400 Expenditures

Related FAQs

401: Payroll

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/27/2012

  • 401-01 Unclassified Employees
  • 401-02 Classified Staff
  • 401-03 Student Employees
  • 401-04 Graduate Research Assistants/Graduate Teaching Assistants
  • 401-05 Postdoctoral Scholars and Clinical Fellows
  • 401-06 Overpayments
  • 401-07 Vacation and Sick Leave Accrual
  • 401-08 Compensated Absences
  • 401-09 Personal Activity Report Forms (PAR)

401-01 Unclassified Employees

Unclassified employees include Professorial Faculty, Research Associates, Senior Instructors, Instructors, Senior Faculty Research Assistants, Faculty Research Assistants, and appointments to a professional title without rank.

See Section 400: Payment of Unclassified Employees in the Payroll (PAY) Manual for a definition of appointment types, methods of payments, forms, summer session appointments, academic wage appointments, earnings and account codes, overload pay, and graduate assistant appointments.

Top

401-02 Classified Staff

Definitions and information about classified and temporary classified employee employment types and employee registration instructions can be found in the EBook 

located on the Human Resources website and under PAY 500: Payment of Classified and Temporary Employees.  

Top

401-03 Student Employees

A Student employee is an individual whose primary effort is directed toward receiving a formal education and whose work effort is part-time and secondary in nature.  A student employee may be enrolled in either a secondary or a post-secondary institution. See Section 200: Payment of Student Employees in the Payroll (PAY) Manual for information on the payment of regular student wages, Federal College Work-Study Program (FCWSP) funds and non-system student wages.

Top

401-04 Graduate Research Assistants/Graduate Teaching Assistants

Graduate Research Assistants and Graduate Teaching Assistants can be appointed to work between .2 FTE and .49 FTE.  These appointments consist of a salary and relief of the instructional portion of tuition and fees at .2 FTE and above.  The differential between resident graduate tuition and nonresidential graduate tuition is waived by the University.  The residential graduate tuition is credited to the student’s account and charged to the index that pays the GRA/GTA salary, unless the index is associated with a sponsored agreement where the sponsor does not authorize this cost in their policy.

Recommended salary levels are available from the Graduate School.  See Definitions section, Payroll Handbook, and Graduate School website for further information about these appointments.

Top

401-05 Postdoctoral Scholars and Clinical Fellows

Postdoctoral scholars are employees/trainees who receive salaries funded by research grants or other university funds and work under the supervision of a principal investigator who is an Oregon State University faculty member.  These scholars and fellows do not receive tuition remission and are not represented by the Graduate Employee Union. They are eligible for medical benefits through the Graduate Employee Union’s health plan. See the Graduate School website for further information.

Appointments are based upon the postdoctoral scholar's research credentials and availability of funds. Appointments should be full-time unless exceptional circumstances require a lower appointment level. Appointments below 0.5 FTE are not permitted. When appointing a postdoctoral scholar at less than full time, the faculty mentor and the postdoctoral scholar must clearly articulate the impact of the lower appointment level on expectations for research and training.

There are also Postdoctoral fellows who are not paid employees of OSU.  They are trainees who are funded by portable fellowships awarded by entities external to Oregon State University.   Because postdoctoral fellows are not considered Oregon State University employees, they are not entered into the University's payroll system nor paid as employees. Instead, their funding is managed by the Office of Post Award Administration via Accounts Payable.

401-06  Overpayments

Overpayment to an employee may occur due to various errors caused by incorrect data, data entry or late paperwork..  All overpayments must be reported by the Business Centers completing an Overpayment Notice.  These notifications are sent to Central Payroll for processing. See PAY 701-01: Overpayments and Collections in the Payroll (PAY) Manual for specific information.

If the employee is still working for OSU and has regularly scheduled pay, the overpayment may be deducted from the employee’s future pay. If the employee is no longer working at OSU, a letter will be sent requesting payment. Note: Overpayments to classified employees will be collected in accordance with the SEIU contract.

Top

401-07 Vacation and Sick Leave Accrual

See Human Resources website

Top

401-08 Compensated Absences

The value of employee vacation and compensatory time that has not been taken as of June 30 of each fiscal year is considered compensated absences.  As part of the annual closing of the books process, the university accrues the year-end amount of compensated absences as a liability in the financial records.  This liability does not include sick leave. 

The value of employee vacation time and compensatory time that has been earned, but not yet taken, will accrue as a liability of the University.  The liability is determined on the maximum allowable balance.  The amount is calculated each year end based on vacation hours balance as of May 31, and adjusted for an estimate of June usage.  Any compensatory time is added to that figure.  The dollar amount of the liability is determined for each individual employee by taking the time x salary rate + OPE/fringe benefits (PERS, FICA, Unemployment).  The calculations are made by the Oregon University System Controller’s Division per 05.321 Compensated Absences Accounting Policy and confirmed by OSU.

The liability is distributed to the Auxiliaries, Service Centers and Statewide organizations.  The liability for all other employees is booked against the general fund.  The year-end entry is:

  • Liability for Compensated Absences (+/-)
  • Compensated Absences Expense (+/-)

Top

401-09 Personal Activity Report Forms (PAR)

PAR forms provide documentation of time and effort expended by OSU employees paid on Grants and Contracts.  The forms are processed quarterly through the Office of Post Award Administration. 

There are times when department personnel decide that an error was made in the quarterly report and that the amount of payroll charged against the grant was in error.  A redistribution of labor charges can be made using a Labor Distribution Form found on the OSCAR website.  If a redistribution of labor is done, then the PAR form for that quarter must also be revised to correctly reflect the amount of effort expended on the grant or contract.  The amount paid and the effort expended must match.

See the Grant, Contract and Gift Accounting Policy and Procedure Manual for additional information.

Related FAQs

402: Fringe Benefits

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 02/04/2008

  • 402-01 Other Payroll Expenses (OPE)
  • 402-02 Encumbrances for Payroll and OPE
  • 402-03 Redistribution of OPE
  • 402-04 Taxable Benefits/Perquisites
  • 402-05 Early Retirement Liability
  • 402-06 GRA/GTA Fee Remission
  • 402-07 GRA/GTA Recruitment and Retention Differential
  • 402-08 Assessment for PERS Benefit Equalization Fund

402-01 Other Payroll Expenses (OPE)

Employing departments must pay Other Payroll Expenses (OPE).  OPE is the cost to the department of an employee in addition to the gross salary.  OPE is charged proportionately to each index from which an employee is paid.  When an account redistribution occurs, OPE will follow the transaction, and be redistributed accordingly.

OPE includes employer contributions for PERS, FICA, medical insurance and workers compensation.

The OPE amount paid for each employee is based upon the type of employment, the gross pay amount, retirement system eligibility, and benefits.  OPE varies monthly and annually, but a rate is estimated by the Budget Office so that departments can plan for this expense.

Top

402-02 Encumbrances for Payroll and OPE (Fringe Benefits)

Encumbrances are established shortly after the beginning of the fiscal year and adjusted on a monthly basis throughout the remainder of the fiscal year.  Encumbrances are calculated separately for salary and OPE.  Estimated OPE charges calculated by employee class codes can be seen on Banner form NTRFRNG.  A list of Employee classes may be found at http://oregonstate.edu/admin/hr/hristeam/empclass.htm.

Encumbrances are not liquidated using the actual expense transactions.  Encumbrances are adjusted monthly, based on the forecast pay amounts and predetermined OPE percentages of these forecast pay amounts for a given FOAPA distribution.

To find the detail of all OPE posted to an index for a specific period:

  1. Access NYIDIST in the Banner system
  2. Define the parameters to the specific index and time period for which you want information
  3. Page down to the data section
  4. Query based on account code 10901.

Top

402-03 Redistribution of OPE

OPE charges are redistributed to indexes based on the labor distribution attached to the pay.  When pay is redistributed, the OPE is also redistributed.  When pay is moved between a federally funded and non-federally funded index, OPE will change by the amount of the SAIF deduction.  See FIS 1107-01 for OPE correction instructions.

Top

402-04 Taxable Fringe Benefits/Perquisites

The following benefits may be taxable to the employee:

  • Awards (cash and non-cash)
  • Tuition reduction (The difference between full tuition and the staff rate.)
  • Personal use of state vehicle
  • Moving expenses
  • Membership dues
  • Insurance benefits

For more information see Section 900: Taxable Fringe Benefits in the Payroll (PAY) Manual. 

Top

402-05 Early Retirement Liability

Programs that have been instituted at various times by the institution have provided a subsidy or incentive to employees in exchange for tenure relinquishment with resignation or early retirement.  

Top

402-06 GRA/GTA Fee Remission

The fee remission is the payment of resident graduate instructional tuition by the University on behalf of the graduate student as part of their appointments.  It is shown as a credit on the student’s accounts receivable.  See FIS 002 Definitions for further explanation.

Top

402-07 GRA/GTA Recruitment and Retention Differential

The Recruitment and Retention Differential Policy provides that Graduate Assistants (teaching and research) receive a $110 differential payment for each term until a health plan is provided for Graduate Assistants.  For further information, see Graduate Employee Contract Information at http://osu.orst.edu/admin/hr/gradstud/home.html and the OSU Graduate School home page at http://oregonstate.edu/dept/grad_school/.  Questions about how this policy relates to sponsored research should be directed to the Office of Sponsored Programs at Sponsored.Programs@orst.edu.

Top

402-08 Assessment for PERS Benefit Equalization Fund

The PERS Benefit Equalization Fund was established to make payments to retired employees who were contractually entitled to benefits in excess of the cap placed on 401 (a) benefits payable from regular PERS by Internal Revenue Code 415.  OUS is charged the assessment, who passes it along to the appropriate institutions.  OSU, in turn, passes any cost on to the appropriate hiring unit.

403: Graduate Assistant Employed by Non-Academic Unit

Fiscal Operations Manual
Section 400: Expenditures
Effective: 06/08/2006
Revised: 04/15/2013

Per OSU Graduate School, all graduate assistant appointments are made by the Graduate School or an academic department.  Administrative and student support units are required to partner with an academic unit when hiring a graduate assistant.  The academic unit is responsible for paying the student from the appropriate academic department’s general fund index.  When a graduate assistant is working in an administrative or other unit, the academic department must be reimbursed for the costs incurred by them. 

For graduate appointments supported by OSU general fund 001100, a journal voucher must be processed debiting the administrative/support unit and crediting the academic unit’s general fund index for the amount of both wages/stipends, differentials, and OPE.  In the absence of a contrary policy in the academic unit, OPE should be calculated at $9 per term plus any applicable benefits for those covered by the bargaining unit agreement.  Since tuition remission follows the salary index, it will be reimbursed by the institution. 

For graduate appointments supported by Statewide Public Service and other funds (non-001100 E&G, Designated Operations, Service Units, Auxiliaries, and Restricted Funds), partnering of the funding unit with an appropriate academic unit will be required to gain authority to offer tuition remission.  For all of these funds (ranges 001101-019999, 030000 – 039999, 050000 – 199999, 200000 – 499999, and A00000 – ZZZZZZ), the wage/stipend, OPE and tuition remission continue to be a direct cost of the Statewide Public Service or other fund operation.  Coordination between the academic unit graduate student coordinator and the business center of both units is essential.  These administrative units will need to provide their index to the appropriate academic department, which in turn will initiate the appointment paper.  The Business Center Human Resources Office will only accept appointments from the Graduate School or academic units.

Procedure:

The following procedure should be used by administrative units to reimburse academic departments for wages/stipends and OPE of graduate assistants working in their unit.

For graduate appointments supported by OSU general fund 001100, a journal voucher (3BCx rule code) must be processed:

            Debit  Administrative/support unit index – using account 24999
            Credit  Academic unit’s general fund index – account 79302

The amount of the JV should include both wages/stipends, differentials, and OPE.  Instructional Tuition Remission and Health Insurance subsidy is not included in the amount because the institution will reimburse the 001100 general operating fund for this cost.

For graduate appointments supported by Statewide Public Service and other funds (non-001100 E&G, Designated Operations, Service Units, Auxiliaries, and Restricted/Grant Funds) the cost is paid directly from those funds.  There is no journal voucher necessary, nor is there a reimbursement for tuition remission.

Additional References:

See "Guidelines for Accounting & Reimbursement – GA Tuition Remission" on the Graduate School website.

404: Arranging for Automated Clearing House (ACH) Payments

Fiscal Operations Manual
Section 400: Expenditures
Effective: 12/01/2008
Revised: 08/26/2010

 

OSU encourages employees and vendors to have reimbursements or vendor payments deposited directly into the employee’s or vendor’s bank account via automatic clearing house (ACH) processing.

  1. Employees may sign up for Direct Deposit Online via OSU Online Services by selecting Personal Information and View or Update Direct Deposit Authorization.  There are two sections – the top section is for Student Accounts/Employee Payables, and the bottom section is for Payroll.  No attachment is required for online setup.  Alternatively, employees may complete the Direct Deposit Authorization form and submit it to Accounts Payable with a voided check or deposit slip.  Reimbursements may be deposited to either your checking or savings account.
  2. Vendors may sign up for Direct Deposit by using “Vendor Direct Deposit Authorization” and submitting the form to Accounts Payable with a voided check.
  3. There is a required pre-note process that verifies with the bank the supplied banking information.  This process can take two weeks.  Payments will continue to be made by check until the account verification process is complete.
  4. Once the pre-note is completed, payments will be directly deposited to the bank account.  The employee or vendor will receive an email notification of the direct deposit when the transfer of funds is made.
  5. OSU employees are responsible for keeping their email address and banking information current.  Submit a new Employee Reimbursement Direct Deposit Authorization form (mark change at the top) or use OSU Online Services to update information.  This information cannot be updated by telephone.
  6. Vendors are responsible for keeping their email address and banking information current.  This information cannot be updated by telephone.

405: Purchase Orders and Encumbrances

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 04/22/2011

  • 405-01 Signature Authority
  • 405-02 Processing a Purchase Order
  • 405-03 Encumbrances
  • 405-04 Liquidating a Purchase Order
  • 405-05 Establishing an Encumbrance without a Purchase Order
  • 405-06 Liquidating a Manual Encumbrance

405-01 Signature Authority

See PaCS 202-004: Contract Signature Authority  in the Procurement and Contract Services (PaCS) manual for personnel authorized to sign a contract on behalf of the University.

405-02 Processing a Purchase Order

In Banner Finance, Purchase Orders and Invoices are called documents. Document Level accounting allows use of one or more accounting distributions, i.e. FOAPALs, to pay for one or more commodities as a percentage (or other distribution) of the total charge. Document Level accounting is more commonly used than Commodity Level accounting.

Commodity Level accounting allows assignment of one or more FOAPALs to each specific commodity. Commodity Level accounting might be used by a Dean’s office to purchase several items from one vendor for several different units. Commodity Level accounting must be used when the 40101 (capitalized equipment) account code is used so the information will feed into the fixed asset module of Banner properly.

A purchase order can be processed for each purchase greater than $5,000 that is made by the university and is not charged to an Auto Pay vendor.  The Banner FIS Purchase Order (PO) specifies commodities ordered from a specific vendor, and the price, terms, and conditions of that order.  Unit personnel or PaCS enters the PO using the FPAPURR screen in Banner.  The entry includes accounting data that automatically creates needed encumbrances against the unit’s accounts.  Purchase Orders of $25,000 or more are required to be processed through PaCS. 

Information specific to equipment purchases may be found in PRO 202: Purchases.

Ship to Codes/Buyer Codes are maintained by the PaCS.

405-03 Encumbrances

Encumbrances are automatically created when a Purchase Order is completed and approved in FIS Banner.  The encumbrance is automatically liquidated when a regular pay invoice is completed and approved, referencing the Purchase Order number.  If “F” Final is selected when paying, the PO is closed.

405-04 Liquidating a Purchase Order

A purchase order is liquidated by referencing the PO number during payments.  If for some reason the Purchase Order has not been completely liquidated by this process, a liquidating Journal Voucher must be created in FGAJVCD.

405-05 Establishing an Encumbrance without a Purchase Order (Manual Encumbrances)

Manual encumbrances can include airfare, travel reimbursements, supplies, printing, GRA/GTA tuition and indirect costs.  Use Banner form FGAENCB to make a manual encumbrance

Manual encumbrances are set up, maintained and liquidated by the Office of Post Award Administration (OPAA) for all sub-grants and subcontracts.  See FIS 1106-09 Payment of Grants and Contracts Sub-Award Invoices with Encumbrance  for processing subcontractor invoices with these encumbrances.

405-06 Liquidating a Manual Encumbrance

Any encumbrance set up on FGAENCB needs to be manually liquidated (or in some cases, readjusted) once the actual expense is incurred.  This is done via a journal voucher on FGAJVCD – Journal Voucher Entry Form, and rule code 2LIQ.  Any manual encumbrances remaining for subcontracts after the final payment to the vendor/subcontractor will be liquidated by OPAA.

Reference:

Training Offered by Financial Accounting & Analysis/Business Affairs

OSU Professional Development Central Registration

406: Vendor Invoice Processing

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/18/2011

An invoice from the vendor must have the following to be processed by OSU:

  • Vendor’s name
  • Vendor’s mailing address
  • Billed to Oregon State University at OSU building or location

If the documentation/vendor invoice is addressed to an individual employee and their home (or non-OSU) address, payment cannot be made directly to the vendor by OSU. The individual must pay for the product or service themselves, and then request reimbursement from OSU if it is a qualified business expense. This request for reimbursement is made using a Reimbursement Request Form with proof of payment attached.

Banner invoices will route through unit approval queues before routing to the appropriate Business Center or Business Affairs for approval. Invoices are received, reviewed, and approved in the ordering unit. If they have authority to do so, the unit enters the information into the FAAINVE screen in Banner. If they do not have Banner access for this entry, the unit sends the invoice to the Business Center. Back-up documentation is scanned into Nolij. The invoice is electronically routed to the following approval queues:

1.      Unit approver, if unit approval is still needed;

2.      Property Administration, if paid on account code 40101 “capitalized equipment”; and

3.      Business Center or Business Affairs for final approval.

Payments $5,000 or greater must have a P.O. reference in Banner or prior approval from PaCS. For additional information, see PaCS 303: Purchase Orders.

Invoices are audited for accuracy, compliance, allowability, use of proper account code, payment amount, appropriate discounts taken, correct vendor, and payment address. For expenditures on indexes connected with gifts, grants, and contracts, OPAA also reviews these documents for specific sponsor requirements, policies, or limitations. Banner invoices with errors will be disapproved on-line and routed back to the originator for correction. The reviewer will specify what needs to be corrected. There is a requirement for an additional special review/approval when a check is greater than $300,000. No approvals should be done without the required invoice/documents (paperwork).

Travel advances, Departmental (Non-travel) advances, and the associated settlement reimbursements are approved by the appropriate Business Center and Business Affairs. Exception: Moving Expenses should be sent directly to Business Affairs.

406-01 Trade-In of Capital Equipment

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/27/2012

When there is a trade-in of capital equipment, the invoice for the new asset must be processed for the full amount of the asset (including trade-in credit) even though the invoice from the vendor will probably be reduced by the value of the trade-in allowance.  In order to pay the correct amount, a credit memo must be created in Banner for the amount of the trade-in allowance.  Be sure to process the invoice and credit memo simultaneously (cross-referencing the document numbers in the text field of both).  This allows the proper payment to the vendor.

The credit memo for the amount of the trade-in must be recorded/posted to fund 095880 (Asset-Undistributed Income Clearing) and Account Code B5801.

Related Frequently Asked Questions

406-02 Vendor Invoice Number Guide

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

Banner has a feature that will “catch” duplicate payments to the same vendor if the same format is used for all payments.  Banner looks for an exact match in the invoice number field, so even an extra space will make the number unique.  The standards are listed below:     

Guideline when Paying by Regular Invoice:

1. Enter invoice number exactly as provided by vendor. Do Not Add:

  • Extra spaces or characters to the number,
  • Extra characters to indicate a credit memo,
  • Department name, account number, your information

If the vendor has started recycling their invoice numbers, add the year following the invoice (Example 12345/02).

When entering an invoice into Banner and an error message is given that the invoice number is a duplicate:

  • Click on the icon at the end of the vendor invoice number field.
  • You can also go directly to FAIVNDH from the direct access menu to check for duplicate payments.

Guidelines when regular invoice numbers are not used:

Some vendor invoices do not have invoice numbers.  When that is the case, another identifier that is unique and meaningful to the vendor must be referenced.  The number can only be used once, and has a maximum length of 15 characters.

Types of identifiers that can be used:

  • Job Number
  • Work Order Number
  • Account number/Customer Number and month/year
  • Any other unique number on the vendor’s invoice that identifies payment for the vendor

Utility Payments

  • Utility bills are paid referencing the account number assigned by the vendor followed by the month/year.                  

Telephone Payments

  • Telephone bills are paid referencing the Invoice Number Assigned by the vendor.
  • Use Telephone number or Account number followed by the month/year. 
  • Mail remittance stubs with the check.           

Vendors who cannot identify payments by invoice number alone are:

  • PGG-Pendleton Grain Growers - needs to have the invoice number followed by the account number.
  • Albertson’s – payment should be from the monthly statements using the last nine digits of the Advantage card “space” mm/yy as the reference number (example: 100160693 04/11)
  • Safeway - needs to have store number.

Guidelines when Paying By Statement:

  • Enter account number exactly as provided by vendor and include month/year in the invoice number field.
  • Only current charges may be paid.  If not paying all current charges, a Notice of Invoice Change must be submitted with the document.
  • When something needs to accompany the check, Business Affairs will print out the scanned CTA document from Nolij at the time the check is processed.

406-03 Separation of Duties

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 08/26/2010

See Section 1100, Banner Processes - FIS 1108 Approval Routing.

406-04 Signatures

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 7/1/2013

The signature represents the payment is an appropriate allowable expense within the current budgetary authority.  Do not use signature stamps. If you have the authority, sign your own name and print your name under the signature.  Signature stamps are not accepted in lieu of an original signature.  Do not sign other people names; this is forgery.   Remember the separation of duties still applies.  Original signatures are required on reimbursement requests for both the claimant and the department approver. A properly authenticated eSignature meets the threshold of an original signature. See FIS 1403-13 e-Signature.

The person signing the document must be able to answer questions concerning the document, if additional information is required. 

406-05 Invoice Adjustments

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

Price discrepancies requiring alteration of the vendor’s invoice must be documented with a Notice of Invoice Change Form.  Common errors include extensions, overcharges on quotes, freight charges on FOB Destination, short shipments, returned merchandise, or damaged goods on FOB Destination orders.  The Notice of Invoice Change should be submitted with the corrected invoice to the Business Center and mailed with the check to the vendor.

406-06 Credit Memos

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

Credit memos are issued by the vendor to adjust a previous invoice; to refund an overpayment or adjust for returned merchandise.      

The credit memo must be matched with the original invoice to determine whether the credit should be processed.  When a credit is due for a previously paid invoice, process the credit memo in the same manner as an invoice.  Click on the Null Credit Memo field, otherwise a check will result instead of a credit being taken.  A cross-reference to the original invoice must be noted in the text section on the BANNER invoice form.  If a credit memo involves a previously discounted invoice, the credit memo should be reduced to reflect the original amount paid.

Equipment credits must have the word “credit” in the commodity description.

The credit memo will be posted to the unit’s operating ledger immediately (the offsetting entry resides on the fund balance sheet as a reduction of accounts payable liability, until new invoices from the same vendor satisfy the credit memo.)

If the vendor has not assigned a number to the credit memo, use the original invoice number with the letters CM, otherwise the BANNER system will consider it a duplicate invoice.

Many vendors submit credit memos to balance their accounts receivable, and the credit memo is for information only and should be retained in unit files. A refund check should be requested from the vendor for credit memos not applied to a vendor payment within a year.

406-07 Discounts

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 08/26/2010

Discount terms are usually counted from the date the invoice or the merchandise is received, whichever is later.  Check each invoice and purchase order for discount terms and take the larger discount if there is a difference.  Take the discount only on items purchased, not on shipping or handling charges.  Discounted invoices should be given priority processing

If a vendor disallows a discount already taken, verify with the original documents and BANNER system information.  Create a BANNER invoice for the disallowed amount.  Use the original vendor invoice number with a suffix DD.  Explain in text the reason for the payment.

