Foundation Accounts

Responsible Office: Binghamton Foundation Administration and Finance 

Policy Type: Binghamton University Foundation

Policy Number: 702

Last Date Revised: 4/29/16


Restricted (Current Use) Accounts – These accounts are fully expendable at all times and are established to receive charitable donations.  These accounts are restricted by the donor for use by the Foundation Board, the University’s School/Department for a specific use or for general support of University activities.  There is a 10% overhead fee on these accounts, assessed quarterly based on deposits to the account, except for direct student aid accounts.  The Binghamton University Foundation is responsible for managing all solicitations on behalf of the University.  University faculty, staff and students may not solicit funds from any constituency without consulting with the Foundation and University Advancement office, as applicable.  All accounts must have a custodian and at least one additional authorized signer.  With approval of the Foundation Accounting Services Department, occasional deposits of other income are allowed into these accounts.  Expenditure guidelines can be obtained by contacting the Foundation Accounting Services Department. The Foundation sends electronically to all report contacts of each account a fiscal year-to-date report within the first 10-12 days of each month. 

Endowment Accounts - Endowment accounts are established to receive charitable donations that will be held in perpetuity as an asset of the Foundation to produce earnings which are distributed according to the Foundation Spending Plan Policy.  There are established contribution minimums based on the intended use of the earnings.  (For additional information, please see the Foundation’s Benefactor Naming of Fund, Position and Programs Policy or contact the Executive Director of the Foundation).  The annual spending plan allocation is to be spent according to the donor gift agreement and if no such gift agreement, then at the discretion of the Foundation.  The annual spending plan allocation is credited to the account’s expendable balance.  Endowment accounts are assessed a quarterly administrative fee.  All Endowment accounts must have a custodian and at least one additional authorized signer. Expenditure guidelines can be obtained by contacting the Foundation Accounting Services Department. The Foundation sends electronically to all report contacts of each account a fiscal year-to-date report within the first 10-12 days of each month. 

University Agency Accounts – The University prohibits departments and offices from having off-campus bank accounts on their own.  University Agency Accounts are available to accommodate the needs of the University if their purpose falls within the Guidelines approved by the Board of Trustees.  According to SUNY Document Number 7000 - Agency Account Guidelines, the University may have Agency Accounts to receive, hold and disburse funds on behalf of students, faculty, staff members or appropriately recognized organizations.  University Agency Accounts are held in custody by the Binghamton University Foundation. These accounts are maintained for University departments, office and related organizations, with the Foundation acting as the custodian.  The Binghamton University Foundation provides bookkeeping and accounting services.  The Foundation charges a 10% overhead fee on total deposits on a quarterly basis.  The Foundation sends electronically to all report contacts of each account a fiscal year-to-date report within the first 10-12 days of each month.  Any questions should immediately be brought to the attention of the Foundation Accounting Services Department.  Under no circumstances should State funds be deposited into a University Agency Account.  The SUNY Board of Trustees’ Guidelines list the types of non-state funds and activities that may be deposited into approved University Agency Accounts.


ESTABLISHING A FOUNDATION AGENCY ACCOUNT

A. Application Form: The first step in establishing an agency account is to complete the application form entitled, “Binghamton University Foundation Agency Account Authorization”. This form can be obtained from the Binghamton University Foundation Office (Administration Building, Room 255), or by emailing a request to jhorton@binghamton.edu or sfults@binghamton.edu , or may be printed on-line:

Printable Agency Account Authorization application: MS Excel document or pdf format

The department, office or organization wishing to establish an account must state the purpose for opening the agency account and designate a custodian of the account.The application must be signed by the custodian and receive proper approval before an account is granted, as explained in detail below. The purpose of establishing an agency account should match one of the purposes in the attached Board of Trustees’ Guidelines (i.e. academic journal, conference, professional association, etc.).
Each account must have at least one additional authorized signer.

B. Approval: Applications for a Foundation agency account must receive approval from one of the following:

1. department chairperson

2. the appropriate Dean or Director

3. the appropriate Vice President

and the Associate Executive Director of the Binghamton University Foundation.

BOOKKEEPING FEE

A. Agency Account Quarterly Fee: Binghamton University Foundation agency accounts are subject to a 10% overhead fee to offset the costs of administering the account. The fee is based on total cash deposits to the account for the quarter. The fee is deducted from the account balance and is recorded quarterly.

USING A FOUNDATION AGENCY ACCOUNT

     A. Deposits: Deposits to an agency account should be made at the Binghamton University Foundation Accounting Services windows in the Administration building, mezzanine floor. A Foundation deposit form (printable below) must be completed and presented with the deposit. A receipt will be provided when such deposits are made. A reason for the deposit must be stated on the receipt to ensure it meets agency account guidelines. Attach any additional documentation to the deposit form.

