Transcript Working Group for Global Operations Support (WGGOS)

Administering a Global Portfolio:
Challenges in Managing International Projects
Cheryl George, Kara Amoratis, Sue Wiedemer
ACOR Retreat
September 5, 2012
As Universities Expand Abroad,
Risks & Obligations Do As Well
 To meet the needs of INTERNATIONALIZATION…..
 increased activity abroad and at home
 new types of activity
 increased travel risk
 increased host country requirements and enforcement
 increased USG reporting and compliance obligations
...administrative coordination is essential
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Internationalization Means
New Activities
International operations support structure needs to be nimble and
centrally coordinated to meet new needs at home and abroad….
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Research collaboration is becoming more complex
Collaborative degrees present new issues for accreditation and matriculation
Faculty are staying abroad longer and getting more involved
Non-U.S. funding sources
Independent student travel for research and internships
Faculty-led small group travel is increasing
Destinations are more diverse and may present new risks
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Increased Host Country Engagement
Host countries are becoming more thorough in enforcing disclosure, labor, tax
and registration requirements….
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Cannot assume U.S. non-profits will be “exempt” in foreign countries
U.S. educational institutions sued for employee benefits
New registration rules in many countries
Bahrain, Venezuela, Sudan, Egypt and Iran have recently
tightened registration requirements
….and fines and penalties (including imprisonment) can be costly, and imposed
personally upon individual employees.
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Increased U.S. Government Reporting
Requirements
New USG requirements have had a great impact on data collection efforts….
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IRS Form 990, Schedule F and R
Foreign Bank Account Reports (FBAR)
Higher Education Act of 1965
Department of Commerce BE-125 Report
IRS Form 5713 (International Boycott Report)
Federal Funding Accountability and Transparency Act
Dept. of Commerce - Bureau of Industry and Security Form BIS 621P
Clery Act Application to Education Abroad
…. and many U.S. institutions are just becoming aware of this.
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Compliance Needs
You must have an administrative structure that supports U.S. regulatory
compliance ...
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Export Controls
Office of Foreign Asset Control
Anti-Boycott Laws
Foreign Corrupt Practices Act
…. as evidenced by increased auditing and government oversight in nearly
every region of the world.
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Compliance Needs
And you must have an administrative structure that supports foreign country
legal compliance ...
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Better tracking of activities abroad
More nimble process for providing operations support abroad
Clear process for assessing, in advance, costs of in-country compliance for
proposed activities
Promote better understanding of the implications of certain types of
activities abroad.
…. to avoid liability, penalties or under-prediction of project costs.
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Global Operations Infrastructure
Task Force
• Charged November 2010
• Led by Peter Schiffer & Dave Richardson
• Recommendations:
Form WGGOS
Resolve 42 identified issues
Create a website
Audit current international activities
Recommend a data collection tool
Form WGGOS
Working Group for Global Operations Support
• Charged April 2011
• Standing committee with members from:
Finance & Business
Sponsored Programs
Research Protections
Information Technology
General Counsel
Global Programs
Medical School
Risk Management
Faculty
Human Resources
Resolve Issues
WGGOS Sub-groups:
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Travel security/preparation
Legal issues
Financial operations
Research integrity/Medical operations
Academic issues
Export control compliance
Travel Security/Preparation
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Review travel restriction policies for all groups
Assess pre-departure preparation for non-EA groups
Clarify and publicize insurance for all
Clarify emergency preparedness for all
Draft data privacy/laptop guidelines
Provide travel resources
Legal Issues
• Resolve controlling law and translation policy for
international agreements
• Adopt agreements approval process
• Assess guidelines on prohibited parties/embargoed
countries
• Assess compliance needs for currency, financial,
banking regulations
• Provide advice for compliance with FCPA
Financial Operations
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Address hiring, procurement and leasing abroad
Draft advice on banking and funds transfer
Draft advice on equipment transfer
Address Anti-boycott laws and other tax reporting
issues
• Assess expense-reporting policies abroad
• Assess overhead rates abroad
• Address cost allocation for consultants
Research Integrity/
Medical Operations
• Clarify research integrity process (IRB, etc) for
research collaboration with non-U.S. partners
• Draft guidelines on endangered species,
import/export of wildlife and plants, DNA
• Draft cultural property advice, provide resources
• Review clinical research policies for application
abroad
Academic Issues
• Review provisions for graduate and post-doc
exchanges
• Clarify faculty exchange policies
• Consider what additional policies are needed for
research information sharing
Export Control Compliance
• Assess current compliance infrastructure
• Consider broader access to compliance software
(Visual Compliance)
• Establish communications guidelines for research
collaboration
• Assess guidelines for labs and facilities
• Establish language for collaboration agreements
Create a Website
• Global operations guidance in one place
• Housed with Global Program websites
• Link to other websites
• Provide Contacts for Answers
Information Collection Needs
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U.S. reporting requirements
Compliance requirements
Travel security for all constituents
Managing institutional risk
Strategic tracking for better support/coordination
Data Collection Snapshot
Use current sources of information?
