BRADLEY FOUNDATION

GRANTS PAYABLE ACCOUNTING

During 1992 the grant administration function of the Foundation was transferred to the computer network. In this connection, a software program called PC-Gifts was purchased and installed to account and administer the grant activity of the Foundation.

The PC-Gifts database includes all grant information and, accordingly, has the capability to print a variety of reports. The workpapers include a copy of the Summary of Grants for the year ended December 31, 1996.

PC-Gifts serves both the program staff and the financial needs of the Foundation. In certain instances there are differences in how a grant is defined and accounted for between the program and financial needs of the Foundation. Workpaper (P-1) includes a reconciliation between the Summary of Grants per PC-Gifts and the financial records. All differences are explainable and reasonable.

GRANT PAYMENT SCHEDULING PROCEDURE -- 1996

The Program Staff establishes the payment year/s for each grant at the time the proposal is placed on a Steering Committee meeting agenda. After the grant is awarded and the grant agreement (contract) is returned, the Program Administrator suggests to the Program Staff a specific payment schedule based on prior payment history and efforts to expand the Foundation's multiple installments program. After the Program Staff accept/change the proposed payment schedule, the schedule is approved by the Chief Financial Officer. The Program Administrator records and tracks the payment schedule. Three times per month the Assistant Program Administrator produces a list of payments for an approaching payment date (with a supplement of detailed information regarding the grants as permanent record); the list is signed by the President as authorization to produce the checks. Assistant Program Administrator prepares checks from database. Checks are signed via an electronic signature cartridge controlled by Executive Assistant and/or Chief Financial Officer. Checks less than $200,000 are signed with a dual electronic signature; checks $200,000 and above require two manual signature. A cover letter is produced for the check prior to being mailed.

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