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Columbia University Medical Center

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1 Columbia University Medical Center
Training Certification Program For Senior Financial Administrators - Session 8

2 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

3 Agenda Introduction Mins Goals and Objectives 5 Mins
Part 1: Personnel Management: The HR/Payroll Process 60 Mins BREAK 15 Mins Part 2: Cash Part 3: Petty Cash 30 Mins Part 4: Technology Transfer 45 Mins TOTAL 240 Mins Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

5 Personnel Management: The HR/Payroll Process
Part I Personnel Management: The HR/Payroll Process Session 8 – Payroll, Cash, Petty Cash, Technology Transfer

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

8 Labor Distribution System (LDS)
HR/Payroll Cycle How are these goals accomplished? Columbia (PAC): An On-line system for managing Human Resources Labor Distribution System (LDS) Controller Affirmative Action Committee CUMC Payroll Office Human Resources Department (DAF) Faculty Affairs …With coordination between various Departments and an integration of University Systems Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

9 HR/Payroll Cycle - Recent Improvements…
In October 2004, the Columbia (PAC) system replaced the legacy personnel, benefits, and payroll systems with an integrated Web- based package from PeopleSoft. PIS HR – Personnel BIS HR - Benefits GEAC Payroll LDS 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. Columbia PAC LDS Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

10 HR/Payroll Cycle What’s PAC vs LDS?
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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

11 HR/Payroll Cycle People@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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

12 Faculty and Administration Hiring Workflow
CUMC HR / FACULTY AFFAIRS AFFILIATE INSTITUTION APPOINTMENT CUMC PAYROLL OFFICE PREPARE APPOINTMENT PACKAGE AFFIRMATIVE ACTION HR PROCESSING CENTER ADVERTISE / POST CONTROLLERPAYROLL DEVELOP BUSINESS PLAN PAYCHECK IDENTIFY NEED FOR NEW EMPLOYEE Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

13 Employee Types Monthly Bi-Weekly Weekly
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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

14 Common Payroll Terms 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) Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

15 HR/Payroll Cycle Hiring Process
Comply with University Policies Administrative Hiring Requires posting for 5 days Human Resources approves selected candidate before an offer is made Administrative Level 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 ( ) Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

16 HR/Payroll Cycle Processing 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

17 HR/Payroll Cycle Processing 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

18 HR/Payroll Cycle Processing 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

19 HR/Payroll Cycle Processing a New Employee
The 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” Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

20 HR/Payroll Cycle Processing a New Employee
Nonimmigrant 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 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) Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

21 HR/Payroll Cycle New 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

22 HR/Payroll Cycle Faculty Appointments
Instructional 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) Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

23 HR/Payroll Cycle Fringe 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. Rates: Regular % Sponsored Funding % Columbia Students % (must be registered full-time) Barnard / TC Students % (must be registered full-time) Clinical A % Clinical A % Charged on all full and part-time employees, including casuals Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

24 HR/Payroll Cycle Clinical Faculty Salaries
Three-tiered salaries reflect different fringe charges Base Minimums are rank specific Fully fringed at high rate Salary on which University benefits are determined A – % 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

25 HR/Payroll Cycle Clinical Faculty Salary Example
Associate Professor with a total annual compensation of $240,000 Salary Fringe Base Salary $ 69, % A-1 Salary $140, % A-2 Salary $ 30, % Total $240,000 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

26 HR/Payroll Cycle Additional 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

27 HR/Payroll Cycle Time 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

28 HR/Payroll Cycle Compliance 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

29 HR/Payroll Cycle Departures --- 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, ) Change/Delete Passwords (AIS, Voic , PC) Security Remove Signature Authority (Controller’s Office) Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

30 HR/Payroll Cycle Departmental Responsibilities
Departmental 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 ) Review PAD detail and summary reports monthly and reconcile to FAS Statements (report discrepancies to John Howard ) 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 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! Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

31 HR/Payroll Cycle Payroll 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

32 HR/Payroll Cycle Payroll Suspense
Payroll 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

33 HR/Payroll Cycle Casual 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

34 HR/Payroll Cycle Casual 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

35 HR/Payroll Cycle For Additional Info
My.columbia.edu Faculty Affairs – HR Process Center / Help Desk – CUMC Payroll Office CUMC Human Resources – Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

36 BREAK Session 8 – Payroll, Cash, Petty Cash, Technology Transfer

37 Part 2 Cash Management Session 8 – Payroll, Cash, Petty Cash, Technology Transfer

38 CASH University 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 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

39 Department of Anesthesiology Cash Management
Financial Reporting Training Session

40 CASH MANAGEMENT Anesthesiology 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

41 CASH MANAGEMENT Anesthesiology Practice
Daily practice office log Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

42 CASH MANAGEMENT Anesthesiology Practice
Numbered patient receipts Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

