Gift Fund Management Gift Fund Management TrainingTraining

Presented by:Presented by:Office of University ControllerOffice of University Controller

University of Colorado FoundationUniversity of Colorado FoundationCampus ControllerCampus Controller

Why this Training?Why this Training?

•• Offered in response to the state audit report Offered in response to the state audit report issued in November 2005issued in November 2005

•• To provide reasonable assurance that gift funds To provide reasonable assurance that gift funds are being spent are being spent –– In a prudent mannerIn a prudent manner–– In compliance with all applicable rules, regulations, In compliance with all applicable rules, regulations,

policies, procedurespolicies, procedures–– In accordance with donor wishesIn accordance with donor wishes

Who needs to take training?Who needs to take training?

•• Anyone who is assigned to a fiscal role on a Anyone who is assigned to a fiscal role on a Fund 34 SpeedTypeFund 34 SpeedType–– Fund 34 is the University’s Gift FundFund 34 is the University’s Gift Fund

Important DatesImportant Dates

•• The new Fund 34 policies, procedures, and The new Fund 34 policies, procedures, and system enhancements go into effect March 6. system enhancements go into effect March 6.

•• The deadline for completing training is May 31.The deadline for completing training is May 31.

Part IPart I

For ALL Fiscal RolesFor ALL Fiscal Roles

Training OutlineTraining Outline•• Provide an overview of three key gift processesProvide an overview of three key gift processes•• Offer a brief look at common Foundation fundsOffer a brief look at common Foundation funds•• Identify what’s changing relative to policies, Identify what’s changing relative to policies,

processes, and system enhancementsprocesses, and system enhancements•• Review Direct to University giftsReview Direct to University gifts•• ReRe--visit “visit “Fiscal Roles and ResponsibilitiesFiscal Roles and Responsibilities” per ” per

Administrative Policy StatementAdministrative Policy Statement

CU Foundation (CUF)CU Foundation (CUF)

•• Entity charged with fundraising for the Entity charged with fundraising for the UniversityUniversity

•• Preference is to deposit gifts through CUFPreference is to deposit gifts through CUF•• Gift instruments are made payable to University Gift instruments are made payable to University

of Colorado Foundationof Colorado Foundation•• See the Administrative Policy Statement “See the Administrative Policy Statement “Gift Gift

RevenuesRevenues” for more information ” for more information

Direct to University (DTU)Direct to University (DTU)

•• Donor wants the gift to go directly to the Donor wants the gift to go directly to the UniversityUniversity

•• Checks are made payable to the University of Checks are made payable to the University of Colorado and deposited on campus Colorado and deposited on campus

•• See the Administrative Policy Statement “See the Administrative Policy Statement “Gift Gift RevenuesRevenues” for more information ” for more information

WE ARE NO LONGER PERMITTED TO CO-MINGLE FUNDS DEPOSITED THROUGH THE FOUNDATION WITH FUNDS DEPOSITED

THROUGH THE UNIVERSITY IN THE SAME FUND A 34 SPEEDTYPE

Gift In Kind (GIK)Gift In Kind (GIK)•• Gift In Kind arises when the University receives Gift In Kind arises when the University receives

nonnon--monetary gifts, including art, books, monetary gifts, including art, books, manuscripts, antiques, collections, equipment, manuscripts, antiques, collections, equipment, software, or intellectual property to use in its software, or intellectual property to use in its operationsoperations

•• GIK is no longer processed through CUF, but GIK is no longer processed through CUF, but rather by campuses in accordance with rather by campuses in accordance with Administrative Policy Statement “Administrative Policy Statement “Gift in Kind Gift in Kind TransactionsTransactions””

•• For GIK currently at CUF, open a SpeedType at For GIK currently at CUF, open a SpeedType at University.University.

