October, 2007 In this edition:
**************************** Scenario - Independent Contractor Expense Reimbursements As part of the negotiated amount to perform services for the University, an Independent Contractor (Consultant) asks for a fee for services and "expense reimbursement". The department and Procurement agree and a purchase order is issued, but only the fee is encumbered. The independent contractor then submits an invoice and their original receipts to the department for payment at the completion of the assignment. The department authorizes payment for the invoice and creates a Check Request to reimburse the independent contractor for their travel expenses, using object code 6240 - out-of-state travel. Issue: If the University allows the payment of the consultant's travel expenses under object code 6240, then we are treating the payments as nontaxable under the "accountable plan" which is only applicable to our employees. The proper treatment should be to reimburse the expenses under object code 3230. This would allow the University to report the entire amount of the payments to the consultant on IRS Tax Form 1099. Optimally, the department and consultant should submit an estimate of the expenses to be reimbursed as part of the total amount to be paid to the consultant, so that the amount can be encumbered. The department should ask the consultant to list their expenses on the invoice and provide "copies" of their original receipts as support for the amounts. The department can validate the expenses and submit the invoice for payment against the encumbrance, and the consultant would retain their original receipts and use them as expenses incurred in the operation of a business to reduce their taxable income. For past scenarios, check out the Comptroller's Corner at http://www.fso.arizona.edu/comp_corner/ **************************** International Student Programs and Services (ISPS) and the Financial Services Office (FSO) are excited to announce the introduction of a web-based tax compliance system called GLACIER. GLACIER will replace the paper-based International Tax Questionnaire (ITQ) and will provide a more efficient way for the University of Arizona to maintain tax compliance with nonresident alien tax issues, determine tax residency and evaluate income tax treaty benefits. The University of Arizona employees primarily affected by this transition are those who facilitate payments made to foreign individuals or entities. The primary users of the system will be international students with scholarships and/or employment, foreign employees and vendors. To provide an opportunity for departments to view GLACIER there will be an information and demonstration session on the GLACIER system for campus business users. Please join us at the Student Union in the Santa Rita room on October 31, 2007. Presentations will be given on the hour and individual demonstrations are available any time between 10 and 2. Effective January 2008 foreign visitor payments will be reported through GLACIER. Departments will need to contact FSO for login information for any payments made to foreign nationals through accounts payable. For questions on GLACIER please contact Joy Trent at 626-1433 or mailto:trentj@arizona.edu **************************** -Kuali Student joins the other Kuali Projects (Financial System, Research Administration and Rice) with a $2.5 million grant from the Mellon Foundation. Founding Partners include: University of British Columbia, Florida State University, University of California at Berkeley, San Joaquin Delta College and the University of Maryland. To learn more about Kuali Student visit: http://kuali.org/communities/ks/ -Release 2 of Kuali Financials is scheduled for early November and will include Purchasing, Labor Distribution and Contracts & Grants in addition to upgrades of the baseline system. -The list of Kuali Foundation partners are growing - check them out at: http://kuali.org/about/partners.shtml -Kuali Days IV in Tempe has sold out, over 300 people will be in Tempe to celebrate release 2, hear from the first implementer, Strathmore University and kick off release 3, which will include Capital Assets Management (aka FFX), Accounts Receivable, Budget Construction and Purchasing enhancements. -To learn more about Kuali, visit http://kuali.org/ or contact Kymber Horn, mailto:kymber@arizona.edu; 621-8615. **************************** A Department Head Finance and Administration Handbook, and Checklists for Administrative Reports Review, developed by the Eller College of Management, have been added to the Best Practices section of Biz.Comm. http://bizcomm.arizona.edu/BestPractices/index.htm. The Word and Excel documents are available for you to customize to meet your specific department needs. Please contact mailto:fsocommunications@fso.arizona.edu if you have any "Best Practices" to share. The Biz.Comm (Business Community) website (http://bizcomm.arizona.edu) was created as a resource for employees in the UA's financial, business, and administrative areas. **************************** Please join us Wednesday, November 28 from 2:30-4:00 pm in the Student Union, Rincon for the Business Community Open Forum (BCOF). November's BCOF will include a presentation and discussion of Compliance Issues and an update from the Network Funding Implementation Team. BCOF is open to anyone with an interest in the University's business policies and processes. The purpose is to provide information to and solicit concerns from members of the UA business community, and serve as a networking opportunity for the UA business community with their peers and central administration. See http://bizcomm.arizona.edu/BCOF.html for more information **************************** Your Question: Where can I get a list of department numbers with the department name? Reply: There are two ways to get this information. 1. Through the FRS Departmental Manual Appendices (http://www.fso.arizona.edu/fso/deptman/appendix/) 2. Through ISW: http://www.fso.arizona.edu/isw/, FRS Account Attributes, select All Accounts, click Go. Select Department. FSO maintains a database of frequently asked questions. Visit our FAQ page at http://www.fso.arizona.edu/app/faq/faq.asp to review previously asked questions, search by category or keyword, or ask a question of your own. **************************** The Service First Committee, a group charged with improving customer service at The University of Arizona, has recognized Kendra Vossler of the CatCard Office for her outstanding customer service. Kendra routinely goes the extra mile in everything she does and we are proud to have her represent the CatCard Office and FSO. **************************** *Robin Atteberry, Financial Services Specialist - Operations, Payroll Contact: Kymber
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