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Session 9 – Payroll Cycle, Cash, Petty Cash, Technology Transfer
Columbia University Medical CenterTraining Certification Program For Senior Financial Administrators - Session 8
Session 8: Payroll Cycle, Cash, Technology Transfer and Other
Part 1: Personnel Management: The HR/Payroll Process
Part 2: Cash Management
Part 3: Petty Cash
Part 4: Technology Transfer
Session 8 – Payroll Cycle, Cash, Petty Cash, Technology Transfer
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 3
Agenda
Introduction 10 Mins
Goals and Objectives 5 Mins
Part 1: Personnel Management: The HR/Payroll Process 60 Mins
BREAK 15 Mins
Part 2: Cash 60 Mins
Part 3: Petty Cash 30 Mins
BREAK 15 Mins
Part 4: Technology Transfer 45 Mins
TOTAL 240 Mins
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 4
SESSION OBJECTIVES– Provide an overview of the payroll process and related compliance issues
– To understand the monitoring and safeguarding of cash
– Provide an understanding of petty cash
– To enable participants to understand the medical science technology transfer cycle
Part I Personnel Management: The HR/Payroll Process
Session 8 – Payroll, Cash, Petty Cash, Technology Transfer
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 6
Personnel Management:HR/Payroll Cycle
• Employee compensation represents the University’s largest category of expense
– Salary and Benefit expenses represent 70% of the total operating budget for the University
• Employment related matters are an area of high risk to the University
• Employees are our biggest asset. – As an integral part of our vibrant, world-class academic community and we
have a duty to provide them with the information they need to effectively manage their employment relationship with the University
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 7
Personnel Management:HR/Payroll Cycle
University Goals:
• Recruit, hire and retain a qualified and diverse workforce
• Pay employees accurately and on a timely basis
• Calculate and withhold appropriate taxes, benefit related deductions and misc. voluntary deductions
• Ensure that each employee’s salary expense is appropriately charged to the correct account and for the appropriate percent of effort
• Ensure compliance with regulatory requirements including accurate and timely processing of all W2s and 1042s
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 8
HR/Payroll CycleHow are these goals accomplished?
People @ Columbia (PAC):
An On-line system for managing Human Resources
Labor Distribution System (LDS)
Department (DAF)
Human Resources
CUMC Payroll Office
Controller
Faculty Affairs
Affirmative Action Committee
…With coordination between various Departmentsand an integration of University Systems
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 9
HR/Payroll Cycle - Recent Improvements…In October 2004, the People @ Columbia (PAC) system replaced the legacy personnel, benefits, and payroll systems with an integrated Web-based package from PeopleSoft.
PISHR – Personnel
BISHR - Benefits
GEACPayroll LDS
People @ ColumbiaPAC
LDS
People @ Columbia (PAC):
- Expands staff and managers’ access to data,
- Improves the University’s hiring process, and
- Ensures that we achieve up-to-date compliancy with government rules and regulations.
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 10
HR/Payroll CycleWhat’s PAC vs LDS?
