CELLULAR PHONES AND OTHER HANDHELD WIRELESS COMMUNICATIONS EQUIPMENT
Procedure 8-005
Issued by: USNH Cheif Financial Officer
Rewrite: 07/01/2008
A. Summary. Faculty and staff are sometimes required to use cell phones and other handheld wireless communication devices in the performance of their jobs. The cost of the business use of these devices can be significant. Such devices provided by employers for business purposes are capable of being used by employees for personal purposes and are considered by IRS to be “listed property” subject to IRS regulations. These devices have become a focal point in recent IRS audits. This policy addresses the conditions under which a cell phone or other handheld wireless communication device may be provided to an employee.
B. Definition: Listed property includes items obtained for use in the business but designated by Internal Revenue Code Section 280F(d)(4) as lending themselves easily to personal use. Listed property specifically includes cellular phones, pagers, and similar handheld wireless communications equipment, as well as other property of a type specified by the IRS.
C. Scope. This policy applies only to equipment defined in B. above and related services paid by USNH from any source. Campuses, schools, or departments may elect to impose stricter controls over these devices than those required by USNH but may not be more lenient.
D. Business Purpose: USNH campuses and departments may issue cell phones or other handheld wireless communication devices to USNH employees if the employee meets the eligibility standards established by this policy. These devices provided by and paid for by USNH must be necessary for USNH business on an ongoing, recurring basis with no more than minor or incidental personal use by the employee.
E. Eligibility and Approvals. Eligibility for a USNH-provided cell phone or other handheld wireless communication device is based on the demonstrated and documented need for the employee to use such device frequently in the performance of their job. The device/service plan may not exceed the employee’s job requirements and must be ordinary and necessary to enable the employee to:
The department director is responsible for identifying jobs that may require use of cell phones and other handheld wireless communication devices, and for indicating the type of device and service (e.g., number of hours/month, national vs. international service plans, etc.) appropriate to meet business needs. All such devices/services paid for by USNH funds must be approved by a supervising senior officer at the level of at least Dean, Vice President, or Vice Chancellor and will be based upon funds availability. Specific procedures will be developed by HRPAC to address Operating Staff with employer-provided cellular phones and other wireless handheld communication devices.
F. Effect of Termination or Change in Job Requirements. If an employee’s duties change over time so that the employee no longer needs a cell phone or other wireless handheld communication device to perform his/her job, or if the employee ceases to be employed by USNH after being provided with such equipment, the employee is required to return the equipment to USNH. The employee’s supervisor is responsible for reviewing the necessity of providing such equipment to employees on a periodic basis and taking steps to recall equipment no longer needed by employees for the performance of their duties.
G. Business Use of Personal Cell Phones. An employee may be reimbursed for the business use of his/her personal phone or other device by submitting a bill identifying the actual incremental cost of the business calls. This payment needs to be approved by the supervisor and processed as a normal business expense reimbursement.
H. Sponsored Programs. Normally, cell phone purchases, maintenance and operating costs are not allowable charges to federally-sponsored programs. The UNH Office of Sponsored Research should be consulted for clarification on the allowability of these costs.
I. Effective Date. The policy is effective July 1, 2008