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ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
ISP Presentation
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ISP Presentation

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  • Welcome Introduce Presenters
  • Standardize – content, timing and format of JSA billing transactions University Policies, Federal & State laws and/or regulations
  • Handout: ISP Committee Members Standardize – content, timing and format of JSA billing transactions University Policies, Federal & State laws and/or regulations
  • Handout: ISP Standards Committee Charter ISP Standards Committee represents a wide array of departments that includes many people with specific knowledge in a particular area. This presentation will show that there are a wide array of issues related to ISPs, and no one person is an expert in all areas. You may know a lot of this material. You will definitely become aware of other issues related to ISP.
  • Timely and consistent information will make life easier for user departments. Rates need to comply with federal regulations if charging federally sponsored awards There must be documentation of rate charged and amount billed for auditors
  • These are all external users. Just because people are Yale employees or “Yale” is in the organization name doesn’t mean that they are “Yale”.
  • A seemingly harmless transaction to an external customer may trigger property taxes with the City, if ISP activity is significant enough in an “academic” building It may affect the tax exempt status of our debt, if significant activity occurs in buildings financed with tax exempt debt We cannot double charge the Feds: once when they finance the equipment purchase and a second time in the equipment depreciation. Yale is not taxed on activities related to its academic mission. External sales may trigger UBIT. A stock room sale to a faculty for personal use should include sales tax. Walmart stores often draw community protests that the small business will be driven out. Yale doesn’t want to be seen in a similar manner.
  • Handout: Revisions to Journal Category Interdepartmental Charges and Credits Handout: Internal Billing and recovery Record Layout Handout: Account Holder Report Modifications
  • Handout: ISP Revenue Expenditure Types for Goods and/or Services
  • Registration is important so that SC can review operations and experts in given subject can determine implications, if any, for Yale. A Unique SSI will is assigned to ISP. It must be used in JSA batch, along with ISP Category Yinterdept, and will be validated against registration table Soft validation 1 st – eventually hard validation. Category will monitored for correct use Annual renewal should highlight any significant changes in ISP operations Feedback on Timing of annual registration?
  • No show fees are not acceptable; annual fee is not either – isn’t supported by actual usage FB @ negotiated rates; depr’n expense – bldg & equip, but not equipment purchases; no internal amortization, but actual interest expense; GCFA is available to provide this information and to assist you. GCFA will review all SSF pricing each year in the initial stages of the budget cycle. Recharge center pricing will be reviewed by GCFA during the year; not all recharge centers will be reviewed each year. Rates can be higher for internal non sponsored and external users; incremental increase from calculated rate Surplus/deficit carried forward into new rates. Surplus above 60 day operating expense must be CF; deficits are optional
  • Standardize what customers see on their statements Billing practices should be described on Registration form; noting timing of billing for review. The key concern in billing timing is end dates of an award Keeping ISP activity in a unique org or a unique project is how the rates will be cost based External customers should be recorded as external revenue. 47XXX. Internal Revenu in 510XXX If you give discounts/charge premiums from the standard price list; they must be recorded in a unique expenditure type. We need to show that these discounts are not increasing rates charged to Federal awards through deficit carryforward.
  • Transcript

