Endowment Payout Process Tutorial 4: Understanding Share Value Other Available Tutorials: 1. Fiscal Year 2014 Endowment Payout Process Change 2. Basic.

Slides:

Advertisements

Similar presentations

Electronic Presentations in Microsoft® PowerPoint®

Advertisements

Stock Market Game Mrs. Heinze.

4.03 Solve Related Mathematical Problems. Opening Cash Fund The opening cash drawer contains the coins and currency for the days business The till is.

Pricing Futures By Ryota Kasama.

By: Miss Siti Norhidayah Hamid. The profit & loss statement is a financial statement. It is used as the primary means of evaluating the economic performance.

Workshop: A Review of Financial Statements with Analysis

Church Finances July Financial Update financial year summary for general account Building fund income and expenditure to date Projection.

Review of the Accounting Process INTERMEDIATE ACCOUNTING I CHAPTER 2 This presentation is under development.

Microcomputer Accounting Applications – QuickBooks Adjusting Entries Review.

Updated February Endowment Accounting Growing Our Future.

Finance 300 Financial Markets Lecture 19 Fall, 2001© Professor J. Petry

Fiscal Year 2014 Endowment Payout Process Change Posted July 2013.

Investing 101. Types of Savings tools Savings Account: An interest-bearing account (passbook or statement) at a financial institution. Certificates of.

Copyright © Cengage Learning. All rights reserved. Chapter 2 Analyzing Business Transactions.

Special Events What You Need to Know. What is a Special Event? Primary purpose is to raise funds other than contributions to finance an organization’s.

Overview of Long-Lived Assets Long-lived assets - resources that are held for an extended time, such as land, buildings, equipment, natural resources,

Introduction Organizing a Business The Role of The Financial Manager Financial Markets Corporate Goals & Incentives.

 Accrual accounting  Revenue  Earned when company delivers a product or performs a service  Expenses  Incurred when company uses resources or services.

Problem 4-1Template Transaction Government Fund Statements Government- Wide Statements 1. Government grant of $ Increase in market value of notes.

12-1 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA.

Communicating the Facts on GASB 68

Endowment Payout Process Posted July Confidential Stanford University Confidential Stanford University Endowment Payout Process Tutorial Segments.

Accounting and the Business Environment

AIM How can you invest smartly when stock prices are declining? DO NOW How does short selling work? SELLING SHORT AND DCA.

Principles of Business, Marketing, and Finance Lesson Four

© The McGraw-Hill Companies, Inc., 2004 Slide 3-1 McGraw-Hill/Irwin Chapter Three Consolidations – Subsequent to the Date of Acquisition.

Learning Objectives Understand the Business – LO1 Explain why adjustments are needed. Study the accounting methods – LO2 Prepare adjustments needed at.

Accounting Concepts & Rules In this lesson we study different concepts used in accounting which help us make correct accounts.

CHAPTER 18 Buying Plant Assets and Paying Property Tax.

Accounting and the Business Environment Chapter 1 1-1Copyright ©2014 Pearson Education, Inc. publishing as Prentice Hall.

FINANCIAL SECURITIES: MARGIN ACCOUNTS CIE 3M1. AGENDA OPENING A MARGIN ACCOUNT OPENING A MARGIN ACCOUNT MARGIN ACCOUNTS: A DEFINITION MARGIN ACCOUNTS:

Calculating tax deductions In Australia the financial year is 1 st July to 30 th June. Depreciation of certain items are tax deductible, eg job related.

Unit 1.5 Accounting for a Merchandising Operation.

May 5, Begin Unit 6: 10-15% of AP Macro Exam Open Economy: International Trade and Finance 2.Comparative Advantage Review On Website 3.Unit 6 Lesson.

Learning Objectives Understand the Business – LO1 Describe common operating transactions and select appropriate income statement account titles. Study.

Accounting and the Business Environment Chapter 1 1-1Copyright ©2014 Pearson Education, Inc. publishing as Prentice Hall.

INTERNATIONAL FINANCE Lecture 28. Review Economic Exposure with Empirical Analysis An MNC can determine its exposure by assessing the sensitivity MNC.

Available to anyone who purchases a Rainbow prior to graduating initial training classes. The Owner Equity Program.

Review of the Accounting Process

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA APPENDIX.

1 Income Statement. 1.Buying a horse (for me!) 2.How much did I pay? 3.What do I have invested in it? 4.What to sell it for? Simple Transaction.

Endowment Reporting Finance Director Presentation April 17, 2012 Presented by: Jennifer Hinkle with Renee Fitzmorris.

Chapter 12 Long-Term Liabilities

Michelle Clawson, CPP October 8,  Michelle Clawson, CPP Payroll Manager Driscoll’s Strawberry Associates, Inc.

Chapter 2 Basic Accounting Concepts. Learning Objectives After studying this chapter, you should be able to…  Describe the basic elements of a financial.

Securities Market Investments and Portfolio Management MB 72.

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 13 Merchandiser’s Adjustments and Trial Balance.

