the standards outlined in G&C Policy No. 3.19 - Sponsored Project Budget Revisions should be adhered to. Additional procedures and steps to navigate this feature of the system can be found in the Grants Management for Campus Administrators training manual located on the G&C website: http://www.grants.gatech.edu.

Grants and Contracts Accounting will receive the request for a new sub-project electronically and will assign a sub-project number in the GM System and Chart of Accounts. Grants and Contracts Accounting will provide notification via email to the department once the new sub-project has been assigned.

Circumstances Requiring a Sub-project

The sub-project accounting mechanism referenced above should be used to account for sponsored funds in the following circumstances:

  • Participant Support is a component of the sponsored award. This expense category is separate from the main project for reporting and auditing purposes. See G&C Policy No. 3.12.4 - Processing Participant Support Stipends or Subsistence Allowance for additional information.
  • Shared research awards between multiple departments.
  • A portion of an award has a different F&A (indirect) rate.

Contact the Grants and Contracts Accounting Department for specific guidance related to establishing new sponsored sub-projects in the Grants Management System.

Facilities & Administrative (F&A) Cost Rates

Facilities & Administrative (F&A) Cost Rates
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 10:20
Policy No
3.15
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

Georgia Institute of Technology/Georgia Tech Research Corporation utilizes Facilities and Administrative (F&A) rates to obtain recovery of costs, other than direct costs, incurred to support sponsored projects.

Policy Statement

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".

Scope

This policy is applicable to expenditures incurred on sponsored projects.

 

Definitions:

Facilities costs Facilities costs include depreciation and use allowances, interest on debt associated with certain buildings, equipment and capital improvements used for sponsored projects, operation and maintenance of plant expenses incurred for space used for sponsored projects, and allocated library expenses.
Administrative costs Administrative expenses include the allocated portion of general administrative and general expense, departmental administration, sponsored project administration, and the allocated portion of student services administration.
Modified Total Direct Cost (MTDC) MTDC consists of all salaries and wages, fringe benefits, materials and supplies, services, travel, and sub-grants and sub-contracts up to the first $25,000 each; and excluding equipment, capital expenditures, charges for tuition remission, rental costs, scholarships and fellowships, participant support costs, as well as the portion of each sub-grant and sub-contract in excess of $25,000.
Procedures

Facilities and Administrative costs (previously referred to as indirect costs) are comprised of two main categories: Facilities costs and Administrative costs. (See definitions above.) The distribution base used to determine F&A Rates is the Modified Total Direct Cost (MTDC) as defined by OMB Uniform Administrative Requirements (2 CFR 200) . An F&A rate is expressed as a percentage multiplied times the appropriate cost base on the grant or contract to determine the amount of F&A cost to be charged. The F&A cost is billed to the sponsor along with direct costs.

Facilities and Administrative (F&A) rates are determined on an annual basis according to the provisions of OMB Uniform Administrative Requirements (2 CFR 200), Section 200.414, and audits by the Defense Contract Audit Agency (DCAA), with negotiation and approval of rates by the Department of Navy, Office of Naval Research (ONR). The Institute and ONR negotiate F&A rates to be used over a period of years, based on the audited rate proposal report.

The negotiated F&A rates are to be used on externally-funded grants and contracts. Other sponsors, including the State and private foundations, tend to limit, by their own policy, the F&A rate they are willing to pay. Federal training and fellowship grants, clinical trials and drug studies also limit the F&A rate.

Types of F&A Rates
Three F&A rate types and five standard F&A rates are in place and applicable to sponsored work performed by the academic units of Georgia Tech (excluding GTRI). The applicable rate types and standard rates are described as follows:

  1. Organized Research
    Research and development activities financed by external sponsors that are separately budgeted and accounted for by the Institute.
    • Federal Capped Rate – Incorporates all administrative limitations imposed by the Federal government. Rate is applicable to all Federal awards, all Department of Defense (DOD) Grants, and to DOD contracts awarded before November 30, 1993.
    • Federal Uncapped Rate – Incorporates only the departmental administration limitation imposed by the Federal government. Rate is applicable to DOD Contracts awarded on or after November 30, 1993 in accordance with DFARS 231.303(1).
    • Industrial Rate – Fully-burdened without administrative limitations. Rate is applicable to industrial awards.
  2. Instruction
    Conventional academic instruction and related activities financed by external sponsors that are separately budgeted and accounted for by the Institute. There is only one standard rate associated with this rate type.
  3. Other Sponsored Activities
    Program and projects financed by external sponsors which involve the performance of work other than instruction and organized research. Among these activities are included programs designated as Community or Public Services. Examples include conferences, institutes, general advisory services, reference bureaus, consulting, and similar non-instructional services to particular sectors of the community. There is only one standard rate associated with this rate type.

Determination and Application of Federal F&A Cost Rates
F&A rates approved by ONR on a “Predetermined” or “Fixed” basis are treated as fixed rates throughout the competitive segment of the Federal sponsored agreement. A competitive segment is a period of years approved by the Federal funding agency at the time of the award. If negotiated rate agreements do not extend through the life of the sponsored agreement at the time of the initial award, the negotiated rate for the last year of the sponsored agreement is extended through the end of the life of the sponsored agreement.

Responsibilities

Contact the Grants and Contracts Accounting Department at gc.ask@business.gatech.edufor additional guidance related to F&A rates at Georgia Tech.

Enforcement

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

Policy History
Revision Date Author Description
08-23-21 Office of Grants & Contracts Accounting Updated hyperlinks
12-30-14 Office of Grants & Contracts Accounting Align with requirements of 2 CFR 200
07-01-12 Office of Grants & Contracts Accounting Administrative review
April 2015 Office of Grants & Contracts Accounting Updated based on OMB Uniform Requirements

Fringe Benefits Cost Rates

Fringe Benefits Cost Rates
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 10:22
Policy No
3.16
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

Georgia Institute of Technology/Georgia Tech Research Corporation utilizes Institute and Sponsor-Funded Fringe Benefits rates to charge benefiting activities for the cost of all employees’ fringe benefits. This policy reduces the amount of accounting required to accurately distribute fringe benefits expenses to benefiting activities.

Policy Statement

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”.

Scope

This policy is applicable to all employees eligible for Institute fringe benefits.

Procedures

Institute and Sponsor-Funded Fringe Benefits rates are determined on an annual basis according to the provisions of 2 CFR 200, and audits by the Defense Contract Audit Agency (DCAA), with negotiation and approval of rates by the Department of Navy, Office of Naval Research (ONR). Upon approval by ONR, rates are used to charge fringe benefits expenses to institute-funded and sponsor-funded activities and projects during the fiscal year. Following the end of the fiscal year, the actual fringe benefits rates are determined. If Fringe Benefits rates have been approved on a “Fixed with Carry-forward Basis”, any amount of over or under-recovery of expense is incorporated into the next fringe benefits rate proposal. This procedure provides for the collection or repayment of any over or under-recovery of fringe benefit expenses.

