Disbursement Process for
Foundation Spendable Funds
The intent of this presentation is to further
define the roles and processes for the
disbursement of funds by Kent State
University (KSU) and the Kent State
University Foundation (Foundation).
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Disbursement Functions
1.
KSU
2.
Foundation
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Independent Entities
1.
2.
3.
Organization
Governance
Operations
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This project is a partnership to simplify
the disbursement functions for all
participants in the process.
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KSU makes disbursements in
accordance with the policies in the
University Policy Register which have
been approved by the Board of Trustees.
The Foundation provides funding in
accordance with operating policies
approved by its Board of Directors.
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The Foundation provides private
funding for the benefit of Kent State
University.
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Accounts Payable (AP)
The Accounts Payable Department provides services to internal
and external customers such as faculty, staff, students, and
vendors by providing efficient, timely, and accurate information
and payment processing in compliance with Kent State
University’s administrative policy and external regulations.
The Accounts Payable Department administers the following
payment processes:
Payment of Goods and Services
Payment to Independent Contractors
Employee Expense Reimbursements
Purchasing Card Administration
1099-Misc Reporting
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In prior years, both organizations have
operated accounts payable functions and
made payments directly to payees.
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KSU will become the primary accounts payable
function for the university community.
The Foundation will not issue payments to
payees other than KSU, with minor
exceptions. The role of the Foundation will
be to provide funding directly to a unit of KSU
subject to the availability of donor funds.
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The new process will be effective for all
transactions submitted subsequent to the
issuance of a transmittal memorandum.
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Role of KSU
In the New Process
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All requests for disbursement, besides
alcohol, should be submitted to the
KSU’s Accounts Payable Department
for payment consideration.
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
KSU will continue operating under all of its existing
policies and procedures related to the disbursement
function.

The procedural changes do not change any existing
KSU policies.

All requests for payments to KSU Accounts Payable
function must use the appropriate submission method.
It will primarily be the KSU CHECK REQUEST (Check
Request) form.
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
Check Requests which are submitted to KSU must be
complete and will be evaluated in accordance with
existing KSU policies including any applicable
accounting requirements.

One exception is for the funding of alcohol used in an
entertainment function. A request to fund alcohol must
be submitted directly to the Foundation for
consideration.
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
The KSU Check Request form now includes an area
which indicates AP should forward the Check
Request to the Foundation in the event of
nonpayment.

Check Requests for alcohol will not be forwarded.
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Check Request Modification
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The Forwarding Process

If KSU AP cannot pay the item on the Check
Request

And, the forwarding section of the Check Request
form is completed

KSU AP will forward the Check Request to the
Foundation for possible funding under Section D.
of the Foundation policy
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Role of the Foundation
In the New Process
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
The Foundation disburses funds from Spendable
funds.

All Spendable funds are restricted.

Spendable funds are available for immediate use
in supporting KSU and are designated as
discretionary or donor restricted.
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Discretionary
Funds
(Who for ?)
Example: College of Business
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Donor Restricted
Fund
(What for ?)
Example: Scholarships
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Dean’s Activity Fund

Donor Restricted fund for items not qualified for
funding under schedule D.

Fund description must state what type of items are
permitted. (flowers, parties, donations, etc.)

Minimum of $100 to open fund

Limited to gifts from faculty and staff
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Funding can be obtained through two
processes:
1. A forwarded Check Request from
KSU AP
2. A Foundation Funding Request form
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 A forwarded KSU Check Request is for
items KSU AP could not pay.
 The items may qualify for funding from
the Foundation under Section D. of the
disbursements policy.
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Section D.
Allowable items not meeting KSU
disbursement policies.
Foundation may pay even if KSU won’t.
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Outline of Section D. Items
1. Alcohol
2. Membership dues, subscriptions, and licensing
3. Non-profit organizations
4. Social events on or off campus for employees or students
5. Gifts or awards to employees or students
6. Business meals not including a non-university employee
7. Social club membership
8. Specifically permitted by a donor
9.
Exceptions
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The second method is a direct application
to the Foundation using a Funding
Request form.
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The Foundation has historically made
disbursements to both KSU and non-KSU
payees using its own version of a check
request form.
The Foundation is changing the name of
its check request form to FUNDING
REQUEST (Funding Request).
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A Funding Request may be submitted to the
Foundation for three purposes.
1. Funding from a Discretionary fund to a KSU
index
2. Funding from a Donor Restricted fund to a
KSU index
3. Funding for alcohol meeting the requirements
of Section D.
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1. Funding from a Discretionary fund to a KSU index

The new process continues to permit the transfer of
Discretionary funds at any time, to a related KSU
index for an amount up to the available fund
balance.

This purpose requires no documentation other than
the completed Funding Request form.
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2. Funding from a Donor Restricted fund to a KSU index

Donor Restricted funds can be disbursed for items
already paid through the KSU Accounts Payable
function.

The Funding Request form must be supported by a
copy of the KSU Check Request form, but not the
supporting documentation.

The Funding Request must be payable to the KSU
index on which the KSU Check Request was drawn.

Item must meet the fund restriction.
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3. Funding for alcohol meeting the requirements of
Section D.

Under the new process, requests for alcohol to any
payee should be submitted directly to the
Foundation using a Foundation Funding Request.

The Funding Request should include
documentation sufficient to support the request.
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Operating Impact
 No change in amount of funding available
from Foundation
 No change in policies
 Streamlined submission process
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End of Presentation