Gift Compliance Guide

Gift Compliance

ENDOWMENTS

What is an endowment?

An endowment is a transfer of money or property donated to Texas State, usually with the stipulation that it will be invested, and the principal remain intact. Only the investment income is distributed annually to support the fund’s purpose.5

Endowment Types:

ENDOWMENT

A permanent or True endowment whose funds are restricted to preserve the principle. Invested funds generate income that determine the distribution of annual funds to support the purpose of the gift.

Quasi-Endowment

An endowment fund invested as an endowment but with less restrictions to the principle. At the discretion of the governing board, quasi funds can be expended in full or in discreet portions, as stimulated by the donor’s wishes or the need of the university.

NON-ENDOWMENT

Gift funds from a donor. These funds can be expended in total or partially depending on the wishes and spending criteria as provided by the donor.

IMPORTANT: PLEASE REVIEW AND UNDERSTAND THE GENERAL DIVISIONAL RESPONSIBILITIES REGARDING SOLICITATING, ACCEPTING AND PROCESSING GIFTS AND GRANTS FROM PRIVATE SOURCES (UPPS No. 03.05.01), AND THE SECTIONS SPECIFIC TO THE DEPARTMENT AND ACCOUNT MANAGERS REGARDING RECEIPTS OF GIFT (SECTION 03.02); AND ADMINISTRATION AND STEWARDSHIP OF THOSE GIFTS (SECTION 06.06).

FUND USE TYPES

What are “Fund Use” Types?

Fund Use type is the term used by Gift Compliance to identity the purpose of the endowment funds. These Fund Use types are grouped as follows:

Faculty Support:

• Chair

• Fellowship

• Professorship

Department Support:

• Lectureship

• Other

• Program Support

• Research

Student Support:

• Book

• Fellowship

• Scholarship

ENDOWMENT MANAGEMENT AND INVESTMENT

Who manages the endowments?

There are three entities that manage the endowment gift fund:

Development Foundation

Earnings are distributed annually to designated accounts at a rate of 4% applied to a three-year rolling average of the endowment's fair market value.**

University

Earnings are distributed annually to designated accounts at a rate of 3.25% applied to a five-year rolling average of the endowment's fair market value.

McCoy Foundation

The McCoy Foundation manages their own endowment and is currently not part of the Endowment Compliance Plan. This will change in fiscal year 2023.

**NOTE: The Development Foundation's fiscal year-end is June 30th, and all unused funds are returned to the endowment for the current academic year.

Consequently, JUNE 20TH IS THE DEADLINE for disbursement requests and payment of scholarship awards and expenditure/encumbrance of current academic year support funds.

MEMORANDUM OF UNDERSTANDING

What is an MOU?

• MOU stands for a Memorandum of Understanding.

• An MOU, in Advancement, is a written and executed agreement between the donor and Texas State University to stipulate the donor’s intent, purpose of gift, and procedures to manage funds. It is a legally binding written contract.

• All endowments, non-endowments and quasi-endowments gifts must have an MOU in place.**

**NOTE: Some older endowments/non-endowments are “grandfathered” with no MOU in place. Verify this status with Gift Compliance.

IMPORTANT: PLEASE ENSURE YOU HAVE COPIES OF MOUS FOR ALL GIFT ACCOUNTS MANAGED BY YOUR AREA.

SCHOLARSHIP BANNER CODE

What is a Scholarship Banner Code?

The Scholarship Banner Code is an alpha-numeric number established by the Scholarship Office and Student Business Center to award scholarships in the Banner system. The code is linked to the SAP Cost Center/Fund Account associated with the gift fund The Scholarship Banner Code is also the primary code to establish a BOSS profile for each scholarship.

When is one needed?

A scholarship Banner Code is needed when the MOU awards scholarships. The language and Fund Use type of the MOU will determine if a Banner code is needed.

Who requests?

Gift Compliance completes the request form to Financial Aid and Scholarship when a new MOU is executed.

In some cases, a Scholarship Banner Code is not established immediately. The following are some examples:

• A non-endowed MOU has the intent to become an endowment, as funds are not spent to grow principal balance.

• The intent of the MOU changes from a program or faculty support to a student support fund.

• An MOU is not established at the receipt of gift funds.

SAP ACCOUNTING and ENDOWMENTS

What is the SAP account and how does it apply to endowments?

