SCT Banner Finance Endowment Management Training Workbook January 2005 Release 7.0

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1 SCT HIGHER EDUCATION SCT Banner Finance Endowment Management Training Workbook January 2005 Release 7.0

2 Confidential Business Information This documentation is proprietary information of SunGard SCT and is not to be copied, reproduced, lent or disposed of, nor used for any purpose other than that for which it is specifically provided without the written permission of SunGard SCT. Prepared By: SunGard SCT 4 Country View Road Malvern, Pennsylvania United States of America SunGard All rights reserved. The unauthorized possession, use, reproduction, distribution, display or disclosure of this material or the information contained herein is prohibited. In preparing and providing this publication, SunGard SCT is not rendering legal, accounting, or other similar professional services. SunGard SCT makes no claims that an institution's use of this publication or the software for which it is provided will insure compliance with applicable federal or state laws, rules, or regulations. Each organization should seek legal, accounting and other similar professional services from competent providers of the organization s own choosing. SunGard, the SunGard logo, SCT, and Banner, Campus Pipeline, Luminis, PowerCAMPUS, SCT fsaatlas, SCT Matrix, SCT Plus, SCT OnSite and SCT PocketRecruiter are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

3 Table of Contents Section A: Introduction...1 Overview...1 Endowment Management Overview...2 Process Introduction...3 Section B: Set Up...4 Overview...4 Forms that Control Endowment Management...5 Setting Up Financial Managers...6 Creating an Endowment Fund...9 Creating a Spendable Income Fund...13 Creating an Earned Income Fund...16 Creating a Pooled Investment Fund...18 Defining Account Codes...20 Defining the Investment Pool...25 Linking the Endowment Fund to the Pool...32 Self Check...36 Answer Key for Self Check...37 Section C: Day-to-Day Operations...38 Overview...38 Creating a Journal Voucher to Receive an Endowed Gift...39 Creating a Journal Voucher to Transfer the Gift to the Investment Manager...44 Using the Endowment Process Control Form...47 Running the Unitization Process...51 Setting a Spendable Rate per Unit...58 Running the Distribution of Spendable Income Process...61 Running the Distribution of Gains/Losses Process...67 Running the Endowment Management Reports...75 Self Check...81 Answer Key...82 Section D: Reference...83 Overview...83 Set Up Forms and Where Used...84 Day-to-Day Forms and Set Up Needed...85 Forms Job Aid...86

4 Section A: Introduction Overview Workbook goal This course is intended to teach you to identify key forms, tables, and reports in the SCT Banner Endowment Management module. In addition, you will learn to follow key Endowment Management processes and query Endowment Management tables. This course will provide you with the knowledge to link endowment funds to spendable income funds record donor-imposed restrictions on spendable income define a pool fund maintain the balance of the principal funds invested in the pool (which may be comprised of several different endowment funds) use the earned income fund to record the net changes in the value of this pooled principal amount. The workbook is divided into four sections: Introduction Set Up Day-to-Day Operations Reference Intended audience Finance Office Administrators and Staff. Section contents Overview...1 Endowment Management Overview...2 Process Introduction...3 Page 1

5 Section A: Introduction Endowment Management Overview Introduction The Endowment Management module (EMS) in the SCT Banner Finance System enables you to create and maintain unitized pools of endowment or similar funds. These funds consist of monetary gifts received by an institution and/or internal transfers of resources within an institution. The Endowment Management module is designed to accept gift data from the SCT Banner Advancement System. It is also designed to accommodate data from legacy systems as well as existing SCT Banner data. Types of funds The four types of funds that are suggested for the management of your endowments are the endowment fund spendable income fund earned income fund pool fund. Page 2

6 Section A: Introduction Process Introduction About the process The Finance Office can link endowment funds to spendable income funds record donor-imposed restriction and changes in values of pooled principal amounts define pool funds maintain balances of funds invested. Flow diagram This diagram highlights the processes used in endowment management. What happens The stages of the process are described in this table. Stage Description 1 Finance staff links endowment funds to spendable income funds. 2 Finance staff records donor-imposed restrictions. 3 Finance staff defines a pool fund. 4 Endowment Management staff maintains balance of principal funds invested. 5 Endowment Management staff records changes in the value of the pooled principal amount. Page 3

7 Section B: Set Up Overview Purpose The purpose of this section is to outline the set-up process and detail the procedures to set up your SCT Banner system to handle Endowment Management at your institution. Intended audience Finance Office Administrators. Objectives At the end of this section, you will be able to create funds that support Endowment Management define account codes that support Endowment Management link Endowment funds. Prerequisites To complete this section, you should have completed the SCT Banner Education Practices computer-based training (CBT) tutorial SCT Banner 7 Fundamentals, or have equivalent experience navigating in the SCT Banner System completed the Finance Overview training workbook administrative rights to create the rules and set the validation codes in SCT Banner. Section contents Overview...4 Forms that Control Endowment Management...5 Setting Up Financial Managers...6 Creating an Endowment Fund...9 Creating a Spendable Income Fund...13 Creating an Earned Income Fund...16 Creating a Pooled Investment Fund...18 Defining Account Codes...20 Defining the Investment Pool...25 Linking the Endowment Fund to the Pool...32 Self Check...36 Answer Key for Self Check...37 Page 4

8 Section B: Set Up Forms that Control Endowment Management SCT Banner forms This is a list of SCT Banner forms that control Endowment Management. SCT Banner Form Description FTMFMGR Financial Manager Maintenance Form FTMFUND Fund Code Maintenance Form FTMACCT Account Code Maintenance Form FNMPOOL Pool Code Maintenance Form FNMENDW Endowment Fund Definition Form Page 5

9 Section B: Set Up Setting Up Financial Managers Introduction Financial Managers are optional for Endowment Management. The Financial Manager Maintenance Form (FTMFMGR) enables you to enter financial managers into the system. Warning: The persons you identify as financial managers are added to the Identification Table (SPRIDEN) and the Address Table (SPRADDR). These tables are shared among all SCT Banner systems. All existing IDs should be searched prior to creating a new financial manager ID. Especially if you are using SCT Banner Human Resources, which will make it highly likely that the person you are trying to add as a financial manager already has been assigned an ID number. FTMFMGR can also be used to identify persons who are already on file (e.g., employees of the institution) as financial managers. However, entries on FTMFMGR do not establish budgetary responsibility for grants, funds, and organizations. Once financial managers have been created on FTMFMGR, they need to be assigned to the funds or organizations, which they are responsible for on FTMFUND or FTMORGN. Note: Use FTMFMGR to enter only people, not non-persons, into the system. To view a list of existing managers, click the Search icon next to the Financial Manager field. This accesses the Entity Name/ID Search Form (FTIIDEN). Follow the steps to complete the process. Note: Searching all existing person records is very strongly recommended. If you are using Object: Access views for the reporting of budgetary responsibility, you must link this financial manager to a fund or organization on FTMFUND or FTMORGN. 1 Access the Financial Manager Maintenance Form (FTMFMGR). 2 Click the Search icon to access FTIIDEN. 3 Query on any part of the name. Note: If a person exists in the system, you can drag it back into FTMFMGR by doubleclicking on it. 4 Click the Exit icon if no selection has been made. Page 6

10 Section B: Set Up Setting Up Financial Managers (Continued) SCT Banner form The Financial Manager Maintenance Form (FTMFMGR) is used to establish the financial managers responsible for investing endowed funds. Follow these steps to complete the process. 1 Access the Financial Manager Maintenance Form (FTMFMGR). 2 Enter [your last name] followed by [your first name], up to eight characters in the Financial Manager field. Result: The screen will change to allow you to enter more information for the financial manager such as name, address, city, state, zip, social security number, phone number and address. 3 Enter [your last name] in the Last name field. 4 Enter your [first name] in the First name field. 5 Enter [your middle name] in the Middle name field (optional). 6 Enter a social security number (this should be fictional for this exercise) in the SSN/SIN/TIN field. Page 7

11 Section B: Set Up Setting Up Financial Managers (Continued), continued 7 Click the Save icon. 8 Click the Yes button. 9 Click the OK button. Result: You are returned to the Financial Maintenance Form (FTMFMGR). 10 Enter Manager as the manager s job title in the Title field. 11 Double-click in the Name Type field, and select a Name Type. 12 Enter DD-MON-YY in the Effective Date field. Note: For this exercise, select a date a week prior to today s date. This field is automatically populated with the system date. Any date format may be used, such as DDMMYY or DD/MM/YY. 13 Double-click in the Chart of Accounts field, and select B. 14 Double-click in the Assigned Organization field, and select 11005, which is the Department of History. (optional) Note: The Assigned Organization field is not necessarily the organization code for which the financial manager is responsible. 15 Double-click on the Assigned Location field and select the location code. (optional) Note: Codes used in both the Assigned Organization and the Assigned Location field must be created prior to entering the code. 16 Double-click on the Default Address Type field, and select MA for Mailing. 17 Enter 1 in the Sequence Number field. Notes: As you add addresses, you must add sequence numbers. Sequence numbers must be unique within an address type. The address type and sequence number may be entered here but it may not already exist on the address table. You may perform a Next Block and add addresses if needed, but you should always verify that any default address type/sequence number combination that you enter as a default actually exists for this person. 18 Click the Save icon. 19 Click the Exit icon. Page 8