CU Foundation (CUF)CU Foundation (CUF)

Foundation offers many types of funds Foundation offers many types of funds --most frequently used by the University aremost frequently used by the University are•• Current Expendable FundsCurrent Expendable Funds•• Capital FundsCapital Funds•• Pure EndowmentPure Endowment•• QuasiQuasi--EndowmentEndowment

Current Expendable FundsCurrent Expendable Funds

•• Funds given to the CUF for current spendingFunds given to the CUF for current spending•• Do not receive interest distributionsDo not receive interest distributions•• CUF Current Fund Account begins with 2CUF Current Fund Account begins with 2

–– 0404--2210181018•• 04 = campus (UCCS)04 = campus (UCCS)•• 22xxxx = current expendable fundxxxx = current expendable fund

CapitalCapital

•• Funds given to the Foundation for the specific Funds given to the Foundation for the specific purpose of funding capital projects at the purpose of funding capital projects at the UniversityUniversity

•• Interest is allocated at a shortInterest is allocated at a short--term rate while term rate while awaiting distributionawaiting distribution

•• CUF Capital Account begins with CUF Capital Account begins with 22–– 0303--2240184018

•• 03 = campus (UCD)03 = campus (UCD)•• 22xxxx = capital fundxxxx = capital fund

Pure EndowmentPure Endowment

•• Value of the gift invested and held in perpetuityValue of the gift invested and held in perpetuity•• Only distributions from the endowment may be Only distributions from the endowment may be

spent to support University activitiesspent to support University activities–– CUF sets up two funds: the Principal Fund and an CUF sets up two funds: the Principal Fund and an

Earnings FundEarnings Fund•• Decision about how to handle earnings (spend or Decision about how to handle earnings (spend or

reinvest) is made by the University reinvest) is made by the University –– not the CUFnot the CUF

continuedcontinued

Pure Endowment Pure Endowment continuedcontinued

•• Pure Endowment Account begins with Pure Endowment Account begins with 5050 or or 5858–– 0202--5050127127

•• 02 = campus (HSC)02 = campus (HSC)

•• 5050xxx = pure endowmentxxx = pure endowment

•• Corresponding earnings account begins with a Corresponding earnings account begins with a –– 0202--3301270127

•• 02 = campus (HSC)02 = campus (HSC)

•• 33xxxx = earningsxxxx = earnings

•• Look at last three digits to identify the relationshipLook at last three digits to identify the relationship–– 0202--5050127127 (endowment) 02(endowment) 02--3030127127 (earnings) (earnings)

CUF Fund Types CUF Fund Types QuasiQuasi--EndowmentEndowment

•• Funds given to CUF by a donor Funds given to CUF by a donor withoutwithout the the restriction that the gift be held in perpetuity, but restriction that the gift be held in perpetuity, but for which action has been taken by the Regents for which action has been taken by the Regents to hold the gift in perpetuity to hold the gift in perpetuity

•• Therefore, the gift acts as an endowmentTherefore, the gift acts as an endowment–– If want to liquidate, must get Board of Regents If want to liquidate, must get Board of Regents

approval and must often get a letter from the donor approval and must often get a letter from the donor Quasi Endowment Account begins with Quasi Endowment Account begins with 5454 or or 5959

–– 0101--5454128128•• 01 = campus (UCB)01 = campus (UCB)•• 5454xxx = quasi endowmentxxx = quasi endowment

CUF Q&ACUF Q&A•• When I have gift money, and I’m working with When I have gift money, and I’m working with

CUF to set up an account, how do I know what CUF to set up an account, how do I know what type of account to set up?type of account to set up?–– Work with your respective Development Staff at the Work with your respective Development Staff at the

CUF CUF http://www.cufund.org/staffdir.phphttp://www.cufund.org/staffdir.php

•• What’s this $10,000 minimum deposit I keep What’s this $10,000 minimum deposit I keep hearing about?hearing about?–– CUF’s first choice is to deposit gifts less that $10,000 CUF’s first choice is to deposit gifts less that $10,000

into an existing fund with the same Gift Purpose as into an existing fund with the same Gift Purpose as designated by the donor for the new gift. Contact designated by the donor for the new gift. Contact CUF with special needs and requests.CUF with special needs and requests.

CUF Q&A CUF Q&A continuedcontinued

•• Each month I get financial reports for my Each month I get financial reports for my University SpeedTypes and reconcile them. University SpeedTypes and reconcile them. Should I be doing the same thing for my CUF Should I be doing the same thing for my CUF accounts?accounts?–– YES!! YES!! –– Contact the CUF Accounting Department at Contact the CUF Accounting Department at

303303--541541--1231, or send an email to 1231, or send an email to accounting@cufund.orgaccounting@cufund.org to get CUF reportsto get CUF reports

What’s Changing with Gift What’s Changing with Gift Management at the University?Management at the University?

