University partners often ask: “When should I contact FAI?” and “How do I know I am working with a Foundation project in the Financial System?” Anytime you are working with a ledger 6 or ledger 7 project (specifically 774xxx or 76xxxx; or class 721x and 722x), you are working with a Foundation (ledger 6) or Endowment Fund (ledger 7) project. Foundation Accounting and Investments (FAI) manages the accounting and administration for these projects.

Like many aspects of the university’s Financial System, FAI projects have robust attributes that enhance the reporting capabilities. All of these attributes are initiated, reviewed and managed by FAI. 

To help university partners better understand these projects and their attributes, FAI offers a variety of reporting and training tools. Information regarding these projects, such as balances and encumbrances, can be found using FAI Reports. Creation of new projects and the amendment of existing project attributes (project administration) can be accomplished using Chartfield Request.

The financial information included in the WolfPack Reporting System and the Foundation Campus Reports is at book value. For general fund and restricted fund projects (including regular restricted projects as well as endowment income projects), the book value is appropriate, as it represents the amount of funds that can be spent. However, for endowment principal projects, users are typically interested in market value, which is not accounted for in these systems. Endowment projects have market values due to their investable nature – true market values can be found using Fundriver reports.

FAI also oversees spending calculation and communications for Endowment spending budgets. Information regarding budgets and communication timeline can be found on the FAI website.

Just like many other funding sources and projects across campus, FAI projects are unique in their nature and management. Accounting and administration are carried out by FAI, from project review and creation to investment management, auditing and reporting. Many of these projects are designed to provide support in perpetuity and to be disbursed in accordance with specific donor intent, so proper administration is critical. 

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