January 2022 Core Facilities Brown Bag Jan 28, 2022 Agenda Announcements UBIT NUcore Updates Annual Reports Equipment Grants External Business 1 Announcements Sheren Jasim has left CFA Continue to use CoreFacilities-Office email address.
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Presentation Transcript
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January 2022 Core Facilities Brown Bag Jan 28, 2022<br>
Announcements Sheren Jasim has left CFA
Continue to use CoreFacilities-Office email address.
S10 Letters of Intent Due February 7th
Note that his announcement is for 3 years
Internal Grant / ReLODE proposals due February 10th 2<br>
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UBIT Announcements 3<br>
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Understanding Unrelated Business Income (UBI) Presented by Yan Qiu Core Facilities Administration<br>
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What are the benefits of completing the UBI report? Completion of UBI templates saves cores $
For FY20 ~$4.5M gross income reduced to ~$1.5M in taxable income and only ~$128K UBIT paid
Prepares cores for an audit
Maintain documentation of receipts and cost basis must be auditable
If NUcore matches NUFinancials for receipt dates and cost study information matches NUcore, a strong audit trail exists
Make sure CRT’s are reconciled in NUcore in same FY as received in NUFinancials (preferably same date)
Limited corrections can be made in NUcore by un-reconciling and re-reconciling with correct date 5<br>
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Who needs to complete the UBI report? Any Northwestern University Recharge Center that collected any revenue from External Users in FY21, including academic, government, hospital-affiliated, and commercial External Users. 6<br>
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Why is research revenue from External Users subject to federal and state taxation? Northwestern is required to annually report its UBI to the IRS
Certain states in which Northwestern operates is required to file state corporate income tax returns also charge state taxes on UBI. 7<br>
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What do you need to complete the UBI report? Accurate and reconciled financial data for FY21 revenue from External Users
Answers to the qualitative questions for each revenue line in the report 8<br>
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What type of transactions should be included on the UBI report? Include all revenue transactions from External Users deposited in the reporting fiscal year.
Do include payments for work started and/or completed in the previous fiscal year and collected in the reporting year.
Do Not include payments for work started and/or completed in the reporting year but Not collected in the reporting year. 9<br>
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Why is the UBI report important? Without complete qualitative responses, all net income from your Recharge Center’s External Users in FY21 will be taxed at the 21% federal UBI tax rate plus state UBI tax rate. 10<br>
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What changed from FY20 tax reporting? Cost basis can include F&A
UBIT rate is 21%
Calculation template change
Cost basis tied to Cost Study
Information provide in FY21 Cost Study used to link NUcore service lines to Cost Study lines
Core must manually identify passthrough or cases where no link found in cost study 11<br>
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Important Deadlines NUcore and NUFinancials should be reconciled by 02/09/2022
Report needs to be reviewed, filled out and returned to CFA by 03/11/2022
CFA will be turning data over to Tax a Regulatory Services on 03/25/2022
If NUFinancials exceeds documented revenue in UBI sheet, a line will be added with the difference and assumption is that receipts will be taxed at highest UBI rate 12<br>
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Need Help? General questions: Yan Qiu (yan.qiu1@northwestern.edu)
Tax questions: Shereen Olickal (shereen.olickal@northwestern.edu )
NUcore questions: nucore@northwestern.edu 13<br>
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Questions?<br>
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NUcore Updates NUcore Updates 15<br>
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Annual Reports Timeline
Annual User Survey to be released Jan 31st
Narrative instructions posted by March 1st
Dashboards posted by March 1st
https://tableau.northwestern.edu/#/site/OR/projects/551
Security taken from Directory Document
Chart in NUcore are interactive
Feedback on dashboards welcome
Reporting year ends March 31st
Reports will be due May 2nd
Firm deadlines
Changes from 2021 Report/2022 Request
Continue to reduce requests for information that can be obtained elsewhere
FSM requests remain same
OR requests to be clarified to match awards provided in FY2022
Seeking to partner in strategic investments (training, technique development)
Only funding requests that change research activities
Not funding financial only requests
Not funding requests to pay for activities already underway 16<br>
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Annual Reports SWOC and Goals Feedback
Strategic planning is improving
Understandable that focus remained on operational recovery
Still a trend to carry over goals year to year
Goals for this discussion are projects that have a beginning and end date and address a need of the core. Goals changes annually.
Deliverables are not covered in this section but are addressed by examining the mission statement, user survey, budget, and activity. Deliverables remain relatively constant.
Focus on actionable items
Unless your organizational unit provides alternate guidance, finance focus should be on hitting FY2022 projections and achieving a balance FY2023 budget 17<br>
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Annual Reports SWOC Question Examples 18<br>
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Annual Reports Goals
Ask:
If completed, can it make a lasting and important change?
Do you have control over the goal or is it the goal the outcome? 19<br>
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Equipment Grants Fall
Second round using “Expert Reviewer” written review and leadership prioritization
Funded $695K in requests (17 / 20)
4 Proposals converted to ReLODE
Heavy scrutiny on the justification for ReLODE
What is primary driver for project?
Covert to ReLODE – Usage dominated by existing users without clear demonstration of need for the upgrade
Keep as Grant – New users would justify upgrade on their own and proposed system has capacity to handle both new and existing experiments
Replacement, but keep as grant– Avoid focus on percentage rate increase. A 5-10% rate increase is typically acceptable to PI’s if average PI’s usage is $10-20K /year but a 50% rate increase is likely acceptable for PI’s using $1,000/year. 20<br>
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Equipment Grants Spring
Total funding dependent on quality of proposals and external factors
ReLODE – may award in FY22 or 23
All – Equipment awarded in FY22 must be received in FY22 or FY23 budget will be reduced
Verify terms in PO’s
Expect short window between award notice and PO deadline
Feb 10th submission date is firm 21<br>
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External Business Last major review of external business was in 2014
Current system is highly decentralized
NUcore, LSA, Visitor’s Agreement not linked. Document have different owners
Information on websites is not consistent
Some requirements are out of date
CFA planning update the process
Timeline TBD
CFA seeking feedback on the process until 2/10.
Until a formal change is announced, continue to operate as you have been with one exception:
If a PO is required by a requestor, there must be an LSA covering terms 22<br>
