CR2021 ACCOUNTABILITY OF CONTRIBUTIONS FROM NON-GOVERNMENTAL SOURCES
Systems and Procedures
A Division of The Corporate Controller's Office
IN
Last Revision: 08/05/2022

Procedure CR2021 Accountability of Contributions from Non-Governmental Sources

Process Owner: Director, Treasury Operations

Policy Steward facilitating procedure: Associate Vice President for Finance

Table of Contents:


GENERAL:

All receipts for contributions from non-governmental sources must be promptly processed and categorized. This procedure documents the receipting, processing, and categorization processes for cash, securities, gifts-in-kind, gifts of real estate, scholarships, awards, fellowships, and miscellaneous loan source contributions.

DEFINITIONS:

PROCEDURE:

RECEIPTING REQUIREMENTS:

In accordance with Policy FN01 Cash Revenues and Policy FN03 Substantiation, Disclosure, and Accountability for the Receipt of Contributions from Non-Governmental Sources

For additional information regarding IRS receipting regulations, contact the Donor and Member Services.

PROCESSING AND CATEGORIZATION OF CASH CONTRIBUTIONS:

Regardless of the area accepting the contributions, it is imperative that all cash reach the office responsible for processing or the local depositories as quickly as possible.

The Office of Gift Planning should be contacted before a unit accepts a restricted gift on behalf of the University

Gifts Requiring Special Handling:

Gifts requiring special handling are gifts of cash contributions received by the University that are to be used to fund:

Upon receipt of these types of gifts, the college/campus/business area should immediately contact the Office of Gift Planning for further instructions.

Acceptance of Cash Contributions by Research Office:

Unrestricted Grants:

Acceptance of cash for Unrestricted Grants must be taken immediately to the appropriate college/campus/administrative Research Office (or area designated by the budget executive), along with the corresponding supporting documentation. The Research Office (or designated area) will subsequently prepare a Cash Deposit Journal Entry. Monies will then promptly be forwarded for deposit, as established by the Financial Officer and in accordance with Policies FN01 Cash Revenues, FN03 Substantiation, Disclosure and Accountability for the Receipt of Contributions from Non-Governmental Sources, RA04 Gifts, Grants and Contracts (The Funding Matrix), and Procedure CR2005 Depositing Cash Revenues.

Restricted Grants:

Acceptance of cash for Restricted Grants or checks to be split between gifts and grants must be taken immediately to the appropriate college/campus/administrative Research Office (or area designated by the budget executive), along with the corresponding supporting documentation, including approval of the Quid Pro Quo terms, conditions, or limitations (agreement). The Research Office (or designated area) will subsequently prepare a Cash Deposit Journal Entry. For contributions that are to be split between gifts and grants, the Cash Deposit Journal Entry must identify the separate amounts and account codes to allocate the gifts and grants. Monies will then promptly be forwarded for deposit, as established by the Financial Officer and in accordance with Policies FN01 Cash Revenues, FN03 Substantiation, Disclosure and Accountability for the Receipt of Contributions from Non-Governmental Sources, RA04 Gifts, Grants and Contracts (The Funding Matrix), and Procedure CR2005 Depositing Cash Revenues.

Acceptance of Cash Contributions by the Office of University Development:

Cash accepted by the Office of University Development must be taken to the Development Officer at the campus/college/business area immediately upon receipt.

The respective Development Office staff, depending upon the campus/college/business area, will take the following steps to assure compliance with Policy FN01 Cash Revenues:

Donor and Member Services at University Park:

NOTE: All cash received in Donor and Member Services are to be deposited within 48 hours of receipt (this is a specific exception to University Policy FN01 Cash Revenues requiring daily deposit if $100 or more is received).

