WEBVTT 1 00:00:00.863 --> 00:00:02.011 Thank you for joining us 2 00:00:02.011 --> 00:00:04.500 to learn about private business use 3 00:00:04.500 --> 00:00:08.163 and UVM's bond post-issuance responsibilities. 4 00:00:10.140 --> 00:00:11.128 The official of your area 5 00:00:11.128 --> 00:00:14.163 has delegated you as the PBU coordinator. 6 00:00:14.163 --> 00:00:16.672 This training will cover PBU explanations 7 00:00:16.672 --> 00:00:19.680 and its importance in safeguarding UVM 8 00:00:19.680 --> 00:00:22.350 by complying with these IRS regulations. 9 00:00:22.350 --> 00:00:24.295 We will also discuss what to monitor, 10 00:00:24.295 --> 00:00:28.110 best practices on how to track and report PPU in your areas, 11 00:00:28.110 --> 00:00:29.853 and provide resources. 12 00:00:31.260 --> 00:00:34.145 UVM issues tax exempt bonds to help pay for the renovation 13 00:00:34.145 --> 00:00:35.848 of its lovely older buildings, 14 00:00:35.848 --> 00:00:38.790 as well as the creation of new spaces. 15 00:00:38.790 --> 00:00:42.600 The tax exemption saves UVM millions of dollars in interest. 16 00:00:42.600 --> 00:00:45.417 However, by issuing the tax exempt bonds, 17 00:00:45.417 --> 00:00:49.170 UVM agrees to the post-issuance IRS compliance. 18 00:00:49.170 --> 00:00:52.680 The regulatory tasks that applies to PBU coordinators 19 00:00:52.680 --> 00:00:55.911 is the tracking of private use in the bond funded spaces 20 00:00:55.911 --> 00:00:59.700 until the bonds retire, which could be decades. 21 00:00:59.700 --> 00:01:03.900 As you will learn in this training, PBU is not intuitive, 22 00:01:03.900 --> 00:01:05.850 such as nonprofits being considered 23 00:01:05.850 --> 00:01:08.520 private use per the regulations. 24 00:01:08.520 --> 00:01:11.550 This graphic is from UVMs PBU webpage 25 00:01:11.550 --> 00:01:14.730 where there is a list of the bond finance spaces 26 00:01:14.730 --> 00:01:16.683 with the plan on building numbers. 27 00:01:18.150 --> 00:01:19.770 Let's discuss private business. 28 00:01:19.770 --> 00:01:23.130 Use the PBU definition that is paraphrased 29 00:01:23.130 --> 00:01:26.670 from the section 141 of the IRS regulations 30 00:01:26.670 --> 00:01:31.440 is usage of a tax exempt bond finance property or asset 31 00:01:31.440 --> 00:01:33.810 by a non-governmental person 32 00:01:33.810 --> 00:01:36.390 such as non-profit organizations, 33 00:01:36.390 --> 00:01:39.990 profit businesses and federal or foreign governments 34 00:01:39.990 --> 00:01:43.980 generally equates to non UVM users. 35 00:01:43.980 --> 00:01:46.290 The allowance of private business use usage 36 00:01:46.290 --> 00:01:48.552 for the life of the bond is 10% of proceeds 37 00:01:48.552 --> 00:01:51.360 with a $15 million cap, 38 00:01:51.360 --> 00:01:53.669 that percentage can be reduced to 5%, 39 00:01:53.669 --> 00:01:57.030 which is rare for universities for unrelated to 40 00:01:57.030 --> 00:02:00.420 or disproportionate to governmental use. 41 00:02:00.420 --> 00:02:02.469 Meaning proceeds used for PBU 42 00:02:02.469 --> 00:02:06.840 exceeds the amount of use for our related purpose. 43 00:02:06.840 --> 00:02:09.188 We need to ensure no egregious private use 44 00:02:09.188 --> 00:02:12.360 is ever more than our related use. 45 00:02:12.360 --> 00:02:15.931 Treasury services tracks each bond and its PBU percentage 46 00:02:15.931 --> 00:02:17.566 by relying on what is reported 47 00:02:17.566 --> 00:02:19.907 through annual questionnaires. 48 00:02:19.907 --> 00:02:21.930 As a PBU coordinator, 49 00:02:21.930 --> 00:02:24.813 this is the information you will submit each fall. 50 00:02:26.250 --> 00:02:28.350 UVM is the governmental entity, 51 00:02:28.350 --> 00:02:30.900 so the currently enrolled students, 52 00:02:30.900 --> 00:02:33.510 paid staff, and paid faculty 53 00:02:33.510 --> 00:02:38.280 using space for UVM purposes all qualify as UVM users 54 00:02:38.280 --> 00:02:40.560 and do not need to be tracked. 