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Vice President for Finance - page 8 / 14





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Vice President for Finance

goal of consistent high quality in paying employees, tax reporting and compliance, as well as timely and accurate distribution of pay.


During FY 2008, the Internal Revenue Service released a new draft of the Form 990, which is the informational return required to be filed by not-for-profit entities. The Tax group worked with the National Association of College and University Business Officers to provide comments on both the draft form and draft instructions. The new Form 990 will be effective for the fiscal year beginning on July 1, 2008. This is the first overhaul of the Form 990 in almost 20 years. The result is a core form that doubled in size from 6 to 11 pages plus the addition of 16 schedules. We anticipate that MIT will be required to complete 15 of the 16 schedules. The Tax group has been meeting with members of the community, from the Administrative Officers (AOs) in the School of Engineering to individuals in HR, to prepare for the increased detail to be incorporated into the form.

MIT continues to file its Form 990 electronically. In addition to the federal Forms 990 and 990-T filed, MIT files state returns based on Unrelated Business Income generated. The number of states in which returns were filed increased by 160 percent from 5 to 13. Returns were also filed in 11 states for MIT’s Basic Retirement Plan. In order to accurately prepare our returns, the tax group collaborates with MITIMCo to send out due-diligence questionnaires to the several hundred limited partnerships in which MIT and the Retirement Plan invest. The process has been streamlined so that all partnerships receive the information request electronically and therefore can respond electronically. The questionnaires and state return preparation process further allows the tax group to collaborate with tax professionals at the investment partnerships.

The group continued providing tax support in several areas in FY2008. The group worked closely with the Office of Major Agreements (OMA) and the Office of the General Counsel (OGC) to support the establishment of a trust in India as well as providing research and tax support during the creation of SMART. The group also supports the larger MIT community with general tax questions and concerns.

As the tax environment for nonprofits continues to change, the Tax group is focused on staying current with state, federal, and international tax issues through training, collaboration, and networking. In the coming year the Tax group will continue to collaborate with OMA and OGC to prepare for the new Form 990 and to understand the tax issues that affect the community.

Ofce of Budget, Finance, and Treasury

The Office of Budget, Finance, and Treasury (OBFT) was created within VPF in July 2007 by merging the then Office of Budget Operations and Office of Finance. At that time, the director of budget operations, Peg Warner, retired, and the director of finance, Israel Ruiz, became the vice president for finance. The third component of the office, Treasury, has continued to be managed by officers of MITIMCo in the short term. While OBFT has managed the debt portfolio, the management of short-term assets still remains to be transitioned from MITIMCo. Despite its name change, the Budget and Finance groups continued to operate separately to achieve Institute goals while a national search was

MIT Reports to the President 2007–2008


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