County 4-H Endowments
cfaesfinance.osu.edu Cindy [email protected]
Description of change
Communication to date
What is changing? New process for spending the earnings of 4-H endowments in trust at Ohio State
Checks representing total earnings will no longer be mailed to county committees
There is no change to the amount of funding or the purpose of the funding
Available for spending the first week of July
Purchase process will be through the county extension office
Earlier than usual
Goals Quicker access to funds. Counties will have annual interest earnings available to
spend, instead of waiting until October.
Reduces paperwork for county committees. Records can be made directly from
the OSU accounting system. We will be able to show donors, auditors, and any
other concerned parties all of the financial transactions, as well as the approvals,
current balances and any carryforward funds.
Increased safeguards and reduced liability for county committee treasurers.
The OSU financial system will less potential liability and risk exposure for volunteers
Consistency. All other OSU managed endowment funds are handled this way
Communications Employees. Communication to employees including 4-H Educators, County
Directors and Support staff started in the fall of 2015 to allow ample time for
questions and suggestions. This included the distribution of the county endowment
quick guide meant to provide some guidance on tracking and purchasing items
Volunteers. Communication to the volunteers has primarily come from the 4-H
Educators to the local committee members. In June of 2016 the senior leadership of
FAES distributed a letter for employees to give to volunteers to communicate the
Fall 2015 was spent
sharing the decision with 4-H
plans for implementation, and create the
Winter and Spring of 2015/2016 was
used to communicate with
county directors and support staff who will assist in processing and
tracking the endowment
Summer 2016 is being used to send final
communications and make sure all necessary
parties knows what is needed moving forward.
This includes the
Business Operations Center personnel that will be assisting with
July 2016 will be the first distribution to
remain in the endowment earnings
fund series. 2xxxxx
Expenses associated with the endowment
should now be submitted for payment
on the eRequest, eTravel or HRAction
First automated reports available
New endowment earnings
Tracking Fund Description
TAS – The Advancement
Gift Memo Support Report
Video instructions for running report
Endowment Administration Descriptions and Fund Balances
Use fund ID 6xxxxx or choose Keyword
See summary data on screen or link to
View Fund Full Description in PDF Format
3OS-61 Report 4OS-91 Report Fund Balance Detail Activity
Video instructions on accessing
Video instructions on reading reports
PDF Quick Access Guide
Donations Fund Balance, Earnings and
Tracking Fund Description Donations
Fund Balance, Earnings and
Spending Expenses must come directly from the endowment income fund (2xxxxx) Expenses cannot be paid by an external committee with the expectation of getting reimbursed from the endowment.
Purchase Order Extension Checking
Scholarships Scholarships for education for a student attending OSU Awarded to a student in order to further their education. Payment must be paid through Ohio State University. Email Pat Whittington the student’s name, student’s OSU Empl ID, award amount, scholarship name, and endowment org and fund #.
Scholarships Scholarships for education for a student not attending OSU Awarded to a student in order to further their education. The check is made payable to the institution that they will be enrolled in for tuition and fees assigned to the student. The Extension office should: •Fax the VSF (completed by the student) to 614-688-0529 •Submit an eRequest – Payment
•Reference Convenience Order Number X17056 in the Additional Information Section of the eRequest •Attach a document that explains the award selection process and purpose of the award.
•The check will be mailed directly to the address provided on the VSF. If you want other routing, please note this in the additional information section of the eRequest. •Allow three weeks for processing.
Scholarships Note – this is not the preferred method for scholarship processing! Scholarships for education – Payable to the Individual Awarded to a student in order to further their education. The check is made payable to the student. Note that this may become taxable income to the student if processed this way (pay to the institution if you want to avoid this). Also, you won’t be able to verify they have used this for education. The VSF will need to be from the student, do not attach the vendor setup form (a social security number will be on this form).
Scholarships for registration for OSU events (ex. Camp Scholarship) Awarded to a student to reduce the cost of their attending an OSU sponsored event.