People @ Columbia (PAC) Labor Distribution System (LDS)
Function
* Calculates employees’ gross payroll based on hours, salary and additional information
* Deducts taxes, benefits and general deductions to calculate employees’ net payroll
* Distributes employees’ gross payroll across specified accounts
* Calculates fringe expenses and charges appropriate accounts
* Calculates encumbrances
Data
* Regular and Overtime Hours
* Salary Information
* Additional Compensation Amounts
* Accounts/Sub-codes
* Payroll Expense Distribution
Reports
* Department Payroll Register
* Department Earnings Register
* PAF/Nomination and Action Form
* Payroll Account Distribution (PAD) summary and detail reports
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 11
HR/Payroll CyclePeople@Columbia (PAC): Benefits to University
Streamline execution of Human Resource-related
transactions and maximize the organization’s focus on
human capital management
Provide real time access to human capital, benefit, and
compensation related data
Reduce data redundancy, integrity and synchronization
issues
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 12
DEVELOPBUSINESS PLAN
ADVERTISE /POST
PREPAREAPPOINTMENT
PACKAGE
AFFIRMATIVEACTION
AFFILIATEINSTITUTION
APPOINTMENT
CUMCHR / FACULTY
AFFAIRS
CUMCPAYROLLOFFICE
HRPROCESSING
CENTER
CONTROLLERPAYROLL
Faculty and AdministrationHiring Workflow
PAYCHECKIDENTIFY NEEDFOR NEW EMPLOYEE
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 13
Employee Types
Monthly– Officers of Administration, Faculty and Research
– Student Officer Stipends (TA’s, GRA’s)
– Post Doc / Fellow stipends
Bi-Weekly– SSA – Medical Center
– 1199 – Harlem Hospital
– 1199 & 2110 Morningside
– Work-Study
– Casual
Weekly– Facilities – TWU & 1199
– Housing – 32BJ
– Security – TWU & 1199
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 14
Nomination Form Used for faculty, student and research officer appointments
PAF Personnel Action Form (HR base-line information)
Time Entry Electronic form used to pay casual employees and to adjust weekly and biweekly pay
SAF Salary Accounting Form (departmental instructions that sets % of salary effort charged to FAS accounts)
Add Comp Extra pay for certain employees
LDS Labor Distribution System (separate from Peoplesoft distributes salary costs to appropriate accounts)
PAD Payroll Accounting Distribution (Reports, by account, summary and detail information for all employee payments)
Common Payroll Terms
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 15
HR/Payroll CycleHiring Process
Comply with University Policies
Administrative Hiring
– Requires posting for 5 days
– Human Resources approves selected candidate before an offer is made
– Administrative Level 106 + positions require extensive outreach and EO / Affirmative Action Office approval
References and Employment Verification
– All outside inquiries for information regarding past and present employees of the University are to be referred to Human Resources in order to assure confidentiality and accuracy of information
– Employment verification for administrative and support staff are to be referred to HRIS (854-2888)
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 16
HR/Payroll CycleProcessing a New Employee
Documents Sent to HR / Faculty Affairs
• PAF (Personnel Action Form)– Salary (within range of Grade)
– Appropriate DAF signature
• Nomination Form (Faculty & Research titles)
• SAF (Salary Accounting Form)
• I-9 to determine eligibility to work
• W-4 (tax withholding form) + other tax forms
• Direct Deposit information
• Other University and departmental specific documentation
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 17
HR/Payroll CycleProcessing a New Employee
Approvals and Responsibilities
Departmental / School DAF– Verifies availability of funding, completion of paperwork and accuracy of accounting
Affirmative Action Review Committee– Reviews academic appointments on the CUMC campus for compliance with affirmative action
policies and procedures
Human Resources and Faculty Affairs– Approval regarding hiring process, grading and compensation level of support staff and
administrative appointments
– Faculty Appointment approval
CUMC Payroll Office – Review and verification between Human Resources Processing Center and CUMC
Human Resources Processing Center (HPRC)– HRPC integrates HR and Payroll Functions
– Data Entry of pertinent employee information
– Help Desk
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 18
HR/Payroll CycleProcessing a New Employee
Approvals and Responsibilities (Continued)
Controller– Deducts applicable withholding taxes and benefit contributions
– Direct deposit (if applicable)
– Online pay-stub (www.my.columbia.edu)
– Labor Distribution System allocates payroll charges to departmental accounts, based on the Salary Action Form (SAF)
– Effort Reporting• Federal requirement regarding (i.e. instruction, administration, clinical, etc.)
• 90 day rule for cost transfers
• Quarterly reports
• Annual certification process
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 19
HR/Payroll CycleProcessing a New EmployeeThe I – 9 Form: Authorization to work
• Employers are required to establish within three business days of beginning employment that an employee is eligible to be paid. If not, the employee may not continue performing duties or services.
• Departments should have at least one employee trained to conduct I-9 verifications, including authentication and copying of documents.
• The I-9 procedure must never be conducted before an offer of employment has been made to a candidate and the candidate has accepted the offer.
