effective january 1, 2014 sales taxes must be collected on admission charges to entertainment events...
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Effective January 1, 2014 sales taxes must be collected on admission charges to entertainment events and remitted to the N.C. Department of Revenue.
N.C. General Statute 105-164.4(a)(10) imposes a tax on a retailer (including the University) at the current rate of 4.75% general State and applicable local and transit rates (currently 2.25% for Pitt County) of sales and use tax to admission charges to an entertainment activity listed below: ◦ A live performance or other live event of any kind. (most common for
ECU)◦ A motion picture or film.◦ A museum, a cultural site, a garden, an exhibit, a show or a similar
attraction or a guided tour at any of the attractions.
*Admission charge includes charge for a single ticket, a multi-occasion ticket, a seasonal pass, an annual pass and a cover charge
◦ A live performance or other live event of any kind. (most common for ECU)
◦ A motion picture or film.◦ A museum, a cultural site, a garden, an exhibit, a show or a
similar attraction or a guided tour at any of the attractions.
Types of Events◦ Sporting Events◦ Film Screenings◦ Lectures◦ Exhibits◦ Performances
Charges that Generally Do Not Constitute Admission Charges to an entertainment activity subject to tax under N.C. Gen. Stat. § 105-164.4(a)(10):
a.Registration fee to participate in a sporting activity.
b.Tuition or fee for a class or other learning activity that includes instruction.
c.A registration fee for an educational seminar or workshop.
d.Registration to attend summer camp.
e.Fees to bowl, skate, swim, or play miniature golf.
f.Fees paid to fish from a pier and not to observe persons fishing.
g.Golf greens fees or driving range fees.
h.A fee to ride a means of transportation where the purpose is for the transportation.
i.Boat tour, carriage ride, and similar activities where the fee paid does not include admission to an attraction.
j.The retail sale of prepared food as defined in G.S. 105-164.3(28) subject to sales and use tax at the 4.75%general State and applicable local and transit rates of sales and use tax.
k.Admission tickets given away for free that do not constitute bartered transactions.
Departments will need to complete and submit an Evaluation Form-Admission Charged Events
Form can be found on Financial Services website in the Helpful Forms section.
Send questions to [email protected]
Institutional Trust FundsEast Carolina University
Financial Services, MS 203
3800 E. 10th St. 2nd Floor
Sherrilyn Johnson, Financial Director - Institutional Trust Funds/Foundations
Who We AreInstitutional Trust Funds Office
Financial Services
3800 E. 10th St. 2nd Floor
a.k.a. Special Funds
Accountants:
Sharon Cullipher * Cindy Modlin * Virginia Bridgman
http://www.ecu.edu/cs-admin/financial_serv/specialf/index.cfm
What are Institutional Trust Funds?• Are established at the University level by authority
of Chapter 116, Article 1 of the General Statutes• Are set up for specific business purposes as
determined by the approved Fund Authority, and in compliance with UNC-FIT and University guidelines
• Are NOT state appropriated• Are NOT for personal benefit
G.S. 116-36.1
University & Foundation Fund TypesType of Fund Banner Fund Begins With:
State Accounts 111, 112
Institutional Trust Funds12, 14, 15, 23, 24, 25, 27, 310, 311, 312, 316, 317, 2E, 6C, 6R, 6Z
Grants 21ECU Physicians 314, 315Capital Improvement 8, 9ECU Foundation EECU Medical Foundation MECU Educational Foundation PAlumni Association A
Types of Institutional Trust FundsType of Fund Banner Fund Begins With:
Overhead/Indirect Cost 12Institutional Trust 14Auxiliary Funds 310, 311, 312, 316, 317Restricted for Scholarships 23Restricted for other use 24, 25, 27Endowments Restricted for Scholarships or other use 2E, 6R, 6C, 6Z
Institutional Trust - General• Begin with 141xxx • Must be expended in accordance with approved
fund authority form, University policies, and UNC-FIT guidelines
• Examples– Royalties, patents, copyrights– Student activity programs – Service centers if self-supporting (not captured in
Auxiliary range)– Fees for contract services
Institutional Trust - Residual Funds
• Begin with 143xxx• 143xxx are residual balances transferred from
grants– No other funding should be deposited or transferred
into these funds
• Expenditures must be research related• Established at college or division level
Overhead/Indirect Cost Funds
• Begin with 12xxxx• Indirect cost earned from grants
– No other funding should be deposited or transferred into these funds
• Expenditures must be research related• Established at college or division level
Auxiliary Funds
• Begin with 31xxxx• Includes student auxiliaries, institutional
auxiliaries, and service center operations• Self-supporting entities• Examples
– Parking and Transportation– Student Health Center– Housing and Dining– Student Stores
Restricted Trust Funds• Must be used only for the donor-restricted purpose• Restricted Trust Funds begin with 23, 24, 25, 27• Restricted Endowments begin with 2E, 6C, 6Z, 6R
– 3 parts: Corpus (6C or 6Z), Restricted (6R), Spendable (2E)
– Corpus and Restricted Funds cannot be spent– Principal is invested and interest earned is allocated
annually to the spendable fund in accordance with ECU’s endowment policy.
