Departmental Business Management Guide - Foundation Funds

Contents

• Overview
• University Guidelines
• Internal Controls
• Departmental Responsibilities
• Resources

Overview

The FSU Foundation is a not-for-profit corporation responsible for receiving, investing and administering charitable gifts given in support of the academic mission of the University. The Foundation is a Direct Support Organization (DSO) of the University and serves donors, University staff and students.

Many University departments maintain Foundation funds, which may include general development and/or discretionary funds.

University Guidelines

The Foundation has a fiduciary responsibility to donors to ensure funds are utilized in accordance with the terms and conditions of their gifts, which is the primary limitation on the expenditure of Foundation funds. Generally, Foundation funds may not be expended for any activity or purpose that:

• Jeopardizes the Foundation’s status as a Charitable Organization as defined by the Internal Revenue Code Section 501(c)(3)
• Benefits the campaign of any candidate for public office
• Is intended to influence public legislation, except as directed by the University President
• Is for the personal benefit of an individual
• May involve or create liability exposure for the University
• Does not directly support the University
• Is not considered a customary or reasonable expense incurred while conducting University business
• Fails to meet standards of equity and ordinary prudence in the management of the property of another

All expenditures of Foundation funds require the approval of the Fund Administrator or other person designated on the Fund Transaction Authorization Signature List. Secondary approval may also be necessary depending on the funds involved.

(FSU Foundation Policies & Procedures)

Internal Controls

• Ensure all expenditures of Foundation funds are pre-approved by the Fund Administrator or designee as well as any necessary secondary approver(s).
• Ensure expenditures of Foundation funds are executed in accordance with the terms and conditions of the funds’ donors’ terms and conditions and the Foundation’s policies and procedures.
• Ensure proper segregation of duties between the employee(s) requesting, approving, receiving and reconciling Foundation funds.

Departmental Responsibilities

• Ensuring all disbursement requests utilize the Disbursement Request form and include all necessary documentation as well as written verification that the expenditures have a business purpose, provide a benefit to the University, and also adhere to the fund purpose.
• Ensuring all disbursement requests submitted are originals and include original signatures and original itemized invoices.
• Obtaining supervisory approval for any Foundation funds being paid to a University employee when the nature of the expenditure may be construed to provide a personal benefit to the employee.
• Obtaining dean/director/department head approval for any Foundation fund expenditure of more than $1,000.
• Obtaining the approval of the VP of University Relations for any foundation fund expenditure greater than $25,000.
• Exercising good judgment, reasonableness, prudence and a high sense of ethics in making expenditure decisions.
• Submitting requests for reimbursement to the Foundation Accounting office within 90 days of the transaction.
• Ensuring all required information, as detailed in the Foundation Policies and Procedures, is provided with the specific type of requested funds.

Resources

• FSU Foundation Policies & Procedures
• FSU Foundation Information for Faculty and Staff
• FSU Foundation Internal Business Forms
• Online Foundation Fund Reports (access requires authorization)

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