When special handling problems occur in Donor and Member Services requiring more than 48 hours, all checks in the amount of $1,000 or more are to be separated from the supporting documents and deposited within the 48-hour period. A photocopy of the front of the check (with account information redacted) should be maintained with the supporting documentation. To prepare the check for deposit:

  1. Verify accuracy of checks:
    • Payee = The Pennsylvania State University or The Pennsylvania State University Philanthropic Fund, as appropriate
    • Date
    • Amount
    • Signature
  2. Match checks to supporting documents (donor card, letter, notes, etc.)
  3. Restrictively endorse checks virtually or by hand, depending upon the use of remote deposit or manual deposit, "For Deposit Only" plus name of bank, Penn State's account number with the depository bank and fund number 9900000028. See Procedure CR2005 Depositing Cash Revenues.
  4. Codify checks, donor cards, letters, corporate matching gift forms, or documents of original data entry.
  5. For batch control, prepare adding machine tapes for data entry of batches to the Alumni/Development data base.
  6. Prepare Cash Deposit Journal Entry, identifying batches. Credit Fund 9900000028, Business Area 6310, GL Account 26005000, Grant Not Relevant.
  7. Deposit cash to an appropriate University depository per existing procedures.
  8. Enter and verify batch input data.
  9. Provide electronic file containing gift data to Mailing Services, for preparation and mailing of gift receipts to donors.
  10. Provide daily electronic reports (via eDDs) of gifts processed to the areas designated to receive the funds.

The Office of Donor and Member Services is also responsible for routing copies of Gift Reporting and Transmittal (GRT) forms and any other relevant information to other University Offices that require it.

At University Park (other than Penn State Public Broadcasting, WPSU TV and WPSU FM):

University Personnel Responsible for Development Activities:

  1. Verify accuracy of checks:
    • Payee = The Pennsylvania State University or The Pennsylvania State University Philanthropic Fund, as appropriate
    • Date
    • Amount
    • Signature
  2. Match checks to supporting documents (donor card, letter, notes, etc.)
  3. Restrictively endorse checks "For deposit only," name of bank, Penn State's account number with the depository bank, and fund number 9900000028. See Procedure CR2005 Depositing Cash Revenues.
  4. Deliver endorsed checks and supporting documentation (donor card, letter, notes, etc.) to Donor and Member Services. Endorsed checks and supporting documentation may be sent via interoffice mail. NOTE: currency must be hand-delivered. DO NOT put cash/currency in the interoffice mail.
  5. Prepare a Cash Deposit Journal Entry crediting fund 9900000028. Business Area 6310, GL Account 26005000, Grant NotRelevant (or Office of Sponsored Programs budget/fund if appropriate), and include the donor name, address and dollar amount.
  6. Prepare a Gift Reporting and Transmittal (GRT) form for all gifts that require this information, per instructions on GURU. The "Purpose" statement of the instructions specifies the situations when this form must be completed. Retain copies of the completed for an all other relevant information.
  7. Make photocopies of all checks with account number redacted.
  8. Assemble cash, GRT (if required), and all other supporting information into a packet, place in an envelop, and deliver to the Financial Officer for deposit.
  9. Prepare acknowledgment of gift per established OUD guidelines.
  10. Forward to Donor and Member Services at University Park:
    • The completed GRT form (if required)
    • Donor card, letter, notes, mailing envelopes, etc. (the document number of the Cash Deposit Journal Entry involved with this deposit/transaction must also be indicated on any support documentation to assist in verification by Donor and Member Services that the money was indeed deposited/credited to the correct budget and fund number)
    • Photocopies of checks with account information redacted (per #7 above)
    • Copies of non-routine acknowledgments (referencing specific names, items, or events)
    • Corporate Matching Gifts forms (when received)
Financial Officer:

Upon receipt of the deposit from the Development Officer, the Financial Officer will:

  1. Review the deposit and supporting documentation for accuracy and make the deposit with the designated depository per Procedure CR2005 Depositing Cash Revenues
  2. Upon deposit the GRT (with related Cash Deposit Journal Entry # indicated) and any supporting documentation is returned to the Development Officer for forwarding to Donor and Member Services at University Park.
Donor and Member Services at University Park:

Donor and Member Services at University Park must:

  1. Codify check copy, donor card, letters, etc., for data input
  2. Enter and verify data to Alumni/Development data base
  3. Provide electronic file containing gift data to Mailing Services, for preparation and mailing of gifts receipts to donors
  4. Provide daily electronic reports (via eDDS [i.e., batch control system reports and lists of gifts processed]) to various units, as appropriate.
  5. Per Policy FN03 Substantiation, Disclosure, and Accountability for the Receipt of Contributions from Non-Governmental Sources, Donor and Member Services must inform the Office of Donor Relations of all gifts and contributions requiring acknowledgment by the President so that the acknowledgment can be completed within five (5) working days of receipt by the University.

