Cellular Device Business Expenses FAQ

1. What if it costs $100.00 in fees and penalties to change the owner of the cellular contract from my department to the individual employee? What should we do?

   Departments are encouraged and expected to implement this policy change immediately. The five most prevalent cellular providers (Cingular, Midwest Wireless, Sprint PCS, Verizon Wireless, Unicel) have stipulated that there would be no charge for the transfer of the ownership. If, however, the employee's cellular service is from one of the "other" companies and there is a fee for the transfer, the department can choose to delay the transition until the existing contracts expires or no later than 12/31/06. All other transfers are expected to take place by 6/30/06.

2. How were the monthly supplemental amounts determined?

   Samples of reimbursement documents and direct payments to cellular carriers were analyzed to determine the average monthly business expenses for cell phones and PDA's. In addition, the major cell phone carriers were contacted to obtain their plan costs. Taking into account that the supplemental compensation is taxable compensation to employees, it was determined that these amounts would fairly compensate most employees for their cellular business expenses.

3. What happens if the supplemental compensation amount specified does not fully cover all of an employee's monthly cellular expenses. What happens with the difference?

   At this time, considering that the individual's cellular bills are typically a mixture of business and personal calls, it has been determined that in the majority of cases, the amount allowed by policy is sufficient to meet the mobile telecommunication needs of the University. As a result, employees are expected to absorb any expenses that exceed their supplemental compensation allowances. In other words, employees who receive supplemental compensation cannot also receive reimbursements.

4. How do I document the telephone usage when the augmentation is a fixed amount that might be over or under the actual usage, depending on the month?

   The policy does not require employees to document their monthly usage or turn in their monthly bills. However, the supplemental compensation augmentation must be reviewed, renewed and approved annually. At such time, the supervisor or manager should require copies of at least the last two months of cell phone bills in order to determine the level of business use and the on-going business need for the augmentation.

5. I currently have a cell phone that was purchased by University funds. Assuming that I would qualify for the monthly augment, will ownership of the phone change to me?

   Effective with the policy change, if the university paid for the equipment, the department will decide the proper disposition of the equipment. If the department decides that the equipment should remain with the employee, the employee will become solely responsible for the equipment. All maintenance, up-keep, changes, repairs, losses, etc., are the employee's responsibility.

6. My business call volume (expenses) is routinely greater than the augmentation amounts per month. May I choose instead to get reimbursed for actual business calls instead of receiving the supplemental compensation?

   No, if your position responsibilities require you to be accessible by cellular phone as stipulated in the policy, you will receive an augmentation. You cannot choose another option.

7. I currently have a blackberry that was purchased with University funds. When it's time to replace this piece of equipment, can the department purchase a new one for me?

   The policy discourages departments from paying for cellular or cellular PDA equipment. Employees who are eligible for supplemental compensation are expected to absorb the cost of the equipment.

8. Can an employee have a pager and a cell phone?

   Yes, it is determined that a pager serves a different purpose than a cell phone and the pager cost is minimal.

9. Are cable, Internet, DSL or wireless laptop business expenses covered by this policy?

   No, it was determined that these types of expenses were different enough from cellular communication expenses and should be addressed outside of this policy.

10. My position requires me to have a cellular PDA. There is a certain amount of technical support necessary to configure PDA's to be compatible with the University's systems. Is the department's technical support personnel allowed by this policy to provide this service?

    If a department authorizes the monthly supplemental compensation for PDA's, it is recommended that the department also provide the technical support necessary to set up the device for the University's IT environment.

11. With the implementation of this policy, it is determined that a current department owned cellular phone used by one employee is no longer needed and the contract is not expiring anytime soon. Who pays for the cancellation fee that maybe imposed?

    Depending on the circumstances, the department can decide:

    1. To cancel the services and pay the cancellation fees, OR
    2. To take possession of the phone and use it as a departmental cellular phone (to be used by multiple employees), assuming the business need meets the criteria set forth in the policy.

    These situations need to be addressed on a case by case basis by the departments.

12. If the employee applied for their own phone initially, how do the transfer procedures affect them?

    No transfer is necessary for cell phones that are already in the employee's name and where the University receives/pays the bills. Departments should discontinue paying for the individual phone bills. The employee should notify their cell phone provider of the billing address change only if using a University address.