Accounts Payable is responsible for the processing of all Institute payments, other than student financial aid/awards and employee payments for salary/wages.
|Trade Vendor Payment for Goods/Services||Vendor Invoice that references GT PO#||Vendor sends invoice to AP. AP enters invoice directly into BuzzMart.|
|Recurring Payment for Stipends, Non-GT Fellowship, Rent||AP Recurring Payment Request Form||Department completes form and sends to AP. AP establishes recurring payments based on schedule due dates.|
|Non-PO payments for Refunds, Reimbursements, Registrations, Memberships, Utilities and Honoraria||AP Check Request Form||Department completes form and sends to AP with supporting documentation. For all first-time payees, a Vendor Profile Form must be completed prior to payment.|
|Wire transfer payment||Wire Transfer Request Form||All regular procurement policies apply. Wire transfers are restricted to international payees|
|Nonemployee travel||TES for Nonemployees||See Section 6: Travel Policies|
These following sections provide instructions for the processing of each of these payment categories.
Georgia Tech Business Services retains electronic imaged documents as the official Institute record for invoices, Check Requests, Purchase Orders, vendor documents, and receipt documents for expense reimbursements (T&E and TES forms). In addition to vendor invoices, a rendered e-invoice is created for all invoice data that is received electronically from vendors.
Campus departments and document processing should retain the original documents until they have been scanned and linked into the document imaging system, ImageNow. The original can be destroyed after the document has been digitized. Providing the digitized document reflects the information as originally created and can be accessed electronically for later reference.
Users are required to complete an access form to be granted privileges to view these documents. The form can be found under ImageNow Access Request Form.
Documents will be maintained in the document imaging system for the required retention period. Archive and document retention requirements can be found here
Beginning with the fiscal year ending June 30, 2001, Georgia Tech adopted a new policy regarding the accounting for open purchase orders at fiscal year end. Both state and non-state orders remain encumbered obligations of the budget year in which the orders are placed. This reserves monies to pay for the orders and at the same time it allows the Institute to account for funding in accordance with state appropriation guidelines (i.e., the funding is an obligation of the year in which the order is placed, not the year the obligation is paid).
(Note that prior to June 30, 2001, the Institute “expensed” open state funded purchase orders to obligate funding. This facilitated state budgetary reporting, but it was a violation of Generally Accepted Accounting Principles (GAAP). This variance from GAAP was noted in the Institute’s annual audit. Under the new practice, this disclaimer to our financial statements will be removed.)
To better understand how the new process works, know that each purchase order placed is associated with two different “year” designations. One of these is the “budget year”. This maps expenses and encumbrances to the state’s/BOR’s approved budget for Georgia Tech. The second designation is “fiscal year”. This indicator tracks expenses for GAAP (as opposed to budget) reporting. Most management reports developed for the campus track to the “budget year” automatically, since the budget is the primary management tool in place to control spending. In most instances, the budget and fiscal years are the same for a procurement transaction; however, for carry forward orders the encumbrance and expense will be reported as obligations of the old budget year, not the current budget year.
For prior budget year orders, units should approve invoices for payment once goods are received and forward the approved invoices to Accounts Payable (AP). AP will make payment to the vendor using the prior year funding. If insufficient funding is available on the prior year order to pay the invoice, a new distribution line using the same accounting information will be added for the overage in the current budget year. If there is a remaining balance of state funds on a prior budget year purchase order after all invoices have been paid, they will be lapsed to the Institute’s unreserved fund balance (surplus). This lapsed funding is not available to the unit. If there are remaining non-state funds available on a prior budget year order after all invoices have been paid, it will be released from the budget year obligated and moved to the current budget year as available funds.
There are numerous reports available to campus management to review procurement activity and funding availability. The reports recommended for prior budget year procurement management are the “Open Encumbrance Report” (GTPOR262), the “Prior Year Expense Ledger” (Report number 306 from the report menu) and the “Summary Prior Year PO” (Report number 718 from the report menu). If you need assistance running reports, please forward a request for help via e-mail.
Policy for Lapsing
Orders for sponsored sub-agreements and construction contracts may span two years without justification. Other purchase orders should be completed no later than the year following the year in which the order was placed, unless justified.
A stop payment is a request by the Institute to our bank to refuse the processing of a check upon presentation. The most frequent reasons for stop payments are a lost, stolen, or damaged check. The associated action is a request to reissue the payment via a new check. A stop payment is made to prevent two checks being presented for payment.
If a check was sent in error, a stop payment without a reissue request is requested.
The status of Accounts Payable check payments can be reviewed via the AP/PO Web Payment Inquiry tool on the Procurement website. Checks that have cleared the GT bank account will reference the date in the ‘DATE CLEARED’ field. Checks that have cleared the Institute’s bank cannot have a stop payment request placed.
A stop payment on a check may be requested by either the payee or the campus unit that originally requested the payment. In either case, the request must include the payee name, check#, campus ref/PO#, and amount. The reason for the request must be provided, as well as the request to reissue the check, if appropriate. If a campus unit requests that a check be reissued, it is the responsibility of the campus unit to alert the payee to ensure that the payee does not attempt to cash the check.
Stop payment requests can be requested 10 business days after check date, to allow for check audit and mail delivery. After confirmation of the stop payment from the bank is received, a new check will be reissued, if requested.
Individual invoices can be scanned and attached via email.
This form is used for all non-employee payment requests specifically listed on the form. Payments for office supplies, equipment, service agreements, sub-contracts, and other categories where the vendor provides an invoice should be processed via the BuzzMart requisition/approved invoice process. Employees use the Travel & Expense System for reimbursement of travel expenditures and the Employee Payment Request Form for non-travel reimbursements, including parking and STRAP reimbursements, program advances, and reimbursements for food/group meal events.
The Check Request Form (CRF) is designed to request check payment for the following payment types:
Agency Fund Payments
Agency Funds are funds held by Georgia Tech as an agent for an organization
or group affiliated with Georgia Tech. Expenses must be used to support the purpose of the Agency Fund. Projects that are designated as Agency Fund projects will always have a ‘9’ in the 4th digit of the project (for example, 210990724-Lego Camp and 536990110-Residence Hall Activity Fees).
Refunds are processed for students and visitors who are due a personal refund for key deposits, study abroad deposit, BUZZ card, or parking refunds. The original Georgia Tech receipt should be included or may be referenced on the form with the receipt # and deposit date in the Business Purpose section. Refunds should be charged to the same account that was used for the original deposit of funds.
Reimbursements to employees are processed via the Employee Payment Request Form. Non-employee reimbursements may be processed via the Check Request Form if the payee is not located on campus or for amounts greater than $500. Non-employee reimbursements of less than $500 should be processed as petty cash reimbursement through the Bursar’s Office, using the Bursar’s Office Reimbursement and Replenishment Form.
State regulations do not permit payment prior to receipt of goods/services, with the exception of subscriptions, institutional memberships, or postage/shipping, or where specifically required by the contract/agreement. Consequently, campus units should not use this form for pre-payment of goods/services, unless approved by the Purchasing Director. A subscription form, vendor estimate, or order form must be included to support the payment request. If the Georgia Tech vendor contract specifies that a down-payment or deposit is required, a pro-forma invoice must be attached along with the contract that specifically permits pre-payment.
Utilities / Shipping / Telecommunication Services Paid to Provider
Invoices payable to the service provider can be processed using the Check Request Form. Reimbursements to employees for these types of services are processed via the Employee Payment Request Form. For recurring monthly invoices, ensure that the approved amount is the current monthly charge and does not include a prior month’s un-posted payment.
Inter-Agency Transfer / Affiliated Organization Transfer
Transfers to the Georgia Tech Foundation, GTRC, GTAA, and other state agencies. These may be for expenses related to joint-staffing arrangements, co-sponsored events, or authorized transfers between affiliated organizations.
Sponsorship of events that support Georgia Tech’s mission and are specifically permitted by the fund source.
Department of Homeland Security
Processing fees associated with visas and associated expedite fees. The individual’s name must be included; however back-up documentation is not required for standard H-1B processing fees.
Payments for short-term, one-time service activities payable to a non-employee individual. The period of service should not exceed 9 days. Associated travel expenses may be reimbursed at the same time if original receipts are provided. The visitor must comply with Institute travel regulations. Use account 751108 for the honorarium payment and provide a Vendor Profile Form. Reimbursable expenses are coded to the appropriate travel expense account.
Professional Education Instructor
Payments to Professional Education instructors as specified in the PE service agreement. Use account 751108 and provide a Vendor Profile Form.
Payments to short-term, non-employee instructors. Use account 751108.
Ferst Center Performer
Payments to performers and artists as specified in the Ferst Center performance contract. Use account 751108.
Student Center Performer/Service Provider
Performers and service providers for student events may be processed via the Check Request Form if the vendor agreement is included to support the payment.
Payments to Attorneys
Payments to attorneys must be authorized by the Georgia Tech Office of Legal Affairs via e-mail approval or signature approval on the attorney’s invoice.
Catering / Group Meals
Statement of business purpose, list of attendees (if less than 15 participants), and invoice/receipt is required. If sponsored funds are used, the sponsor must specifically authorize use of funds. Approved Georgia Tech caterers must be used for all on-campus events, unless an exception is approved by Auxiliary Services. State of Georgia meal per diem limits must be used for all group meals, other than conferences/workshops or events using agency fund accounts. See "Procurement of Group Meals for Employees, Students, and Official Visitors" for more information regarding the purchase of group meals and food for
official Institute events.
Hotel rooms for official guests/visitors and candidates. Rental of meeting room space and transportation rental (taxi, bus, car) for groups.
Non-GT Student Training Stipends/Awards
SURF, REU, SURE, URS training stipends. Only sponsored funds may be used and payments must be approved by the Accounting Services Financial Aid accountant. See "processing fellowship and stipend payments" for more information regarding these types of payments.
Registrations can be paid for employees, students, consultants, or official guests/visitors. A registration form must be included and a copy will be sent with the check by Accounts Payable. Registration associated with college courses for credit cannot be processed through AP. STRAP and tuition remission programs are available as employee benefits, but must be pre-approved by the Office of Organizational Development prior to student registration.
