Denver Public Schools Procedural Statement DK-R-C: District Cell Phone Procedures

Transcription

1 Denver Public Schools Procedural Statement DK-R-C: District Cell Phone Procedures Purpose: The purpose of this document is to provide guidance and outline the compliance requirements for District employees or agents of the District regarding the issuance, accountability and use of authorized District-owned cell phones, or the District s payment of a stipend to employees who use their personal cell phones for District business use. Procedural Statement: I. District Owned Cell Phones Authorization and Use of District Owned Phones: Both the assignee and the Approving Official must agree that the District-owned cell phone will be substantially used for District business and is authorized because of the nature of work conducted by the assignee is considered critical and, as interpreted by the Colorado State Controller Policy on Cell Phones (see policy at: : a. Frequent travel limits the ability to use the regular Office phone (or) b. The nature of the position requires the person to respond immediately (or) c. The person is expected to be available outside normal business hours The Approving Official must be a principal or director. Both the Approving Official and assignee will sign and adhere to the specifics of the agreement. Furthermore, the assignee will abide by state laws (C.R.S ; restricting the use of cell phones while driving. The assignee must also take precautions to safeguard the District-owned cell phone from physical damage or loss, and return the phone to the District immediately upon request or termination of employment. The employee must notify Safety and Security to file a missing/stolen property report as soon as able in the event their district owned cell phone is lost or stolen. 1

2 De Minimis (personal) use of a District-owned cell phone: The assignment of a Districtowned cell phone shall be for the convenience of the District, and be used primarily for business purposes. The assignee may use the District-owned cell phone for only de minimis personal use. The IRS has additionally determined that any personal use of the employer-provided cell phone will be treated as a de minimis fringe benefit, excludable from the employee s gross income as long as the below conditions, as interpreted by the Colorado State Controller policy on Cell Phones, are maintained. a. The personal use is infrequent and short in duration. (and) b. The personal use does not result in additional charges to the District. (and) c. The personal use does not interfere with the intended business use of the District s phone. Additionally, the District has the authority to substantiate the de minimis use of the assigned cell phones, which can be performed by its internal audit staff or through direction to all Approving Officials. District Provided Plans/Devices: Under the District s contracting methodology, there will be multiple phone device choices with possible optional service plans regarding texting, picture taking, messaging, and other applications. It is at the discretion of the Approving Official to limit the phone capabilities and options to those necessary for the assignee to perform his/her duties for the District. Cell Phone Request/Agreement: The issuance of a District-provided cell phones requires both the approval of a principal or department head and the assignee s agreement addressing the terms and conditions. Both are accommodated on the DPS District Cell Phone Authorization/Agreement form. The signed and dated form will be forwarded to the Cell Phone Administrator for record keeping and to substantiate the issuance of the phone. District Cell Phone Turn In: The assignee will be requested to turn-in the cell phone when separating from the District, transferring to different department, or if the approving authority determines that there has been a change in the employee s status/position or suspect misuse. Under any of these conditions, the Principal or Department head should take possession of the cell phone and notify the Cell Phone 2

3 Administrator within five (5) business days of the determination or of learning of the employee s intention to separate. Overages: If an employee incurs additional fees/charges in excess of the authorized plan, those charges will be reimbursed to the District through automatic payroll deduction. Overage examples include, but are not limited to, fee based phone assistance (i.e. 411), phone applications not required for District use (to include social media, games, music, videos, and podcasts), and plan upgrades not required for District business. If the employee routinely incurs additional charges from personal use, the cell phone administrator shall notify the appropriate Human Resources representative and also the Principal or Department head with the intention of reviewing the employee s continuing privileges. Other Conditions: Employees are expected to use the cell phone to report emergency situations whether personal or business. In many jurisdictions where employees work or to which they may travel, laws prohibit certain uses of cell phones while operating a motor vehicle. It is the District s intent and expectation that all employees are to abide by the law. Violations of this policy may result in corrective action up to and including termination from employment with Denver Public Schools. Internet Use: District cell phone carries/users will follow the applicable procedures addressing Internet Use in the District s BoE Policy EGAEB ( db=policy.fp3&-format=print.html&-lay=html&-sortfield=file&-op=cn&fullpolicy=internet&- recid=33005&-find=). Cell Phone Security: Assignees will use passcode security to access the phone due to the possible sensitivity of stored data. Users may not leave their password available in an obvious place near the phone or adhered to it. District cell phone carries/users will follow the applicable procedures addressing Electronic Mail in the District s BoE Policy EGAEA ( lay=policyview&-sortfield=file&-op=eq&section=e&-recid=32927&-find=). In the case of a lost or stolen cell phone, the employee is required to notify the Cell Phone Administrator immediately so a remote wipe can be performed to erase the cell phone. The user is responsible for keeping a backup of pictures or other content on the cell phone. Cell Phone Administration: The District will assign an Administrator designated to administer the District Call Plan, order, issue, activate and deactivate Cell phones, certify documentation required to approve payment to the provider, monitor bills for additional fees and 3