The SAP account** is a set of 10-digit numbers in the University fund accounting system that consists of the fund, cost center and funded program number.

• The Fund identifies the source of revenue for a college department or university division.

• The Cost Center identifies the college department or university division.

• The Funded Program (or Internal Order) identifies a specific project within the college department or university division. Most SAP account show an “NR” for Funded Program as this is rare.

What endowments have an SAP account?

All endowment, quasi-endowment, and non-endowment gift funds have a unique SAP fund account. Except for,

• The Development Foundation scholarship use type endowments. These share one SAP Fund/ Cost Center that is managed by the Development Foundation and Student Business Services.

• Research endowments sometime share one SAP fund account with various college/division departments.

Are endowment SAP accounts automatically funded?

No, each account is funded in accordance with the foundation managing it.

Endowment SAP Accounts are either funded on an automatic basis at the beginning of the academic year or upon formal request via a disbursement form.

Which endowments have funds transferred to the SAP accounts automatically?

The University managed accounts have the annual approved distribution budget automatically deposited into each endowment SAP Account. This transaction posts in September.

What endowments require a disbursement authorization request to fund the SAP account?

Development Foundation managed accounts with a non-scholarship Fund Use type (i.e. program support) require a Disbursement Authorization Request Form to deposit funds to the associated SAP Account. The form is sent to Gift Compliance for processing and deposit.

All other Development Foundation endowments share one SAP fund/cost center managed by the Development Foundation. Scholarships pay directly out of this account after amounts are routed through the Scholarship Office.

(See Distribution Authorization Request Form in Resources)

What endowment accounts generate interest?

Multi-year income generating SAP fund accounts** earn interest based on the monthly fund balance. Endowment SAP fund accounts (specifically fund accounts that start with 4XXXXXXXXX) will have earned interest income applied monthly.

The interest is minimal . In rare cases, the interest income can have a direct impact on the spending compliance, so it is important to consider when budgeting scholarship s.

Do endowment accounts have carried over funds at fiscal-year end?

Endowment SAP accounts are multi-year gift revenue accounts**. The budget balance is equal to the fund balance. The ending balance from prior year will be the beginning balance for the incoming year, increasing only by the endowment distribution revenue or interest revenue earned on the fund balance.

**Formoreinformation and trainingon thestructureof SAPFundAccountsandCostCenters, account manger or view access or any other budget related questions,pleasecontacttheOfficeofBudgeting,Financial Planning&Analysisat 512-245-2376 or

IMPORTANT: DEVELOPMENT FOUNDATION ENDOWMENTS, WITH A USE TYPE OF SCHOLARSHIP, SHARE ONE SAP FUND ACCOUNT AND COST CENTER. THE DEPARTMENTS/ACCOUNT MANAGERS ARE NOT AUTHORIZED ACCESS.

ENDOWMENT COMPLIANCE

What is endowment compliance?

The Endowment Compliance Committee was formed in January 2013 as per UPPS 03.05.01 and charged with three goals:

• Assess Texas State’s risks regarding endowment compliance,

• Ensure proper expenditure and accountability of endowed funds aligned with endowment compliance standards, and

• Report evaluated outcome and performance metrics at the end of each fiscal year.

The Endowment Compliance Committee is comprised of the following members:

• Provost and Vice President of Academic Affairs

• Vice President for University Advancement

• University Treasurer

• Director of Office of Financial Aid and Scholarships

• Director of Gift Compliance, University Advancement

The Endowment Management Standards

• Compliance Standard – I: Endowment MOU

A signed MOU exists to document donor intent

• Compliance Standard – II: Excessive Unspent Balance

Annual distributions are expended and do not build up excessive unspent balances**

• Compliance Standard – III: Overspent Account

Expenditures do not exceed annual endowment funds available

• Compliance Standard – IV: Expenditures Not Aligned with MOU

Utilization of annual distributions are consistent with MOU criteria

• Compliance Standard – V: Report Provided to Donor

An annual report is sent to the primary contacts for each endowment

**Compliance Standard-II has a two-part spending utilization to meet compliance:

1. Scholarship Use Fund Type (endowed scholarship funds) must spend 90% of total available funds, and

2. Non-scholarship Use Fund Type (endowed program support and other non-scholarship use funds) can accumulate two times the approved distribution for the current academic year.

