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Telephone Policy
Phones Contracted in the Name of Auburn University Foundation
Auburn University Foundation will participate in the Auburn University cell phone contract with Verizon Wireless. The Development Office will constitute a separate pool, whereby all the minutes of all Development Office contracts will be aggregated to produce a total pool of minutes. This should protect individuals who exceed their total minutes only once or twice per year from paying per-minute charges, since per minute charges will only apply when the total combined minutes of all users exceeds the pool total. In effect, one pool member can use another pool member’s unused minutes. The University contract provides for a 21% discount from regular Verizon rates and a free phone. Upgrades to other phones will be at the employee’s expense.
Other services will be available if approved by the appropriate AVP, including text messaging, mobile web access (which uses minutes), PDA Smartphones, Blackberries, and air cards. The list of plan and equipment options and prices will be available on the web at www.verizon.com. VP or AVP authorization is required. Directory assistance is an extra cost and should be used only for emergencies. AUF will only pay for the first four calls to directory assistance each month. Auto-connect service offered in conjunction with directory assistance service will not be paid by AUF. AUF will not insure phones routinely. In the event of loss or damage to equipment, the appropriate user’s budget account will pay for up to one replacement per year.
Option 1 – Business Use 100%
An employee may elect to have a phone provided exclusively for business use. If incidental personal use is less than 15%, the phone will be considered exclusively business. (Note that personal use includes personal minutes identified as "free nights and weekends.") The phone service will initially be the 450 minute Auburn University plan with Verizon, which includes nationwide roaming and long-distance, unlimited calls to other Verizon phones from within the "In" areas, and unlimited nights and weekends. When traveling, this eliminates the need for a "call home" allowance. Excess minutes are $.25 if the "pool" of total Development Office minutes is exceeded. The account will be in the Foundation’s name and the minutes will be part of the Development Office "pool." The monthly statements will be submitted to Development Accounting each month for full payment. Employees will need to acquire separate service if they require a personal cell phone.
Option 2 – Business Use Greater Than 50%.
For those who need a phone primarily for the conduct of business but also need a personal phone, and who do not want two phones, a phone will be contracted in the name of the Foundation. The phone service will initially be the Verizon 900 minute plan, which includes nationwide roaming and long-distance, unlimited calls to other Verizon phones from within the "In" areas, and unlimited nights and weekends. Excess minutes are $.25 if the "pool" of total Development Office minutes is exceeded. Business use will initially be assumed to be the average of Development Office business use as determined by periodic analysis, currently 400-500 minutes. The account will be in the Foundation’s name and the minutes will be part of the Development Office "pool." The monthly statements will be submitted electronically to Development Accounting each month for full payment, where approximately 50% will be charged to the employee’s budget and 50% to the employee. The employee will reimburse the Foundation for his/her 50% of the monthly charge. Periodically, cell phone usage will be reviewed to determine if the number of minutes should be adjusted upward or downward, and on a random basis, individuals will be required to substantiate the business usage to verify the appropriateness of the plan. An employee whose personal usage is subsequently determined to regularly exceed 50% will be required to return the phone and obtain individual service.
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Phones Contracted in the Name of the Employee
For employees who require a cell phone in their conduct of Foundation business and only want one phone, but whose primary phone usage is for personal calls, the following options have been established:
Option 3 – Actual Business Use Substantiated Each Month.
An employee may use his/her personal cell phone for both business and personal. This phone may be with any cell phone carrier, but if Verizon is selected, employees are eligible for the special plan for AU employees that provides for a discount rate of 19% off regular rates. These phones will be in the name of the individual and the individual will pay the monthly bill. The actual business calls must be accounted for to determine the percentage of business minutes to total use. This percentage, applied to the total bill, will determine the amount reimbursable to the employee . This amount may be submitted to Development Accounting for reimbursement. Reimbursement under this plan is limited to the cost of the business phone in Option 1, currently $40.
Option 4 – Taxable Allowance.
An employee may elect a taxable allowance of $500. This will be paid once annually for each fiscal year, normally in November or December. The employee is then responsible for obtaining cellular service in his/her own name. It is up to each individual to decide whether to maintain records of business use, which would then be deductible on his or her personal tax return. When the allowance is elected, it remains in force for the full year, and no reimbursement for cellular phone calls will be made, even if business calls result in an excessive bill.
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Last Updated: June 25, 2012
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