The following benefits are included in the Institute and Sponsor-Funded Fringe Benefits rates for the academic units of Georgia Tech (excluding GTRI):

  • Social Security
  • Life Insurance
  • Health Insurance
  • Retirement
  • Termination Vacation Leave
  • Other Non-Payroll Benefit Expenses – Includes Worker’s Compensation, Unemployment Compensation, Retiree Group Insurance

Types of Fringe Benefits Rates
Five Personal Services Cost Groups have been identified for purposes of determining and applying the fringe benefits rates. The classes of employees and types of payments included in each of the five groups are as follows:

1. Partial Benefits - Social Security Benefits only; Covered employees include

 
a. Temporary classified persons
 
b. Temporary academic or research professionals not eligible for retirement, health insurance, and life insurance programs or not electing coverage under the plans
 
c. Part-time employees employed for less than 50% of a full work schedule
 
d. Additional compensation payments not covered by retirement programs
e. Other payments to employees to cover moving expenses, awards, termination pay and other miscellaneous payments not covered by retirement programs

2. Full Fringe Benefits - All Benefits noted above; Covered employees include:

 
a. Regular full-time faculty
 
b. Principal Investigators
 
c. Professional and administrative staff
 
d. Joint staff
 
e. Temporary academic or research professionals covered by applicable retirement, health insurance, and life insurance programs
 
f. Bi-weekly permanent employees
 
g. Part-time employees employed for at least 75% of a full work schedule

3. Limited Benefits – Social Security, Retirement, Termination Vacation Leave, and Other Non-Payroll Benefits; Covered employees are those employed for at least 50%, but less than 75% of a full work schedule, including:

 
a. Regular faculty
 
b. Principal Investigators
 
c. Professional and administrative staff
 
d. Joint staff
 
e. Temporary academic or research professionals covered by applicable retirement programs
 
f. Bi-weekly permanent employees

4. Graduate Student Health Insurance - Covered employees include:

 
a. Graduate Research/Teaching Assistants who qualify for the graduate tuition remission award. See G&C Policy 3.17 “Graduate Student Tuition Remission Program” for additional information on qualifications.

5. No Benefits – Applicable to all other student employees enrolled full-time and working less than 20 hours per week.

Responsibilities

Contact the Grants and Contracts Accounting Department at gc.ask@business.gatech.edu for additional guidance related to Fringe Benefits rates at Georgia Tech.

Enforcement

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

Policy History
Revision Date Author Description
12-08-2014 Office of Grants & Contracts Accounting Align with requirements of 2 CFR 200
04-01-2012 Office of Grants & Contracts Accounting Administrative review

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General Information

General Information
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:27
Policy No
3.1
Last Revised
Review Date
Reason for Policy

The purpose of the Grants and Contracts Accounting Office is to provide fiscal and administrative support to the Institute in its contribution to the fulfillment of the scientific and technical needs of the State of Georgia through education, research and service. The primary functions of G&C: Financial administration of Georgia Tech's (excluding GTRI) sponsored projects; special studies relating to indirect costs, fringe benefits, and cost centers; audit liaison related to external audits; ensuring that the Institute's payroll reporting system documentation is in compliance with OMB Circular A-21, Revised; interpretation and implementation of Federal guidelines as related to sponsored projects administration.

Policy Statement

The Office of Grants and Contracts Accounting is required to follow an established set of guidelines and policies set forth by the Federal Government, State of Georgia, the Board of Regents and the Institute.

Responsibilities

Organizationally, Grants and Contracts Accounting Office report to the Associate Vice President for Financial Services but works in close partnership with the Office of Sponsored Programs (OSP) and the Georgia Tech Research Corporation (GTRC).

Georgia Tech Research Corporation Project Numbers

Georgia Tech Research Corporation Project Numbers
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:59
Policy No
3.10
Last Revised
Review Date
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

This procedure explains the method of establishing a new sponsored project in the accounting records of the Georgia Institute of Technology where the Georgia Tech Research Corporation is the sponsoring entity.

Policy Statement

The Office of Grants and Contracts Accounting is 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. The authorization should be approved by authorized personnel to obligate funds from the Georgia Tech Research Corporation. Requests received by the Office of Grants and Contracts Accounting without approval by appropriate personnel will be returned to the requesting unit.

Procedures

Upon receipt of a properly authorized request for a new sponsored project, the Office of Grants and Contracts Accounting determines the scope of work to be funded and assigns a sponsored fund and project number within the requesting unit. The project number is then submitted electronically for review and update to the Institute accounting records. The following steps are then taken to complete the project number assignment and notification process:

  1. The Office of Grants and Contracts Accounting sets up the fund and project in the Grants Management (GM) System and the Chart of Accounts. The appropriate budget information is entered into GM based upon data provided in the request.
  2. The unit requesting the project and the recipient unit are notified by the Office of Grants and Contracts Accounting of the fund and project number which should be used for related charges.

Forms/Links

There is no specific form which is used to request new funding from the Georgia Tech Research Corporation. The requests are typically routed through the Office of the Provost and Executive Vice President for Academic Affairs and should include at a minimum the following information:

  1. Requested budget maximum with category distribution.
  2. Source of funding for costs incurred for the project being requested.
  3. Effective and expiration date required for the project.
  4. Project director responsible for project.
  5. Administrative unit to which project should be assigned.
  6. Sponsored Project, Fund and Sponsor name if established for matching/cost share obligation.

Contact the Grants and Contracts Accounting Department for specific guidance related to managing sponsored projects at Georgia Tech.

Graduate Student Tuition Remission Program (GSTRP)

Graduate Student Tuition Remission Program (GSTRP)
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 10:23
Policy No
3.17
Last Revised
Review Date
Policy Statement

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.

Participant Support Stipends Or Subsistence Allowances

Participant Support Stipends Or Subsistence Allowances jbarber32 Tue, 09/04/2012 - 15:56

Memorandum Of Understanding

Memorandum Of Understanding
Type of Policy
Administrative
jbarber32 Tue, 06/26/2012 - 15:50
Policy No
3.12.4.a
Review Date

MEMORANDUM OF UNDERSTANDING
PARTICIPANT SUPPORT STIPENDS OR SUBSISTENCE ALLOWANCES

Note: This Memorandum of Understanding is to be prepared and submitted with each request to disburse participant support stipends or subsistence allowances to individuals who participate in sponsored conferences or research or instructional training programs.

                                                                                                                                                                                            
Name of Program                                         Project/Fund Number

                                                                                                                                                                                            
Department/Unit                                  Month/Day/Year

Participant is to place an (X) in the box below and complete the signature section indicating that you understand your obligation(s) regarding the reporting of stipend or subsistence allowances as taxable income on your tax return.

I am a United States Citizen or a Resident Alien, and I am participating in a research or instructional training program. To the best of my knowledge I am performing activities designed to train individuals in the performance of instructional or research projects, and this is not work the Institute would employ individuals to perform. I understand that I am not a Georgia Institute of Technology employee for payroll tax withholding purposes, and I am not covered by Worker’s Compensation under Georgia Law. Georgia Institute of Technology will issue an IRS Form 1099 for these payments. Furthermore, I understand that it is my responsibility to determine my tax liability and file my United States tax return with the IRS.

Definition of Participant Support Stipends or Subsistence Allowances

Participant Support stipends or subsistence allowances are paid to help defray the costs of personal maintenance while participating in a conference or training activity. Participants may be paid a stipend, per diem or subsistence allowance, based on the type and duration of the activity, as outlined in the pertinent sponsored program announcement and in the grant instrument. Such allowances must be documented and represent reasonable costs, in conformance with the Georgia Institute travel policies and procedures.

Definition of Participant Support Reimbursement of Expenses

Travel costs of participants in research of instructional training programs may be allowable as outlined in the pertinent program announcement and in the grant instrument.

 

                                                                                                                                                                                            
Printed Name of Participant                                          Social Security Number

 

                                                                                                                                                                                            
Signature of Participant                                                              Date

                                                                                                                                                                                            
Signature of Departmental Representative                                      Date

Distribution: Accounts Payable; Participant; Department

Processing Participant Support Stipends Or Subsistence Allowances

Processing Participant Support Stipends Or Subsistence Allowances
Type of Policy
Administrative
jbarber32 Thu, 06/07/2012 - 14:07
Policy No
3.12.4
Last Revised
Review Date
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Policy Terms

Participant Support Stipends or Subsistence Allowances
Participant Support stipends or subsistence allowances are paid to help defray the costs of personal maintenance while participating in a conference or training activity. Participants may be paid a stipend, per diem or subsistence allowance, based on the type and duration of the activity, as outlined in the pertinent sponsored program announcement and in the grant instrument. Such allowances must be reasonable and conform to Institute policies. A Memorandum of Understanding (MOU) between the department/unit and each participant is recommended. Please refer to G&C Policy No. 3.12.4.a – Memorandum of Understanding to obtain an MOU template.

