Revised: 12/2000
Reviewed: 10/2010

PURPOSE
To create a mechanism for saving and investing large sums of money, which are to be spent over many years to achieve long-range academic objectives.

DEFINITION
Quasi Endowment Funds are those funds that the Board of Trustees has decided to retain and invest. The Board has the right at any time to expend the principal of such funds.

POLICY
University departments may, under certain conditions, and with Board of Trustees' approval, create quasi endowment accounts by transferring assets from other account groups. The conditions for accomplishing this are:

* Minimum qualifying balance should be no less than $50,000.

* Withdrawals of principal should be limited to not more than 20 percent of the original amount, or of the fund balance at date of withdrawal, whichever is greater in any one year, for the first five years.

PROCEDURE
Request for a New Account A written request from the petitioning department, stating all of the salient facts, which prompted the request, should be presented to the dean of the college or school for approval. If the dean approves the request, it should be forwarded to the provost for his approval. The provost then forwards the request, if he approves it, to the treasurer.

The treasurer presents the request at the next scheduled meeting of the Executive Committee of the Board of Trustees. If this final approval is given, the treasurer refers the item to the associate treasurer for processing.

Opening of a New Account Procedures are the same as those for other endowment funds. (See Policy E005).

Transfer of Funds If the request is approved, the funds must be transferred to the Endowment Fund by journal entry. The physical cash is transferred to the Growth Pool the same month the request is approved.