In many cases, this is required by federal law and the University is committed to comply. Internal Revenue Service regulations provide that research subject fees are taxable income to individuals. The University is also committed to good business practices counterbalanced with the desire to reduce administrative burden to departments and central administration. Proper documentation must be retained within departments for possible audit. If authorized, the amount of the fund will be charged as an advance to the specific grant general ledger account.
Cash is provided to the custodian of the fund, which is then available to pay subjects.
All cash payments must be documented. Required information includes name, address, social security number and signature as proof of receipt. The listing must include name, address and social security number. The memo should be signed by the principal investigator and must clearly state that all confidential backup is maintained in the department. Departmental documentation must be available for audit a minimum of three years after final payment is received from the grant or contract agency.