USF FoundationOffice of Business & Financial Services

BFS Overview

Policy & Procedure Training Presentation

BFS Overview & Training Topics

Banner Basics for Finance Cash Receipts/Deposits Overview Fund Management Overview Cash Disbursements - Refresher COMPASS

Foundation BFS Contacts

Michelle Cummings Banner Finance

Access

cummings@admin.usf.edu

Phone: (813) 974-1826

Kathy Mammenga Deposits

Fund Management

kmammenga@admin.usf.edu

Phone: (813) 974-1826

Bridgette Morrow Cash Disbursements

bmorrow@admin.usf.edu

Phone: (813) 974-3019

USF Foundation Overview

Established under Florida Statute 1004.28 Direct Support Organizations (DSO)– Organized and operated exclusively to receive,

hold, invest, and administer property and to make expenditures to or for the benefit of a state university in Florida

501(c)3 – Tax Exempt Non-profit Status 509(a)1 – Public Charity Status

Role of the Foundation

Bank – Accepts Money– Disburses Money

Generally with no questions asked

Misconception that causes frustration for our customers.

Role of the Foundation con’t

Foundation– Accepts Money

Reviews deposit for proper endorsement and supporting documentation.

Reviews gift vs. revenue classification in accordance with IRS regulations & Foundation policy

Monitors for Unrelated Business Income (UBI) Issues official tax receipts and other IRS tax deduction

forms for non-cash gifts Remits sales tax collected from revenue generating

activity as necessary.

Role of the Foundation con’t

Foundation– Disburses Money

Reviews payments for payroll tax issues, nonresident alien issues, financial aid distribution, and other IRS issues.

Reviews payments for proper documentation as required by the IRS and Foundation policy

Reviews appropriateness of payments based on fund restrictions imposed by the donor.

Issue 1099 Misc. Revenue Forms

Foundation Accountability

IRS Examination – AGENTS will be here in March 2006 Annual Financial Statement Audit as required by Florida

Statutes Financial Statement Certification by the CEO, CFO and

Director as required by the Board of Trustees Quarterly Financial & Budget Reporting to the University

Board. Filing of federal & state tax returns Stewardship Reports to donors on quarterly and annual

basis. Internal audit function

Banner Basics for Finance

Banner Finance Module – Online real time access to detailed financial information for the funds you manage.

How to obtain Banner Finance access?– Banner Access Policy and Authorization Forms are

available on COMPASS. – Submit signed forms to Chris Montanari in Central Records– Obtain approval from authorized signer on funds for specific

fund access and submit approved listing to BFS to grant access.

Banner Basics for Finance

FORM TITLE OF FORM WHAT THIS FORM TELLS YOU

FGITBSR Trial Balance Summary Cash Balances

Pledge ReceivablesAccounts PayableFund Balance

FGIGLAC General Ledger Detail Detail Activity – Cash

Detail Activity – PledgesDetail Activity – Accounts

Payable

FGIBDST Budget Status Form Summary YTD – RevenuesSummary YTD – Expenses

FGITRND Detail Transaction Activity Detail Revenues by AccountDetail Expenses by AccountDetail Transfers by Account

Banner Basics for Finance

Transaction Types– BFS Manual Entries

JE15 Quarter End or Year End accrual entries JE16 Interfund Transfers N001 Cash Dividends CR05 fundraising revenue, expense reimbursements, deposit corrections,

credit card fees, etc.– Accounts Payable

INNI Invoice DNNI Check Paid CNNI Voided Check

– Automated Gift Processing entries FCSH Cash Gift FGIK Gift in Kind FSTK Stock gift FCPP Pledge Payment FJAF Annual Fund Investment Fee FXXX Other gift processing entries

Banner Basics for Finance

Questions?

Deposits Overview

Types of Funds Accepted by the Foundation– What is a Gift?– What is an EBA?– Qualified Sponsorships

Making a Deposit to the Foundation – Internal Controls

Completing a Deposit Transmittal

Deposits Overview

Types of Funds Accepted – Gifts– What is a Gift?

As defined by the IRS the donor must relinquish control of the item in order for it to be classified as a gift. Gifts are voluntary and irrevocable and there is no direct benefit to the donor.