Workshops or retreats can be processed as a registration if both an agenda and list of attendees are included and the supporting documentation shows an all-inclusive meeting price per person.
Employee Participants: If individual lodging or meals are charged, daily per diem limits are imposed and each employee participant must be more than 50 miles from home or headquarters. If lodging and meals are billed by person, all employee travel regulations prevail and the payment will be processed as employee travel reimbursement to each employee participant via the Travel & Expense System.
Students and other non-employee participants may have their charges directly billed by the vendor and payment may be processed via the Check Request Form. If meals are charged separately, the per person charge cannot exceed the State of Georgia meal per diem rates. See "Meals and Incidental Travel Expenses" for more information.
Non-Resident Alien Payments
Procurements of goods, services, or equipment over $5000 must be initiated via a BuzzMart requisition (Purchasing Take Action). Payments for awards, services and royalties are generally subject to mandatory IRS tax withholding and the payee must be legally authorized to receive payment for any service performed in the United States. See "payments nonresident aliens nonemployees" for more information.
Trade vendor invoices for goods and services should be associated with a BuzzMart PO. If the PO was not entered in BuzzMart prior to receipt of the invoice, a Confirming Order Form should be completed in BuzzMart to create a PO# and encumber funds, if the invoice is less than $5000. For orders over $5000, use the Non-Contract Form in BuzzMart. The invoice should not be included as an attachment to the Confirming Order or Non-Contract Form. Submit the invoice, including the PO# by e-mail, or, if the invoice is scanned to a WebNow work queue, approve the payment using the payment worksheet.
Availability of Form
The check request form is available from the Accounts Payable Forms. Link on the Accounts Payable website.
Payment requests that require a Vendor Profile Form (services, rents, awards, registrations) will not be processed until the Vendor Profile Form has been approved and processed.
For expedited payment, a vendor ID number should be entered on the form for payment to an existing vendor.
Unit Approval and Signature Authorization
Deans, directors and department heads are authorized to approve payment via the Check Request Form.
Approval Authorization may be delegated to departmental administrators. The Procurement Services Signature Authorization Form is used to document delegated authority. Department heads are responsible for ensuring that a current form is on file for those individuals that are authorized to approve Check Request Forms.
When an employee leaves the Department or is otherwise no longer authorized to approve payments, a revised Procurement Services Signature Authorization Form must be submitted to Procurement Services.
Deans, department heads, and directors (or delegated unit financial officer) are responsible for reconciling all expenses to the Georgia Tech Business Office Tech ledgers to ensure that expenditures have correctly posted to the correct project and expense code for the appropriate amount.
Effective 5/1/12, All payments $3000 and over must include an additional authorized approval signature.
The Employee Payment Request Form is designed to request payments to employees for non-travel related activity. Employees include all individuals who are active on payroll. All travel reimbursements are processed via the Electronic Travel and Expense System in Techworks.
Refund of Personal Funds for Institute Expenses
Refunds are processed for employees who are due a personal refund for key deposits, study abroad deposit, BUZZ card, parking refunds, payroll STRAP, etc). The original Georgia Tech receipt should be included or may be referenced on the form with the receipt# and deposit date. Refunds should be charged to the same account used for the original deposit of funds.
Reimbursement for Food/Group Meal Expense
A supplemental form, the Food/Group Meal Summary Documentation Form, must be included for reimbursement of any food or group meal expenses, with the exception of reimbursements exclusively using Agency Funds and invoice/receipt is required. If sponsored funds are used, the sponsor must specifically authorize use of funds.
Approved Georgia Tech caterers must be used for all on-campus events, unless an exception is approved by Auxiliary Services. State of Georgia per person meal per diems limit the amount that can be spent for each participant. See Food/Group Meal policy for specific policy guidance.
Program Advance/Reimbursement – Participant Research
The program coordinator may request an advance or reimbursement for program expenses when the scope of the project requires small dollar cash disbursement to participants where check payment would be impractical, an administrative burden, or payee identity is confidential. A statement of project scope, budget of proposed advance, and project dates must be included. Any employee participant that receives $75 or more per year must receive payment via Payroll.
Within 15 business days of project end, a summary of expenses must be submitted that references the original campus ref# and provides original receipts and/or a participant roster that documents receipt of funds. If additional funds are due, they can be requested via the Employee Payment Request Form. If all funds are not used, the program coordinator will return unused funds via a personal check (made payable to Georgia Tech) attached to the post-event summary of expenses. A program advance that is not substantiated with documented receipts and a business purpose that supports Georgia Tech will be classified as a taxable stipend and reported as income on the employee’s W-2.
Any individual payee/project participant that receives $600 or more per year will receive a 1099-misc. The campus unit is responsible for notifying Accounts Payable by January 10th for any payments for the prior calendar year that reach this limit. An IRS W-9 form or GT Vendor Profile Form must be submitted.
Program Advance – Study Abroad
The program coordinator may request an advance for group study abroad program expenses. A statement of study abroad program, budget estimate and program dates must be included.
Within 15 business days of program end, a summary of expenses must be submitted that references the original campus ref# and provides original receipts and a reconciliation of the advanced funds. If additional funds are due, they can be requested via the Employee Payment Request Form. If all funds are not used, the program coordinator will return unused funds via a personal check (made payable to Georgia Tech) attached to the post-event summary of expenses. A program advance that is not substantiated with documented receipts and a business purpose that supports Georgia Tech will be classified as a taxable stipend and reported as income on the employee’s W-2.
Prepayment of Hotel Expenses
Employees may be reimbursed prepayment of hotel deposits when it is required in order to secure a reservation. A copy of the TA and the hotel receipt or credit card charge should be submitted as supporting documentation for the expense. Per GT travel policy, travelers cannot be reimbursed for airfare prior to the trip, however, they have the option to direct bill their airfare through the Institute’s contracted travel agency, Travel Incorporated at (770) 291-5190.
Student Group Expenses
Employees may be reimbursed for payment of student expenses when a student(s) cannot otherwise pay for their own expenses. The employee should submit their personal expenses via the Travel and Expense system; however, additional expenses for students may be submitted on the Employee Payment Request Form. Appropriate supporting documentation (per the GT travel regulations) must be submitted.
Payment requests that may require a Vendor Profile Form will not be processed until the Vendor Profile Form has been approved and processed. The Vendor Look-Up tool (active HTML link is on the current electronic version of the form) provides information regarding the status of the vendor and notation if the Vendor Profile Form is on file in Accounts Payable.
Unit Approval and Signature Authorization
Employees are required to sign the form.
Deans, directors and department heads are authorized to approve payment.
Approval Authorization may be delegated to departmental administrators. The Procurement Services Signature Authorization Form is used to document delegated authority. Department heads are responsible for ensuring that a current form is on file for those individuals that are authorized to approve Employee Payment Request Forms. When an employee leaves the Department or is otherwise no longer authorized to approve payments, a revised Procurement Services Signature Authorization Form must be submitted to Procurement Services.
Deans, department heads, and directors (or delegated unit financial officers) are responsible for reconciling all expenses to the Georgia Tech Business Office Tech
ledgers to ensure that expenditures have correctly posted to the correct project and expense code for the appropriate amount. All payments over $500 must include an additional authorized approval signature.
This procedure applies to the request for, assignment of, and use of UPS and Federal Express Accounts. UPS is on a mandatory State Contract and should be used as the primary shipping vendor. Fed Ex should only be requested if shipping dangerous chemicals or if required for shipments per sponsors.
The authority to make purchases of freight is delegated to the administrative departments. This authority is vested in the Purchasing Department and administrated under the State Purchasing Rules and Regulations.
Establishment of Account
One or more accounts per delivery address may be established. A UPS Employee Agreement Form or a FedEx Employee Agreement Form should be completed and approved and sent to the Georgia Tech Purchasing Department if an employee is acting as the accountholder. The Purchasing Department will establish the account with UPS and Federal Express, based upon available account numbers. The department should take care in releasing the UPS and FedEx Account number as they will be responsible for charges associated with that account.
Payment of Invoices
All UPS and FedEx accounts can be invoiced to the department or set up with a Pcard for autopay. This set up is the responsibility of the accountholder.
Redistribution of Charges
Departments should the Concur system to redistribute charges if necessary for accounts linked to a Pcard. Multiple lines can be allocated for an ePayment request.
It is the cardholder’s responsibility to resolve discrepancies and ensure credits are received. When a cardholder discovers an incorrect amount has been charged or a questionable purchase appears on the monthly statement, the cardholder must immediately seek to resolve the problem directly with the vendor by calling UPS Customer Service at 1-877-289-6418 or FedEx Customer Service at 1-800-463-3339. Any communications should be documented on the statement (or attachment) including dates, persons involved, and a brief description of the problem.
|May 2015||P-Card Manager||Added UPS to approved charges|
|April 2018||Procurement Coordinator||Updated payment methods|
An invoice may be processed with no other supporting documentation, if a valid Georgia Tech BuzzMart Purchase Order is referenced on the invoice and the invoice matches the PO within tolerances.
Vendor invoices that reference a valid BuzzMart PO are entered directly by Accounts Payable and the system auto-matching process will match the invoice to the PO and the receipt (for orders $3000 and over)>
Invoice Approval Via Departmental WebNow Invoice Work Queue
Vendor invoices that do not reference a valid BuzzMart PO will be scanned into the departmental WebNow invoice queue for approval.
BuzzMart Invoice / PO Tolerances
Match exceptions will be created that prevent invoice payment for the following scenarios:
This policy documents the signature approval and authorization requirements necessary to commit Institute funds for the payment of goods, services and other non-payroll expenditures through Accounts Payable.
Delegation of Approval Authority
The Dean, director, or department heads may delegate the authority to approve payments, but not the primary responsibility of the approver. Deans, directors and department heads document authority through completion of the AP Signature Authorization Form (Check Request, Wire Transfer Request Form) and BuzzMart Role Request Form. Delegated signers should always sign their own name, rather than sign the name of the dean, director or department head. Once a signature delegation is provided, it is valid until cancelled by the unit.
