Subrecipient Invoice Receipt & Processing Brown Bag Luncheon Series November 16, 2009

SLIDE 1 Introduction of Panel TopicPresenter Telephone IntroductionTracy Today’s AgendaNancy Today’s ObjectiveNancy GCFA’s View/Role of the Subaward Payment Process Nancy School’s Role in Central Receipt of Subrecipient Invoices Mark Prendergast Dawn Finaldi Department Business Office and Principal Investigator Roles Dennis Accounts Payable’s Role: Receipt and Validations James Muhammad Dennis Titley Questions and AnswersAll Panel Members

SLIDE 2 Today’s Agenda: GCFA’s View/Role of Subaward Payment Process School’s Role in Central Receipt Department Business Office and Principal Investigator Roles Accounts Payable’s Role in Validations, Payments and Invoicing Holds Q&A

SLIDE 3 Today’s Objectives: What you will take away from today’s presentation: A new method for receipt and processing of subaward invoices An understanding of the Subaward Management System and the A/P Holdlist A Toolkit available to Department Administrators Checklist Template

SLIDE 4 GCFA’s View/Role of the Subaward Payment Process What we have heard…. “Many invoices are lost!!” “We sent it to GCFA- Where is my invoice? Why isn’t it paid?” “Departments don’t know when invoices are on hold. How are we supposed to know or provide information to get the invoice paid?” “Subrecipients are calling looking for payments.” “We entered all the information; why are the invoices now on hold?” How can this process be improved?

SLIDE 5 GCFA’s View/Role of the Subaward Payment Process What We Know!! To date we have 985 active subawards – 85 Central Campus and 900 YSM. Approximately 100 invoices per month fail the approval/validation processes and are placed on hold. Common reasons for invoices being placed on hold: No amendment/invalid subaward 37% No P.I. and /or Department Business Office Signature 2% Not enough funding available12% No subcontract number or incorrect subcontract number 6% The subrecipient invoicing process is a complex task that includes the teamwork of many offices. A more streamlined process for receipt and payment is needed! Need to reduce invoice processing time so subrecipients receive their payments sooner!

SLIDE 6 School’s Role in Central Receipt of Subrecipient Invoices To simplify the receipt of subaward invoices there will be two central locations for subrecipients to send their invoices: YSM (School of Medicine) invoices Research Compliance Coordinator 47 College St., Suite 216 P O Box New Haven, CT Central Campus (all non-Medical School) invoices Research Compliance Coordinator 260 Whitney Avenue P O Box New Haven, CT Note: All new outgoing subaward documents will have the new remittance address reflected in the subaward template. For existing subawards, a notification will be sent to the subrecipient regarding the of address change.

SLIDE 7 School’s Role in Central Receipt of Subrecipient Invoices Upon receipt of subrecipient invoices in either YSM Financial Operations or the Shared Science Service Branch (non-Medical School invoices), Coordinators from both areas will provide the following information: Identify Department Organization # Identify Sub K # Identify Award # Identify Sub K expense type Once the above items are identified, the invoices will be scanned and forwarded to the department for review and approval.

SLIDE 8 Department Business Office and Principal Investigator Roles The PI or designee is required to sign each invoice The PI or designee signature acknowledges review of technical progress reports and/or satisfactory performance by the subrecipient Note: If a PI designates signing authority, the designee must have knowledge of the projects technical progress.

SLIDE 9 Department Business Office and Principal Investigator Roles (cont.) The Departmental Business Office Reviewer must ensure that all subaward invoices include the following information: Name of subrecipient Date of invoice Invoice number Period of performance covered by invoice Description of services described Current period costs, including cost sharing Cumulative project costs, including cost sharing, as compared to the project budget Subrecipient contact person Certification on each invoice as to the truth and accuracy of the invoice Once the invoice is reviewed by the business office representative, s/he must sign the invoice and forward an electronic copy attached to Accounts Payable via the Subaward Payment Form template.

Department Checklist To aid departments in reviewing invoices, we have created an optional checklist that can be accessed by going to the Toolkit at:

SLIDE 11 Department Business Office and Principal Investigator Roles (cont.) Invoice Submission to Accounts Payable: In an effort to simplify payments and have invoices pass validation, an template has been created to ensure accuracy and standardization. The new form must accompany all invoices when submitted to A/P This template holds all the required information needed for A/P to enter invoices into their system and to greatly reduce the validation failure rate After subcontract invoices are reviewed and approved, do the following: Scan the invoice Open the Subaward Payment Form template which can be found at {FILL IN} and fill in the required information Attach the approved invoice to the and send it directly to A/P at: Maintain the original in your records

Template

Wired Payments to International Subrecipients When wiring payments to international subrecipients, the invoice must be accompanied by Wire Transfer and IRS W-8 BEN forms Wire Transfer forms can be accessed at: - Accounts Payable IRS W-8 BEN information can be found at: Melissa Wheaton in A/P is the contact person for International wire transfers.

SLIDE 14 Accounts Payable’s role in Validations, Payments and Invoicing Holds Receipt of Invoices in Accounts Payable Invoices received at Invoices are forwarded to the Data Entry service the same day of receipt The Data Entry service scans the invoices and enters a zero dollar amount for each invoice Invoices are available to view by Yale A/P staff within 2-3 business days at which point A/P enters all the information from the Subaward Payment Form template into the A/P system

SLIDE 15 Accounts Payable’s Role in Validations, Payments and Invoicing Holds (cont.) Accounts Payable Validation Process A/P’s system will validate each invoice based on the following criteria: Valid Charging instructions: PTAEO Valid Sub K number Signature of Principal Investigator (PI) Signature of Authorizer Service Dates

Subcontract Management System (SMS) Validations Apart from standard A/P validations, subcontract invoices are also validated against various segments of the (SMS) system. The validations are against the following : The Subcontract number The Vendor name The Vendor site code The effective dates of the subcontract The Subcontract status Subcontract funding limit

Questions and Answers