Financial Services Manual (FIN)

Effective: 5/1/1985

Revised: 3/1/2011

FIN 420–05: Employee Postgraduate Research Stipends/Grants

Purpose

To describe the approval policy for employee postgraduate research stipends/grants being paid from nonsponsored agency/orgs

Source

University policy

Background

The employee postgraduate research stipend/grant is for professional growth of the individual and is to be used only in situations where the individual is not accountable to the university for providing a comprehensive publication of the research results. Employee postgraduate research stipends/grants are specifically prohibited on sponsored agency/orgs because of the inherent accountability requirement to funding sponsors.

Payments for employee postgraduate research stipends/grants are taxable to the recipient. These payments are made with an online Personnel Action Form (PAF) for decentralized units, or by submitting a memorandum to Payroll Services.

Policy

Employee postgraduate research grants are processed as payroll transactions by submitting a memorandum signed by the department chair or other authorized signer to Payroll Services. The memorandum must state that an employee research stipend/grant is being paid and must include the following:

1. the employee’s name and social security number
2. the dollar amount of the grant to be paid

   and

3. the agency/org and position number to be charged.

Payment of these grants as additional compensation results in tax and retirement deductions, as is the situation for all other employee compensation payments.

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Research Expenses

If the recipient of a postgraduate research stipend/grant incurs significant expenses in conjunction with the grant, it may be possible to allocate certain portions of the grant funds to the employee’s department for payment of the expenses directly by ASU. For more information on the process, contact the senior associate vice president for finance and deputy treasurer at 480/965–3601 or the assistant director, tax, at 480/965–8479, before the award of a stipend/grant.

If expenses are paid directly by an employee from the research stipend/grant, the expenses paid in excess of two percent of the employee’s adjusted gross income may be deducted as a miscellaneous itemized deduction on the employee’s annual tax return.

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Restriction

Employee research stipend/grant payments are permitted only on nonsponsored agency/orgs.

Cross-Reference

For information on the responsibilities of the project director for staffing a sponsored program, see the Research and Sponsored Projects Policies and Procedures Manual—RSP 502–01, “Personnel Employed on Sponsored Projects.”

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