Monthly Closing Deadlines

The August 2023 period in the general ledger has closed.  The current and future month-end processing deadline schedules are located at Monthly Closing Deadlines.

Unrelated Business Income Tax (UBIT) – IRS Form 990-T

Florida International University is required by Federal law to prepare an income tax return for net income from activities unrelated to the exempt mission of the University. This tax return (Form 990-T) must be filed annually with the Internal Revenue Service (IRS).

The IRS has provided the following criteria to identify activities that are unrelated to the mission of an exempt organization. An activity is an unrelated business (and subject to unrelated business income tax “UBIT”) if it meets three requirements: (1) It is a “trade or business”; (2) It is “regularly carried on”; and (3) It is “not substantially related” to furthering FIU’s exempt purpose.  Since these terms are given a specific meaning within the rules set forth by the IRS and several important exceptions exist, guidelines for these criteria are available from the Tax Compliance office for your review.

The Tax Compliance office has begun gathering the data for the fiscal year ended June 30, 2023, and cannot identify all activities that are unrelated and subject to Federal income tax from the accounting records alone. Therefore, we are asking that all Departments review their operations for the 2022-2023 fiscal-year and determine what activities, if any, are potentially unrelated business income. Please keep in mind that Florida International University must account for and report all unrelated business income pursuant to the Internal Revenue Code.

Some departments may have received lost revenue reimbursements, from the Higher Education Emergency Relief Funds (HEERF), for the fiscal year ended June 30, 2023. Do not report this revenue as UBI even when the reimbursement was for lost revenue that would normally be treated as UBI. The lost revenue reimbursement is Federal Aid and not subject to UBI.

Please note that due to recent changes in the tax law, departments that conduct several unrelated activities, (rentals, advertising income, admission fee income, etc.) must complete a separate UBIT questionnaire and UBIT income statement for each activity. Do not combine multiple activities into a single questionnaire and income statement.

A reminder email will be sent to those Department Heads & Finance Managers with UBIT activity in prior years, with links to the UBIT questionnaire and additional UBIT information. If you did not receive the email and have UBI to report or want additional guidance, the information is also available on the Controller’s website at the following link: https://controller.fiu.edu/departments/accounting-reporting/tax-compliance-payroll/unrelated/ 

If your department does not generate Unrelated Business Income (UBI) and only conducts educational activities, you do not need to return the UBI Questionnaire. If you have questions about unrelated business income or are conducting a revenue generating activity, and are unsure if reporting is required, please contact tax@fiu.edu or call (305) 348-2655 for more information.

Please submit your UBI information no later than September 30, 2023.

Travel News

• Travel Proxies and HR Supervisors, Expense Managers, Project Managers, or Supplemental Approver must ensure Travel Authorizations, Cash Advances, and Expense Reports are being submitted properly and in a timely matter in accordance with FIU Travel Policy and Florida Statute (FS) 112.061.
• The Expense Report must be signed by the employee whose name appears at the top of the document via DocuSign or the “Print and Sign” option.
• Ensure all receipts and supporting documentation are legible and uploaded prior to submitting an expense report to avoid delay in reimbursements.
• All documents should be scanned into a single PDF file rather than individually.
• The location of pick-up and drop-off must be annotated on the receipt for Taxi, Uber, Lyft, or shuttle (i.e., home to the airport, airport to the hotel, etc.)
• If a University credit card or purchase order was used to pay for expenses, it must be annotated on the receipts prior to submitting the expense report.
• Vicinity travel will not be reimbursed if the dates claimed are over ninety (90) days old.
• The University’s procurement system must be utilized to the fullest extent for the operation of FIU. The Purchasing Services and the Credit Card Solutions department serve as the solution for acquiring equipment, furnishings, supplies, food, travel, renting meeting rooms, etc. 

Travel Module Updates

The Travel and Expense module is now the T&E Compliance Center. The new name indicates the merging of the financial workflow with pre- and post-trip compliance screening and the State of Florida and federal reporting requirements.

Travel Authorization Workflow

It has been enhanced with specific information and a seamless screening process before departure to assist international travelers with protecting themselves and the institution from foreign influence threats and being well prepared and safe while abroad.

Expense Report Workflow

It has been modified for the traveler to include information that must be reported to the State of Florida annually. As a reminder, all employees (including student employees) must complete the TA and the ER/Post-Trip Compliance report for international trips, regardless of the funding source. Students not employed must complete the pre-departure registration and orientation through the Office of Education Abroad (contact edabroad@fiu.edu); should FIU be funding the trip, they also need a TA and ER/Post-Trip Compliance report to first encumber and eventually disburse these funds. 

Limiting Allowable Hotel Expenses Continues for FY-2024

For the current fiscal year, the Florida Legislature has mandated in HB 5003 that lodging paid with state funding may not exceed $225 per night for university employees for events (meetings, conferences, or conventions) sponsored or organized in whole or in part by Florida International University. State funds include all E&G funds and state-sponsored grants.  Amounts exceeding $225 per night may be paid through an alternative funding source.

Departments must ensure this law’s requirements are met when lodging for FIU employees attending FIU-sponsored events.