Responsibility of Approver
The approver must verify the following prior to approval of payment:
The approver is responsible for submitting an approved invoice or Check Request Form for payments to Accounts Payable within ten business days of receipt of merchandise / services or receipt of invoice, whichever is later.
General trade vendor payment terms for orders will be net 30 days. Days are calculated from date of invoice, date of receipt of goods/services, or date of receipt of accurate invoice, whichever is later. Payment discounts will be taken when earned.
General payment terms for employees, official guests and visitors, and most payments paid via the Check Request Form will be net 00 days. Construction contractors and OSP sub-agreements will be paid as per the payment terms of the contract.
Governor's Executive Order - Prompt Payment of Invoices
Georgia Tech is mandated by Executive Order of the Governor of the State of Georgia to pay vendor
invoices within 30 days from the latter of:
Departmental Approval Turnaround
Invoices are entered by Accounts Payable and processed against the PO reference on the invoice. Invoices that are delivered directly to the department by the vendor must be sent to Accounts Payable immediately to ensure timely record of receipt. Departments are responsible for entering receipts for all POs $3000 and over and are responsible for managing all invoices that are in match exception status. Delays in approval or receipt entry should be noted in the Comments of the BuzzMart PO; for example, “Goods received damaged 06/30/2011, replacement anticipated 07/05/2011.”
Invoices that do not reference a valid PO will be forwarded to the departmental invoice approval
Work queue in WebNow and should be approved using the payment request worksheet linked to the invoice image.
Payment Request Turnaround
Accounts Payable is responsible for completing payment requests within five calendar days of reciept of departmental approval and all other necessary requirements, to ensure prompt payment of invoices. . It may however be necessary incertain instances that additional processing is required. Therefore, departments should submit requests in time to allow at least calendar ten days for processing. Should this not be possible, see "Rush Payment Requests". If Accounts Payable cannot process the payment due to missing or incorrect information, Accounts Payable is responsible for alerting department within ten calendar days. Department will be informed of problem and provided with instructions regarding what is needed to complete the transaction.
Credit Memo Instructions
Vendors issue credit memos for returned goods as well as pricing discrepancies. If a credit memo is anticipated, for overpayments, exchanges, etc., the department should hold the original or final invoice until it receives the corresponding credit memo. The credit memo and the invoice should be approved and submitted to Accounts Payable for payment. In the event an invoice is processed prior to receipt of the corresponding credit memo, the department can approve the credit, referencing the original campus reference # and account distribution, and submit to Accounts Payable for processing. Future invoice payments from any department will offset credit memos. If the corresponding invoice has been paid, and the department does not anticipate doing additional business with this vendor, the department is responsible for requesting a refund check in lieu of a credit.
Refund Check Instructions
When a department receives a refund check, the campus reference # and account number must be referenced on the check stub and submitted to Accounts Payable.
Accounts Payable will apply the refund to the appropriate account and deposit it with the Bursar's Office. For state projects, if the refund applies to a current year payment, use the current year account number. If the refund applies to a prior year payment, the surplus account will be credited.
Overview of Fellowships, Scholarships, and Trainee Program Payments
The Internal Revenue Service (IRS) Publication 970: Tax Benefits for Education covers the rules for the taxation of student scholarships and fellowships. The publication states that the part of any grant, scholarship, or fellowship that represents payment for teaching, research or any other service is taxable to the student. Colleges and universities are obligated to withhold taxes on any award that represents compensation for services. Nonresident alien students may have taxes withheld on awards that do not represent compensation for services. Their tax obligations are governed by their visa status, United States (US) tax laws, and/or the tax treaty between the US and their country of residence.
The Institute is required by federal law to withhold taxes on fellowships that require the student to perform services (past, present or future) to receive the award. Students that are required to perform a service as part of the fellowship agreement, must be classified as employees and payments are processed through the OHR/Payroll process. The consequences of not properly withholding the taxes may cause the Institute to incur serious financial penalties. The department is responsible for determining if a student’s fellowship/trainee award requires that a service be performed. The Office of Human Resources can assist departments that need clarification regarding proper employee classification.
All payments to students for research training grants, participant support, and scholarship/fellowships must be approved by Accounting Services Financial Aid Team prior to payment. The Vendor Profile Form must accompany the payment request. Once approved, the payment request and related documentation will be forwarded to Accounts Payable or Financial Aid for payment processing. For more information regarding graduate fellowships, refer to Accounting procedure Processing Fellowship Payments. Procedures related to undergraduate scholarships and fellowships can be found in Accounting procedure Processing Undergraduate Training Program Grants.
Overview of Stipends for Participant Support
GT Students: Stipends for Georgia Tech students are processed through Student Financial Planning and payments are posted to the student’s account through the Banner system.
Employees: Stipends awarded to employees are processed through Payroll.
Stipends to non-Georgia Tech students who are also not employed by Georgia Tech are processed through Accounts Payable via the Check Request Form. A Vendor Profile Form (or W-8BEN for foreign students) is required for all participant support stipend payments made through Accounts Payable. These payments are reported to the IRS on Form 1099-misc annually (or 1042S for foreign students).
Accounts Payable is responsible for processing payment requests within five business days of receipt of request, with the exclusion of peak periods. In order to allow efficient processing of all payments, requests should be submitted in a timely manner to allow adequate time for processing. There will be instances, however, that the campus unit is unable to do this due to circumstances beyond their control. Rush payment requests should only be used in those situations. Additional time and effort goes into providing campus with additional services such as rush payments. Campus units should follow the rush payment request procedures to ensure the payment is processed, and received by the vendor in the necessary time frame. In all cases, a Vendor Profile Form must be on file for payments to trade vendors and all payments for rents, royalties, and services. Same-day checks are not feasible, due to payment processing production schedules. Rush payment requests received by noon, if approved will be processed within 48 hours.
Procedures for Rush Payments
A rush payment request form must be submitted with all rush requests. All fields on the rush payment request form must be completed prior to the submission of a rush payment request form. This includes obtaining all appropriate department approvals. Valid justification must also be provided as to why an exception should be granted outside the standard processing time. Any forms with incomplete information or insufficient supporting documentation will not be processed, and will be returned to the requestor.
TThe Accounts Payable Manager will initially review to ensure all required fields on the payment request form have been completed and sufficient documentation has been provided.
All rush payment requests must be approved by the Director of Accounts Payable and Travel prior to being processed.
I. Invoice Payments
The invoice must be approved and have an appropriate PO reference and sufficient encumbrance balance to cover the payment. If the PO is $3000 or greater, a receipt must be entered in BuzzMart to ensure that the 3-way match is not delayed. Submit the invoice with the approved rush payment request form via an email attachment to firstname.lastname@example.org with ‘RUSH PAYMENT REQUEST’ in the subject line to ensure priority payment processing.
II. Rush AP Payment Forms - AP Payment Requests, Honorarium Requests, Student Payment Requests, e-Payments, Recurring Payments and Wire Transfers.
Submit the approved rush payment request form and the applicable AP payment request via an email attachment to email@example.com. Include ‘RUSH PAYMENT REQUEST’ in the subject line to ensure priority payment processing. Sufficient supporting documentation must also be included.
III. Rush Travel Forms - T&E Reimbursements, Employee Payment Requests, and Non-Employee Payment Requests.
For T&E reimbursements, ensure that all approvals have been completed and that the receipt images have been scanned and linked to the Expense Report. For TES and Employee Payment Request Forms, please or scan/attach via an email attachment to firstname.lastname@example.org. Include ‘RUSH PAYMENT REQUEST’ in the subject line to ensure priority payment processing. Sufficient supporting documentation must also be included.
In all cases, an approved rush payment request form must be submitted in addition to the original payment request i.e. invoice, AP payment request form, T & E reimbursement, wire transfer etc.
Payments processed by Accounts Payable for goods and services may generally be classified into the following types:
|EFT||EFT payments are made for all active employee reimbursements. Establishment of EFT Detail is through TechWorks Employee Self-Service for Payroll payments.|
|ACH||ACH payments are available for all non-employee payments. Establishment of ACH Is through GT’s Bank of America PayMode system. A registration link is available via The Business Services Vendor Information website.|
|Check||The standard payment process is via paper check mailed to the remit address on the Payment request or invoice.|
|Wire Transfer||International payees can receive funds in US or foreign currency via departmental Completion of the Wire Transfer Request Form.|
|Foreign Draft||A foreign draft can be issued to vendors that can not accept a wire transfer or a check In US currency. Use the Check Request Form and provide documentation to support the request for foreign currency payment.|
|PCard||The PCard can be used for small dollar purchases (less than $5000, with no single item over $3000) for non-GT contract catalog items.|
New Vendor Registration
A new trade, service, individual, or consultant vendor may be set up upon submission and approval of a Georgia Tech Vendor Profile Form. The Vendor Profile Form includes data required for IRS, State and Federal, and SBA reporting (note: registration vendors must supply FEI/EIN on the registration form, otherwise a Vendor Profile Form will need to be submitted). In rare cases, as italicized below, IRS Form W-9 may be submitted in lieu of a Vendor Profile Form (legal settlements, estate checks and various government entities). Form W-8 and the Foreign Vendor Profile Form must be submitted for all foreign companies, partnerships, organizations, institutions, and individuals. Links to the Vendor Profile Form can be found on the Vendor/Supplier Information Bank. IRS W-9 and W-8 forms and instructions can be accessed via the irs.gov website.
Exceptions for the requirement for submission of a Vendor Profile Form, W-9, or W-8 are listed below:
Vendor Maintenance for Established Vendors
A new Vendor Profile Form or a W-9 is required whenever critical information on the form changes. Critical information includes a change in the vendor name, tax ID, SBA classification, or conflict of interest indicators. A new form is not required to update phone numbers or address information. Please forward notification by e-mail, fax 404-894-8552 or mail to:
Georgia Tech Accounts Payable
711 Marietta Street
Atlanta, GA 30332-0253
Vendor Review and Approval Process
All new vendors are subject to approval prior to establishment in the Business Services vendor database. A vendor must be registered before it can be selected for BuzzMart purchase orders.
