intro to uf foundation university of florida foundation david christie, cpa, cgma, citp controller,...
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Intro to UF Foundation
University of Florida Foundation
David Christie, CPA, CGMA, CITPController, UF [email protected]
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
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Return on Investment (FY 2013)
Fundraising Commitments $250M
Operating Expenses $29M
Return on Investment
$9
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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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Contact Information by Department
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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
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 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
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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
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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
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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
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
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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 100,000 90,000 90.0% 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 (2,265)
93,800 89,110 95.0% As adjusted
Value at September 30, 2013 1.8% 95,500 89,110 93.3% None = 89,110 x 1% = 891
* Returns are net of fees and spending transfers
Spending Base Example
