Money Market System
The UNC-Chapel Hill Money Market System is the official University mechanism for recording activity in Temporary Pool and STIF accounts, including purchase and sale transactions, distribution of investment earnings, and reports to individual participants. The investment year for both funds runs from June 1st to May 31st, with earned income distributed on a quarterly basis during the months of June, September, December, and March, for the quarters ended May, August, and November, and February, respectively. Departmental requests for both purchase and liquidation from the money market fund should be made electronically using the Online Journal Entry System.
State Treasurer Short-term Investment Fund (STIF)
The State Treasurer of North Carolina has established and manages the STIF account. Investments in the fund are made pursuant to General statutes 147-69.1.
STIF Invested Funds include institutional trust funds as defined in GS 116-36.1 and includes sponsored research funds and trust funds. The distribution rate to eligible accounts invested in STIF is generally the quarterly compounded rate of return earned by the State Treasurer of the fund, as reported by its office. However, the rate may be changed from time to time by the Vice Chancellor for Finance and Administration in order to provide sufficient income to meet ongoing commitments from unrestricted sources.
Endowment Funds
Endowment funds result from donations where the principal is to remain intact and be invested to produce income that may be expended or reinvested. In other words, the gift exists in perpetuity. Endowments can be funded by one gift or several gift installments over time. The solicitation of University endowment funds is usually coordinated through the Office of University Advancement. Solicitations of endowments held in affiliated foundations are usually coordinated by that foundation.
Establishing University Endowment Account
University departments may be approached by prospective donors of endowment funds. Departments should make arrangements for the prospective donor to meet with the Director of Planned Giving, Development Office, who will represent the University in the establishment of the endowment. An instrument, a gift agreement, will be prepared incorporating the terms of the endowment to the satisfaction of the donor and the University. The Development Office will provide the documentation and instructions to Accounting Services for establishing the university endowment account. Endowment accounts are comprised of a principal account and an income account, and income account is used for spending. Endowment gifts are invested in the University of North Carolina at Chapel Hill Foundation Investment Fund, Inc. (Investment Fund) and income is distributed annually in June.
Endowment Investment Return
Substantially all of the investments of the University’s endowment funds are pooled in The University of North Carolina at Chapel Hill Foundation Investment Fund, Inc. (Investment Fund). Investment return of the University’s pooled endowment funds is predicated on the total return concept (yield plus appreciation). Annual distribution (payout), typically in June, is made from the Investment Fund to the University’s pooled endowment income accounts based on the adopted distribution policy. Each year’s distribution is subject to a minimum of 4 percent and a maximum of 7 percent of the pooled endowment fund’s average market value for the previous year.
Reinvesting Endowment Income
All endowment income accounts can either choose to spend available resources or reinvest by transferring those funds back to the principal account for participation in the Investment Fund.
Stewardship Reports
Fiscal year-end reports that include book, market value and fund performance for each account participant in the Investment Fund.
Unit Accounting System (UAS)
Unit Accounting System maintains the market values and other information for University endowments and funds of affiliated entities that invest through the UNC-CH Foundation Investment Fund, Inc.
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