Foundation Funds-General Information
Revised November 17, 1999
Table of Contents
The University has policies and procedures relevant to all funds. In general, all checks made payable to Kansas State University or any administrative unit thereof must be deposited into an appropriate fund with the state treasury through the University Cashiers. Private donations, gifts, or bequests are handled through the KSU Foundation. The KSU Foundation has been designated as the official gift receiving agency for Kansas State University.
Whenever departments receive funds that represent reimbursement for services provided or payment for goods purchased, these funds must be deposited into the state treasury. Under Kansas Statute (K.S.A. 75-4215), the University is required to deposit daily into the state treasury all fees, tuition and charges of any nature. The latter category includes payment for sales of goods and services or reimbursement for specific expenditures made by the University. In summary, whenever we agree orally or in writing to provide goods or services financed by University funds, reimbursement must be deposited into the appropriate account using standard receipt procedures.
Funds given to support specific sponsored activities or other sponsored projects for which the donor anticipates receiving specific outcomes must be deposited into the state treasury.
K.S.A. 76-724 gives authority for the University to receive private donations, gifts, or bequests and to spend them in accordance with terms or conditions imposed by the donor. The Kansas State University Foundation is authorized under K.S.A. 76-156a to act as the investing agent for any endowment or bequest to the University.
All receipts into a departmental Foundation account are to be documented. This documentation is to include the name of the payee and the reason for the receipt, and this information is to be maintained in the department's records.
All checks that are received payable to Kansas State University must be deposited through the Cashier's Office (Room 212 Anderson Hall). If it is clear that these funds are an endowment or bequest and should more appropriately be managed by the KSU Foundation the checks should be accompanied by written evidence of this intent. No deposit slip is required for these checks. Upon receipt of the check and documentation, the Cashier's Office will deposit the check made payable to Kansas State University and issue a replacement check payable to the KSU Foundation. This replacement check will be sent back to the department. The department should then forward this check to the KSU Foundation along with any additional documentation required for proper administration of the donation, gift, or bequest.
Departments need to maintain copies of invoices and supporting documentation for all expenditures out of a Foundation account for their records and for audit purposes.
Whenever an employee of the University receives any salary or compensation from funds held by the Foundation, the amount necessary to cover salary and fringe benefits is to be transferred from the Foundation to an appropriate University restricted fees account for payment. The payment will be handled as a restricted fees transaction through the standard University payroll process.
Expenses for an honorarium or other taxable service which represents income to a recipient needs to be documented and the tax identification or social security number of the recipient included with the request for distribution of Foundation funds.
Purchases made with departmental Foundation funds are for the direct use of the University department. Items purchased with Foundation departmental funds are considered University property and items that have a value of $500 or more need to be added to the University inventory in accordance with Chapter 6510 of the Policy and Procedures Manual. The disposition of items purchased with Foundation funds needs to follow procedures outlined in Chapter 6510 of the Policy and Procedures Manual.
All loans involving Foundation funds should be issued through normal Foundation or University procedures instead of through the use of departmental Foundation accounts. Loans are legal obligations and must comply with State and Federal regulations. If loans are issued through departmental Foundation accounts, the promissory note needs to be reviewed by the Office of General Counsel to ensure the validity of the note.
In accordance with Chapter 6510 of the Policy and Procedures Manual, gifts or grants of property must be approved by the appropriate department head and their dean or director, before the property is accepted. Property gifts should be reported to the Controller's Office with the new DA-83 form, Changes to Inventory Records.
If the gift will impose a significant fiscal obligation of $50,000 or more, the gift must be reviewed by the Board of Regents prior to the acceptance of the gift pursuant to K.S.A.76-724. Please contact the Office of the Chief Financial Officer for more information.
Any questions regarding this chapter should be referred to Assistant Controller for Cashiers and Loans, (785)532-6204.