Donor and Member Services is also responsible for routing copies of the Gift Reporting and Transmittal (GRT) forms or any other relevant information to those University Offices that may require it.

At Commonwealth Campuses:

University personnel responsible for development activities (Development Officer) will do the following, per Policy FN01 Cash Revenues, on a daily basis:

  1. Verify accuracy of checks including:
    • Payee = The Pennsylvania State University or The Pennsylvania State University Philanthropic Fund, as appropriate
    • Date
    • Amount
    • Signature
  2. Match checks to supporting documents (letter, donor card, notes, etc.)
  3. Restrictively endorse checks "For Deposit Only" plus bank name, Penn State's account number with the depository bank and Fund 9900000028
  4. Prepare a Cash Deposit Journal Entry, crediting Fund 9900000028, Business Area 6310, GL Account 26005000, Grant NotRelevant (or Office of Sponsored Programs budget/fund if appropriate), and include donor name, address, and dollar amount
  5. Prepare a Gift Reporting and Transmittal form
  6. Deliver cash to the Financial Officer, in a locked deposited bag for deposit, in accordance with Procedure CR2004 Accountability for Transfer of Items of Value (Except Equipment). Acknowledge receipt of all gifts per established OUD guidelines. Forward to Donor and Member Services at University Park the Corporate Matching Gift forms (when received)
Financial Officer:

Upon receipt of the locked deposit bag from the Development Officer, the Financial Officer will:

  1. Make the deposit per Policy FN01 Cash Revenues.
  2. Upon deposit, the Gift Report and Transmittal GRT (with related Cash Deposit Journal Entry # indicated) and any supporting documentation must be returned to the Development Officer for forwarding to Donor and Member Services at University Park.
Donor and Member Services at University Park:

Upon receipt of all information from campuses other than University Park, the Donor and Member Services is responsible for:

  1. Routing copies of GRT forms and all other relevant information to other University Offices that require it.
  2. Per Policy FN03 Substantiation, Disclosure, and Accountability for the Receipt of Contributions from Non-Governmental Sources, Donor and Member Services must inform the Office of Donor Relations of all gifts and contributions requiring acknowledgment by the President so that the acknowledgment can be completed within five (5) working days of receipt by the University.

At Penn State Public Broadcasting, WPSU TV and FM:

Personnel Responsible for Development Activities

Personnel responsible for development activities must:

  1. Verify accuracy of checks:
    • Payee = Penn State Public Broadcasting, or WPSU TV, or WPSU FM
    • Date
    • Amount
    • Signature
  2. Match checks to supporting documentation (donor card, letter, notes, etc.)
  3. Restrictively endorse checks "For Deposit Only" plus name of bank, Penn State's account number with the depository bank and fund number 9900000028 (see Procedure CR2005 Depositing Cash Revenues)
  4. Prepare a Cash Deposit Journal Entry, crediting 9900000028, Business Area 6310, GL Account 26005000, Grant NotRelevant
  5. Deposit cash and deposit slip with the designated depository bank or the Bursar, per Policy FN01 Cash Revenues
  6. Enter the gift information into the appropriate Alumni/Development gift application
  7. Maintain copies of gift documentation in accordance with the University's gift and financial records retention policies. See Policy AD35 University Archives and Records Management for details
  8. Forward Corporate Matching Gift forms (when received) to Donor and Services at University Park
Donor and Member Services at University Park:
  1. Provide electronic file containing gift data to Mailing Services, for preparation and mailing of gift receipts to donors.
  2. Per Policy FN03 Substantiation, Disclosure, and Accountability for the Receipt of Contributions from Non-Governmental Sources, Donor and Members Services must inform the Office of Donor Relations of all gifts and contributions requiring acknowledgment by the President so the acknowledgment can be completed within five (5) working days of receipt by the University.

At the College of Medicine and Penn State Health:

Personnel responsible for development activities must:
  1. Verify accuracy of checks
    • Payee = The Pennsylvania State University or The Pennsylvania State University Philanthropic Fund, as appropriate
    • Date
    • Amount
    • Signature
  2. Match checks to supporting documents (donor card, letter, notes, etc.)
  3. Restrictively endorse checks "For Deposit Only" plus name of bank, Penn State's account number with the depository bank, and designated account and fund number
  4. Checks will be deposited by the College of Medicine or Penn State Health, as applicable
  5. Prepare a Cash Deposit Journal Entry, crediting the appropriate internal order and include donor name and dollar amount
  6. Enter the gift information in the Alumni/Development Information System in order to generate the receipt.

