Endowment

Endowment Funds for FY 2017 Budget

The spending distribution rate per endowment unit for FY 2017 will be $32.21 per unit or 3.5% increase over the FY 2016 distribution rate. For Budget purposes assume the following spending distribution rates and year-end market unit values, provided by the Financial Planning Office at West Campus:

Fiscal Year

Spending Distribution Rate Assumption

Year-end Market Unit Value Assumption

2015 $29.63 $746.24
2016 $31.12 $715.12
2017 $32.21 $732.97
2018 $33.18 $751.10
2019 $34.18 $769.49

The report of endowment funds under departmental control (“DEPENDW”) is now available. This report shows gross spending distribution and the direct amounts which are expendable, based upon principal balances existing when the report was run.

Information on endowments identified as “underwater” for FY 2016 was distributed to departments in July, 2015.  Departments should assume that individual endowment funds will not be available for FY 2017 expenditures if they were underwater as of June 30, 2016. A list of these funds is now available for each department (report “UNDRWAT2”). The list is in two parts: one includes only endowments that are underwater in the current year (report #1), and another for those that are not now underwater (report #2). Note: Underwater calculation for FY16 and FY17, utilizing 70% of original book value instead of the previous 105%, to determine if a fund is underwater and whether it can be used or not.

Note: The Investments Committee reserves the right to revise the FY17 payout and any other calculations, if there are any major changes in the endowment values.