Intro to UF Foundation - University of Florida

January 5, 2018 | Author: Anonymous | Category: Business, Finance, Investing
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University of Florida Foundation David Christie, CPA, CGMA, CITP Controller, UF Foundation [email protected] 392-5475

Intro to UF Foundation

Agenda       

About UF Foundation How to (website, forms, policies) Gifts Received FAS Overview Endowment Basics UFICO Investments

Intro to UF Foundation

About Us  Mission: raise/manage private donations for UF 

Fundraising, Fund Management, Alumni Affairs

 UF Foundation/ODAA  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.

 $1.389B Endowment as of September 30, 2013

Intro to UF Foundation

Return on Investment (FY 2013) Fundraising Commitments

Operating Expenses

Return on Investment

Intro to UF Foundation

$250M

$29M

$9

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)

Intro to UF Foundation

Forms & Documents

Intro to UF Foundation

Contact Information by Department

Intro to UF Foundation

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.

Intro to UF Foundation

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

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

Intro to UF Foundation

Foundation Accounting System (FAS)  Purpose is to make information accessible to fund administrators and other users  Unique Source of funds for gifts  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)

Intro to UF Foundation

FAS Log-in  https://fasweb.uff.ufl.edu/FAS/login_prompt.asp  Link from Business Center log-in screen

Intro to UF Foundation

Intro to UF Foundation

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.

Intro to UF Foundation

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

Intro to UF Foundation

Endowment Spending Policy (cont.)  Spending Rate  

4% annually of Spending Base: Endowment Purpose 1.2% annually of Spending Base: UFF Overhead Fee

 Spending base is maintained at a ratio of between 85% and 95% of market value  



Goal is to provide stable income stream Spending base is adjusted if the ratio falls outside the 85 – 95% range Evaluated quarterly

Intro to UF Foundation

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

Intro to UF Foundation

Endowment Investments  Target return after inflation 5.2%, preserve purchasing power  Over 2,800 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

Non-endowed Options  Cash – no risk, no returns, no fees (default)  Moderate Pool – target return of 1.6%, 6 month lock-in, $50K min. initial investment, $5K min. subsequent  Long-term Pool – target return of 6% to 8%, 12 month lock-in, $50K min. initial investment, $5K min. subsequent Intro to UF Foundation

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%

* Returns are net of fees and spending transfers

Intro to UF Foundation

93,800

89,110

95.0%

As adjusted

95,500

89,110

93.3%

None

= 89,110 x 1% = 891

Questions?

David Christie, CPA, CGMA, CITP Controller, UF Foundation [email protected] 392-5475

Intro to UF Foundation

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