Definition
A stipend is a fixed amount paid to a student to offset living expenses.
Stipend payments are to be made in accordance with sponsor regulations.
For most federal sponsors, a stipend is paid to a graduate student or post-doc in a training program to offset their living expenses. Under the UW's Executive Order #30, stipends are "used for students receiving fellowships and traineeships supported by funds provided by federal or private sources."
The term "stipend" can cause confusion, as different entities and individuals use it in different contexts. Some non-federal sponsors will use the term to describe compensation for work performed. The nature of the payment, not the name used by the sponsor, controls whether the payment is a stipend or a wage. If the payment is compensation for work performed, the payment is not a stipend – it is compensation. If the payment is specified to help defray living expenses, or a similar description, it can be classified as a stipend.
A stipend is not compensation provided for work performed as an employee. There are no effort requirements related to receiving a stipend, and the payments are not documented through the Grant and Contract Certification Report (“GCCR”) process.
Coding
Stipend payments may be paid under Object Code 08-02 "Stipends" unless the recipient is entitled to health insurance provided by the UW. When a stipend recipient is entitled to health insurance, the stipend is paid under 01-9X (Pre-doc Stipends) or 01-5X (Post-doc Stipends). Both Object Codes include health insurance. This can be the cause of confusion, as a Stipend is not payment for salary or effort even though the “01” codes are typically used for salary/compensation. Payment of a stipend under 01-9X or 01-5X is not meant to signify payment for salary or effort but is instead only used so a health insurance benefit can be provided to the stipend recipient.
Stipend Supplementation
If a trainee or fellow is in receipt of a stipend from a sponsored award, the requirements of the sponsor need to be followed, both in terms of the stipend amount and in terms of any additional support (supplement, compensation) provided to the trainee.
NRSA Training Grant or Fellowship Stipend Supplementation
For rules on supplementing stipends on an NRSA Training Grant, see PAFC’s Training Grants page.
For rules on supplementing stipends on an NRSA Fellowship, see PAFC’s NIH Fellowships page.
Stipends Paid In Lieu of Wages
Since stipends are not compensation for effort, they cannot be paid in lieu of wages. Stipend payments are thus not documented through the Grant and Contract Certification Report (“GCCR”) process. GCCRs are required as part of UW’s compliance with the documentation requirements for compensation under 2 CFR 200.430 "Compensation - Personal Services".