Financial Services

Financial Services

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Trust and Endowments

The following Trust and Endowment section is a relevant source of information for funds beginning with 5xxxx, 6xxxx, 7xxxx, 8xxxx.

Defining the Type of Trust or Endowment Fund

Endowments - Funds 60000 to 79999

Endowments are approved by the donor, the Vice Principal of Advancement, and the head of the department that the endowment fund resides in. They are composed of funds donated to the University or set aside by the University to be held as an investment and the income that is earned on these investments may be used to support various activities of the University. The funds donated represent an endowed donation and may not be spent. There must be terms of reference forwarded to Financial Services prior to set up. Funds are set up via a ChartField request form.

When the endowed donations are made, the endowment fund receives units in the Pooled Endowment Fund (PEF). These units are set up in PeopleSoft using the restricted stat account S00001. Only Financial Services and those authorized by Finance are to post any transactions to this account. PEF generated net income is allocated to the fund based on the number of units held be the fund. For donations received during the year, interest allocation is prorated, whereas yearly interest allocation on units held through the year is done in May.

Funds 60000 to 69999 Internally Restricted Endowments

Internally restricted endowments are composed of funds that the University has set aside to generate income for specific purposes. The University, at the board of trustee’s level, can decide to use funds that were previously unrestricted and make an internal endowment.

Funds 70000 to 70999 Annuities

(Annuity funds are no longer being offered and will be phased out.) Annuities are set up as an externally restricted endowment, whereas regular payments are made to the annuitant. When the annuitant dies, the residual value of the fund may be used by the University. At this point the residual value of the fund is transferred as stipulated by the annuitant.

Funds 71000 to 79999 Externally Restricted Endowments

Externally Restricted Endowments are composed of funds that have been donated externally and the donor has requested that the income from the endowment be spent for a specific purpose. There are specific reporting requirements to the donors for these endowments and these reports are completed by Advancement. External endowments are managed by the departments that spend the income that is generated each year from the Pooled Endowment Fund.

Trusts Funds 50000 to 59999 and 80000 to 84999 Restricted Trusts

These funds account for expendable designated gifts, benefactions, grants, or contracts, which must be spent in accordance with specific instructions. These funds must have Donor Terms of Reference or, for grants/contracts, must include repayment provisions should the funds not be used for the intended purpose.

How to Open a Trust or Endowment Fund

How to Read Your Statements/Check Your Balance

Endowment Fund Income Recapitalization

Revenue Transfer Usage for Trust Funds