(See Compliance Standard Example in Resources)

The Department’s Endowment Compliance Responsibility

• Compliance Standard – II: Excessive Unspent Balance

Ensure spending utilization is met

• Compliance Standard – III: Overspent Account

Ensure funds are not overspent

• Compliance Standard – IV: Expenditures Not Aligned with MOU

Ensure awards recipients and program expenditures meet MOU criteria/guidelines

IMPORTANT: ANOTHER SIGNIFICANT DEPARTMENT COMPLIANCE

RESPONSIBILITY IS THE END OF YEAR ENDOWMENT FUND USE REPORT, PROVIDING A SUMMARY OF FUND UTILIZATION WITH SUMMARY OF FACULTY, STAFF, STUDENT, OR DEPARTMENTAL EVENTS SUPPORTED BY THE ENDOWMENT

FUND. (SEE TIMELINE & SCHEDULES FOR DUE DATE)

ENDOWMENT REPORTING

Endowment

Distribution Report

What is an endowment distribution report?

The endowment distribution report consists of the approved annual distribution (or spending budget) of all qualified endowments for the upcoming academic year.

When is the endowment distribution report provided?

The report is delivered (via email) to the colleges and divisions in October/November the year prior to the start of a new academic year fall semester, for review and budgeting purposes

Example: The distribution report with spending budget for the 2022/2023 academic semesters will be made available in the fall 2021.

Who receives the endowment distribution report?

The college deans, department chairs, divisional vice-presidents, directors and corresponding support staff are provided with the report. These individuals are responsible for distributing the information to the designated endowment gift fund account managers in their respective areas.

Endowment Activity Report

What is an endowment activity report?

The endowment activity report is a snapshot of the endowment activity for the current "active" academic year and includes the following:

Endowment information:

• SAP cost center and fund account (if applicable)

• Scholarship Banner code (if applicable)

• Endowment ID

• Endowment name

• Managing college/division

• Managing department/school

• Endowment USE type

• Current fiscal year approved distribution (budget)

Account Activity (if applicable):

• Beginning Fund Balance

• Current fiscal year Budget Distribution

• Other Revenue

• Overall Available budget

• Scholarship Offer Amount

• Scholarship Paid

• Scholarship encumbered

• Other Expenses and encumbrances

• Remaining Available Balance as of date of report

Compliance:

• Compliance Status

• Compliance Count

• Follow-up Notes

Legend:

• Color key

• Compliance key

(See Glossary of Terms in Resources)

What is the purpose of the endowment activity report?

The purpose of the endowment activity report is to provide the account managers a snapshot of the endowment account activity and draw their attention to:

o Any changes to the Approved Distribution (Budget)

o Remaining Available balances

o Current Compliance Status

o The opportunity to review and remedy any inconsistencies

When is the endowment activity report provided?

The endowment activity report is provided three times per academic year, Fall, Spring and Summer, with an optional Pre-Spring and Pre-Summer report for departments with excessive non-compliance statuses.

Who receives the endowment activity report?

The college deans, department chairs, divisional executive staff and corresponding staff support that oversee or support the administration and management of endowment gift funds

Non-endowed Fund Balance Report

What is the non-endowed fund balance report?

The purpose of the non-endowed fund balance report is to provide the departments a list of active nonendowed accounts and balances available for additional scholarship awards or program/departmental expenses. The report is included with the Endowment Activity Reports as a separate workbook tab.

Pleasenote:Onlynon-endowedaccountsthatarerecordedinoursystemarelistedonthereport.Contactusifyoubelievea non-endowedaccountismissingfromyourreport.

When is the non-endowment fund balance report provided?

The non-endowment fund balance report is provided twice per academic year and included with the Fall and Spring Endowment Activity Report worksheet.

Who receives the endowment activity report?

The college deans, department and scholarship committee chairs, divisional account managers, and/or budget and administrative staff who manage endowment funds.

IMPORTANT: NON-ENDOWED ACCOUNTS ARE EXCLUDED FROM THE COMPLIANCE PERFORMANCE REPORTS AND METRICS. HOWEVER, GIFTS FOR NONENDOWED ACCOUNTS MUST STILL FOLLOW PROCEDURES FOR ACCEPTING AND ADMINISTERING ENDOWMENT GIFTS (UPPS 03.05.01, SECTION 06) AND ENDOWMENT MANAGEMENT STANDARDS.