55 00:02:40.560 --> 00:02:41.695 However, everyone else 56 00:02:41.695 --> 00:02:44.808 who uses and controls the bond finance space 57 00:02:44.808 --> 00:02:46.680 needs to be assessed. 58 00:02:46.680 --> 00:02:48.701 Generally, local and state governmental use 59 00:02:48.701 --> 00:02:51.786 would also be allowed as well as some federal usage 60 00:02:51.786 --> 00:02:54.540 if covered by the ByJoel Act. 61 00:02:54.540 --> 00:02:57.813 General public on campus is not an issue for PBU. 62 00:02:59.730 --> 00:03:02.070 Let's look at the non UVM users 63 00:03:02.070 --> 00:03:03.780 those who need to be tracked. 64 00:03:03.780 --> 00:03:05.520 It is not intuitive. 65 00:03:05.520 --> 00:03:06.568 The words private business use 66 00:03:06.568 --> 00:03:08.940 make me think of profit businesses, 67 00:03:08.940 --> 00:03:10.364 but the regulations expanded 68 00:03:10.364 --> 00:03:13.470 the non-qualified lists significantly. 69 00:03:13.470 --> 00:03:14.523 Separate 501c3s 70 00:03:14.523 --> 00:03:18.270 are generally considered private business use. 71 00:03:18.270 --> 00:03:22.680 All the bolded bullets have separate 501c3s from UVM, 72 00:03:22.680 --> 00:03:25.950 such as the UVM Foundation and UVMMC 73 00:03:25.950 --> 00:03:29.370 and their usage in a tax exempt bond finance space 74 00:03:29.370 --> 00:03:31.500 is private business use. 75 00:03:31.500 --> 00:03:33.814 The next set of bullets are generally designated 76 00:03:33.814 --> 00:03:36.834 as function code 72 in the space survey 77 00:03:36.834 --> 00:03:40.110 as non-institutional agency use. 78 00:03:40.110 --> 00:03:41.790 Some non-institutional use 79 00:03:41.790 --> 00:03:44.670 seems like UVM educational purposes, 80 00:03:44.670 --> 00:03:45.876 but the PBU regulations 81 00:03:45.876 --> 00:03:48.527 match the cost allocation regulations 82 00:03:48.527 --> 00:03:52.920 and consider these individuals as non UVM users 83 00:03:52.920 --> 00:03:57.660 such as visiting professors, alumni, and non SPA research. 84 00:03:57.660 --> 00:04:02.430 It helps to memorize the UVM users and track everyone else. 85 00:04:02.430 --> 00:04:05.250 Another frequent question about non UVM users 86 00:04:05.250 --> 00:04:08.640 is if the usage is free, do I need to track? 87 00:04:08.640 --> 00:04:12.453 The answer is yes, because the operative word is use. 88 00:04:14.250 --> 00:04:15.720 We have covered users. 89 00:04:15.720 --> 00:04:18.090 Let's look at the types of usage arrangements 90 00:04:18.090 --> 00:04:20.070 by non UVM users. 91 00:04:20.070 --> 00:04:22.828 One of the responsibilities of PBU coordinators 92 00:04:22.828 --> 00:04:26.280 is to ensure usage agreements flow to them. 93 00:04:26.280 --> 00:04:28.362 Your officials have been trained in PBU 94 00:04:28.362 --> 00:04:32.123 and were asked to have agreements sent to you for tracking. 95 00:04:32.123 --> 00:04:33.865 This training requested building 96 00:04:33.865 --> 00:04:36.824 and room numbers be added to the arrangements 97 00:04:36.824 --> 00:04:39.360 for ease with reporting. 98 00:04:39.360 --> 00:04:41.940 The next couple of slides will help give context 99 00:04:41.940 --> 00:04:44.970 to the types of PBU scenarios. 100 00:04:44.970 --> 00:04:48.060 It is important that formal or signed agreements 101 00:04:48.060 --> 00:04:52.200 and informal arrangements made verbally or via email 102 00:04:52.200 --> 00:04:55.050 are tracked for the annual reporting. 103 00:04:55.050 --> 00:04:57.330 Leases or lease like arrangements 104 00:04:57.330 --> 00:05:01.650 are almost always PBU from non UVM users. 105 00:05:01.650 --> 00:05:05.640 Management contracts such as Sodexo are PBU. 106 00:05:05.640 --> 00:05:08.790 Research contracts are generally handled by SPA, 107 00:05:08.790 --> 00:05:11.080 but lab leases are tracked by PBU coordinators 108 00:05:11.080 --> 00:05:15.810 or one of their usage administrators on their PBU team. 109 00:05:15.810 --> 00:05:17.100 Watch for naming rights 110 00:05:17.100 --> 00:05:20.193 and economic benefits to third parties. 