University of Florida Foundation David Christie, CPA, CGMA, CITP Controller, UF Foundation
[email protected] 392-5475
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Agenda
About Us How to (website, forms, policies) Gifts Received FAS Overview Endowment Basics Pre-endowments UFICO & Investments New Auto Transfer Process
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About Us Office of Development & Alumni Affairs
Mission is advancement of UF through private support
ODAA Partnerships
UF Foundation, UF Alumni Association College and Unit Development Offices
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Integrated Advancement Model
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About UF Foundation Mission: raise/manage private donations for UF
Fundraising, Fund Management, Alumni Affairs
501(c)3 not-for-profit, DSO of UF
Gifts - cash, securities, real property, art work, etc… Issue gift receipts Maintain UF external constituents database
Donors, gifts, prospects, etc.
$1.53B Endowment as of September 30, 2014 Intro to UF Foundation & ODAA
www.uff.ufl.edu
The Foundation (About us) Financials (Endowment and Assets, Investment Returns, UFICO) Forms & Documents (Policies for Fundraising and source of fund management, Forms for transacting business with the UF Foundation)
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Forms & Documents
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Expenditures - Professorships and Chairs Policy 5.11 Until fully endowed, cannot be awarded. Until filled, spendable income may only be spent on
recruitment. Once filled, spendable dollars may be used for salary, or a salary supplement:
for the holder and for those individuals directly associated with the holder’s scholarly work.
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Expenditures - Professorships and Chairs (cont.) Spendable income may also be used, for example, to:
recruit a professor
renovate office or laboratory
pay for his or her travel, subscriptions, equipment, or secretary
support graduate students working directly with holder
make grants to other faculty members for scholarly work directly associated with the holder’s scholarly work.
If the dean determines there are adequate funds, with written permission from Provost, a professorship may have multiple occupants, provided it is not prohibited by the gift agreement. Intro to UF Foundation & ODAA
Gifts Received Unique Source of Funds (SOF) for most gifts Track revenues/expenditures for each SOF Each SOF assigned a fund administrator
Responsible for compliance with donor restrictions
Determined by Dean or VP
Total Commitments, VSE, GAAP
VSE = Voluntary Support of Education
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Foundation Accounting System (FAS) Purpose is to make information accessible to fund administrators and other users Fund balance, gifts, expenditures, etc. Confidential and not for public use
(Policy 1.03, FL Statute
1004.28)
Donor Restrictions (Long Description, Detail Purpose, Restrictions)
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FAS Log-in https://fasweb.uff.ufl.edu/FAS/login_prompt.asp Link from Business Center log-in screen
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FAS Reports Fund Listing - Listing of accessible funds.
Fund Detail - Detail fund information for a specified fund. Available Balance - Amount available to spend from a fund. Balance Sheet - Displays assets, liabilities, and fund balance for a fund through a specified period.
Income Statement - Displays fund revenues and expenses within a range of specified periods for a fiscal year. Year to Date Trial Balance - List of all accounts and balances for a fund through a specified period. Endowment Summary - Displays summaries, through a specified period, of both the endowment principal and spendable funds, balance sheet, income statement, spending base, estimated annual transfers, and available balance.
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Endowment Spending Policy Policy is set by the Finance Committee Two funds are created for a new endowment
Principal Fund • Gift proceeds • Investment earnings distributions • Provides quarterly transfer to Spendable Fund
Spendable Fund • Receives the quarterly transfers from Principal Fund • Pays 2.5% UFF gift fee
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Endowment Spending Policy (cont.) Spending Rate
4% annually of Spending Base: Endowment Purpose 1.2% annually of Spending Base: UFF Overhead Fee
Spending base
Spending/fees calculated on spending base, not MV Goal is to provide stable income stream Spending base is adjusted if the ratio falls outside of 85 – 95% of market value Evaluated quarterly
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Pre-endowments UFF Policy #2.19 Endowed Funds and Related Naming Opportunities revised Available for funds with a balance less than the required $30,000 minimum Invested in endowment pool and receives earnings allocations Spendable transfers are turned off until minimum is reached Available for existing and future funds Intro to UF Foundation & ODAA
UFICO University of Florida Investment Corporation (UFICO)
DSO Created by Board of Trustees July 1, 2004 Oversee UFF Investments, other DSO’s
UFICO Board
Provide counsel to Board of Trustees Oversight of all UFF Investments Approve broad asset allocations, policy Review/approve portfolio changes
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Endowment Investments Target real return of 5.2%, preserve purchasing power Over 2,900 endowments pooled together Investment Schedule Month Received December, January, February March, April, May
Invested April 1st July 1st
June, July, August October 1st September, October, November January 1st Intro to UF Foundation & ODAA
New Auto Transfer Process Implemented July 1, 2014 Goal is to make Foundation monies more readily available for spending Includes all non-endowed monies, as well as, the spendable funds of endowments
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Spending Base Example Returns *
Market Value
Spending Base
Ratio SB/MV
SB Adjustment
Gift received April 13, 2012
100,000
Invested July 1, 2012
100,000
90,000
90.0%
N/A
Quarterly Transfer
N/A
Value at September 30, 2012
4.0%
104,000
90,000
86.5%
None
= 90,000 x 1% = 900
Value at December 31, 2012
3.4%
107,500
90,000
83.7%
Required
= 90,000 x 1% = 900
SB adjustment
1,375 107,500
91,375
85.0%
As adjusted
Value at March 31, 2013
-4.2%
103,000
91,375
88.7%
None
= 91,375 x 1% = 914
Value at June 30, 2013
-8.9%
93,800
91,375
97.4%
Required
= 91,375 x 1% = 914
SB adjustment
Value at September 30, 2013
(2,265)
1.8%
93,800
89,110
95.0%
As adjusted
95,500
89,110
93.3%
None
* Returns are net of fees and spending transfers
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= 89,110 x 1% = 891
Questions?
David Christie, CPA, CGMA, CITP Controller, UF Foundation
[email protected] 392-5475
Intro to UF Foundation & ODAA