Chapter 3 The Adjusting Process

Chpt 5-2 Equity Transactions & Accounting Standards.

© 2006 Prentice Hall Business Publishing Introduction to Financial Accounting, 9/e © 2006 Prentice Hall Business Publishing Introduction to Financial Accounting,

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA APPENDIX.

Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter 11 College and University – Private Institutions Copyright © 2015 McGraw-Hill.

Financial Statements, Forecasts, and Planning

WEYGANDT. KIESO. KIMMEL. TRENHOLM. KINNEAR. BARLOW. ATKINS PRINCIPLES OF FINANCIAL ACCOUNTING CANADIAN EDITION Chapter 14 Corporations: Additional Topics.

©CourseCollege.com 1 19 Investments Learning Objectives 1.Account for Trading Investments 2.Account for Debt Investments 3.Account for Stock Investments.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 12 SLIDE Financial Records and Financial Statements 12.

Answer of ch 2 Cash flow. E12-2 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) Suppose your company sells services.

Clemson University Foundation Review of Restricted Funds 1.

Financial Management. Purpose of Financial Reports Financial Reports – Summarize financial data over a given period of time (shows if the company made.

October 21,  The purpose of accounting is to provide the necessary financial information so that accurate and timely decisions can be made.

© 2015 Cengage Learning. All Rights Reserved. Learning Objectives © 2015 Cengage Learning. All Rights Reserved. LO1 Account for the declaration and payment.

Basic Accounting Concepts

Chapter 2 Measuring Income to Assess Performance.

Adjusting Accounts and Preparing Financial Statements

Reading Endowment Fund Financial Statements

Endowment Payout Process

Financial Records and Financial Statements

C APER Development 2017 NCDA Conference Miami, Florida June 15, 2017

Accounting 11 Chapter 8 Review.

INTRODUCTION FINANCIAL ACCOUNTING Bangor University Transfer Abroad Programme Lecture 15 (review Ch. 5, 6 & 7)

Presentation transcript:

Endowment Payout Process Tutorial 4: Understanding Share Value Other Available Tutorials: 1. Fiscal Year 2014 Endowment Payout Process Change 2. Basic Mechanics of Endowment Payout Process 3. Commonly Used Endowment Related Reports Recorded July 2013

Confidential Stanford University Confidential Stanford University  Stanford’s primary investment pool is the Merged Pool (MP). Endowment funds are invested in the MP through the purchase of shares.  At any point in time, the MP has a total market value and a number of shares.  Share value = Market value / number of shares  Stanford calculates share value at two points in time every month. What is Share Value?

Confidential Stanford University Confidential Stanford University Ending Share Value is known for a given month following month-end close, mid-way into the following month. Includes impact of: Market appreciation/ depreciation (i.e., performance) Actual earnings – cash earned by MP investments Payout made during the month Needed for accounting related tasks What was the market value of a fund’s investment at the end of a prior month? Reported on financial statements Used to evaluate Payout Resources for the current month’s payout. Ending Share Value 3

Confidential Stanford University Confidential Stanford University  Once Ending Share Value is known for the prior month, an Interim Share Value is immediately calculated as follows:  Interim Share Value Calculation = prior month Ending Share Value minus current month payout per share  The Interim Share Value always represents current Market Value and is used for transactions because it includes the impact of payout on share value. Interim Share Value 4

Confidential Stanford University Confidential Stanford University 5Financial Management Services Interim Share Value for New Gifts Prior month share value = $300 1,000 X $299 MV =$299,000 $1K Payout New Gift: $100K In current month, share value declines by $1 to cover payout Ending Month Share Value – Current Month Payout /Share = “Interim Share Value” New shares must be purchased at $299 since they did not benefit in that month’s payout Buys Shares at $299 1,000 X $300 MV=$300,000 September 1,334.5 X $299 MV =$399,000 Interim Share Value October

Confidential Stanford University Confidential Stanford University  Interim Share Value is used for all transactions because:  Payout is made based on shares held on the first of the month (prior to any transactions for that month).  Shares purchased with new gifts do not generate payout in the month of investment (and therefore buy into the Merged Pool using the “after payout” Interim Share Value).  Withdrawn shares do generate payout in the month they are withdrawn (and so are valued at the “after payout” price)  Transactions in/for a current month always occur after the current month Interim Share Value has been calculated. Interim Share Value Used for All Transactions 6

Confidential Stanford University Confidential Stanford University  RM3 Endowment Reports  123 Endowment Display  128 Endow Investment  Ending and Interim Share Values updated ~15 th of every month  Ending share value for last closed month (and all prior months)  Interim share value for current market value and transactions  Reports display “Ending” and “Interim” in header – explanation in footnote  See Fingate for report examples Share Value on Reports

End of Tutorial 4: Understanding Share Value Other Available Tutorials: 1. Endowment Payout Process Changes for FY14 2. Basic Mechanics of Endowment Payout Process 3. Commonly Used Endowment Related Reports