606  Assignment of Motor Pool Vehicle to the President

Approved by Board of Trustees
Effective Date: June 5, 2017
Responsible Division: Business and Finance
Responsible Office:  Business and Finance
Responsible Officer:  Associate Vice President, Business and Finance

I. Purpose

This policy establishes that Middle Tennessee State University (MTSU or University) Motor Pool vehicles may be assigned to the University President for his/her official use. 

II. General

A.  At the time of employment, the President may elect to receive:

1.  assignment of a University motor pool vehicle for his/her use; or

2.  a motor vehicle allowance.

B.  This election should be made at either:

1.  the time of employment, or

2.  as assigned motor pool vehicles are replaced.

a.  This replacement should occur as needed based on the useful life of the vehicle and accumulated mileage.

b.  In no circumstances should the replacement cycle be less than three (3) years.

C.  Once the President elects to take the motor vehicle allowance, he/she cannot change to an assigned vehicle.

III. Vehicle Assignment

A.  An appropriate motor vehicle is defined as a late model (no more than five [5] years old) four (4)-door passenger sedan. Operating and maintenance costs of the assigned motor pool vehicle shall be the responsibility of the President’s office. In recognition that use of the assigned motor vehicle may include non-business use, the President is required to maintain appropriate types and amounts of insurance to cover any non-business use of the motor vehicle.

B.  To the degree that the motor pool vehicle assigned is used for non-business purposes, MTSU will report on the employee’s Form W-2 the value of such personal use in the employee’s income as compensation subject to withholding for federal income taxes and applicable FICA taxes. Additionally, these amounts shall be considered as compensation for employee benefit purposes.

IV. Vehicle Allowance

A.  The President shall receive a monthly cash allowance from MTSU, should this option be selected. In recognition of this payment, the President shall be responsible for all expenses attendant to the:

1.  Purchase or lease (and replacement as needed) of a motor vehicle appropriately suited for the conduct of University business. An appropriate motor vehicle is defined as a late model (no more than five [5] years old) four (4)-door passenger vehicle.

2.  Operation, insurance, maintenance, and repair cost of said motor vehicle.

B.  The monthly automobile allowance amount shall be set in the President’s employment agreement. The allowance consists of two (2) components:

1.  A capital component based on the estimated monthly lease value of an appropriately suited motor vehicle; and,