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ISP Presentation

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ISP Presentation

  1. 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>
  3. 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>
  4. 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>
  5. 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>
  6. 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>
  7. 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>
  8. 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>
  9. 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>
  10. 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>
  11. 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>
  12. 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>
  13. 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>
  14. 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>
  15. 16. Q & A

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