Human Subject/ Research Participant payments are defined differently from Participant Support and are not included under the purview of this policy. Please see Georgia Institute of Technology Institutional Review Board Policies & Procedures – XIV “Compensation and Incentives for Research Participation.” Questions regarding these payments may be directed to ap.ask@business.gatech.edu.

Participant Support Reimbursement of Expenses
Travel costs of participants in research of instructional training programs may be allowable as outlined in the pertinent program announcement, the grant instrument, and Georgia Tech policy. For participant expense reimbursements, the participant should retain original receipts and submit only copies with the reimbursement request.

Procedures

Participant Support Payments to GT students
Participant Support payments can be made using one of the following methods:

  1. Payment through the Accounts Payable Office using an AP Payment Request Form (formally known as the Check Request form) and the recommended MEMORANDUM OF UNDERSTANDING - PARTICIPANT SUPPORT STIPENDS OR SUBSISTENCE ALLOWANCES for direct payment to the participants.
  2. Payment through Financial Aid (ie: SURE, FACES) using an appropriate project specific to Undergraduate or Graduate students (i.e., projects with a 997 or 998 prefix).
  3. Payment through payroll if the participant is being paid a stipend and is already paid as a student employee through payroll. The stipend amount for students already paid through payroll must be set up in the SPD/Payroll system by the department. A subproject should be set up in the accounting system within the same fund for the participant support costs with a zero percent F&A rate.

Payments to non-student participants
Submit an AP Payment Request Form (Formally Check Request Form), Vendor Profile Form, and a recommended MEMORANDUM OF UNDERSTANDING - PARTICIPANT SUPPORT STIPENDS OR SUBSISTENCE ALLOWANCES to the Institute’s Accounts Payable department. The check box on the AP Payment Request Form form should be marked "Non-GT Student Training Stipends, Non-Employee Awards (Sponsored Funds Only)" if used for stipend payments and "Reimbursement" for other expense reimbursements. For travel reimbursement see Policy No. 6.16 – Non-Employee Travel.

For additional information regarding the AP Payment Request Form, please contact ap.ask@business.gatech.edu or go to www.procurement.gatech.edu.

IRS Regulatory Requirements
The Institution will report participant support payments to the individual on IRS Form 1099-Misc at the end of each year or W-2 if the student/participant is paid through payroll.

Contact the Grants and Contracts Accounting Department at gc.ask@business.gatech.edu for specific guidance related to managing sponsored projects at Georgia Tech.

Personal Services Reporting Using the Plan Confirmation System

Personal Services Reporting Using the Plan Confirmation System
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:34
Policy No
3.2
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Jonathon Jeffries
Contact Title
Director, Cost Accounting
Contact Email
jonathonjeffries@business.gatech.edu
Reason for Policy

This policy outlines requirements and procedures to facilitate the Georgia Institute of Technology (GT) compliance with the Federal Government's Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR 200), hereafter referred to as Uniform Requirements. The Uniform Requirements establish principles for determining costs applicable to grants, contracts, and other agreements between Federal agencies and non-Federal entities (i.e., educational institutions). All Federal agencies that sponsor research and development, training, and other work at educational institutions must apply the provisions of the Uniform Requirements in determining the costs incurred for such work.

GT must have financial systems and internal control procedures in place to assure compliance with the terms and conditions of these agreements and State and Federal regulations concerning sponsored programs. The documentation and support of the distribution of salary and fringe benefits charged to sponsored programs is a critical element of compliance. The requirements for this documentation are defined in section 200.430(i) of the Uniform Requirements and require salary and fringe benefits to accurately reflect the work performed.

Policy Statement

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.

Scope

This policy applies to individuals who charge time to sponsored funding sources across all units of the Georgia Institute of Technology, with the exception of the Georgia Tech Research Institute (GTRI). GTRI employees should reference GTRI Policy 6190 - Reporting Time and Paid Leave.

Policy Terms

Annual Statement of Reasonableness (ASR)

The Annual Statement of Reasonableness report, which is produced annually for employees using the PCS, is used for documenting the confirmation and certification by employees that their effort allocation was reasonable and correctly posted in the past fiscal year. This statement shows the amount of salary charged to each of the employee's sponsored awards along with all other activities compensated by GT and the percentage of each amount to the total effort. The manual ASR provides a means of making adjustments in payroll distributions if corrections are required.

Cost Share A portion of an externally funded award where GT resources are committed and tracked in the Grants Management System.
Distribution

(Payroll) distribution relates to how an individual's compensation is allocated across various funding sources in relation to work performed.

Externally Funded Awards

An award or agreement by an external Federal or Non-Federal entity that is separately budgeted for in the Grants Management system.   Georgia Tech Foundation and Georgia Tech Research Corporation funds are considered to be internally funded.

Period of Performance

The time during which new obligations can be incurred to carry out work on a sponsored award. A Federal awarding agency must include a start and end date of the Period of Performance in the award.

Workload Assignment Form (WAF)

The Workload Assignment Form (WAF) report is produced monthly for employees covered by the PCS to review their effort allocation for accuracy and make timely corrections. Each monthly WAF covers an entire fiscal year, July 1 to June 30, including both actual payments and planned salary distribution for future periods.  These forms should be retained by employees covered by PCS during the fiscal year until the ASR is confirmed.

 

Procedures

Forms
To obtain hard copy forms, please contact the Office of Grants & Contracts Accounting via Service Now.

 

Responsibilities

7.1 Departmental Responsibilities
Unit financial managers should provide instructions and support to employees covered by the PCS to help employees understand their responsibilities with the system. Training is supported by the Grants and Contracts Accounting Office via an on-line web tutorial. More information can be found here regarding training.  Once completed, an electronic acknowledgement is recorded for all employees whose salaries are charged directly to externally sponsored awards.

7.2 Principal Investigator Responsibilities
Each GT PI is responsible for effectively overseeing and managing their sponsored awards based upon his/her knowledge of the field of study and capabilities to conduct the research in an efficient and productive manner.

7.3 Employee Responsibilities
Employees are responsible for:

  • Completing required PSC training and attestations,
  • Reviewing their respective WAF during the fiscal year until the ASR is confirmed,
  • Communicating WAF inaccuracies or discrepancies, to their supervisor immediately,
  • Reviewing and confirming the ASR by the published deadlines,
  • Providing supporting documentation as needed for WAF and ASR confirmations,
  • Reporting significant changes to the actual effort given to an award or planned to be given to an award,
  • Notifying Commitment Accounting via Service Now in the event of supervisor inaction on WAF and ASR reconciliations.
Enforcement

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

Policy History
Revision Date Author Description
07/7/2021 Office of Grants & Contracts Accounting Editorial updates.
10-20-2020 Office of Grants & Contracts Accounting Updated in compliance with OneUSG Connect transition.
10-17-2015 Office of Grants & Contracts Accounting Align with terminology of Fair Labor Standards Act (FLSA)
10-01-2015 Office of Grants & Contracts Accounting Revise Special Documentation Requirements and Limitations – Externally-funded Sponsored Projects from 120 days beyond the original expense posting date to 90 days aligning with close-out requirements of OMB 2 CFR 200.
11-05-2014 Office of Grants & Contracts Accounting Align with requirements of 2 CFR 200
04-01-2012 Office of Grants & Contracts Accounting Administrative review

 

 

 

Project Close-out in Grants Management System

Project Close-out in Grants Management System
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 10:00
Policy No
3.11
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

This policy summarizes the review process to financially close sponsored awards in the accounting records of the Georgia Institute of Technology in accordance with close-out requirements mandated by Federal regulations, including the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR 200), sponsor requirements, and award terms and conditions.

Policy Statement

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).

 

Scope

All employees engaging in sponsored research activity.

Policy Terms

Matching/Cost Sharing Funds
The Institute's contribution to an externally funded sponsored award when contractually obligated for awards accepted by the Office of Sponsored Programs (OSP) in the name of Georgia Institute of Technology or the Georgia Tech Research Corporation.

