Cell Phone and PDA Pilot Policy

Reasons for New Policy To ensure that the University is in compliance with IRS substantiation requirements (see IRC Sections 274(d)(4) and 280F(d)(4)) To alleviate the significant administrative burden, on both employees and the University, of providing the extensive substantiation required to fulfill IRS reporting requirements

Reasons for New Policy The IRS is auditing higher education institutions, specifically for cell phone / PDA substantiation UCLA and a few universities in Utah are currently being audited Big Ten peers have either already implemented or are in the process of adopting similar stipend programs

IRS Substantiation Requirements The following information must be maintained for each and every call: Time and date of each call Business purpose of each call Explanation of business relationship with all participating parties on each call

Goals To relieve employees and units of the burden of strict IRS substantiation requirements To improve efficiencies throughout the University by processing employee stipends

Cell Phone / PDA Service Options Currently, employees needing cell phone / PDA service for University business purposes may: Receive a University-provided cell phone / PDA; service contract is in the University’s name Use their personal cell phone / PDA. The service contract and the equipment are the property and responsibility of the employee Reimbursements processed through invoice voucher

Electing to Opt In or Out of the Stipend Program Units as a whole elect to either opt-in or opt-out of the program A unit is considered an academic college or an administrative department

Opting-Out By opting-out of the program, the unit is required to maintain the documentation required by the IRS to meet substantiation rules on all University provided phones. Collect reimbursement for listed personal calls Reimbursement requests for employees using personal cell phones / PDAs for business purposes must include all substantiation required by the IRS when submitting reimbursement vouchers to UPAY

Opting-In to the Stipend Program

New Stipend Option No IRS documentation required No need to distinguish between personal and business calls More convenient for employees No need to track calls or carry an extra phone Intended for employees who currently receive regular monthly reimbursements, or currently have a University phone and contract Actual amounts are determined by unit heads and based on substantiated records of prior payments/charges Stipends are paid through Payroll Academic colleges or administrative departments must elect to opt-in or opt-out as a whole Annual review of stipend and form updates completed annually (October) This is a pilot! More details to come regarding processes and procedures through OBFS announcements, including information on stipends for high-speed internet

Equipment In general, employees of those units opting in to the stipend program need to acquire and maintain their own equipment Verizon has agreed to transition University contracts to the employee if requested. A new phone will be provided to the employee. No costs involved for selected models – employee will be responsible for payment of any upgrade in equipment or service. The employee must return the University provided phone to their department for disposal. If employee elects to keep the University-owned equipment, departments must complete “Equipment Loan Form” and keep on file within their department

Transitioning from a University Contract Guidelines will be provided on how to transition from a University contract to a personal contract

Determining a Stipend Amount OBFS will provide criteria to consider when determining stipend amounts Units should use the opportunity to evaluate frequency and level of business need

Exceptions to Stipends If unit has opted-in, but employee does not qualify for a stipend: Occasional personal reimbursement is handled via an exception approved by the unit The unit needs to complete the Exception Form, and attach required IRS substantiation

Termination of a Stipend Stipends should be terminated at the same time services are terminated Stipends are tied to employee’s primary job Recertification and unit authorization is required if employee changes primary job

Tentative Schedule OBFS currently has three groups participating in the pilot program – scheduled to go live in November 2007, December 2007, and January 2008 Training will be provided and scheduled around start dates OBFS is looking for a few more units to participate in the pilot program this spring – volunteers? Anticipated University-wide roll-out date is June 30, 2008 All units should have chosen to opt-in or out of the stipend program by the end of FY09

Points of Contact OBFS – University Payables OBFS – University Payroll OBFS needs your unit’s contact person’s information (name, phone, email). Please provide this information to Sarah Crane at the email address listed below OBFS – University Payables Sandy Ehler, Exec. Director sehler@uillinois.edu 217-265-8129 Jim Martinie, Director martini1@uillinois.edu 217-333-0780 Sarah Crane, Project Mgr. smcrane@uillinois.edu 217-333-0783 OBFS – University Payroll Laurie Pitner, Exec. Director pitner@uic.edu 312-996-1922 OBFS – University Tax Terry Thompson, Director terryt@uillinois.edu 217-333-9062 Carl Patterson, Asst. Director crpatt@uillnois.edu 217-265-6951

Telecommunications Services Urbana Campus Larry Liddle, CITES Manager liddle@uiuc.edu 217-333-8499 Perry Morris, Specialist Comm. Services pcmorris@uic.edu 217-244-6083 Chicago Campus Pat Jacobs, ACCC TeleCom. Operations Mgr. pjacobs@uic.edu 312-996-1016 Springfield Campus Jamie Voyles, ITS Telecommunication Coordinator jvoyl1@uis.edu 217-206-7840