The term “external organization” (EO) refers to any organization that acts on its own behalf. It is not legally part of the university and generally has its own taxpayer identification number (tax ID). Examples include alumni associations and student organizations.
Under specific, limited circumstances, Cornell can act as a fiscal agent for managing funds for an EO. The EO account activity is governed by.
To request a new account or sub-account for a new EO, the authorized representatives for Cornell and the EO must complete the application and agreement forms below.
An authorized representative is a Cornell University employee authorized by an EO to open a university account on the EO’s behalf. The authorized representative or a designee will have signature authority on the account and, therefore, can process transactions on behalf of the external organization.
The EO's and Cornell's authorized representatives must complete the EO account agreement before completing the application for an EO account. Then, the completed agreement and application forms must be signed by the EO’s and Cornell's authorized representatives and submitted for review and approval to the director of Risk Management and Insurance and the vice president for finance (as delegated by the EVP and CFO).
Submit both completed forms as attachments to your New Account/New Sub-Account e-doc request.
External organizations must meet these minimum criteria.
Examples of mission-related account purposes may include, but are not limited to, the following:
Cornell University does not own the resources in an EO account. While the EO remains the owner of its EO account funds and is solely responsible for how such funds are spent, Cornell reserves the right, at any time, without explanation or justification, to decline providing service or transaction processing at their discretion. Units must make all transactions posted to an EO account on behalf of the EO and under the laws, contracts, and relationships of the EO and all applicable regulations governing these activities.
The following university services are available for EO accounts:
The following services are not available for EO accounts:
Authorized representatives and Cornell employees with transaction authority on the EO account must follow the terms and conditions established by the EO and ensure that only allowable costs, as defined by the EO, are processed against the EO account.
The EO authorized representatives and Cornell employees with transaction authority on the EO account must follow the following transaction processing rules:
The authorized representative and any Cornell employee with transaction authority on EO accounts must:
Annually report to Alumni Affairs & Development (or the Office of Alumni Relations at Weill Cornell Medicine) and the Office of the Controller the gift or endowed funds that have been transferred to an EO account and used per donor restrictions.
If an EO sells goods or services, including digital products or services, and collects any sales, use, gross receipts, or similar taxes, the EO must report the taxable sales and the amount of tax collected or due to their unit finance leader in a timely fashion.
The EO’s unit finance leader will set the precise method and timeline of required sales or similar tax reporting.
All sales or similar tax collected or due by an EO and deposited or recorded in the EO account will be remitted by Cornell University on its sales or similar tax returns under the applicable Cornell tax procedures.
Before closing an account, ensure all known and anticipated expenses have been applied and there are no outstanding purchase orders or encumbrances. To close an account, change the Status to Closed.
Account closing rules:
Any balance remaining in the EO account after completion of the activity (e.g., symposium, consortium, etc.) will be disbursed at the direction of the EO.
Fund balances can be disbursed as follows: