Intro to UF Foundation - University of Florida
Download
Report
Transcript Intro to UF Foundation - University of Florida
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