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University Automobiles and Automobile Allowances FIN-ACC-I-340

Scope

This policy applies to all university, external agency and foundation funds.

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Policy Statement

University automobiles and automobile allowances can only be provided to the President, Vice-Presidents, Chancellors and other senior officers of Indiana University, as individually approved by the President. Units have until July 1, 2011 to come into full compliance with this policy.

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Reason for Policy

This policy provides guidance on what positions qualify to receive university automobiles or automobile allowances and outlines the tax implications.

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Procedures

Financial Management Services (FMS) on an annual basis will mail to each individual assigned a university vehicle a request that travel logs be turned into them that identify personal vs. business miles. FMS will calculate the taxable value of the personal (non-IU business) use based on the travel log. Commuting to and from an employee's home to his/her base office will be considered personal use. This value of personal miles is taxable and will be added to the employee's W-2. The calculation is determined by Internal Revenue valuation methods. The Internal Audit Department may be asked to review individual logs for accuracy and propriety.

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Definitions

University Automobile: A vehicle that has been purchased or leased with University, external agency or IU Foundation funds. For the purposes of this policy the vehicle has been assigned to a specific individual for daily use. Departmental vehicles used by multiple people are not covered by this policy.

Automobile Allowance: A monthly amount provided through the payroll process to the qualified individuals who choose not to use an assigned university vehicle. The allowance is based on a calculation that considers annual mileage traveled by the employee and the mileage reimbursement amount posted by IU Travel Management Services. The University Budget Office is responsible for administering the calculation.

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Sanctions

Refer to Fiscal Misconduct policy: I-30, Fiscal Miscunduct

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Additional Contacts

Subject

Contact

Phone

Email

Policy Interpretation

Joan Hagen

812-855-3657

jhagen@indiana.edu

Tax

Vickie Fry

812-855-0142

vfry@indiana.edu

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History

Indiana University's policy on university cars has historically only dealt with the taxability issues related to personal use of the vehicles. New processes have been added that allow automobile allowances as an alternative and limit who is allowed to have a university vehicle or a car allowance. This has led to the 2010 rewriting of this policy that historically was titled "Use of University Vehicles."

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