406-08 Interest Penalty on Overdue Accounts Payable

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

Allow time for approval routing and check processing.  Vendors deserve to be paid promptly. Many vendors are billing finance charges on unpaid bills after 30 days.  Interest penalty (finance charges) billed to OSU should be reviewed for validity and permissibility per ORS 293.462.  In most cases, these charges are computer generated and the vendors will forgive them.  However, if the invoice is paid over 45 days late, and the vendor demands payment of the finance charge, count the 45 day period from the date the invoice was received by OSU to the date the check was issued in payment of the original claim.  Interest may begin to accrue on the 46th day.  Late payment charges are limited to 2/3 of 1% per month, not to exceed 8% per year, and cannot exceed the usual charge assessed by the vendor.  Date all invoices when received by the unit to establish the received date.  Do not construe this procedure to mean there are 45 days to initiate the payment process.

406-09 Prepayments (Cash with Order)

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 08/26/2010

Some vendors require advance payment before providing goods or services.  All prepayments require documentation for audit purposes and clear communication to the vendor.  Documentation may be provided by one or more of the following:

  • Vendor invoice specifying required prepayment
  • Purchase Order
  • Registration Form
  • Vendor Quote
  • Customer order form/work order/job order
  • Contract

406-10 Paying Taxes

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 08/26/2010

State of Oregon agencies are exempt from paying federal taxes on purchases of gasoline, oil, etc.  If an employee paid for a product and is seeking reimbursement or if the product was purchased and possession is taken in another state, taxes may be paid.  The appropriate account code is 28703.  These are taxes related to the operation of the University.  Agencies are exempt from paying State, city or county taxes in some instances.  OUS is subject to real and personal property taxes on property owned but not used for institutional purposes, such as miscellaneous rentals.  See OUS Fiscal Policy Manual, Procurement & Contracting, Purchasing and Accounts Payable 70.400.

406-11 Payment Terms (i.e. Net 30)

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 08/26/2010

The Payment Due Date default on FAAINVE has been set to NET 30 Days. The Discount code shows "03"; this is Net 30. This discount code tells the Banner system to automatically calculate the Payment Due Date as 25 days after the vendor invoice date. DO NOT CHANGE this default unless the vendor requires their payment within a specific time period or there is a discount.

406-12 Lost or Stolen Checks

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

If a vendor contacts your unit to report checks that may be lost or stolen send a completed "Request for Replacement Check" form to the vendor for signature.  When the signed form has been returned to the Office of Business Affairs, a replacement check can be issued.   The Business Affairs office will work with the Business Center to reenter the invoice and issue a replacement check.

406-13 Vendor Maintenance

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 02/15/2013

A vendor must be established in FIS Banner before a purchase order can be processed or an invoice paid. New vendors are set up in Banner FIS at the request of the ordering department. If the unit cannot find a specific vendor in Banner through a tax identification number (TIN) or name search, the appropriate Vendor Maintenance Form should be completed and sent (usually by fax to 541-737-2069) to Business Affairs, Vendor Maintenance. The Business Affairs staff performs research to make sure the vendor does not exist and, if it does not, enters the information into Banner as appropriate.

Reminder: Whenever there is a change of address for a vendor (other than an OSU employee or an OSU Student), a Vendor Maintenance Form should be completed. A copy of an invoice showing the new remit-to address needs to be attached to this form and forwarded to Vendor Maintenance. A Substitute W-9 Form must be completed and signed for any terminated business entity vendor that needs to be reactivated (foreign entity reactivation requires a W-8 Form).

406-14: One-time Vendor Refunds

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 02/15/2013

Full or partial refunds for fees that were received for Parking Citations, Parking Permits, and/or Athletic Camp or other Registrations may be done through a modified or one-time vendor set-up process. To qualify, the vendor must not already be set up in Banner as a vendor, must be an individual (not a business or company), payment must be $750 or less, and the payment cannot be considered an expense to OSU.

The refund should be paid out of the same fund and revenue account code where the original payment or cash was received so it is recorded as a reduction of revenue. Note: a refund for a payment that was originally made on a credit card must be processed as a credit against the same credit card.

When a refund is processed that contains a known service fee that will be retained by a unit, the accounting should be done to show the refund amount plus the service fee amount as a deduction to the original revenue account code and a second line item which reflects a deduction or credit for the service fee amount to account code 06997 Return and Allowance.

To request a one-time vendor refund – completely fill out the Payment Request  form with the required information and signatures, the “F” document number from the original receipt, and the reason for the refund. Please explain in the Business/Refund Purpose section of the Payment Request form if the request is for a partial refund or service fees are withheld. Submit the form for refunds related to Parking items to Facilities Services and for all other refunds submit a copy only to Financial Accounting & Analysis, Business Affairs.

Once received, the data from the Payment Request form is entered into FIS Banner. The requesting OSU unit will be notified with the “I” document number so they can route the original document to the appropriate Business Center for approval, scanning, and filing.

407: Personal Reimbursements

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 5/17/2013

Use of a Departmental Procurement Card (see FIS 408-01 Procurement Cards) or OSU’s Auto Pay Vendors (see FIS 801-04 Auto Pays) are the preferred methods for OSU business related purchases. 

On the occasion when logistical reasons or extenuating circumstances occur that preclude the use of normal OSU purchasing processes or protocols and the unit does not have a petty cash fund (see FIS 1402-10 Petty Cash), employees may (with approval from their manager) make small purchases (normally less than $100) with personal funds and then subsequently be reimbursed by OSU. Also, see FIS 1106-04 Payment when Check Disbursed to Other than Vendor.  

A personal reimbursement transfers the ownership of an item or service from the OSU employee to OSU versus OSU paying the vendor directly. The practice of personally paying for services and equipment directly by employees is strongly discouraged. Convenience and/or a lack of proper planning are not legitimate reasons to circumvent regular OSU purchasing channels.  In addition, using a personal credit card to make purchases with the intent of earning rewards program points and/or benefits is strictly prohibited. 

All reimbursements must be submitted for payment within 60 days of incurring the cost or within 60 days after the conclusion of the travel/field-work during which the expenditure was made and in the appropriate fiscal year for the expense so that the costs will be recorded appropriately for financial statement purposes. The fiscal year ends June 30th.

Accordingly if an employee does not submit a reimbursement request within 60 days of the purchase date, the business center may offer a one-time educational session, depending upon the circumstances, before they issue a Memorandum of Understanding (memo or MOU) that is signed by the employee to document their awareness and understanding of the policy and inform them that the university will not reimburse their late reimbursements in the upcoming two year period. The option to offer an educational interaction instead of immediately issuing a MOU for an infraction of this policy should only be for those rare cases where it is very clear that the employee would reasonably not have known about this policy (i.e. new employee). A second violation for this same individual would result in issuance of the memo. Purchases that have been made with personal funds will be reimbursed by OSU when the following documentation is provided.

1. Documentation showing purchase and payment by the employee;

2. Statement of University business purpose, including intended use and physical location of the goods (where the goods will be used – campus office, in the field, etc.);

3. Signature of employee claiming request; and

4. Signature of authorized Budget Authority other than requestor also confirming #2. 

The unit or Business Center prepares the personal reimbursement request documentation as noted above. If completed by the unit, this form is then sent to the appropriate Business Center for final review and processing.

Note: when using the Reimbursement Request form it is preferable to hold individual small receipts and submit as a larger amount as long as the submission is within 60 days of the earliest expense receipt.

Students and OSU volunteers should follow FIS 407-01 Cash Out for policy and procedures for reimbursement of expenses up to $100.

407-01 Cash Out

Fiscal Operations Manual
Section 400: Expenditures
Effective: 12/01/1998
Revised: 04/15/2013

The Cash Out process may be used to facilitate timely reimbursement to students and volunteers for expenses up to $100.00.  A Cash-Out form with attached receipts is completed, signed at the unit by the Budget Authority, and brought to the Cashiers' window at Kerr Administration Building where cash is disbursed. This method of reimbursement is available only to volunteers and students who are already set up in the Banner system.

Procedure

1. Contact the Business Center to determine if the student or volunteer has an active vendor record in FIS Banner.

2.  Complete the Cash-Out form (pdf format) accessible through OSCAR.

3. Attach original itemized receipts and clearly mark the item being reimbursed. Ensure receipts do not include personally identifiable information such as  the credit card number. If the charge card slip does not itemize the purchase, include a separate store (cash register) receipt. For  receipts that do not show itemizations of the purchases, clearly write detailed information of what was purchased on the receipt.

Avoid charging or submitting reimbursement requests for unallowable items. Regardless of method of payment, all expenses paid by the University are audited. Funds will be requested back from the individual for any unallowable cost already reimbursed.

Reimbursements not allowed by the Cash-out method include:

  • Any costs that cannot be documented with a clear, complete business purpose
  • Wages, stipends, and testing incentives
  • Expenses paid for an event that has not yet occurred.
  • Deposits, such as those paid for photocopy cards or key deposits/key refunds.
  • Petty cash replenishments.
  • Communications, including cellular and telephone long distance charges, internet connections and phone cards.
  • Gift Cards or Certificates. These require prior approval and cannot be reimbursed. See FIS 410-27 Gift Cards and Certificates.

The following items are generally considered personal and should not be processed through OSU:

  • Candy and/or Gum
  • Alcoholic beverages
  • Desk items, such as Kleenex
  • Greeting cards
  • Flowers as gifts
  • Key deposits
  • Aspirin, cold medications, etc.
  • Clothing
  • CD's/cassettes
  • Meal tips >15%
  • Coffee room supplies for faculty & staff use
  • Meal cost over the OUS authorized per diem

4. Obtain approval by the person in the unit with budget authority prior to submission at Cashiers.

5. The claimant does not sign the original form until requested to do so by the Cashier.

6. The claimant takes the approved Cash-Out form, with the original receipts attached, to the Cashier's window in Kerr Administration Building. The claimant signs the form when receiving funds.

NOTE: The claimant has 30 days from the date on the approved Cash-Out form to present the Cash-Out request to Cashiers. After 30 days, the form will need to be re-approved (dated and initialed) by the unit.

The unit should keep a copy of each Cash-Out. These payments will be entered into FIS Banner via a JV by Cashier’s Business Affairs to the Index and Account code indicated by the unit. The description lines will begin with a "CO", identify the person paid, and the purpose. This information will show on the FGRODIN report, and in the data warehouse transaction detail. It will also appear on the individual's accounts receivable record.

  • Any disapproved expenses are to be paid by check payable to Oregon State University within 30 days after notification by Business Affairs. The check is to be submitted to the Cashier’s Office in Business Affairs where a cash receipt is prepared and the check deposited. A copy of the receipt is sent to the unit for the claimant's records.

407-02: Petty Cash

Fiscal Operations Manual
Section 400: Expenditures
Effective: 07/01/2000
Revised: 04/15/2013

 

To pay for small office type supplies, making small volume purchases when a procurement card is not available use a Petty Cash fund. Do not use this fund for the payment of refreshments, meals, entertainment, travel, registrations, or membership fees. Do not use the Petty Cash fund for making change.

Petty Cash purchases have the same documentation requirements and fall under the same restrictions as other OSU purchases. Petty Cash funds should be kept as small as possible. The cash must be kept in a locked secured area. The receipts for items that have been purchased, but not yet reimbursed should be kept in a separate place from the cash.

Note: Use of petty cash is discouraged. Wherever possible, units are encouraged to use a procurement card to handle small volume purchases.

Procedure

 Contact Cashiers in Business Affairs to set up a Petty Cash Fund. The fund is established under an individual’s name, and that person will be responsible for the fund as the petty cash custodian. The department head is responsible for informing Business Affairs when there is a change in the designated custodian. Business Affairs must approve and process any changes to the custodian information.

Custodian Responsibilities:

  • Ensure that appropriate receipts are obtained to support any disbursement.
  • Ensure that the expenditure is appropriate in nature.
  • Ensure that the petty cash fund is reconciled at all times. THE PAID RECEIPTS OR INVOICES PLUS THE CASH SHOULD ALWAYS EQUAL THE FUND BALANCE.
  • Ensure that the funds are kept in a secure location, such as a locked cash box or desk drawer. The Custodian should maintain possession of the key. Funds should never be left unlocked or unattended and should be concealed from general view when not in use.
  • Petty cash funds and associated documents should not be combined or commingled with any other departmental funds.

Receipts must be provided for authorized purchases. No money should be disbursed from the petty cash fund to reimburse a person unless a paid receipt or invoice is presented. If receipts are not issued for a type of expense incurred, (e.g. parking meters, pay phone calls, etc.) then a written note describing the expense is required. The person who made the expenditure must sign the note.

If cash is advanced to make an authorized purchase, a petty cash advance slip should be signed showing the amount of money the individual received. When the unspent money and a paid receipt are returned, the advance slip should be destroyed.

Reimburse the petty cash fund no less often than quarterly.

A payment request form including itemized receipts should be submitted to the appropriate Business Center to reimburse the petty cash fund.  Petty cash reimbursements redistributing the purchases to the appropriate index and account code are entered into FIS Banner by the appropriate Business Center. The check is made payable in care of the petty cash custodian.

At fiscal year-end Business Affairs will send a Petty Cash Reconciliation Report to the custodian for completion. The completed report is returned to Business Affairs as part of the year-end closing process.  The size and activity level of the petty cash fund should be reviewed on an annual basis to determine if the amount is appropriate and if the fund is still needed.

Additional Information

See the listing of restricted uses of the OSU Purchasing card on the Business Affairs website.

OUS Treasury Management Operations 105.100

407-03 Vacant

Fiscal Operations Manual
Section 400: Expenditures
Effective: 03/01/1999
Revised: 1/01/2012

 

407-04 Corporate Travel and Entertainment Card

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/11/2008

The Oregon University System has an agreement with a banking institution to provide corporate VISA cards to employees of OSU.  This Visa card is to be used only for authorized OSU reimbursable expenses.  Misuse of the card may result in disciplinary action, up to and including termination of employment.  OSU assumes no liability for this card, the cardholder is totally liable for all charges made against this account and for any other obligations arising from use of this card.

407-05 Vacant

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised:

407-06 Vacant

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised:

407-07 Departmental Advances (Non-Travel)

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 03/15/2013

OSU employees (faculty and classified staff employed at least 0.5 FTE) who provide payments to participants for official OSU business may be eligible for a departmental advance. Regardless of the funding source, the approved use must benefit the university’s educational, research or public service mission to qualify as official university business.

Departmental advances have a preferred minimum of $250.00 and are only for the period of participant activity. Advances are intended to be used within 90 days of receipt. Advances beyond this period will be granted only in exceptional circumstances. If the approved use is cancelled or delayed, any advance that has been given is due and must be immediately returned.

Procedure - Complete the appropriate OSCAR task for the Departmental Advance and submit it to the Business Center at least five working days prior to the date the advance is needed. After the advance is prepared, the employee responsible for the advance is required to sign a statement acknowledging the receipt of the advance by either direct deposit or check and agreeing to the terms under which the advance is given.

It is important to settle any advance in a timely matter. The settlement due date is clearly written on the Departmental Advance form by the Business Center and a copy is given to the employee.  No other notice will be given.  As a reminder, the employee’s photo ID is required when picking up an advance check from a Business Center and checks will not be released more than seven days before the approved use date.

An advance should be settled by the 15th day of the month following the completion of the approved use.  A copy of the Departmental Advance form must be submitted to the Business Center with the Personal Reimbursement Request. The employee is reimbursed for the expenses less any amount advanced.  If the total of the Personal Reimbursement Request is less than the amount advanced, the responsible party will be notified of the exact difference.  This amount is due in full when the reimbursement request is submitted.

Settlements are audited and input into FIS Banner by the Business Center. Failure to comply with settlement procedures may result in disciplinary action against the employee. This might include turning the amount of the advance over to Payroll so it would be taxed as additional income to the responsible employee and/or limiting the employee’s ability to receive future advances.

407-08 Travel Advances

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 2/15/2013

When traveling on official university business, OSU employees (faculty and classified staff employed at least 0.5 FTE), Graduate assistants appointed at .49 FTE, students and official volunteers may be eligible for limited travel advances. The minimum $250 advance from the appropriate Business Center may be used for items that cannot be pre-paid or paid through other means such as a direct bill or by a Corporate Travel Card.

To be eligible for an advance, a traveler and/or their trip must meet the following criteria:

  • out-of-state or international travel is longer than five days, or
  • trip is longer than 15 days and the use of the Corporate Travel Card is not a viable alternative to an advance, or
  • traveler is not eligible for the Corporate Travel Card, and
  • any previous advances have been settled in full.

A cancelled Corporate Travel Card may be insufficient justification for obtaining a travel advance.  The Business Center has authority to grant exceptions to the above criteria on a case-by-case basis.

An advance may be given to a traveler (if otherwise ineligible) if a department head guarantees its repayment in writing against a specified general fund index.

Travelers who are not eligible for a travel advance may be given a travel departmental advance.  A travel departmental advance is issued in the name of an OSU employee on behalf of the traveler.  This employee is typically the traveler’s supervisor and must meet certain criteria.  This employee takes full responsibility to see that the advance is repaid. 

To submit an advance request, complete the appropriate OSCAR task for the Travel Advance or Travel Departmental Advance and submit it to the Business Center.  The completed OSCAR request form must be submitted to the Business Center at least five working days prior to the date the advance is needed. If a new employee is eligible for a Corporate Travel Card, application forms must be turned in with the request for an advance. 

The responsible employee for the advance is required to sign a statement acknowledging the receipt of the advance by either direct deposit or check and agreeing to the terms under which the advance is given. The employee’s photo ID is required when picking up the check from the Business Center. Checks will not be released more than seven days before the departure date.

The settlement due date is clearly written on the Travel or Travel Departmental Advance form by the Business Center and a copy of the form is given to the employee.  No other notice will be given.  Advances should be settled in full within 45 days of the completion of the trip.  A copy of the Travel or Travel Departmental Advance form must be submitted to the Business Center with the OSU Travel Reimbursement Request (TRES).  The traveler is reimbursed for the expenses less any amount advanced.  If the total of the Travel Reimbursement Request is less than the amount advanced, the responsible party will be notified of the exact difference.  This amount is due in full at that time. 

Settlements are audited and input into Banner by the Business Center.  Any past due balance will be turned over to Payroll and taxed as an additional income to the employee responsible for the advance. This may affect the person’s ability to receive future advances. 

If the trip is cancelled, any advance given is due and must be returned immediately.

Failure to comply with settlement procedures may result in disciplinary action against the employee.

408: Centralized Processing of Expenditures

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

408 Centralized Processing of Expenditures (Auto Pays)

On a pre-arranged basis Auto Pay Vendors submit to the Business Affairs’ office the following information:

  • a hard copy statement
  • copies of all invoices listed on the statement
  • an electronic billing file

Payment information is obtained from individual invoices that are retained as backup documentation.  Invoices submitted for payment must legibly show the printed name of the person initiating the credit purchase, their signature, telephone number, unit name, six digit Index code and activity code if desired.  Vendors who submit invoices containing invalid or missing information may be requested to remove the charge from the OSU account.  Direct charges to the Agriculture Research Foundation (ARF) and OSU Foundation should never appear on Auto Pay accounts.  These foundations are separate entities from OSU.

Business Affairs processes the payment to the vendor and then posts the charges to the unit’s index. 

  1. Type of business:
    Purchases made by OSU staff, faculty, and students from an auto pay vendor are not audited for appropriateness prior to purchase, therefore not all merchants are suitable to become a part of the Auto Pay system.  Merchants providing 1099 tax reportable services or equipment over the $5,000 purchasing threshold are not eligible to become Auto Pay vendors because of purchase order, audit, and tax reporting requirements.
  2. Volume of Business:
    Monthly payment history should substantiate a minimum of twenty invoices, paying more than four separate OSU departments
  3. Default account code:
    Central payments require the use of a generic account code, therefore credit purchases with individual merchants need to fall into one account code category
  4. Ability to provide and maintain required billing procedures:
    An electronic billing file with a minimum of modifications needed, individual invoices with correct information, correct posting of payments to invoices.
  5. Signed Agreement acknowledging requirements/provisions of Auto Pay Vendors:
    All contracts need to be negotiated through PaCS and approved by the Business Affairs  office prior to set up. 

Contact PaCS about setting up a new Auto Pay vendor.   

408-01 Procurement Cards

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 9/19/2014

 

The Oregon University System contracts with a commercial third party vendor to provide the Purchasing card (PCard), the Corporate (Travel and Entertainment) card (corporate Card), and the Student/Team Group Travel card programs.

The PCard is a quick and convenient way for units to obtain many of the items needed for day-to-day operations.  However, their usage requires management and oversight.

PCards may be used only to purchase goods and some services for the Institution. Such purchases must comply with OSU policies governing purchasing and credit card usage. There is a $4,999 dollar limit per transaction. Purchases should not be fragmented to avoid threshold limits. Note: PaCS must be contacted for approval and signature(s), if a credit application or other contract type document is requested.

As stated in OUS Fiscal Policy Manual, Section 70.100 Purchasing-Procurement Card, the PCard is designed to promote purchasing efficiency, flexibility, and convenience.
The following are typical uses for the OSU PCard:

  • Office supplies
  • Software
  • Teaching and research supplies
  • Materials for minor repairs
  • Conference or Seminar Registrations
  • Prepayment of Faculty or Staff Lodging (room and tax only)
  • Subscriptions to newspapers, journals and periodicals
  • Furniture
  • Reference materials such as books, particularly those purchased from another country due to exchange considerations
  • Laboratory supplies
  • Housekeeping and maintenance supplies
  • Computer supplies
  • Minor equipment and appliances
  • Publications and reprints

PCard transactions should be redistributed to the appropriate account codes monthly via the Pcard Module.

All Budget Authorities, Card Custodians, Banner Account Managers, Banner Business Managers, Program Administrators, and Card Users are required to read the OUS Purchasing-Procurement Card Policy 70.100 and pass the online Procurement Card Policy Knowledge Test. Users are defined as OSU employees (faculty and classified staff employed at least 0.5 FTE) or Graduate assistants appointed at .49 FTE.

As a rule, travel and entertainment expenses are not allowable on PCards. Prepayment for faculty and staff lodging (room and tax only) is allowed as an exception. The business traveler must use their own credit card or cash for incidentals some of which might be appropriate for reimbursement. For lodging associated with conference or seminar registrations, it is preferred that the payment be to the same vendor as the conference registration in a single transaction. Conference lodging is an allowable expense on the PCard when the following three criteria are met:

  • It is for conference lodging room and tax only.  (It needs to be redistributed to the appropriate 39xxx Account Code and you will receive a Restricted Use message from Banner)
  • The conference information is included in the commodity description or in FOATEXT on the “Z” Invoice document –(which must be added when you receive the Restricted Use message)
  • The conference registration fee and lodging fee matches the posted rates advertised by the conference.

Immediate Revocation of the PCard will result if:

  1. Unauthorized users were allowed access to the PCard
  2. Airfare purchases appear on any statement
  3. Travel related expenses such as vehicle rental, transportation fares, meals, entertainment or hosting groups & guests appear on any statement - OSU Employees have access to an OSU Corporate Card for such purchases.
  4. Alcoholic Beverage(s) charges appear on any statement - special handling of such purchases is required. Contact your Business Center for instructions.
  5. Capital Equipment is purchased with the card - Equipment purchases over $5,000 need to go through a purchase order process.  See PaCS 303: Purchase Orders or your Business Center for more information.

Revocation of the OSU Purchasing Card will result after the third recorded violation of:  

  1. Purchase of prohibited item(s) – a complete list of prohibited uses is available on the Business Affairs website.
  2. Failure to distribute monthly charges timely
  3. Failure to provide monthly statement to Business Center
  4. Failure to provide signature of Budget Authority on monthly statement
  5. Failure to provide current Purchasing Card User Agreement

Important Note: The use of PCards for personal charges can result in sanctions, up to and including termination. This policy also does not govern fraudulent or other intentionally improper uses of the P-card.

Additional information on the PCard along with restricted uses, training and documentation can be found at on the Business Affairs website.

A misused PCard or Student Group/Team Travel Card may be cancelled at the bank.  Unit management in consultation with Human Resources, if appropriate, is responsible for taking disciplinary action consistent with applicable personnel policies.

Disputed charges must be resolved with the merchant or bank as appropriate by the Card Custodian within 60 days. Any refund obtained from a vendor will be credited to the department via the PCard.

If a PCard or Student Group/Team Travel card is lost or stolen, the person who had custody of the card at the time of the loss is responsible for reporting the loss immediately to the Bank, the Card Custodian, the Department Budget Authority, and the Program Administrator.

Corporate Cards

Corporate Cards are issued to OSU eligible employees (faculty and classified staff employed at .50 FTE or more) to pay for reimbursable travel expenses incurred while on official university business, including lodging, meals, car rentals, and other miscellaneous travel and entertainment related expenses.  Corporate Cards are issued to the individual employee in their name through a credit application process.  Contact Business Affairs to apply for a Corporate Card.

