Policies and Procedures
Policy 405 – Endowment Fund Addition, Correction and Withdrawal
July 1, 1996
November 19, 2015
November 19, 2015
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 If an error is detected in subsequent months, then the funds must be withdrawn from the Investment Fund, by Accounting Services, to repost to the account correctly.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If an endowment is to be totally withdrawn from the Investment Fund, then the accrued income distribution (payout) will be credited to the ConnectCarolina source/income fund at the time of the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When an endowment Source is partially withdrawn, only the principal market value will be withdrawn from the Investment Fund.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.
405.1 - Adding and Withdrawing Endowment Funds
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
|Investment Accounting (Acct. Services)||Investment Accountantfirstname.lastname@example.org|
November 20, 2015: Updated terminology related to ConnectCarolina.
January 19, 2010