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FastFactsFeature Presentation

April 30, 2009

We are using audio during this session, so please dial in to our conference line…

Phone number: 877-468-2134 Participant code: 182500

© 2009 The Johns Hopkins University. All rights reserved.

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Today’s Topic

We’ll be taking a look at…Information you need to know before you begin a project overseas.

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Today’s PresenterSunanda HolmesAssociate Director of the Office of International Business

Compliance, in the JHU Controller’s Office

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Session Segments

PresentationSunanda will provide an overview of what you need to know before you begin a project in a foreign country.During Sunanda’s presentation, your phone will be muted.

Q&AAfter the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Sunanda will answer as many of your questions as time allows.

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Contact Us

If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: fastfacts@jhu.eduYou can also send us an instant message!

GoogleTalk – HopkinsFastFacts@gmail.comAOL Instant Messenger – HopkinsFastFactsMSN – FastFacts@jhu.edu

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Survey

SurveyAt the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

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Office of International Business Compliance

(OIBC)

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Agenda

Introduce the Office of International Business Compliance (OIBC)Discuss 10 important considerations and available resources

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What is the OIBC?

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OIBC Overview

Mission:To create a framework that supports the university’s global vision.

Goal:To provide a comprehensive and centralized approach for faculty and staff to comply with the U.S. and foreign countries’ legal and regulatory requirements.

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Global Presence

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10 Things to Know Before You Start a Program

Abroad

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#1 – Starting an International Program

Why should I contact OIBC when submitting a proposal for international activities?

OIBC will assist you in determining if the university is already working in the country or region.

You can benefit from others’ experiences.

“Doing Business Guides” are a valuable resource.

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#2 – Retaining Legal Counsel

Do I need to retain legal counsel in a foreign country?

OIBC and the JHU Office of General Counsel will determine if a local lawyer is necessary.

If necessary, OIBC and OGC will help you retain local counsel.

Schools or operating units of the university are not permitted to independently retain local legal counsel.

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#3 – Foreign Legal PresenceWhat is registration?

Legal and strategic decisionFormalizes university’s presence in a foreign country

Types of registrationLiaison officeBranch officeLocal entity (JHU controlled)

Alternatives to foreign registrationPartnershipsMemorandums of Understanding (MOU’s)

NOTE: Failure to comply with foreign corporate, labor and tax laws may lead to severe penalties, including fines and imprisonment.

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#4 – Banking Considerations

Do I need a foreign bank account?

Local registration is required.Obligates reporting and compliance under US and foreign laws.

JHU departments must adhere to foreign banking guidelines.

Contact the JHU Office of the TreasurerGuidelines are available at http://web.jhu.edu/treasurer/operations/foreign.html

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#5 – Human ResourcesHow do I handle staffing overseas?

Overseas hiringEmployees

US expats (US citizens working abroad)TCNs (Third Country Nationals)HCNs (Host Country Nationals)

Independent contractors

Work permits/visas

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#5 – Human Resources (cont’d)

HR policiesLocal labor lawsLocal employment lawsCustoms

Employment taxesIncome and social security taxesLocal payroll administrationQuickBooks Third party payersEmployment agencies

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#6 – Power of AttorneyWhat is a Power of Attorney (POA)?

Establishes local authority for signing documents related to registration, banking, and limited types of contracts on behalf of the university, but excluding capital or financing leases and real estate leases.

Requesting a POA?Contact OIBC to initiate your request. OIBC will draft the necessary paperwork and work with the JHU Office of General Counsel.

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#7 – ProcurementHow do I purchase items overseas?

Items must be purchased in accordance with JHU procurement policies and sponsor requirements.

$5,000 threshold

Set up inventory tracking system to keep records of all furniture, equipment and non-expendable property purchased with value over $500.

Any loss, damage, or theft to non-expendable property which significantly reduces its functionality or operating life must be documented and reported to staff in Baltimore.

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#8 – Legal Implications

U.S. laws

Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. §§ 78dd-1, et seq.) Office of Foreign Assets Control (OFAC)

http://www.treas.gov/offices/enforcement/ofac/Specially Designated Nationals (SDN) list

http://www.treas.gov/offices/enforcement/ofac/sdn/index.shtml

Foreign/host country’s laws

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#9 – Tax ImplicationsIs the university tax-exempt in foreign countries?

The university’s tax-exempt status Tax treatiesBilateral agreementsOther agreements

Individual TaxesIncome taxSocial Security Taxes

Corporate taxes Value Added Taxes (VAT)Income taxes

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#10 – Risk Management

Insurance needs:Property, liability and auto insuranceInternational SOS http://www.internationalsos.com/en/index.htm?CFID=19021367&CFTOKEN=23536111

Audits and oversightField officesSub-recipients

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Conclusion

OIBC is here for you!

There are resources at your fingertips: http://www.controller.jhu.edu/depts/ibc/index.html

-Doing Business Guides are available online-Detailed FAQ’s

Email: InternationalBusinessCompliance@jhu.edu

Phone Number: 443-997-8688

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Q&A

We’re going to open the phone lines now!There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line.We’ll be answering questions in the order that we receive them.We’ll also be answering the questions that were emailed to us during the presentation.If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

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Thank You!

Thank you for participating!We would love to hear from you.

Are there certain topics that you would like us to cover in future FastFacts sessions?Would you like to be a FastFacts presenter?Please email us at: fastfacts@jhu.edu

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Survey

Before we close, please take the time to complete a short survey.Your feedback will help us as we plan future FastFacts sessions.Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/

Thanks again!