111 00:05:20.193 --> 00:05:22.560 And keep in mind that UVM users 112 00:05:22.560 --> 00:05:26.910 are currently enrolled students, paid faculty and staff. 113 00:05:26.910 --> 00:05:30.630 Alumni and retired professors are generally PBU 114 00:05:30.630 --> 00:05:32.973 unless they're being paid by UVM. 115 00:05:34.410 --> 00:05:38.430 Short term leases under the regulations are 50 days or less. 116 00:05:38.430 --> 00:05:41.640 Anything over 50 days by a non UVM user 117 00:05:41.640 --> 00:05:43.830 is private business use. 118 00:05:43.830 --> 00:05:45.450 Though we may be allowed to exclude 119 00:05:45.450 --> 00:05:46.851 the 50 days or less arrangements 120 00:05:46.851 --> 00:05:49.320 from the private use calculations, 121 00:05:49.320 --> 00:05:51.068 they do need to be listed in the questionnaires 122 00:05:51.068 --> 00:05:55.038 and retained to show we excluded them appropriately. 123 00:05:55.038 --> 00:05:57.570 Luckily, certain types of leases 124 00:05:57.570 --> 00:05:59.615 are considered incidental use. 125 00:05:59.615 --> 00:06:04.195 As long as all incidental use per bond is less than 2.5%, 126 00:06:04.195 --> 00:06:07.110 we don't have to include them in the calculations, 127 00:06:07.110 --> 00:06:09.600 but the agreement should also be listed 128 00:06:09.600 --> 00:06:12.810 in the annual questionnaires and retained. 129 00:06:12.810 --> 00:06:16.688 If we exceed the 2.5%, we have to calculate them. 130 00:06:16.688 --> 00:06:18.566 Again, general use by the public 131 00:06:18.566 --> 00:06:21.603 does not typically constitute PBU. 132 00:06:22.980 --> 00:06:26.340 This slide will discuss other PBU considerations. 133 00:06:26.340 --> 00:06:28.980 If the naming of a bond finance base 134 00:06:28.980 --> 00:06:32.190 is a strict donation handled by the UVM Foundation, 135 00:06:32.190 --> 00:06:34.740 it is not likely private business use. 136 00:06:34.740 --> 00:06:39.180 However, naming a space with onsite usage, economic benefit, 137 00:06:39.180 --> 00:06:41.430 or naming of an athletic complex 138 00:06:41.430 --> 00:06:43.920 may very well be private business use. 139 00:06:43.920 --> 00:06:45.600 If you notice a naming arrangement 140 00:06:45.600 --> 00:06:47.657 with formal or informal use, 141 00:06:47.657 --> 00:06:51.180 economic benefit, corporate sponsorship, 142 00:06:51.180 --> 00:06:54.030 or if it pertains to the athletic center, 143 00:06:54.030 --> 00:06:57.540 please send that arrangement to treasury management email. 144 00:06:57.540 --> 00:06:59.970 It is better to have it reviewed for PBU 145 00:06:59.970 --> 00:07:02.790 than have an auditor find it first. 146 00:07:02.790 --> 00:07:06.540 MCDEP, the main campus district energy plant 147 00:07:06.540 --> 00:07:08.820 formerly called the central utility plant, 148 00:07:08.820 --> 00:07:10.770 was bond financed. 149 00:07:10.770 --> 00:07:12.330 Any building it connects to 150 00:07:12.330 --> 00:07:15.090 whether bond financed or privately funded 151 00:07:15.090 --> 00:07:19.950 brings that building under PBU IRS regulatory scope. 152 00:07:19.950 --> 00:07:21.540 PBU needs to be monitored 153 00:07:21.540 --> 00:07:26.040 and privately funded buildings connected to the MCDEP. 154 00:07:26.040 --> 00:07:27.900 Plan on has designations 155 00:07:27.900 --> 00:07:30.690 as bond financed or indirect bond finance, 156 00:07:30.690 --> 00:07:34.890 but for PBU coordinator purposes, they're treated the same. 157 00:07:34.890 --> 00:07:37.710 Anything connected to the central utility plant 158 00:07:37.710 --> 00:07:40.113 must be tracked for private business use. 159 00:07:41.490 --> 00:07:43.954 Here are a few indirectly bond finance buildings 160 00:07:43.954 --> 00:07:45.930 that were privately funded 161 00:07:45.930 --> 00:07:48.990 and connected to the MCDEP. 