Refer to the “I-9 Employment Eligibility & Verification Policy and Procedure Manual” http://www.hr.columbia.edu/hr/html-files/cu_i-9_policy.html
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 20
HR/Payroll CycleProcessing a New EmployeeNonimmigrant Status - Compliance with Federal regulations
• Employee must report to International Affairs Office upon arrival in U.S.
• Common visa types include:
• F - 1 Student (employment restricted)
• J - 1 Research Scholars / Professor
• H - 1 Professional Workers
• O - 1 Individuals of Extraordinary Ability
• Duration of visas are typically 3 years or more
• Tax treaties commonly found
• Always consult the International Affairs Office (5-5455)
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 21
HR/Payroll CycleNew Employees - What Else is Required?
New employee checklist
• Attend Welcome Program for new faculty and staff
• Identification Cards
• Discuss position description, compensation, hours, vacation
• Provide systems access, signature authority
• Schedule medical surveillance appointment, if required
• Schedule training for environmental health and safety, HIPAA compliance, billing compliance, radiation safety, as necessary
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 22
HR/Payroll CycleFaculty AppointmentsInstructional and Research faculty
• Myriad of titles, variety of tracks
• Review credentials, verify licenses
• Multiple positions – one is the “administrative department”
• Affirmative action process for all full-time hires
• Tenure track requirements and deadlines
• Term appointments
• Separation policies, notice of non-renewals
• Always consult the Faculty Handbook and with the Faculty Affairs Office (Carolyn Merten)
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 23
HR/Payroll CycleFringe Rates
Fringe rates vary by type of employee and funding source
• Percent of payroll cost relating to University provision for Social Security, Medicare, benefits, insurance, etc.
• 2004-05 Rates:• Regular 30.50 %
• Sponsored Funding 26.40 %
• Columbia Students 0.00 % (must be registered full-time)
• Barnard / TC Students 8.15 % (must be registered full-time)
• Clinical A-1 16.45 %
• Clinical A-2 1.45 %
• Charged on all full and part-time employees, including casuals
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 24
HR/Payroll CycleClinical Faculty SalariesThree-tiered salaries reflect different fringe charges
Base Minimums are rank specific
Fully fringed at high rate
Salary on which University benefits are determined
A – 1 15% pension contribution
Fringe benefits at 16.45%
Sum of Base and A 1 cannot exceed IRS pension level of $210,000
A – 2 No pension contribution
Fringe benefits at 1.45%
A 1 and A 2 must be paid from faculty practice funds
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 25
HR/Payroll CycleClinical Faculty Salary Example
Associate Professor with a total annual compensation of $240,000
Salary Fringe
Base Salary $ 69,010 30.5%
A-1 Salary $140,990 16.45%
A-2 Salary $ 30,000 1.45%
Total $240,000
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 26
HR/Payroll CycleAdditional Compensation / Bonuses
Add Comp guidelines
• Used for special one-time payment and practice distributions
• Typically processed via electronic SAF (WebSAF)
• Require EVP Office review of all requests
• Officers of administration and support staff are eligible for bonuses in accordance with the CUMC Bonus guidelines or relevant collective bargaining agreement
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 27
HR/Payroll CycleTime and Attendance
Required of all support staff and administrative officers
• Required by the Federal Fair Labor Standards Act (FLSA) and the Family Medical Leave Act (FMLA)
• Actual time worked for Support Staff. Overtime must be pre-approved and is paid after working 35 hours per week Days off for administrative and research Officers must be recorded; policy for instructional faculty is under development
• Records must be kept six years
• Departments required to annually submit value of accrued vacation and personal days entitlements for inclusion in the University’s financial statements
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 28
HR/Payroll CycleCompliance and Payroll Policies
No shows, overpayments, unauthorized overtime
– Departments need internal checks to guard against these situations
– Check pay register, roster and FAS PAD’s.
