Effective August 1, 2011, the following guidelines are being put into place for payments to individuals who are speaking or presenting at Penn State.
Penn State should have written agreements with individuals who are speaking or presenting at a University event – including seminars, courses and public forums.A new written agreement for speakers has been recommended by University General Counsel to protect both the individual speaking and the University. As of this time, the Financial Officers will be authorized to sign this form on behalf of the University.
The University Scholar Agreement, which is being implemented as of August 1, 2011, is the primary agreement to be used for speaking engagements, although it is not required for every event. The form is now available as a fill and print form - Instructions and links from the Form Locator will be updated in the very near future.
Honorarium payments are now limited to $1000 or less. If payment to a visiting faculty member or other individual for speaking will exceed $1000, payment can still be made, but must be coded as a Personal/Professional Service, and the University Scholar agreement must be completed.
The University Scholar Agreement is always required when a University-sponsored event will be recorded or broadcast, or if the individual wishes to sell merchandise as part of the event, even if the individual will not be remunerated for their service.
Following are the detailed rules on use of the University Scholar Agreement depending on the amount of remuneration being provided to the individual:
RECORDING OR BROADCAST/MERCHANDISE:The University Scholar Agreement is ALWAYS required when a University-sponsored event will be recorded or broadcast, or if the individual wishes to sell merchandise as part of the event, even if the individual will not be remunerated for their service or will only be reimbursed for travel or paid an honorarium.
REIMBURSEMENT OF TRAVEL EXPENSES: If the individual who will be speaking is only be reimbursed travel expenses, then the agreement is NOT required (unless recording or broadcast/merchandise is involved). The individual should be reimbursed through the Employee Reimbursement System. If the individual will be given a flat travel allowance, this can be paid by SRFC, but must use a travel object code.
HONORARIUM - Honorarium payments may only be made to individuals and cannot exceed $1,000. A University Scholar Agreement is NOT required for speakers receiving honorarium payments and/or for whom travel expenses are being paid or reimbursed (unless recording or broadcast/merchandise is involved).
PERSONAL/PROFESSIONAL SERVICE: Individuals being paid morethan $1,000 must be paid as a personal/professional service and a University Scholar Agreement must be completed and signed before the event, and must be attached as back-up documentation for payment by SRFC.
- A non-employee speaker has the right to request the completion of a University Scholar Agreement, even if no payment or honorarium is being received. If the speaker has their own agreement, this can be used in place of the University Scholar Agreement, but must be forwarded to Risk Management for appropriate review and signature.
EMPLOYEES: Any individual who is already an employee must be paid through the payroll system. No University Scholar Agreement is required for University employees, but might be appropriate especially if the presentation will be recorded or broadcast.
PENN STATE RETIREES: All payments to retirees, beyond legitimate University business expense reimbursements, must be approved by the Associate Vice President for Human Resources. Honorarium and payments for personal/professional services do not require an emergency rehire, but do require approval by the AVP for Human Resources.
There is also a Speaker Agreement that is part of the University Standardized Entertainment Agreement templates, which is much more detailed and generally used for extracurricular speaking engagements arranged through Student Affairs. This agreement should still be used for Student Affairs events, or events sponsored by registered student organizations, per Guideline FNG02 – Limited Delegation of Contract Approvals.
There is a new services matrix available in GURU to help determine how to pay INDIVIDUALS for services provided to the University.