Foundation FundsFoundation Funds jbarber32 Fri, 06/08/2012 - 14:36
Expenditure of GTF FundsExpenditure of GTF Funds
As with the use of any GIT funds, faculty and staff are to use prudence and good business judgment with the use of GTF funds. Unit management is responsible for assuring the funds are used properly and has the responsibility and accountability for the use of funds consistent with all gift requirements, GIT and GTF policies and procedures, and applicable state and federal laws.
Signature approval of financial documents (purchase orders, travel requests, and direct pay vouchers, etc.) is necessary to indicate that an expenditure of GTF funds is consistent with any applicable restrictions imposed on the specific funds being used and with the purpose and mission of the Institute, and that adequate funds are available in the designated account(s). The approver must be an authorized individual who is knowledgeable of account restrictions, GTF and GIT Gift Accounting procedures.
Expenditures processed through GIT
Business transactions financed by GTF funds are to be processed through GIT in accordance with general business practices and processes. GIT purchasing and expenditure policies and procedures are to be used for these purposes. Expenditures supporting Institute activities that are not permitted with the use of State funds, such as entertainment or special events, certain business meetings, membership dues and some employee moving expenses may be paid directly by GTF. Exceptions to this policy may be requested by the unit’s school chair, dean or vice provost, with the approval of the provost, executive vice president for administration and finance or the president. Exception requests need to be preauthorized and must be obtained using a Foundation Expenditure Exception Request Form (see links to the Word and PDF forms below). Expenditure documents for these expenses are to be submitted directly to the Foundation for processing.
Expenditures processed through the Georgia Tech Foundation
Requests for direct expenditures to be made by the Foundation are to be submitted on the Georgia Tech Foundation Check Request form and be supported with appropriate documentation, itemized receipts and original invoices. Signature approval will include a certification by the approver that the expenditure is for Institute business and consistent with the purpose and conditions of the underlying gift. Invoices and requests for reimbursement should be submitted on a timely basis and within the fiscal year in which the expenses were incurred. The check request with documentation is sent to GTF at Mail Code 0182.
Unless permissible for payment by GIT under GIT policies, the following types of transactions may be submitted for direct payment by GTF. All other transactions must be processed through GIT.
- Business Meetings and Events
See "Business and Finance 126.96.36.199 Procurement of Group Meals for Employees, Students, and Official Visitors"
- Employee Moving Expenses
See also refer to Personnel
- Entertainment and Special Events
- Facility Rental
- Membership Dues
- Other Transactions with approved Foundation Expenditure Exception Request form attached.
Project Expenditure Reports
Project expenditure reports generated by reflect financial activity recorded to both GIT and GTF records. The transaction details and amount of GT Foundation direct expenditures will be reported to the Controller’s Office and GTRI Accounting on a regular basis for entry into the GIT and GTRI accounting system as "Other Memo" expenditures to provide account managers with financial reports that reflect total project costs. Project expenditure and budget reports for these accounts are available on the Web.
Georgia Tech Foundation Account NumbersGeorgia Tech Foundation Account Numbers
This procedure is to be used to establish a new sponsored project in the accounting records of the Georgia Institute of Technology (GIT) where the Georgia Tech Foundation (GTF) is the sponsoring entity. Effective February 1, 1999, all business transactions financed by GTF funds are to be processed through GIT in accordance with generally accepted business practices and processes, therefore, a GIT sponsored project is to be established for GTF awards. For additional information, see Processing and Use of Georgia Tech Foundation Funds(Georgia Tech Policies And Procedures-Business and Finance) for a complete description of the policies and procedures for Solicitation, Acceptance and Expenditure of Georgia Tech Foundation Funds.
The Office of Grants and Contracts Accounting is charged with the establishment of sponsored projects in the Chart of Accounts and the accounting records of the Georgia Institute of Technology upon receipt of properly completed GTF Gift Request Form from the Foundation.
Upon receipt of a gift or budgetary allocation, the Georgia Tech Foundation will establish a GTF account number for the funds. GTF will transmit the account number, dollar amount, restricted use of the funds, and any effective or expiration dates for the funds to the Office of Grants and Contracts Accounting, or to GTRI Accounting for awards to GTRI units, using the Gift Transmittal Form. All funds reported on this form will be budgeted in the "Other Memo" category. If specific budget details are required, the budget information should be entered on the second page of the Form (back of the Form) using the spaces provided The authorization should be approved by authorized personnel at the Georgia Tech Foundation.
