In This Issue
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 firstname.lastname@example.org 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.
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:
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:
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:
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.