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
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
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
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
A component of the Business/Accounting Certificate Program
A component of the Business/Accounting Certificate Program
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
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
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
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
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
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
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
Who Handles What?
 Restricted Funds handled by University
Accounting

Endowments

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All other Restricted


Assigned 6-4/0-4,0-6XXXX account
Assigned 5-3/0-3xxxx account
Contact John Straley for Account Questionnaire
A component of the Business/Accounting Certificate Program
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
Role of DGCA

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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
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
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
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
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
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
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
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
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
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
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
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
Case Studies
A component of the Business/Accounting Certificate Program
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
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
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
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
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
Routing and Review
See Flow Chart
A component of the Business/Accounting Certificate Program
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
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
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
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
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
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
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
Case Studies
A component of the Business/Accounting Certificate Program
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
Additional Resources
 Policies and Procedures

University Policies and Procedures-Book 6
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Standards for University Operations

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http://ruweb.rutgers.edu/regulations/contents.html#6
http://ruweb.rutgers.edu/oldqueens/standards.html
ORSP, DGCA, RU Foundation Websites
A component of the Business/Accounting Certificate Program
Additional Resources
 Websites
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ORSP
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DGCA
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http://orsp.rutgers.edu
http://postaward.rutgers.edu/
RU Foundation
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http://support.rutgers.edu/
A component of the Business/Accounting Certificate Program
Additional Resources
 Contact Information
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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