162 00:07:48.990 --> 00:07:52.860 PBU coordinators need to track usage by non UVM users 163 00:07:52.860 --> 00:07:54.750 in these privately funded buildings 164 00:07:54.750 --> 00:07:57.063 as if they were bond financed. 165 00:07:58.410 --> 00:08:01.543 The safe harbors to be exempted from PBU calculations 166 00:08:01.543 --> 00:08:04.320 are summarized in the PBU webpage 167 00:08:04.320 --> 00:08:06.240 and should be considered before engaging 168 00:08:06.240 --> 00:08:08.010 in management contracts. 169 00:08:08.010 --> 00:08:09.522 This responsibility falls primarily 170 00:08:09.522 --> 00:08:12.750 to the usage decision maker, your official. 171 00:08:12.750 --> 00:08:14.404 However, if you ever need to assist 172 00:08:14.404 --> 00:08:16.560 with a management contract, 173 00:08:16.560 --> 00:08:19.590 the focus is on control, risk 174 00:08:19.590 --> 00:08:21.640 and benefits and burdens falling to UVM 175 00:08:21.640 --> 00:08:23.850 to be within compliance. 176 00:08:23.850 --> 00:08:25.786 Key areas are no profit sharing, 177 00:08:25.786 --> 00:08:28.290 but with incentive compensation allowed 178 00:08:28.290 --> 00:08:31.530 and who manages space and budgets. 179 00:08:31.530 --> 00:08:33.960 Sodexo is our largest management contract, 180 00:08:33.960 --> 00:08:36.570 which is not within safe harbors 181 00:08:36.570 --> 00:08:38.790 and is considered private business use 182 00:08:38.790 --> 00:08:41.343 and UVM's bond finance spaces. 183 00:08:42.720 --> 00:08:45.930 Why is BPU tracking and reporting important? 184 00:08:45.930 --> 00:08:48.870 We've discussed that UVM issues tax exempt bonds, 185 00:08:48.870 --> 00:08:50.802 and that there are certain IRS rules 186 00:08:50.802 --> 00:08:53.280 on how UVM can spend the funds 187 00:08:53.280 --> 00:08:56.520 and how we use the space funded by that money. 188 00:08:56.520 --> 00:08:57.990 The first risk of this slide 189 00:08:57.990 --> 00:08:59.895 is how the IRS can audit any time 190 00:08:59.895 --> 00:09:01.950 during the life of the bond. 191 00:09:01.950 --> 00:09:06.540 We had a successful audit in 2014 for our 2007 bond, 192 00:09:06.540 --> 00:09:09.690 but audits are costly and time consuming. 193 00:09:09.690 --> 00:09:12.810 There are significant tax compliance issues, 194 00:09:12.810 --> 00:09:16.590 leading to market disclosures and adverse publicity, 195 00:09:16.590 --> 00:09:18.450 which we want to avoid. 196 00:09:18.450 --> 00:09:22.350 Non-compliance could also lead to UVM rating changes, 197 00:09:22.350 --> 00:09:24.990 thus increasing the future cost of borrowing. 198 00:09:24.990 --> 00:09:26.280 We could negatively affect 199 00:09:26.280 --> 00:09:28.740 the future tax exemption allowance. 200 00:09:28.740 --> 00:09:33.330 The worst risk is a retroactive IRS declaration, 201 00:09:33.330 --> 00:09:36.420 making the bond interest taxable to the buyer, 202 00:09:36.420 --> 00:09:39.060 which traditionally is paid by universities 203 00:09:39.060 --> 00:09:42.450 because no one ever wants to upset bond holders. 204 00:09:42.450 --> 00:09:46.170 To mitigate risk, UVM provides PBU education, 205 00:09:46.170 --> 00:09:49.620 tracks non UVM usage of bond finance spaces, 206 00:09:49.620 --> 00:09:52.140 follows the record retention requirement 207 00:09:52.140 --> 00:09:56.190 and works with outside PBU consultants and bond council. 208 00:09:56.190 --> 00:09:58.890 We all play a part in this compliance. 209 00:09:58.890 --> 00:10:01.053 Let's safeguard UVM together. 210 00:10:02.430 --> 00:10:05.280 We have briefly mentioned record retention. 211 00:10:05.280 --> 00:10:09.600 We need to keep digitally all non UVM usage agreements, 212 00:10:09.600 --> 00:10:12.159 tracking and anything used for the calculation 213 00:10:12.159 --> 00:10:15.450 of the PBU percentage for the life of the bond, 214 00:10:15.450 --> 00:10:20.130 plus any tax exempt bond refunding plus three years. 