When paying a student, it is important to ensure the payment has been classified correctly in order to satisfy compliance requirements with federal and state regulations, IU policies and donor intent.
At Indiana University, there are only four acceptable ways to provide funds to students. It is important to understand which method is correct for each set of circumstances in order to facilitate accurate treatment and reporting for both the student and the university. In the order of prevalence of use, the methods are:
- Student Information System (SIS)
Awards to support the student's direct cost of education-related expenses (generally scholarships/fellowships, grants). Used to record virtually any payment made to or on behalf of an IU student.
- Human Resource Management System (HRMS)
Compensation for services performed.
- IU Travel Expense Module (TEM and/or SIS)
Reimbursement or pre-payment when a student travels on behalf of IU (for university business), for their own educational or developmental benefit, alone or as part of a group. Payments made through TEM must also be recorded in the SIS and are considered financial aid unless the student is travelling on behalf of IU.
- Kuali Financial System (KFS/disbursement voucher)
This method is only appropriate for payments to students in very rare circumstances, such as payment of a cash prize in a contest not restricted to students.
This decision tree will assist you in determining the nature of the student's payment and how to make the payment correctly to ensure compliance with all applicable rules.