1. Intro to UF Foundation & ODAA University of Florida Foundation David Christie, CPA, CGMA, CITP Controller, UF Foundation dchristie@uff.ufl.edu 392-5475

2. Intro to UF Foundation & ODAA Agenda  About Us  How to (website, forms, policies)  Gifts Received  FAS Overview  Endowment Basics  Pre-endowments  UFICO & Investments  New Auto Transfer Process

3. Intro to UF Foundation & ODAA About Us  Office of Development & Alumni Affairs  Mission is advancement of UF through private support  ODAA Partnerships  UF Foundation,  UF Alumni Association  College and Unit Development Offices

4. Intro to UF Foundation & ODAA Integrated Advancement Model

5. Intro to UF Foundation & ODAA About UF Foundation  Mission: raise/manage private donations for UF  Fundraising, Fund Management, Alumni Affairs  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.  $1.53B Endowment as of September 30, 2014

6. Intro to UF Foundation & ODAA 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)

7. Intro to UF Foundation & ODAA Forms & Documents

8. Intro to UF Foundation & ODAA 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.

9. Intro to UF Foundation & ODAA 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.

10. Intro to UF Foundation & ODAA 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

11. Intro to UF Foundation & ODAA Foundation Accounting System (FAS)  Purpose is to make information accessible to fund administrators and other users  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)

12. Intro to UF Foundation & ODAA FAS Log-in  https://fasweb.uff.ufl.edu/FAS/login_prompt.asp https://fasweb.uff.ufl.edu/FAS/login_prompt.asp  Link from Business Center log-in screen

13. Intro to UF Foundation & ODAA

14. 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.

15. Intro to UF Foundation & ODAA 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

16. Intro to UF Foundation & ODAA Endowment Spending Policy (cont.)  Spending Rate  4% annually of Spending Base: Endowment Purpose  1.2% annually of Spending Base: UFF Overhead Fee  Spending base  Spending/fees calculated on spending base, not MV  Goal is to provide stable income stream  Spending base is adjusted if the ratio falls outside of 85 – 95% of market value  Evaluated quarterly

17. Intro to UF Foundation & ODAA Pre-endowments  UFF Policy #2.19 Endowed Funds and Related Naming Opportunities revised  Available for funds with a balance less than the required $30,000 minimum  Invested in endowment pool and receives earnings allocations  Spendable transfers are turned off until minimum is reached  Available for existing and future funds

18. Intro to UF Foundation & ODAA 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

19. Intro to UF Foundation & ODAA Endowment Investments  Target real return of 5.2%, preserve purchasing power  Over 2,900 endowments pooled together  Investment Schedule Month ReceivedInvested December, January, FebruaryApril 1st March, April, MayJuly 1st June, July, AugustOctober 1st September, October, NovemberJanuary 1st

20. Intro to UF Foundation & ODAA New Auto Transfer Process  Implemented July 1, 2014  Goal is to make Foundation monies more readily available for spending  Includes all non-endowed monies, as well as, the spendable funds of endowments

21. Intro to UF Foundation & ODAA Returns *Market ValueSpending BaseRatio SB/MVSB AdjustmentQuarterly Transfer Gift received April 13, 2012 100,000N/A Invested July 1, 2012 100,000 90,00090.0%N/A Value at September 30, 20124.0% 104,000 90,00086.5%None = 90,000 x 1% = 900 Value at December 31, 20123.4% 107,500 90,00083.7%Required = 90,000 x 1% = 900 SB adjustment 1,375 107,500 91,37585.0%As adjusted Value at March 31, 2013-4.2% 103,000 91,37588.7%None = 91,375 x 1% = 914 Value at June 30, 2013-8.9% 93,800 91,37597.4%Required = 91,375 x 1% = 914 SB adjustment (2,265) 93,800 89,11095.0%As adjusted Value at September 30, 20131.8% 95,500 89,11093.3%None = 89,110 x 1% = 891 * Returns are net of fees and spending transfers Spending Base Example

22. Intro to UF Foundation & ODAA Questions? David Christie, CPA, CGMA, CITP Controller, UF Foundation dchristie@uff.ufl.edu 392-5475