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Automotive repair, as referred to in this section includes auto
mechanics and body shop. This section is provided due to tax related
and classification and reporting issues.
Automotive programs frequently involve hands-on instruction in
mechanics and body shop. Students may elect to use their personal
vehicles; however, the instruction may involve the use of vehicles
owned by individuals other than Ivy Tech students. In all cases,
the preferred practice for acquiring parts and supplies is for
the vehicle owner to provide the required items. This is generally
accomplished based upon estimates of parts and supply needs.
The practice of the vehicle owner providing parts and supplies
is preferred to minimize problems with Indiana Gross Income Tax
and Indiana Sales Tax. In addition, this practice provides for
a uniform method of dealing with the acquisition of automotive
program parts and supplies and does not require the Region to
maintain an inventory of parts.
A second acceptable practice, which may be used if the preferred
practice described above is programmatically impractical, permits
College funds to be used to acquire necessary parts. The total
expense including sales tax should be accounted for in a program
specific accounts receivable account in the operations fund. Vehicle
owners are required to pay amounts due as a condition of the return
of their vehicle. If balances are in the Accounts Receivable account
at fiscal year end, a schedule must be forwarded to the Assistant
Assistant Treasurer listing (a) Vehicle Owner, (b) Date of Purchase
of Parts, and (c) Total Amount Due. The total of this schedule
must agree with the balance in the accounts receivable account.
Regions who want to use alternative methods to the two practices
detailed above for acquiring and costing vehicle parts and supplies,
must file a request annually with the College Vice President for
Finance/Treasurer. The request will be reviewed to determine the
appropriateness of the alternative method. The request will be
filed for each fiscal year and, if approved, will be retained
by the Executive Director of Finance for review by internal and
external auditors.
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