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 Univ ersity
Tulane
Univ ersity
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. incountry 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 incountry 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 InCountry Office
or TU Unit
#5
Pay in-country project expenses
#1
#2
#3
--Request for wiring
TILLC
of advance funds
Form
for expenses
--Use TILLC wire request form
Department Reporting &
Reconciliation:
--Dept review & approval of
lump sum reconciliation w/ supporting
documentation separated by sponsored (5ledger) & non-sponsored accounts
--Prepare “pay to” to reimburse TILLC
Grants & Contracting
Accounting
--Reviews request
--Authorizes wire
TILLC Accountant
#6
#7
#4
Wire advance funds
#9
TILLC
Whitney Bank
Operating
Account
TILLC
Whitney
Capital
Account
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)
Authorization to
wire funds
TILLC In-Country
Bank Account
(e.g., Ecobank)
Grants & Contracting
Accounting
--Reviews & approves
reconciliation
TILLC
Form
#8
Draw down from award
for work order services
per Federal cost principles
Sponsor A
Tulane University
(“TU”)
Capital One Bank
Account
#9
Payment of invoice
Charge back
to benefiting
TU unit
for general support
services and/or expenses
not chargeable
to sponsored award
#8
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
Tulane International, LLC (“TILLC”) Check/Wire Requests
to Pay TILLC Vendors for Work Order Services or General Support Services
Directly from TILLC Whitney Account
TILLC In-Country
Office or TU Unit
--Request for direct payment
(via check or wiring)
--Use TILLC Payment Request Form
& TILLC Wire Transfer Form
#1
#2
TILLC
Forms
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)
Is expense billable
to TU grant account?
Yes
TILLC
Whitney
Bank
Operating
Account
#3
Grants & Contracting
Accounting
--Reviews request
--Authorizes payment
#4B
No
Book expense
to TILLC
#6
If billable to TU:
--Prepare TILLC
invoice to TU
(attach invoice to “pay to”
and forward to TU A/P)
TILLC Accountant
#4A
Request check/wire to pay vendor
TILLC
Form
#7A
Draw down from award
for work order services
per Federal cost principles
Sponsor A
#5
Payee
Send check or Wire
funds to Payee
TILLC
Whitney Bank
Operating
Account
Tulane University
(“TU”)
Capital One Bank
Account
#7B
Reimburse for
work order services &
TILLC Accountant deposits
to TILLC Whitney bank
Charge back to
#7A
benefiting TU unit
for general support
services and/or expenses
not chargeable
to sponsored award
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?