Employees should not allow another person to use the Corporate Travel Card for any purpose.  All cardholders should understand they are financially responsible and solely liable for charges to the account. The full amount of the employee’s statement is due in full within 30 days of billing and payment to the bank is the cardholder’s responsibility. A Corporate Travel Card is valid only while the individual is an employee of Oregon State University.  Upon retirement or termination, the employee must notify Business Affairs so the Corporate Travel Card can be deactivated.

Student Group Travel/Team Travel Cards

Student Group/Team Travel Cards are for student group travel expenses only and are issued separately from PCards.  Forms and requirements are similar to PCards with a specific Merchant Category Classification (MCC) code assigned to the card to accommodate open group travel activities.

1.      The Student Group/Team travel card is not for personal use. The card is for Student Group/Team travel activities only.

2.      When possible, department staff will make advance payment arrangements for student groups.

3.      Costs (such as group lodging) greater than $5,000 require a purchase order or contract approval by the appropriate authority.

4.      Authorized Student Group/Team or team travel card expenses include:

  1. Lodging and lodging tax
  2. Ground transportation
  3. Parking
  4. Group meals (itemized receipts required)
  5. Pre-approved program/activity fees (admission fees for educational activities/attractions/programs such as museums, tourist theme parks, etc.)

5.      Average meal costs cannot exceed the approved OUS per diem rate. Student group meals that exceed OUS meal per diem rate require written justification and approval from the department head or budget authority.  Gratuity of up to 15% may be reimbursed for actual meal expenses when supported with receipts.

6.      Itemized receipts are the responsibility of the team leader. S/He must insist on itemized receipts. No tear-tags or summary credit card receipts will be accepted.  A lost receipt affidavit will not be accepted.

7.      The team leader will be personally responsible to reimburse the University for expenses incurred where the receipts supporting the expenditure are lost or are not itemized.

8.      Only OSU employees (faculty and classified staff employed at least 0.5 FTE) or Graduate assistants appointed at .49 FTE may check out Student Group/Team Travel Cards.

9.      No alcohol charges are allowed. On occasion, an event, usually for members of the public or a targeted audience not specifically for OSU students, includes alcohol expenses as part of the registration fee. Under these circumstances, the group travel card may be used to pay for the event as long as it is pre-authorized by the department. In no way does this authorize the consumption of alcohol as part of a university-led event.

10.  The Student Group/Team Travel Card MUST be returned to the department immediately after the trip is completed.

11.  All receipts are to be submitted to the department within ten (10) business days after the trip is completed.

12.  The event itinerary should match the charges placed on the Student Group/Team Travel Card.

13.  The Budget Authority and/or Card Administrator may refuse or terminate use of the Student Group/Team Travel Card by the team leader.

Procedure

Purchasing Cards

Units are required to complete a Purchasing Card Application/Change Form and Purchasing Card Departmental Agreement form for a new card whenever there is a change in the Budget Authority or Custodian position. A Departmental Agreement form is required at the beginning of each calendar year and must be updated and submitted with a Purchasing Card Application/Change Form when there is any change in Budget Authority, Custodian, Account Manager, or Business Manager.

All users of a Departmental OSU Purchasing Card must sign a Purchasing Card User Agreement. By signing the agreement, users recognize that inappropriate usage will result in the revocation or suspension of the Departmental OSU Purchasing Card. Departments must obtain signature(s) on the Purchasing Card User Agreement for all authorized user(s) and return the form to Business Affairs by the last business day of January for each calendar year and whenever there are changes in card users.  This form will be imaged and archived.

A bank file will be loaded into the Banner Purchasing Card module daily.  Re-allocation of purchasing card transactions will be moved from the Banner Purchasing Card module into the Banner Financial Information System (FIS) daily.

A Visa Purchasing Card Activity Log is required to record the purpose and the amount of each card use plus ensure that the physical card is monitored.

Each Budget Authority must sign the monthly statement; verify the accuracy, completeness, and appropriateness of the transactions; and ensure compliance with this policy. Signed monthly statements will be imaged and archived under the card number in the imaging system.

Business Affairs will review monthly statements and will contact units regarding inappropriate usage. Violations will be logged. The recording of such violations may be clarified or appealed by contacting the OSU PCard Administrator.

Student Group/Team Travel Cards                           

Use the same forms and requirements as shown for Purchasing Cards and complete the Purchasing Card Application Form. Be sure to note on the application that this is for a Student Group/Team Travel Card.  The Purchasing Card Departmental and User Agreements must also be completed and submitted to Business Affairs.  An application will need the approval of the Assistant Vice President and Controller in Business Affairs.

When the card is to be checked out, the Faculty/Team Leader Responsibility Agreement must be signed and kept on file in the department.  In addition, a Student Group/Team Travel Card Activity Log must be used.

Student Group/Team travel expenses will be reconciled by the unit and sent to Business Affairs for review of compliance with travel policies by the third week after statement closing.  Business Affairs will process a journal voucher to reallocate expenses paid to the bank at the end of the billing cycle.

Responsibility and Role Definitions

Department Budget Authority - Dean, Director or Chair is responsible for authorizing the use of the Purchasing or Student Group/Team Travel Card for use by members of their unit, for authorizing the credit limit, assigning the Card Custodian, reviewing all charges placed against the Purchasing or Student Group/Team Travel Card, and signing the monthly bank statement.

Card Custodian - Departmental person who may be assigned the responsibility of safekeeping the Departmental Purchasing or Student Group/Team Travel Card and signing it out to authorized users (unless card is retained by Budget Authority for safekeeping).  Other responsibilities include: validating all charges on activity log and ensuring that proper supporting documentation is obtained; verifying that authorized card users have read and signed the Purchasing Card User Agreement Form and that they have an understanding of policy in regard to allowable use of the Purchasing or Student Group/Team Travel Card; and monitoring card activity for appropriate use or possible fraud; and reporting fraud or questionable transactions immediately to the Budget Authority and the Program Administrator.

Banner Account Manager - The Business Center staff is responsible for reviewing and distributing the transactions in the Banner Purchasing Card Module FAAINVT. The Business Center is responsible for making any necessary corrections to posted transactions by Journal Voucher.  They are responsible for reconciling the monthly transactions to the monthly bank statements and ensuring that bank statements signed by the Department Budget Authority are submitted to Business Centers timely for review and upload into Nolij on a monthly basis.  This person will receive the Banner emails notifying them of transactions to be distributed, Z invoice numbers posted, and restricted account code usage.  This person will also be responsible for the reconciliation of Student Group/Team Travel expense receipts to the monthly statement, and submitting them to  Business Affairs for review and redistribution.

Banner Business Manager (Optional) - The Business Center staff person is the back-up for the Banner Account Manager. They will have the same responsibilities as the Banner Account Manager and will also receive the Banner emails notifying them of transactions to be distributed, Z invoice numbers posted and restricted account code usage.

Program Administrator - The Program Administrator is the liaison between card holders, the bank, OSU Business Affairs, and the OUS Chancellor’s Office.  The position implements and maintains a procurement card program policy, provides training, periodically monitors card use for appropriateness, identifies and minimizes fraudulent activities.

Additional Information

PaCS 306-004 Prohibited Procurement Mechanisms - commercial credit cards are prohibited.

408-02 Car Rentals

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 02/15/2011

Charging car rentals to OSU is allowed only for employees on University business.  The AutoPay vendor program is used to charge rental cars to the university.  Do not charge rental cars to the Department Purchasing Card.  Do not charge car rentals for non-employees; the State of Oregon self-insurance program does not cover non-employees for liability.

When a unit brings someone onto campus as an independent contractor or a visitor of any kind (including interviews) do not agree to pay for the car rental charges on an AutoPay basis. Non-employees coming to OSU need to make payment directly to the car rent agency, no exceptions.

Departmental personnel can make rental arrangements for non-employee, but inform the visitor that they are responsible for payment of the rental charges, including any damage that is incurred while the vehicle is in their possession.  Non-employees will need to present a credit card as a form of payment.

408-03 Travel Agencies – airfare

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

All travel, international and domestic, by OSU employees, people doing business on behalf of OSU, and persons coming to Corvallis for job interviews may be booked through one of the contracted agencies.  The City Pairs program can be used by both employees and non-employees who are traveling on OSU/state business.  However, City Pairs program and OSU contracted travel agencies cannot be used for someone on a Personal Services Contract (PSC) or a vendor.  Each travel agency bills centrally and the charges are then redistributed to OSU units.

Reference: IMD 4.020

408-04 OSU Bookstore

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

Campus unis may purchase items from the OSU Bookstore for unit operations, and charge them to the unit.  The employee must show his/her staff ID and provide an index.  The receipt should be given to the Business Center accounting staff so the billing can be reconciled at the end of the month.

Auxiliary enterprises are also able to use the OSU Bookstore for purchases of items used by the department in daily operations.  However, student books cannot be charged via the auto-pay process.  Books must be paid for directly by the department [for example, when Intercollegiate Athletics purchases books for student athletes on scholarships (grant in aid program)].

409: Determine What Account Code to Use

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 7/23/2013

  • 409 Determine What Account Code to Use 
  • 409-01 Account Code Restrictions by Fund Type
  • 409-02 Frequently Asked Questions (FAQ)
  • 409-03 When to use Training account codes

 

409 Determine What Account Code to Use

To determine which account code to use on a transaction use the following considerations:

  1. Purpose of the transaction
  2. Description of account code in OUS Fiscal Policy Manual
  3. Information contained in OSU Fiscal Manual, especially FIS 410 section
  4. If the cost is for a service or other taxable transaction
  5. New information which is distributed from the OSU Business office via FIS Quest list serve or other source.

Most importantly, consider the purpose of the transaction.  For example, food purchases could be for a nutrition class (instructional supply), workshop (conference refreshments), graduation event (hosting), or catering (for resale).    

Expense Account Code Category rollups

20001   Supplies and Minor Equipment (201xx – 203xx)
21000   Agricultural Related
22000   Communications
22500   Postage and Shipping
23000   Utilities
23300   Waste Disposal
23500   Maintenance and Repairs
24000   Rentals and Leases
24500   Fees and Services (245xx – 249xx)
25000   Medical Services and Supplies (250xx – 251xx)
28000   Assessments (280xx – 284xx)
28501   Employee Related and 1099 reportable
28600   Conferences/Entertainment and non-OUS participant support
28700   Fiscal Management Expense
28800   Debt/Investment Expense
28900   Miscellaneous Services and Supplies
29000   Training
39000   Travel (390xx – 397xx)
39900   Subcontracts
40000   Capital Outlay (includes Equipment)
50000   Student Aid
60000   Items for Resale
70000   Indirect Costs
79000   Internal Reimbursements
80500   Depreciation Expense
88000   Student Loan-related Expense
90000   Transfers

Account codes in the 5xxxx, 6xxxx, 7xxxx, 8xxxx, and 9xxxx series have restrictions and are not to be used with certain funds.    See section 409-01 for details.

Account codes in the 0xxxx series are for revenue and are only used for non-OUS (cash) revenue or internal sales of Designated Operations, Service Centers, and Auxiliary Enterprises.

Although the purpose of the activity determines which account code to use, sometimes the funding source also has an influence.  Having the funding source (general funds, sponsored funds, designated operations funds, or auxiliary funds) is important when processing expenses.

More examples:

  • If the University President rents an airplane to attend a board meeting in eastern Oregon, it should be charged to a travel account code.
  • If an airplane is rented to take aerial photos of the campus, the account code to be used is for equipment rental.
  • Advertising for the purpose of institutional promotion such as new students, Mom’s Weekend, or to advertise events for students is charged to account code 24612.
  • Advertising for the purpose of hiring personnel, bidding on the purchase of goods or services, or sales of goods is charged to account code 24611.
  • Use account code 28606 for conference facilities rental.
  • Account codes 24150 (Land Rental) and 24151 (Building Rental) should only be used when paying an outside vendor.  The only time they can be used on journal vouchers is a redistribution of an original vendor payment with the “I” document referenced.
  • At OSU, use account code 23522 for building maintenance materials, not for equipment maintenance materials.  For equipment maintenance supplies or materials use 23501 or 23523.

Top

409-01 Account Code Restrictions 

Many account codes are reserved for use with specific funds. 

General Ledger Account Codes:

Use only a Fund with these Account codes (No Index, ORG, Program or Activity codes) 

  • Axxxx – Asset accounts (Do not use A0901; this is internal to Banner)
  • Bxxxx – Liability accounts
  • Cxxxx – Control accounts (Do not use; internal to Banner)
  • Dxxxx – Fund balances (Do not use; internal to Banner)
  • E0xxx – Fund additions (Contact Business Affairs before using)
  • F0xxx – Fund deductions (Contact Business Affairs before using)

Operating Ledger Account Codes:

  • 0xxxx – Revenue Account Codes
       011xx-019xx Tuition and Student Fees - General fund only.
       02xxx Appropriations - 0011xx, 030xxx, 034xxx funds only.
       03xxx Gifts, Grants, Contracts - Restricted funds only (fund type 3x).
       07xxx Medical Services - only on Student Health funds.
       09xxx Internal Sales income - only on 05xxxx, 09xxxx,1xxxxx funds.
                           Do not use with Cash deposits.
  • 1xxxx – Payroll related expenses
       101xx -106xx salary - not allowed on 9xxxxx agency funds.
       109xx OPE – not allowed on 9xxxxx agency funds.
       1095x Graduate Tuition Remissions – not allowed on 9xxxxx agency funds.
  • 2xxxx – Supplies & services
       20190 testing group incentive – usually only on grants.
       23522 maintenance materials – use for building maintenance only.
       2490x designated operations support – general & gift funds only.
       28629 and 2863x participant support – usually only on grant funds; includes payments to/for Post Docs.
  • 3xxxx – Subcontracts
       399xx subcontracts – only allowed on grants.
  • 4xxxx – Capital Expenditures
       4010x equipment – not allowed to remain on 1xxxxx Auxiliaries or 09xxxx Service Centers funds at year end.
       Cost must be capitalized to A8xxx account codes.
  • 5xxxx – Student Aid
       51xxx, 52xxx scholarships – not allowed on E&G funds or grants.  Gift funds only, e.g. OSUF FSxxxx funds.
       53xxx Grants-in-aid – YIA and FSxxxx Athletic indexes only.
       55xxx participant support and 59xxx other student aid – not allowed on E&G funds. Cost only allowed on grants and gift funds.     Participant must be a registered OUS student.  286xx codes are used for Post Docs, visiting faculty stipends and non-OUS students.
  • 6xxxx – Merchandise for Resale
       Only allowed on Auxiliary enterprise and Service Center funds.
  • 7xxxx – Indirect costs
       70003 Designated Ops Administrative costs.
       70005 Facilities and Administrative (indirect) cost.
       Do not use. This is internally generated by Banner.
  • 8xxxx – Student Loans
       Do not use.  For Business Affairs only
  • 9xxxx - Transfers
       Generally, must be between the same Fund Type. 
       Contact Business Affairs before use.
       91501 & 92501 Cost share transfers.  These are internally generated by Banner.   Do not use.

A matrix depicting specific account code restrictions can be found at FIS-Ex003-13.

Top

409-02 Frequently Asked Questions (FAQ's)

See the FAQ's link on the Business Affairs website for additional information

A Powerpoint, Demystifying Account Codes is available for your review.

Top

409-03 Determining whether an Activity is Program or Training Related

There are a series of account codes that identify training costs - 29xxx Training series.

Use 29040 Training Registration account code (instead of 28601 Conference Registration) when the conference, workshop, or class enhances the ability of the person attending in the performance of their duties; or academic course credit (including CPE credits) is given.

Examples:

  • Computer software applications training
  • Supervisory or other human resource training
  • Organizational skills
  • Writing skills
  • Grant Fundamentals workshop
  • WACUBO management skills workshops

Reference:

Related FAQs

410: Expenditure Types

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/27/2012

Related FAQs

410-01 Alcoholic Beverages

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 08/15/2013

Institutional funds cannot be expended for alcoholic beverages. 

When the full cost of alcoholic beverages is recovered through charges to the participants or sponsoring group, alcoholic beverages may be served at banquets or other special group activities conducted as part of a workshop or conference. Income and costs are to be accounted for in Designated Operating Funds (05xxxx), Auxiliary Enterprise Funds (1xxxxx), or Agency Funds (9xxxxx) only. 

If alcoholic beverages are purchased in the course of entertainment or recruitment activities, the cost must be separated from the meal charges that are to be paid for by OSU.  The separate bill for the alcoholic beverages should be sent to the OSU Foundation for payment.

410-02 Cell Phone Charges

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/18/2010

Monthly base charges for cell phones are a non-reimbursable expense.  Reimbursement for calling to another cell phone with the charge of a long distance call to the caller is not allowed unless the staff member is able to establish that there was no alternative form of communication available.

Any expenses for personal reimbursement must be identified as only business-related.

410-03 Donations, Contributions, and Sponsorships

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 8/15/2013

 

The terms “donation,” “contribution,” and “sponsorship” can each have different meanings depending on their usage.

Institutional funds cannot be used for donations and contributions wherein the essence of the transaction is charity.  These include donations to the OSU Scholarship Fund.

In addition, institutional funds cannot be used to provide sponsorships wherein the essence of the transaction is to provide support for an event or operations of an external entity.  In some cases, a transaction that is called a sponsorship includes goods, services, or access that represents an exchange of value and the primary benefit helps fulfill the University’s mission and purpose.  In those cases, the amount of the transaction that is reasonably representative of the value of the exchange may be made from institutional funds. The portion of the sponsorship that is over-and-above the value of the exchange cannot be made from institutional funds. In these cases, recognition and the display of the university’s logo by the recipient is NOT sufficient to be deemed an exchange and would not justify an expenditure from institutional funds.

When transactions are confusing and/or ambiguous, contact your Business Center and/or Business Affairs prior to the event to help plan the most appropriate way to fund the transaction.

410-04 Flower Purchases

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 7/15/2014

Only some flower purchases are considered acceptable expenses with OSU Funds.  Flowers may be purchased to:

  • Use in classes such as botany or biology
  • Use at commencements (University or college-level)
  • Present as a prize for competition; however, account code 2016x Awards should be used for the purchase
  • Use by OSU Catering for event banquets or receptions
  • Use in a Student Activities sponsored function, such as a drama production (cost is charged to a student activity fund). 
  • Use for landscaping beautification projects on University property by an authorized central or auxiliary shop  

Any other purchase of flowers for other occasions should be submitted to OSU Foundation (OSUF) for payment.

410-05 Hosting Groups and Official Guests

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 8/15/2013

This policy only includes hosting of non-employees. See FIS 410-07 Refreshments or Meals at Unit Functions for employee-only functions.  See FIS 410-29 Meals on One Day Trip for employee and student group meals when not in over-night travel status.

HOSTING OFFICIAL GUESTS

The University or an employee, in the normal conduct of a program/activity, may serve as host for official guests of the institution by paying for their meals, refreshments, transportation or other expenses with university funds.  An official guest is a person who has been invited to an OSU facility or function for a specific purpose that benefits the university’s mission.  Official guests include, but are not limited to, candidates to fill positions [with possible accompanying family member(s)], prospective students, visiting scientists/ scholars/artists, dignitaries, guest/seminar speakers, advisory board members, prospective student athletes within appropriate athletic association guidelines, and other guests whose visit provides a clear benefit to the institution.  A clear benefit to OSU must be documented when requesting payment of invited guest expenses and approval by appropriate program personnel or budget authority should be received prior to extending an invitation.

If a meal of an invited guest is not hosted, the guest can be reimbursed as a non-employee under the same travel policy as employees of the University. Employee family member(s) meals are not normally reimbursable; however, sometimes a job candidate or official guest is accompanied by a family member(s). Only in these cases is an employee family member(s) meal an allowable cost. Employee requests for reimbursement of accompanying family member expenses should be evaluated for their reasonableness and necessity prior to being approved.

HOSTING GROUPS

When meals or refreshments are arranged in advance for an entire group of persons, these are hosted groups.  Examples of university activities involving hosted groups are conferences, departmental retreats, commencement events, community or public relations events, and student activities.  Refreshments may also be provided at a focus group working session or when hosting an appreciation event for students or volunteers in recognition of specific accomplishment.  See FIS 410-08 Employee Recognition policy, FIS 410-09 Graduation Event Expenses and FIS 410-21 for Conference Expenses for further information.

Requesting payment:

  • Employee reimbursements – complete a Personal Reimbursement (form) with required attachments and submit to the appropriate Business Center.
  • Vendor invoice payment (caterer or restaurant) - submit to the appropriate Business Center with required attachments

Documentation:

1. 5 W’s (Who, What, When, Where, Why) -

  1. Who:    Names of the individuals hosted and the individuals doing the hosting. Also, describe the title/relationship to the University for each attendee to help understand the business purpose.
  2. What:   What was the nature of the hosted event? Was it lunch, dinner, breakfast, entertainment, or something else?
  3. When: The dates and times of hosted events.
  4. Where: Location or locations that the hosting took place.
  5. Why:    Purpose and reason for hosting. Must describe what the benefit gained to OSU was from conducting the hosting.

Note: Names are not required when hosting large informal group gatherings; however, the announcement or agenda of the group gathering indicating the university purpose is to be attached to the reimbursement or invoice payment request.

2. Receipts - meals, gratuities, alcoholic beverages and any charges for room use are to be separately itemized. A "tear tag" showing only the total charge is inadequate for reimbursement. The employee should insist on an original itemized receipt. Credit card charge slips provide proof of payment, but may not provide necessary itemization. In the case where a receipt has been lost, contact the appropriate Business Center.

3. Average Amount - the calculated average cost per person for refreshments or meals must be included on the first line of TEXT of the Banner invoice or journal voucher. The average is determined by dividing the total cost (meal/refreshments including tip and delivery charge) by the number of attendees.

Allowable costs:

1. Meal and refreshment costs should be reasonable for the occasion. Approved OUS travel per diem rates will be used to check for the reasonableness standard. The 15% allowable gratuity is included in the per diem rate. Meal expenses significantly exceeding the OUS per-diem rates require documentation explaining the reason for the excess and the approval of the department head. The following is considered a best practice for determining what rates may be appropriate when Business Center personnel identify a departmental pattern of significant departure from per diem rates:

  • Business Center management should consult with the department head, administrative head, or Dean to come to an agreement in determining reasonable meal reimbursement rates based on the unique circumstances of a specific or recurring situation.
  • The agreement should be documented and should include an explanation that supports why per diem rates are not sufficient and higher rates are justified.
  • A copy of the agreement should be submitted to Business Affairs.

2.      Gratuities/tips - reimbursement for a tip of up to 15% of the charge is allowable when hosting groups or guests.  The 15% limit does not apply when the establishment adds a service charge for larger groups in lieu of gratuity. In this case, the amount of the service charge is not within the control of the customer.  Tips or fees for alcoholic beverage service are not reimbursable.  These costs need to be separated and included with alcoholic beverage purchase.

3.      Alcoholic beverages -reimbursement of alcoholic beverages is not allowed on institutional funds.  When an alcoholic beverage is served at banquets or group activities conducted as part of a workshop or conference where the full cost of such beverages is recovered through charges to the participants or sponsoring group, the income and costs must be accounted for in the appropriate fund (only allowed on 1xxxxx Auxiliary or 05xxxx Designated Operating funds).  The institution is responsible for compliance with all laws and Oregon Liquor Control Commission regulations, including obtaining a one-day license for serving beer and wine. Expenses for alcoholic beverages must be separately identified and billed directly to OSUF.

4.      Room use charges - establishments may charge a room use fee when there is a large gathering requiring a separate room.  Process payments using account code 28606 Conference Facilities or 24151 Building Rental as appropriate for the occasion.

Official guests hosted at an employee’s home:
The employee can request reimbursement for food and supplies purchased for the function.  The Personal Reimbursement form must include an itemized sales slip of the items purchased, a list of attendees, and a clear statement of the business purpose.  Alcoholic beverages are not reimbursable from E&G funds. When requesting reimbursement through OSUF, additional documentation/justification must be included to demonstrate the appropriateness of the request.

Account Codes:
Account code 28611 Refreshments and Food – Departmental is for costs associated with business, instructional, or informational departmental meetings where attendees are OUS employees, the business purpose is appropriate, and justification for serving food has been approved.  See FIS 410-07 Refreshments or Meals at Unit Functions for policy.

Account code 28612 Hosting Groups and Guests is for costs of non-alcoholic beverages and food served at a function associated with group gatherings or official guest hosting for the purpose of instruction, information dissemination, or faculty/staff recruiting.  The business purpose stated with the reimbursement request needs to clearly distinguish the function from those activities listed for account code 28613 Public Relations. Note:  University funds should not be used to purchase food served as refreshments during a for-credit class.

