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CSU POLICY

Section 3000 Policies

Policy Number:  3151.03

Policy Title: Recording Gifts of Property

Policy Effective Date: April 1, 2011

Last Revision Date: April 1, 2011
(see revision history)

POLICY OBJECTIVE

It is the policy of the California State University (CSU) to record gifts of property at fair market value. Each campus must prepare written procedures that implement this policy.

POLICY STATEMENT

The campus President or designee is responsible for ensuring that a documented process is followed for the evaluation, acceptance, and recording of gifts of property to their respective campus.  Executive Order No. 676 sets forth the responsibilities of the campus President or designee in accepting property gifts.

If title to the property gift is to be held by the campus or an auxiliary organization that reports its financial statements using the accounting rules as promulgated by the Governmental Accounting Standards Board (GASB), then the gift should be recorded in accordance with GASB Statement No. 33, Accounting and Financial Reporting for Non-exchange Transactions. If title to the property is to be held by an auxiliary organization that reports its financial statements using the accounting rules as set forth by the Financial Accounting Standards Board (FASB), then the gift should be recorded in accordance with the rules as summarized in Chapter 5 of the American Institute of Certified Public Accountants’ Audit and Accounting Guide: Not-for-Profit Organizations.

Generally, FASB and GASB accounting rules require gifts of property to be recorded at fair value. As such, campus are required to record such gifts in their property records (or those of the auxiliary organization) using objective criteria. When property gifts are made between the campus and one of its auxiliary or vice versa, the transaction should be recorded at historical cost as discussed in the CSU Capital Assets Guide.

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

CSU Capital Assets Guide (included in the annual CSU GAAP Manual)

SUAM Section 9019 et seq. (see esp. Due Diligence requirements for suitability prior to acceptance of property interest)

Related Principles:

• GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, GASB Statement No. 34: Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, and Chapter 5 of the American Institute of Certified Public Accountants' Audit and Accounting Guide: Not-for-Profit Organizations.

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates:

• Executive Order No. 676
• California Ed. Code Section 89720.