Thank to all for your thoughts and assistance!  This is what I have
distilled from my own readings and the conversation so far:

1.  Payments to students for a fellowship or scholarship are not taxable
when used for tuition, fees, books, equipment.  However, room and board is
taxable and payments for any services provided by the student would be taxable.

2.  Individuals traveling on University business--paid by a grant or
not--as an employee or not--should not have to pay taxes on the travel costs.

Therefore since the funds were not given for a student scholarship or
fellowship and the the students were not being paid to perform a
service--this was volunteer work--and the students were traveling on
University business--they had no control over it--the cost of the travel
should not be reported or taxed relative to the students.

Does this do it?

Pam

1.  The external funding was to support research activities not student
scholarships or fellowships.
2.  The students role students are not paid; they are volunteering their time.
2.  As volunteers, their time could be counted as University cost share.
3.  As part of the University's cost share, the students would be traveling
on university business.
4.  Travel paid for students on University business is not taxable.
5.

Pamela F. Miller, Ph.D.
Director, Office of Sponsored Projects
The University of San Francisco
2130 Fulton Street
San Francisco, CA  94117-1080
TEL  415-422-5368
FAX  415-422-6222
EMAIL  xxxxxx@usfca.edu

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