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    Title:

    Gifts (Monetary), Financial Management of

    Publication date:

    10/23/18

    Effective date:

    10/23/18

    BRIEF

    Policy Summary

    This policy defines the requirements for the financial management of monetary gifts once acceptance of the gift, for research purposes, has occurred. See the separate policy, Gifts for Research, Solicitation and Acceptance of, that provides requirements for such solicitation and acceptance for gifts.

    Who Should Read This Policy

    Any employee involved with the acceptance, funds management, financial close-out/de-obligation, and financial processing of monetary gift activities at Lawrence Berkeley National Laboratory (Berkeley Lab).

    To Read the Full Policy, Go To:

    The POLICY tab on this wiki page:

    Contact Information

    General Accounting Manager


    Title:

    Gifts (Monetary), Financial Management of

    Publication date:

    10/23/18

    Effective date:

    10/23/18

    POLICY

    A. Purpose

    The purpose of this policy is to define the requirements for the financial management of monetary gifts accepted for research.

    B. Persons Affected

    Any employee involved with the acceptance, funds management, financial close-out/de-obligation, or financial processing of monetary gift activities at Lawrence Berkeley National Laboratory (Berkeley Lab).

    C. Exceptions

    Not applicable

    D. Policy Statement

    1. General. Use of gift funds must comply with U.S. Department of Energy (DOE) criteria as stipulated in the UC-DOE Prime Contract (Contract 31) and the policy Gifts for Research and Acceptance of.
      1. Gift funds may not be used to augment any federally funded research.
      2. The use of gift funds must be consistent with the general purpose stated by the donor.
    2. Funds Control and Cost Accounting Treatment
      1. Each gift will be accounted for and managed as a unique project, and controls will be in place to ensure that costs and obligations do not exceed the amount of the gift.
      2. Gift funds must be spent in accordance with the Laboratory's established policy for cost allowability.
      3. Costs are determined to be allowable as defined in FAR subpart 31.201-2, Determining Allowability, as supplemented by specific clauses in Contract 31, and DEAR subpart 970.31, Contract Cost Principles and Procedures. Additional allowable costs guidelines are found in the Berkeley Lab Cost Allowability policy.
      4. As defined in Contract 31, Clause H.27 and P.10, gift funds are part of the Laboratory's Contractor-Funded Institutional Supporting Research and Development Program. Under this program, gift projects are exempt from General and Administrative (G&A) burdens. For detailed information about applicable burdens, refer to the Rate Handbook.
      5. In the event that the costs incurred on a gift project exceed available funding, it is the division's responsibility to resolve the overcosted balance.
        1. For overcosted balances that are $100 or less, the Gift Reserve may be used as described in section 3.a below. For any final overcosted balance over $100, the division should submit to the Controller and General Accounting an executive summary outlining the following:
          • Identification and cause of the issue.
          • Proposed corrective actions to address the overcosted balance.
          • Action plan within the division to minimize/eliminate future occurrences.
        2. The Controller and General Accounting will then work with the division to identify an appropriate source of funds to resolve the overcosted balance. Alternate funding sources, in order of preference, are: 
          • Gift Reserve (see section 3.a. below).
          • Management Fee.
    3. Gift Reserve
      1. Berkeley Lab will maintain a Gift Reserve. The purpose of the Gift Reserve is to provide a source of unrestricted funds should a specific gift be overcosted. For overcosted balances that are $100 or less, the Gift Reserve may be used to fund the overcost. For any balances greater than $100, the Controller's Office will obtain approval from the Laboratory Deputy Director of Research for use of the Gift Reserve.
      2. The Gift Reserve balance is set at the discretion of Laboratory Deputy Director of Research. The original funding source for the Gift Reserve included the balance of the gift assessment, which was assessed on all gift proceeds received prior to October 1, 2014, and interest earned on the Short-Term Investment Pool (STIP) account, as described below in Section D.4, "Cash Management."
      3. As of October 1, 2014, the Gift Reserve balance has been set at 2% of the total unexpended gift balances.
      4. Each quarter, Laboratory gift interest, net of any bank fees, will be applied to the Gift Reserve balance until the target Gift Reserve balance of 2% of total unexpended gift balances is achieved. Gift interest will then be distributed as described below in Section D.4, "Cash Management."
      5. The Laboratory Deputy Director of Research may, at his/her discretion, adjust either the target reserve percentage or the reserve balance. Any adjustment from the Gift Reserve balance will be transferred to Contractor Supported Research (CSR) funds.
    4. Cash Management
      1. Gift funds are maintained in one of two bank accounts: the Laboratory's gift account or the University of California (UC) STIP account. Both accounts are interest bearing.
      2. Each quarter, General Accounting will make a distribution of the interest earned on the gift funds. Interest earned will first be used to cover bank fees related to the Laboratory's gift account, and then be used to fund the Gift Reserve, as described in the preceding section. Any interest earned in excess of bank fees and Gift Reserve requirements will be credited to qualified individual gift projects. The allocation of net interest earned to individual gift project balances will be based on the unexpended balance of the gift at quarter-end. However, any gift project with an unexpended balance less than $1,000 will not receive interest income. Further, any gift project earning interest income of less than $200 during the quarter will not receive interest income.
    5. Financial Close-Out / De-Obligation of Gifts.
      1. Divisions are responsible for promptly placing the gift project's status as "costs are final" in eSRA upon completion of the related work. After confirming there is a final remaining balance equal to or greater than $0, General Accounting will notify the Budget Office to closeout and de-obligate the project in eSRA. If there is an overcosted balance, then the division must first coordinate with General Accounting and determine how to resolve this as described in Section D.2.d. Once gift projects are deemed to be closed out and de-obligated, the following steps are taken:
        1. Projects with uncosted balances of $1,000 or less will be transferred to the Gift Reserve by General Accounting.
        2. Projects with uncosted balances greater than $1,000 will need coordination between the division and Strategic Partnerships Office (SPO) and/or the Office of Laboratory Counsel for appropriate disposition.