Conflict of Interest, Ethics and Unlawful Actions
Georgia Tech subscribes to the State's Code of Ethics for Governmental Service. All procurements are subject to the Georgia Vendor Manual, in particular, Chapter 9, Ethics and Unlawful Actions. Any apparent or potential conflict of interest between the vendor and a Georgia Tech Employee must be defined. If the conflict would not disqualify the vendor for obtaining business under certain conditions or circumstances, an understanding of those conditions or circumstances must be part of the vendor record.
Employee vs Independent Contractor
If the prospective vendor is an individual or a sole proprietor that is performing a service, Procurement Services, with the assistance of the Human Resources Department, will make a determination of the proper classification status. Retired or ex-employees that return to Georgia Tech to perform a service similar to that performed when they were an employee, will be classified as an employee through Payroll. For more information regarding this topic, please see "consultants individuals and firms".
Foreign Vendor Exclusion List
The Department of Treasury's Office of Foreign Assets Control (OFAC) maintains a list of individuals and organizations that we are prohibited from doing business with. Please refer specific issues regarding vendors that may appear on this list with the Office of Legal Affairs.
The Accounts Payable department will answer inquiries from vendors regarding the status of delinquent invoices. Accounts Payable will serve as a liaison between the campus department and the vendor. Georgia Tech must strive to maintain and promote a satisfactory credit standing with suppliers. Prompt payment of invoices and responses to inquiries is necessary in order to achieve this goal. Vendor inquiries for invoices over 30 days old will be referred to the campus unit for action. Georgia Tech's Credit Reference Letter, tax exemption forms, and Georgia Tech's IRS W-9 are available on the Vendor/Supplier Information Bank: from Accounts Payable via e-mail or 404-894-5000.
All contracts entered into in the name of the Georgia Institute of Technology are subject to the Policies and Procedures of the State Board of Regents. In addition, many of the University's contracts are subject to State purchasing regulations and to the statutory constraints on contracts entered into by State agencies.
any document that creates an obligation, right, or liability for the Georgia Institute of Technology.
Very few people within the Georgia Tech community are authorized to sign contracts on behalf of the University. The Delegation of Presidential Authority Memorandum lists the authorized signatories for each type of contract. This Memorandum can be found on the website of the Office of Legal Affairs. No member of the Institute, faculty or staff may sign a contract without specific written authorization from the President. State law provides that persons entering into contracts without complying with all applicable State laws and regulations become personally liable for any amounts due under those contracts.
Each Georgia Tech unit requesting a contract shall designate a responsible person to monitor vendor performance and subsequent evaluation of their contract(s). Central Purchasing will provide assistance to units for vendor evaluations when applicable.
This policy addresses gift card usage, as a form of payment to employees, for the purpose of incentives, awards, door prizes, gifts for personal accomplishments, and compensation. This policy ensures compliance with IRS tax reporting requirements for employee ‘cash equivalent’ payments and codifies the Institute practice that prohibits distribution of gift cards to employees.
Gift card usage, as a form of payment to employees, is prohibited for the following purposes:
This policy applies to both direct payment for gift cards and reimbursement for the purchase of gift cards, using all funding sources through Georgia Institute of Technology. This policy does not apply to gift cards provided using personal funds. This policy applies to payments made through the Georgia Tech Foundation on behalf of the Institute. Employees that receive allowable extra compensation can be compensated through Payroll through either the Awards and Prizes Form payment process (Policy 10.12) or Special Payment Request Form process, where appropriate.
Gift card usage is allowable for the following purposes:
In all cases, use of an appropriate funding source is required and selection of gift card, as a method of payment, should be used only when the gift card is the most economical and efficient payment method.
This policy applies to all Georgia Tech staff, faculty, and researchers. Use of gift cards for non-employee research participants, survey respondents, and advisory board members are not within the scope of this policy.
A preloaded debit card or certificate that allows the cardholder to use it for the purchase of goods or services at either a specific retailer or anywhere that accepts major credit cards.
Payment of Gift Cards
Where allowed by the policy, gift cards can be purchased using established Institute procurement policies from a vendor that accepts a Georgia Tech purchase order.
The Georgia Tech PCard cannot be used for the purchase of gift cards.
Reimbursement for Purchase of Gift Cards
Where allowed by the policy, an employee may purchase gift cards and seek reimbursement through the Employee Payment Request Form process.
Tax reporting for Georgia Tech employees
Employee payments related to research or participation are not classified as employee compensation and will be reported through the Accounts Payable 1099-misc form reporting process if the employee receives $600 or more in any calendar year.
Tax reporting for non-Georgia Tech employees
Payments will be reported through the Accounts Payable 1099-misc form reporting process if the payee receives $600 or more in any calendar year.
Accounts Payable will make payments associated with allowable gift card purchases and will report taxable payments to the IRS.
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
|03-2014||Business Services||New policy|
The official Institute process for the procurement of goods is categorized into four areas:
The following policies and procedures provide instructions for the processing of each of these categories which are initiated via BuzzMart.
|10-2014||Purchasing and Procurement||Update to verbiage|
|07-2013||Purchasing and Procurement||Update to policy|
The procurement authority of the Institute is delegated by the State of Georgia, Department of Administrative Services. This authority is vested in State Purchasing and administered under the State Purchasing Act.
In all procurement instances, the Order of Precedence should be followed as described in the Georgia Procurement Manual Section 1.3. If the goods or services are not exempt nor procurement requirements waived, then the purchasing decision should be made in the following order:
|07-2013||Policy Library||Update to policy|
This procedure applies to the request for, assignment, and use of fuel credit cards for use with Georgia Tech owned or rented vehicles and provides detailed instructions for obtaining and using the cards.
The Board of Regents mandated that, effective December 1, 1998, all institutions in the University System would use the fuel management system established by the State of Georgia, Department of Administrative Services, Materials Management Division.
The issuing of fuel credit cards is administered through Facilities. Please contact Facilities for additional information.
It is a best business practice to order from contract vendors whenever possible. The majority of contract orders are placed via BuzzMart using an on line catalog. Catalog suppliers in BuzzMart are suppliers that Georgia Tech has active contracts with.
BuzzMart catalogs should be used for purchases where a catalog is available. Only users with the Requester role are permitted to generate a requisition to a BuzzMart catalog vendor under $3000. Departmental users with the Financial Approver role must approve the requisition prior to generating the Purchase Order.
Georgia Tech’s standard workflow approval process for requisitions will be used for catalog purchases.
Allowable Funding Sources for Purchase of Food and Meals
Institutional funds include all funds to which the Institute holds title, such as student fees, auxiliary revenues, state appropriated funds and departmental sales/service, revenue. The funding source should match the supported program and participants. For example, student activity funds might be used to purchase water for a volunteer event sponsored by a student group. Sponsored funds may be used where specifically permitted in the sponsored agreement. Institutional funds cannot be used to purchase alcohol. Funds collected by the sponsoring institution for intra-institutional events are normally collected in and expended from an agency account created for that purpose.
Employees with responsibility for administering institutional funds and employees requesting reimbursement from institutional funds should ensure that funds are spent only for legitimate business purposes and not for the personal benefit of the employee or other individuals. The misuse of institutional funds may result in both employment termination and various civil and criminal penalties.
Food purchases and reimbursements for group meals/food should be charged to the 727700-expenditure account, “Special Group Meals.” Payments made to caterers should be charged to 751106- Catering, to ensure compliance with 1099-misc reporting. These accounts will be subject to special audit scrutiny, to ensure that such expenditures are infrequent, rather than routine.
I. Georgia Tech Employee Business and Training Meetings using Institutional Funding
Under certain infrequent circumstances, employees may be required to remain at the work site during mealtime. Such circumstances include emergency situations such as natural disasters or significant public safety events, but may also include intra-departmental meetings or training sessions, where the meeting or training session continues during the meal and the employees are not permitted to leave the premises of the meeting site. The following standards will be used when deciding whether a meal may be purchased under this policy:
Group meals should be held only to facilitate the effective and efficient operations of the departments involved. For example, it may be that scheduling an intra-departmental meeting or training session is the most effective and efficient use of employees’ time given teaching schedules, other meeting commitments, etc. In this instance, requiring employees to participate in a meeting over lunch may be the best means available to get the required participants in the same place for the period of time required.
Group meals should only be provided in those instances where the meeting lasts for at least four (4) hours. A meeting less than four hours could generally be scheduled prior to or after a normal meal without significantly impacting employees on different work schedules.
Group meals held at the start and/or finish of a meeting are not eligible for payment under this policy. Purchase of a group meal is authorized solely as a convenience to the employer and in those instances where employees may not leave for a normal meal due to the time constraints associated with the meeting or training session. Those events not starting until the normal meal time should be delayed until after the normal meal time, or employees may bring employee-purchased food (“brown-bag”) to the meeting.
Authorized group meal expenditures are limited to the purchase of meals only and do not include snacks. Purchase of group meals are to be approved by the Director, Department Head, or his/her designee, prior to the date of the event (for non-emergency situations). The Food / Group Meal Event Documentation Form will be used to document event details and ensure compliance with this policy. All of the documents that were a part of the approval process should be submitted with the payment request, or retained with Pcard documentation.
Meal limits outlined in Georgia Tech Travel Policy "Meals and Incidental Travel Expenses", must be followed. Meal limits apply to the actual food and drink purchased for the meal. Set-up and delivery costs associated with the group meal are allowable and shall not be included in the meal limit calculation.
II. Food and Group Meals for Students, Volunteers, Visitors, and Participants Using Institutional Funding
The purpose of this section is to clarify those instances when food may be purchased for consumption by students, potential students, volunteers and employees using institutional funds. Food includes meals, beverages, snacks, etc., but specifically excludes alcohol as an allowable food expense.
An individual may be subject to different rules depending on the capacity in which they are participating in an event. For example, volunteers might include employees or students if the individual is operating in a capacity separate from their employee or student role. An employee or volunteer attending a student event in the capacity of a student would be considered a student. A student worker participating in an event while being paid as an employee would be considered an employee.
Note: Employees working additional hours in their own area, using work time to provide volunteer service, or otherwise participating in activities expected of employees, are not volunteers for the purposes of this policy.
