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INVESTING ENDOWMENT INCOME

Accounting Services Section (ACT)

Procedure 7

Effective Date: 03/01/2002

Last Modified Date: 2/18/2003

University Endowment Income

Investing in the Investment Fund

  1. Prepare an Account Adjustment Request (form AJ-1). As the debit account, use the income account, with 5970 as the account control (object code). For the credit account, use the endowment account, with 4960 as the object code. In the description section, describe the transaction as "income-invest fund."
  2. Submit the completed and signed AJ-1 to Accounting Services, CB #1210.
  3. The monthly FBM090/091 reports for the endowment accounts will display principal balances using object code 1231 and the invested income balances using object code 1236.

Withdrawing from the Investment Fund

  1. Complete the Withdrawal of Invested Income Request Form (see ACT Appendix 19) and make two duplicates.
  2. Send the signed, original form to Accounting Services at CB #1210; send one copy to the Investment Office at CB #1300; and keep one copy for department records.

Foundation Endowment Income

Investing in the Investment Fund

  1. Send a memorandum to the University Controller, CB #1270, showing the University gift account that receives the allocation of Foundation endowment income and the amount of income that should be invested in the Investment Fund. The disbursing authority for the account must sign the memorandum.
  2. Foundation endowment income funds to be invested in the Investment Fund must be identified prior to the transfer of any Foundation funds to the University gift account.
  3. The monthly FBM090/091 reports for the endowment accounts will display principal balances using object code 1233 and the invested income balances using object code 1236.

Withdrawing from the Investment Fund

  1. Send a memorandum to the University Controller, CB #1270, showing the University gift account that receives the allocation of Foundation endowment income and the amount of income that should be withdrawn. The disbursing authority for the account must sign the memorandum.
  2. The funds will be withdrawn, recorded in the endowment income account, and transferred to the University gift account. Accounting Services will complete the withdrawal form, provide a copy to the Investment Office, and notify the department when the funds are transferred to the appropriate gift account.

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