Accounting

General Information

Policy No: 
1.1
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
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 DateAuthorDescription
10-03-2014Controller's OfficeUpdates to verbiage

Account Number Structure

Policy No: 
1.2
Type of Policy: 
Administrative
Review Date: 
January 2015
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 NumberDescriptionLegacy Fund Number
    Funds
    01000GEAC Control Account01
    10000Cur Unrestricted - E & GN/A
    10010Cur Unrestricted - Resident In10
    11000Cur Unrestricted - Other OrgN/A
    11021Cur Unrestricted – GTRI21
    11022Cur Unrestricted - Con Ed22
    11023Cur Unrestricted – CRT23
    11024Cur Unrestricted – ATDC24
    11025Cur Unrestricted – EDI25
    12000Cur Unrestricted – AuxiliaryN/A
    12050Cur Unrestricted – Auxiliary50
    13000Cur Unrestricted - Student ActN/A
    13095Cur Unrestricted - Student Act95
    20000Cur Restricted - E & GN/A
    20010Cur Restricted - Resident In10
    20040Cur Restricted - Resident In40
    21000Cur Restricted - Other OrgN/A
    21021Cur Restricted – GTRI21
    21022Cur Restricted - Con Ed22
    21023Cur Restricted – CRT23
    21024Cur Restricted – ATDC24
    21025Cur Restricted – EDI25
    21041Cur Restricted – GTRI41
    21042Cur Restricted - Con Ed42
    21043Cur Restricted – CRT 43
    21044Cur Restricted – ATDC 44
    21045Cur Restricted – EDI 45
    21048Cur Restricted - Unexp Plant 48
    30000Loan – Federal N/A
    30070Loan – Federal 70
    31000Loan – Institutional N/A
    31070Loan – 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 CodeOrganization Name
    Some examples of Organization Numbers are listed below:
    221Con-Ed Distance Learning
    320Biology
    515International Affairs
    764Accounts Payable
    911Real 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 NumberProgram Description
    Below are some examples of program codes
    11000Instruction
    12000Research
    15910Intramural Athletics
    17700Suspense Plant
    21000Housing
  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 CodeSub-Classification DescriptionState or Sponsored
    Below are examples of Subclass Codes
    11000General OperationsState
    11680Undesignated Spons ResearchState
    12000Research ConsortiumState
    14000Lottery FundsState
    41000DS & S - GeneralDepartmental Sales and Service
    63000Sponsored Operation - LocalSponsored
    63439Fed Flow - NASASponsored
    64010Georgia Tech FoundationSponsored
    64100Sponsored PrivateSponsored
    64050Georgia Tech Research CorpSponsored
  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 IdentifierFund
Source
Old Account Number Portion
7631123 Accounting Services
7631123  

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)
0A1004136

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

Org IdentiferFund
Source
Old Account Number Portion
290610606 Army Intergovernmental (EDI)
290610606

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

Org IdentifierFund
Source
Old Account Number Portion
1606538 Daniel Guggenheim Endowment
1606538  

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

Agency Funds

Agency Funds General Information and Overview

Policy No: 
1.3.1
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
Contact Name: 
Carol Gibson
Contact Title: 
Controller
Contact Email: 
cgibson@gatech.edu
Reason for Policy: 

To provide guidance to Georgia Tech colleges, schools, departments and units as it relates to Agency Funds.

Policy Statement: 

Agency funds are monies held by the Institute acting as custodian or fiscal agent, when the custody of them provides a benefit to Georgia Tech. The monies are deposited with the Institute for safekeeping, to be used or withdrawn by the depositor at will. These funds may be held on behalf of students, faculty, staff, organizations, or some other third party that has a relationship with Georgia Tech. The Institute holds these funds temporarily and has no claim to them.

Before establishing an agency fund, the Georgia Tech should ensure that its relationship with the organization or third party is that of custodian or fiscal agent. A request for an agency account can originate from department acting on behalf of an external organization or from an outside third party.

Because an agency fund represents activity that is related, but not fundamental, to the Institute’s primary missions of education, research and public services, it is important that agency fund treatment is not awarded to activities that are a normal and continuing part of the institution’s mission. For example, Student Housing Fees should not be accounted for as an agency account because Student Housing is fundamental to an institution’s education mission.

