How to interpret a Fund Balance report

Follow

Parameters

 

Parameter Name
Description
Example
Notes
Current Balances Runs the report based on the Fund's previous day's balance   There is no option to select a date other than the current date.
Month-End Balances The last date of a previous month 1/31/xx
2/28/xx
3/31/xx
4/30/xx
5/31/xx
6/30/xx
7/31/xx
8/31/xx
9/30/xx
10/31/xx
11/30/xx
12/31/xx
Any month/year can be selected, but it must be the last day of the month. If no date is selected or today's date, the report parameter will adjust to the most recent month end.

 

Report Details

Field Name
Description
Example
Notes
Fund Number Unique numeric identifier for the fund. 112003456 Funds beginning with 112 indicate callable funds

Funds beginning with 132 indicate endowed funds
Fund Name Full name of the fund associated with the Fund Number.

Department of Chemical Engineering Chair's Fund

Laura Nelson Kittleson Scholarship Fund 

 
Sort Name

Full name of the fund formatted as Fund Name, School/College/Department Name

or

Donor Last Name, Donor First Name Remaining Fund Name 

Chemical Engineering Chair's Fund, Department of 

Kittleson, Laura Nelson Scholarship Fund 

 
Start Date  Date the fund was established.

 

 
Unit The School or College associated with the fund. College of Engineering  
Department The Department within the School or College. Chemical Engineering  
Use

The use code denotes a general idea of how the fund can be spent based on the underlying agreement.

A=  Chairs and Professorships 

R= Research 

P= Programs 

C= Undergraduate Student Financial Support 

D= Graduate Student Financial Support 

E = Faculty Support 

G= Public Service 

H= Research Equipment 

J = Discretionary 

S = Professional Student Support 

Z=Other 
 
Fund Groups Groups funds with commonalities

Great People Scholarship

Resident and Fellowship Funds 
 
External Reporting Category Allows Schools/Colleges to classify funds according to their reporting needs.

ATH:Kohl Center Suites & Club Suites

EGR:Consortia 
Contact the Help Center to learn more.
Administrator Main WFAA fund contact.    
Principal Investigator UW-Madison faculty/staff person responsible for spending from the fund. Mainly applies to Research funds.    
Fund Class PERM – Applies to Endowed funds. Only spendable endowment income may be spent.

TEMP – Applies to Callable and Endowed Funds. Fund restricted to a particular purpose and may be spent in its entirety

UNRE – Mainly received through bequests and applies to Callable and Endowed Funds. Funds that are to be used for the greatest needs of the University and spent in their entirety.

Callable-TEMP 

Callable-UNRE 

Endowment-PERM 

Endowment-TEMP 

Endowment-UNRE 
 
Spendable Cash Represents funds that can be spent in accordance with fund purpose.     
Spendable Endowment Income Represents funds that have been transferred based on the spend rate allocation.     
Cash to be Endowed Represents donations received for endowed funds which will be used to buy units in the endowment pool during the quarter close cycle.  Such amount will be added to the Book Value of the fund.     
Outstanding Pledge Balance Represents amount remaining to be paid on original pledge amount.     
Estimated Annual Income

Step 1: Current Market Value divided by current unit value = Number of units


Step 2: Number of units multiplied by average income per unit times 4 (represents 4 quarters) =EAI excluding Cash to be Endowed Balance


Step 3: Cash to be endowed balance divided by current unit value = additional number of units


Step 4: Number of additional units multiplied by most recent average income per unit multiplied by 3 = EAI on cash to be endowed balance

NOTE: (represents the reality that such cash balances will not be endowed until the next quarter therefore 3 quarters of having units being invested in endowment pool)
Step 5: Total EAI = EAI calculated in Step 2 plus EAI calculated in Step 4 = total EAI

Step 5: Total EAI = EAI calculated in Step 2 plus EAI calculated in Step 4 = total EAI

Illustrative Example – Revised EAI calculation

Data points:

  • Current MV = $100,000
  • Current Unit Value = $1,173.5773
  • Average Income per Unit= $14.6838
  • Cash to be Endowed Balance = $12,000

Calculation:

Step 1: $100,000 / $1,173.5773 = 85.210 units


Step 2: 85.210 x $14.6838 x 4 = $ 5,004.83


Step 3: $12,000 / $1,173.5773 = 10.225 units


Step 4: 10.225 x $14.6838 x 3 = $450.43


Step 5: $5,004.83 + $450.43 =$5,455.26

Key Definitions:

Current MV = Represents the current market value. This value is the sum of the Book Value (1150) and Cumulative Fund Value Adjustment (1160) accounts.


Current Unit Value = Represents the most recent quarter end unit value. For example, if you are looking at the EAI on a fund on May 20th, the current unit value will be as of 3/31/xx the most recent closed quarter.


Average Income per Unit = Represents the 16-quarter average of unit values.


Cash to be Endowed Balance = Represents funds waiting to be endowed at the end of the quarter which are not included in the current market value.

Endowment Book Value Represents gift received into the fund as well as funds moving into a fund via an accounting transfer.    
Cumulative Fund Value Adjustment Represents the earnings (including unrealized gain/loss) of a fund.

 

 
Total Endowment Market Value Represents the sum of a fund’s Book Value and the Cumulative Fund Value Adjustment accounts.

 

 

 

Was this article helpful?
0 out of 0 found this helpful

Comments

Powered by Zendesk