University of Florida Foundation

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

392-5475

Intro to UF Foundation & ODAA

Agenda

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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

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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.

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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

Intro to UF Foundation & ODAA

Intro to UF Foundation & ODAA

FAS Reports

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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 -

through a specified period.

List of all accounts and balances for a fund

Endowment Summary -

balance.

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

Intro to UF Foundation & ODAA

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 & ODAA

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

Intro to UF Foundation & ODAA

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 June, July, August September, October, November

Invested

April 1st July 1st October 1st January 1st

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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

Intro to UF Foundation & ODAA

Spending Base Example

Gift received April 13, 2012 Invested July 1, 2012 Value at September 30, 2012 Value at December 31, 2012

SB adjustment

Value at March 31, 2013 Value at June 30, 2013

SB adjustment

Value at September 30, 2013 Returns * Market Value Spending Base Ratio SB/MV SB Adjustment Quarterly Transfer 4.0% 3.4% -4.2% -8.9% 1.8% 100,000 100,000 104,000 107,500 107,500 103,000 93,800 93,800 95,500 90,000 90,000 90,000

1,375

91,375 91,375 91,375

(2,265)

89,110 89,110 90.0% 86.5% 83.7% 85.0% 88.7% 97.4% 95.0% 93.3% N/A N/A None

Required

As adjusted None

Required

As adjusted None = 90,000 x 1% = 900 = 90,000 x 1% = 900 = 91,375 x 1% = 914 = 91,375 x 1% = 914 = 89,110 x 1% = 891 * Returns are net of fees and spending transfers

Intro to UF Foundation & ODAA

Questions?

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

392-5475

Intro to UF Foundation & ODAA