FAQ - FUNDRIVER

  1. How do you get access to FUNDRIVER?
  2. What is an Endowment Administrative Fee and how does it affect the spend calculation?
  3. Are there any exceptions to the new procedure where unused spend balances will carry over to the operating account? Can departments request that unused spend be added back to the principal?
  4. When showing the calculation of spend, it was an average of 13 periods.  Will spend calculation be the average of 13 months in the future?
  5. Departments use spend to help with budget forecast. How will this affect their forecast going forward?
  6. Is there a faster method to open new endowment projects? When does the clock start for new gifts to be in the capital pool for 12 months?
  7. What should departments do if they feel the Historic Gift for their endowment is incorrect or a department notices information on the Fund Summary screen is incorrect?
  8. If my endowment is underwater, does adding money to the principal help my fund?
  9. Are departments notified if their endowments are underwater, especially when an endowment is close to te 15% threshold?
  10. Do you need to tell the Controller's office if you plan to spend the principal?
  11. What is the ending contributed value on the Donor report?
  12. Will donor agreements be available in FUNDRIVER?

1. How do you get access to FUNDRIVER?

To get access to FUNDRIVER, fill out an access form which is located on the Controller's website in the forms repository.

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2. What is an Endowment Administrative Fee and how does it affect the spend calculation?

The Endowment Administrative Fee is a Board of Governors approved annual charge to every endowment that helps support the RU Foundation’s activities. The fee represents a 0.95% charge to the average market values of the pools over the past 13 fiscal quarters since the last closed fiscal year.

All fees and expenses, including the administrative fee, are taken into account when determining the Long-Term Investment Pool’s market value.

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3.Are there any exceptions to the new procedure where unused spend balances will carry over to the operating account? Can departments request that unused spend be added back to the principal?

Beginning July 1, 2019, any unused spend balances will be rolled over into a department’s operating account unless it is stipulated in the donor agreement to add any unexpended income to the endowment’s principal.

As of January 1, 2018, the language in donor agreements  states that unused operating income will remain in the operating fund. Only senior management at the university can decided to transfer back unexpended income to principal.

At the discretion of the University, unexpended income may also be added to the endowment’s principal.

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4.When showing the calculation of spend, it was an average of 13 periods. Will spend calculation be the average of 13 months in the future?

No. The reason for using the 13 fiscal quarter end periods (3 years) is to smooth out any big swings in market conditions over that time.

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5. Departments use spend to help with budget forecast.  How will this affect their forecast going forward?

Departments can use FUNDRIVER to view monthly spend in the next fiscal year (calculated on 6/30) and will be able to see the eligible spend date for funds held in the pool for 12 months.  

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6.Is there a faster method to open new endowment projects? When does the clock start for new gifts to be in the capital pool for 12 months?

The Controller’s Office has started working with the Foundation to open up projects sooner using a new temporary COA string to hold the Endowment. This allows the Foundation to send the funds they hold in their temporary accounts sooner. While these projects will be eligible to receive spend on July 1st, using this process in the future for new projects will get the clock starting sooner on the 12 month waiting period. Once departments give the Controller’s Office the correct accounting information, changes can be made in the chart of accounts and in FUNDRIVER to reflect the department’s COA string.

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7. What should departments do if they feel the Historic Gift for their endowment is incorrect or a department notices information on the Fund Summary Screen is incorrect?

Departments should write to fundriver@finance.rutgers.edu. The project team will review the endowment and make corrections if needed.

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8. If my endowment is underwater, does adding money to the principal help my fund?

There is no guarantee it will help. If the unit price at year-end is lower than the unit price when the funds were added, then that addition will also be underwater. Example: If $1,000.00 was added and the unit price was $5.00 per unit, 200 units would be added. If the unit price drops to $4.95 the next month those units are only worth $990.00 ($5.00 -$4.95 =.05; 200X.05 = $990).

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9. Are departments notified if their endowments are underwater, especially when an endowment is close to the 15% threshold?

Departments will not be notified, but can check the underwater report anytime in FUNDRIVER. The underwater report can be exported to excel and a department can calculate percentage by dividing the market value by the historical gift to determine if a fund is with the 15% threshold.

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10. Do you need to tell the Controller’s office if you plan to spend the principal?

Yes, for Quasi Endowments, withdrawals of principal must be proposed by the department after obtaining approval from the unit Chancellor at least six months prior to the proposed withdrawal date, by submission of a redemption plan to the University’s Controller’s Office.

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11. What is the ending contributed value on the Donor report?

The ending contributed value is the historical gift balance.

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12. Will donor agreements be available in FUNDRIVER?

Yes. In the near future, the project team will start scanning endowment documentation and adding it to FUNDRIVER.

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