Endowment and Gift Accounting
Phone: (859) 257-7394
Fax: (859) 257-6236
In Endowment and Gift Accounting, we provide the University and its affiliated corporations with overall coordination of endowment accounting and financial reporting of endowed funds in accordance with the policies established by the University. We perform monthly endowment accounting, coordinate the establishment of new endowment funds in SAP, administer charitable trusts and gift annuities, coordinate the liquidation of donated securities, and provide endowment stewardship reporting.
|Endowment and Gift Accounting Director
|Endowment and Gift Accounting Manager
|Endowment and Gift Accountant Financial Analyst Senior
|Endowment and Gift Accountant Financial Analyst Associate
Advancement Fee Manual (PDF)
Endowment Manual (PDF)
FY 22-23 Spending Rate (PDF)
FY 23-24 Spending Rate (PDF)
FY 24-25 Spending Rate (PDF)
Common JV Transactions (PDF)
Cost Center Request Form (PDF)
Pledge Process Manual (PDF)
GL Hierarchy (PDF)
How do I contact Endowment and Gift Accounting if I have questions concerning endowments?
What are endowments?
Endowments are gifts from generous donors or grants from the Commonwealth of Kentucky that support the mission of the University through scholarships, professorships, basic research, or other purposes as defined by a formal agreement. The funds are invested in perpetuity in order to generate a reliable and steady stream of income for those goals.
What are the different endowment types?
- Quasi endowment (071* funds) – A fund established by the Board of Trustees with current unrestricted or restricted resources that are otherwise expendable. A quasi endowment fund may be liquidated and returned to operating funds for expenditure with approval of the Board of Trustees.
- Term endowment (072* funds) – A fund established by an external donor or other outside party with the requirement that the principal be held and invested until the passage of a specified period of time or the occurrence of a particular event.
- True endowment (070* funds) – An endowment fund established by an external donor or other outside party with the requirement that the principal be held and invested in perpetuity.
How are endowments invested?
Endowments are invested per the University’s Endowment Investment Policy.
What is the spending rate for this fiscal year and how is it calculated?
Refer to the FY 22-23 Spending Rate calculation.
Why is a management fee assessed on endowments?
An annual management fee is assessed on the current market value of the endowment to support the administrative costs associated with carrying out the purpose of each endowment. This fee is processed monthly.
Where can I find information regarding receiving and recording gifts or endowments?
Refer to BPM E-22-1 Policies and Procedures for Soliciting, Receiving, Recording, and Acknowledging Gifts.
Where can I find information regarding the processing of donor pledges?
Refer to BPM E-22-2 Pledge Process Manual.
How do I establish a new endowment fund in SAP or make changes to an existing account?
How do I run the endowment BW Reports?
Refer to the instructions for running the endowment reports in BW.
In what situations would a new endowment fund need to be created after the original fund was established and how should this transition be handled?
Refer to the Special Endowment Form Change Hints for examples and directions.
SAP information FAQs
What are some of the common SAP transaction codes used with endowments?
- FM5M – Index of Funds – Used to view the data elements of multiple funds
- FM5S – Display Fund – Used to view the attributes of the endowment fund
- FMRP_RFFMEP1AX – All Postings – Used to view line items posted to the endowment fund
- FMSC – Display Funds Center in FM Area – Used to view the attributes of the cost center
- GR55 – Execute Report Group – Used to view budget for cost center
- KSB1 – Cost Centers Actual Line Items – Used to view revenue and expenses post to the cost center
- ZGL_TRBR1_CUM – Endowment Trial Balance – Used to view the cumulative screen of the endowment fund
- ZGL_TRBR1_FUND – GL Trial Balance by Fund – Used to view current fiscal year trial balance of the endowment fund
Is there a listing of all GL codes associated with endowments?
The GL Hierarchy contains all endowment related GL codes categorized by contributed value and market value.
What if I need assistance with a GL code?
Spending Distribution FAQs
How do I determine the amount of spending distribution that is available to spend in the fund?
Open transaction ZGL_TRBR1_CUM – Endowment Trial Balance. Input the current fiscal year, reporting period and endowment fund number and then click execute. At the bottom of the Trial Balance screen, look for the credit amount on the line for “Spending Distribution Reinvested Available to Spend”. An amount up to this figure can be transferred via journal voucher to the spending distribution cost center associated with the endowment. See the listing of Common JV Transactions for the appropriate general ledger account combination to be used on the journal voucher.
How do I determine the spending distribution percentages that should be associated with the fund and cost center?
The percentages should be based on the requirements of the organizational unit to meet the terms of the endowment agreement and to plan for future endowment spending goals. Changes to these percentages can be made by submitting an Endowment Create and Change Form.
Why do we have to wait a year after receiving the endowment’s first deposit before the spending distribution can be utilized?
The waiting period ensures that the endowment has had time to receive investment earnings that will build a spending reserve. This policy takes into account potential market fluctuations so that adequate spending distribution income will be available to better meet the donor’s objectives.
Where can I find my endowment spending distribution percentages in SAP?
Open Transaction Code FM5S: Display Fund. Enter your endowment fund number and select Add UK Endowment Fields. The distribution percentage is at the bottom of the screen and will list the percentage of the spending distribution that is being distributed to the cost center and/or to the fund.
How do I obtain historical endowment return information?
Refer to the Historical Endowment Returns document.
How do I obtain historical endowment value information?
Refer to the Historical Endowment Values Bar Graph.