Intro to UF Foundation & ODAA

Report
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
Intro to UF Foundation & ODAA
About Us
 Office of Development & Alumni Affairs
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Mission is advancement of UF through private
support
 ODAA Partnerships
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UF Foundation,
UF Alumni Association
College and Unit Development Offices
Intro to UF Foundation & ODAA
Integrated Advancement Model
Intro to UF Foundation & ODAA
About UF Foundation
 Mission: raise/manage private donations for UF
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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
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Donors, gifts, prospects, etc.
 $1.53B Endowment as of September 30, 2014
Intro to UF Foundation & ODAA
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 & ODAA
Forms & Documents
Intro to UF Foundation & ODAA
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:
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for the holder and for those individuals directly associated
with the holder’s scholarly work.
Intro to UF Foundation & ODAA
Expenditures - Professorships and Chairs (cont.)
 Spendable income may also be used, for example, to:
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recruit a professor
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renovate office or laboratory
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pay for his or her travel, subscriptions, equipment, or secretary
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support graduate students working directly with holder
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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 & ODAA
Gifts Received
 Unique Source of Funds (SOF) for most gifts
 Track revenues/expenditures for each SOF
 Each SOF assigned a fund administrator
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Responsible for compliance with donor restrictions
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Determined by Dean or VP
 Total Commitments, VSE, GAAP
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VSE = Voluntary Support of Education
Intro to UF Foundation & ODAA
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)
Intro to UF Foundation & ODAA
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
 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 & ODAA
Endowment Spending Policy
 Policy is set by the Finance Committee
 Two funds are created for a new endowment
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Principal Fund
• Gift proceeds
• Investment earnings distributions
• Provides quarterly transfer to Spendable Fund
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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
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4% annually of Spending Base: Endowment Purpose
1.2% annually of Spending Base: UFF Overhead Fee
 Spending base
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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)
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DSO Created by Board of Trustees July 1, 2004
Oversee UFF Investments, other DSO’s
 UFICO Board
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Provide counsel to Board of Trustees
Oversight of all UFF Investments
Approve broad asset allocations, policy
Review/approve portfolio changes
Intro to UF Foundation & ODAA
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
Invested
April 1st
July 1st
June, July, August
October 1st
September, October, November January 1st
Intro to UF Foundation & ODAA
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
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%
93,800
89,110
95.0%
As adjusted
95,500
89,110
93.3%
None
* Returns are net of fees and spending transfers
Intro to UF Foundation & ODAA
= 89,110 x 1% = 891
Questions?
David Christie, CPA, CGMA, CITP
Controller, UF Foundation
[email protected]
392-5475
Intro to UF Foundation & ODAA

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