Previous Page

Appendix I: Donations Procedures

VCE December 2008

Background

From time to time, DFPS employees become involved with donations from community members. These donations fall into two categories: monetary and non-monetary (in-kind). The issue for DFPS is the stewardship of those donations.

Monetary Donations

There are two types of monetary donations:

      Non-appropriated funds are funds received directly by DFPS that were not appropriated by the Legislature, such as checks made payable to DFPS or cash given directly to DFPS.

      DFPS does not have legislative authority to set up or have local bank   accounts in DFPS’s name, outside the State Treasury. Any funds made payable to DFPS must be deposited into the State Treasury and are not available for use by DFPS unless the Legislature authorizes their use.

      Non-appropriated funds may not be placed in regional children’s income accounts.

      Collaborative funds are funds raised by an external entity in collaboration with DFPS; or DFPS accepting donations on behalf of any collaborative entity. DFPS is only considered a temporary steward in the acceptance and transfer of such funds.

Note: If the donor does not direct the donation to a specific client or project, leaving this determination up to DFPS staff, those funds must be received as non-appropriated funds.

Non-Monetary (In-Kind) Donations

      In-kind donations are any non-monetary items donated to DFPS, its programs, or its clients, such as artwork, furniture, clothing, houseplants, and so on. Staff are encouraged to connect such items directly to a specific client in need. When a match is not possible or the donor requests that the donation stay within the agency, DFPS must account for and reconcile these donations.

The procedures listed below do not apply to items matched directly with a specific client. When a match is not possible or the donor requests that the donation stay within the agency, DFPS must account for and reconcile these donations.

Policy

Handling Monetary Donations

Regional directors must assess their operations to determine the potential risk of misappropriation and assign:

  •  one employee who will be primarily responsible for receiving donations. In most cases this will be the community initiatives specialist (CIS); and

  •  one employee responsible for reconciling the donations, preferably a regional director’s (RD’s) assistant or a resource/external relations specialist (RERS).

These designated employees must be trained on donations policy and be provided with written instructions on how to handle the donations. Other DFPS employees (except for the community partners coordinators) should avoid handling donated funds.

When DFPS knows in advance that funds will be received, DFPS encourages external entities to establish bank accounts and post office boxes to receive the donations. DFPS or an employee of DFPS cannot be a co-signer or any part of the community partners’ bank account. Donors should be asked to donate directly to the entity and make checks payable to the entity (not to DFPS or an individual). Donors can mail the funds to the entity’s post office box or street address.

If it is not possible to follow this procedure because of lack of advance notice, or because non-appropriated or collaborative funds are received directly by DFPS as cash, through the mail, or in the field, the following procedures must be followed:

DFPS employees assigned to handle donated funds must adhere to prudent funds-handling procedures. The procedures below may be modified if necessary, but employees must adhere to the basic elements to ensure proper control and accountability.

Procedure 1: Maintaining Receipt Books

Staff who receive monetary donations (referred to as the “receiving designee”) must maintain pre-numbered receipt books that have carbon copies. Numbered receipt books are available through the state office Accounting Division. Contact Debora A. Young by email to request receipt books.

When a monetary donation is received, the receiving designee must write a receipt. The carbon copy of the receipt should be given to the donor.

Separate receipt books should be maintained for:

  •  funds transmitted to external entities; and

  •  funds donated directly to DFPS, which are sent to the state office Accounting Division for deposit in the State Treasury.

Receipt books must be kept for three years after the last receipt date.

Procedure 2: Securing Donations

Offices must maintain a secure location (for example, a lock box or lockable file cabinet) for the donations until they can be transmitted to the proper entity.

After creating the receipt, the receiving designee should place the donation in the secure location.

The transfer of the funds to an external entity should be made to someone officially designated to accept them on behalf of the entity. Collected funds should be transferred frequently, at least once a week. No more than $3,000 should be kept on hand at one time.

Procedure 3: Maintaining a Receipt Log

The receiving designee must maintain Form 0263 Monetary Donations Receipt Log, which tracks the donation from receipt to final disposition (see Sample A).

After the donation is secured, all necessary information should be recorded on the receipt log. See Sample A: Monetary Donations Receipt Log.

Occasionally, an entity will only receive a portion of a donation. This leaves a remaining balance. When this remaining balance is transferred over to a different entity, it must be logged accordingly. The receiving designee must:

  •  note the receipt number of the original transaction;

  •  record the name of the entity the funds have been donated to;

  •  record the fund type to be transferred (usually cash);

  •  ONLY fill in the Amount Transferred column. Do not place the amount of the original donation in the log – this will cause the balance to be off.

