Handbook of Operating Procedures 9-9994-PM

General Policy Guideline Statement for Tuition Remission

POLICY MEMORANDUM

The University of Texas at Austin
Executive Sponsor: Vice President for University Operations
October 19, 1989

 


 

Pursuant to Federal guidelines, University Project Directors may authorize changes to a sponsored project account for a student's tuition and required fees provided that all of the following conditions exist:

 

  1. The student is performing research services that are necessary for the completion of the grant/contract objectives. Clerical staff services do not qualify as allowable charges.
  1. The total amount of compensation, including tuition, paid to or for student is reasonable for the services performed. Scholarship payments are not allowable expenditures on most federal research projects because the purpose of the award is research, not instruction. Tuition remission is not a scholarship; it is an alternate form of compensation.
  1. Students working on non-sponsored activities are similarly compensated.

Institutional Guidelines and Procedures:

 

Prior to the initiation of forms to pay tuition from a federally funded project, a budget line item for tuition payments must be established. Generally, if the award is a grant, this may be accomplished by sending a Request for Budget Change to the Contract & Grants accountant in Main Building, Suite 132. On federally funded contracts, a request for budget modification with revised budget and proposed effective date should be submitted through the Office of Sponsored Projects to the sponsoring agency. When this method of compensation is contemplated on future awards, tuition remission should be itemized in the proposal budget.

 

After allowability has been established, a Project Director may authorize tuition remission for a student for work performed that benefits a research project by initiating form BU 107 11/79 AUTHORIZATION AGREEMENT, commonly referred to as a "gray note." Gray note forms are furnished by the Special Billing section of the Bursar's Office which is located in the Main Building , Room 12. Each gray note should be prepared by the department/center and should include the student's name, social security number, the semester covered, the account to be charged, and the preparer's name and phone number. The form should have an authorized signature for the account to be charged. Completed form should be sent to the Bursar's Office. Special Billing (512-471-4473) may be contacted for additional information, including due dates which vary, but are generally as follows:

 

  Pre-Registration Registration
Fall Semester Mid-July Mid-August
Spring Semester Early November Early December
Summer Sessions Late April Late May

 

Other Procedural Information:

 

  1. Tuition and required fees only may be paid. General Property Deposits are not allowed as these are refundable to the student.
  1. Special Billing will send the gray notes to be reviewed by Contracts & Grants for proper account number, allowability of the charge and proposed period of the charge prior to billing the account.
  1. Account Number: The tuition should be charged against a tuition remission budget category which is exempt from MTDC (Modified Total Direct Cost) overhead. In most cases, on federal accounts (26-01xx-xxyy thru 26-39xx-xxyy), these changes should be against the "71:Tuition and Fees" subaccount.
  1. Dates: The semester for which tuition is being paid must be totally within the funding period of the grant/contract. Tuition cannot be paid for a semester in which the grant expires unless there will be an extension of that project.

If a gray note is prepared against an unallowable account, the project director will be responsible for providing an appropriate source of funds.

 

  1. The gray notes will be reviewed in the Bursar's Office for availability of funds and authorized signatures.

 

Previously PM 8.203