12 Section B: Set Up Creating an Endowment Fund Introduction The Fund Code Maintenance Form (FTMFUND) enables you to establish fund codes for a specific chart of accounts. A fund code identifies a self-balancing set of accounts. This is the form you would use to set up your endowment funds. Recommendation: SunGard SCT generally recommends the establishment of one fund code for each individual endowment. We also recommend adopting a numbering system for your funds that will enable you to easily determine the relationship between an endowed fund and its spendable income fund. Example: If you assign to an endowed fund, then you might want to assign fund code to the associated spendable income fund. Note: The endowment funds have an internal fund type of 50, 60, or 70, while spendable income funds would often belong in the restricted group, internal fund type 20. If you plan to record realized gains and losses, unrealized gains and losses, or spending formula variances to operating ledger accounts (i.e., revenue), you must also enter values in the Defaults Organization and Defaults Program fields in order for the automatic distribution of these amounts to post properly. Use the Endowment Fund Definition Form (FNMENDW) to define characteristics of an endowed fund. Information entered on FNMENDW enhances information entered on FTMFUND. You can also use FNMENDW to link user-defined codes to an endowed fund. FTMFUND is used to create endowment funds, spendable income funds, earned income funds, and pooled investment funds. Page 9

13 Section B: Set Up Creating an Endowment Fund (Continued) SCT Banner form The Fund Code Maintenance Form (FTMFUND) is used to set up an Endowment fund. Follow these steps to complete the process. 1 Access the Fund Code Maintenance Form (FTMFUND). 2 Enter B in the Chart of Accounts field. 3 Enter 6E followed by [your two-character initials] in the Fund field. 4 Enter [your first name] followed by Endowed Fund in the Title field. 5 Enter DD-MON-YY in the Effective Date field. Note: Make sure that this date is equal to or later than the effective date of the financial manager you created in the previous lesson. 6 Double-click in the Fund Type field. 7 Select 61, the fund type for Endowment. 8 Double-click in the Predecessor Fund field. 9 Enter Query and tab to the Data Entry field when the list appears. 10 Enter N in the Data Entry field. 11 Execute Query and select a predecessor fund. 12 Enter the manager code entered in the previous exercise in the Financial Manager field. Page 10

14 Section B: Set Up Creating an Endowment Fund (Continued), continued 13 Select bank code A1in the Bank field. Note: A bank code is required when running the Alumni to Finance Feed Process (ADPFEED). If you do not set up a bank here, you will need to default the bank from the feed rule code or enter it manually on transactions. 14 Select a code in the Cash Receipt Bank Code field. Notes: This is optional and may be used in addition to, or in lieu of, the Bank. Use of this field requires that edit 2803 be placed on any rule code that needs to select it. 15 Select Permanently Restricted from the drop-down list in the Restriction Indicator field. The Restriction Indicator field is use to determine the fund/account combination you wish to report on your FASB117 reports. Possible values for the Restriction Indicator field include: T for Temporarily Restricted U for Unrestricted P for Permanently Restricted (endowment corpus) Notes: If this field is grayed out, select Fund in the Multiple Fund Balance Indicator field and then make your selection for the Restriction Indicator. If you are using multiple fund balances, the restriction indicator on FTMFBAL takes precedence over this. 16 Double-click in the Defaults Organization field, and select Department of History. 17 Double-click in the Defaults Program field, and select 40 Academic Support. 18 Click the Save icon. Note: Do not exit the form. Page 11

15 Section B: Set Up Creating an Endowment Fund (Continued) Follow the steps to set up another fund. 1 Perform an Insert Record function. 2 Perform a Duplicate Record function. 3 Enter 6E followed by [your two-character initials], followed by the numeral 2 in the Fund field. 4 Enter [Your Name] s Endowed Fund No. 2 in the Title field. 5 Review the information. 6 Click the Save icon. 7 Click the Exit icon. Page 12

16 Section B: Set Up Creating a Spendable Income Fund Introduction The spendable income fund is considered to be the mirror fund for the endowment fund previously created. The endowment spending distribution process will automatically update this fund with a record of spendable income derived from the investment of gifts recorded in the endowment fund. You can link endowment funds to spendable income funds and record donor-imposed restrictions on the spendable income. Within this fund, you would also record the expenditure of this income or the transfer of this income to other funds. However, these transactions are not part of the Endowment Management processes. Note: Some donors may require that income be reinvested for a certain period. In this case a spendable fund would not need to be created. SCT Banner form The Fund Code Maintenance Form (FTMFUND) is used to create spendable funds. Page 13

17 Section B: Set Up Creating a Spendable Income Fund (Continued) Follow the steps to complete the process. 1 Access the Fund Code Maintenance Form (FTMFUND). 2 Enter B in the Chart of Accounts field. 3 Enter 2S followed by [your two-character initials] in the Fund field. Note: It is recommended that the naming convention for this fund be associated with the corresponding endowment fund. 4 Enter [Your Name] s Spendable Income Fund in the Title field. 5 Enter DD-MON-YY in the Effective Date field. Note: Make sure the date is PRIOR to today s date and falls within the effective period of the financial manager you previously created. 6 Enter the fund type 21 (Restricted) in the Fund Type field. 7 Select a predecessor fund in the Predecessor Fund field. 8 Enter the code for the financial manager responsible for the spendable fund in the Financial Manager field. 9 Double-click in the Bank field and select a code. 10 Double-click in the Cash Receipt Bank Code field and select a code. 11 Click the pull-down list in the Restriction Indicator field, and select Temporarily Restricted or Unrestricted. Note: If this field is grayed out, select Fund in the Multiple Fund Balance Indicator field and make your selection for the Restriction Indicator. 12 Review the information. 13 Click the Save icon. Note: Do not exit the form. Page 14

18 Section B: Set Up Creating a Spendable Income Fund (Continued) Follow the steps to complete the process. 1 Perform an Insert Record function. 2 Perform a Duplicate Record function. 3 Enter 2S followed by [your two-character initials], followed by the numeral 2 in the Fund field. 4 Enter [Your Name] s Spendable Income Fund No. 2 in the Title field. 5 Review the information. 6 Click the Save icon. 7 Click the Exit icon. Page 15

19 Section B: Set Up Creating an Earned Income Fund Introduction The earned income fund is intended to record the net changes in value (the earned income) derived from your investment of a pool of endowed funds. Unlike the preceding two funds, which generally correspond to individual endowments, the earned income fund will reflect the earnings for all the individual endowments that have been pooled for investment. The four types of earning recorded in this fund are: 1) spendable income 2) realized gains/losses 3) unrealized gains/losses 4) variance from spending formula These earnings are not recorded as revenue in this fund. They will be distributed as revenue to either the original endowment fund or the spendable income fund. In this fund, we record (for the purposes of this exercise, as a liability) the amount due to the endowments or their associated spendable income funds from investment earnings. SCT Banner form The Fund Code Maintenance Form (FTMFUND) is used to create an earned income fund. The earned income fund will be used to record the earnings of the investment pool as deferred revenue. Page 16

20 Section B: Set Up Creating an Earned Income Fund (Continued) Follow the steps to complete the process. 1 Access the Fund Code Maintenance Form (FTMFUND). 2 Enter B in the Chart of Accounts field. 3 Enter 6I followed by [your initials] in the Fund field. 4 Enter [Your Name] s Earned Income Fund in the Title field. 5 Enter DD-MON-YY in the Effective Date field. 6 Enter 61 (Endowment) in the Fund Type field. 7 Double-click in the Predecessor Fund field and select a predecessor fund that is nondata enterable and has the fund type you selected in step 6. 8 Enter [the financial manager code from Lesson 1] in the Financial Manager field. 9 Double-click in the Bank field and select bank code A1. 10 Double-click in the Cash Receipt Bank Code field and select a code. 11 Click the drop-down list in the Restriction Indicator field, and select Unrestricted. Note: If this field is grayed out, select Fund in the Multiple Fund Balance Indicator field and then make your selection for the Restriction Indicator. 12 Review the information. 13 Click the Save icon. 14 Click the Exit icon. Page 17

21 Section B: Set Up Creating a Pooled Investment Fund Introduction As with the earned income fund, the pool fund is used to record the aggregate of the endowments invested in a pool. Just as the earned income fund records the aggregated earnings, the pool fund records the aggregated value of the original endowments. This is the Pool where individual endowment funds own shares, or units. You will transfer a gift receipt from the bank fund to this fund for investment. You will periodically designate a market value for the shares in this pool, and on the basis of that value, distribute spendable income, realized gains and losses. Most institutions choose to use the earned income fund created in the previous exercise as the pooled investment fund also. SCT Banner form The Fund Code Maintenance Form (FTMFUND) is used to create a pooled investment. Page 18

22 Section B: Set Up Creating a Pooled Investment Fund (Continued) Follow these steps to complete the process. 1 Access the Fund Code Maintenance Form (FTMFUND). 2 Enter B in the Chart of Accounts field. 3 Enter 6P followed by your initials in the Fund field. 4 Enter the [Your Name] s Pool Fund in the Title field. 5 Enter DD-MON-YY in the Effective Date field. 6 Enter 61 (Endowment) In the Fund Type field. 7 Double-click in the Predecessor Fund field and select a predecessor fund that is nondata enterable and has the fund type you selected in step 6. 8 Enter [the financial manager code from Lesson 1] in the Financial Manager field. 9 Double-click in the Bank field and select bank code A1. 10 Double-click in the Cash Receipt Bank Code field and select a code. 11 Click the drop-down list in the Restriction Indicator field, and select Permanently Restricted. Note: If this field is grayed out, select Fund in the Multiple Fund Balance Indicator field and then make your selection for the Restriction Indicator. 12 Review the information. 13 Click the Save icon. 14 Click the Exit icon. Page 19

23 Section B: Set Up Defining Account Codes Introduction There are several types of accounts employed by the Endowment Management processes. Gift Income (Revenue, Class U) Realized gains/losses (Revenue) Unrealized gains/losses (Revenue) Spendable income (Revenue) Variance in spending formula (Revenue) Pooled Investments (Asset) Deferred Revenue (Liability) SCT Banner form If you want to unitize additions and deductions to an account, you must ensure that the Account type on the Account Code Maintenance Form (FTMACCT) matches the Gift Account type on the Pool Code Maintenance Form (FNMPOOL). Page 20