•• OneOne--toto--One Relationships Between CUF One Relationships Between CUF Account and University SpeedType Account and University SpeedType –– Addition of Gift Attributes to SpeedTypeAddition of Gift Attributes to SpeedType

•• Automated Transfer Process for CUF FundsAutomated Transfer Process for CUF Funds•• Restrictions on Fund 34 SpeedType JEsRestrictions on Fund 34 SpeedType JEs•• ReRe--visiting fiscal roles per Administrative Policy visiting fiscal roles per Administrative Policy

Statement “Fiscal Roles and Responsibilities”Statement “Fiscal Roles and Responsibilities”

ALL OF THE CHANGES ARE DESIGNED TO PROVIDE REASONABLE ASSURANCE THAT GIFTS ARE SPENT ACCORDING TO DONOR’S WISHES.

One to One RelationshipOne to One Relationship

•• ““One to One” relationship between Foundation One to One” relationship between Foundation (CUF) Account and Fund 34 SpeedType means (CUF) Account and Fund 34 SpeedType means that a Fund 34 SpeedType can receive funds that a Fund 34 SpeedType can receive funds from one CUF Account ONLYfrom one CUF Account ONLY

•• The Gift Purpose Code on the CUF Account The Gift Purpose Code on the CUF Account and the Expense Purpose Code on the Fund 34 and the Expense Purpose Code on the Fund 34 SpeedType MUST BE COMPATIBLESpeedType MUST BE COMPATIBLE–– Ensures both the CUF and the University Ensures both the CUF and the University

understand the donor’s wishesunderstand the donor’s wishes

Automated Transfer ProcessAutomated Transfer Process

•• CUF will transfer funds, using a wire transfer, CUF will transfer funds, using a wire transfer, from CUF Account to University’s Fund 34 from CUF Account to University’s Fund 34 SpeedType based upon actual expenses SpeedType based upon actual expenses up to up to the amount availablethe amount available in the CUF Accountin the CUF Account

Department spends $1,000 out of University’s

Fund 34 SpeedType

$1,000 is automatically drawn from corresponding CUF

Account

Restrictions on Fund 34 JEsRestrictions on Fund 34 JEs•• JEs, short for “Journal Entry”JEs, short for “Journal Entry”

–– Typically used to correct transactions that have been Typically used to correct transactions that have been recorded incorrectly in the Finance Systemrecorded incorrectly in the Finance System

–– Also used to transfer cash from one SpeedType to Also used to transfer cash from one SpeedType to anotheranother

•• Purpose of the JE restrictions are to ensure that Purpose of the JE restrictions are to ensure that donor wishes are honored once funds are in a donor wishes are honored once funds are in a University SpeedType University SpeedType –– The new the Gift Transaction Page in the Finance The new the Gift Transaction Page in the Finance

System checks for gift purpose compatibility on each System checks for gift purpose compatibility on each and every line of a Fund 34 JEand every line of a Fund 34 JE

–– Fund 34 JEs also require a Certification Statement Fund 34 JEs also require a Certification Statement attesting to the appropriateness of the chargesattesting to the appropriateness of the charges

Fiscal Roles and Gift Fund Fiscal Roles and Gift Fund Management Management -- Fiscal PrincipalFiscal Principal

•• Principal administrator of an responsibility unit Principal administrator of an responsibility unit entrusted with fiscal responsibility for the unitentrusted with fiscal responsibility for the unit

•• Determine what to do with Endowment Determine what to do with Endowment earningsearnings

•• Per APS “Fiscal Roles and Responsibilities”Per APS “Fiscal Roles and Responsibilities”–– Set a tone for ethical conduct and integritySet a tone for ethical conduct and integrity–– Be knowledgeable about and accountable for the Be knowledgeable about and accountable for the

fiscal transactions of the unit fiscal transactions of the unit continuedcontinued

Fiscal Principal Fiscal Principal continuedcontinued

•• Provide guidance and direction to subordinate Provide guidance and direction to subordinate employees in carrying out their fiscal dutiesemployees in carrying out their fiscal duties–– Be familiar with financial rules & regulations, policies Be familiar with financial rules & regulations, policies

