Procedure: 8-40

Effective: November 30, 2006

Owner: Office of Sponsored Programs

Latest Revision:

Graduate Student Health Insurance – FY 06

Procedure Steps

Scope | System References | Policy |Responsibility| Distribution | Ownership

 Scope

This procedure is to provide guidance on implementation of the three-year phased plan to transfer the costs of the health insurance subsidy for graduate research assistants (GRAs) from university general education funds to sponsored program awards.

Policy [Top]

VIII.A.6, Consistent Treatment of Sponsored Program Costs

VIII.C.1, Compliance With Sponsor Requirements

Responsibility

The Assistant Vice President for Research Administration is responsible for setting a procedure allowing for the direct charging of graduate student health insurance to sponsored program awards.

Distribution [Top]

School and Research Administrators
Fiscal Contacts

Ownership [Top]

The Director of Award Management and Accounting is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.

Procedure Steps [Top]

FY06 Update.

Clearing PTAEOs are to be used to charge the full cost of health insurance. The charging process will operate similarly to the tuition remission process. Beginning July 2005, up to one third (.33) of the health insurance cost of a full time GRA will be allowed to be transferred to sponsored program awards. Beginning July 2006, up to two thirds (.67) of the health insurance cost of a full time GRA will be allowed, and beginning July 2007, the total cost will be allowed to be transferred to sponsored program awards.

NOTE: In all circumstances the Budget Office requires that GRA insurance costs be transferred from clearing accounts to the appropriate University awards.

The healthcare premiums are $1817 for first-time enrollees, with coverage lasting from August 15, 2005 through August 14, 2006, and $1768 for re-enrollees, with coverage lasting from August 25, 2005 through August 14, 2006. Premiums will change from year to year, and this procedure will be updated accordingly.

For additional information on the cost of graduate health insurance: http://www.virginia.edu/studenthealth/insurance.html

Health insurance costs charged to sponsored program awards should be distributed proportionally to all sources funding of the GRA, including any GTA or GAA combinations. For example, if a graduate student is a GRA for the Fall Semester and a GTA for the Spring Semester, the one-third allowed to be charged to sponsored programs should be split between the GRA funding sources and the GTA funding sources over the Fall and Spring Semesters. Insurance costs should be transferred from clearing PTAEOs at the end of each semester and allocated per insurance eligibility requirements.

I. Processing Insurance Charges to Grants:

NOTE: Use one of the following expenditure types to charge insurance for graduate students depending on your circumstance as explained below.

If your award is exempt from F&A -- Use "Svcs, Ins, Health, Grad Stdnt." This is only to be used if you are charging a competitive or continuation award that started prior to December 31, 2005 , OR on any award received prior to January 1, 2006 that is based on a budget submitted prior to January 1, 2005

Use "Svcs, Ins, Health Grad F&A" for awards made after January 1, 2006 for which F&A was budgeted.

• Insurance charges are to be allocated in proportion to all pay sources of the GRA.
• LD should be scheduled and confirmed prior to transfers.
• A GRA working a full academic year would be charged 1/3 of the insurance in accordance with scheduled LD.

• Insurance charges should be transferred from clearing accounts by semester, at the end of each semester. For Fall semester transfers must be completed by December 31 st of that year. For Spring Semester transfers must be completed by May 31 st of that year.
• Regular cost transfer rules apply (see procedure 8-20) with the only exception being moving a portion of the cost to a future award that has not yet been received/ established in the integrated system.
• A retro request will be required for insurance cost transfers NOT processed within 90 days from the end of the semester.

• Transfers are to be done using the Oracle Usage batch “cost transfer” functionality.

• The word “GRA insurance- Spring” or “GRA insurance- Fall” should be the first thing in the expenditure comment field followed by the normal required information, see procedure 8-20.

II. The following are specific examples of common funding situations and how the cost transfer should be processed. All assume that the cost of insurance is $1817 AND that two decimal places are used in the calculations.

Example 1. GRA paid 50% from one grant and 50% from one non-grant source for Fall Semester and the GRA leaves the University at the end of the semester, graduated or otherwise. In this case 1/3 of the insurance is allowed to be charged across all pay sources. LD is assigned as follows:

GC12345/123450 50%

DI12345/156789 50%

Example 2. GRA paid from one grant and one non-grant source for the academic year (Fall and Spring Semesters) and the PTA’s remain active for the academic year. In this case 1/3 of the insurance is allowed to be charged across all pay sources across semesters. LD is assigned as follows:

GC12345/123450 50%

DI12345/156789 50%

Example 3. GRA paid from 2 grants and one non-grant source for the academic year (Fall and Spring Semester) and the PTA’s remain active for the academic year. In this case 1/3 of the insurance is allowed to be charged across all pay sources across semesters. LD is assigned as follows:

GC12345/123450 50%

GC15687/158790 30%

DI12345/156789 20%

Example 4. GRA paid from 3 grants and one non-grant source for Fall semester and the PTA’s change with differing end dates in the middle of the semester and the GRA leaves the University, graduated or otherwise. In this case 1/3 of the insurance is allowed to be charged across all pay sources.

LD is assigned as follows:

GC12345/123450 50% --- end date is 11/30/05 (3 months of semester charged here)

GC17890/176540 50% --- start date is 12/1/05 and end date is 11/30/06 (1 month charged here)

Note that GC17890 in this case replaces GC12345, see dates above

GC15687/158790 30% --- end date is 6/30/06

DI12345/156789 20% --- end date is 6/30/06

Maintained by University Comptroller
© 2001 by the Rector and Visitors of the University of Virginia . All rights reserved.