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Division of Agriculture
Policy and Management Guidelines for the
Agricultural Development Council (ADC)

PMGS-95-2
Division of Agriculture
Policy and Management Guidelines Memorandum
Issued March 15, 1995
Revised January 2008

GUIDELINES FOR THE AGRICULTURAL DEVELOPMENT COUNCIL
THE UNIVERSITY OF ARKANSAS FOUNDATION, INC.
University of Arkansas Division of Agriculture

TABLE OF CONTENTS

Introduction

• Background
• Purpose
• Location
• Memorandum of Agreement
• Delegated Authority

Procedures

ADC Accounts

• Gifts and Grants
• Eligibility
• Restricted-Use Gifts / Grant Approval
• Establishment of ADC Accounts
• Administrative Costs
• Transfer / Movement of Funds
• ADC Accounts of Former Employees
• Changes to ADC Accounts

Gifts and Deposits

• Deposit Forms
• Section A Donor Information
• Section B Account Information
• Section C Gift Information
• Signatures
• Processing Deposits
• Memoranda of Agreement

Payment Authorizations

• Introduction
• Processing

Expenditures

• Approved Uses
• Prohibited Uses
• Bidding Procedures
• ADC Vehicles

Travel

• Request for Travel Authorization
• Travel Advances
• Statement of Traveling Expenses

Scholarships

PAF / Payroll Dilemmas

Disposal of ADC Property

Request for Ascend ID

Definitions

AGRICULTURAL DEVELOPMENT COUNCIL
The University of Arkansas Foundation, Inc.

Introduction

I. Background

An Endowment and Trust Fund, managed by the Alumni Association, was first established in the 1950s. In January 1971, this Fund was organized into The University of Arkansas Foundation (Foundation), Inc. This development allowed each of the campuses within the University of Arkansas System to have a sub-organization known as a "Development Council." The Division of Agriculture (Division), because of its breadth of statewide programs, is considered a campus with its own Development Council, known as the Agricultural Development Council (ADC). The first ADC deposit into The University of Arkansas Foundation, Inc., was made on April 22, 1977.

II. Purpose

Purposes for the Agricultural Development Council, a constituent entity of The University of Arkansas Foundation, Inc., are as follows1:

A.  To encourage and assist agricultural research, extension, and teaching, including the encouragement of high standards and levels of achievement;

B.  To advise the Vice President for Agriculture (VPAG) in his capacity as coordinator of agricultural research, extension, and teaching programs for the University of Arkansas, including advice on the relevance and linkage of the above activities to Arkansas producers, agricultural businesses, and other rural citizens;

C.  To generate and collect and approve the dissemination of financial support for meritorious agricultural research, educational, and development activities; and

D.  To engage in other selected causes in cooperation with the VPAG to promote agricultural research, extension, and teaching through the Division.

III. Location

A.  The University of Arkansas Foundation, Inc., is located in the University of Arkansas Engineering South facility in Fayetteville, Arkansas.

B.  The Agricultural Development Council office shall be located at the discretion of the VPAG and is currently located in Fayetteville.

IV. Memorandum of Agreement

Because the ADC does not possess the researchers, faculty, staff, or students to meet the expressed intentions of its private donors/grantors re: their gifts/grants, the ADC has entered into a Memorandum of Agreement with the Division in which the ADC agrees to make adequate funds available in exchange for the Division conducting, on behalf of the ADC, all research and educational activities as required by the ADC agreement with the donor/grantor.

V. Delegated Authority

Under the approved ADC by-laws adopted October 27, 1995, Article VI, Section 4, the VPAG is expressly given delegated authority on behalf of the ADC to make expenditures in accordance with the regulations and forms contained in the Guidelines. Article IV, Section 2 provides the authority for the VPAG to accept donations on behalf of the ADC. References to the VPAG in these Guidelines are in accord with the delegated authority cited herein.

Procedures

I. ADC Accounts
A. Gifts and Grants

All gifts and grants (including cash and noncash gifts) received for deposit or acceptance by the ADC shall be considered gifts and grants donated directly to the ADC. The VPAG shall disperse funds in accordance with donor intentions, or in the case of unrestricted funds, at the discretion of the VPAG.