& procedures and serve as a resource for subordinate& procedures and serve as a resource for subordinate–– Ensure subordinates understand their assigned fiscal Ensure subordinates understand their assigned fiscal

responsibilities and are adequately trainedresponsibilities and are adequately trained•• Two people (one who is certified) must participate in every Two people (one who is certified) must participate in every

transactiontransaction•• C.R.S. 24C.R.S. 24--3030--202 (3) holds employees personally responsible 202 (3) holds employees personally responsible

for their actions when processing fiscal transactionsfor their actions when processing fiscal transactions–– Include an assessment of fiscal responsibilities in Include an assessment of fiscal responsibilities in

performance reviewsperformance reviews

Part I Part I -- SummarySummary

•• Emphasize the importance of adhering to donor Emphasize the importance of adhering to donor restrictionsrestrictions

•• Offer an overview of the policy, process, and Offer an overview of the policy, process, and system changes resulting from the Gift Fund system changes resulting from the Gift Fund Management ProcessManagement Process

•• Provide a reminder about the importance of Provide a reminder about the importance of carrying out fiscal responsibilities associated carrying out fiscal responsibilities associated with Fiscal Principal rolewith Fiscal Principal role

Part IIPart II

For Fiscal Managers, Fiscal Staff, and For Fiscal Managers, Fiscal Staff, and Additional ContactsAdditional Contacts

Part IIPart IIFocuses on how to get things done. Focuses on how to get things done. Looks at policies, processes, and Finance System Looks at policies, processes, and Finance System

changes including thechanges including the•• OneOne--toto--one relationship between a CUF one relationship between a CUF

Account Account and the Universityand the University’’s Fund 34 s Fund 34 SpeedType SpeedType –– There is a new Gift Attribute page in the Finance There is a new Gift Attribute page in the Finance

System that is designed to support this relationship. System that is designed to support this relationship.

•• Automated Transfer ProcessAutomated Transfer Processcontinuedcontinued

Part II Part II continuedcontinued

•• Restrictions on Fund 34 Journal Entries Restrictions on Fund 34 Journal Entries –– Including the enhanced JE pages for Fund 34 Including the enhanced JE pages for Fund 34

transactionstransactions

•• Handling of Direct to University (DTU) giftsHandling of Direct to University (DTU) gifts

OneOne--toto--One RelationshipOne Relationship•• OneOne--toto--one relationshipone relationship between CUF between CUF

Account and Fund 34 SpeedType Account and Fund 34 SpeedType –– Fund 34 SpeedType can receive funds from one Fund 34 SpeedType can receive funds from one

CUF Account Only CUF Account Only •• Exceptions are very rare, and must be approved by the Exceptions are very rare, and must be approved by the

campus controller campus controller

•• Gift Purpose Code on CUF Account and Gift Purpose Code on CUF Account and Expense Purpose Code on University Fund 34 Expense Purpose Code on University Fund 34 SpeedType MUST BE COMPATIBLESpeedType MUST BE COMPATIBLE–– A list of Gift Purpose Codes can be found at A list of Gift Purpose Codes can be found at

http://www.cusys.edu/controller/Gifthttp://www.cusys.edu/controller/Gift--Attribute.htmAttribute.htmcontinuedcontinued

OneOne--toto--One Relationship One Relationship continuedcontinued

•• Information about the CUF Account and Fund 34 SpeedType is Information about the CUF Account and Fund 34 SpeedType is on the on the Gift Attributes PageGift Attributes Page in the Finance System. Navigation in the Finance System. Navigation is as followsis as follows

Gift Attributes PageGift Attributes Page

Opening a New CUF Account &Opening a New CUF Account &Associated University SpeedType Associated University SpeedType

One Stop Shopping One Stop Shopping •• Use one form to set up Use one form to set up bothboth the CUF Account the CUF Account

and University Fund 34 SpeedTypeand University Fund 34 SpeedType–– Allows both entities to know assigned fiscal roles Allows both entities to know assigned fiscal roles

and gift purposesand gift purposes–– Form can be accessed at Form can be accessed at

http://www.cu.edu/forms/fin.htmlhttp://www.cu.edu/forms/fin.html

Flow Chart for New CUF Fund and Flow Chart for New CUF Fund and New University SpeedType New University SpeedType

CUF Development Officer* (sometimes the Organizational Unit)gathers gift documentation and attaches it to Fund/SpeedType Request Form

Organizational Unit* completes its section of the Fund/SpeedType RequestForm by providing contact information for the requestor, fiscal role

information for the Program, SpeedType and Subclass; and a Program Name

CUF Accounting Department completes its section of the Fund/SpeedTypeRequest Form by assigning a Fund Number, proposing a Fund Title,

Assigning a Gift Purpose Code, and identifying the Campus, School/College,Organizational Unit, and Campaign or Project Code (if applicable).

