{"id":400,"date":"2022-03-22T12:06:05","date_gmt":"2022-03-22T16:06:05","guid":{"rendered":"https:\/\/websites.emerson.edu\/orcs\/?p=400"},"modified":"2022-03-22T12:06:05","modified_gmt":"2022-03-22T16:06:05","slug":"guidance-and-procedures-for-the-processing-and-management-of-restricted-gifts-updated-march-2022","status":"publish","type":"post","link":"https:\/\/websites.emerson.edu\/orcs\/2022\/03\/22\/guidance-and-procedures-for-the-processing-and-management-of-restricted-gifts-updated-march-2022\/","title":{"rendered":"Guidance and Procedures for the Processing and Management of Restricted Gifts (Updated March 2022)"},"content":{"rendered":"\n

In June 2018, the Financial Accounting Standards Board (FASB)<\/a> issued an Accounting Standards Update (ASU) that clarifies and revises how a non-profit organization may account for \u201ccontributions of cash and other assets received\u201d from an external entity. It is meant to reduce \u201cdiversity in practice\u201d and improve guidance as to whether a transfer of assets is a contribution<\/em> or an exchange transaction<\/em>.<\/p>\n\n\n\n

Based on this guidance, the Office of the Controller<\/a> at Emerson College has determined that certain awards that were previously classified as \u201cgrants\u201d or \u201cagreements\u201d may now be classified as contributions<\/em>, and accounted for as \u201cconditional (or restricted) gifts\u201d. The basis for this is the FASB\u2019s contention that, unlike an exchange transaction (e.g. a fixed-price service contract), contributions are not contingent on a specified level of service, identified number of units of output, or a specific outcome. They nonetheless may still contain stipulations previously associated with grants, including:<\/p>\n\n\n\n

  1. A finite award period\/period of performance<\/li>
  2. Narrative progress and final reports<\/li>
  3. Cost restrictions<\/li>
  4. The requirement to return any unspent funds at the end of the award period.<\/li><\/ol>\n\n\n\n

    In contrast, an \u201cunrestricted gift\u201d does not include any such requirements.<\/p>\n\n\n\n

    While the College is modifying how it classifies and records the revenue from contributions, the change in classification does not negate whatever requirements a sponsor may include in an award\u2019s terms and conditions. Accordingly, the Provost and Vice President for Academic Affairs has stipulated that restricted gifts shall continue to be managed by the College with the same oversight and accounting standards that were applied when they were deemed grants or contracts. Specifically, this means the following:<\/p>\n\n\n\n