Gifts & Grants What’s the Big Deal?

A component of the Business/Accounting Certificate Program

Gifts & Grants What’s the Big Deal?

Presented By:

Steven Levenson

Division of Grant and Contract Accounting


Business/Accounting Certificate Program

A partnership with Human Resources and Internal Audit, The Office of the Controller, Office of Budget and Resource Studies, Office of Risk Management & Insurance, University Procurement & Contracting, Office of Research and Sponsored Programs, Division of Grant and Contract Accounting, and Payroll Services


Course Goals

Discuss significance of proper classification and management of gift and sponsored grant/contract funding

Review conditions to distinguish gifts from sponsored grants/contracts

Provide an overview of gift and sponsored grant/contract processes


So What is the Big Deal?

Significant and Important Financial Resource

Enables University to carry out its principal missions of

teaching, research and public service

Accounting and Stewardship




Who is Involved?

Rutgers Foundation (RUF)

Office of Research and Sponsored Programs (ORSP)

Division of Grant and Contract Accounting (DGCA)

Division of University Accounting


What is a Sponsored Program?

Externally funded activity governed by terms and

conditions from sponsor

Characteristics usually include:

Specific Scope of Work/Proposal

Defined Period of Time which Funds may be

Expended

Detailed Financial Accountability/Deliverables

Glossary - Terms and Abbreviations/Acronyms


Sponsored Programs Include

Gifts Research and/or Research Training General Purpose and/or conference under the following:

Donor/Sponsor requires financial reportingFunds received after the eventFunds used to cost-share other funds handled by

DGCA Grants and Contracts Cooperative Agreements and Other


Other Restricted Funds Include

Endowments Scholarships Restricted Gifts

Funds received from donors or other external third parties that are restricted by them for a specific department or operating purposeGeneral purpose and/or conference gifts that do

not meet the conditions of Sponsored Programs


What is a Gift?

Voluntary and Irrevocable transfer of assets

An asset is a resource for use to the benefit of the organization - Examples - Cash, Equipment

No obligation in return other than recognition

Expended in accordance with donor imposed restrictions


What is a Grant?

Financial assistance in exchange for conduct of research or other program as specified in approved proposal

Usually requires formal financial and/or technical reporting

Performance usually accomplished under time and other constraints

Institution may commit resources as a condition (i.e. Cost Sharing/Matching)


Who Handles What?

Sponsored Programs handled by ORSP/DGCA

Assigned 4-2/0-2xxxx account

Non-Budgetary/BR3 Accounts Request Form

http://postaward.rutgers.edu/Nbud.html

Budgetary Accounts - Endorsement Form

http://orsp.rutgers.edu/endorsement.asp


Who Handles What?

Restricted Funds handled by University

Accounting

Endowments

Assigned 6-4/0-4,0-6XXXX account

All other Restricted

Assigned 5-3/0-3xxxx account

Contact John Straley for Account Questionnaire


Role of ORSP

Process all submissions for external funding

Negotiate, Execute and Process all incoming awards

Official university authority designated by the Board of Governors to accept all external proposals/contracts

Monitors compliance with federal mandates on protection of human subjects, use of laboratory animals, health and safety regulations and cost sharing requirements


Role of DGCA

Establish Accounts Maintain Budgetary Control Prepare Billings and Financial Reports Maintain Effort Reporting System (PACE) Provide Training and Assistance Agency Audits, A-133 and 04-04 Negotiate F&A (Indirect Costs) & Fringe Benefit Rates Establish Cost Policies


Role of Rutgers University Foundation

Separate 501c3 not-for-profit organization

Incorporated 1973

To aid the University to obtain private funds and other resources to meet the needs and achieve the goals of the University


Why a separate organization?

Public institutions are subject to Public Right-to-Know laws

Private Foundation can: Keep donor information private Hold private meetings Manage assets with fewer restrictions Enter into transactions easier


Foundation Activities

Research, identify & solicit potential donors

Process, receipt and acknowledge gifts

Record donor history & maintain biographical info

Transfer gifts to the University

Manage assets

Written publications, Annual Report, Presidential

remarks and gift reporting

Events


Campaign

The Rutgers Campaign: Creating the Future Today

July 1, 1998 to June 30, 2004

Goal: $500 Million

$615 Million raised


Types of Gift Instruments

Cash or check

Credit Card

Appreciated securities

Deferred Gifts (annuities, trusts, life insurance)

Gifts-in-kind (tangible assets, real estate,

patents/intellectual property)


Overview of Processing of Gift

Foundation receives gift and liquidates if necessary Deposits to Foundation account

Foundation chart of accounts mirrors University’s Deposit to temporary account if no University

account exists Records to donor’s record Receipt is sent to donor Acknowledgement letter sent to donor Funds transferred to University account


Foundation’s Transfer Policies

Transferred monthly: Gifts of $50,000 or more Gifts to endowment principal accounts Gifts for capital purposes Gifts to Zimmerli Art Museum Gifts held in temporary acct when Univ acct

established Will transfer any gift upon request All others transferred during Annual Allocation in

September


Fund Agreements

Documents donor restrictions in writing

Specifies details of account type, how invested,

account procedures followed with year-end balances

Scholarship – documents student selection criteria and

procedure


What to do if you receive a gift

Contact your development office

Donors should make checks payable to “Rutgers University

Foundation”, Winants Hall, 7 College Avenue, New

Brunswick

Do not deposit Gift yourself

If made payable to the University, send to Susan Cotton,

University Accounting, ASB, Room 300, Busch

Susan deposits and transmits donor info to RUF

Gift-in-kind – fill out form, attach documentation


Planning a Fundraising Event?

