In fiscal year 2003, Stanford began levying a surcharge (GSS) on Stanford-funded graduate student fellowship stipend expenditures to subsidize a new health care benefit for graduate students. This benefit substantially reduces the cost of Stanford’s Cardinal Care health plan for eligible graduate students. For more information about this benefit, see “Frequently asked questions on graduate student subsidy” found at the “Cardinal Care” website.
Graduate student fellowship stipends (1) charged to the expenditure types noted below, (2) incurred on or after 9/01/02 (fiscal year 2003) in existing and new projects/tasks/awards and (3) paid by internal sources of funds are assessed GSS. The subsidy appears on expenditure statements in expenditure type 57640 GS Health Insurance Recovery. The financial system automatically applies the surcharge to eligible transactions in the form of a rate. Current and historical GSS rates can be found at the Stanford Rates. web page.
The application of this surcharge on Stanford-funded fellowship stipends is similar in intent to the application of the RA/TA fringe benefit rate on the salaries of Graduate Teaching Assistants and Graduate Research Assistants (expenditure types 51410 for TA salaries, and 51450 for RA salaries). Both the surcharge and RA/TA fringe subsidize eligible graduate student Cardinal Care health insurance. The Provost’s Office reviews and adjusts the GSS rate as necessary each fiscal year.
Expenditure Types Subject to GSS implemented FY03 (September 1, 2002)
GFS STANDARD CHGS
GRADUATE STUDENT STIPEND
GFS GRD STU SUPPLY TRAVEL STPD
In FY03 and FY04 the following additional expenditures types were subject to GSS; 57350 GFS Room Board, 57370 Flshp Doc Fees, and 57690 Flshp ASSU Fees. GSS will no longer be charged to transactions in these expenditure types starting September 1, 2004.
In general, stipend payments (charged to the expenditure types listed above) from Stanford operating budget PTAs, or from School or Department PTAs, will be assessed the GSS rate.
All fellowships awarded by external sources, where the awards, projects and tasks are established by the Office of Sponsored Research are EXCLUDED from the application of this surcharge (award range PAAAA-VZZZZ). In addition, no GSS is applied on cost sharing PTAs, miscellaneous receivables, capital projects, service centers or auxiliaries.
Fellowship stipends paid to Postdoctoral Scholars (expenditure type 57840) and to non-matriculated students including Visiting Researchers (expenditure type 57860) are NOT charged the GSS rate, as neither of these groups receives a Cardinal Care subsidy.
Using the Appropriate Expenditure Type
Stipend payments to graduate students, postdoctoral scholars and non-matriculating students are initiated in the PeopleSoft GFS system using item types that are related to specific expenditure types in the University’s Accounting System. Individuals entering stipend payments into GFS should be careful to use the correct item type, as it will control the purpose for which it can be used, the category of recipient, the way in which the stipend is charged, and the application of the GSS surcharge.
Some externally-funded fellowships, such as NIH Training Grants or NSF Fellowships, provide an institutional allowance for the benefit of the fellow. This allowance is exempt from GSS. When the Office of Sponsored Research (OSR) transfers this allowance to a departmental PTA, the PTA is exempt from the GSS surcharge. Expenditures subject/not subject to GSS should not be commingled in the same PTA.
For questions about the Cardinal Care Health Insurance Subsidy program, contact Ann George.
For questions about the application of the GSS surcharge rate to particular expenditures, contact Steve Olson.
Please contact your OSR representative if you have any questions about the institutional allowance.