Account code 28613 Public Relations is for authorized expenditures made in connection with public relations activities.  These include graduation activities; recognition events for students, volunteers, dignitaries, or donors; recruiting of students; student group meetings; or other functions where there is no instruction or information formally presented.  It is recommended that costs be submitted directly to OSU Foundation whenever possible.  It is not required for these expenses to be recorded at OSU. 

Account code 28603 Conference Meals is for meals that are catered or served as part of an OSU-hosted conference or workshop.  Use account code 28604 Conference Refreshments for food, drinks and supplies for refreshment breaks.   Note: Use of conference expense account codes (28602 - 28606) is limited to organized conferences, workshops, and meetings sponsored by OSU, and when persons from outside OSU are in attendance.  This could be a conference held at OSU-owned facilities or at other locations where a program agenda and information is disseminated.  Generally, these account codes are used on Designated Operating workshop funds (05xxxx) where the participant has paid a registration fee.  Conference account codes are not to be used for departmental retreats.  See FIS 410-21: Conference Expenses for further information.

Account code 20300 Student Meals should be used for athletic training meals where the cost is allowed per appropriate athletic association guidelines and special student group meals while at normal campus locations. When these students are in travel mode the 39xxx account code series should be used. Note: special student group activities are part of a self-support instructional program and the participant is charged a fee to cover the cost.

References:
OUS Fiscal Policy Manual 56.100 Non-travel Meals, Refreshments and Hospitality Expenses

410-06 Memberships and Dues

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/15/2013

Membership fees or dues for governmental and professional organizations must be approved by authorized institution personnel.  Memberships that include the cost of receiving publications/subscriptions as part of the cost of the membership are still coded as memberships.

Consider the following when approving payment of membership fees or dues:

  1. No payment of membership fees or dues may be authorized for organizations that discriminate on the basis of race, religion, sex, national origin, age or handicap.
  2. Library invoices for minor membership fees or dues primarily for the costs of association publications are allowable.
  3. Whenever possible, memberships should be institutional rather than individual and no more than one full institutional membership should be purchased per association.  When the association charges the full rate for an initial membership and lower rates for associate memberships, duplicate memberships may be paid from institution funds.  Institutional memberships should not remain with a staff member after termination.
  4. Professional memberships associated with the job duties of an OUS employee are subject to the supervisor’s approval and budgetary limitations but may be paid from University funds.
  5. Membership in an organization made up of public officials and administrators is generally institution-related and a benefit to the institution.
  6. Membership in an organization engaged in activities closely related to the individual’s employment and made up of interested persons from government, private and commercial fields may be a benefit to the institution because of knowledge gained or publications received.
  7. Institutional membership in the local chamber of commerce is specifically authorized, but payments for memberships in civic organizations such as Rotary, Kiwanis and Lions are usually not allowable.
  8. Personal memberships in social and sports clubs for the purpose of public relations are a taxable perquisite of the member.  Payment can be made using gift funds with account code 28613 Public Relations, and the amount must be reported to Payroll for a tax deduction.  Examples include Arlington Club and Country Club.

 

See OUS Procurement & Contracting Section 70.400 – Purchasing and Accounts Payable

410-07 Refreshments or Meals at Unit Functions

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 1/10/2013

 

Refreshments, meals, or affiliated supplies (ie paper plates, cups, etc) at unit functions can be paid with university funds when the activity meets one of the following criteria:

  1. training or workshop lasting at least two hours
  2. unit staff retreat with written agenda and held away from the normal work location and in a private room
  3. employee working meal with required attendance and business  conducted during the meal period (as documented in meeting agenda); location is not at a restaurant, unless in a private room
  4. employee meal provided at worksite during an overtime period, two or more hours beyond the end of employee’s work shift, when duties prevent the employee from taking a meal break (must be clearly documented)

University funds cannot be used to pay for employee meals or refreshments for regularly scheduled unit meetings.

Use of the employee working meal option by a unit should be infrequent.

The request for payment must:

  • document the purpose of the function, agenda, names of the attendees, and why that time of day requirement (if a meal).
  • include the average per person cost on the first line of TEXT in the Banner document and  may not exceed the current OUS per diem.  The cost includes the price of the meal, delivery and tip.
  • use account code 28611 Refreshments and Food – Departmental to process invoice payments or reimbursements.

NOTE: Meals and refreshment costs cannot be paid with Petty Cash funds nor departmental purchasing card.

For additional information see:
FIS 410-05 Hosting Groups and Official Guests
FIS 410-29 Meals on One Day Trip
OUS policy 56.100 Non-travel Meals, Refreshments and Hospitality Expenses

410-08 Employee Recognition

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 4/15/2013

 

Oregon University System (OUS) and State of Oregon policies must be followed when providing any recognition to eligible OSU Faculty, Staff, or Student employees.  

Employee recognition awards fall within two types: Performance Awards and Service Awards, per OUS Employee Recognition Awards #57.200, Follow the guidelines below for the specific type of award.

1. Performance awards recognize extraordinary employee and/or team achievements. These may be given to faculty, academic/administrative unclassified, classified, or student employees.

Payment of these awards is not limited to a specific dollar amount. However, ONLY $50 in a calendar year, per individual, may be from Education and General (E&G) (0xxxxx) funds, State-Wide Public Service (SWPS) 03xxxx, or Designated Operations 05xxxx funds.  Note: use of state-wide public service (SWPS) funds is limited to indexes with ‘administrative’ program codes and Designated Operation funds can only be utilized when the award is directly related to the specific Designated Operation fund activity.

The total award, or any amount over the $50 limit noted in the paragraph above, may be from M2xxxx gift, FSxxxx gift, FExxxx, 438xxx, or 1xxxxx auxiliary funds. These awards cannot be paid with grant and contract funds, cost share funds, or SWPS project indexes.

Cash awards will be approved by the Office of Human Resources (OHR) or the Business Center HR Manager (HRM), processed through Central Payroll, and taxed as income.  Performance awards cannot be paid through the accounts payable process. Cash equivalents, such as gift cards or certificates, are purchased through the accounts payable payment process but must be reported as taxable income to the recipient through Central Payroll.  See FIS 410-27 Gift Cards or Certificates. Other non-cash awards (cameras, pictures, etc.) with a cost of $400 or less per employee, per calendar year are non-taxable to the employee. Reporting is done through the Financial Accounting & Analysis (FA&A) unit in Business Affairs.

2. Service awards are in honor of length of service or retirement.

Service awards may be provided only from non-institutional funding such as M2xxxx gift, FSxxxx gift, FExxxx, 438xxx, or 1xxxxx auxiliary funds. The payment amount is not limited.

E & G (0xxxxx) funds, SWPS (03xxxx) funds, grant/contract funds, or cost share funds cannot be used to pay service awards.

Cash awards will be approved by OHR or HRM, processed through Central Payroll, and taxed as income.  These awards cannot be paid through the accounts payable process. Cash equivalents, such as gift cards or certificates, are purchased through the accounts payable payment process and must be reported as taxable income to the recipient through Central Payroll.  See FIS 410-27 Gift Cards or Certificates. Reporting is done through FA&A in Business Affairs.

Other non-cash awards (cameras, pictures, etc.) with a cost less than $400 or less per employee per calendar year are non-taxable income to the employee. 

3. Account codes:

Cash awards (processed through Payroll)

  • 10207 Unclassified/Academic employees
  • 10417 Classified employees
  • 10507 Student employees

Non-cash awards (processed through accounts payable)–

  • 20168 Awards (all employees)

Note: Cash equivalent and non-cash awards handled through accounts payable must be coded appropriately, include the employee’s first name, last name, and the OSU ID number. 

4. Retirement/service reception expenses are not an allowable use of institutional funds per the State of Oregon and OUS.  Departments wishing to honor employees for outstanding achievements, length-of-service, and retirement must use external funding sources for this purpose. This may be a direct payment by the OSU Foundation or individual donations (See FIS 102-09 Attendee – Paid Funds for Recognition Event).  With the exception of specific agency funds, costs for these activities must not be entered on the OSU Financial Information System (FIS)/Banner.  FSxxxx funds cannot be used for this purpose. 

5. OSU Foundation (OSUF) will process, as a direct payment or reimbursement, non-cash awards with a value/cost of less than $400.  Submission is required within 45 days of the date the expense is incurred.  To ensure accurate taxreporting, all non-cash awards with a value/cost of $400 or greater and all gift cards or certificates must be processed through OSU.  See the OSUF website for further information.

Reference

IRS Publications 15-B, 535

410-09 Graduation Event Expenses

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 5/09/2013

Departmental graduation event expenses cannot be paid from E&G funds and are most appropriately paid directly by the OSU Foundation (OSUF). Send invoices to the Foundation for payment without entering into the OSU Banner system.

If catering is provided by OSU Catering, these costs can be charged to FSxxxx indexes and reimbursement requested from the OSU Foundation. The appropriate account code is 28613 – Public Relations.

Cap and gown rental is an appropriate charge to the general fund, if the faculty or staff member is required to attend the graduation ceremony as part of his/her official duties. The appropriate account code is 28613. Note: Purchase of either a cap or gown would be considered an unallowable expense on any institutional funding source since these items are personal in nature.

410-10 Royalties

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

 

Oregon State University has one of the most liberal royalty distribution policies in the nation.  Following the recouping of patent expenses, royalty revenue is shared based on the following schedule:

ROYALTIES

OSU

INVENTOR

DEPT

1st $50,000

30%

40%

30%

2nd $50,000

32.5%

35%

32.5%

$100,000 +

35%

30%

35%

410-11 Fellowships, Scholarships, and Student Payments

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 5/09/2013

 

OUS Students and post-doctoral fellows can receive financial support in several ways. The type of support is determined by (1) employment relationship at OSU and (2) funding source restrictions.

Fellowships

Fellowships awarded to students and post-doctoral faculty are typically paid as stipend payments (not salary via payroll) and are awarded either to the institution or to an individual student or post-doc by a sponsoring agency. Most fellowship stipend payments are processed by the Office of Post Award Administration (OPAA). Fellowship stipends are considered a financial resource by the OSU Office of Financial Aid and Scholarships, and thus may impact the student’s financial aid.

These stipends are paid to students engaged in training or a sponsored program and the student/fellow is expected to participate in the training program or research project. This payment is not a salary. It is made primarily to defray general living expenses. Individuals paid on stipends are not required to complete time/effort documentation (unless required by a sponsoring agency) and do not have an employer-employee relationship with the university. Since no employer-employee relationship exists, fellowship recipients do not qualify for benefits associated with graduate appointments. Recipients of sponsored awards; however, may receive benefits as specified in the award terms. Individuals paid on stipends do not receive liability insurance or workmen’s compensation coverage provided by the University.

Students on fellowship awards are required to maintain minimum enrollment levels (twelve undergraduate or nine graduate credit hours during the academic year and one undergraduate or three graduate credit hours during the summer) to receive their stipends. These enrollment requirements apply not only to current OUS students but may also apply to students from non-OUS institutions who come to OSU to participate in training opportunities (read exception criteria listed below). Delayed enrollment may result in a stipend being issued later than the pre-determined schedule. Fellowships awarded to visiting faculty, such as post-doctoral research trainees or assistants, do not require enrollment as a criteria for receiving stipend payments. For further information on fellowship awards on sponsored funds, see the fellowships page of the Office of Post Award Administration’s website.

 Exceptions to the enrollment requirement may be made in limited cases in which the requirement may cause an undue financial burden to the student or in which the student’s physical location makes it difficult to undertake course work. Any exceptions that are granted will be limited to the following:

  • Students from non-OUS institutions (thus not degree-seeking students at OSU) who are on campus during the summer to participate in research or training programs
  • Students whose research or training program requires them to be in distant and/or remote locations, thereby making class attendance difficult or impossible and meaning they are not on campus using university resources
  • Students whose financial support from the fellowship or employment would be significantly offset by the cost of attendance for the required enrollment (including tuition, mandatory fees, and any additional costs related to admission or to specific programs or distance education)

Any exceptions to this policy must be approved by the Director of Financial Aid before student support payments will be disbursed.

Post-Doctoral support awards that provide for an institutional educational allowance and allow for an administration fee for the management of the award will be assessed a $300 fixed fee at the beginning of each year.  This fee will be applied to the administrative costs for the Office of Business Affairs for managing the Post-Doctoral program. The Office of Post Award Administration will charge the administrative fee at the beginning of each award year.

Per Oregon Revised Statute 351.070 there are only a few instances in which student support (including stipends, tuition, and other educational expenses) can be paid from education and general (E&G) funds.  (This ORS restriction does not apply to payroll positions which are allowable on E&G funds.  See payroll section below for further information).  Only specific projects/programs, with prior approval from the president or provost’s office, allow for stipends to be paid from E&G funds.  Currently at OSU, only the Water/Watersheds Initiative project and URISC programs have been designated as approved exceptions and qualify to use E&G funds for student support.  Any exceptions to this must be approved by the Assistant Vice President and Controller, Office of Business Affairs.

Gift funds can be used to fund student fellowship support without approval by the Assistant Vice President and Controller in Business Affairs; however, there must be a documented fair and equitable selection process which explains the specific criteria used to choose the recipients of these funds.  This selection criterion must be forwarded to Financial Aid to document the basis of the support. 

Scholarships

Student support may also come in the form of scholarships, which are typically based on merit or need and are awarded to offset educational costs.  Such awards do not require any specific services to be performed by the student but, like student fellowships, generally do require minimum enrollment levels.  There is no employee-employer relationship.  Scholarship funds are posted as a credit directly on the student’s university account to cover tuition and other expenses.  Scholarships are offered through a variety of sources and have varied eligibility criteria.  OSU scholarships are available from the Office of Financial Aid and Scholarships, through the application for admission through the graduate school, and from academic departments.   

Both OSU and OSUF receive donations and gifts specifically designated for student scholarships.  Payment of scholarships with these funds is recorded as an expenditure of the university in the 5xxxx account series on M2xxxx or FSxxxx funds, at the same time that the student’s account is credited for the scholarship award.  (See FIS 302-03: Posting of Financial Aid).  This includes athletic grants-in-aid scholarships.  OSU scholarships are available from the Office of Financial Aid and Scholarships, through the application for admission, from the Graduate School, and from academic departments.  Most University awards are based on academic merit and financial need.

For more information regarding scholarship administration at OSU, please see the OSU Office of Financial Aid and Scholarship website.

Graduate Assistantships (Payroll)

Students can receive financial support from the University as an OSU employee.  Graduate students may be placed in academic appointment positions.  These Graduate Teaching Assistantship (GTA) or Graduate Research Assistantship (GRA) appointments range from .10 FTE to .49 FTE.  The compensation for the work completed is in the form of salary and benefits, as well as, tuition remission.  Salary is paid through payroll and tuition remissions are posted directly to the student’s OSU account.  The tuition remission offsets only the tuition portion of enrollment costs.  Other fees related to enrollment are not remitted and are the responsibility of the student.  (See section 302-01 of the Payroll Policies and Procedures Manual for tuition remission requirements)  If in a qualifying appointment, graduate assistants are represented by the Coalition of Graduate Employees and earn health insurance benefits.  To be eligible for a Graduate Assistantship appointment, students must meet specific eligibility requirements established by the Graduate School and monitored by the Office of Human Resources.  See OSU Graduate Assistantships on the Graduate School website for additional information.

Graduate students on assistantship positions are required to maintain an enrollment of at least 12 credits each term (during the academic year) and to be making satisfactory progress toward an advanced degree.  Per the continuous enrollment policy established by the OSU Graduate School, a minimum enrollment of three (3) credits during the summer is required for all graduate students using any institutional resources during that time.  For more information about this policy, see the OSU Graduate School website.

Graduate students may also work as student employees during summer session and the academic year in addition to their graduate assistantship.  If a graduate assistant on less than .49 FTE takes on extra duties, the total compensation from any location within the Oregon University System shall not exceed the total equivalent of .49 FTE for any term.  The university does provide liability insurance and workmen’s compensation on the students’ behalf.

Student wages (Payroll)

Students may work as hourly employees.  Hours worked must be documented to receive pay and are paid monthly.

Students (graduate and undergraduate) who are employed as hourly wage employees do not receive health insurance benefits or tuition remission.   Student employees can work up to 20 hours per week during the academic year and are required to complete and submit time cards to verify hours worked.  During officially recognized breaks, students may work up to 40 hours per week.  The University does provide liability insurance and workmen’s compensation on the students’ behalf.  See OSU’s Student Employment Manual for further information.

Procedure

FELLOWSHIPS:  When student recipients are selected for institutional fellowships from sponsoring agencies, departments should complete a Fellowship Stipend Checklist and forward it to the Fellowships Coordinator in OPAA.

The checklist should include information on any tuition and fees to be paid on behalf of the fellowship recipient.  The student is assessed tuition and fees as normal.  If the sponsoring award allows for coverage of tuition for student fellows, a payment will be applied to the student account by OPAA.  Such payments are reported to the OSU Office of Financial and Scholarships monthly for consideration in the student’s financial aid.   Should a tuition payment be in excess of institutional charges, resulting in a credit balance on the student’s account, a refund check will be issued according to the standard processing of student accounts.  Some training grants and external fellowships provide a cost of education allowance in addition to a competitive stipend.  When the cost of education allowances fall short of meeting the tuition needs of fellows or trainees, the Graduate School may provide tuition support to cover the shortfall in instructional fees.  For complete details, see http://oregonstate.edu/dept/grad_school/faculty/traininggrant.html.

In some cases, fellowships may contain support beyond a stipend and tuition/fee support.  In these cases, items such as research supplies, research-related travel, and books is allowable when budgeted on a sponsored award.  These are typically charged to the award as reimbursements to the student(s).  Department personnel can process these in Banner as an invoice and use a personal reimbursement request for backup and signatures (see GCG 208-02 Reimbursement for Participants for further information).

STUDENT AWARDS AND SCHOLARSHIPS:  Any student award not paid from an outside sponsor, including those paid through the OSU Foundation, should be processed for payment via the Financial Aid Office system.  These scholarships are posted to the student’s OSU billing account, per university policy. Scholarships for full-time enrolled students are disbursed based on donor authorization or, if not specified, on a pro-rata basis for the academic year. It is important to reconcile scholarship funds with the Financial Aid Office and OSUF.

Additional Items to Consider

  • When paying stipends to non-resident alien participants, be aware that these payments may be subject to tax withholdings by the IRS.  All stipends paid to non-resident aliens should be processed by OPAA for determination of tax withholding requirements.  When applicable, OPAA will make the withholdings and forward the necessary information to OUS for payment to the federal government.  Non-resident alien employees may also be subject to tax withholdings, as determined by payroll.

    When paying international fellows, check with the Office of International Student and Faculty Services (ISFS) to determine if the visa category that the fellow holds requires him/her to maintain an employee-employer relationship (i.e., H-1B visa category).
  • Similarly, support for educational expenses (including tuition and fees) that exceeds the student’s actual cost of attendance may be subject to tax withholdings for students who are non-resident aliens, per IRS regulations.  In cases in which tax withholdings are required, all forms of compensation and other educational support payments in excess of a student’s cost of education will be reported to the IRS on form 1042-S.
  • When determining how to pay a student participant or trainee (i.e., stipend vs. hourly pay), one of the determining factors should be the student’s role in the project and what requirement he/she is expected to meet in reporting time and/or progress.  Key control factors include who determines what is worked on and how the work is done.  If OSU controls that, the person is an employee and should be paid through payroll.  If the individual has this control, they likely are not an employee.  The impact of the pay method on students’ financial aid, is not appropriate criteria for determining which method to use.
  • If a visiting scholar or researcher is to be paid while at OSU assisting with a research project, be sure to clearly specify the intent of the compensation.  If the intent is to only offset his/her travel costs, paying this as a reimbursement or per diem may be most appropriate.  This may or may not impact withholding requirements.  The tax treaty with that specific country, if applicable, is the determining factor in whether or not tax withholdings are required.  If, however, the visitor is to also be compensated for personal services, paying them on a stipend basis or on payroll will be necessary. It is important to remember that international visitors who are non-resident aliens may need to have taxes withheld from this compensation and will need to have the necessary VISA documentation (see International Programs website for additional information about applying for a VISA and for VISA types.  Refer to IRS publications 901 and 515 for further information about tax withholdings and tax treaties for non-resident aliens.
  • Individuals (including employees) who host English Language Institute participants in the Homestay Program may be compensated.  These payments are initiated by International Programs.  This is an allowable cost as these are paid with designated operations funds.
  • Any student payments paid from university funding sources as support for a sponsored award need to be paid from a designated cost share index set up by the Office of Post Award Administration.
  • Per FIS policy 410-32 Participant Support Costs, participants may include students, visiting scholars, scientists, workshop attendees, or teachers (K-12). OUS employees cannot be paid as participants.
  • When paying support for participants (both non-OUS and OUS), the flowchart in FIS policy 410-32 may be a helpful resource for determining the correct account code, tax implications, and receipt/documentation requirements for various circumstances. 

410-12 Student Travel Recruitment Costs

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 02/10/2011

 

Account code 28613 should be used for this expense.  These are public relations costs, not non-employee travel.  “Student” in this instance refers to any person who will be registered to take classes towards a degree, and therefore, includes those persons being considered for graduate appointments as well as undergraduates.

410-13 Student Award Payments

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

The OSU Office of Financial Aid and Scholarships administers payment of university student awards.  Payment is made through the student’s revolving account according to University procedures.  Funding for the awards may come from OSU Foundation or University funds.   These expenses need to be reported to the Office of Financial Aid and Scholarships for coordination with other possible sources of financial aid.  See the Business Affairs web page for information on procedures and forms.  See also FIS 507-02: Awards or Gifts to Students.

410-14 Subscriptions

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

Multi-year renewals are allowable when there are substantial savings, except on grant funds with termination dates prior to the subscription expiration.  Do not renew more than 90 days in advance at fiscal year-end for annual subscription renewals so that the renewal charge will be expensed in the appropriate fiscal year.

410-15 Vacant

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 2/19/2013

 

410-16 Thesis Copying and Binding

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

Graduate students are required to submit two copies of their thesis to the Graduate School for submission to the Valley Library for binding and archiving and (for doctoral dissertations) for transmittal to Bell and Howell University Microfilm, Inc. 

Graduate students may wish to make additional copies of their thesis for their own use, and the department or major professor may require a copy.  All copies of the document are the financial responsibility of the student, unless it is standard written policy that the department retains copies.  In that case, binding of up to 3 copies is allowed with general funds.  This cost is not allowed on research grants unless the thesis serves as the final technical report, and the student releases the thesis for this purpose. 

410-17 Thesis Microfilming

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

Microfilming Agreement (doctoral students only): All major U.S. colleges and universities have entered into an agreement with Bell and Howell Information and Learning for archiving doctoral dissertations.  Under this agreement, all doctoral dissertations at Oregon State University must be archived. Abstracts may not be more than 350 words or 35 lines of type, according to the specifications of the archiving agreement, which is obtainable at the Graduate School Office.  The student must pay for archiving at the Office of Business Affairs.  The completed archiving agreement and two copies of the receipt confirming payment to the Graduate School must be submitted within 6 weeks after the student’s final oral exam.  For more information, contact the Graduate School.  The students are charged for the service and the Office of Post Award Administration pays the bill from the outside vendor and reconciles against the student charges.  This cost cannot be charged to University funds.  It is the responsibility of the student.  Exception: Students who have fellowship grants in their name may pay this fee from their research supply allowance.

410-18 Apprenticeship Program for Science and Engineering

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

Invoices are received from the Oregon Joint Graduate School (OJGSC) in the form of inter-institutional journal vouchers.  The costs are charged to the 55110 expense code.

410-19 Other Apprenticeship Costs

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

Other apprenticeship costs for OUS students is charged to account code 55110.  Costs for Non-OUS students (high school) are charged to account code 28631.  

410-20 Payment of Fines

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/20/2012

Departments in the University sometimes receive fines for such things as safety violations.  These are paid on a regular invoice using account code 28910.  According to OUS Fiscal Policy Manual Section 02.11L: Account Codes -- Miscellaneous Services & Supplies (289XX), these are “costs resulting from violations of – or failure to comply with – federal, state, local or foreign laws and regulations

Parking fines and book fines may not be paid from institutional funds.  This includes parking fines assigned to state vehicles.  Parking fines are the responsibility of the person renting the vehicle.  If the University owns the vehicle and the person does not pay the fine, OSU could pay the fine (to an outside entity only) and charge the individual.  The payment of the fine would be put on FIS as an A3140 receivable account code, with Transportation Service’s 9xxxxx fund.  Personal fines are not an expense of the University.

