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SECTION 24: Payments/Reimbursements to Students

Last updated: June 2021
  1. General
  2. Student Employees
  3. Non-Employee Payments

I. General

This section outlines the policy and procedure for payments to students from University funds.

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II. Student Employees

Per MBP Section 55, all University students compensated for services rendered must be paid through the Payroll department. See Section 55 for additional requirements and procedures for processing payments through the Payroll Department.

Reimbursement to students connected to their employment is covered under Sections 70 and 75.

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III. Non-Employee Payments

  1. Payments to students for academic pursuits or achievement.

    Please refer to the Office of Financial Aid’s (OFA) Institutional Awards Policy. Per OFA’s policy, non-employee payments to students for academic pursuits or achievement above certain de minimis levels must be directed to OFA (via online award form). This includes, but is not limited to:

    1. Awards and Prizes (examples – third party payment or scholarship to offset educational costs, recognition awards, fitness awards, scholarship competitions, etc.)
    2. Reimbursement of supplies (examples – purchase of computer or software, translation, transcription, editing, course supplies, etc.)
    3. Conference registration fees and travel – when the payment or expense is not incurred on behalf of the University, but rather for furtherance of the student’s own education experience. (examples – attending to listen/learn to further education, travel awards for conducting/presenting their own research)

    Note that for non-standard cost items (ex. Books, supplies, dissertation costs, computer, etc.), additional documentation on letterhead should be sent to OFA to support accepting the aid without reducing other financial aid to the student. A note should be entered in the online form to identify when separate documentation will be sent.

    The OFA policy also covers instances when the academic unit or department has incurred the travel costs directly on behalf of the student (i.e. conference fees, direct bill/prepaid airline travel, direct bill hotel expenses, visa/passports, ground transportation, etc.).

  2. Reimbursements for supplies/travel related to MSU business on behalf of a faculty member or department. (examples: a faculty member in a lab asks a student to go purchase supplies for the lab or a faculty member asks a student to present MSU research on the faculty member’s behalf at a conference not the student’s own research.) These payments are made via a DV or Concur reimbursement and do not need to be reported to OFA.
  3. Prizes to students not related to their academic pursuits or achievements (example: winning drawing/raffle on campus that is open to the general public). These types of prizes do not need to be reported through OFA/Student Accounts, but should follow any reporting requirements in MBP Section 44 and may be tax reported depending on the value of the prize.
  4. Payments to student for services should not be made outside the Payroll system.
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