Annual Compliance Report

What is the annual compliance report?

The annual compliance report is a compilation of outcomes and metrics presented and reviewed by the Director of Gift Compliance, University Provost, and College Deans and Chairs. The final report and metrics are presented to the Endowment Compliance Committee and summarizes the following:

• Random endowment audit results: Total endowments audited, Total awards and expenditures not aligned with MOU by College/Department and Division, and Overall outcomes of Compliance Standard IV.

• Compliance Standard outcomes: Non-Compliance issues by College/Department and Division, and Overall Compliance Percentage for all compliances standards I-V.

• Overall Endowment statistics: Overall Count of Endowments, Overall Available and Approved Spending, Unspent Amount by Compliance Outcome, Unspent Amount by Use Type, Total Scholarship Spending, and Total Unspent Overall.

• Performance Metrics and Graphs and Three/Five Year Comparisons: Overall Performance Outcome % - Spent, Exempt Spent, Compliant Spent, and Non-Compliant Unspent.

When is the annual compliance report provided?

The annual compliance report is provided annually in February/March.

Who receives the endowment activity report?

The college deans, divisional vice-presidents, the provost, and endowment compliance committee.

Annual Endowment Report

What is the annual endowment report?

The annual endowment report is an annual stewardship report providing the donor a summary of their endowment gift:

• Contributions: gifts added to the endowment during reporting year

• Corpus: base gift to the endowment

• Market Value: current fair value of the endowment

• Administrative Fees: allocable management costs

• Endowment Pay-Out: funds disbursed from the endowment during reporting academic year

• Scholarship Award/Program Support: funds awarded to students and/or utilized by department

• Thank-you Letters: scholarship recipient thank you letters to donors

• End-of-Year Fund Use Report: department summary of fund utilization for event, program, research and other endowment support funds.

When is the annual donor report provided?

The annual donor report is provided bi-annually mid-year and end-of-year (early June and November).

Who receives the annual donor report?

The main MOU contact: the original gift donor, donor’s next of kin or estate, or university administrator (on rare occasion)

SCHEDULES AND DEADLINES

Gift Compliance

The following table lists the annual projected schedule for Gift Compliance reports. *

Gift Compliance Report Name Released*

Endowment Distribution Report October-November

Endowment Activity Report: Fall October -November

Endowment Activity Report: Pre-Spring (Optional) December

Endowment Activity Report: Spring February

Endowment Activity Report: Pre-Summer (Optional) Mid-April

Endowment Activity Report: Summer June

Endowment Activity Report: Final (Gift Compliance Use Only) August

Non-Endowed Fund Balance Report: Fall Mid-November

Non-Endowed Fund Balance Report: Summer Mid-June

Annual Random Audit Report (Gift Compliance Use Only) July

Endowment End-of-Year Fund Use Report (to donors) September

Annual Donor Report Bi-annually (to donors) June and December

Annual Compliance Report: Preliminary (Gift Compliance Only) December

Annual Compliance Report: Final (Gift Compliance Only) January

Annual Compliance Report Summary: Review with Deans/Chair February

Department (College/Division)

The following table lists important due dates for the College/Division requests, payment, and report summarizing endowment fund use.

Department (College/Division) Request Name

Due

Development Foundation Disbursement Authorization Request: Monthly 20th of the month

Distribution Foundation Disbursement Authorization Request: Final June 30th

Payment of all current academic year scholarship awards June 30th

Expenditure/encumbrance of current academic year support funds August 30th

Endowment End-of-Year Fund Use Report (to Gift Compliance) September 15th

Scholarship Office

The following tables lists important deadlines established by the Office of Financial Aid and Scholarships, as per UPPS No. 02.05.01.

Scholarship Awarding Name

Undergraduate Scholarship Awarding

Deadlines

Incoming freshmen students March 15th

Inc oming transfer students May 1st

Returning students May 1st

Graduate and Certificate-Seeking

Incoming students March 31st

Continuing students May 1st

Please note: Scholarship Recipient Awards are paid 10-days prior to the start of each full Semester in mid-August for Fall, mid-January for Spring and mid-May for Summer.