24 Section B: Set Up Defining Account Codes (Continued) Follow these steps to complete the process. Note: This would normally be a revenue type account. You may use more than 1 account as long as all accounts are marked as Account Class U. 1 Access the Account Code Maintenance Form (FTMACCT). 2 Enter B in the Chart of Accounts field. 3 Enter 5310 followed by [your initials] in the Account field. 4 Enter [Your Name] s Gift Income in the Account Title field. 5 Enter DD-MON-YY in the Effective Date field. Note: The date should be on or before the effective date you assigned to the funds you created previously. 6 Enter 5300 (Gifts Received) in the Predecessor Account field. 7 Enter 53 (Gifts Received) in the Account Type field. 8 Enter U (Unitization Account) in the Account Class field. 9 Enter C (credit) in the Normal Balance field. 10 Click the Save icon. Follow these steps to set up a Realized Gain/Loss account code. Note: This would normally be a revenue type account. 1 Perform Rollback to clear the just saved entries. 2 Enter B in the Chart of Accounts field. 3 Enter 5620 followed by [your initials] in the Account field. 4 Enter [Your Name] s Realized Gain/Loss in the Account Title field. 5 Enter DD-MON-YY in the Effective Date field. Note: The date should be on or before the effective date you assigned to the funds you created previously. 6 Enter 5600 (Endowment Income) in the Predecessor Account field. 7 Enter 56 (Endowment Income) in the Account Type field. 8 Enter C (credit) in the Normal Balance field. 9 Click the Save icon. Page 21

25 Section B: Set Up Defining Account Codes (Continued) Follow these steps to set up an Unrealized Gain/Loss account code. Note: This would normally be a revenue type account. 1 Since this account is much like the last, simply perform Record Insert and Record Duplicate functions. Notes: If your last Account code is not showing Enter and Execute Query to retrieve it. The Chart code stays the same. 2 Enter 5625 followed by [your initials] in the Account field. 3 Enter [Your Name] s Unrealized Gain/Loss in the Account Title field. Note: The Effective Date, Predecessor Account and Account Type are the same as on your last entry. 4 Enter C (credit) in the Normal Balance field. 5 Click the Save icon. Follow these steps to set up a Spendable Income account code. Note: This would normally be a revenue type account. 1 Since this account is much like the last, simply perform Record Insert and Record Duplicate. Notes: If your last Account code is not showing Enter and Execute Query to retrieve it. The Chart code stays the same. 2 Enter 5630 followed by [your initials] in the Account field. 3 Enter [Your Name] s Spendable Endowment Income in the Account Title field. Notes: The Effective Date, Predecessor Account and Account Type are the same as on your last entry. 4 Enter C (credit) in the Normal Balance field. 5 Click the Save icon. Page 22

26 Section B: Set Up Defining Account Codes (Continued) Follow these steps to set up a Variance from Spending Formula account code. Note: This would normally be a revenue type account. 1 This account is also much like the last; simply perform Record Insert and Record Duplicate. Notes: If your last Account code is not showing Enter and Execute Query to retrieve it. The Chart code stays the same. 2 Enter 5635 followed by [your initials] in the Account field. 3 Enter [Your Name] s Variance from Formula in the Account Title field. Note: The Effective Date, Predecessor Account and Account Type are the same as on your last entry. 4 Enter C (credit) in the Normal Balance field. 5 Click the Save icon. Follow these steps to set up a Pooled Investment account code as an asset type account. Note: This is an Asset account so you may wish to start from a blank page (perform a Rollback function) or just make modification to the last account you created (perform an Insert Record and Duplicate Record function). 1 Enter B in the Chart of Accounts field. 2 Enter 1296 in the Account field followed by [Your Name] s Pooled Investments in the Account Title field. 3 Enter DD-MON-YY in the Effective Date field. Note: The date should be on or before the effective date you assigned to the funds you created previously. 4 Enter 1200 (Investments) in the Predecessor Account field. 5 Enter 12 (Investments) in the Account Type field. Note: The Normal Balance for asset codes is D for debit. 6 Click the Save icon. Page 23

27 Section B: Set Up Defining Account Codes (Continued) Follow these steps to set up a Deferred Investment Income account code as a liability type account. Note: This is a Liability account so you may wish to start from a blank page (perform a Rollback function) or just make modification to the last account you created (perform an Insert Record and Duplicate Record function). 1 Enter B in the Chart of Accounts field. 2 Enter 2652 in the Account field followed by [Your Name] s Deferred Investment Income in the Account Title field. 3 Enter DD-MON-YY in the Effective Date field. Notes: The date should be on or before the effective date you assigned to the funds you created previously. 4 Leave the Predecessor Account field blank. 5 Enter 23 for the Account Type. Note: The Normal Balance for asset codes is C for credit. 6 Click the Save icon. 7 Click the Exit icon. Page 24

28 Section B: Set Up Defining the Investment Pool Introduction You have already defined a Pool fund for recording the assets invested. Here, you will define the pool. This will be the code that will link all the individual endowment funds that own a piece of your pool fund. The market values for units and spendable income rates are defined for the pool as a whole. Each endowment fund has a share in this pool that is calculated based upon its asset contribution to the pool and the market value you ve assigned to the pool units. The endowment fund will own as many units of this pool as its individual contributions to the pool can afford. Linking individual endowments Linking the individual endowments to your pool will come next. Here, on the Pool Code Maintenance Form (FNMPOOL), we will link each of the four categories of earning from the pool to the earned income fund that you defined previously. We will also link each of these categories of earning to the revenue accounts where we want this income booked in the respective endowment funds. These four categories of earning are: 1) spendable income 2) realized gains/losses 3) unrealized gains/losses 4) variance from spending formula Page 25

29 Section B: Set Up Defining the Investment Pool (Continued) SCT Banner form The Pool Code Maintenance Form (FNMPOOL) is used to define the pool of invested funds. Follow the steps to complete the process. 1 Access the Pool Code Maintenance Form (FNMPOOL). 2 Enter B in the Chart of Accounts field. 3 Enter [your two-character initials] in the Pool field. 4 Enter a [name for the pool] in the Title field. 5 Enter DD-MON-YY in the Effective Date field. Note: This date should be prior to today s date. 6 Double-click in the Gift Account Type field, and select 53 Gifts Received. Note: The internal account type must be 50. The account type entered here must also match the account type on your gift revenue account, or unitization will not occur. 7 Click on the drop-down list in the Frequency of Unitization field, and select Monthly. Note: The Frequency of Unitization field is used to select the frequency with which you want to unitize endowed funds. 8 Perform a Next Block function Page 26

30 Section B: Set Up Defining the Investment Pool (Continued) SCT Banner form Use the Distribution of Spendable Income window to enter FOAPAL elements that identify where to debit and credit spendable income. Page 27

31 Section B: Set Up Defining the Investment Pool (Continued) Follow these steps to complete the process. 1 Select Distribution of Spendable Income from the Options menu. 2 Click on the drop-down list to in the Frequency of distribution field, and select Monthly. Note: This will determine the frequency with which you want to distribute spendable income. 3 Enter B in the Chart of Accounts to Debit field. 4 Enter 6I followed by [your two-character initials] in the Fund field. Note: This is the earned income fund you created previously. 5 Enter 2652 followed by [your two-character initials] in the Account field. Note: This is the deferred revenue account that was defined previously. 6 Enter B in the Chart of Accounts to Credit field. 7 Enter 5630 followed by [your two-character initials] in the Account to Credit field. Note: This is the spendable income account that was defined previously. 8 Perform a Next Block function Page 28

32 Section B: Set Up Defining the Investment Pool (Continued) SCT Banner form Use the Distribution of Realized Gains and Losses window to enter FOAPAL elements that identify where to debit and credit realized gains and losses. Follow these steps to complete the process. 1 Select Distribution of Realized Gains and Losses from the Options menu. 2 Click on the drop-down list to in the Frequency of Distribution field, and select Monthly. 3 Enter B in the Chart of Accounts to Debit field. 4 Enter 6I followed by [your two-character initials] in the Fund field. 5 Enter 2652 followed by [your two-character initials] in the Account field. 6 Enter 5620 followed by [your two-character initials] in the Account to Credit field. Note: This is the Realized Gains/Losses account that was defined previously. 7 Perform a Next Block function Page 29

33 Section B: Set Up Defining the Investment Pool (Continued) SCT Banner form Use the Distribution of Unrealized Gains and Losses window to enter FOAPAL elements that identify where to debit and credit unrealized gains and losses. Note: This distribution is optional. Many institutions opt not to distribute unrealized gains and losses, and instead make off-the-books adjustments to their annual financial statements to reflect market value. Follow these steps to complete the process. 1 Select Distribution of Unrealized Gains and Losses from the Options menu. 2 Click on the drop-down list to in the Frequency of distribution field and select Monthly. 3 Enter B in the Chart of Accounts to Debit field. 4 Enter 6I followed by [your two-character initials] in the Fund field. 5 Enter 2652 followed by [your two-character initials] in the Account field. 6 Enter 5625 followed by [your two-character initials] in the Account to Credit field. Note: This is the Unrealized Gains/Losses account that was defined previously. 7 Perform a Next Block function Page 30

34 Section B: Set Up Defining the Investment Pool (Continued) SCT Banner form Use the Distribution of Spending Formula Variances window to enter FOAPAL elements that identify where to debit for spending formula variance. The spending formula variance represents the difference between income earned by pooled investments and income distributed to the spendable funds. Follow these steps to complete the process. 1 Select Distribution of Spending Formula Variances from the Options menu. 2 Select Monthly from the Frequency of Distribution menu. 3 Enter B in the Chart of Accounts to Debit field. 4 Enter 6I followed by [your two-character initials] in the Fund field. 5 Enter 2652 followed by [your two-character initials] in the Account field. 6 Enter 5635 followed by [your two-character initials] in the Account to Credit field. Note: This is the Distribution of Spending Formula Variances account that was defined previously. 7 Review the information. 8 Click the Save icon. 9 Click the Exit icon. Page 31