Procedures

The Office of Grants and Contracts Accounting, in collaboration with financial representative in the campus units, is responsible for the financial close-out of sponsored awards in the Institute's accounting records for both external sponsored awards and restricted gift allocations funded by the Georgia Tech Research Corporation. Steps taken to complete the financial close-out process are as follows:

  1. Personnel in the Office of Grants and Contracts Accounting may review expenditures and obligations allocated to sponsored awards period of performance. The review may include, but is not limited to, review of transactions to ensure expenditures are within sponsor guidelines established in the award document and in compliance with applicable laws and institutional policies, including the Federal Government’s Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR 200).
  2. G&C personnel responsible for award close-out will work collaboratively with the campus unit financially responsible for the prime award. Any unrecorded activity must be verified by the G&C personnel as allowable in order to include those costs and/or unliquidated obligations in a financial report or final billing to the sponsor.
  3. In accordance with 2 CFR 200.344, the non-Federal entity must submit, no later than 120 calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award. This deadline may be extended based on requirements for specific sponsors or contract terms and conditions that indicate a due date other than 120 days after the performance end date.
  4. Grants and Contracts Accounting personnel are responsible for monitoring awards which have been financially closed with the sponsor but have outstanding action required by campus units. Until all internal adjustments are complete, the sponsored award will not be inactivated in the accounting records.
  5. At the time final payment from the sponsor is received and all internal actions have been processed (i.e., transfer of overrun costs to a discretionary funding source) in the accounting records, the Office of Grants and Contracts Accounting inactivates the award in the Institute's accounting records.

Fixed-price Sponsored Projects
Fixed-price sponsored awards will be closed in same manner as standard cost-reimbursable awards. In accordance with 200.201 (b)(3) of the OMB Uniform Requirements (2 CFR 200), written certification that the project or activity was completed or the level of effort expended must be obtained. If the required level of effort or activity was not carried out, the amount of the award must be adjusted.

The PI Fixed Price Close-out Certification must be completed and submitted to Grants & Contracts Accounting for review. After certification, immaterial residual balances (if any) remaining on fixed price awards will be transferred to a departmental GTRC allocation, net of applicable F&A expenses, to be managed by the Chair/Director of the department.

Frequently Asked Questions

Please refer to the Grants and Contracts Accounting web site at www.grants.gatech.edu for additional information

Responsibilities

Principal Investigators, assigned delegates, and unit financial officers are responsible for providing proper oversight and management of sponsored awards during the performance and close-out periods.

Valuation and disposition of equipment and supplies, including computing devices, must be managed in accordance with 200.313 “Equipment” and 200.314 “Supplies” of the OMB Uniform Requirements (2 CFR 200).

Enforcement

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

Policy History
Revision Date Author Description
09-09-2021 Office of Grants & Contracts Accounting Updated to align with 2 CFR 200, editorial updates to align with new financial system
10-01-2015 Office of Grants & Contracts Accounting Revise close-out process for Firm Fixed Price awards
11-05-2014 Office of Grants & Contracts Accounting Align with requirements of 2 CFR 200
04-01-2014 Office of Grants & Contracts Accounting Administrative review

 

 

Project Set Up in Grants Management System

Project Set Up in Grants Management System
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:43
Policy No
3.8
Last Revised
Review Date
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

This procedure explains the method of establishing a new sponsored project in the official accounting records of the Georgia Institute of Technology. Projects are set up in the accounting records upon authorization of the sponsoring entity and the acceptance of the funding terms and conditions by the Georgia Institute of Technology or the Georgia Tech Research Corporation.

Policy Statement

The Office of Grants and Contracts Accounting is charged with the establishment of sponsored projects in the accounting records of the Georgia Institute of Technology upon receipt of properly authorized/approved budgetary and invoicing documentation for awards under the direction of Institute personnel in the following funds: Resident Instruction (RI), Georgia Tech Professional Education (GTPE,), and Enterprise Innovation Institute (EII). Awards are accepted and/or negotiated with external sponsors by the Office of Sponsored Programs (OSP) to minimize the risk to the Institute. After an agreement is accepted and a project number assigned, OSP forwards copies of the documentation to the Project Director/Investigator, the School Administrator, the Grants and Contracts Accounting office and appropriate representatives within the respective campus units via electronic notification. With the exception of sponsored awards funded by the Georgia Tech Foundation and the Georgia Tech Research Corporation, most requests received by the Grants and Contracts Accounting office without approval by the Office of Sponsored Programs will be returned.

Procedures

Upon receipt of an accepted award, OSP contacts the Office of Grants and Contracts Accounting to establish a sponsored fund and project number in the accounting records of the Institute. Only after the project number is assigned can costs be allocated to the award for cost recovery from the sponsoring entity. At the time the project number is assigned, the Grants and Contracts Accounting office has notification that an award has been accepted by the Institute and/or Corporation and the following steps are taken to monitor the project and establish the sponsored project in the accounting records:

  1. Demographic information is sent electronically from OSP to the GM System.
  2. Contractual budgets are established in the accounting records by the Office of Grants and Contracts Accounting.
  3. A project accountant is assigned based upon the sponsoring entity at the time a project number is assigned.
  4. A review of the contractual terms and conditions for financial matters (i.e., budget, financial reporting, billing, etc.) budget distribution, contractual matching cost requirements, invoicing and financial reporting requirements, effective and termination dates is performed by the Grants and Contracts accountant to limit the risk that contractual obligations will not be met. Discrepancies are brought to the attention of the Contracting Officer in OSP for clarification and/or adjustment.
  5. Posting errors should be brought to the attention of the accounting staff in the Grants and Contracts Accounting office for correction.

A separate process/procedure has been developed to account for minor Gifts and Grants (amounts usually between $1,000 and $15,000) received by Georgia Institute of Technology that contain restrictions as to the use of the funds, but have no requirements for project deliverables or intellectual property rights. These Gifts and Grants are identified as GIT Miscellaneous Awards in the accounting records of the Institute. If the award meets these requirements, the Director of Grants and Contracts Accounting is authorized to establish a restricted fund to manage the award upon receipt of a “New Project Request Form” from a Unit Financial Manager along with the funds. If the award has deliverable requirements, any stipulations related to intellectual property, represents an award from a federal sponsor, or exceeds the limit of funding referenced above, the award documentation will be forwarded to the Office of Sponsored Programs for processing or other action in accordance with existing procedures.

Cost Share Projects
Cost share (Matching) funds are those funds contractually obligated by the Institute to meet the financial requirements specified in a sponsored award. The GM System obtains contract information directly from the OSP database and reports Cost Share Obligation on the "Fund" Demographics Panel. All related cost share projects are linked to the sponsored project for reporting purposes. The GM System is designed to prepare Cost Share reports on a regular basis. See G&C Policy 3.9 “Cost Share Expenses” for procedures and additional guidance.

Contact the Grants and Contracts Accounting Department at gc.ask@business.gatech.edu for specific guidance related to managing sponsored projects at Georgia Tech.

Record Retention - Federal Sponsored Projects

Record Retention - Federal Sponsored Projects
Type of Policy
Administrative
jbarber32 Wed, 09/26/2012 - 16:02
Policy No
3.20
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

The policy is to explain the special record retention requirements governing Federal sponsored projects.

Policy Statement

Georgia Tech is a unit of the Board of Regents of the University System of Georgia (USG).  The Institute follows the official USG Records Retention guidelines.  These guidelines (including retention periods) can be found at the following web link:

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

 

Scope

This policy is applicable to accounting records relating to Federal sponsored projects.

Procedures

Standard payroll, procurement, accounts payable, travel, and general accounting supporting documentation is maintained centrally in accordance with USG retention guidelines.