When gifts and/or awards are received initially by the operating units, a Gift Transmittal Form should be prepared by the unit and forwarded directly to the Foundation with all supporting documentation. Requests received by the Office of Grants and Contracts Accounting without a properly completed Gift Transmittal Form will be forwarded to the Georgia Tech Foundation for action.
The unit responsible for management of the account will be notified by G&C or GTRI Accounting of the GTF Foundation account number, the GIT sponsored project account number and center numbers, which have been assigned to the project. This notification will also identify the available funding (budget), and any restrictions associated with the use of funds that are reported by the Foundation.
Changes in a sponsored account budget will follow the same procedures as those for changes to other sponsored project budgets. GTF will notify G&C or GTRI Accounting of any additions or reductions in funding. Upon completion of processing the required changes, the managing department will be notified of the revised budget.
Sub-Projects that are required by the managing units should be established using Grants and Contracts: Establishing Sub-Projects.
GiftsGifts jbarber32 Fri, 06/08/2012 - 16:24
Distinction Between Gifts and Sponsored ActivitiesDistinction Between Gifts and Sponsored Activities
Contributions to GIT must be distinguished from private support, which creates a contractual obligation on the part of the Institute. Generally, funds received for the benefit of the Institute may be classified as "Gifts", "Grants and Sponsored Agreements" or "Contracts" as described below.
Gifts represent contributions made for which the provider receives no direct benefit and requires nothing in exchange beyond a general assurance that the intent of the contribution be honored. Contributions which are considered "Gifts" should be made to Georgia Tech Foundation, Inc. and accepted and processed as provided for in this document. The following guidelines are to be used to determine if a proposal will result in a "Gift" to the Institute: Key indicators include:
- No contractual requirements are imposed
- The award is irrevocable
- No period of performance is specified
- No formal financial reporting to donor is required
- No requirement to return unexpended funds
- Funds are donative in nature and bestowed voluntarily without expectation
Grants and Sponsored Agreements
Grants and Sponsored Agreements Accepted by Georgia Tech Foundation
Grants and Sponsored Agreements represent awards that have a defined activity to be undertaken with the support provided, with an outcome that either directly benefits the provider or a public purpose. Grants and Sponsored Agreements, or contributions made for a specific project of the Institute, may be received and accepted by GTF if:
- the grant agreement names GTF as grantee, and
- the obligations of the Foundation under the grant agreement are limited to
- expenditure of the funds for the described purpose at the request of GIT, and
- reporting on the expenditure of funds to the donor, but not the status or progress of any project.
GIT procedures require that Grants and Sponsored Agreements awarded to GTF be administered by Grants and Contracts Accounting (or GTRI Accounting for awards to units of GTRI) in the same manner as other sponsored projects. GTF will not accept funds sponsored directly or indirectly by the Federal Government.
Grants and Sponsored Agreements Accepted by Georgia Institute of Technology
If the Grant or Sponsored Agreement is sponsored directly or indirectly by the Federal Government, requires cost-sharing, or requires support in excess of the grant amount, the Grant or Sponsored Agreement must be awarded to Georgia Institute of Technology (GIT) and administered by the Office of Contract Administration. The following guidelines will determine whether a proposal would result in a Grant or Sponsored Agreement to GIT:
- The award carries terms on the use of funds
- The sponsor may retain authority to withhold funds pending satisfactory completion of project objectives
- Unused funds must be returned to the grantor unless waived, in writing, by the sponsor
- Formal financial accounting may be required
- Periodic payments may be made by the sponsor
- Generally, subject to specific restrictions and contingencies
Contracts and Other Agreements with Special Term and conditions.
The acceptance of funds under circumstances which entitle the sponsor to deliverables and/or intellectual property rights, or under which anything of value is conveyed to the sponsor, will create a "Contract" which must be processed through the Office of Contract Administration. Contracts can not be processed through the Georgia Tech Foundation. The operating procedures of the Office of Contract Administration include features designed to address these requirements, and assure compliance with the terms of such agreements. All contracts must be made with the Georgia Tech Research Corporation (Georgia Tech Applied Research Corporation for GTRI contracts) and administered by the Office of Contract Administration. The following guidelines are suggested for determining whether a proposal will result in a "Contract" with the Institute:
- The award is subject to formal conditions outlined in a contractual instrument signed by both parties
- The sponsor often places more restrictions upon expenditures allowed in the pursuit of the activity
- Normally involves the generation of some tangible product or service
- Financing may be on a cost-reimbursable basis, advance funding, or lump-sum payments as work progresses
- Sponsor requires periodic progress reports and may include invention, royalty, financial or equipment inventory reports
- A closing audit is sometimes required
Facilities & Administrative Costs Associated with Account ManagementFacilities & Administrative Costs Associated with Account Management
Facilities & Administrative (Indirect) costs incurred to manage gifts to the Institute are supported by the Institute budget and are not charged to the gift accounts. In recognition of the additional support services required to manage sponsored projects and contracts managed through the Office of Contract Administration, Facilities & Administrative (Indirect) costs are charged to the project operating costs. In certain instances, requests to waive charges for Facilities & Administrative (Indirect) costs are considered by the Vice-Provost of Research according to OSP Policies & Procedures. Refer policy no 45 of this manual.