(See REFERENCES for Scholarship Office UPPS and BOSS links and contact the Office of Financial Aid and Scholarships with any questions regarding the above.)

CONTACTS

Gift Compliance:

KIMBERLY GARRETT - Director, Gift Compliance

kg20@txstate.edu

512.245.2921

383 JC Kellam

MORGAN CRAWFORD-MOORE - Administrative Assistant III mmc220@txstate.edu

512.245.0853

380 JC Kellam

ANA MERAZ – Coordinator, Gift Compliance a_m671@txstate.edu

512.245.2943

384 JC Kellam

Gift Compliance Support Email: GiftCompliance@txstate.edu

Advancement Services:

SHALENA STELZIG- Director, Advancement Services rc46@txstate.edu

512.245.9648

329 JC Kellam

SHANEQUA TERRELL - Assistant Director, Advancement Services sct39@txstate.edu

512.245.1802

328 JC Kellam

Advancement Services Support Email: ua-support@txstate.edu

Financial Aid and Scholarships

J. C. Kellam, Suite 240

601 University Dr. San Marcos, TX 78666

Phone: 512.245.2315

Financial Aid and Scholarship Support Emails:

For Student Financial Aid: FinancialAid@txstate.edu

For BOSS Inquiries: BOSSscholarships@txstate.edu

For Scholarship Processing and *Banner code: scholarships@txstate.edu

*Note: Please contact Gift Compliance to request new or verify status of Banner fund codes for all donor gift funds, endowed or non-endowed.

Budget Office

In person: J.C. Kellam Building, Suite 820

Phone: 512.245.2376

Fax: 512.245.3983

E-mail: budget@txstate.edu

For Budget and SAP Training Refer to: How to request SAP Training in REFERENCES

REFERENCES

1. Access to Scholarship and Financial Aid for Scholarship for Departments

https://www.finaid.txstate.edu/for-departments.html

2. Access to Apply - BOSS information

https://www.finaid.txstate.edu/scholarships/boss.html

3. How to Create an Endowment.

https://www.ua.txstate.edu/ways-to-give/Endowments.html

4. How to request SAP Training

https://www.fss.txst.edu/budget/training/One-on-one-Training-Request.html

https://www.fss.txst.edu/budget/training/classes-and-sessions.htmll

5. University Policies. UPPS No. 02.05.01. University Scholarship Policy. Effective 11/01/2021

https://www.fss.txst.edu/budget/training/classes-and-sessions.html

6. University Policies. UPPS No. 03.05.01. Soliciting, Accepting and Processing Gifts and Grants from Private Sources. Effective 02/05/2018.

https://policies.txstate.edu/university-policies/03-05-01.html

7. University Polices. UPPS No. 03.01.09. Fiscal Responsibilities of Account Managers at Texas State. Effective 06/21/2021.

https://policies.txstate.edu/university-policies/03-01-09.html

RESOURCES:

Activity Report Glossary of Terms

Compliance Standard Example

Distribution Authorization Form

EOY Fund Use Report Guide

Activity Report - Glossary of Terms

Column Name Purpose

SAP Cost Center Department Cost Center as designated in SAP.

SAP Fund Account Endowment Fund Account as designated in SAP.

Banner Code Scholarship Banner Code designated to endowments that award scholarships, or other student awards as per MOU language, through Banner. This code identifies the scholarship in the BOSS.

Endowment ID

Endowment Name

College/Division

Endowment ID, unique identifier designated by either the University or Development Foundation for the endowment. MOU's are referenced by this ID.

Name of the endowment account as per the MOU.

Managing Department/School of the endowment funds.

Department/ School Managing Department/School of the endowment funds.

Use

FY Approved Distribution (Budget)

Identifies the purpose for endowment gift fund as per MOU language and donor intent: scholarship awards, research, or other department needs

Approved distribution amount, or spending budget, provided in the Endowment Distribution Report each October/November for current fiscal/academic year.

Beginning Fund Balance Beginning Balance on Endowment account at start of fiscal year, or September 1st.

FY Budget Distribution Distribution of approved budget for the endowment, current fiscal year.

Other Revenue Earned interest revenue on monthly carry-over balances in SAP fund account balances.

Overall Available IMPORTANT: This is the amount available TO SPEND (or total budget) for the current fiscal year.