Virginia Bridgman 737-1138
Scholarships• Due Dates:
– All Summer Scholarships March 15th– Fall/Spring April 15th– Spring Semester Only Sept. 15th
• Must send Scholarship Information Form, Fund Manager Approval, and Scholarship Committee Survey
http://www.ecu.edu/cs-admin/financial_serv/forms/index.cfm
Virginia Bridgman 737-1138
Creating a Trust FundIf the activity meets the criteria for a trust fund:• Submit a Trust Fund Request form and a Fund
Authority form to the ITF Office with the appropriate signature approvals
• If appropriate, complete a Sales Activity Questionnaire
• A letter along with a copy of the approved Fund Authority form will be sent to the person responsible for the fund once the ITF Office has set up the fund
http://www.ecu.edu/cs-admin/financial_serv/specialf/index.cfm
Cindy Modlin 737-4916
Updating a Trust Fund• ORGN changes, responsible party changes,
purpose, source of revenue• Submit a revised Fund Authority form with the
changes and appropriate signature approvals to the ITF Office
• A copy of the approved Fund Authority form will be sent to the person responsible for the fund once the ITF Office has made the changes
• For ORGN changes: move transactions and budget to the new FOAP including payroll redistributions
Operation and Use of Trust Funds• Need to maintain a positive cash balance• Must be used as documented on the approved Fund
Authority• Must follow ECU spending guidelines, and comply
with UNC-FIT and the General Statutes• Requires VC approval to establish• Changes in scope, purpose, source of revenue,
organizational code, etc. must be reported to the ITF Office– Requires an updated Fund Authority– A new fund may be required
Matching Concept
• Revenues must be matched with the associated expenses.
*Revenue-generating Funds should not be set up in the ITF range if the
expenses/resources used to generate that revenue are paid from State or other
Funds.*
Salary and Benefit Budgets• Permanent salary and matching benefits are
budgeted on ITF funds
• Loaded into Banner Finance beginning of fiscal year by ITF Office
• Budgets should include all positions whether filled or vacant
Sharon Cullipher 737-1403
Personnel Actions• PCFs: - all about position budget & funding
- only required for permanent positions• EPAFs: - all about the assigning the employee to the
position
- required for all jobs, special pays and fringe benefits
• PCFs and EPAFs affecting ITF funds must be routed to our office for approval.
• EPAFs are only approved if position budget is available in POSMAN or if a PCF has been submitted.
• Payroll Redistributions that debit an ITF fund should be approved & posted by the ITF Office
ITF Cash Balances
• Departments should monitor frequently• Should ALWAYS have a positive balance• FGITBAL or ecuBIC Report• Does not include payments in process or deposits
in transit
https://reports.intra.ecu.edu/Reports/Pages/Folder.aspx?ItemPath=%2fecuBIC&ViewMode=List
Journal Entries/Interdepartmental Transfers
• Must meet UNC-Fit guidelines• Must verify the amount and have a valid business
purpose• Documentation required that supports the
transaction– Examples include Banner screen prints, a copy of an
invoice, a report, or an email
• Accounting staff and/or auditors should be able to clearly understand the purpose of the transaction
JE/IDT Continued• Preparer must sign his/her name or type in name and
initial beside it • Approver must sign his/her full name
– Signed names must be legible!– Approver must be on the Delegation of Authority for the
ORGN being debited.
• Preparer cannot be the approver. Preparer cannot sign as the approver on behalf of someone else
• +/- for budget entries, D/C for journal entries• J51 for Internal Sales and Services, J63 for Journal Entry
Adjustments
Administrative Overhead Charges
• Often referred to as administrative fees• Are applied to auxiliaries and most trust funds
• Why? Areas receive considerable services from Materials Management, HR, ITCS, and Financial Services beyond which the University receives State appropriation
• Need to have a cash balance available to cover this charge
Administrative Overhead Charges
• Rates:– Auxiliaries 1.25%– Institutional Trust Funds 1.75%
• Based on prior year’s expenses, excluding transfers
• Charge posts annually in the Fall
Worker’s Compensation Fee
• University maintains a pool account for supporting non-state worker’s compensation claims
• Charge is based on the amount of prior year’s salary expenditures (not including benefits)
• Charges post in the Fall of every year• Worker’s Comp rate has remained .2% for several
years, but is subject to change based on actual claims
Calculating Worker’s Comp Fee
Total Salary $141,464.22
Worker’s Comp Rate X .002
Worker’s Comp Charge $282.93
What to Expect from the ITF Office• Budget office for Institutional Trust Funds• Load salary and benefit budgets annually• Items that require ITF approval
– Journal Entries/IDT’s, Personnel Actions, Direct Pays, ITF Scholarships and Awards
• Create, Update, and Maintain all funds in our range• Process Admin Overhead charges and Worker’s Comp
fees annually• Analysis and Reporting• Enforce General Statutes, Legislation, and University
Guidelines
What Can We Do For You?
Please feel free to call us with any questions or concerns….
We are here to offer guidance and support!
ContactsVirginia Bridgman 737-1138
• Endowments [email protected] • Scholarships• Distinguished Professorships
Cindy Modlin 737-4916• Journal Entries [email protected]• Fund Set-up/Maintenance
Sharon Cullipher 737-1403• Personnel actions
[email protected]• Payroll redistributions• Budget/Financial Information