Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Notes & Samples
NOTE 22 – Donor Restricted Endowments
Sample (Illustrative, may not tie to exhibits)
The net appreciation (cumulative and unexpended) on donor-restricted endowments presented below is available for authorization and expenditure by Sample University. The university’s spending policy for endowments reflects an objective to distribute as much of the total return as is consistent with overall investment objectives while protecting the real value of the endowment corpus.
The target distribution will be between 4 and 7 percent of the moving average market value of the endowment fund over the preceding two years.
| Donor- Restricted Endowments |
Amounts of Net Appreciation* |
Reported in Net Position |
|---|---|---|
| True Endowments | $ 10,071,050.27 | Restricted for Expendable |
| Term Endowments | — | Restricted for Expendable |
| $ 10,071,050.27 | ||
| * There was a negative fair value adjustment totaling ($XX,XXX.xx) for fiscal 20CY or there was a positive fair value adjustment totaling $XX,XXX.xx for fiscal 20CY.
Term endowments are reporting $0 (zero dollars) for net appreciation due to the endowments being underwater for fiscal 20CY. |
||
Variances from prior year-end for expendable and nonexpendable balances:
| Endowment Funds | Increase/(Decrease) | Reason for Change |
|---|---|---|
| Expendable Balances | ||
| True Endowments | $ 1,500,000 | Fair value increase in portfolio |
| Term Endowments | (27,650) | Fair value decrease in energy stocks |
| Non-Expendable Balances | ||
| True Endowments | 2,000,000 | Donor gifts and bequests |
| Term Endowments | (50,000) | Term restrictions expired |