1. Cell Phone and PDA Pilot Policy

2. 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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. Opting-In to the Stipend Program

10. 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

11. 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

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

13. 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

14. 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

15. 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

16. 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

17. Points of Contact OBFS – University Payables OBFS – University Payroll
OBFS needs your unit’s contact person’s information (name, phone, ). Please provide this information to Sarah Crane at the address listed below
OBFS – University Payables
Sandy Ehler, Exec. Director
Jim Martinie, Director
Sarah Crane, Project Mgr.
OBFS – University Payroll
Laurie Pitner, Exec. Director
OBFS – University Tax
Terry Thompson, Director
Carl Patterson, Asst. Director

18. Telecommunications Services
Urbana Campus
Larry Liddle, CITES Manager
Perry Morris, Specialist Comm. Services
Chicago Campus
Pat Jacobs, ACCC TeleCom. Operations Mgr.
Springfield Campus
Jamie Voyles, ITS Telecommunication Coordinator