4 FAM 380
GIFT FUNDS
(CT:FIN-438; 01-27-2015)
(Office of Origin: CGFS/FPRA/FP)
4 FAM 381 General
4 FAM 381.1 Scope
(CT:FIN-430; 09-06-2013)
a. This subchapter discusses the accounting for gift
funds accepted by the Department of State. This includes fund 19X8821 for
unconditional gifts and 19X8822 for conditional gifts. The policy for
solicitation and/or acceptance of gifts made for the benefit of the Department
or for carrying out its functions is described in 2 FAM 960,
Solicitation and/or Acceptance of Gifts by the Department of State. For more
detailed accounting procedures and coding requirements, see M/EDCSs Gift Fund
Standard Operating Procedures (informally known as the Gift Fund Manual.)
b. Gift funds are receipts that are held in trust for
use in carrying out specific purposes and programs in accordance with
agreements or statutes. Pursuant to statutes listed in this FAM and 2 FAM 960, the
Department is authorized to accept certain gift funds to benefit the Department
of State or to carry out its functions. The Department of the Treasury has
authorized gift fund accounts for the Department to use in accounting for these
funds.
c. The guidelines in this subchapter include gifts of
invitational travel for consultations, speakers, and gifts from foreign
governments under 22 U.S.C. 2697 and 5 U.S.C. 7342. Invitational travel from
non-Federal sources accepted under 31 U.S.C. 1353 for travel to a meeting or
similar function is not accounted for as part of the gift fund and is
therefore not detailed in this subchapter.
4 FAM 381.2 Authorities
(CT:FIN-390; 03-28-2008)
The authorities in this subchapter include:
(1) State Department Basic Authorities Act of 1956,
Sec. 25, as amended (22 U.S.C. 2697);
(2) Mutual Educational and Cultural Exchange Act, Sec.
105(f), as amended (22 U.S.C. 2455(f));
(3) Ethics Reform Act, as amended (31 U.S.C. 1353);
(4) Foreign Service Buildings Act of 1926, Sec. 9, as
amended (22 U.S.C. 300);
(5) Foreign Gifts and Decorations Act, as amended (5
U.S.C. 7342 and 22 CFR Part 3);
(6) 41 CFR Sections 301 and 304;
(7) 5 U.S.C. 4111 and 5701-5709; and
(8) Public Law 80-402.
4 FAM 381.3 Definitions
(CT:FIN-390; 03-28-2008)
Several terms are used throughout this subchapter: gift,
employee, and representational use. The definitions are contained in 2 FAM 961.4.
4 FAM 381.4 Responsibilities of
Gift Fund Manager
(CT:FIN-430; 09-06-2013)
a. The Under Secretary for Management, also designated as
the Department's Chief Financial Officer, has delegated the responsibilities of
Gift Fund Manager to the program officer located in the Office of the
Emergencies in the Diplomatic and Consular Service (M/EDCS) to oversee the
administration of the Departments gift funds.
b. Except as provided for in 2 FAM 960,
acceptance of gifts of funds must be approved on a case-by-case basis in
advance. The Gift Fund Manager must approve all gift funds received
domestically by the Department of State, with the exception of gifts provided
to the Fine Arts Committee for the benefit of the Diplomatic Reception Rooms.
The Fine Arts Committee for the Diplomatic Reception Rooms (M/FA) maintains its
gift funds independently.
4 FAM 382 Types of Gift Funds
4 FAM 382.1 Classification of Gifts
(CT:FIN-438; 01-27-2015)
a. Gifts are classified as either unconditional gifts
or conditional gifts. Section 25 of the State Department Basic Authorities Act
of 1956 (22 U.S.C. 2697) authorizes the Department to accept unconditional
gifts and, at the discretion of the Secretary of State, conditional gifts. The
Department prefers that gifts to the Department be offered without conditions
for purposes of accounting and allocation:
(1) Unconditional gifts are
gifts that the Department may use for any lawful purpose. Donors may express
nonbinding preferences in how they wish the Department to use their gifts.
Generally, the donor states a preference or gives guidance regarding the future
disposition or use of the gifts;
(2) Conditional gifts are
gifts offered by which the Department agrees to use the gift in the manner
specified by the donor. By accepting such gifts, the Department is bound by
the terms of the donor. However, no conditional gift may be accepted that is
based upon any expenditure that cannot be met by the gift or the income from
the gift, unless such expenditure has been approved by Congress.
b. Gifts may be accepted for any purpose that the
Department is authorized to carry out. Examples of some of these gifts are:
(1) Public Diplomacy (see 2 FAM 962.9);
(2) Embassy Refurbishment Projects and Gifts of
Property (see 2
FAM 962.6 and 2 FAM 962.4,
respectively);
(3) Representational purposes, such as trade
promotions, nonprofit events, or Fourth of July events (see 2 FAM 962.7 and 2 FAM 962.8);
(4) Gifts of travel (see 2 FAM 962.12);
and
(5) FSN Emergency Relief Fund (see 2 FAM 962.14).
