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Home My WebLink About08.b EDB Tuition Reimbursement Policy EXECUTIVE SUMMARY AGENDA ITEM: Proposed Approval of Tuition Reimbursement Policy Date: December 2, 2025 BACKGROUND: The Tuition Reimbursement Policy was originally approved in 1995 and has undergone minor revisions over the years to reflect updates in administrative practices and federal guidelines. While the policy has historically been included within the CCUA Employee Handbook, the newly developed standalone policy consolidates, organizes, and clarifies all prior guidance into a comprehensive document. Going forward, the Employee Handbook will reference this standalone policy to ensure consistency, improve clarity, and provide employees with a single, authoritative source for all tuition reimbursement requirements. This standalone policy establishes clear standards, eligibility criteria, documentation requirements, and compliance obligations for employees seeking educational assistance. Its enhanced structure promotes consistency,strengthens financial and regulatory safeguards,and provides employees with transparent and explicit expectations for participation in CCUA's Tuition Reimbursement Program. POLICY OVERVIEW: The standalone Tuition Reimbursement Policy establishes clear eligibility criteria, reimbursable expenses, required documentation, repayment obligations, tax treatment, and audit expectations. It also prohibits duplicate funding from grants, scholarships, or other financial aid and outlines compliance requirements under IRS §127, Florida Statutes Chapter 817, and CCUA's Code of Ethics. BUDGET IMPACT: N/A—Reimbursements are processed within existing budgeted professional development funds. RECOMMENDATION: Staff respectfully request the Board of Supervisors' approval of the Tuition Reimbursement Policy. ATTACHMENTS: Copy of Tuition Reimbursement Policy c`),N COU^,T` �fl Gr/en. AUTt�O�`� POLICY & PROCEDURES Tuition Reimbursement Effective Date: December 02, 2025 Revision Date: N/A PURPOSE The Clay County Utility Authority (CCUA) aims to encourage and support the continued education and professional development of employees by providing reimbursement for eligible tuition expenses that directly enhance job performance and career growth. This policy also ensures compliance with applicable federal and state laws. POLICY CCUA will, as budget permits, reimburse eligible employees for approved tuition, books, course material, and other preapproved expenses related to courses completed at accredited institutions. The courses or program must directly relate to their current position or a reasonable promotional path within the organization. CCUA prohibits employees from receiving reimbursement for tuition expenses that have been paid or subsidized through other forms of financial assistance, including but not limited to federal or state grants, scholarships, tuition waivers, fellowships, or third-party sponsorships. Reimbursement Amounts and Limits • CCUA will reimburse the full cost of eligible tuition; however, only the first $5,250 per calendar year is excludable from the employee's taxable income under IRS §127 (Educational Assistance Programs). • Reimbursement covers tuition, mandatory course fees, and required books. • Reimbursement is made after course completion and submission of all required documentation (see Required Documentation). Prohibition on Duplicate (Double) Funding Employees are not eligible for tuition reimbursement for any portion of educational expenses that are covered, paid, or offset by any other source, including but not limited to: • Federal or state financial aid programs (e.g., Pell Grants, GI Bill, Workforce Innovation & Opportunity Act(WIOA) funding, Florida Bright Futures, etc.) • Institutional or private scholarships, tuition waivers, or fellowships • Third-party sponsorships or employer payments from another organization • Educational discounts that reduce out-of-pocket tuition cost Employees must disclose all sources of educational assistance when applying for reimbursement. Failure to disclose such funding, or misrepresenting the amount of out-of-pocket tuition paid,will result in: • Ineligibility to participate in CCUA's Tuition Reimbursement Program • Denial or revocation of reimbursement • Repayment of any funds previously reimbursed • Disciplinary action up to and including termination, and potential referral for investigation under Florida Statutes Chapter 817 (fraudulent claims). Page 1 of 3 Tuition Reimbursement-Policy&Procedures Required Documentation Employees must submit the following documentation for reimbursement: 1. Completed Tuition Reimbursement Request Form(available through Human Resources). 2. Proof of payment showing the employee personally paid tuition,books, course materials, or other preapproved expenses (e.g., credit card receipt, bank statement, or institution payment confirmation). 3. Official transcript or grade report showing a grade of"B" or higher. 4. Itemized billing statement from the educational institution identifying all tuition, fees, and related expenses for each course. 5. If the employee receives any financial aid, a Financial Aid Disbursement Statement or account summary from the school must be provided to verify out-of-pocket expenses. CCUA reserves the right to verify documentation directly with the institution and may require the employee to sign a FERPA-compliant release form authorizing the institution to provide records to CCUA. Repayment Obligations If an employee voluntarily separates employment within 12 months of receiving tuition reimbursement, they must repay CCUA 50% of the reimbursed amount. Repayment may be deducted from the employee's final paycheck, where legally permissible, or invoiced for direct repayment of the tuition reimbursement received. Tax Treatment IRS §127 states up to$5,250 per calendar year in employer-provided educational assistance is tax- exempt.Employees acknowledge and understand amounts exceeding this threshold or not meeting program criteria shall be treated as taxable income to the employee. The annual limit applies to amounts paid and expenses incurred by the employer during a calendar year. If an employee seeks reimbursement for expenses incurred, the expenses must be paid by the employee in the same calendar year for which reimbursement is made by the employer. Tuition Reimbursement benefits do not include payments for the following items: • Meals, lodging or transportation. • Tools or supplies (other than textbooks)that you can keep after completing the course of instruction(for example, educational assistance does not include payments for a computer or laptop that you keep). • Courses involving sports, games or hobbies unless they: o Have a reasonable relationship to CCUA, or o Are required as part of a degree program. Administration and Audit Human Resources will maintain records of all reimbursements and may conduct random or targeted audits to verify compliance with this policy. Employees must cooperate fully with any such audit and provide additional documentation upon request. Any falsification, omission, or non-cooperation during an audit will result in disciplinary action and potential legal referral. ELIGIBILITY Page 2 of 3 Tuition Reimbursement-Policy&Procedures To be eligible for tuition reimbursement: 1. The employee must be employed full-time and in good standing at the start and completion of the course. 2. The course(s)must be taken at a regionally accredited college,university, or technical school. 3. The course(s)must be job-related or part of a degree or certification program that supports current or future advancement within CCUA. 4. Courses must result in a grade of`B" or higher(or"Pass" if taken Pass/Fail). OTHER RELATED MATERIAL • IRS Code §127—Educational Assistance Programs • U.S. Department of Education, Title IV Federal Student Aid • Florida Statutes Chapter 817, Fraudulent Practices • CCUA Code of Ethics #1 —Integrity and Honesty CHANGE LOG Date of Change Description of Change Page 3 of 3