215 00:10:20.130 --> 00:10:21.900 Again, this is decades of records 216 00:10:21.900 --> 00:10:24.305 that UVM needs to maintain. 217 00:10:24.305 --> 00:10:27.060 UVM also needs to retain any changes 218 00:10:27.060 --> 00:10:30.090 with tax exempt bond finance spaces. 219 00:10:30.090 --> 00:10:32.970 Any transfers or purchases or sales, 220 00:10:32.970 --> 00:10:35.910 treasury services helps by collecting the contracts 221 00:10:35.910 --> 00:10:37.920 and the annual reports. 222 00:10:37.920 --> 00:10:41.310 But PBU coordinators should keep their monitoring data. 223 00:10:41.310 --> 00:10:43.026 Treasury services is happy to help create 224 00:10:43.026 --> 00:10:46.443 record retention mechanisms with PBU teams. 225 00:10:48.030 --> 00:10:51.210 For the PBU calculations other than SPA, 226 00:10:51.210 --> 00:10:53.700 the length of time and days, not hours, 227 00:10:53.700 --> 00:10:57.120 amount of space used, and the amount of bond proceeds 228 00:10:57.120 --> 00:11:00.540 are utilized to calculate the PBU percentages. 229 00:11:00.540 --> 00:11:02.880 PBU coordinators track and collect 230 00:11:02.880 --> 00:11:07.350 days of use and location for each non UVM user arrangement, 231 00:11:07.350 --> 00:11:08.790 but do not need to worry about 232 00:11:08.790 --> 00:11:10.710 the bond proceeds or square footage. 233 00:11:10.710 --> 00:11:12.450 We'll take care of that. 234 00:11:12.450 --> 00:11:14.550 PBU coordinators apply this information 235 00:11:14.550 --> 00:11:17.850 to treasury services in their annual questionnaires. 236 00:11:17.850 --> 00:11:19.420 SPA uses the revenue method 237 00:11:19.420 --> 00:11:23.763 and submits multiple spreadsheets for PBU calculations. 238 00:11:26.400 --> 00:11:28.170 Who tracks what on campus? 239 00:11:28.170 --> 00:11:30.030 SPA tracks SPA agreements. 240 00:11:30.030 --> 00:11:32.790 Third party events fall to UES primarily. 241 00:11:32.790 --> 00:11:34.498 Leases and sales of bond finance assets 242 00:11:34.498 --> 00:11:36.900 are tracked by real estate operations. 243 00:11:36.900 --> 00:11:39.240 Everything else in bond finance spaces 244 00:11:39.240 --> 00:11:42.891 are tracked by the associated PBU coordinator, 245 00:11:42.891 --> 00:11:45.303 including those lab leases. 246 00:11:46.680 --> 00:11:50.130 The private business use website list official and delegate, 247 00:11:50.130 --> 00:11:53.760 also known as PBU coordinator responsibilities. 248 00:11:53.760 --> 00:11:56.190 Monitor non-UVM user arrangements, 249 00:11:56.190 --> 00:11:58.440 create methods to track and oversee usage 250 00:11:58.440 --> 00:12:01.860 in bond finance buildings, advise your PBU team 251 00:12:01.860 --> 00:12:04.290 and send data to treasury services. 252 00:12:04.290 --> 00:12:06.098 Training is required every other year 253 00:12:06.098 --> 00:12:09.873 per our UVM post issuance bond compliance policy. 254 00:12:11.130 --> 00:12:12.810 There are many people on campus 255 00:12:12.810 --> 00:12:16.410 helping UVM remain in regulatory compliance. 256 00:12:16.410 --> 00:12:19.216 Officials are tasked with PBU regulations 257 00:12:19.216 --> 00:12:22.950 when creating contracts and allowing space usage. 258 00:12:22.950 --> 00:12:24.450 Officials and their teams know 259 00:12:24.450 --> 00:12:26.340 what is going on in their spaces, 260 00:12:26.340 --> 00:12:29.636 which is why we rely on you as PBU coordinators 261 00:12:29.636 --> 00:12:32.280 to assist in this compliance. 262 00:12:32.280 --> 00:12:34.260 Private business use is just one of the 263 00:12:34.260 --> 00:12:37.260 many post issuance compliance requirements, 264 00:12:37.260 --> 00:12:41.820 but non UVM user usage is the one your work focuses upon. 265 00:12:41.820 --> 00:12:43.410 We highly recommend creating 266 00:12:43.410 --> 00:12:46.023 your own PBU teams for your areas. 