    E. Roles and Responsibilities

    Role

    Responsibility

    Strategic Partnerships Office (SPO)

    Gift Acceptance

    • Determines whether the gift is appropriate or is a sponsored research project.
    • Receives confirmation from General Accounting that the gift funds have been received.
    • Inputs gift letters into eSRA where copies can be retrieved by General Accounting, the principal investigator, and the division Resource Analyst [RA]).
    • Obtains DOE approval of gifts over the DOE-authorized level, or from donors who also have an active sponsored research award in place.
    • Accepts gifts in accordance with the policy Gifts for Research and Acceptance of.
    • Obtains gift acceptance from the Laboratory Director of Research.
    • Obtains gift acceptance from the UC Office of the President (UCOP) on gifts exceeding $500,000.
    • Sends the Laboratory Director of Research's acknowledgment letter to the donor.

    Gift authorization

    • The SPO Contracts Officer completes the gift set-up in eSRA and indicates "Award Preparation Complete." eSRA sends the data to the financial management system (FMS) to open the project.
    • The eSRA system will send notifications to General Accounting, the principal investigator, and the division RA).

    Close Out and De-Obligation of Gift Funds

    • If the remaining balance is greater than $1,000, determines appropriate disposition.

    External Reporting — DOE

    • Provides required gift reporting to DOE.

    Division Management/Principal Investigator

    Execution, Oversight, and Funds Control at the Project Level for Gift Funds

    • Ensures that the use of funds is consistent with the general purpose stated by the donor.
    • Ensures that funds are spent in accordance with the same terms and conditions as DOE-funded expenditures.
    • Manages the gift award within its funding limits.
    • Establishes controls to ensure costs and obligations do not exceed the gift award.
      • Monitors costs incurred against the gift award.
      • Corrects errors and resolves issues as they occur to ensure that gift-award balances are in good standing.

    Determination of When Costs Are Final / Pre-Closeout

    • With assistance from the division RA, ensures the gift project will be closed in a timely manner.
    • With assistance from the division RA, works with General Accounting to resolve any overcosted gift award and determine a source of additional funds before the project is closed out and de-obligated in eSRA.