35 Section B: Set Up Linking the Endowment Fund to the Pool Introduction As mentioned in the preceding topic, the pool you have defined will be composed of the assets of several different endowments. On the Endowment Fund Definition Form (FNMENDW), you create the link between your endowment funds and the pool. Remember that any number of endowments can be linked to the pool in this way. Another function of this form is to establish the link between the endowment and its spendable income fund. In the last topic, you established which revenue accounts would be used for spendable income, realized gains, etc. Revenue from realized gains/losses, unrealized gains/losses, and variance from spending formula are normally posted to the endowment fund itself. However, spendable income revenue is generally posted to the spendable income fund. If all income is to be reinvested, you may enter the endowment fund in the spendable fund field (i.e. link the endowment fund to itself). If you choose to return spendable income to the endowment corpus fund, you probably will want to credit an account that is identified as account class U so that additional shares will be purchased. SCT Banner form Page 32

36 Section B: Set Up Linking the Endowment Fund to the Pool (Continued) Follow these steps to define the characteristics of the endowed fund and how to link the endowed funds to the investment pool. Note: A fund must be entered on this form in order for unitization to occur. 1 Access the Endowment Fund Definition Form (FNMENDW). 2 Enter B in the Chart of Accounts field. 3 Enter 6E followed by [your two-character initials] in the Principal Fund. Note: This is the code for the endowment fund you previously created. 4 Enter the date in DD-MON-YY format in the Effective Date field. 5 Double-click in the Pool field, and select [your two-character initials] code you set up previously. Note: SCT Banner completes the FASB Restriction Indicator field using information contained on the Fund Code Maintenance Form (FTMFUND) for the principal fund. 6 Select True Endowment from the drop-down list in the Endowment Type field. 7 Select Unrestricted from the drop-down list in the Income Restriction Indicator field. Notes: The Income Classification field must be left blank if the Income Restriction indicator selected is Unrestricted. However, if the option selected is Restricted, this field must be populated from the Income Classification Validation Table (FTVINCL). Form FTVINCL is simply a two-character code and a description. 8 Enter the date in DD-MON-YY format in the Date Fund was established field. Note: This field may be any date, even prior to the fund effective date or the system effective date. Page 33

37 Section B: Set Up Linking the Endowment Fund to the Pool (Continued), continued 9 Enter This is the long description of the endowment fund in the Long Title / Description of Fund field. 10 Enter short description of the endowment fund in the Alpha Title field (optional). 11 Enter B in the Spendable Chart of Accounts field. 12 Enter 2S followed by [your two-character initials] in the Spendable Fund field. Notes: This is the mirror fund that needs to be linked to the principal fund. SCT Banner completes the Spendable Fund FASB Indicator field using information contained on the Fund Code Maintenance Form (FTMFUND) record of the spendable fund. 13 Enter (Study of Lyme Disease) in the Organization field. 14 Complete the account to credit in the FOAPAL to Credit for Spendable Income block only if you want to override what was set up on the Pool Code Maintenance Form (FNMPOOL). Note: SCT Banner completes the Financial Manager field using information from the Fund Code Maintenance Form (FTMFUND) record of the spendable fund. 15 Leave the Income distribution special instructions indicator field blank. Note: The Income distribution special instructions indicator is used if you want to enter special instructions. To do so, enter Y, and then add the instructions. 16 Review the information. 17 Click the Save icon. Page 34

38 Section B: Set Up Linking the Endowment Fund to the Pool (Continued), continued 18 Perform an Insert Record function. 19 Perform a Duplicate Record function. 20 Enter 6E followed by [your two-character initials], followed by the numeral 2 in the Principal Fund field. Note: This is the code for the second endowment fund you created in Lesson Navigate to the Effective Date field and make sure it corresponds to the earliest date for entries to this pool. 22 Enter This is the long description of the second endowment fund in the Long Title / Description of Fund field. 23 Enter short description of Endow Fund 2 in the Alpha Title field (optional), the short title. 24 Enter B in the Spendable Chart of Accounts field. 25 Enter 2S followed by [your two-character initials], followed by the numeral 2 in the Spendable Fund field. 26 Review the information. 27 Click the Save icon. 28 Click the Exit icon. Page 35

39 Section B: Set Up Self Check Directions Use the information you have learned in this workbook to complete this self check activity. Question 1 Assigning an organization code to a financial manager on FTMFMGR will automatically update the Financial Manager field for the organization code on FTMORGN. True or False Question 2 What two things must exist to cause a gift to be unitized? Question 3 What internal fund types are linked to the endowment fund? Page 36

40 Section B: Set Up Answer Key for Self Check Question 1 Assigning an organization code to a financial manager on FTMFMGR will automatically update the Financial Manager field for the organization code on FTMORGN. False. Assigning an organization code to a financial manager on FTMFMGR does NOT automatically update the Financial Manager field on FTMORGN. Question 2 What two things must exist to cause a gift to be unitized? The fund must be set up as an endowment fund on FNMENDW The account code being credited must be account class U Question 3 What internal fund types are linked to the endowment fund? 50 Quasi-endowment 60 - Endowment Funds 70 Term endowment Page 37

41 Section C: Day-to-Day Operations Overview Purpose The purpose of this section is to explain the day-to-day or operational procedures to handle Endowment Management at your institution. Intended audience Finance Office Staff Objectives At the end of this section, you will be able to create entries for endowment gifts set up unitization rules set up spending formula rules distribute income, gains and losses, and spending formula variance become familiar with the reporting capabilities of Endowment management. Prerequisites To complete this section, you should have completed the SCT Banner Education Practices computer-based training (CBT) tutorial SCT Banner 7 Fundamentals, or have equivalent experience navigating in the SCT Banner System the Finance Overview training workbook ensure that the rules and validation codes in SCT Banner needed for Endowment Management have been set up for you. Section contents Overview...38 Creating a Journal Voucher to Receive an Endowed Gift...39 Creating a Journal Voucher to Transfer the Gift to the Investment Manager...44 Using the Endowment Process Control Form...47 Running the Unitization Process...51 Setting a Spendable Rate per Unit...58 Running the Distribution of Spendable Income Process...61 Running the Distribution of Gains/Losses Process...67 Running the Endowment Management Reports...75 Self Check...81 Answer Key...82 Page 38

42 Section C: Day-to-Day Operations Creating a Journal Voucher to Receive an Endowed Gift Introduction In the previous topics, we were setting up the processes for the funds. In this topic, we will begin the actual procedures for management of endowment gifts. First step First, we must receipt the gift. We will receipt the gift with a CR05 rule code on the Journal Voucher Quick Entry Form (FGAJVCQ). A Gift receipt must be through this form or through the Journal Voucher Entry Form (FGAJVCD) to be recognized by the Unitization Process (FNPUNTZ). (That is, if they are not being fed from the Alumni module via ADPFEED.) The Gift Date is the critical field for identification of this receipt as one that you will want to have bought into your investment pool. Remember that, as with any receipt, we are expecting the system to credit revenue for the fund you specify and to automatically debit cash for a corresponding amount in your bank fund. You must receipt endowment gifts that you want to buy into the investment pool through one of the Journal Voucher forms (FGAJVCQ or FGAJVCD) if they are not being fed from the Alumni Module via ADPFEED. The Miscellaneous Receipting Form in Accounts Receivable (TFAMISC) does not permit specification of a gift date and thus cannot be used to receipt these amounts if they are to be unitized. Follow the steps to complete the procedure. SCT Banner form Follow these steps to complete the process. 1 Access the Journal Voucher Quick Form (FGAJVCQ). 2 Enter NEXT in the Document Number field. SCT Banner will assign a document number. Page 39

43 Section C: Day-to-Day Operations Creating a Journal Voucher to Receive an Endowed Gift (Continued), continued 3 Perform a Next Block function. 4 Enter the date in DD-MON-YY format in the Transaction Date field. 5 Enter in the Document Total field. 6 Select Transaction Detail from the Options menu. 7 Press the Tab key in the Sequence field. Note: SCT Banner will enter the next Sequence number for the document. For this exercise, SCT Banner will enter 1. 8 Enter CR05 Cash Receipt Entry in the Journal Type field. 9 Enter B in the Chart field. 10 Enter 6E followed by [your two-character initials] in the Fund field. Note: This is the code for the endowed or principal fund you set up. If it is not automatically populated when you enter the fund code, enter in the Organization field. 11 Enter 5310 followed by [your two-character initials] in the Account field. Page 40

44 Section C: Day-to-Day Operations Creating a Journal Voucher to Receive an Endowed Gift (Continued), continued 12 Enter in the Amount field. 13 Enter + (plus) in the D/C field. 14 Enter Receipt of gift from.in the Description field. 15 Enter A1 in the Bank field. Note: This will default if you entered the bank code when you created your fund). 16 Enter the date in DD-MON-YY format in the Gift Date field. Notes: If you use a revenue account that does not have the same account type as that you entered on FNMPOOL for the pool associated with this endowment, the gift date you enter here will not be saved. Save your entry before completing the journal voucher. If the gift date disappears, check the account type of the revenue code you entered and the account type you specified on FNMPOOL. The Number of Units field is optional. It is used to enter the number of units if the dollar value per unit is known at the time of the gift. This entry will override the calculation of the Unitization Process (FNPUNTZ). Generally this is used only for conversion. For this exercise, we will leave this field blank. 17 Click the Save icon. Notes: Make sure that the Status field displays a P. Make sure that the Gift Date field still displays the gift date that you entered. 18 Select Access Completion from the Options menu. 19 Click the Complete icon. Note: The message in the lower left-hand corner of your screen, which should read: Document [number] completed and forwarded to the posting process. Make a note of the document number that has been generated. 20 Click the Exit icon. Page 41