410-21 Conference Expenses

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

Use of conference expense account codes (28602-28606) is limited to organized conferences, workshops, and meetings sponsored by OSU and there are persons from outside OSU in attendance.  This could be conferences held at OSU-owned facilities or at other locations.  There is a program agenda and information is disseminated.  Generally, these account codes are used on designated workshop funds.  Conference account codes are not to be used for departmental retreats.  Use building rental and/or employee travel for these activities.



410-22 Licenses and Occupational Fees

Fiscal Operations Manual
Section 400: Expenditures
Effective: 07/01/2001
Revised: 09/10/2013

The state, county or city requires licenses, certificates or permits for some occupations. Examples include the plumber’s certificate of competency, journeyman electrician’s license, and apprentice electrician’s permit. Such instruments are issued to individuals to confirm their qualification and authorization to work in their craft.

Unless agreed to as part of the initial hiring process or a requirement that becomes pertinent after an individual is already in the position, OSU employees are personally responsible for obtaining required occupational licenses, certificates or permits. University funds are not used to pay for an employee obtaining the required credentials (including associated preparatory courses or materials) or to reimburse the employee for obtaining them. The Vice President for Finance and Administration must approve any exceptions to this policy.

University funds may be used for renewals of permits, licenses or certifications for current OSU employees, if associated with an individuals’ job scope and/or position description and approved by department head or their supervisor.

In addition, many certificates required for employees in the maintenance trades are not occupational licenses in the same vein as those for electricians and plumbers. These include site licenses for OSU as an electrical contractor, an elevator contractor, restricted energy and HVAC electrical. They are for the work at hand, and do not belong to the employee. Other licenses include:

  1. Certified Arborist Licenses
  2. Limited Maintenance Electrical Licenses
  3. Asbestos Abatement and Supervisor Licenses
  4. Confined space entry / supervisor certification
  5. Back flow protection device testing certification
  6. Pool operator’s certification
  7. Universal certification of refrigeration mechanics
  8. Notary Public license, if the license is critical to the operation of the unit

If the department pays the fees for the licenses or certifications listed above, the license or certification will be in the University’s name, University’s address, and will expire when the employee leaves employment of the University.

410-23 Testing Incentives

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/01/2010

Units who perform testing of products often advertise that they will give anyone who takes the test an incentive, for example $5.00.  The unit will pay out the testing incentives and document how much was given, and to whom.  A Departmental Advance is required to receive the funds to distribute.  The advance will be “cleared” by the appropriate Business Center through the process identified in FIS 407-07 Departmental Advances (Non-Travel).

Account codes to be used –

  • 20190 Testing Group Incentives - Expenditures for items to be given as incentives for volunteers who serve on a test panel or survey group. Includes gift certificates and other non-cash items.
  • 25140 Research Subjects - This code concerns payment to persons who contribute to research projects, but are not required to perform personal services. This includes: (1) those who contribute blood or other human specimens, (2) those who contribute time to be a subject of research projects and (3) the costs of gift certificates.

If you are unsure whether an Institutional Review Board (IRB) application is necessary for your research project, please check with the Office of Research Integrity within the Research Office.

410-24 Use of University Property / Facilities for Personal Use

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

The Oregon Government Standards and Practices Commission and the Assistant Attorney General issued an advisory opinion in July 1998 regarding the use of agency equipment by an employee.  ORS 244.040(1)(a) specifically prohibits all public officials in the State of Oregon from using their official position to obtain financial benefit because of holding the position.  This provision applies equally to elected persona, compensated public employees, and uncompensated persons who volunteer their time to a public entity.

Agency equipment is interpreted to include all publicly owned property or other resources of a government body such as photocopiers, fax machines, and document scanners.

A public agency’s telephones are intended to be used only for official business of the agency.  However, there are occasions when public officials may use their employing agency’s telephones for personal purposes without such usage being at odds with the law.  It is normal practice by both public and private employers to permit employees to use business telephones to talk to family members, make medical appointments, schedule service technicians, confer with children’s schools, and take care of any variety of matters which can only be accomplished during working hours.  Personal long distance calls, even if the employee intends to reimburse the public agency for the cost of such calls, should not be charged to an OSU index.  Employees should use personal calling cards for such calls. If any costs for personal usage are charged to OSU, they must be reimbursed.

The statutory considerations relating to the use of cellular telephones is essentially the same as that which applies to regular telephones.  Public agency’s cellular phones are not for the convenience or personal use of employees.  If public employees desire to have the convenience of a cellular telephone while on duty to make the types of routine personal calls cited in the section relating to telephones above, the employees must acquire and pay for their own personal cellular service.

The statutory considerations for computers are essentially the same as for both telephones and cellular phones cited above.

For further information see the complete Oregon Government Standards and Practices Commission Advisory Opinion No.98A-1003.

410-25 Payments for Services

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

Companies and individuals are hired and paid for their services using one of the following documents:

  • Formal contract generated as a result of an RFP or Invitation to Bid initiated by PaCS
  • Personal/Professional Services Contract (PSC) approved by PaCS
  • Personal Services Invoice (PSI) for all personal or professional services that are $5,000 or less are prepared at the unit level.  A Personal Services Invoice is not to be used for architectural or engineering services.
  • Purchase order prepared by PaCS or at the Unit level.
  • Informal purchase order (PO) for local retail businesses.  See AutoPay Vendor List on Business Affairs website.

Account Codes Used For Payments:

  • Incorporated companies with federal tax ID numbers should be paid using the appropriate account code for the services they have provided (review account codes 245xx through 24616).
  • University-wide, long-term contracts with employment agencies such as St. Vincent dePaul should be paid using account code 24530 – Contract Personnel Services.
  • Bands and music groups giving a public performance should be paid using account code 24505 – Performance Fees.  Account code 24599 should be used when paying an instructional related activity, such as an accompanist for a music class.
  • “Consultants”, seminar speakers, athletic officials, and others doing “Other Professional Services” should be paid on account code 24599 – Other Professional Services.   However, “consultants” does not apply to professional services for architectural or engineering services.  Those contracts are handled separately through Business Services and Procurement & Construction Contracting.
  • Payment for services (245xx-24999 account codes) using a non-incorporated entity should have either a PSC or PSI attached.  Most common services in this area are editing, publishing and web design.

Except for speakers, direct unit billing is not allowed for airfare, lodging, or meals.  The PSC/PSI should include any travel-related expenses, either as part of the hourly/daily rate or separately identified.  When processing a payment for separately identified travel, pay as a lump sum using the appropriate taxable account code.  DO NOT ATTACH RECEIPTS.  These payments are taxable income of the contractor and the contractor must keep their receipts.

Personal Services Invoices (PSI’s) can be processed for payment no earlier than 20 days prior to service, with the check pickup within one week of the services rendered for speakers, referees, and entertainers.  This is for one-time service agreements, where the person or group being employed is at the University location only for that event and is then departing.  This option is not allowable for Personal Services Contracts (PSC’s) under a long-term contract.

To process a payment, the Business Center must have the following:

  • Original vendor invoice with copy of the PSC, or the original PSC
  • Banner “I” document number with the appropriate index, account code, signatures, and unit approvals.

Personal Services Agreements with Foreign Nationals – See Government Publication 901 for a list of countries with whom the US has treaties.  The list of countries can be found on pages 35 through 47.  For persons from non-treaty countries, the university must take a 30% withholding.  For further information regarding the payment of foreign nationals, contact Business Affairs and see reference 1402-17 Payments to Non-Resident Aliens (NRA).

See Procurement and Contract Services website for downloadable contracts and forms.

See PaCS 401: Employee v. Independent Contractor for the Guidelines on Determining if a Worker is an Employee or Independent Contractor.

See the General University Policy  for Employees Doing Business with Oregon State University.

410-27 Gift Cards or Certificates

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/6/2013

Throughout this policy the term “gift cards” shall include gift certificates unless otherwise specifically stated.

All gift cards purchased by Oregon State University must be preauthorized and exhibit appropriate use of University funds.  A check will be issued directly to the vendor from whom the gift card will be purchased using the accounts payable process.  Personal reimbursements to OSU employees and payments to auto pay vendors, (including the OSU Bookstore) for gift card purchases are not permitted. 

OSU Units must submit a Vendor Payment Request form to purchase gift cards or certificates.   Send the form to the appropriate Business Center to review and process a check payable to the vendor for hand delivery to the department.  The department can then take the check to the vendor to purchase the gift card(s) or certificate(s).

Each purchase of gift cards should not exceed the number of cards expected to be distributed at a specific event. Gift cards should be maintained in dual custody, with one individual assigned the responsibility for dispensing and tracking the gift cards purchased. If there are any undistributed cards, they should be returned to the vendor for credit when permitted. If the vendor will not refund the value of the gift cards, they should be secured and held in dual custody. A description of their planned future use including anticipated disbursement dates must be approved by the department head and included as part of the required supporting documentation.

Supporting documentation should include receipts or a log that record the following information:

  • A listing of recipients
  • Employee ID numbers, if applicable
  • Amount distributed to each recipient
  • Date(s) of distribution
  • Serial numbers of the gift cards, and
  • Recipient’s signature acknowledging receipt

This information should be included in FOATEXT or returned to the Business Center for inclusion in supporting documentation in Nolij.  Note: in the case of a confidential listing of recipients, the list or log should be maintained in a secure location within the department and a comment should be added to FOATEXT.

The value of the receipts or log and any undistributed gift cards must be reconciled to the authorized amount expended so that all cards are accounted for. 

Gift cards to employees (faculty, staff, or student) are considered a cash equivalent and must be accounted for and sufficiently documented since the value of the gift card is reported as taxable in the Payroll system. Use Account Code 20168 for gift card purchases which will be given to employees.  See FIS 410-08 Employee Recognition for information on approved funding sources and processing requirements for these awards.

FIS 410-23 Testing Incentives will provide additional information for this particular type of expenditure.

Note: OSU Foundation will not process requests for direct payment or reimbursement (personal or direct reimbursements) for gift card purchases or other cash equivalent gifts or awards.  Gift card or certificate expenses paid by the University are reimbursable through the FS Index Reimbursement System using unrestricted funds.

Account codes for Gift Cards or Certificates:
20168 Awards – employees                                         20169 Awards – non-employees
20190 Testing Group Incentives – volunteers    25140 Research Subjects – volunteers

410-28 Greeting Cards

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

Payment of holiday cards is allowed with university funds ONLY if account code 28613, Public Relations is used.  This assumes that holiday cards are sent to donors and alumni.  Do not use the 246xx printing account codes.  The preference is to use "M2" gift indexes or "FS" OSU Foundation indexes.  If a general fund index is used, use an index with development" in the title.

Respect the diversity of the university, and when processing the payment, do not refer to these cards as Christmas cards in the Banner Description.

It is not appropriate to pay for any other greeting cards with university funds.

410-29 Meals on One Day Trip (no overnight stay)

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 07/23/2013

Employee overtime meal allowance  
When an employee travels departing and returning the same day, the IRS considers breakfast and dinner allowances, figured on the basis of hours worked, to be taxable to the employee.  If such breakfast and dinner allowances are paid, use account code 28502 – Overtime Meal Allowance (W-2 Reportable). Payment is made using the current in-state meal per diem rate.

  1. Breakfast allowance can be paid when an employee leaves their official station two or more hours before their regular work shift.
  2. Dinner allowance can be paid when an employee returns to their official station two or more hours after their regular work shift.
    See OUS Fiscal Policy Manual Section 95.100 Travel and Transportation Administration and Expenses

Classified employees may be similarly compensated when required to work at their station two (2) or more hours beyond the end of his/her regular work shift when such additional work causes the employee to miss his/her regular meal.  Current in-state per diem rate for the meal is used for the allowance.

Employee meals when officially representing the University
These meals are away from the work location, but the employee is not in travel status.  The meal can only be reimbursed when all three of the following are met:

  1. The claimant is attending a conference, seminar, convention, board meeting, or committee meeting as a representative of Oregon State University where non-OSU employees are present.
  2. The meeting is not a social or fundraising function.
  3. The menu and cost is arranged by the event organizers and beyond the control of the claimant.  
    These meals are considered an employee working meal and are not taxable to the employee.  Reimbursement is paid as account code 28611 - Refreshments and Food-Departmental.   Proof of payment and a copy of the meeting announcement which shows a clear business purpose and the meal as part of the agenda are required.  Alcoholic beverages cannot be reimbursed.

See FIS 410-07 Meals and Refreshments at Departmental Functions for other information on payment of employee meal or refreshment costs.

Athletic team or student group meals
When athletic teams or special student groups are on day trips and meals are provided, use account code 20300 Student Meals. The actual cost of the meal is reimbursed with receipts, not travel per diem.  Note, per OUS policy 56.100 section .220 Hospitality Allowability, University funds can not pay for meals or refreshments at for-credit classes.

For meals costs when athletic teams or student groups are in-travel status, use 39119 Group Travel-Domestic, or 39646 Foreign Group Travel as appropriate.

For additional information see:
FIS 410-05 Hosting Groups and Official Guests

410-30 Communications: Internet Services and Other Mobile Devices

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 3/15/2013

 

In general, Oregon State University (OSU) shall not provide wireless communication devices or internet services to its employees. However, for OSU faculty and classified employees with at least 0.5 FTE whose supervisors have documented, and whose Dean or Director has reviewed and approved, that they have employment responsibilities which require the use of cellular phone service, “smart phone,” other mobile communication devices, or an internet service not provided through University Information Services, OSU offers the options described below under “Need for Business Use of Communication Device(s) on a Regular Basis."  Graduate assistant employees, student employees, temporary employees, or emeritus/courtesy faculty are not eligible.

Note: Direct charge of communication device costs to grants, contracts or state-wide public service funds is very limited. Per OMB Circular A-21, communication access costs are considered part of the indirect cost and are not an allowable direct cost on grants and contracts; this includes federal and match state-wide funds. Therefore, any charges to research projects (sponsored, AES-funded, or FRL-funded) or other sponsored activities (sponsored or Extension-funded) must be approved in advance. A request for an unlike circumstance, such as remote location (field study), or emergency access must be made to and approved in writing by the Assistant Director of Business Affairs, Office of Post Award Administration (OPAA). The Communication Allowance is not one of the options available as a direct charge.

Need for Business Use of Communications Device(s) on a Regular Basis:

Monthly Communication Allowance.   In cases where the supervisor has determined and documented that an employee’s job duties require they have a communication device, and their Dean or Director has reviewed and agreed with the determination, the preferred option is for the employee to utilize the monthly Communication Allowance. The Communication Allowance is for use of his/her personal cellular or “smart” phone and/or internet service for the estimated percentage of monthly business-related expenses. It is the supervisor’s responsibility to review the request, documentation, and analysis of percent of business use; to obtain the Dean or Director’s approval of such; and then to forward the Communication Allowance Agreement either to the appropriate Business Center or directly (depending upon the department’s agreement with their Business Center) to OSU Central Payroll for implementation. Central Payroll should only be sent the approved & signed agreement – no supporting documentation.

The allowance amount for the summation of all devices and/or services covered can range from $20 to a maximum of $120 per month/per employee. Because of the availability for personal use, 100 percent coverage cannot be requested. The maximum amount allowed is 85% of the employee cost. Costs in a family plan that are not for the employee must not be considered in the request. The Communication Allowance is not an entitlement of any employee, does not increase the employee’s base salary, and is taxable income to the employee.  The Communication Allowance must be renewed each calendar year to continue.

University-provided pager. A unit, at their discretion, may opt to provide another communications device, such as a pager, to an employee , if it is determined that the services provided by a smart phone are not required to make contact with the employee, a smart phone is not cost effective based on need, or the employee does not qualify for the split-liability program.

Need for Short-term Business use of Communication Device(s):

While OSU generally will not provide wireless communication devices to employees, there are rare instances where this may be approved by Business Affairs and Telecommunications. Examples of these situations are: 1) requirement to conduct research projects in remote locations and the expense is pre-approved to be charged to a grant budget, 2) use for short-term off-site projects or travel when the employee does not have, and cannot obtain, their own personal cellular phone, or 3) used for emergency or disaster recovery purposes,

Employee use of OSU-provided devices is limited to official OSU business only. It is the responsibility of the unit to review the necessity for a cellular phone and also to review the charges monthly of any OSU-provided communication device to ensure no personal use has occurred. When there are violations of this restriction, in addition to disciplinary activities that will occur, the employee must reimburse OSU for that use subject to the following conditions:

  1. The reimbursement rate shall be $0.20 per minute for personal use, or the actual cost to the unit, whichever is greater.
  2. The reimbursement shall occur within thirty (30) days after the unit received its communication bill. The reimbursement will be deposited at the OSU Cashiers office using the same account code as the original cost.
  3. The reimbursement must be noted on the communication bill by the individual who receives the reimbursement. The following should be documented:
    • Itemization of calls being reimbursed
    • The amount received
    • Initials of the person receiving the reimbursement
    • The date of the reimbursement.

Internet Services

Employees requiring the internet for business-related purposes away from OSU business premises may apply for a Communication Allowance to cover these costs.  The University will not process direct payments to internet service providers (ISP) for home internet connections. Because of the availability for personal use, 100 percent coverage cannot be requested. The maximum amount allowed is 85% of the ISP invoice. If a special internet connection AT AN OSU LOCATION is required over and above that provided by OSU Information Services, the ISP vendor can be paid by OSU with justification.  Generally, this would be for service connected with transmitting data from remote instruments or internet connections at off-campus research project sites.

NOTE:  OSU Telecommunications is the only organization in the University which can authorize PaCS to extend existing cellular contracts or establish any new contracts with cellular companies or internet service providers (ISP). AES Experiment Stations, county extension offices, and remote OSU locations may require individual contracts to provide adequate business communication coverage.  Telecommunications must review and approve these and PaCS must manage the appropriate procurement method and review and sign any cellular or ISP contracts.  An approval must be on file in the appropriate Business Center to process a unit paid communications invoice.  

Telecommuters

OSU employees who will be telecommuting should review the Telecommuting Agreement.

Reference

Internal Revenue Code (IRC) Title 26, Section 274 (d) Disallowance of certain entertainment, etc., expenses – Substantiation required

Office of Management & Budget (OMB) Circular A-21 D.1 Direct Costs

Office of Management & Budget (OMB) Circular A-21 F.6.b(3) Identification and assignment of F&A costs

Internal Management Directives(IMD) 4.021 

Oregon Revised Statutes (ORS) 244.040(1)(a) and ORS 351.070(3)(a)

410-31 Utilities for Short Term Field Crew Housing

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/02/2008

There are times when housing is rented for students or faculty to enable projects to be conducted away from OSU-owned facilities.  This housing may be a travel trailer, mobile home, cabin, bunkhouse, tent, or other facility.  When utilities are paid separately from the rent, it is important to distinguish these utility costs from those connected with university-owned property.  Use Account Code 23099 “Miscellaneous Utilities” for this purpose.  Costs could include electricity, water/sewer, natural gas, propane, garbage.  Do not use any other 23xxx account codes for this purpose.

Continue to use Account Code 24151 “Building Rental” for the housing rental itself.

410-32 Participant Support Costs

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 1/10/2013

Participant support costs are those costs made to (or on behalf of) an individual who is engaged in training and/or research in a specific field or program. Generally, these costs are funded by grants and/or contracts.  

Participants may include students, visiting scholars, scientists, workshop attendees, or teachers (K-12). OUS employees can not be paid as participants.

The 551XX series of account codes are designated for paying or reimbursing OUS registered students, including research fellows. The 28620 and 2863X account codes are for payment of expenditures related to individuals who are not OUS registered students (including post-docs).

Non-resident alien participants must be identified so their associated costs are recorded correctly for 1042S IRS reporting. All costs must be processed by Office of Post Award Administration (OPAA).

A stipend payment is a predetermined amount allocated to the participant regardless of actual incurred expenses. The stipend amount is usually specified in the sponsored agreement. Stipends are not to be confused with per diem. Stipend payments are posted as follows:

  • 55102    stipend for OUS registered students
  • 28636    stipend for non-OUS participant (1099 reportable)
  • 28632    stipend for non-OUS participant, non-resident alien (1042S reportable)

Participant support payments for OUS and non-OUS registered students are coordinated with OPAA.  Tuition and fee payments, account code 55104, can only be applied to the student’s account by OPAA.

The following non-OUS participant support payments must be documented by receipts:

  • 28630    tuition and registration fees
  • 28633    book allowance
  • 28634    room and board
  • 28635    travel
  • 28631    other (miscellaneous)

Expenses connected with a conference: room rental, meals, refreshments, travel, and/or equipment rental should not be paid using the 2863x account codes. Conference expense account codes (28602-28606) should be used for organized conferences and workshops sponsored by OSU when there are persons from outside OSU in attendance.

Expenses connected with hosting a group of participants: refreshments or meals should not be paid using the 2863x account codes. Account code 28612 Hosting Groups and Guests is appropriate for expenditures of refreshments or meals provided to participants which are not included in a room and board package or are not part of an organized conference/workshop.

When supplies are purchased in connection with participants and the supplies do not remain with the participants, the expense should be coded 20102 General Operating Supplies.

Examples of costs which should not be recorded as 2863x participant support:

Expense

Location

Example of Participant(s)

Account Code

Room rental fee for workshop

OSU

K-12 teachers

28606

Refreshments/meals for workshop or conference (OSU sponsored)

OSU

Visiting scholars or scientists

28604

Refreshments/meals for workshop or conference (non-OSU sponsored)

Community College

Workshop attendees

28612

Refreshments for math/science club

Oregon high or elementary school

K-12 students/teachers

28612

Homestay Stipend to host non-resident alien

Private community home

Community member

28620

Air travel

From international location to Corvallis

Visiting professor

39645

Meals outside of workshop or conference

OSU

Conference or workshop attendees

28612

For assistance in determining the correct account code, please review the flowchart, examples shown above, and the account code definitions within the OUS Fiscal Policy Manual.

 

Participant Support Flowchart or Decision Tree

Decision Tree.

 

410-33: Communications Allowance

Fiscal Operations Manual
Section 400: Expenditures
Effective: 02/01/1982
Revised: 02/4/2014

 

The Communication Allowance option is provided to faculty and classified staff working at least 0.5 FTE who are required to conduct legitimate OSU business using their own personal cellular telephone or other communication device [see FIS 410-30 Communications: Internet Services and Other Mobile Devices]. This allowance is not an entitlement related to the employee’s position, does not increase the employee’s base salary, is a non-taxable benefit to the employee, and does not require substantiation of each individual call or internet usage. Graduate assistant employees, student employees, temporary employees, and emeritus/courtesy faculty are not eligible for this allowance.

The Communication Allowance is paid through Accounts Payable through your Business Center as a  check or direct deposit.  The required OSU business need for the employee’s individual wireless access (cellular phones or internet connections away from OSU premises) must be clearly stated in the employee’s position description.

The Communication Allowance is paid monthly from the time of authorization until December 31st of the current calendar year unless a change in employment status occurs or an early termination request is provided by the department. The allowance is effective upon receipt of a completed, approved Communication Allowance Agreement Form in your Business Center (http://oregonstate.edu/fa/businessaffairs/sites/default/files/faa/CommAl...).  There is no retro-active pay for this allowance. If the agreement is received by the 10th of the month, the allowance will be effective in the month received. If the form is received after the 10th of the month, the allowance will be effective the next calendar month.

The total allowance amount to any one person for all communication devices shall not be less than $20 per month or greater than $120 per month, unless there is special signature approval by the VP Finance & Administration or designee. Amounts are rounded up to the nearest $5. Because of the availability for personal use, 100 percent coverage cannot be requested. The maximum amount allowed is 85% of the employee’s cost. Costs in a family plan that are not directly applicable to the employee should be excluded from the request. A copy of the employee’s service provider invoice must be included when the agreement is reviewed by the supervisor AND retained with the departmental copy of the agreement. For cellular phones, the agreement form must include the employee’s cell phone number.

The agreement, with a copy of the service provider invoice as documentation of cost, must be approved by the Dean or Director as budget authority. Send the approved Communication Allowance Agreement directly to your Business Center. Employees receiving a Communication Allowance may not also be reimbursed for business calls within the United States. An employee cannot receive a Communication Allowance for a cell phone and also have a department provided OSU cell phone.

The Communication Allowance must be paid with departmental funds. These include Education & General, gift, endowment, Agricultural Research Foundation (ARF) gift funds, [excludes FAxxxx research grant funds] or reimbursable by OSU Foundation (OSUF) (FSxxxx, FExxxx, 438xxx) funds.  Employee Communication Allowance cannot be paid directly by OSUF or ARF.

