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INSIDE IOWA STATE
May 3, 2002
Endowed funds use is appropriate
by Steve Sullivan
University endowment funds are being used appropriately and with the intent
to comply with donor wishes, according to a committee reviewing how such
funds are spent.
In a report to President Gregory Geoffroy, the Committee to Review Endowment
Expenditures also made several recommendations to improve the use of
endowment funds and compliance with memoranda of agreement.
Geoffroy created the committee last fall to review how endowment funds from
the ISU Foundation are spent once they've been transferred from the
foundation to the university and to ensure that donors' requests are
followed.
"Based on our interviews and account testing, we conclude university account
administrators are using expendable endowment funds for valid purposes and
with the intent to comply with terms of the memoranda of agreement," the
committee's report states.
The committee reviewed 66 endowment accounts that were selected from 1,007
active accounts created prior to June 30, 2000. Specifically, the committee
selected accounts with little or no spending activity and relatively large
unspent balances, negative balances or significant amounts of expenditure.
The accounts were in the Office of Student Financial Aid, Office of
Admissions, College of Agriculture, Parks Library, Office of the Vice
Provost for Research and the ISU Foundation.
"I applaud this committee's work. They took this task very seriously and
spent many hours reviewing accounts and policies," Geoffroy said. "The
committee's recommendations will help improve our management of university
endowments. At the same time, this report should reassure our donors that
their wishes are being honored by the university."
The committee made 14 recommendations for improvement, including better
training of account administrators to ensure they understand memoranda of
agreement and the use of specific funds, and creation of a "red flag" system
to alert the university to unusual account activity. Geoffroy has accepted
and will implement the recommendations.
"We took an extensive look at these endowment accounts and feel confident
that their overall management is sound," said committee chair David Hopper.
"But there is room for improvement, and we hope our recommendations will be
helpful to university staff who are responsible for administering
endowments."
Hopper is a professor of veterinary diagnostic and production animal
medicine, and past president of the Faculty Senate. Joining him on the
committee were Jill Bystydzienski, women's studies; James Espenson,
chemistry; Johnny Pickett, controller; and Sherryl Rippke, internal audit.
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Ames, Iowa 50011, (515) 294-4111
Published by: University Relations,
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