The process of evaluating an activity for agency treatment must be in place to ensure the accuracy of the institution’s accounting for agency funds, and to facilitate effective stewardship of funds for which the institution has a fiduciary responsibility. At the same time, ongoing accountability and oversight for agency funds must be established to minimize Georgia Tech’s financial exposure.

Scope: 

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

Procedures: 

Criteria for Serving as a Fiscal Agent
The Institute may agree to serve as a fiscal agent for an agency fund only after satisfactorily considering all the following:

  1. The purpose for the agency fund must relate to, but not be a fundamental aspect of, activities dedicated to the achievement of educational, research and public service goals.
  2. The agency fund is in the best interests of the institution, taking into account all risk management implications.
  3. The establishment of an agency fund account is appropriate, according to the circumstances and reporting principles involved.
  4. An agreement governing the agency relationship is established.

Approval and Establishment of an Agency Fund
The approval and establishment of an agency fund does not:

  • Automatically entitle the organization to the use of any institution services, other than the normal administration of funds as it relates to cash receipt and disbursement services.
  • Place the agency fund under the institution’s tax-exempt umbrella. Monies accepted for deposit in an agency fund are not considered tax-deductible gifts to the institution. Expenditures from an agency fund are not entitled to the institution’s state sales tax exemption.
  • Make the institution liable for any of the organization’s debts, liabilities or actions.
  • Continue indefinitely. Agency status is contingent on adherence to all institution policies. The institution has the right to close an agency account at its discretion consistent with agreements between the organization and the institution.

Periodic Review of Agency Funds
The status of each agency fund should be reviewed periodically, at least once a year, for the purpose of ensuring whether the agency status should be suspended or revoked. Circumstances to consider when reviewing agency funds include:

  • Failure to adhere to institution policies and procedures.
  • The nature of the activities and functions has changed such that agency account status is no longer appropriate.
  • Deficit balances that are not remedied on a timely basis.
  • In the judgment of the president or designee, suspension or revocation is in the best interest of the institution.
  • Inactive balances should not be carried forward indefinitely from year to year, but should be disposed of in accordance with the agency agreement.

The Controller’s Office performs periodic reviews of Agency Funds to ensure accountability and oversight of the funds and to minimize the Institute’s financial exposure. The review is also performed to ensure funds are properly managed and that deficit balances are funded timely. Agency Funds are reviewed more frequently at year end.

Inactive Agency Funds (5 Years)
After five (5) years without activity, unused Agency Fund balances are forwarded to the state as mandated by escheatment laws, unless the disposition of unused balances is covered in the agency agreement. In instances involving federal funds, those funds should be returned to the appropriate federal agency. Complete files should be maintained for all agreements, letters, or other documents, for guidance in the proper handling of the funds. Please refer to the Board of Regents Business Procedures Manual Section 19.1, Unclaimed Property, for additional information.

Agency Funds with Deficit Balances
Individual agency funds should not carry a negative balance outside of short-term timing differences in processing, but under no circumstances should the agency fund groups as a whole have a deficit balance. At the end of the fiscal year, the Institute sets up accounts receivables and notifies donors to fund any applicable deficit balances. Agency funds with ongoing negative balances that are not remedied in a timely manner may be suspended or revoked.

Agency Fund Custodian Responsibilities
The individual designated as the Agency Fund Custodian has the responsibility to ensure that proper documentation procedures are followed for accounts which he / she controls, and to ensure that only authorized expenditures are made from the accounts. Any unauthorized expenditures report should be reported to the Controller’s Office. Further, the Custodian is responsible for exercising appropriate care in reviewing and approving transactions, ensuring the fund is active and resolving deficits timely. Lastly, the custodian is also responsible for providing in writing to the Controller’s Office any information which may change the status of an account. This includes 1) when responsibility for the account is reassigned; and 2) when an account is inactive and should be closed.

Responsibilities: 

The college, school, department or unit is responsible the fiscal management of Agency Funds requested by their unit. This includes reviewing and approving transactions, ensuring the fund is active, resolving deficits timely, and notifying the Controller’s Office of any changes in the fund.

