PURPOSE: Provide clarification on how to properly record certain miscellaneous deposits received by departments.
BACKGROUND: To improve consistency with processing departmental deposits, the following guidance has been developed. In order to determine the correct way to handle these receipts, departments must look to what the funds actually represent (award, grant, or other revenue) and the source of those funds.
The University’s Placement of Funds Policy (Policy 7A-17) establishes which entity within the University will administer awards from different types of sponsors. The Division of Sponsored Research is responsible for administering contracts, grants, and other types of agreements for research and development which are funded with public funds. The FSU Research Foundation is responsible for administering awards funded with private monies for research and development activities. The FSU Foundation is responsible for administering gifts and bequests from private sources for which no services and/or products are required, with the exception of Intercollegiate Athletics. Funds that meet the definitions stated above should not be deposited in an account within the University’s Auxiliary Fund. Generally, the only revenues that should be deposited in an Auxiliary Fund account are those that represent payment for services rendered/goods provided by the Auxiliary.
The only departmental deposits allowed to E&G funds are expense refunds. Note that revenue deposits should never be recorded to an E&G/Carryforward fund.
Receipt Type (also see the related Miscellaneous Payment Decision Tree)
- Sponsored Grants and Awards
- What is This? Any money received from a third party sponsoring a particular scholarly or scientific activity. This money could come from a public entity (Federal government, State government) or it could come from a private entity (not-for-profit).
- How Should It Be Accounted For? If the funds are from a public entity, this should go through Sponsored Research Administration. If the funds are from a private entity, this should go through the Research Foundation.
- Example: A private entity provides money to fund a faculty member’s travel to a conference at which he/she will speak, and the donor requires support for the spending of these funds and that any portion of the funds not used for this purpose to be returned. This should be administered through the Research Foundation.
- Non-Sponsored Awards/Gifts
- What Is This? Any money received from a private, non-governmental third party for which there are no contractual requirements or direct benefits to the donor, no control of the funds are maintained by the donor, and for which there is no expectation that unexpended funds would be returned to the donor.
- How Should It Be Accounted For? These types of payments should be directed to the Department’s Foundation fund.
- Example: A department wins a best practice award from a higher education-related not-for-profit organization. This check should be provided to Foundation staff so that it can be deposited directly into one the department’s Foundation funds as donation/gift revenue.
- Example 2: A private entity provides funds to help cover the costs of attending conferences for departmental employees, and the donor does not require any accounting for the spending of these funds. This check should also be provided to Foundation staff so that it can be deposited directly into one the department’s Foundation funds as donation/gift revenue.
- What Is This? Money provided to an auxiliary department in exchange for goods/services. All auxiliary activity must be pre-approved (see https://budget.fsu.edu/auxiliaries).
- How Should It Be Accounted For? This should be recorded as revenue in the department’s auxiliary. If the revenue is related to the department’s normal auxiliary function, the department should record it as operating revenue. If engaging in other activities, contact the Budget Office.
- Example: The Fine Arts ticket office sells tickets to a performance. The Fine Arts Ticket Office would record the revenue from this sale as operating revenue.
- Expense Refunds
- What Is This? An expense refund is when a vendor sends money to the department to refund them for all or a portion of a previously recorded expense. Often, the expense refund is sent when a department returns an item previously purchased or that was charged to the department in error. The defining characteristic here is that the department had previously paid the vendor and recorded an expense for this item.
- How Should It Be Accounted For? This should be recorded using the same chartfield string where the original expense hit.
- Example: A department receives a check from Coca-Cola because they forgot to apply credits to the invoice. The amount the department overpaid is refunded back to them. This expense refund would be recorded to the same chartfield where the original expense was recorded.
Questions? Contact General Accounting