Endowment Suspense 10
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Transcript of Endowment Suspense 10
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Endowment Suspense 10 (for non-majors)
UW Endowments from the Perspective of Endowment Suspense
10-13-09
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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
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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
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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?
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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!
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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 !
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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
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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.
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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.
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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.
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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.
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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
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Quarterly Report: Allocation Description
Endowment nameAllocation Code
Principal Acct #Error flag (!)
School abbreviationDepartment
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Previous qtr ending balance
Amt invested
Balance after investment
Quarterly Report : Investment Data
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Ending balance
Monthly activity by allocation
Total quarter activity
Quarterly Report : Monthly Transactions (Gifts)
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Adjustments for pending transactions
Adjusted quarter total (does not reconcile to MyFD)
Reference to footnote explaining adjustment/anomaly
Quarterly Report : Adjustments and Notes
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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.
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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
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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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