Handbook
For Medical School Accountants
University of MN Foundation, University Endowments,(CEF, GIP) and Gifts to University
Last Date Reviewed: 10/6/2015
An endowment represents funds received from a donor or other outside entity in an agreement which, as a condition of the gift, generally stipulates that the principal is to be maintained in perpetuity and invested for the purpose of producing an income stream. In general, endowments are to be managed/invested so the value of the principal maintains its purchasing power (intergenerational equity) while generating income for spending.
Endowments are usually given for a specific purpose. The funds generated by the endowment must be used to support the donor’s intent. Endowments can be used to support a department chair or professorship, lectureships, fellowships, general support or research. A chair or a professorship is a title given to a faculty member who is then allowed to direct spending on the income generated by the chair or professorship endowment(s).
PUF (Permanent University Fund) Chairs
PUF chairs have two pieces to them. One endowment is held by Central and the other piece is held by the University of Minnesota Foundation (UMF), these combine to make the total value of the Chair. In October, January, March and Period 13 in June, Central allocates income and UMF deposits earnings into the PUF target chartstring. The money is not allocated from the Dean’s Office.
Questions on PUF chairs should be directed to Controllers Office-Treasury department or Phone 612-624-1617.
UMF (University of Minnesota Foundation):
The website for the U of M Foundation is located at http://www.giving.umn.edu/
The financial system at the U of M Foundation is called DMS (Donor Management System) and is located at http://www.foundation.umn.edu/dms.html. You must request access to have the ability to view this website. The DMS Access Policy and Request Form is found on the main page in the upper left hand corner. In this website, you can access the fund request forms, close a fund, transfer between funds, process gift transmittal forms, get the DMS access policy & request form, change or add authorized signers, view documents relating to the funds and view/download fund summaries/statements for your University Foundation funds. In addition, UMF has developed several fund utilization reports to help a department manage its funds.
PUF distributions will automatically occur in October, January, April and Period 13 of June. UMF does the EFS (Enterprise Financial System) billings for those transactions. All other withdrawals are done via an EFS invoice to the Foundation. Funds must be drawn down into a 1701 fund chartstring and include the UMF CF1 value for the fund that is being drawn down on or the Foundation will refuse to pay the invoice. The invoice must be printed at your desk and signed by an authorized signer on the Fund. It then gets sent to UMF for processing. Some Departments have developed Disbursement Forms to have the Authorized Signer sign and then attach those to the invoice. UMF has agreed that this is an acceptable alternative to having the Authorized Signer sign the invoices. See the SOP supplemental – UMF Draw Down Form as an example. Using an authorized signer form prior to creating the invoice saves time and creates efficiencies in getting funds transferred from UMF to an EFS chartstring.
There used to be two foundations at the U of MN, UMF and the Minnesota Medical Foundation (MMF). The two foundations merged and there were several changes in policy as a result. UMF fund numbers are 4 numbers long. Old MMF fund numbers are 5 numbers long and have a 1 and the old 4 digit MMF fund number. Fund numbers after the merger are 5 digits long and start with a 2XXXX.
UMF funds must have two authorized signers. Fund utilization reports are available to help departments manage this policy. Also, payouts are suspended once a non-matched fund goes underwater by 20% or more and a matched scholarship fund goes underwater by 25% or more.
Any UMF questions can be directed to the Medical School contact at UMF: Natalie Ysker ()
CEF (Consolidated Endowment Fund) and GIP (Group Income Pool) – Endowment Funds that are managed by the University of Minnesota and not UMF. New gifts should generally be sent to UMF, but sometimes are located here.
CEF endowments and GIP Funds are held by Central. To access information on these endowments, you need to have access to EFS. You request access by completing an ARF form (located in the Forms Library) and attending the endowments session held by Training Services.
You access the endowment area by choosing Cash Management from the Main Menu in EFS. Once there, you can check balances on endowments and process deposits, withdrawals, close out funds and change income distribution chartstrings. CEF funds start with P and then have 9 numbers after that. This is referred to as their participant number.
Reporting
UMF – To check balances or to print or download reports, go to the DMS website noted above to run individual “Fund Statement” reports or “Department Summary” reports. Once you run the reports in DMS, the file is downloaded to a file in your “inbox” within DMS. (Top right corner of the webpage). From your Inbox, the reports can be downloaded to Excel. You must have access to the website prior to using DMS. Fill out an access request form and send in to UMF (see above section UMF for instructions on getting access).
CEF – To check balances or to print or download reports, go to the Reporting Center in MyU and find the Endowment section under the Finance area. Reports available are Endowment Detail, Endowment Transaction, and PUF Endowment. You can find transactions or balances here for your endowments. There is also a specific PUF report that combines both the balances from the Foundations and the CEF values. If you do not find an endowment you are looking for in your area, go up a level and search the entire Medical School or just the Dean’s Office. Some endowments are still parented to the Dean’s Office even though they belong to a department.
Balances
The University does not allow chartstrings to be in deficit. Preferably, departments will pre-fund endowment chartstrings based on a pre-determined budget. If that is not possible, departments should draw down funds from the foundation monthly, or at a very minimum, quarterly.
Policies:
GIP: http://policy.umn.edu/finance/gip
CEF: http://policy.umn.edu/finance/investment-proc02
UMF - See SOP supplemental – UMF Policies