45 Section C: Day-to-Day Operations Creating a Journal Voucher to Receive an Endowed Gift (Continued) SCT Banner form Follow these steps to run the Posting process. Note: Only one person needs to run this for the entire group. Run the Posting Process only if Posting is not already running in Sleep/Wake 1 Access the Posting Process (FGRACTG). 2 Enter database or a valid printer code. 3 Perform a Next Block function. 4 Perform a Next Block function again. 5 Click the Save icon. 6 Select Review Output from the Options menu. 7 Click the Exit icon. Page 42

46 Section C: Day-to-Day Operations Creating a Journal Voucher to Receive an Endowed Gift (Continued) SCT Banner form You can review any posted document on FGIDOCR. Follow these steps to review the postings on the Retrieval Inquiry form. 1 Access the Document Retrieval Inquiry Form (FGIDOCR). 2 Enter the document number generated above in the Document field. 3 Perform a Next Block function. 4 Click on the line where you want to see detail. 5 Select Access Document Postings from the Options menu. 6 Review the information. 7 Click the Exit icon twice. Page 43

47 Section C: Day-to-Day Operations Creating a Journal Voucher to Transfer the Gift to the Investment Manager Introduction The gift from the previous topic has been completed. To invest that gift, you must transfer it from the cash account in your bank fund to an asset account for investments in the pool fund we set up previously. As mentioned in the preceding topic, the receipt process automatically posted the gift to the bank fund. Therefore, we will now create a journal to move the amount from the bank fund to the pool fund. The Journal Voucher Quick Form (FGAJVCQ) is used to transfer the $100,000 gift to the investment manager. SCT Banner form Follow these steps to transfer the gift. 1 Access the Journal Voucher Quick Form (FGAJVCQ). 2 Enter Next in the Document Number field. SCT Banner will assign a document number. 3 Perform a Next Block function. 4 Enter the DD-MON-YY in the Transaction Date field. 5 Enter in the Document Total field. 6 Select Transaction Detail from the Options menu. Page 44

48 Section C: Day-to-Day Operations Creating a Journal Voucher to Transfer the Gift to the Investment Manager (Continued), continued 7 Press tab in the Sequence field. Note: SCT Banner will enter the next Sequence number for the document. Example: The Sequence number will be 1. 8 Enter JE16 General Journal Entry (Inter-Fund), in the Journal Type field. 9 Enter B in the Chart field. 10 Enter 6P followed by [your two-character initials] in the Fund field. Note: This is the code for the pool fund you set up. 11 Enter 1296 followed by [your two-character initials] in the Account field. Note: This is the pooled investment account. 12 Enter in the Amount field. 13 Enter D in the D/C field. 14 Enter Gift Transfer from.in the Description field. 15 Enter A1, the two-character bank code, in the Bank field. 16 Perform an Insert Record function. 17 Perform a Duplicate Record function. 18 Tab through the Sequence field and SCT Banner will enter the next Sequence number for the document. Example: The Sequence number will be Enter 9910 Bank Fund, in the Fund field. 20 Enter 1001 in the Account field. 21 Enter C in the D/C field. 22 Select Access Completion from the Options menu. 23 Click the Complete icon. Note: The message in the lower left-hand corner of your screen, which should read: Document [number] completed and forwarded to the posting process. Make a note of the document number that has been generated. 24 Click the Save icon. 25 Click the Exit icon. Page 45

49 Section C: Day-to-Day Operations Creating a Journal Voucher to Transfer the Gift to the Investment Manager (Continued) SCT Banner form Follow these steps to run the posting process. Note: Only one person needs to run this for the entire group. 1 Access the Posting Process (FGRACTG). 2 Enter database or a valid printer code. 3 Perform a Next Block function. 4 Perform a Next Block function again. 5 Click the Save icon. 6 Click the Exit icon. Note: You can view the postings on FGIDOCR. Page 46

50 Section C: Day-to-Day Operations Using the Endowment Process Control Form Introduction On the Endowment Process Control Form (FNMUCTR), you will set the parameters according to which the Unitization Process (FNPUNTZ) will assess each gift s current share of the pool. Shares in the pool are calculated in units, which are assessed based upon the dollar value of the gift and the market rate per unit you assign on FNMUCTR. The date of gifts is important in this process. Scenario You have created a brand new pool with a gift of $100,000 for endowment A. If this gift is given in January, you may set the market rate per unit on FNMUCTR to $100 for January. The pool has 1000 units (at $100/unit), and this original endowment owns 1000 of these units. However, by February, the value of the $100,000 investment has increased to $150,000. Therefore, you set the February market value per unit to $150 on FNMUCTR. If endowment A gives a further gift of $100,000 in February, then when you run the Unitization Process, endowment A will end up owning units in this pool, not The original $100,000 gift still owns 1000 units, because it purchased units when the value was $100/unit. But the second $100,000 gift is buying in at $150/unit, and can only purchase units. If endowment B buys into your pool, with a $50,000 gift dated in January, it can still buy into the pool at the $100/unit rate, and own 500 units. If it buys in with the gift dated in February, it can only purchase units. The initial unit value is an arbitrary figure. Subsequently, it is adjusted based on the Market Value divided by the number of units outstanding. Unitization schedule You will set up a unitization schedule on FNMUCTR that corresponds to the Frequency of Unitization you assigned to your pool on FNMPOOL. If you set that frequency to Monthly, then you will need to assign a market rate per unit for each month in the fiscal year. Page 47

51 Section C: Day-to-Day Operations Using the Endowment Process Control Form (Continued) Unitization process in update mode There are three fields on FNMUCTR that will not initially populate when you set up the market value per unit on this form. When you run the Unitization Process in update mode, the following fields will be populated: the Last Day Unitized field will display the date the process was run (today s date) the Number of Units field will reflect any new units purchased by gifts in this unitization period the Cumulative Units field will display the total number of units in this pool as of the unitization period. SCT Banner form Follow these steps to complete the form. 1 Access the Endowment Process Control Form (FNMUCTR). 2 Enter B in the Chart of Accounts field. 3 Enter the two-digit fiscal year for which you want to enter unitization or distribution data (YY) In the Fiscal year field. Page 48

52 Section C: Day-to-Day Operations Using the Endowment Process Control Form (Continued), continued 4 Enter the two-character pool code (your two-character initials) in the Pool Code field. Note: The frequency (in this case, Monthly) is acquired from the Pool Code Maintenance Form (FNMPOOL). 5 Perform a Next Block function. Note: The fiscal start and end date that the fiscal period begins and ends uses the Frequency of Unitization from the Pool Code Maintenance Form (FNMPOOL) and the Fiscal Year Maintenance Form (FTMFSYR). 6 Enter 1.00 as the market value per unit in the $/Unit field, Note: You are permitted to change the value you ve set here until the Unitization Process has been run for gifts received in this period. 7 Enter the date on which the market value per unit was set (DD-MON-YY) in the Valuation Date field. Note: This is typically the same as the End Date on this line. 8 Perform a Next Record function. 9 Enter 1.25 as the market value per unit for the next month in the $/Unit field. 10 Enter the date on with the market value per unit was set [DD-MON-YY] in the Valuation Date field, Note: This is typically the same as the End Date on this line. 11 Perform the Next Record function. 12 Enter 1.50 as the market value per unit for the third month in the $/Unit field. 13 Enter the date on which the market value per unit was set [DD-MON-YY] Note: This is typically the same as the End Date on this line in the Valuation Date field. 14 Perform an Insert Record function. 15 Enter 1.75 as the market value per unit for the fourth month in the $/Unit field. 16 Enter the date on which the market value per unit was set [DD-MON-YY] in the Valuation Date field. Note: This is typically the same as the End Date on this line. Page 49

53 Section C: Day-to-Day Operations Using the Endowment Process Control Form (Continued), continued 17 Perform an Insert Record function. 18 Enter 2.00 as the market value per unit for the fifth month in the $/Unit field. 19 Enter the date on which the market value per unit was set [DD-MON-YY] in the Valuation Date field. Note: This is typically the same as the End Date on this line. 20 Click the Save icon. 21 Click the Exit icon. Page 50

54 Section C: Day-to-Day Operations Running the Unitization Process Introduction The Unitization Process (FNPUNTZ) uses the $/unit values you entered on the Endowment Process Control Form (FNMUCTR) and calculates, based on the $/unit value, how many units a particular gift amount can purchase from that pool. You can run FNPUNTZ in audit mode or update mode. In audit mode, running FNPUNTZ produces an audit report, but does not update the database. In update mode, running FNPUNTZ produces a report and updates the database. Notes: If you are using Banner Alumni Development and you have chosen to feed pledges, the unitization process will not pick up actual gifts for unitization since those gifts will be credited to a Pledges receivable account (asset) and not to a revenue account. The Unitization Process (FNPUNTZ) does not create any postings. This process only calculates the number of units purchased by a gift, and accumulates the number of units owned by an endowment. It uses this value in the calculation of spendable income, realized gains, and so forth. Gifts that should be unitized For a receipt to be recognized by this process as a gift that should be unitized, two things are required. 1) A gift date is needed for a gift receipt through FGAJVCQ or FGAJVCD. This date must be entered in the Gift Date field on these Journal Voucher forms; it is automatically supplied for gifts fed through ADPFEED. 2) The account code for the gift revenue must be designated on the Account Code Maintenance Form (FTMACCT) with a class of U. Multiple runs You can run this process more than one time for a specific fiscal period. If you run the Unitization Process for a gift that was received in a prior unitization period, SCT Banner will use the dollar value per unit that was in effect on the gift date you ve specified. The Number of Units and Cumulative Units fields on FNMUCTR will be updated based on the fiscal period to which your gift journal was posted Example: The transaction date you entered for the journal voucher. Page 51

