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Payments Of Scholarships, Fellowships, And Stipends

Because of IRS reporting requirements, it is important that correct terms be used in processing payments for Fellowships, Stipends, Scholarships, and Awards.

Scholarships are payments to undergraduates enrolled at Auburn University. They are processed by Student Financial Services.

Fellowships are payments to students who are candidates for advanced degrees at Auburn University and are intended to cover expenses such as tuition, books, related fees, and room and/or board. Fellowship payments can only be made on either established fellowship accounts or specified contract and grant accounts and must be processed by Student Financial Services.

Awards are given only through competitive processes. Award payment requests should include :

  1. Proof that this is a documented awards program, including documentation on the competitive procedures and the qualification and selection criteria.

  2. The Vendor Voucher should include the date on which the checks will be awarded, the amount of the award, and the signature of the department head or dean, as required.

If the award is for an AU employee, use account code 70450. The amount of the award will be shown on the W-2 form as "other income". If the award is for a non-AU employee, use account code 70455. Such awards will be included on an IRS 1099 form. Awards to students must be approved by Student Financial Services with payments typically made via the student BR account. Non-faculty service awards are awarded through the HR employee recognition program.

Stipends are payments to people who are not University students or employees. They are used to pay participant expenses or as payment for participating in a University program.

Stipend payments use account code 70515 and must be supported by the statement of purpose and the description of the program. Individuals receiving stipends need to register on the Procurement and Payment Services' Vendor Center.

Fellowships, scholarships, awards and stipends may not be used as payment for any form of services. Any payment for services rendered (except independent contractors) must be processed through Payroll.

When making payments to several recipients in the same program, it is preferred that you use a Multiple Vendor Voucher - BO 55-02 and include several recipients, although you may opt to use one voucher for each recipient. Clearly indicate why payment is being made. Checks will be mailed to recipients' residences.

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Business Office · Ingram Hall
Auburn University · Alabama 36849 USA
334-844-5588