FREQUENTLY ASKED ENDOWMENT QUESTIONS
Q.
I'm searching for an endowment account that begins with 072xxx, but I
can't find any results?
Q.
What are the campuses associated with each campus code?
Q.
How can I find the corresponding endowment account for an account that
receives endowment distributions?
Q.
If I know the endowment account number, how can I find out where the
distributions are being posted?
Q.
What does "APPREC RESERV" stand for and what does it mean?
Q
How can I budget for an account funded by an endowment?
Q.
How can I determine the total distributions to the endowment spending account for
a particular fiscal year?
Q. I’m searching for an account that has only 5 digits, but I can’t find any results?
A. Texas A&M Foundation accounts are 5 digits for both endowed and non-endowed accounts. The Foundation is a separate 501 (c)(3) organization whose mission is asset management and fundraising for Texas A&M University. Please contact the Texas A&M Foundation at (979) 845-8161 to get more information or visit their link at http://www.tamu.edu/foundation.
Q. What are the campuses associated with each campus code?
A. A list of campus codes, campus abbreviations, and campuses can be found at http://endowments.tamu.edu/faq/campuses.htm. There is also a link to this webpage on each endowment search page. Simply click on "Campus Code:" to open the campus web page in a new window.
Q. How can I find the corresponding endowment account for an account that receives endowment distributions?
A. Go to FAMIS Screen 6. Type in the SL account number and find the field labeled "Fund Source". This field shows the fund source (01 for endowment income) and endowment account number (074xxx or 076xxx).
A. Go to FAMIS Screen 4. Type the endowment account number. You will see the "Endowment Earnings Distribution". This will show the account(s) receiving distributions from the endowment and the percentage distributed to each account.
In the example below, 100% of the earnings distribution from endowment 074213 are posted to 650779:
Q. What does "APPREC RESERV" stand for and what does it mean?
A. "APPREC RESERV" stands for Appreciation Reserve. It is a reserve account for the System Endowment Fund. All gains and losses are recorded to the Appreciation Reserve. Quarterly transfers from the Appreciation Reserve to the endowment spending accounts are a component of the quarterly endowment distributions. These transfers are posted as budget increases to the spending account.
Q. How can I budget for an account funded by an endowment?
A. The easiest way is to look at the prior year’s distributions and use that as an estimate. Since distributions are based on the average market value over the last 20 quarters, distributions should remain fairly consistent from year to year. Keep in mind that if funds are added to the endowment during the year, then distributions will increase accordingly.
A. This question can best be answered by showing an example:
STEP 1
Look at the spending account on Screen 19 and note the balance in account control 0395 (make sure you are in Month 13). Looking at the example below, account 650779 has $7,885 in Endowment Income for FY98. This represents the interest portion.
STEP 2
Go to Screen 23 and type the spending account number followed by 1000. This will show the amounts transferred from the Appreciation Reserve. Each quarter, distributions are calculated by taking 5% of the 20 quarter rolling average market value and dividing by 4 to get the quarterly payout amount. The difference between the calculated quarterly payout and the interest distributed in STEP 1 is the amount to be transferred from the Appreciation Reserve.
Looking at the example below, quarterly Appreciation Reserve transfers for FY98 for account 650779 were as follows:
| 1st Qtr | $1,062.94 |
| 2nd Qtr | $1,037.20 |
| 3rd Qtr | $1,418.35 |
| 4th Qtr | $821.66 |
| TOTAL | $4,340.15 |
(NOTE: In FY98, Appreciation Reserve transfers for quarters 2-4 were restated. Some of the entries made were backed out and corrected. Make sure to look at the corrected amounts. )
STEP 3
Add the interest and transfers from Appreciation Reserve computed in Steps 1 and 2.
Following the example, total FY98 endowment income for account 650779 for FY98 is $12,225:
| STEP 1 Interest | $7,885 |
| STEP 2 Appreciation Reserve (Gains) | $4,340 |
| TOTAL FY98 Endowment Income | $12,225 |