1.  Unrestricted Gifts/Grants: For purposes of these Guidelines, unrestricted gifts/grants are those private gifts and grants in which complete discretion as to use of gifts/grants vests solely with the ADC, and the donor/grantor does not attempt to attach any restrictions on use.

2.  Restricted-Use Gifts/Grants: For purposes of these Guidelines, restricted-use gifts/grants are those private gifts and grants in which the donor expressly establishes restrictions on how the donated gift/grant may be used.

B. Eligibility

1.  Unrestricted gifts/grants and some restricted-use gifts/grants of private funds may be deposited into the ADC. As long as all research, information, product, proceeds, and other property generated from the use of these restricted-use gifts are non-proprietary and control of such research, information, product, proceeds, and other property vests solely in the ADC, then these restricted-use gifts are eligible for deposit in the ADC. In the case of gifts of scholarship, fellowship, professorship, chair, and similar gifts, control over the use of these funds (in accordance with expressed donor intent at the time of the gift) must vest solely in the ADC in order for such gifts to be eligible for deposit in the ADC.

2.  Gifts/grants of private funds for research or educational purposes in which control over the use of research, information, product, proceeds, or other property generated from the use of these funds vests in any degree with the donor/grantor (either by terms of the gift/grant agreement or by subsequent action of the donee/grantee or his/her designee) are not eligible for deposit into the ADC. Scholarships, fellowships, professorships, chairs, or other similar gifts in which the recipient is specifically named by the donor, or in which effective control does not vest exclusively with the ADC, may not be deposited in the ADC.

3.  Noncash gifts may be accepted by the ADC, if approved by the VPAG. In the case of land gifts, a favorable environmental survey must be completed prior to acceptance. All land gift transactions require the assistance of UA System legal counsel. Noncash gifts with restrictions similar to those found in Procedures, I.B.2. are not eligible for acceptance.

C. Restricted-Use Gift / Grant Approval

For deposit of restricted-use gifts/grants into the ADC, a completed Memorandum of Agreement form must be completed in full (see Procedures, II. F). Prior written approval by the VPAG (or his/her designee) is required for deposit of restricted-use gifts/grant funds into the ADC. Unrestricted grants or gifts to the ADC do not require an MOA and may be deposited into a single account.

NOTE: Just because donor correspondence says a gift/grant is "unrestricted" does not necessarily mean that it is for ADC purposes. Unless the gift/grant is given without controls (i.e. "... for your unrestricted use in your research program") the gift/grant may be restricted (i.e. "... for your unrestricted use in alleopathy research"). Such gifts/grants are eligible to be deposited into the ADC unless in violation of the prohibition found in Procedures, I.B.2.

D. Establishment of ADC Accounts

An actual gift/grant must be deposited in order to establish an ADC account. A completed, signed Request to Establish a New Account form must accompany the check and deposit form or noncash gift form. Waiver of this policy may be requested of the VPAG if such is required to facilitate a fund-raising campaign.

E. Administrative Costs

Departments/units may request of the VPAG reimbursement for administrative costs associated with activity on research gifts/grants deposited in the ADC, such costs to be paid from the ADC research gift/grant in question.

F. Transfer / Movement of Funds

1.  Transfer of Funds: The transfer of funds from one ADC account to another is allowable, if not contrary to donor intent. Such transfer does not require that a check be issued. An Intra-Foundation Transfer form is required. No additional documentation is required. Such transfers of funds require the approval of the VPAG or his/her designee.

2.  Movement of Funds: Movement of funds from an ADC account to a University cost-center necessitates the issuance of a check. Thus, a payment authorization (see Procedures, III) is required, with "Office of the Vice President for Agriculture" listed as the recipient in the "Mail Check To" section. A completed Cashier's Office Cash Receipt (PDF) must be attached to the payment authorization. Such movements of funds require the approval of the VPAG or his/her designee.

G. ADC Accounts of Former Employees

Funds deposited into the ADC are the property of the ADC and not the principal investigator or project leader. Upon separation of an employee from the Division, ADC funds associated with the former employee or employee's project will be placed under the Office of the Vice President for Agriculture to be dispersed as deemed appropriate.