The Controller’s Office is responsible for performing a quarterly review of Agency Funds which includes proper dissolution of inactive agency funds and contacting departments to request funding for deficit balances.

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

Establishing, Maintaining and Closing an Agency Fund

Policy No: 
1.3.2
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
Contact Name: 
Carol Gibson
Contact Title: 
Controller
Contact Email: 
cgibson@gatech.edu
Reason for Policy: 

To provide guidance to Georgia Tech colleges, schools, departments and units as it relates to establishing an Agency Funds.

Policy Statement: 

Colleges, schools, departments, organizational units, individuals, or groups may request the establishment of an Agency Fund which provides a benefit to Georgia Tech. The requester must provide justification with the request for establishment of the fund. Agency Fund agreements should be completed and maintained by the institution. The agreement should be signed by representatives of both the institution and the external organization or by the department representing the external organization. Each agreement should contain complete information on the terms and conditions of the agency relationship, including:

  • The business reason for the agency account; that is, the reason why the organization does not open its own bank account
  • The nature of activities that will be processed through the fund
  • Any specific restrictions, terms or conditions for the use of the funds
  • The estimated annual receipts and source of revenue/receipts
  • The legal/corporate status of the organization. For example, 501(c)(3), Corporation, Not for Profit Organization, etc.
  • The Federal tax ID number of the organization
  • The affiliation of the organization with Georgia Tech
  • The agreement from date and to date
  • The disposition of any remaining funds at the end of the agreement
  • The printed name, title and signature of the person(s) responsible for managing the funds including authorizing receipts and initiating disbursements
  • The printed name, title and signature of the Dean, Chair, Director or Department Head approving the agency fund

Departments, organizational units, individuals, or groups may request the establishment of an Agency Fund which provides a benefit to Georgia Tech. The requester must provide justification with the request for establishment of the fund.

Scope: 

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

Procedures: 

Establishing an Agency Fund
Colleges, schools, departments, organizational units, individuals, or groups requesting an Agency Fund must complete the Agency Fund Agreement Form. The form may be mailed to the Controller’s Office at Lyman Hall Mail Code 0257, or it may be scanned and emailed to accounting.ask@business.gatech.edu. Once received, the Controller’s Office will review the request and notify the college, schools, department, organizational unit, individual, or group requesting the fund by email whether or not the Agency Fund is approved. If an Agency Fund is approved, the email to the custodian will include terms and restrictions for managing the Agency Fund.

Maintaining an Agency Fund
The individual designated as the Agency Fund Custodian has the responsibility to ensure that proper documentation procedures are followed for accounts which he / she controls, and to ensure that only authorized expenditures are made from the accounts. Any unauthorized expenditures report should be reported to the Controller’s Office. Further, the Custodian is responsible for exercising appropriate care in reviewing and approving transactions, ensuring the fund is active and resolving deficits timely. Lastly, the custodian is also responsible for providing in writing to the Controller’s Office any information which may change the status of an account. This includes 1) when responsibility for the account is reassigned; and 2) when an account is inactive and should be closed.

Closing an Agency Fund
The Agency Fund custodian should request termination of agency funds which are no longer required. The account custodian should send an email to accounting.ask@business.gatech.edu requesting that the fund be closed. When the request has been processed, the agency fund custodian will receive written notification from the Controller’s Office that the fund has been closed.

Periodic Review of Agency Funds
The status of each agency fund should be reviewed periodically, at least once a year, for the purpose of ensuring whether the agency status should be suspended or revoked. Circumstances to consider when reviewing agency funds include:

  • Failure to adhere to institution policies and procedures.
  • The nature of the activities and functions has changed such that agency account status is no longer appropriate.
  • Deficit balances that are not remedied on a timely basis.
  • In the judgment of the president or designee, suspension or revocation is in the best interest of the institution.
  • Inactive balances should not be carried forward indefinitely from year to year, but should be disposed of in accordance with the agency agreement.

The Controller’s Office performs periodic reviews of Agency Funds to ensure accountability and oversight of the funds and to minimize the Institute’s financial exposure. The review is also performed to ensure funds are properly managed and that deficit balances are funded timely.

Additional Information
Additional information regarding Agency Funds can be found in section 14.1 (Agency Funds) of the Board of Regents Business Procedures Manual.

