Transcript What we’ll go over today

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FastFacts
Feature Presentation
April 30, 2009
We are using audio during this session, so please dial in
to our conference line…
Phone number: 877-468-2134
Participant code: 182500
© 2009 The Johns Hopkins University. All rights reserved.
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Today’s Topic
We’ll be taking a look at…
Information you need to know before you begin a project
overseas.
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Today’s Presenter
Sunanda Holmes
Associate Director of the Office of International Business
Compliance, in the JHU Controller’s Office
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Session Segments
Presentation
Sunanda will provide an overview of what you need to know
before you begin a project in a foreign country.
During Sunanda’s presentation, your phone will be muted.
Q&A
After the presentation, we’ll hold a Q&A session.
We’ll open up the phone lines, and you’ll be able to ask
questions.
Sunanda will answer as many of your questions as time allows.
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Contact Us
If you would like to submit a question during the presentation or if
you’re having technical difficulties, you can email us at:
[email protected]
You can also send us an instant message!
GoogleTalk – [email protected]
AOL Instant Messenger – HopkinsFastFacts
MSN – [email protected]
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Survey
Survey
At the end of this FastFacts session, we’ll ask you to complete a
short survey.
Your honest comments will help us to enhance and improve
future FastFacts sessions.
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Office of International
Business Compliance (OIBC)
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Agenda
Introduce the Office of International Business Compliance (OIBC)
Discuss 10 important considerations and available resources
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What is the OIBC?
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OIBC Overview
Mission:
To create a framework that supports the university’s
global vision.
Goal:
To provide a comprehensive and centralized approach
for faculty and staff to comply with the U.S. and
foreign countries’ legal and regulatory requirements.
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Global Presence
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10 Things to Know Before You
Start a Program Abroad
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#1 – Starting an International Program
Why should I contact OIBC when submitting a proposal for
international activities?
OIBC will assist you in determining if the university is
already working in the country or region.
You can benefit from others’ experiences.
“Doing Business Guides” are a valuable resource.
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#2 – Retaining Legal Counsel
Do I need to retain legal counsel in a foreign country?
OIBC and the JHU Office of General Counsel will determine
if a local lawyer is necessary.
If necessary, OIBC and OGC will help you retain local counsel.
Schools or operating units of the university are not
permitted to independently retain local legal counsel.
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#3 – Foreign Legal Presence
What is registration?
Legal and strategic decision
Formalizes university’s presence in a foreign country
Types of registration
Liaison office
Branch office
Local entity (JHU controlled)
Alternatives to foreign registration
Partnerships
Memorandums of Understanding (MOU’s)
NOTE: Failure to comply with foreign corporate, labor and tax laws may lead to
severe penalties, including fines and imprisonment.
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#4 – Banking Considerations
Do I need a foreign bank account?
Local registration is required.
Obligates reporting and compliance under US and foreign laws.
JHU departments must adhere to foreign banking guidelines.
Contact the JHU Office of the Treasurer
Guidelines are available at
http://web.jhu.edu/treasurer/operations/foreign.html
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#5 – Human Resources
How do I handle staffing overseas?
Overseas hiring
Employees
US expats (US citizens working abroad)
TCNs (Third Country Nationals)
HCNs (Host Country Nationals)
Independent contractors
Work permits/visas
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#5 – Human Resources (cont’d)
HR policies
Local labor laws
Local employment laws
Customs
Employment taxes
Income and social security taxes
Local payroll administration
QuickBooks
Third party payers
Employment agencies
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#6 – Power of Attorney
What is a Power of Attorney (POA)?
Establishes local authority for signing documents related to
registration, banking, and limited types of contracts on behalf
of the university, but excluding capital or financing leases and
real estate leases.
Requesting a POA?
Contact OIBC to initiate your request.
OIBC will draft the necessary paperwork and work with the JHU
Office of General Counsel.
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#7 – Procurement
How do I purchase items overseas?
Items must be purchased in accordance with JHU procurement
policies and sponsor requirements.
$5,000 threshold
Set up inventory tracking system to keep records of all furniture,
equipment and non-expendable property purchased with value over
$500.
Any loss, damage, or theft to non-expendable property which
significantly reduces its functionality or operating life must be
documented and reported to staff in Baltimore.
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#8 – Legal Implications
U.S. laws
Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. §§
78dd-1, et seq.)
Office of Foreign Assets Control (OFAC)
http://www.treas.gov/offices/enforcement/ofac/
Specially Designated Nationals (SDN) list
http://www.treas.gov/offices/enforcement/ofac/sdn/index.sh
tml
Foreign/host country’s laws
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#9 – Tax Implications
Is the university tax-exempt in foreign countries?
The university’s tax-exempt status
Tax treaties
Bilateral agreements
Other agreements
Individual Taxes
Income tax
Social Security Taxes
Corporate taxes
Value Added Taxes (VAT)
Income taxes
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#10 – Risk Management
Insurance needs:
Property, liability and auto insurance
International SOS
http://www.internationalsos.com/en/index.htm?CFID=19021367
&CFTOKEN=23536111
Audits and oversight
Field offices
Sub-recipients
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Conclusion
OIBC is here for you!
There are resources at your fingertips:
http://www.controller.jhu.edu/depts/ibc/index.html
-Doing Business Guides are available online
-Detailed FAQ’s
Email: [email protected]
Phone Number: 443-997-8688
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Q&A
We’re going to open the phone lines now!
There will be a slight pause, and then a recorded voice will provide
instructions on how to ask questions over this conference call line.
We’ll be answering questions in the order that we receive them.
We’ll also be answering the questions that were emailed to us
during the presentation.
If there’s a question that we can’t answer, we’ll do some research
after this session, and then email the answer to all participants.
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Thank You!
Thank you for participating!
We would love to hear from you.
Are there certain topics that you would like us to cover in future
FastFacts sessions?
Would you like to be a FastFacts presenter?
Please email us at: [email protected]
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Survey
Before we close, please take the time to complete a short survey.
Your feedback will help us as we plan future FastFacts sessions.
Click this link to access the survey…
http://connect.johnshopkins.edu/fastfactssurvey/
Thanks again!