The following are guidelines to assist with the proper initiation of payments for faculty development and study grants, and fellowships. In some situations, the payments will be taxable to the faculty member.

• The cost of attendance and participation in institutes, conferences, seminars, workshops, and other professional experiences should be charged to travel. University travel rules and regulations will apply. There are no income tax considerations.

• Grants for a course taken by a faculty member which are paid directly to the university where the faculty member is enrolled should be charged to object code 3901. Supporting documentation for the purchase request to pay the university should include an invoice from the university, a fee schedule and proof of attendance, etc. There are no tax considerations for taking a course that is business related or required by the employer (NC A&T). However, if a series of courses are being taken to obtain an advanced degree, the payments would be considered taxable to the individual and should be paid through the payroll process via a PD105.

• Cash awards to faculty members where costs are not documented must be paid on the payroll via a PD105 charged to line 1599 - Other Personnel Payments. Appropriate taxes, but not retirement, will be withheld.

• Any payments made to a faculty member for a graduate level course which leads to a graduate or professional degree is taxable, and should be paid on the payroll via a PD105 whether or not the costs are documented. This includes grants and fellowships from an outside agency if a condition for receiving the award relates to the faculty member's employment status with the University.