Vehicle and Types of Collections

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3 Vehicle and Types of Collections Vehicles are the funding sources collected. Cash, Checks, Credit Cards, Stocks, Pledge, In-Kind, Real Estate, Etc. Types are the instruments prompting collections. Gifts, Dues & Memberships, Royalties, Advertising, Special Events, Etc.

4 Source Of Fund (SOF) Commonly referred to as fund, every source of fund has an assigned fund administrator who is responsible for disbursing monies for the purpose intended by the donor. Each source of fund s purpose is detailed in the gift agreement or UFF-A used to setup the fund. Endowed principal, endowed spendable, nonendowed, and operating are the most common sources of funds.

5 Setting up a Fund Nonendowed Fund Endowment Fund Required Documents: Donor Support UFF-A Minimum Criteria: Correspondence between donor, referencing their gift amount and intended fund purpose. This can consist of letters, s, pledge forms, and may include contact reports and on-line submission. (Remember to include a statement addressing transferability of low balances or difficult to use funds) This document services establishing new funds, changes, and closing funds. Gift Agreement (Remember to include a statement addressing transferability of low balances or difficult to use funds) This document services establishing new funds, changes, and closing funds. Life expectancy 2-3 year life expectancy Perpetuity Minimum balance $2,000 minimum balance $30,000 minimum balance

6 Converting a Nonendowed Fund to an Endowment Fund Requests must be received by the 15th of the month to be processed. All steps and corresponding documents should be received as one complete packet. Open New Endowment Fund With: UFF-A and Dean s Letter* Transfer Nonendowment Funds With: UFF-K and Gift List** Close Old Nonedowment Fund With: UFF-A *Dean s Letter ; in lieu of a gift agreement, identifies gift origin/ amount, fund name, purpose and confirms donors have been contacted and approve endowment. **Gift List ; list of gifts, by donor name, ID#, date of gift and amount of gift to be transferred. This list can be obtained in Advance under the nonendowed fund.

7 Fund Purpose This is a brief statement intended to provide guidance for the future use of the funds and provide adequate direction to comply with the donor s intent and advertised purpose the funds were solicited by. Purpose must clearly state a benefit to the University; not to an individual/faculty member.

8 Pre-endowment Available for funds with a balance less than the required $30,000 minimum; subject to Finance & Accounting discretion and approval. Must be invested in endowment pool and receiving earnings allocations. Must have spendable transfers turned off until minimum is reached. Must be available for existing and future funds. See revised UFF Policy #2.19 Endowed Funds and Related Naming Opportunities.

9 Recognition Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor imposed restrictions. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases these net asset classes.

10 Recognition Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulations or by law. No Donor Restriction Contains Donor Restriction Unrestricted Net Assets Temporarily Restricted Net Assets Permanently Restricted Net Assets

11 Receiving Recording Reconciling Receiving Collections are recorded based on the supporting documentation, which can include; solicitation, pledge card, donor letter, appraisal, asset transmittal, etc., which validate the contribution and the associated fund number where it is recorded. Collections may include other revenue (memberships, royalties, special events, etc.). Required Steps: Cash Check Credit Card In-Kind Asset Transmittal (UFF-B) Gift-in-Kind (UFF-P) Receiving Counted, receipted, sealed in a deposit bag, and logged on a daily basis for deposit and future reconciliation. Immediately stamped with For Deposit Only endorsements. A check log must be maintained retain proper records. Processed in a secure room (abide by PCI requirements). A statement is printed detailing credit card transactions processed. Must agree to the total number of deposits. Discussed later. Exceeding $500 Collections received in excess of $500 must be deposited within one business day.

12 Receiving Recording Reconciling Recording Procedures for granting access to cash receipts--gift Processing staff are authorized to access cash/check/credit card receipts. Accounting staff has access to cash/check receipts as part of the bank deposit and reconciliation process. All deposits must be done in a timely manner and appropriately executed. Required Steps: Cash Check Credit Card In-Kind Courier Transport Allowed Recording The sealed deposit bags are delivered to Gift Processing immediately. The deposit information is given to the unit s fiscal staff for review and reconciliation. Checks are handled similarly to cash, but does not require same day delivery. Checks can be placed in specifically identified folders with their transmittals for batch processing. Credit cards are handled similarly to cash. By using the approved credit card terminal, deposits are recorded same day. Redact (card number, expiration date or CVV code) before leaving secure room then cut/shred after batching. Discussed later.

13 Receiving Recording Reconciling Reconciling Segregation of duties amongst employees receiving, recording, and reconciling must exist. Reconciling staff will independently verify the original source documents (i.e. check log) to foundation accounting records to provide accurate accounting records. Develop procedures to obtain and/or document management review of reconciliation. Required Steps: Cash Check Credit Card In-Kind Retained copies (receipts only) (receipts only) Reconciling Unit records should agree to recorded deposits in the Foundation Accounting System (FAS). This will need to be part of a monthly process every unit conducts to meet general University and Foundation guidelines for accounting. Disagreements or discrepancies will need to be communicated as soon as they are discovered to rectify the issue. Discussed later.

14 In-kind (non cash) Evaluating, valuing, and recording non cash contributions could include assets and/or services. When a unit receives a non cash gift, they complete forms UFF B and UFF P. The UFF P requires the staff member at UF that received the gift to sign and date. This is confirmation to UFF that the gift was received.

15 In-kind (non cash) A third party appraisal is recommended for valuation of the contribution. May use other valuation substitutes if approved. The gift will be booked in the Advance system at the appraised amount or $1, if no appraisal is received. The exception is real estate gifts, which must be supported by some form of valuation, an external appraisal, property tax valuation, internal valuation by the Foundation VP of Real Estate, etc. The donor receives a receipt for the item only, with no dollar amount listed. No Appraisal ($1) Appraisal (appraised value) Real Estate (exception)

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