The Communication Allowance is not an allowable payment as a direct cost on a grant or contract, ARF research project, AES research project, FRL research projects, or Extension public service project.  Any request for communications expenses as an “unlike circumstance”, such as remote location (field study) or emergency access, must be made to and approved in writing by the Assistant Director of Business Affairs, Office of Post Award Administration (OPAA).  In these situations, OSU-provided cell phones must be used in lieu of a personal communication device paid through the communication allowance so that substantiation of use is documented for audit purposes.

Procedure

A. Complete a Communication Allowance Agreement including the appropriate approval signature of the employee and supervisor.  Supporting documentation required is a copy of the service provider statement or invoice.  The amount requested cannot be greater than 85% of the cost. The unit will retain a copy with the supporting documentation. 

B. The unit forwards the Communication Allowance Agreement and supporting cost documentation to the Dean or Director of the unit for review and approval as budgetary authority.

C. Send the approved agreement directly to the appropriate Business Center

D. The following non-taxable account code will be used:

  • 22051 Communications Allowance Reimbursement

Note:

  • If an employee goes on sabbatical, the allowance will be terminated.  If there is a need to maintain the Communication Allowance when on sabbatical, the employee will need to re-apply with a new business purpose justification due to the change of duties.
  • When an employee goes on leave, the allowance is also “put on leave” or stopped.
  • Employees on a nine(9) month appointment will have the allowance stopped for the summer.
  • Job duties may require that the allowance amount be changed (increased or decreased) or terminated at any time rather than annually on December 31. Send in a new Communication Allowance form for these changes.

Reference

Office of Management & Budget (OMB) Circular A-21 D.1 Direct Costs

Office of Management & Budget (OMB) Circular A-21 F.6.b(3) Identification and assignment of F&A costs

Internal Management Directives (IMD) 4.021

Oregon Revised Statutes (ORS) 244.040(1)(a) and ORS 351.070(3)(a)

411: Travel

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 07/23/2013

 

The Oregon State University (OSU) Travel Policy and allowable reimbursements are derived from the Oregon University System (OUS) Policy, which states that the universities are to follow applicable state statutes, regulations and administrative rules.

Many of the OUS/OSU travel policies exist to comply with the rules of the Accountable Plan established by the IRS.  The Accountable Plan’s rules are

  1. expenses must have a business connection,
  2. expenses must be adequately accounted for within a reasonable period of time, and
  3. any excess reimbursement or allowance must be returned within a reasonable period of time.

All travelers (including students, official volunteers, and guests) on official university business must comply with OSU travel policies and procedures.  Transactions will be reviewed according to statutory requirements and Generally Accepted Accounting Principles (GAAP).  Individuals must ensure transactions are for authorized purposes and are an appropriate use of funds.  All public employees have a duty to exercise good judgment and common sense in obligating and expending the resources of the University.  Every employee must use the University’s resources wisely. 

Official University travelers are encouraged to book their flights through contracted travel agencies on flights that provide the most economical (coach or economy class) direct travel route that will meet the traveler’s needs. 

A negligent or fraudulent expenditure can result in personal financial losses and/or disciplinary action up to and including dismissal.

Specific contracts or other awards may have different requirements for the submission of receipts relating to domestic or foreign travel.  The Office of Post Award Administration (OPAA) assists units in identifying the contract or award by noting the requirement on the original Award Information Sheet.  Units will be held responsible for receipts that are not submitted with reimbursements or for reimbursements that are done using incorrect methods.  A cost overrun to the unit will be prepared for any travel that is billed to the contractor and subsequently disallowed due to lack of receipts/documentation for the reimbursement.

Pre-approval from OPAA is required when employee international travel expenses will be charged to a grant index.

In most cases international travel expenses will need to be converted to U.S. Dollars (USD).  Include proof of the currency exchange rate.  Proof can be in the form of (1) receipts obtained by the traveler when exchanging currency during travel, or (2) a copy of the claimant’s credit card statement(s) showing the travel expense(s), or (3) a print-out using  fxPense: Expense Report Manager  from the OANDA website with the date shown on the receipt(s).  It is acceptable to average the exchange rate for the entire trip using the “FXHistory” feature or show expenses using the FXConverter  feature on the OANDA site.

 

Individual Units are responsible for educating their personnel and insuring personnel adherence to the OSU Travel Policy which contains the following guidelines:

  1. Select travel options that are the most efficient and economical to the University/State.
  2. Exercise good judgment when incurring expenses and accomplishing the purpose of the travel.  Excess costs, circuitous routes, delays or luxury accommodations that are unnecessary or unjustified in the performance of official duties are not acceptable.  Any additional expenses incurred for personal preference or convenience are the responsibility of the employee.
  3. Verify that all travel arrangements are confirmed prior to departure.
  4. Ensure that the Travel Reimbursement Request form is prepared in a timely manner, and provides appropriate receipts and documentation as required.

Travel authorization must be obtained from the department head or chairperson, dean or director prior to the commencement of travel.  Contact the appropriate Business Center for internal approval procedures.

Expenses related to bringing potential Fellows to campus need to comply with the OSU Travel Policy.  Recording of these expenses is dependent upon their ultimate status with OUS.  See also GCG 205-18: 39XXX-Travel in the Grant, Contract & Gift Accounting Manual.

  • Those persons who will be OUS registered students (stipend paid on a 55xxx account code series on non E&G funds per OPAA approval) are recruited as students.  Expenses related to their campus visit(s) should be charged to account code 28613.
  • Those persons who will not be OUS registered students (stipend paid on 28636) are recruited as faculty.  Expenses for their airfare, ground transportation, lodging, non-hosted meals, etc. should be charged to account code 39117 Non-Empl Travel - Domestic. 
  • Expenses for hosted meals involving the potential Fellow are charged to account code 28612. 

When payment is made to an outside vendor on behalf of the Fellow the expense should appear in Vendor History (FAIVNDH) as those connected to the Fellow.  For instructions refer to FIS 1106-04: Payment When Check Disbursed to Other Than Vendor in the OSU Fiscal Operations Manual.

411-01 Air Transportation

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 05/15/2014

 

People traveling on University business are able to take advantage of several methods to obtain their travel services. Selected airfare should be economical, reasonable, and the route necessary for the business being conducted. OSU has contracted travel agents who provide planning services for the traveler which are billed directly to the University. In addition, the agents have access to unrestricted city pair tickets which can represent a significant savings to units and allow flexibility to change or revise travel plans. OSU promotes the use of contracted travel agents; however, their use is not mandated. 

All airfare travel booked through the contracted travel agencies require authorization by the designated unit’s representative for ticketing and billing. An authorization email, providing the authorization for travel and related expenditures, index, and account code for billing must be sent within 24 hours after the itinerary is confirmed to complete the booking. The price for the airfare is not guaranteed until the transaction has been finalized.  Fees associated with exchanges, refunds and cancellations will be billed to the designated unit. The traveler (not OSU) will be personally responsible for fees unless the changes made are necessary for OSU’s business needs or are outside the control of the traveler

City-Pair Fares - The state contracts with various airlines enabling the University to buy unrestricted airfare to various cities - called "City-Pairs". These fares allow the traveler to book a ticket up to the day of the flight, fly with no Saturday night stay, and cancel or rebook the ticket - all without an additional cost. These special fares are only available from our contracted travel agencies. A link of the city-pairs can be found on Business Affairs website under Travel.

International Flights - Foreign travel charged to Federal funds must comply with the Fly America Act.  U.S. flag air carriers must be utilized when the airfare is paid with federal funds on a grant or contract - this includes “flow through” funding. (In FIS Banner, indexes funded with federal dollars will have a fund type “31”.) The OSU Fly America Act policy, the Foreign Travel authorization forms, and the mandatory Fly America Act Waiver Checklist are located in Grant, Contract & Gift Manual GCG 209-09: Fly America Act (Federally Funded Air Travel).

Purchasing Airfare from a Non-Contracted Vendor - Travelers also have the option to purchase airline tickets from a vendor other than a contracted agent. A traveler choosing this method may use their OSU issued corporate/travel card or personal funds to purchase airfare.  In most cases these types of airfare purchases are restricted tickets and the traveler assumes all risk and costs, if changes or cancellation occur.

If an OSU compensated traveler (OSU staff or faculty) chooses to utilize an outside source for air travel, the traveler must do so in an economical and reasonable way. Only regular, coach class fares are allowed to be used (additional charges for upgrade or premium seats will not be reimbursed). Note: if the traveler chooses to use a non-contracted vendor and chooses to pay for it personally, the traveler (not OSU) will be responsible for cancellations, itinerary changes, or other charges unless the charges are necessary for OSU’s business needs or are outside the control of the traveler. 

If you are a non-compensated traveler, such as a student, volunteer, or visitor and are able to utilize OSU’s contracted travel agents it would be beneficial to the University. Although you are encouraged to do so, it is not required.

Airfare Reimbursement – Airfare purchased from non-contracted vendors will be reimbursed after the trip is completed. The traveler will not be reimbursed for any interest or late fees associated with the purchase.

Reimbursements to travelers require a copy of the on-line documentation showing the payment method and the itinerary.

The on-line confirmation or itinerary should include the traveler's name, dates of travel, destinations, and seat class. 

The traveler has 60 days from date of the completed travel to request reimbursement.  See FIS 411-07 Travel Reimbursements.

Personal Travel Combined with Business Travel - Travelers may combine personal travel with business travel as long as no added expense is incurred by the University. A comparison quote showing the business-only costs is required. OSU will only cover the business portion of the trip. OSU contracted travel agencies can split the billing so that the business portion of the fare is charged to the University and the traveler is billed separately for their personal segment of the trip. Personal days must be noted on the traveler’s itinerary when requesting reimbursement of business related expenses.

An employee may request in advance to travel by personal vehicle in lieu of air travel in order to combine official travel with personal travel. Travelers choosing to drive rather than fly will be reimbursed for an amount equal to the lesser of the mileage reimbursement or the cost of round-trip airfare that would have been incurred for commercial air travel. Travelers will need to obtain a comparison quote from one of the contracted travel agencies showing the most economical direct-route travel cost. This quote will be used to reimburse the traveler after the trip is completed. Expenses resulting from the additional time required to drive are not reimbursed. See OUS Fiscal Policy Manual Section: Travel 95.100.

When an employee is authorized in advance to travel by personal vehicle instead of a commercial airline, they may be reimbursed for the following costs associated with air travel between his or her official station and destination:

  • The cost of round-trip commercial airfare for the most economical direct route that would have been incurred. The contract travel agency provides airfare quotes that must be submitted with the travel reimbursement request.
  • Private vehicle mileage to and from the air terminal that would normally be used for departure.
  • Lodging, meal, and incidental expenses that the employee would normally incur with air travel. Expenses resulting from the additional time required to drive are not reimbursable.

Travel associated with official business while at the destination may include:

  • Vicinity mileage from hotel to official business sites.
  • If personal car is not available for vicinity mileage on official business, other normal means of transportation may be used.

Charter aircraft or air taxi service may be taken when the cost is shared by three or more people. The charter is normally restricted to flights of less than 600 miles one way. Trips made by fewer than three people or flights greater than 601 miles one way must be approved in advance by the VP of Finance and Administration or their designee. The aircraft must be piloted by the company pilot and not an OSU employee.

Charter aircraft used transporting people from one location to another in lieu of routine transportation would be coded 39xxx Travel and non-travel activity (crop-dusting, aerial photographing) would be coded 24010 Equipment Rentals.

Travel by private aircraft (employee-owned or rented) may be authorized when advantageous to the University or for the employee’s convenience. Reimbursement for expenses is for use of the aircraft regardless of the number of passengers. If an employee elects to use employee-owned or rental aircraft for personal convenience, reimbursement for travel expense will not be greater than the lowest cost method of travel. Use of employee-owned or rented aircraft will normally be restricted to flights of less than 600 miles one-way, unless approved in advance by the VP of Finance and Administration or designee.

Only employees who hold a Private, Commercial or Airline Transport Pilot Certificate and are properly certificated, rated, and qualified under the current Federal Aviation Administration (F.A.A.) regulations with apply to the operation of the flown aircraft may pilot aircraft on OSU business.

Mileage allowances for employee-owned or rented aircraft are governed by the following policies:

  • Current rate per shortest air mile when use of the aircraft is advantageous to the institution. In an unusual situation, additional mileage may be authorized when supported by the circumstances.
  • Current rate per highway mile for motor vehicle travel when travel by car is appropriate. Additional expenses from use of the aircraft are not reimbursed. Reimbursement is limited to the current Privately Owned Vehicle (POV) Airplane Mileage Rate as specified by the US General Services Administration.

Employees operating aircraft on official business must carry their own personal aircraft insurance or be covered under private insurance on leased or controlled aircraft. The University requires the employee pilot to have a current medical certificate and meet the pilot qualifications for the aircraft type used.

Travel Awards and Frequent Flyer Mileage - Because the cost of recordkeeping outweighs any monetary benefit, and consistent with Board policy, OSU will not recapture airline bonuses awarded employees for frequent flyer miles. The value of frequent flyer bonuses redeemed for official university travel is not a reimbursable expense. In addition, the terms of some grants and contracts may restrict the traveler from earning frequent flyer miles.

411-02 Ground Transportation

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 9/27/2013

Vehicle rental expenses may be reimbursed. Vehicles may be rented only when it is the most economical/efficient means of transportation. Receipts are required for vehicle rentals. Travelers should consider renting vehicles from the OSU Motor Pool. Rental cars may be used in conjunction with travel by common carrier when use is reasonable and authorized in advance. 

University travelers will rent compact or economy cars whenever possible. The rental of SUVs and luxury vehicles is not allowed. If you receive an upgrade because other vehicles are not available, have the rental car agency make a notation on the rental agreement that the vehicle rented was the only one available and that you paid the rate for the lower cost vehicle.

Due to the number of University Travelers on a single itinerary, it may be economical to rent a van for transportation purposes. Keep in mind that OSU does not permit the use of 15 passenger vans due to safety advisories published by the National Highway Traffic Safety Administration (NHTSA).

Employees are encouraged to use the State of Oregon Contracts for rental cars. The contracts with Enterprise Rent-a-Car, National Car Rental, and Hertz Car Rental include insurance coverage. For this reason, collision damage insurance (sometimes referred to as CDW or LDW), personal accident insurance (PAI), and liability insurance supplement (LIS) should be declined and are not a reimbursable expense.

Employees not using the State of Oregon contract with Enterprise Rent-a-Car, National Car Rental, or Hertz Car Rental must purchase limited collision damage insurance to cover loss or damage to the vehicle. If a rented vehicle is damaged, and the OSU employee declined the CDW/LDW, the deductible doubles from $2,500 to $5,000 and Risk Management will only cover the amount in excess of that value. Personal accident insurance (PAI) and liability insurance supplement (LIS/SLI) should be declined. These are not a reimbursable expense.

While the University’s insurance will cover the cost of damage to a rental car, the person (or Unit) renting the vehicle will be responsible for any applicable deductible.

The state’s automobile insurance coverage is valid only in the United States, its possessions, territories and Canada. If it is necessary for the traveler to have a rental vehicle in a foreign country (especially Mexico), OSU recommends contacting Risk Management at least two weeks in advance of the travel so they can arrange any specific insurance for the foreign country and purchasing the insurances available (including SLI and CDW).

When a rented vehicle is damaged in an accident and CDW insurance has not been purchased, the rental agency may require payment of the deductible even when a third party is at fault. The employee should first explain that the university is self-insured through the State of Oregon, and the State Insurance Fund will cover damages up to the deductible amount.

If the rental agency still requires payment, the employee may charge the cost of damages to the OSU Travel Card or to a personal credit card and file for reimbursement. The employee should notify the OSU Risk Management Office as soon as possible and provide related information.

The renter of a car has all normal and some special responsibilities after an accident. Most fall into two areas: data collection and accident reports. The individual should collect and record all pertinent data relating to the accident such as:

  • Time and place of the accident
  • Traffic and weather conditions
  • Circumstances contributing to the accident
  • If another vehicle is involved, the driver’s name, address, driver’s license number, insurance company and policy number
  • Name, address and telephone number of any witness
  • Investigating police officer’s name
  • Description of damage to all vehicles involved
  • Name and phone number of the rental car company claims agent

The driver should promptly report the accident to all concerned parties, including:

  • Local police
  • Local or state authority for accident reporting (e.g. Department of Motor Vehicles in Oregon)
  • Rental car company, and
  • OSU Risk Management Office

Failure to report an accident may void all protection from the company’s insurance. The accident must be reported to the OSU Risk Management Office within 60 days to avoid loss of coverage. The OSU Risk Management Office will report the accident to the State of Oregon, Department of Administrative Services Risk Management Division (RMD).

The driver must keep a copy of all pertinent information and provide copies to the OSU Risk Management Office to assist in settling a claim. This includes all data collected, accident reports, repair estimates, and a receipt for any payment made.

When non-employees (seminar speakers, interviewees, etc.) are invited to OSU and a car rental is anticipated, they are personally responsible for the costs. It must be made clear to the traveler that they ARE NOT COVERED by OSU/State Insurance and they should check with their own insurance company to determine their rental vehicle coverage. Collision Damage Waiver (CDW or LDW) is reimbursable, if purchased.

  • The traveler should determine if they have a credit card that will pay the Collision Damage Waiver (CDW) insurance.
  • The traveler should check with their own insurance company to see if they are covered when driving rental vehicles.
  • If either of the above does not apply, it is strongly encouraged that the applicable unit tells the non-employee traveler to take out the CDW insurance. It will be reimbursed.

With prior OSU budget authority permission, at no additional cost to the University, and at their own risk or the personal risk of the driver, an employee’s family member may ride in “state” vehicles (owned or rented), per OAR 125-155-0420. When there is mixed use (business & personal) for a rental vehicle; it is the employee’s personal responsibility to pay for adequate insurance which will not be reimbursed.

Private Vehicles - Travel including business trips in the vicinity of the official station may be authorized in advance subject to campus guidelines.  An employee carrying passengers while using a private vehicle for business travel must comply with campus rules. Employees and agents may be authorized to use their privately owned vehicles for official business when it benefits the campus. Expense reimbursement is for use of the vehicle regardless of the number of passengers.

Mileage for the most direct, usually traveled route may be reimbursable at the current published OUS rate. Use the Oregon Mileage Chart within the OUS Fiscal Policy Manual, Travel and Transportation Administration and Expenses 95.100, or actual odometer readings. Out-of-route miles must be justified. Mileage must be from official work station or their home, whichever is less. Travelers may not claim commute mileage from home to official work station as part of their mileage reimbursement request.

If the traveler needs to claim vicinity miles, show the vicinity miles as a separate line item for the location on the reimbursement request form. Private vehicle mileage is reimbursed at the current published OUS rate.

Employees and agents authorized to use their private vehicles for official business are required to have personal automobile liability insurance to provide the primary coverage for any accidents involving that vehicle. State-provided automobile liability coverage will apply on a limited basis after the employee's primary coverage limits have been used. The state does not provide physical damage, uninsured motorist and personal injury protection for private vehicles. State coverage does not apply when the vehicle is used outside the scope and course of employment, such as during vacation time taken in conjunction with a business trip. For additional information, contact Risk Management.

Only authorized passengers may ride in a state-owned vehicle. This includes any vehicle rented through the OSU Motor Pool. See the Motor Pool Policy Manual MPL 201 Authorized Drivers & Passengers for these guidelines.

Transportation by common carrier is recommended when it is more appropriate and economical than travel by state or private vehicle. Fares may be reimbursed or billed to the unit for travel.

Airport shuttle companies in Corvallis make several trips per day to and from the Portland International Airport or the Eugene Airport. This can be a very cost effective way of getting to and from the airport because it eliminates the need to pay mileage reimbursement and airport parking. Scheduled or charter buses may be used. Charter buses are primarily used for team travel.

Trains can be used if justification is provided that it is the most suitable and economical mode of transportation. Coach accommodations should be booked whenever possible. When booking Amtrak tickets through a contracted travel agent, the agent may charge a fee which is paid directly by OSU. A roomette is allowed if special accommodations are approved because of the trip’s nature or the traveler’s health. A bedroom is allowed if no roomette is available.

The use of taxi service, shuttles, ferries and mass transit may be reimbursable. Airport bus service to and from terminals is also reimbursable.

411-03 Lodging

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 01/15/2014

 

Prior to departure, the traveler should contact the appropriate Business Center regarding the applicable policy for lodging expenses. Unit policy for lodging must be applied in the same manner to all travelers from the same unit.

Commercial Lodging reimbursement is based upon the current per diem rate as determined by the traveler’s lodging location. For the day the traveler leaves on a trip, the per diem rate specified for where the traveler will spend the night is used. When there is more than one lodging location during the trip, use the specified rate for where the traveler will spend the night for each day of the trip. For the day the traveler returns from the trip, the per diem rate specified for the last location where the traveler stayed overnight is used.

Travelers must submit a valid lodging receipt obtained from the lodging establishment to receive reimbursement when it is determined that the traveler would not reasonably be expected to return to their home station. Oregon State University requires original, itemized  lodging receipts be submitted to substantiate the expense. The receipt must state the overnight travel date, time, place, amount, and include a business purpose. Lodging receipts serve as proof of business travel away from the employee’s home station and document that the expense was incurred as required for an IRS accountable plan.

All lodging expenses will be reimbursed at actual cost up to the current per diem rates. Any lodging expenses over the current stated per diem rate will not be paid, regardless of funding source.  Exceptions to the current per diem limit may be reimbursed at actual and reasonable cost with the appropriate documentation.

  • Portland Metropolitan Area - lodging will be reimbursed at actual and reasonable cost only
  • Conference Lodging – Reimbursed at actual and reasonable lodging expenses over the allowable lodging per diem rate when conference documentation is provided.  Appropriate documentation regarding the conference lodging rate should include a copy of conference registration information showing location, dates of conference, conference hotel(s), and single room rate. If registration materials are not available from the traveler or the conference website, the head of the department should sign and date a statement specifying that the event meets the criteria for a “conference exception”.  The statement must also include a brief description of the event, the agenda, the date(s), location, attendees, and the single room lodging rate.  This statement must accompany each attending employee’s travel reimbursement request and will be retained for audit. Lodging taxes are included under Miscellaneous Expenses.
  • Lodging Per Diem – Reimbursement based on per diem rate only will be considered an exception. A thorough statement documenting why an exception is needed in lieu of the actual rate must be submitted with the reimbursement request and approved by the Business Center. In this instance, lodging receipts to substantiate the expense would not be required.

For group travel, the room rate may be calculated by total room costs divided by total number of travelers (itemized receipts and a rooming list are required). Lodging taxes are considered Miscellaneous Expenses and should be recorded in the “Other Expenses” section on the Travel Reimbursement form.

Lodging for travel within the 48 contiguous states and the District of Columbia will be reimbursed at the OUS approved rates as shown in the Section .710 Summary of Travel and Transportation Rates under OUS 95.100 Travel and Transportation Administration and Expenses. For travel to or within Alaska and Hawaii, the federal rate using the Federal Specific Locality Table will be used as the per diem rate for lodging, meal, and incidental expenses.

Room taxes are not included in the lodging per diem rate for domestic travel; however, room taxes are included in foreign per diem rates. Report room taxes separately in “Other Expenses” on the OSU Travel Reimbursement Request.

Non-Commercial Lodging - Travelers utilizing non-commercial lodging facilities (e.g.: travel trailer, motor home, staying with family members or friends) are provided a daily payment of $25.00 regardless of duration or location.

411-04 Meals

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 12/19/2012

Reimbursement for meals will be based on approved meal per diem. Actual meal receipts are required for group travel, when the claim for meal costs or food supplies (i.e. groceries purchased from a store or other entity) is greater than the allowed per diem,. Note: OSU’s purchasing policies should be followed when buying any non-consumable item(s).

Meal per diem rates are determined by the traveler’s lodging location. A deduction from the daily Meals & Incidental Expenses (M&IE) per diem is necessary for meals provided by others and as dictated by the departure/return time to the claimant’s official station.

For group travel, the employee responsible for the group must submit an itemized, valid receipt obtained from the eating establishment to receive reimbursement. Athletic team meal expenses exceeding the OUS per-diem rate require written justification and approval of the Athletics Director or the Associate Athletics Director that the coach reports to. Student group meal expenses exceeding the OUS per-diem rate require written justification and approval of the department head.

For hosting of non-employees, refer to OSU’s hosting policy in FIS 410-05 Hosting Groups and Official Guests.

The cost of alcoholic beverages will not be reimbursed, regardless of funding source.

Direct-bill invoices from vendors have the same written justification and approval requirement for meal expenses exceeding OUS per-diem rate.