  •  Include the sign-off name and date.

See example highlighted in Sample A: Monetary Donations Receipt Log.

Procedure 4: Reconciling the Log and Receipt Book

The log and the receipt book must be reviewed and reconciled by the second designee (referred to as the “reconciling designee”) at least monthly. The reconciling designee should:

  •  compare the receipt book to the funds receipt log. All receipt numbers unaccounted for in the log must be noted and investigated;

  •  ensure that the ending balance noted on the log matches the amount of funds on hand in the secured location; and

  •  once reconciled, sign off on the log.

Procedure 5: Documenting Transmittals

After the log and receipt books are reconciled, Form 0264 Entity Transmittal Letter must be sent to each entity that received a donation (see Sample B).

  •  The receiving designee must create a letter for each entity that received funds during the given time period (month).

  •  The reconciling designee should sign off on the letter after confirming that the items transmitted match those in the monthly receipt log.

  •  DFPS should maintain a copy of each letter for three years.

Procedure 6: Reporting the Reconciliation

Form 0265 Memorandum of Reconciliation must be sent to the regional director at least monthly (see Sample C).

  •  The designee responsible for the reconciliation must notify the regional director, in writing, that the reconciliation has been completed.

  •  The results of the reconciliation should state that everything is accounted for, or give a detailed listing of what is missing, plus the outcome of the investigation of any missing items.

  •  DFPS should maintain a copy of the memo for three years.

Handling Non-Monetary (In-Kind) Donations

As with monetary donations, regional directors must assess their operations to determine the potential risk of misappropriation. One employee must be assigned to be primarily responsible for receiving donations.

In most regions, the community initiatives specialist or community partner coordinator is appropriate. The designated employee must be trained on donations policy and be provided with written instructions on how to handle the donations.

DFPS staff are encouraged to connect in-kind donations directly to clients. However, this is not always possible. For example, a donor might request that the item be donated to a DFPS program or office, or there is no client currently in need of the items. In these cases, staff must use the procedures below.

In-Kind Donations Log

A log must be maintained that tracks the donation from receipt to final disposition. The log should be reviewed by the regional director or designee on a regular basis. See a sample in-kind donations log below.

The log must include:

  •  the date the item was donated;

  •  the donor’s name;

  •  the name of the DFPS staff member who received the donation;

  •  a description of the item;

  •  where the item was sent or the name of the recipient, or how the item is being used;

  •  the name of the DFPS staff member who signed out the donation and the date that the donation was signed out.

Bulk Donations

If multiple items are received from one donor and are distributed at different times, the designated donations staff must maintain a running log. The individual who signs out the partial pick-up must also “re-log” the remaining items. See the XYZ, Inc. example below.

In-Kind Donations Log-Region XX

Date

Donor Name

Received By

Item Description

Item Location / How Used

Item Sign-Out Name and Date

1-1-08

ABC Corp.

John Smith

10 X 12 painting

Placed in meeting room 550E

Jane Doe
1-8-08

1-2-08

XYZ, Inc.

Sarah Neal

50 sleeping bags

Distributed 30 sleeping bags to clients in Region XX

Mike Pine
1-12-08

1-12-08

XYZ, Inc.

Mike Pine

20 sleeping bags

 

 

Reconciled By: RD Designee 2/10/08

Thank-You Letter for Non-Monetary Donations

Form 0300 In-Kind Donation Thank You is a letter that must be sent to the donor acknowledging receipt of the contribution. Staff may not include any reference to the value of the item. The donor is responsible for determining the value. The Thank You form letter should be used for non-monetary donations only.

Sample A: Monetary Donations Receipt Log – Form 0263

Beginning Balance: $0

Receipt #

Date

Donor Name

Purpose/Entity to Receive

Type

Amount Donated

Received By (staff name)

Amount Transferred

Entity Transmittal Sign-Off (Name/Date)

Amount Remaining

12345

5/2/08

ABC Corp.

XYZ Entity

Check

$100

Kathy Wall

$50

Paul Miller 5/8/08

$50

12346

5/13/08

Car Wash Receipts

XYZ Entity

Cash

$150.25

Kathy Wall

$150.25

Paul Miller 5/21/08

$0

12347

 

 

 

Gift card

$50

Kathy Wall

$0

 

$50

12345

 

 

JKL Entity

Cash

 

 

$50

Sarah Hill 5/30/08

-$50

Remaining Balance: $50

Reconciled By: John Smith       Date: 5/31/08

Previous Page