Offer Amount Amount offered to scholarship recipients as recorded in BOSS and/or Banner.

Paid Amount disbursed to scholarship recipients in Banner.

Encumbered Amount pending disbursement to scholarship recipients in BOSS/Banner.

Other Expenses Department expenses, other than scholarship awards, this amount may or may not include all current encumbrances.

Important to Note:

NOT APPLICABLE TO DEVELOPMENT FOUNDATION SCHOLARSHIP USE ENDOWMENTS.

NOT APPLICABLE TO DEVELOPMENT FOUNDATION SCHOLARSHIP USE ENDOWMENTS.

ONLY APPLICABLE TO ENDOWMENTS THAT AWARD SCHOLARSHIPS

University managed endowments have a 10-digit endowment ID. i.e 6000711000 Development Foundation managed endowments have a 5 digit endowment ID, i.e. 67859 .

Note: 1. Approved budgets for the Development Foundation managed endowments are use it or lose funds Any unspent funds at the end of the academic year are returned to endowment. 2. University managed endowment funds may have a roll-over balance on unspent funds. 3. All endowment funds must spend in accordance to Compliance Standards for the current academic year. 4. Deadline to request disbursement of funds (if applicable) and award scholarships is June 30th.

NOT APPLICABLE TO DEVELOPMENT FOUNDATION SCHOLARSHIP USE ENDOWMENTS.

1. This amount is automatically populated with exception of Program Support Use Funds managed by the Development Foundation. These budgets must be requested via a Distribution Authorization Form 2. Development Foundation scholarship budgets are paid directly to the Student Business Services after the Financial Aid & Scholarship office awards recipients. 3. All University managed endowment budgets are deposited to the SAP Fund Accounts the first of September each academic year.

This revenue source is part of the Overall Available total affecting the compliance outcome of the endowment. Not all SAP fund accounts are interest generating.

Overall Available = Beginning Fund Balance + Budget Distribution + Other Revenue

Total in this column is equal to Paid + Encumbered column amounts.

An amount in this column indicates scholarship awards pending payment/disbursement to one or more selected recipients. Please review to ensure recipient met enrollment and all scholarship criteria as per MOU criteria.

Other expenses apply to non-scholarship type endowments These endowments will have an SAP fund account. It is important you review all open expense encumbrances.

Remaining Available as of MM/DD/YYYY

IMPORTANT: This is the remaining Available Balance for the endowment, also known as unspent funds. This balance is considered the total unspent amount that guides the endowment compliance outcome for CS-II - Excessive Unspent Funds.

Compliance Status Provides current compliance status based on Remaining Available Balance based on Compliance Standard II and III, Excessive Unspent and Overspent Amount - respectively.

Compliance Count Counts total Compliance "C" or Non-Compliant "NC" based on Compliance Status.

Follow-up Notes Provides a brief explanation of the current compliance outcome or any other important detail to the endowment account.

Legend Defines Color Key seen on report columns and Compliance Key.

Review Compliance Standards memo for more details.

An "E" status represents an exemption requested by the college dean or department chair and approved by the donor and/or compliance committee via the Director of Gift Compliance.

IMPORTANTINFORMATIONABOUTENDOWMENTCOMPLIANCE

Quick Note: As an account manager, budget analyst, scholarship committee member, or administrative support staff, youare an integral part of the Gift Compliance missionfor endowment compliance and donor satisfaction. Thank you!

PerformanceofstandardCS-II,CS-IIIandCS-IVaredirectlyalignedwithproperexpenditureandaccountabilityofannual endowedfundsdisbursedtoCollege,DepartmentandDivisionaccounts.

Informationoneachofthecompliancestandards,withscenarioexamples,arenotedbelowforguidanceandreference.

CS-II:ExcessiveUnspentBalance

1.ScholarshipUSE:Allowableunspentbalanceis10%,orlessthan,approveddistribution.

XExample1:$5,000approved,$4,450awarded,unspentbalanceof$550=Non-compliant

√Example2:$2,000approvedforscholarshipawardsand$1,900awarded,unspentbalanceof$100=Compliant

*Example3:$1,700approved,$1,700awarded,unspentbalanceof$0=SUCCESS!

**Spending100%ofapproveddistributionforscholarshipawardspromotesexcellentstewardshipofdonorfunds.**

2.Non-ScholarshipUSE:Allowableunspentbalanceis2xtheapproveddistribution.