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

Additional Retention Requirements – Federal Sponsored Projects

Central sponsored program files, including award documentation, financial reports and summarized accounting system information are retained in accordance with the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements (2 CFR 200), Section 200.333 – 200.337 – “Record Retention and Access”. Section 200.333, Retention requirements for records, states financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to an award must be retained for a period of three years from the date of submission of the finial expenditure report** or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.

Detailed Federal sponsored project expense records that exceed the USG/Institute retention period should be maintained by the home department of the Project/Sub-Project Principle Investigator in accordance with 2 CFR 200 requirements.

**Final Expenditure Reports are typically due 60-120 days after the final expiration date of the sponsored award.

Responsibilities

Contact the Grants and Contracts Accounting Department at gc.ask@business.gatech.edu for additional guidance related to record retention for Federal sponsored projects at Georgia Tech.

Enforcement

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

Policy History
Revision Date Author Description
August 2021 Office of Grants & Contracts Accounting Editorial update
April 2015 Office of Grants & Contracts Accounting Update per OMB Requirements
12-30-14 Office of Grants & Contracts Accounting Align with requirements of 2 CFR 200

 

Sponsored Project Budget Revisions

Sponsored Project Budget Revisions
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 10:30
Policy No
3.19
Last Revised
Review Date
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

This procedure describes the process to be used by centers, departments and the Office of Grants and Contracts Accounting (G&C) to prepare and process revisions to existing sponsored project budgets. The Office of Grants and Contracts Accounting is responsible for processing budget revisions for sponsored projects managed by Resident Instruction (RI), Georgia Tech Professional Education (GTPE), Enterprise Innovation Institute (EII), and Plant funds (if applicable).

Procedures

Departmental/Unit Approval for Budget Revision to Sponsored Projects

Staff with the proper approval and authority may initiate a request for a new sponsored sub-project number using the WEB Grants Management system. Users of the web-based Budget Revision to Sponsored Projects tool have a responsibility to ensure the accuracy and legitimacy of the sub-project requests they initiate. When Budget Revision requests are submitted, the user must read, confirm, and acknowledge the following:

  1. I have Departmental/Unit authorization to prepare and approve this request for a new sub-project and/or budget revision.
  2. This request for a new sub-project and/or budget revision has been reviewed and approved by the project director.
  3. This request for a new sub-project and/or budget revision complies with all terms and conditions of the supporting sponsored agreement.
  4. This request for a budget revision has been approved by OSP or does not require OSP approval.

Budget Revision to Sponsored Projects – Process Steps

Requests for sponsored project budget revisions are to be prepared using the Budget Revision to Sponsored Projects feature available on the WEB Grants Management menu. Additional procedures and steps to navigate this feature of the system can be found in the Grants Management for Campus Administrators training manual located on the G&C website. Budget revisions associated with new sub-projects must adhere to the standards outlined in G&C Policy No. 3.18 – Establishing Sponsored Sub-project Numbers.

  1. Requests for sponsored project budget revisions are to be prepared using the Budget Revision to Sponsored Projects feature available on the WEB Grants Management menu.
  2. Upon submission, the system will send a notification e-mail to the requestor.
  3. The revision request is electronically routed to G&C for review and approval except in the following circumstances where budget revision requests are automatically approved:
    • Re-budgeting within the same project, which nets to zero. For example, a one-sided entry re-budgeting between budget categories such as travel, M&S, etc. (Only enter the project number in the Main project field; the sub-project field should remain blank)
    • Re-budgeting between two existing projects within the same fund, which nets to zero. For example, a two-sided entry re-budgeting between the main project and a sub-project within an award. (Enter appropriate project number in both the Main project and Sub-project fields)
    Please note, initial budgets for new awards and budget revisions associated with modifications are completed by Grants and Contracts Accounting. These revisions are automatically approved.
  4. G&C Accounting will proceed as follows for sponsored project budget revisions received in the above format with proper department/unit approval:
    • The revised budget will be established in the G&C accounting system
    • The revision will be reflected in Project Expense and Budget (PEB) the following day
    • Notification will be sent by email

Contact the Grants and Contracts Accounting Department for specific guidance related to sponsored projects budget revisions.

Unbillable Sponsored Costs - Cost Overruns / Sponsored Project Exceptions

Unbillable Sponsored Costs - Cost Overruns / Sponsored Project Exceptions
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:39
Policy No
3.5
Effective Date
Last Revised
Review Date
Policy Owner
Office of Grants and Contracts Accounting
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

Although all expenditures and encumbrances are obligations of the Institute, only those costs to sponsored projects within the project performance period, approved award value, and terms and conditions of the award, are billable costs. Any other costs are unbillable and must be paid from alternative sources of funding. It is the fiscal responsibility of the incurring unit to cover costs obligated.

Untimely resolution of unbillable amounts may cause serious cash flow problems, may result in misstated financial statements, and may also result in unfavorable audit scrutiny.

Policy Statement

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.

Scope

All employees engaging in sponsored research activity.

Policy Terms

Advanced Project Number
A project to which expenses may be charged on behalf of an anticipated program prior to receipt of a grant or execution of an agreement, with approval from the Office of Sponsored Programs.

Procedures

To assist with the identification of sponsored projects that need special attention and corrective action, G&C Accounting prepares a monthly exception report to identify all awards with expenditures in excess of available funds and/or active awards with expired term dates. The monthly exception report is distributed to G&C personnel, unit financial officers and appropriate Deans/Directors; representing formal notification to the incurring unit. Corrective action must be taken to clear unbillable amounts as identified each month in the Sponsored Project Exception Report.

In addition to the monthly reporting procedures, G&C Accountants will initiate additional action to clear unbillable costs on sponsored projects. When the assigned G&C Accountant determines that costs incurred are unbillable to the sponsor, the following steps are taken:

These corrective action procedures do not apply to sponsored projects established with OSP-approved Advance Project Numbers or to current projects pending receipt of official modifications. However, written proof/justification from the sponsor is required under these circumstances.

  1. G&C contacts the incurring department to determine if immediate action can be taken to resolve the unbillable costs. If the administrator indicates that action will be taken to clear all unbillable amounts within a reasonable time frame (typically 30-60 days), no additional action is required at that time. The assigned G&C Accountant may also contact the Office of Sponsored Programs (OSP) at this stage to determine if official modifications are pending.
  2. If action is not indicated by the department or there is no pending action indicated to resolve the outstanding unbillable costs, the project will be reported to a G&C Accounting Manager. Review and follow-up by G&C Accounting is on a continuing basis until the unbillable costs are resolved in some manner.
  3. If appropriate action is not taken by the incurring unit and no additional information is provided to substantiate the unbillable amounts within approximately 60-90 days, all questioned costs will be transferred to the unit’s cost overrun project. This cost transfer will typically be processed within 90 days of the reported exception but may occur sooner as required by applicable financial reporting and/or invoicing requirements. It should be noted that costs transferred to a unit’s cost overrun project may be redirected to other projects as appropriate and as approved.

Forms
Reports are available in the Web Grants Management (GM) system to assist Principal Investigators, assigned delegates, and unit financial officers in providing proper oversight and management of sponsored projects. Proper project management includes posting all appropriate expenses on a timely basis, ensuring that costs are allowable and allocable to the project, and ensuring that expenses do not exceed the authorized budget. The “90 Days to Expiration Report” and the “Project Status Report” are useful for identifying projects that are at or approaching the unbillable stage. These reports are accessible from the main menu of Web GM.

Additional information related to Web GM, including access requirements and training materials, may be accessed from the Grants and Contracts Accounting web site at www.grants.gatech.edu

Contact the Office of Grants and Contracts Accounting at gc.ask@business.gatech.edu for specific guidance related to managing sponsored projects at Georgia Tech.

Responsibilities

Principal Investigators, assigned delegates, and unit financial officers are responsible for providing proper oversight and management of sponsored projects during the performance and close-out periods.

