NAFSA Region X Annual Conference Lake Placid, NY October

Transcription

1 NAFSA Region X Annual Conference Lake Placid, NY October David B. Austell, Columbia University Glen Collins, KPMG Robert J. Sanford, New York University 1

2 The New Service Model: Comprehensive Immigration and Relocation Services I. INTRODUCTION 2

3 The New Service Model: Comprehensive Immigration and Relocation Services Federal and Institutional Contexts The Drivers of Coming Change Concerns Related to Homeland Security Institutional Liability Market and Competition Institutional Reaction to Globalization 3

4 The New Service Model: Comprehensive Immigration and Relocation Services II. SERVING THE INSTITUTION S GLOBAL COMMUNITY: THE NEW SERVICE MODEL 4

5 Comprehensive Immigration and Global Mobility Services Immigration (US and non-us), Tax, and Global Mobility, oh my not to mention payroll, labor law and permanent establishment concerns. Traditional OISS focused primarily on U.S. Immigration needs of the community (students, visiting faculty and scholars) Inbound Typically OISS offices don t advise on non-us Immigration needs of the community 5

6 Elements of the New Service Model In addition to U.S. Immigration Advising (F1, J1, OPT, H1B, O, EB, TN, Perm. Res., etc.) & Programming the new service model includes: Non-US Immigration Advising & Assistance (Student Visas, Work Permits, Business and Research Visas, etc.) Tax Protection/Equalization cost projections, Treaty Guidance, Tax Services Global Mobility Assistance: Housing, Travel, Shipping, Payments, Compensation Tracking, Schooling, etc. 6

7 Elements of the New Service Model Non-US Immigration Advising & Assistance Do I need a visa? It Depends Each country is different and it depends on the individual s citizenship, duration of stay, purpose of the trip, University structure, etc. Regulations and process change frequently Students may require: support letters, proof of health insurance, proof of sufficient funds, proof of return trip, and sometimes criminal history records & health letters and more. 7

8 Elements of the New Service Model Non-US Immigration Advising & Assistance Do I need a visa? It Depends Faculty may require: support letters, proof of health insurance, proof of sufficient funds, proof of return trip, and sometimes criminal history records & health letters and more. 8

9 The New Service Model: Comprehensive Immigration and Relocation Services III. Rationale for Comprehensive Immigration and Mobility Services 9

10 Notice The following information is not intended to be written advice concerning one or more Federal tax matters subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. You (and your employees, representatives, or agents) may disclose to any and all persons, without limitation, the tax treatment or tax structure, or both, of any transaction described in the associated materials we provide to you, including, but not limited to, any tax opinions, memoranda, or other tax analyses contained in those materials. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

11 KPMG Overview KPMG International Cooperative (KPMG International), a Swiss entity, has member firms in more than 156 countries with more than 117,000 professionals including more than 8,600 partners KPMG LLP (KPMG), the audit, tax and advisory firm, is the U.S. member firm of KPMG International Within the United States, KPMG has approximately 30,000 professionals including 2,900 partners operating in all 50 states

12 The role of managing risk The role of managing risk in multinationals is starting to evolve from last-stop consideration to a strategic business strategy Higher education institutions face many of the same risks as multinationals physical, financial, operational, reputational Universities need to consider the management of risk associated with global expansion proactively identify impending problems and risks

13 KPMG sees a continuing global focus on compliance Stricter government regulations Political, environmental, and security environments have changed rapidly and dramatically Coupled with continuing global economic uncertainties and widespread unemployment, global revenue authorities continue to look for new revenue sources. Increased focus on tax and immigration compliance. Heightened focus on employees creating a permanent establishment. More and more jurisdictions are tracking international assignees. Stricter rules regarding reporting of assignment benefits timing, accuracy of currency, and accuracy of payment type. Shortening or eliminating grace periods for year-end tax and compensation payments and stiffer penalties for inaccuracies.

14 Multi-disciplinary exposure globally Property & asset ownership & rentals Local audit and regulatory requirements Distance learning Education Regulation In-country relationships & use of name In-country legal status Grants and funded projects Exposure Business activities Multiple activities and elements combine to potentially increase exposure beyond what may be the known exposure; this exposure should be mitigated 14

15 One individual, multiple concerns Ownership Social security Reputation Withholding obligations Tracking Treaty relief Visiting Professors/ Students Policy considerations Income tax Safety & security Corporate tax Immigration Cost 15

16 Global expansion operational needs Choosing the country/region/market that makes the most sense (proactive vs. reactive) Maximizing advantage of all available benefits and incentives Designing correct internal controls and infrastructure to foster compliance Controlling and tracking the movement of people Minimizing and managing internal and external risk factors Maintaining, protecting, and enhancing the brand Establishing cross-border accounting systems and controls Developing an exit strategy Typically supported under Immigration & Relocation ( Global Mobility ) operational group