SIMS
ERS
Travel onLion
IBIS
ISIS Data Warehouse
Global Reach Portal
Development database
Intellectual property database
Agreements database
ISFVS database
RM Groups database
Information requests
Benchmarking
• Pre-Travel Registries
Undergraduates only
Undergraduates, credit program only
Faculty, staff and students recommended
Faculty, staff and students mandatory
• Research and Activity Registries
Mandatory for certain international activity/ voluntary
• Data Flagging for IRS 990 Reporting
• Annual survey
Peer Institutions
Boston University
Duke University
George Washington University
Harvard University
Michigan State University
Stanford University
University of Michigan
University of Minnesota
University of Pennsylvania
Yale University
Penn State Options
Being Considered
• Travel registry mandatory for students
• Faculty/staff:
– Self-reporting enforced by colleges/departments
or
– Mandatory central registry with 4 questions
&
– Annual/quarterly survey to follow-up
• Comprehensive travel insurance
Operations Abroad
Sue Wiedemer, Associate Controller
Logistical guidelines for operating abroad
Legal issues of operating abroad
Establishing Operations Abroad
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Getting Established Abroad
Foreign Bank Accounts and Transfers
Employment and Hiring Abroad
Procurement, Leasing, and Renting Abroad
Transfer of Materials and Equipment Abroad
Getting Established Abroad
1) Work through an in-country partner;
2) Retain a third-party provider;
3) Establish Penn State entity in-country to:
-comply with applicable laws
-accommodate payroll services
Must have approval from Controller & GC
Foreign Bank Accounts & Transfers
1) Several options available
2) Contact FO prior to travel (as early as possible)
-discuss best options
-make arrangements
Employment & Hiring Abroad
1) Hiring non-U.S. citizens overseas complex and
requires robust infrastructure to:
-comply w/ local tax, labor laws
-adhere to reporting procedures
-provide payroll services
2) All hiring to be cleared prior to employment
3) Long-term arrangements to be reviewed by Penn
State’s Director of Payroll & Tax Services
Must have approval from Controller & GC
Procurement, Leasing & Renting
1) May require special processes
2) Contact FO
-consider transactional needs in advance
-discuss plans
Transfer of Materials & Equipment
Federal Law may require special
licensing or reporting for:
 export-controlled materials;
 shipments over $2,500;
 some international destinations (Cuba, Iran,
North Korea, Sudan, Syria);
 specific items (rough diamonds)
Operations Abroad
Cheryl George, Export Compliance Officer
Export Control Guidelines
Research Collaboration Concerns
Working with International
Colleagues
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Export Control Laws
Restricted Countries, Persons, and Entities
Anti-Boycott Laws
Payments and Gifts to Foreign Officials
Research Collaboration
Export Control Laws
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Export Control Laws:
- control the export of certain technologies, software, hardware
- regulate the transfer of items, technology, software, services
- apply to ALL activities with foreign persons and countries
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Export Control Laws MAY restrict:
- foreign nationals from participating in research
- University personnel from providing services (including training)
to foreign nationals
- shipment of equipment, parts, technology or software to
foreign countries
- the ability to collaborate with researchers in foreign countries
Export Control Laws
This program scans 70 different federal
sites to search for individual names and
organizations that are being watched by
the federal government because of
actions that oppose U.S. security and
economic interests.
Export Control Laws
• Anti-boycott laws are handled through the
Office of Anti-boycott Compliance (OAC)
under the Bureau of Industry and Security
(BIS).
http://www.bis.doc.gov/complianceandenforcement/index.htm#oac
Export Control Laws
• Payments and gifts to foreign officials…..is that
illegal?
U.S. Department of Justice
United States Attorney's Office
District of Columbia
(202) 514-6933
Chiquita Brands International, Inc., Pleads Guilty to Making Payments to a
Designated Terrorist Organization and Agrees To Pay a $25 Million Fine
Export Control Laws
• International research collaborations cannot claim the
fundamental research exemption.
• Must have an export review because it is important to know
who we are collaborating with.
• It is also important to know what we will be shipping or
creating and sending abroad
• A license could be necessary before we send technologies
abroad.
Export Control Laws: Resources
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Penn State’s Export Control web page
Laptops and Cell Phones Abroad (Global Operations website)
Penn State’s Export Control Manual
Penn State’s Export Control Policy RA18
Penn State’s Export Control Policy RAG11
General Counsel’s Advisory on Export Control: Explanation
of Impact of Fundamental Research Exclusion
Comments & Questions