Enforcement

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

Policy History
Revision Date Author Description
11-05-2014 Office of Grants & Contracts Accounting Align with 2 CFR 200
04-01-2014 Office of Grants & Contracts Accounting Administrative review

Undesignated Sponsored Salaries

Undesignated Sponsored Salaries
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:35
Policy No
3.3
Last Revised
Review Date
Contact Name
Josh Rosenberg
Contact Title
Senior Director, Grants and Contracts Accounting
Contact Email
josh.rosenberg@business.gatech.edu
Reason for Policy

Undesignated Sponsored Instruction, Sponsored Research and Sponsored Other fund 20400 driver worktags are used as a means of facilitating the budgeting of personal services only when specific Award/Grant numbers are not yet known. Undesignated expenditures must be completely removed from the accounting records before the end of each fiscal year.

Policy Statement

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.

Scope

This policy applies to individuals who devote time to sponsored activities across all units of the Georgia Institute of Technology, with the exception of the Georgia Tech Research Institute (GTRI). GTRI employees should reference GTRI Policy 6190 - Reporting Time and Paid Leave.

Procedures

An undesignated sponsored report is produced each month by the Commitment Accounting team for each unit and for the Office of the Executive Vice President for Research (EVPR).

For the first eleven months (July - May) of the fiscal year, any undesignated expenditures over 60 days will require justification in accordance with procedures managed by the Office of the EVPR.

Prior to the end of the fiscal year, any balances in the Undesignated Sponsored Projects must be removed and posted to an appropriate unit worktag or other allowable funding source.

Contact Commitment Accounting through ServiceNow for specific guidance related to managing salary allocations as Express Direct Retro (EDR) transactions.

Contact the Grants and Contracts Accounting Department through ServiceNow for specific guidance related to managing sponsored awards at Georgia Tech.

Personal Services and Effort Reporting guidance is available on the Grants and Contracts Accounting website at www.grants.gatech.edu.

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Responsibilities
Commitment Accounting

Commitment Accounting will publish an aged undesignated summary report and deliver it to each department via email.

Grants and Contracts Accounting

Grants and Contracts Accounting will review and approve or deny salary cost transfers from undesignated to sponsored awards in accordance with Institute policy.

Enforcement

Salaries not moved from the undesignated driver worktag to the appropriate sponsored award in a timely fashion may be unbillable to external sponsors and therefore must be covered by the department’s state or discretionary funding.

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

Write-Off Requests

Write-Off Requests
Type of Policy
Administrative
jbarber32 Tue, 06/05/2012 - 09:42
Policy No
3.7
Last Revised
Review Date
Reason for Policy

This procedure explains how to write-off cost overruns on sponsored projects.

Policy Statement

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

Procedures

The budgetary unit must submit a Request for Cost Transfer - Sponsored Projects form in accordance with the procedures established and detailed elsewhere in the Policy Library.

  1. It is permissible to transfer an expense to the budgetary unit's current year's State funds or to discretionary sponsored funds if the expense causing the overrun is incurred in the current fiscal year. (Instruction or General Research funds - NEVER to Indirect Research)
  2. The expense must be written-off against current year funds for active projects. The budgetary unit must identify the current year's State account which is being used to cover the deficit.

Forms
The Request for Cost Transfer/Encumbrance - Sponsored Projects form may be obtained from the Office of Grants and Contracts Accounting.

Purchasing and Accounts Payable

Purchasing and Accounts Payable jbarber32 Thu, 06/07/2012 - 16:36

Accounts Payable

Accounts Payable jbarber32 Tue, 09/04/2012 - 16:01

Accounts Payable Processing

Accounts Payable Processing
Type of Policy
Administrative
jbarber32 Thu, 06/07/2012 - 16:38
Policy No
5.5
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

Scope

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

Procedures
4.1 Payments  
Trade Vendor Payment for Goods/Services

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

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

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

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

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

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

Revision Date

Author

Description

12/2020

Accounts Payable

Editorial updates to align with Workday

02/2011

Accounts Payable

New Policy

Document Management and Archive Retention

Document Management and Archive Retention
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:44
Policy No
5.5.4
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

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

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

Fiscal Year-End Encumbrances

Fiscal Year-End Encumbrances
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:22
Policy No
5.5.2
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

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

Procedures

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

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

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

Request for Stop Payment of AP Checks

Request for Stop Payment of AP Checks
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:46
Policy No
5.5.5
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

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

Policy Terms

Stop Payment

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

Void and Reissue Payment

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

Procedures

5.1 Stop Payments

Status of Accounts Payable Check

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

Requests for stop payment of Accounts Payable Checks

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

Enforcement

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

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday

08/2017

Accounts Payable

General updates

02/2011

Accounts Payable

New Policy

Vendor Invoice Submission and Payment Matching

Vendor Invoice Submission and Payment Matching
Type of Policy
Administrative
jbarber32 Thu, 06/07/2012 - 16:39
Policy No
5.5.1
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

Scope

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

Policy Terms

Supplier

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

Procedures

5.1 Invoice Submission

Invoice Submission

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

Invoice Submission for Office of Sponsored Programs(OSP)

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

5.2 Payment Terms

Payment Terms

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

Responsibilities

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

Enforcement

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

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

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updates to align with Workday

02/2011

Accounts Payable

New Policy

Employee Reimbursements (Non-Travel Related)

Employee Reimbursements (Non-Travel Related)
Type of Policy
Administrative
jbarber32 Thu, 06/07/2012 - 16:41
Policy No
5.5.1.7
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

 

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

Scope

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

Procedures

4.1

Employee Reimbursements (Non-Travel Related)

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

4.2

Refund of Personal Funds for Institute Expenses

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

Reimbursement for Food/Group Meal Expenses

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

Program Advance

- Study Abroad

-  Participant Research

 

 

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

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

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

Responsibilities

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

6.1. Employee

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

6.2. Expense Preparer

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

6.3. Approvers

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

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

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

Enforcement

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

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

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

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

FedEx and UPS Accounts

FedEx and UPS Accounts
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:05
Policy No
5.5.1.8
Effective Date
Last Revised
Review Date
Contact Name
Jeanette Smith
Contact Title
Procurement Coordinator
Contact Email
Purchasing.ask@business.gatech.edu
Reason for Policy

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

Policy Statement

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

Procedures

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

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

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

Disputed Charges

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

 

Policy History

 

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

Invoice Approval

Invoice Approval
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:58
Policy No
5.5.1.5
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

Scope

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

Policy Terms

Supplier

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

Procedures

5.1 Procedures

Invoice Overview

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

Invoice / PO Tolerances

 

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

Invoices may be in match exception for the following reasons:

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

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

Enforcement

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

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday

Payment Approval Authorization

Payment Approval Authorization
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:31
Policy No
5.5.1.2
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

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

Procedures

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

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

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

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

Payment Terms

Payment Terms
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:18
Policy No
5.5.1.11
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

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


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

Payment Turnaround

Payment Turnaround
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:39
Policy No
5.5.1.3
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

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

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

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

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

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

Processing Credit Memos and Refund Checks

Processing Credit Memos and Refund Checks
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:16
Policy No
5.5.1.10
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Procedures

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

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

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

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

Rush Payment Requests

Rush Payment Requests
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:46
Policy No
5.5.1.4
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable and Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

Procedures

3.1 Types of Rush Payments

Supplier Invoice Request (Non-PO Requests)

 

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

Additional approval in work flow is required.

Invoices with Purchase Order

 

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

5.2 Rush Payment Process

Procedure for Rush Payments

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

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

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

Invoice Payments

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

Responsibilities

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

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

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

Enforcement

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

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday
     

Student Payments

Student Payments
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 15:36
Policy No
5.5.1.9
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

The Internal Revenue Service (IRS) Publication 970: Tax Benefits for Education covers the rules for the taxation of student scholarships and fellowships. The publication states that the part of any grant, scholarship, or fellowship that represents payment for teaching, research or any other service is taxable to the student. Colleges and universities are obligated to withhold taxes on any award that represents compensation for services. Nonresident alien students may have taxes withheld on awards that do not represent compensation for services. Their tax obligations are governed by their visa status, United States (US) tax laws, and/or the tax treaty between the US and their country of residence. The Institute is required by federal law to withhold taxes on fellowships that require the student to perform services (past, present or future) to receive the award. Students that are required to perform a service as part of the fellowship agreement, must be classified as employees and payments are processed through the Payroll process. The consequences of not properly withholding the taxes may cause the Institute to incur serious financial penalties. The department is responsible for determining if a student’s fellowship/trainee award requires that a service be performed. The Office of Human Resources can assist departments that need clarification regarding proper employee classification.

