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Procedure: E Fund governance

Purpose

To outline the procedures by which the University manages special purpose funds within the ANU Endowment for Excellence.

Definitions

The ANU Endowment for Excellence is the framework established under section 10 of the Australian National University Endowment for Excellence Statute 2012, to manage monetary gifts that, once received, are owned and controlled absolutely by the University.

E Fund is a special purpose fund within the ANU Endowment Fund for Excellence, and therefore allocated to the E ledger segment (as defined in the Special Purpose Funds Procedure).

Procedure

Establishment

  1. Upon receipt of a monetary gift accepted by the University, an E Fund is assigned or established within the ANU Endowment for Excellence.
  2. A newly established E Fund is designated as either a Perpetual Fund (Endowment), Term Fund (Spend Down), or Term Fund (Growth).
  3. Perpetual Funds (Endowment):
  1. have a minimum establishment threshold determined by the asset level required to fund the supported activity in perpetuity;
  2. are invested in units in the Long Term Investment Pool and have a nominal gift preservation level and operating capital preservation level; and
  3. are managed in accordance with the University’s Special Purpose Funds Policy and Procedure and subject to the University’s Deemed Return Rate and Annual Distributable Amount.
  1. Term Funds:
  1. are not held in the Long Term Investment Pool;
  2. are either fully expended within a specified timeframe (Spend Down), or receive further gifts (Growth) with the aim of converting to a Perpetual Fund (Endowment);
  3. are managed in accordance with the University’s Special Purpose Funds Policy and Procedure; and
  4. are disestablished once funds are expended or conversion to a Perpetual Fund (Endowment) occurs.
  1. Upon establishment of an E Fund, the University records the administrative terms of acceptance of the gift/s in the current, approved pro forma Fund Purpose Statement.

Matching agreements

  1. The University only contribute funds to an E Fund under the terms of an approved gift matching agreement.
  2. Matching agreements:
  1. may be proposed only during the period of solicitation of a gift;
  2. are not entered into retrospectively; and
  3. do not compromise the University’s operating cash reserves, the discretionary investment income on those cash reserves, or University financial performance targets.
  1. College Deans or Service Division Directors endorse and submit matching agreements on the approved pro forma Gift Matching Proposal to philanthropy@anu.edu.au. Matching agreement proposals are endorsed by the Deputy Director (Operations), Alumni Relations & Philanthropy, before transmission to the Chief Operating Officer for approval.
  2. The University contributes monies under a matching agreement only after receipt of the associated gift or bequest.

Financial management

  1. Additional gifts (or monies contributed by the University under the terms of a matching agreement):
  1. are assigned to an existing E Fund;
  2. are managed in accordance with the terms outlined in the Fund Purpose Statement;
  3. may be directed to convert a Term Fund to a Perpetual Fund (Endowment), on the basis of an agreed, actionable fundraising plan and timeframe within which to meet the minimum establishment threshold.
  1. The designated College Dean or Service Division Director holds authorisation for expending monies from an E Fund within the ANU Endowment for Excellence. The designated Deputy Vice-Chancellor holds authorisation over all University-wide E Funds. The Vice-Chancellor holds authorisation over all unrestricted gifts to the University and the ANU Fund.
  2. The University does not apply merchant fees to any gifts or Fringe Benefit Tax expenses to E Funds within the ANU Endowment for Excellence.

Review and adjustment mechanisms

  1. The Alumni Relations & Philanthropy Division oversees governance of the ANU Endowment for Excellence and conducts a review of all E Funds as part of the annual budgeting process.
  2. College Deans and Service Division Directors provide an annual report to the Alumni Relations & Philanthropy Division on the activities of each E Fund as part of the annual budget and review process.
  3. The Alumni Relations & Philanthropy Division reports quarterly on the financial position of the ANU Endowment for Excellence to the Board of Governors, and annually via the Report to Donors.
  4. College Deans, Service Division Directors or the Deputy Director (Operations), Alumni Relations & Philanthropy can initiate review of an E Fund if:
  1. the E Fund has not been utilised for two years or more;
  2. the University can no longer fulfil the intended purpose either financially and/or academically;
  3. there is conflict between the University and the donor; or
  4. the gift or donor brings the University into disrepute.
  1. If future unforeseen circumstances cause the University to be unable to fulfil the fund purpose as outlined in the Fund Purpose Statement (e.g. the subject area is altered or removed from the ANU academic plan), the principal and income of the fund is directed to an activity in the relevant area deemed most consistent with the wishes of the donor. Donors (or their families) are consulted, College Deans or Service Division Directors endorse, and the Vice-Chancellor approves any changes to purpose.
  2. The Deemed Return Rate is reviewed and set on an annual basis by the Investment Office. Perpetual Funds (Endowment) that can no longer support their purpose following any adjustment to this rate are reviewed and an expenditure plan approved for the following budget cycle by the Deputy Director (Operations), Alumni Relations & Philanthropy.

Information

Printable version (PDF)
Title E Fund governance
Document Type Procedure
Document Number ANUP_016216
Version 1
Purpose To outline the procedures by which the University manages special purpose funds within the ANU Endowment for Excellence.
Audience Staff, Affiliates, Alumni
Category Administrative
Topic/ SubTopic Community & Development - Endowment
 
Effective Date 26 Jul 2017
Review Date 26 Jul 2020
 
Responsible Officer Director, Alumni Relations and Philanthropy
Approved By: Vice-Chancellor
Contact Area Alumni Relations and Philanthropy
Authority The Australian National University Endowment for Excellence Statute 2012
The Australian National University Endowment for Excellence Rules 2012