The Board of Regents may temporarily increase the management fee to support additional expenses associated with the endowment, fundraising, or administrative activities. At no time shall the management fee exceed 1.00%.
CFO serves as backup
VP Advancement
Cashier
Accountant
Required documents and access:
Investment performance reports
Frequency and timing:
Quarterly, on the 1st of each quarter
Steps:
CFO:
VP Advancement initiates withdrawal request with the investment manager, copying the CFO, Controller, Accountant, and Cashier.
CFO approves withdrawal request with investment manager (dual approval).
Cashier records cash receipt for spending distribution and management fees to endowment investment clearing account using a Detail Code.
Accountant:
Calculates the quarterly spending distribution amount based on the policy.
Provides calculated spending distribution amount to VP Advancement to initiate investment withdrawal.
DR depository cash 990000 Bank Fund -11XX Depository Bank Account
CR clearing account 610000 Pooled Endowment – 29XX Clearing Account
Records journal entry for spending distribution disbursements from clearing accounts to spending accounts from details provided in month-end investment reports.
■ Spendable allocation to spending accounts:
DR 610000 Pooled Endowment fund – 29XX Clearing Account
CR 26XXX0 Endowment Spendable fund – ORGN – 86XX Spending Distribution - PROG
■ Management fee to institutional account (summary level):
DR 610000 Pooled Endowment fund – 29XX Clearing Account
CR 110001 Current Unrestricted fund – ORGN – 80XX Internal Endowment Management Fee - PROG