Yes. In such cases, the original should be forwarded with the annual submission packet, and each individual request should have a copy attached. Notarized copies are not required if the original is provided.
Changes are made in advance of the first reporting cycle in which the new/revised endowment must be included. New matching, provided at the end of each fiscal year, will not be reported until the end of the following fiscal year (i.e., an endowment matched in May 2016 will be first reported in October 2017, during the FY 2016-17 cycle). Revisions to a matched endowment that do not require a change in programs (e.g., Endowed Chair to Endowed Professorships) are typically made immediately upon BoR approval.
What documentation is required as part of reporting to validate compliance with policy provisions?
Two documents must be submitted as part of the annual endowment reporting: the annual agreed-upon procedures (audit) report and the letter of appointment for chairholders. For other policy provisions, only certification of compliance is required in reporting, though supporting documents must be retained in campus records for inspection upon Regents’ request.
Compliance will be measured by calculation based on the values provided by the campus in annual reporting, and verified by audit. Each account has five years, beginning FY 2017-18, to come into compliance with the market value and retainage caps. Because compliance with the 125% cap in market value is to be measured on a five-year rolling average, strict compliance will not be measured until FY 2026-27, with accrual of five years of market value after general compliance with the cap is required.
Protection of donor rights and intent is the purview of the campus. In terms of documentation of donor approval submitted to the BoR, we will accept an approval/request signed by the majority donor or a representative of all donors, or a document signed by all donors. It is critical that the campus retain in its files an account of why donor permission was granted in the form it was, and any communications with other donors related to the changes approved.
No. Each account, unless otherwise specified by the donor, is designated for a specific purpose; pooling earnings does not ensure funds are being expended consistent with the donor’s intent. The BoRSF faculty endowments are intended to provide discretionary resources to assist in the retention of highly productive faculty; it is not appropriate to designate funds for internal award or competition apart from the selection of the faculty holder.
No. As with pooling expendable earnings, each account – corpus and earnings – must be dedicated only to the purposes of the BoR program and the intent of the donor(s).
BoR and donor approval is required for a focus-area change to an Endowed Chair; a name change requires permission of the donor, but only notification of the BoR. For Professorships, the BoR must be notified of both name and focus area changes, though the donor must approve.
The BoR meets monthly except in July and November. Typically requests received within two weeks of a meeting will be included on the next agenda, though complex, atypical, and/or incomplete requests may take longer for the staff to review and develop recommendations.
A written request must be submitted to the BoR, specifying the provision to be waived and reason(s) for requesting the waiver as well as providing supporting documentation (e.g., donor approval of waiver request, CVs/qualifications of affected personnel, etc.). Staff will place the item on the agendas of the next scheduled Sponsored Programs Committee and BoR meetings.
Because the System Boards approve establishment of endowments for specific purposes on the campuses under their jurisdiction, their approval is required when an endowment changes type (e.g., from a scholarship to a professorship). Systems may require more restrictive oversight for their campuses, but it is not mandated by the BoR.
Yes. The faculty holder may purchase anything that meets the purpose(s) of the original endowment, contributes to his/her professional work, and does not violate Regents’ policies regarding supplantation and/or general discretionary use of an academic department or unit.
No, unless the administrator is also the endowment holder. While academic administrators may discuss or make recommendations of appropriate or strategic uses of endowment income available for expenditure, it is expected that the faculty holder has discretion to make most decisions regarding use of funds. The letter of appointment between the campus and faculty holder should specify any conditions on the expendable income, including the portion to be allocated for salary and any conditions on use of discretionary funds (e.g., share for graduate student support). When an endowment is vacant, funds cannot be expended except for specific, defined purposes in support of the original intent of the endowment and with permission of the original donor and the BoR.
Yes. The faculty holder may purchase anything that meets the purpose(s) of the original endowment, contributes to his/her professional work, and does not violate Regents’ policies regarding supplantation and/or general discretionary use of an academic department or unit.
No. All equipment, supplies, software, and other tangibles must be retained as property of the campus and cannot be considered or used as personal property by the endowment holder. A faculty holder may receive a salary supplement and use that to purchase items for personal use.
Salary support through the endowment can only be provided for work performed. An appropriate amount of summer support, not to exceed a 2/9th share of the nine-month salary, may be provided if the faculty holder is conducting research or other professional activities related to the purpose of the endowment.
In limited circumstances, with substantial justification, and with donor and BoR permission, a faculty holder may use funds for professional work outside the endowment scope provided such expenditures are allowable (i.e., not supplantation, not for general discretionary use of the department). Such expenditures must be approved by all parties before any action is taken by the endowment holder or academic administration.