Campus Controller* completes its section of the Fund/SpeedType RequestForm by assigning the Expense Purpose Code (EPC). The EPC must

be compatible with the Gift Purpose Code assigned by the CUF.*At HSC some of these tasks are performed by OGC.

Making a DepositMaking a Depositto a CUF Accountto a CUF Account

•• When gifts are received, make sure that the When gifts are received, make sure that the funds are deposited into a CUF Account having funds are deposited into a CUF Account having a Gift Purpose that is compatible with the a Gift Purpose that is compatible with the donor’s wishesdonor’s wishes–– Questions about making the deposit? Questions about making the deposit? –– Contact CUF at Contact CUF at accounting@cufund.orgaccounting@cufund.org

OneOne--toto--One One PlusPlusParentParent--Child SpeedType RelationshipChild SpeedType Relationship•• The CUF Account The CUF Account –– University Fund 34 University Fund 34

SpeedType is always oneSpeedType is always one--toto--one relationshipone relationship•• Sometimes, the Upon University Fund 34 Sometimes, the Upon University Fund 34

SpeedType that is linked to the CUF Account SpeedType that is linked to the CUF Account acts as a “parent” and channels monies to a acts as a “parent” and channels monies to a different Fund 34 SpeedType that is known as a different Fund 34 SpeedType that is known as a “child” SpeedType.“child” SpeedType.–– For example, the Chemistry Department has a gift designated For example, the Chemistry Department has a gift designated

for “Chemistry Department Programs.” The chair allocates for “Chemistry Department Programs.” The chair allocates money from the Chemistry Department Programs “parent” money from the Chemistry Department Programs “parent” SpeedType to three “child” SpeedTypes: Biochemistry, SpeedType to three “child” SpeedTypes: Biochemistry, Organic Chemistry, and Physical Chemistry.Organic Chemistry, and Physical Chemistry.

IllustrationIllustration––Parent Parent & & Child SpeedTypesChild SpeedTypes

CUF Account

University Fund 34 SpeedType PARENT

CUF Gift Purpose CodeMust be compatible with

Fund 34 SpeedType EPC

CUF Gift Purpose Codemust be compatible withFund 34 SpeedTypeGift Purpose Code

Fund 34 SpeedTypeCHILD

Fund 34 SpeedTypeCHILD

Fund 34 SpeedTypeCHILD

Cash Transfers from the Fund 34 PARENT SpeedType to the Fund 34 CHILD SpeedType are monitored for compatible Gift Purpose Codes

Transfers Between Fund 34 Transfers Between Fund 34 Child SpeedTypes Child SpeedTypes

It is permissible to make transfers between Fund 34 It is permissible to make transfers between Fund 34 SpeedTypes, provided that the following conditions are SpeedTypes, provided that the following conditions are met:met:

•• Each Fund 34 SpeedType must have the same Gift Each Fund 34 SpeedType must have the same Gift Purpose CodePurpose Code–– This applies to BOTH cash transfers and expense corrections This applies to BOTH cash transfers and expense corrections –– The Finance System monitors Fund 34 transfers for Gift The Finance System monitors Fund 34 transfers for Gift

Purpose Code compatibilityPurpose Code compatibility•• ExceptionsExceptions

–– Require Campus Controller approvalRequire Campus Controller approval

Illustration Illustration -- Transfers Between Transfers Between Fund 34 Child SpeedTypes Fund 34 Child SpeedTypes

Fund 34 SpeedTypeCHILD 1 34 56780

Fund 34 SpeedTypeCHILD 1 34 67890

Fund 34 SpeedTypeCHILD 1 34 78900

Fund 34 SpeedType Gift Purpose Code

must be same for

cash transfers and expense corrections

Fund 34 SpeedType Gift Purpose Code

must be same for

cash transfers and expense corrections

Cash Transfers and Expense Corrections from one Fund 34 CHILD SpeedType to a different Fund 34 CHILD SpeedType are monitored for the same Gift Purpose Codes.