III. Business Entertainment Meals and Alcohol Purchases using Agency Fund, Foundation or GTRC funding
Institute related entertainment charges and meals purchased for business development include business related breakfast, lunch or dinner, catered meeting, fund-raising or alumni event, etc. Entertainment, individual professional achievement/milestone receptions, holiday and end-of-year receptions, retirement events, faculty recruitment entertainment and extraordinary development activities must be processed directly through the GT Foundation or GTRC.
Business related entertainment charges may only be processed using the funding sources listed below:
Employee business and training meetings are not restricted by the meal per diem limits (see the Promotional Funding for Meals and Entertainment section for additional guidelines) or the 4 hour minimum meeting length that is required for use of Institutional Funds. The Food/Group Meal Documentation Form is required for all Pcard and payment requests processed through the Institute’s Accounts Payable. Alcohol is an allowable expense only if specifically permitted by the funding source or for conference programs that specify receptions in the conference agenda and are funded by participant registration fees, such as the GT Executive Masters program and DLPE conferences.
Link to GT Foundation policy
GTRC policy requires a copy of the invitation or agenda and the number of guests.
Promotional Funding for Meals and Entertainment
Meals and entertainment to conduct official Institute business with external person(s) or for Institute functions with a clear business purpose should be reasonable and appropriate to the occasion. The selection of meal sites and/or catering vendors should be consistent with the image of Georgia Tech and not excessive regardless of funding source. While situations vary for business meals, a guideline maximum for meals involving external parties is $90 per person (includes beverage, tax, and tip). A guideline maximum for a required business meal involving only Institute personnel is $75 per person (includes beverage, tax, and tip). For meal expenses that may exceed the aforementioned guidelines, please discuss the appropriateness of the anticipated cost with your supervisor prior to the event. If GTF funds will be used, request approval by submitting the Foundation Expenditure Exception Request Form outlining the reasons for exceeding the per person threshold. The form can be found at http://www.policylibrary.gatech.edu/files/exception form draft 3_5_14.doc. If GTRC funds will be used, send an e-mail to the Controller of GTRC with an explanation. The GT Alcohol Policy should be followed when alcohol is provided.
IV. Food and Group Meals Using Sponsored Grant/Contract Funding
Sponsored funding will be treated the same as Institutional funding for the purpose of food and group meal purchases.
As the Institute must comply with federal cost accounting standards, which require consistency in the treatment of costs, the Institute typically cannot use sponsored funds for business related entertainment since Institute state accounts do not specifically allow the purchase of business related entertainment. Therefore, discretion must be exercised when charging such expenses to sponsored restricted accounts. As such, the cost of purchased meals or food within 50 miles of the Georgia Tech headquarters will normally not be allowed as a direct charge to a sponsored restricted project because the Georgia Tech employee or trainee is not "traveling" and the cost is normally considered a personal expense. See below for special circumstances.
In special situations such as all day seminars or meetings when a food, beverage, or meal cost meets the three criteria of allowable, allocable and reasonable to the specified sponsored project, the PI may provide written justification of the business purpose of the expenditures and how they relate to the specific sponsored project including purpose of the meeting, list of attendees, a formal written agenda, and the beginning and end times of the meeting. To be allowable:
Examples of allowable food charges:
Lunch and refreshments provided for periodic all-day meeting of collaborators on a program project (with formal agenda and participants from different locations).
A post-doc being recruited to fill an open position on a research grant. His/Her meal may be charged to the grant since they are on official travel status.
Sponsored projects which specifically allow for business related entertainment
Examples of unallowable food charges:
(While these expenses may not be allowable on sponsored restricted accounts, they may be reimbursed from discretionary type restricted accounts or directly from the Georgia Tech Foundation.)
Lab personnel meet weekly to discuss progress on the grant
PI has lunch/dinner with a colleague and discusses research
V. Meals and Receptions Provided in Conjunction with Professional Education Conferences and Institute-sponsored Conferences and Camps
Meals and receptions provided for participants of conferences, workshops, and campus events that are funded by registration fees can be paid through the Institute using participant revenue funds if the meals are specifically noted on the conference agenda and/or registration material. Meal per diem limits are not imposed. The source of funds must be primarily external to the Institute. Campus training designed primarily for Georgia Tech employees must comply with the employee business and training meeting policy, section I.
VI. Meals for Employees, Students, and Guests on Official Travel
Employees who are on official overnight business travel, are eligible for meal reimbursement, according to Institute travel regulations. See Travel policy 6.4 Meal Allowances for detailed policy and procedures.
VII. Purchase of Bottled water, Coffee/beverage Service, and Office Snacks
Water and other beverages purchased as part of a group meal are allowable, but the cost of the beverage is rolled into the meal per diem limit. Beverage service and office snacks are not classified as group meals. Institute funds cannot be used the purchase of water and beverage service or snacks purchased for general departmental use. An allowable exception is water/hydration products that are used in compliance with OSHA or for safety related to environmental or workplace conditions. If Foundation funds are used, payment can be processed through Accounts Payable and the Food/Group Meal Documentation Form is not required.
Documentation Requirements and Compliance with Per Diem Limits at Group Events
The Food / Group Meal Event Documentation Form is used to provide documentation for all group meal purchases funded with institutional, sponsored, and Foundation funds processed through Accounts Payable or via the PCard. This form serves to document details of the event, participants, and the approval signature of the department head that is required for employee business meetings using Institutional funds. The original receipt or invoice must accompany all payment requests and/or PCard documentation.
While the meal per diem limits also apply to group events where food is purchased on a group basis of more than 15 participants (pizza parties, buffets, etc), departments are not required to document the actual numbers or names of participants; However, an estimate of the number of participants should be noted to certify that the appropriate per diem limits were followed.
In the event that an employee expends funds in excess of the authorized State of Georgia per diem (see "Meals and Incidental Travel Expenses"), then the amount spent in excess is considered a personal expense and is not reimbursable to the employee or payable to the catering vendor.
Meal per diem limits apply only to food purchased with institutional funds. Food purchased by outside organizations does not fall under the scope of this policy. However, employees must comply with the provisions of BOR Policy 18.104.22.168: Gratuities as it pertains to receiving gifts.
Regardless of payment method, documentation of the purchase must be submitted as outlined above in support of the payment. Itemized, original receipts are required.
Payment for entertainment and extraordinary development activities, including the purchase of alcohol will be via the Foundation or GTRC Check Request process processed directly through the Foundation or GTRC. Original, itemized receipts are required in addition to the other documentation (invitation, agenda, etc) to support the request.
Payments made directly through Georgia Tech Accounts Payable or via the Pcard are exempt from sales tax. Payments made through the GT Foundation and GTRC are subject to sales tax.
Authorized Caterers for Events on Georgia Tech Campus
University System of Georgia policies grant exclusive rights to provide food services on campuses to Auxiliary Services. See Catering Service Policy (Student Center web site) for details regarding authorized caterers and policy details.
Additional Resource: Food/Group Meal Procurement Grid
The Food/Group Meal Procurement Grid outlines specific categories of food/group meal purchases with allowable funding sources, payment processes, and required documentation.
Forms: All forms, including the Food/Group Meal Procurement Grid, and links to related policies are available via the Business Services Web Site: http://www.procurement.gatech.edu/payables/food-policy
|09-2013||Accounts Payable||Update to policy|
|08-2013||Policy Library||Updated link to Procurement Forms|
This policy outlines the expectation that individuals that have a procurement need will utilize the Institute’s procurement tools and processes to ensure compliance with state, federal and institute purchasing policies and minimize institutional risk. Convenience and/or a lack of proper planning are not legitimate reasons to circumvent standard institute procurement processes. Use of personal funds, up to $500 per day or event, is allowed only when logistical or extenuating circumstances occur that preclude use of the BuzzMart procurement process or PCard. All reimbursements should be submitted within 45 days of incurring the expense and must be allowable by the funding source being charged. Allowable exceptions to this policy are noted below. Any other exception must be approved by the Director of Purchasing in advance. Any requests for reimbursements that do not meet the criteria specified in this policy may not be reimbursed.
Reimbursement for Purchase of Supplies, Equipment
Use of personal funds for the purchase of goods incurs additional cost due to sales tax and non-contract pricing, in addition to the loss of procurement data metrics necessary for strategic sourcing activities. Reimbursements for goods and supplies should only be made for small dollar items less than $500 where it is not practical or possible to make the purchase using standard institute procurement processes. Purchases over $500 that have not been approved by the Director of Purchasing may be classified as personal purchases and may not be reimbursed.
Reimbursement for Payments Related to Personal Services, Rentals, and RoyaltiesPayments for personal services (consultants, temps, awards and prizes, rentals, royalties, and honoraria) must be processed through the Institute via the Procurement and Business Services’ procurement process, regardless of dollar amount, to ensure compliance with IRS and other federal regulations.
Reimbursement to Employees
Employees may be reimbursed via the T&E System for supplies and allowable expenses up to $500. Reimbursement requests for the allowable exceptions, referenced previously, are allowable for amounts over $500, if approved by the unit financial approver. Reimbursements associated with program and participant research advances are processed via the Employee Payment Request Form.
Reimbursements for employees that pay for meal expenses for official guests/visitors, or seek reimbursement for food/group meals, may also be reimbursed via the Employee Payment Request Form. In that case, documentation requirements include the Food Group Meal Documentation Form, list of attendees (if less than 15), an agenda and an itemized receipt. Employees should not pay for travel-related expenses on behalf of other GT employees, due to state reporting requirements. In all cases, the receipt is to be the vendor's normal and customary receipt. The receipt must reflect the vendor's name, date of purchase, quantity, description, price of items purchased and the total amount paid.
Reimbursement to Non-Employees
Non-employees (including Students) will be reimbursed through Accounts Payable via the AP Payment Request Form for approved reimbursements up to $500. Allowable exceptions outlined above apply to non-employees. Reimbursements for students, up to $250, may also be made through the Bursar’s Office petty cash process by using the Petty Cash Replenishment/Reimbursement Request Form (see Bursar’s Office form bank on web). All travel-related reimbursement to non-employees is processed via the Travel Expense Statement.