    Division Resource Analyst

    Determination of When Costs Are Final / Pre-Closeout

    • Works with the PI to ensure the gift project will be closed in a timely manner.
    • Places the project in “costs are final” status in eSRA.
    • Assists the PI in working with General Accounting to resolve any overcosted gift award and determining a source of additional funds before the project is closed out and de-obligated in eSRA.

    General Accounting

    Gift Accounting

    • Establishes a monthly gift status report.
    • Reconciles the following gift-related general ledger accounts: deferred revenue gift account, gift Short-Term Investment Pool (STIP) account, and gift bank account.

    Cash Management

    • Deposits and records funds in the gift cash account and notifies the SPO of receipt.
    • Manages the allocation of cash between various depository accounts.
    • Ensures deductions are made for bank fees and calculates funding requirements to the reserve balance prior to quarterly distribution of interest income to gift projects.
    • Calculates and manages the quarterly interest income allocation for individual gift projects and provides the Budget Office with the allocation detail to be input into eSRA.
    • Communicates to divisions whether there is an interest allocation made for each quarter.

    Institutional Oversight of Gift Funds

    Reviews for funds control by reconciling the gift balance to gift status reporting.

    • Ensures that the Gift Reserve balance is maintained at the level set by the Laboratory Deputy Director of Research.
    • Prepares and distributes the monthly gift status report for distribution to the divisions.
    • Works with divisions to resolve overcost issues on gift projects.
    • Obtains confirmation from divisions that a gift award will need final closeout/de-obligation and provides the Budget Office with the project detail and closeout balances to be closed out in eSRA.

    Budget Office

    • Processes periodic interest income in eSRA (details provided by General Accounting).
    • Performs close out/de-obligation of balances in eSRA (project details and balances to be provided by General Accounting).

    F. Definitions/Acronyms

    Term

    Definition

    Gift

    A gift is anything of assignable value that is voluntarily and legally transferred to Berkeley Lab's ownership and possession. A gift is a contribution to the Regents of the University of California that is donative in intent, bestowed voluntarily and without expectation of tangible compensation for which, in general, contractual or other requirements are not imposed. Gifts are awarded irrevocably. A gift is not a Strategic Partnership Project (SPP), nor an extramural contract or grant, and therefore imposes no contractual requirements. Any proposed gift must support the scientific mission of Berkeley Lab. Gifts cannot be used for non-allowable costs and are subject to Contract 31, Clause H.27 and P.10.

    Gift Reserve

    The purpose of the Gift Reserve is to provide a source of unrestricted funds should a specific gift be overcosted. The Gift Reserve's use for overcosted balances is at the discretion of and with any needed approval from the Laboratory Deputy Director of Research

    G. Recordkeeping Requirements

    Gift recordkeeping requirements are consistent with all other financial accounting records for cash receipts and disbursements.

    H. Implementing Documents

    None

    I. Contact Information

    General Accounting Manager

    J. Revision History

    Date

    Revision

    By whom

    Revision Description

    Section(s) affected

    Change Type

    10/23/18

    3

    M. Beedle

    Updates to Close-out process; clarification of Roles

    All

    Major

    10/1/2014

    2

    Jeppson/Carlson

    Eliminate gift assessment, establish gift reserve

    D

    Major

    4/16/2013

    1.1

    Beedle

    Review completed 3/15/2013, no changes

    Pub & Next Review dates

    Minor

    1/2/2012

    1

    L. Corsair

    Reformat for wiki

    All

    Minor

    DOCUMENT INFORMATION

    Title:

    Gifts (Monetary), Financial Management of

    Document number

    11.01.011.000

    Revision number

    3

    Publication date:

    10/23/18

    Effective date:

    10/23/18

    Next review date:

    12/1/21

    Policy Area:

    Accounting

    RPM Section (home)

    Financial Management

    RPM Section (cross-reference)

    11.26

    Functional Division

    OCFO

    Prior reference information (optional)

    RPM Chapter 11, Section 11.26

    Source Requirements Documents

    Implementing Documents

    None

    Other References

    Document Number

    Title

    Type

    03.04.001.000

    Gifts for Research and Acceptance of

    Policy

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