1. Cell Phone and Internet Stipend Program For Employees (TRANSITION EMPLOYEES)

2. Stipend Program Steering Committee Towana Moore Associate VP of Business Services 540 568 2535 e-mail: mooreth@jmu.edu mooreth@jmu.edu John Knight AVP, Finance 540 568 6433 e-mail: knightjf@jmu.edu knightjf@jmu.edu Dale Hulvey AVP, Information Technology 540 568 706 e-mail: hulveydb@jmu.edu hulveydb@jmu.edu Jill Eckard Director, Payroll Services 540 568 3402 e-mail: eckardjs@jmu.edu eckardjs@jmu.edu Michael Woolman Director, Telecommunications 540 568 3119 e-mail: woolmamh@jmu.eduwoolmamh@jmu.edu Norma Burkholder Telecommunications 540 568 3484 e-mail: burkhonj@jmu.eduburkhonj@jmu.edu Roya Edelstein Telecommunications 540 568 6561 e-mail: edelstrx@jmu.eduedelstrx@jmu.edu Kathy Pitts Telecommunications 540 568 6108 e-mail: pittskt@jmu.edupittskt@jmu.edu Susan Dean Telecommunications 540 568 6471 e-mail: deansj@jmu.edudeansj@jmu.edu

3. Let’s talk about the Stipend Program... Because of business need, some employees currently have wireless phone service and/or internet through the university. The service is currently being paid for by Because of business need, some employees currently have wireless phone service and/or internet through the university. The service is currently being paid for by their department. Starting with the Division of Administration & Finance, employees will now transition from university accounts to personal accounts and the new Stipend Program. Starting with the Division of Administration & Finance, employees will now transition from university accounts to personal accounts and the new Stipend Program.

4. How will the stipend be determined? A stipend amount will be carefully chosen from the list of pre-determined stipend amounts by management. Amounts will be based on current usage, business need, etc. A stipend amount will be carefully chosen from the list of pre-determined stipend amounts by management. Amounts will be based on current usage, business need, etc. The amount will be placed on the employee’s paycheck and will appear semi-monthly. The amount will be placed on the employee’s paycheck and will appear semi-monthly.

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

6. Reasons for New Policy The IRS is auditing higher education institutions, specifically for cell phone/PDA substantiation. The IRS is auditing higher education institutions, specifically for cell phone/PDA substantiation. -Several universities nationwide are currently being audited by the IRS. - Many universities across the nation have already implemented or are in the process of adopting similar stipend programs.

7. IRS Substantiation Requirements Under the current IRS regulations, the following information must be maintained for each and every call: Under the current IRS regulations, 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

8. Goals of the Stipend Program To relieve employees and departments of the burden of strict IRS substantiation requirements To relieve employees and departments of the burden of strict IRS substantiation requirements To improve efficiencies throughout the university by processing employee stipends To improve efficiencies throughout the university by processing employee stipends To give employees more options when choosing service and equipment other than state contract. To give employees more options when choosing service and equipment other than state contract.

9. Why Stipends? Should the university continue with our current programs, departments would be required to maintain the documentation required by the IRS to meet substantiation rules on all university wireless phones. Should the university continue with our current programs, departments would be required to maintain the documentation required by the IRS to meet substantiation rules on all university wireless phones. To comply with current IRS rules, employees would need to meet monthly with supervisors to separate business and personal calls, along with documentation of time, date, and business relationship of each business call. To comply with current IRS rules, employees would need to meet monthly with supervisors to separate business and personal calls, along with documentation of time, date, and business relationship of each business call. The employee would be responsible for reimbursing the university the percentage of personal calls from their monthly bill plus any overages. The employee would be responsible for reimbursing the university the percentage of personal calls from their monthly bill plus any overages. The time and effort to process IRS documentation would be extremely cost prohibitive to the university. The time and effort to process IRS documentation would be extremely cost prohibitive to the university.