Georgia Sales and Use Tax
As a unit of the State of Georgia, Georgia Institute of Technology is exempt from the payment of Georgia Sales and Use Tax.
Taxes of Other States
Generally, the Institute is not liable for sales taxes of other states if the transaction, or delivery of goods takes place in the State of Georgia. If title passes in the other state, the Institute may be liable to pay taxes if a specific tax exemption is not obtained. Georgia Tech is exempt from sales and use tax for the states of Ohio, Tennessee, Florida for goods delivered to units within those states.
Obtaining Exemption Certificates
Copies of the exemption certificates are available on the Business Services form bank.
Invoices Charging Sales Tax
Invoices charging sales tax should be approved for the amount less the sales tax if the goods are shipped to a state that allows tax exemption.
Petty Cash and Travel
Individual payments for petty cash purchases and travel are not exempt from sales tax as the transaction was with an individual, not Georgia Tech.
Hotel/Motel Excise Tax Policy
Employees traveling within the state of Georgia on official business are exempt from local, county and municipal excise tax on lodging in accordance with Act No. 621.
The "State of Georgia Exemption of the Local Hotel/Motel Excise Tax Form" should be utilized to obtain an exemption. The form should be submitted when the traveler initially checks in to the hotel
An approved Interdepartmental Sales and Services Authorization From is the accepted Institute standards for walk up business.
Section A-Authorizing Department Use
To be completed by the Authorizing Department, REQUIRED
Section B – Requester to Complete
To be completed by the individual in the unit that is requesting the purchase, REQUIRED
The Georgia Tech Procurement Card (PCard) is a Visa purchasing card that may be used by Institute employees for authorized business purchases within the delegated authority limit. The Pcard is a tool for purchases of non-equipment, business related items under the cardholder’s single transaction limit in the approved PCard Plan (for vendors who are not currently setup in BuzzMart or for vendors with whom we expect to only make one purchase).Effective, April 1, 2017, the State of Georgia PCard Policy changed which requires all State Agencies participating in the Card Program to have an approved PCard Plan. This PCard Plan was signed off by the University President and the University Chief Financial Officer (Chief Business Officer) and approved by the Department of Administrative Services in conjunction with the Office of Planning and Budgeting at the State level. Cardholders must follow State of Georgia (DOAS), Board of Regents (BOR), and Georgia Tech purchasing policies and strive to obtain the maximum ultimate value for each dollar of expenditure. Additionally, Institute employees and officials assigned PCard responsibilities should familiarize themselves with the provisions of public law governing PCards to include Title 50, Chapter 5, Article 3 of the O.C.G.A. at:
Enter 50-5-83 in the search box and click Search
To view the text click on: § 50-5-83. Definitions; requirements for state purchasing card program
The use of the card is beneficial to the individual purchaser, the purchaser's department, the Institute, and the suppliers. It simplifies the purchasing and payment process and expedites receipt of goods. The PCard provides significant cost savings to Georgia Tech while providing electronic control and accountability. Any vendor that accepts Visa will accept the PCard.
The purpose of this PCard Policy Manual is to provide Institute guidelines for the issuance and use of the PCard along with instructions for reconciliation and review of transactions. The Manual will be reviewed for adequacy by the Institute’s PCard Program Manager at least annually.
General Information & Definitions
Approver - The non-subordinate employee designated by the unit to review and verify cardholder transactions.
Billing Address - The campus billing address of the individual cardholder. Address should include mail code. The Billing Address may be requested by vendors for order verification.
Procurement and Business Services – The Georgia Tech organization responsible for the overall administration of the PCard Program.
Billing Date (Bank Posted Date) – The date the vendor transmits your purchase information to the bank for posting to your PCard account (Not necessarily the date you made the purchase). Visa’s vendor contract requires account billing upon shipment of an order.
Billing Phone Number - The campus phone number of cardholder. May be requested by vendors for order verification.
Cardholder - Employee who has been issued a PCard.
Card Issuer - Bank of America, the bank issuing Georgia Tech’s PCard.
Concur – Web based software that contains the online monthly company billed statement. Statements are approved via automated approval workflows. Project redistributions and account itemizations are completed in Concur and documentation is uploaded to each transaction that posts.
Cycle Cutoff - The date the monthly statement is issued, the 27th of each month
Department Head - For purposes of these instructions refers to the VP, Dean, Director, or Department Head with budget authority for unit. This authority cannot be delegated.
Director of Purchasing – Responsible for the acquisition of goods and services at Georgia Tech. Serves as the Institute’s primary liaison with the Georgia Department of Administrative Services (DOAS).
Employee Agreement Form - The written agreement between Georgia Tech and the cardholder.
Forms and Manuals – Forms and user manuals are available online at the Procurement and Business Services website at www.procurement.gatech.edu . Revisions to the forms and manuals may be frequent. All employees should check the website often for current versions.
The Manual - Refers to this instruction booklet.
PCard Administration – Procurement and Business Services unit that manages the day-to-day operations of the Institute’s PCard Program.
PCard Program Manager - Procurement and Business Services representative responsible for PCard program. Serves as the Institute’s official liaison with State Cards Program Manager.
PCard Administrator – Procurement and Business Services representative that assists PCard Program Manager administer PCard program.
PCard Coordinators - Department representatives responsible for facilitating the Procurement Card Program within their departments.
PCard Helpdesk – PCard Administration point of contact to assist with questions/concerns, available via phone at 404-385-5578 or e-mail at email@example.com.
Safeguarding of the Institute's Assets
Departments must ensure that PCards are promptly cancelled upon employee transfer or termination.
PCard purchases can only be shipping to GT addresses. Items shipped to non-GT locations must have written approval from the cardholder’s supervisor and the PCard Administrator.
PCards may be issued to “permanent, regular-status” employees only. No student employees, affiliates or Tech Temps may be issued cards. Only one card is allowed per employee.
Authorization - A PCard Request Form is completed by/for the employee and then signed by Department Head to indicate authorization, cardholder spending limits, and cost allocation information. Spending limits should be determined based on the cardholder’s job responsibilities, anticipated card usage levels, historical spending patterns, and budget limitations. The completed form with the required signatures is submitted to PCard Administration by the PCard Coordinator. After all background checks have been verified, the request will then be reviewed and approved by the CFO. Upon approval by the CFO, the PCard Administrator will order the card from the bank and maintain the form in a cardholder file.
Since Georgia Tech, not the individual employee, will pay for the purchases made with the card, additional controls have been added to the card accounts. These limits are imposed at the point of sale when the card is swiped.
Authorized Uses of PCards
All purchases made with a PCard must be for official Institute business. Cardholders and approving officials are designated as Institute purchasing agents and are subject to the provisions of O.C.G.A. § 45-10-1 et.seq. (State Employee Code of Ethics, Conflicts of Interest, etc.).
The PCard may be used for:
Note: Exceptions may be granted by the PCard Manager.
Prohibited Uses of PCards
The PCard may not be used for:
Entertainment expenses (must be done as a reimbursement through the Foundation or GTRC).
Purchases made from units of the Institute. No internal Institute charges are allowed on the PCard - this includes, but is not limited to, OIT printing services, Library, and Parking. Please note: The PCard may be used for official Institute business at outsourced businesses including the GT Bookstore, VWR, and Sodexho.
Limitations on Vendors (including high risk vendors)
Each card will be assigned a default project ID, as identified on the PCard Request Form, to which transactions will be automatically charged. Charges must be redistributed to the appropriate general ledger expense account, as well as the appropriate Project ID if necessary, through the Institute’s web based PCard approval system, Concur. PCard transactions are loaded to Concur daily by the bank and remain available for review and redistribution for 10 calendar days before being posted to the General Ledger (GL). Changes identified after the transactions are initially posted to the GL may be accomplished by completing a CPC (Campus PCard) journal entry in the General Ledger, effective June 28, 2017.
Department PCard Coordinators are required to complete the annual PCard Training and Certification online training tutorial. Cardholders are required to complete the “PCard Cardholder Training & Certification” online training tutorial prior to receiving a card.
Cardholders are required to re-certify annually. Failure to re-certify will result in card suspension until the re-certification is completed.
Departments must ensure that Approvers complete the “PCard Cardholder Training & Certification” online training tutorial initially and annually thereafter.
Departments are responsible for ensuring Cardholders and Approvers are trained in internal departmental PCard policies and procedures.
Departments should ensure that non-procurement personnel are acquainted with small value purchase procedures.
Concur Company Billed Statements and the redistribution system training are available online.
Employee Agreement Form
Before being issued a PCard, a completed Employee Agreement Form, signed by the employee and Department Head must be submitted to Business Services. By signing the form, the employee acknowledges:
There are two types of approvers for PCard Transactions
1. Requisition Approvers:
2. Concur Approvers:
Review and verify assigned cardholder PCard purchases.
Validate and attest that the report and the purchase receipts have been reviewed and are in compliance with Georgia Tech Policy.
Verify completeness of PCard documentation including business purpose and detailed receipts.
Ensure the requisition forms have been reviewed and are in compliance with Georgia Tech Policy.
Complete the review by approving the report.
Georgia Tech follows the doctrine that the use of and responsibility for PCard procurements rest with the cardholder (employee). The cardholder is accountable for all transactions on their card. To reinforce the doctrine of cardholder accountability with departmental oversight of the PCard:
The cardholder should use basic security measures, as outlined below, to prevent unauthorized use and limit the potential for fraud.
Reconcile and submit monthly statements in a timely manner.
Lost or Stolen Cards
Surrendering the PCard
Unless covered by an approved exception, every purchase requires two prior approvals prior to purchase. These prior approvals must be documented via a requisition form designated by Procurement and Business Services. If the purchase is approved, the cardholder may make the purchase. The signed requisition form must be appended to the receipt image prior to the submission of the statement for approval.
For each transaction, accountable documentation (i.e. a sales draft or receipt) must be obtained as proof of purchase. This documentation will later be used to verify the purchases shown on the cardholder online statement in Concur. The documentation must contain line item description and line item pricing for the purchase. The documentation should include:
If a sales draft or receipt does not provide a description, the cardholder should write the description on the document. For items such as subscriptions and registrations, where a receipt is not normally generated by the merchant, a copy of the ordering document may be used so long as it contains a description and price. Copies or facsimiles of the original receipt may be acceptable if the original is not available.
