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Business and Financial Policies and Procedures

Section 11.10 - Expenditure of Gift Funds

Gift funds, both endowed and current use, are to be coded and used for the purposes communicated by the donor when making the gift. The University and the University of Illinois Foundation (UIF) are committed to properly administering the donor's gifts according to their wishes. The donor intent purpose codes and related definitions and expenditure guidelines are included in the following attachment: Purpose Codes and Definitions . To determine which set of donor intent purpose codes are currently assigned to a Banner gift fund, use the FTMFATA form in Banner. The FZMFUND form in Banner is used to determine which program code is currently assigned to a Banner gift fund. To determine which set of donor intent purpose code are currently assigned to a Foundation gift fund, refer to the UIF Online Web Site. The online system can show which Banner C-FOAP string is tied to a particular Foundation gift fund (Bluestem log in required).

Unit Responsibilities

University department and unit heads are responsible for ensuring the proper expenditure of gift funds at their disposal. This includes the following:

  • Assure that the funds are expended in a timely manner and in accordance with the intent of the donor.
  • Verify that gift funds have been properly established and correctly coded with the proper program and donor intent codes in the University accounting system.
  • Provide courtesy, non-technical, and informational reporting of the use of gift funds to donors as requested or as required by the fund agreement.
  • Assure that all transfers of gift funds are in compliance with donor intent restrictions and fund accounting rules. University endowment income funds and funds received from the UIF as distributions of either gifts or UIF-held endowment income may not be intermingled.
  • When gift funds are not being expended on a timely basis and become inactive, units should review the purpose of the gift for ways it may be expended. If the funds cannot be used in a manner consistent with donor restrictions, the unit should discuss possible alternatives with the appropriate campus development office per the process outlined in Section 11.9, Endowment Administration.
  • When gift funds are fully expended, any remaining encumbrances should be cancelled, and the unit should work with the Office of Business and Financial Services (OBFS), University Accounting and Financial Reporting (UAFR), University Accounting Services to close and terminate the fund.

For questions and other information about the expenditure of gift funds, contact the University Accounting Services.

UIF and University of Illinois System Offices Responsibilities

To ensure the proper expenditure of gift funds, the University and the UIF perform the following:

  • Review by the Office of University Audits or the OBFS of the Annual Fiscal Control and Internal Auditing Act (FCIAA) questionnaire completed by the College Administrative Units.
  • Conduct annual donor intent audits by the Office of University Audits.
  • Record and report on gifts in accordance with fund guidelines by UIF Gift Administration Offices.
  • Ensure UIF and Banner gift funds are established with the correct set of program and donor intent codes.
  • Conduct education and awareness programs for campus units by University and UIF personnel.
  • Conduct expenditure review by University Accounting Services.

For questions and information about donor intent compliance, contact the UIF Gift Administration Offices or the University Accounting Services. See Section 11.1, University Gifts for further details on these responsibilities.

 

Please send questions regarding this policy manual to OBFSPolicies@uillinois.edu.

Last Updated: January 9, 2017 | Approved: Senior Associate Vice President for Business and Finance | Effective: April 2007

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