January 2022 Core Facilities Brown Bag Jan 28,

Transcript:January 2022 Core Facilities Brown Bag Jan 28,:
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. S10 Letters of Intent Due February 7th Note that his announcement is for 3 years Internal Grant / ReLODE proposals due February 10th 2 UBIT Announcements 3 Understanding Unrelated Business Income (UBI) Presented by Yan Qiu Core Facilities Administration 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 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 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 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 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 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 What changed from FY20 tax reporting? Cost basis can include F&A UBIT rate is 21% Calculation template change Cost basis tied