Consistent with OMB Circular A-21, all eligible GSRs will receive nonresident tuition remission regardless of the funding source of their appointment. The cost of the nonresident tuition remission is based on the rate of nonresident tuition applicable during the term of a qualifying appointment as a GSR, as determined by the Board of Regents and published by the UC Davis Office of Resource Management and Planning. The cost of nonresident tuition remission is charged as a direct cost to the fund source that supports an eligible GSR's salary.

In the event of multiple GSR appointments collectively greater than or equal to 25% FTE, charges are prorated among the fund distributions in the same proportion as the salary charges.

In the event that a nonresident GSR has a fellowship, traineeship, or other external award that specifically allocates award funding for the payment of tuition and/or fees, the amount allocated is the primary source for the payment of fees and/or tuition. Any remaining obligation for fees and/or tuition will be charged as a direct cost to the source of funds providing the GSR's salary.

Exceptions

Principal investigators, with the written permission of their graduate program, may charge the nonresident tuition benefit to the graduate block grant or another suitable non-federal funding source under the following circumstances:

1. If the granting agency considers nonresident tuition to be an allowable expense, then NRTR must be charged to the fund source that provides the GSR's salary. This category includes most federal agencies such as NIH and NSF. For proposals submitted prior to October 1, 2003, the NRTR expense may be diverted to another fund source under the control of the hiring unit or the student's graduate program (i.e., block grant, gift account, research and education fund, indirect cost return fund, etc.) provided that fund allows the NRTR charge. These NRTR charges may not be diverted to another sponsored program fund source; NRTR charges must be based on the effort and salary allocated to a sponsored award.
2. If a GSR is hired on General Funds (199XX), he or she is entitled to receive NRTR. However, NRTR may not be charged to State General Funds (19900). Units that choose to hire nonresident GSRs on 19900 funds must request to have the NRTR expense diverted to an alternate fund source under the control of the hiring unit (e.g., block grant, gift account, research and education fund, indirect cost return fund, etc.) that allows the NRTR charge. If units only have State General Funds available, they will need to request Office of Graduate Studies approval to hire a GSR with NRTR. Once the hire is approved, the NRTR expense will be diverted to University General Funds (19933), as NRTR may be charged to this funding source. To fund the NRTR cost, the hiring unit's General Funds (19900) Sub 3 budget will be reduced by a corresponding amount.
3. If a granting agency or if a specific fund source does not permit nonresident tuition to be charged, the NRTR charge must be diverted to a program-controlled fund source where NRTR is allowable (i.e. block grant, gift account, research and education fund, indirect cost return fund, etc.). Information regarding agencies that do not permit payment of nonresident tuition is available from the Sponsored Programs Office. Most prominent on this list are awards from state agencies (CalTrans, California Water Resources Board, etc.) and some USDA awards (structured as cooperative agreements).
   
4. If a student is hired as a GSR on a non-federal fund source and the budget is insufficient to fund NRTR, that expense may be diverted to another non-sponsored fund source where NRTR is allowable (i.e., block grant, gift account, research and education fund, indirect cost return fund, etc.).
   

Under no circumstances should a GSR's hiring authority assume without consultation that block grant funds will be available from the GSR's graduate program to fund nonresident tuition remission. Use of a graduate program's block grant funds to fund this benefit requires the prior written authorization of the program chair.

Emergency Fund

Provost Hinshaw has established an emergency fund to assist faculty during the three-year transition (2004-2007) to full implementation of the nonresident tuition remission policy. During this period, principal investigators may request funding for nonresident tuition for a GSR when it is not practical or possible to rebudget extramural funds for NRTR, or a nonresident GSR is employed on an extramural funding source that prohibits NRTR as a matter of written policy. These are the same conditions under which Block Grant funds can be used to substitute for research grant funds. The emergency fund is generally to be used when no other funds sources (including Block Grants) are available for NRT remission. The emergency fund is managed by Graduate Studies, and its use requires prior approval by that office.