55 Section C: Day-to-Day Operations Running the Unitization Process (Continued) Scenario Perhaps you need to run the Unitization Process for 31-AUG-[YY] for a gift with a gift date of 28-JUL-[YY]. If your journal voucher has a gift date of 28-JUL-[YY] and a transaction date of 15-AUG-[YY], then the Unitization Process will use the dollar amount for July to calculate the number of units purchased by the gift. However, those units will only be added to the total units owned by the endowment as of August. Recommendation It is recommended that you do not run the Distribution of Spendable Income Process (FNPSPND) or the Distribution of Gains/Losses Process (FNPGAIN) until you have completely finished unitizing gifts for the period. Reversing FNPUNTZ If you need to reverse the Unitization Process (FNPUNTZ), use the Journal Voucher Entry Form (FGAJVCD or FGAJVCQ) to create a negative entry for each gift or transfer that was incorrectly unitized. Afterwards, rerun the Unitization Process. You will effectively cancel out the original process when you unitize the negative journal voucher(s). The Journal Voucher Entry Form (FGAJVCD or FGAJVCQ) does not prevent you from removing an amount in excess of the fund balance. If you unitize an endowed fund with a negative balance, you will obtain a negative number of units within the fund. Recommendation for running the process SunGard SCT recommends that you perform the following steps when running this process: 1) Enter a value in the $/Unit field on the Endowment Process Control Form (FNMUCTR) for all fiscal periods that contain gifts or transfers. 2) Run FNPUNTZ in audit mode. 3) Ensure that the gifts listed in the transaction report match the gifts that were entered in your institution s Alumni/Development System, or recorded through journal vouchers. 4) Carefully review the unitization report and correct any errors that you might discover. 5) Run FNPUNTZ in update mode. Page 52

56 Section C: Day-to-Day Operations Running the Unitization Process (Continued) Gift date The gift date in the unitization report is the gift date entered in your institution s Alumni/Development System or the gift date entered on a journal voucher in the Finance System. Gift number If you want the unitization report to show a gift number for a journal voucher, you must enter the document number in the Document Reference field on the Journal Voucher Entry Form (FGAJVCD). SCT Banner form In this procedure, the Unitization Process is run for 31-JUL-XX, which is the first unitization period that we set up on FNMUCTR. Page 53

57 Section C: Day-to-Day Operations Running the Unitization Process (Continued) Follow these steps to complete the process. 1 Access the Unitization Process (FNPUNTZ). 2 Enter database or a valid printer code. 3 Enter these parameter values. Parameter Description Parameter 01: Chart of Accounts Parameter 02: Pool Code Parameter 03: As of Date of Unitization Parameter 04: Audit or Update Mode Enter the code identifying the Chart of Accounts for the unitized pool that you want to unitize B. Enter the two-character code representing the unitized pool that you want to unitize your [two-character initials]. Specifies which additions and/or deductions you want to unitize. SCT Banner will unitize gifts and journal entries with gift dates that are less than or equal to the date in this parameter. Enter the last day of the first month of the fiscal year e.g. 31-JUL-YY. Indicates whether you want SCT Banner to update the database when you run this process. Enter A. 4 Click the Save Parameter Set as checkbox. 5 Enter a name and description in the Name and Description fields. 6 Click the Submit radio button. 7 Click the Save icon to execute the report. Note: Notice the file names on the Auto Help line. Page 54

58 Section C: Day-to-Day Operations Running the Unitization Process (Continued) Follow these steps to review output. 1 Select Review Output from the Options menu. 2 Review the output. 3 Select the.lis file corresponding to your just-run process in the File Name field. Note: The report shows the gifts that were successfully unitized and those that failed. If a gift is not being included on this report, the most likely problem is a missing date or a date mismatch. Make sure that the gift date entered on your voucher falls on or before the As of date you ve entered for this process, and that there is corresponding $/unit information for the fiscal period into which this gift date falls on the Endowment Process Control Form (FNMUCTR). 4 Run FNPUNTZ in update mode when you are satisfied with the calculations by returning to GJAPCTL. Note: Your parameters should default. 5 Enter U instead of A in the Audit or Update Mode parameter field. 6 Click the Exit icon. Page 55

59 Section C: Day-to-Day Operations Running the Unitization Process (Continued) SCT Banner form Follow these steps to complete the process. 1 Access the Endowment Process Control Form (FNMUCTR). 2 Enter B in the Chart of Accounts field. 3 Enter the year in YY format in the Fiscal Year field. 4 Enter your two-character initials in the Pool Code field. 5 Review the information in the Last Date Unitized, Number of Units and Cumulative Units columns. 6 Click the Save icon. 7 Click the Exit icon. Page 56

60 Section C: Day-to-Day Operations Running the Unitization Process (Continued) SCT Banner form For a beginning Market Value to display, you must fill out FNMUCTR for the previous fiscal year. Follow these steps to complete the process. 1 Access the Endowment Fund History Form (FNIEBAL). 2 Enter the fund code for the endowment fund you created 6E followed by your [twocharacter initials]. 3 Perform a Next Block function. 4 Review the unit information by fiscal period. 5 Click the Save icon. 6 Select YTD by Account within Fund from the Options menu. 7 Review the revenue information within your endowment fund. 8 Click the Exit icon. Page 57

61 Section C: Day-to-Day Operations Setting a Spendable Rate per Unit Introduction Now that the Unitization Process (FNPUNTZ) has been successful, you may set the spendable rate per unit. The Board of Trustees at the beginning of the fiscal year typically mandates this rate. You will use the Endowment Process Control Form (FNMUCTR) to enter the spendable rate information, just as you used it to record the market rate per unit. The Distribution of Spendable Income Process (FNPSPND) will use the spendable rate information, and the number of units owned by the endowment (calculated by FNPUNTZ), to calculate the spendable income revenue to post to the spendable income funds associated with the endowment funds. The spendable rate that you enter on FNMUCTR is a dollar rate per unit owned. If you specify a spendable rate of 2, then the Distribution of Spendable Income Process (FNPSPND) can distribute $2 to the spendable income fund for every unit owned by the endowment as of the distribution date. The system does not enforce any logical restrictions on the relationship between your $/unit value and the spendable rate you enter. If you opened a pool with a gift of $1000, and set the $/unit at $1, you could assign a spendable rate of.02 for this same period. Note that in this case the Distribution of Spendable Income Process would distribute $20 in income from this $1000 endowment. The calculation of the spendable rate per unit is beyond the scope of the Endowment Management module. The investment manager must calculate this rate. The Endowment Management module does not enforce any restriction upon the rate specified. Page 58

62 Section C: Day-to-Day Operations Setting a Spendable Rate per Unit (Continued) SCT Banner form Follow these steps to complete the process. 1 Access the Endowment Process Control Form (FNMUCTR). 2 Enter B in the Chart of Accounts field. 3 Enter the date in YY format in the Fiscal Year field. 4 Enter the two-character pool code (your initials) in the Pool Code field. 5 Perform a Next Block function. Note: The form should contain the $/Unit entries you created previously. 6 Select Distribution Process Parameters from the Options menu or perform another Next Block function. Note: The fiscal periods defined on the Fiscal Year Maintenance Form (FTMFSYR) display in this window, even if the frequency of distribution you designated in FNMPOOL is quarterly, semi-annually, or annually. 7 Enter 0 in the Spendable Amount/Unit field for those periods for which you do NOT want to distribute spendable income. Page 59

63 Section C: Day-to-Day Operations Setting a Spendable Rate per Unit (Continued), continued 8 Enter 0.00 as the spendable rate per unit for the first month of the fiscal year in the Spendable Amount/Unit field. Note: Precision for this is 3 decimals. 9 Perform a Next Record function. 10 Enter.25 as the spendable rate per unit for the second month in the Spendable Amount/Unit field. 11 Perform a Next Record function. 12 Enter.50 as the spendable rate per unit for the third month in the Spendable Amount/Unit field. 13 Perform a Next Record function. 14 Enter.50 as the spendable rate per unit for in the Spendable Amount/Unit field. 15 Perform a Next Record function. 16 Enter.50 as the spendable rate per unit for the fourth month in the Spendable Amount/Unit field. 17 Review the form. 18 Click the Save icon 19 Click the Exit icon. Page 60

64 Section C: Day-to-Day Operations Running the Distribution of Spendable Income Process Introduction The Distribution of Spendable Income Process (FNPSPND) takes the spendable amount per unit that you ve specified on the Endowment Process Control Form (FNMUCTR) and the number of units of the pool owned by the endowment fund, and calculates the amount of revenue to be distributed to each spendable income fund for this pool. The process then creates a journal voucher to post the resulting value to the spendable income fund you ve associated with this endowment on the Endowment Fund Definition Form (FNMENDW). The process will post this value to the account you ve designated for spendable income credits on the Pool Code Maintenance Form (FNMPOOL). This journal will debit the account specified for spendable income debits on FNMPOOL. In these exercises, we used a liability account in the earned income fund. Notes: FNPSPND creates an interface document. The postings resulting from this process will not appear in your ledger until this document has been: Interfaced to the Finance System via the Finance Interface Process (FGRTRNI) Posted to the Ledgers via the Posting Process (FGRACTG) As with other interfaced documents, if the Finance Interface Process (FGRTRNI) detects posting problems in this journal, it will generate a journal voucher with an I (for incomplete) status. You can review and make corrections to this problem journal in either of the Journal Voucher Entry forms (FGAJVCD and FGAJVCQ). Reversing FNPSPND You can reverse FNPSPND by rerunning it with a negative rate specified. If you need to rerun the Unitization Process (FNPUNTZ) after running the Distribution of Spendable Income Process (FNPSPND) and/or the Distribution of Gains/Losses Process (FNPGAIN), SCT recommends that you do the following: Rerun the Distribution of Spendable Income Process (FNPSPND) and/or the Distribution of Gains/Losses Process (FNPGAIN) with a negative amount in the Rate parameter. This will effectively reverse the previous distribution. Rerun the Unitization Process (FNPUNTZ). Rerun the Distribution of Spendable Income Process (FNPSPND) and/or the Distribution of Gains/Losses Process (FNPGAIN). Page 61

