The National Allocation, Field Grants and any revenues resulting from holding workshops (events that are reported in Engage) and other Program Income are “RESTRICTED" to be used only for specific expenditures may require additional documentation, See Chapter Allowable and Unallowable Expenditures. Expenses that are defined as “UNALLOWABLE” for use of federal award funds (Federal grant) or Program Income (Workshop Fees, etc.) by either the Code of Federal Regulations (2 CFR Part 200 – Cost Principles) or the federal funding Terms and Conditions must be paid from chapter local unrestricted funds.
Unrestricted funds comprise donations and funds from fundraising activities. (In Engage, event types such as Awards/Ceremony, Client Networking, Trade Show/Conference, which are not counted in Total Local Services, are eligible to be unrestricted events and therefore have unrestricted revenue. Please notify firstname.lastname@example.org if any revenue for an event is to be coded as unrestricted before the event occurs) If a chapter raises funds to cover any “unallowable” expenses or transferred over an unrestricted balance from the prior fiscal year, then the chapter should have adequate unrestricted funds. More details are below:
Small Business Administration Cooperative Agreement (Grant)
SCORE Association receives federal award funds through a Cooperative Agreement with the SBA. These funds are restricted to be used only for specific expenditures governed by the Code of Federal Regulations (2 CFR Part 200 – Cost Principles) and the SBA funding Terms and Conditions, which will also require additional documentation. Both the National Allocation and SCORE “Field Grants” are restricted funds directly from the federal award. Please see Allowable and Unallowable Expenditures Section for more information about what expenditures can be paid from the National Allocation. (Please See SOM Chapter 8 Chapter Finance and Accounting, Annual Budget which refers to the National Allocation ‘budget”)
Fees collected from Workshops is also restricted funds as Program Income. All workshop revenue, including donations or sponsorships received specifically to sponsor a workshop, and attendance fees for an event that is reported as activity for the chapter are also restricted as Program Income. Any funds collected through Engage and therefore through PayPal are booked as Workshop Fees unless specific instructions are emailed to email@example.com before any are collected.
Any event in Engage with an event category, that gets counted in the Total Local Services numbers, such as Workshop, Roundtable, or CEO Forum is not eligible to be considered unrestricted income, it is restricted. Events categories in Engage such as Awards Ceremony, Client Networking, or Trade Show/Convention are not counted and therefore are eligible to be considered unrestricted income. These document will defer to any changes made in Engage.
Funds from Fundraising Activities, Donations, Grants
Funds from fundraising activities, donations, local grants, and contributions from volunteers are normally considered unrestricted, meaning the funds do not fall under Uniform Guidance or the Terms and Conditions restrictions. Use of these funds must still be used to further the mission of SCORE and follow SCORE policies and business best practices.
Chapters may use NOMINAL restricted funds to solicit cash and in-kind contributions from the private sector to support the costs of carrying out SCORE’s mission. Funds raised through such activities will not be considered restricted where the chapter makes only limited use of federal funded resources (computers, email, telephones, printers, etc.) No form of compensation can be received by SCORE volunteers or employees for time spent engaging in such efforts and these fundraising activities may only involve a minimal additional expense to the Government. Contributions not meeting this requirement must be treated as Restricted Revenue in 41290 Other program income.
If a grant or donation is given to specifically support workshops then the donation is considered Program Income, is restricted, and will be classified as 41200 Workshop & seminar fees or 41290 Other program income.
Funds Received from Special Events
Some chapters have special events that involve receiving local grants, donations, and sponsorships, as well as attendance fees. Providing the event is not considered a workshop, nor reported as activity in Engage, the chapter may choose whether the event is restricted or unrestricted in entirety. The chapter may not use any restricted funds to pay for an unrestricted event. (Please notify firstname.lastname@example.org if any revenue for an event is to be coded as unrestricted before the event occurs)
- If, however, the chapter uses any restricted funds to pay for any of the event, then all the funds collected are then restricted and subject to the same expenditure rules as the national allocation or workshop fees.
- In order to prevent this, the chapter treasurer should request an Activity Code from the HQ Controller for tracking all revenue and expenses which will be predetermined by the chapter to be either unrestricted as an “Unrestricted Event” or restricted as a “Restricted Event”. Restricted events may still have unallowable costs and may use other unrestricted funds. All expenses for an unrestricted event will be unallowable by definition and coded to either 59100 Fundraising expenses or 50050 Special Events, if requested or 59900 Misc. expense. Please reach out to the SCORE Controller for help with this determination and to set up an Activity Code. See more information under Financial Reporting.