Explains to college/university business officers how to comply with Governmental Accounting Standards Board Statements Nos. 34, 35, and 9, which require the direct method of presenting cash flows from operating activities and reconciliation of operating cash flows to operating income by fiscal year 2001. Institutions are urged to begin immediately…

Discusses how convergence of communication technologies, computers, and broadcast media has given birth to cyberspace challenges to many traditional jurisprudential assumptions, based until now on two-dimensional models of physical presence and space. Discusses legal issues raised by the Internet in areas such as the appropriateness of regulation,…

Explains requirements of the federal tax code concerning unrelated business taxable income that colleges and universities may incur when they rent out their facilities to the public. Topics covered include rental of real property, leasing of institutional equipment, payment for services, storage arrangements, activities related to an institution's…

Describes the program implemented at the University of Texas system that provides real-time compliance status related to all applicable laws, rules, regulations, policies, and procedures unique to higher education so that compliance risk management becomes an integral part of the everyday activities of all employees. (SLD)

Addresses issues raised for public colleges and universities as a result of the Governmental Accounting Standards Board (GASB) requirements concerning inclusion of depreciation on an institution's Statement of Revenues, Expenses, and Changes in Net Assets. Provides a sample impact analysis and financial statements for a hypothetical university to…

Offers guidelines to college business officers concerning investments in real estate and the unrelated business income tax (UBIT), which requires tax-exempt organizations to pay federal and state taxes on income earned from a trade or business unrelated to their tax-exempt purpose. Considers real estate investment funds, exposure to UBIT, avoiding…

Discussion of highly publicized regulatory problems and legal settlements involving colleges and universities leads to a proposed five-step process for improving an institutional compliance structure. Steps include selecting the compliance officer, determining appropriate reporting relationships, setting up the committee/council structure,…

An official of the Environmental Protection Agency (EPA) discusses stepped up inspections of college/university campuses for compliance with environmental regulations, and identifies ways in which institutions can work with EPA in achieving compliance. Guidelines are offered for oil storage tanks, hazardous waste, air protection, water protection,…

A discussion of 1996 federal legislation giving the Internal Revenue Service authority to impose, retroactively and for the first time, significant penalty taxes on "insiders" who benefit improperly from transactions with certain nonprofit organizations looks at the implications for colleges and universities. Background, objectives,…

This article describes expanded audit requirements for managing federal awards to colleges and universities, as outlined in Circular A-133 of the Office of Management and Budget. Applying lessons learned by state and local governments in implementing A-128 audits is recommended to help assure a successful, cost-effective transition. (MSE)

A discussion of federal cost accounting standards (CAS) chronicles briefly the history of CAS, notes other pertinent regulations applicable to higher education, summarizes the initial standards drafted for colleges and universities, and examines disclosure statement requirements and implications of noncompliance. (MSE)

Intended for business officers of colleges and universities, this article lists and explains the 20 rules suggested by the Internal Revenue Service for determining whether a service provider is an employee or an independent contractor. (DB)

Guidelines issued separately by the University of Wisconsin-Madison (UW) and the American Library Association (ALA) concerning the fair use of copyrighted materials are presented. In addition, a UW memo is presented that covers background information on the Copyright Law and multiple copy reproduction of copyrighted materials for classroom use.…

The first two stages of the financial audit required by federal Circular A-133, for nonprofit institutions receiving $100,000 or more in federal funding and cost-type contracts, as implemented by the University of Southern California, are described. Audit observations, issues emerging from the experience, and recommendations for other colleges and…

This article discusses the implications of recently adopted U.S. Cost Accounting Standards (CAS) that apply to educational institutions that contract with or receive grants from the federal government. It focuses on the disclosure requirements that colleges and universities must follow to comply with CAS. (MDM)