Important updates for University Service Providers

The following information relates to updated requirements for University Service Providers (USPs) billing practices.  Please note, this information will also be distributed via direct email in the coming days to the contacts registered for each USP.

Dear Yale University Service Providers (USPs):

Thank you for your continued hard work and contributions to the University’s success in this unprecedented year.  Because of your dedication, most USPs have weathered the shut-down with up to three months with little or no revenue by rethinking services and expenses. Incredibly, a full year has passed, and the annual USP renewal period is nearly upon us for fiscal year 2022 (FY22).

While you were at work keeping the “ship afloat,” the USP Operating Committee was busy rethinking some business practices that were long overdue for an update to stay ahead of audit standards and regulatory requirements.  This communication focuses on one such update pertaining to the minimum required information for USP billing. The details of this update are reflected in modifications made to a portion of Procedure 1410 PR.03 University Service Providers: Accounting and Billing. The full text of that update reads as follows:

D. Substantiation of Charges and Billing Documentation

USPs are expected to substantiate the billed amounts and provide information to the user about the services provided. This substantiation may take many forms including, but not limited to, the journal entry memo fields, standalone invoices from the USP’s optimized subsystem, or emails provided to users.  At a minimum, USPs are expected to be able to provide substantiation documentation upon request from either the user (or representative), the billed COA’s owner (or representative), or an internal compliance request.

Substantiated billing documentation is defined as including, at a minimum, the following pieces of information:

• Requestor’s name;
• Description of delivered goods/services;
• Date each deliverable was delivered;
• Number of units delivered per service;
• Customer Rate per unit of service;
• COA(s) charged and breakdown of split charging, if applicable; and
• Discounts from Customer Prices, if applicable.

This update establishes expectations for the minimum data necessary for adequate USP billing documentation. We recognize that the ways in which Yale’s USPs maintain this information varies. As such, the form is less of a focus than the substance and USPs are free to select the method that best fits their operations.

Going forward, meeting the above minimum requirements is mandatory for all Yale USPs (unless an exception is granted for a compelling justification). We understand, however, that while some USPs may be able to adopt the new requirements immediately, some USPs may require more time.  Therefore, USPs may use the first 10 months of FY22 as a grace period for these requirements, meaning that each USP must meet the minimum requirements by May 1, 2022.

To facilitate the rollout, we are adding new fields to the annual renewal form, specifically asking each USP when they anticipate being able to implement the new billing requirements and if they would like assistance and/or consultation for meeting the requirements. A representative of the USP Operating Committee will work directly with any USP that requests assistance to understand challenges and identify acceptable solutions.

We encourage all USPs to implement the billing requirements as soon as they are able. Based on the expected implementation timeline each USP provides on the annual registration form, all USPs will ultimately be asked to demonstrate their implementation of the new requirements.

Adopting billing standards is a key step in achieving necessary internal controls and compliance across the University. We sincerely appreciate your cooperation and assistance in ensuring a successful rollout of these important requirements.  Should you have any questions or need additional information, please do not hesitate to reach out directly to your area’s USP administrator.  In the alternative, please feel free to contact isp@yale.edu.

Thank you,

USP Operating Committee