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August 2018 – What’s New in Financial Management    Link to past newsletters

This issue of the Financial Management Office Newsletter includes information about the following:

What’s New in Financial Management is distributed monthly.  Should you have any questions about this newsletter, contact Susan Lin via email: slin@hawaii.edu.

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Cash Control e-Document for Credit Card Payments

Target Audience: Fiscal Administrators and Staff

If a credit card is used for payment of accounts receivable/KFS invoice and thus recorded via a Cash Control/Payment Application, please enter the following data into the corresponding fields on the Cash Control:

Medium Code:  Credit Card
Reference Number:  Four-digit KFS merchant location code
Merchant Number: Eight-digit Credit card vendor number

The KFS credit card vendor number and merchant location code can be viewed under the Credit Card Vendor lookup screen via the Maintenance/Financial Processing tab in KFS.  Entering the proper reference number on the Cash Control e-document will assist the Treasury Office in the deposit reconciliation process.

If there are any questions, please contact Joanne Yama at jyama@hawaii.edu.

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Reduced Build America Bonds Subsidy

Target Audience: Bond System Administrators of the Series 2010A-1 and Series 2010B-1 Revenue Bonds

The IRS has announced that the Build America Bonds (BABs) subsidy amounts for fiscal year 2019 (October 1, 2018 to September 30, 2019) will be reduced by the sequestration rate of 6.2% pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.  For further information, see Effect of Sequestration on State & Local Government Filers of Form 8038-CP on the IRS.gov Tax Exempt Bonds website.

Bond System Administrators should plan accordingly for the reduction in the BABs subsidy for the April 1, 2019 and October 1, 2019 Series 2010A-1 and Series 2010B-1 revenue bonds debt service.

If you have any questions about the BABs subsidy, please contact James Yoneda at jyoneda@hawaii.edu.

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Is the Rental of a Cellular Tower Unrelated Business Income?

Target Audience: Fiscal Administrators and Staff

Income from the rentals may or may not be unrelated business income. 

Scenario 1:  Rental of space on a campus building or freestanding tower to a third-party for placement of cellular transmission equipment, i.e. University allows a third party to place its tower on University real estate, (either ground or existing building).

Determination:  Income is considered tax exempt rent from real property and is not unrelated business income.

Scenario 2:  Rental of antenna space on a tower owned by the University (permanently affixed to either the ground or an existing building).

Determination:  The rental of antenna space on the tower is not eligible for the rental exclusion. Towers are treated as tangible personal property rather than real property. As a result, the income is unrelated business income.

Should you have any questions on this topic please contact Kenneth Lum at kenlum@hawaii.edu.

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