End of the Fiscal First Quarter: Funding Commitment Transfers - Aging Transactions - OSA Sweep - Excise Tax

Dear H&S Finance Colleagues,

Thank you for your assistance reviewing Dean’s Office funding commitments for transfer this month.  Those funding commitments not requiring a detailed journal description will be transferred and appear in November fund statements; remaining commitments will be transferred one-by-one throughout the year.

The first quarter of the fiscal year has now ended (November 30).  There are two areas needing your review to avoid fees/penalties: 

1) Aging Transactions:  This week, FMS sent an email to active Purchasing Card and Travel Card holders and verifiers, reminding them to clear their aging transactions and pointing to a new quarterly process to facilitate the timely clearing of uncleared Purchasing Card (PCard) and Travel Card (TCard) transactions and advances.  Please run reports to see if there are any aging transactions in your area and clear them prior to the transactions being force cleared. 

“FMS will sweep force cleared transactions to a guaranteed PTA or AP Default Account and charge a fee of $35 per transaction. In addition, PCards and TCards whose aging transactions are force cleared may be suspended based on the card suspension policy. More information about card suspension after force clearing will be provided in the coming months. To see the quarterly force clearing calendar, visit the Clearing of Aging Transactions policy page.

H&S Finance Job Aid: https://finance-humsci.stanford.edu/resources/clearing-aging-transactions-job-aid-2021

2) Clearing of Organization Suspense Accounts for Labor: (OSA sweep):  Please review the balance of your unit’s OSA account and clear any transactions before the quarterly sweep this month.  Transactions that are force cleared will be charged $25 per line.  Additionally, force cleared transactions have the full RBE benefits fringe rate applied to the transaction.    

H&S Finance Job Aid: https://finance-humsci.stanford.edu/resources/how-clear-org-suspense-account

In addition to the above quarterly activities, there is also a change to the timing of the excise tax charge that we want to bring to your attention:

Excise Tax:  The net investment income excise tax was introduced by the Tax Cuts and Jobs Act of 2017 and applies to investment income (dividends, interest, rents, etc.) and realized gains (including gains on appreciated gift securities).  The tax became effective September 1, 2018. 

A change in the charge of taxes from annually to monthly: Previously, taxes on appreciated gift securities were charged annually to awards.   Gifts of securities sold in FY19 were charged to the awards in FY20, and gifts of securities sold in FY20 were charged to awards in FY21.  For gifts of securities sold in FY21 excise taxes were charged to awards at the end of November.  Going forward, taxes will be charged monthly rather than annually.  The charges will be visible in award fund statements.

As always, please don’t hesitate to reach out to your Finance Liaison.


Blake Grenier

Associate Director of Finance

The School of Humanities and Sciences