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CPO UNIVERSITY. Presents. High Technology Tax Deferral Audits CPO Accounting Process Update. High Technology Tax Deferral. CPO September 15, 2011. Overview State tax incentive allowing deferral of sales tax on certain costs Building or location must be used for qualifying research - PowerPoint PPT Presentation
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CPO UNIVERSITY
High Technology Tax Deferral
Audits
CPO Accounting Process Update
Presents
CPOCPOSeptember 15, 2011September 15, 2011
High Technology Tax High Technology Tax DeferralDeferral
Overview
State tax incentive allowing deferral of sales tax on certain costs
Building or location must be used for qualifying research
Qualifying research
Advanced computing, Advanced materials, Biotechnology, Electronic device technology, Environmental technology
Overview
Application MUST be submitted before issuance of the building permits for the project
Generally only projects with qualifying costs exceeding $1M will be considered
Tax deferral becomes permanent after 8 years
Roles and Responsibilities
Financial AccountingProject ManagerCapital ProjectsSchools (Client)Funding Agent
Risks and challenges
Challenge to UW assumptions during audit reducing qualifying space
Usage changes from qualifying to non-qualifying
Refund process
Annual Survey
Examples of Qualifying Projects
Primate Center Health SciencesHealth Sciences Center H-WingHealth Sciences Center I-WingBagley Hall/PhotonicsMRI Replacement – Health Sciences
CenterBen HallGenome Sciences Building
Financial Audits – an Overview
What is a financial audit?Who audits CPO?What are the types of audits?What are the auditors looking for?When are audits performed?What is the audit process?How can CPO staff assist with the audits?
What is a Financial Audit?
In general, a review of financial documents or statements to determine their accuracy.
It may be a review to determine if the UW Financial Statements are fairly stated in accordance with GAAP (generally accepted accounting principals) or a review of one specific project or item.
Some Entities that Audit CPO:
Public Accounting Firms (such as KPMG)UW Internal AuditWashington State Department of RevenueFEMAWashington State Auditor’s Office
Some Types of Audits
Audits related to the UW or UW self-sustaining entity Financial Statements
Audits of an individual project with FEMA or other specific funding
Audits of an individual project applying for High Tech Sales Tax Deferral
Audits of a specific item, such as change orders
What are the auditors looking for?
It varies depending on the type of audit - each audit is unique.
When there is a large volume of transactions usually the auditors will
test a sample of transactions.
What can CPO staff do to help the audits go smoothly?Follow established procedures for review and
approval, and make sure that signatures are legible.
Be aware of special requirements for specific projects and make sure they are followed.
Maintain all required documentation, and file documents properly.
Respond to requests when additional information is needed for audited items.
Workflow
Invoice Receipts & Payments
Set up
• Budget Funding• Purchase orders
Project Assignment (Tracker)
• CPOA Staff
Project Completion
• P.O.’s liquidation• Close out
Process UpdatesI. Set ups and Adjustment
• Budgets/ Funding Transfer
• Purchase Orders/ Change Orders/ Additional ServicesII. Payments & Billing
• Invoices/ Procards/ Eprocurement
• Cost Transfer (CTI) & Internal Sales Document (ISD)
• Journal Voucher (JV’s)
• CPO fees Billing (internal/ external)
III. Liquidation and Closeout
• P.O.’s liquidation
• Reconciliation (P.O.’s/ Project)
• Returning Funds Balance & Budget Closeout
• Special tasks/ Matrix/ Storage/ Retrieval: Jaime & Kiki(Students)
• Budget set up & closing/ Funding Information: Vina Lorenzo
• Purchase Orders/ Invoices/ Reconciliation:Gilda Franada/ Kazuko Stoesz/ Ann Cronin
• CPO Billings (Internal/ External/ Special Projects): Leslie Holmes
Staff:
• CPO Accounting email address: [email protected]
Q & A
