Endowment Services, Office of the Controller & Treasurer, University of Kentucky

Endowment Services
FREQUENTLY ASKED QUESTIONS

How do I set up a new endowment Fund in SAP or make changes to an existing account?

By completing an Endowment Fund Creation Request Form.

I don’t understand the monthly changes I see on my ledger sheet. Can someone explain the different account controls and why they change each month?

Please see the link for “Endowment G/L Account Definitions”. If further explanation is needed, please contact Sharon Klock or Susan Krauss in Endowment Services.

Can someone assist me with estimating spendable income for endowment-supported accounts?

Yes, please contact Sharon Klock or Kim Lush in Endowment Services. Also, see the following links on the Endowment Services' home page:

Is it true the spending rate and management fee has changed?

Yes, on January 11, 2005 the Investment Committee of the Board of Trustees voted to reduce the current endowment spending rate of 5% to 4.75% in fiscal year 2006 and to 4.5% in fiscal year 2007. The Committee also voted to reduce the current endowment management fee of 1% to .75% in fiscal year 2006 and to .50% in fiscal year 2007. This action was taken to protect the value and related purchasing power of the endowment due to lower expected returns, as required by KRS 273.520 to 273.590.

UK \| Office of the Treasurer \| Endowment Services
344 Peterson Service Building Lexington, KY 40506-0005		Phone: (859) 257-6465 Fax: (859) 257-4805