Gift ProcessingGift Processing
Gifts of Cash or Securities
All checks or securities intended as donations to Georgia Tech and payable to Georgia Tech Foundation, Inc. should be forwarded with the original letter from the donor and a completed GTF Gift Request Form, if applicable promptly to the Georgia Tech Foundation, Inc. All checks or securities payable to the Institute should also be forwarded to the Georgia Tech Foundation, Inc., which will then process them for deposit by the Institute. Contributions intended for the Foundation but made payable to the Institute or one of its units may be transferred to the Foundation on receipt of written documentation of the donor's intent. No attempt should be made to deposit a check to any entity other than the Payee. Under no circumstances should a check be modified to change the Payee.
Contributions of securities should also be made to the Georgia Tech Foundation, Inc., either by transfer via DTC (Depository Trust Co.) or transfer of the actual stock certificates to the Georgia Tech Foundation, Inc. Transfer via DTC is the most efficient and preferred method of handling transfers of securities. Questions pertaining to the transfer of securities should be directed to the Georgia Tech Foundation Accounting Office.
In-Kind Gifts of Equipment & other In-Kind Contributions
Gifts of equipment and in-kind contributions are more effectively handled by the Institute. Such gifts include donations of: (a) instructional and research equipment and (b) books and other library materials. The Office of Development’s Gift Accounting Office should receive all documents regarding gifts of equipment and in-kind contributions, including the original letter of transmittal, as well as tax forms and other documents requiring signatures.
The Board of Regents (BOR) has delegated the acceptance of gifts of property (equipment and in-kind contributions) to the President of the Institute who has in turn delegated that responsibility to the Executive Vice President for Administration and Finance.
Donations of in-kind gifts, such as instructional and research equipment, library books, and other library materials, should be made to the Georgia Institute of Technology. The department receiving the gift is responsible for forwarding the gift information to Office of Development’s Gift Accounting Office using the In-kind Gift Report Form.
The Office of Development’s Gift Accounting Office will record the gift information in their database, acknowledge the gift and forward the gift information to the Business Office and the Capital Asset Accounting Services for recording in their database. The department/campus unit receiving the gift is responsible for ensuring that the entire gift pledged is actually received. If, for some reason, a portion of the gift is not received, the department should notify Office of Development’s Gift Accounting Office and Accounting Services so that inventory valuation records may be updated reflecting the revised value of the gift. Accounting Services will notify the President's Office, Administration and Finance.
NOTE: Gifts of Visual Art are governed by Policy No. xxxxxx (# to be assigned, when policy written)
Gifts of Real Estate
Gifts of real estate should generally be made to GT Foundation. The Real Estate Committee of the Foundation will examine any proposed gift of real estate to determine whether there are any conditions that may adversely affect the Foundation's ability to market the property. The Committee usually requires an environmental audit (including inspections for soil and water contamination, asbestos and other hazardous materials or substances) and a title examination to be conducted prior to acceptance of the gift. For more information about accepting a donation of real estate, contact Gift Planning in the Office of Development at (404) 894-8812.
Federal income tax regulations require that a donor obtain a written appraisal to substantiate gifts of property worth $5,000 or more. Gifts of property will generally be valued based on the donor's appraisal.
Solicitation of GiftsSolicitation of Gifts
Philanthropic support from private sources, i.e. individuals, corporations, foundations, and other organizations, is becoming increasingly important to the continuation of the quality instruction, research, and service functions that are a trademark of the Georgia Institute of Technology. The Office of Development is charged to secure private support to meet the Institute’s strategic goals and objectives.
All Vice Presidents, Deans, School Chairs, Department Directors, faculty, and staff initiating efforts to obtain gifts or private, non-contractual grants must coordinate their efforts with the Office of Development through their respective assigned Development Officer or, where none is assigned, through the Office of the Vice President for Development. Such coordination must begin before making formal contact with a new funding source and will continue on a regular basis after initial contact is made.
Prior to the formal submission of written proposals to private funding sources, the submission should be cleared through the Office of Development.