H. Changes to ADC Accounts

1.  To change an authorized signatory associated with an account (e.g., to delete or add a signatory), complete UAFound002 (PDF MSWord).

2.  To change account information (e.g., the name or the quarterly interest distributions for endowed accounts), complete UAFound003 (PDF MSWord).

3.  To close an ADC account, complete UAFound004 (PDF MSWord).

4. To change the hierarchy of an ADC account, complete ADC Form 1001 (MSWord)

II. Gifts and Deposits

A.  The ADC is equipped to receive gifts/grants for the purpose of supporting the research and educational programs of the Division of Agriculture. Deposits of federal, state, or other public (appropriated) funds in the ADC are prohibited. Deposits of revenues generated by use of ADC funds may be re-deposited in the ADC. For example, the monies received as reimbursement for items or services procured or produced using Foundation funds (i.e. T-shirts, caps, training sessions, etc.) may be deposited in the ADC.

B.  Deposits of funds which are remitted for goods or services rendered by the Division must be submitted with the appropriate deposit form. Case-by-case approval must be received from the VPAG to deposit any income from projects funded by the state or federal governments into the ADC.

NOTE: All checks must be made payable to the ADC or The University of Arkansas Foundation, Inc., (or accompanied by appropriate documentation indicating the intent to deposit into the ADC) and submitted for deposit into the ADC in a timely manner. Careful attention must be given to the "VOID" dates frequently printed on checks. All checks over $100 must be sent by the department to the ADC within three (3) business days of receipt.

C.  Acknowledgments for all contributions are prepared by the VPAG and forwarded to the donor. The donor’s intent for the eligible gift/grant shall be reiterated in the letter of acknowledgment. To ensure an accurate statement of donor intent, sufficient detail must be included with the deposit of the gift/grant. For pledged gifts, a disclaimer must accompany the acknowledgment which states that "intent to give is an expression of commitment to make future contributions and carries with it no legally binding obligation." In the case of noncash gifts valued at $5,000 or more, a copy of the IRS Form 8283 will accompany the acknowledgment with a reminder that if the donor intends to take a charitable deduction, an independent appraisal must be conducted and the VPAG must sign the form indicating receipt of the gift.

NOTE: This does not preclude faculty and unit heads from sending appropriate "thank you" letters as well. Such courtesy is encouraged.

D. Deposit Forms

Deposit forms have been standardized.

1.  Deposits of Gifts – Complete Form ADC-01 (PDF - MSWord) to deposit gifts of cash, checks/money orders, stock, and credit cards.

a. Section A. Donor Information

1.  Enter name of donor [e.g., company name or name(s) of individual(s)] and donor’s address as recorded on the check.

2.  Joint gift designation allows spouses to share credit for the gift.

3.  If donor wants gift to be anonymous, check "Yes."

b.  Section B. Account Information

• If check is to be deposited into multiple accounts, all account numbers, names, and the corresponding amounts to be deposited into each must be listed on the form.

c.  Section C. Gift Information

1.  If gift is in memory of or in honor of a person, provide name. Provide the address to which an acknowledgement card is to be sent.

2.  If a gift qualifies for a company matching program, check "yes."  If donor provides a form, send with gift.

3.  If gift is a payment toward a pledge, check "yes."

4.  A quid-pro-quo value is required for goods and/or services returned to a donor in exchange for the gift. The fair market value of goods and/or services provided to donor (quid pro quo) must be noted.

5.  If gift is received in response to a solicitation or proposal, a copy of the solicitation or proposal must be sent with the deposit.

6.  If agreements, oral or written, exist with donor stipulating how the donation will be used, a copy of the Memorandum of Agreement or other documentation detailing the stipulations must be included.

d. Signatures

• An original signature is required for the "Authorized Signature" line in accordance with the unit’s established protocol. For example, the signature of a department head, section leader, or unit head is required for gifts received for respective department/section/unit.

2.   Noncash Gifts (Gifts-in-Kind) – Complete Form ADC-03 (PDF - MSWord)

• Gifts of equipment and other tangible items will be recorded through the ADC if donor intends for item(s) to be sold in the immediate future with proceeds supporting Division programs and initiatives.