Scope

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

Procedures

4.1 Student Payments

Student Payments – Georgia Tech Students

 

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

Stipends for Participant Support – Georgia Tech Students

Accounts Payable will process the following student payments:

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

Payment via Payroll

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

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

Foreign Student Payments

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

Tax Implications

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

Responsibilities

The student is responsible for providing sufficient information to the department to enable a determination of status. The student is also ultimately responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS.

The department is responsible for determining if a student's scholarship, fellowship or other award requires services to be rendered before receipt of payment.

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

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

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

Supplier Invoice Request (SIR)

Supplier Invoice Request (SIR)
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 15:05
Policy No
5.5.1.6
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

 

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

Policy Statement

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

Scope

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

Policy Terms

Suppler Invoice Request (SIR)

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

Payee Information

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

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

Procedures

5.1 Supplier Invoice Request Submission

Supplier Invoice Request (SIR)

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

5.2 Payment Types

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

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

Department of Homeland Security

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

The following information must be provided:

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

Honorarium

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

Legal Settlements

Submitted along with supporting documentation justifying the payment.

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

Non-Georgia Tech Student Training Stipends

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

Postage/ Shipping/ Mailing Services

           And

Telecommunication/ Utilities/ Services Paid to Provider

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

Registration Fees (Conference or Workshop)

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

Subscription, Membership or Certification Fee

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

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

Student Payments

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

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

Student Center Performer/Service Provider

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

Foreign Payments

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

Wire Payments

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

Responsibilities

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

Enforcement

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

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

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

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

2/2011

Accounts Payable

New Policy

Types of Payments

Types of Payments
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:27
Policy No
5.5.1.1
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Procedures

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

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

Vendor Registration, Maintenance and Inquiries

Vendor Registration, Maintenance and Inquiries
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:32
Policy No
5.5.3
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable/Travel
Contact Email
Vendor.help@business.gatech.edu
Procedures

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

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

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

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

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

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

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

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

Contracts

Contracts
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 16:55
Policy No
5.4
Last Revised
Review Date
Contact Name
Ajay Patel
Contact Title
Director of Purchasing
Contact Email
ajay.patel@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

Scope

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

Policy Terms

Contract

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

Construction or Public Works

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

Responsibilities

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

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

Enforcement

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

Gift Card Policy

Gift Card Policy
Type of Policy
Administrative
abruneau3 Wed, 11/13/2013 - 11:17
Policy No
5.6
Effective Date
Last Revised
Review Date
Policy Owner
Business Services
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable and Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

Gift card usage is allowable for the following purposes:

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

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

Scope

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

Policy Terms

Gift Card

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

Procedures

5.1 Gift Card Purchase

Payment of Gift Cards

 

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

Reimbursement for Purchase of Gift Cards

 

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

Tax reporting for Georgia Tech employees

 

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

Tax Reporting for non-Georgia Tech Employees

 

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

Responsibilities

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

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

Enforcement

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

Policy History
Revision Date Author Description
12-2020 Accounts Payable Updated to align with Workday
09-2018 Accounts Payable General updates
03-2014 Business Services New policy

Overview and Procurement Authority/Responsibility

Overview and Procurement Authority/Responsibility
Type of Policy
Administrative
jbarber32 Mon, 06/11/2012 - 17:15
Policy No
5.1
Effective Date
Last Revised
Review Date
Policy Owner
Business Services
Contact Name
Frans Barends
Contact Title
Sr. Director, Business Services
Contact Email
frans.barends@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

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

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

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

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

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

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

 

Scope

This policy applies to all Georgia Tech faculty and staff.

Enforcement

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

Policy History

Revision Date

Author

Description

8/2020

Procurement & Business Services

Updates to Policy

Procurement of Goods and Services

Procurement of Goods and Services jbarber32 Tue, 09/04/2012 - 16:14

Counterfeit Electronic Part Detection and Avoidance

Counterfeit Electronic Part Detection and Avoidance
Type of Policy
Administrative
Anonymous Tue, 09/04/2018 - 09:52
Effective Date
Last Revised
Review Date
Policy Owner
Georgia Tech Research Institute (GTRI)
Contact Name
Lydia Liford
Contact Title
PMO
Contact Email
pmo@gtri.gatech.edu
Reason for Policy

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

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

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

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

 

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

 

Definitions:

Acronym, Abbreviation, or Term

Definition

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

ECIA

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

EEE Electrical, Electronic, and Electromechanical

Electronic part

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

ERAI

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

GIDEP

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

GIT

Georgia Institute of Technology

GTRI

Georgia Tech Research Institute

Mission Assurance

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

NRE

Non-recurring engineering

Obsolete electronic part

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

ODM

Original Design Manufacturer

Original component manufacturer (OCM)

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

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

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

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

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

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

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

5.2 Inspection and Testing
 

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

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

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

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

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

Refer to Section 5.5 for supplier category and CASL information.

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

 

5.3 PROCESSES TO ABOLISH COUNTERFEIT PARTS PROLIFERATION
 

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

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

5.4 PROCESSES FOR MAINTAINING ELECTRONIC PART TRACEABILITY
 

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

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

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

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

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

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

a.  OCM of the parts;

b.  OCM-authorized suppliers of the parts; or

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

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

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

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

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

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

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

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

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

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

a.  Promptly notify the sponsor CO in writing;

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

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

5.6 REPORTING AND QUARANTINING OF COUNTERFEIT ELECTRONIC PARTS
 

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

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

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

5.7 METHODOLOGIES TO IDENTIFY SUSPECT COUNTERFEIT ELECTRONIC PARTS
 

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

Refer to the policy workflow attachment for the CASL.

5.8 DETECTION AND AVOIDANCE
 

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

5.9 POLICY FLOW DOWN
 

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

Subcontractor Flow Down

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

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

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

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

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

 

Purchase Order Flow Down

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

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

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

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

 

5.11 MONITORING POLICY UPDATES
 

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

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

5.12 CONTROL OF OBSOLETE ELECTRONIC PARTS
 

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

Frequently Asked Questions

Question: What is an electronic part?

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

Question: What is an electronic counterfeit part?

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

Question: How does this policy pertain to GIT?

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

Question: To whom does this policy apply?

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

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

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

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

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

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

Question: What types of counterfeits are there?

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

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

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

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

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

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

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

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

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

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

Question: What is the importance of visual inspections?

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

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

Question: What if traceability cannot be established?

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

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

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

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

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

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

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

Question: Who should be contacted for questions or assistance?

