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Policies and Procedures

Policy 405 – Endowment Fund Addition, Correction and Withdrawal

Effective
July 1, 1996
Last Updated
November 19, 2015
Last Reviewed
November 19, 2015
Responsible University Officer
University Controller
Responsible Unit
Accounting Services

Policy Statement

Addition of Endowment Funds

Substantially all of the investments of the University’s Endowment Funds are pooled in the UNC-CH Foundation Investment Fund, Inc. (Investment Fund). Accounting Services must have available cash or receive cash in the ConnectCarolina Source/principal fund by the end of a calendar month in order to invest monies in the Investment Fund as of the first of the following month.

Correction of additions to an Endowment Fund

Any omissions or discrepancies relating to a gift should be directed to the Office of University Advancement. All other discrepancies should be forwarded to Accounting Services.

If a gift or funds are posted in error to a ConnectCarolina Source/principal fund and the error is detected in the same calendar month, then the error may be corrected in that month by the Office of University Advancement. If an error is detected in subsequent months, then the funds must be withdrawn from the Investment Fund, by Accounting Services, to repost to the account correctly.

Withdrawal of Endowment Funds

To withdraw permanent Endowment Funds from the Investment Fund, the University Controller's approval is needed. To withdraw internally designated (quasi) endowment from the Investment Fund, the University Controller must be notified. The University Controller may grant approval with due consideration to the circumstances of withdrawal, donor's agreement, UPMIFA guidelines and other applicable restrictions.

Accounting Services will process approved withdrawal of funds and post payment to the relevant Sources at the end of the calendar month, subject to 30 days prior notice.

Income Distribution upon Withdrawal of Endowment Funds

If an endowment is to be totally withdrawn from the Investment Fund, then the accrued income distribution (payout) will be credited to the ConnectCarolina source/income fund at the time of the withdrawal.

When an endowment Source is partially withdrawn, only the principal market value will be withdrawn from the Investment Fund. The accrued income distribution (payout) will not be credited to the account until the following June when the annual distribution is made.

Corrections to Withdrawal Discrepancies

Discrepancies made in recording or processing withdrawals will be corrected in the period in which the error is discovered.

Reason for Policy

This policy serves to provide guidance on additions, corrections and the withdrawal of endowment funds.

Exclusions

None.

Special Situations

None.

Procedures

405.1 - Adding and Withdrawing Endowment Funds

Additional Information

Frequently Asked Questions

Q: Are the funds earning any income while it is waiting for investments in the Investment Fund?
A: Pending investment in the Investment Fund, additions will be invested in the Temporary pool with earnings credited to the endowment Source/income fund.

Forms and Instructions

Office of University Advancement

Contacts

SUBJECT CONTACT TELEPHONE FAX E-MAIL
Investment Accounting (Acct. Services) Investment Accountant 919-843-4476 919-962-3306 accounting@unc.edu

History

Revised:
November 20, 2015: Updated terminology related to ConnectCarolina.
January 19, 2010