Master Gardener Training

1. Master Gardener Training Cindy Buxton Extension Business Office 2008 http://osuebusiness.ag.ohio-state.edu EMPOWERMENT THROUGH EDUCATION

2. Part of Ohio State University Use the County Office Checking Account Do not have outside checking, savings, CD’s, endowments, etc. Use the University’s buying procedures Use the County Director and office support for processing paperwork Use the University’s lawyers Use the University’s insurance Use the University Foundation for accepting and using donations What type of group?

3. Not part of Ohio State University Separate bank account(s) Make purchases from those bank accounts Have a club member that takes care of processing the paperwork Have own legal counsel Have own insurance coverage Have own Federal Employer Identification Number (EIN) Follow federal guidelines on accepting and using donations What type of group?

4. Part of OSU Pros Extension handles the deposits You can use the Extension Office mailing address for correspondence University handles the financial statements and sales tax reporting Uses the University’s FEIN Cons Extension is responsible for the funds and must follow all University policies regarding deposits Limited access to bank account information Cannot have outside savings, cd’s endowments, etc. Cannot earn interest on funds Not Part of OSU Pros Faster processing of paperwork Unlimited access to bank account information Can earn interest on funds Cons Extension cannot handle any of the funds for the group Cannot serve as the mailing address Group has to follow all federal and state guidelines regarding sales tax reporting, financial statement creation, independent audit requirements, etc. Need to get a separate FEIN Bank Accounts

5. Part of OSU Pros Extension handles the paperwork expenses Get the support of OSU Legal for signing contracts Covered by OSU insurance for liability claims if an employee is present. Cons Slow and restrictive guidelines regarding purchasing due to University guidelines Limits vendors that you can use for purchases because of Ohio Ethics Laws Not Part of OSU Pros Group has little restrictions on use of funds and what vendor to use. Faster processing of paperwork Less documentation requirements Cons Extension cannot process any of the expenses for the group No legal support from OSU No insurance from OSU Making Purchases

6. All purchases have to be pre-approved by the County Director. Must use the University’s buying tools Purchase Order, Payment Request, Purchasing Card, Checking Account, Internal Orders, eStores Initiator on the form must be an employee Can only use vendors that are not associated with OSU (i.e. no purchases from family members) Can not sign contracts on behalf of OSU (i.e. Bus Charter agreements, room rental agreements, etc.) Most purchases take at least two weeks to process University can deny payment if not processed correctly More on Making Purchases If you are part of OSU

7. Part of OSU Pros Extension handles the paperwork for expenses and deposits Cons Dependent on availability of Extension Office staff Restricted to office hours Not Part of OSU Pros No restrictions on timing No restrictions on availability Cons Group will spend more time on the accounting functions. One person may have the bulk of the responsibility Paperwork Processing

8. Part of OSU Pros Support of University Legal Department for signing contracts and reviewing/recommending changes Cons It is time consuming to process contracts through OSU Purchasing or OSU Legal State restrictions do not allow us to agree to some common terms. Not Part of OSU Pros No restrictions on timing No restrictions on terms in contracts Cons Group or an individual will be accepting liability for some contracts. Group may want to seek outside legal counsel for help. Cannot use OSU. Legal

9. Part of OSU Pros Covered by OSU liability insurance when an employee is present. University covers over $10,000 Can be covered by OSU Volunteer liability insurance There may be a fee depending on the County. Cons May need to create a reserve since the University’s deductible is so small. Can purchase accident insurance, but must do this through a University Purchase Order which takes time. University coverage requires that an employee be present during the entire event. Not Part of OSU Pros Can purchase a smaller policy for the group that could have a smaller deductible Can purchase Accident insurance without a Purchase Order May still be able to be covered by Volunteer insurance Depends on the County Cons Not covered under University Insurance Insurance

10. Part of OSU Pros Use the University’s FEIN. Can use the University’s Foundation (501c3) for donations and gifts. OSU Fund numbers 3xxxxx, 4xxxxx, 6xxxxx, 590000(osurf) University creates financial statements. University tracks and reports sales tax. University follows all guidelines regarding Federal and State laws for Educational, non-Profit and grant institutions. University files tax return. Cons University’s restrictions can be cumbersome and time consuming. Not Part of OSU Pros No time restrictions No documentation restrictions from the University. Cons Must apply for FEIN independently. Must apply for 501c3 status for accepting donations and follow all reporting guidelines. Must understand all the federal and state rules. Must track financial paperwork and file financial statements if necessary. Must track sales tax and report on this to the State. May need to file a tax return. Federal & State Guidelines

11. Summary • It is important to weigh all options. • OSU Extension depends on the County and the Master Gardener Group to determine which is the best option. • Every program is different! • There can be no overlapping of responsibilities.