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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
A component of the Business/Accounting Certificate Program
A component of the Business/Accounting Certificate Program
Who is Involved?
Rutgers Foundation (RUF)
Office of Research and Sponsored Programs (ORSP)
Division of Grant and Contract Accounting (DGCA)
Division of University Accounting
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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)
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
Campaign
The Rutgers Campaign: Creating the Future Today
July 1, 1998 to June 30, 2004
Goal: $500 Million
$615 Million raised
A component of the Business/Accounting Certificate Program
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)
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
Case Studies
A component of the Business/Accounting Certificate Program
Life Cycle of a Sponsored Program
Proposal PreparationBudget PreparationCompliance RequirementsRouting and ReviewNegotiations and AcceptanceManaging Programmatic AspectsManaging Award Funding
Audits/Record Retention
A component of the Business/Accounting Certificate Program
Key Players
Principal Investigator(PI)/Project Director (PD)
Departmental Administrator/Business Accounting Staff
Department Chair
Dean and/or Center Director
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
Routing and Review
See Flow Chart
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
Managing Award Funding
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
A component of the Business/Accounting Certificate Program
Managing Award Funding
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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/
A component of the Business/Accounting Certificate Program
Case Studies
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
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
A component of the Business/Accounting Certificate Program
Additional Resources
Websites
ORSP
http://orsp.rutgers.edu
DGCA
http://postaward.rutgers.edu/
RU Foundation
http://support.rutgers.edu/
A component of the Business/Accounting Certificate Program
Additional Resources
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