PROCESSING AND CATEGORIZATION OF NON-CASH CONTRIBUTIONS:

The Office of Gift Planning should be contacted before a unit accepts the gift of a restricted non-cash contribution on behalf of the University

Securities:

The Office of Gift Planning coordinates the acceptance of all gifts of securities on behalf of the University and works with the Office of the Corporate Controller to place valuations on all gifts. Gift Reporting and Transmittal (GRT) forms (or equivalent) are prepared by the Office of Gift Planning for all security gifts and submitted to Donor and Member Services for gift recording and acknowledgment.

Appreciated Securities:

Donor wishing to donate appreciated securities to the University should be directed to the Office of Gift Planning to ensure the name and number of shares being provided by the donor are properly identified and registration of the gift occurs.

Receipt of contribution of securities will be issued by Donor and Member Services. The office initially receiving the stock certificate and the stock power does not issue a receipt.

Securities Received via Mail:

The mailing envelopes MUST BE SAVED and provided as proof of the date the gift was received for IRS regulations. Forward all materials (with the certificate and the stock power in separate envelopes) to the Office of Gift Planning.

Hand-delivered Securities:

If a donor hand delivers the certificate and stock power, create a signed memorandum confirming:

Provide the donor with a copy of the signed memorandum and send the securities to the Office of Gift Planning using one of the following methods:

Sending Securities to Office of Gift Planning:

At University Park, hand deliver or forward all materials (with the certificate and stock power in separate envelopes) via interoffice mail to the Office of Gift Planning.

At Commonwealth Campuses, forward all materials (with the certificate and stock power in separate envelopes/mailings) via overnight mail (FedEx or UPS) to the Office of Gift Planning, 103 Innovation Boulevard, Suite 214, University Park, PA 16802.

The unendorsed stock certificate is not negotiable without the signed stock power, and the signed stock power is worthless without the stock certificate. The separate envelopes protect the donor against security theft.

When the Office of Office of Gift Planning receives securities they will:

Office of the Corporate Controller:

The Office of the Corporate Controller will:

Donor and Member Services at University Park:

Donor and Member Services at University Park must:

Savings Bonds:

The University is not able to accept Savings Bonds, Series E, H, EE, and HH Bonds.

Gifts-in-Kind:

The Office of Gift Planning should be contacted to determine the viability of a gift-in-kind before a unit accepts the gift on behalf of the University. Gifts-in-kind are non-monetary items of tangible personal property such as art, collectibles, books, equipment, inventory and other physical assets or materials that represent value to The Pennsylvania State University.

Personnel Responsible for Development Activities (all colleges/administrative areas/campuses):

Donor and Member Services at University Park:

Donor and Member Services at University Park will:

The Office of Gift Planning:

The Office of Gift Planning will:

Assistant Treasurer:

The Assistant Treasurer will:

Property Inventory Department:

The Property Inventory Department will:

Gifts of Real Estate:

For all gifts of real estate, the Office of Gift Planning must be involved in any communication or negotiation with the donor. The Office of Gift Planning will coordinate the involvement of other University offices required in real estate transaction (Office of Physical Plant, Real Estate Office, Risk Management, Finance & Business, etc.). If the gift is acceptable to the University, the Office of Gift Planning will handle formal acceptance, as well as preparation of the GRT form.

A gift of real property will be subject to the following requirements:

Mortgaged real property may not be accepted. Donors who own mortgaged real property should be encouraged to pay off or transfer the mortgage before making the gift.

PROCESSING AND CATEGORIZATION OF SCHOLARSHIPS, AWARDS, FELLOWSHIPS, AND MISCELLANEOUS LOAN SOURCES:

Restricted Scholarships, Awards, Fellowships, and Miscellaneous Loan Sources:

In accordance with Policy FN03 Substantiation, Disclosure, and Accountability for the Receipt of Contributions from Non-Governmental Sources contributions for restricted scholarships, awards, fellowships, and miscellaneous loan sources must have the Quid Pro Quo terms, conditions, or limitations approved by the University before accepting the funds. Upon approval of the Quid Pro Quo agreement, such awards must be promptly forward to the Office of Development, with all supporting documentation for processing.

