Gifts & Grants What’s the Big Deal?

1. 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

2. 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

3. 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

4. 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

5. A component of the Business/Accounting Certificate Program

6. A component of the Business/Accounting Certificate Program

7. 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

8. 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

9. Sponsored Programs Include • Gifts • Research and/or Research Training • General Purpose and/or conference under the following: • Donor/Sponsor requires financial reporting • Funds received after the event • Funds used to cost-share other funds handled by DGCA • Grants and Contracts • Cooperative Agreements and Other A component of the Business/Accounting Certificate Program

10. 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 purpose • General purpose and/or conference gifts that do not meet the conditions of Sponsored Programs A component of the Business/Accounting Certificate Program

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. Case Studies A component of the Business/Accounting Certificate Program

29. Life Cycle of a Sponsored Program Proposal Preparation Budget Preparation Compliance Requirements Routing and Review Negotiations and Acceptance Managing Programmatic Aspects Managing Award Funding Audits/Record Retention A component of the Business/Accounting Certificate Program

30. 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

31. 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

32. 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

33. 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

34. Routing and Review See Flow Chart A component of the Business/Accounting Certificate Program

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. Case Studies A component of the Business/Accounting Certificate Program

43. 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

44. 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

45. 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

46. Additional Resources • Contact Information • ORSP • http://orsp.rutgers.edu/Staff.asp • DGCA • http://postaward.rutgers.edu/personnel.html • Email: dgca1@rci.rutgers.edu for further assistance or feedback • RU Foundation • http://campaign.rutgers.edu/contacts.html A component of the Business/Accounting Certificate Program