Endowment Compliance BUDGET AUTHORITY TRAINING 2014 2015 Endowments

Endowment Compliance BUDGET AUTHORITY TRAINING 2014 - 2015

Endowments v Endowments are established through the Office of University Advancement with a donor’s gift and a signed endowment agreement which has been approved by the Board of Regents. Whitney King Arts and Sciences Education v Erica Campanelli Athletics David Jones Larry Wickham Business and Technology Engineering The minimum funding level is $10, 000 Kathy Gohmert Nursing/Health Sciences &

Types of Endowments v Scholarships v Program Funds

Types of Endowments v. Faculty Positions üChair üProfessorship üDistinguished University Chair Distinguished University Professorship Distinguished Professorship $2, 000 $1, 500, 000 $1, 000 $ 500, 000 $ 250, 000 $ 100, 000

Discussion v Documents each department should have related to endowments v Policies governing Endowment Compliance v Tracking the endowment distributions v Monitoring the use of endowed funds

Tracking v . Endowment invested at University of Texas Investment Company (UTIMCO) Interest Income from the endowment is received at UT Tyler on a quarterly basis via People. Soft Funds distributed to recipient/budget authority

UTIMCO Endowment distribution information can be accessed through UTIMCO via CRIS (Component Reporting Information System. ) Contact Sharon Brown, in the Office of University Advancement, to obtain access to this system or for current information. v

Tracking the Use of Endowment Distributions v Local endowment account balances and expenditure amounts by category can be accessed through People. Soft.

Documents Needed A copy of the endowment agreement and/or supporting documentation showing use requirements Supporting receipts and documentation for any expenditures Monthly account reconciliation in People. Soft

Monitoring The Budget Authorities shall insure that the projected payout is included in the annual budget The Office of University Advancement requires an annual Report of Use for monitoring purposes. The balance in People. Soft at the end of each fiscal year is less than two times the annual distribution from the endowment. For excessive accumulation, a Report of Planned Use is to be submitted by the Budget Authority stating the plan to correct the excessive accumulation and the projected payout for the following budget year.

Failure to Comply Legal liability with the donor(s) Return of the gift to the donor Adverse public relations Jeopardizing future gifts

Summary v v Budget Authorities include projected distribution in annual budget The balance in People. Soft at the end of each fiscal year is less than two times the annual distribution Annual Report of Use For excessive accumulation a Report of Planned Use (Spending Plan) by the Budget Authority

Contact Sharon Brown Office of University Advancement 903 -566 -7225 sharonbrown@uttyler. edu