4 FAM 383 gift FUND ACCOUNTS
4 FAM 383.1 Available Receipts
(CT:FIN-396; 12-01-2008)
Collections to the gift fund accounts are available
receipts. Under law or trust agreements, they are immediately available in
their entirety as appropriations to a single agency for expenditure without
further action by the Congress. In order to assure that collections of
available receipts are properly recorded by the Department of the Treasury,
separate receipt and expenditure accounts are used. The receipt and
expenditure accounts for gift funds are listed in 4 FAM 383.2.
Receipt accounts have a point limitation (.1, .2, etc.), depending on the
source of the funds. The no-point account limitation is the expenditure
account and is used to record amounts appropriated from trust fund receipts.
4 FAM 383.2 List of Funds
(CT:FIN-396; 12-01-2008)
|
Fund Symbol
|
Title and Purpose
|
|
19x8821
|
Unconditional Gift Fund (Expenditures)
|
|
19X8821.1
|
Unconditional Gift Fund (Receipts)
|
|
19X8821.2
|
Earnings on Investments, Unconditional
Gift Fund
|
|
19X8822
|
Conditional Gift Fund (Expenditures)
|
|
19X8822.1
|
Conditional Gift Fund, General (Receipts)
|
|
19X8822.2
|
Earnings on Investments, Conditional Gift
Fund, General
|
Activities under these funds are cited in the 4 FAH-1
H-621.8.
4 FAM 383.3 Investment of Gift
Funds
(CT:FIN-430; 09-06-2013)
The Department of State authorizes the investment of the
gift funds under section 25 of the State Department Basic Authorities Act of
1956, as amended (22 U.S.C. 2697). These accounts are maintained for earnings
on investments in U.S. Treasury securities. The Bureau of the Comptroller and
Global Financial Services (CGFS) performs this function and follows M/EDCSs
gift fund standard operating procedures.
4 FAM 384 ADMINISTRATIVE AND ACCOUNTING
PROCEDURES
4 FAM 384.1 Acceptance of Gifts
(CT:FIN-438; 01-27-2015)
a. Agency officials having authority to accept gifts
should generally encourage donors to describe such gifts as unconditional,
although they may request that the gift be used for a specific purpose or
event. This will maximize flexibility should a balance remain upon completion
of the intended use. Donors may seek advice from the Gift Fund Manager on
matters related to acceptance of accounting and acknowledgement of gifts.
b. Monetary gifts: A donors
check must be made payable to the Department of State, accompanied by a
donors letter describing the purpose of the gift. Although rare, gifts of
cash may be accepted and processed in accordance with M/EDCSs gift fund
standard operating procedures.
c. Gifts in-kind: Individuals
with the authority to accept gifts should immediately record or direct the
recording of the acceptance in accordance with Department guidance on
accounting of Government property. At the end of each fiscal quarter, submit a
report through the bureau executive office or post management office to the
M/EDCS Gift Fund Manager. The M/EDCS Gift Fund Manager will compile an annual
report giving the total valuation of gifts received, accepted, and utilized by
each element of the Department for program, project, or administrative
purposes.
d. Gifts of goods or cash must have a donor letter.
Provide a copy of the donor letter to the M/EDCS Gift Fund Manager. (See 2 FAM 960 Appendix A,
Sample Donor Letters).
e. Acknowledgment letter: It
is the responsibility of the individual with the authority to accept gifts to
acknowledge receipt and acceptance in a written response.
f. Additional information on solicitation and
acceptance of gifts is found in 2 FAM 960.
4 FAM 384.2 Valuation
(CT:FIN-390; 03-28-2008)
a. Valuations for gifts in-kind generally should be
consistent with the amount declared by the donor, if any. The Department
accepts the donor valuation but does not verify acceptance of the amount with
the Internal Revenue Service (IRS). Donors gifts may be subject to a personal
donor audit by the IRS.
b. Individual U.S. citizens and corporations may be
eligible to take a Federal tax charitable deductible for gifts to the
Department subject to the limits in section 170 of the Internal Revenue Code
and other IRS guidelines. Contributions made to the Department to be used for
the continued support and growth of the Fulbright Commission may also be
deductible by donors in the manner and to the extent provided by Section 170 of
the Internal Revenue Code. Such contributions must be made payable directly to
the Department, with a request that it be used to further stated Department
purposes.
c. Contributors should seek advice from their own tax
adviser or attorney as to the deductibility or other tax treatment of any gifts
to the Department.
