Fundriver and UAS Accounting and Reporting Comparison
Fundriver provides accounting and reporting for endowments invested in the UNC-Chapel Hill Foundation Investment Fund, Inc. (CHIF). Fundriver tracks the contribution value, market value, gift additions, annual distribution amounts and fees by individual endowment invested in CHIF. While most of the accounting and reporting processes in Fundriver are the same as they were in the former Unit Accounting System (UAS), below are some differences that provide more transparency and improved reporting.
- Fundriver’s endowment market value isn’t reduced by the monthly payout accrual (CHIF Board of Director approved annual distribution rate allocated monthly). The full value of the endowment is recorded and reflected in the endowment’s market and unit value. At fiscal year-end in June, the annual distribution will liquidate units to withdraw the funds from CHIF. UAS RPT100 reduced the overall market value by the accrual amount which also reduced the unit value on RPT160. Units were not liquidated at year end to raise funds for the annual distribution in UAS. See example below outlining the different calculation methods for UAS and Fundriver.
Different Calculation Methods for UAS and Fundriver Accounting System Source Beginning Month Units Beginning Month Unit Value Beginning Month Market Value CHIF Approved Monthly Payout Accrual Total Monthly Payout Accrual Ending Month Unit Value Ending Month Market Value UAS 7xxxx 10 $10,000 $100,000 $50/unit $500 $9,950 $99,500 Fundriver 7xxxx 10 $10,000 $100,000 $50/unit $500 $10,000 $100,000
- Fundriver records and reports the CHIF fee assessed to individual endowments for development services separately from investment gains/losses. This amount is then recorded in Peoplesoft with account 559138. UAS recorded this fee as a reduction in market value and the amount in Peoplesoft was recorded as unrealized gain/loss. Recording and reporting the development fee separately provides more transparency. See example below comparing differences between UAS and Fundriver.
Differences Between UAS and Fundriver Accounting System Source Beginning Month Market Quarterly Development Fee Ending Market Value Peoplesoft Journal Entry UAS 7xxxx $100,000 $250 $99,750 Fee amount not recorded separately but as part of overall unrealized gain/loss – Debit $250 to unrealized gain/loss Account 474120/559230, Credit Account 122104 Fundriver 7xxxx $100,000 $250 $99,750 Debit $250 to Account 559138, Credit Account 122104
- Fundriver tracks an endowment’s voluntary reinvested income values through its source code followed by -RI. The “Historical Gift and Market Value” report breaks out the contribution and market value by principal source and reinvested income source per endowment. The “Market and Contribution Values By Source – Custom” report combines the principal and reinvested income amounts.
- Fundriver tracks university endowments that participate in the Real Estate Investment Pool using its source code followed by -RE (participating endowments only include those endowments that were active when Bolin Creek East and West properties were purchased).
- The estimated payout column on the “Market and Contribution Values By Source – Custom” is dynamic rather than static and factors in additions and withdrawals through the fiscal year.
- Actual accrued distributions are reported on the “Spending Bucket Report” and included in the market value of the endowment until withdrawn. Total annual distribution amount will be withdrawn in June at the May CHIF unit value.
- UAS RPT100 reported the endowment’s market value after the monthly payout accrual was allocated. RPT100 also included new additions that bought in at the ending unit value of the Chapel Hill Investment Pool. Fundriver includes the monthly payout accrual in its market value and monthly unit value and doesn’t include new additions until those additions are reflected in CHIF’s reported value from UNC Management Company.