3.   Nongift Deposits – Complete Form UAFOUND-030 (PDF - Excel)

a.   Nongift revenue includes but is not limited to repayment of advances, sales, services, registration fees, etc.

b.   The Nongift Deposit form is an excel spreadsheet – see instructions and Revenue Code List/Definition for completing form.

E. Processing Deposits

1.   Complete appropriate deposit form.

2.   Submit the appropriate deposit form along with two copies of all checks to the Agricultural Development Council at a location designated by the VPAG. Currently, deposits may be submitted to P.O. Box 2219, Fayetteville, Arkansas 72702-2219.

NOTE: It is strongly recommended that checks submitted for deposit from entities on-campus be hand-delivered to the ADC.

F. Memoranda of Agreement – Complete Form ADC-05 (PDF - MSWord)

1.   An original Memorandum of Agreement is required for all restricted-use gifts/grants deposited into the ADC.

2.   The Memorandum of Agreement form (which includes an internal review and approval routing box) must be completed in full. The account name and number must be listed. As indicated on the form, both the faculty member and the unit head must provide an original signature on their respective signature lines within the internal review and approval routing section indicating their understanding of and agreement to the proposed terms. The faculty and unit head signatures also indicate that the proposed MOA meets the criteria of these Guidelines.

3.   The original Memorandum of Agreement form must be submitted to the VPAG for his/her consideration. This original will be included in the ADC files. Once documentation is received, the VPAG, on behalf of the ADC, may enter into a Memorandum of Agreement with the donor/grantor.

NOTE: Funds shall not be deposited until a Memorandum of Agreement approved by the donor(s) and the VPAG, on behalf of the ADC, is received by the VPAG or designee.

NOTE: The VPAG is the authorized signatory for Memoranda of Agreement for the Agricultural Development Council.

NOTE: The ADC rejects all ancillary agreements to the Memorandum of Agreement, written or oral, which are not completely divulged in the Memorandum of Agreement.

III. Payment Authorizations

All units must use the Payment Authorization form, Form UAFound 020 (PDF MSWord). All forms must be typed – handwritten forms will not be accepted.

A. Instructions for Completing Payment Authorization Form

The following are the components of the Payment Authorization Form:

1.   Development Council/Campus: The correct campus/development council is "ADC."

2.   1099 Payee: Select box when payment constitutes taxable income for payee.

3.   Check Payable To: The organization or individual to whom the check is to be issued.

NOTE: If an individual or organization is to receive payment or reimbursement for more than one item, it is preferred that all invoices/receipts be combined so that only one check need be issued.

4.   Mail Check To/Special Handling Instructions: Should department/unit want to pick-up the check directly from the Foundation office, select "pick-up." Otherwise check will be mailed to the address listed under the "Mail Check To" section. If expedited handling is needed, the appropriate Federal Express category should be listed.

NOTE: On-campus units’ mailing addresses may be used instead of complete postal addresses.

NOTE: When electing to send payment through Federal Express, the recipient’s phone number is required.

NOTE: The Foundation will directly debit the account(s) listed on the Payment Authorization form for the cost of the Federal Express mailing.

5.   Taxable Payment Requirement Section: When taxable payments are applicable (either as taxable fringe benefits for an employee or as taxable income to be reported on a 1099 form), this section must be completed. The social security number and home address for the individual receiving the taxable payment must be provided. Further, it is important to note whether the individual is a University employee, as well as whether the individual is a Non-Resident Alien.

Note: A Professional Services Agreement (PSA) is required for payments to individuals that constitute taxable income to a payee.  Complete Form ADC-013 (PDF, - MSWord).

6.   Date/Total Check Amount Lines: The date the form is initiated must be typed. The total for which the check is to be issued must be typed.

7.   "Charge to" Section: The form provides for six lines for recording expenditures to be delineated by account number, expenditure code, and/or project number. If additional lines are needed, additional forms may be attached, as required.

Agricultural Experiment Station expenditures must list the applicable project number under the "Project #" column.