4 FAM 384.3 Deposits to Gift Fund
(CT:FIN-430; 09-06-2013)
a. Domestic:
(1) M/EDCS deposits the donors check into the
Treasury General Account and notifies CGFS. The Bureau of Budget and Planning
(BP) processes allotment increases once all documentation is received and the
receipt is verified in the accounting system. Secure all checks and cash in a
safe until deposited. If clarification is needed as to the intent of the
donation, M/EDCS follows up with the donor and consults with L before
depositing the check in a specific account;
(2) M/EDCS maintains the gift fund database with
pertinent information for processing, such as the amount, date of donation, and
intent of donation;
(3) M/EDCS deposits the check directly into the
Treasury General Account using Form SF-215, Deposit Ticket, and retains a
record copy. M/EDCS will comply with all the pertinent U.S. Treasury
regulations on deposit of receipts; and
(4) M/EDCS prepares a gift check deposit spreadsheet
with the necessary accounting information to track and verify the recording of
collections into the financial management system. Refer to 4 FAM 383 and
M/EDCSs gift fund standard operating procedures for specific coding instructions.
b. Overseas:
(1) Funds are deposited by agency official having
authority to accept gifts with the cashier. The cashier records the collection
in the appropriate gift fund account using Form OF-158, General Receipt. Refer
to 4 FAH-1
H-621.8 and standard operating procedures for gift funds for specific
coding instructions;
(2) Post sends a cable or other written
acknowledgement to the regional bureau that a deposit has been made. The
regional bureau serves as the liaison between the post and BP concerning the
allotment of funds back to the post. The cable must include the total amount
of the deposit in U.S. dollars, appropriation, revenue source code, name of
donor, statement describing the purpose of the gift, date, and voucher number
and;
(3) Post records the collection in the accounting
system (via download from the cashiering system).
c. The suspense deposit abroad (SDA) account should
not be used for the collection (or expenditure) of any gifts, including
donations to Fourth of July events (see 4 FAM 386).
4 FAM 384.4 Disposition of
Deposited Funds
(CT:FIN-430; 09-06-2013)
The M/EDCS Gift Fund Manager consults with Department
bureaus or financial management officers on utilizing gift funds and determines
which contributions should be allotted for immediate use and which can be
invested:
(1) Allotment of funds: After
confirming the funds have been recorded, BP will either allot the funds or
provide allotment authority upon receipt of required documentation. For some
allotments, operating allowances that identify the projects or events will be
established. Allottees receive the Advice of Allotment through the same
distribution process as appropriated funds. Allottees will inform post or
bureau by cable or other written means of the disposition of funds. For
additional details, refer to 4 FAM 383 and
the Gift Fund Manual; and
(2) Investment of funds: Some
projects do not require an immediate expenditure of funds, and funds may be
invested immediately. M/EDCS will consult regularly with bureau managers to
determine the feasibility and length of time funds may be invested with the
U.S. Treasury. CGFS will accrue interest income on a monthly basis.
4 FAM 384.5 Responsibility of
Allottees
(CT:FIN-430; 09-06-2013)
Allottees are officials of the Department who have
received authorization from BP (generally, Advice of Allotment) to incur
obligations within a specific amount pursuant to an appropriation or other
statutory authority. These responsibilities include but are not limited to:
(1) Obligating funds in accordance with the terms and
conditions of the gift, if any;
(2) Ensuring that obligations do not exceed the
cumulative total and limitation amounts authorized by allotment advices through
the current quarter;
(3) Ensuring that all obligations entered in the
accounting system are true obligations supported by prescribed documents and
that the obligations are valid charges against the fiscal year sought to be
charged;
(4) Reviewing unliquidated obligations periodically,
but not less often than quarterly, to ensure obligations are valid;
(5) Requesting CGFS to invest funds donated for
long-term projects that will not require an immediate expenditure; and
(6) Ensuring that proper procurement procedures are
followed for transactions that result in obligations against the allottees
funds.
4 FAM 384.6 Fund Reconciliation
(CT:FIN-430; 09-06-2013)
CGFS is responsible for ensuring that the cash balance
between the Department and the Department of Treasury is in agreement. This
will require reconciliation between the balances shown on the Departments
accounting system reports and the Treasury balances, as indicated on Treasury
Form FMS-6653, Undisbursed Appropriation Account Ledger; Form FMS-6654,
Undisbursed Appropriation Account Trial Balance; and Form FMS-6655, Receipt
Account Trial Balance/Ledgers. CGFS will perform this reconciliation each
month and research differences so that they can be corrected the following
month.