65 Section C: Day-to-Day Operations Running the Distribution of Spendable Income Process (Continued) SCT Banner form Run the Distribution of Spendable Income Process (FNPSPND) and post the results to your ledger. Follow these steps to complete the process. 1 Access the Distribution of Spendable Income Process (FNPSPND). 2 Enter database or a valid printer code in the Printer field. Page 62

66 Section C: Day-to-Day Operations Running the Distribution of Spendable Income Process (Continued), continued 3 Enter these parameter values. Parameter Description Parameter 01: Enter the code identifying the chart of accounts for the unitized Chart of pool that you want to unitize B. Account Parameter 02: Pool Code Enter the two-character code representing the unitized pool that you want to unitize [your two-character initials]. Parameter 03: End Date for Number of Units 4 Enter these parameter values. Parameter Parameter 04: End Date for Rate Enter the ending date from the unitization schedule you set up on FNMUCTR for which you wish to distribute spendable income [DD-MON-YY]. (This date and the next two are usually the same). Description Enter the ending date from the spendable rate schedule you set up in FNMUCTR for which you wish to distribute spendable income [DD-MON-YY]. Parameter 05: As of Date Parameter 06: Rate Parameter 07: Audit or Update Mode If a rate is entered here, it will supercede the rate you set up in FNMUCTR. (Leave this field blank). Optional parameter. Enter a date for the fiscal period within which you d like this income to post [DD-MON-YY]. Indicates whether you want SCT Banner to update the database when you run this process. Enter A (Audit Mode). 5 Click the Save Parameter Set as checkbox. 6 Enter a name and description in the Name and Description fields. 7 Click the Submit radio button. Page 63

67 Section C: Day-to-Day Operations Running the Distribution of Spendable Income Process (Continued), continued 8 Click the Save icon to execute the report. 9 Select Review Output from the Options menu to review the results of your audit run. 10 Rerun the Distribution of Spendable Income Process (FNPSPND) in update mode. Note: Follow the steps above, entering U instead of A as the Audit or Update Mode parameter. 11 Select Review Output from the Options menu to review the results of your update run. Follow these steps to review interface and posting processes. 1 Run the Finance Feed Process (FGRTRNI). 2 Run the Transaction Error Report (FGRTRNR). 3 Run the Posting Process (FGRACTG). Note: If the Distribution of Spendable Income Process (FNPSPND) needs to be rerun, you can reverse the distribution by entering a negative amount in the Rate field. 4 Review the postings produced by your journal voucher on the Document Retrieval Inquiry Form (FGIDOCR). Page 64

68 Section C: Day-to-Day Operations Running the Distribution of Spendable Income Process (Continued) SCT Banner form Follow these steps to complete the process. 1 Access the Organization Budget Status Form (FGIBDST). 2 Query the spendable fund and review the impact of the Distribution of Spendable Income Process (FNPSPND). Page 65

69 Section C: Day-to-Day Operations Running the Distribution of Spendable Income Process (Continued) SCT Banner form Follow these steps to complete the process. 1 Access the Endowment Fund History Form (FNIEBAL). 2 Review this form, which provides a snapshot of information and interrelated components in the finance ledgers. Note: The form is organized in two parts, displaying YTD by fiscal period and YTD by account within a fund. Page 66

70 Section C: Day-to-Day Operations Running the Distribution of Gains/Losses Process Introduction The Distribution of Gains/Losses Process (FNPGAIN) actually does three types of distribution: Distribution of Realized Gains/Losses (Trading Activity) Distribution of Unrealized Gains/Losses (Market Fluctuations) Distribution of Variance from Spending Formula (the difference between total income earned by a unitized pool and distributed spendable income) For the distribution of realized gains/losses and the distribution of spending variance, you will determine the rate per unit for the process to use. This process automatically calculates the rate per unit for the distribution of unrealized gains/losses as follows: The market value of each endowed fund as of the end of the fiscal period specified by the End Date parameter is determined The book value of each endowed fund as of the end of the fiscal period specified in the End Date parameter is calculated: Book value = Beginning Fund Balance + Revenue Expense +/ Transfers + Fund Additions Fund Deductions The book value is subtracted from the market value The result of this calculation is distributed Unlike the distributions of realized gains/losses and the distribution of spending formula variance, unrealized gains/losses distribution cannot be simply reversed through this process. The distributed amounts would have to be manually reversed through journal vouchers. Page 67

71 Section C: Day-to-Day Operations Running the Distribution of Gains/Losses Process (Continued) SCT Banner form First, you will run the Distribution of Gains/Losses Process (FNPGAIN) to distribute realized gains/losses. Follow these steps to complete the process. 1 Access the Endowment Fund History Form (FNIEBAL) and review your endowment fund. 2 Review your endowment fund on FNIEBAL to calculate a rate for your realized gains/losses. 3 Select a period where the Aggregate Market Value differs from the Book Value. 4 Choose a portion of that difference to be distributed as realized gains. Example: If your Book Value is $1000 and the Aggregate Market Value= is $1500, the difference is $500. Take half of that ($250) to be distributed as realized gains/losses. (To get your per unit rate, divide $250 by the number of units in the Units Owned column.) 5 Access the Distribution of Gains/Losses Process (FNPGAIN) via the Process Submission Controls Form (GJAPCTL). 6 Enter database or a valid printer code in the Printer field. Page 68

72 Section C: Day-to-Day Operations Running the Distribution of Gains/Losses Process (Continued), continued 7 Enter these parameter values. Parameter Description Parameter 01: Enter the code identifying the chart of accounts for the unitized Chart of pool that you want to unitize B. Account Parameter 02: Pool Code Parameter 03: End Date Parameter 04: As of Date Parameter 05: Distribution Option Parameter 06: Rate Parameter 07: Audit or Update Mode Enter the two-character code representing the unitized pool that you want to unitize [your two-character initials]. Enter the ending date from the unitization schedule you set up on FNMUCTR for which you wish to distribute realized gains/losses income [DD-MON-YY]. If a rate is entered here, it will supercede the rate you set up in FNMUCTR. (Leave this field blank). Enter R to distribute realized gains/losses, U to distribute unrealized gains/losses, or S to distribute the variance from spending formula (enter R). For the distribution of realized gains/losses or the variance, you must specify a rate. The rate of unrealized gains/losses is calculated by the process (enter the rate you calculated in step 2 of this exercise). Indicates whether you want SCT Banner to update the database when you run this process. Enter A (Audit Mode). 8 Click the Save Parameter Set as checkbox. 9 Enter a name and description in the Name and Description fields. 10 Click the Submit radio button. 11 Click the Save icon to execute the report. Page 69

73 Section C: Day-to-Day Operations Running the Distribution of Gains/Losses Process (Continued) -, continued 12 Select Review Output from the Options menu to review the results of your audit run. 13 Carefully review the transaction report and correct any errors that you might discover. 14 Rerun the Distribution of Gains/Losses Process (FNPGAIN) in update mode. 15 Select Review Output from the Options menu to review the results of your update run. Note: Make note of the journal voucher number listed. Follow these steps to run and review additional processes. 1 Run the Finance Feed Process (FGRTRNI). 2 Run the Transaction Error Report (FGRTRNR). 3 Run the Finance Posting Process (FGRACTG). 4 Enter a negative amount in the Rate field and the distribution will be reversed if the Distribution of Realized Gains Process needs to be rerun. 5 Review the postings for this journal voucher on the Document Retrieval Inquiry Form (FGIDOCR). Page 70

74 Section C: Day-to-Day Operations Running the Distribution of Gains/Losses Process (Continued) SCT Banner form Access the Endowment Fund History Form (FNIEBAL) and review the YTD information for your endowment fund, both by fiscal period and by account. Page 71

75 Section C: Day-to-Day Operations Running the Distribution of Gains/Losses Process (Continued) Next, you will rerun the Distribution of Gains/Losses Process (FNPGAIN) for the distribution of unrealized gains/losses. Note: You will not calculate a rate for unrealized gains/losses the process does this automatically. 1 Access the Distribution of Gains/Losses Process (FNPGAIN) via the Process Submission Controls Form (GJAPCTL). 2 Perform a Next Block function. 3 Enter database or a valid printer code in the printer field. 4 Perform a Next Block function. 5 Enter the parameters from the table earlier in this topic, but change the Distribution Option parameter to U. 6 Leave the Rate parameter null. 7 Perform a Next Block function. 8 Click the Save icon. 9 Select Review Output from the Options menu to review the results of your audit run. 10 Carefully review the transaction report and correct any errors that you might discover. 11 Rerun the Distribution of Gains/Losses Process (FNPGAIN) in update mode. 12 Select Review Output from the Options menu to review the results of your update run. Note: Make note of the journal voucher number listed. Follow these steps to run and review interface and posting processes. 1 Run the Finance Feed Process (FGRTRNI). 2 Run the Transaction Error Report (FGRTRNR). 3 Run the Finance Posting Process (FGRACTG). 4 Review the postings for this journal voucher on the Document Retrieval Inquiry Form (FGIDOCR). Page 72

76 Section C: Day-to-Day Operations Running the Distribution of Gains/Losses Process (Continued) Follow these steps to review YTD information. 1 Access the Endowment Fund History Form (FNIEBAL) and review the YTD information for your endowment fund, both by fiscal period and by account. Note: Notice that unrealized gain/loss is NOT included in the Book Value column. Follow these steps to rerun the Distribution of Gains/Losses Process (FNPGAIN) for the distribution of variance from the spending formula. Note: You must supply a per unit rate for the distribution of variance from the spending formula. This can be calculated from the difference between the earnings for the pool, and the amount distributed, so far, as spendable income. Divide this difference by the number of units owned to get a per unit rate. 1 Access the Distribution of Gains/Losses Process (FNPGAIN) via the Process Submission Controls Form (GJAPCTL). 2 Perform a Next Block function. 3 Enter database or a valid printer code in the Printer field. 4 Perform a Next Block function. 5 Enter the parameters as in previous exercises of this topic, but change the Distribution Option parameter to S. 6 Enter your calculated rate as the Rate parameter. 7 Perform a Next Block function. 8 Check the box labeled Save Parameters. 9 Click the Save icon. 10 Select Review Output from the Options menu to review the results of your audit run. Note: Carefully review the transaction report and correct any errors that you might discover. 11 Rerun the Distribution of Gains/Losses Process (FNPGAIN) in update mode. 12 Select Review Output from the Options menu to review the results of your update run. Note: Make note of the journal voucher number listed. Page 73