– After 30 days unclaimed checks are returned to the CUMC Payroll Office
Annual Increases
– Campus-wide min / max guidelines
– Department / School make recommendations / DAF signature
– Exceptions reviewed by EVP Salary Committee
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 29
HR/Payroll CycleDepartures --- What to do
Terminations
• To ensure that all employees are not subjected to arbitrary or discriminatory practices, all matters involving layoff, release or discharge must be discussed with Human Resources / Faculty Affairs
• Goal of supervisor to reduce legal risks, retain employee’s dignity, protect University’s reputation, minimize disruption:
– Counseling e.g. benefits (COBRA), outplacement, exit interview
– University Property e.g. keys, Identification, laptops, cell phones, etc.
– Notification
• Payroll (Call CUMC Payroll Office to stop check, 5-2258)
• Change/Delete Passwords (AIS, Voicemail, PC)
• Security
• Remove Signature Authority (Controller’s Office)
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 30
HR/Payroll CycleDepartmental ResponsibilitiesDepartmental Responsibilities – Control, Review, Verify and Reconcile
– Review employee check registers before pay date to verify pay and employee status (report discrepancies immediately to Lenny Ruiz [email protected] )
– Review PAD detail and summary reports monthly and reconcile to FAS Statements (report discrepancies to John Howard [email protected] )
– Maintain proper control over Paper Time Entry Cards• Cross out unused portions so it cannot be altered after approval
– Review Payroll Suspense Report every month and clear transactions (contact John Howard or Pat Martel [email protected] for assistance)
– Track Casual Employee Hours to ensure compliance with University and Government Regulations
– ALWAYS review your own pay statement every month and instruct your staff to do the same!
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 31
HR/Payroll CyclePayroll Suspense
Preventing payroll suspense
• Although employee is paid, the Controller may be unable to distribute the salary charges to FAS account(s). These orphaned expenses are temporarily held in a departmental payroll suspense account.
• Common Reasons• SAF instructions not submitted, updated or approved
• Check issued before or after SAF begin or end date
• Account number missing or use of incorrect sub-code
• FAS account not valid, frozen, or deleted (particularly grants)
• The period on the SAF does not cover the dates automatically generated by the system for payment
• Underutilization of electronic processing causes a backlog in payroll accounting
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 32
HR/Payroll CyclePayroll SuspensePayroll suspense --- why is it important?
• Suspense overstates availability of sponsored project budget revenue
• Suspense overstates COB departmental revenues and central Ledger 2 expenses
• The recording of project or contract salaries as suspense delays billings to funding agencies
• May result in non-compliance with 90 day transfer rule
• Can result in a reduction of F & A recovery
Departments must clear suspense in a timely manner by providing the Controller with updated information
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 33
HR/Payroll CycleCasual Employees
Casual employees --- the 560 hour rule
• Limited to short-term employment (no more than 560 hours in a rolling 12 month period, anywhere in the University). After 560 hours, the employee must be hired as a temporary or regular employee, or be terminated.
• Temporary agency assistance also subject to the 560 hour limitation
• Departments must monitor number of hours and make plans to hire the employee if 560 hours are exceeded
• Not to be used as a temporary payroll for employees awaiting Affirmative Action or Hiring Committee approvals
• Must conform with normal hiring practices, including posting
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 34
HR/Payroll CycleCasual Employees
Considerations when employing casual employees (continued)
• Employee may be subject to collective bargaining agreements if employed over 4 months and on average more than 20 hours per week. Non-compliance can result in penalties.
