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Endowment Suspense 10

Endowment Suspense 10. (for non-majors) UW Endowments from the Perspective of Endowment Suspense. 10-13-09. UW Endowment Basics. Two facts about endowment investing:. 1. Endowments have minimums. $25,000: program support, research fund, lectureship $50,000: scholarships

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Endowment Suspense 10

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  1. Endowment Suspense 10 (for non-majors) UW Endowments from the Perspective of Endowment Suspense 10-13-09

  2. UW Endowment Basics Two facts about endowment investing: 1. Endowments have minimums. $25,000: program support, research fund, lectureship $50,000: scholarships $100,000: Fellowships $250,000: Professorships $1,000,000: Chair 2. Gifts are invested once each quarter.

  3. 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 Accumulating gifts to new endowments Feb Mar Apr May Jun Additions to existing (invested) endowments Suspense Account 4th qtr investment CEF

  4. UW Endowment Basics NO! There’s Matching! Simple, no? Three matching programs: 1. Matching Gift Initiative (MGI) 2. Faculty-Staff-Retiree (FSR) Campaign for Students 3. Students First

  5. UW Endowment Basics: Suspense Account Taxonomy 96-9000New Endowment Suspense Non-matchable gifts accumulating to minimum, including non-matchable FSR gifts …but there’s FSR and Students First Matching! 96-9100CEF Suspense Existing Non-matchable additions to existing endowments, including non-matchable FSR gifts Suspense account budget #’s: 96-9x00 we need at least two…

  6. UW Endowment Basics: Suspense Account Taxonomy 96-9000New Endowment Suspense Non-matchable gifts accumulating to minimum, including non-matchable FSR gifts …and don’t forget MGI ! 96-9100CEF Suspense Existing Non-matchable additions to existing endowments, including non-matchable FSR gifts 96-9500New Endowment Suspense FSR Matchable gifts to accumulating FSR endowments 96-9600FSR Matchable Gifts Matchable additions to existing FSR endowments 96-9700New Endowment Suspense SCH Matchable gifts to accumulating Students First endowments 96-9800CEF Suspense SCH Matchable additions to existing Students First endowments

  7. UW Endowment Basics: Suspense Account Taxonomy 96-9000New Endowment Suspense Non-matchable gifts accumulating to minimum, including non-matchable FSR gifts 96-9100CEF Suspense Existing Non-matchable additions to existing endowments, including non-matchable FSR gifts 96-9200Founder’s Fund Suspense Founder’s Fund Matching Pool 96-9400CEF Suspense MGI Additions to existing MGI endowments 96-9500New Endowment Suspense FSR Matchable gifts to accumulating FSR endowments 96-9600FSR Matchable Gifts Matchable additions to existing FSR endowments 96-9700New Endowment Suspense SCH Matchable gifts to accumulating Students First endowments 96-9800CEF Suspense SCH Matchable additions to existing Students First endowments

  8. Endowment Suspense Report Basics: Purpose and Process Purpose  Provide quarterly investment data to Treasury:  New endowments over investment minimum. Amounts to invest (new and existing endowments).  Segregate matchable from non-matchable gifts.  Provide tracking info for departments and fund raisers. Process  Identify, sort and total gifts posted monthly to FIN.  Identify misplaced funds, make corrections.  Verify that totals reported to Treasury = totals in FIN Schedule  Monthly, posted by the 15th.  Interim Report, 3rd month of each quarter, data pulled on the 20th.

  9. Endowment Suspense Report Basics: What’s at stake? OOPS! Errors in reporting or in gift-processing (mis-allocations) can cause Treasury to over-invest.  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.

  10. Endowment Suspense Report Basics: Glossary Suspense Account budget numbers: 96-9x00 Principal Account numbers: 99-xxxx  account number assigned to invested endowments within the CEF and suspense accounts  state agency accounts in the CEF: 38-xxxx Allocation Code: 6-letter code OR 6-letters + S/F/M  used to track individual endowments with the suspense accounts  REDDOG: non-matchable gifts  REDDOGM: matchable gifts, Matching Gifts Initiative  REDDOGF: matchable gifts, Faculty-Staff-Retiree matching program  REDDOGS: matchable gifts, Students First matching program Pool Code: Suspense account #. e.g., 96-9100  Specifies which suspense account receives funds as they are distributed out of the general ledger into suspense.

  11. 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. 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). 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). 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.

  12. Endowment Suspense Report Basics: Report Workbook Tabs 1. Quarterly Report 2. Quarterly Investment Data 4. Monthly Transaction Datasheet 3. Reconciliation to MyFD BSR 5. Master Allocation List

  13. Quarterly Report: Allocation Description Allocation Code Endowment name Principal Acct # Error flag (!) School abbreviation Department

  14. Quarterly Report : Investment Data Previous qtr ending balance Amt invested Balance after investment

  15. Quarterly Report : Monthly Transactions (Gifts) Ending balance Total quarter activity Monthly activity by allocation

  16. Quarterly Report : Adjustments and Notes Reference to footnote explaining adjustment/anomaly Adjusted quarter total (does not reconcile to MyFD) Adjustments for pending transactions

  17. Where’s the money (which suspense account)? 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. Control-F is Excel find

  18. What’s the current balance? The Quarterly Report tab lists monthly activity and current totals. Ending balance Total quarter activity Control-F is Excel find Monthly activity by allocation

  19. What gifts make up the total? The monthly transaction datasheets list individual gifts and transfers. Control-F is Excel find Tran Dec = Donor Name Tran Ref 3 = Gift Receipt # Allocation Code

  20. Any questions: Michael Tu Analyst UA Finance & Administration (206) 685-9596 mstu@u.washington.edu

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