Financial Procedures for Tulane International, LLC (TILLC)

February 2010 Presented by: Tanya O’Rourke & Wade Wootan

Tulane International, L.L.C.

A subsidiary of Tulane University Tulane University

Objectives of Presentation

• To better understand: • The purpose of TILLC in-country bank accounts • Procedures, staff responsibilities & deadlines for requesting TILLC reimbursements for international expenses • Required documentation & format to substantiate TILLC reimbursements

Handouts

• • • • • Wiring Funds to TILLC In-Country Bank Account (TILLC Policy & Decision Tree) TILLC Wire Transfer Form Check/Wire Requests to Pay TILLC Vendors (TILLC Policy & Decision Tree) TILLC Request for Payment Form TILLC Reconciliation Report (re. in country bank account)

International Activity: Who are the Players?

• • • Tulane University TILLC IRG Sponsored International Research Unsponsored International Research International Academic Activities

What is TU’s role?

• • TU enters into agreements with sponsors (i.e., grant, contract, cooperative agreement) • Responsible for academic, technical & programmatic component Ultimately responsible for compliance with award terms and conditions

What is TILLC’s Role?

• • • TU organized TILLC as a legally distinct business entity to limit TU’s potential liability abroad through TILLC’s furnishing of administrative, management, monitoring and support services related to sponsored activity awarded to TU overseas. This is done through a Master Agreement for Purchased Services between TU and TILLC TU is the sole member (i.e., owner) of TILLC. TILLC has its own tax ID #, officers, directors, policies, forms, bank accounts, etc TILLC legally can open its own bank accounts, hire its own staff, contract on its own behalf, etc., all in furtherance of TU’s sponsored activity abroad

What is the IRG’s Role?

• • • The IRG is a TU committee formed to facilitate and centralize the decision making and approval process related to the administrative component of

sponsored & unsponsored international activity

• Excluding international academic activity IRG members include representatives from critical TU administrative areas A vehicle for process improvement

Handling of International Expenses

•

Question: When is TILLC responsible for paying an expense, as opposed to TU?

• Answer: • Expenses, such as in-country registration and the associated legal fees, which cannot be charged to a TU grant account or operating account must be paid by TILLC’s US bank account. • Look to TILLC policies & forms • If TILLC is registered in a foreign country and has an operating bank account in that country, most in country expenses should be paid through the TILLC bank account. If all or some of the expenses are reimbursable by a TU sponsored award or operating account, TILLC will bill TU for the expenses, which will be charged to the various TU accounts.

• Look to applicable TU policies & forms • Large purchases, such as vehicles, must be purchased through TU’s Purchasing Department. • For guidance on how a large expense should be processed, contact an IRG member.

In-Country Bank Account

• • • If Tulane has an in-country bank account, it will be set up through TILLC. Prior to opening an account abroad, TILLC typically is required to register to do business in that country.

TILLC bank accounts are not program or project specific. They theoretically can support all Tulane activity in that country.

Monies are wired from the TILLC Whitney bank account to the TILLC in-country account. Reconciliation after-the-fact resolves whether the expense is charged to an award or not.

Focused Review of TILLC Financial Procedures

Wiring Funds to TILLC In-Country Bank Account and Recording the Expenses on the TILLC books and the Tulane University books

• • 9-Step process (see attached Procedures) Wire Transfer Form

Wiring Funds from Tulane University (“TU”) to Tulane International, LLC (“TILLC”) In-Country Bank Account for Work Order Services or General Support Services

TILLC In Country Office or TU Unit

Pay in-country project expenses

TILLC In-Country Bank Account (e.g., Ecobank) #4

Wire advance funds

#1

--Request for wiring of advance funds for expenses --Use TILLC wire request form

TILLC Form #2 #3 Grants & Contracting Accounting

--Reviews request --Authorizes wire

TILLC Accountant

Authorization to wire funds

TILLC Whitney Bank Operating Account #5 Department Reporting & Reconciliation

: --Dept review & approval of lump sum reconciliation w/ supporting documentation separated by sponsored (5 ledger) & non-sponsored accounts --Prepare “pay to” to reimburse TILLC

TILLC Form #9 TILLC Whitney Capital Account #7 #6 Grants & Contracting Accounting

--Reviews & approves reconciliation Draw down from TILLC capital account for general support services and/or expenses not chargeable to award

TILLC Accountant --

Invoice for reconciliation --Financial Report; & --Send to TU AP (invoice and detail of expenditures)

#8 Tulane University (“TU”) Capital One Bank Account

Draw down from award for work order services per Federal cost principles

#9

Payment of invoice Charge back to benefiting TU unit for general support services and/or expenses not chargeable to sponsored award

#8 Sponsor A SPHTM and/ or Payson (as benefiting unit)

Focused Review

Check/Wire Requests to Pay TILLC Vendors Abroad

• • 7-Step Process (see attached Procedures) Request for Payment Form

Payee #3

Tulane International, LLC (“TILLC”) Check/Wire Requests to Pay TILLC Vendors for Work Order Services or General Support Services Directly from TILLC Whitney Account

#1 TILLC In-Country Office or TU Unit

--Request for direct payment (via check or wiring) --Use TILLC Payment Request Form & TILLC Wire Transfer Form

TILLC Forms #2 TU Unit Review

--Reviews request --Authorizes payment --Issues request for TILLC to pay expense --If billable to TU, prepare “pay to” for TU to reimburse TILLC (TU form)

#5

Yes

Grants & Contracting Accounting

--Reviews request --Authorizes payment

#4A

Request check/wire to pay vendor Send check or Wire funds to Payee Is expense billable to TU grant account?

No

TILLC Accountant TILLC Whitney Bank Operating Account #4B

Book expense to TILLC

TILLC Whitney Bank Operating Account #7B

Reimburse for work order services & TILLC Accountant deposits to TILLC Whitney bank

#6 If billable to TU:

--Prepare TILLC invoice to TU (attach invoice to “pay to” and forward to TU A/P)

TILLC Form #7A

Draw down from award for work order services per Federal cost principles

Tulane University (“TU”) Capital One Bank Account

Charge back to benefiting TU unit for general support services and/or expenses not chargeable to sponsored award

#7A Sponsor A SPHTM and/ or Payson (as benefiting unit)

Required Documentation & Format

• • Bank Reconciliation Report (example) Attach all supporting documentation to the Reconciliation Report • Attach proof of exchange rate for the month

Questions?