The Office of Development is responsible to ensure proper acceptance of gifts to the Institute and its affiliated organizations that receive private gifts for the benefit of Georgia Tech, including the Georgia Tech Foundation, Inc. and the Alexander-Tharpe Fund. Private gifts include gifts of equipment and other property as well as cash and securities. Acceptance of most gifts will be routine; however, gifts which may obligate the Institute beyond the approved budget or program of a College, School, or Department should be discussed in advance with the Vice President for Development. The following are NOT considered charitable gifts and are not to be accepted as such.
- Advertising revenue;
- Contract revenues;
- Contributed services;
- Gifts of intellectual property rights;
- Governmental funds, whether local, state (including state matching grants), federal or foreign;
- Investment earnings on gifts, even if accrued during the reporting period;
- Sale of merchandise;
- Software licenses where the Institute is exempted from paying annual license or maintenance fees;
- Tuition payments.
All gifts to Georgia Tech and its affiliated organizations will be acknowledged by the Vice President for Development or his designee. Other acknowledgments are strongly encouraged. Copies of receipts/acknowledgments will be posted in the Donor Database System.
It has been the policy to encourage donors to make gifts designated for academic purposes, excluding gifts of equipment and in-kind contributions, to the Georgia Tech Foundation, Inc., rather than to the Institute proper. Therefore, anyone soliciting support for the programs at the Institute should request that the donation be made to Georgia Tech Foundation, Inc. rather than to the Institute. Gifts of equipment and in-kind contributions are more effectively handled by the Institute. Such gifts include donations of: (a) instructional and research equipment; and (b) books and other library materials. The Gift Accounting Office in the Office of Development should receive all documents regarding gifts of equipment and in-kind contributions, including the original letter of transmittal, as well as tax forms and other documents requiring signatures. In addition, the Gift Accounting Office in the Office of Development should be informed when a GT unit accepts a software license for stewardship and reporting purposes, even when the software license does not qualify as a gift under IRS regulations or CASE (Council for the Advancement and Support of Educations) standards.
Setting up Accounts for GTF FundsSetting up Accounts for GTF Funds
This procedure is to be used to establish a new sponsored project in the accounting records of the Georgia Institute of Technology (GIT) where the Georgia Tech Foundation (GTF) is the sponsoring entity. Business transactions financed by GTF funds are to be processed through GIT in accordance with generally accepted business practices and processes, as provided in these procedures.
Upon receipt of a gift or budgetary allocation, the Georgia Tech Foundation will establish a GTF account number for the funds. GTF will transmit the account number, initial dollar amount, restricted use of the funds, and any effective or expiration dates for the funds to the Unit and to the Controller’s Office or to GTRI Accounting for awards to GTRI units using the GTF Gift Request Form. All funds reported on this form will be budgeted in the "Other Memo" category. If specific budget details are required, the budget information should be entered on the second page of the Form using the spaces provided.
The Controller's Office and GTRI Accounting are charged with the responsibility of establishing sponsored projects in the GIT Chart of Accounts, the Grants and Contracts accounting system and GTRI accounting subsystems, and the preparation and maintenance of accounting records and financial reports for these accounts. Upon receipt of account information from GTF, the Controller's Office determines the type of account to establish and assigns a sponsored account number and general ledger account center number within the numbers assigned for the unit requesting the account. The account number is then submitted electronically for review and update to the Chart of Accounts. The budget for the project will be established in the "Other Memo" category unless specific information is provided on the second page of the Form in detail.
The unit responsible for the account and GTF are notified by the Controller's Office or GTRI Accounting of the sponsored account and center numbers, which have been assigned to the project, the available funding (budget), and of any restrictions associated with the use of funds.
Changes in an account budget will follow the same procedures as those for changes to other sponsored project budgets. GTF will notify the Controller's Office or GTRI Accounting of any additions or reductions in funding.
Sub-Projects that are required by the managing units should be established using the procedure in: "Establishing Sponsored Sub-Project Numbers".
Using GTF Funds - General Policy StatementUsing GTF Funds - General Policy Statement
The use of all funds held by the Georgia Tech Foundation (GTF) must be in accordance with the restrictions or intent of the donor and with Georgia Institute of Technology (GIT) policies and procedures. GTF funds intended to benefit a function of GIT(instruction, research, service, and supporting functions) are to be recorded on Institute financial records. All transactions financed by GTF funds are to be made through GIT in accordance with generally accepted business practices and procedures except where there are specific prohibitions on the use of Institute funds, or when prior approval of individual transactions has been received from the Office of the President. These standard operating procedures are designed to minimize costs and duplication, and to enhance accountability.