8.   Purpose of Expenditure: The purpose of expenditure must provide a detailed explanation of the need for the expense. Appropriate examples of a "Purpose of Expenditure" are listed below (this is not intended to be an exhaustive listing; italicized phrases serve only as illustrations):

• Reimbursement for equipment purchased for horticulture research
• Field supplies for work with variety testing
• Lab supplies for insect research
• Vet supplies for parasite research
• Office supplies for poultry breeding research
• Software for use in department's office
• Membership dues for Sam Jones
• Reference book on "Using Windows"
• Retirement party for Pete Smith
• Travel for Pete Smith to Colorado for SR15 meeting
• Computer repair services
• Vehicle fuel or repair

9.   Signatures: The account signatory line is reserved for any individual listed as an account representative. The "School/College Review" line is reserved for the original signature of the department head, section leader or unit head.

Note: Signature stamps are not allowable for the "School/College Review." If a department head, section leader or unit head elects to have a signatory proxy review in his/her absence, the VPAG must provide prior approval of recommended proxy. The ADC does allow for a department head, section leader or unit head to have a standing proxy(ies) authorized. A memorandum specifying name(s) of faculty member(s) proposed as proxy(ies) must be provided in advance for the VPAG’s approval.

B. Processing

Attachments: The Payment Authorization must be accompanied by an original invoice and/or receipt and two additional copies. The original invoice/receipt, unless needed with the payment, will be attached to the original payment authorization by the ADC and submitted to the Foundation for processing. The second copy of the invoice/receipt is forwarded, along with the original, to the Foundation and will be enclosed with the check when it is delivered to the payee or is returned to the Office of the Vice President for Agriculture. The third copy is retained in the ADC files.

NOTE: Exceptions to this policy include checks issued as travel advances, temporary problem PAF payments, or transfers to the University of Arkansas (necessary for Movement of Funds--refer to Section I.F.2 under Procedures for additional information).

NOTE: Invoice(s) and/or receipt(s), if less than one-half page (8 1/2" x 11") in size, must be taped to a piece of paper. As many invoices/receipts should be included on the same page as possible.

NOTE: If a payment authorization submission contains more than one page of invoices/receipts, three sets should be collated.

IV. Expenditures

A. Approved Uses

Approved uses of ADC funds for Division business purposes include, but are not restricted to the following:

• Extension, Research and Teaching Activities purchases of equipment, materials and supplies, approved travel, and vehicle expenses.
• Professional Development professional society dues, journal subscriptions, professional meetings, workshops, and seminars. All journals or materials received are the property of the ADC.
• Official Functions within the Division items for public relations, development, working luncheons, and receptions.

NOTE: A description identifying the business purpose of the working luncheons, as well as a list of attendees, must be provided for consideration of payment.

B. Prohibited Uses

1.  Unrestricted Grants or Gifts: Without prior approval of the Vice President for Agriculture, expenditures of unrestricted grant or gift funds for the following are prohibited. (These prohibitions also apply to restricted-use gifts unless expressly allowed by the terms of an approved Memorandum of Agreement.)

• Direct payment of salaries/wages of faculty, staff or students
• Direct or indirect payment of overtime for individuals not eligible for such under the State Pay Plan
• Political contributions or support of other political activities
• Payment of spouse travel
• Use of ADC funds for personal gain
• Use of ADC funds to establish scholarships/fellowships in one's own name
• Excessive gratuities (15% is customary)
• Civic club dues
• Membership dues for students, including graduate students
• Payment for sabbaticals

NOTE: Direct payments of student fees and reimbursements for parking tickets, traffic fines, etc. are strictly prohibited.

2.  IRC Section 501(C)(3): ADC expenditures not consistent with the Internal Revenue Code Section 501(C)(3) status of the Foundation are prohibited.

3.  Conflict of Interest / Nepotism: Any ADC transaction involving a potential conflict of interest or nepotism is prohibited.

C. Bidding Procedures

Telephone or written bids are not required for items that cost less than $5,000.00. Documentation of three telephone bids is required for purchase of equipment or other items in the cost range of $5,000.00 - $25,000.00. Documentation of three written bids is required for purchase of equipment or other items in excess of $25,000.00. Prior written approval from the VPAG is required for any variance from this procedure.

