Endowments

Overview

Endowments are donations made to the university as investment funds intended to yield interest income. The interest income is used for operational support as specified by the donor in the Endowment Agreement. There are two types of cost centers associated with each endowment:

1. Ledger 6 - the endowment funds are held in a ledger 6 cost center created by the Office of the Treasurer.
2. Ledger 4 - the interest earned from the endowment principal is transferred to a ledger 4 income cost center which is created and managed by the responsible college/department. The ledger 4 cost center must use the same program code as the Ledger 6.

Endowment Set Up

• Once an endowment is established, the Office of the Treasurer notifies the college and requests establishment of a ledger 4 endowment income cost center using the same program code as the Ledger 6 parent cost center.
• The college requests the new ledger 4 income cost center and identifies the department and cost center manager that will be responsible for managing the endowment income fund.

Distribution of Income

• The estimated income is budgeted in the income cost center during the annual budget development process, which occurs in April/May. The estimate is provided by the Office of the Treasurer and distributed to the divisions during the budgeting process.
• The endowment income is distributed to the income cost centers at the end of each fiscal year (typically in August).

Annual Reviews and Processes

• Endowment Review: Verification of income cost centers. Each year the Office of the Treasurer sends an email to the college requesting that the income cost centers be verified in preparation for year-end. This typically occurs in June.
• Endowment Criteria and Available Funding Report. Each year, the Office of Gift Compliance provides this report to share current criteria for spending donor restricted endowment funds as well as ensuring that the units responsible for spending are aware of the funds available for use. This typically occurs in March.
• Unused Endowed Funds. This report is sent by the Office of Gift Compliance in preparation for is annual reporting. It includes a list of endowed funds, including professorship and chaired endowments, that have an expenditure utilization of 25% or less. This report is typically sent to colleges in June and requests a plan for spending the remaining unused funds by year end.

Sign in|Recent Site Activity|Report Abuse|Print Page|Powered By Google Sites