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In-Kind Contributions to Foundation

Approved by: Bruce Blanding

Original Date Effective: 2014-06-30

Purpose

FASB ASC 958-605 requires college foundations to recognize and disclose in-kind contributions made by the college. The following policy will outline the reporting requirements and will specify procedures to be followed by JSCC in order to remain compliant with this disclosure requirement.

Policy

In compliance with FASB ASC 958-605, the JSCC Foundation will report in-kind contributions made by Jackson State Community College (JSCC) for the benefit of the foundation if the amounts are deemed to be significant. These items will be reported as revenue on the Statement of Revenue, Expenses, and Changes in Net Position as /College Support. This will be a new line under the non-operating revenues/expenses section of the statement. The expenses will be reported in the same natural classification category they would have been reported in if the JSCC Foundation had paid for the services (i.e. salaries and wages including benefits, utilities, supplies and other services). Under FASB requirements the JSCC Foundation must record revenue and an expense in the same amount for in-kind contributions deemed to be significant. This requirement will have no effect on the amounts reported by the college; only foundation reporting will be affected.

Procedure

Jackson State Community College's (JSCC) Business Services Department will be responsible for collecting, calculating, documenting and retaining information regarding the following expenses provided to the JSCC Foundation as operational support:

  1. I. On an annual basis, the amount of salaries/benefits allocated to JSCC Foundation activities for the following JSCC employees will be collected, calculated, documented and retained for use as designated under this policy:
    1. a. Foundation Director
    2. b. Foundation Executive Assistant
    3. c. JSCC Vice President Finance & Administrative Affairs
    4. d. JSCC Business Services Director
    5. e. JSCC Business Services Accountant (assigned to Foundation)
    6. Page 2 of3 JSCC Policy Number
    7. f. JSCC Business Services Manager
    8. g. JSCC Business Services Payroll Supervisor
    9. h. JSCC OIT Systems Analyst
  2. The amount of salaries/benefits allocated will be based on total filled/unfilled positions of both regular full-time and regular part-time JSCC employees. Employees in these positions will provide an estimate of the percent of time spent on JSCC Foundation activities to their supervisor for approval. The percent of time determined to be allocated to foundation services will be multiplied by the respective employee's total salary and benefits. Then all employees, referenced above, salaries and benefits attributable to the foundation will be divided by the total salary and benefits of all filled and unfilled positions of both regular full-time and regular part-time JSCC employees (this includes restricted and unrestricted employees).
  3. On an annual basis, the amount of space allocated to JSCC Foundation activities under this policy will be collected, calculated, documented and retained for use as designated under this policy. The percent of time for each foundation-related employee determined in number one above will be used to determine how much square footage of their respective office space is related to the foundation. The number of regularly scheduled foundation board meetings that are held on campus property will also be calculated. A percent of that room's square footage will be included in the calculation. That square footage of all foundation-related employees and meeting room space will be divided by the College's total amount of square footage, including off-campus centers square footage.
  4. On an annual basis, the amount allocated to equipment provided by JSCC to the JSCC Foundation for operational use will be collected, calculated, documented and retained for use as designated under this policy. Equipment for this purpose is defined as laptop and desk top computers. All other equipment that is used is deemed to be insignificant due to it not being capitalized and only a small percentage of it would be used relative to foundation use, e.g. calculators. The percentage used in number one above, would be applied to the cost of the computer being used. Each applicable computer annual cost would be based on an estimated cost for computers by the Office of Information Technology. The estimated cost of a computer will be divided by the number of years of rotation for computers. This will generate an annual cost of each foundation-related computer. The total of the foundation-related computer costs will be divided by the total number of annualized computer costs on inventory. Annualized cost for this purpose means Inventory costs divided by the number on years of rotation.
  5. On an annual basis, JSCC will collect, calculate, document and retain any additional operational support expenses that it has provided to the JSCC Foundation to the extent that such expenses should be included under this policy.
  6. Following the annual collection and calculation of expenses under this policy, the Business Services Director will review the information with the Vice President of Financial and Administrative Affairs. Final calculations representing less than 1% of the campus total in each category will be deemed insignificant for reporting purposes. If the expenses are deemed to be insignificant for reporting purposes, the following paragraph should be included in the statement notes:

During (insert fiscal year), Jackson State Community College paid certain payroll costs amounting to (insert actual calculation), for the JSCC Foundation's Office, Business Services Department, and Financial & Administrative Affairs. The support costs paid by the College are reflected in the consolidated statements of activities as College support, with a like amount included in expenses. JSCC provides office space and the use of certain common facilities and services to the JSCC Foundation at no cost. These costs have not been recorded as College support because they are not considered to be significant to the results of activities of the Foundation.

The determination of whether these items are significant or not to the activities of the foundation will be documented and maintained. This information may be requested for review during subsequent State audits.