    • 1. Internal Service Providers Update Brown Bag Luncheon Series May 12, 2008 Pauline Fagan, Sr. Fin Analyst Sponsored Programs x6-4945 Andy Sgambato, Assoc Dir Controller‘s Office x2-9708
    • 2.  
    • 3. ISP Billing Standardization Project <ul><li>Began in August 2006 as Part of 100 Day Plan </li></ul><ul><li>Standardize ISP Billing Practices </li></ul><ul><ul><li>Format, content and timing of JSA transactions </li></ul></ul><ul><li>Create an Oversight Body </li></ul><ul><ul><li>The ISP Standards Committee </li></ul></ul><ul><li>Update Policy 1410, create Procedures, Forms and Instructions </li></ul><ul><li>“Register” all ISPs </li></ul><ul><ul><li>Document ISP activities and practices </li></ul></ul><ul><ul><li>Assist ISPs with compliance efforts </li></ul></ul><ul><ul><li>Communicate compliance pitfalls </li></ul></ul>
    • 4. ISP Billing Standardization Project Process <ul><li>The initial project engaged ISPs, Business Administrators and Central Administrators on various committees to develop policy and procedures. </li></ul><ul><li>The ISP Standards Committee is the permanent oversight body that meets quarterly. </li></ul>
    • 5. ISP Standards Committee <ul><li>Andrew Rudczynski, Co-owner of Process </li></ul><ul><li>Cary Scapillato, Co-owner of Process </li></ul><ul><li>Participants include: </li></ul><ul><ul><li>Department Administrators </li></ul></ul><ul><ul><li>Shared Science Services Branch </li></ul></ul><ul><ul><li>School of Medicine FINOPs </li></ul></ul><ul><ul><li>Grant & Contract Financial Administration </li></ul></ul><ul><ul><li>Controller’s Office (including Tax Dept & General Accounting) </li></ul></ul><ul><ul><li>Budget Office </li></ul></ul><ul><ul><li>Procurement </li></ul></ul>
    • 6. Why was the ISP Project Necessary? <ul><li>Timely and consistent information for internal customers </li></ul><ul><li>Accurate University Financial Statements </li></ul><ul><li>Cost based Rates </li></ul><ul><li>Appropriate documentation to support the products or services charged to customers </li></ul><ul><li>Unintended consequences of external revenue </li></ul>
    • 7. External Users <ul><li>Faculty, staff, students for personal use </li></ul><ul><li>Agencies </li></ul><ul><li>Yale New Haven Hospital </li></ul><ul><li>Private Companies </li></ul>
    • 8. External Revenue Unintended Consequences <ul><li>ISPs which charge external customers must consider: </li></ul><ul><ul><li>University’s property tax exemption </li></ul></ul><ul><ul><li>Buildings financed with tax exempt bonds </li></ul></ul><ul><ul><li>Equipment purchased with Federal funds </li></ul></ul><ul><ul><li>Unrelated Business Taxable Income </li></ul></ul><ul><ul><li>Sales tax </li></ul></ul><ul><ul><li>“ Unfair” competition with vendors </li></ul></ul>
    • 9. New Responsibilities <ul><li>ISPs: Written standards for the Content , Format and Timing of JSA transactions. </li></ul><ul><ul><li>Use correct Journal Staging Area (JSA) category and Source System Identifier (SSI) </li></ul></ul><ul><li>Customers: Correct PTAEOs </li></ul><ul><ul><li>Valid and appropriate </li></ul></ul><ul><li>Both: Timely Problem Resolution </li></ul>
    • 10. Policy & Procedures <ul><li>Revised Policy 1410 Internal Service Providers </li></ul><ul><ul><li>yale.edu/ppdev/policy/1410/1410.pdf </li></ul></ul><ul><li>Procedure 1410 PR.01 </li></ul><ul><ul><li>Registration and Annual Renewal of an ISP </li></ul></ul><ul><ul><li>yale.edu/ppdev/Procedures/isp/1410PR.01_ISP_RegistrationAnnualRenewal.pdf </li></ul></ul><ul><li>Procedure 1410 PR.02 </li></ul><ul><ul><li>Rate Calculations for ISPs </li></ul></ul><ul><ul><li>yale.edu/ppdev/Procedures/isp/1410PR.02_ISP_RateCalculations.pdf </li></ul></ul><ul><li>Procedure 1410 PR.03 </li></ul><ul><ul><li>Accounting for ISPs </li></ul></ul><ul><ul><li>yale.edu/ppdev/Procedures/isp/1410PR.03_ISP_Accounting_Billing.pdf </li></ul></ul>
    • 11. Procedure 1410 PR.01: Registration and Annual Renewal of an ISP <ul><li>Initial registrations are complete </li></ul><ul><li>Registration information updated annually each October </li></ul><ul><li>Description of operation </li></ul><ul><ul><li>Order entry practices </li></ul></ul><ul><ul><li>Billing practices </li></ul></ul><ul><ul><li>JSA creation practices </li></ul></ul><ul><ul><li>General rate setting process </li></ul></ul><ul><li>Registered ISPs received Source System Identifier (SSI) </li></ul><ul><ul><li>Only registered ISPs will be able to use Internal Revenue accounts and the Interdepartmental Revenue Journal Category </li></ul></ul><ul><li>General Accounting sends info by e-mail annually for update </li></ul>
    • 12. Procedure 1410 PR.02: Rate Calculations for ISPs <ul><li>ISPs need to calculate their cost based rates based on allowable costs and capacity utilization. </li></ul><ul><ul><li>capacity utilization = actual usage (not full capacity) </li></ul></ul><ul><li>Rate charged to Sponsored Awards must be cost or less. </li></ul><ul><li>Rate worksheets sent to GCFA annually for review (This year they were due 4/15/08) </li></ul><ul><li>Higher rates may be charged to non-sponsored accounts & external users </li></ul><ul><ul><li>Special accounting procedures required should this occur. </li></ul></ul><ul><li>ISPs are expected to break even by product line or related services, unless deficit approved by appropriate Budget Authority </li></ul>
    • 13. Procedure 1410 PR.03: Accounting for ISP <ul><li>Specific transaction format with a unique Source System Identifier, validated against registration table </li></ul><ul><li>Bill prior to the fiscal month closing for the month that services/goods were provided, unless alternative is approved </li></ul><ul><li>Accumulate ISP activity in a unique organization or project </li></ul><ul><li>Segregate internal & external revenue using different expenditure types </li></ul><ul><li>New ISP Expenditure Types </li></ul><ul><ul><li>Record discounts and premiums in unique expenditure type </li></ul></ul><ul><ul><li>Internal Service Provider Income exempt from registration requirements. </li></ul></ul><ul><ul><li>Internal Service Provider Clinical Trial Income </li></ul></ul><ul><ul><li>Internal Service Provider Medical Services Income </li></ul></ul>
    • 14. Forms and Related Documents <ul><li>Forms and Instructions </li></ul><ul><li>New Form: ISP Registration Form & Instructions </li></ul><ul><ul><li>yale.edu/ppdev/forms/isp/1410FR.13_ISP_Registration.doc </li></ul></ul><ul><ul><li>yale.edu/ppdev/forms/isp/1410FR.13_ISP_RegistrationInstructions.pdf </li></ul></ul><ul><li>New Form: Rate Template & Instructions </li></ul><ul><ul><li>yale.edu/ppdev/forms/isp/1410FR.13_ISP_Registration.doc </li></ul></ul><ul><ul><li>yale.edu/ppdev/forms/isp/1410FR.14_ISP_RateCalculationInstructions.pdf </li></ul></ul><ul><li>Related Policies </li></ul><ul><li>Policy 1308: Program Income Associated with Sponsored Programs </li></ul><ul><ul><li>yale.edu/ppdev/policy/1308/1308.pdf </li></ul></ul><ul><li>Procedure 1305 PR.04: Unallowable Costs </li></ul><ul><ul><li>yale.edu/ppdev/Procedures/gc/1305PR.04UnallowbleCosts.pdf </li></ul></ul>
    • 15. ISP Information <ul><li>For further information check the ISP website </li></ul><ul><ul><li>yale.edu/finance/controller/isp/index.html </li></ul></ul><ul><li>For questions email [email_address] </li></ul>
    • 16. Q & A

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