4 extraordinary charges, manage agreements, etc. (Note: This is a placeholder for a future link to DoTS detailed Administrator s tasks and guidelines) Use of Personal Cell Phone for District Purposes and Related Stipend District Business Use on Personal Cell Phone: The District can allow the payment of a stipend to an employee for an employee-owned cell phone if authorized by their Approving Official and they agree to and meet the conditions stipulated in the paragraph Authorization and Use of District Owned Phones. In addition, the District requires: a. The employee maintain the type of cell coverage that is reasonably related to the needs of the District. b. The stipend cannot exceed the cost of their current monthly coverage (an IRS requirement). c. The employee to agree to immediately disclose to the Cell Phone Administrator any change to their employment status that would affect the nature and condition that originally substantiated the stipend and/or the voluntary or involuntary loss of cell phone coverage. The stipend amount is limited to 20% of the District s net cost of providing a District Smart phone plan or Standard phone plan, whichever is authorized. For SY 2013, and until adjusted, the stipend for the Smart Phone plan is $9.99, and $4.00 for the Standard Phone plan. The limitation is due to the current 80% rebate the District receives under its consolidated contract agreement with the District cell phone provider. A stipend larger than 20% would cause a net loss of resources to the District. II. Issues Related to Both District and Personal Owned Cell Phones Taxable Treatment/Implications: IRS Notice , related to provisions in the Small Business Jobs Act of 2010, allows for employer provided cell phones issued to employees for business reasons and reasonable reimbursements/stipends provided to employees for business related use of their personal cell phone. Both are treated as working condition fringe benefits excludable from the employee s gross income as long as certain conditions are satisfied. Those conditions are defined as being ordinary and necessary expenses that were paid or incurred in carrying on a trade or business (i.e. District business) and would have otherwise been allowed as a deduction under Internal Revenue Code Section 162. If the qualifications in the paragraph above for District-owned cell phones are not met, the IRS will treat the employee s use of the District-owned cell phone as a taxable fringe benefit, and the agency shall include the cost of providing the District-owned cell phone in the employee s compensation (gross income). A cell phone provided to promote the morale or good will of an employee, to attract a prospective 4

5 employee, or as a means of furnishing additional compensation to an employee do not meet the qualifications. Employer provided cell phones do not require record keeping to track business use. The same qualifications are required to be met for receiving a stipend/reimbursement for conducting District business on a personally owned cell phone. However, although the IRS has stated that heightened substantiation is not required (per event type logs) in these cases, substantiation of business versus personal use of the phone (i.e. statistical sampling) would be required to be performed annually (IRS Section 274(d)) to maintain the stipend/reimbursement as a payment that is not subject to payroll taxes.) If the conditions required under either scenario are not met, the IRS will treat the employee s stipend/reimbursement or the cost of providing the District-owned cell phone in the employee s compensation (gross income). Open Records: The employee will have no expectation of privacy when using the district owned phone, or their personal phone if receiving a stipend. Cell phone records including records of use and all data stored on the district owned cell phone including internet usage, pictures, and text messages are district property and subject to the Colorado Open Records Act, CRS Title 24, Article 72 ( CORA ). Reimbursed usage of personal owned cell phones may also be subject to CORA. Waiver of Health Concerns: No final determination has been made on the effects of radio frequency emissions from cell phones on physical health. Personnel are assumed to accept this risk, whether perceived or real. III. Exceptions to this Procedure: There will be no exceptions to this procedure regarding the authorization and use of District phones, or other sections that are based upon regulatory guidance and policies. However, due to ever changing technical capabilities, vendors, or unique District personnel situations, variations to the administrative portion of this procedure may be authorized as long as that variation is documented and approved by the cell phone administration group. Formatted: Not Highlight Forms: DPS District Cell Phone Authorization/Agreement DPS Cell Phone Stipend Request and Authorization Form 5

6 References: CRS et seq. (Colorado Open Records Act) CRS et seq. (State Archives and Public Records) DPS BoE Policy EDB (Maintenance and Control of Materials and Equipment) DPS - BoE Policy EGAEA Electronic Mail DPS - BoE Policy EGAEB Internet Policy IRS Interim Guidance on Reimbursement of Employee Personal Cell Phone Usage in light of Notice dated September 14,