Spending Gift MoneySpending Gift MoneyAutomated Transfer ProcessAutomated Transfer Process

•• CUF will transfer funds, using a wire transfer, CUF will transfer funds, using a wire transfer, from CUF Account to University’s Fund 34 from CUF Account to University’s Fund 34 SpeedType based upon actual expenses SpeedType based upon actual expenses up to up to the amount availablethe amount available in CUF Accountin CUF Account

SpeedType 2 34 56789 spends $2,000

$2,000 is automatically transferred from the corresponding CUF Account to

SpeedType 2 34 56789

Fund 34 ParentFund 34 Parent--ChildChildAutomated Transfer ProcessAutomated Transfer Process

•• CUF will transfer funds, using a wire transfer, from CUF will transfer funds, using a wire transfer, from CUF Account to University’s Parent SpeedType CUF Account to University’s Parent SpeedType based upon actual expenses based upon actual expenses up to amount availableup to amount available

CUF Account$3,000 transferred automatically to University in response to deficit in the Parent SpeedType

Parent SpeedType 1 34 23452Parent SpeedType does a cash transfer of $1,000 to each of three child

SpeedTypes. Subsequent to the three cash transfers, the Parent SpeedType has a $3,000 deficit. This deficit triggers a $3,000 draw from linked the CUF Account.

Child SpeedType 1 34 56781$1,000

Child SpeedType 1 34 78945$1,000

Child SpeedType 1 34 09432$1,000

Transfer MechanicsTransfer Mechanics•• The amount of the transfer is calculated on The amount of the transfer is calculated on

Thursday evening based upon the expenses Thursday evening based upon the expenses recorded in the University’s SpeedType recorded in the University’s SpeedType

•• The wire transfers take place on theThe wire transfers take place on the–– 11stst, 2, 2ndnd, 3, 3rdrd Monday of each month, andMonday of each month, and–– Last working day of the monthLast working day of the month–– There may be some variance because of university There may be some variance because of university

holidays, bank holidays, etc.holidays, bank holidays, etc.–– The “wire transfer calendar” will be posted on the The “wire transfer calendar” will be posted on the

OUC web siteOUC web sitecontinuedcontinued

Transfer Mechanics Transfer Mechanics continuedcontinued

•• If there are insufficient funds in the CUF If there are insufficient funds in the CUF Account to cover the expenses incurred in the Account to cover the expenses incurred in the Fund 34 SpeedType, then the Fund 34 Fund 34 SpeedType, then the Fund 34 SpeedType will go into deficitSpeedType will go into deficit

Automated Transfer ExceptionsAutomated Transfer Exceptions

•• Transfers in excess of $500,000 will not be Transfers in excess of $500,000 will not be processed during the week requestedprocessed during the week requested–– Allow one week for the transfer to be executedAllow one week for the transfer to be executed

•• You don’t need to do any special processing or complete You don’t need to do any special processing or complete any specific paper work for a large transfer. You just need any specific paper work for a large transfer. You just need to be aware of the longer turnto be aware of the longer turn--around.around.

•• Transfers in amounts less than $100 will not be Transfers in amounts less than $100 will not be processed automatically on a weekly basisprocessed automatically on a weekly basis–– They will be transferred at monthThey will be transferred at month--endend

More ExceptionsMore ExceptionsManual Transfer ProcessManual Transfer Process

•• CUF Transfer Form is still required toCUF Transfer Form is still required to–– Liquidate an Endowment or QuasiLiquidate an Endowment or Quasi--EndowmentEndowment–– Transfer CUF Account Funds to a SpeedType that is Transfer CUF Account Funds to a SpeedType that is

not in Fund 34 not in Fund 34 •• Fund 50Fund 50 Loan FundLoan Fund•• Fund 71Fund 71 Capital Construction FundCapital Construction Fund

–– Correct errors in depositsCorrect errors in deposits–– When donor specifies certain criteria, such as When donor specifies certain criteria, such as

specific signatures to initiate and approve spendingspecific signatures to initiate and approve spending

JE Restrictions JE Restrictions -- 11The purpose of the Fund 34 JE Restrictions is to The purpose of the Fund 34 JE Restrictions is to

ensure that donor wishes are honored once the ensure that donor wishes are honored once the gift is in a University Fund 34 SpeedType gift is in a University Fund 34 SpeedType

