1 Scholarship and Fellowship Updates for IUB Fiscal Officers (CATS) 10/26/2005 Putting the Pieces Together

2 For the Next 30 Minutes... What do fiscal officers need to know about scholarships and fellowships? How should our office process funding for students? What resources are available to me as a fiscal officer? What resources are available to our students?

3 Key Concepts Scholarship: Funding to assist undergraduate students in the pursuit of a course of study or research, provided those payments or benefits were not made in a “quid pro quo” exchange for the performance of services for the benefit of the University. Fellowship: Similar to “scholarship”, but with these 3 differences: 1. For graduate and professional students. 2. Excludes restricted funding like fee remissions. 3. Requires full-time enrollment, as defined by the IU Registrar. Fee remissions: Funding that is restricted to students’ fees in SIS Student Financials (Bursar system).

4 Use of Object Codes in FIS Be sure to use the appropriate object codes for budgeting scholarships and fellowships. –See the Budget Construction Attachments (Financial Aid section) for allowable object codes: Note: Scholarship and Fellowship expenditures are automatically booked to the correct object codes through SIS. Expenditures are not processed directly in FIS.

5 How to Process Scholarships and Fellowships Student Information System (SIS) – Scholarships and fellowships should be processed through the SIS for enrolled students if the funding falls into one of these categories: Funds restricted to student fees or room/board charges assessed through the campus bursar office. Funds for degree-seeking students that may be used for tuition, mandatory fees, room/board, books, transportation (local or as a part of an Office of Overseas Study Program), or reasonable personal costs while studying at IU.

6 Why use SIS? IU must comply with federal guidelines: Title IV guidelines – any funding that can be used for an enrolled, degree-seeking, domestic student’s cost of attendance must be noted in SIS for “overaward” compliance. IRS guidelines – scholarships and fellowships for enrolled, degree-seeking students should be processed through SIS. Draft policy is under review. Enables IU to provide complete and accurate summary data for mandated state and national reports provided through University Reporting and Research, as well as FMS. Enables IU to claim appropriate Title IV funding for campus-based financial aid programs. Funding is determined in part from total scholarships and fellowships processed through SIS.

7 When to use systems other than SIS Financial Information System (FIS) and Travel Management – Funding for students for purposes other than those listed on the previous slide, should be processed through another appropriate system at IU. Examples include using the FIS to reimburse a student for research expenses, as well as using Travel Management to process travel reimbursements and advances for IU-approved overseas study that is not sponsored by the Office of Overseas Study. Contact your chart of accounts manager for guidance.

8 Policy on Study Abroad in Countries under Travel Warnings Indiana University has a policy that limits the involvement/support from IU for students who choose to study or do research in a country with a U.S. State Department Travel Warning: warnings.shtml. This means that the University cannot provide any funding to these students, including scholarship and fellowship funding. warnings.shtml

9 Does the source of funding matter? Any funding for the benefit of IU degree- seeking students that is administered by IU staff or processed through IU systems must follow the guidelines above. This includes funds processed through the IU Foundation.

10 Fellowships and Mandatory Insurance Students who receive at least $2929 in fellowship funding in an academic-year semester qualify for mandatory fellowship insurance. –Example: Graduate student receives 2 fellowships: $500 and $2430. The sum meets the minimum, so the student qualifies. –If the fellowship is funded from a General Fund Account, the Chancellor’s Office pays the insurance premium. –If the fellowship is funded from a non-general account, that account is assessed a flat fee for the premium: $383 for fall, $684 for spring/summer. –Note: The amounts listed above change annually. Consult the FMS C&G Important Notice on Retirement and Fringe Benefit Rates for annual updates:

11 Tax Withholding for International Students Who Receive Scholarships/Fellowships Nonresident Alien Status –Anyone with a visa entry other than I-9 is treated as a nonresident alien for tax purposes until they provide documentation to the FMS tax office that indicates otherwise or they have met the substantial presence test. Refer to the Indiana University Foreign Visitor Tax Guide for information on tax withholding and reporting requirements for nonresident aliens: asp. asp

12 Resources for the Fiscal Officer Budget Construction Attachment: Financial Aid –Website: Mandatory Fellowship Health Insurance: –Website: udent.html udent.html

13 Future Resources “In the Works” Policy on the Taxation of Scholarships and Fellowships. –Currently in draft form and under review. Campus-wide Scholarship and Fellowship website –To include search capabilities for staff and students. –Will ensure that students see what will help them: information about scholarships for which they can apply. –Based on recommendation from review by National Association of Student Financial Aid Administrators, as commissioned by Art Lindeman.

14 Where to turn with Questions Fellowship policies and procedures: Contact Judy Woodley in the Chancellor’s Office. – or –New Questions may be referred to campus-wide committee chaired by Rozzie Gerstman for review. How to determine if funding for students is “compensation” or “scholarhip/fellowship”: –Contact Kathy Cochard in FMS Tax Office: Scholarship Clearinghouse still provides SIS technical assistance (“help desk”) for offices that process their own scholarships and fellowships:

15 Today’s Presenters Greg Tittelbaugh –Scholarship Clearinghouse, Division of Enrollment Services Rozzie Gerstman –Chancellor’s Office