UC SAN DIEGO UC SAN DIEGO FOUNDATIONFOUNDATION

FINANCIAL STATEMENTS

November 2, 2007

Introduction Introduction

Introduction of Instructors Individual Introductions By

Participants

- Why are you here, what do you expect to gain from this class?

TRAINING GOAL:TRAINING GOAL:

To give participants the skills & knowledge necessary to read and interpret Foundation fund financial statements and ability to administer a fund

OBJECTIVES:OBJECTIVES:

Be able to determine Foundation fund types and purpose/use

Be able to extract pertinent information from a fund financial statement regarding available resources and financial position

Be able to perform fund administration tasks

Be more knowledgeable about FAQ’s regarding gift funds

AgendaAgenda

Overview of External Relations, Gift Acknowledgement and Stewardship

Review of Basic Financial Statements in the Foundation

Electronic Statements on the Web Other Information Summary

– General Review, Questions and Answers

– Evaluation of Class

Overview of External Overview of External RelationsRelations Vice Chancellor-External

Relations– Includes 2 separately incorporated 501

(c)3 entities: UC San Diego Foundation and UCSD Alumni Association

– Development (UCSD Fundraising)– Information Technology and Financial

Systems (IT&FS) including: UC San Diego Foundation Gift Processing (all gifts to UCSD, both

Foundation and Regents) Donor Database Management ER Budget Information Technology Stewardship Support Groups

– University Communications, Publications and Special Events and Protocol

– Alumni Affairs/Alumni Association

DEVELOPMENT OFFICERSDEVELOPMENT OFFICERSAnnual GivingDawn BruckelExt. 42178dnewmark@ucsd.edu

Planned Giving Martin HayterExt. 42249mhayter@ucsd.edu

Foundation RelationsSarah GodfreyExt. 46097mwilson@ucsd.edu

Biological SciencesTBN

Natural SciencesMelanie WalshExt 23258mcwalsh@ucsd.edu

Student AffairsKim Signoret-PaarExt. 25612kspaar@ucsd.edu

Nov07

IR/PSJudith EcklundExt. 25161jecklund@ucsd.edu

Social SciencesMichelle GlennExt. 20805mglenn@ucsd.edu

The Preuss SchoolDonald StumpExt. 26616destump@ucsd.edu

Rady School of ManagementGraig EastinExt. 24230geastin@ucsd.edu

Associate Vice Chancellor for Development Rebecca NewmanExt. 25774rnewman@ucsd.edu

Marine Sciences Brian DalyExt. 21405bdaly@ucsd.edu

Jacobs School of EngineeringDenine Hagen, InterimExt. 42920dhagen@ucsd.edu

Health SciencesLynda HeaneyExt. 49898lheaney@ucsd.edu

General Campus Juli Larsen: EDODExt 20773jjlarsen@ucsd.edu

ADMINISTRATIVE STAFFADMINISTRATIVE STAFFMarlene ShaverFoundation Chief Financial OfficerDirector of IT&FS (for policy questions/issues)Email: mshaver@ucsd.eduExt. 41032

FOUNDATION ACCOUNTINGI-Ju TracyFoundation Controller(for policy questions/issues)Email: itracy@ucsd.eduExt. 41038

Carol LimFoundation Fiscal Assistant (for questions on fund statements,

balances, status of Request for funds transfers, login/password for statement access)

Email: cmlim@ucsd.eduExt. 47247

UCSD GIFT PROCESSINGKathy Terry Deputy DirectorEmail: wcombs@er.ucsd.eduExt. 26722

Sandra StewartFoundation and Regents giftsEmail: sstewart@ucsd.eduExt. 44493

***************************************

UCSD OFFICE OF DONOR STEWARDSHIP

Susan Quinn(thank you letters and reports to donors)Email: squinn@ucsd.eduExt. 22810

05/07

Gift Acknowledgement and Donor Stewardship

•Why is stewardship important?

•Your role in the benefiting departments

•What comes from Gift Processing to the donor?

•What does stewardship acknowledge?

•Reporting to donors

•Other reporting as needed

Manager of UCSD Donor StewardshipSusan QuinnExt. 40630sequinn@ucsd.edu

Review BasicReview BasicFoundation Financial Foundation Financial

StatementsStatements Definitions

– Fund Accounting– Fund Types – Current Use and

Endowed Detail Ledgers What is Market Value and what

funds are affected?

Fund AccountingFund Accounting

A type of accounting that permits the commingling of funds for financial statement reporting and investment purposes, but allows separate accountings to take place to reflect limitations and restrictions placed on the use of a fund by a donor.

