Managing Trust and Endowment Funds - YouTube

Alternative formats for this presentation can be found on the Financial Services

website or contact us at the Financial Services Training page email us at

finally start training at Queen's you does or give us a call at 61 3533 2050

managing trust an endowment funds details for this workshop will include

an overview of that there is a unique intricacies of trust and ailments months

how to create a fun to various types and required steps and documentation how

donations are received and recorded interest and units on endowed funds

recapitalisation and transfer process she processes in managing your fun

reporting requirements and the importance of accurate financial

information and how to close a fun easy trust a trust fund is comprised of

contributions to the University which are subject to restrictions on how these

amounts are to be spent trust funds may also require that the details of the

amount spent a reported back to the distributor the University only allows

donations for grants and contracts as allowable contributions to a trust

donations to trust funds should only be entered by advancement and are

restricted by dollar terms of reference grants and contracts may only be

recorded to a trust if the terms of the grant or contract indicate that any

money not spent must be returned

why isn't an endowment fund is similar to a trust in that there are

restrictions unhealthy amounts received by the fun are to be spent and there may

also be requirements to report back to the donor your mouth

available to spend comment on is comprised of investment income earned on

capital contributions and is restricted by dollar terms of restaurants capital

contributions are recorded by advanced as endowment equity and will not appear

as revenue these contributions are invested within the university's pools

endowment fun and will earn interest income that is available for spending on

an annual basis

trust an endowment funds always had the following ranges a PeopleSoft general

ledger find IDs trust will fall within their range 50000 25 9999 and 8000 028

4999 funds within this range should meet the definition of a trust external

restricted endowments will fall within the range 71000 27 9999 funds within

this range should meet the definition of an endowment internally restricted

endowments for fall within the range 60000 26 9999 these are signs that the

university has set aside to generate income for specific purposes as decided

by the board of trustees office advancement

desmond is responsible for fundraising and development activities

a Queens this includes annual giving land give major yes capital campaigns

and corporate and foundation fundraising accepting donations most owners will get

