In January 2013, the Office of State Budget and Management posted revisions to the State Budget Manual regarding allowances for employee-owned mobile cellular devices. The revisions directed state agencies and institutions to develop a business case for using MCD allowances and directed agencies and institutions to document proof that any employee receiving an MCD allowance must show that the allowance does not exceed the expenses the employee actually incurs in maintaining the device by providing a copy of their annual contract or monthly billing statement on an annual basis.
Specifically, the revisions state: “Each employee who receives a MCD allowance must provide documentation, such as an annual contract or a monthly billing statement, which shows that the allowance does not exceed expenses the employee actually incurs in maintaining the device. This documentation should be provided at least annually to the proper internal authority. If the documentation shows that the employee’s MCD allowance exceeds the employee’s typical monthly cost, the employee’s allowance must be reduced to a lower tier, so that the allowance does not exceed expenses incurred by the employee.”
To meet the new requirements, General Administration conducted a study to analyze the current allowance rates and update the MCD policies and procedures in accordance with the 2013 State Budget Manual revisions. The study found that the plans and rates from 2007 are vastly different to the current plans and rates offered today. Based on the study, the MCD allowances for FY 2013-2014 are established as follows:
The allowance will continue to be provided to designated employees at General Administration who are required to carry mobile communication devices to fulfill their job responsibilities. These employees are:
UNC General Administration’s MCD allowances will be paid as a non-taxable cell phone reimbursement which requires IRS documentation for business use. The University will not purchase nor replace cell phone or PDA equipment for employees receiving an allowance. Employees receiving allowances are required to have their cell phones with them, charged and operational at all times. The allowance and records of associated business use will be subject to the Public Records Act.