What is donor receives something in return?– ‘Quid pro quo’ – often referred to as a split gift

Deposits Overview

Types of Gifts Accepted by the Foundation Cash Checks Credit Cards Matching Gifts Grants that Qualify as Gifts – MOU Securities Gifts in Kind Real Property Planned Giving Instruments – i.e. trusts, etc. Pledges Qualified Sponsorships State of Florida Matching Gifts

Deposits Overview

Types of Funds Accepted – Revenue Dividends Interest Royalties if Foundation is royalty holder Honorariums that qualify as donations Fundraising Revenue – require an approved

EBA

Deposits Overview

What is an EBA? Educational Business Activity (EBA) is a revenue generating activity that is conducted through a USF account.

When is an EBA form required? – If there is a charge for the event an EBA form should be

completed.– Annual Activities – resubmit EBA to Foundation each year

What types of EBA activities should be run through the Foundation?

– Significant gift component– Donor cultivation

Deposits Overview

Examples of EBA’s accepted by Foundation– Dinner, receptions, etc.– Auctions – may need to collect sales tax– Raffles (Drawings of Chance) – must follow

certain guidelines– Banquets– Golf events & similar ‘friend’ raising activities

Deposits Overview

Qualified Sponsorship Highlights– In return for their sponsorship, the sponsor will

receive no substantial benefit, other than the use or acknowledgement of the sponsor’s name or logo in connection with the sponsored activity.

– In order to be considered insubstantial, the value of the benefits received by the sponsor must not exceed 2% of the sponsorship payment.

When total benefits exceed 2% of sponsorship payment UBI may be generated.

Contact Michelle Cummings with questions

Deposits Overview

Making Deposits – Internal Controls As received, deposits should be sent to BFS with a

completed deposit transmittal. If receipts can not be delivered on the same day –

maintain deposits in a safe! For checks, a restrictive endorsement FOR

DEPOSIT ONLY USF FOUNDATION should be made on the back of the check.

Deposits should be hand-carried to the Foundation and Cash should NEVER be delivered through campus mail!

Deposits Overview

Making Deposits – Internal Controls Endorsement Policy

– Proper payee is USF Foundation not USF, Department Name or Fund Name

– If check is over $1,000 and is not payable to USF Foundation special endorsements may apply.

See Foundation Endorsement Policy

Deposits Overview

Completing a Deposit Transmittal1. Fund Number2. Fund Name3. Activity – List the name of the activity if there is an

EBA.4. Information from Check.5. Donor information if different from check.6. Banner ID, if known otherwise leave blank.7. Amount of Deposit

Deposits Overview

Completing a Deposit Transmittal8. Type – Gift, Pledge payment or Revenue. If split between gift

and revenue, must itemize each amount. If it is an expense reimbursement, include the USF Foundation check number being reimbursed. Only one type of deposit per form (gift, revenue, split gift and revenue)

9. Activity Code – If there is an EBA, record the activity code10. Page total11. Name and phone number for initiator/date12. Name and campus mailpoint of Administrative officer/date13. Signature of Development Officer/date – Development Officer

signature is not a requirement however, please forward a copy of the Deposit Transmittal to the Development Officer if they do not sign the transmittal.

Deposits Overview

Things to Remember!– Include all original backup information – check stub,

correspondence, envelope, etc.– Paper clip, not staple, checks and backup information to the

transmittal.– Checks are to be endorsed before they are submitted.

Endorsement stamps are available.– Record the same information for credit card transactions.

Must include the authorization number and the date the transaction was called in. Transactions called in on the same day can be recorded on one form.

Deposits Overview

Questions?

Fund Management Overview

Establishing a Fund Make changes to an existing fund Close a FundPolicies and forms can be found on

COMPASS.

Contact Kathy Mammenga with questions.mammenga@admin.usf.edu

Cash Disbursements - Refresher

Financial Administrator and Check Request Initiator Responsibilities

Completion of Check Request and Proper Supporting Documentation

Common Issues or exceptions that will hold up your check request

What to do if something goes wrong?

Cash Disbursements - Refresher

Check request initiator’s responsibilities– Know which form to use and how to

complete them.– Know who can sign on your fund and for how

much.– Know your fund’s cash balance.– Insure that check request has been reviewed

by the appropriate Financial Administrator– Obtain signature approval at the appropriate

level

Cash Disbursements - Refresher

Financial Administrator’s Responsibilities– Know the restrictions on your fund and review each

transaction processed against the fund to insure it is allowable.