• Generally, a casual employee's salary should be no less than the minimum pay grade for that position
• Fringe costs charged on salary
• Paid via time entry, every two weeks
• Student Officers and individuals who will be appointed as faculty or officers of research are not eligible for casual payroll
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 35
HR/Payroll CycleFor Additional Info• People@Columbia
• My.columbia.edu
• Faculty Affairs – 305-5390
• HR Process Center / Help Desk – 851-2888
• CUMC Payroll Office - 305-2258
• CUMC Human Resources – 305-3819 www.columbia.edu/hs/hr/index
Session 8 – Payroll, Cash, Petty Cash, Technology Transfer
BREAK
Part 2 Cash Management
Session 8 – Payroll, Cash, Petty Cash, Technology Transfer
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 38
CASHUniversity Policy
• Columbia University departments that are responsible for cash transactions must have both the awareness of and show a commitment to strong internal controls over the cash handling process
• A system of strong internal controls for cash collections is necessary to prevent mishandling of funds and to safeguard loss
• Strong internal controls are designed to protect employees from inappropriate questions by defining responsibilities in the cash handling process
• Cash handling operations are subject to daily supervisory review and surprise audits
• The duties of collecting cash, maintaining documentation, preparing deposits, and reconciling records should be segregated among different employees
Session 9 – Payroll Cycle, Cash, Petty Cash, Technology Transfer
Department of Anesthesiology
Cash ManagementFinancial Reporting Training Session
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 40
CASH MANAGEMENTAnesthesiology Practice
Daily Oversight of Practice
• Review daily log from each practice and operating rooms
• Match IDX generated encounter forms to daily logs
• Office cash payments– Seek to limit office cash to co-pays --- have self-pay patients pay via credit
card or check
– Ensure use of numbered receipt books
– Deposit cash daily into bank account; use drop slot safe for off hour activity
– Enter transactions into IDX system
• Enter encounter information into IDX billing system– IDX system produces and mails bills
– All payments are directed to a bank lockbox
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 41
CASH MANAGEMENTAnesthesiology Practice
Daily practice office log
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 42
CASH MANAGEMENTAnesthesiology Practice
Numbered patient receipts
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 43
CASH MANAGEMENT Anesthesiology Practice
IDX patient encounter form
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 44
CASH MANAGEMENT Anesthesiology Practice
Daily Oversight of Central Lockbox
• Monitor daily bank activity via web link
• Record lockbox activity and electronic fund transfers in IDX
• Monitor average daily cash collections, keeping in mind the number of banking days in a month and the number of Mondays
• Project monthly revenue based on daily averages, recent trends, and number of banking days
• Request CUMC Business Office to deposit bank funds into University FAS accounts via electronic fund transfers
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 45
CASH MANAGEMENT Anesthesiology Practice
Frequently review performance to detect and isolate problems
• “Be into details, do spot checks, make your presence known”
• Review month to date transaction summaries
• Compare averages, historical patterns, and changes in business volume (number of “units”)
– Better collections ?
– Increased fees ?
– Change in value of units ?
• Revenue activity by payor
• Check FAS General Ledger fund balances for departmental overdraft problems
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 46
CASH MANAGEMENT Anesthesiology Practice
Daily log of lockbox and other deposits
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 47
CASH MANAGEMENT Anesthesiology Practice
IDX month to date transaction summary
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 48
CASH MANAGEMENT Anesthesiology Practice
Monthly payment comparison by payor
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 49
CASH MANAGEMENT Anesthesiology Practice
Daily Reconciliation
• Required by University
• Harmonize– IDX billing / collection system results
– Bank account
– FAS
• Use reconciliation tools provided by University
• Complete end of month summary reconciliation and forward to the Office of Financial Services
IDX Bank
FAS
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 50
CASH MANAGEMENT Anesthesiology Practice
Monthly bank to IDX reconciliation
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 51
CASH MANAGEMENT Anesthesiology Practice
Monthly bank to FAS reconciliation
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 52
CASH MANAGEMENT Anesthesiology Practice
IDX gross monthly deposits
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 53
CASH MANAGEMENT Anesthesiology Practice
Seven year history of IDX gross revenues
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 54
CASH MANAGEMENT Anesthesiology Practice
FAS General Ledger fund balance report
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 55
CASHOther Topics
Foreign Checks
• Recommended that departments NOT accept foreign checks. If foreign checks are accepted, each check must exceed $150 US
• These checks are to be segregated and sent directly to the Office of the Treasurer for collection, along with a foreign check log (found on the Treasurer’s web page)
Session 9 – Payroll Cycle, Cash, Petty Cash, Technology Transfer
Part 3 Petty Cash
Session 8 – Payroll, Cash, Petty Cash, Technology Transfer
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 57
PETTY CASHPolicy Statement
• The purpose of a petty cash fund is to allow for the reimbursement of minor business expenses where it is impractical to be billed or to have a check issued beforehand
• Petty Cash funds may only be used for the following:• Payments to human subjects engaged in research activities• Necessary and reasonable small business transactions, not to exceed $75• Emergency purchases of office supplies costing $75 or less• Food (such as sandwiches and beverages) brought into the office for a
business meeting, when the maximum total expense is less than $75, and when expenses of $25 or more are accompanied by original receipt
• Local carfare, parking, and tolls (all airfare, train tickets, and car rentals are to be submitted through travel and expense reports)
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 58
PETTY CASH Establishment and Use
• Each department may establish a Petty Cash fund up to $500. Special circumstances that require larger funds must be approved by the Associate Controller for General Accounting.