For the day the traveler leaves on a trip, the per diem rate specified for where the traveler will spend the night is used. When there is more than one lodging location during the trip, use the specified rate for where the traveler will spend the night. For the day the traveler returns from the trip, the per diem rate specified for the last location where the traveler stayed overnight is used. The traveler is eligible for 100% of the daily per diem if the trip concludes at 6:00 pm or later, 50% of the per diem if the trip concludes between 12:00 pm (noon) and 5:59 pm, or 25% if the trip concludes prior to noon.

Clarifications in regard to reimbursement of meal per diem:

  1. Meals provided at a conference included in the conference registration fee are not to be claimed.
  2. Breakfast is not to be claimed when staying at a bed and breakfast, as it is considered part of the lodging cost rather than “complimentary.”
  3. Meals & Incidental Expenses per diem will not be reduced for a complimentary meal provided by a common carrier or hotel/motel.
  4. When a meal has been provided, or is not claimed, a deduction from the full daily rate is made using the following methodology established by OUS: Breakfast 25%, Lunch 25%, Dinner 50%.

Particular guidelines as shown in FIS 410-29 Meals on One Day Trip (no overnight stay) must be followed when determining what constitutes an allowable payment for meals on a one day business trip.

Meals & Incidental Expense rates for travel to and within the 48 contiguous states and the District of Columbia are the OUS approved rates as shown in the OUS Fiscal Policy Manual –Travel and Transportation, Section 95.710 Summary of Travel and Transportation Rates and Section 95.730 Travel – Federal Out-of-State (Continental U.S.) High-Cost Localities Eligible Table.

For travel to or within Alaska and Hawaii, the OSU Lodging and M&IE per diem rates equal the federal rate using the Federal Specific Locality Table.

To obtain the correct rate table use the link on the Business Affairs Travel Reimbursement Website. These rates are also updated monthly in OSU Travel Reimbursement Entry System (TRES) tables.

411-05 Conference Expenses

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 01/31/2011

The OSU Purchasing Card is the preferred method for registration.  This card may not be used to pay any costs associated with social functions held in connection with the conference. Contact your unit purchasing card custodian. Keep a copy of the registration form to submit with the TRES form. DO NOT claim this expense on the traveler’s reimbursement form since it has already been paid.  Note that it has been paid with the purchasing card in the OTHER EXPENSES section of the form.  The same instructions apply if any meals are associated with the registration fee.  See FIS 1402-12: OSU Purchasing Card.

Direct Bill - A conference host may be willing to invoice the unit for a traveler attending the conference. 

“Prepaid” is when the university (not the traveler) pays the registration fee for the traveler before the conference, function, or event takes place.  Attach a completed original registration form and one copy of the registration form to the Payment Request form.  The registration form should show the amount of the registration fee.  Send these documents to the appropriate Business Center where an invoice is prepared so a check can be mailed with the original registration form to the vendor.

Keep an additional copy of the registration form showing the dates of the conference to include when submitting the Travel Reimbursement form.  On the Travel Reimbursement form, put a notation in OTHER EXPENSES section stating that the registration fee has been prepaid.  Do not carry the amount over into the total column of the reimbursement form.

Units may elect to make registration payments via wire transfer, especially when paying an agency overseas. Upon receipt of a fully completed Request for Wire Transfer form (a typed form is preferred with the appropriate supporting documentation), the Cashier's Office will initiate the wire transfer request and the State Treasury will complete the transaction. The form must be signed by a unit supervisor and not by the same person who filled out the Request for Wire Transfer form.

When stating the name of the vendor, do not use initials or acronyms.  State the full name of the vendor since this information is required for the vendor history file.  However, if the initials are the name of the vendor, note that fact on the Payment Request.

A person’s name cannot be listed as the vendor when paying a registration fee.  The check must be made out to the conference name, although the check can be mailed to a person.  It is very important to read the registration form to determine where the check is to be sent, since that address may be different from the place where the conference is being held.

A conference attendee traveling on official university business may pay the registration fee and be reimbursed for it after the event.  Claim reimbursement in the OTHER EXPENSES section of the reimbursement form.  Reimbursements to travelers require either:

  1. When a registration fee is paid by the claimant, a signed receipt or a computer receipt showing the amount paid must be attached. 
  2. If a cancelled check is used as proof of payment, the claimant will need conference materials showing the registration amount and copies of both sides of the cancelled check.

A Journal Voucher (JV) may be used for a registration fee when a unit on campus sponsors a conference.  The debit will go to the attending unit’s general fund on an expense account code 2XXXX.  The credit will go to the sponsor’s workshop fund on an income account 09XXX.

When a conference registration includes meals and lodging, these items should be broken out into their proper account codes, if possible.  If not possible, include all in the registration account code.  Do not request reimbursement for meals included or prepaid with the conference.

411-06 Miscellaneous

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 01/10/2013

Miscellaneous expenses must be itemized on the OSU Travel Reimbursement Request (TRES) form as “Other Expenses”.  Commercial ground transportation requires receipts if over $75.00 per item; all other miscellaneous travel expenses require receipts if over $25.00.  Miscellaneous reimbursable travel expenses may include:

  • Telephone.  Business calls must include purpose of call.  A personal call home on the first day of travel and alternating days thereafter may be reimbursed with limits of up to five minutes or $5.00 (whichever is less). 
  • Fax
  • Internet
  • Postage – indicate what was mailed and business purpose
  •  ATM Cash Advance fees
  • Materials and supplies purchased to meet an immediate business need (receipt required)
  • Reference materials (receipt required)
  • Parking
  • Tolls
  • Lodging taxes (domestic)
  • Energy surcharge
  • Fuel for rental car
  • Charges for airline baggage fees in excess of two checked bags should include an explanation of the necessity for the excess baggage.”

Gratuities -Tips paid by OSU employees for services received while on travel assignments are personal expenses and cannot be reimbursed.  An exception is made for reimbursement of group travel actual meal expenses.  In such cases, a gratuity of up to 15% of the meal expense may be reimbursed when supported by a receipt.

The M&IE per diem includes costs which are incidental to travel – laundry, cleaning/pressing of clothing, and fees or gratuities for services such as waiters, bell hops, and baggage handlers. These types of expenses cannot be listed or reimbursed separately.

Travelers in a unit may be subject to the unit’s travel policy that is more restrictive than the standards expressed in this policy.  A travel policy more restrictive than the OSU policy requires review by the appropriate Business Center and prior approval by the Vice President for Finance and Administration via the Director of Business Affairs.  It also must apply to all travelers within the unit.

411-07: Travel Reimbursements

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 4/22/2013

 

Travel Reimbursement Request forms will be used for the reimbursement of travel expenses of employees, students, and non-employees on official university business, regardless of the funding sources. Requests for reimbursement are to be submitted within 60 days after the trip has been completed, but no later than the close of the fiscal year in which the travel occurred. If the trip is exceptionally lengthy, interim filings may be permitted with prior approval. In no case can a reimbursement request be submitted after the close of the fiscal year in which the cost was incurred.

A travel reimbursement request form cannot be filed before the trip is completed and must be filed in a reasonable period of time. Filing Reimbursement Requests beyond the reasonable period may result in the reimbursement payment being taxable as wages to the employee and/or being denied. For the purposes of this policy, the IRS definition of 60 days [IRS Reg 1.62-2(g)(2)(i)] will be used to define “reasonable period”.  Accordingly if an employee does not submit a reimbursement request within 60 days of the purchase date (or from the date of return from travel if the purchase is made while in the field), the business center may offer a one-time educational session, depending upon the circumstances, before they issue a Memorandum of Understanding (memo or MOU) that is signed by the employee to document their awareness and understanding of the policy and inform them that the university will not reimburse their late reimbursements in the upcoming two year period. The option to offer an educational interaction instead of immediately issuing a MOU for an infraction of this policy should only be for those rare cases where it is very clear that the employee would reasonably not have known about this policy (i.e. new employee). A second violation for this same individual would result in issuance of the memo. 

When two or more employees travel together, it may be expedient for one employee to pay and claim reimbursement for certain expenses of other employees.  Examples are:

  1. There is a single charge for a group (e.g. road or bridge toll, parking fee taxi fee)
  2. Two employees share a room.  One may pay the bill and claim the actual amount, (with an original, itemized receipt) up to the combined lodging allowance. 

Claims for reimbursement or payment of travel expenses must include a business purpose.  The business purpose should be descriptive enough to clearly answer any questions regarding who traveled, the necessity of their travel, and the benefit to OSU. 

For all claims, submit a Travel Reimbursement Request Form through TRES. When an original signature is unattainable, a faxed signature or email authorization is acceptable for payment processing.  For an email authorization to be accepted, the email must state what specifically is being authorized (i.e. dollar amount, who the TRES form is for, what was the business purpose of the trip, dates of the trip, etc.) so the email can be matched to the reimbursement request. See FIS 1403-13 e-Signature. A person other than the traveler may not sign the Reimbursement Request as the claimant.

Employees - Expenses are reimbursed with appropriate documentation.  Passports, visas, immunization shots and other miscellaneous expenses with receipts may be reimbursed when required for an international trip. Per Diem is available only while the employee is in “travel status” (official university business requiring an overnight stay away from the employee’s official station or non-overnight travel where the employee leaves/returns home two or more hours before or after their normal start and end times).  When employees travel together, it may be expedient for one employee to pay and claim reimbursement for certain expenses of other employees.  Reimbursement for multiple employees is only allowed when actual expenses are being reimbursed and are supported by receipts.  Employees involved cannot request reimbursement for such expenses paid on their behalf to another claimant.

Employees on Leave - Reimbursement for expenses incurred during sabbatical or other types of leave is warranted only in exceptional circumstances.  These costs must be pre-approved by the department head before the leave is taken.

New Employees - New employees may be reimbursed for house hunting and moving expenses when costs are necessary to employ qualified personnel.  The maximum total cost being paid must be indicated in the new employee’s letter of offer.  New employees teaching summer session only may be reimbursed for travel expenses associated with one round trip only.  See OUS Fiscal Policy Manual, Fringe Benefits- Moving Expenses 66.200.

Students - Students who travel as employees or officially designated representatives of OSU may be reimbursed for travel expenses. 

Team/Group - One state employee, such as a coach, athletic director, or group leader, may request reimbursement for expenses paid for team or group members on a single Travel Reimbursement Request form.  Other members of the same group may not claim reimbursements.

Non-employee expenses should be kept separate from employee expenses.  Detailed itemization of expenses is required and must be supported by receipts.  When team/group members are provided cash to buy their own meals, a list of the individuals’ names, their signatures, and the amount disbursed is required.  Field trips must be necessary for field instruction, observation of contemporary practices and other areas that are not readily available for classroom or laboratory presentation, but are considered by the instructor to be subject matter essential to the course.

Original, itemized receipts must be submitted as support for expenses. Photocopies of invoices, credit card statements or record of charge slips accompanying the monthly billing statement, receipts or restaurant stubs are not acceptable.  Tear tags, credit card slips, and notations on lodging folios are inadequate replacements for itemized receipts.

Unpaid Members of Advisory Committees - May be reimbursed for actual and reasonable meal expenses and mileage.  Original itemized receipts are required.

Employees of Other State & Federal Agencies - Employees of other agencies are to be reimbursed for travel expenses by their own agency.  OSU cannot pay these individuals directly. OSU will reimburse their agency when invoiced for expenses.

Official Guests - Official guests can be, but are not limited to: faculty candidates, research collaborators, visiting scientists or lecturers, seminar or workshop speakers, observers, etc.  Pre-approval by appropriate program personnelis required prior to extending an invitation.  A clear benefit to OSU must be provided when requesting payment of invited guest expenses.

  • Faculty candidate’s family member(s) - payment of expenses require prior approval from the appropriate budget authority and will be taxable to the candidate.
  • Guest Speakers not receiving compensation - airfare and lodging can be direct billed to departments.
  • Official Guests not receiving compensation - expenses such as airfare, lodging, meals, and vehicle rental can be reimbursed to the guest when supported by original itemized receipts.  Meal per diem and mileage can be reimbursed to the guest at current OUS mileage and per diem rates.
  • Official Guests receiving compensation - all incurred expenses (including meals, lodging, transportation, etc.) are incorporated in the PSI/PSC payment amount and should be coded as appropriate to the expense; not travel account codes.

 Other Non-employees

  • Non-OUS Participantexpenses (286xx) should be coded as appropriate to the funding source.  Travel expenses reimbursed on account code 28635 require receipts for all expenses, except mileage.  Mileage is reimbursed at the OUS rate.  Travel expenses not documented with receipts are reimbursed using account code 28636.
  • Individuals on a Fellowship and not taking classes toward a degree (i.e.: post-docs) are reimbursed using 28636, because the transactions are 1099 tax reportable.
  • Volunteers are eligible to receive per diem only when travel is an assigned duty and indicated as such on their condition of volunteer service. Additional information for volunteers can be found on the website for Risk Management.

Individual units may have travel policies that are more restrictive than the minimal standards expressed in this policy.

411-08: Receipt Requirements

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 01/10/2013

Expenditures requiring receipts need to be substantiated by original valid receipts provided by the vendor detailing the goods or services received.  If this information is not printed clearly on the receipt, and in those rare instances when a receipt has been lost or destroyed, an affidavit signed by the claimant and the unit head providing the vendor’s name and address, an itemization of the purchase, and a disclaimer that no alcohol was purchased can be substituted.  The affidavit should be used only in rare circumstances.  Since credit card charge slips and credit card statements provide proof of payment, but do not normally provide an itemization of the expense, they cannot be accepted as a valid receipt.  Small receipts should be taped (not stapled) to a larger piece of paper. 

Non-Travel Related Expenses - Any expenses claimed for non-travel related purchases (supplies) must be accompanied by a receipt regardless of the dollar amount. The approporiate 20xxx account code must be used for this part of the reimbursement.

Miscellaneous Travel Expenses -The following miscellaneous travel expenses do not require receipts.  However they must be itemized on the Travel Reimbursement Request form.

  • Meals and incidental expenses claimed at per diem rates
  • Lodging claimed at per diem rates
  • Commercial ground transportation (taxi, airport shuttle, tolls) under $75.00
  • Miscellaneous travel expenses under $25.00

International travel expenses - International travel expenses must be converted to U.S. Dollars (USD).  Include proof of the currency exchange rate. 

See Grant, Contract and Gift Accounting (GCG) Policies and Procedures Manual for receipt requirements for grant funds.

411-09 Non-Reimbursable Expenses

Fiscal Operations Manual
Section 411: Travel
Effective: 02/01/1982
Revised: 05/05/2013

Permitted reimbursements are based on the Oregon University System's Policy, which indicates that universities are to follow applicable state statutes, regulations and administrative rules.   The State of Oregon Travel Regulations contains the permitted reimbursement amounts relating to mileage, lodging, and meal/incidental expenses. Expenses are not normally reimbursed unless specifically identified as reimbursable.  A person incurring a non-reimbursable expense is personally accountable for the expense. 

The following are some expenses not normally reimbursed:

  • Home-to-office travel
  • Deviations from the most direct and usually traveled route
  • Expenses incurred because the employee is accompanied by family member
  • Travel expenses associated with personal travel (i.e. personal travel insurance)
  • The cost of alcoholic beverages
  • Meal expenses above the per diem rates
  • Lodging expenses above the per diem rates
  • Tips/gratuity
  • Interest on personal credit cards
  • Mileage reimbursement on rented vehicles
  • GPS navigation units on rental vehicles

412: 1099 Reporting

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 11/11/2010

 

1099 statements are reports of taxable income paid to individuals and companies by Oregon State University.  They are produced every January for the prior tax year.  Per IRS regulations, these statements must be mailed on or before January 31 or a penalty is assessed.  Business Affairs is responsible for producing the statements.

A list of 1099 reportable account codes is located in Section 02: Account Codes -- Summary of Tax Reportable Account Codes of the OUS Fiscal Policy Manual.

413: Non-Resident Aliens (NRA)

Fiscal Operations Manual
Section 400: Expenditures
Effective: 03/30/2009
Revised: 10/15/2013

OSU must comply with Internal Revenue Service (IRS) Regulations in connection with withholding and reporting of tax on non-resident aliens (NRAs).  The reporting and taxation requirements of NRAs are very complex.  These guidelines for individuals and Business Centers serve to enable all parties to meet their reporting and taxation requirements.

Any payment made to a non-resident alien requires special attention and handling.  In order to make a payment to a NRA working in the US, the individual must have a US social security number (SSN) or a US individual tax identification number (ITIN). The only exception to this is for payments made that are determined to be part of a "qualified scholarship".

Because of the complicated tax laws and regulations for these payments, we strongly request that you review the “Inviting and Paying a Non-Resident Alien for Academic Activities” checklist. This checklist should be started well in advance of making a payment request.  Using this checklist and having the correct documentation will make the process much easier and faster.

All payments made to or on behalf of a NRA must be reported to the IRS.   In addition, all payments are subject to federal income tax withholding unless they are specifically exempted by either US tax law or by an income tax treaty. Note:  there are tax treaties with over 40 countries, each of which are unique, different, and can change frequently.

Examples of payments made to NRAs include, but are not limited to:

  • Wages/Compensation
  • Stipends
  • Travel & Expense Reimbursements
  • Scholarships/Fellowships (Note: Payments do not have to be paid in cash; credits to a student's account qualify under these requirements.)
  • Independent Contractor Payments
  • Royalties/Commissions
  • Honoraria Prizes/Awards

 Each payment requires the review of certain key factors:

  • Visa Type
  • US Residency Status (US citizen, substantial presence alien, resident alien, non-resident alien)
  • Substantial Presence Test

If a non-resident alien is exempt from federal income tax withholding because of either U.S. tax law or a tax treaty, that individual must file the appropriate form:

  • Form 8233 - Compensation (independent contractors and employees) and related payments
  • Form W-8BEN – Scholarship, fellowship (no service), royalties and other payments

Payments requiring federal income tax withholding are taxed at 14 percent, 30 percent, or graduated withholding rates depending on the type of payment.

The 1042S is the annual tax form used to report payments and tax withholding to NRAs.

Non-Resident Alien Status -

 A NRA is a person who is not a citizen or permanent resident of the United States and who has been admitted for a temporary stay that will end when the purpose of that stay has been met.  A resident alien, for immigration purposes, is the same as an immigrant, or a "green card" holder. A resident alien can be defined as a non-US citizen who has been authorized to live and work in the United States indefinitely.

A NRA for tax purposes is a non-US citizen who, during his or her stay in the United States either pays U.S. tax only on income from sources inside the US or else is exempt from paying US income tax because of a treaty between the United States and the government of his or her country of residence for tax purposes. Most NRAs receive no tax exemption for dependents. A NRA for tax purposes must file an income tax return on IRS Form 1040NR  US Non-resident Alien Income Tax Return on or before April 15th.

Categories established for immigration purposes do not necessarily coincide with those set up for tax purposes. Under certain circumstances, a NRA for immigration purposes may be a resident for tax purposes. Thus, students and scholars who are not citizens of the United States must take care to determine whether they are resident or non-resident aliens for tax purposes. Only then will they know how their income will be taxed and which income tax return form to file. For current information on tax laws regarding resident and non-resident aliens, IRS Publications 513, 515, 519, and 901 should be consulted.

Withholding Tax Information – Generally, a foreign person is subject to US tax on its US source income. Most types of US source income received by a foreign person are subject to US tax of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person’s country of residence and the United States.

Pay for Personal Services Performed - usually, a NRA who performs personal services within the United States during the tax year is engaged in a US trade or business.  Personal services performed by an independent non-resident alien contractor as contrasted with those performed by an employee are subject to the flat withholding rate unless that pay is specifically exempted from withholding or subject to graduated withholding. This category of pay includes payments for professional services made directly to the person performing the service.

Foreign Student or Exchange Visitor - A NRA individual temporarily present in the US under a "F", "J," "M," or "Q" immigration status for five calendar years (relating to visiting students, teachers, trainees, etc.) is considered to be engaged in a US business. This means that any taxable portion of a scholarship or fellowship grant and expenses incidental thereto, to the extent derived from US sources, are taxable at the same rates (but subject only to the flat withholding rate) applicable to a US citizen.

Method of Taxation - A NRA individual is taxed in the same manner as an US citizen and on all income which is effectively connected with their conduct of a trade or business in the US. They are also taxed at a flat rate set by the Internal Revenue Service on US source income that is not effectively connected with the conduct of a US trade or business.

Tax Treaties - A NRA individual is taxed on fixed or determinable annual or periodic income received from US sources at a flat rate unless a lower rate is set under an income tax treaty ratified by the United States. The US has negotiated a network of treaties with other countries to avoid international double taxation and to prevent tax evasion.  Non-resident Alien students from countries with which the US has an active tax treaty may be exempt from Federal Income Tax on wages that would otherwise be considered taxable.  In order for NRA students to claim benefit under the appropriate tax treaty, they must complete IRS Form 8233 “Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual.”  A new Form 8233 must be filed at the beginning of every calendar year in order to continue the exempt status under the tax treaty.

Rate of Withholding is based upon current IRS regulations.

Returns on Withholding - The University is required to withhold and pay a tax on income paid to a NRA individual and must make an annual return on Form 1042.

Annual information returns on payments to NRAs, foreign corporations and foreign partnerships are required on Form 1042S. There is never a situation in which Form 1099 is the appropriate form to use in reporting a payment to a non-resident alien.

 

NO TAX WITHHELD

TAXES WITHHELD

WAGES/COMPENSATION
(Employment status based on VISA type)

Recipient’s country of origin has a current tax treaty with the US government (Student required to provide documentation of residency, VISA status & eligibility of employment). For treaty to apply, recipient must submit Form 8233.

Recipient’s country of origin does not have a current tax treaty with the US government.

STIPENDS

Recipient’s country of origin has a current tax treaty with the US government (OSU Business Center required to provide documentation of recipient’s residency and VISA status).

Recipient’s country of origin does not have a current tax treaty with the US government.

TRAVEL & EXPENSE REIMBURSEMENTS

BOTH statements below must be true for reimbursement to be exempt from taxation:

Payment is made to an individual not being contracted through, or being paid while employed by, another institution.
-AND-
OSU Business Center has provided all original receipts for all costs (except per diems, as allowed by current OSU travel policy).

EITHER statement below can be true for reimbursement to be subject to taxation:

Payment is made to a foreign entity or to a private US institution which cannot be proven to have an “accountable plan” per IRS guidelines, for the participation of or services performed by its employee.
-OR-
OSU Business Center is unable to provide original receipts to document expenses to be reimbursed.

SCHOLARSHIPS &
FELLOWSHIPS

Recipient’s country of origin has a current tax treaty with the US government (recipient’s residency and VISA status is verified by data entered on student’s Banner  record)

Recipient’s country of origin does not have a current tax treaty with the US government.

INDEPENDENT CONTRACTOR SERVICE CONTRACTS
ROYALTIES/COMMISSIONS

Recipient’s country of origin has a current tax treaty with the US government and must submit form 8233 with valid US Individual Tax Identification or Social Security number (OSU Busines Center required to provide documentation of recipient’s residency and VISA status)

Recipient’s country of origin does not have a current tax treaty with the US government

 

Documentation Requirements

Form 8233 Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual is used to claim a tax treaty exemption for compensation payments, regardless of whether the individual is an employee or independent contractor. To claim the tax treaties benefit the foreign persons/originations must have US Tax Identification or a Social Security number. The form requires a ten-day waiting period, such that the withholding agent must wait for ten days after mailing the form to the IRS before making a payment to the individual for which no tax is withheld.

Copy of the foreign national’s passport identify page and I-94 must be readable.

Form W-8   Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding

CO-NRA Form– A new CO-NRA form must be filed for every year a non-resident alien is employed.  Central Payroll and the OUS Controllers Division use the CO-NRA to determine a non-resident alien's employee tax status.  Non-resident employees who do not submit a CO-NRA form may be subject to Social Security and Medicare withholding.

Supplemental Information

International Glossary of Terms

Non-resident Alien Form Descriptions

Department and Employee Directory – Non-resident Alien Activities

413-01: NRAs Services and Travel

Fiscal Operations Manual
Section 400: Expenditures
Effective: 03/30/2009
Revised: 12/3/2013

The American Competitiveness and Workforce Improvement Act of 1998 provided the ability to pay reimbursements for expenses and honoraria to international visitors engaged in academic activities. In addition to work authorized visa types, we can now pay visitors in a "B" status. Payments for services are considered taxable income to a foreign national and will be subject to federal income tax unless your visitor is eligible for tax treaty benefits.  In order to file a reduced rate of withholding certificate, they must have a federal tax reporting identification number.

