1. University of Florida Foundation
David Christie, CPA, CGMA, CITP
Controller, UF Foundation

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

3. 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
* Various groups responsible for managing the investments of UFF

4. Return on Investment (FY 2013)
Fundraising Commitments
$250M
Operating Expenses
$29M
Return on Investment $9
* Various groups responsible for managing the investments of UFF

5. 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)

6. Forms & Documents

7. Contact Information by Department

8. 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.
* Various groups responsible for managing the investments of UFF

9. 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.
* Various groups responsible for managing the investments of UFF

10. 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
* Various groups responsible for managing the investments of UFF

11. 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 )
Donor Restrictions (Long Description, Detail Purpose, Restrictions)
* Various groups responsible for managing the investments of UFF

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

14. 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.

15. 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

16. 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

17. UFICO University of Florida Investment Corporation (UFICO) UFICO Board
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
* Committee of 7: 3 Board members & 4 special appointees
* Policy out on intranet

18. Endowment Investments
Target return after inflation 5.2%, preserve purchasing power
Over 2,800 endowments pooled together
Investment Schedule
Month Received
Invested
December, January, February
April 1st
March, April, May
July 1st
June, July, August
October 1st
September, October, November
January 1st

19. 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

20. Spending Base Example Returns * Market Value Spending Base Ratio SB/MV
SB Adjustment
Quarterly Transfer
Gift received April 13, 2012
100,000
N/A
Invested July 1, 2012
90,000
90.0%
Value at September 30, 2012
4.0%
104,000
86.5%
None
= 90,000 x 1% = 900
Value at December 31, 2012
3.4%
107,500
83.7%
Required
SB adjustment
1,375
91,375
85.0%
As adjusted
Value at March 31, 2013
-4.2%
103,000
88.7%
= 91,375 x 1% = 914
Value at June 30, 2013
-8.9%
93,800
97.4%
(2,265)
89,110
95.0%
Value at September 30, 2013
1.8%
95,500
93.3%
= 89,110 x 1% = 891
* Returns are net of fees and spending transfers

21. Questions?
David Christie, CPA, CGMA, CITP Controller, UF Foundation