university of florida foundation

Intro to UF Foundation

University of Florida Foundation

David Christie, CPA, CGMA, CITPController, UF [email protected]

mailto:[email protected]


Agenda About UF Foundation How to (website, forms, policies) Gifts Received FAS Overview Endowment Basics UFICO Investments


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


Return on Investment (FY 2013)

Fundraising Commitments $250M

Operating Expenses $29M

Return on Investment

$9


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)


Forms & Documents


Contact Information by Department


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.


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.


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


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)


FAS Log-in https://fasweb.uff.ufl.edu/FAS/login_prompt.asp Link from Business Center log-in screen

https://fasweb.uff.ufl.edu/FAS/login_prompt.asp




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.


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


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


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


Endowment Investments Target return after inflation 5.2%, preserve purchasing power Over 2,800 endowments pooled together Investment Schedule

Month Received InvestedDecember, January, February

April 1st

March, April, May July 1stJune, July, August October 1stSeptember, October, November

January 1st


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


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


Questions?

David Christie, CPA, CGMA, CITPController, UF [email protected]

mailto:[email protected]

university of florida foundation

Documents

uf foundation intro

uf foundation10

uf foundation9

uf foundation11

uf foundation4

uf foundation3

uf foundation8

uf foundationabout usmission