Procedures for Processing Scholarship and Award Requisitions
Department’s process scholarship or award requisitions. The requisitions should be sent to the Controller’s Office at least three weeks prior to the scholarship/award notification date. The requisitions are disseminated to the appropriate individuals in the Controller’s Office who are responsible for reviewing the charges, signing-off on the requisitions, and processing the transactions. Donor or funding source documentation determines whether the payment to the student is a scholarship or an award. The Controller’s Office individual handling the requisition will indicate, on the requisition, the status and method of the payment (i.e. P/R or A/P). The following is a brief explanation regarding the taxability of scholarships and awards and additional internal procedures for the processing of them.
- Scholarships are not taxable to the students. Scholarships are treated as financial assistance and must be included in the aid package of the student. The requisition is sent to the Financial Aid Director to be processed through the financial aid system. If there is a credit balance on the student’s account, a refund will be requested and processed through the Student Fees area.
- Awards are taxable to the students. The requisition is sent to the Financial Aid Director for the student’s resource and needs determination. The requisition is returned to the appropriate individual in the Controller’s Office. The Payroll Department is then contacted to determine the following:
- If the student is on the University payroll system, the requisition is forwarded to the Payroll Office. The student will be paid through student payroll on the next pay date and the appropriate taxes are withheld from that student’s award amount. The payroll general ledger sub-code charged is #5705.
- If the Department wants to present the award at a banquet and the student is being paid through student payroll, the Department should present the student with a certificate indicating the award amount and notifying them that the award amount will be included on their next paycheck.
- If the student is not on the University payroll system, the requisition is forwarded to Accounts Payable for processing. The Department should have the student complete an IRS Form W-9 and forward it with the requisition. Accounts Payable will mark the student as a “1099 Vendor” and at year end will complete the appropriate tax forms as necessary. The general ledger sub-code charged is #6170.