EXTENSION ADMINISTRATIVE HANDBOOK - USE OF EXTENSION FUNDS
Chapter 2 Section A4
A4. Non-Appropriated Funds
1. Non-Appropriated Funds within Local Extension Units are excluded from the regulations prescribed for expending of fund accounts where appropriated Smith Lever federal funds may reside. Non- Appropriated Funds will be used to identify and track those dollars that come into or go out of Local Extension Unit accounts that are not coming from tax dollars from the local County Government or Extension District tax appropriation. Non-appropriated funds include any funds, outside of appropriated tax dollars, collected by the Local Extension Unit for Extension educational purposes: i.e. fees, gifts, registrations, grants, etc.
2. Another type of non-appropriated fund, not included in the local Extension unit account, would be those monies collected and dispensed by Extension affiliated groups with their own bank accounts such as 4-H clubs. There are approved Principles for Managing Non-Appropriated Funds of Affiliated Groups:
Principle #1: All Accounts and all expenditures of funds of the Local Extension Unit, from whatever source derived, are subject to approval of the Extension Board and the Director of K-State Research and Extension. The Director and local Extension Boards are accountable for all non-appropriated funds generated for Extension programs. This includes all funds collected/raised in the name of Extension 4-H Clubs.
Principle #2: Extension employees should not be signatory on any fund accounts, whether appropriated or non-appropriated. All accounts should require at least two signatures for withdrawals.
Principle #3: All funds should be receipted each time they change hands (i.e. at time of collection from payee, from the financial institution upon deposit, between any individuals to whom funds are transferred).
Principle #4: All Extension affiliated entities must have their own employer identification number from the Internal Revenue Service and all 4-H accounts must be included in the data base of approved clubs/organizations maintained by the Kansas State University Department of 4-H Youth Development.
Principle #5: All local Extension affiliated groups including 4-H Clubs, are included in the tax reporting jurisdiction of local Extension Boards and must have their financial records reviewed annually by the local Extension Board.
3. Responsibilities of Extension Boards for Extramural Funds
The Extension Board and the Extension Director’s duly authorized representative must pre-approve all submissions of applications for grants or other extramural funds. Form KSU 1-13 must be completed by the Extension Board and the Director’s representative prior to any grant being received by and processed through the local Extension unit.