This training addresses how to use the Due To/Due From (DTDF) if you do not have the Manager module. If you use the investment manager module, check out this DTDF article here
. DTDF is helpful and necessary when an institution deposits gifts in an investment account or operating account that is commingled with non endowment funds, takes withdrawals for spending at fund level without drawing from investments, or other related endowment cash flow that needs to be tracked within a commingled investment or operating account. The due to/from allows users to manage this type of cash flow and should allow you to reconcile back to an operating account the cash balance that is purely Endowment. In the example below, a $15,000 gift was entered in the 7/31/2014 period but the cash was not transferred to the investment manager. The following steps will show how to use a DTDF fund to track activity that has not yet been reflected on investment statements.
You can find the template and more information on how to use the template, here
TO SET UP THE DUE TO/DUE FROM (DTDF) FUND
The first thing that needs to be done is to check FUND CATEGORIES to see if a Due To/Due From (DTDF) NET ASSET CLASSIFICATION has been set up in your database.
This is usually done during the implementation process, but if you weren't using Due To/Due From when your organization implemented Fundriver, one may not have been established.
1. Click on the ORGANIZE
tab, choose NET ASSET CLASSIFICATION
from the CATEGORY
If you do not have a DTDF NET ASSET CLASSIFICATION, click the green ADD ITEM button to add one.
1.1. Enter a name for your DTDF classification and give it the code DT. Click SAVE
The DTDF fund when set up with a DT net asset class code will not have any units assigned to it. Units assigned is what drives the investment allocations to each fund. The DTDF fund is set up as a holding fund until cash is transferred. Therefore, if you take the Pool Unit Price * Units, this will be equal to the value of the MV of the Pool less the market value of the DTDF Fund, since this fund doesn’t own units.
2. Click on FUNDS
> ADD FUND
> A blank Fund Profile will be generated.
3. Fill out the Fund Profile out as shown below. The NAME and GLID should be descriptive, but can be of your choosing. Make sure the SPENDING RULE is BLANK RULE and the NET ASSET CLASSIFICATION is your DTDF classification.
Once the Fund Profile is complete, click SAVE
You do not need to populate anything under DISTRIBUTION ACCOUNT or DOCUMENTS for the DTDF fund.
TO USE THE DUE TO/DUE FROM (DTDF) FUND
1. Click on ACTIVITY INVESTMENT ACTIVITY, choose your endowment pool. Enter your investment data from your manager statement.
2. Once investment information is loaded, click RECONCILE
3. The $15,000 gift that was added but hasn't yet been transferred to the manager is creating a DIFFERENCE of $15,000. A transaction for this $15,000 will need to be entered to the DTDF Fund to show that this money is due to the investment manager. Once this is added, we will reconcile.
4. This worksheet illustrates how the DTDF should be impacted by this $15,000 gift. The Cash Flow shown below will need to be entered as the July DTDF NET CASH FLOW amount.
5. To add the DTDF transaction, click on ACTIVITY TRANSACTION ENTRY
> add a TRANSACTION TYPE
of DUE TO/DUE FROM TRANSFER.
6. Select your DTDF fund in the ENDOWMENT
drop down and enter the amount you need to apply to the DTDF fund. You can copy this directly from the DIFFERENCE line on the RECONCILIATION
screen. Click SAVE.
7. Once save is complete, go back to ACTIVITY INVESTMENT ACTIVITY
, choose your endowment pool and post date and click RECONCILE
8. Your reconciliation should show a DIFFERENCE of 0.00.
8.1 Your CHANGE IN DUE-TO DUE-FROM should be reflected as part of the reconciliation.
9. When there is a Negative Balance in the Due To/Due From Endowment fund, this represents cash owed to the endowment investments. When there is a Positive Balance in the Due To/Due From Endowment, this represents cash that is Owed To Operating (needs to be drawn down from the Endowment Investments).