267 00:12:47.310 --> 00:12:50.220 PBU monitoring best practices. 268 00:12:50.220 --> 00:12:51.750 One, set up your team. 269 00:12:51.750 --> 00:12:53.610 People who fill out the space survey, 270 00:12:53.610 --> 00:12:57.510 your official and any usage administrators are ideal. 271 00:12:57.510 --> 00:13:02.010 Two, ensure all usage arrangements flow to you. 272 00:13:02.010 --> 00:13:03.708 Three, check arrangements to see 273 00:13:03.708 --> 00:13:07.140 if they are located in a bond finance building. 274 00:13:07.140 --> 00:13:10.470 Four, evaluate if it is a non UVM user 275 00:13:10.470 --> 00:13:13.230 and if it is, set up tracking. 276 00:13:13.230 --> 00:13:15.540 Five forward PBU arrangements 277 00:13:15.540 --> 00:13:17.613 to the treasury management email. 278 00:13:20.400 --> 00:13:22.620 What to track for PBU? 279 00:13:22.620 --> 00:13:24.810 Who is using the space? 280 00:13:24.810 --> 00:13:28.260 Type of organization, building number, 281 00:13:28.260 --> 00:13:32.640 description of use, room numbers, and days of use. 282 00:13:32.640 --> 00:13:34.200 Hopefully the arrangement will specify 283 00:13:34.200 --> 00:13:36.273 a good bit of the information. 284 00:13:37.710 --> 00:13:39.960 How to track PBU? 285 00:13:39.960 --> 00:13:43.500 One, is the agreement taking place in a bond finance space? 286 00:13:43.500 --> 00:13:46.098 Check the bond finance building list on the PBU webpage 287 00:13:46.098 --> 00:13:48.810 or look up the building and plan on. 288 00:13:48.810 --> 00:13:52.350 Two, assess if there is non UVM usage. 289 00:13:52.350 --> 00:13:54.851 Three, is the space reserved in EMS? 290 00:13:54.851 --> 00:13:56.790 No Need to track. 291 00:13:56.790 --> 00:13:59.910 Four, does the contract specify days of use? 292 00:13:59.910 --> 00:14:01.800 Just add it to the questionnaire. 293 00:14:01.800 --> 00:14:05.010 Tracking is not required, but always preferred. 294 00:14:05.010 --> 00:14:07.590 Five, is usage from a SPA contract? 295 00:14:07.590 --> 00:14:09.000 No tracking necessary. 296 00:14:09.000 --> 00:14:10.440 However, keep in mind, 297 00:14:10.440 --> 00:14:14.010 non SPA lab leases do need to be tracked. 298 00:14:14.010 --> 00:14:16.440 Six, not SPA or EMS? 299 00:14:16.440 --> 00:14:19.200 Decide on the simplest method to monitor, 300 00:14:19.200 --> 00:14:21.960 collect date, individual and organization. 301 00:14:21.960 --> 00:14:23.726 There is no need to sign in and out 302 00:14:23.726 --> 00:14:27.000 as we track usage per days, not hours. 303 00:14:27.000 --> 00:14:29.640 One signature and date will suffice. 304 00:14:29.640 --> 00:14:32.730 Use a method that works for you and your team. 305 00:14:32.730 --> 00:14:36.660 Seven, advise your usage administrators on collecting data 306 00:14:36.660 --> 00:14:38.730 for the annual fall reporting. 307 00:14:38.730 --> 00:14:41.010 PBU coordinators need to determine 308 00:14:41.010 --> 00:14:45.030 who may be involved with making usage decisions. 309 00:14:45.030 --> 00:14:48.840 Talk to your officials, ask or present meetings 310 00:14:48.840 --> 00:14:51.270 and create your PPU team. 311 00:14:51.270 --> 00:14:55.110 Train your usage administrators on these regulations. 312 00:14:55.110 --> 00:14:58.010 Reach out to us if you would like us to join your meeting. 313 00:15:00.720 --> 00:15:03.480 Let's look at the annual questionnaires. 314 00:15:03.480 --> 00:15:06.780 Everyone fills out tab one, general information, 315 00:15:06.780 --> 00:15:10.080 responsible party and space survey section. 316 00:15:10.080 --> 00:15:11.686 Please note the responsible party 317 00:15:11.686 --> 00:15:14.340 may only be the PBU coordinator 318 00:15:14.340 --> 00:15:16.740 or the official who has been trained. 