Procedures for Substitution of Fund Source

The hiring unit completes the hiring process in the usual manner. The nonresident tuition remission charge will initially post to the same fund source as is providing the GSR’s salary. Diversion of that charge to an alternative non-federal fund source, Block Grant, or the emergency fund is made by completing the substitution request form. If an alternative, non-federal fund source is to be used, the substitution does not require graduate program approval and the request form can be submitted directly to Graduate Studies. If Block Grant funds will be used to pay the nonresident tuition charge, the hiring unit certifies that no other non-federal funds are available to provide the NRT remission, then submits a written request to substitute Block Grant funds to the GSR’s graduate program by the beginning of the 3rd week of the quarter. If approved by the GSR’s graduate program, the endorsed request is submitted by the graduate program to Graduate Studies by the beginning of the 4th week of the quarter. The same process is followed to request substitution from the emergency fund, except that the graduate program certifies that no Block Grant funds are available in this case. Once the hiring unit and graduate program have endorsed the form as appropriate, it is forwarded to Graduate Studies for approval.

Diversions will be processed by Graduate Studies and Accounting & Financial Services staff using an automated journal entry system, based on the diversion request forms that are submitted and approved.

Note: the NRT charge must not be entered through GradTrack$ at the graduate program level. The expense will post to the program's Block Grant as a result of the journal entry. GradTrack$ is being modified to update automatically. Under no circumstances should a GSR's hiring authority assume without consultation that Block Grant funds will be available from the GSR's graduate program to fund nonresident tuition remission. Use of a graduate program's Block Grant funds to fund this benefit requires the prior written authorization of the program chair and the Office of Graduate Studies.

Changes in the Implementation Procedure, Directive 05-029

UC DAVIS: ACCOUNTING & FINANCIAL SERVICES and GRADUATE STUDIES

DEANS, DIRECTORS, DEPARTMENT CHAIRS AND ADMINISTRATIVE OFFICERS

February 17, 2005

RE: Changes in Nonresident Tuition Remission Implementation Procedures

Dear Colleagues:

As you know, the campus implemented a new policy for nonresident tuition remission (NRTR) for Graduate Student Researchers (GSRs) effective Fall Quarter 2004. All nonresident GSRs appointed at 25% time or more now receive NRTR as a benefit of their appointment. Recognizing that there would be some cases in which research funds from existing grants would not be adequate to support this new cost, the campus also established a diversion process whereby the NRTR charge could be diverted to another account (block grant, emergency fund or other departmental funds). The diversion process required a paper approval form and entry of the data in a DaFIS account maintenance document by the hiring unit.

Our experience through Fall Quarter indicates that hiring units need greater flexibility in the diversion process than we initially anticipated. In order to provide campus units with the flexibility they need, we will cease to use the DaFIS account maintenance document for NRTR diversions effective immediately. All existing account maintenance documents for NRTR diversions have been removed from DaFIS. Future diversions can be requested by completing the revised form as before(http://www.gradstudies.ucdavis.edu/nrt3/subnrt.pdf) and submitting it to Lisa Finnegan in the Office of Graduate Studies. Please note that this form can now be filled in electronically, printed, and mailed to Graduate Studies. Furthermore, diversion request forms submitted previously do not need to be submitted again.

Most DaFIS account ledgers for October through December have been corrected to show the NRTR charges for Fall Quarter. The remaining Fall Quarter and all January charges will be correct on the February ledgers. For Winter Quarter and beyond, diversions will be processed by Graduate Studies and Accounting and Financial Services staff using an automated journal entry system based on the diversion request forms that are submitted. Monthly ledgers will then be current and correct.

We sincerely appreciate your patience as we implement these modified NRTR procedures. The new process will be simpler for staff in graduate programs and hiring units, and will provide more accurate and timely accounting information in the future.

Please contact Lisa Finnegan (530-752-8864) in the Office of Graduate Studies if you have any questions regarding this request.

J. Michael Allred
Associate Vice Chancellor - Finance/Controller

Jeffery C. Gibeling
Dean - Graduate Studies

05-029