KFS (Kuali Financial System) Newsletter
FMS and Purchasing are collaborating on a KFS newsletter to keep you apprised of new features and project updates. If you have not received this newsletter and would like to, please email email@example.com to subscribe
The implementation of KFS has now been set for February 15, 2013. The conversion will begin at the end of the day and both the FIS and EPIC systems will be taken down at that time. Once the conversion has been completed, users will begin using KFS for all financial transactions or procurement activities.
For more information on KFS, visit IU’s KFS website.
1099 Reporting and Object Codes
We would like to stress the importance of using the correct object codes when completing documents.
Indiana University is required to report certain business transactions to the IRS by filing Form 1099-MISC. Many payments made through EPIC, FIS and PDP are reportable on this form. For the year 2011, IU filed over 5,500 such forms. Based on IRS guidelines, IU determines (by the object code applied to each payment), what is reportable for tax purposes. Correct use should be reviewed at the department and the fiscal officer.
The following are a few examples of reportable payments according to the IRS:
- Payments for services performed by people (or single member LLC) that are non-IU employees
- Rent or royalty payments
- Prizes and awards that are not for services, such as prize paid for winning a piano competition, door prizes and contests of all types
- Payments to a physician, physicians' corporation, or other supplier of health and medical services
- Gross proceeds paid to attorneys
Thus, it is vital to use the correct object code when initiating a payment. Failure to properly report a payment can result in IRS penalties ranging from $30.00 to $100.00 per information return, with a maximum penalty of $1,500,000.00 per year. Intentional disregard of filing requirements has a penalty of $250 per information return with no maximum penalty. Additionally, there is the cost to IU and the recipient for the time and effort associated with the finding.
A hypothetical example is a payment using an incorrect object code for photographic service for a brochure. The object code 4864 (Promotional Supplies and Expense) is entered, when the correct code should have been 4557 (Photography Services). This payment was coded for goods which are not reportable to the IRS, while payments for services are reportable for tax purposes.
If you are ever unsure of the appropriate code or have any further questions please consult the Frequently Used Object Codes (PDF) or contact Jeremy Becker in the Tax department.
Purchasing has recently engaged in new contracts with several collection agencies. The list of these new contracts and agencies can be found in the Collection Agencies section of the Purchasing website.
With accordance to Policy 20, departments must use contracted vendors when available. If you are currently using a collection agency that is not actively collecting, we encourage you to utilize one of these new suppliers. If you have question or concerns about changing suppliers and how that my impact your current collection status, please contact Linda Blair or Sara Hammond at IU Purchasing.
If you need to employ the services of a collection agency for new collections, please only use the agencies on the contracted list.
Recurring Order Tips
When creating a Recurring Order that may require multiple invoices being processed against it, do not include a Quantity on the requisition.
Leave the Quantity blank to allow more than one invoice to be paid.
When creating a Recurring Order, the Begin Date and the End Date of the order should be populated on the Payment Info tab – not just in the description.
The system will then route the Requisition to the Purchasing Department for completion of the Purchase Order.
If the Payment Info tab is not completed, the system may generate an Automatic Purchase Order (APO) which does not allow recurring charges.
Purchasing Staff Updates
Congratulations Linda Blair, Contract Manager! Linda was recently notified by the Universal Public Procurement Certification Council (UPPCC) that she has earned recognition from the UPPCC by receiving the Certified Professional Public Buyer (CPPB) credential.
This certification requires a minimum of 4 years purchasing experience, 96 contact hours in purchasing seminars, and passing the certification test. The CPPB certification recognizes only those professionals who have fulfilled these prescribed standards of competency in public procurement.
Tresa Fredericks has been with IU for over 5 years and with the Purchasing department for 3 years serving as a Purchasing Representative. She has accepted the position of Contract Manager, replacing Tom Ellis who has accepted a position in Capital Projects and Facilities. In his new position, Tom still has Purchasing responsibilities within the construction activities.
Tresa is responsible for the purchase of Food & Beverage, Shipping, Vehicles, Uniforms, Relocations, and Books and Publications.
Tresa comes to the position with many years of purchasing experience having owned her own commercial decorating business in Bloomington. The next time you talk to Tresa, please congratulate her on her promotion!
Terri Loyal has recently accepted Tresa Fredericks previous position as Purchasing Representative. Terri has been with IU for over 5 years and came to Purchasing from the IU Health Center in their Operations Support Division.
Terri is working with a team of 4 contract managers (Tresa Fredericks, Tim Rice, Rob Halter and Phil Cole). Her main responsibilities are to provide a high level of customer support to all campuses, departments and suppliers in helping to manage the purchase order and quote process for those four contract managers. Welcome to Purchasing, Terri!
Matt Estell joined the IUPUI staff as a part-time Contract Manager. Matt recently completed his law degree and is licensed in the state of Indiana. He is assisting in the Professional Services and Software areas.
Kimberly Harris-Spicer is the new Records Retention Clerk working with Laurie Sylvester. She replaces Shannon Wise.
Kim comes to Purchasing having been a National Vendor Manager and a National Senior Buyer for the Tree of Life which was currently dispersed. Kim is currently working on validating W-9’s as well as some special projects.
Loretta Gurnell, Director, Supplier Diversity, resigned November 26th to take a position with a subsidiary of the Raytheon Corporation. Rob Halter will be assuming the Supplier Diversity responsibilities while continuing as Executive Director of Purchasing. This allows the Purchasing Department to further incorporate the goals of the Office of Supplier Diversity into the everyday fabric of the Purchasing Department.
Sara Hammond, Director of Purchasing Administration is leaving Purchasing in Indiana for a life in the Florida sun with her husband Roy. However Sara is not retiring. She has taken a position as Director of Purchasing for Moorings Park Retirement Community in Naples Florida. The majority of Sara’s career has been in Life Sciences to include all scientific and medical supplies, equipment and services for clinical and research activities. For the past two years Sara has been working with Professional Services agreements. This move will afford her the opportunity to employ her purchasing skills, reengage in Life Sciences in a medical environment and enjoy a new life in Florida. We wish her well.