•• Facilitated through a Gift Transaction JE in the Facilitated through a Gift Transaction JE in the Finance System Finance System –– Fund 34 JEFund 34 JE Header PageHeader Page has a has a Certification Certification

StatementStatement that attests to the appropriateness of the that attests to the appropriateness of the cash or expense transfer transactions being recorded cash or expense transfer transactions being recorded by the JEby the JE

–– JE’s involving Fund 34 transactions cannot be saved JE’s involving Fund 34 transactions cannot be saved until the Certification Statement is checkeduntil the Certification Statement is checked

continuedcontinued

Fund 34 JE Fund 34 JE –– Header PageHeader Page

JE Restrictions JE Restrictions -- 22

Fund 34 JE Fund 34 JE Lines PageLines Page performs edits as the JE performs edits as the JE is being builtis being built

•• examines both expenditure and cash transfer JE examines both expenditure and cash transfer JE transactionstransactions

•• looks at Gift Purpose Code compatibility between looks at Gift Purpose Code compatibility between the SpeedTypes involved in the JEthe SpeedTypes involved in the JE

•• populates the populates the Reference FieldReference Field on each JE line on each JE line with the offset SpeedTypewith the offset SpeedType and Gift Purpose and Gift Purpose CodeCode

Fund 34 JE Fund 34 JE –– Lines PageLines Page

JE Restrictions JE Restrictions -- 33

•• Gift Transaction JE limits the JE to two unique Gift Transaction JE limits the JE to two unique SpeedTypesSpeedTypes–– May have multiple lines, but can only involve two May have multiple lines, but can only involve two

SpeedTypesSpeedTypes•• If you want to build journals with more than two unique If you want to build journals with more than two unique

SpeedTypes, then you should use the regular JE pages.SpeedTypes, then you should use the regular JE pages.

•• Campus Controller approval is requiredCampus Controller approval is required when a Fund 34 when a Fund 34 JE impacts more than two SpeedTypesJE impacts more than two SpeedTypes..

•• Uploads and susbsytem feeds (including PETs) Uploads and susbsytem feeds (including PETs) are considered to be approvedare considered to be approved

CUF Good Practice Reminders for CUF Good Practice Reminders for Fiscal Managers and Additional ContactsFiscal Managers and Additional Contacts•• Always check the Gift Purpose Code before Always check the Gift Purpose Code before

making a purchase or preparing a Journal Entrymaking a purchase or preparing a Journal Entry•• Always check the available balance in CUF Always check the available balance in CUF

Account before initiating a purchase in the Account before initiating a purchase in the associated Fund 34 SpeedTypeassociated Fund 34 SpeedType–– Balance is found on Gift Attributes Page of the Balance is found on Gift Attributes Page of the

SpeedType component in Finance System SpeedType component in Finance System –– Balance is generally the available Balance is generally the available cashcash in the CU in the CU

AccountAccount–– Updated every ThursdayUpdated every Thursday

continued continued

CUF Good Practice Reminders CUF Good Practice Reminders Fiscal Fiscal Manager & Additional Contacts Manager & Additional Contacts continuedcontinued

–– Balance will say $0 ifBalance will say $0 if•• Status of CUF Account is InactiveStatus of CUF Account is Inactive•• Funding source of CUF Account consists of Funding source of CUF Account consists of

earnings from an endowment that was established earnings from an endowment that was established after 2/9/2005 and does NOT have a Fund after 2/9/2005 and does NOT have a Fund Agreement on file at CUFAgreement on file at CUF

•• Funding source of CUF Account consists of Funding source of CUF Account consists of earnings from an endowment that was established earnings from an endowment that was established after 2/9/2005, does have a Fund Agreement on after 2/9/2005, does have a Fund Agreement on file at CUF, but whose value falls below a file at CUF, but whose value falls below a minimum amount designated by the CUFminimum amount designated by the CUF

Direct to University (DTU) GiftsDirect to University (DTU) Gifts

•• Donor prefers to make the gift directly to the Donor prefers to make the gift directly to the University rather than to the CU FoundationUniversity rather than to the CU Foundation–– Gift instrument made payable to “University of Gift instrument made payable to “University of

Colorado”Colorado”

