December 12, 2024
The Financial and Accounting Services team is issuing the following clarification regarding the use of funds associated with departmental gifts and endowments projects. Departments are authorized to utilize gifts and endowments funds for eligible expenditures in accordance with the purpose of the department, program, or project, provided the expenditures align with the intent of the donor.
Please note the following important updates:
-
Gift and Endowment Review: All gift and endowment projects have been reviewed in the Oracle system and are now ready for validation by Campus Fund Managers. The Foundation Accounting team will ensure that all conversion data from the legacy system into Oracle and income data (payout and new gifts) are appropriately earmarked into the correct project. However, the Foundation Accounting team cannot validate the accuracy of any expenditures posted. As the experts in each program/department/school, designated department staff need to confirm that all expenditures activities posted to the specific gift project are appropriate to the funding source.
-
Budget Transfers: Effective December 16, 2024, Budget Transfers will no longer be utilized as the primary tool to move dollars between non-Regental endowment projects.
-
To move funds between gift projects, submit a request for a transfer of actual expenditures via a Financial Journal Entry ticket.
-
To allocate funds to a new/existing gift project where no expenses have actually occurred, submit a request for a transfer of actual funds (not budget) via Financial Journal Entry ticket.
-
Budget transfers will only be permitted for projects under Fund hierarchy 1010C and 7000C and will be allowed only after the review of gifts and endowments is complete. Please ensure that the funds transferred via budget entry remain within the designated project value(s) and fund number.
-
-
Expenditure Transfers: All movement between gift projects that reside in fund hierarchy 1000C and 6000C require a transfer of actual expenditures via the submission of a Financial Journal Entry ticket.
Next Steps
As part of this ongoing validation process, Zoom meetings will be scheduled starting in January 2025 with impacted departments and Aimee Tatum, Lead Foundation Accountant, to review the reconciliations of departmental gifts and endowments. These meetings are crucial to ensure that all expenditures comply with the established guidelines. The Financial and Accounting Services team appreciates your dedication to supporting our university's mission and looks forward to collaborating with you.
If you have any immediate questions, please feel free to contact Aimee Tatum (atatum2@ucmerced.edu) in Financial & Accounting Services.
Categories:
