Endowment Consolidated Endowment Consolidated ReportReport

A very useful tool in monitoring the overall A very useful tool in monitoring the overall status of your Endowmentsstatus of your Endowments

But First Some-DefinitionsBut First Some-Definitions Endowment –Endowment – A special fund whereby the principal is held for A special fund whereby the principal is held for

investment and the (payout) interest earned on the principal is spent investment and the (payout) interest earned on the principal is spent as directed by the donor. Requires *$40k to set up a basic as directed by the donor. Requires *$40k to set up a basic endowment, $100K Fellowship, $300K Professorship, $2.5M Chair.endowment, $100K Fellowship, $300K Professorship, $2.5M Chair.

TrueTrue – Donor specifies principal is to be invested and maintained in – Donor specifies principal is to be invested and maintained in perpetuity; only the income distribution (Payout) may be expended as perpetuity; only the income distribution (Payout) may be expended as per the designations in the signed endowment agreement.per the designations in the signed endowment agreement.

QuasiQuasi – funds functioning as an endowment, that are set aside by the – funds functioning as an endowment, that are set aside by the institution from either donor or institutional funds, and will be retained institution from either donor or institutional funds, and will be retained and invested and the payout expended as per the institutions and invested and the payout expended as per the institutions designation. designation.

Setup Forms and Setup Forms and Naming-ApprovalNaming-Approval Forms Forms

*Policy effective date 8-1-06*Policy effective date 8-1-06

   

Fiduciary ResponsibilityFiduciary Responsibility With the acceptance of endowment funds from With the acceptance of endowment funds from

an outside donor does the University have a an outside donor does the University have a Fiduciary Responsibility?Fiduciary Responsibility? Yes! We need to make sure the funds are held and Yes! We need to make sure the funds are held and

expended in compliance with donors wishesexpended in compliance with donors wishes Do Do allall endowments have a governing document endowments have a governing document

which indicates how the payout is to be spent?which indicates how the payout is to be spent? Yes! Yes! Please let me know if you need a copy of the Please let me know if you need a copy of the

endowment agreements or need to know the endowment agreements or need to know the purpose/restriction on any of your endowmentpurpose/restriction on any of your endowment

Consolidated Endowment Report Consolidated Endowment Report HandoutHandout

HandoutHandout - Please copy the handout for - Please copy the handout for your staff.your staff. Make sure everyone that deals with Make sure everyone that deals with

endowments is aware of this report and that it endowments is aware of this report and that it can be run ANYTIMEcan be run ANYTIME

Endowment Consolidated ReportEndowment Consolidated Report

Principal (35,55,72)Principal (35,55,72)

Donations (Cash, Gift in Kind)Donations (Cash, Gift in Kind) Transfers in by DepartmentTransfers in by Department

Endowment Income Fund 32Endowment Income Fund 32

Fund 32 Income shows capital appreciation/interest Fund 32 Income shows capital appreciation/interest earned on the invested principleearned on the invested principle

Investment Pool (Account 1120) Investment Pool (Account 1120) Ensign Peak (Church Entity) Ensign Peak (Church Entity) Investment Pool Buys and Sells-Net Claim on Cash Investment Pool Buys and Sells-Net Claim on Cash Monthly earnings Journal entry Monthly earnings Journal entry

The Financial Services web pageThe Financial Services web page

Checking the Investment PoolChecking the Investment Pool

Click on “Organizations and Services” > “Services” > Click on “Organizations and Services” > “Services” > “Banking, Cash, and Investment”“Banking, Cash, and Investment”

Checking the Investment PoolChecking the Investment Pool

Click the link “Investment Pools Monthly Click the link “Investment Pools Monthly Performance Return Chart”Performance Return Chart”

Checking the Investment PoolChecking the Investment Pool

Shows returns in the Investment Pool Shows returns in the Investment Pool Claim on cash – Proposed EndowmentClaim on cash – Proposed EndowmentChecking the Investment PoolChecking the Investment Pool

SubtotalSubtotal

35,55,or 72 + 32 35,55,or 72 + 32 Shows balance that cannot be spentShows balance that cannot be spent

Operating Fund 31Operating Fund 31

Shows the balance that Shows the balance that shouldshould be spent as per be spent as per restriction. We are monitoring spending/restriction restriction. We are monitoring spending/restriction

Payout-occurs in January of each year (32 to 31)Payout-occurs in January of each year (32 to 31) When is payout available for new endowments?When is payout available for new endowments?

Setup in 2007, payout January 2009Setup in 2007, payout January 2009 Can unused funds be moved back to the 32?Can unused funds be moved back to the 32?

Yes but on 72 (True Endowments) the funds should be spentYes but on 72 (True Endowments) the funds should be spent Send me an email and I will make journal entry Send me an email and I will make journal entry

TotalTotal

Fund 72,55,72 +Fund 32 + Fund 31Fund 72,55,72 +Fund 32 + Fund 31

Any Questions or Comments?Any Questions or Comments?

Yet a bit of comic relief…Yet a bit of comic relief…