Disbursement Process for Foundation Spendable Funds
Slide 2
2 The intent of this presentation is to further define the
roles and processes for the disbursement of funds by Kent State
University (KSU) and the Kent State University Foundation
(Foundation).
This project is a partnership to simplify the disbursement
functions for all participants in the process. 5
Slide 6
6 KSU makes disbursements in accordance with the policies in
the University Policy Register which have been approved by the
Board of Trustees. The Foundation provides funding in accordance
with operating policies approved by its Board of Directors.
Slide 7
7 The Foundation provides private funding for the benefit of
Kent State University.
Slide 8
8 The Accounts Payable Department provides services to internal
and external customers such as faculty, staff, students, and
vendors by providing efficient, timely, and accurate information
and payment processing in compliance with Kent State Universitys
administrative policy and external regulations. The Accounts
Payable Department administers the following payment processes:
Payment of Goods and Services Payment to Independent Contractors
Employee Expense Reimbursements Purchasing Card Administration
1099-Misc Reporting Accounts Payable (AP)
Slide 9
In prior years, both organizations have operated accounts
payable functions and made payments directly to payees. 9
Slide 10
10 KSU will become the primary accounts payable function for
the university community. The Foundation will not issue payments to
payees other than KSU, with minor exceptions. The role of the
Foundation will be to provide funding directly to a unit of KSU
subject to the availability of donor funds.
Slide 11
The new process will be effective for all transactions
submitted subsequent to the issuance of a transmittal memorandum.
11
Slide 12
Role of KSU In the New Process 12
Slide 13
All requests for disbursement, besides alcohol, should be
submitted to the KSUs Accounts Payable Department for payment
consideration. 13
Slide 14
KSU will continue operating under all of its existing policies
and procedures related to the disbursement function. The procedural
changes do not change any existing KSU policies. All requests for
payments to KSU Accounts Payable function must use the appropriate
submission method. It will primarily be the KSU CHECK REQUEST
(Check Request) form. 14
Slide 15
Check Requests which are submitted to KSU must be complete and
will be evaluated in accordance with existing KSU policies
including any applicable accounting requirements. One exception is
for the funding of alcohol used in an entertainment function. A
request to fund alcohol must be submitted directly to the
Foundation for consideration. 15
Slide 16
The KSU Check Request form now includes an area which indicates
AP should forward the Check Request to the Foundation in the event
of nonpayment. Check Requests for alcohol will not be forwarded.
16
Slide 17
17 Check Request Modification
Slide 18
If KSU AP cannot pay the item on the Check Request And, the
forwarding section of the Check Request form is completed KSU AP
will forward the Check Request to the Foundation for possible
funding under Section D. of the Foundation policy The Forwarding
Process 18
Slide 19
Role of the Foundation In the New Process 19
Slide 20
20 The Foundation disburses funds from Spendable funds. All
Spendable funds are restricted. Spendable funds are available for
immediate use in supporting KSU and are designated as discretionary
or donor restricted.
Slide 21
Discretionary Funds (Who for ?) Example: College of Business
21
Slide 22
Donor Restricted Fund (What for ?) Example: Scholarships
22
Slide 23
Deans Activity Fund Donor Restricted fund for items not
qualified for funding under schedule D. Fund description must state
what type of items are permitted. (flowers, parties, donations,
etc.) Minimum of $100 to open fund Limited to gifts from faculty
and staff 23
Slide 24
24 Funding can be obtained through two processes: 1.A forwarded
Check Request from KSU AP 2.A Foundation Funding Request form
Slide 25
25 A forwarded KSU Check Request is for items KSU AP could not
pay. The items may qualify for funding from the Foundation under
Section D. of the disbursements policy.
Slide 26
Section D. Allowable items not meeting KSU disbursement
policies. Foundation may pay even if KSU wont. 26
Slide 27
Outline of Section D. Items 27
Slide 28
The second method is a direct application to the Foundation
using a Funding Request form. 28
Slide 29
The Foundation has historically made disbursements to both KSU
and non-KSU payees using its own version of a check request form.
The Foundation is changing the name of its check request form to
FUNDING REQUEST (Funding Request). 29
Slide 30
30
Slide 31
A Funding Request may be submitted to the Foundation for three
purposes. 1.Funding from a Discretionary fund to a KSU index
2.Funding from a Donor Restricted fund to a KSU index 3.Funding for
alcohol meeting the requirements of Section D. 31
Slide 32
1.Funding from a Discretionary fund to a KSU index The new
process continues to permit the transfer of Discretionary funds at
any time, to a related KSU index for an amount up to the available
fund balance. This purpose requires no documentation other than the
completed Funding Request form. 32
Slide 33
2. Funding from a Donor Restricted fund to a KSU index Donor
Restricted funds can be disbursed for items already paid through
the KSU Accounts Payable function. The Funding Request form must be
supported by a copy of the KSU Check Request form, but not the
supporting documentation. The Funding Request must be payable to
the KSU index on which the KSU Check Request was drawn. Item must
meet the fund restriction. 33
Slide 34
3. Funding for alcohol meeting the requirements of Section D.
Under the new process, requests for alcohol to any payee should be
submitted directly to the Foundation using a Foundation Funding
Request. The Funding Request should include documentation
sufficient to support the request. 34
Slide 35
Operating Impact No change in amount of funding available from
Foundation No change in policies Streamlined submission process
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