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Quasi-Endowment Funds Policy


Effective Date: 
April 10, 2012

Last Updated:

Responsible University Officer:
  • Vice President for Business and Finance

Policy Owner:
  • Associate Vice President for Accounting and Business Services

Policy Contact:
Policy Contents

Policy Statement
Reason for Policy
Who Should Read this Policy
Policy Text
Procedures
Related Information
Definitions
Additional Contacts
Forms
Responsibilities
FAQ
Revision History
Appendices

POLICY STATEMENT

From time to time, the University may make an internal decision to designate certain otherwise unrestricted funds as “Quasi‐Endowment Funds.” A Quasi‐Endowment Fund functions in substantially the same manner as an Endowment Fund except that the terms of a Quasi‐Endowment Fund are established by the University rather than an external donor.

If the original source of a Quasi‐Endowment Fund is a Restricted Gift or other restricted fund, the Quasi‐Endowment Fund must retain the purpose and intent as specified by the donor or source of the original funds and the earnings thereon may be expended only for those purposes. For example, a donor may make a gift for scholarship which is not endowed; however, the University designates the funds to function as a Quasi-Endowment Fund whereby the earnings are expended for such scholarship.

The authority to establish a Quasi-Endowment Fund is limited to the Finance Committee of the Board of Trustees. See Authorization.    


REASON FOR POLICY

This Policy sets forth the standards for the establishment of a Quasi-Endowment Fund and the procedures for the accounting, reporting, and distribution of such funds.

WHO SHOULD READ THIS POLICY

Any employee who is responsible for the establishment, administration, or use of Quasi-Endowment Funds; the President, Vice Presidents, Vice Provosts, and Deans, as well as supervisors and Business Managers who supervise an employee with such responsibilities.


POLICY TEXT

In order to support the mission of the University, external donors provide certain gifts to the University, some of which contain no restrictions (i.e., Unrestricted Gifts) and some of which may only be used for a specific department, activity, or purpose (i.e., Temporarily Restricted Gifts). In some cases, external donors establish a fund whereby the donor stipulates, as a condition of the gift, that the principal be maintained for a specified period of time or until an event occurs, or that the principal be maintained in perpetuity, and only the earnings of the fund may be spent by the University (i.e., Permanently Restricted Gifts).

Both unrestricted and temporarily restricted gift funds may be designated as Quasi-Endowment Funds. However, if a Temporarily Restricted Gift or other restricted fund is designated as a Quasi-Endowment Fund, the donor-imposed restrictions or other restrictions applicable to the original funds will apply to the Quasi-Endowment Fund.

Once a fund has been designated as a Quasi-Endowment Fund, it will be invested in the University’s Endowment Investment Pool. Accordingly, only the fund’s earnings may be expended in accordance with the University’s Endowment Fund Investment Policy Statement; the principal may not be expended unless specifically authorized by the Board of Trustees.


PROCEDURES


RELATED INFORMATION

Type

Name

USF Policy on Quasi-Endowment Funds, Board of Trustees (adopted 12/10/09)
USF Endowment Fund Investment Policy Statement, Board of Trustees (02/95)
External  Uniform Law Commission

DEFINITIONS

Term

Definition

Quasi-Endowment Fund A fund designated by the Board of Trustees to function as an endowment.
FOAPAL The acronym representing each element of the University’s Charts of Accounts, i.e., Fund, Organization, Account, Program, Activity, and Location.

ADDITIONAL CONTACTS

Subject

Contact

Phone

Email/URL

Accounting for Endowments  Frank Wasilewski 415.422.6732  fmwasilewski@usfca.edu

FORMS

Form

Use

Location

(None)    

RESPONSIBILITIES

Department
  • Recommends amount and source of funding for Quasi-Endowment Fund.
  • Identifies any restrictions applicable to source of funds.
  • Obtains written approval of Business Manager or Dean, and the Provost.

Accounting and Business Services
  • Ensures that funds designated as Quasi-Endowment Funds are established in accordance with this Policy.
  • Ensures that all expenditures are made in accordance with the terms of the Quasi-Endowment Fund.

President and Vice President for Business and Finance
  • Approves recommendations to the Finance Committee of the Board of Trustees with respect to the establishment, alteration, or termination of a Quasi-Endowment Fund.

FREQUENTLY ASKED QUESTIONS

(None)

REVISION HISTORY

  •  04/10/2012 - Amended

APPENDICES

(None)