If the documentation for a transaction has been lost, it is the cardholder’s responsibility to obtain a duplicate from the vendor. If a duplicate cannot be obtained, the cardholder should complete the PCard Receipt Replacement Form for to serve as the receipt. The PCard Receipt Replacement Form should contain the itemized information for the transaction, as listed above, and describe the cardholder’s attempt to obtain a duplicate from the vendor. PCard Receipt Replacement Forms may only be used on an exception basis. Excessive use of the form (defined as more than three times in one fiscal year), may result in suspension of card privileges.
Receipts are attached to each transaction in Concur by uploading the receipt into Concur and attaching to the transaction. If the Cardholder has the Concur Mobile App installed on their phone, they can take a picture of the receipt and it will be available in the receipt store to attach to each transaction.
Maintaining PCard Documentation
Documentation will be retained in accordance with records retention and fund requirements. For transactions posted on or after October 28th, 2017, this documentation will be housed in Concur and/or in Georgia Tech’s Imaging system. For transactions prior to 28th October 2016, statements with documentation must be kept by the Department.
Using the PCard - Making the Purchase
The PCard can be used to make purchases over the counter, by mail, by fax, by telephone, or by Internet at any vendor that accepts Visa. The following procedures should be followed for PCard purchases.
Obtain Best Value
When accepting a PCard, the cardholder becomes an authorized purchaser for the Institute with specific responsibilities for expending public funds. The cardholder should ensure the purchase is appropriate and in accordance with all Institute and State rules and regulations. Additionally, PCard purchases must comply with requirements of the Georgia Procurement Manual concerning Order of Precedence and Competitive Bidding. When purchasing goods or services, the order of precedence that should be followed in selecting the appropriate vendor is: (1) Statewide Mandatory Contracts, (2) GT Agency Contracts, (3) Georgia Correctional or Georgia Enterprises, and then (4) Statewide Convenience Contracts and the open market.
After verifying the item is not available on a Statewide or Agency contract, the cardholder must utilize lowest cost based on requirements, quality, and availability to obtain the maximum value of each dollar expended.
Vary the suppliers to give fair treatment to all suppliers and to assure that the price obtained is reasonable. Transactions you make may be on behalf of Federal sponsors. Purchasing on behalf of government clients requires special sensitivity on the part of the purchaser to obtaining fair and reasonable prices, spreading purchases among many suppliers including small, small-disadvantaged, and women-owned businesses, and adhering to strict ethical conduct.
When using the PCard, the cardholder should inform the vendor that the purchase is for official State of Georgia purposes, and therefore, may not be subject to Georgia state or local sales tax. If requested by the vendor, cardholders must present an “AP - Sales & Use Tax Certificate of Exemption / Georgia Form”. The form is available online in the Forms section of the Business Services website at: http://www.procurement.gatech.edu
If sales tax is erroneously charged by the vendor, cardholders should make every effort to obtain a credit directly from the vendor. Documentation of attempts to obtain credits should be maintained with the transaction receipt by appending to the receipt. Please note: Sales tax may not be Disputed through the bank.
Making the Purchase - Over the Counter
Making Purchase - Mail, Fax, Telephone, or Internet Orders
Give supplier detailed shipping instructions. It is recommended that you have the goods shipped directly to your campus address (this would normally be the cardholder’s Billing Address). Please note: Goods should be shipped to official Georgia Tech business addresses only. Occasionally, researchers will be in the field at a sponsor’s site and will need the goods shipped to that location or the location specified, (never a home address). Shipments to an address other than a campus Georgia Tech address must be approved by PCard administration via email from the PCard Coordinator, with the cardholder’s supervisor’s approval included. This documentation should be appended to the receipt as accountable documentation.
Returning Purchases Made With PCard
If you determine that the material is defective or incorrect, notify the supplier that the item needs to be returned and request an address to ship to, and a Return Authorization Number. Request that the supplier process a credit transaction through the Card. Document that goods have been returned for credit and communicate information through proper channels within unit. Ensure that the credit appears on the next monthly statement. If not, process the charge as a Disputed Transaction.
It is a good practice to keep original boxes, containers, and special packaging until you are certain you are going to keep the goods. Some items must be returned in the original packaging.
It is the cardholder’s responsibility to resolve discrepancies and ensure credits are received. When a cardholder discovers an incorrect amount has been charged for goods or services received, or a questionable purchase or transaction appears on a cardholder’s monthly statement, the cardholder must immediately seek to resolve the problem with the vendor. Any communications should be documented and the documentation including dates, persons involved, and a brief description of the problem should be either appended to the receipt or appended to the PCard Dispute Form.
If the cardholder is unable to resolve the problem with the vendor, a PCard Dispute Form should be completed and faxed directly to Bank of America at the fax number on the form. The PCard Coordinator should be notified of the dispute and a copy of the dispute form should be appended to the monthly statement. The cardholder should check the following month’s statement to ensure that credit was received. Please note: Disputes must be submitted within 60 days of the statement date.
Reconciling PCard Monthly Statement
A monthly online statement will be generated by Concur once transactions have occurred on the PCard. As transactions post to the online statement, the cardholder should review the transactions and attach receipts to the transactions. If the cardholder believes a transaction listed on the statement is incorrect, then procedures outlined in the Disputed Transactions section should be followed.
The online statement can be submitted 3 full days after the 27th of the month, once all transactions have the business purpose included, all receipts are attached and any unassigned transactions have been assigned to a GL account. In no instance can the cardholder and approver be the same person. Concur will move the statement in the automated workflow to the designated approver for the Cardholder.
Cardholders should submit the monthly PCard statement, to their Approver by the 10th of the month following the statement close month (i.e. The statement that closed on March 27th must be submitted by the 10th of April). The Approvers’ verification process and report submission should be completed 15 days after the cardholder submits. Online Statement processing should be completed within 30 days (by the time a new statement cycle begins). In no instance should a cardholder be allowed to approve for their own card.
Cardholder’s cards whose online statements have not been submitted and approved within the 30 day time-frame may be suspended. Repeated non-compliance will result in card cancellation. Cards will be suspended/cancelled as follows:
Please note: In extenuating circumstances (such as extended travel, on leave, etc), departments may request that specific cards be exempted from suspension for a brief period.
Violations of Policy
Violations of rules governing use of PCards can be classified as minor or major. Violations are evaluated on an individual basis and any action taken is dependent upon the nature and frequency of the violation.
Minor Violations include honest mistakes, such as inadvertently using the wrong card; allowable purchases from Institute funds, but those which are not allowed on the P Card. Minor violations should be addressed as follows:
Major Violations are those violations that indicate a willful intent to disregard rules that results in cardholder misuse (i.e. would include knowingly making personal purchases). The circumstances of the violations will determine the appropriate action, which could include termination of employment and criminal penalties. When cardholder misuse is suspected, the department is to immediately notify the PCard Program Manager and the Director of Internal Auditing.
Georgia Tech employees can confidentially and anonymously report suspected PCard misuse to the Department of Internal Auditing Hotline at:
Monthly review and approval of PCard transactions is required at the department level. The Department Head/PCard Coordinator will determine who the approvers will be for their departments.
Departments are responsible for reviewing all transactions to:
Business Services will receive a consolidated monthly billing statement from Bank of America for all Institute cardholders. The statement will be reconciled and processed for payment, in accordance with a plan on file in Business Services.
Transactions will be reviewed online in accordance with plans on file in Business Services and Internal Auditing. Cardholder files will be reviewed in accordance with a plan on file in Business Services. Internal Auditing periodically conducts on-site compliance reviews in each department. These visits will be designed to:
Results of these reviews will be used to enhance Georgia Tech’s PCard processes and will be shared with the Department Heads.
|May 2017||Purchasing and Procurement||State policy updates|
|July 2016||Purchasing and Procurement||Update to policy changes|
|March 2015||Purchasing and Procurement||Added additional compliance measures|
|July 2013||Purchasing and Procurement||Update to policy|
In general, purchases that are $2,500 or greater may require review and approval by the Purchasing Department. The following sections describe the processing of these purchase requests.
|07-2013||Purchasing and Procurement||Update to policy|
For Contract purchases:
For Grant purchases:
|August 2017||Purchasing and Procurement||Updated dates|
|May 2015||Purchasing and Procurement||Policy Statement Update|
|07-2013||Purchasing and Procurement||Update to policy|
This procedure provides guidelines for requisitions submitted in BuzzMart.
The purchasing authority of Georgia Tech is delegated by the State of Georgia, Department of Administrative Services, Materials Management Division. This authority is vested in Procurement and Business Services and administered under the State Purchasing Rules and Regulations.
BuzzMart is used to request the purchase of materials, equipment, and services, including consultants and independent contractors. A quotation from the supplier/vendor should be attached to the requisition for all non catalog purchases. For low dollar purchases of items found on vendors/ suppliers websites, the Purchasing Department may accept alternate documentation in lieu of a formal quote. Please contact the Purchasing Department in these cases for acceptable alternative documentation.
On all procurements $10,000.00 and over that are sole source or single response to bid a price reasonableness or cost analysis shall be addressed by the Purchasing Department. A copy of the price reasonableness or cost analysis shall be maintained in the purchase order file, if applicable.
Emergency procurements have special requirements. Examples of emergency situations include:
Academic, research or technical personnel being idle and unable to perform their mission due to the lack of materials and/or services.
Equipment or hardware is inoperable leaving personnel idle. A situation exists that is detrimental to the operation of the Institute and/or State business.
Any situation that may seriously endanger the health, safety or welfare of any person where direct action will alleviate the situation.
Certain classes of campus technology request (CTR) goods and services require pre-approval by the Board of Regents and OIT. Contact the Purchasing Department for details or specific questions.
Certain categories of materials, equipment and services are exempt from Purchasing Department review and approval. These categories, which are listed below, can be processed via BuzzMart and/or check request.