Fund TypesFund Types

Current Funds:  Funds that may be expended

completely, down to the last dollar, in accordance with donor or Board of Trustee imposed restrictions. Includes:– unrestricted donations (few!)– donations which are restricted

to a specific department or program, but are unrestricted as to expenditure within that department or program.

– the spendable income allocated to endowment funds.

Fund TypesFund Types

Endowed Funds: Gifts documented in such a

manner to state that the original principal of the gift must be invested in perpetuity and allowing only a portion of the annual investment return to be spent for the purpose the gift was given.

Endowment is permanent money, and a charity is legally bound to keep the principal intact and to comply with the donor restrictions governing the use of the spending made available from the endowment.

Fund TypesFund Types

Other Fund Types: Deferred gifts, including

charitable trusts, charitable gift annuities, life estate gifts, and charitable gift annuities. These are gift funds that must “mature” before the corpus is available to UCSD. They typically provide for a lifetime income stream to the donor and mature at their death.

Electronic Statements Electronic Statements on the Webon the Web

UC San Diego Foundation http://www.ucsdfoundation.ucsd.edu/

Accounting website for fund access:http://www-er.ucsd.edu/FdnWeb/Login.asp– Login, Password – Sample ledger for current

expendable gift fund – Sample ledger for endowed gift fund

What is market value? What is endowed spending allocation?

– Monthly Gift Reports (and where to get them)

Overall Giving By Account Cash Receipts By Account

Fund Access LoginFund Access Login

Other InformationOther Information Establishing a New Fund

-Foundation or Regents, what’s the difference? -

Foundation Fund Information Sheet

http://www-er.ucsd.edu/foundationDir/FDN-ACT/fundfrms/fundinfo.xls

Foundation Signature Authorization Sheet

http://www-er.ucsd.edu/foundationDir/FDN-ACT/fundfrms/signature.xls

Once money is in the Foundation, how do you get it out?-Use a Request for Funds form:

http://www-er.ucsd.edu/foundationDir/FDN-ACT/fundfrms/attach/Fund_req.xls

UCSD Gift Processing website with information and various forms now available on-line at http://www-er.ucsd.edu/giftprocessing/

Gift Processing SiteGift Processing Site

Other Information, Other Information, cont’dcont’d

Both Foundation and Regents gifts are processed by Gift Processing

Department (Sandra Stewart x44493, mail code 0940)

4% UCSD Gift Fee Current Funds – do they earn interest?

(Refer to PPM 410-10) Endowment Funds “Spending

Allocation” – how is it calculated? Gifts Pending Economic Interest UCSD Electronic

References/Resources

Economic of Interest -Definition: having a direct or indirect financial interest in the sponsor of research or if funded in whole or in part

An Economic Interest Statement form is required when gift monies or equipment is received and the donor names a specific PI or states that the gift is to be used for research and the donation is $250 or greater- no funds will be allocated for expenditure before EI approval- EI statement must be signed by PI, NOT by his secretary or assistant. PI is responsible for accuracy and completeness of all information, should read carefully before signing

If a PI donates to his own research or department, PI must sign the following policy statement:

“I AM AWARE OF THE UNIVERSITY POLICY WHICH PROHIBITS THE USE OF THESE FUNDS FOR MYSELF ON A PERSONAL BASIS FOR SUCH ITEMS AS TRAVEL, ENTERTAINMENT, ETC.”

UCSD Electronic References/Resources

UC San Diego Foundation Accounting websitehttp://www-er.ucsd.edu/FdnWeb/Login.asp

UCSD Gift Processing website: http://www-er.ucsd.edu/giftprocessing/

UCSD PPM website http://adminrecords.ucsd.edu/ppm/

PPM 150-35: Classification, Acceptance And Administration Of Awards From Private SourcesPPM 230-8: Endowed ChairsPPM 410-1: Solicitation, Acceptance, And Administration Of Gifts To The UniversityPPM 410-2: Solicitation, Acceptance, And Administration Of Gifts To The UC San Diego FoundationPPM 410-3: Administrative Fee On Gifts To UCSD and The UC San Diego FoundationPPM 410-4: Policy And Guidelines For Minimum Gift Levels And Naming OpportunitiesPPM 410-10: Assessment Of Current Gift And Private Grant Fund Interest Earnings From UCSD And the UC San Diego Foundation

SummarySummary

General Review, Questions and Answers

Evaluation of Class

THANK YOU

I-Ju Tracyext. 41038itracy@ucsd.edu