December, 2015 - FMS Newsletter
Financial Management Services

In This Issue

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March, 2016

Capital Asset Object Code Changes

Effective January 2016, federally funded object codes (7030, 7035, and 7530) will no longer be used to classify capital assets that were purchased with federal funds. Capital equipment purchases should now use object code 7000 Capital Equipment or 7015 Computer Equipment regardless of funding. Fabrications should now use object code 7500 Capital Equipment – University Constructed. Federally funded assets will now be identified using the same account/award attributes as the Office of Research Administration. This change will greatly improve the accuracy of this information.

Federally Owned or Other Owned object codes will still continue to be used and assigned by the Office of Research Administration when appropriate.

The Federal Contribution amount can be viewed in KFS on the Asset Inquiry, Asset Edit and Retirement Global screens. In addition, a Federally Funded Asset Listing is available in IUIE and can be found in IUIE Master Catalog/Kuali Financial/Capital Asset Management System/CAMS Internal Reports/Audit Reports. This report can be used to provide a list of federally funded assets for your organization.

Please contact capasset@iu.edu if you have any questions regarding this change.

Vendor Banking Information on Vendor Invoices

The question has been asked, "Am I required to redact vendor bank account information on vendor invoices?"

The answer is "no". The Data Classification Matrix linked on the Data Management at IU webpage documents that vendor bank information on vendor invoices is classified as restricted at Indiana University and does not require redaction.

Additional Detail: The above statement does not apply to ACH authorization forms submitted to Indiana University. Bank account numbers on ACH authorization forms are classified as critical data. As such, ACH forms must never be attached to notes in KFS documents.

Subscriptions and Memberships

This newsletter article repeats the valuable information from the Procurement Services Newsletter dated Fall 2014.

Subscriptions should be processed on a DV (unless they require a contract signature or are software subscriptions). The billing notice is typically generated through a renewal reminder rather than through an invoice, therefore, a DV is the appropriate method for payment.

Memberships should be processed on a DV if the membership does not require an agreement or ongoing services/data sets (such as Cloud) which would require a security review.

The $1,000 limit on DV transactions applies to "Compensation for Services" and "Payments for Contractual Agreements" payment reasons and does NOT apply to subscription or membership payments.

Click here for the Membership/Sponsorship form.

Accounts Payable Steps for Timely Payments

FMS Accounts Payable (AP) focuses on one mission: To process timely and accurate payments for products and services for Indiana University. AP has identified the following top four (4) action steps between AP, IU’s departments, and vendors to facilitate that mission.

Four action steps to ensure timely payment:

  • Purchase Orders (POs)
    • Always place the PO number in a conspicuous place on the invoice. Remember, a department person's name cannot substitute for a PO number. A name will not facilitate payment to the vendor.
    • Ensure that every invoice has a unique invoice number that is easily identified. Invoice numbers should not be repeated on future invoices.
    • Submit only one invoice. Resubmitting invoices does not expedite payment.
  • Disbursement Vouchers (DVs)
    • When submitting W-8BENs for DV Vendor approval, be sure to write the Vendor Document number on the W-8BEN in a conspicuous place.

Thank you for taking these steps to help AP issue timely and accurate payments which is essential to maintaining operations at Indiana University.

Please contact AP with any comments or feedback on this process at:

Upcoming Policy Change

Are you using Internal Billing (IB), Service Billing (SB) or ID Billing documents?

Recharge activity, as a general rule, is any internal transaction that records income to one university account and expense to another, using any KFS document type.

Typically, this activity is recorded on an IB, SB or ID Billing document.

Recharge activity is governed by Federal Cost Accounting Standards and these activities have increased significantly across the university in recent years. Financial Management Services (FMS) is developing a new policy and other supporting documentation to help ensure compliance with the Federal Cost Accounting Standards. A draft version of the policy along with other supporting documentation can be found on our new Cost Accounting website: https://fms.iu.edu/cost.

A few of the primary changes include:

  • Current recharge activity with estimated annual revenues of less than $100,000 will no longer be permitted to use IBs, SBs, or ID Billings. These activities will now be required to use alternate financial documents to share costs (e.g., Salary Transfers, Distribution of Income and Expense (expense-to-expense transactions), General Error Corrections (expense-to-expense transactions) or Transfer of Funds).
  • Recharge activity equal to or greater than $100,000 annually must be separated into a dedicated recharge/service center (66) account.
  • Recharge/Service Center (66) accounts must submit a proposed rate to FMS on at least a biennial basis, according to the standards set forth in RSOP 2: Reporting Requirements for Recharge/Service Centers.

For more details on recharge activity, please visit the FMS Cost Website at https://fms.iu.edu/cost.

Scam Calls and Emails Using the IRS as Bait

IRS scams take many forms, both phone calls and emails, from thieves pretending to be the IRS. They are using the IRS name, logo or fake web sites trying to steal your money or your identity. Here some things to remember this tax season:

  • The IRS will NOT call you for payment without first sending you a bill (always ask for a call back number and employee badge number). You can then call the IRS at 800-829-1040 to validate the information received.
  • The IRS will NOT demand payment in a certain way, nor do they make threats.
  • Do NOT open email attachments or reply to them. Instead forward the email to phishing@irs.gov and then delete it.

If you do not owe taxes (or have no reason to believe you do) and you are contacted to make a tax payment, report these scams to:

If you have any questions, you can contact the IRS at 800-829-1040.

Please review the complete IRS notice IRS Tax Tip 2016-19: https://www.irs.gov/uac/Scam-Calls-and-Emails-Using-IRS-as-Bait-Persist.

We encourage you to pass this information along to all in your organization. First-time filers and international visitors are especially vulnerable to these scams.

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