COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

MEMORANDUM NO. 2009-08

March 26, 2009

TO THE HEADS OF ALL STATE AGENCIES

Attention:    Chief Administrative and Fiscal Officers, and Business Managers
Subject:    Solicitation of Donations Policy Affecting Trustee Accounts

I. AUTHORITY

Sections 4-52 through 4-56 of the Connecticut General Statutes.

II. BACKGROUND

Public Act 02-107, An Act Designating Certain "Funds" as "Accounts," amended sections 4-52 through 4-56 to eliminate the terms "activity fund" and "welfare fund" and to designate all such funds as "trustee accounts." This statutory change eliminated the need for agencies to maintain a separate welfare fund.

Section 4-56 provides for a separate account for student or client funds. Unless otherwise provided by the donor, all gifts, donations or bequests made to the students or clients of any state educational institution or medical or welfare agency as a group will be placed in a separate account. The separate account for student or client funds may be a sub account within an existing trustee account.

III. SOLICITATION OF DONATIONS

The Accounting Procedures Manual for Activity and Welfare Funds does not address the question of whether an agency may solicit for donations. The Office of State Ethics has advised that solicitation of donations for accounts formerly known as welfare accounts is permissible, provided no state employee or public official is benefiting from it.

IV. ACCEPTANCE OF CONTRIBUTIONS AND GIFTS

Agencies should follow the procedures in the Accounting Procedures Manual for Activity and Welfare Funds for the acceptance of contributions and gifts. Contributions with a value under $250 may be accepted with the approval of the agency head or designee. Contributions of $250 or more are considered gifts. All gifts, trusts and/or bequests of cash, securities or property in the amount of $250 or more to a trustee account must be submitted for approval to the head of the agency, indicating the purpose and any conditions under which the gift or bequest is made and proposing the purpose for which it is to be expended. Notification to the donor of the approval or disapproval of the acceptance of the gift will be given. In order to satisfy an IRS recordkeeping requirement for donors, a donor of a monetary contribution of any amount may need an agency to provide a written communication.

V. QUESTIONS

Questions regarding this memorandum may be directed to the Fiscal Policy Division of the Office of the State Comptroller at (860) 702-3440.

NANCY WYMAN
STATE COMPTROLLER

NW:CH

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