319 00:15:16.740 --> 00:15:20.880 As the space survey is the backbone to this IRS compliance, 320 00:15:20.880 --> 00:15:24.690 knowing who filled out the space survey is very helpful. 321 00:15:24.690 --> 00:15:26.082 Please list the best contact 322 00:15:26.082 --> 00:15:28.293 should we have any questions. 323 00:15:29.640 --> 00:15:32.119 Below the responsible party section on tab one 324 00:15:32.119 --> 00:15:34.140 is a listing of the buildings 325 00:15:34.140 --> 00:15:35.790 from the most current space survey 326 00:15:35.790 --> 00:15:38.700 that will be preloaded to your questionnaire. 327 00:15:38.700 --> 00:15:41.400 Please review for accuracy. 328 00:15:41.400 --> 00:15:43.740 In the private business comment section, 329 00:15:43.740 --> 00:15:45.870 please respond to only the spaces 330 00:15:45.870 --> 00:15:48.720 you oversee in a particular building. 331 00:15:48.720 --> 00:15:50.361 Specific route numbers and arrangements 332 00:15:50.361 --> 00:15:53.283 will be added in tabs two and three. 333 00:15:55.860 --> 00:15:59.310 What if there are any space issues on tab one? 334 00:15:59.310 --> 00:16:03.270 Please add to the questionnaire any areas you oversee 335 00:16:03.270 --> 00:16:05.433 that might be missing with a notation. 336 00:16:06.480 --> 00:16:08.760 If an area listed is incorrect, 337 00:16:08.760 --> 00:16:10.620 please leave it on the questionnaire 338 00:16:10.620 --> 00:16:12.540 and mark it as inaccurate. 339 00:16:12.540 --> 00:16:15.363 Email us as soon as possible for resolution. 340 00:16:17.126 --> 00:16:20.160 This training covers the more standard questionnaires 341 00:16:20.160 --> 00:16:24.150 because not all questionnaires ask for the same information. 342 00:16:24.150 --> 00:16:25.950 If you belong to physical plant, 343 00:16:25.950 --> 00:16:29.010 real estate operations, SPA, or UES, 344 00:16:29.010 --> 00:16:30.870 please reach out to treasury and debt 345 00:16:30.870 --> 00:16:33.180 for your specific instructions. 346 00:16:33.180 --> 00:16:34.920 However, for the most part, 347 00:16:34.920 --> 00:16:39.540 tab two will consist of written usage arrangements. 348 00:16:39.540 --> 00:16:43.770 If you have no non-UVM users during this period, 349 00:16:43.770 --> 00:16:47.370 answer no in the upper right hand corner. 350 00:16:47.370 --> 00:16:51.052 Non-SPA contracts need each column to be filled out. 351 00:16:51.052 --> 00:16:52.249 A space survey table 352 00:16:52.249 --> 00:16:54.750 will be provided with your questionnaire, 353 00:16:54.750 --> 00:16:55.871 which is helpful for this section 354 00:16:55.871 --> 00:16:58.071 as room numbers are needed to be listed 355 00:16:58.071 --> 00:16:59.673 for each arrangement. 356 00:17:01.380 --> 00:17:04.426 Record any non-institutional agency designations 357 00:17:04.426 --> 00:17:05.973 with the contract. 358 00:17:07.260 --> 00:17:10.800 Please notate a new amended or terminated agreement 359 00:17:10.800 --> 00:17:13.623 with dates in the description of services column. 360 00:17:14.490 --> 00:17:17.790 Remember, we track days of use not hours. 361 00:17:17.790 --> 00:17:21.510 If a non UVM user controlled a room for a two hours, 362 00:17:21.510 --> 00:17:24.183 it is considered a day for this reporting. 363 00:17:25.020 --> 00:17:27.150 If you have not already sent the arrangement 364 00:17:27.150 --> 00:17:29.220 to the treasury management email, 365 00:17:29.220 --> 00:17:34.023 the last column is a reminder as it should always state yes. 366 00:17:36.540 --> 00:17:38.758 Tab three is for the other usage arrangements 367 00:17:38.758 --> 00:17:40.620 without contracts, 368 00:17:40.620 --> 00:17:44.760 the informal or verbal agreements by non UVM users. 369 00:17:44.760 --> 00:17:49.560 Answer the PBU yes or no question in the upper right corner. 370 00:17:49.560 --> 00:17:52.228 Record any non-institutional agency designations 371 00:17:52.228 --> 00:17:54.990 without contracts. 