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).