Unrestricted Scholarships, Awards, Fellowships, and Miscellaneous Loan Sources:

Contributions for unrestricted scholarships, awards, fellowships, and miscellaneous loan sources must be taken to the Office of Development, along with all supporting documentation for processing.

For gifts to established University scholarships, awards, fellowships, and loan fund sources, the deposit will be to the Gifts Fund (Fund 9900000028, GL Account 26005000, business Area 6310, Grant=NotRelevant). Funds will be transferred to the appropriate internal order once the gift has been recorded by donor and Member Services. Transfer occur nightly through a automated Journal Entry initiated by Development.

For gifts for proposed scholarships, awards, fellowships, and loan fund sources, deposits will be to the Gifts Fund (Fund 9900000028, GL Account 26005000, Business Area 6310, Grant=NotRelevant). Funds are transferred to the appropriate internal order once the Guideline Agreement has been executed and required gift or pledge commitment recorded by Donor and Member Services.

When the deposit is made, all supporting material and a copy of the front and back of the check are returned to the Director of Development, who will in turn forward the information to Donor and Member Services at University Park. The Cash Deposit Journal Entry number involved with this deposit/transaction must also be indicated on the documentation to assist in verification by Donor and Member Services that the money was indeed deposited/credited to the correct gifts account (refer to Policy FN09 Scholarships, "Processing Scholarships/Award/Grant Monies" section for information concerning further processing of University scholarships.)

For outside scholarships (defined as having no University guidelines for awarding, but identifying a specific student recipient), the deposit must be to General Ledger Account 26004500, Business Area 5210, Fund 9657999003. Outside scholarships are overseen by the External Awards team in the Bursar's Office.

VIOLATIONS:

Violations of a financial policy and/or procedure should be reported to your supervisor, your Human Resources representative, unit manager, and/or office responsible for the policy and/or procedure. Where those resources are inadequate, you may choose to make an anonymous report through the Penn State University hotline by calling 1-800-560-1637.

AUDIT COORDINATION - FINANCIAL AND PROCEDURAL:

The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Auditing when audits are being performed in the administrative area. Audits pertaining to sponsored activities or other audits performed by external auditors may also be performed. The Financial Officer is also be responsible for working with the external auditor and/or a central University office related to these procedures.

UNIVERSITY RECORDS RETENTION AND DISPOSITION:

University Records retention must be managed in accordance with Policy AD35 University Archives and Records Management, and retention schedules approved by the Records Management Advisory Committee, the Office of General Counsel, and Vice President for Administration. These records retention schedules are derived from - or based upon - federal, state, and local statutes or regulations, University Policy, industry standards, and business needs. All University Records must be maintained in such a manner to provide ease of access, establish a suitable audit trail for all transactions, and to be reviewed prior to disposition.

Upon completion of the retention period, University Records must be disposed of via secure destruction or transfer to University Archives, unless an exception to the disposition process set forth below applies. If the disposition method for University Records states "Review by Archives" on the records retention schedule, the employees responsible for those records should consult the University Archivist for a final determination of disposition. For University Records that must be securely destroyed, units may arrange for shredding services by either contacting the Blue/White Shredding Program or the Inactive Records Center.

Exceptions to the disposition process are as follows:

To safeguard the privacy of individuals, records that contain Personally Identifiable Information (PII). as defined in University Policy AD53 Privacy Policy, or student records, as defined in University Policy AD11 Confidentiality of Student Records, must be destroyed beyond recovery. For additional information regarding privacy and the protection of an individual's personal information, see Policy AD53 Privacy Policy.

Additional questions may be directed to the Records Management Program.

EXHIBITS:

There are no exhibits associated with this procedure.

CONTACT INFORMATION:

For questions, additional detail, or to request changes to this procedure, please contact the Associate Controller within the Office of the Corporate Controller

CROSS REFERENCES:


PROCEDURE STATUS:

DATE APPROVED:

August 5, 2022

MOST RECENT CHANGES:

REVISION HISTORY: