State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2000-043

  DATE:
  July 25, 2000

  TO:
  Accounting Officers
  Employee Relations Officers
  Personnel Officers

  FROM:
  Department of Personnel Administration
  Labor Relations Division

  SUBJECT:
  Accounting Procedures - State Registered Nurses 
  Scholarships

  CONTACT:
  Franklin C. Marr, Labor Relations Officer
  (916) 324-0476, CALNET 454-0476
  FAX: (916) 322-0765
   
  Email: FrankMarr@dpa.ca.gov


  PML (#2000-028) recently announced the establishment of the 
  new "State Registered Nurses Scholarship Fund" that is 
  available to employees represented by Bargaining Unit 17.  
  Because these scholarships may be used to cover expenses 
  related to attaining a college degree, other than tuition 
  and educational supplies, they are considered taxable 
  income by the Internal Revenue Service (IRS) and must be 
  reported as such on the employee's W-2 with appropriate 
  taxes withheld.  Accordingly, employing departments will 
  need to issue the scholarships that are awarded by the 
  Registered Nurses Scholarship Advisory Committee (RNSAC) 
  through the payroll process.  Departments will be 
  reimbursed from the Scholarship Fund that is maintained by 
  the Department of Personnel Administration (DPA).
  
  It is anticipated that the first scholarships will be 
  awarded in July 2000.  Scholarships are awarded 
  incrementally upon proof of enrollment and upon successful 
  completion of term coursework.  The following procedure has 
  been established to ensure that the scholarship awards are 
  properly identified to departmental accounting offices and 
  to ensure that reimbursements are issued promptly by DPA.
  
  The DPA representative on the RNSAC will notify the 
  employee's departmental personnel and/or accounting office 
  of the scholarship award(s) by memorandum (sample 
  attached).  The notification will specify the amount of the 
  award(s) and the earliest authorized release date(s) for 
  the funds.  A copy of this notification will be provided to 
  the DPA accounting office at the time it is issued to the 
  departments.
  
  Upon issuing the scholarship funds to the employee, 
  departmental accounting offices should bill DPA's 
  accounting office using standard invoicing procedures and 
  forms.  The invoice must include a list of employees' names 
  and corresponding amounts for which reimbursements are 
  being requested, preceded by the following statement:
  
  "This is a request for reimbursement for 
  scholarship(s)awarded to employees per the Bargaining Unit 
  17 contract.  In order to comply with IRS requirements, the 
  following individuals(s) have been paid directly by our 
  department via the payroll system.  Reimbursement is now 
  requested from the Department of Personnel Administration 
  for scholarship payments made to the following employees:"
  
  The invoice should be submitted in triplicate to:
  
  Department of Personnel Administration
  Accounting Section
  1515 S Street, Suite 400 North
  Sacramento, CA  95814
  
  Attn: Kay Campbell
  
  The Scholarship Fund sunsets on June 30, 2001.  All monies 
  remaining in the fund after that date revert to the State's 
  General Fund and can no longer be accessed by DPA.  
  Accordingly, all scholarship awards must be processed by 
  DPA on or before June 30, 2001. 
  
  Questions regarding the accounting procedures may be 
  directed to Kay Campbell, DPA Accounting Administrator, at 
  (916) 327-8487 or CALNET 467-8487.
  
  All other questions regarding the State Registered Nurses 
  Scholarship may be directed to me at (916) 324-0476 or 
  CALNET 
  454-0476.
  
  
  
  Franklin C. Marr
  Labor Relations Officer
  Unit 17 
  
  
  SAMPLE
  State of California
  
  M E M O R A N D U M
  
  Date:  July 25, 2000
  
  To:  Accounting Officer
       Department of Public Services
  
  From:  Department of Personnel Administration
         Labor Relations Division
  
  Subject:  Registered Nurse Scholarship Award
  
  
  The individual(s) listed below has been awarded a 
  scholarship under the provisions of the Bargaining Unit 17 
  collective bargaining agreement.  Registered Nurse 
  Scholarship Awards under this program are considered 
  taxable income by the Internal Revenue Service (IRS) and 
  must be reported on the employees W-2 with appropriate 
  taxes withheld.  Consequently, employing departments must 
  issue the scholarship awards through the payroll process.  
  Departments will be reimbursed from the Registered Nurse 
  Scholarship Fund maintained by the Department of Personnel 
  Administration. Please refer to Personnel Management 
  Liaison (PML) Memorandum #2000-043, dated July 25, 2000.
  
  These scholarships are provided incrementally, upon proof 
  of enrollment and upon successful completion of each 
  academic session.  Accordingly, the same employee will be 
  receiving more than one scholarship check over the fiscal 
  year.  
  
  
  Employee Name 
    Harold Jones 
  Social Security #
    999-88-7777 
  Amount of Award
    $800 
  Date of Award
    7/15/00
  
  Employee Name
    Cynthia Thompson
  Social Security 
    777-66-5555
  Amount of Award
    $1000
  Date of Award
    7/30/00
  
  Employee Name
    Ku Vuong
  Social Security 
    666-55-4444
  Amount of Award
    $500 
  Date of Award
    9/01/00
  
  
  Please contact me at (916) 324-0504 if you have any 
  questions regarding the above listed scholarship award(s). 
  
  
  
  Franklin C. Marr
  Labor Relations Officer
  RN Scholarship Committee Chair
  
  cc:  Kay Campbell
         Accounting Administrator
         Department of Personnel Administration
  
  SAMPLE