to existing trust or endowment funds but may decide to create a new fund to

support students or a specific University function as suggested minimum

of $10,000 is required to create a new trust fund held within a faculty $12,500

up strong or $2,500 per year for five years for Student Award trust line and

$50,000 is required to create a new endowment sign the office of advancement

should be contacted regarding the establishment of any new trust or

endowment all trust an endowment funds terms of reference which detail how the

amounts gifted may be spent

terms may require the office of advancement to be involved in reporting

the financial stewardship of the farm back to the donor give services

charitable tax receipts are issued for applicable contributions by guest

services all contributions are then recorded to appropriate churchill's in

the PeopleSoft general ledger how to open a trust or endowment fund

terms of reference every trust in government funds must have a terms of

reference please contact the office of advancement to start this process this

document details the purpose of the fun who was responsible for the same

expenditure guidelines and reporting requirements if applicable the terms of

reference must be signed by any individuals responsible in the creation

or the administration of fun where applicable

these individuals may include the following the donor the Dean or head of

the department benefiting from this time associate University Registrar student

awards and the vice principal of advancement terms of reference documents

are held with the office of advancement heartfelt request once the terms of

reference have been established for the new fun requests can be made to add a

new TLC 92 people saw through financial services for more information on the

form and how to complete the swamp the procedures page managing funds all

contributions received for endowment funds are permanently interested in the

pools Endowment Fund also known as pets internally restricted in downloads are

university established funds intended to be vested permanently but the board of

trustees may decide to on Dell announced should the need arise endowment capital

from external donors will always remain in doubt investment services

the test is administered by investment services and investment activities are

governed by policies by the investment committee of the Board of Trustees for

more information about the path visit the Contact Us page investment services

interest and units first let's talk about interest investment is responsible

for establishing the yearly dividend spending rate for the Pats the rate is

determined by a hybrid formula that is designed to release current income to

the operating budget in a stable stream and protect the value of endowment

assets if the spending rate for the fiscal year is 9.7 $0.03 per unit and an

endowment fund held 100,000 units within the past it would receive 9700 and $30

endowment income that is a hundred thousand units point 93 cents per unit

any contributions received during the fiscal year would receive a pro-rated

diffident depending on when the contributions received the proportion is

equal to 12 months minus the fiscal period the contributions received

divided by 12 months for example contributions received in a period one

would receive 12-1 divided by 12 or not been divided by 12 of the yearly

dividend a contribution received in October 6 what received 6/12 of the

yearly dividend and one received in April 3 12 but received no evidence

units the PATH operates in a similar manner to a mutual fund value over union

is determined by dividing the total current market value of this by the

number of units outstanding the past few net value is calculated monthly and

posted online under the Contact Us page investment services

path unit value is used to determine the number of units and endowment for

example an endowment

receiving $100,000 in capital contribution in October 2014 what

received 30 2009 hundred and seventy-six 2009 units that is $100,000 divided by

three points 0325 with three-point 0325 being the path unit valued at October

31st 2013 the number of units an endowment fund holds determines the

endowment income it receives based on the yearly dividend pending a

recapitalisation to recapitalize funds in an endowment fund used to take excess

endowment fund income that is surplus from the current or prior year and

transfer that balance to capitol this means that the amount will be

permanently reinvested in the task to generate additional endowment income for

the fun financial services processes all recapitalizations at the end of each

fiscal year for more information on how and when to recapitalize excess income

just the faculty staff page trust and endowments in telling other excess

income generally only an endowment is allowed to endow surplus amounts however

with the approval of the associate vice principal finals and travels surplus

amounts may be in doubt

other signs such as the operating it transfers from a trust fund transfer

must align with the trust funds terms of reference request to transfer funds to

endowment capital auspey completed and forwarded to financial services for

review and approval these requests may be submitted at any time during the

fiscal year for more information on these transfers this faculty staff page

trust an endowment trust an endowment funds may have different reporting

requirements depending on who provided emails received donors may place a

requirement as part of the terms of reference for a trust for endowments on

report how the amounts received by the fund were spent departments will work

with advancement to properly report back to donors and reports are prepared after

the fiscal year ends to be distributed to donors by the end of September Grand

Tours trust funds established through grant may require reporting back to the

grantor based on the terms set in the grant agreement how much to spend the

amount of trust or endowment is allowed to spend is dependent upon terms of

fresh fruits amounts received during the year and any surplus carried over from

previous fiscal year's grants will often dictate whether the amounts received by

a trust are intended to be spent over a period of years or by a certain Deed in

my also have

annual spending limits donations to trust funds are expendable and to be

spent as received endowment income is intended to be spent within the fiscal

year that it was received any excess income can be recapitalized to earn more

endowment income in the future how to record spending the university's

responsibility to report back to donors and craters on a timely basis requires

that spending record was entrusted an endowment funds is accurate and detailed

revenue transfers to other funds do not provide adequate detail to demonstrate

proper stewardship of funds and are therefore not permitted specific

restriction the terms of reference for the trustor endowment will determine

where amounts can be spent and dictates the geology counts to be used for

example a fund that awards scholarship would record expenses to this fun using

account 63000 one called scholarships and bursaries expense can be record

directly to the fund or by using an internal cost recovery from the

operating on departmental faculty restriction some funds may be less

specific in healthy now to receive our step but instead restrict which specific

faculty or department me spend those announced for these types of funds the

department may choose to record expenses directly to the trust or endowment as

above however it is also acceptable to use an internal cost recovery from the

operating sign to offset any departmental expenses this method is

also a simple way to ensure that the trust or endowment uses its full amount

of spending for the fiscal year or more information on internal cost recoveries

and revenue transfer his visit the training page additional resources like

how to close a trust run down there are several reasons I trust or endowment

fund may need to be closed some examples include donor or grant amounts received

have been spent donors intended use of fans are no longer relevant due to

technological social or university

reasons donor has decided to change the terms of reference for the Sun similar

to the process of creating a trust or endowment sign the Department will need

to work closely with a chance to ensure all those involved with the creation of

the files are in agreement with the closure of the fun where applicable

during this discussion

a decision can be made on where to transfer any remaining amounts within

the trust once if there's one has to agree that the thought may be closed a

charcoal request form needs to be completed first financial services to

process the closure of the fund in people here are some additional

resources

email the financial reporting team at financial . reporting a clean sheet dots

for Financial Services website resources relating to trust and endowments this is

a financial website faculty staff page trust and endowments link the storm

stage procedures page and funds and the Contact Us page investment services may

we help you to give us a call at 61 3533 2050 email us at finance at Queen's you

don't see it but it also is located at 207 stewart's

hours of operation are Monday through Friday 10 a.m. to 4 p.m. this concludes

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