• Freight and Express Charges
• Registration Fees
• Utilities (gas, power, water, telephone)
• Bank Charges
• Purchases for Resale
• Fellowships and Scholarships
• Travel (see travel section)
• Student Activity Funds
• Real Estate Rentals (requires Board of Regents approval)
• Agency Funds
• Facilities Construction
• OSP Sub-agreements Not Processed Through Purchasing Department
Attachments and forms are required when applicable. Attachments and forms are required when applicable. Attach the applicable attachments to the requisition in BuzzMart. Examples of attachments/forms:
• CTR approval
• Sole source/sole brand justification
• Vendor order forms
• Memo outlining emergency procurement requirements
|07-2016||Purchasing and Procurement||Update to policy|
Payments for services to non-employee individuals and firms will fall into one of the following categories: honoraria, non-faculty instructors or lecturers, consultants, repairs and maintenance, temporary employment agencies, OSP subcontracts, stipends/awards and freelance service providers.
All payments (including expense only reimbursements) to individuals who are not US citizens or residents (green card holders) must comply with the Internal Revenue Service and Homeland Security regulations and requirements outlined in payments nonresident aliens non employees.
Employees may not receive payment for services through Accounts Payable. Consult OHR policies for supplemental pay options and Tech Temp employment options. Employees who have retired from the University System of Georgia may continue to work for Georgia Tech through the OHR Retired but Working program and compensation is through Payroll.
A consultant or independent contractor is a firm or an individual offering professional or specialized services for a fixed rate or fee. The Institute only controls the direction of the consultant's work with respect to work objectives and desired results and not the methodology for achieving the results.
This policy provides guidelines for contracting with individuals (non-employees) and firms. Firms and corporations that are clearly in the business to offer and sell their services to the public are independent contractors.
When the Institute is required to make payments to individuals, the rules and regulations of a number of governmental regulatory bodies must be considered. A determination must be made to ensure that payments to individuals for services (instructors or consultants) clearly meet the Internal Revenue Service (IRS) definition of Independent Contractor and that the regulations of the IRS and Immigration and Naturalization Service/US Department of State with respect to non-US citizens/resident aliens have been followed. Any individual who performs services for the Institute is presumed to be an employee unless the relationship satisfies the IRS standards for Independent Contractor (see Classification of Independent Contractors versus Employees below). A consultant should be used only when the services are not readily available from existing employees or where the services cannot be performed more economically or satisfactorily through the Institute employment process.
Classification of Independent Contractors Versus Employees
The department/unit makes the initial determination whether an individual is an employee or independent contractor because of the familiarity of the relationship. The Checklist for Determining Independent Contractor or Employee has been developed to aid the department in making the determination on whether the individual is an employee or a contractor. The checklist is based on standard guidance that the IRS has provided on this subject and is available on the Georgia Tech Purchasing Website. Prior to engaging any individual for services as an independent contractor, an assessment must be made by the unit/ department and documented using the checklist. This checklist must be also be approved by the department’s human resources representative. If the determination is that the individual is an employee, the department must work with Human Resources to determine the appropriate next steps. If the determination is that the individual is a consultant, the completed form must be sent to Purchasing for final approval.
If approved by Purchasing or Human Resources, the completed checklist must be attached to a requisition in BuzzMart for processing. If the consultant is a teaming partner and will be paid from sponsored funds, the agreement must be executed through the Office of Sponsored Programs on a "Request for Sub-Agreement Form".
A retiree or ex-employee that returns to Georgia Tech to perform the same type of service that was performed while employed by the Institute will be classified as an employee and all payments will be processed through Payroll.
The method for reimbursements made directly to the service provider (consultant, etc.) must be specified in the consultant's contract for services. Travel reimbursements may be made based on state travel regulations. The administrative unit is responsible for determining if charges for reimbursable expenses are proper and reasonable and the amount agreed to cover those travel expenses should be entered as a separate line item on the requisition. Specific requirements for documenting and itemizing those travel expenses will be detailed in the service agreement, but original receipts are not required. All payments to the consultant or firm will be reported on IRS Form 1099-misc or 1042-S, as appropriate. Tax withholding, where required, will apply at time of payment. . Direct billing of airfare or hotel is not permitted.
|10-2014||Purchasing and Procurement||Updates to verbiage|
An honorarium is a one-time payment for short-term services, as outlined in this procedure, where the Institute does not expect a particular deliverable and the recipient will not invoice the Institute for services rendered.. Nonresident Alien individuals may receive honorarium payments with a J-1, B-1, or B-2 visa. Most other Visas do not permit honoraria payment.
See documentation requirements below for when payee is State of Georgia employee.
When to Use
In accordance with Internal Revenue Service regulations, payments to US tax residents, which total $600 or more in aggregate to payee, will be reported as income on a 1099-Miscellaneous Income form.
If recipient is Nonresident Alien, reporting on IRS Form 1042-S will be in accordance with guidelines outlined in separate procedures for payments to Nonresident Aliens.
Procedure Guidelines Forms
Requests for payment of honorariums should be submitted on the Check Request Form.
Expense Account Classification
751108 – Honorarium/Speakers
Use the appropriate expense codes for any associated travel expenses. Although the Travel Expense Statement is not required for honoraria recipients, expenses must be reported by day and travelers must comply with Institute travel policies. Travel expenses that are not supported by receipts, or otherwise do not comply with Institute travel policies will have all expenses classified as honoraria income.
The following procedures will provide guidelines for retaining the services of nonemployee foreign nationals, including international vendors, consultants, scholars, and official visitors. Policies are made to ensure that contracts and payments are made in compliance with Internal Revenue Service and Department of Homeland Security laws and regulations.
Eligibility for Payments
The U.S. Citizenship and Immigration Services laws and regulations are very specific about what types of payments may be made to each visa type, who may make the payments, and what type(s) of employment verification documents are required for the foreign nationals to receive payments.
An abbreviated list of common visa types, restrictions, and documentation is provided below:
*VWB/WB or Visa Waiver for Business is an agreement between the US and certain countries in which the visitor is not required to have a visa. Participants in the program must be present in the United States fewer than 90 days with a valid passport and a nontransferable, nonrefundable round trip ticket.
**The American Competitiveness Workforce Act of 1998 allows payment of honoraria and associated incidental expenses to B-1, B-2, WB, and WT visa holders for “usual academic activity," if paid by a United States institution of higher education, a nonprofit organization affiliated with an institution of higher education, or a nonprofit or a governmental research organization. Under the Act, an academic activity may not exceed nine days at a single institution. In addition, such visa holders cannot accept honoraria and/or incidental expenses from more than five such institutions or organizations in the previous six months.
Federal Tax Treatment
Georgia Tech will withhold taxes in compliance with IRS tax law for all applicable foreign national payments, including honoraria, compensation, consulting fees, fellowships, stipends, awards, participant payments, sub-agreements, services/maintenance, royalties, rents, as well as some reimbursements for travel. Detailed descriptions regarding tax issues for non-US tax residents can be found in IRS Publication 519: US Tax Guide for Aliens.
Tax treaty benefits may be available to the payee, if there is an income tax treaty between the home country and the US. The individual’s US tax residency status, the business purpose of the payment, and payment amount determine whether a particular tax treaty benefit applies. In addition. All claims for tax treaty benefits must include the individuals social security number or an ITIN (Individual Taxpayer Identification Number). See IRS Publication 901: U.S. Tax Treaties.
A foreign national is an individual who is not a citizen or a permanent resident (holder of a "green card") of the United States. (U.S. permanent residents are foreign nationals, but by definition are treated the same as U.S. citizens for tax purposes.) A foreign national is admitted to the United States for a temporary stay and for a specific purpose (identified by visa type).
Georgia Tech utilizes the GLACIER Nonresident Alien Tax Compliance System to collect immigration and tax related information from foreign nationals receiving funds from the Georgia Institute of Technology. All foreign nationals receiving funds from the Institute must have a GLACIER record. GLACIER determines tax residency status and tax treaty eligibility for the foreign national. The system creates all forms required prior to payment, as well as the IRS form 1042-S for annual tax reporting.
The Accounts Payable Website includes payment request checklists to assist the campus administrator with the collection of required documentation for each category of international payment (How to pay an honorarium, How to make a fellowship payment, etc).
Please contact firstname.lastname@example.org for additional guidance regarding payment processing for international payees.
Expense-Only reimbursements are for the travel of non-employees who do not have a contract for services, such as guest lecturers, student candidates, or interviewees for employment. In general, official guests and visitors must comply with the same travel regulations as employees.
See "Non-Employee Travel"
Individuals providing a service to the Institute as Continuing Education speakers, OPTIONS instructors, CRC instructors, and other short-term instructors may be handled as independent contractors OR employees depending upon the number of payments involved and the "Classification of Independent Contractors Versus Employees" determination. For speakers and instructors employed through independent business firms, refer to the Consultants—(Individuals and Firms) section of the "Procurement of Service" procedures.
If the review of the questions under "Classification of Independent Contractors Versus Employees" (see procedure Purchase of Services -- Consultants –(Individuals and Firms)) indicates that the individual should not be classified as an employee, the payments may be processed through Accounts Payable on a Check Request Form. The individual will receive a Form 1099 at year end. If the instructor is a not a U.S. citizen or resident, refer to the "Payments to Nonresident Aliens (Non-employees)" procedure.
If the review of the questions under "Classification of Independent Contractors Versus Employees" (see consultants individuals and firms) indicates that the individual should be classified as an employee. Refer to Office of Human Resources Procedures for employment through the Tech Temp Program.
Process to Request a Sub recipient Online-
Principle Investigator or Unit Financial Officers (Departmental Administrators)
Sub recipient Monitoring- Principle Investigator or Unit Financial Officers (Departmental Administrators)
Unit Financial Officers (UFO’s) should assist PI’s in carrying out their sub recipient monitoring responsibilities. This includes:
Process to encumbering Sub recipient in Buzz mart- Unit Financial Officers (Departmental Administrators)
Create “CONFIRMING ORDER/SUBCONTRACT” requisition cart:
Subcontract Invoice Payments:
Subcontract Closeout Process:
Mark subcontract package “complete” and retain packet per file retention guidelines.