Payment can be made to refund the student for their expenses or paid directly to the event on their behalf. Payment to individual: Unit should enter an eRequest – Refund Attach a document that explains the award selection process and purpose of the award. Reference the deposit id for where the original payment was received from the student for the event and payment should only be made after the event has occurred and attendance confirmed. Payment to the event: External events: Unit should enter an eRequest – Standard Purchasing Request. Attach pages 2 and 3 of the VSF. A PO number will be emailed to the initiator. After the event takes place, submit the vendor’s invoice with the PO number to [email protected]
Internal Events: Contact the event coordinator about transferring funds from your endowment fund to the event revenue fund.
Supplies Ex. Food, Program Supplies, Postage
Plaques, Trophies, Ribbons Normal processing unless you plan to put an OSU brand on the items.
Event insurance is restricted at the university. However, FAES has an exemption to allow you to pay from the checking account. Accident and Event Insurance coverage should be paid via the extension checking account or with a purchase order via an approved eRequest. Insurance paid from the extension checking account must be tracked and reported annually to the Business Operations Center Use the Insurance Tracking Form to assist you in this process.
required for other types of
Promotional Items T-shirts, Jackets, Bowls, Pens, etc.
This is a restricted item at the university. Process is lengthy so plan ahead. Also consider other payment options if you aren’t putting branding on the material. Considerations: • 3 level branding approval • 2 tier vendor selection based on for-sale items and for-free items • Extra business purpose usually required • Tax Implications (payroll, non employee, sales tax) • Multi-step process in order to be approved to buy locally • Some steps easier with 4-H Mall
See the Promotional Items Guide
Speakers Ex. Judges, teachers, entertainers, nurses
There are IRS restrictions on paying people for services. Instead of a quote, write up a scope of services (paragraph outlining what they will do for you). This will require a PO and a Vendor Setup Form, plan ahead. The Extension Office should: •Fax the VSF (completed by the individual) to 614-688-0529 •Submit an eRequest – Standard Purchasing Request
•Attach scope of services •Wait for a Purchase Order number (allow two weeks) •After services are completed send an invoice (received from the individual) to [email protected]
Do not pay from checking account
• Charter buses must be processed on a Purchase Order Charter Bus FAQ.
• Group travel should be organized through the Business Operations Center.
• Overnight travel must be preapproved by the county director prior to the trip.
• Mileage can be submitted on an eRequest
• Travel organized by the Extension State 4-H Office or by a county office can be paid internally with an expense transfer using the endowment fund.
Do not pay from checking account
OHIO STATE university EXTENSION
Red flag purchases STOP and ask
FIRST! Liability issues
Safety, security, transportation
IRS tax issues Gifts, payments to
individuals for services University
image Branding, promotional
items, sales, give aways
Examples Charters (buses, canoes, boats) Weapons, ammunition, firearms, bows, arrows Unmanned Aerial Vehicles, Renovations that disturb the walls, floor or ceiling, Online file storage, Online Online payment processing, Online software, Gifts to employees, large Large gifts >$250 to non-employees, honoraria, emeriti, speakers, nurses, entertainers, drivers, Promo items: T-Shirts, hats, bags, trinkets
Do not pay from checking account
• Purchases must be made directly to the vendors – not as a reimbursement to the endowment committee
• Scholarships are easy but will require a vendor setup form
• Think about your purchase before it is needed. • If there are safety, security or liability issues chances are a PO will be
required and vendor choice will be limited • If there are IRS Tax issues such as payments to people or gifts chances are
a vendor setup form will be required. • If your purchase will represent the university in some way there will be
multiple approvals and limited vendor choices
• This isn’t different than all of your other normal purchases
• If no red flag items exist then dollar thresholds usually dictate the buying tool
General Ledger/County Reimbursements
Do not pay from checking account
2xxxxx Endowment Interest Fund • July transfer credit to revenue
• When using a Purchase Order, processing a scholarship, traveling, using a PCard you simply need to use the 2xxxxx fund number on the eRequest or eTravel • When using the Extension checking account to pay for items you must submit for
reimbursement from the endowment interest fund in order to actually charge the endowment. Process: write check submit eRequest for reimbursement deposit check
Summary We value our local partnerships
We want to provide all of the support afforded to those partnerships by their
affiliation to the university
We want local 4-H professionals to help in accounting for these Extension
We want to make it easy for you to do the business you need to do
Change can be difficult and we look forward to hearing your feedback for
improvements in future processes
Need help with a buying procedure? [email protected] or your Business