BOARD POLICY

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					Procedures                                                         DISTRICT CELL PHONE USE
College of the Sequoias
Rationale for a Change in COS Cell Procedures
The Internal Revenue Service* now considers the portion of the minutes used for personal purposes on a District-
funded cell phone to be reportable taxable income. To avoid the accounting for personal calls and business calls
that would be required to continue the practice of District supplied cell phones, the following procedure is
being considered.

                *Cell Phones /Electronic Devices/Computer IRC § 274(d), IRC § 280F(d)(4) IRC § 132(d)
                IRC § 280F Requires that business provided cell phones that are used for personal use are
                subject to income tax. Strict requirements exist for auditing such use by the employer.

Types of Cell Phone Use Funded By the District
Cell phone use funded by the District will follow two options:
   1. The phone and plan is provided by the District and will be used only for District business. No
       personal use will be allowed. Phone calls made under option one will be audited for compliance
       http://www.irs.gov/govt/fslg/article/0,,id=167154,00.html
   2. The employee is given a stipend to cover costs for District related use of the employee’s cell
       phone. The stipend is taxable.

Option 1 Use Policies and Privacy
Under Option 1, the cell phone instrument, maintenance and cell plan are completely paid by the
District. The phone must not be used for any personal calls. Monthly reports from cell provider will be
audited for personal calls and become, under law, public documents.

Option 2 Payments and Responsibilities
If the District elects Option 2 for a position where it is determined that the employee in that position
needs a phone, then the employee will receive a $60 a month stipend (or an amount negotiated with the
bargaining unit, if applicable). The stipend will cover the purchase of the phone, maintenance, extras,
calling plan, etc. Employee selects unit, plan and accessories. The employee is responsible for
providing the cell phone number to the District and for keeping the unit functional for work purposes.
Cell phones are expected to be able to receive calls for work and after work hours as arranged with the
supervisor. If the unit is lost, it is the employee’s responsibility to replace the lost phone. Some
departments use a “direct connect” option and the employee may be required to purchase a phone
compatible to the department standard.

Rationale for Phone Use
Highest need is for cell phones that are used in emergencies to prevent loss of life or property damage
(by police, decision makers). District funded cell phones are also appropriate for staff who, in the
regular course of a day, are frequently away from a regular phone and need to immediately respond to
internal and external calls in the course of their position.

Process for Getting Cell Phone Funding
Determining the need for a cell phone will be done through a written request by the supervising
administrator detailing one of the above two rationales. Each Vice President will authorize phone use for
their areas, the Superintendent / President will authorize any other not having a supervising VP. Phones
costs will come out of unit budgets. Each cost center will cover its own costs.

10/1/07
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