Responsibilities: 

The college, school, department or unit is responsible the fiscal management of Agency Funds requested by their unit.

The Controller’s Office is responsible for establishing the Agency Fund in the Institute’s ledger and performing periodic reviews of Agency Funds.

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 DateAuthorDescription
10-03-2014Controller’s OfficePeriodic review and verbiage update, new form. New Title. New Form.

Cash Receipts and Accounts Receivable

Daily Cash Deposits

Policy No: 
1.4.1
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
Policy Owner: 
Bursar’s Office
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 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.
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 DateAuthorDescription
10-03-2014Controller’s OfficeMinor updates to contacts, verbiage, etc. Policy reassigned to Bursar’s Office

Gift Deposits

Policy No: 
1.4.2
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
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 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 securities 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 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 DateAuthorDescription
10-03-2014Controller’s OfficeUpdates to verbiage

Cash Handling Procedures

Policy No: 
1.4.4
Type of Policy: 
Administrative
Review Date: 
February 2015
Policy Owner: 
Bursar’s Office
Contact Name: 
Carol Gibson
Contact Title: 
Controller
Contact Email: 
cgibson@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.

Petty Cash

Petty Cash Fund General Guidelines

Policy No: 
1.5.1
Type of Policy: 
Administrative
Effective Date: 
February 2011
Last Revised: 
October 2014
Review Date: 
October 2017
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.

Policy History: 
Revision DateAuthorDescription
10-03-2014Controller’s OfficeUpdates to verbiage

Petty Cash Reimbursement Procedures

Policy No: 
1.5.2
Type of Policy: 
Administrative
Effective Date: 
November 2009
Last Revised: 
October 2014
Review Date: 
October 2017
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 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 DateAuthorDescription
10-03-2014Controller’s OfficeUpdates to verbiage

Departmental Petty Cash Fund Procedures

Policy No: 
1.5.3
Type of Policy: 
Administrative
Effective Date: 
November 2009
Last Revised: 
October 2014
Review Date: 
October 2017
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.

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 DateAuthorDescription
10-03-2014Controller’s OfficeUpdates to verbiage

Departmental Petty Cash Fund Checking Account Procedures

Policy No: 
1.5.4
Type of Policy: 
Administrative
Effective Date: 
November 2009
Last Revised: 
October 2014
Review Date: 
October 2017
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:

  1. Original of the vendor's customary receipt which includes:
  2. Vendor name
    Date of purchase
    Price per item
    Total price for the quantity received
  3. Appropriate accounting distribution
  4. Signature of the individual authorized to approve departmental purchases on the reimbursement request only.
  5. 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.

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 DateAuthorDescription
10-03-2014Controller’s OfficeUpdates to verbiage. New section added by Treasury Services.

Non-Student Accounts Receivable

Policy No: 
1.6
Type of Policy: 
Administrative
Last Revised: 
March 2015
Review Date: 
March 2018
Policy Owner: 
Bursar’s Office
Contact Name: 
Terry Fair
Contact Title: 
Associate Bursar
Contact Email: 
terry.fair@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, at a minimum, provide the following information:

  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 information to the following address:
Bursar's Office
General Accounts Receivable Manager
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 Manager of the General Accounts Receivable Unit in the Bursar's Office.

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 as needed will be forwarded (which may include a Receivable Billing Disputes Form - see attachment on page 3 of this procedure) 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, legal action may be taken to collect overdue invoices.

Forms
An example of the PDF Non-Student Accounts Receivable Billing Disputes Form is available on line.

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 received by the unit should be forwarded to the attention of the General Accounts Receivable Manager in the Bursar's Office. They should not be deposited through a Daily Cash Transmittal Form.

Policy History: 
Revision DateAuthorDescription
March 2015Bursars OfficeUpdate policy contact information

Departmental Sales and Services (DSS)

Policy No: 
1.11
Type of Policy: 
Administrative
Review Date: 
January 2015
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 DateAuthorDescription
12-3-2013Carol GibsonMinor revisions to verbiage
3-26-2014Carol GibsonUpdated document exclude GTPE revenue from this process. Minor revisions to verbiage. Updated Procedures section.