• Department must demonstrate a true business need
• Department heads sends a letter of justification and a check request to the Office of the Controller, General Accounting. Request to include custodian’s name, the FAS account number, fund size, etc.
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 59
PETTY CASH Closing the Fund or Changing the Custodian
• A fund must be immediately closed if the purpose for which it was established ends or changes significantly
• Deposit any remaining cash via a “Cash Receipt Voucher” into a FAS account. Send a memo along with the validated cash receipt voucher and any petty cash receipts to General Accounting
• Upon completion of the custodian’s employment, the fund must either be closed or a new custodian appointed
– The current custodian must:• Reconcile the Petty Cash fund
• The new custodian and the department head must sign the reconciliation form
• Transfer the fund to its new custodian
• Department head notifies the Office of the Controller, General Accounting or the change
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 60
PETTY CASH Requesting Reimbursement• Submit a completed Petty Cash Voucher which includes:
• Date of purchase
• Signature of the person receiving payment
• Original receipt
• Description of item purchased, including valid business reason• For business meals, document the purpose of the meeting and list those in
attendance
• For transportation, include origin, destination, and business purpose
• Account number to charge the expense
• Signature of the custodian who approved the reimbursement
• Under NO circumstance may an individual, including the custodian, approve his or her own Petty Cash voucher or that of a person to whom they report
• It is the custodian’s responsibility to ensure that each voucher is complete, accurate, and accompanied by original documentation
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 61
PETTY CASH Replenishing a Petty Cash Fund
• When the fund is low, replenishment should be made via AP / CAR
• AP / CAR requests are made electronically, by completing a Check Request– The Check Request is approved and signed by the DAF and forward to
Accounts Payable
– All physical receipts should be mailed to Accounts Payable
• Replenishments may be cashed at the Bursar or at Chase Bank
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 62
PETTY CASH Reconciliation• The custodian must reconcile the fund on a regular basis, weekly if the fund is
active
• Reconciliation ensures the sum of the outstanding reimbursements, cash, and vouchers is equal to the original amount of the fund
• For departments with multiple funds, an overall department reconciliation should be performed quarterly
• The Office of the Controller and Internal Audit may perform spot check counts
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 63
PETTY CASH Security
• It is the custodian’s responsibility to provide adequate precautions for the safekeeping of the funds
• All Petty Cash must be stored in a secured device, such as a safe or cash box in a locked cabinet
• Only the custodian and the department head should have keys
• DO NOT:• Commingle funds• Place University $ in your own personal bank accounts• Distribute Petty Cash amongst other individuals (each fund should be
maintained in ONE location)• Fail to reconcile on a timely basis• Take University funds to one’s home for safekeeping
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 64
PETTY CASH Human Subjects
• A unique Petty Cash fund is established for each research project
• The fund base amount is determined by the projected subject volume, reimbursement level and time lag for fund replenishment
• The study coordinator distributes the cash to the subject and prepares a pre-numbered three copy receipt with the following information:
• Date, protocol name or #, FAS account number
• Indication if disbursement if for “subject reimbursement” or “subject compensation”
• Amount paid
• Signature of study coordinator
• Signature of study subject (under HIPPA guidelines this information is considered confidential and is not included on the copy of the receipt submitted to Accounts Payable)
• Replenishment can be made at either the Bursar or via AP / CAR
Session 9 – Payroll Cycle, Cash, Petty Cash, Technology TransferSession 8 – Payroll, Cash, Petty Cash, Technology Transfer
BREAK
Session 9 – Payroll Cycle, Cash, Petty Cash, Technology Transfer
Part 4 Technology Transfer
Session 8 – Payroll, Cash, Petty Cash, Technology Transfer
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 67
TECHNOLOGY TRANSFER
Technology Transfer: Inventions, Sponsored Research, and more
Ofra Weinberger, Ph.D. [email protected]
Director, Health SciencesScience & Technology Ventures (STV)
www.stv.columbia.eduFebruary 2005
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 68
TECHNOLOGY TRANSFER
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 69
TECHNOLOGY TRANSFERSTV has a dual mission
– Science & Technology Ventures (STV) Mission Statement
• Transfer inventions and innovative knowledge from Columbia to outside organizations for the benefit of society on a local and global basis
• Whenever appropriate, this is to be executed at competitive rates so discretionary funds are brought into the University to improve educational and research activities and capabilities
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 70
TECHNOLOGY TRANSFERTechnology Transfer and Grants
– Bayh-Dole Act of 1980 enables universities to retain right, title and interest in inventions made under government sponsorship
– Compliance --- to retain legal right to Federally sponsored inventions, Columbia must:
• Disclose the existence of inventions
• Seek patent protection for inventions
• Diligent commercialization
• Annual reports on commercialization efforts
• Exclusive licensee must manufacture substantially in U.S.
• Preference for small businesses as licensee
• Share revenue with inventors
• Net revenue used for educational and research mission
– In all cases, the government retains rights to take back inventions not brought to commercialization after several years
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 71
TECHNOLOGY TRANSFERUniversity Policy for Faculty Inventors
– Assign to Columbia all rights, title, and interest to their inventions (Faculty Handbook)
– Partner fully with Columbia (STV) in the preparation and prosecution of patents related to these inventions
– In return, Columbia (STV) commits resources to patent, market and license those inventions. In addition to licenses, sponsored research collaborations may result.
– Columbia (STV) shares net income from licensing with inventors, their labs and departments
– Regulations relating to conflicts of interest and consulting arrangements
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 72
TECHNOLOGY TRANSFERWhat do we do?
– Work with faculty members to identify and patent new inventions
– Service to the faculty; Material Transfer Agreements, Confidentiality Agreements, Consulting agreements
– Support for Research Administration; IP and commercialization plans in grants
– Utilize all possible models for interaction with industry:• Sponsored research: Facilitate research collaborations and strategic relationships
with industry
• License inventions and technology developed in University laboratories
• Big pharma, biotech, start-ups
– Provide support to licensees and start-ups: Audubon Biotechnology Center
– Compliance with government regulations, reporting
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TECHNOLOGY TRANSFERThe Commercialization Process
– Average time: 1 year
– Assess Invention Report
– Work with patent counsel: patent prosecution
– Prepare non-confidential information for marketing
– Develop a commercialization strategy; Market invention to prospective licensees
– Negotiate Research / Option / License Agreements
– Work with Columbia counsel to prepare Agreements
– Facilitate “transfer” of invention to licensee
– Monitor license agreement, patent maintenance, distribution of net income in accordance with Columbia Policy
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TECHNOLOGY TRANSFERBenefits of Patenting Inventions