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

Responsibilities

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

Project Management Office

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

Georgia Tech organizational unit management

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

 

Enforcement

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

Related Information

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

Sources of Electronic Parts

DFARS 231.205-71

SubPart 231.2 - Contracts With Commercial Organizations

Industry Documents
Document Number Document Title, Revision, and Date

IDEA-STD-1010B

Acceptability of Electronic Components Distributed in the Open Market

JEDEC JESD-243

Counterfeit Electronic Parts: Non-Proliferation for Manufacturers

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

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

Other Reference Items  
CASL

Category 2 List of Suppliers

Category 3 List of Testers
ECIA ECIA  maintains a database (https://www.eciaauthorized.com/en) of verified authorized suppliers. The ECIA database is an alternative source for verifying authorized suppliers and shall be archived with purchase documentation.
ERAI ERAI, Inc. is a global information services organization that monitors, investigates, and reports issues affecting the global electronics supply chain.
GIDEP GIDEP is a cooperative activity between government and industry participants seeking to reduce or eliminate expenditures of resources by sharing technical information essential during research, design, development, production and operational phases of the life cycle of systems, facilities and equipment.
PMO Help Request and Email

Help Request Link

Email:pmo@gtri.gatech.edu

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

Employee Contractor Policy

Employee Contractor Policy
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 16:31
Policy No
5.2.8
Effective Date
Last Revised
Review Date
Policy Owner
Purchasing and Procurement
Policy Owners
Human Resources
Contact Name
Ajay Patel
Kevin Merkel
Contact Title
Director of Purchasing
Senior Director Payroll &Total Rewards, HR Services
Contact Email
ajay.patel@business.gatech.edu
kevin.merkel@ohr.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

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

Scope

This policy applies to all Georgia Tech units.

Procedures

Classification of Independent Contractors Versus Employees

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

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

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

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

Groups Usually Paid As Employees:

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

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

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

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

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

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

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

•Student providing non-skilled services – student assistants

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

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

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

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

Responsibilities

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

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

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

Exempt Procurements

Exempt Procurements
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 12:45
Policy No
5.2.1.2
Effective Date
Last Revised
Review Date
Policy Owner
Purchasing and Procurement
Contact Name
Ajay Patel
Contact Title
Director, Purchasing
Contact Email
ajay.patel@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

This policy applies to all Georgia Tech employees.

Responsibilities

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

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

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

Honorarium Payments

Honorarium Payments
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 16:14
Policy No
5.3.1
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

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

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

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

Procedures

When to Use

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

Approval Responsibility

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

Amount Limitations

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

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

Documentation Requirements

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

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

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

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

Payments to International Vendors and Nonresident Alien Foreign National Consultants, Scholars, and Official Visitors
Type of Policy
Administrative
agarton3 Fri, 10/26/2012 - 11:26
Policy No
5.3.5
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

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

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

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

Policy Terms

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

Procedures

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

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


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

Procurement Cards (PCard)

Procurement Cards (PCard)
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 09:45
Policy No
5.2.1.8
Effective Date
Last Revised
Review Date
Policy Owner
Purchasing and Procurement
Contact Name
Ajay Patel
Contact Title
Director of Purchasing
Contact Email
ajay.patel@business.gatech.edu
Policy Statement

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

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

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

Scope

This policy applies to all employees.

 

Policy Terms

General Information & Definitions

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

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

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

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

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

Cardholder - Employee who has been issued a PCard.

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

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

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

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

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

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

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

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

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

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

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

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

Procedures

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

Safeguarding of the Institute's Assets

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

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

Card Issuance

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

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

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

Employee Agreement Form

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

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

Card Limits

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

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

Authorized Uses of PCards

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

The PCard may be used for:

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

Note: Exceptions may be granted by the PCard Manager.

Prohibited Use of PCards

The PCard may not be used for:

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

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

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

Limitations on Vendors

High Risk Vendors:

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

Additional Restrictions:

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

Cost Allocation

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

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

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

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

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

Card Security

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

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

Lost or Stolen Cards

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

Surrendering the PCard

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

Documentation Requirements

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

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

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

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

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

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

Maintaining PCard Documentation

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

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

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

Using the PCard - Making the Purchase

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

Obtain Best Value

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

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

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

Sales Tax

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

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

Making the Purchase - Over the Counter

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

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

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

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

Returning Purchases Made With PCard

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

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

Disputed Transactions

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

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

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

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

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

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

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

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

Reviews/Approvals

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

Departments are responsible for reviewing all transactions to:

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

Payment

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

Compliance Reviews

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

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

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

Responsibilities

Department Responsibilities:

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

There are two types of approvers for PCart Transactions

Requisition Approvers:

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

Georgia Tech’s E Procurement System Reconciliation Approvers:

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

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

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

Violations of Policy

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

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

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

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

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

Georgia Tech employees can confidentially and anonymously report suspected PCard misuse to the Georgia Tech's Ethics Hotline, a secure and confidential reporting system at:https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

 

Revision Date Author Description
October 2021 Purchasing and Procurement Editorial updates
August 2020 Purchasing and Procurement Updates due to E-Procurement System Update
May 2017 Purchasing and Procurement State policy updates
July 2016 Purchasing and Procurement Update to  policy changes
March 2015 Purchasing and Procurement Added additional compliance measures
July 2013 Purchasing and Procurement Update to policy

 

Procurement of Goods and Services

Procurement of Goods and Services
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 13:57
Policy No
5.2
Effective Date
Last Revised
Review Date
Policy Owner
Purchasing and Procurement
Contact Name
Ajay Patel
Contact Title
Director of Purchasing
Contact Email
ajay.patel@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

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

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

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

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

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

Scope

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

Policy Terms

Georgia Tech E-Procurement System

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

Responsibilities

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

Enforcement

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

Policy History

Revision Date

Author

Description

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

07/2012

Purchasing Department

New Policy

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

Procurement of Group Meals for Employees, Students, and Official Visitors
Type of Policy
Administrative
jbarber32 Fri, 06/08/2012 - 14:26
Policy No
5.2.1.9
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Policy Owners
Accounting Services
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

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

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

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

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

Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

Examples of unallowable food charges:

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

PI has lunch/dinner with a colleague and discusses research

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

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

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

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

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

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

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

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

Payment Process

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

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

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

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

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

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

 

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

 

 

Procurement of Services

Procurement of Services
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 15:48
Policy No
5.3
Effective Date
Review Date
Policy Owner
Purchasing and Procurement
Contact Name
Ajay Patel
Contact Title
Director of Purchasing
Contact Email
ajay.patel@business.gatech.edu
Policy Statement

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

Reimbursable Expenses for Official Guests and Visitors

Reimbursable Expenses for Official Guests and Visitors
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 16:27
Policy No
5.3.2
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

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

Reimbursements for Purchases Made Using Personal Funds

Reimbursements for Purchases Made Using Personal Funds
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 13:07
Policy No
5.2.1.5
Effective Date
Last Revised
Review Date
Contact Name
Ajay Patel
Contact Title
Director of Purchasing
Contact Email
ajay.patel@business.gatech.edu
Reason for Policy

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

Policy Statement

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

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

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

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

Allowable Exceptions

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

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

Procedures

Reimbursement to Employees

Expenses

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

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

Reimbursement to Non-Employees

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

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

Policy History
09/2022 Purchasing Department Editorial updates.
11/2020

Purchasing Department

Updated to align with Workday implementation.

04/2019

Purchasing Department

Policy updates.

09/2017 Purchasing Department New Policy

Short-term Instructors or Lecturers (Non-Faculty)

Short-term Instructors or Lecturers (Non-Faculty)
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 16:39
Policy No
5.3.4
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Procedures

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

Subcontract Processing

Subcontract Processing
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 16:42
Policy No
5.3.6
Effective Date
Last Revised
Review Date
Policy Owner
Purchasing and Procurement
Contact Name
Ajay Patel
Contact Title
Director of Purchasing
Contact Email
ajay.patel@business.gatech.edu
Reason for Policy

Process to Request a Sub recipient Online-

Principle Investigator or Unit Financial Officers (Departmental Administrators)

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

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

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

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

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

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

Subcontract Invoice Payments:

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

Subcontract Closeout Process:

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

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

Unallowed Procurements or Sensitive Procurements

Unallowed Procurements or Sensitive Procurements
Type of Policy
Administrative
jbarber32 Tue, 06/12/2012 - 13:01
Policy No
5.2.1.3
Effective Date
Last Revised
Review Date
Policy Owner
Purchasing and Procurement
Contact Name
Ajay Patel
Contact Title
Director of Purchasing
Contact Email
ajay.patel@business.gatech.edu
Policy Statement

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

Procurements for Personal Use Using State Funds

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

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

Procurements by Employees

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

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