As part of Finance Forward, the Division of Finance (DoF) is increasing the Limited Engagement (LE) threshold to $5,000 per transaction, effective immediately. The annual limit will remain the same at $5,000. Based on feedback from Schools and Centers and data analysis, we expect this change will reduce administrative burden by expanding the volume of individual service providers that are eligible for the streamlined LE process.
With this policy change, compliance remains a top priority. It is critical for Schools and Centers to follow the current LE process in full before work is performed. To support compliance, DoF will implement additional controls to monitor policy adherence.
Increase in Limited Engagement Threshold Per Individual Transaction
What’s Changing?
- The University is raising the Limited Engagement dollar threshold for individual transactions from $1,000 to $5,000 effective immediately.
- The Division of Finance will be monitoring and providing new reporting to senior leadership on adherence to the LE policy.
What’s NOT Changing?
- The annual Limited Engagement threshold will remain at $5,000.
- Per policy 2319.3, the definition of Limited Engagement remains the same:
- The individual is a guest speaker, guest lecturer, artist, performer, writer/editor, board member, critic, preceptor, or mentor of an academic nature. The individual is not University faculty, staff, or student. For additional clarity on who qualifies in each of the above categories, please see below.
- The engagement is limited to a short-term duration, typically less than 30 days.
- The service payment to the individual has a maximum dollar amount of $5,000 per transaction; $5,000 per calendar year. This is not to pay individuals on an hourly basis.
- The overall process and documentation for onboarding and processing non-po payment requests for Limited Engagements will remain the same at this time.
Clarity on Limited Engagement Service Types
Below is expanded guidance on typical LE service types with definitions and examples. As a reminder, if the service payment is over $5,000, individuals within these service types should be treated as an Independent Contractor with a Purchase Order and standalone agreement.
| Penn LE Service Types | Definition/Examples |
| Guest Speaker | Expert, professional, or influential individual who charges a fee to deliver a talk or presentation at an event |
| Guest Lecturer | An academic or professional expert who charges a fee to deliver a lecture, a limited series of lectures, visiting professors guest lecturing at a course on a limited basis |
| Artist | Artist doing an art exhibit, stage set and light designer, costume designer, choreographer |
| Performer | DJ, singer, comedian, dancer, musician / instrumentalist, actor, magician/clowns, juggler/circus performer, performance painter (i.e. sand painter) |
| Writer/Editor | Writer/editor for grants, articles, manuscript reviewer / editor |
| Board Member | Payment to advisory/directory board members for duties |
| Critic | Someone paid to critique/write a review of a piece of work (literary, artistic, etc.) or paid to judge a competition |
| Preceptor | An experienced professional who mentors, supervises, and trains students or trainees in a practical, hands-on learning environment |
| Mentor of an Academic Nature | An experienced faculty member, researcher, or professional who provides guidance, support, and advice to students, scholars, or junior faculty in their academic and professional development |
Future Vision for ISPs
We recognize the need to reengineer our broader Independent Service Provider (ISP) process, including Limited Engagement, to make it more efficient, user-friendly, and compliant. Over the coming months, a team of Central and School and Center representatives will work to streamline this process, providing clearer guidance and enhanced controls to ensure policy compliance. Please stay tuned for future communications on this work.
Have Questions?
Policies related to Limited Engagement can be found here. For any further questions, please contact BEN Helps.