General Ledger Maintenance
Finance and Accounting is responsible for review of the general ledger to detect unusual balances or transactions. Any unusual items would be investigated, and if necessary, corrective action would be initiated by Finance and Accounting.
Sales tax is imposed by the State of Florida on the sale of tangible personal property at the retail level. Sales tax does not apply for goods purchased for the University since FGCU is a tax-exempt organization. Most transactions are taxable unless specifically exempted by law. For example, the following transactions require the collection of sales tax:
- Sales of taxable items at retail level
- Repairs or alterations of tangible personal property
- Rental or lease of personal property
- Rental or lease of real property
The current rate in Lee and Collier County is 6.5%. In Charlotte and Hendry County, the rate is 7.0%.
- Sales and Use Tax Report (DR-15) is submitted to the Florida Department of Revenue on or before the 20th of the month following collection by Finance and Accounting.
For additional information regarding the Florida Sales and Use Tax, please visit the Florida Department of Revenue website.
Unrelated Business Income Tax (UBIT)
UBIT is the abbreviation for Unrelated Business Income Tax which is a federal income tax placed on non-profit organizations including state colleges and universities for conducting business activities that are regularly carried on, and not substantially related to the education mission. As colleges and universities became increasingly interested in maximizing revenue from trades or businesses unrelated to the educational mission, Congress passed the Unrelated Business Income Tax of 1950.The primary purpose was to give the Internal Revenue Service a means to penalize a tax-exempt organization that conducts unrelated business income activities instead of revoking their tax-exempt status, and to treat colleges and universities similarly as for-profit businesses that pay federal tax and are engaged in the same business activities. An activity must meet three tests in order to be classified as an unrelated trade or business. It must be:
- a trade or business,
- regularly carried on, and
- not substantially related to the institution's exempt educational or scientific research purposes
An exempt organization that has $1,000 or more or gross income from an unrelated business must file Form 990-T, Exempt Organization Business Income Tax Return. Any net income from such activity is subject to unrelated business income tax, while losses from one unrelated business activity can offset income from other unrelated activities. The University must file Form 990-T with the Internal Revenue Service by November 15th of each year that it has unrelated business income.
Bank reconciliation is the process of matching and comparing figures from the accounting records against those present on the bank statement. Subtracting any items which have no relation to the bank statement, the balance of the accounting ledger should reconcile or match to the balance of the bank statement. Discrepancies and unrecognized items are promptly investigated and resolved.
Cash Management is an integral part of the Treasury function as it appropriately maintains the daily cash operations and maximizes returns by investing idle cash. Good cash management consists of anticipating cash requirements and determining the best funding source to meet them. The minimum cash reserves that the University will require can be determined by analyzing the current business needs and the historical cash flows. By maintaining cash reserves at a minimum, the University can maximize its investments by reducing the amount of cash held idle in the bank.
Capital Project Financing
Finance & Accounting facilitates and manages the finance activities and programs that benefit the University, as well as coordinates the financing of capital projects with the FGCU Financing Corporation. Judicious use of debt can assist the University in achieving its strategic objectives while maintaining a credit rating that appropriately balances financial flexibility with the cost of capital.
Vendor Procurement Services
Employee Finance & Accounting
After the unclaimed property has been reported to the Florida Department of Financial Services, any request by the payee should be made to the State of Florida. To see if you have any unclaimed property held by the State of Florida, visit the Florida Treasure Hunt website.
PROCEDURES & FORMS
General Ledger StaffToggle More Info