HomeMy WebLinkAbout7.c. Donation Policyr
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: November 19, 1991
AGENDA ITEM:
AGENDA SECTION:
Donation Policy
New Business
PREPARED BY:
AGEND4
7 C
Jeff May, Finance Director
ATTACHMENTS:
AP VE B .
Copy of Donation Policy F-2
Attached for your consideration is a policy regarding tee handling
of donations that staff has been working on for some time.
Concerns have been voiced in the past by staff and contributors
that donations have been lost for certain items if those donations
were not spent in the same year that they were received. We have
received other concerns about the handling of donations as well,
and felt that it was time to address this matter formally.
The resulting document before you is the result of a cooperative
effort between staff and our auditors. We have gone outside to get
ideas from other communities as well. The finished product is now
before you for your consideration and approval.
RECOMMENDED ACTION:
Motion to approve Donation Policy F-2.
COUNCIL ACTION:
CITY OF ROSEMOUNT
PROPOSED BY:
DATE APPROVED
BY CITY COUNCIL:
DONATION,POLICY
F 2
ADMINISTRATION
PURPOSE
November 19, 1991
The purpose of this policy will be to establish specific
guidelines for the handling of funds donated to the City of Rosemount.
During each year, residents, civic organizations, etc., donate
funds to the City of Rosemount. These funds are sometimes given for a
specific purpose (i.e.:park equipment, D.A.R.E.) and other times the
funds are donated without stipulation. The following procedure
outlines the course of action that should be followed when such funds
are received by the City.
PROCEDURE
A. City employees, when receiving a donation should attempt to have
the contribution designated to a specific purpose, specific
activity, a specific piece of equipment, and/or a specific
program, etc.
B. Documentation of such designation must accompany the donation.
Without such documentation, the donation may not be carried over
to the next fiscal year and therefore may be lost. The
documentation should be in the form of a memo or letter on the
organizations letterhead if available.
C. When designated, the donation should be placed in the designated
account established for the specified purpose such as D.A.R.E.,
parks equipment, etc. (Utilization of designated accounts allows
for the long term use of these special resources.)
D. Donated funds which are not designated to a specific purpose
shall be placed in a generic donation revenue account.
E. A donation committee, consisting of the Mayor, city Administrator
and Finance Director shall meet in April and October, if
necessary, to review the status of the undesignated donation
account and recommend expenditures to the City Council for their
approval.
F. Department heads shall submit a request for funds within the
undesignated donation account to the Finance Director two weeks
prior to each Donation Committee Meeting. This will only be
necessary if funds are available for distribution.
G. The Donation Committee will make recommendations as to the most
appropriate uses of the undesignated donation funds.
H. All designated donation funds shall be utilized in accordance
with the accompanying designation.
I. Unused funds within the General Fund Undesignated Donation
account will not be carried forward to the following year.
J. Donations are not to be solicited by any employee of the City of
Rosemount. However, when requested, employees are available to
work with citizens, organizations, etc., on such efforts.
K. Any unused balance of funds from a program that has been
completed, cancelled, etc., shall become part of the undesignated
donation account distributed by the Donation Committee per City
Council approval.
L. Non -monetary donations (land, equipment) shall be reviewed by the
Donation Committee, who will make recommendations to the City
Council on the appropriate use of such donations.
BUDGETING PROCEDURE
Handling of Undesignated Donation:
I. If donations received will be spent in same year
a. When the donation is received:
1) Debit - Cash (10100)
Credit - Donation Revenue (36230)
b. When making the expenditure:
1) Go to council to amend both Revenue and Expenditure
budgets by the amount of donation received
2) Make expenditure out of budget account number that was
amended
Debit - Expenditure Account #
Credit - Cash (10100)
II. If donations received in one year will be spent in a following
year
a. When the donation is received:
1) Debit - Cash (10100)
Credit - Deferred Revenue (222_)
b. When making the expenditure:
1) Go to council to amend both Revenue and Expenditure
budgets by the amount of the expenditure from the
Deferred Revenue for the donation
2) Make expenditure out of budget account number that was
amended
Debit - Expenditure Account #
Credit Cash (10100)
Debit - Deferred Revenue #(previously set up)
Credit - Donation Revenue (36230)