Financial Transactions with the Stout Foundation Business & Financial Services Learn more at www.uwstout.edu

LEGAL, AUDIT, GOVERNANCE UNIVERSITY OF WISCONSIN-STOUT UW-Stout and the Stout Foundation Separate Entities A foundation that exists to provide fundraising or real estate development support to a UW institution must exist as separate and legally incorporated non-profit organization, with its own articles of incorporation, bylaws, board of directors and officers, and maintain a legal distance between itself and the UW institution it supports. Independence LEGAL, AUDIT, GOVERNANCE Examples: Separate and different tax id and status Separate accounting systems Separate audits Separate employment and Board of Directors

Transferring Funds from the Foundation to the University UNIVERSITY OF WISCONSIN-STOUT Transferring Funds from the Foundation to the University When funds are donated to the Foundation, it is important to understand that the intent of the donor is to give to projects of the University. Thus these funds are managed by the Foundation but for support of the University. However, only the Foundation Board (or designee) can approve a transfer of Foundation funds to the University, and the University has no authority to direct the Foundation to transfer funds to the University. Use of Foundation Funds Must Comply Strictly with Donor Intent

Transferring Funds from the Foundation to the University UNIVERSITY OF WISCONSIN-STOUT Transferring Funds from the Foundation to the University The Foundation cuts a check made payable to the University, which gets deposited into 233 (some grants go to 133) Once Foundation funds are deposited in University accounts, they are state funds and are fully subject to all state law requirements and restrictions. UW Accounting System Foundation System 233-1-XXXXXX #712345 Foundation Payment Request Form $ Funds $

Transferring Funds from the Foundation to the University UNIVERSITY OF WISCONSIN-STOUT Transferring Funds from the Foundation to the University The following transactions must be paid through the University (233), if the Foundation approves. Compensation to University Employees Payments to University employees for services, including any awards or honoraria, must be made through the University’s payroll system. (i.e. Endowed chairs, University staff awards.) Reimbursements for Allowable Expenses Reimbursements to University employees for business expenses that are allowable under University rules and guidelines. Student Scholarships, Fellowships, and Similar Awards The University cannot allow direct payments to students for scholarships, fellowships, prizes, and similar awards. Federal financial aid reporting rules require accounting for financial aid payments by the University and its affiliates.

Payments for Non-Allowable Expenses UNIVERSITY OF WISCONSIN-STOUT Direct Payments from the Foundation The following transactions must be paid directly by the Foundation, if the Foundation approves. Payments for Non-Allowable Expenses Reimbursements to University employees or payments to vendors for expenses that are not allowable under University rules and guidelines. Examples: - Alcohol - Sponsorships - Purely social events - Exceeding travel per diems

Foundation Payment Request Form UNIVERSITY OF WISCONSIN-STOUT Foundation Payment Request Form https://wwwcs.uwstout.edu/bfs/accounting/intranet/upload/Foundation-Payment-Request.pdf

Transferring Funds from the University to the Foundation UNIVERSITY OF WISCONSIN-STOUT Transferring Funds from the University to the Foundation University funds cannot be transferred, gifted or loaned to the Foundation

Resources UNIVERSITY OF WISCONSIN-STOUT Regent Policy Document 21-9: Institutional Relationships with Foundations https://www.wisconsin.edu/regents/policies/institutional-relationships-with-foundations/