All purchases through the Cooperative Extension Service with a value of $10,000 or more will require the prior authorization of the Associate Vice President for Agriculture - Extension.

D. ADC Vehicles

V. Travel

A.  Request for Travel Authorization

Any individual (faculty, staff, student, guest, etc.) traveling on behalf of the Division of Agriculture must have an approved travel authorization before any travel-related expenses can be processed through the ADC. The ADC's "Request for Travel Authorization Form" – Form ADC-07  (PDF - MSWord) - must be completed and signed in accordance with the approved administrative signatures.

B.  Travel Advances

Eighty percent of the total estimated cost of meals, lodging, and mileage may be received in advance for Faculty and Staff.  One hundred percent of the total estimated cost of meals, lodging, and mileage may be received in advance for students.  A payment authorization is to be completed to request a travel advance.

Travel expenses associated with an approved trip may be reimbursed prior to the trip, for actual expenses incurred only. The actual expenses must be documented with a receipt or invoice, as required by The UA Foundation, Inc.

If the approved trip is later cancelled, it is the responsibility of the traveler to immediately repay to the ADC any costs which are refunded directly to the traveler.

C.  Statement of Traveling Expenses

1.  Reimbursement for travel expenses must be within the standard state allowances.  An ADC Travel Statement Form ADC-011, (Excel), will accompany all reimbursements for travel expenses.

2.  The original and two copies of the Statement of Traveling Expenses must be submitted, along with the original receipt(s). Receipts must be submitted for all expenses: including lodging, airfare, registration, fuel purchases, road tolls, parking fees, meals, etc.

NOTE: It is the policy of The University of Arkansas Foundation, Inc., that meal receipts must be submitted for documentation of actual costs incurred.

3.  If an advance was obtained, the Statement of Traveling Expenses must indicate the total expenses incurred, the advanced amount deducted, with the total amount, either due or payable, specified. If additional payment is due the traveler, a Payment of Authorization indicating the total amount due must accompany the Statement of Traveling Expenses. If the traveler expended less than the advance received, he/she must reimburse the ADC for the balance. A check for the amount of refund and a completed Nongift Deposit Form must accompany the Statement of Traveling Expenses; a payment authorization is not required for this transaction.

VI. Scholarships

Scholarship funds may be deposited with the ADC, with accounts established as either endowed or nonendowed. The minimum level for scholarship endowments is currently $15,000.

Scholarship awards shall be in accordance with the criteria established by the donor(s).

Upon written notice, the ADC shall process the requisite documentation for a check to be issued to the awardee’s institution.

VII. PAF / Payroll Dilemmas

If an employee does not receive his/her UA paycheck at the appropriate time, a loan of ADC funds may be approved by the Vice President for Agriculture at 75% of the gross. This loan must be repaid in full to the ADC as soon as the UA check is received for that period.

VIII. Disposal of ADC Property

Without the prior approval of the Vice President for Agriculture, disposal of ADC property (including items that are purchased through the ADC or items donated to the ADC) must follow a bid process. The sale of the item(s) must be publicly announced, with the highest bid awarded.

Definitions

Noncash Gifts: Gifts of equipment and vehicles, products and commodities, animals, plants, land, and securities; but not cash, checks, credit card contributions, or payroll deductions.

Non-Public Sponsor: Non-public sponsors are corporations, foundations, organizations, individuals, et cetera not meeting the definition of public sponsor.

Proprietary: Exclusive or effectively exclusive control of research, information, or other property for the benefit of the donor/grantor.

Public Domain: Unprotected information or work. If copyright or patent protection does attach, such legal protections shall be in favor of the ADC and its designees, and such work product shall not be for the exclusive or near exclusive use of the donor, but shall be generally available for use by the public through licensing and other legal agreements.

Public Sponsor: Public sponsors are those supported by public monies including federal, state, county or municipal agencies, and foundations, and other organizations supported in part or whole by public funds.

1 Cited from the approved By-Laws of the Agricultural Development Council, The University of Arkansas Foundation, Inc.

Technical Assistance

Protocol or Policy Questions