Started By
Message
re: SEC University Endowments - FY 2016
Posted on 2/10/17 at 12:22 pm to KelticMonday
Posted on 2/10/17 at 12:22 pm to KelticMonday
quote:
You have literally gone insane.
Poor guy
1
Posted on 2/10/17 at 12:25 pm to Triple Daves
quote:
Schools don't get to decide what are and aren't endowments, except for board-restricted endowments which are recorded separately. Donors do. Endowments are the most important long term investment a college has because it generates income yearly. It is literally the gift that keeps on giving. That is why it is generally used as one of the main metrics for measuring a school's non-government financial standing. It is always why almost all schools, short of an immediate need or campaign, beg large donors to make their gift an endowment if they do not have a specific "build/spend now" purpose.
Gifts to an individual Dept are not included as an Endowment, but serve the same function. The difference is they are earmarked for that individual Dept and are not counted as a School Endowment. AU decided that instead of increasing the School Endowment, they would allow each Dept to run their own campaign. In truth it is apples to apples, but publications look at it differently.
Posted on 2/10/17 at 12:29 pm to Irons Puppet
quote:
Gifts to an individual Dept are not included as an Endowment, but serve the same function
Depends on the gift. You can endow gifts to a department for scholarships, general future spending, chairs, visiting professorships, etc.
However, during most project capital campaigns, gifts are not usually requested to be endowments because they want all of your gift to be spent up front on the project.
However, if Auburn's various colleges have their own individual endowments (which is how most schools work, anyway), no matter the department, they are rolled up into the overall school endowment on the Foundation's financial statements. No ifs, ands or buts about it. It's required.
This post was edited on 2/10/17 at 12:30 pm
Posted on 2/10/17 at 12:31 pm to Triple Daves
Wait wasn't this the Cameron thread?
Posted on 2/10/17 at 12:31 pm to cas4t
quote:
Wait wasn't this the Cameron thread?
The other one that looks just like this by Keltic is. For some reason he changed it to first look like the "SEC Alumni" thread and then this one.
No clue.
Posted on 2/10/17 at 12:33 pm to Triple Daves
This post was originally about James Cameron, and now it's completely different. What the frick is going on.
Posted on 2/10/17 at 12:33 pm to Irons Puppet
.
This post was edited on 2/10/17 at 12:35 pm
Posted on 2/10/17 at 12:34 pm to RT1941
quote:
What makes you think the 2016 University Endowment figures listed in the OP includes income from individual Departments?
If they don't then they've got problems
Posted on 2/10/17 at 12:36 pm to RT1941
dp
This post was edited on 2/10/17 at 12:37 pm
Posted on 2/10/17 at 12:37 pm to Triple Daves
Huh, I posted in the wrong one too 
Posted on 2/10/17 at 12:38 pm to Triple Daves
quote:
However, during most project capital campaigns, gifts are not usually requested to be endowments because they want all of your gift to be spent up front on the project.
Two separate campaigns. Capital Building Campaigns are handled totally different. And no, the individual department money is not considered an endowment fund. If you notice, AUs endowment figures are the same the last few years, however they just accomplished a $1B campaign. Keep in mind AU doesn't currently have a building campaign on going. Some people within the University have complained about how the money is being published.
Posted on 2/10/17 at 12:42 pm to Irons Puppet
quote:
And no, the individual department money is not considered an endowment fund.
If the gift was determined to be an endowment (the legal term endowment, the gift (corpus) is not allowed to legally be used and only the proceeds may be used for the purpose given) then it must be included in the University endowment figures. It's the law.
Now, people may have may restricted gifts, unrestricted gifts, whatever, and that's fine. That isn't the endowment. It may be restricted money for a purpose, but it isn't an endowment. Totally separate thing. My totally ignorant of the situation guess would be that the complaints are about the restriction of the funds, and the way it looks to the public (schools don't like to appear to have a lot of unrestricted cash sitting around because it looks like they aren't being good stewards). In addition, a lot of departments get in fights about whether the money is "technically" restricted for their department or a specific purpose (a new chair, salaries, new classes, etc) within the department. The latter gives the department no say in how to use it, the former gives them all the say. It's a big difference, obviously.
Long story short, though, if something is legally an endowment it has to be included in the endowment footnote and as an endowment on the financials. It's illegal otherwise.
This post was edited on 2/10/17 at 12:44 pm
Posted on 2/10/17 at 12:44 pm to Triple Daves
quote:Link /
If the gift was determined to be an endowment (the legal term endowment, the gift (corpus) is not allowed to legally be used and only the proceeds may be used for the purpose given) then it must be included in the University endowment figures. It's the law.
The main reason you see it published a certain way is because some schools use it for the annual rankings by publications.
This post was edited on 2/10/17 at 12:47 pm
Posted on 2/10/17 at 12:48 pm to Irons Puppet
quote:So aTm just wants to appear to swing the biggest dick in the SEC for the appearance in the annual ranking by publications?
The main reason you see it published a certain way is because some schools use it for the annual rankings by publications.
This post was edited on 2/10/17 at 12:50 pm
Posted on 2/10/17 at 12:50 pm to Irons Puppet
quote:
Link /
I mean - do you want to go over the GAAP requirements for Endowments?
Posted on 2/10/17 at 12:51 pm to RT1941
quote:
So aTm just wants to appear to swing the biggest dick in the SEC for the appearance in the annual ranking by publications?
They are not one of those schools. Most people know where the TX schools get their money from.
Posted on 2/10/17 at 12:52 pm to Triple Daves
quote:
mean - do you want to go over the GAAP requirements for Endowments?
Quick link. I'll do my own reading.
This post was edited on 2/10/17 at 12:53 pm
Posted on 2/10/17 at 12:52 pm to RT1941
quote:
So aTm just wants to appear to swing the biggest dick in the SEC for the appearance in the annual ranking by publications?
I think A&M's endowment is the largest in the conference, but all they can seem to do with that money is churn out more aggies.
Posted on 2/10/17 at 12:55 pm to Irons Puppet
quote:
So aTm just wants to appear to swing the biggest dick in the SEC for the appearance in the annual ranking by publications?
quote:So, how do we find out which schools are cooking the books just for appearance purposes for the annual publications, and which one's really are loaded?
They are not one of those schools. Most people know where the TX schools get their money from.
Posted on 2/10/17 at 12:56 pm to Irons Puppet
quote:
Quick link. I'll do my own reading.
McGladrey Endowment Summary White Paper
FASB 958
There aren't many quick links. It's a pretty complicated subject, even for professionals who only deal with it. However, the baseline definition of a donor intended endowment is pretty black and white, as is the requirement for where it is to be reported.
This post was edited on 2/10/17 at 12:59 pm
Page 4 of 7
Popular
Back to top
Follow SECRant for SEC Football News