NOTE: ONLY NON-STATE FUNDS ARE TO BE DEPOSITED IN AN AGENCY ACCOUNT.

Printable Check Deposit Form : MS Excel Document or pdf format

Printable Cash Deposit Form: MS Excel Document or pdf format

Printable Credit Card Deposit Form: MS Excel Document or pdf format

B.  Disbursements: Disbursements from the account should be made by completing a standard Foundation voucher (printable below) and forwarding it to the attention of the Foundation Accounting Office, Administration building, Room 255.

Printable Voucher: MS Excel Document or pdf format

Disbursements from the account must be reasonable and necessary, and exclusively for projects and/or department (office) needs related to the University Center at Binghamton. Under no circumstances may personal, non-University related expenses be processed through an agency account. All disbursements must be supported by proper invoices and all vouchers must be signed by the custodian or authorized signatory of the account.Vouchers paying individuals must also be signed by the payee (at lower left).The signature of the payee’s “designee” will not be accepted.Foundation agency account vouchers which are drawn reimbursing the custodian of the agency account (where there is only one custodian for the account) must also be countersigned by the custodian’s next level supervisor.When an agency account has more than one authorized signatory, such reimbursement requests may be countersigned by the second authorized signatory of the fund.In essence, an individual cannot authorize disbursements from an agency account to reimburse oneself.

Honorarium or independent contractor payments to individuals must have a social security number and a permanent home address before payment can be made.Payments to individuals during a calendar year will be summarized at the end of the calendar year and must be reported by the Foundation to the Internal Revenue Service via a Form 1099.

Equipment purchased from Foundation agency account funds having a probable life of two (2) years or more and a value of $5,000 or more must be appropriately tagged for inventory purposes by Property Control. See Binghamton University Policies and Procedures #401 for guidance.

Purchases made from such accounts are exempt from New York State and local sales tax.A copy of the Foundation sales tax exempt form can be obtained from the Foundation Accounting Office, Room AD-255 (extension 7-4021 or 7-4849).

Requests for reimbursement of travel expenses must be accompanied by a properly completed "Request and Authorization for Travel" form. Requests for reimbursement of travel expenses must adhere to the general State or SUNY Research Foundation guidelines and limitations, with the following exceptions:

1. Actual lodging expenses can be reimbursed over the current State maximum for regular travel, conventions or conferences of established organizations.

2. Actual meal expenses can be paid over the current State maximum for breakfast and dinner.(No reimbursement will be made for lunch expenses when traveling.)

3. The per diem reimbursement rate can be paid at the current State maximum.An individual may follow either the State Method I or Method II, as stated in Travel guidelines, whichever method is the more beneficial to the individual.

4. When an individual is being reimbursed for travel expenses primarily from State or SUNY Research Foundation funds, the difference between the maximum reimbursement amount permitted from either funding source, and the individual’s actual expenses, can be paid from a Foundation agency account.Since original receipts will need to be submitted with the State or Research Foundation voucher, exact copies of the receipts, including a copy of the State or Research Foundation travel reimbursement voucher with the supervisor’s signature (note:it is the custodian’s responsibility to provide an original supervisor’s signature), will be required as supporting documentation for the Foundation portion of the reimbursement.

5. For all travel reimbursements made from Foundation agency accounts to University staff members, the individual employee’s supervisor must sign in approval on the agency account voucher.

Again, it is imperative when requesting payment to an individual, that the Foundation voucher certification be signed (at lower left) by the payee. The signature of the payee’s “designee” will not be accepted.

C.  Monthly Statements: On a monthly basis, approximately 10-15 business days after the month closes, all agency account custodians or their designee, will electronically receive a fiscal year-to-date statement of the account.At the end of every quarter, the administrative bookkeeping fee will be applied and recorded on the statement.Any questions or discrepancies regarding the statement should immediately be brought to the attention of the Assistant Director of Foundation Accounting Services or Senior Director of Administrative Services. For any signature/distribution changes, email to jhorton@binghamton.edu or sfults@binghamton.edu.

D.  Audit: Annually, the Foundation retains an independent Certified Public Accounting firm to conduct a full audit of its records. This audit includes an examination of agency account activity.Custodians will be asked to verify directly to the accounting firm, account balances as of June 30.In addition, agency account activity may be audited by the Office of the New York State Comptroller and the University's Internal Auditor. Consequently, it is imperative that proper documentation in support of expenditures be on file and that the expenditures are exclusively for departmental purposes.

If there are any questions regarding Binghamton University Foundation agency accounts, please contact the Foundation Accounting Services Office.

State University Board of Trustees July 1, 2003 Guidelines :

http://www.suny.edu/sunypp/documents.cfm?doc_id=62

Last Updated: 7/27/16