43 CASH MANAGEMENT Anesthesiology Practice
IDX patient encounter form Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

46 CASH MANAGEMENT Anesthesiology Practice
Daily log of lockbox and other deposits Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

47 CASH MANAGEMENT Anesthesiology Practice
IDX month to date transaction summary Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

48 CASH MANAGEMENT Anesthesiology Practice
Monthly payment comparison by payor Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

50 CASH MANAGEMENT Anesthesiology Practice
Monthly bank to IDX reconciliation Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

51 CASH MANAGEMENT Anesthesiology Practice
Monthly bank to FAS reconciliation Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

52 CASH MANAGEMENT Anesthesiology Practice
IDX gross monthly deposits Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

53 CASH MANAGEMENT Anesthesiology Practice
Seven year history of IDX gross revenues Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

54 CASH MANAGEMENT Anesthesiology Practice
FAS General Ledger fund balance report Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

55 CASH Other 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 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

56 Part 3 Petty Cash Session 8 – Payroll, Cash, Petty Cash, Technology Transfer

57 PETTY CASH Policy 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) Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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. Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

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 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

65 BREAK Session 8 – Payroll, Cash, Petty Cash, Technology Transfer

66 Part 4 Technology Transfer
Session 8 – Payroll, Cash, Petty Cash, Technology Transfer

67 Technology Transfer: Inventions, Sponsored Research, and more
Ofra Weinberger, Ph.D. Director, Health Sciences Science & Technology Ventures (STV) February 2005 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

68 TECHNOLOGY TRANSFER Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

69 TECHNOLOGY TRANSFER STV 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

70 TECHNOLOGY TRANSFER Technology 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

71 TECHNOLOGY TRANSFER University 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

72 TECHNOLOGY TRANSFER What 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

73 TECHNOLOGY TRANSFER The 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

74 TECHNOLOGY TRANSFER Benefits of Patenting Inventions
University Policy on Distributions of Licensing Revenue* $1 - $125,000 Over $125,000 Patent Expenses 20 % % Inventor(s) 40 % % Inventor’s Research 20 % % University 20 % % Department 0 % % School 0 % % * Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

75 SENIOR EXECUTIVE VICE PRESIDENT ECONOMIC DEVELOPMENT JEFF BRANCATO
ROBERT KASDIN CAT - INFORMATION MANAGEMENT VINCENT TOMASELLI EXECUTIVE DIRECTOR FINANCE/ADMIN PATRICIA HUIE EXECUTIVE DIRECTOR STV/ CIE MICHAEL CLEARE OFFICE MANAGER/ EX.ASST PAT KNIGHT-WILLIAMS MAY TUN DATA BASE COORDINATOR ISMAILA FALL IT MANAGER MORNINGSIDE/ LAMONT CAMPUSES FRANK CARRIGAN ECONOMIC DEVELOPMENT JEFF BRANCATO SR. DIRECTOR STV/CIE SCOT HAMILTON STV PARTNERSHIPS TIM CORLESS NEW VENTURES MATT McCOOE HEALTH SCIENCES OFRA WEINBERGER AGREEMENTS Amy Hamilton SARA GUSIK TONY MAURIELLO VICKY MALIA PATENTS (EXTERNAL COUNSEL) SHARON ROSS JERRY KOKOSHKA STRATEGY + SPECIAL PROJECTS BETH KAUDERER DONNA ROUNDS DONNA SEE GEORGE KLOAK Asst. Director TBH ADMINISTRATION JOAN MCKOY VERONICA AREIZAGA KIM HUNTER-SCHAEDLE ROB SCHLEELEIN ADMIN/TECHTRACS AMY HABER SUPPORT STAFF AMILDA AGOSTO Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

76 TECHNOLOGY TRANSFER Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

77 TECHNOLOGY TRANSFER STV Discovery and Commercialization in FY04
Research Expenditure- Federal, State, Industry, and University $610MM in Research Expenditure Faculty Member or Graduate Student Has a New Invention 240 Inventions Reported STV Decides to File A Patent 130 New US Patents Filed $10 MM/yr Investment (legal costs) License to Existing Companies License to Start-ups 60 Licenses Executed 9 Start-up/Small Companies Formed Market $109 MM of Income Generated 6 Start-ups Funded Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

78 TECHNOLOGY TRANSFER Some 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

79 TECHNOLOGY TRANSFER FY 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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

80 TECHNOLOGY TRANSFER Recent 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! NYSTAR and commercial activity SBIRs and subcontract research agreements Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

81 TECHNOLOGY TRANSFER Summary
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 Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

82 TECHNOLOGY TRANSFER Charles Darwin
“It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.” Session 8 - Payroll, Cash, Petty Cash, Technology Transfer June 2005

83 Please complete course evaluation form.
Session 8 Session 8 – Payroll, Cash, Petty Cash, Technology Transfer


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