17 Program Management - Centralization vs. Decentralization Due to the heightened regulatory and compliance environment globally, KPMG continues to see a greater trend of global mobility program centralization. Centralization Decentralization Consistency in approach Autonomy Cost control through uniformity Cost control through ingenuity Governance and compliance Customization/local focus Assignment policy regulation Flexibility Coordination with tax and finance functions Inconsistencies in approach Access to global resources Increased compliance risks

18 Sample corporate service delivery model reference Greater internal collaboration between key stakeholders supporting mobility 18

19 Institutional Value Optimizing Service Delivery and Compliance through Shared Services Center (SSC) Environment Limited use of SSC or service providers Processes are not standardized or flexible; not regularly reviewed Accountabilities, hand-offs and timelines are not documented Processes are standardized and riskbased to a degree; processes leverage SSC and service provider teams Data collection and analysis is undertaken through SSC ideally with standardization Accountabilities, hand-offs and timelines are documented, but not monitored Full ownership for certain end to end administrative processes through dedicated teams at SSC Processes are standardized, risk-based and integrated with wider institutional processes Accountabilities, hand-offs and timelines are documented and actively monitored Key Considerations Technical knowledge Desired level of control Cost efficiencies Local (in-house or outsourced locally, but with limited or no SSC leverage) Efficiency and Effectiveness Hybrid ( Local with leverage of SSCs) Centers of Excellence 19

20 Permanent Establishment Risks 20

21 Permanent Establishment Risks (cont.) 21

22 Governance framework for immigration and relocation services should include A clear approval (and exceptions) process Formalized policies and procedures Educated and informed staff Embedded monitoring and evaluation processes Strong internal capabilities or network of third-party providers Adaptability and scalability The importance of developing a strong framework to support expansion cannot be overstated.

23 Getting stakeholder buy-in Survey the issues can get stakeholder buy-in if they feel they are heard and their concerns are being addressed Can t just say no present risks and try to find solutions Work groups understand daily impact on stakeholders and create buy-in from those who need to comply Value proposition not just a tick in the box exercise Leadership support across the organization part of the culture Operationalize compliance is not just a policy and a bit of training

24 Financial considerations Internal capacity (FTEs) vs. third-party providers Prompted by a proactive approach or in response to a crisis? Explanation of costs as relevant and worthwhile Common operating environment define what is controlled centrally and what is controlled locally or by individual schools

25 Creating a valued partnership Delicate balance between becoming fully involved in the decision-making and remaining sufficiently independent to challenge decisions where necessary. Have to be involved, but disengaged enough to be objective. When planned actions appear to be contrary to the interests of the organization, need to find ways of reducing the risk to an acceptable level, even if this is not the perfect, textbook answer. Global Mobility operating groups brings a unique viewpoint (compliance focused vs. academic) that adds value to the decision-making process. Move from raising the question to also help providing the solution get off the fence and say this is the problem and then give a preferred solution. Move from fire fighting to strategy and proactively identify and assess risks at an earlier stage. Work collaboratively with others to achieve solutions. Everybody brings a slightly different approach. Understand what is going on outside the organization in terms of the risk landscape.

26 The New Service Model: Comprehensive Immigration and Relocation Services IV. CASE STUDIES

27 CASE STUDY: COLUMBIA UNIVERSITY A. THE BASICS: i. Resources and brain-trusts ii. Financing and fees iii. Space and co-location iv. Turning to corporate resources to identify mobility talent B. RESISTANCE TO CHANGE vs. INSTITUTIONAL VISION C. COMMUNICATION, SOCIALIZATION, ACCEPTANCE, AND BUY-IN D. TECHNOLOGY CONCERNS E. THE USE OF OUTSIDE LEGAL COUNSEL vi. Pros vii. Cons F. DEVELOPING KEY INSTITUTIONAL PROGRAMMING COLLABORATIONS

28 CASE STUDY: NEW YORK UNIVERSITY A. THE BASICS: i. Resources and brain-trusts ii. Financing and fees iii. Space and co-location iv. Turning to corporate resources to identify mobility talent B. RESISTANCE TO CHANGE vs. INSTITUTIONAL VISION C. COMMUNICATION, SOCIALIZATION, ACCEPTANCE, AND BUY-IN D. TECHNOLOGY CONCERNS E. THE USE OF OUTSIDE LEGAL COUNSEL vi. Pros vii. Cons F. DEVELOPING KEY INSTITUTIONAL PROGRAMMING COLLABORATIONS

29 The New Service Model: Comprehensive Immigration and Relocation Services Q&A

30 About the Presenters David B. Austell, Ph.D. is Associate Provost and Director of the International Students and Scholars Office at Columbia University. Glen Collins is Senior Manager of Global Mobility Services at KPMG. Robert J. Sanford is Associate Director for Immigration and Mobility Services at New York University