Policies and Procedures
Technical Services
Document: Endowment Policy
Date: rev. March 26, 2003; rev. December 21, 1999
Effective: Immediately
Revised by: CPD
Questions are often received about the Libraries' current policy on endowments specifically concerning the return of the unencumbered/unexpended balance to the principal at the end of each fiscal year.
In general, the income from endowment funds is to be encumbered and expended each fiscal year. Funds are usually deposited by the University in our accounts in the General Ledger report dated July 30. That income is then deposited in the individual funds in the OSCAR system no later than September 1.
Collection managers are advised on a monthly basis of the status of their current, unencumbered balance via the OSCAR accounting reports. This information is also available online at any time. Orders may be submitted throughout the year, but the return of principal will be done sometime in early June. Placing the orders sooner in the year gives the Monographs Department a chance to place the orders and receive as many invoices as possible before June. It also allows the Libraries to keep money on hand to pay for price increases etc. before the remaining funds are returned to the principal.
In addition, the Assistant Director for Technical Services and Collections encumbers the unexpended balances (in the University's General Ledger) for which we have orders outstanding at the end of each month so that an accurate picture of our obligations appears in the University General Ledger.
In addition, a special effort is made each May to notify the University Treasurers' Office of these encumbrances to ensure that these funds are not returned to the principal by default.
General policy:
| Income from endowment accounts is to be expended or encumbered no later than May 1 of the year. Money not encumbered or expended by the end of May will be returned to the principal of the endowment at the end of the fiscal year. Money is not held over from one year to the next except where a specific purchase is already in process or other special circumstances exist. These exceptions must be reviewed and approved by the Assistant Director for Technical Services and Collections. |
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