10. Stipend Program Stipend Program The stipend program is designed to pay the business use portion of your bill, given that wireless phones and internet services are currently being used for both business and personal use.

11. Advantages to Stipend Program: No IRS documentation required No IRS documentation required No need to distinguish between personal and business calls No need to distinguish between personal and business calls No need to carry two cell phones No need to carry two cell phones Employees may choose any vendor (no longer required to stay on state contract) Employees may choose any vendor (no longer required to stay on state contract) Employees may move (port) their business phone numbers to their personal accounts Employees may move (port) their business phone numbers to their personal accounts Stipends are paid through Payroll Services Stipends are paid through Payroll Services

12. Stipend Amounts Voice Plan Level 1$50.00 Voice Plan Level 1$50.00 Voice Plan Level 2$65.00 Voice Plan Level 2$65.00 Voice Plan Level 3$80.00 Voice Plan Level 3$80.00 Data Package$20.00 Data Package$20.00 Text Messaging$ 5.00 Text Messaging$ 5.00 Cell Other $(VP Approval Required) Cell Other $(VP Approval Required) Internet Package $55.00 Internet Package $55.00 Internet Other $(VP Approval Required) Internet Other $(VP Approval Required) Stipend rates will be periodically reviewed. Stipend rates will be periodically reviewed. Stipend will be considered taxable income to the employee. Stipend will be considered taxable income to the employee. Tax considerations have been taken into account when determining stipend levels. Tax considerations have been taken into account when determining stipend levels.

13. Equipment Employees who currently have university cell phones may use their existing equipment, however, equipment must be returned upon leaving the university. Employees who currently have university cell phones may use their existing equipment, however, equipment must be returned upon leaving the university. Employees entering the Stipend Program for the first time will need to acquire and maintain their own equipment. Employees entering the Stipend Program for the first time will need to acquire and maintain their own equipment. If employee moves to a new vendor when transitioning from their university account to their personal account, new equipment will need to be purchased. University equipment will need to be returned to Telecommunications. If employee moves to a new vendor when transitioning from their university account to their personal account, new equipment will need to be purchased. University equipment will need to be returned to Telecommunications. Replacement, upgraded, damaged or broken phones will also need to be returned to Telecommunications. Lost phones will need to be reported. Replacement, upgraded, damaged or broken phones will also need to be returned to Telecommunications. Lost phones will need to be reported. As before, cellular devices may not be purchased using the JMU Small Purchase Credit Card. As before, cellular devices may not be purchased using the JMU Small Purchase Credit Card.

14. Service When transitioning from a university account to a personal account, employees should consider choosing a plan that will incorporate the amount of minutes that will be used for business and personal calls. When transitioning from a university account to a personal account, employees should consider choosing a plan that will incorporate the amount of minutes that will be used for business and personal calls. When transitioning from a university account to a personal account, a new contract will be required from the vendor. When transitioning from a university account to a personal account, a new contract will be required from the vendor. Vendors will require credit checks. Vendors will require credit checks.

15. Departmental Provided Cell Phones There may be instances where a cell phone has multiple users and may be deemed a departmental phone. (Ex: On-call phone) There may be instances where a cell phone has multiple users and may be deemed a departmental phone. (Ex: On-call phone) A departmental phone must not be used by or assigned to a specific individual. A departmental phone must not be used by or assigned to a specific individual. The department is responsible to review monthly billing statements for departmental phones to confirm the usage charges are for business purposes. The department is responsible to review monthly billing statements for departmental phones to confirm the usage charges are for business purposes.