– Be familiar with Foundation expenditure policies and know where to go with questions.

– Review monthly reports and reconcile your fund on a regular basis.

– Provide guidance to your department faculty and staff on the allowable use of their fund.

– Act as the liaison between the Foundation, your dean’s office and your department.

Cash Disbursements - Refresher

Foundation Responsibilities - We have a responsibility to each department to process each request as timely as possible while adhering to established accounting principles.

Does the backup support the expense? Has the appropriate individual approved the

request? Is there money in the fund?

Cash Disbursements - Refresher

Make sure to submit check request on appropriate form:

– USF Foundation, Inc. Check Request and Transfer Form– USF Foundation, Inc. Travel Reimbursement Request Form

– travel reimbursements must be on this form because of the statement the traveler signs.

“I hereby certify that the above expenses were actually incurred by me as necessary traveling expenses in the performance of my official duties; that attendance at conferences or conventions is directly related to the official duties of the agency; that any meals or lodging included in a conference or convention registration fee have been deducted from this travel claim; and that this claim is true and correct in every material matter.”

Cash Disbursements - Refresher

Proper Supporting Documentation Tape receipts onto 8 ½ by 11 inch paper Document each meal with number of

attendees and their relationship to USF In most cases, submit only the original check

request and receipts. If something MUST be mailed to the vendor with the check, submit the originals and one copy

Staple all support to the original check request, including copies

Cash Disbursements - Refresher

Proper Supporting Documentation Include the business purpose and benefit to

USF of every expenditure For reimbursement for e-tickets, provide a

boarding pass and proof of payment For reimbursement for web purchases,

provide a web receipt and packing slip for tangible items. Provide a web receipt and proof of payment for services.

Cash Disbursements - Refresher

Common Issues or Exceptions that will delay your check request:

Missing Independent Contractor Agreement Missing or unauthorized signer No supporting documentation or

documentation is unclear Form is incomplete or improperly completed

Cash Disbursements - Refresher

Common Issues or Exceptions that will delay your check request:

Expense is prohibited or exceeds limits set by IRS, USF or Foundation policy– USF Foundation Policy Committee

Documentation does not explain how expense benefits USF

Missing social security number for payment to an individual

Missing chartfield string for payment to USF Request amount exceeds fund balance

Cash Disbursements - Refresher

What to do if something goes wrong -

Q: What happens if there’s a problem with my payment request?

A: An email will be sent to the initiator explaining the problem and what needs to be done.

Q: I’ve tried these suggestions, waited 2 business days, and I still don’t have an answer. What should I do?

A: Unresolved questions should be escalated up the following chain: Bridgette Morrow, Michelle Cummings, John Scott. Please allow at least two business days for resolution.

However, please determine proper protocol within your own department.

Cash Disbursements – NEW POLICY

Adopting GSA Travel Rates effective 1/1/06 Mileage Reimbursement Rate 44.5 cents Maximum Meals & Lodging Reimbursement Rate will

be based on the GSA rate in that City

www.gsa.gov and click on Per Diem Rates Please note we will still reimburse amount actually

incurred supported by an original receipt UP TO the published GSA rate.

When using GSA rate please include print screen from GSA sight to expedite processing.

Cash Disbursements - Refresher

QUESTIONS?

COMPASS

COMPASS – Depository for Foundation revenue and expenditure policies.

www.usf.edu/compass Click Find Business Process Narrow search for Foundation only policies by

selecting Foundation in Process Category. Narrow search further by selecting a subcategory

such as ‘expenditures’ or ‘forms’. Search Function has been improved.

Ability to email question regarding the policy directly from the compass website to the process owner.

USFFoundationUPDATES ListServ

Interested in USF Foundation policy changes, training opportunities, or a tip that may help process your check request faster? Please subscribe to the USFFoundationUPDATES

ListServ at http://listserv.admin.usf.edu/listserv.wa.exe Follow

the link Access our most popular on-line listserv lists here and scroll down to

USFFoundationUPDATES.

USF FoundationOffice of Business & Financial

Services

Questions?

Customer Service Assessment Survey