Internal Service Provider Billing Standardization Project Update
The Internal Services Provider (ISP) Billing Standardization Project has resulted in significant changes to Policy 1410 and the creation of three supporting procedures to standardize ISP billing practices and comply with federal regulations. The new guidelines address the new annual registration process, the calculation of rates, and special ISP accounting requirements including the timing of JSA billing transactions.
The ISP Standards Committee is a new ISP oversight body. The ISP Standards Committee, lead by Andrew Rudczynski, Associate Vice President for Research Administration, and Cary Scapillato, Assistant Vice President and Controller, drafted the revised policy and the procedures.
In order to help ISPs with compliance challenges and standardization requirements, the ISP Standards Committee expects that ISP products, services and business practices be documented on an ISP Registration Form. ISP Clinics have been scheduled to help ISPs complete the Registration Form.
You might have an ISP if you have internal revenue from products, services or rental income, you have more than 10 internal customers, you have employees designated to produce products or provide services for other units, you have designated specific space for products or services for other units, you advertise your products or services to other units, you provide products or services to external customers (this does not include program income or faculty consulting unless it is invoiced by the department) or you have checked Intra-/inter-departmental billing for internal services on the Journal Staging Area - Cost Transfer Justification form.
If any of the above applies, please attend an ISP Registration Clinic. Go to: http://www.yale.edu/training, enter ISP in Search for a Course and click on ISP Information and Registration Clinic for a complete list of clinic dates.
The new ISP policy and procedures are expected to be posted for comments by August 15. To read or comment on the new Policy and Procedures, go to: http://www.yale.edu/policy. Click on Policy Drafts under Important Links. The comment period is expected to last until September 30.
The new Procedures emphasize that ISPs need to provide timely, accurate and consistent billing, ISP customers need to provide correct PTAEOs, and ISPs and their customers need to work cooperatively to resolve billing problems in a timely and mutually satisfactory manner. In addition, they give guidance on cost-based rate calculations, recording ISP activity in unique accounts, and recording internal and external revenue in appropriate expenditure types.
When the new procedures are implemented, invalid PTAEOs will bounce to the customer’s suspense account, ISPs will be required to bill to split charging instructions when requested to, the Journal Category Interdepartmental Charges and Credits will be modified to include additional data and an updated definition of the Transaction Date and the Account Holder Report will include all information entered on the JSA (most of the additional information will be part of the description).
Questions or concerns may be addressed to ISP Standards Committee members: Nancy Scanlon, Ken Hoyt, David Gingerella, John Fox, or Art Hunt. The ISP Standards Committee welcomes your participation and suggestions for improvements.