  

 

 

Studies Abroad Program

Policy No: 
1.7
Type of Policy: 
Administrative
Effective Date: 
November 2009
Last Revised: 
June 2015
Review Date: 
June 2018
Contact Name: 
Carol Gibson
Contact Title: 
Controller
Contact Email: 
cgibson@gatech.edu
Reason for Policy: 

This procedure provides general guidelines for the operation of Studies Abroad Programs.

Policy Statement: 

Approval
An instructor (program director) who is interested in sponsoring a Studies Abroad Program must first prepare a formal proposal. The proposal must reflect all information related to the program including:

  1. Nature and purpose of the program;
  2. Type and number of credit/noncredit hours and contact hours, course title and number, examples of course-related activities and excursions outside the classroom and whether the course is undergraduate or graduate;
  3. Projected number of students and faculty;
  4. Projected cost to each student (tuition, matriculation, room and board, insurance, etc.);
  5. Projected budget to include non-instructional and instructional income and expenses using and exchange rate based on the previous 365 days average and amount and source of faculty compensation;
  6. Faculty salaries must be paid from instructional funds
  7. Faculty travel and expenses should be paid from instructional funds. If inadequate funds exist in the instructional project, then funds may be transferred from the agency project to the instructional project to cover these expenses.
  8. Programs should budget between 5 - 20% of program fee as reserve fund
  9. Program affiliations;
  10. Security and travel arrangements;
  11. Countries and cities to be visited;
  12. Insurance and risk management information;
  13. Any information and/or agreements needed from the college abroad;
  14. Program must follow the Study Abroad Committee process and adhere to GT deadlines for registration, tuition payments, etc.

In addition to the written proposal, a "Request for Approval for Studies Abroad Programs" form must be completed and submitted to the following persons for approval in the order listed below:

  1. Departmental Chair/Director of unit sponsoring the program
  2. Dean of the College
  3. Executive Director of the Office of International Education
  4. Vice Provost for International Initiatives or his designee
  5. Executive Vice President for Administration & Finance

Registration of Students and Payments of Fees
The Program Director is responsible for ensuring that the Studies Abroad courses are properly included on the On-line Student Computer Assisted Registration (OSCAR) system. Also, the Director must properly advise students of any and all special arrangements that must be made in order to participate in the program. The student has the ultimate responsibility for registering for the course that he/she wants to take.
The Office of International Education (OIE) is responsible for submitting all information relating to the registration of students to the Registrar's Office. Georgia Tech credit will be awarded to students who properly register for Studies Abroad courses listed on the OSCAR. If students choose to participate on a non-GT study abroad program, non-Georgia Tech course credits are subject to the college credit transfer policies outlined in the Georgia Tech Catalog.
Fees for the Studies Abroad Program should be paid to the Bursar's Office. The Program Director is responsible for ensuring that the proper projects have been established by the Controller's Office to accommodate deposits made for the respective program. The sponsoring faculty member and/or department should have previously requested the establishment of projects by following instructions in "Establishing An Agency Fund Account".  Study Abroad programs that require a Tuition Revenue project should contact the Budget Office to set up the appropriate project.
Cross-registered students from other colleges may not participate in Studies Abroad Programs sponsored by Georgia Tech. Those particular students must apply and be accepted by the Admissions Office as transient students in order to participate in such programs. Acceptance requirements for the cross-registered students should be coordinated between the Admissions Office and the OIE. These students must also pay tuition and fees for the program directly to the Bursar's Office.

Accounting for Revenues and Expenses
To comply with instructions issued by the Assistant Vice Chancellor for Fiscal Affairs at the Board of Regents on June 13, 1994, all Studies Abroad Programs will be accounted for as follows:

