Endowment Suspense 10 (for non-majors)
UW Endowments from the Perspective of Endowment Suspense
10-13-09
1. Endowments have minimums.
$25,000: program support, research fund, lectureship
$50,000: scholarships
$100,000: Fellowships
$250,000: Professorships
$1,000,000: Chair
Two facts about endowment investing:
2. Gifts are invested once each quarter.
UW Endowment Basics
Suspense Account
CEF
JunFeb Mar Apr May
Accumulating gifts to new endowments
Additions to existing (invested) endowments
4th qtr investment
UW Endowment Basics: Why Have Suspense Accounts?
Suspense Accounts:
accumulate gifts until the minimum is reached.
hold additions to existing endowments until the next investment date
Three matching programs:
1. Matching Gift Initiative (MGI)
2. Faculty-Staff-Retiree (FSR) Campaign for Students
3. Students First
UW Endowment Basics
NO! There’s
Matching!Simple, no?
96-9000New Endowment Suspense
Non-matchable gifts accumulating to minimum, including non-matchable FSR gifts
96-9100 CEF Suspense Existing
Non-matchable additions to existing endowments, including non-matchable FSR gifts
Suspense account budget #’s: 96-9x00
UW Endowment Basics: Suspense Account Taxonomy
we need at least two… …but there’s FSR
and Students First Matching!
96-9000New Endowment Suspense
Non-matchable gifts accumulating to minimum, including non-matchable FSR gifts
96-9100 CEF Suspense Existing
Non-matchable additions to existing endowments, including non-matchable FSR gifts
96-9500 New Endowment Suspense FSR
Matchable gifts to accumulating FSR endowments
96-9600 FSR Matchable Gifts
Matchable additions to existing FSR endowments
96-9700 New Endowment Suspense SCH
Matchable gifts to accumulating Students First endowments
96-9800 CEF Suspense SCH
Matchable additions to existing Students First endowments
UW Endowment Basics: Suspense Account Taxonomy
…and don’t forget MGI !
96-9000New Endowment Suspense
Non-matchable gifts accumulating to minimum, including non-matchable FSR gifts
96-9100 CEF Suspense Existing
Non-matchable additions to existing endowments, including non-matchable FSR gifts
96-9500 New Endowment Suspense FSR
Matchable gifts to accumulating FSR endowments
96-9600 FSR Matchable Gifts
Matchable additions to existing FSR endowments
96-9700 New Endowment Suspense SCH
Matchable gifts to accumulating Students First endowments
96-9800 CEF Suspense SCH
Matchable additions to existing Students First endowments
96-9200 Founder’s Fund Suspense
Founder’s Fund Matching Pool
96-9400 CEF Suspense MGI
Additions to existing MGI endowments
UW Endowment Basics: Suspense Account Taxonomy
Endowment Suspense Report Basics: Purpose and Process
Purpose Provide quarterly investment data to Treasury:
Amounts to invest (new and existing endowments).
New endowments over investment minimum.
Segregate matchable from non-matchable gifts.
Provide tracking info for departments and fund raisers.
Process Identify, sort and total gifts posted monthly to FIN.
Verify that totals reported to Treasury = totals in FIN
Identify misplaced funds, make corrections.
Schedule
Monthly, posted by the 15th.
Interim Report, 3rd month of each quarter, data pulled on the 20th.
Corrections involve selling CEF shares to backfill the deficit
(bad, especially bad in a down market)
This is often due to a gift modification after the funds have invested.
Endowment Suspense Report Basics: What’s at stake?
OOPS! Errors in reporting or in gift-processing (mis-allocations) can cause Treasury to over-invest.
Endowment Suspense Report Basics: Glossary
Suspense Account budget numbers: 96-9x00
Principal Account numbers: 99-xxxx
Allocation Code: 6-letter code OR 6-letters + S/F/M
Pool Code: Suspense account #. e.g., 96-9100
used to track individual endowments with the suspense accounts
account number assigned to invested endowments within the CEF and suspense accounts
state agency accounts in the CEF: 38-xxxx
REDDOG: non-matchable gifts
REDDOGS: matchable gifts, Students First matching program
REDDOGF: matchable gifts, Faculty-Staff-Retiree matching program
REDDOGM: matchable gifts, Matching Gifts Initiative
Specifies which suspense account receives funds as they are distributed out of the general ledger into suspense.
Endowment Suspense Report Basics: Example Scenario
1. A professor establishes a pledge payment program for a new Financial Analysis Training in Biology Endowment, within the FSR matching program.
2. The new endowment is assigned the Allocation Code: FATBIOF
3. The pool code for the new endowment is 96-9500 (New Endowment Suspense-FSR)
4. Each month, payroll deductions are FAS’d to 96-9500 and allocated to FATBIOF.
6. Continuing payroll deductions are now FAS’d to 96-9600 and will be matched until his contributions total $10,000 (he can continue to make non-matching contributions after that).
5. In Nov 2008, 96-9600 FATBIOF reaches the $5,000 minimum. On Jan 1, 2009, Treasury invests the balance in the CEF and the endowment is assigned the principal account number 99-6666. The pool code is updated from 96-9500 to 96-9600 (FSR Matchable Gifts).
7. The Biology Dept finds some extra money in a current use account and decides to make its own monthly matching contributions to the FATBIO endowment. This money is not eligible for UW matching so a new (“mirror”) allocation is created, FATBIO, with the pool code 96-9100 (CEF Suspense Existing).
8. Note that the endowment now has two allocation codes pointing to a single principal account number, and that each allocation code has a different pool code.
1. Quarterly Report
2. Quarterly Investment Data
3. Reconciliation to MyFD BSR
4. Monthly Transaction Datasheet
5. Master Allocation List
Endowment Suspense Report Basics: Report Workbook Tabs
Quarterly Report: Allocation Description
Endowment nameAllocation Code
Principal Acct #Error flag (!)
School abbreviationDepartment
Previous qtr ending balance
Amt invested
Balance after investment
Quarterly Report : Investment Data
Ending balance
Monthly activity by allocation
Total quarter activity
Quarterly Report : Monthly Transactions (Gifts)
Adjustments for pending transactions
Adjusted quarter total (does not reconcile to MyFD)
Reference to footnote explaining adjustment/anomaly
Quarterly Report : Adjustments and Notes
Where’s the money (which suspense account)?
Control-F is Excel find
Look up allocation in Advance. The pool code is the suspense account #
Look up the pool code on the Monthly Allocations Tab of any suspense report.
What’s the current balance?
Ending balance
Monthly activity by allocationTotal quarter activity
The Quarterly Report tab lists monthly activity and current totals.
Control-F is Excel find
Control-F is Excel find
The monthly transaction datasheets list individual gifts and transfers.
What gifts make up the total?
Allocation CodeTran Dec = Donor Name Tran Ref 3 = Gift Receipt #
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