Financial ProceduresFinancial Proceduresfor for

Tulane International, LLC (TILLC)Tulane International, LLC (TILLC)

February 2010

Presented by: Tanya O’Rourke &

Wade Wootan

Tulane International, L.L.C.A subsidiary of Tulane University

TulaneUniversity

Objectives of PresentationObjectives 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

HandoutsHandouts

• 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:International Activity:Who are the Players?Who are the Players?

• Tulane University

• TILLC

• IRG

What is TU’s role?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?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?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 Handling of International ExpensesExpenses

• 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 AccountIn-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 Focused Review of TILLC Financial ProceduresTILLC Financial Procedures

• 9-Step process (see attached Procedures)

• Wire Transfer Form

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

and the Tulane University books

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

TILLCWhitney Bank

OperatingAccount

TILLC In-CountryBank Account(e.g., Ecobank)

Tulane University(“TU”)

Capital One BankAccount

TILLC In-Country Office

or TU Unit

#1--Request for wiring

of advance fundsfor expenses

--Use TILLC wire request form

#3

Payment of invoice

#2 #6

Pay in-country project expenses

#4

#5

Sponsor ADraw down from awardfor work order services

per Federal cost principles

#7

Grants & ContractingAccounting

--Reviews request--Authorizes wire

Wire advance funds

TILLCForm

SPHTM and/or Payson

(asbenefiting

unit)

Charge backto benefiting

TU unitfor general support

services and/or expensesnot chargeable

to sponsored award

#9

Department Reporting &Reconciliation:

--Dept review & approval oflump sum reconciliation w/ supporting

documentation separated by sponsored (5-ledger) & non-sponsored accounts

--Prepare “pay to” to reimburse TILLC

Grants & ContractingAccounting

--Reviews & approvesreconciliation

TILLC Accountant

Authorization towire funds

TILLC Accountant--Invoice for reconciliation

--Financial Report; &--Send to TU AP (invoice

and detail of expenditures)

#8

#8

TILLCWhitneyCapital

Account

Draw down from TILLCcapital account for general

support services and/orexpenses not

chargeable to award

#9

TILLCForm

Focused ReviewFocused Review

• 7-Step Process (see attached Procedures)

• Request for Payment Form

Check/Wire Requests to Pay TILLC Vendors Abroad

Tulane International, LLC (“TILLC”) Check/Wire Requeststo Pay TILLC Vendors for Work Order Services or General Support Services

Directly from TILLC Whitney Account

TILLCWhitney Bank

OperatingAccount

Tulane University(“TU”)

Capital One BankAccount

TILLC In-CountryOffice or TU Unit

#1 --Request for direct payment(via check or wiring)

--Use TILLC Payment Request Form& TILLC Wire Transfer Form

Reimburse forwork order services &

TILLC Accountant depositsto TILLC Whitney bank

#5

Sponsor ADraw down from awardfor work order services

per Federal cost principles

#7B

PayeeSend check or Wire

funds to Payee

Grants & ContractingAccounting

--Reviews request--Authorizes payment

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)

Yes

#3

TILLC Accountant

No

Request check/wire to pay vendor

#6

#4A

TILLCForms

TILLCForm

SPHTM and/or Payson

(asbenefiting

unit)

Charge back tobenefiting TU unit

for general supportservices and/or expenses

not chargeableto sponsored award

#4B

TILLCWhitney

BankOperatingAccount

Book expenseto TILLC

#7A

#7A

If billable to TU:--Prepare TILLC

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

#2

Is expense billableto TU grant account?

Required Documentation & FormatRequired Documentation & Format

• Bank Reconciliation Report (example)

• Attach all supporting documentation to the Reconciliation Report

• Attach proof of exchange rate for the month

Questions?Questions?