An Agency Fund project will be established for each Studies Abroad Program and will be used to collect and disburse funds for the program. These projects will be established by the Controller's Office at the request of the program/department sponsor. A signed copy of the "Request for Approval for Studies Abroad Programs” form should be included as an attachment to the request to establish the project. By agreement between the Board of Regents and the State Audit Department, all funds for a Studies Abroad Program must be expended or transferred within eighteen months from the beginning of the program. Applicable tuition and fees, and any other instructional fees, will be transferred by the Controller's Office to Resident Instruction as initiated or requested by the department. All instructional salaries and benefit costs must be paid from the sponsoring units within Resident Instruction, based upon the approved budget. All other costs can be handled in Agency Funds. Examples of costs processed in Agency Funds include the following: travel, supplies, printing, materials, tours lodging, insurance, rental of meeting places, and exchange rate variance cost. Promotional materials must include a statement indicating the type of expenses that will be paid from program fees. Rules and regulations related to the documentation of travel and reimbursable expenditures shall be followed according to procedures established in "Travel". Reasonable cash advances may be made by the Institute, but they must be supported by appropriate documentation at the conclusion of the program. The fee for each Studies Abroad Program will vary depending upon the feature of a particular program, but all must include matriculation fees and applicable tuition (non-resident) fees. The fee for non-resident students has been established at $250 for all Studies Abroad Programs (except for GT Lorraine's undergraduate program, which has a $3,500 non-resident fee) by the Board of Regents while the matriculation fees will vary depending on the number of credit hours taken. After all expenses for a Studies Abroad Program have been paid, but no later than eighteen months from the beginning of a program, any excess funds remaining in the Agency Fund Project must be transferred to an Institute Project. Any deficit incurred as result of a Studies Abroad Program must be funded by the sponsoring school/department.

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

Definitions:
Terms specific to this Policy. Where possible, use terms from the Master Glossary of terms that apply to this policy.

Policy History: 
Revision DateAuthorDescription
June 2015Controller's OfficeLanguage clarification throughout policy

 

GT Foundation Awards

GT Foundation Award Accounting

Policy No: 
1.8.1
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
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.

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 DateAuthorDescription
08-2013Policy LibraryFixed Unbillable Sponsored Projects link
10-03-2014Controller's OfficeUpdates to verbiage. New gift transmittal form

Georgia Tech Foundation Award Project Number Assignment

Policy No: 
1.8.2
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
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 Transmittal Form” from the Foundation (PDF Version). Please use updated form.

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

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

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

Sub-Projects
Sub-Projects that are required by the managing units should be established using the published procedure governing the establishment of sponsored Sub-Projects (Grants & Contracts: Establishing a Sub-Project Account).
GTF and Financial Aid sponsored sub-projects are managed by the Accounting Services Department. All other sponsored awards (including sub-projects) are managed by the Office of Grants and Contracts Accounting.

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 DateAuthorDescription
10-03-2014Controller’s OfficeUpdates to verbiage. Title update

Scholarship and Fellowship Projects

Establishing Scholarship and Fellowship Projects

Policy No: 
1.9.1
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
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

Policy No: 
1.9.2
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
Policy Owner: 
Bursar’s Office
Contact Name: 
Carol Gibson
Contact Title: 
Controller
Contact Email: 
cgibson@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 DateAuthorDescription
10-03-2014Controller’s OfficePeriodic review and verbiage update. Policy Number change. Assignment change to Bursar’s Office.

Tax Implications for Student Receiving Scholarships, Fellowships or Traineeships

Policy No: 
1.9.3
Type of Policy: 
Administrative
Review Date: 
February 2015
Contact Name: 
Carol Gibson
Contact Title: 
Controller
Contact Email: 
cgibson@gatech.edu
Reason for Policy: 

This policy was created to provide tax guidance to students receiving scholarships, fellowships or traineeships.

Policy Statement: 

The Internal Revenue Code has special provisions that address the tax status of scholarships/fellowships/traineeships. Any tax responsibility under this law belongs to the student. Each scholarship, fellowship or traineeship recipient is responsible for determining how the tax law applies to his/her particular circumstances. The procedures outline some key points regarding the tax law.

Scope: 

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

Procedures: 

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.

IRS Regulatory Requirements
No taxes are withheld from payments to undergraduate students classified as a U.S. person. Payments to nonresident alien students may be subject to IRS tax withholding. 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 Tax Information website.

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: 
Revision DateAuthorDescription
10-03-2014Controller’s Office Updates to verbiage. Removed obsolete portions. Updated title.

Student Prizes and Awards

Policy No: 
1.10
Type of Policy: 
Administrative
Last Revised: 
October 2014
Review Date: 
October 2017
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 prize and award 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 DateAuthorDescription
10-03-2014Carol Gibson