– University Policy on Distributions of Licensing Revenue*
$1 - $125,000 Over $125,000
– Patent Expenses 20 % 20 %
– Inventor(s) 40 % 20 %
– Inventor’s Research 20 % 20 %
– University 20 % 26 %
– Department 0 % 7 %
– School 0 % 7 %
* http://www.stv.columbia.edu/guide/policies/app_I.html
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EXECUTIVE DIRECTOR STV/ CIEMICHAEL CLEARE
SENIOR EXECUTIVE VICE PRESIDENT
ROBERT KASDINEXECUTIVEDIRECTOR
FINANCE/ADMINPATRICIA HUIE
SR. DIRECTOR STV/CIESCOT HAMILTON
NEW VENTURES
MATT McCOOE
MORNINGSIDE/ LAMONT
CAMPUSESFRANK CARRIGAN
HEALTH SCIENCESOFRA WEINBERGER
AGREEMENTSAmy Hamilton
PATENTS(EXTERNALCOUNSEL)
STRATEGY +SPECIAL PROJECTS
TONY MAURIELLO
SHARON ROSS
BETH KAUDERER
SARA GUSIK
VICKY MALIA
DONNA ROUNDS
DONNA SEE
Asst. Director TBH
KIM HUNTER-SCHAEDLE
SUPPORT STAFFAMILDA AGOSTO
JERRY KOKOSHKA
OFFICE MANAGER/EX.ASST
PAT KNIGHT-WILLIAMS
CAT - INFORMATIONMANAGEMENT
VINCENT TOMASELLI
STV PARTNERSHIPSTIM CORLESS
ISMAILA FALLIT MANAGER
ADMINISTRATION JOAN MCKOYVERONICA AREIZAGA
ECONOMIC DEVELOPMENT
JEFF BRANCATO
GEORGE KLOAK
ROB SCHLEELEINADMIN/TECHTRACS
AMY HABER
MAY TUN DATA BASE
COORDINATOR
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 76
TECHNOLOGY TRANSFER
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 77
TECHNOLOGY TRANSFERSTV Discovery and Commercialization in FY04
240 Inventions Reported
9 Start-up/Small Companies Formed
60 Licenses Executed
130 New US Patents Filed$10 MM/yr Investment (legal costs)
$610MM in Research Expenditure
$109 MM of Income GeneratedMarketMarket
License toStart-ups
License to Existing Companies
STV Decides to FileA Patent
Faculty Member or Graduate
Student Has a New Invention
Research Expenditure- Federal, State, Industry, and University
6 Start-ups Funded
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 78
TECHNOLOGY TRANSFERSome of the Products from Columbia Technologies
– TPA - Degrading blood clots
– EPO - Stimulation of red blood cell production
– Herceptin - Breast cancer
– Factor VIII/IX - Clotting factors for hemophiliacs
– Pulmozyme - Cystic fibrosis
– Xalatan - Glaucoma
– DVD’s - Digital compression(MPEG 2)
– LCD Screens - Sequential Laser Solidification
– LED’s - White/blue light emission
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TECHNOLOGY TRANSFERFY 2003 Financial Results
– Total fiscal year revenues were in excess of $193 million. For the 5th year in a row, this was the highest total technology licensing revenue of any US research university
– Research revenue from corporate partners exceeded $12.8 million
– Since 1982, total revenues have exceeded $1.3 Billion
– Volume of MTAs being processed is >700 / year
– 300 active agreements (license and research); 500 patents under management
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TECHNOLOGY TRANSFERRecent Technology Transfer and Grant Initiatives
– New NIH policies re grants for model organisms; informatics; genomic information; large grants.
• Sharing/distribution plans required
• Implications for commercialization
• Compliance!
– Foundation Grants• Many require a share of downstream revenues from commercialization, but terms
are often negotiable!
• Compliance!
– NYSTAR and commercial activity
– SBIRs and subcontract research agreements
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TECHNOLOGY TRANSFERSummary
– Cooperative efforts between STV, central and research administration, and the faculty are key to successful commercialization of technology.
– When in doubt, please contact STV
– For more information on faculty roles and responsibilities in the technology transfer process, please visit the “Guide for Inventors” section of our website at www.stv.columbia.edu
June 2005Session 8 - Payroll, Cash, Petty Cash, Technology Transfer Page 82
TECHNOLOGY TRANSFERCharles Darwin
– “It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.”
Session 9 – Payroll Cycle, Cash, Petty Cash, Technology Transfer
COURSE EVALUATION
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Session 8
Session 8 – Payroll, Cash, Petty Cash, Technology Transfer