Faculty, staff reminded about standard outlining responsibilities for partnerships, research in Purdue buildings

Purdue faculty and staff are reminded about the University's system-wide standard regarding third-party use of University buildings that are funded by low-cost, tax-advantaged financing.

The standard, Third-Party Use of Facilities (S-2), highlights the responsibilities concerning use of these facilities by or on behalf of third parties for private business use, which could include research activities, partnerships, retail operations, and management contracts, among other activities.

Purdue uses tax-advantaged financing to fund construction of certain academic, research and auxiliary facilities. The federal government regulates aspects of this financing activity, including the use of such facilities, to ensure that the benefit of the tax exemption is not extended to unrelated parties in excess of allowable limits, says Denise Laussade, director of treasury operations.

"Faculty and staff need to be aware of the restrictions about type of use in these facilities," Laussade says. "Noncompliance could jeopardize the tax status of the debt financings, causing tax consequence to the bond holders and creating reputational and cost risk to the University."

Last year, the Office of Treasury Operations developed a web certification that provides a high-level overview of the requirement and constraints on third-party use of University buildings. Faculty and staff can take the certification at https://www.purdue.edu/webcert by logging in and selecting "Office of Treasury Operations" and then "Tax-Exempt Bond Compliance – Private Business Use / 2016."

Treasury Operations also conducts an annual survey and works with Sponsored Program Services, Procurement Services, University Development Office, Business Management and building deputies to help identify private business use in tax-advantaged facilities. Treasury Operations is completing its 2016 survey now.

The office has several online resources available on private business use, including campus maps that highlight debt financed buildings.

Questions about the standard can be directed to Laussade at dlaussade@purdue.edu or 765-496-1223.