Honorarium Services - Foreign nationals with a B-1, B-2, Visa Waiver Business (VWB), and Visa Waiver Tourist (VWT) may accept a payment for services and/or travel reimbursement under the following conditions:

  • For “usual academic activity or activities” These activities include lecturing, teaching and sharing of knowledge or performance.
  • 9 days or less at OSU.
  • The individual has accepted such payment from no more than 5 educational or research institutions (Including OSU) for the previous 6-month period.

Note: The 9/5/6 rule does not apply to those who are only reimbursed for receipted expenses and not receiving honorariums.

Required Forms necessary to process payment for an honorarium to a Foreign National.

  • Visitors that enter the US with Visa Status B1or a combination of B1/B2will need to submit an International Visitor Data Sheet.
  • Your visitor may apply for an ITIN by mail using Form W-7 .  Start the process early as it can take up to six weeks before an ITIN card will be issued. Note: if the tax treaty benefit is to be applied for an ITIN will be required.
  • Payments for honorariums must be processed as Personal Professional Service Contracts (PPSC). Submit the completed PPSC to Procurement & Contracting Services (PaCS), attach copy of passport and I-94 Visa. Payment will be subject to 30% withholding. It is also important to indicate on the PPSC where the services will be provided (United States or Country of Origin). After contract is approved, submit the following documents to Financial Accounting & Analysis (FA&A) within Business Affairs:
    • copy of the signed PPSC
    • W- 8 (or form 8233 if applicable)
    • Copy of Identification page of the passport
    • Copy of I-94 Departure Card (official documentation of immigration status)
    • International Data Sheet.
    • If your visitor is already in the United States in a J or H status, teaching at another institution or working for another entity: If visitor has H type visa, OSU cannot pay honorarium, can only reimburse travel expenses.  H type visa is tied to the visitor’s sponsored institution.
    • If visitor has J type visa, and the service provided to OSU is in line with service provided to visitor’s institution, visitor must provide a letter of authorization from sponsor’s International Program office, allowing him/her to perform this service for OSU.
  • After services are rendered, send payment request to the appropriate Business Center for approval. The payment will be processed through FA&A.

Caution: US law significantly restricts what employment foreign nationals may accept. Before committing to an honorarium for a foreign national, departments must ensure the person has the appropriate visa that allows such a payment. For short-term visits made for the purpose of delivering a lecture or speech, only certain visa classifications are authorized to accept an honorarium. An individual already in the US may not necessarily be here in the correct visa classification. Do not assume that an international visitor holds the correct visa classification, especially if he or she is already in the US You must look at additional sources of information that could include the individual's passport visa or stamped I-94 card to determine visa classification. 

Travel reimbursements with proper documentation and receipts are not subject to tax withholding - includes airfare, rental car, ground transportation, meal per diems, lodging, etc. (refer to OSU Travel Policy FIS 411  for guidance).

Payment for Services and Travel

Supplemental Information

            Checklist – Payment for Services

            Payments That Can Be Issued to Foreign Nationals

413-02: NRAs Payroll – University Employment

413-02: NRAs Payroll – University Employment

Fiscal Operations Manual
Section 400: Expenditures
Effective: 03/30/2009
Revised: 10/15/2013 

An international student’s employment eligibility is based on the Visa Type he or she holds.  Employment is any work performed or services provided in exchange for money, tuition, fees, books, supplies, room and/or board or other benefit.  A non-immigrant who is permitted to engage in employment may engage only in such employment as has been authorized.  Any unauthorized employment by a NRA constitutes a failure to maintain status, see 8 C.F.R. 214.1(e)

University Employment Types & Required Documentation

CO-NRA form

Determines employees tax status

Submitted upon employment and renewed annually for reporting purposes

W4

State and Federal tax withholding

Submitted upon employment or when changes needed

I-94

Submitted with CO-NRA form (admission/departure record)

Submitted upon employment and renewed annually  for reporting purposes

DS2019/I20

Submitted with CO-NRA form (certification of eligibility)

Submitted upon employment and renewed annually  for reporting purposes

8233/Attachment letter (optional)

To claim a tax treaty exemption

Submitted upon employment and renewed annually  for reporting purposes

Employment Authorization Card (EAD)

Provides holder a legal right to work in the U.S.

Maybe needed upon employment and /or for annual reporting purposes

Student Employment - Federal regulations allow an international student holding a J-1 or F-1 Visa to work for the University a maximum of 20 hours per week during the academic year and full-time during University vacations (8 C.F.R. 214.2(f)(9)(i)).  If a student has more than one University job, total hours cannot exceed 20 hours in any given week during the academic year, unless it is the student’s annual vacation term.  During the vacation term, the student is eligible to work full-time. If a student is unsure whether a particular on-campus job is permissible, he/she should speak with an International Student Advisor in International Scholar & Faculty Services (ISFS) before beginning employment.

If the position meets one of the following conditions, it is considered University employment:

  • It is related to a scholarship, assistantship or fellowship; or
  • It occurs on the premises of the University the student is authorized to attend and it provides a service to OSU students (this includes the OSU Bookstore and fast food restaurants on campus); or
  • It occurs at an off-campus site that is educationally affiliated with Oregon State University’s established curriculum (e.g. Hatfield Marine Science Center and OSU Seafood Laboratory in Astoria).

F-1 and J-1 students must meet these conditions to be eligible for on-campus employment:

  • They must be in good academic standing and in lawful immigration status;
  • They must continue to engage in a full course of study, except for official school breaks and annual vacations; and
  • J-1 students must obtain written approval from the Program Sponsor (listed in Block #2 on the DS-2019) prior to beginning employment.
  • Undergraduate Enrollment Criteria: To be eligible for university employment, international undergraduate students must register for and complete a minimum of 12 credit hours each term during the academic year (8 C.F.R. 214.2(f)(6)(i)(B)).  If a student is registered for less than 12 credits, an approved Reduced Course Load Form must be on file with International Student Advising & Services.

Graduate Student Enrollment Criteria: To be eligible for University employment, international graduate students must register for and complete a minimum of nine(9) credit hours each term during the academic year (8 C.F.R. 214.2(f)(6)(i)(B)).  If a student is registered for less than nine (9) credits, an approved Reduced Enrollment Form must be on file with International Student Advising & Services.

Faculty and Staff Employment - International employees are generally subject to U.S. income tax on their U.S. source income and must complete the W-4 form, which determines how much tax will be withheld from wages.  A number of foreign countries have income tax treaties with the United States, which can often reduce or eliminate U.S. tax on income earned.  Check to see if you are from a tax treaty country. See Business Affairs, Business Center Resources, Training, Payroll, Non-Resident Alien, Tax Treaties for Non-Resident Aliens – 2012.

Pay Non-Resident Alien Payroll

 

Supplemental Information

IRS Notice 1392  Supplemental Form W4 instructions for Nonresident Aliens

Paying Wages to a Non-resident alien (checklist)

 

413-03: NRAs Scholarships and Fellowships

Fiscal Operations Manual
Section 400: Expenditures
Effective: 03/30/2009
Revised: 12/3/2013

Scholarship and fellowship payments are made to assist a person in pursuing a course of study or research.

Taxable income is any money paid to a foreign visitor on which taxes are required to be paid to the US government. The agency that pays the scholarship (OSU) is required to deduct a certain amount from each student’s scholarship or student account to cover the student's estimated tax liability.

Withholding means that the taxes a foreign visitor is obligated to pay to the US government will be taken out of the scholarship check or charged to the student, if the full scholarship payment is made to the student.  OSU collects the withholding taxes by placing a charge ‘NRA Withholding’ on the student’s account and sends the taxes to the IRS as required by law.  The University reports the amount of any scholarship or fellowship monies received by non-resident alien students, as well as, any Federal taxes withheld on IRS Form 1042S “Foreign Person’s US Source Income Subject to Withholding” by the annual March 15th deadline. 

The IRS allows a portion of scholarships and fellowships to be excluded from taxable income.  Scholarship and fellowship payments made to foreign visitors may include a combination of the following:

  • Tuition, fees, books, and course-related materials (non-taxable)
  • Room and board for scholar athletes (taxable)
  • Stipends for living expenses including meals, lodging, and other personal items (taxable)
  • Medical insurance premiums paid to insurance companies (taxable)

Portions of scholarship and fellowship payments that are used for meals, lodging, non-mandatory medical insurance, travel, personal living expenses, or stipends are taxable income unless a specific tax treaty exclusion applies. 

Non-taxable Payments - A qualified tuition reduction (such as GRA/GTA) will not be taxable for those graduate students at an educational institution who perform teaching or research activities for that institution.  In order for the teaching or research activities to lead to a non-taxable tuition reduction, the activities performed must be incidental to the student’s educational endeavors. For undergraduates, a qualified tuition reduction is not taxable, if the reduction is not representative of a payment for services. 

  • A student loan is not considered to be a scholarship because the loan is expected to be repaid. It is generally not taxable.
  • Cash and cash equivalent payments made by a student’s family member or a third party with the intent of settling the student’s debt to OSU are not scholarships and are not taxable.

Responsibilities

  • Students are responsible for completing the proper tax forms and providing them to the University, as well as, notifying the University of any change in their tax status.  Changes in tax status include moving between states, changes in deductions, etc.  Students should also be aware of the various forms they must file with the IRS and their State and local governments each year.  Students should make every effort to keep detailed records of all IRS, INS, State, and local government forms and any other important documentation submitted to the University or to the various governmental authorities.  Students should also keep photocopies of all their important forms/documents in a safe place to avoid future disputes over lost documents. 
  • If the total sum of your US source income was less than the personal exemption you are not required to file IRS Form 1040NR-EZ or Form 1040NR. However, if you had any taxes withheld, you should file IRS Form 1040NR-EZ or Form 1040NR to get a refund of these taxes and you must still file Form 8843.  If you owe taxes and don't file, the IRS can assess penalty and interest plus seize US bank assets for repayment. Fines and penalties can often amount to more than the original tax debt.
  • No one from the University can act as a representative for an individual when dealing with the IRS; however; in the event of a tax question or problem, the University can assist in supplying appropriate supporting documentation for payments made to individuals. 
  • The tax responsibilities of the University arise from its status as a state, non-profit educational institution, as an employer, and as a provider of student financial assistance.  The University is responsible for withholding taxes from paychecks and other taxable payments made by the University to students and for the reporting of information to the IRS and to the various state and local tax authorities in accordance with statutes and regulations. 

Pay a Stipend to Non-Resident Aliens

Supplemental Information

          Fellowship Stipends Checklist

          Certificate of Residency

          Graduate Fellow Appointment Form

413-04: NRAs Foreign Business Payments

Fiscal Operations Manual
Section 400: Expenditures
Effective: 03/30/2009
Revised: 10/15/2013 

If you are paying a Stipend, Payment for Services, or Travel Reimbursement for a foreign individual then you need to use the FIS Policy 413 Non-Resident Aliens.

If your payment needs to be made to a foreign company, foreign business, foreign organization, foreign government, foreign withholding partnership,  withholding foreign trust, foreign private foundation, government of a US Possession, or a foreign central bank of issue then please follow the guidelines in this section on Payments to Foreign business entities.

WARNING: Payers are responsible for requesting a Form W-8 from any of the above business entities that are presumed, or otherwise believed, to be foreign.  The foreign entity is responsible for determining which of the four IRS W-8 forms is appropriate for their business situation.   These forms should be completed and signed only by persons who are authorized to do so and who are knowledgeable as to the operations of their respective business, organization or other foreign entity. 

For payments to be made to foreign business entities (not individuals) use the following procedure:

  • Question 1: Is the payment for products, goods or foreign source services provided outside the US?

If yes, no reporting or withholding is necessary.  The Business Center should collect the appropriate original W-8 form and send that form along with the copy of the vendor invoice to Vendor Maintenance for the vendor set up.  The Business Center will enter payment into Banner with account code 24999. 

If no, it is possible that withholding tax may be mandatory.  The Business Center will collect the original appropriate IRS W-8 form plus any additional documentation required.  A complete list of W8 form types is listed below including information on additional documentation for tax withholding purposes. 

Original W-8BEN - Used primarily by entities and individuals to claim foreign status or treaty benefits and to establish that the payee is not a US entity.

  • Is there a US reporting Tax ID number? 

If yes, then is part II claiming Treaty benefits completed?  If no, then payment is tax exempt if income is covered by an article In the Treaty.

All fields in line 10 must be completed to claim exemption on royalty payments.Send copy of vendor invoice/contract to Vendor Maintenance with the original W-8 form for the vendor set up.  Enter payment into Banner using proper account code.

If there is no US Tax reporting ID number, payment is subject to 30% withholding.  Send vendor invoice/contract to Vendor Maintenance, Business Affairs for the vendor set up. Enter payment into Banner using proper account code. 

Original W-8EXP - Used primarily by the following entities to claim exemption from tax withholding:

Foreign governments, foreign tax exempt organizations, foreign private foundation, govt. of a U.S. Possession, or foreign central bank of issue. 

The entity must be claiming exemption under IRS code 115(2), 501(c) , 892, 895 or 1443(b).  Otherwise they need to file a W-8BEN or W-8ECI.

Original W-8IMY - Used primarily by an intermediary, a withholding foreign partnership, a withholding foreign trust, or flow through entity.  

Copies of appropriate withholding certificates, documentary evidence, and withholding statements must be attached to the W-8IMY as well.

Payment for both of these forms; EXP and IMY, is usually exempt from withholding.   Send copy of invoice/contract to Vendor Maintenance with the original W-8 form for vendor set up.

Original W-8ECI Used primarily by the payee or beneficial owner indicating that all the income that is listed on the form is effectively connected with the conduct of a trade or business within the United States.

If there is a US Tax reporting ID number, the payment is subject to 30% tax withholding unless there is a services income listed on line 9.  In that case payment is exempt from withholding.

Send copy of invoice/contract with Original W-8 to Vendor Maintenance for vendor set up.  Enter Payment into Banner with proper account code. 

If there is not a services income listed on line 9, then we are required to obtain from the entity a different type of W8 form.  Send the invoice/contract with original appropriate W-8 to Vendor Maintenance for vendor set up.  Enter payment into Banner withholding 30% tax using the proper account code. 

If there is not a US Tax reporting ID number on the W-8ECI form, then payment is subject to 30% withholding.  Send Original W8 form plus copy of invoice to vendor maintenance for vendor setup. Enter payment into Banner with proper account code.

Payments to Foreign Entities

414: Revolving Funds

Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 12/09/2010

 

A revolving fund is actually a suspense checking account and may be established when necessary for efficiency.  The establishment of revolving funds must be authorized by the Controllers Division of OUS and approved by the State Treasurer.  Such accounts are operated on an imprest basis, which means that the exact amount of fund expenditures is replaced periodically.  See OUS Fiscal Policy Manual 105.100, Appendix .700: Revolving Fund Checking Accounts.

415: Relocation and Moving

Fiscal Operations Manual
Section 400: Expenditures
Effective: 02/01/1982
Revised: 7/15/2014

When new employees are hired by the University it may be necessary to offer a relocation allowance to employ qualified personnel.  Only Unclassified and Classified employees (C1 and C3 appointments) are eligible to receive reimbursement for relocation and moving expenses.  Appointments other than Unclassified and Classified employees are not eligible to receive these reimbursements. The maximum amount to be paid by the unit must be included in the new employee offer letter.

An OSU Relocation/Moving Agreement must be completed and submitted to Business Affairs prior to expenses being incurred. If expenses will be paid using gift, grant or contract funds, then approval by the Office of Post Award Administration [OPAA] must be obtained on the OSU Relocation/Moving Agreement.

Relocating employees must move at their own expense. They will be reimbursed for non-taxable expenses after a person/vendor record is created for them in Banner FIS. Taxable reimbursements must be processed with actual wages. Therefore, taxable reimbursements cannot be processed until the employee begins working for OSU and has an employee JOB record established in the Banner HRIS module.

Certain payments can be made to a vendor directly on behalf of the employee – see FIS 415-05 Procedures. All payments are subject to taxation whether made to a vendor on behalf of the employee or directly to the employee as a reimbursement.  Taxability is determined by Business Affairs based on criteria set forth in the OUS Fiscal Policy Manual, Section: Fringe Benefits, Moving Expenses 66.200 and Internal Revenue Service Moving Publication 521. This policy meets the requirements of an IRS Accountable Plan.

415-01: House Hunting

Fiscal Operations Manual
Section 415: Relocation and Moving
Effective: 02/01/1982
Revised: 0625/2012

House hunting expenses are those incurred by the employee in the process of finding a temporary or permanent home in the new work location.

See Reimbursements for rates and receipt requirements.  All house hunting expenses are taxable to the employee.

Allowable house hunting expenses include:

  • House Hunting Transportation Between New and Old Location
    • Airfare – up to two round trips (two round trips for one individual or one round trip for two individuals)
      OR
    • Private vehicle mileage – reimbursed at the rate per mile, up to two round trips
      OR
    • Rental vehicle – cost of rental vehicle plus fuel, up to two round trips
  • House Hunting Transportation in Vicinity of New Location:
    • Private vehicle mileage – reimbursed at the rate per mile, up to 200 miles in the vicinity of new location
      OR
    • Rental vehicle – cost of rental vehicle plus fuel
  • Meals and Lodging: reimbursed at a rate up to OUS per diem, up to a total of ten days of meal and lodging expenses for the employee and any household members. Total is combined with moving trips – for example, the employee takes four(4) days for house hunting, they will have six(6) days left to claim for moving.
  • Salary while House hunting: up to ten days, if house hunting occurs after start date (total is combined with moving)
  • Miscellaneous Travel Costs:
    • Transportation to/from the airport
    • Baggage fees

415-02: Temporary Living

Fiscal Operations Manual
Section 415: Relocation and Moving
Effective: 02/01/1982
Revised: 0625/2012

Temporary living expenses are those incurred after the employee’s start date as a result of a temporary living arrangement prior to a permanent home being secured.

See FIS 415-04 Reimbursements for rates and receipt requirements.  All temporary living expenses are taxable to the employee.

Allowable temporary living expenses include:

  • Meals: reimbursed at OUS per diem rate, up to 45 days of meal and incidental expenses for the employee and any household members.
  • Lodging: reimbursed up to OUS per diem rate, up to 45 days of lodging expenses for the employee and any household members.
    • Commercial Lodging – reimbursed at actual cost up to OUS per diem, per lodging receipts
    • Rental Property – Rental fee is prorated on an average daily amount over the 45 day timeframe. 

415-03: Moving

Fiscal Operations Manual
Section 415: Relocation and Moving
Effective: 02/01/1982
Revised: 0625/2012

Relocating, or moving, expenses are those incurred as a result of moving to a new location for employment.

See Reimbursements for rates and receipt requirements.  Certain moving expenses are taxable to the employee.

For new employees teaching summer session only, travel costs for one round trip may be reimbursed when necessary to employ qualified personnel.

Allowable moving expenses include:

  • Moving Transportation Between New and Old Location
    • Airfare – up to two one-way trips
      OR
    • Private vehicle mileage – reimbursed at the rate per mile, up to two one-way trips
      OR
    • Rental vehicle – cost of rental vehicle plus fuel
  • Meals and Lodging: reimbursed at a rate up to OUS per diem rate, up to a total of ten days of meal and lodging expenses for the employee and any household members. Total is combined with house hunting trips – for example, the employee takes four(4) days for house hunting, they will have six(6) days left to claim for moving.
  • Salary while moving: up to ten days, if moving occurs after start date (total is combined with house hunting)
  • Moving personal effects (reimbursed at actual expense):
    • Packing, including packing supplies (boxes, tape, etc) – up to $1,000
    • Commercial moving company
    • Insurance on personal effects
    • Storage – up to 90 days
  • Miscellaneous expenses – up to $1,500 (reimbursed at actual expense):
    • Might include
      • Closing costs
      • Utility hookups
    • Does not include
      • Refundable deposits
      • Household furnishings or décor

415-04: Reimbursements

Fiscal Operations Manual
Section 415: Relocation and Moving
Effective: 02/01/1982
Revised: 05/05/2013

An employee must submit a request for reimbursement of relocation expenses within six months following their start date. Extensions up to six months must be approved in writing by the department head. Any expenses submitted after 12 months are fully taxable.

The total of all employee reimbursements and direct vendor payments are limited to the amount set forth in the offer letter.

Expenses will be reimbursed on a per diem basis for meals and mileage, and up to per diem for lodging. All other expenses will be reimbursed at actual cost, based on receipt requirements. See the OUS Moving Expense Summary Table.

Receipt Requirements -

  • Meals – reimbursed at current per diem rates; no receipts required
  • Mileage – reimbursed at current OUS mileage rate, for the most direct, usually traveled route; use the OUS Mileage Chart within the OUS Fiscal Policy Manual, Travel and Transportation Administration and Expenses 95.100, FIS Ex003-02 Mileage Chart for Cities Outside Oregon, or actual odometer readings.
  • Lodging – lodging receipts are required and must show proof of payment
  • Expenditures reimbursed at cost; appropriate documentation and proof of payment required.

Note: Original receipts and documentation must be retained by the University. Lost receipt affidavits will not be accepted as documentation for expenses.

415-05: Procedures

Fiscal Operations Manual
Section 415: Relocation and Moving
Effective: 02/01/1982
Revised: 08/22/2013

Prior to the Move

Note: Employees are to relocate at their own expense. The maximum amount allowable for reimbursement must be included in the new employee offer letter. 

  1. After receiving the signed offer letter, the OSU Relocation/Moving Agreement   must be signed by the hiring unit and forwarded to the appropriate Business Center for processing. The Business Center must then submit the completed agreement form to Business Affairs, Financial Accounting & Analysis (FA&A) prior to any expenses being incurred. The Agreement can be found on OSCAR.
    1. If expenses will be paid using gift, grant or contract funds, approval by Office of Post Award Administration [OPAA] must be obtained on the OSU Relocation/Moving Agreement. 
    2. If moving expenses include the services of a commercial moving company and total $5,000 or more, a copy of the approved OSU Relocation/Moving Agreement must be submitted to the Business Center Purchasing Department for creation of a Purchase Order no more than 60 days prior to the employee start date. A list of contracted moving companies is maintained on the Procurement and Contract Services’ (PaCS) Buy Orange website. 
  2. The OSU Relocation/Moving Agreement becomes part of the employee’s hiring package and is considered confidential.

After the Move

Reminder: Expenses cannot be reimbursed until the employee has a joint relationship with OSU, which means their employee record has been set up in Banner by Human Resources and Payroll.

Employee Reimbursements

  1. An employee must submit a request for reimbursement of relocation expenses to their Business Center within six months following their start date.
  2. The reimbursement can either be submitted using the Travel Reimbursement Entry System (TRES) or Relocation Expense Reimbursement Form found in OSCAR.
  3. In TRES or on the Relocation Expense Reimbursement Form, detail the relocation process (Who, What, When, Where, Why) and categorize each of the expenses incurred as appropriate (i.e. house hunting, temporary living, moving from old to new location).
  4. Forward the signed TRES/reimbursement form, along with applicable original receipts and documentation to Business Affairs/FA&A.
    Note: If TRES is used to process a relocation reimbursement, transfer the completed T-document to the “Accounts Payable” inbox in the TRES system.
    1. Business Affairs/FA&A will:
      1. Review for appropriateness, account code use and categorize the expenses as taxable or non-taxable, then return the TRES document or Reimbursement form with notes and approval.
      2. Scan all final documents related to the move into Nolij as “Confidential” document type.
      3. Create a Payroll Submission Form and submit taxable expenses for reimbursement to Central Payroll for inclusion on employee’s next payroll check.
  5. Once the TRES or Reimbursement form is reviewed by FA&A and returned to the Business Center, create a Banner invoice for the non-taxable portion of the reimbursement as noted by FA&A. The completed I-document will route through the appropriate approval queues.
    1. To create an invoice from a TRES T-document, click the “Create Invoice” button at the bottom of the TRES form.
    2. If TRES was not used, create an invoice in BANNER using the Invoice Entry Form FAAINVE.

Vendor Payments

Payments made directly to vendors are allowed for commercial moving companies. The appropriate account code to use is 10790- Moving-Employee-Non-Taxable.

Prior approval by FA&A is required for direct billing of other expenses related to relocation, including lodging and airfare. The appropriate account code to use will depend on the taxability of the expense; FA&A will provide assistance in determining the proper account code.

Due to financial risk, if direct billing is used, it should not be done more than 60 days prior to the employees start date.

Direct Vendor Payments

  1. The Business Center will enter an invoice in BANNER. 
  2. The invoice will route through FA&A for approval in BANNER.

AutoPay Vendor Payments

  1. Contact FA&A for prior approval and account code.
  2. Provide proper account code to the vendor when authorizing the expense.