XExample1:$15,000approved,unspentbalanceis$31,000=non-compliant.

√Example2:$45,000approved,unspentbalanceis$80,000=compliant.

Carryoverbalancesfrompreviousyeardisbursedfundswillaffectthecomplianceoutcomeofunspentfunds.Currentyeardisbursements willguidethe2xcompliancemeasure.

CS-III:OverspentAccount

AnyoverspendamountwillresultinaNon-CompliantoutcomeforbothScholarshipandNon-ScholarshipUSEendowments.

Example1:$10,000approvedforscholarshipawards,Fallawardis$5,050andSpringawardis$5,050.BudgetBalanceatendof fiscalyearis-$100=Non-compliant

Example2:$30,000approvedforprogramsupportfunds,previousyearcarryoverbalanceof$5,000,Totalavailablebalanceis $35,000,$42,000inexpendituresandencumbrances.BudgetBalanceatendoffiscalyeartotals-$7,000=Non-compliant

√Example3:RefertoCS-II,Section1and2(above)forCompliantexamples.

CS-IV:ExpendituresNotAlignedwithMOU

Scholarshipawardsandnon-scholarshipfundexpenditures(i.e.professorship,chair,research,programsupportorotherendowmentfunds), willalignwiththeintentanddistributioncriteriaasoutlinedbythedonorintheMOU.

Example1:MOUdistributioncriteriaisscholarshipstoaSophomore,PoliticalSciencemajor,enrolledfull-time.Recipientselected isaJuniorandenrolledin9hourswhenawarded=Non-compliant

Example2:MOUdistributioncriteriaistosupportgraduate/biochemicalresearchexpenditures.Aminifridge,plusalcohol,is purchasedforthedepartment'skitchenetteandascholarshipawardpaidtoanundergraduate=Non-compliant

√Example3:MOUcriteriaisforFreshmen,Englishmajorandallrecipientsmeetbothcriteria's.MOUisforresearchexpensesand suppliesandacomputermicrochipfordepartments'researchlabispurchased.Both=Compliant

EnsureacopyoftheoriginaloramendedMOUisavailable.Requestclarificationforlanguage/intentwhenneeded.Insomecases,awaiver orexemptionmayapplywithpriorauthorizationduetounforeseeneventsorextraordinarycircumstances.Pleaseinquire.

FinalNote:UPPS03.05.01,06.06g.states,"ForendowmentaccountswithexpendituresnotinaccordancewithMOUcriteriaorinexcessof availablefunds,theprovostmayrequirereimbursementfromtheaccountmanager,perUPPSNo.03.01.09,FiscalResponsibilitiesof AccountManagersatTexasStateorfromdepartmentalorcollegefunds."

INSTRUCTIONS - Please print or type

Texas State University- Development Foundation

Disbursement Authorization Request

A. Complete upper part of the form (refer to Glossary for section/ term details).

B. Sign and email form to GiftCompliance@txstate.edu or campus mail to JCK 380, Attn: Gift Compliance.

C. Checks are processed once a month. Deadline to submit requests is the 20th of each month. Last academic year request is June 20th.

D. Funds are posted to SAP ǂaccount number the first week of the new month (e.g. Funds requested in May will post the 1st week of June).

Request Date

Account Manager

Account Name

This is a Transfer

Check will be written to transfer funds to Texas State University

Paythe Attached Invoice(s) to

Endowment ID

Vendor Name

Contact Name & Phone

Campus Mail Address

‡SAP account balance can not exceed twice the approved distribution amount for the current academic year as it will be out of compliance for excessive unspent funds. This applies to Program Support, Chair, Professorship, and other endowments with non-scholarship use funds. (e.g. An endowment with approved distribution of $1,000 for the current academic year and SAP account balance of $3,000 at end of the fiscal year, is out of compliance.)

Note: The Development Foundation will not pay invoices for services or scholarships. If the Foundation processes more than three (3) checks per fiscal year for any account, an additional fee will be accessed for each check.