16. How will stipends be determined? Approval for a cell phone stipend will be granted in writing by the Senior Vice President. Approval for a cell phone stipend will be granted in writing by the Senior Vice President. Departments should use this opportunity to evaluate current use and level of business need. Departments should use this opportunity to evaluate current use and level of business need. The employee’s management will choose stipend amount from options listed; amount will be based on business need. The employee’s management will choose stipend amount from options listed; amount will be based on business need. Cell phone and internet stipends will be based on one or more of the following criteria: Cell phone and internet stipends will be based on one or more of the following criteria: - Safety - Required to be contacted on a regular basis - Required to be on-call - Essential personnel - Critical decision maker - Job function requires home or off-campus access to the Internet of university data services. - Other (please provide justification)

17. Termination of a Stipend If the employee resigns, is terminated, transfers departments, or no longer qualifies for a university stipend, a PAR Form must be submitted to Payroll Services to discontinue If the employee resigns, is terminated, transfers departments, or no longer qualifies for a university stipend, a PAR Form must be submitted to Payroll Services to discontinue the stipend. Because a stipend is based on primary job, VP approval and recertification is required if employee changes primary job. Because a stipend is based on primary job, VP approval and recertification is required if employee changes primary job.

18. JMU Billing Information Due to lag time in monthly billing and call detail from vendors, JMU departments will continue to receive billing for two to three months after transitions take place.

19. Some information about porting... The term “porting” a wireless number means to keep your existing wireless number and move it to another vendor. The term “porting” a wireless number means to keep your existing wireless number and move it to another vendor. The employee may port (move) their existing business number to their personal account. The employee may port (move) their existing business number to their personal account.-OR- The employee may disconnect their business number and keep their existing personal number. The employee may disconnect their business number and keep their existing personal number. Porting a number may take the vendor several hours to several days. Porting a number may take the vendor several hours to several days. By agreeing to the stipend, employees will agree that their wireless number may be distributed for business use. By agreeing to the stipend, employees will agree that their wireless number may be distributed for business use. A Porting Form will be provided. A Porting Form will be provided. If possible, please bring a copy of your personal cell phone bill when you meet with Telecom. If possible, please bring a copy of your personal cell phone bill when you meet with Telecom. Vendors may ask for the following information from employees to coordinate porting: Vendors may ask for the following information from employees to coordinate porting: - Name on personal account - Account number - Social Security Number - Driver’s license number and expiration date - Telephone number - Home billing address

20. How will the cell phone and internet transition process work?

21. STEP 1 Stipend Program will be presented to Supervisors.

22. STEP 2 Stipends will be determined by management. A Supervisor Worksheet & Employee Agreement will be completed for each employee receiving a stipend.

23. STEP 3 During the transition period, management will distribute a copy of the Supervisor Worksheet and Employee Agreement to the following: to the following: 1. Supervisor 2. Telecommunications

24. STEP 4 Supervisor will fill out the PAR Form. Once the stipend begins, employee will see ½ of their stipend amount on each semi-monthly paycheck.

25. STEP 5 Stipend Program will be presented to Employees.

26. STEP 6 1. Supervisor meets with employee to review stipend and dollar amount and employee signs agreement. 2. Supervisor directs the employee to contact JMU Telecommunications to move their business account to a personal account.

27. Help during the transition... Telecom staff will help each employee through the process of transitioning from their JMU account to a personal account. Telecom staff will provide information regarding: Vendor discounts Vendor discounts Equipment Equipment Service plans Service plans Porting numbers Porting numbers Billing Billing

28. Cell Phone Transition Contacts: Cell Phone Transition Contacts: For additional information, questions, or comments, please contact JMU Telecommunications. We are here to help! Cell Phone Transfer Information Susan Dean, JMU Telecom, 568-6471, deansj@jmu.edu deansj@jmu.edu Roya Edelstein, JMU Telecom, 568-6561, edelstrx@jmu.edu edelstrx@jmu.edu Cell Phone Billing, Call Detail, and Internet Transfer Information: Norma Burkholder, JMU Telecom, 568-3484, burkhonj@jmu.edu burkhonj@jmu.edu Kathy Pitts, JMU Telecom, 568-6108, pittskt@jmu.edu pittskt@jmu.edu