4 FAM 384.7 Audit of Funds
(CT:FIN-390; 03-28-2008)
Gift fund donations (cash, property, or other gifts) and
the interest income earned are subject to the same examination and audit as
provided for appropriations made by Congress (22 U.S.C. 2697).
4 FAM 384.8 Reporting
(CT:FIN-430; 09-06-2013)
With the exception of nongift fund invitational travel or
as otherwise prescribed by the 2 FAM 960, all
gifts should be reported by e-mail or memo, as appropriate, to the Gift Fund
Manager in the M/EDCS. This includes gifts from nonforeign individuals and
entities and gifts of cash. The e-mail or memo should include the name of the
donor, the donors business affiliations, the amount of the gift (if cash) or
the value (if in-kind), date, voucher number, and the specific purpose for
which the gift has been allocated. Reporting procedures are reflected in 2 FAM 964.
4 FAM 384.9 Allotment of Carryover
(CT:FIN-430; 09-06-2013)
At the end of the fiscal year, the unused allotted funds
will become the carryover balance if proper posting was made to the financial
management system. However, the carryover balance must be allotted by the
Bureau of Budget and Planning (BP) to the functional or regional bureau in the
next fiscal year, with reallotment to posts as needed. The carryover is not
automatically available.
4 FAM 385 Public diplomacy gifts
4 FAM 385.1 Authority
(CT:FIN-390; 03-28-2008)
Apart from other statutory gift acceptance authorities,
the Department has specific authority to accept gifts for a number of public
diplomacy-related activities. Gift acceptance procedures will follow the
guidelines contained in 2 FAM 960:
(1) In accordance with the authority of Section 105(f)
of the Mutual Educational and Cultural Exchange Act of 1961, as amended (Public
Law 87-256; 22 U.S.C. 2455(f)), the Department accepts and utilizes donations
and contributions from international organizations and private individuals,
firms, associations, and other groups to accomplish the purposes of the Act;
and
(2) The United States Information and Educational
Exchange Act of 1948, as amended (Public Law 80-402), and Reorganization Plan
No. 2 of 1977, authorize the Department to accept funds from any other
government for expenses of any part of the Departments programs undertaken
pursuant to this Act.
4 FAM 385.2 Purpose of Funds
Credited to Account 19X8821.1
(CT:FIN-396; 12-01-2008)
The purposes of funds credited to account 19X8821.1
include:
(1) Donations and contributions received to help
defray costs of international fairs and exhibitions abroad; and
(2) Contributions to provide film prints to foreign governments
and to send experts abroad to perform requested services.
4 FAM 386 Fourth of July/Independence
Day gifts
4 FAM 386.1 Authority
(CT:FIN-438; 01-27-2015)
The regulations in 2 FAM 962.8 authorize post management officers to solicit
and accept certain gifts from private sources for official Fourth of July
events, subject to conflict-of-interest and other limitations. More specific
guidance is issued by the Office of the Legal Adviser (L) annually on Fourth of
July solicitations.
4 FAM 386.2 Gift Acceptance
(CT:FIN-438; 01-27-2015)
a. Fourth of July gifts may be accepted under the
provisions set forth in 2 FAM 962.8.
b. Posts should accept contributions from a broad array
of U.S. organizations/firms. This limits the perception that any one group is
the sole sponsor of the event.
c. All contributions received for the Fourth of July,
whether cash or in-kind, should be given as unconditional gifts.
4 FAM 386.3 Gifts for Nonofficial
Fourth of July Events
(CT:FIN-438; 01-27-2015)
The 2 FAM 962.8 does not provide authority for employees or
their family members to solicit or accept gifts on behalf of the U.S.
Government for nonofficial Fourth of July events. Nonofficial Fourth of July
events include any event other than the official Fourth of July
representational event, such as those events hosted by individuals or sponsored
by employee associations or local American Chambers of Commerce. Gift funds,
which are official funds, may not be used for nonofficial Fourth of July
events.
4 FAM 386.4 Accounting
(CT:FIN-396; 12-01-2008)
Fourth of July monetary gifts will be deposited to the
unconditional gift fund account 19X8821.1. Deposits must be recorded under
allotment 9920. The obligation number should be recorded as a six-digit figure
comprised of the following: The first digit represents the fiscal year; the
second through fourth digits will be the post code; and the fifth and sixth
digits will be a sequential number starting with 01. The revenue source code
must be recorded as AFGF.
4 FAM 387 through 389 unassigned