INSIDE IOWA STATE
November 9, 2001
First endowment review team has begun its work
by Anne Krapfl
The first members have been appointed to a new ISU committee that will
review how endowment funds from the ISU Foundation are spent, once they're
transferred from the foundation to the university, to make certain that
donors' requests are followed.
President Gregory Geoffroy announced this summer he would create the
committee and has appointed David Hopper, veterinary diagnostic and
production animal medicine, and past president of the Faculty Senate, to
chair the committee. Joining Hopper on the committee are Jill
Bysteydzienski, women's studies; James Espenson, chemistry; Johnny Pickett,
controller; and Sherryl Rippke, internal audit.
As the process has been set up, the ISU Foundation will provide a list of
all endowments to the committee each year. Committee members will review a
random selection of endowment accounts to confirm that:
Hopper said the committee's first assignment is to educate itself about the
process of how interest income is transferred from the foundation to the
university and spent. Committee members hope to have a question-and-answer
session with foundation president Tom Mitchell yet this month. The committee
expects to receive the list of all endowed accounts from the foundation this
week and then will decide how many and which accounts to review.
- Expenditures meet the donor's intent, as specified in a "Memorandum of
Agreement" with the ISU Foundation.
- University processes and approval policies support the spending guidelines
for endowment earnings.
- Interest income from the endowments is being spent regularly, as failure to
use endowment earnings also may conflict with donor intent.
Hopper said Geoffroy has asked the committee to focus on student scholarship
accounts this year.
The committee's report, including findings and recommendations for changes,
is due each year by May 1 to Geoffroy. Hopper said it is a public
The ISU Foundation's "payout policy" is that growth income equal to 5
percent of the market value of an endowment is available to spend each year.
The spending allocation from each endowment is transferred from a foundation
account to a matching university account. Money actually is spent from
university accounts, not foundation accounts.
Ames, Iowa 50011, (515) 294-4111
Published by: University Relations,
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