The Monthly Ledger
A publication by the USM Foundation's Business Office
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Important Dates

3/17-3/18: The USM Foundation office will be closed for Spring Break. There will be no check run the week of the 17th and all disbursement requests received prior to the 1:30pm deadline on Thursday, March 20th will be processed on Monday, March 24th. 

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Please remember to include original supporting documentation when sending a Disbursement Request Form (DRF) for items such as membership dues, magazine subscription renewals or invoice payment. 


Please also include a copy to be sent with the check. The copy for the payee should be marked as such either by noting in the business purpose of the DRF or flagging it with a post-it note.


Many vendors receive payment and are unsure how to apply the credit appropriately after receiving a check without any documentation. It is the requestor's responsibility to make sure there are copies made of any documentation that needs to be sent with the check. 


As always, your support and assistance is appreciated. 

 March 12, 2014
What's New!


Spendable Income, Part II


On February 21, 2014 the USM Foundation Board of Directors approved an endowment spending rate of 3.9% for fiscal year 2015. This spending rate is an increase from the 3.75% rate of 2014. This higher spending rate, in combination with increased market values and a significant decrease in accounts that are underwater, will result in a 13.8% increase in overall spendable income available from endowment accounts in fiscal year 2015 over fiscal year 2014. This will result in an additional $1 million available for scholarship, faculty, and program support across the various system schools supported through the USM Foundation.


The spending calculations for FY15 were emailed to account administrators and department heads during the last week of February. Please let us know if you did not receive your calculations.

Answers to Last Month's Quiz!

We had a number of people who correctly answered all of the questions from the last newsletter. The winner of the drawing was Liz Murray. Liz works in the System Office and administers a number of Foundation scholarship endowments.

Congratulations Liz!

  1. A new endowment was established in July 2013. Will this endowment receive any spendable income for fiscal year 2015?

    No. Spendable income is only calculated on accounts that have been established for more than a year when the new fiscal year starts on July 1st. An account established in July 2013 is less than a year old and would not receive spendable income for FY2015.

  2. Spendable income is calculated by multiplying the board approved spendable income rate by the market value at a certain date. For fiscal year 2015 what market value date will be used for the calculation?

    December 31, 2013.

  3. What document can specify exceptions to our normal spending policy for a particular endowment? Hint - this document also designates the purpose of the endowment.

    The spending policy is applied uniformly across all endowments unless the Memorandum of Understanding (MOU) specifically spells out an exception. Any exceptions documented in the MOU will take precedence over standard policy and calculations.

  4. What is the term used to describe an endowment where the market value is less than the historic gift value?

    Underwater - it is also ineligible to receive spendable income.

  5. An endowment need to have a minimum market value before it is eligible to use spendable income - yes or no?

    Yes - for most of our endowments, the minimum is $10,000, however some schools raised their minimum to $25,000.

  6. What USM Foundation tool can be used to track your endowments, your available spendable income, what you've spent or encumbered against your spendable income, and your spendable income for the next fiscal year?

    The Administrator Dashboard. If you are not yet using Dashboard, look for upcoming announcements in our newsletter or website about future training sessions.