•• The next two slides will coverThe next two slides will cover–– Making a DTU deposit when a Fund 34 SpeedType Making a DTU deposit when a Fund 34 SpeedType

already existsalready exists–– Creating a new Fund 34 SpeedType to accept DTU Creating a new Fund 34 SpeedType to accept DTU

depositsdeposits

Making a DTU Deposit when a Making a DTU Deposit when a SpeedType Already ExistsSpeedType Already Exists

Organizational unit deposits check into gift clearing SpeedTypefor respective campus

http://www.cu.edu/policies/Fiscal/AlcoholPurchase-Provision-Gift-Clearing.pdf

Organizational unit sends the following to the Treasurer*:•Original donor letter, copy of cash receipt, Fund 34 SpeedType to receive the gift, any additional documentation relative to gift purpose

Treasurer verifies that Gift Purpose Code of the Fund 34 SpeedType is compatible with donor intent

Treasurer transfers gift out of clearing SpeedType and in to organizational unit’s Fund 34 SpeedType

* At HSC, send these to OGC.

Opening a New Fund 34Opening a New Fund 34SpeedType for DTU SpeedType for DTU

Organizational unit deposits gift instrument into campusgift clearing account* and completes Request to Set Up Gift Fund and/orUniversity SpeedType Form.

Organizational unit sends original donor letter and Gift Fund Set Up Request Form to campus accounting office.*

Campus accounting office reviews donor letter, determines correct EPC for new Fund 34 SpeedType, and processes request.

Treasurer transfers gift out of clearing SpeedType and in to organizational unit’s Fund 34 SpeedType.

* At HSC, send the gift instrument and donor documents to OGC.

MORE Good Practice Reminders for MORE Good Practice Reminders for Fiscal Managers and Additional ContactsFiscal Managers and Additional Contacts

•• Monitor all Fund 34 transactions by doing a Monitor all Fund 34 transactions by doing a prepre--purchase screening and a postpurchase screening and a post--statement reviewstatement review–– Ensure wishes of the donor are reflected in each and Ensure wishes of the donor are reflected in each and

every transactionevery transaction–– Make sure applicable rules & regulations, policies & Make sure applicable rules & regulations, policies &

procedures are being followedprocedures are being followed

•• Think of JE’s as being the “exception” Think of JE’s as being the “exception” rather than “the rule”rather than “the rule”

What About Alcohol?What About Alcohol?•• Alcohol is a supplemental designation on a Fund Alcohol is a supplemental designation on a Fund

34 SpeedType (Gift Purpose Code 2)34 SpeedType (Gift Purpose Code 2)–– For example, a SpeedType can be designated with a For example, a SpeedType can be designated with a

Gift Purpose Code of “M” (discretionary funds for Gift Purpose Code of “M” (discretionary funds for programmatic support of a campus, school, programmatic support of a campus, school, department or unit) and “Y” (entertainment, donor department or unit) and “Y” (entertainment, donor cultivation, personnel recruitment i.e., alcohol)cultivation, personnel recruitment i.e., alcohol)

–– Finance System will have a hard edit if you try to Finance System will have a hard edit if you try to transfer funds from a SpeedType that is not transfer funds from a SpeedType that is not designated for alcohol to a SpeedType that is designated for alcohol to a SpeedType that is designated for alcoholdesignated for alcohol

–– Finance System will give you a warning message if Finance System will give you a warning message if you try to transfer funds from a SpeedType you try to transfer funds from a SpeedType designated for alcohol to one that is notdesignated for alcohol to one that is not

Summary Summary -- 11

Gift Fund Management training is designed toGift Fund Management training is designed to•• Provide reasonable assurance that gift funds are being Provide reasonable assurance that gift funds are being

spent spent –– In a prudent manner, In a prudent manner, –– in compliance with all applicable rules, regulations, in compliance with all applicable rules, regulations,

policies, procedures, policies, procedures, –– and iand in accordance with donor wishesn accordance with donor wishes

continued continued

Summary Summary -- 22•• Introduce you to the following policies, Introduce you to the following policies,

processes, and system enhancements associated processes, and system enhancements associated with the projectwith the project–– OneOne--toto--One matching CUF Accounts One matching CUF Accounts –– University University

SpeedTypes as supported by the Gift Attributes SpeedTypes as supported by the Gift Attributes PagePage

–– Automated transfer processAutomated transfer process–– Restrictions on JEsRestrictions on JEs–– Fiscal role reviewFiscal role review

•• Questions????Questions????