372 00:17:54.990 --> 00:17:56.580 Treasury and debt will pre-list 373 00:17:56.580 --> 00:18:00.150 any function code 72 non-institutional use 374 00:18:00.150 --> 00:18:02.490 to tab three to be described. 375 00:18:02.490 --> 00:18:04.410 However, if you have a contract, 376 00:18:04.410 --> 00:18:07.950 please move that listing to tab two accordingly. 377 00:18:07.950 --> 00:18:09.540 When reporting time and use, 378 00:18:09.540 --> 00:18:12.870 keep in mind, days of use, not hours. 379 00:18:12.870 --> 00:18:16.050 If there are emails that pertain to the arrangement, 380 00:18:16.050 --> 00:18:19.800 please send them to the treasury management email. 381 00:18:19.800 --> 00:18:24.300 List any verbal usage arrangements from non UVM users. 382 00:18:24.300 --> 00:18:26.310 For verbal usage, please list 383 00:18:26.310 --> 00:18:28.980 in the description of use column, 384 00:18:28.980 --> 00:18:32.253 the UVM contact name, should any questions arise. 385 00:18:34.410 --> 00:18:37.200 Now that you understand private business use more, 386 00:18:37.200 --> 00:18:39.000 what should you expect? 387 00:18:39.000 --> 00:18:41.850 PBU is a year-round data collection task 388 00:18:41.850 --> 00:18:44.130 with reporting each fall. 389 00:18:44.130 --> 00:18:47.040 Training will be provided biannually. 390 00:18:47.040 --> 00:18:49.590 Questionnaires arrive with a space survey table, 391 00:18:49.590 --> 00:18:51.003 post issuance compliance policy, 392 00:18:51.003 --> 00:18:55.080 and a bond finance space list to help assist you. 393 00:18:55.080 --> 00:18:56.480 You will have approximately one month 394 00:18:56.480 --> 00:18:59.070 to complete the questionnaire. 395 00:18:59.070 --> 00:19:01.519 We recommend having your usage administrators 396 00:19:01.519 --> 00:19:04.938 submit to you all collected data by mid-September 397 00:19:04.938 --> 00:19:07.323 for the previous fiscal year. 398 00:19:09.180 --> 00:19:11.550 Let's look at PBU Resources. 399 00:19:11.550 --> 00:19:13.631 The PBU webpage offers lots of assistance 400 00:19:13.631 --> 00:19:16.710 with UVM directed explanations. 401 00:19:16.710 --> 00:19:19.830 You have access to a bond finance space list, 402 00:19:19.830 --> 00:19:22.650 training guides, safe harbor listings, 403 00:19:22.650 --> 00:19:25.740 regulatory summaries, and links to regulations 404 00:19:25.740 --> 00:19:28.620 and the UVM post issuance policy. 405 00:19:28.620 --> 00:19:30.300 Because you only need to track 406 00:19:30.300 --> 00:19:33.240 non-UVM usage and bond finance spaces, 407 00:19:33.240 --> 00:19:34.696 the PBU webpage and planon 408 00:19:34.696 --> 00:19:39.696 are good locations to see if a building has bond financing. 409 00:19:39.750 --> 00:19:41.471 As a space survey is the backbone 410 00:19:41.471 --> 00:19:44.670 of tracking this IRS regulation, 411 00:19:44.670 --> 00:19:47.340 space survey accuracy is vital. 412 00:19:47.340 --> 00:19:50.035 The space survey lists function code 72 413 00:19:50.035 --> 00:19:54.180 to easily assess those non-institutional agency designations 414 00:19:54.180 --> 00:19:56.490 for this annual reporting. 415 00:19:56.490 --> 00:19:58.735 And of course, treasury services available 416 00:19:58.735 --> 00:20:01.530 to assist you and your teams. 417 00:20:01.530 --> 00:20:02.880 Reach out and have us join 418 00:20:02.880 --> 00:20:05.943 one of your PBU coordination meetings for your area. 419 00:20:08.820 --> 00:20:10.131 Thank you for participating 420 00:20:10.131 --> 00:20:12.840 in this private business use training. 421 00:20:12.840 --> 00:20:14.326 Your help in safeguarding UVM 422 00:20:14.326 --> 00:20:17.910 with these IRS regulatory compliance requirements 423 00:20:17.910 --> 00:20:19.860 is greatly appreciated. 424 00:20:19.860 --> 00:20:22.410 Please let us know if you have any questions. 425 00:20:22.410 --> 00:20:25.260 Thank you again, and we look forward to working with you.