**Please attach receipts, invoices, statements,etc., as documentation.**

(in case ofquestions)

Account Manager Signature:

Project Description ‡Account Number

SAP Balance:

I hereby certify that this disbursement conforms to the criteria described in the Memorandum of Understanding, or other guiding documents for this fund. I also understand that prior to or contemporaneous with subsequent disbursement request, I will submit a report on the use of the funds I am now requesting . This includes receipts, invoices, statements, etc., as applicable. Additional funds will not be released until the report has been submitted.

Date:

Approved: Director, Gift Compliance

Approved: Accountant, Development Foundation

Approved:

University Support Total Amount

Verified by:

Transfer Total:

$0.00

Initial:

Date

Date

Executive Director,Development Foundation

Date Check

Form Section

Request Date

Meaning/Purpose

Date form completed

Academic Year The designated time frame for the approved endowment distribution.

Account Manager Name of individual delegated/assigned to authorized use of account funds.

Total Amount

Partial or all of the approved distribution budget as provided in the Endowment Distribution Report and Activity Reports.

Account Name Name of the endowment fund.

Endowment ID

Development Foundation project number given to the endowment fund.

This is a Transfer Check box to request transfer of funds to the endowment's associated SAP Fund Account.

Note

Reminder : Deadline for disbursement request is the 20th of each month, but no later than June 20th for current academic year. If date falls on the weekend, deadline is on the preceding Friday.

i.e. Fall 2021, Spring 2022, and Summer I & II 2022 are classified as academic year 2021-2022.

i.e. The dean, chair or director over the college/department or division responsible for the budget and account activity.

When in doubt, contact Gift Compliance via email.

Refer to "Endowment Name" on the Activity Report or Endowment Distribution Report.

Refer to "Endowment ID" on the Activity Report or Endowment Distribution Report, i.e. 68023.

This is the preferred method of disbursement.

Account Number SAP cost center and fund to the endowment. Refer to "SAP Cost Center" and "SAP Fund Account" on the Activity Report, i.e. 1321131000 4160261000.

Attention Name of account manager or assistant/budget analyst to be notified when funds are posted.

Pay the Attached Invoice(s) to Check box to request payment of invoice directly to vendor.

This is reserved only for services that require direct payment to vendors. Please contact Gift Compliance to acquire approval before this option is selected .

Vendor Name Name of vendor as seen on the service invoice. A physical check is issued. Please attach invoice copy and other support documentation.

Contact Name & Phone This will be the college/department/division individual submitting request.

Campus Mail Address Address where check will be delivered, when check is not mailed directly to vendor.

Account Manager Signature Account Manager approval is required on all Development Foundation endowment disbursement requests.

This is the dean, chair, faculty, or director managing the budget and account activity for the endowment. Note the EOY Fund Use Report requirement.

EnterDate

Formallyaddressthe donorandprovideastatement/messageof gratitude

Briefintroduction,includethefollowing:

Award/fiscal year and date range.

Example: Award/Fiscal Year 2023 (09/01/22 – 08/31/23)

Complete endowment name and endowment ID. Refer to the original MOU and Activity Report for this information.

Example: General Studies Undergraduate Education Studies (6000421000)

Paragraph summarizing how the department utilized and benefited from the endowment funds. What did the funds accomplish or how did the funds assist to forward the goals/mission of the department or holder?

Format Example:

During _________, the department of _________used funds for ___________ which improved/enhanced/assisted the program of _________as follows:

Summaryofexpenditurestoincludebutnotlimitedtothefollowinglist, (seeformatexample1and 2withblanks):

Events

c. Printondepartmentletterhead

Visitors Awards

d.Research

e.Other program expenses (supplies, salaries, stipends, etc.)

Example 1. Bullet format:

 The ______ awarded/funded/paid $_____ for _______ to continue serving Texas State University ________.

 Conference/research/supplies _______ for speaker/professor/faculty _______at event _________was funded with _______ funds.

 The department awarded/purchased ______ for the ______ contributions to improve/increase/benefit _________.

Example 2. Paragraph format:

The department did not request disbursement of endowment funds for the current academic year due to _________. Prior year funds were utilized as follows for current academic year: ___________. With approval of donor, funds were _________ and remaining funds will be allocated for _________ in the upcoming academic year.

6.TotalExpenditures:$

7.AccountManager SignatureandDateSigned

8.AccountManagerNameandTitle

9.DepartmentandCollege

10.Attachments: Includeanydocumentation,pictures,quotes,letters,etc. tosupportyour report/summary.