77 Section C: Day-to-Day Operations Running the Distribution of Gains/Losses Process (Continued) Follow these steps to complete the run and review interface and posting processes. 1 Run the Finance Feed Process (FGRTRNI). 2 Run the Transaction Error Report (FGRTRNR). 3 Run the Finance Posting Process (FGRACTG). 4 Review the postings for this journal voucher on the Document Retrieval Inquiry Form (FGIDOCR). Follow these steps to complete the review YTD information process. 1 Access the Endowment Fund History Form (FNIEBAL) and review the YTD information for your endowment fund, both by fiscal period and by account. Page 74

78 Section C: Day-to-Day Operations Running the Endowment Management Reports Introduction Three reports were developed for the Endowment Management module. The Principal Fund Activity Report (FNRPRNC) allows the user to print year-to-date information about the endowed funds from the beginning of a fiscal year to the as-of date. The Spendable Endowment Fund Summary Report (FNRSPNC) allows the user to print information pertaining to the spendable funds. The Endowment Fund History Report (FNRHIST) allows the user to print information about endowed funds for each fiscal period from the inception date of the fund to the current date. SCT Banner form Run the Principal Fund Activity Report (FNRPRNC). Page 75

79 Section C: Day-to-Day Operations Running the Endowment Management Reports (Continued) Follow these steps to complete the process. 1 Access the Principal Fund Activity Report (FNRPRNC). 2 Enter database or a valid printer code in the Printer field. 3 Enter these parameter values. Parameter Description Parameter 01: Chart of Enter the code identifying the chart of accounts for Accounts which you d like to see information (B). Parameter 02: Pool Code Enter the two-character code representing the unitized pool for which you d like to see information. (Enter your two-character initials). Parameter 03: As of Date Enter the date on or before which you want to see information (31-AUG-2002). Parameter 04: Report D = Detail, S = Summary. (Enter D.) Type Parameter 05: Sort Option R = by Restriction Indicator; E = by Endowment Type; I = by Income Class; F = by Financial Manager. (Enter R.) Parameter 06: Include Y = Yes, N = No. (Enter Y.) Dollar Detail Line Parameter 07: Include Y = Yes, N = No. (Enter Y.) Unit Detail Line Parameter 08: Include Y= Yes, N = No. (Enter Y.) Spendable Amount Line 4 Click the Save Parameter Set as checkbox. 5 Enter a name and description in the Name and Description fields. 6 Click the Submit radio button. 7 Click the Save icon to execute the report. 8 Select Review Output on the Options menu to review the report. 9 Click the Exit icon. Page 76

80 Section C: Day-to-Day Operations Running the Endowment Management Reports (Continued) SCT Banner form Next, you will run the Spendable Endowment Fund Summary Report (FNRSPNC). Page 77

81 Section C: Day-to-Day Operations Running the Endowment Management Reports (Continued) Follow these steps to complete the process. 1 Access the Spendable Endowment Fund Summary Report (FNRSPNC) 2 Enter database or a valid printer code in the Printer field. 3 Enter these parameter values. Parameter Description Parameter 01: Chart of Enter the code identifying the chart of accounts for Accounts which you d like to see information (B). Parameter 02: Pool Code Enter the two-character code representing the unitized pool for which you d like to see information. (Enter your two-character initials). Parameter 03: As of Date Enter the date on or before which you want to see information (31-AUG-2002). Parameter 04: Financial Manager You can specify a particular financial manager, if you wish. (Leave this blank for this exercise.) 4 Click the Save Parameter Set as checkbox. 5 Enter a name and description in the Name and Description fields. 6 Click the Submit radio button. 7 Click the Save icon. 8 Select Review Output from the Options menu to review the resulting report. Page 78

82 Section C: Day-to-Day Operations Running the Endowment Management Reports (Continued) SCT Banner form Next, you will run the Endowment Fund History Report (FNRHIST). Page 79

83 Section C: Day-to-Day Operations Running the Endowment Management Reports (Continued) Follow these steps to complete the process. 1 Access the Endowment Fund History Report (FNRHIST). 2 Enter database or a valid printer code in the Printer field. 3 Enter these parameter values. Parameter Description Parameter 01: Chart of Enter the code identifying the chart of accounts for Accounts which you d like to see information (B). Parameter 02: Pool Code Enter the two-character code representing the unitized pool for which you d like to see information. (Enter your two-character initials). Parameter 03: Financial You can specify a particular financial manager, if you Manager wish. (Leave this blank for this exercise.) Parameter 04: Income Optional parameter. You can specify a valid income Class class code (from FTVINCL). (Leave this blank for this exercise.) Parameter 05: Fund A = All Funds; R = Range of Funds; W = Wildcard Option Parameter 06: From Fund Parameter 07: To Fund Parameter 08: Fund Funds; S = Specific Fund. (Enter W.) Optional parameter. If R has been selected under Fund Option, enter the first fund in the range of funds desired. (Leave this blank for this exercise.) Optional parameter. If R has been selected under Fund Option, enter the last fund in the range of funds desired. (Leave this blank for this exercise.) Optional parameter. If S or W has been selected under Fund Option, enter the specific fund or the wildcard string desired. (Enter 6%). 4 Click the Save Parameter Set as checkbox. 5 Enter a name and description in the Name and Description fields. 6 Click the Submit radio button. 7 Click the Save icon to execute the report. 8 Select Review Output on the Options menu to review the report. 9 Click the Exit icon. Page 80

84 Section C: Day-to-Day Operations Self Check Directions Use the information you have learned in this workbook to complete this self check activity. Question 1 One earned income fund is defined for each endowment fund. True or False Question 2 Earned income is posted as revenue to the earned income fund. True or False Question 3 How is the $/Unit value (entered on FNMUCTR) determined? Question 4 What is the most common reason for a gift failing to be included in the Unitization Process? Question 5 The spendable income rate can be varied for each fiscal period. True or False Page 81

85 Section C: Day-to-Day Operations Answer Key Question 1 One earned income fund is defined for each endowment fund. False. Moe than one earned income fund can be defined for each endowment fund. Question 2 Earned income is posted as revenue to the earned income fund False. The Fund Code Maintenance Form (FTMFUND) is used to create an earned income fund. The earned income fund will be used to record the earnings of the investment pool as deferred revenue. Question 3 How is the $/Unit value (entered on FNMUCTR) determined? The investment manager calculates it (not the Endowments module). In general, it will be a $/unit expression of the current market value of the pool. Question 4 What is the most common reason for a gift failing to be included in the Unitization Process? Missing or mismatched dates. Question 5 The spendable income rate can be varied for each fiscal period. True Page 82

86 Section D: Reference Overview Purpose The purpose of this section is to provide reference materials related to the workbook. Section contents Overview...83 Set Up Forms and Where Used...84 Day-to-Day Forms and Set Up Needed...85 Forms Job Aid...86 Page 83

87 Section D: Reference Set Up Forms and Where Used Purpose Use this table as a guide to the set up forms and the day-to-day forms that use them. Set Up Form Day-to-Day Form(s) Form Name Code Form Name Code Financial Manager Maintenance FTMFMGR Fund Code Maintenance FTMFUND Form Form Fund Code Maintenance Form FTMFUND Journal Voucher Quick FGAJVCQ Entry Form Document Retrieval FGIDOCR Inquiry Form Account Code Maintenance Form FTMACCT See above Pool Code Maintenance Form FNMPOOL See above Endowment Fund Definition Form FNMENDW Organization Budget FGIBDST Status Form Distribution of Spendable Income Process FNPSPND Endowment Process Control Form FNMUCTR Page 84

88 Section D: Reference Day-to-Day Forms and Set Up Needed Purpose Use this table as a guide to the day-to-day forms and the set up forms needed for each. Day-to-Day Form Journal Voucher Quick Entry Form (FGAJVCQ) Document Retrieval Inquiry Form (FGIDOCR) Endowment Process Control Form (FNMUCTR) Unitization Process (FNPUNTZ) Distribution of Spendable Income Process (FNPSPND) Organization Budget Status Form (FGIBDST) Setup Forms Needed Financial Manager Maintenance Form (FTMFMGR) Fund Code Maintenance Form (FTMFUND) Account Code Maintenance Form (FTMACCT) Pool Code Maintenance Form (FNMPOOL) Endowment Fund Definition Form (FNMENDW) See above See above Endowment Process Control Form (FNMUCTR) See above See above Page 85

89 Section D: Reference Forms Job Aid Guide Use this table as a guide to the forms used in this workbook. The Owner column may be used as a way to designate the individual(s) responsible for maintaining a form. Form Name Form Description Owner FTMFMGR Financial Manager Maintenance Form FTMFUND Fund Code Maintenance Form FTMACCT Account Code Maintenance Form FNMPOOL Pool Code Maintenance Form FNMENDW Endowment Fund Definition Form FGAJVCQ Journal Voucher Quick Entry Form FGIDOCR Document Retrieval Inquiry Form FNMUCTR Endowment Process Control Form FNPUNTZ Unitization Process FNPSPND Distribution of Spendable Income Process FGIBDST Organization Budget Status Form Page 86

90 Release Date This workbook was last updated on 11/01/2005.