Important: Contact Donor Relations first!

732-932-8514

Donor gifts must be reduced by FMV of goods or

services received

Specific language required by IRS on invitations

Specific accounting procedures to separate gift from

non-gift portion


Stewardship and Ethics

Rutgers has ethical responsibility to our donors/sponsors to be good stewards of their funds. This includes: Investing endowment funds prudently Ensuring funds are used in a timely manner Spending in accordance with donor/sponsor

restrictions Donor Relations sends annual reports to donors to

inform them of the investment performance of their funds, and how their funds were used

Conflict of Interest/Research Integrity


Case Studies


Life Cycle of a Sponsored Program

Proposal PreparationBudget PreparationCompliance RequirementsRouting and ReviewNegotiations and AcceptanceManaging Programmatic AspectsManaging Award Funding

Audits/Record Retention


Key Players

Principal Investigator(PI)/Project Director (PD)

Departmental Administrator/Business Accounting Staff

Department Chair

Dean and/or Center Director


Proposal Preparation

PI formulates idea for research project and finds program that will fund his/her idea

Endorsement form required for all Proposals Read, read and re-read PI begins writing project description Rutgers Proposal/Coversheet Information

http://orsp.rutgers.edu/proposal.asp Deadline reminder


Budget Preparation

Rutgers Budget Template http://orsp.rutgers.edu/Costshare/default.asp

Fringe Benefit Rates Facilities and Administrative (F&A) Costs

Costs associated with the infrastructure that supports the research enterprise and which cannot easily be determined for each project.

Also known as Indirect Costs or Overhead For more information on Fringe Benefits or F&A Rates

http://postaward.rutgers.edu/Cost_Accounting.htm


Compliance Requirements

Animal Care and Use - Protocol Required http://orsp.rutgers.edu/animal.asp

Human Subjects Research - Protocol Required http://orsp.rutgers.edu/Human.asp

Rutgers Environmental Health and Safety (REHS) http://rehs.rutgers.edu/

Conflict of Interest

For more information-http://orsp.rutgers.edu/proposal.asp


Routing and Review

See Flow Chart


Negotiations and Acceptance

Award documents are received and accepted by

ORSP

Award documents are then transferred to DGCA

DGCA will establish account(s) on the University’s

Financial Accounting System (OFIS)

Department is notified of account(s) establishment for

sponsored grants/contracts via Notice of Award

distributed from DGCA


Managing Programmatic Aspects

PI is responsible for the programmatic aspects of the sponsored program Technical Reports Certifying Subaward/Subcontract invoices Compliance Issues

Department Administrator/Business/Accounting Staff Primary Contact with DGCA Coordinates and Communicates with PI Compliance Issues


Managing Award Funding

Department Administrator/Business/Accounting Staff Insures all required paperwork is completed and

submitted to establish accounts Reconciles monthly ledgers of expenditures and

takes corrective action timely Expedites processing of documentation for

purchases and appointment of personnel Assists with budgetary issues Insures compliance issues, such as timely closeout

of awards



DGCA is responsible for: Invoice Sponsors/Draw Downs for Letter of Credit

Awards Submit Financial Status Reports Follow up on outstanding receivables If needed, refund funds to sponsor

Departments should NEVER report fiscal data to sponsors



Sponsored Program Closeout Procedures Reporting Responsibilities Final Costs/60 day letter Technical Reports Unallowable Charges Delinquent Reporting

For more information -http://postaward.rutgers.edu/Workshops/Basic/Close%20Out%20Procedures%20memo_Attachment5.doc


Audits

DGCA is the audit contact for sponsored programs If you are contacted directly by a sponsor/donor,

contact DGCA DGCA will coordinate and respond to all sponsored

program audits

For non-sponsored audits - contact University’s Controller’s Office


Record Retention

Proposal and financial records retained by DGCA All programmatic data must be retained by the

individual department Federal Rule: Must retain documents for a minimum

of 3 years after all final paperwork submission date Some agencies require a longer retention period

Rutgers Records Management Program Website http://www.libraries.rutgers.edu/rul/libs/scua/

ru_records/


Case Studies


Final Thoughts

Sponsored Programs are between Sponsor and Rutgers - Not Sponsor and PI

PI must complete and submit an endorsement form to ORSP prior to submitting proposal to sponsor

Sponsored Programs are subject to complex and constantly changing guidelines and policies ORSP/DGCA Listservs & Websites ORSP/DGCA Business Administrators Meetings Training


Additional Resources

Policies and Procedures

University Policies and Procedures-Book 6

http://ruweb.rutgers.edu/regulations/contents.html#6

Standards for University Operations

http://ruweb.rutgers.edu/oldqueens/standards.html

ORSP, DGCA, RU Foundation Websites



Websites

ORSP

http://orsp.rutgers.edu

DGCA

http://postaward.rutgers.edu/

RU Foundation

http://support.rutgers.edu/



Contact Information ORSP

http://orsp.rutgers.edu/Staff.asp DGCA

http://postaward.rutgers.edu/personnel.htmlEmail: [email protected] for further

assistance or feedback RU Foundation

http://campaign.rutgers.edu/contacts.html