2.45

Job-Related Training and Education: External HR

POLICY OVERVIEW

The University of Texas Health Science Center at Houston (UTHSC-H) endorses the expenditure of departmental funds on external training and education for employees. Such expenditures are at the discretion of the department head.

Departments may encourage employees to seek the external training and education covered under this policy; however, it is the employee who seeks such training who initiates the process. (Refer to 2.47 Attending Seminars, Workshops, Conferences, and Conventions for the policy on employer-initiated training.)

By encouraging employees to pursue additional job-related training and education, departments can prepare for new technological and legal developments; integrate additional work capabilities and skills; and increase overall competence and know-how. It must be stressed, however, that a commitment of university funds can only be justified when the training in question is sufficiently related to the current or prospective duty assignment of the employee to produce a beneficial effect to the UTHSC-H community. All graduate-level tuition reimbursements are considered taxable income. Only those undergraduate-level tuition reimbursements in excess of $5,250 in a calendar year are considered taxable income. Taxable tuition reimbursements will be processed similar to taxable salary.^a

Certain fund sources allow expenditures of this kind, and others do not. State, designated, revolving, and auxiliary funds may be used to reimburse external educational costs. The department must verify the allowability of these expenditures from all federal and private contracts and grants (including gift and endowment funds and state and local agency contracts) with Contracts and Grants prior to the initiation of the request. It is the responsibility of the department to monitor compliance with the terms of this policy and to maintain records of employee education.

I. Allowable Expenses and Privileges

• When funds are available in a departmental budget, a department may provide reimbursement for allowable tuition expenses. Allowable expenses for the training of employees include tuition and required educational fees. The cost of a course taken to prepare for a certifying examination (such as a CPA or Bar exam), and the cost of the certifying examination itself, are both considered to be allowable expenses.
• A department may provide time off (not to exceed the time required for one course per semester plus the allotted travel time) whether or not funds are available to reimburse tuition expenses. Employees are permitted to take one college course per semester during work hours, providing they can arrange to satisfy their employment responsibilities without additional expense to the institution. The UTHSC-H also authorizes a limited amount of travel time for each class session: No more than one-half hour per class day for course work taken on the UTHSC-H campus, and no more than one hour per class day for course work taken elsewhere. This action requires the same approvals as a reimbursable expense and will use the same form and record-keeping procedure.
• Among the items that are not reimbursable are deferral fees; installment tuition fees; any type of deposits, including property, access card, breakage, and so on; any other fees not directly related to the cost of the education.

II. Qualification for Reimbursement

• The individual must be a full-time, regular employee (refer to 2.16 Appointment Status) who has successfully completed the initial 120-day probationary period.
• The employee must receive a grade of C or better in any undergraduate course work, and a grade of B or better in any graduate course work to qualify for reimbursement of allowable expenses. When pass/fail grading is in effect, the employee must pass to retain eligibility.
• An employee who fails to complete course work with acceptable grades after using privileges extended by the UTHSC-H may forfeit all such privileges in the future.

PROCEDURE

The employee must obtain the Job-Related Training and Education Employee Request Form available under the Human Resources (HR) home page on the World Wide Web. The employee will fill out the request form and secure the written consent of the following personnel:

• immediate supervisor;
• individual with signature authority over account to be charged.

The department is responsible for compliance with this policy and must ensure the request form is accurately completed. The completed request form is to be maintained by the department.

Employees will pay all the fees, tuitions, and other expenses associated with their course work with their own funds, retaining all original fee descriptions and receipts of allowable expenditures.

• If no reimbursement was requested (just time off during regular work hours): Employees are to notify their departments of their grades and provide proof of successful completion of course work within 60 days after the last day of class.
• If reimbursement of allowable expenses was requested and the employee successfully completed the course: The employee will submit within 60 days after the last day of class the original of the grades and tuition statement to the department. The department will enter an RI for the proper amount and send the completed request form, including all signatures and account information, copies of the employee's grades, originals of the tuition statement, and a screen print of the RI to the RI section of Accounting. The department will be responsible for verifying successful course completion and allowable expenses. The department will retain copies of all records.
• The department is responsible for tracking an employee's total reimbursement in a calendar year. Should the total reimbursement in a calendar year exceed $5,250, then the department should forward the tuition reimbursement request to Employee Benefits and Services.

Employees who fail to notify their departments on completion of a course for which they have requested reimbursement may forfeit all educational privileges extended by the UTHSC-H.

aInternal Revenue Code, Section 127.

Updated 6/01