The following article was included in the July 6 edition of OnCampus:

Drake University has updated the Cellular Phone Policy that was originally developed in 2009.  The University will continue to not own cellular phones for the use of individual employees except in limited situations.  Employees whose job functions include the frequent need for a cellular phone may receive a stipend, in the form of a cell phone allowance.  Eligibility for the cell phone allowance will be confirmed by managers and approved by the applicable President’s Council member in accordance with eligibility factors listed in the policy.  The amount of the cell phone allowance is changing to be more reflective of cellular phone billing practices while still acknowledging that job functions may require some level of business-related use of an employee’s personal cell phone.

Based on feedback received, the policy has been revised.  In addition, the following comments address specific feedback received.

• When the Cellular Phone Policy was originally developed in 2009, most personal cell phone plan charges were based on usage. The more calls made and data used, the more that was paid.  The cell phone allowance amount was set at that time to approximate the actual costs employees paid for business-related usage of the cell phone.  The stipend amount was never intended to cover 100% of the personal cell phone plan charges as the device was used for both personal and business-related use.  In contrast today, most personal cell phone plan charges are based on unlimited calling and unlimited (or much higher limits) data usage.  Except in rare instances, employees are not incurring any more costs for the Drake-related usage of the phone than what is being paid to have and use the phone for personal use.
• The cell phone allowance should not be considered compensation. While the allowance is taxable for IRS purposes, the allowance was originally intended to reimburse employees for personal costs incurred.  And now, the allowance is intended to be an acknowledgement of the business-related use of the cell phone even though no personal costs are incurred.
• There is no requirement that employees have a personal cell phone for use for Drake business unless they are receiving the cell phone allowance. While a cell phone may be used for Drake business out of convenience, such as for ITS dual-factor authentication, there is no expectation that employees have a personal cell phone.  Per ITS, there are three options for two-factor authentication.  Using an app on an individual’s mobile device is generally the most convenient.  However, there is also the option to have an authorization code sent via SMS or phone call, which can be made through both mobile devices or a land line phone.
• The review of the outdated cell phone policy has been overdue for several years. However, it was a consultant hired by the University to review non-personnel spending that noted the allowance offered by Drake was rich.  Most local Des Moines businesses have reduced their cell phone allowances or eliminated them completely.  In addition, Finance staff surveyed other Iowa private colleges as well as the members of the College and University Sustainability Project (CUSP).  The updated cell phone allowance amount is consistent with what other Iowa institutions and the CUSP members are providing for allowances.
• Feedback comments noted that cell phone plan prices as well as the cost for devices are increasing. Cell phone plan prices may be increasing but they are coming with more benefits including unlimited calling and data.  And device costs for the newest models have increased dramatically but there is no Drake requirement that employees purchase the costly devices.  Rather, this is personal choice.
• There were comments related to Facilities Planning and Management (FPM) employees that use Drake provided cell phones for Drake-related business. FPM is one of the limited exceptions where the University has authorized the ownership of cellular phones that are provided to employees while at work.  These phones are available for work only and personal use is not allowed or even available on the phone.  This arrangement in FPM will continue and is not impacted by the revised cellular phone policy.

Thank you to those who provided comments related to these policy revisions.  We feel the additional revisions to the policy as well as the above comments are reflective of the feedback received.  The Cellular Phone Policy, as revised, is effective as of August 1, 2021.

— Jessica Morgan-Tate, Finance & Administration