Presentation on theme: "Intro to UF Foundation University of Florida Foundation David Christie, CPA, CGMA, CITP Controller, UF Foundation 392-5475."— Presentation transcript:
Intro to UF Foundation University of Florida Foundation David Christie, CPA, CGMA, CITP Controller, UF Foundation
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$250M Operating Expenses$29M Return on Investment$9
Intro to UF Foundation 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 ) Donor Restrictions (Long Description, Detail Purpose, Restrictions)
Intro to UF Foundation FAS Log-in https://fasweb.uff.ufl.edu/FAS/login_prompt.asp https://fasweb.uff.ufl.edu/FAS/login_prompt.asp Link from Business Center log-in screen
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 ReceivedInvested December, January, FebruaryApril 1st March, April, MayJuly 1st June, July, AugustOctober 1st September, October, NovemberJanuary 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 Returns *Market ValueSpending BaseRatio SB/MVSB AdjustmentQuarterly Transfer Gift received April 13, ,000N/A Invested July 1, ,000 90, %N/A Value at September 30, % 104,000 90, %None = 90,000 x 1% = 900 Value at December 31, % 107,500 90, %Required = 90,000 x 1% = 900 SB adjustment 1, ,500 91, %As adjusted Value at March 31, % 103,000 91, %None = 91,375 x 1% = 914 Value at June 30, % 93,800 91, %Required = 91,375 x 1% = 914 SB adjustment (2,265) 93,800 89, %As adjusted Value at September 30, % 95,500 89, %None = 89,110 x 1% = 891 * Returns are net of fees and spending transfers Spending Base Example
Intro to UF Foundation Questions? David Christie, CPA, CGMA, CITP Controller, UF Foundation